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The Fair Trade Scandal: Marketing Poverty to Benefit the Rich by Ndongo Sylla

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British Empire, carbon footprint, corporate social responsibility, David Ricardo: comparative advantage, deglobalization, Doha Development Round, Food sovereignty, global value chain, illegal immigration, income inequality, income per capita, invisible hand, Joseph Schumpeter, labour mobility, land reform, market fundamentalism, mass immigration, means of production, Mont Pelerin Society, Naomi Klein, non-tariff barriers, offshore financial centre, open economy, Philip Mirowski, Plutocrats, plutocrats, price mechanism, purchasing power parity, Ronald Reagan, Scientific racism, selection bias, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, transatlantic slave trade, trickle-down economics, Washington Consensus, zero-sum game

This is the reason why some efforts at analytical clarification are required. It is also worth pointing out that Fair Trade actors have begun producing some materials which, although incomplete and diverse, help in making a thorough and honest assessment of the model they promote. The need to study Fair Trade also arises from current affairs. As part of the ongoing multilateral negotiations – the Doha development round – the issue of trade preferences being given to the poorest countries is regularly debated, as are the effects of the obvious protectionism of rich countries on the main commodities exported by developing countries. From my point of view, Fair Trade is a low-level experiment whose study can provide precious teachings on the potential distributive effects within developing countries of the liberalisation of commodities, especially agricultural products.

., 76 Burkina Faso, 134, 135 Burundi, 132–3, 134, 135 Buycott, 4, 62 Cadbury Schweppes, 21 Cambodia, 31, 135 Cameroon, 20, 21, 134 Canada, 28, 29, 36, 46, 162(n23) Capitalism, 1, 37–8, 87, 140, 157(n11), British capitalism, 62; neo-Smithian view of, 75–7; official history of, 25, 63; primitive accumulation, 60, 62 Cargill, 20, 21 Caribbean, 60, 91, see also Latin America and individual entries Central Africa, 30 Central African Republic, 135 Central Intelligence Agency (CIA), 81 Chad, 134, 135 Chang, Ha-Joon, 25, 32, 85, 125, 149 172 Sylla T02779 02 index 172 28/11/2013 13:04 index China, 36, 42, 71, 74, 79, 155(n1), 157(n1) Chiquita, 80–1, 157(n13) Child labour, 51, 69, 79, 113, 158(n7) Cocoa, 16, 20–1, 22, 30, 40, 52, 53, 54, 72, 93, 112, 130, 133, 134, 159 (n23) Coffee, 16, 18, 22, 30, 36, 38, 39, 40, 49, 52, 53, 54, 55, 56, 62, 69, 70, 77, 78, 79, 98, 100, 104, 107, 112, 114, 115, 118, 125, 130, 132, 133, 134, 136, 137, 138, 139, 141, 148, 150, 157(n3), 157(n4), 158(n8), 158(n10), 159(n21), 159(n23), 161(n11), 162(n18); coffee paradox, 18, 148; International Coffee Agreement, 43 Colombia, 78, 134, 159(n20) Commodification, 1, 57, 76, 77, 148; decommodification, 98 Commodity fetishism, 87, 88, 145, 157(n3) Common Fund for Commodities, 43 Comoros, 135 Comparative advantage, 11, 30, 65–6, 85–6, 140, 150; see also Ricardo Competitiveness, 21, 102; price competitiveness, 90, 97, 99 Comprehensive research, 96 Congo, Democratic Republic of, 135 Consumer price index, 100–1, 158(n8) Consumer sovereignty, 69–71 Consumption, 4, 18–21, 22–4, 43, 52, 69, 75, 76, 83, 97–9, 106, 121, 140, 145, 146, 156(n2) Cost of sustainable production, see Fairtrade Costa Rica, 114, 134, 160 (n26) Cote d’Ivoire, 20, 21, 134 Cotonou Agreement 155(n2) Cropper, James, 62; see also abolitionist movement Cuba, 61 Currency Reform for Fair Trade Act, 71 Daily Telegraph (the), 155(n6) Degrowth, 81–3, 84 Denmark, 162(n29) Dependency theory, 37–8, 76 Developing countries, 5–6, 8–33, 38, 42, 43, 48, 49, 53, 66, 73–4, 80, 84, 85, 90, 91, 94, 95, 99, 109, 122, 123, 129, 130, 132, 133, 135, 136, 140, 144, 145, 146, 149, 150, 151, 152, 161(n14), 162(n23), 163(n2); emerging economies, 9, 14; heavily indebted poor countries, 9–10, 15; landlocked countries, 9–10, 144; least developed countries, 5, 9–11, 13–17, 27–32, 79, 124, 131–7, 144, 148–51, 161(n7), 161(n17), 162(n19); low income countries, 9–10, 131, 153, 161 (n14); lower middle income countries, 9–10, 153, 161(n14); major manufactured good exporters, 9–10, 14; major petroleum exporters, 9–10, 14, 135; newly industrialised economies, 9–10; small island states, 9–10, 144; upper middle income countries, 9–10, 131, 153, 161(n14) Development, 8, 31–4, 51, 89, 140, 143–5; criticism, 10, 82–3, Millennium development goal(s), 10, 144, 152; underdevelopment, 16, 37, 76; see also sustainable development Development assistance, 29, 38, 40, 121, 138, 139, 143, 144, 147–8, 155(n4) Distribution channels, 19, 21, 22, 38, 40, 41, 45, 56, 126, 140, 147; supermarkets, 21, 39, 40, 52–3, 77, 79, 106; Carrefour, 157 (n4); Leclerc, 55 Djibouti, 135 Doha development round, 5, 151, 162 (n28); see also World Trade Organization Doherty, Neil, 162(n23) Dominica, 91, 134 Dominican Republic, 134 Doussin, Jean-Pierre, 156(n9), 160(n25) Douwe Egberts, 39, 70 Dukes, Betty, 79; see Wal-Mart Dumping, 78, 102, 126, 143; agricultural dumping, 28–30; environmental dumping 22, 71; social dumping, 71 Dutch World Shops Association, 52 East Indies, 62 Easy entrance procedure, 96 Ecological economics, 22–4 Ecological Footprint, 22–4, see also Global Footprint Network 173 Sylla T02779 02 index 173 28/11/2013 13:04 the fair trade scandal Economic Commission for Latin America, 37 Economies in transition, 10, 13, 134 Economies of scale, 11, 21, 43, 49, 66, 81, 89, 130; economies of scope, 11, 21, 56 Economist (the), 157(n10) Ecuador, 80, 114, 134, 160 (n26) Edward Douwes Dekker, 39; see also Max Havelaar (novel) Efficiency, 42, 54, 59–60, 66, 68, 70, 78, 87–91, 99, 126–8, 140, 150, 163(n1) Emmanuel, Arghiri, 17 Equatorial Guinea, 135 Eritrea, 135 Esping-Andersen, Gøsta, 98 Ethical consumption, 4, 38, 43, 69, 88, 146 Ethical labels, 35, 41, 47, 53–6, 120, 155 (n6), 155(n7), 157(n13), 158(n5); see also individual entries Ethiopia, 78, 132–3, 134, 135, 136, 157 (n3) European Fair Trade Association, 44 European Union, 23, 27, 28, 29, 155(n2), 158(n9); European Central Bank, 161(n17); European Commission, 32, 70; European Social Fund, 54 Everything but Arms, 27 Export earnings stabilisation system, 43, 155(n2) Fairness, 8, 42, 80, 142; procedural fairness, 31 Fair Trade, definition, 34; history, 35–43; Commerce equitable, 68, 71 Fair Trade debate (1870–90), 63, 68, 71 Fair Trade debate (new), 69 Fair Trade Fortnight, 68 Fair Trade Foundation (FTF), 44 Fair Trade Organisatie, 36 Fairtrade, Additional income transferred, 96–7, 125–8, 130, 153, 161(n10, n11); Asymmetries, 97, 105–9; Benefits, 1, 112–16, 120–39; budget of labelling initiatives, 127–8, 153, 161(n12); compatibility with free trade, 1, 100–2; compatibility with neoliberalism, 139–42; certification model, 45, 48, 49–51, 91, 106, 116–7, 130; costs of certification, 47–8, 49–51; description of the Fairtrade economic model, 2, 45, 85–109, 125; euthanasia of intermediaries, 86; Fairtrade premium, 50, 51, 53, 86, 96–7, 98, 100, 101, 102, 104, 111, 113, 118, 122–30, 142, 153, 160(n27), 161(n9); functions of Fairtrade, 4, 7, 33, 86, 98, 100, 103, 120–1, 127, 150; geographical coverage, 49, 51–2, 109–10, 130–5; impact studies, 110–9; labelling initiatives, see individual entries; licence fees, 45, 46, 107, 127–8, 153; main economic issues, 59–60; marginalisation rhetoric, 120, 131–2; market access, 99, 100–5, 147, 150; marketing rhetoric, 2, 4–5, 88, 103, 108, 121, 131, 139, 141, 148, 149; marketing success, 39–40, 51–3, 77, 121–2, 129, 140, 147, 148; minimum guaranteed price, 50, 86, 88, 91–102, 103, 104, 105, 106, 107, 118, 122, 125, 126, 127, 140, 142, 158(n6), 158(n8), 158(n10), 161(n8); name change, 2, 161(n9); New Standards Framework (51); paradoxes, 62, 105, 83, 88, 91, 105, 107, 131, 137, 141, 148; perception of the Fairtrade label, 52, 69, 138, 145, 149, 157(n14); plutocratic bias 7, 131–2, 136–39, 143, 149; share in world trade, 53, 123; standards, 45, 49–51, 70, 79–81, 86, 106, 126, 130, 138, 147 ; sustainable cost of production, 50, 89, 91–4, 95, 96, 97, 98, 102, 107, 126, 142, 158(n6), 158–9(n13), 161(n8); transfer system, 9, 70, 72, 121, 122, 124, 125–8, 142–3, 148, 153; see also individual products, producer organisations Fairtrade Foundation (UK), 46, 112, 127, 156(n4) Fairtrade Labelling Organizations International, 2, 45–51, 52, 53, 54, 56, 73, 78, 80, 81, 92, 95, 96, 100, 101, 107, 109, 120, 123, 124, 127, 129, 134, 155(n3), 158(n6), 158(n7), 160(n25), 160(n4), 161(n6), 161(n8), 161(n10), 161(n13), 161(n15), 174 Sylla T02779 02 index 174 28/11/2013 13:04 index 161(n16); FLO-cert, 46, 48, 50, 155(n3), 157(n4); FLO-ev, 46, 48, 50 Food and Agricultural Organization, 135, 136 Ferrero, 21 Financial Times (the), 160(n2) FINE platform, 34, 46 Finland, 85 First World War, 16, 42 Food sovereignty, 83, 99, 150 Fox, William, 61, see also abolitionist movement France, 21, 31, 36, 53, 54, 55, 56, 78, 81, 127, 128, 132, 157(n14) 161(n17) Frank, André Gunder, 37; see also dependency theory Free market, see Free Trade Free Trade, arguments for free trade and their limitations, 11, 66, 74, 85, 99, 136, 146; free trade and fair trade, 1–2, 5, 38, 44, 68–74, 76, 84, 86–8, 100–2, 139, 140, 148–51; free trade rhetoric, 8, 25, 26, 32, 41, 42, 59; free trade vs. protectionism, 33, 63–8; free trade zones, 12, 136; tradition of free trade, 63–8; 156(n3); see also comparative advantage Freiburg school, 42 French Letter Condom Company, 56–7 Fridell, Gavin, 76–7, 117, 139 Friedman, Milton, 42 Gambia, 135 General Agreement on Tariffs and Trade (GATT), 31, 32; see also World Trade Organization Georgescu-Roegen, Nicholas, 82 Generalised System of Preferences, 28 Germany, 20, 46, 53, 63, 127, 128 Ghana, 21, 114, 134, 160 (n26) Global Footprint Network, 22–4 Global value chain analysis, 18–22, 66 Globalisation, alternative globalisation, 1, 5, 33, 34; neoliberal globalisation, 4, 6, 58, 139; rules and specificities of current globalisation, 8, 9, 11, 33, 73–4, 80, 86, 99, 143, 146, 151, 162(n27); see also alterglobalist Governance, 21, 42, 44, 51, 152 Grenada, 91, 134 Greenwashing, 79, 147 G20, 108 Guardian (the), 157(n13) Guatemala, 54, 81, 134 Guinea, 135 Guinea Bissau, 135 Haiti, 135 Halal cosmetics, 155(n8) Hamburger connection, 22–3 Hamilton, Alexander, 26, 67 Handicrafts, 35, 36, 38, 44, 45, 49, 114, 140 Harvey, David, 42 Hayek, Friedrich, 42 Hershey, 21 High Indebted Poor Countries (HIPCs), 9, 10, 15 Honduras, 133, 134 Hong Kong, 155(n1) Horizontal concentration, 19–21, 41 Imperialism, 26, 34, 68, 80–1 India, 61, 62, 74, 134, 136, 137, 155(n1), 159(n20), 162(n21) Indigenous people, 38–9, 80, 98, 157(n4), see also Jaffee Indonesia, 20, 39 Inflation, 29, 42, 100, 118, 158(n8) Institute of Economic Affairs, 69 International Labour Organization (ILO), 11, 51, 162(n22) International Monetary Fund, 17, 30, 31; Compensatory Financial Facility, 43 Jacquiau, Christian, 78, 155(n3) Jaffee, Daniel, 116, 118, 158(n8), 160(n28, n29) Japan, 27, 28, 29, 32, 54, 71 Java (island of ), 39 Jefferson, Thomas, 146 Jordan, 35 Kenya, 114, 134, 159(n20) Keynes, John M., 33, 64, 67; Keynesianism, 42, 74, 141; euthanasia of the rentier, 157(n2) Kiribati, 135 Klein, Naomi, 78 Korea, the Republic of, 155(n1) Kraft Jacobs Suchard, 21 175 Sylla T02779 02 index 175 28/11/2013 13:04 the fair trade scandal Label-Step, 47 Labour, child labour, 51, 69, 79, 80, 113, 158(n7); division of labour, 63, 64, 65, 75; family labour, 51, 91, 94–5; forced labour, 71, 75, 80; hired labour, 43, 48, 49, 50, 51, 52, 94, 95, 112, 123, 129, 137, 160(n4), 161(n5); labour power, 76, 88, 98, 140, 148; labour supply, 9, 94–5; see also wage Lao People’s Democratic Republic, 135 Latin America, 9, 13, 15, 24, 37, 38, 42, 49, 74, 80, 107, 112, 115, 116, 117, 122, 129, 130, 131, 133, 135, 136, 137, 138, 139, 148, 154, 155(n1), 159(n23), 161(n14), 162(n22) Latin American and Caribbean Network of Smallholder Fair Trade Producers, 107 Latouche, Serge, 82–3 Least developed countries, see developing countries Lesotho, 135 Liberalism, 63, 67, 68, 74; neoliberal critique, 1, 59, 68–74, 84, 126, 146, 156(n4); neoliberalism, 3, 4, 6, 7, 41–3, 56, 59, 72, 120, 139–45, 146, 151, 162(n26), 163(n1) Liberia, 135 List, Friedrich, 8, 25; see also Protectionism Logistics Performance Index, 89, 137 Lomé Convention 155(n2) Low Income Food Deficit Countries, 135 Luxembourg, 162(n29) Madagascar, 135 Magnusson, Lars, 63–8, 71 Malawi, 134, 135 Malaysia, 155(n1) Maldives, 135 Mali, 134, 135 Market Access Overall Trade Restrictiveness Index, 30 Mars, 21 Marx, Karl, 60, 62, 75, 87, 157(n3) Marxist (tradition), 75, 76, 82, 157(n11) Mauritania, 135 Max Havelaar (novel), 39 Max Havelaar (label), 6, 39–40, 44–5, 130, 139, 157(n4), see also Fairtrade Max Havelaar (labelling initiatives), France, 46, 127, 156(n9), 158(n10), 159(n23), 160(n25), 161(n6); Switzerland, 127 McDonald’s, 77, 78, 79 Mexico, 3, 38, 79, 98, 114, 118, 131, 132, 133, 134, 136, 137, 139, 155(n1), 157 (n4), 159(n20), 161(n17) Mercantilism, 64–7 Microfinance, 1 Middle East, 15, 49 Mill, John Stuart, 65 Millennium development goal(s), see Development Mises (von), Ludwig, 42 Mohan, Sushil, 101–2 Monde (Le), 159(n19) Mont Pelerin Society, 42 Mozambique, 135 Multatuli, see Max Havelaar (novel) Multinationals, 19, 21, 41, 47, 53, 55, 56, 77–81, 140, 147, 149, 157(n13), 158(n5), 160(n26) Myers, Norman, 23, see also hamburger connection Nadel, Henri, 76 National sovereignty, 33, 64, 152 Neoclassical economics, 4, 11; 42, 65, 66, 72, 74, 82, 94–5, 140; general equilibrium theory, 99; gravity models, 162(n20) Neoliberalism, see liberalism Nepal, 135 Nestlé, 21, 78 Netherlands, 3, 20, 38, 39, 40, 54, 160 (n26), 162(n29); Groningen, 70; Kerkrade, 36 Network of European World Shops (the), 44, 46 New York, 157(n3) New York Times (the) 159 (n15) NGO, 3, 36, 38, 46, 47, 50, 53, 116, 117, 138 Nicaragua, 133, 134 Niche, 38, 70, 77 Niger, 135 Nigeria, 21 Nokia, 85–6, 125 Non-tariff barriers, 26–7, 30, 90 176 Sylla T02779 02 index 176 28/11/2013 13:04 index North America, 24, 35, 40, 44, 53, 136 North American Free Trade Agreement (NAFTA), 136 North-North relations, 31, 54, 80, 108 North-South relations, 1, 16–33, 34, 35, 40, 41, 43–4, 61–2, 73, 80, 87, 90, 97, 105–9, 126, 135, 140–5, 147, 148, 149, 163(n2), see also dependency theory Norway, 28, 162(n29) Oceania, 9, 24, 129, 131, 154 Organic production, 9, 53–5, 79, 92, 96, 112, 115, 160(n1) Organisation for Economic Co-operation and Development (OECD), 28–9; OECD countries, 10, 15, 21, 28, 29, 30, 42, 131, 144 Overall Trade Restrictiveness Index, see Market Access Overall Trade Restrictiveness Index Oxfam, 30, 32, 36, 38, 72, 122 Pakistan, 36 Palestine, 35 Panama, 134 Papua New Guinea, 134 Penson, Jonathan, 138 Peru, 114, 133, 134, 159(n20), 160(n26) Philippines, the, 155(n1) Pitt, William, 8 Polanyi, Karl, 75, 140 Popper, Karl, 42, 58–60 Portugal, 23, 65 Poverty, 2, 7, 10, 11, 33, 35, 36, 40, 58, 62, 68, 79, 84, 85–6, 95, 97–100, 103, 105, 109, 113, 114, 119, 122, 125, 131, 132, 137, 142, 143, 144, 145, 147, 148 Prebisch, Raúl, 17, 38 Price volatility, 17–18, 66, 86, 109 Primary product dependency, 10, 16, 90, 121, 132–8, 140–1, 147 Primary product financialisation, 17–8 Problem of induction, 110 Producer organisations, 3, 80, 98, 118–19, 157(n3), 159 (n16); certification, 45, 48, 49, 51, 91, 109, 111; 159(n20), 160(n4); selection bias, 81, 116–17, 132–9, 159(n23), 160(n26); shortcomings of the Fairtrade model, 97, 107–9, 138, 142–3, 162(n25); statistics, 51–3, 123–4, 130–1, 132–4, 161(n11) Producer support Estimate, 28–9; see also OECD Productive theory, 64–5, 75 Protectionism, 5, 25–33, 63, 67–8, 71–2, 145; infant industries protection, 25, 32, 37, 66, 67; see also free trade Puerto Rico, 35 Purchasing Power Parity, 153 Quinoa, 54, 159(n15) Rainforest Alliance, 53–6 Reagan, Ronald, 42 Ricardo, David, 65–7 Rist, Gilbert, 34 Rodrik, Dani, 73–4 Roozen, Nico, 3, 38–43, 54, 70, 87–8, 98, 139, 158(n4), 163(n1) Rowntree, Joseph, 72, Ruben, Ruerd, 113–17, 160(n27) Rugmark, 47 Rwanda, 134, 135, 138, Sachs, Jeffrey, 162(n23) Sao Tomé and Principe, 134, 135 Saint Lucia, 91, 134 Saint-Vincent and the Grenadines, 91, 134 Sales Exchange for Refugee Rehabilitation and Vocation (SERRV), 35–6 Samoa, 135 Samsung, 85–6, 125 Sara Lee, 70 Schumpeter, Joseph A., 63, 156(n3) Second World War, 35, 42 Selection bias, see producer organisations SELFHELP Crafts (shops), see Ten Thousand Villages Senegal, 134, 135 Sharif, Mohammed, 94–5 Sidwell, Marc, 68–73 Sierra Leone, 135 Singapore, 155(n1) Singer, Hans, 17; see also Structuralist school Slavery, 60–2, 75 177 Sylla T02779 02 index 177 28/11/2013 13:04 the fair trade scandal Slavery footprint, 156(n2) Smith, Adam, 8, 63–8, 75–6, 156(n3) Smith, Alastair M., 132, 156(n4) Smithsonian Migratory Bird Center, Bird-friendly Coffee programme, 54 Social capital, 101, 117, 119 Solidaridad, 3, 38–9, 114; see also Roozen Solomon Islands, 135 Somalia, 135 SOS Wereldhandel; see Fair Trade Organisatie Spaghetti bowl, 27 South Africa, 136, 137, 159(n20), 162(n21) South South relations, 80, 149, 163(n2) Sri Lanka, 134 STABEX, see Export earnings stabilisation system Starbucks, 77, 78, 150; Coffee and farmer equity practices, 55 Stigler, Georges, 42 Stiglitz, Joseph E. and Charlton, Andrew, 31–3, 66 Structural adjustment policies, 17, 18, 42 Structuralist school, 37–8 Sudan, 135 Sugar, 16, 27, 30, 36, 60–2, 80, 85, 90 Sustainable Agriculture Network, 53 Sustainability, 4, 24, 34, 47, 50, 53, 55, 56, 57, 70, 79, 113, 138, 142, 149–50, 158(n5) Sustainable development, 4, 34, 47, 55, 70, 82, 83, 156(n2), 163(n1) Sustainable Fair Trade Management System, 45; see also World Fair Trade Organization Sweden, 63, 162(n29) Switzerland, 53, 127, 128 System for Minerals (Sysmin), 155(n2) Taiwan, 155(n1) Tanzania, United Republic of, 134, 135 Tariff escalation, 26–8, 30 Tariff peaks, 30 Tax havens, 157(n13) Tea, 40, 49, 52, 53, 54, 56, 80, 130, 133, 134, 136 Ten Thousand Villages, 35–6 Thailand, 155(n1) Thatcher, Margaret, 42 Third Worldism, 36–40, 120 Times (the), 160(n2) Timor Leste, 135 Togo, 134, 135, 155(n2) Torrens, Robert, 65 Trade not aid (slogan), 38, 40, 126 Trade structure, 9, 10, 133–8, 141, 154, 163(n2); see also Developing countries Traders, 20, 44, 49, 86, 106, 116–17, 140 Transfair USA, additional income transferred, 125, 128, 130–1, 153; 161(n9), 161(n11); budget and licensee fees, 127–8, 153; exit from Fairtrade, 161(n13); name change, 161(n9); sales, 161(n10) Tribune (La), 159(n18) Truman, Harry, 34, 35 Turkey, 155(n1) Tuvalu, 135 UCIRI (Union de Comunidades Indigenas de la Region del Istmo), 98, 157(n4) Uganda, 134, 135, 138 Un Comtrade, 20, 134 Underdevelopment, see development Unequal exchange, 1–2, 16–22, 25, 37, 62, 76, 120, 132, 133; unequal ecological exchange, 22–4 United Nations, 10, 144, 155(n4) United Nations Conference on Trade and Development (UNCTAD), 9, 10, 13, 14, 16, 20–1, 38, 133, 134, 135, 154, 162(n19), 162(n21), 163(n2) United Kingdom, 8, 25, 31, 32, 36, 46, 53, 56–7, 60–2, 64–9, 71, 127, 128, 132 United States, 16, 20, 22, 23, 25, 27, 29, 31, 32, 35, 36, 42, 46, 53, 54, 61, 63, 67, 71, 79, 90, 125, 127, 128, 130, 131, 132, 136, 156(n2), 158(n8), 158(n9); American System, 26, 67; United States Agency for International Development (USAID), 138; see also Transfair USA UTZ Certified, 54, 55, 56, 70 Van der Hoff, Frans, 3, 38–43, 87–9, 98, 139, 158(n4), 158(n5), 162(n26), 163(n1) 178 Sylla T02779 02 index 178 28/11/2013 13:04 index Vanuatu, 135 Vent for surplus theory, 65 Vertical integration, 19–21, 41 Vietnam, 74 Wage, 79, 80, 158(n7), 160(n26), 160(n27), 161(n5); minimum wage, 51, 95, 98; reservation wage, 94–5; wage employment, 19, 72, 94, 123–4, 128, 131, 133, 137, 142, 162(n22) Wal-Mart, 78, 79 Washington Consensus, 73 Wealth of Nations, see Smith, Adam West Indies, 60–2, Williams, Eric, 60–2 Williamson, Jeffrey G., 162(n27) World Bank, 17, 31, 42; development indicators, 9, 10–12, 15, 30, 89, 131, 137, 153, 161(n7, n14, n17) World Fair Trade Organization, 44–5, 46, 80, 151 World-system theory, 76 World Trade Organization, 26, 28, 29, 31–3, 74, 144, 155(n3) Yemen, 135 Zambia, 135 179 Sylla T02779 02 index 179 28/11/2013 13:04 Sylla T02779 02 index 180 28/11/2013 13:04

Through this approach, they would first and foremost ensure food sovereignty and security, especially in countries with dynamic demography. 150 Sylla T02779 01 text 150 28/11/2013 13:04 conclusion This in turn can reduce the cost of food products for populations, alleviate the trade balance and facilitate a channelling of export revenue towards the import of basic intermediate goods. Refocusing agriculture around domestic concerns is, in my view, more profitablefor LDCs in the long term than an economic growth model based on agricultural exports. In fact, in the framework of the discussions as part of the Doha round of multilateral negotiations, the Fairtrade experience described here could be considered as a very small-scale example of the possible distributive effects of liberalising agricultural product markets. Even though there may be positive gains for developing countries overall, these will probably only benefit a minority of them. For the vast majority of LDCs, import bills will undoubtedly increase.


pages: 356 words: 103,944

The Globalization Paradox: Democracy and the Future of the World Economy by Dani Rodrik

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affirmative action, Asian financial crisis, bank run, banking crisis, bilateral investment treaty, borderless world, Bretton Woods, British Empire, capital controls, Carmen Reinhart, central bank independence, collective bargaining, colonial rule, Corn Laws, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, Doha Development Round, en.wikipedia.org, endogenous growth, eurozone crisis, financial deregulation, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, George Akerlof, guest worker program, Hernando de Soto, immigration reform, income inequality, income per capita, industrial cluster, information asymmetry, joint-stock company, Kenneth Rogoff, labour market flexibility, labour mobility, land reform, liberal capitalism, light touch regulation, Long Term Capital Management, low skilled workers, margin call, market bubble, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, microcredit, Monroe Doctrine, moral hazard, night-watchman state, non-tariff barriers, offshore financial centre, oil shock, open borders, open economy, Paul Samuelson, price stability, profit maximization, race to the bottom, regulatory arbitrage, savings glut, Silicon Valley, special drawing rights, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tobin tax, too big to fail, trade liberalization, trade route, transaction costs, tulip mania, Washington Consensus, World Values Survey

See also my review of this book—Dani Rodrik, “Free Trade Optimism: Lessons from the Battle in Seattle,” Foreign Affairs, vol. 82. no. 3 (May–June 2003), pp. 135–40. 13 Recent estimates suggest that removing all government barriers to trade would yield global “welfare” gains of the order of a mere 0.3 percent of world GDP, an effect that would be barely noticeable in practice. See Bouët, “The Expected Benefits from Trade Liberalization.” 14 The travails of the Doha Development Round are chronicled in Paul Blustein, Misadventures of the Most Favored Nations (New York: Public Affairs, 2009). 15 Robert Z. Lawrence, Regionalism, Multilateralism, and Deeper Integration (Washington, DC: Brookings Institution, 1996). 16 “Krugman’s Conundrum—Economics Focus,” The Economist, April 19, 2008, p. xx. The Krugman study is Paul Krugman, “Trade and Wages, Reconsidered,” Brookings Papers on Economic Activity (Spring 2008), pp. 103–37. 17 I had taken a different position in this debate, arguing that there were many channels through which globalization could imperil the incomes and economic security of the low-paid.

They increase the risk that governments will find their hands tied in circumstances where it would have been desirable for them to act. They may therefore reduce, rather than increase, the value of trade agreements and diminish the incentive to sign on to them. Consider what happens if we continue on our current path. The Doha Round of trade negotiations, with which the world’s trade officialdom remains preoccupied, focuses on reducing the remaining barriers at the borders, especially in agriculture. The round was launched in 2001 and has experienced one collapse after another. Despite all the hoopla that accompanies these negotiations, it is safe to say that the prospective gains from a successful completion of the Doha Round are quite small—even paltrier than the one third of 1 percent of world income that a movement to full liberalization would entail. Of course, there may still be some big winners from the Doha agenda.

The more thoughtful that new narrative, the healthier our economies will be. Global finance is not the only area that has run out of convincing story lines. In July 2008, as the subprime mortgage crisis was brewing, global negotiations aimed at reducing barriers to international trade collapsed amid much acrimony and finger-pointing. These talks, organized under the auspices of the World Trade Organization (WTO) and dubbed the “Doha Round,” had been ongoing since 2001. For many anti-globalization groups, they had come to symbolize exploitation by multinational corporations of labor, poor farmers, and the environment. A frequent target of attack, in the end the talks were brought down for more mundane reasons. Developing countries led by India and China concluded that there was not enough on offer from the United States and the European Union for them to dismantle their own industrial and agricultural tariffs.


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Zero-Sum Future: American Power in an Age of Anxiety by Gideon Rachman

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Asian financial crisis, bank run, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Bretton Woods, BRICs, capital controls, centre right, clean water, collapse of Lehman Brothers, colonial rule, currency manipulation / currency intervention, deindustrialization, Deng Xiaoping, Doha Development Round, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, global reserve currency, greed is good, Hernando de Soto, illegal immigration, income inequality, invisible hand, Jeff Bezos, laissez-faire capitalism, Live Aid, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, mutually assured destruction, Naomi Klein, offshore financial centre, open borders, open economy, Peace of Westphalia, peak oil, pension reform, Plutocrats, plutocrats, popular capitalism, price stability, RAND corporation, reserve currency, rising living standards, road to serfdom, Ronald Reagan, shareholder value, Sinatra Doctrine, sovereign wealth fund, special economic zone, Steve Jobs, Stewart Brand, The Chicago School, The Great Moderation, The Myth of the Rational Market, Thomas Malthus, trickle-down economics, Washington Consensus, Winter of Discontent, zero-sum game

It should also recognize that a stronger currency, whose value is determined by the market, reflects an increase in the nation’s wealth that will make ordinary Chinese richer in a very direct way. The Indians, who have played a particularly obstructive role in the Doha round of international trade talks, need to recognize that they have been among the biggest beneficiaries of globalization and have a huge stake in preserving and extending the system. Europe’s baroque system of agricultural subsidies, long an embarrassment, has also now become a major impediment to a new deal at the World Trade Organization. Calling for “completion of the Doha round” has become a tiresome cliché of international diplomacy. It is the equivalent of praising motherhood and apple pie. But while cynicism about the Doha round is certainly justified, its completion would be really valuable. For if the world’s leaders could agree to a new round of trade opening, they would send a vital signal that they still believe that a “win-win world” is possible.

Kevin Rudd, the then Australian prime minister, captured the grim mood of the moment when he told the assembled leaders that they were facing a financial crisis that would turn into an economic crisis and then into an unemployment crisis and then into a social crisis before finally mutating into an international political crisis.3 At the first G20 summit, the assembled leaders solemnly promised to forswear all future acts of protectionism and to complete the Doha round of world trade talks. And yet by the time they met in London the following April, seventeen of the countries involved had passed protectionist legislation of some description—and the Doha round remained uncompleted. Still, it was at the London summit that it became apparent that, for all the backsliding, something important and worthwhile was going on. The assembled leaders managed to finesse a dangerous disagreement over whether governments should respond to the economic crisis with large-scale deficit spending.

However, there are areas where even an agreement between America and China would not be enough. There would be no point in striking a new deal on nuclear nonproliferation without the active participation of a major nuclear power like Russia and without the agreement, reluctant or otherwise, of aspiring nuclear powers like Iran. The success of the world trade talks absolutely demands the agreement of India, which has been one of the toughest negotiators in the Doha round. It is not even clear that either China or the United States would welcome the idea that they should try to solve the world’s problems together through an informal G2. In many ways, it still suits China to insist on its status as a “developing country” with a great many poor people. That makes it easier to avoid the burdens of global leadership when those look too difficult or costly. The Chinese eagerly anticipate the day when they will look the Americans in the eye as equals, but they also know that the U.S. economy and the U.S. military are still much bigger than those of China.


pages: 288 words: 76,343

The Plundered Planet: Why We Must--And How We Can--Manage Nature for Global Prosperity by Paul Collier

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agricultural Revolution, Berlin Wall, business climate, Doha Development Round, energy security, food miles, information asymmetry, Kenneth Arrow, megacity, new economy, offshore financial centre, oil shock, profit maximization, rent-seeking, Ronald Coase, Scramble for Africa, sovereign wealth fund, stem cell, Stewart Brand

Addressing it means counting upon inter-government cooperation and unfortunately, in the last decade, the ability of governments to cooperate has dramatically declined. The first and best evidence of this decline comes not from the frontpage news stories involving Afghanistan or Iran, but from a story reported on the business pages: the collapse of the Doha Round of trade negotiations. Governments have been participating in these negotiations, or rounds, organized by the World Trade Organization, for fifty years. Their point is to lower trade barriers. Each round has been roughly similar storyline: given the potential for large mutual gains, negotiators haggle until they reach a deal which, though not perfect for anyone, represents an improvement. The Doha Round (named for the city in Qatar where it started), which has been going on for far longer than any other round, is the first complete failure. Somehow, somewhere, negotiating governments have lost the storyline.

See also auctions Conrad, Robert, 38, 39, 41 construction, 131, 136, 147–48 Construction Sector Transparency Initiative, 136 consumption and appreciation of assets, 105–6 and Bird-in-the-Hand Rule, 108, 109–10 and booms, 116, 118 cutting consumption, 116–17, 118 in decision chain, 127 and domestic investment, 114 and future generations, 97–98, 111 in low-income countries, 114 and Permanent Income, 103 and resource curse, 48 versus savings, 97–98, 119–20 “contract farming” model, 215 cooperation and coordination of efforts, 175, 237–43 Copenhagen conference on climate change, 175, 183, 190, 195 copper, 32, 42, 64, 86–87, 142–43 corruption and capturing natural assets, 79 and construction deals, 131 countering corruption, 80–83, 128–30, 135–36 and fishing, 164 and prospecting rights, 70 in public-investment projects, 128–31, 135 and resource extraction, 4, 79, 80, 82, 136 and taxation, 51–52, 88 and transparency, 94 cost-benefit analyses, 136–37 crashes, 145–46 creativity, 28 Creutzfeldt-Jakob disease, 220 custody principle and carbon emissions, 201, 202–3 and compensation for assets, 31–33, 112–13, 114, 155–56 and nonrenewable natural assets, 155–56 obligations of, 11, 32–33, 112 (see also future generations) and renewable natural assets, 155, 157, 161 and resource revenues, 98–99 Dasgupta, Sir Partha, 9, 121 Davies, Victor, xiv De Beers, 76 decision chains, 60–62, 127 demand for raw materials, ix, 116 democracy and accountability, 23 and checks and balances system, 55–56, 57, 58, 135 and economists, 10, 33 and elections, 50, 54–55, 56–58, 59 and future generations, 33 and information sharing, 239–41 and international coordination, 237–43 and leaders, 59 and regulation, 7 and resource revenues, 53, 54 in resource-rich countries, 50–53 spread of, 49 and technology, 235 transparency in, 55 Democratic Republic of the Congo, 5, 64, 69, 89 demurrage, 141 Denmark, 30 depletion of natural assets, 120–21 Dercon, Stefan, xiv Developing Asia, 99 developing countries, 184–85, 195, 211 diamonds, 37, 48, 76, 165 dictatorships, 49 Dimbleby Lecture, 16 discovering natural assets, 63–77 in bottom billion countries, 68, 74–76 dilemmas in, 68–74 distribution of assets, 64–68 and governance, 54 in OECD countries, 67–68 as a public good, 74–77 risks of, 74, 75 and selling prospecting rights, 69–74 Doha Round of trade negotiations, 237 Doing Business survey, 145 domestic investment and absorption problems, 128, 133 and consumption, 114 and corruption, 128–31, 135 and development, 128 IMF on, 128, 133 and liquidity funds, 119 volatility of, 117–18 See also investments Dominican Republic, 19 donors, 76 drought-resistant crops, 222–23 Duponchel, Marguerite, xiv, 142 Dutch Disease, 48 Economic and Financial Crimes Commission, 129–30 economists and democracy, 10, 33 environmentalists versus, 9–13 and ethics, 10 on popular opinion, 203 value system of, 11, 12 efficiency, 21, 22, 179 elections, 50, 54–55, 56–58, 59 emerging market economies and carbon emissions, 192–93, 197 land area represented by, 6, 63 and resource management, 241–43 employment commitments, 90 enclosures movement, 214 endogeneity, 39–40 energy exports of, 193–94 production of, 180, 181–82 enforcement, 241 entitlements, 165, 168 entrepreneurship, 213 environmentalists economists versus, 9–13 and farm sizes, 212–19 and nuclear power, 181–82 and preservation of nature, 32 and prioritization of issues, 225–26 value system of, xiii, 11–12, 16 Equatorial Guinea, 29, 133 equipment, 131, 148 equity, 103 Eritrea, 158–59 ethanol, 223–25 ethics and economic responsibilities, 32 and natural asset management, 236 and rights, 9–10 and Utilitarianism, 10, 25, 26 Ethiopia, 29, 158, 218 Eurasia, 3 Euro, 238 Europe and carbon emissions, 183, 188, 240 and genetically modified crop ban, 225 taxation in, 27 European Commission, 208 European Community, 27–28 European Union, 27–28, 190 excess-profits tax, 88–89 expected values, 72 exports energy exports, 193–94 and food crises, 218 and import duties, 101 and international coordination, 237 restrictions, 208 externalities, 68–69, 168, 173, 214 extinction, 154, 161 extraction rights in Africa, 95 auctions for, 83–84, 90–91, 124–25 and geological surveys, 75 and infrastructure, 91–92 and prospecting, 76 and time-inconsistency problem, 74 Extractive Industries Transparency Initiative (EITI), 80, 82, 136, 232–33 family farming, 216–17 famine, 211 farmed fish, 160, 162, 168–69 Financial Action Task Force, 129–30 financial assets, 22 Financial Times, 89 finders-keepers rule of assets, 21, 22, 46 Fiscal Affairs Office of the IMF, 232 fisheries, 160–67 farmed fish, 160, 162, 168–69 fishing lobbies, 163, 170 and international coordination, 238, 239, 240 price of, 169 and resource scarcity, 229–30 and sustainability, 154, 161, 164, 168–71 taxation of, 169–70 UN management of, 168–71 flexible business environments, 145–46 Florida, 189 food food fashions, 213 food miles, 213 prices of, x, xiii, 207–12, 218, 237 See also agriculture forests and cooperation of locals, 166 and custody principle, 157–59 of Eritrea, 158–59 and governance, 19 as natural assets, 160 rain forests, 15, 17, 23, 33–34, 215 France, 137, 181–82 free-rider problem and carbon emissions, 188–91, 197, 240–41 and international cooperation, 238 and public goods, 170 Freetown, Sierra Leone, 147 Friedman, Milton, 102, 103 fuel production, 223–24.

Making Globalization Work by Joseph E. Stiglitz

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affirmative action, Andrei Shleifer, Asian financial crisis, banking crisis, barriers to entry, Berlin Wall, business process, capital controls, central bank independence, corporate governance, corporate social responsibility, currency manipulation / currency intervention, Doha Development Round, Exxon Valdez, Fall of the Berlin Wall, Firefox, full employment, Gini coefficient, global reserve currency, Gunnar Myrdal, happiness index / gross national happiness, illegal immigration, income inequality, income per capita, incomplete markets, Indoor air pollution, informal economy, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), inventory management, invisible hand, John Markoff, Kenneth Arrow, Kenneth Rogoff, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, microcredit, moral hazard, North Sea oil, offshore financial centre, oil rush, open borders, open economy, price stability, profit maximization, purchasing power parity, quantitative trading / quantitative finance, race to the bottom, reserve currency, rising living standards, risk tolerance, Silicon Valley, special drawing rights, statistical model, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, trickle-down economics, union organizing, Washington Consensus, zero-sum game

Sometimes they are justified by the United States as a precursor to broader multilateral agreements, but in fact these preferential arrangements make it more difficult to reach broader agreements, since inevitably such agreements will take away the privileges—and those favored with the privileges will resist. In bilateral bargaining, the balance of power between the United States and the developing countries is even more lopsided, and the agreements signed so far reflect that. The United States has succeeded in getting some provisions into bilateral agreements that it failed to get into the Doha Round of talks, such as strengthened intellectual property rights and capital market liberalization. Sometimes developing countries sign these agreements under the illusion that, with such an Making Trade Fair 97 agreement in place, investors will flock to their country. With Washington's seal of approval and duty-free access to the United States, there will be a boom. But sometimes, developing countries sign these agreements largely out of fear: fear, for instance, that if they don't, they will lose the preferences that they have long had, and that without preferences they will not be able to compete with the flood of imports from countries like China. 6 ° While a number of agreements have been signed, they are with small countries—such as Chile (population 16 million), Singapore (population 4.3 million), Morocco (population 30.8 million), Oman (population 2.5 million), and Bahrain (population 750,000)—and so involve only a tiny fraction of global trade.

To put it into perspective: it represents four times the level of foreign assistance from the whole world. It represents more than 2 percent of the combined GDP of all developing countries; it corresponds roughly to estimates of what the developing countries need in order to achieve the Millennium Development Goals, including reducing poverty by half. It is much larger than the gains to developing countries from a successful pro-development Doha Round trade agreement. (As we noted in chapter 3 what is likely to emerge, at best, will be of limited value to the developing countries.) The costs to developing countries of the global reserve system can be seen another way. Assume an enterprise within a poor country borrows $100 million short-term from an American bank, paying, say, 20 percent interest. Following the prudential guideline that countries should maintain reserv es equal to short-term dollardenominated debt, the government then—if it doesn't want to face the threat of an imminent crisis—must add $100 million to its reserves: by buying $100 million worth of T-bills, paying 5 percent interest.

Stiglitz and Andrew Charlton, Fair Trade for All: How Trade Can Promote Development (New York: Oxford University Press, 2005). As chief economist of the World Bank, I had called for such a "development round," in a speech delivered to the WTO in March 1999, where I laid out the 306 NOTES TO PAGES 86-89 NOTES TO PAGES 8 1 -86 many ways in which the Uruguay Round had disadvantaged the developing countries. 33. As this book goes to press, the Doha Round has not come to an end. But the parameters of any potential agreements are sufficiently clear that one can make these conclusions, with considerable confidence. 34. See Stiglitz and Charlton, Fair Trade for All, op. cit. 35. One of the main forms that differential treatment takes is giving developing countries longer to adjust. Well-functioning markets facilitate adjustment by helping to redeploy resources.


pages: 311 words: 17,232

Living in a Material World: The Commodity Connection by Kevin Morrison

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barriers to entry, Berlin Wall, carbon footprint, clean water, commoditize, commodity trading advisor, computerized trading, diversified portfolio, Doha Development Round, Elon Musk, energy security, European colonialism, flex fuel, food miles, Hernando de Soto, Hugh Fearnley-Whittingstall, hydrogen economy, Intergovernmental Panel on Climate Change (IPCC), Long Term Capital Management, new economy, North Sea oil, oil rush, oil shale / tar sands, oil shock, out of africa, Paul Samuelson, peak oil, price mechanism, Ronald Coase, Ronald Reagan, Silicon Valley, sovereign wealth fund, the payments system, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, uranium enrichment, young professional

All this puts a question mark over the greenness of biofuels and industry expansion, at a time when many countries are confronting water scarcity and more extreme weather conditions that could be related to climate change. The chapter also looks at the impact of increasing meat consumption on the supply of grains and oilseeds. The influence of government subsidies on the agricultural sector is examined. Reducing agricultural subsidies is the subject of the Doha round of the World Trade Organization talks in order to make the balance fairer between farmers in the developing world and the developed world, which currently receives all of the farm subsidies. Chapter 3 looks at the emergence of the environment as a commodity and how it is now an integral part of the energy and agricultural markets. Both sectors are big contributors to greenhouse gas emissions.

The ascent of Brazil’s status as food basket for the world has occurred without the level of subsidies given to American or European farmers, a fact that has given them considerable political muscle when it comes to agricultural trade talks. Brazil demonstrated this clout when it came up against the US through the World Trade Organization (WTO) over US subsidies on cotton. The action forced the US to drop one of its financial assistance programmes to its cotton farmers, who have since turned their farms over to corn production. Brazil has joined other developing nations to form the G20 to speak with a single voice at the Doha round of trade talks under the WTO. Nevertheless, the primary role of agriculture is to provide food for the world’s 6.6 billion people. This is more than double the world’s population in 1960 and is projected by the United Nations to reach 8.2 billion by 2030. The rise in global population has been accompanied by increased affluence around the world this decade, following the strongest period of economic growth for years.

Boone 163, 164 Pigou, Arthur Cecil 138 Pillsbury 233 Pioneer Hi-Bred 102, 106, 107, 108 Pizza Hut 89 Plant Patent Act 1930 (US) 104 platinum 192–3 Plato: Republic 179 plutonium 42 popcorn 70 population, world 15, 16 n. 11, 23–4, 61 n. 10, 94 portfolios 242–4 Potanin, Vladimir 199 poultry 85–7 Poupard, Cardinal Paul 145 Prebon 260 Precious Woods 149 Project Independence 30 Puranam Ravikkumar 249 Putin, President Vladimir 9, 45 Railpol 182 rapeseed 93–4 Rappaport, Daniel 253, 262 Raymond, Lee 50 Reagan, President Ronald 116, 252 Redford, Robert 265 reduced emissions from deforestation and degradation (REDD) 150 Refco 231 298 | INDEX Regional Greenhouse Gas Initiative (RGGI) 143 Reilly, William 158 renewable energies 34–9 Renewable Fuels Association 80 Reserve Bank of Australia 14 Reuters–CRB Index 240 Rhodes, Cecil 210 Rio Tinto 13, 200, 201, 211, 223 n. 24 Robertson, Julian 236 Robinson, John 105, 106 Rockefeller, John D. 197, 200, 254 Rockefeller, William Goodsell 200 Rogers, Henry 200 Roll, The 241 Romney, Mitt 80 Roogers, Henry H. 197 Roosevelt, President Franklin D. 76, 89, 103 Royal Dutch Shell 260, 261 Rudd, Kevin 171 n. 16 Ryan, John 155, 156, 160 Sahn, Bobby 269 Salad Oil Scandal 245 Samuelson, Paul 238, 239 Sandor, Richard 145–6, 147 Sasol 33 Saudi Aramco 47 Schaeffer, Richard 253, 266, 267, 268, 269 Schwarzenegger, Arnold 37, 38, 130, 144 Secretan, Pierre 200 Secretan Syndicate, The 200 Seed Resource Guide 106 seeds diversity 106–10 GM 104–6, 107 Seven Sisters 251 Seykota, Ed 239 shale oil 50–1, 64 n. 33 Shanghai Futures Exchange 213 Shaw, Robert 265 Shear, Neal 259 Shell 79, 261 Shuff, Thomas 230–1, 233, 238, 270 Silicon Valley 37 Simmons, Matthew 47 Simon, Julian 13, 14, 15 Ultimate Resource 2, The 14 Skilling, Jeffrey 257 Smith, Adam 71 Smith, Captain John 100 Snyder, Pamela 162–3 Societé des Metaux, Le 200 Société Générale 261 Solano Partners 157 solar power 33, 34, 36 Solar Power programme 39 soya bean 68–9, 82, 95, 109, 120 n. 14 Soylent Green 15 n. 4 Spacek, Sissy 114 Spencer, Jonathan 243 sport utility vehicles (SUVs) 64 n. 30 Sprecher, Jeffrey 257, 258, 259, 261, 262, 263 Squanto 100 Standard and Poor’s 240 Standard Chartered 242 Standard Oil 197, 200, 253, 273 n. 14 Star Wars Programme 55 Starbucks 89 Statoil 153 Steinbeck, John: East of Eden 161–2 Steinhause, Mitchell 266 Stern 134 Stern Review 147 Sting, The 265 Subramanian, Shri 35 sugar 89–94 sulphur dioxide 139, 140 sulphur hexafluoride 131 Sumitomo 215 Sumitomo copper scandal 204, 246 Sundblad, Philip 36, 76, 77, 78, 84, 114, 154, 155 Sun-Microsystems 37 Sustainable Forestry Management 147, 148 Sustainable Land Fund, The 157 Suzlon Energy 35 Swingland, Professor Ian 137, 146, 148 Sygenta 106 Tamminen, Terry 38, 53, 54, 55, 60, 144 tantalum 219 Tanti, Tulsi 35 Tara, Kimberly 149, 159, 184 Tata Motors 49 Telsa Motors 191 temperature, global 61 n. 11 teosinte 97 Tertiary Minerals 219 Tesla 38 Thatcher, Margaret 22 thorium 43–4 INDEX Three Mile Island accident 21 Tiger Fund 236 TimeWarner 13 Total 261 Touradji, Paul 218, 236, 237, 239 Touradji Capital Management 218, 237 Toyota 53, 54, 191, 193 tradable polluting permits 137, 138–9 Trading Places 255 Trafigura 199 Trapp, Goran 259 tree hugging 148–9 Truman, President Harry 8 Tudor Capital 237 Turner, Frederick Jackson 209 Tyson 86 UBS 246 United Nations Climate Change Conference (2007) 29 United Nations Environment Programme (UNEP) 173 n. 28 UNESCO 166 Union Miniere 202 United Fruit Company 239 United Nations Framework Convention on Climate Change (UNFCCC) 125–6, 140, 150, 169 n. 2 United States Bureau of Reclamation 163 United States Department of Agriculture (USDA) 73, 74, 90, 95, 109–10 Conservation Reserve Program (CRP) 111 United States Department of Energy 30, 32, 33, 193 United States emissions market 142–4 United States Geological Survey 214 uranium 64 n. 27, 219 highly enriched (HEU) 64 n. 28 uranium-101 41–4 uranium-235 42 uranium hexafluoride (UF6) 42 uranium oxide (U3O8) 42 Vaidhyanathan, Raghuraman 35 Valentine, Billy Ray 256 Vantage Partners 55 Varzi, Mehdi 26, 47 Vatican Climate Forest 145 Vekselberg, Viktor 199 Venter, Craig 38 Verasun 77 | 299 Vice, Charles 258 Viola, Vinnie 253 virtual water 166 Vitol 199 Volcker, Paul 114 voluntary carbon offset schemes 144–5 Vromans, Dr Jaap 58, 59 Walker, Keith 167–8 Wallace, Henry A. 89, 102, 103, 120 n. 14, 122 n. 32 Wallace, Henry C. 103 Wal-Mart 25 Wamsley, John 157 War of the Pacific (1879–83) 198, 207 Wara, Michael 152 Warburg, Paul M. 229 Ward, Dr Richard 262, 263 water 157–68 consumption 158–9 desalination 168 droughts 167 entitlements 167 n. 63 irrigation 159 pollution 110–3 pricing 159–61, 164, 169 rights 162–3, 167, 177 n. 55, 177 n. 58 trading 160, 164–6 virtual 166 Water2water.com 164–5 Waterexchange 165 Webb–Pomerene Act (US) 201 West Texas Intermediate (WTI) 138, 250, 252, 253, 254 Western regional Climate Initiative (WCI) 143 Weston, Guy 147 wetland banking 155–6 Weymar, Helmut 238–9, 247 WFS Water Fund 166 White House Effect 27 Wildlands Inc. 156 wind power 33, 34–5, 36 World Bank 141, 147, 158, 159, 173 n. 28, 217 Global Environment Facility (GEF) 141 World Nuclear Association 41 World Trade Center 255 World Trade Organization (WTO) 94 Doha Round 11, 94 World Water Council 158 WorldCom 257 300 | INDEX Xstrata 211 yellowcake 42 Yeltsin, President Boris 46 Index compiled by Annette Musker Yergin, Daniel 33–4 yield return 242 Zinni, General Anthony (‘Tony’) 168–9


pages: 443 words: 98,113

The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay by Guy Standing

3D printing, Airbnb, Albert Einstein, Amazon Mechanical Turk, Asian financial crisis, asset-backed security, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Bernie Sanders, Big bang: deregulation of the City of London, bilateral investment treaty, Bonfire of the Vanities, Bretton Woods, Capital in the Twenty-First Century by Thomas Piketty, carried interest, cashless society, central bank independence, centre right, Clayton Christensen, collapse of Lehman Brothers, collective bargaining, credit crunch, crony capitalism, crowdsourcing, debt deflation, declining real wages, deindustrialization, Doha Development Round, Donald Trump, Double Irish / Dutch Sandwich, ending welfare as we know it, eurozone crisis, falling living standards, financial deregulation, financial innovation, Firefox, first-past-the-post, future of work, gig economy, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, income inequality, information retrieval, intangible asset, invention of the steam engine, investor state dispute settlement, James Watt: steam engine, job automation, John Maynard Keynes: technological unemployment, labour market flexibility, light touch regulation, Long Term Capital Management, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market clearing, Martin Wolf, means of production, mini-job, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, Neil Kinnock, non-tariff barriers, North Sea oil, Northern Rock, nudge unit, Occupy movement, offshore financial centre, oil shale / tar sands, open economy, openstreetmap, patent troll, payday loans, peer-to-peer lending, Plutocrats, plutocrats, Ponzi scheme, precariat, quantitative easing, remote working, rent control, rent-seeking, ride hailing / ride sharing, Right to Buy, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, sharing economy, Silicon Valley, Silicon Valley startup, Simon Kuznets, sovereign wealth fund, Stephen Hawking, Steve Ballmer, structural adjustment programs, TaskRabbit, The Chicago School, The Future of Employment, the payments system, Thomas Malthus, Thorstein Veblen, too big to fail, Uber and Lyft, Uber for X, Y Combinator, zero-sum game, Zipcar

Its old building was taken over by the body dealing with trade, GATT (the General Agreement on Tariffs and Trade), which later became the World Trade Organization (WTO). GATT was a midwife of globalisation, orchestrating a series of ‘rounds’ of trade liberalisation that culminated in the wide-ranging accords of the Uruguay Round and the creation of the WTO in 1995. For a few years, the WTO was the most vibrant part of Geneva’s globalising architecture. However, it soon ran out of steam, unable to finalise the so-called Doha Round, launched in 2001, and ill-equipped to become an institution of governance. It never built itself into a giant bureaucracy. Today, the WTO has ceased to be a centre of reforming zeal, whereas the World Intellectual Property Organization (WIPO), seen as largely ineffectual in the 1970s and 1980s, has become a core organ of global capitalism. In the centre of the UN complex, its new conference centre juts out imposingly.

The Uruguay Round of trade negotiations that began in 1986 extended the scope of trade talks beyond tariff cutting to non-tariff barriers such as product health and safety rules, liberalisation of services and protection of intellectual property. These accords came into force in 1995 alongside the creation of the WTO. Although there has been no comprehensive multilateral agreement since then – the Doha Round launched in 2001 having run into the sand – there have been more than ten regional deals a year, on average, over that time.35 But trade deals are far outnumbered by bilateral investment treaties (BITs), part of a murky legalistic system creating a straitjacket favouring commercial interests. Some countries have hundreds of BITs. By the end of 2015, the USA had concluded twenty bilateral free trade agreements, nearly fifty BITs and sixty-five other investment accords with individual countries or groups of countries, and was hoping to conclude BITs with India and China.

W. 1, 2 buy-to-let mortgages 1, 2 Cadbury 1 Calmard, Pierre 1 Cameron, David 1, 2, 3, 4, 5, 6 Campaign for Better Transport 1 Cancer Fund of America 1 CAP (Common Agricultural Policy) 1, 2 Capita 1 Capital in the Twenty-First Century 1, 2 Care UK 1 Carlyle Group 1 Carlyle, Thomas 1 Carnegie Institute 1 Carney, Mark 1, 2 Cato Institute 1 Caxton Associates 1 Cerberus 1, 2 CERN (European Organization for Nuclear Research) 1 CETA (Comprehensive Economic and Trade Agreement) 1 charities/charitable donations 1, 2 Charter of Liberties (1215) 1, 2 Charter of the Forest (1217) 1, 2, 3, 4 Chen, Edward 1 Chernukhin, Vladimir 1 Cheshire, Sir Ian 1 Chicago school 1, 2 China Investment Corp. 1 Christensen, Clayton 1 churches 1 circuits of power 1 Citizens Advice 1 Citizens for Tax Justice 1, 2 Citizens UK 1 Citizens United 1 civil commons 1 Clare, John 1 Clickworker 1 climate change 1, 2, 3, 4 Clinton, Bill 1, 2, 3 Clinton, Hillary 1, 2, 3, 4 cloud labour 1 ‘cognitive capitalism’ 1 Coke, Edward 1 collective bargaining 1, 2, 3 Commissioning Support Industry Group 1 commodification 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 Commodity Futures Trading Commission 1 commons 1 and allotments 1 civil commons 1 commodification of 1, 2, 3, 4, 5, 6, 7, 8, 9 and ‘contrived scarcity’ 1, 2, 3 cultural commons 1 and enclosure 1, 2, 3 and Hartwick’s Rule 1, 2, 3, 4 intellectual commons 1 and Lauderdale Paradox 1 and neo-liberalism 1, 2, 3, 4, 5, 6, 7 and precariat 1, 2, 3, 4, 5 revolt of 1, 2, 3, 4, 5 and privatisation 1, 2, 3, 4, 5, 6, 7, 8, 9 social commons 1 spatial commons 1, 2 and universal justice 1 Commons Act (1876) 1 Commons Preservation Society 1 comparative advantage 1, 2 Competition and Markets Authority 1 ‘competitiveness’ concept 1, 2, 3, 4, 5, 6, 7 ‘concierge’ economy 1 Congressional Budget Office (US) 1 Constitution (US) 1 ‘contrived scarcity’ 1, 2, 3, 4, 5 copyright 1, 2 Copyright Act (US, 1790) 1 Corbyn, Jeremy 1 Corporate Europe Observatory 1 corporate welfare 1 corporation tax 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 Couchsurfing 1 Coulson, Andy 1 County Smallholdings Estate 1 ‘credentialism’ 1 ‘creditocracy’ 1 Crime and Disorder Act (1998) 1 ‘crony capitalism’ 1, 2, 3, 4, 5 Crosby, Lynton 1, 2 Crowdcube 1 CrowdFlower 1, 2, 3 crowdfunding 1, 2 crowd-sourcing 1 ‘crowdwork’ platforms 1 cultural commons 1 Cup Trust 1 Daily Mail 1, 2, 3 Daily Mirror 1 Daily Star 1 Daily Telegraph 1 Darling, Alistair 1 ‘data exclusivity’ 1 ‘deadweight effect’ 1 debt and austerity 1, 2, 3 and banking systems 1, 2, 3, 4, 5 cancellation of 1 as exploitation 1 household debt 1, 2, 3, 4 housing debt 1 and mental health 1 platform debt 1 and precariat 1, 2 and predatory creditors 1 public and private 1, 2 and rentier capitalism 1, 2, 3, 4, 5, 6, 7 and securitisation 1, 2 and social policy 1 student debt 1, 2 and tax breaks 1 ‘debt overhang’ 1 deindustrialisation 1, 2, 3 democracy and banking systems 1, 2, 3, 4, 5, 6, 7 circuits of power 1 commodification of 1, 2 and education 1 and Goldman Sachs 1 lobbying 1, 2 and media 1, 2 and Mont Pelerin Society 1, 2 and neo-liberalism 1, 2, 3 party politics 1 and plutocracy 1, 2, 3, 4, 5 political consultancy 1 and precariat 1, 2 and privatisation 1 and rentier capitalism 1, 2, 3, 4, 5, 6, 7 and revolt of precariat 1, 2 ‘thinning’ of 1 Desmond, Paul 1 Didi Kuaidi 1 digital platforms see rentier platforms direct subsidies 1 Discipline and Punish 1 Disney 1, 2 ‘distress’ debt 1 Doha Round 1, 2 ‘Double Irish’ 1, 2 Draghi, Mario 1, 2, 3 Drutman, Lee 1 Dudley, William 1 Duncan Smith, Iain 1 Dutch Disease 1 ‘earnings stripping’ 1 Easton, Jim 1 easyCar Club 1 eBay 1 EBRD (European Bank for Reconstruction and Development) 1, 2 Economist, The 1, 2, 3, 4, 5, 6, 7, 8, 9 Ecosystem Markets Task Force 1 education 1, 2, 3, 4, 5, 6, 7 Edward I, King 1 Einaudi, Luigi 1 Einstein, Albert 1 EITC (Earned Income Tax Credit) 1 Electoral Commission 1, 2 Elizabeth II, Queen 1 Elsevier 1 enclosure 1, 2, 3 Encore Capital 1 ‘entrepreneurial’ debt 1 Equity Lifestyle Properties 1 Erhard, Ludwig 1 EU membership referendum (2016) 1, 2 European Central Bank (ECB) 1, 2, 3, 4, 5, 6 European Patent Office 1 ‘euthanasia’ of rentiers 1, 2, 3, 4, 5, 6, 7 Evening Standard 1 ‘ever-greening’ 1 exchange value 1, 2, 3 Facebook 1, 2 Faraday, Michael 1 Farmer, Michael 1 ‘Faustian bargain’ 1, 2, 3 FDA (Food and Drug Administration) 1 Federal Reserve 1, 2, 3, 4, 5, 6 Feinberg, Stephen 1 Financial Services Authority 1 Financial Times 1, 2, 3, 4, 5, 6, 7 Fisher, Sir Antony 1 Fitzgerald, F.

State-Building: Governance and World Order in the 21st Century by Francis Fukuyama

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Asian financial crisis, Berlin Wall, Bretton Woods, centre right, corporate governance, demand response, Doha Development Round, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, George Akerlof, Hernando de Soto, information asymmetry, liberal world order, Live Aid, Nick Leeson, Pareto efficiency, Potemkin village, price stability, principal–agent problem, rent-seeking, road to serfdom, Ronald Coase, structural adjustment programs, technology bubble, The Market for Lemons, The Nature of the Firm, transaction costs, Washington Consensus, Westphalian system

Both have violated international rules when it has been convenient, while asserting the importance of a rule-based international order. The worst area is agriculture, where U.S. and European subsidies to domestic producers impose enormous costs on poor countries. The welfare costs of the EU’s Common Agricultural Policy have been well understood for many years and amount to hundreds of millions of dollars of lost revenues for countries in Africa, the Middle East, and elsewhere. While pushing for a Doha Round of trade talks that would deal with agriculture, the United States in 2002 passed an agriculture bill that sharply increased subsidies and protections for domestic U.S. producers. The African country of Mali, for example, receives some $37 million annually in grants from the U.S. Agency for International Development but will lose some $43 million in cotton revenues as a result of new subsidies in the bill (Edmund L.

., 95, 108–109 Cambodia, x, 93 Center for International Private Enterprise, 89 n6 charisma, 67 charter schools, 59 Chile, 35 China, 1, 2 civil society, 30, 60 Clinton, William J., 74 Coase, Ronald, 45–47, 68 Cohen, Michael, 52, 79–81 Cohen, Theodore, 86 134 index colonialism, 2 Common Agricultural Policy (EU), 107 Congo, 93 Corruption Perception Index, 10 Cuba, 39 Cyert, Richard, 52, 79–80 Dayton Accord, 103 de Soto, Hernando, 21 decentralization, 25, 72 democracy, 26–29 Demsetz, Harold, 47, 60 Denmark, 22, 42 Doha Round, 107 Dominican Republic, 39 Douglas, Roger, 13 Douglas, Stephen, 114–115 East Timor, x, 93 Easterly, William, 36 education, public, 58 Egypt, 9, 35, 94 European Union, 106–107, 111, 116 attitudes toward sovereignty, 112 Common Agricultural Policy, 107 defense spending in, 111 failed state problem, 92–93, 97, 100 Fama, Eugene, 48 Federal Acquisition Regulations, 73 Federal Bureau of Investigation (FBI), 64 Federal Food Agency (U.S.), 64 federalism, 25, 44, 70 Federalist Papers, 72 Finance Ministry (Japan), 75 Forest Service (U.S.), 64 France, 12, 34, 105 Freedom House, 10 Friedman, Milton, 19 Friedrich, Carl J., 3 Functions of the Executive (Barnard), 78 game theory, 33 General Agreement on Tariffs and Trade, 106 Germany, 12, 31, 35 Nazi, 3 patriotism in, 112 postwar occupation of, 38–39 Glorious Revolution, 33 Greif, Avner, 34 Guantánamo Bay, prisoners at, 105 Haiti, x, 39, 93 Hatch Act, 85 Hayek, Friedrich A., 4, 68, 82 hidden action, 60, 62, 64 Hirschman, Albert O., 59 Hobbes, Thomas, 1 Hong Kong, 19, 38 Hoover, Blaine, 86–87 Hoover, J.


pages: 223 words: 58,732

The Retreat of Western Liberalism by Edward Luce

3D printing, affirmative action, Airbnb, basic income, Berlin Wall, Bernie Sanders, Branko Milanovic, Bretton Woods, call centre, carried interest, centre right, cognitive dissonance, colonial exploitation, colonial rule, computer age, corporate raider, cuban missile crisis, currency manipulation / currency intervention, Dissolution of the Soviet Union, Doha Development Round, Donald Trump, double entry bookkeeping, Erik Brynjolfsson, European colonialism, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, future of work, George Santayana, gig economy, Gini coefficient, global supply chain, illegal immigration, imperial preference, income inequality, informal economy, Internet of things, Jaron Lanier, knowledge economy, liberal capitalism, Marc Andreessen, Mark Zuckerberg, Martin Wolf, mass immigration, means of production, Monroe Doctrine, moral panic, more computing power than Apollo, mutually assured destruction, new economy, New Urbanism, Norman Mailer, offshore financial centre, one-China policy, Peace of Westphalia, Peter Thiel, Plutocrats, plutocrats, precariat, purchasing power parity, reserve currency, Richard Florida, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, Snapchat, software is eating the world, South China Sea, Steve Jobs, superstar cities, TaskRabbit, telepresence, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, Washington Consensus, We are the 99%, We wanted flying cars, instead we got 140 characters, white flight, World Values Survey, Yogi Berra

The answer to the global trade backlash is always to sell trade deals more effectively. It should come as no surprise that democracies are now loath to ratify such agreements. The last time any serious world trade talks were held in a Western city was in Seattle in 1999. It was shut down by protesters. The next time global leaders made the attempt was in 2002, from the safe space of the Arabian Gulf where no dissenters could be heard. The Doha Round died a few years later. Now Donald Trump has killed the Trans-Pacific Partnership, the deal that was launched by George W. Bush and completed by Barack Obama. Trump is also picking apart the Clinton-era North American Free Trade Agreement and has buried hopes of a transatlantic agreement. Britain, meanwhile, is abandoning the European single market. The world’s elites have helped to provoke what they feared: a populist uprising against the world economy.

., 31, 73, 79–81, 103, 156, 157, 163, 165, 182 Bush Republicans, 189 Cameron, David, 15, 92, 98, 99–100 Carnegie, Andrew, 42–3 Cherokee Indians, 114, 134 Chicago, 48 China: as autocracy, 78, 80, 83–6, 159–60, 165, 201; circular view of history, 11; colonial exploitation of, 20, 22–3, 55; decoupling of economy from West (2008), 29–30, 83–4; democracy activists in, 86, 140; entry to WTO (2001), 26; exceptionalism, 166; expulsion of Western NGOs, 85; future importance of, 200–1; and global trading system, 19–20, 26–7; Great Firewall in, 129; handover of Hong Kong (1997), 163–4; history in popular imagination, 163–4; hostility to Western liberalism, 84–6, 159–60, 162; and hydrogen bomb, 163; and Industrial Revolution, 22, 23–4; internal migration in, 41; investment in developing countries, 32, 84; military expansion, 157, 158; as nuclear power, 175; Obama’s trip to (2009), 159–60; political future of, 168–9, 202; pragmatic development route, 28, 29–30; pre-Industrial Revolution economy, 22; rapid expansion of, 13, 20–2, 25–8, 30, 35, 58, 157, 159; and robot economy, 62; Shanghai Cooperation Organization, 80; Trump’s promised trade war, 135, 145, 149; and Trump’s victory, 85–6, 140; US naval patrols in seas off, 148, 158, 165; US policy towards, 25–6, 145–6, 157–61, 165; US–China war scenario, 145–53, 161; in Western thought, 161–2; Xi’s crackdown on internal dissent, 168; Zheng He’s naval fleet, 165–6 China Central Television (CCTV), 84, 85 Christianity, 10, 105 Churchill, Winston, 98, 117, 128, 169 cities, 47–51, 130 class: creeping gentrification, 46, 48, 50–1; emerging middle classes, 21, 31, 39, 159; in Didier Eribon’s France, 104–10; Golden Age for Western middle class, 33–4, 43; Hillaryland in USA, 87–8; ‘meritocracy’, 43, 44–6; mobility as vanishing in West, 43–6; move rightwards of blue-collar whites, 95–9, 102, 108–10, 189–91, 194–5; poor whites in USA, 95–6, 112–13; populism in late nineteenth century, 110–11; and post-war centre-left politics, 89–92, 99; ‘precariat’ (‘left-behinds’), 12, 13, 43–8, 50, 91, 98–9, 110, 111, 131; and Trump’s agenda, 111, 151, 169, 190; urban liberal elites, 47, 49–51, 71, 87–9, 91–5, 110, 204; West’s middle-income problem, 13, 31–2, 34–41 Clausewitz, Carl von, 161 Clinton, Bill, 26, 71, 73, 90, 97–8, 157–9 Clinton, Hillary, 15, 16, 47, 67, 79, 160, 188; 2016 election campaign, 87–8, 91–4, 95–6, 119, 133; reasons for defeat of, 94–5, 96–8 Cold War: end of, 3–5, 6, 7, 74, 77, 78, 117, 121; nuclear near misses, 174; in US popular imagination, 163; and Western democracy, 115–16, 117, 183 Colombia, 72 colonialism, European, 11, 13, 20, 22–3; anti-colonial movements, 9–10; and Industrial Revolution, 13, 23–5, 55–6 Comey, James, 133 communism, 3–4, 5, 6, 105–8, 115 Confucius Institutes, 84 Congress, US, 133–4 Copenhagen summit (2009), 160 Coughlin, Father, 113 Cowen, Tyler, 40, 50, 57 Crick, Bernard, 138 crime, 47 Crimea, annexation of (2014), 8, 173 Cuba, 165 Cuban Missile Crisis (1962), 165, 174 cyber warfare, 176–8 Cyborg, 54 D’Alema, Massimo, 90 Daley, Richard, 189 Danish People’s Party, 102 Davos Forum, 19–20, 27, 68–71, 72–3, 91, 121 de Blasio, Bill, 49 de Gaulle, Charles, 106, 116 de Tocqueville, Alexis, 38, 112, 126–7 democracy, liberal: as an adaptive organism, 87; and America’s Founding Fathers, 9, 112–13, 123, 126, 138; and Arab Spring, 82; Chinese view of US system, 85–6; communism replaces as bête noire, 115; concept of ‘the people’, 87, 116, 119–20; damaged by responses to 9/11 attacks, 79–81, 86, 140, 165; and Davos elite, 68–71; de Tocqueville on, 126–7; declining faith in, 8–9, 12, 14, 88–9, 98–100, 103–4, 119–23, 202–3; demophobia, 111, 114, 119–23; economic growth as strongest glue, 13, 37, 103, 201–2; efforts to suppress franchise, 104, 123; elite disenchantment with, 121; elite fear of public opinion, 69, 111, 118; failing democracies (since 2000), 12, 82–3, 138–9; and ‘folk theory of democracy’, 119, 120; Fukuyama’s ‘End of History’, 5, 14, 181; and global trilemma, 72–3; and Great Recession, 83–4; and Hong Kong, 164; idealism of Rousseau and Kant, 126; illiberal democracy concept, 119, 120, 136–7, 138–9, 204; in India, 201; individual rights and liberty, 14, 97, 120; late twentieth century democratic wave, 77–8, 83; and mass distraction, 127, 128–30; need for regaining of optimism, 202–3; need to abandon deep globalisation, 73–4; nineteenth-century fear of, 114–15; and plural society, 139; popular will concept, 87, 118, 119–20, 126, 137–8; post-Cold War triumphalism, 5, 6, 71; post-war golden era, 33–4, 43, 89, 116, 117; post-WW2 European constitutions, 116; and ‘precariat’ (‘left-behinds’), 12, 13, 43–8, 50, 91, 98–9, 110, 111, 131; the rich as losing faith in, 122–3; Russia’s hostility to, 6–8, 79, 85; space for as shrinking, 72–3; technocratic mindset of elites, 88–9, 92–5, 111; Trump as mortal threat to, 97, 104, 111, 126, 133–6, 138, 139, 161, 169–70, 178–84, 203–4; and US-led invasion of Iraq (2003), 8, 81, 85; Western toolkit for, 77–9; see also politics in West Diamond, Larry, 83 digital revolution, 51–5, 59–66, 67–8, 174; cyber-utopians, 52, 60, 65; debate over future impact, 56; and education, 197, 198; exponential rate of change, 170, 172, 197; internet, 34, 35, 127, 128, 129–30, 131, 163; internet boom (1990s), 34, 59; and low productivity growth, 34, 59, 60; as one-sided exchange, 66–7; and risk-averse/conformist mindset, 40 diplomacy and global politics: annexation of Crimea (2014), 8, 173; China’s increased prestige, 19–20, 26–8, 29–30, 35, 83–5, 159; declining US/Western hegemony, 14, 21–2, 26–8, 140–1, 200–1; existential challenges in years ahead, 174–84; multipolarity concept, 6–8, 70; and nation’s popular imagination, 162–3; parallels with 1914 period, 155–61; and US ‘war on terror’, 80–1, 140, 183; US–China relations, 25–6, 145–6, 157–61, 165; US–China war scenario, 145–53, 161; US–Russia relations under Obama, 79 Doha Round, 73 drugs and narcotics, 37–8 Drutman, Lee, 68 Dubai, 48 Durkheim, Émile, 37 Duterte, Rodrigo, 136–7, 138 economists, 27 economy, global see global economy; globalisation, economic; growth, economic Edison, Thomas, 59 education, 42, 44–5, 53, 55, 197, 198 Egypt, 82, 175 electricity, 58, 59 Elephant Chart, 31–3 Enlightenment, 24, 104 entrepreneurialism, decline of in West, 39–40 Erdoğan, Recep Tayyip, 137 Eribon, Didier, 104–10, 111 Ethiopia, 82 Europe: ‘complacent classes’ in, 40; decline of established parties, 89; geopolitical loss, 141; growth of inequality in modern era, 43; identity politics in, 139–40; migration crisis, 70, 100, 140, 180–1; nationalism in, 10–11, 102, 108–9; nineteenth-century diplomacy, 7–8, 155–6, 171–2; post-war constitutions in, 116; Putin’s interference in, 179, 180; as turning inwards, 14 European Commission, 118, 120 European Union, 72, 117–19, 139–40, 179–80, 181, 201; see also Brexit Facebook, 39, 54, 67, 178 fake news, 130, 148, 178–9 Farage, Nigel, 98–9, 100, 184 fascism, 5, 77, 97, 100, 117 Federal Bureau of Investigation (FBI), 131–2, 133 Felt, Mark, 131–2, 134 financial crisis, global (2008), 27, 29, 30, 91; Atlantic recession following, 30, 63–4, 83–4 financial services, 54 Financial Times, 136, 200 Finland, 139 First World War, 115, 154–5 Flake, Jeff, 134 Florida, Richard, 47, 49, 50, 51 Flynn, Michael, 148, 149 Foa, Roberto Stefan, 123 Ford, Henry, 66–7 Foucault, Michel, 107 France, 15, 37, 63, 102, 104–10, 116; 1968 Paris demonstrations, 188; French Revolution, 3 Franco, General Francisco, 77 Franco-German War (1870–1), 155–6 Frank, Robert H., 30, 35–6, 44 Franklin, Benjamin, 204 Freelancer.com, 63 Friedman, Ben, The Moral Consequences of Economic Growth, 38 Friedman, Thomas, 74 Frontex (border agency), 181 FSB, 6 Fukuyama, Francis, 12, 83, 101, 139, 193–4; ‘The End of History?’


pages: 859 words: 204,092

When China Rules the World: The End of the Western World and the Rise of the Middle Kingdom by Martin Jacques

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Admiral Zheng, Asian financial crisis, Berlin Wall, Bob Geldof, Bretton Woods, BRICs, British Empire, credit crunch, Dava Sobel, deindustrialization, Deng Xiaoping, deskilling, discovery of the americas, Doha Development Round, energy security, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global reserve currency, global supply chain, illegal immigration, income per capita, invention of gunpowder, James Watt: steam engine, joint-stock company, Kenneth Rogoff, land reform, land tenure, Malacca Straits, Martin Wolf, Naomi Klein, new economy, New Urbanism, one-China policy, open economy, Pearl River Delta, pension reform, price stability, purchasing power parity, reserve currency, rising living standards, Ronald Reagan, Scramble for Africa, Silicon Valley, South China Sea, sovereign wealth fund, special drawing rights, special economic zone, spinning jenny, Spread Networks laid a new fibre optics cable between New York and Chicago, the scientific method, Thomas L Friedman, trade liberalization, urban planning, Washington Consensus, Westphalian system, Xiaogang Anhui farmers, zero-sum game

Although the present era of globalization was designed by and is the creature of the West, above all the United States, the greatest beneficiary has been East Asia, especially China.163 If the West should decide at some point that China has been the chief beneficiary - and to the West’s growing detriment - then the latter is likely to become increasingly protectionist and the present global system will be undermined. The process of globalization has already ground to a halt with the failure of the latest World Trade Organization Doha Round and is extremely unlikely to be revived.164 But it remains to be seen whether this will be the prelude to a wider breakdown. Hitherto, the main losers in the Western world have been those unskilled and semi-skilled workers who have been displaced by Chinese competition. But their grievances have been dwarfed by the winners - the multinationals which have used China as a cheap manufacturing base and the many consumers who have benefited from China prices.

There is now a complex web of Free Trade Agreements in the process of negotiation in East Asia which is intended to act ultimately as the basic infrastructure of a wider East Asian Free Trade Agreement, designed to be in place around 2007 and implemented before 2020.32 Whether this ever materializes, of course, is another question, but the progress towards a lowering of tariffs in the region - with China in the driving seat - stands in marked contrast to the effective demise of the WTO Doha round, a point lost on neither ASEAN nor the rest of East Asia.33 ASEAN lies at the core of the new East Asian arrangements and has provided them with their template. Although South-East Asia has always been the poor relation in the region (in 1999, for example, the GDP of the North- East Asian economy was more than nine times that of ASEAN),34 it would have been impossible for North-East Asia to have played the same role because the latter remains too divided, riven by the animosity between Japan and China, and to a lesser extent that between South Korea and Japan, as well as distracted by the disputes over Taiwan and the Korean Peninsula.

Such a development could undermine the present consensus in support of free-trade globalization and result in a turn towards protectionism, the most important target of which would be Chinese imports.147 The impact of the depression, however, suggests that this process may already be happening. If the United States did resort to protectionism, one of the key planks in the Sino-American relationship since the early eighties would be undermined. It would also signal a more general move towards protectionism worldwide and the end of the phase of globalization that was ushered in at the end of the 1970s. The failure of the Doha round is a further indication that this kind of scenario is possible.148 This brings us next to East Asia. There is clear evidence, as discussed in the last chapter, of a fairly dramatic shift in the balance of power in what is now the most important economic region in the world, East Asia having overtaken both North America and Europe. Nothing decisive has happened but nonetheless China has palpably strengthened its position, with even established US allies like Singapore and the Philippines now hedging and seeking a closer accommodation with China.


pages: 234 words: 63,149

Every Nation for Itself: Winners and Losers in a G-Zero World by Ian Bremmer

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airport security, banking crisis, barriers to entry, Berlin Wall, blood diamonds, Bretton Woods, BRICs, capital controls, clean water, creative destruction, Deng Xiaoping, Doha Development Round, energy security, European colonialism, failed state, global rebalancing, global supply chain, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), Julian Assange, labour mobility, Martin Wolf, mass immigration, Mikhail Gorbachev, mutually assured destruction, Nixon shock, nuclear winter, Parag Khanna, purchasing power parity, reserve currency, Ronald Reagan, smart grid, South China Sea, sovereign wealth fund, special economic zone, Stuxnet, trade route, uranium enrichment, Washington Consensus, WikiLeaks, Yom Kippur War

If conflicts like these are possible among reliable allies, imagine how countries might use these weapons against rivals, especially in the absence of viable international institutions to moderate disputes. Whatever the motive, import barriers and heavy subsidies for local farmers reduce potential food supplies available to consumers and push prices higher. They also discourage the kinds of cross-border competition among producers that power technological advances to improve crop yields, increase supplies, and make food more affordable. The Doha Round of World Trade Organization talks is now lying by the side of the road awaiting a decent burial in part because U.S. and European negotiators have refused to ask their farmers to compete on a level playing field. Food security is a classic G-Zero question, because there is no consensus international strategy on what to do when rising food prices create a crisis—or on how to prevent these crises before they happen.

climate change and, 94 as debtor nation, 65, 158, 187 decline of, 63–66 defense program of, 12, 71, 76, 186, 191 entitlement programs in, 12–13, 65, 190 federal debt of, 3, 12, 34, 38, 51, 60, 62, 81, 172, 186, 189 fiscal stimulus in, 11 in G2 with China, 155–84 growing divergence with Chinese economic policies, 62–63, 77 intellectual property laws and, 84 Internet protocol in, 89 leadership role of, 3, 5, 14–15, 24, 25, 40–41, 111, 129, 154, 195 loss of manufacturing jobs in, 64 military commitments of, 187 nuclear program of, 59 oil exported by, 47–48 outsourcing by, 126–27 Pakistan’s relationship with, 115 pollution caused by, 158 poor infrastructure of, 186, 189 possibility of Chinese war with, 170–74 reduced role of, 194, 195 smart grids in, 73 taxes in, 190 trade by, 116–17, 120, 143, 153, 154, 158, 163 unemployment in, 77 in withdrawal from Iraq, 32 in world currency and debt crises, 38 United States and the World Economy, The (Bergsten), 157–58 urbanization, 52, 99, 104–5, 118 Uzbekistan, 135 Varyag, 23 vegetable oil, 100 Venezuela, 25, 48, 138, 168, 177, 182 state capitalism in, 78 Vietnam, 23, 70, 114, 121, 129, 140–41, 194 multinationals in, 80 rice exported by, 102 water security in, 105 Vietnam War, 49 Voice of America, 92 WAPI, 86 war on terror, 11 wars, 123 prevention of, 68 Warsaw Pact, 53 Washington, George, 7 Washington Consensus, 42, 46, 174 water, 68 security of, 3, 5, 97, 104–7, 129–30, 140, 147 Wells, H. G., 86–87 Wen Jiabao, 8, 12, 21, 143 Western Europe, 46–47 oil imported by, 47 West Germany, 45, 46, 47, 53, 82, 165 Wi-Fi, 86 WikiLeaks, 75 World Bank, 4, 28, 29–30, 99, 104, 118, 134, 135 American and European influence in, 42, 43–44 creation of, 39, 43 in world currency and debt crises, 38 World Brain (Wells), 86–87 World Trade Organization, 60 Doha Round, 103 World War I, 3, 11, 40, 141, 167, 170 World War II, 11, 38–40, 56–57, 151, 170, 187 Xinhua, 8, 62, 70 Yanukovych, Viktor, 138 Yeltsin, Boris, 54 Yemen, 14, 67, 114 chaos in, 112, 175, 183 yen, 83 Yom Kippur War, 48–49 yuan: China accused of manipulation of, 79–80, 154, 161–62 as international currency, 83 Yugoslavia, 32 Zambia, 119, 120 Zimbabwe, 7–8, 130, 131–32 Zoellick, Robert, 157 ALSO BY IAN BREMMER The End of the Free Market: Who Wins the War Between States and Corporations?


pages: 437 words: 115,594

The Great Surge: The Ascent of the Developing World by Steven Radelet

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Admiral Zheng, agricultural Revolution, Asian financial crisis, bank run, Berlin Wall, Branko Milanovic, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, clean water, colonial rule, creative destruction, demographic dividend, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, Erik Brynjolfsson, European colonialism, F. W. de Klerk, failed state, Francis Fukuyama: the end of history, Gini coefficient, global supply chain, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), invention of the steam engine, James Watt: steam engine, John Snow's cholera map, Joseph Schumpeter, Kenneth Arrow, land reform, low skilled workers, M-Pesa, megacity, Mikhail Gorbachev, off grid, oil shock, out of africa, purchasing power parity, race to the bottom, randomized controlled trial, Robert Gordon, Second Machine Age, secular stagnation, Simon Kuznets, South China Sea, special economic zone, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, women in the workforce, working poor

Since the end of World War II, the global economy has been undergirded by international organizations and institutions such as the International Monetary Fund, the World Bank, and the General Agreement on Tariffs and Trade (GATT), which evolved into the World Trade Organization. These organizations are part of a larger set of international organizations (including the United Nations) that, for all their many faults, deserve some credit for the increase in global prosperity and reduction in conflict during the past seventy years. These organizations and institutions are showing signs of fraying. One clear example is the failure of the Doha round of global trade talks under the auspices of the WTO. These negotiations began in 2001, with a major objective of improving the trade prospects of developing countries. They stalled in 2008, primarily over disagreements on agriculture import rules and subsidies. The inability to conclude the round is a worrying sign that global trade negotiations will become more difficult in the future. More broadly, as developing countries have progressed in the last several decades, they have begun to demand greater participation and leadership in these organizations, and a louder voice in negotiations and decisions.

Third, the rich countries must lead on making changes to improve the effectiveness and legitimacy of international institutions and organizations. The United Nations, IMF, World Bank, and other organizations were created in the aftermath of World War II at a time of different global power structures and different kinds of problems. They increasingly face major challenges, as evidenced by the failure of the Doha round of trade talks under the auspices of the WTO, the US Congress’s failure to approve the new voting shares and financing arrangements at the IMF, and the creation by China and the BRICS of new development banks. These institutions must evolve to better reflect today’s world economic and political relationships and to focus on solving today’s most critical challenges. Developing countries must be given the opportunity for greater participation and leadership, and a louder voice in debates, negotiations, and decisions.

., 143 Delhi, 287 democracy, 3, 5, 6–7, 9, 16, 21, 22, 23, 97, 146–50, 162, 232, 294, 296, 303, 309 in Africa, 135, 145 Asian values and, 121, 122–23 in Brazil, 186–87 capitalism and, 146, 149 development and, 125 expansion of, 248–49 failures of, 11, 263–64, 273 famines and, 128 and fundamentalist Islam, 265 globalization and, 157 improved governance and, 197–99, 199 lack of attention to increasing, 10 measurement of, 106–15, 110 and oil-exporting countries, 114–15 pessimism over, 120–25 poor countries as, 98 poverty and, 121 in retreat after World War I, 146–47 reversals in, 113–14 rise of, 103–6, 105, 110 slowing down of growth of, 233 demographics, changing, 21 dengue fever, 205 Deng Xiaoping, 43, 185, 289 reforms of, 35, 192 resignation of, ix–x, 123, 134–35 Derg, 100, 187 Desai, Raj, 260 developing countries, 9, 40 challenges to, 294 lack of growth in, 8, 11 as playing substantial role in global markets, 52 skilled leadership needed for, 234 trade between, 47, 262 see also progress in developing countries Development as Freedom (Sen), 19, 127 development assistance, 307–8 development traps, 118 Dhaka, 277 Diamandis, Peter, 300 Diamond, Jared, 13 Diamond, Larry, 110–11, 186 diamonds, 206, 207, 284, 285 Diaoyu, 288 Diarra, Adama, 265 diarrhea, 10, 73, 75, 92, 94, 173, 215 dictatorships, 6, 7, 11, 99–101, 102, 125–29, 143–45, 222–23 private investments and, 223 Dietrich, Simone, 223 Dioura, Cheick, 265 diphtheria, 94, 161 disaster relief, 38 disease, 4, 15, 19, 21, 205, 266–68, 294 attention to, 10 noncommunicable, 268 see also specific diseases Djiguiba, Ansema, 108 Djiguiba, Sulamo, 108 Doe, Samuel, 99, 145 Doha round, 258, 298 Dollar, David, 65, 225 Dominican Republic, 6, 36, 47 aid to, 223 cocoa farmers in, 163 democracy in, 7, 106 exports from, 56 fall of poverty in, 36 growth in, 6, 45, 50, 128 Douglas DC-8, 168 drought, 171, 215 Drought Tolerant Maize for Africa Project, 171 Duarte, José Napoleón, 100 Dubai, 155 Duflo, Esther, 14, 31, 88 Dunning, Thad, 223 Duvalier, François “Papa Doc,” 222 Duvalier, Jean-Claude “Baby Doc,” 127 Duvalier family, 11, 100, 114, 141 East Asia, 5, 7, 50, 167 extreme poverty in, 36 growth in, 141 Easterlin, Richard, 86 Easterly, William, 213 Eastern Europe, 36, 141, 147, 148 trade and, 159 East Germany, x, 134 Ebola, 8, 10, 20, 22, 82, 205, 255, 266 economic growth, 37–38, 47–51, 49, 51, 86, 213 aid and, 224–27 cause of, 52–53 democracy and, 128–29 and poor, 63–65 sustainability of, 61–63 economic reforms, 192–97, 193, 194, 195, 196 Ecuador, 36, 47, 106 education, 4, 5, 6, 16, 24, 31, 77, 85–89, 88, 94–96, 154, 161, 164, 190–91, 191, 232, 247–48, 251, 258, 260–61, 262, 303, 306, 307 in Afghanistan, 215 aid and, 226 in Asia, 201 in Brazil, 187 conflict and, 118–19 of girls, 85–90 health and, 89–93, 205 Egypt: coup in, 113, 124–25, 185 demonstrations in, 281 ORT in, 173 poverty in, 36–37 in Six-Day War, 285 Ehrlich, Paul, 274, 275 Eichengreen, Barry, 236 election monitoring organizations, 110 elections, 198, 262 electricity, 216, 233, 278 electronics, 56, 165 El Salvador, 36, 39, 121 child mortality in, 84 democracy in, 123 dictatorship in, 99–100 war in, 100 End of History and the Last Man, The (Fukuyama), 148–49 energy, 21, 22, 162, 233, 235, 261, 258, 275, 277, 292, 293 environmental degradation, 1, 4, 8, 63, 163 Equatorial Guinea, 114, 184, 223 eRanger “ambulance,” 175 Eritrea, 49, 50 Ershad, Hussain Muhammad, 144 Essay on the Principle of Population, An (Malthus), 270 Essebsi, Beji, 124 Estrada, Joseph, 264 Ethiopia, 141, 144, 159, 285 aid to, 224 China’s example followed by, 266 dictatorship in, 100 growth in, 7, 50, 125, 238, 261 HIV in, 174 individual leadership in, 187 textiles from, 56 Europe, 19, 25, 167, 292, 300 democracy in, 296 leadership needed by, 234 post–World War II boom in, 262 European Union, 202, 259, 297 Executive Index of Electoral Competitiveness, 108 Extractive Industries Transparency Initiative, 306 factories, 165, 235 in Indonesia, 201 Falkland Islands, 100 famine, 4, 10, 128, 232 in Bangladesh, 271 in China, 35 after global food crisis (2007), 12 Fascism, 104, 124, 146, 147, 184, 265, 309 Fate of Young Democracies, The (Kapstein and Converse), 198 fertility rates, 73–74, 80–81, 84–85, 85, 95, 306 finance, 45, 158–61, 163, 234, 241, 305 financial flows, 17, 156, 157, 160, 306 Finland, malaria in, 210 flood, 171, 215, 226 floods, 281 Florecot, 47 food, 56, 79–80, 213, 233, 277, 280, 307 Food and Agriculture Organization, 79, 280 food assistance, 38 food prices, 54, 273, 301–2 food production, 294, 301 food security, 21, 22 Ford Foundation, 170 foreign aid, 10, 12, 18–19, 209–27 bureaucracy of, 222 criticisms of, 218–24 debate over, 213–14, 227 and diversion of government funds, 221–22 growth and, 224–27 monitoring of, 222 as poorly designed, 221 priorities of, 221 foreign direct investment (FDI), 149, 154, 157, 165 foreign exchange reserves, 192 forest loss, 280 Fossati-Bellani, Gabriel, 44 fossil fuels, 301 France, 47, 68, 140 Franco, Itamar, 186 freedom, 127, 131, 161, 198–99, 232 Freedom House, 107–8, 113, 182, 198 Freedom in the World index, 107–8 free markets, 148–49 free trade, 163–64 Friedman, Milton, 213 fuel efficiency standards, 297 Fujimori, Alberto, 185 Fukuyama, Francis, 148–49, 186, 288, 296 fundamentalist Islam, 124 G-7, 298 G-20, 298 Galiani, Sebastian, 227 Gallup, John, 210 Gambia, The, 113, 124, 190 Gandhi, Mohandas K., 293, 294 Gang of Four, 185 Gap, 164 garments, 56, 59 gas, 44, 139 Gates, Bill, 83–84, 213, 217 Gates, Robert, 20 Gdańsk, 103 Gelb, Alan, 205 General Agreement on Tariffs and Trade (GATT), 156, 258 General Electric, 159 genetically modified foods (GMOs), 171–73 genocide, 142 Georgia, 50, 143 growth in, 128, 238 Germany, 250, 298 germ theory, 77 Gerring, John, 129, 248 Getting Better (Kenny), 93 Ghana, 37, 127 aid to, 223 coastal vs. isolated areas in, 201 data entry firms in, 178 democracy in, 106, 122, 188–90 growth in, 6, 7, 22, 45, 50, 128, 261 oil exported by, 53 reforms in, 192 trade encouraged by, 155 Gill, Indermit, 261 Gini coefficient, 66, 70 glasnost, 134 Global Alliance for Vaccines and Immunizations (GAVI), 95, 161 global financial crisis, 12, 52–53, 113, 191, 233, 235, 257, 264, 269, 295, 305 global food crisis, 12, 280–81 Global Fund to Fight AIDS, Tuberculosis and Malaria, 95, 212 Global Health 2035 Commission, 91, 245, 267, 284, 306 global integration, 52 globalization, 17, 19, 131, 150, 158–61, 160, 162, 163–66, 183, 200, 207, 264, 287–88 technology and, 166 Global Malaria Eradication Program, 211–12 gold, 139, 152, 206 Golden Rice, 172 Gorbachev, Mikhail, 133, 134, 143 Gordon, Robert, 257–58 governance, 4, 5, 8, 17, 184, 197–99, 199, 201, 292–93, 294, 304, 307, 309 aid and, 214 and poverty traps, 15 and resource curse, 206 see also democracy Great Britain, 47, 68 colonialism of, 140 Zimbabwe’s independence from, 180 Great Depression, 126, 146 Great Famine, 284 Great Leap Forward, 35, 81, 128, 153 Greece, 105 Green Bay, Wisc., 60 Greenland, 280 Green Revolution, 38, 79, 170–73, 204, 214, 215, 274, 302 Guatemala, 18, 36 coup in, 100 war in, 145 Guinea: demonstrations in, 281 Ebola in, 82 health system in, 266 violence in, 206 Guinea-Bissau, 49, 50 guinea worm, 214 Guns, Germs, and Steel (Diamond), 13 Guntur, 31 H1N1 flu, 20, 82, 267, 269 Hafizibad, 178–79 Haiti, 8, 10, 11, 49, 50, 185, 213 aid to, 224 child mortality in, 82 and democracy, 248 demonstrations in, 281 dictatorship in, 100, 114, 127, 141, 222 earthquake in, 224 health improvements in, 93 lack of growth in, 50 poor governance in, 106, 114 Hansen, Henrik, 226 Harris, Gardiner, 270 Hartwick’s rule, 62 Havel, Václav, 143, 149, 184 Haves and the Have-Nots, The (Milanovic), 65 health, 3, 4, 5, 6, 7–8, 16, 17, 24, 94–96, 154, 161, 164, 166, 178, 232, 233, 234, 245–46, 248, 258, 260–61, 262, 266–69, 303, 306, 307 aid and, 226 in Asia, 201 in Brazil, 187 in China, 201 conflict and, 118–19 education and, 89–93, 205 and poverty traps, 15 technology and, 173–75, 179, 293 health care, 86 health services, 248 Heath, Rachel, 59 He Fan, 298 Henry, O., 97 Hindu nationalists, 287 Hitler, Adolf, 127, 146 HIV/AIDS, 20, 75, 81–82, 83, 94, 95, 173, 174–75, 182, 205, 214, 221, 246, 266 Hobbes, Thomas, 24 Honduras: coup in, 97–98 crime in, 264 war in, 145 Hong Kong: British control of, 153 and globalization, 155 growth in, 147 hookworm, 205 housing, 24, 307 humanitarian relief, 213 human rights groups, 110 Hungary, 7, 143 illiberalism in, 255, 263 protests in, 134 trade encouraged by, 155 Huntington, Samuel, 104, 105, 112, 121, 122, 146, 197, 265, 296 Hussein I, King of Jordan, 187 illiberal democracy, 264 immunization, 94, 178 income, 3, 5, 8, 17, 25, 31, 32, 40, 77, 94, 294 in Africa, 12 in China, 201 climbing, 240–41, 240 doubling of, 4, 5–6, 44 education, health and, 89–93 falling, 11, 49 income inequality, 65–71 between countries, 69–71, 70 within countries, 65–69 incubators, 175 independence from colonialism, 140–43 India, 3, 7, 22, 32–33, 37, 127, 159, 203, 289, 292, 297 colonialism in, 140 data entry firms in, 178 demand in, 53 as democracy, 98, 122, 123, 126 economic reforms in, 192 emigration from, 284 floods in, 281 future of, 234 growth in, 6, 8–9, 17, 21, 45, 50, 71, 128, 235, 237 inequality in, 69–70 infrastructure financing in, 259–60 innovation in, 302 malaria in, 211 natural capital in, 63 Pakistan’s wars with, 141, 145 poverty reduction in, 244 slowdown in growth of, 237, 255, 257, 262 software companies in, 56 terrorism in, 287 trade encouraged by, 155 universities in, 247 water demand in, 279 Zheng He’s trip to, 152 Indian Institute of Technology, 247 Indonesia, 10, 36, 124, 127, 184, 289 agriculture in, 58–59, 204 aid for schools in, 216 aid to, 214, 223 benign dictatorship in, 126 child mortality in, 85 colonial legacy in, 136–40 demand in, 53 democracy in, 106, 112, 114, 115, 122, 123, 124, 250 demonstrations in, 281 as dictatorship, 99, 122 factories in, 201 fertility rates in, 85, 85 growth in, 6, 7, 22, 38–39, 50, 71, 125–26, 128, 147, 233, 238, 242, 262 healthcare in, 95 individual leadership in, 187 Nikes from, 56 population growth in, 85 rice yields in, 215–16 terrorism in, 286 timber, 223 Zheng He’s trip to, 152 industrial equipment, 165 industrial revolution, 24, 25, 77, 135, 166, 300 industry, 45, 56, 260 inequality, 258 infant mortality, 92, 118, 175, 306 in South Africa, 183 infectious diseases, 92 inflation, 11, 192 in Africa, 12 information, 166, 234 information revolution, 175–79, 176 infrastructure, 164, 201, 207, 262 aid projects for, 216 Inkatha Freedom Party, 182, 185 innovation, 234, 258, 292, 294 in China, 236 Institute of World Economics and Politics, 298 institutions, 200, 294, 297–98, 303–4 and resource curse, 206 insurance companies, 241 insurance markets, 305 interest rates, 233, 305 Intergovernmental Panel on Climate Change (IPCC), 282 International Maize and Wheat Improvement Center (CIMMYT), 171 International Monetary Fund (IMF), 102, 235, 237, 239, 258, 259, 260, 298, 309 International Rice Research Institute (IRRI), 171, 215–16 internet, 162, 175, 233, 300 investment, 6, 20, 22, 52, 156, 157, 166, 301, 304–5, 306 in Africa, 12 in technology, 234, 246 Iran, 114, 124 coup in, 100 Zheng He’s trip to, 152 Iraq, 8, 114, 118, 124, 285 US invasion of, 8, 118, 124, 146 Ireland, 284 iron, 25, 53, 159 Islam, 124 fundamentalist, 265 Islamabad, 287 Israel, 106, 285 Istanbul, 201, 206 Istanbul Technical University, 247 Italy, 47, 104 ivory, 152, 206 Jakarta, 137 Jamaica, 49, 50 Jamison, Dean, 246 Japan, 19, 20, 21, 146, 167, 201, 288, 290, 292, 298, 300 as democracy, 122, 123, 126, 250, 296 colonialism in Indonesia, 137 industrialization of, 25–26 leadership needed by, 234 post–World War II boom in, 262 reforms in, 295 slowing of progress in, 250, 255, 257 Jarka, Lamine Jusu, 104 Java, 152, 204 Jensen, Robert, 177 job training, 38 Johannesburg, 58 Johnson, Simon, 13 Johnson Sirleaf, Ellen, 3, 120, 184, 185, 209, 217 Jordan, 285 growth in, 45 individual leadership in, 187 life expectancy in, 78 poverty in, 36 JSI Research and Training Institute, 173 Kabila, Laurent, 185 Kagan, Robert, 253 Kampala, 177 Kaplan, Robert, 11 Kapstein, Ethan, 198 Karimov, Islam, 8, 127, 144, 185 Kathmandu, 203, 206 Kazakhstan, 36, 106, 115, 285 Kelly, James, 254 Kenny, Charles, 11, 93 Kenya, 18, 169 accounting firms in, 56 data entry firms in, 178 horticulture in, 169 Zheng He’s trip to, 152 Kerekou, Mathieu, 144 Kharas, Homi, 240–41, 261 Khatun, Jahanara, 270, 272 Khmer Rouge, 114 Khrushchev, Nikita, 250 Kim, Jim Yong, 231, 242 Kim Il Sung, 100, 144, 184 Kirkpatrick, Jeanne, 124 Kissinger, Henry, 271 Kodari, 203 Kolkata, 203 Korean War, 81, 100, 141, 145 Kosovo, and democracy, 248 Kotler, Steven, 300 Kraay, Aart, 65 Kufuor, John, 189–90 Ku Klux Klan, 124, 265 Kurlantzick, Josh, 263 Kuwait, 47 Kuznets, Simon, 66 KwaZulu-Natal, 182 Kyrgyzstan, 205, 285 labor unions, 102 Lancet, 91, 245, 267, 284, 306 Landes, David, 13 Laos, 184 Latin America, 11, 36, 146 colonialism in, 140 economic growth in, 255 growth in, 50, 141 inequality in, 67–68 megacities in, 277 reforms in, 192 Latvia, growth in, 128 Laveran, Alphonse, 211 leadership, 16, 17–18, 131, 184–87, 200, 201, 234, 303–4 Lebitsa, Masetumo, 57 Lee, Jong-Wha, 87 Lee Kuan Yew, 7, 121, 122, 123, 125, 127 Lensink, Robert, 226 Lesotho, 57, 103 Levine, Ruth, 214 Levi Strauss & Co., 165 Lewis, Arthur, 66 Liberia, 3, 11, 18, 159, 184, 185, 285 aid to, 217 democracy in, 106, 145 Ebola in, 82 growth in, 7, 50 health system in, 266 infrastructure investment in, 216 violence in, 120, 145, 146, 206, 209, 217 Libya, 115 life expectancy, 78–79, 79, 92, 93, 232, 266, 271, 294 Lipset, Seymour Martin, 121 literacy programs, 161, 162, 176, 178–79 literacy rates, 87 Liu Yingsheng, 153 London, 24, 201 Lord’s Resistance Army, 287 Lukashenko, Alexander, 85 Maathai, Wangari, 18 McAfee, Andrew, 166, 300 Macapagal-Arroyo, Gloria, 264 McLean, Malcolm, 167 Madagascar, 49, 50, 263 Mahbubani, Kishore, 241 malaria, 6, 10, 14, 73, 75, 92, 94, 205, 209–13, 221, 246, 302 Malawi, 103, 122, 175, 208 Malaysia, 136 benign dictatorship in, 126 and democracy, 248, 250 forest loss in, 280 malaria in, 211 Zheng He’s trip to, 152 Maldives, 152, 284 Mali, 206 child mortality in, 84 coup in, 114, 264–65 democracy in, 103, 108, 122, 123, 263 economic problems in, 255 as landlocked, 205 poverty in, 122 malnutrition, 73, 80 Malthus, Thomas, 270, 273–74, 275 Mandela, Nelson, 17, 149, 180, 182–83, 184, 198, 309 released from jail, 103, 143, 148 Mandelbaum, Michael, 11 manufacturing, 25, 37–39, 45, 56, 67, 156, 260, 261–62 in China, 235–36 Mao Tse-tung, ix, 35, 81, 102, 123, 127, 134, 185 Maputo, 44 Marcos, Ferdinand, 11, 100, 103, 104, 109, 127, 141, 143, 148, 222 Mariam, Mengistu Haile, 144 Marrakesh, 206 Marshall Islands, 284 Maseru Tapestries and Mats, 57 Massmart Holdings Ltd., 46 Matela Weavers, 57 maternal mortality rates, 246 Mauritania, 281 Mauritius: aid to, 216 child mortality in, 84 as democracy, 98 growth in, 5, 37, 50, 126, 128 Mbasogo, Teodoro Obiang Nguema, 184 Mearsheimer, John, 290–91 measles, 92, 94, 161 Mecca, Zheng He’s trip to, 152 medical equipment, 20, 165 medicine, 21, 31 megacities, 277 Meiji Restoration, 25–26, 146 Melaka, 136 Menchú Tum, Rigoberta, 18 Mexico, 159, 162 default by, 101–2 democracy strengthening in, 115 demonstrations in, 281 emigration from, 284 growth in, 235 Micklethwait, John, 295 middle class, 20, 240–41 Middle East, 36, 184, 256, 265 conflict in, 146 democracy and, 265 financing in, 259 growth in, 50 life expectancy in, 82–83 oil from, 201 trade and, 159 middle-income trap, 261 Milanovic, Branko, 65, 70 Millennium Challenge Corporation, 216 Millennium Development Goals (MDGs), 18, 30–31, 95, 217, 242 Millennium Summit, 217 Mills, John Atta, 189 minerals, 22, 152, 205–6 Ming China, 151–53 minimum wage, 165 mining, 278 Ministry of Finance, Gambia, The 190 Mitteri Bridge, 203 Mobarak, Mushfiq, 59 Mobile Alliance for Maternal Action (MAMA), 178 mobile devices, 47 mobile phones, 157, 175–78, 176 Mobilink-UNESCO, 179 Mobutu Sese Seko, 11, 100, 127, 141, 143, 145, 222 Moi, Daniel Arap, 103 Moldova, 6, 7, 36, 143 Mongolia, 108 aid to, 223 coal and iron ore exported by, 53 democracy in, 104, 122, 123, 144 growth in, 6, 7, 45, 128 Moran, Ted, 164–65 Moreira, Sandrina Berthault, 226 Morocco: demonstrations in, 281 growth in, 6, 50 individual leadership in, 187 inequality in, 67 poverty in, 36 Morrisson, Christian, 25, 27, 28 mosquitoes, 212 Moyo, Dambisa, 12 Mozal aluminum smelter, 44 Mozambique, 11, 18, 43–45, 159 aid to, 214, 216 aluminum exported by, 53 and democracy, 248 demonstrations in, 281 growth in, 6, 50, 261 inequality in, 67 infrastructure investment in, 216 reforms in, 192 state-owned farms in, 195 war in, 100, 145 M-Pesa, 47 Mubarak, Hosni, 113, 125, 185 Mugabe, Robert, 8, 106, 113, 127, 144, 181, 182, 185, 221 Mumbai, 287 Museveni, Yoweri, 112, 187 Musharraf, Pervez, 113 Mussolini, Benito, 104, 146 Myanmar, 9, 22, 112, 144, 184, 208, 263 child mortality in, 82 cyclones in, 281 health improvements in, 93 Namibia, ix, x, 37 democracy in, 135 growth in, 50 life expectancy in, 266 war in, 100, 145 National Academy of Sciences, US, 172 National Constituent Assembly, Tunisia, 124 National Institutes of Health, US, 302 natural capital, 62–63 Natural Resource Governance Institute, 306 Nazarbayev, Nursultan, 106 Nazism, 124, 146, 265, 309 Ndebele tribe, 180 Nepal, 37, 174, 203–4, 208 democracy in, 107, 122, 123 demonstrations in, 281 as landlocked, 202, 205 poverty in, 122 Netherlands, 47 Indonesian colonialism of, 136–37, 138, 139 New Development Bank, 259 New Orleans, La., 201 New York, N.Y., 201, 277 New York Times, 104, 176–77, 270 New Zealand, 25, 78, 167, 202, 231 Nicaragua, 11, 36 democracy in, 104 war in, 100, 145 Niger, 208 agriculture in, 204 democracy in, 124, 263 as landlocked, 202, 205 mobile phones in, 177–78 Nigeria, 115, 159, 243, 245, 287 dictatorship in, 99, 113 health technology in, 175 oil in, 285 per capita wealth in, 62 Nike, 165, 202 Nkomo, Joshua, 181 noncommunicable diseases (NCDs), 268 non-governmental organization (NGOs), 110, 221 Noriega, Manuel, 144 North Africa, 36 growth in, 50 life expectancy in, 82–83 trade and, 159 North American Free Trade Agreement (NAFTA), 156, 162 North Korea, 8, 9, 100, 144, 184, 192, 208, 243 nutrition, 232 Obama, Barack, 297 Obama administration, 297 O’Hanlon, Michael, 299 oil, 44, 53, 62, 67, 114–15, 201, 205, 285 in Equatorial Guinea, 223 in Indonesia, 138, 139 oil crises, 10 open markets, 131 Opium Wars, 153 oral rehydration therapy (ORT), 94, 173, 215 overfishing, 61 overtime regulations, 165 Paarlberg, Rob, 172 Pakistan, 37, 162, 243, 245, 285–86 conflict in, 118, 119 coup in, 113 and democracy, 263 emigration from, 284 factories in, 58 India’s wars with, 141, 145 terrorism in, 287 violence in, 146 Panama, 9 growth in, 50, 128, 238 US invasion of, 144 Panama Canal, 211 Panasonic, 202 Papua New Guineau, 50, 213 Paraguay, 50, 280 Park Chung-hee, 99, 122 patents, 157 Peace Corps, 75, 90, 202 pensions, 38, 241 People Power Revolution, 186 Perkins, Dwight, 235 pertussis, 94, 161 Peru, 159, 185, 285, 287 agriculture in, 56–57 copper exported by, 53 demonstrations in, 281 pharmaceuticals, 20, 165 Philippines, 7, 11, 17, 18, 100, 103, 121, 127, 184, 185, 201, 222, 289, 290, 297 call centers in, 178 corruption in, 264 democracy in, 104, 106, 109, 122, 123, 250, 263 growth in, 242 inequality in, 67 nickel exported by, 53 rice yields in, 215–16 transcribers in, 56 Piketty, Thomas, 68–69 Pinker, Steven, 115 Pinochet, Augusto, 107–8, 122, 141, 143–44, 187 Plano Real (“Real Plan”), 187 Plundered Planet, The (Collier), 292 pneumonia, 73 Poland, 6, 18, 36, 103, 143, 184, 186 protests in, 134 trade encouraged by, 155 universities in, 247 polio, 94, 119, 161, 215 Polity IV Project, 107, 109 pollution, 302 Population Bomb, The (Ehrlich), 274 population growth, 21, 80–81, 84, 95, 233, 234, 272, 273–77, 276 Portfolios of the Poor (Collins et al.), 32, 33–34 Port of Cotonou, 216 Portugal, 105, 123, 136 poverty, 94, 294 definitions and terminology of, 26–27 democracy and, 121 as exacerbated by conflicts, 119, 119 as man-made, 180 poverty, extreme, 5, 8, 25, 26, 27–30, 30, 31–35, 36, 41, 42, 118, 231, 232, 240, 241–45, 244, 256, 271 in China, 35, 36, 242 in Indonesia, 136 in South Africa, 183 poverty, reduction of, 3, 4, 5, 8, 17, 21, 27–31, 28, 30, 34–35 in Africa, 12 in China, 201 after global food crisis (2007), 12 ignorance of, 10 lack of attention to, 10 poverty traps, 14–16 pregnancy, 178 press, freedom of, 198–99 Preston, Samuel, 92 Preston curves, 92 Pritchett, Lant, 89, 235, 262 Programa Bolsa Família, 38, 67 progress in developing countries, x, 3–5, 45–53, 46, 49, 229, 237–39, 238 democratization and, see democracy factors for, 16–19 future of, 21–23 as good for West, 19–21 income growth in, 240–41, 240 investment in, 238 and long historical perspective, 13 and microlevel studies, 13–14 middle class emergence in, 240–41 pessimism about, 9–12 possible stalling of, 255–56 possible tripling of incomes in, 277–78 and poverty traps, 14–16 reduction of poverty in, see poverty, reduction of threats to, 291–92 transforming production in, 262–63 property rights, 142, 303 protein, 280 Protestant work ethic, 120–21 Publish What You Pay, 305 Punjab, 178–79 Putin, Vladimir, 224, 255 Radelet, John, 60 Rahman, Ziaur, 271 Rajan, Raghuram, 225, 237 Rajasthan, 33 Ramos, Fidel, 103 Ramos-Horta, José, 184 Ravallion, Martin, 27, 29, 64, 227, 243 Rawlings, Jerry, 188–89 Rebirth of Education, The (Pritchett), 89 recession (1980s), 10, 191 Reebok, 164 religion, freedom of, 198–99 religious bodies, 110 Reserve Bank, Zimbabwe, 181 resource curse, 54, 163, 206 resource demand, 21, 233, 272, 281 resource extraction, 162–63 resources, 275 in Africa, 261 resource wars, 284–86 retail trade, 37, 45 Return of History and the End of Dreams, The (Kagan), 253 Reuveny, Rafael, 272 Rhodes, Cecil, 180 Rhodesia, 43 rice, 139, 215–16 rickshaw drivers, 32–33 Ridley, Matt, 11 rights, 131, 161, 198–99 rinderpest, 215 Rio de Janeiro, 46, 58, 159, 201 river blindness, 214 roads, 169, 233, 235 aid for, 216 in South Africa, 202 Robinson, James, 13, 140, 249 robotics, 261, 301 Rockefeller Foundation, 170 Rodrik, Dani, 261, 263 Roll Back Malaria Partnership, 212 Romania, 36, 50, 134, 143 Romero, Óscar, 100 Roosevelt, Franklin, 100 Roosevelt, Theodore, 169 Ross, Ronald, 211 Royal Economic Society, 226 Russia, 47, 146, 222, 256 democracy in, 113, 263, 264 infrastructure financing in, 259–60 slowing of progress in, 250, 264 Ukraine invaded by, 192, 233 US aid banned by, 224 Rutagumirwa, Laban, 176–77 Rwanda, 144, 159 aid to, 214, 216, 224 China’s example followed by, 266 growth in, 6, 7, 45, 50, 125, 128, 261 individual leadership in, 187 as landlocked, 207 Sachs, Jeffrey, 14–15, 175, 205, 210, 213, 219 Safaricom, 47 salinity, 171, 215 Sall, Macky, 114 Samoa, 202 sanitation, 73, 77, 216, 303 Sargsyan, Vazgen, 113 Saudi Arabia, 115 savings rate, 201 schistosomiasis, 205 Schlesinger, Arthur, Jr., 121 Schumpeter, Joseph, 249 Second Machine Age, The (Brynjolfsson and McAfee), 166, 300 secular stagnation, 257 seed drill, 25 seeds, 171 semiconductors, 20 Sen, Amartya, 19, 123, 127, 128 Sendero Luminoso, 287 Senegal, 7, 37 aid to, 223, 224 corruption in, 114 democracy in, 123, 124, 263 demonstrations in, 281 growth in, 261 inequality in, 67 Senkaku islands, 288 Seoul, 201 September 11, 2001, terrorist attacks of, 269 services, 67, 260, 261–62 severe acute respiratory syndrome (SARS), 82, 267 Seychelles, 284 Shanghai, 201 Shenzhen, 91 Sherpas, 203 Shikha, 33–34 Shinawatra, Thaksin, 254–55, 264 Shinawatra, Yingluck, 255 Shining Path, 287 shipping, 202 shipping containers, 167–68 shock therapy, 219 shoes, 56, 139, 162, 262 Sierra Leone, 220, 285 democracy in, 104, 107 Ebola in, 82 growth in, 50 health system in, 266 violence in, 146, 206 Silk Road, 206 silks, 152 silver, 152 Simon, Julian, 294 Sin, Jaime, 18, 103 Singapore, 7, 16, 184 benign dictatorship in, 126 and democracy, 122, 248, 250 and globalization, 155 growth in, 125, 139, 147 universities in, 247 Singh, Manmohan, 192 Six-Day War, 285 skills and capabilities, 16, 190–92 slavery, 142, 156, 180, 206 smallpox, 214, 215 Smith, Adam, 151, 156, 200–201 Smith, David, 43 Smith, Marshall, 178–79 SMS text messages, 47, 178 Snow, John, 77 social safety net, 38, 39, 68, 164, 307 Sogolo, Nicéphore, 144 soil, 171, 215 Solow, Robert, 165 Somalia, 8, 9, 99, 119, 213, 243 aid to, 224 power vacuum in, 184 Zheng He’s trip to, 152 Somoza García, Anastasio, 100, 127 Song-Taaba Yalgré women’s cooperative, 178 South Africa, 7, 17, 18, 20, 22, 37, 43, 46, 127, 143, 145, 155, 182–83, 207 aid to, 223 apartheid in, 44, 57, 68, 100, 103, 135, 141, 180, 182 banks in, 56 corruption in, 264 economic growth in, 183, 235, 262 future of, 234 HIV in, 174 inequality in, 68 infrastructure financing in, 259–60 life expectancy in, 266 political turmoil in, 57 roads in, 202 universities in, 247 South Asia, 37, 50 Southeast Asia, 5, 12, 167 colonialism in, 140 growth in, 141 Southern Rhodesia, 180 South Jakarta, 286 South Korea, 36, 127, 159, 184, 201, 288, 290 aid to, 214, 216 benign dictatorship in, 126 democracy in, 104, 122, 126, 250 as dictatorship, 99, 122 and globalization, 155 growth in, 7, 16, 29, 71, 125, 139, 147, 236, 262 individual leadership in, 187 inequality in, 68 lack of resources in, 205 land redistribution in, 68 Soviet Union, x, 50, 126, 133–34, 145, 148, 298, 309 Afghanistan invaded by, 134, 146 collapse of, 16, 81, 103, 131, 135, 142, 156, 250, 251 countries controlled by, 141 dictatorships supported by, 100 malaria in, 210 Spain, 105, 123, 140 speech, freedom of, 198–99 Spence, Michael, 86, 165 Spratly Islands, 289 Sputnik, 147, 250 Sri Lanka, 11, 37 economic problems in, 255 engineers from, 56 malaria in, 211 Zheng He’s trip to, 152 Stalin, Joseph, 127 state-owned farms, 195 Stavins, Robert, 297 steam engine, 25, 300 Steinberg, James, 299 Stern, Nicholas, 213, 292 Stiglitz, Joseph, 213, 227 stock exchanges, 241 Strait of Malacca, 201 student associations, 110 Subic Bay Naval Station, 201 Subramanian, Arvind, 225 Sudan, 114, 115, 185, 206, 208, 285 aid to, 224 China’s example followed by, 266 violence in, 285 Suharto, 99, 112, 122, 126, 138–39, 144 Sumatra, 152 Summers, Lawrence, 88, 227, 235, 246, 257 Sustainable Development Goals, 217 Swaziland, life expectancy in, 266 sweatshops, 58 Sweden, 159 Switzerland, 27, 202 Sydney, 201 Syria, 8, 285 aid to, 224 conflict in, 118, 119, 146, 233, 255 in Six-Day War, 285 Taiwan, 29, 153, 201, 289, 290 aid to, 216 benign dictatorship in, 126 democracy in, 122, 126, 250 and globalization, 155 growth in, 125, 139, 147, 236, 262 individual leadership in, 187 lack of resources in, 205 Tajikstan, 205, 208 Tanzania: aid to, 214, 216 and democracy, 248 fruit markets in, 58 growth in, 45, 50, 238, 240, 261 purchasing power in, 27 reforms in, 192 Zheng He’s trip to, 152 tariffs, 44, 102, 155, 167, 193, 263, 305 Tarp, Finn, 226 tax revenues, 241, 247 Taylor, Charles, 99, 145 technology, x, 17, 19, 22, 94–96, 135, 150, 151–79, 183, 200, 206–7, 234, 245, 258, 294, 301 for agriculture, 170–71 for banking, 175, 179 in China, 154–55, 236 for education, 178–79 globalization and, 156, 166 for health, 173–75, 179, 293 terrorism and, 287–88 telecommunications, 158 Terai, 211 terms-of-trade ratio, 54 terrorism, 19, 20, 21, 146, 286–88 tetanus, 94, 161 textiles, 25, 56, 139, 152 Thailand, 9, 22, 36, 253–55, 265 benign dictatorship in, 126 child mortality in, 84 corruption in, 254, 264 and democracy, 248, 253–54, 255, 263 growth in, 139, 147, 262 protests in, 255, 263 Zheng He’s trip to, 152 Theroux, Paul, 12 Things Fall Apart (Achebe), 72 think tanks, 110 Third Wave, The (Huntington), 121 Thomas, Brendon, 90–91 Tiananmen Square, 148 Tibet, 203 Tigris, 285 timber, 61, 139, 206, 223, 285 Timbuktu, 206 Timor-Leste, 36, 139, 144, 184, 220 aid to, 223 democracy in, 106, 122 infrastructure investment in, 216 poverty in, 122 tin, 139 Tokyo, 201, 277 totalitarianism, 10–11, 16 tourism, 45 toys, 56, 139 trade, x, 6, 17, 20, 22, 52, 156, 157, 162–63, 193, 203, 204–5, 234, 257, 303 in agriculture, 273 Asian economic miracle and, 170, 201 growth of, 157, 158–59, 160 sea-based, 200–201 shipping containers and, 167–68 trade unions, 110 transportation, 166, 261 Truth and Reconciliation Commission, 182 T-shirts, 159, 164 Tuareg, 265 tuberculosis, 75, 94, 161, 205, 214 Tull, Jethro, 25 Tunisia: democracy in, 7, 106, 124, 255, 263 growth in, 50, 238 Turkey, 36, 127, 285 aid to, 223 authoritarian rule in, 255 demand in, 53 democracy in, 106, 123, 124, 263 future of, 234 growth in, 6, 7, 22, 235, 238 protests in, 263 trade encouraged by, 155 universities in, 247 Turkmenistan, 114, 266, 285 Tutu, Desmond, 18, 103, 185 Uganda, 106, 112, 144, 159, 287 aid to, 216 and democracy, 263, 264 growth in, 50 horticulture producers in, 169 individual leadership in, 187 inequality in, 67 infrastructure investment in, 216 mobile phones in, 176–77 Ukraine, 143, 192, 233 Ultimate Resource, The (Simon), 294 unemployment benefits, 38, 164 United Fruit Company, 223 United Nations, 79, 212, 217, 258, 275, 298, 309 United Nations’ International Labour Organization, 57 United States, 19, 47, 68, 148, 231, 292, 300 China’s relationship with, 298–99 countries controlled by, 141 coups supported by, 100 democracy criticized in, 126 democracy in, 112, 296 and dictatorships, 139, 222 Iraq invasion by, 8, 118, 124, 146 leadership needed by, 234 natural capital in, 63 Panama invaded by, 144 post–World War II boom in, 262 protection provided by, 289–90 in World War II, 137 universities, 247 urbanization, 4, 22, 233, 268, 276–77, 279 US Agency for International Development (USAID), 95, 170, 171, 216, 308 Uyuni Sal Flat, 205 Uzbekistan, 8, 145, 185, 281, 285 vaccines, 77, 94, 161, 214, 233, 302 Velvet Revolution, 103 Venezuela, 22, 47, 106, 115 and democracy, 248, 263, 264 economic problems in, 255 natural capital in, 63 Vereenigde Oostindische Compagnie (VOC), 136–37 Vietnam, 36, 106, 144, 289 aid to, 214, 224 China’s example followed by, 266 growth in, 7, 45, 50, 125, 128, 147, 262 individual leadership in, 187 inequality in, 67 life expectancy in, 78 rice yields in, 215–16 textiles from, 56 Zheng He’s trip to, 152 Vietnam War, 100, 138, 141, 145, 289 Vincent, Jeffrey, 61 violence, 6, 20, 290 decline in, 4, 115–20, 116, 117, 119, 145–46 poverty deepened by, 119, 119 and poverty traps, 15 over resources, 284–86 Vitamin A deficiency, 173–74 Viviano, Frank, 152 Wade, Abdoulaye, 114, 224 Wałesa, Lech, 18, 103, 143, 149, 184, 186 Walls, Peter, 181 Walmart, 46 Wang Huan, 90–91 war, 5 attention to, 10 and poverty traps, 15 reduction of, 3, 4, 6 watchdog groups, 110 water, 77, 80, 161, 216, 275, 277–80, 307 water conservation, 233 water pollution, 8 water shortages, 22, 73 Watt, James, 25 Wealth and Poverty of Nations, The (Landes), 13 Wealth of Nations, The (Smith), 200–201 Weber, Max, 120 West Africa, 8, 10, 22, 205 colonialism in, 140 West Bengal, 31 Western Samoa, 75, 202 What We Know (AAAS report), 281–82 “When Fast Growing Economies Slow Down” (Eichengreen et al.), 236 White, Howard, 226 white supremacy, 124 “Why Isn’t the Whole World Developed?”


pages: 565 words: 164,405

A Splendid Exchange: How Trade Shaped the World by William J. Bernstein

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Admiral Zheng, asset allocation, bank run, Benoit Mandelbrot, British Empire, call centre, clean water, Columbian Exchange, Corn Laws, David Ricardo: comparative advantage, deindustrialization, Doha Development Round, domestication of the camel, double entry bookkeeping, Eratosthenes, financial innovation, Gini coefficient, God and Mammon, ice-free Arctic, imperial preference, income inequality, intermodal, James Hargreaves, John Harrison: Longitude, Khyber Pass, low skilled workers, non-tariff barriers, Paul Samuelson, placebo effect, Port of Oakland, refrigerator car, Silicon Valley, South China Sea, South Sea Bubble, spice trade, spinning jenny, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, trade liberalization, trade route, transatlantic slave trade, transatlantic slave trade, transcontinental railway, upwardly mobile, working poor, zero-sum game

The caller was neither the British prime minister nor the pope, but Alfonso ("Alfie") Fanjul.56 Since the inception of GATT, virtually all nations have sidestepped its best efforts to lower barriers to agricultural trade-the rich nations with non-tariff barriers (mainly subsidies) and the poor ones with direct tar- iffs.57 After the September 11 attacks, the United States and Europe convened the Doha Round of GATT talks under the auspices of the newly formed World Trade Organization (WTO)-the successor to the ITO. The Doha Round explicitly sought to end all subsidies by 2013 in order to alleviate poverty in the developing world, the breeding ground for international terrorism. Negotiations collapsed ignominiously in July 2006 in a hail of mutual recrimination. None of the three major parties to the talks-Americans, Europeans, and developing nations-could bring itself to offend its sacro sanct farmers. One observer noted that the failure of the Doha Round was a "big victory for the farm lobby groups," and the Indian representative declared, "We can't negotiate subsistence and livelihood ... we should not even be asked to do that."

The Age of Turbulence: Adventures in a New World (Hardback) - Common by Alan Greenspan

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air freight, airline deregulation, Albert Einstein, asset-backed security, bank run, Berlin Wall, Bretton Woods, business process, call centre, capital controls, central bank independence, collateralized debt obligation, collective bargaining, conceptual framework, Corn Laws, corporate governance, corporate raider, correlation coefficient, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, cuban missile crisis, currency peg, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, double entry bookkeeping, equity premium, everywhere but in the productivity statistics, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, full employment, Gini coefficient, Hernando de Soto, income inequality, income per capita, invisible hand, Joseph Schumpeter, labor-force participation, labour market flexibility, laissez-faire capitalism, land reform, Long Term Capital Management, Mahatma Gandhi, manufacturing employment, market bubble, means of production, Mikhail Gorbachev, moral hazard, mortgage debt, Myron Scholes, new economy, North Sea oil, oil shock, open economy, Pearl River Delta, pets.com, Potemkin village, price mechanism, price stability, Productivity paradox, profit maximization, purchasing power parity, random walk, reserve currency, Right to Buy, risk tolerance, Ronald Reagan, shareholder value, short selling, Silicon Valley, special economic zone, the payments system, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, trade liberalization, trade route, transaction costs, transcontinental railway, urban renewal, working-age population, Y2K, zero-sum game

+ Luxembourg's exports, for example, were 177 percent of GDP in 2006, and its imports, 149 percent. Nonetheless, after the major opening up of world markets, especially following the demise of the Soviet Union, many barriers and inefficiencies have already been removed. In a sense, most of the low-hanging fruit of trade openings has already been picked. Certainly the inability to complete the Doha round of trade negotiations in 2006 should give us all pause regarding the future pace of global enhancement of the world's living standards. The rate of decline in trade barriers is almost surely going to slow as we reach the point of intractable political resistance to further lowering. This suggests that the growth of export-oriented economies, such as those of East Asia, is not likely to be as rapid as that of the last six decades.

A "fully globalized" world is one in which unfettered production, trade, and finance are driven by profit seeking and risk taking that are wholly indifferent to distance and national borders. That state will never be achieved. People's inherent aversion to risk, and the home bias that is a manifestation of that aversion, mean that globalization has limits. Trade liberalization in recent decades has brought about a major lowering of barriers to movement in goods, services, and capital flows. But further progress will come with increasing difficulty, as the stalemate in the Doha round of trade negotiations demonstrated. Because so much of our recent experience has little precedent, it is dif365 More ebooks visit: http://www.ccebook.cn ccebook-orginal english ebooks This file was collected by ccebook.cn form the internet, the author keeps the copyright. THE AGE OF T U R B U L E N C E ficult to determine how long today's globalization dynamic will take to play out. And even then we have to be careful not to fall into the trap of equating the leveling-off of globalization with the exhaustion of opportunities for new investment.

Parenthetically, one consequence of those controls was t h e emergence of company-supplied medical insurance as a means to attract workers whose wages w e r e frozen. T h e consequences of t h a t system are all t o o evident to today's U.S. manufacturers. 398 More ebooks visit: http://www.ccebook.cn ccebook-orginal english ebooks This file was collected by ccebook.cn form the internet, the author keeps the copyright. EDUCATION AND INCOME INEQUALITY cent multilateral effort (the Doha round of trade negotiation) to further ease restrictions on international trade, however, have raised political red flags against a further spread of globalization. To a greater or lesser extent, most developed countries have experienced the impact of technology and globalization much as the United States has. Yet, although they confront increasing income concentration, the impact to date appears to be significantly milder than what we are experiencing in the United States.


pages: 354 words: 92,470

Grave New World: The End of Globalization, the Return of History by Stephen D. King

9 dash line, Admiral Zheng, air freight, Albert Einstein, Asian financial crisis, bank run, banking crisis, barriers to entry, Berlin Wall, Bernie Sanders, bilateral investment treaty, bitcoin, blockchain, Bonfire of the Vanities, borderless world, Bretton Woods, British Empire, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collateralized debt obligation, colonial rule, corporate governance, credit crunch, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, debt deflation, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Snowden, eurozone crisis, facts on the ground, failed state, Fall of the Berlin Wall, falling living standards, floating exchange rates, Francis Fukuyama: the end of history, full employment, George Akerlof, global supply chain, global value chain, hydraulic fracturing, Hyman Minsky, imperial preference, income inequality, income per capita, incomplete markets, inflation targeting, information asymmetry, Internet of things, invisible hand, joint-stock company, Long Term Capital Management, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, moral hazard, Nixon shock, offshore financial centre, oil shock, old age dependency ratio, paradox of thrift, Peace of Westphalia, Plutocrats, plutocrats, price stability, profit maximization, quantitative easing, race to the bottom, rent-seeking, reserve currency, reshoring, rising living standards, Ronald Reagan, Scramble for Africa, Second Machine Age, Skype, South China Sea, special drawing rights, technology bubble, The Great Moderation, The Market for Lemons, the market place, trade liberalization, trade route, Washington Consensus, WikiLeaks, Yom Kippur War, zero-sum game

The phrase ‘Washington Consensus’ – which originally referred to a ten-point plan involving, inter alia, fiscal discipline, tax reform, trade liberalization, open cross-border capital markets, property rights and privatization3 – was reinterpreted pejoratively as a symbol of US ‘neo-liberalism’, leading to huge criticism of the post-war Washington-based institutions that, in earlier decades, had done so much to foster economic stability. Multilateral trade talks stalled. The GATT Uruguay Round was the last to be completed, back in 1994. The World Trade Organization (WTO), GATT’s successor, failed to complete a single multilateral trade agreement, with the doomed Doha Round – Uruguay’s successor – seemingly preserved in aspic, a relic of an earlier, more optimistic age. The second Gulf War – which ultimately deposed Saddam Hussein – created both a rather modest ‘coalition of the willing’ and what might be best described as a ‘coalition of the very doubtful’, a large number of nations that regarded the invasion as an act of folly. Ultimately, only three countries – the UK, Australia and Poland – provided troops to fight on the ground alongside the armies of their American commander-in-chief.

(i), (ii), (iii), (iv), (v) Byzantium (i) Cabinet (UK) (i) California (i), (ii) caliphates (i), (ii), (iii) Callaghan, Jim (i), (ii) Cameron, David (i) Canada a reputable country (i) Asian Development Bank and (i) closes gap on US (i) Irish emigrate to (i), (ii) North America Free Trade Agreement (i), (ii) TPP (i) Cape of Good Hope (i) capital, mobility of (i), (ii), (iii), (iv) see also cross-border capital flow Capital in the Twenty-First Century (Thomas Piketty) (i) capitalism communism and (i) free-market capitalism (i), (ii), (iii), (iv) Fukuyama’s disciples on (i) Steffens and Shaw on (i) US economic model and (i) Caribbean (i) Carter, Jimmy (i) Castillon, Battle of (i) Castro, Fidel (i) Catherine of Aragon (i) Catherine the Great (i) Catholics (i), (ii), (iii) Caucasus (i), (ii) Central African Republic (i), (ii) Central America (i) Central Asia (i), (ii), (iii) see also Asia central banks (i), (ii) see also bankers inflation targets (i) Kosmos (i) price distortion (i) printing money (i), (ii) quantitative easing (i), (ii), (iii) zero interest rates and (i) Chad (i) Chechens (i) checks and balances (i), (ii) Chile (i) China (i), (ii), (iii), (iv) 1980 emergence (i) ageing population (i) attracting Western investment (i) balance of payments surplus (i) boom to slowdown (i) Brazil and (i) British in (i) Coca-Cola and (i) demand for German goods (i) Deng Xiaoping (i) Disney and (i) economic resurgence (i), (ii) excess capital in US (i) foreign capital for (i) iPhones (i) Japan and (i) living standards (i) military spending (i) OECD and (i) per capita incomes (i), (ii) ratifies Paris climate deal (i) rise of renminbi (i), (ii) Russia threatens (i) South China Sea and neighbour disputes (i) TPP and (i) treaty ports (i) Trump’s protectionism and (i) US tries to contain (i), (ii), (iii) Chongqing (i), (ii) Christianity (i), (ii), (iii), (iv), (v) Churchill, Winston (i), (ii), (iii), (iv)n1 CIA (i) Ciudadanos (i) Cleveland, Grover (i) climate change (i), (ii) Clinton, Hillary 2016 campaign (i) Bernie Sanders opposes (i) concerns of supporters (i) rejects TPP (i), (ii) Syria (i) wins Democrat nomination (i) clubs (i), (ii) Cobden, Richard (i), (ii), (iii) Coca-Cola (i) ‘coffin ships’ (i) Cold War binary rivalry, a (i) economic differences (i) end of (i), (ii) globalization and (i) NATO and (i) Soviet living standards (i) collateralized debt obligations (CDOs) (i) Collins, Philip (i) Columbus, Christopher (i), (ii), (iii) commodity markets (i), (ii), (iii) common sense (i) Commonwealth (i) communism Berlin Wall and (i) capitalism and (i) Cuba (i) Marx’s stages (i) Shaw extols (i) Soviet Union collapse and (i), (ii) Como, Lake (i) Comptoir National d’Escompte de Paris (i) Concert of Europe (i) Congo (i) Congress (US) 1933 banking crisis (i) American public’s confidence in (i) Bush Jnr on terrorism (i) Immigration Act 1917 (i) Japanese sanctions (i), (ii) Smoot–Hawley tariff (i) Congress of Vienna (i), (ii), (iii), (iv) Connally, John (i) Conolly, Arthur (i) Conservative Party (i), (ii) Constantinople (i), (ii) Constitutional Tribunal (Poland) (i) ‘Convention of Peking’ (i) Convention on the International Regulations for Preventing Collisions at Sea (i) Corbyn, Jeremy (i), (ii) Córdoba (i), (ii) corporate scandals (i) Corroyer, Edouard (i) Court of Cassation (Egypt) (i) Crécy, Battle of (i) Creole languages (i) Crimea (i), (ii) Crimean War (19th century) (i) crop yields (i) cross-border capital flow allocation of resources and (i) emerging markets and (i), (ii) extraordinary growth of (i), (ii), (iii) globalization dominated by (i) inequality and (i) Varoufakis tries to limit (i) Cuba (i) Czech Republic (i) Czechoslovakia (i) Darius the Great (i) Darwin, Charles (i) Davos (i), (ii) de Gaulle, Charles (i), (ii) debt (i) Africa (i) China (i) debt to income ratios (i) government debt (i) Latin America (i) low inflation and (i) deflation (i), (ii), (iii), (iv) Delhi (i) demand management (i), (ii) Democratic Party (US) (i), (ii) Democratic Republic of the Congo (i) Denfert-Rochereau, Eugène (i) Deng Xiaoping (i), (ii), (iii), (iv) Denmark (i), (ii) Department of Housing and Urban Development (US) (i) deposit insurance (i) devaluation 1930s (i), (ii), (iii) dollars, gold and (i) Eisenhower and Britain (i) franc (i) right conditions for (i) Diaoyu (i) Disney (i), (ii) Doha Round (i) dollar (US) see American dollar Dow Jones Industrial Average (i) Draghi, Mario (i) Duisburg (i) Duterte, Rodrigo (i), (ii) DVDs (i) East Africa (i) see also Africa Eastern Europe EU and its effects (i) importing democracy (i) joining the EU (i), (ii) Molotov–Ribbentrop Pact (i) New World emigration (i) Ottoman Empire and (i) Soviet communism and (i), (ii), (iii) ‘Economic Theory of Clubs’ (James Buchanan) (i) Ecuador (i) Eden, Anthony (i), (ii) Edison, Thomas (i) Edison Electric (i) educational attainment (i) Edward VI, King (i) Egypt (i), (ii), (iii) Einstein, Albert (i) Eisenhower, Dwight D.


pages: 540 words: 168,921

The Relentless Revolution: A History of Capitalism by Joyce Appleby

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1919 Motor Transport Corps convoy, agricultural Revolution, anti-communist, Asian financial crisis, asset-backed security, Bartolomé de las Casas, Bernie Madoff, Bretton Woods, BRICs, British Empire, call centre, collateralized debt obligation, collective bargaining, Columbian Exchange, commoditize, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, deskilling, Doha Development Round, double entry bookkeeping, epigenetics, equal pay for equal work, European colonialism, facts on the ground, failed state, Firefox, fixed income, Ford paid five dollars a day, Francisco Pizarro, Frederick Winslow Taylor, full employment, Gordon Gekko, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, Hernando de Soto, hiring and firing, illegal immigration, informal economy, interchangeable parts, interest rate swap, invention of movable type, invention of the printing press, invention of the steam engine, invisible hand, Isaac Newton, James Hargreaves, James Watt: steam engine, Jeff Bezos, joint-stock company, Joseph Schumpeter, knowledge economy, land reform, Livingstone, I presume, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, moral hazard, Parag Khanna, Ponzi scheme, profit maximization, profit motive, race to the bottom, Ralph Nader, refrigerator car, Ronald Reagan, Scramble for Africa, Silicon Valley, Silicon Valley startup, South China Sea, South Sea Bubble, special economic zone, spice trade, spinning jenny, strikebreaker, the built environment, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thorstein Veblen, total factor productivity, trade route, transatlantic slave trade, transatlantic slave trade, transcontinental railway, union organizing, Unsafe at Any Speed, Upton Sinclair, urban renewal, War on Poverty, working poor, Works Progress Administration, Yogi Berra, Yom Kippur War

When Charles Dickens visited America in 1842, he found to his dismay unauthorized copies of his works spilling off the shelves of American bookstores.2 Sadly the big losers from the failure to ratify the Doha round were those nations at the bottom of the world trade universe, poor, smaller countries desperate for the Western nations to stop subsidizing the crops that they want to export to them. Proponents of a new agreement had hoped that high food prices might entice protected farm blocs in the West to back off. Even America’s Democratic Party, now in power, has embraced the rhetoric of protection. Progress won’t come to a halt with the failure of the Doha round. Bilateral trade agreements will replace this multilateral one, and a new round of talks will surely begin. When it does, it will become obvious that it is no longer a joust between the West and the rest, but rather a game with at least three contending groups: the developed West and Japan; the Four Little Tigers, China and India now enjoying enough economic progress to make their own demands heard; and other developing countries like Brazil and Chile threatened by their former friends India and China, whose enormous markets and accelerating exports are changing the playing field once again.

Both China and India are societies of ancient lineage with impressive achievements in science, religion, and the arts. As their potential for economic growth has burgeoned in the last two decades, their voices have grown louder in international meetings. The World Trade Organization and Its Critics China and India refused to accept the 2008 round of trade negotiations conducted at Doha, capital city of Qatar, under the umbrella of the World Trade Organization. The breakdown in the Doha round looked a lot like Yogi Berra’s “déjà vu all over again.” The sight of nations jockeying for special privileges to the neglect of shared concerns brought back scenes from the 1920s. The depths of the Great Depression and the horrors of World War II had convinced Western nations to give up protective tariffs and accept restraints imposed by the Bretton Woods agreement. Fast-forward sixty-one years, and the snake of national interests has reappeared in the global Garden of Eden.


pages: 468 words: 145,998

On the Brink: Inside the Race to Stop the Collapse of the Global Financial System by Henry M. Paulson

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asset-backed security, bank run, banking crisis, break the buck, Bretton Woods, collateralized debt obligation, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, Doha Development Round, fear of failure, financial innovation, fixed income, housing crisis, income inequality, London Interbank Offered Rate, Long Term Capital Management, margin call, money market fund, moral hazard, Northern Rock, price discovery process, price mechanism, regulatory arbitrage, Ronald Reagan, Saturday Night Live, short selling, sovereign wealth fund, technology bubble, too big to fail, trade liberalization, young professional

At each G-20 summit, the leaders condemn protectionism, but they do so against the backdrop of increasing political pressures at home that have resulted in a variety of measures that are inconsistent with their repeated pledges. The U.S.’s own commitment to trade liberalization remains in question. As I complete this book, no action has been taken on pending free-trade agreements, and no progress has been made on completing the World Trade Organization’s Doha round of multilateral trade talks. In a world where virtually everyone agrees we have had inadequate regulation of banks and capital markets, there is a very real danger that financial regulation will become a wolf in sheep’s clothing, rivaling tariffs as the protectionist measure of choice for those nations that want to limit or eliminate competition not only in financial services but also in any other sector of their economy.

The February 2009 U.S. stimulus bill contained a “Buy American” provision that has led to similar protectionist language in other bills. Both federal and state officials are seeking to insert protectionist restrictions even where they are not required by law. The best way to combat protectionism, whether by tariff or regulation, is with strong leadership from the U.S. We must keep our markets open for trade and investment, enact previously negotiated trade pacts, work toward a successful Doha round, and forge new trade agreements and investment treaties. We must also demonstrate our commitment to rebuilding our economy, fixing our regulatory system, and getting the government out of the private sector as soon as possible. The world needs to know that we are serious about reducing our budget deficit and cleaning up our other messes. I am quite hopeful that we will put in place the necessary reforms for the financial system.


pages: 497 words: 123,718

A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption by Steven Hiatt; John Perkins

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airline deregulation, Andrei Shleifer, Asian financial crisis, Berlin Wall, big-box store, Bob Geldof, Bretton Woods, British Empire, capital controls, centre right, clean water, colonial rule, corporate governance, corporate personhood, deglobalization, deindustrialization, Doha Development Round, energy security, European colonialism, financial deregulation, financial independence, full employment, global village, high net worth, land reform, large denomination, liberal capitalism, Long Term Capital Management, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, Naomi Klein, new economy, North Sea oil, offshore financial centre, oil shock, Ponzi scheme, race to the bottom, reserve currency, Ronald Reagan, Scramble for Africa, statistical model, structural adjustment programs, too big to fail, trade liberalization, transatlantic slave trade, transfer pricing, union organizing, Washington Consensus, working-age population, Yom Kippur War

In fact, the only WTO ministerial that has not collapsed since 1998 was the one in Doha, Qatar, in 2001, held just two months after the September 11 terrorist attacks and located in a country that forbade both political dissent and free entry. Negotiators in Doha were left alone to prove to the Bush administration that they were either with or against the United States. Five years and three failed ministerial meetings later, however, the Doha Round is all but dead, and many believe it is sounding the death knell for the entire WTO as an institution. One reason for its demise is the increasing number of developing countries whose leaders are now opposed to corporate globalization. Electoral Victories Across the globe, peoples’ movements for global justice have swept in elected officials representing their views. These officials have then brought resistance into the institutions of corporate globalization.

Treasury Department 88, 240, 252 Uzbekistan 200 VA Tech 23–14 Venezuela: Chavez government 273 coup attempt in 3, 25 foreign debt 230, 233 oil industry 154 Vietnam 229 foreign debt 225, 243 Volcker, Paul 78, 82 Wälde, Thomas 147 Walker, Peter Lord 138 Wallach, Lori 273 Watson-Clark, Nigel 113–14, 115–17, 121–22, 124, 127–30 When Corporations Rule the World (Korten) 4 Williamson, Craig 26 Witt, Dan 134–35, 136–39, 144–45 Washington consensus see neoliberalism Wolfowitz, Paul 27, 126 World Bank 19, 23, 135, 253, 275 Argentina and 169–73 Congo and 100 conflicts of interest 243–44 culture of lending 157, 158, 173–74 debt relief and 221–22, 224, 226, 237, 240–41, 242–46, 250–51 dictators and 158, 159 export credit agencies and 199, 201, 202, 204, 212, 213, 214 investigations of fraud 158, 162–73 Iraq and 151–52 Liberia and 159–67 Nigeria and 167–69 offshore banking and 43, 234 Philippines and 175–84 privatization and 100, 191, 277 protests against 266 structural adjustment programs 191–91, 265–66 World Economic Forum 126–27 World Forum on Globalization and Global Trade 271 World Gold Council 244 World Social Forum 271 World Trade Organization 4, 188, 189, 275 Agreement on Agriculture 271–72 agricultural trade and 186–87, 271–72 Doha Round 272–73 establishment of 267–68 export credit agencies and 200, 215 foreign sales corporations and 51 protests against 266, 270–73 Uruguay Round 215 Yamani, Sheikh Ahmad Zaki 145 Yemen, foreign debt 225, 243 Yergin, Daniel 139 Zaire see Congo Zambia: foreign debt 230, 247, 249 impact of IMF SAP 22 Zapatista Army of Liberation 272 Zedillo, Ernesto 238 Zeng Peiyan 126–27 Table of Contents Cover Page Title Page Copyright Page Contents Introduction: New Confessions and Revelations from the World of Economic Hit Men 1 Global Empire: The Web of Control 2 Selling Money—and Dependency: Setting the Debt Trap 3 Dirty Money: Inside the Secret World of Offshore Banking 4 BCCI’s Double Game: Banking on America, Banking on Jihad 5 The Human Cost of Cheap Cell Phones 6 Mercenaries on the Front Lines in the New Scramble for Africa 7 Hijacking Iraq’s Oil Reserves: Economic Hit Men at Work 8 The World Bank and the $100 Billion Question 9 The Philippines, the World Bank, and the Race to the Bottom 10 Exporting Destruction 11 The Mirage of Debt Relief 12 Global Uprising: The Web of Resistance About the Authors Acknowledgments Appendix Index


pages: 464 words: 139,088

The End of Alchemy: Money, Banking and the Future of the Global Economy by Mervyn King

Andrei Shleifer, Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, Bretton Woods, British Empire, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, centre right, collapse of Lehman Brothers, creative destruction, Credit Default Swap, crowdsourcing, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, distributed generation, Doha Development Round, Edmond Halley, Fall of the Berlin Wall, falling living standards, fiat currency, financial innovation, financial intermediation, floating exchange rates, forward guidance, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, German hyperinflation, Hyman Minsky, inflation targeting, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, large denomination, liquidity trap, Long Term Capital Management, manufacturing employment, market clearing, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Nick Leeson, North Sea oil, Northern Rock, oil shale / tar sands, oil shock, open economy, paradox of thrift, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, quantitative easing, rent-seeking, reserve currency, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Satoshi Nakamoto, savings glut, secular stagnation, seigniorage, stem cell, Steve Jobs, The Great Moderation, the payments system, Thomas Malthus, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, yield curve, Yom Kippur War, zero-sum game

Today, however, the attraction of reform is that the anticipation of higher productivity will boost current spending, helping economies to emerge from the present relative stagnation. Second, the promotion of trade. Throughout the post-war period, the expansion of trade has been one of the most successful routes to faster productivity growth, allowing countries to specialise and exchange ideas about new products and processes. In the latest attempt to reach an agreement on further reductions in tariffs and other trade barriers, the so-called Doha Round (which started in 2001) of the World Trade Organisation has run into the sand. One of the impediments was the attempt by the larger emerging market economies to protect their domestic sectors. The best way forward now would be for the advanced economies to push further liberalisation in trade of services – the dominant part of our economies and a growing proportion of overall trade – not only to benefit from increased trade and its effects on productivity but also to demonstrate to the emerging markets that they cannot block all progress in this area.

Abe, Shinzo, 363 ABN Amro, 118 Acheson, Dean, 368 Ahmed, Liaquat, The Lords of Finance, 158 AIG, 142, 162 alchemy, financial, 5, 8, 10, 40, 50, 91, 191–2, 257, 261, 263–5, 367, 369; illusion of liquidity, 149–55, 253–5; maturity and risk transformation, 104–15, 117–19, 250–1, 254–5; pawnbroker for all seasons (PFAS) approach, 270–81, 288, 368 Ardant, Henri, 219 Arrow, Kenneth, 79–80, 295 Asian financial crisis (1990s), 28, 349, 350 Asian Infrastructure Investment Bank, 349–50 Australia, 74, 259, 275, 348 Austria, 340, 341 Austro-Hungarian Empire, 216 Bagehot, Walter, 212, 218, 335; Lombard Street (1873), 94–5, 114–15, 188, 189, 190, 191–2, 202, 208, 251, 269 Bank for International Settlements, 31, 255, 276, 324 Bank of America, 103–4, 257 Bank of England, 169, 217, 275, 280, 320–1; Bank Charter Act (1844), 160, 198; during crisis, 36, 37–8, 64, 65, 76, 118, 181–3, 184, 205, 206; Financial Policy Committee, 173; garden at, 73–4; gold reserves, 74, 75, 77, 198; governors of, 6, 12–13, 52–3, 175–6, 178; granting of independence to (1997), 7, 166, 186; history of, 92, 94, 156–7, 159, 160, 180–1, 186, 188–201, 206, 335; inflation targeting policy, 7, 167, 170, 322; Monetary Policy Committee (MPC), 173, 329–31; as Old Lady of Threadneedle Street, 75; weather vane on roof, 181 bank runs, 37–8, 93, 105–8, 187–92, 253–4, 262 Bankia (Spanish bank), 257–8 banking sector: balance sheets, 31, 103–4; capital requirements, 137–9, 255–6, 258, 280; commercial and investment separation, 23, 98, 256, 257; creation of money by, 8, 59–63, 86–7, 91, 161, 253, 263; as dangerous and fragile, 8, 23, 33, 34, 36–7, 91–2, 105, 111, 119, 323–4; deposit insurance, 62, 107–8, 137, 254–5, 328; European universal banks, 23–4; and ‘good collateral’, 188, 190, 202–3, 207, 269; history of, 4–5, 18–19, 59–60, 94–5, 187–202, 206–7; implicit taxpayer subsidy for, 96–7, 107, 116–17, 191–2, 207, 254–5, 263–4, 265–6, 267–8, 269–71, 277; interconnected functions of, 95–6, 111–12, 114–15; levels of equity finance, 103, 105, 109, 112, 137–9, 173, 202, 254–9, 263, 268, 280, 368 see also leverage ratios (total assets to equity capital); liquidity support stigma, 205–7; misconduct scandals, 91, 100, 118, 151, 256; narrow and wide banks, 263–5, 266–7, 279; political influence of, 3, 6, 288–9; recapitalisation of (October 2008), 37–8, 201; taxpayer bailouts during crisis, 4, 38, 41, 43, 93, 94, 106, 118, 162, 243, 247, 261, 267–8; ‘too important to fail’ (TITF), 96–7, 99, 116–17, 118, 254–5, 263–4, 279–80; vast expansion of, 23–4, 31–3, 92–4, 95, 96–9, 115–18; visibility of, 92–3, 94; see also alchemy, financial; central banks; liquidity; regulation Banque de France, 159 Barclays, 95 Barings Bank, 137, 193 ‘behavioural economics’, 132–4, 308, 310 Belgium, 201, 216, 340 Benes, Jaromir, 262 Bergsten, Fred, 234 Berlusconi, Silvio, 225 Bernanke, Ben, 28, 44, 91, 158, 175–6, 183, 188, 287 bills of exchange, 197–8, 199 bitcoins, 282–3 Black, Joseph, 56 Blackett, Basil, 195–6 Blair, Tony, 186 Blakey, Robert, The Political Pilgrim’s Progress (1839), 251–3 Blinder, Alan, 164 BNP Paribas, 35 Brazil, 38 Brecht, Bertolt, The Threepenny Opera (1928), 88, 93 Bremer, Paul, 241 Bretton Woods system, 20–1, 350, 352 British Empire, 216, 217 Bryan, William Jennings, 76, 86–7 Buffett, Warren, 102, 143 building societies, 98 Bunyan, John, Pilgrim’s Progress (1678), 251 Cabaret (film, 1972), 52, 83 Cambodia, 246 Cambridge University, 12, 83, 292–3, 302 Campbell, Mrs Patrick, 220 Campbell-Geddes, Sir Eric, 346 Canada, 116, 167, 170 capitalism, 2, 5, 8, 16–21, 42, 155, 366; as best way to create wealth, 17, 365–6, 369; and end of Cold War, 26–7, 365; money and banking as Achilles heel, 5, 16–17, 23–6, 32–9, 40–1, 50, 369–70; Schumpeter’s ‘creative destruction’, 152; see also market economy Carlyle, Thomas, 16 Carney, Mark, 176 Caruana, Jaime, 324 central banks, 156–9; accountability and transparency, 158, 168, 169–70, 175–6, 178–80, 186, 208; and ‘constrained discretion’, 169–70, 186; creation of ‘emergency money’, 48, 65–6, 71, 86, 172, 182–3, 189, 196–7, 201–7, 247, 275; during crisis, 36–9, 64, 65, 76, 113, 118, 158, 159, 162, 181–4, 205, 206, 335; and disequilibrium, 46–7, 171–2, 175, 208, 329–32; exclusive right to issue paper money, 160, 165, 283; and expectations, 28, 176–8, 304; forecasting by, 179–80, 304–5; future of, 207–10; gold reserves, 74–5, 77, 198; history of, 159–60, 161–2, 180–1; independence of, 5–6, 7, 22, 71, 165–7, 169–70, 185–6, 209–10, 357; industry of private sector watchers, 178; integrated policy framework, 187, 208–9, 288; as ‘lenders of last resort’ (LOLR), 94–5, 109–10, 163, 187–97, 202–7, 208, 259, 268, 269–70, 274–5, 288; and ‘macro-prudential policies’, 173–5, 187; monetary policy rules, 168–9; and money supply, 63, 65–6, 76, 86–7, 162, 163, 180–4, 192, 196–201; pawnbroker for all seasons (PFAS) approach, 270–81, 288, 368; in post-crisis period, 43–4, 63, 76, 162–3, 168–9, 173, 175, 179–80, 183–6; printing of electronic money by, 43, 52, 359; proper role of, 163, 172, 174–5, 287; and swap agreements, 353; see also Bank of England; European Central Bank (ECB); Federal Reserve central planning, 20, 27, 141 Chiang Mai Initiative, 349 ‘Chicago Plan’ (1933), 261–4, 268, 273, 274, 277–8 China, 2–3, 22, 34, 77, 306, 322, 338, 357, 362–3, 364; banking sector, 92, 93; export-led growth strategy, 27–8, 319, 321, 323–4, 356; falling growth rates, 43–4, 324, 363; medieval, 57, 68, 74; one child policy in, 28; problems in financial system, 43–4, 337, 362–3; savings levels in, 27–8, 29, 34; trade surpluses in, 27–8, 46, 49, 319, 321, 329, 364 Chou Enlai, 2 Churchill, Winston, 211, 366 Citigroup, 90, 99, 257 Clark, Kenneth, 193 Clinton, President Bill, 157 Cobbett, William, 71–2 Cochrane, John, 262 Coinage Act, US (1792), 215 Cold War, 26–7, 68, 81–2, 350, 365 Colley, Linda, 213–14 communism, 19, 20, 27 Confucius, 10 Cunliffe, Lord, 178, 193 currencies: break-up of sterling area, 216; dollarisation, 70, 246, 287; ‘fiat’, 57, 283; during government crises, 68–9; monetary unions, 212–18, 238–49 see also European Monetary Union (EMU, euro area); optimal currency areas, 212–13, 215, 217, 248; ‘sterlingisation’ and Scotland, 244–7, 248; US dollar-gold link abandoned (1971), 73; virtual/digital, 282–3; see also exchange rates cybercrime, 282 Cyprus, 363–4 Czech Republic, 216 Debreu, Gerard, 79–80, 295 debt, 140; bailouts as not only response, 343–4; as consequence not cause of crisis, 324–5; forgiveness, 339–40, 346–7; haircut on pledged collateral, 203, 204, 266, 269, 271–2, 275, 277–8, 280; household, 23, 31, 33–4, 35; importance of for real economy, 265–6; as likely trigger for future crisis, 337–8; and low interest rates, 337; quantitative controls on credit, 173, 174–5; rise in external imbalances, 22–3, 24–5, 27–31, 33–4, 45–7, 48–9, 236, 306–7, 319–24, 329–30, 338, 364; and rising asset prices, 23, 24, 31–2; role of collateral, 266–7, 269–81; see also sovereign debt decolonisation process, 215 deflation, 66, 76, 159, 164, 165 demand, aggregate: ‘asymmetric shocks’ to, 213; disequilibrium, 45–9, 316, 319–24, 325–7, 329–32, 335, 358–9; in EMU, 221, 222–3, 229, 230, 236; during Great Stability, 319–24; and Keynesianism, 5, 20, 41, 293, 294–302, 315–16, 325–6, 327, 356; and monetary policy, 30, 41–9, 167, 184–5, 212–13, 221, 229–31, 291–2, 294–302, 319–24, 329–32, 335, 358; nature of, 45, 325; pessimism over future levels, 356, 357–60; price and wage rigidities, 167; and radical uncertainty, 316; rebalancing of, 357, 362–3, 364; saving as source of future demand, 11, 46, 84–5, 185, 325–6, 356; as weak post-crisis, 38–9, 41–2, 44–5, 184–5, 291–2, 337, 350, 356–60 democracy, 26–7, 168, 174, 210, 222, 318, 348, 351; and euro area crisis, 224–5, 231, 234–5, 237–8, 344; and paper money, 68, 77; rise of non-mainstream parties in Europe, 234–5, 238, 344, 352 demographic factors, 354, 355, 362 Denmark, 216–17, 335 derivative instruments, 32–3, 35–6, 90, 93–4, 97–8, 100, 101, 117, 141–5; desert island parable, 145–8 Dickens, Charles, 1, 13–14, 233 disequilibrium: and aggregate demand, 45–9, 316, 319–24, 325–7, 329–32, 335, 358–9; alternative strategies for pre-crisis period, 328–33; and central banks, 11–12, 46–7, 171–2, 175, 208, 329–32; continuing, 42, 45–8, 49, 171–2, 291, 334–5, 347, 353, 356–70; coordinated move to new equilibrium, 347, 357, 359–65; definition of, 8–9; euro area at heart of, 248, 337; and exchange rates, 319, 322–3, 329, 331, 364; high- and low-saving countries (external imbalances), 22–3, 24–5, 27–31, 33–4, 45–7, 48–9, 236, 307, 319–24, 329–30, 338, 364; in internal saving and spending, 45–8, 49, 313–16, 319–21, 324, 325–6, 329–30, 356; and ‘New Keynesian’ models, 306; the next crisis, 334–5, 336–8, 353, 370; and paradox of policy, 48, 326, 328, 333, 357, 358; and stability heuristic, 312–14, 319–21, 323, 331, 332; suggested reform programme, 359–65 division of labour (specialisation), 18, 54–5 Doha Round, 361 Domesday Book, 54, 85 dotcom crash, 35 ‘double coincidence of wants’, 55, 80, 82 Douglas, Paul, 262 Draghi, Mario, 225, 227, 228 Dyson, Ben, 262 econometric modelling, 90, 125, 305–6 economic growth: conventional analysis, 44–5, 47; as low since crisis, 11, 43–4, 290–2, 293, 324, 348, 353–7; origins of, 17–21; pessimism over future levels, 353–7; in pre-crisis period, 329, 330–1, 351–2; slowing of in China, 43–4, 324, 362; stability in post-war period, 317–18 economic history, 4–5, 15–21, 54–62, 67–77, 107–9, 158–62, 180–1, 206–7, 215–17, 317–18; 1797 crisis in UK, 75; 1907 crisis in US, 159, 161, 196, 197, 198, 201; 1914 crisis, 192–201, 206, 307, 368; 1920-1 depression, 326–7; 1931 crisis, 41; ‘Black Monday’ (19 October 1987), 149; Finnish and Swedish crises (early 1990s), 279; German hyperinflation (early 1920s), 52, 68, 69, 86, 158–9, 190; Latin American debt crisis (1980s), 339; London banking crises (1825-66), 92, 188–90, 191–2, 198, 201; panic of 1792 in US, 188; see also Great Depression (early 1930s) The Economist magazine, 108–9 economists, 78–80, 128–31, 132–4, 212, 311; 1960s evolution of macroeconomics, 12, 16; forecasting models, 3–4, 7, 122–3, 179–80, 208, 305–6; Keynes on, 158, 289; see also Keynesian economics; neoclassical economics Ecuador, 246, 287 Egypt, ancient, 56, 72 Eliot, T.S., Four Quartets, 120, 290 emerging economies, 39, 43, 337, 338, 361; export-led growth strategy, 27–8, 30, 34, 319, 321, 324, 349, 356; new institutions in Asia, 349–50; savings levels in, 22–3, 27–8, 29, 30; ‘uphill’ flows of capital from, 30–1, 40, 319; US dollar reserves, 28, 34, 349 ‘emotional finance’ theory, 133–4 Engels, Friedrich, 19 Enron, 117 equity finance, 36, 102, 103, 140, 141, 143, 266, 280; and ‘bail-inable’ bonds, 112; in banking sector, 103, 105, 109, 112, 137–9, 173, 202, 254–9, 263, 268, 280, 368 see also leverage ratios (total assets to equity capital); and limited liability, 107, 108, 109 European Central Bank (ECB), 137, 162, 166, 232, 339; and euro area crisis, 203–4, 218, 224–5, 227–8, 229, 231, 322; and political decisions, 218, 224–5, 227–8, 231–2, 235, 344; sovereign debt purchases, 162, 190, 227–8, 231 European Monetary Union (EMU, euro area), 62, 217–38, 337–40, 342–9, 363–4; creditor and debtor split, 49, 222–3, 230–1, 232–7, 338, 339–40, 342–4, 363–4; crisis in (from 2009), 138, 203–4, 218, 223–31, 237–8, 276, 338, 339–40, 3512, 368; disillusionment with, 234–5, 236, 238, 3444; divergences in competitiveness, 221–3, 228, 231, 232–3, 234; fiscal union proposals (2015), 344; at heart of world disequilibrium, 248, 337; inflation, 70, 221–2, 232, 237; interest rate, 221–2, 232, 237, 335; launch of (1999), 22, 24–5, 218, 221, 306; main lessons from, 237; and political union issues, 218, 220, 235, 237–8, 248–9, 344, 348–9; ‘progress through crisis’ doctrine, 234; prospects for, 232–3, 345–6; sovereign debt in, 162, 190, 224, 226–8, 229–31, 258, 338, 339–40, 342–4; transfer union proposal, 224, 230, 231, 233, 234, 235, 237, 344; unemployment in, 45, 226, 228, 229–30, 232, 234, 345; value of euro, 43, 228–9, 231, 232, 322 European Stability Mechanism (ESM), 228 European Union, 40, 235–6, 237–8, 247, 248–9, 348–9; no-bailout clause in Treaty (Article 125), 228, 235–6; Stability and Growth Pact (SGP), 235, 236 Exchange Rate Mechanism (ERM), 219, 220 exchange rates: and disequilibrium, 319, 322–3, 329, 331, 364; and EMU, 222, 228–9, 338–9, 363–4; exchange controls, 21, 339; fixed, 20–1, 22–3, 24–5, 72–3, 75–6, 339, 352, 353, 361; floating, 21, 338, 353, 361–2; and ‘gold standard’, 72–3, 75–6; risk of ‘currency wars’, 348; and wage/price changes, 213 Federal Deposit Insurance Corporation (FDIC), 62, 137, 328 Federal Open Market Committee, 179 Federal Reserve, 45, 65, 74, 137, 157–8, 162, 168–70, 175, 178–9, 320; in 1920s/30s, 192, 326–7, 328, 349; during crisis, 39, 76, 107, 113, 183, 184; discount window, 206; dual mandate of, 167–8; opening of (1914), 60, 62, 159–60, 194–5, 196, 197 Ferrer, Gaspar, 193 Field, Alexander, 355 Financial Conduct Authority, UK, 260 financial crises, 11–12, 34; and demand for liquidity, 65–6, 76–7, 86, 106, 110, 119, 148, 182, 187–92, 194, 201–7, 253–4, 367; differing causes of, 307, 316–17, 327–8; frequency of, 2, 4, 20, 92, 111, 316–17; and ‘gold standard’, 75, 165, 195; and Minsky’s theory, 307–8, 323; narrative revision downturns, 328, 332–3, 356, 357, 58–9, 364; the next crisis, 334–5, 336–8, 353, 370; as test beds for new ideas, 49–50; see also economic history financial crisis (from 2007): articles and books, 1–2, 6; central banks during, 36–9, 64, 65, 76, 113, 118, 158, 159, 162, 181–4, 205, 206, 335; desire to blame individuals, 3, 89–90; effects on ordinary citizens, 6, 13, 41; the Great Panic, 37–8; interest rates during, 150–1, 181, 335; LIBOR during, 150–1; liquidity crisis (2007-8), 35–8, 64–5, 76, 110; money supply during, 181–3; parallels with earlier events, 90–2, 193; post-crisis output gap, 42, 291, 337; short-term Keynesian response, 39, 41, 48, 118–19, 326, 328, 356; ‘small’ event precipitating, 34–5, 323; unanswered questions, 39–43; underlying causes, 16–17, 24–5, 26–39, 40, 307, 319–26, 328; weak recovery from, 43–4, 48, 291–2, 293, 324, 337, 355, 364, 366 financial markets, 64–5, 113, 117–18, 141–5, 149, 184, 199–200, 314–15; basic financial contracts, 140–1; desert island parable, 145–8; and radical uncertainty, 140, 143, 144–5, 149–55; ‘real-time’ trading, 153–4, 284; see also derivative instruments; financial products and instruments; trading, financial financial products and instruments, 24, 35–6, 64, 99–100, 114, 117, 136–7, 258, 278, 288; see also derivative instruments Finland, 159, 279 First World War, 88–9, 153, 164, 178, 200–2, 307; financial crisis on outbreak of, 192–201; reparations after, 340–2, 343, 345–6 fiscal policy, 45, 184, 347–8, 352, 358; and Keynesianism, 78, 181, 292, 300, 356; in monetary unions, 222–3, 235; short-term stimulus during crisis, 39, 118–19, 356 Fisher, Irving, 163, 261 fractional reserve banking, 261 France, 93, 201, 216, 219, 221, 236, 248, 348, 364; and euro area crisis, 228–9, 231, 236, 322; occupation of Ruhr (1923), 340; overseas territories during WW2, 242; revolutionary period, 68, 75, 159 Franklin, Benjamin, 58, 127 Friedman, Milton, 78, 130, 163, 182, 192, 262, 328 Fuld, Dick, 89 futures contracts, 142, 240–1, 295–6 G20 group, 39, 255, 256, 351 G7 group, 37–8, 351 Garrett, Scott, 168–9 Geithner, Timothy, 267 George, Eddie, 176, 330 Germany, 93, 161, 162, 184, 219, 322, 341, 357; Bundesbank, 166, 219, 228, 232; and EMU, 219–22, 224, 227, 228, 230, 231–2, 234–6, 248, 338, 340, 342–3, 345; export-led growth strategy, 222, 319, 363–4; hyperinflation (early 1920s), 52, 68, 69, 86, 158–9, 190; Notgeld in, 201–2, 287; reunification, 219, 342; trade surpluses in, 46, 49, 222, 236, 319, 321, 356, 363–4; WW1 reparations, 340–2, 343, 346 Gibbon, Edward, 63, 164 Gigerenzer, Professor Gerd, 123, 135 Gillray, James, 75 global economy, 349–54, 361; capital flows, 20–1, 22, 28, 29, 30–1, 40, 319, 323; rise in external imbalances, 22–3, 24–5, 27–31, 33–4, 45–7, 48–9, 236, 307, 319–24, 329–30, 338, 364; see also currencies; exchange rates; trade surpluses and deficits Goethe, Johann Wolfgang von, Faust, 85–6 ‘gold standard’, 72–3, 75–6, 86, 165, 195, 200–1, 216–17, 348, 352 Goldman Sachs, 98, 109, 123, 257 Goodwin, Fred, 37, 89 Grant, James, 327 Great Depression (early 1930s), 5, 16, 20, 158, 160, 226, 348, 355; dramatic effect on politics and economics, 41; Friedman and Schwartz on, 78, 192, 328; and ‘gold standard’, 73, 76; US banking crisis during, 90–1, 108, 116, 201 Great Recession (from 2008), 6, 38–9, 163, 290–2, 326 Great Stability (or Great Moderation), 6, 22, 45–7, 71, 162, 208, 305, 313–14, 318–24, 325–6; alternative strategies for pre-crisis period, 328–33; monetary policies during, 22, 25, 46–7, 315 Greece, 216, 221, 222, 225–31, 338–40, 364; agreement with creditors (13 July 2015), 230–1, 346; crisis in euro area, 223–4, 225–7, 229, 230–1, 236, 258, 338–40; debt restructured (2012), 226–7, 229, 236, 339, 343–4, 346; national referendum (July 2015), 230; sovereign debt, 224, 226–7, 339–40, 342–4, 346–7; Syriza led government, 229, 235 Greenspan, Alan, 157–8, 164, 175, 317 Gulf War, First (1991), 238 Hahn, Frank, 79 Halifax Bank of Scotland (HBoS), 37, 118, 206, 243 Halley, Edmund, 122 Hamilton, Alexander, 188, 202, 215 Hankey, Thomas, 191–2 Hansen, Alvin, Full Recovery or Stagnation?


pages: 221 words: 55,901

The Globalization of Inequality by François Bourguignon

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Berlin Wall, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, Credit Default Swap, deglobalization, deindustrialization, Doha Development Round, Edward Glaeser, European colonialism, Fall of the Berlin Wall, financial deregulation, financial intermediation, gender pay gap, Gini coefficient, income inequality, income per capita, labor-force participation, liberal capitalism, minimum wage unemployment, offshore financial centre, open economy, Pareto efficiency, purchasing power parity, race to the bottom, Robert Gordon, Simon Kuznets, structural adjustment programs, The Spirit Level, too big to fail, very high income, Washington Consensus

Another problem for poorer countries is that even when the banks in developed countries do grant them loans, which is not always the case, they will often demand excessive risk premia. While important progress has been made in the liberalization of trade, this process remains incomplete. In particular, many poor countries have only limited access to the manufactured goods markets of developed countries. For several years now, the “Doha negotiations,” first known as the “Doha Development Round,” which are organized by the World Trade Organization, have been attempting to improve this situation. However, these negotiations have become bogged down and have effectively failed because they have focused almost exclusively on the relationships between developed countries and emerging economies (China, India, Brazil) rather than on those between rich and poor countries (principally raw material–exporting African countries), which are less strategically important in the current phase of globalization.


pages: 147 words: 45,890

Aftershock: The Next Economy and America's Future by Robert B. Reich

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Berlin Wall, declining real wages, delayed gratification, Doha Development Round, endowment effect, full employment, George Akerlof, Home mortgage interest deduction, Hyman Minsky, illegal immigration, income inequality, invisible hand, job automation, labor-force participation, Long Term Capital Management, loss aversion, mortgage debt, new economy, offshore financial centre, Ralph Nader, Ronald Reagan, school vouchers, sovereign wealth fund, Thorstein Veblen, too big to fail, World Values Survey

New York City’s mayor Michael Bloomberg won a surprisingly narrow reelection in the fall of 2009 despite his creditable record and sizable campaign spending. Voters, it seemed, were turned off by his vast wealth and his willingness to spend it on the campaign. (Just prior to the election, New York magazine blared in a headline: MICHAEL BLOOMBERG IS ABOUT TO BUY HIMSELF A THIRD TERM.) The stirrings of backlash can also be seen in Americans’ sharp turn against international trade and immigration. By 2010, the so-called Doha round of multilateral tariff reductions, initiated in 2001, was still on life support. President Obama’s single trade request during his first year of office—duty-free status on exports from Afghanistan and Pakistan, in order to boost employment in these countries and thereby counter terrorist groups—was shot down by Congress, despite its obvious importance. Pending trade agreements with South Korea, Colombia, and Panama were put on hold.

Global Financial Crisis by Noah Berlatsky

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accounting loophole / creative accounting, asset-backed security, banking crisis, Bretton Woods, capital controls, Celtic Tiger, centre right, circulation of elites, collapse of Lehman Brothers, collateralized debt obligation, corporate raider, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, Doha Development Round, energy security, eurozone crisis, financial innovation, Food sovereignty, George Akerlof, God and Mammon, Gordon Gekko, housing crisis, illegal immigration, income inequality, market bubble, market fundamentalism, mass immigration, moral hazard, new economy, Northern Rock, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, reserve currency, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South China Sea, structural adjustment programs, too big to fail, trade liberalization, transfer pricing, working poor

In July 2008, the seven-year negotiations reached a stalemate when India and China refused to compromise over measures to protect farmers in developing countries from greater liberalization of trade. But leaders attending the G-20 [a group of finance ministers and central bank governors from 20 countries] summit on the financial crisis in November 2008, which included India and China, promised to refrain from protectionist measures in the next year, and called for each country in the group to make “positive contributions” to a successful conclusion of the Doha round. 142 3 Viewpoint China Could Use the Crisis to Become a Responsible World Power Jing Men Jing Men is the InBev-Baillet Latour Chair of European UnionChina Relations at the College of Europe. She is also an assistant professor of International Affairs at the Vesalius College, Brussels. In this viewpoint, Jing Men investigates how the economic crisis has enhanced China’s importance in the world economy.


pages: 172 words: 54,066

The End of Loser Liberalism: Making Markets Progressive by Dean Baker

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Asian financial crisis, banking crisis, Bernie Sanders, collateralized debt obligation, collective bargaining, corporate governance, currency manipulation / currency intervention, Doha Development Round, financial innovation, full employment, Home mortgage interest deduction, income inequality, inflation targeting, invisible hand, manufacturing employment, market clearing, market fundamentalism, medical residency, patent troll, pets.com, pirate software, price stability, quantitative easing, regulatory arbitrage, rent-seeking, Robert Shiller, Robert Shiller, Silicon Valley, too big to fail, transaction costs

Large-scale national campaigns organized to counter this trade policy over the last two decades have garnered considerable grassroots support and to a large extent have won over public opinion. Polls generally show that the public opposes NAFTA-type trade deals and sees them as a threat to jobs.[73] These campaigns have had some success in slowing the Clinton-Bush-Obama trade agenda. Most of the bilateral trade deals have been delayed for years, and the Doha round of the World Trade Organization has now been delayed for more than a decade. To make trade deals more palatable to the U.S. public, negotiators have sought to include labor rights and other provisions that might reduce the negative impact that the deals would have on manufacturing employment in the United States and improve conditions for workers in our trading partners. However, labor rights and worker protection provisions would have at best a marginal effect on reversing the extent to which trade policy redistributes income upward.


pages: 158 words: 45,927

Brexit: What the Hell Happens Now?: The Facts About Britain's Bitter Divorce From Europe 2016 by Ian Dunt

Doha Development Round, Donald Trump, energy security, low skilled workers, non-tariff barriers, open borders, Silicon Valley, UNCLOS, UNCLOS

So British ministers would do well to remember two things about a new trade deal. The first is that negotiating one would take much longer than the two years allowed by Article 50. The second is that it is likely never to be signed at all. Trade deals are no longer very popular. Their complexity and growing public wariness mean there hasn’t been a major world deal for a quarter of a century. The last one was the Uruguay Round of the WTO in 1993. The Doha Round started in 2001 and was abandoned in 2015 after disagreements over agriculture, industrial tariffs, non-tariff barriers and various other matters. Bilateral deals are considered the new alternative to massive agreements but they are also struggling. A US-EU trade deal, the Transatlantic Trade and Investment Partnership, included a secretive investor dispute mechanism which would let private companies take national governments to a specialised court if they felt their interests had been contradicted by political decisions.


pages: 251 words: 76,868

How to Run the World: Charting a Course to the Next Renaissance by Parag Khanna

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Albert Einstein, Asian financial crisis, back-to-the-land, bank run, blood diamonds, Bob Geldof, borderless world, BRICs, British Empire, call centre, carbon footprint, charter city, clean water, cleantech, cloud computing, commoditize, continuation of politics by other means, corporate governance, corporate social responsibility, Deng Xiaoping, Doha Development Round, don't be evil, double entry bookkeeping, energy security, European colonialism, facts on the ground, failed state, friendly fire, global village, Google Earth, high net worth, index fund, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, labour mobility, laissez-faire capitalism, Live Aid, Masdar, mass immigration, megacity, microcredit, mutually assured destruction, Naomi Klein, New Urbanism, off grid, offshore financial centre, oil shock, open economy, out of africa, Parag Khanna, private military company, Productivity paradox, race to the bottom, RAND corporation, reserve currency, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, sustainable-tourism, The Fortune at the Bottom of the Pyramid, The Wisdom of Crowds, too big to fail, trade liberalization, trickle-down economics, UNCLOS, uranium enrichment, Washington Consensus, X Prize

Diplomats are often dispassionate messengers, reading démarches like stale B-movie scripts. But what if their promotions were actually linked to performance, as in the business world? If diplomats weren’t allowed the cushy job in London until they did something good for Liberia, we’d see a lot less talk and a lot more action. Begin with the End in Mind. The most recent WTO negotiations, known as the Doha Development Round, carried on for seven years—then collapsed in 2008. Rather than focus on specific goals, the agenda was saddled (by the United States) with additional items like an overburdened mule. Meanwhile, many poor countries still don’t have the capacity to implement the earlier Uruguay Round’s aims. Credibility depends on results, even if they are small wins rather than grand breakthroughs. Put First Things First.


pages: 222 words: 75,561

The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It by Paul Collier

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air freight, Asian financial crisis, Bob Geldof, British Empire, Doha Development Round, failed state, falling living standards, income inequality, mass immigration, out of africa, rent-seeking, Ronald Reagan, structural adjustment programs, trade liberalization, zero-sum game

In contrast, EBA has been ineffective. Venables and I met with Peter Mandelson, the European Trade Commissioner, and he was supportive of reform. But clearly, what is needed is not merely a better European scheme but a pan-OECD temporary preference for those low-income countries that have not yet broken into global markets for manufactures. The obstacle to change has been a fear of further complicating the Doha Round, the stalled attempt to liberalize international trade under the auspices of the World Trade Organization. The upshot is that a change that would make a significant difference to the bottom billion I ignored. Concerns that it would be incompatible with the WTO are misplaced. The WTO has an escape clause for least-developed countries, and in this context that should mean those low-income countries that have not yet established significant manufactured exports.

Unhappy Union by The Economist, La Guardia, Anton, Peet, John

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bank run, banking crisis, Berlin Wall, Bretton Woods, capital controls, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, debt deflation, Doha Development Round, eurozone crisis, Fall of the Berlin Wall, fixed income, Flash crash, illegal immigration, labour market flexibility, labour mobility, light touch regulation, market fundamentalism, moral hazard, Northern Rock, oil shock, open economy, pension reform, price stability, quantitative easing, special drawing rights, supply-chain management, The Great Moderation, too big to fail, transaction costs, éminence grise

All trade talks run into trouble, with special interests sheltering such things as agriculture, audio-visual services, rules on public procurement, and food and veterinary standards. Already there are signs of emerging doubts about the TTIP’s chances on the European side. On the American side, the US Congress has not even given Obama the trade promotion authority that he needs to pass a deal. The World Trade Organisation’s Doha round largely fell apart, with what was eventually enacted being more of a mouse than an elephant – though that was mainly because of objections from emerging countries like India, not because of the Europeans. There is every chance that the same could happen with the TTIP. That would be a double missed opportunity, for as well as boosting economic growth, the TTIP could be the last chance that Europe and the United States will get to set standards and rules for world trade before a newly powerful China exerts its influence.


pages: 334 words: 98,950

Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism by Ha-Joon Chang

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affirmative action, Albert Einstein, Big bang: deregulation of the City of London, bilateral investment treaty, borderless world, Bretton Woods, British Empire, Brownian motion, call centre, capital controls, central bank independence, colonial rule, Corn Laws, corporate governance, David Ricardo: comparative advantage, Deng Xiaoping, Doha Development Round, en.wikipedia.org, falling living standards, Fellow of the Royal Society, financial deregulation, fixed income, Francis Fukuyama: the end of history, income inequality, income per capita, industrial robot, Isaac Newton, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, labour mobility, land reform, liberal world order, liberation theology, low skilled workers, market bubble, market fundamentalism, Martin Wolf, means of production, mega-rich, moral hazard, offshore financial centre, oil shock, price stability, principal–agent problem, Ronald Reagan, South Sea Bubble, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transfer pricing, urban sprawl, World Values Survey

Green (2003), The Northern WTO Agenda on Investment: Do as we Say, Not as we Did (CAFOD [Catholic Agency for Overseas Development], London, and South Centre, Geneva), pp. 1–4. 16 See J. Stiglitz & A. Charlton (2005), Fair Trade for All – How Trade Can Promote Development (Oxford University Press, Oxford), pp. 121–2 and Appendix 1. For various numerical estimates of the gains from agricultural liberalization in the rich countries, see F. Ackerman (2005), ‘The Shrinking Gains from Trade: A Critical Assessment of Doha Round Projections’, Global Development and Environment Institute Working Paper, No. 05–01, October 2005, Tufts University. Two World Bank estimates cited by Ackerman put the share of the developed countries in the total world gain from trade liberalization in agriculture by high-income countries at 75% ($41.6 billion out of $55.7 billion) and 70% ($126 billion out of $182 billion). Chapter 4 1 Between 1971 and 1985, FDI accounted for only about 0.6% of total fixed capital formation (physical investment) of Finland.


pages: 357 words: 95,986

Inventing the Future: Postcapitalism and a World Without Work by Nick Srnicek, Alex Williams

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3D printing, additive manufacturing, air freight, algorithmic trading, anti-work, back-to-the-land, banking crisis, basic income, battle of ideas, blockchain, Bretton Woods, call centre, capital controls, carbon footprint, Cass Sunstein, centre right, collective bargaining, crowdsourcing, cryptocurrency, David Graeber, decarbonisation, deindustrialization, deskilling, Doha Development Round, Elon Musk, Erik Brynjolfsson, Ferguson, Missouri, financial independence, food miles, Francis Fukuyama: the end of history, full employment, future of work, gender pay gap, housing crisis, income inequality, industrial robot, informal economy, intermodal, Internet Archive, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, late capitalism, liberation theology, Live Aid, low skilled workers, manufacturing employment, market design, Martin Wolf, mass immigration, mass incarceration, means of production, minimum wage unemployment, Mont Pelerin Society, neoliberal agenda, New Urbanism, Occupy movement, oil shale / tar sands, oil shock, patent troll, pattern recognition, Paul Samuelson, Philip Mirowski, post scarcity, postnationalism / post nation state, precariat, price stability, profit motive, quantitative easing, reshoring, Richard Florida, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, Second Machine Age, secular stagnation, self-driving car, Slavoj Žižek, social web, stakhanovite, Steve Jobs, surplus humans, the built environment, The Chicago School, The Future of Employment, Tyler Cowen: Great Stagnation, universal basic income, wages for housework, We are the 99%, women in the workforce, working poor, working-age population

Clark, ‘For a Left with No Future’, New Left Review II/74 (March–April 2012); Fernando Coronil, ‘The Future in Question: History and Utopia in Latin America (1989–2010)’, in Craig Calhoun and Georgi Derluguian, eds, Business as Usual: The Roots of the Global Financial Meltdown (New York: New York University Press, 2011). Or, in the words of one popular recent essay: ‘The future has no future’: The Invisible Committee, The Coming Insurrection (Los Angeles: Semiotext(e), 2009), p. 23. 1. OUR POLITICAL COMMON SENSE: INTRODUCING FOLK POLITICS 1.Dave Mitchell, ‘Stuff White People Smash,’ Rabble, 26 June 2011, at rabble.ca. 2.It is telling that the main reason for the failure of the ongoing Doha Round negotiations at the WTO is because of divisions between states, rather than any social movement resistance. 3.Insight into some of the internal debates within Occupy around the issue of demands can be found in Astra Taylor and Keith Gessen, eds, Occupy! Scenes from Occupied America (London: Verso, 2011). For a detailed critique of the ‘no demands’ position, see Marco Desiriis and Jodi Dean, ‘A Movement Without Demands?’


pages: 347 words: 99,317

Bad Samaritans: The Guilty Secrets of Rich Nations and the Threat to Global Prosperity by Ha-Joon Chang

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affirmative action, Albert Einstein, banking crisis, Big bang: deregulation of the City of London, bilateral investment treaty, borderless world, Bretton Woods, British Empire, Brownian motion, call centre, capital controls, central bank independence, colonial rule, Corn Laws, corporate governance, David Ricardo: comparative advantage, Deng Xiaoping, Doha Development Round, en.wikipedia.org, falling living standards, Fellow of the Royal Society, financial deregulation, fixed income, Francis Fukuyama: the end of history, income inequality, income per capita, industrial robot, Isaac Newton, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, labour mobility, land reform, liberal world order, liberation theology, low skilled workers, market bubble, market fundamentalism, Martin Wolf, means of production, mega-rich, moral hazard, offshore financial centre, oil shock, price stability, principal–agent problem, Ronald Reagan, South Sea Bubble, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transfer pricing, urban sprawl, World Values Survey

Green (2003), The Northern WTO Agenda on Investment: Do as we Say, Not as we Did (CAFOD [Catholic Agency for Overseas Development], London, and South Centre, Geneva), pp. 1–4. 16 See J. Stiglitz & A. Charlton (2005), Fair Trade for All – How Trade Can Promote Development (Oxford University Press, Oxford), pp. 121–2 and Appendix 1. For various numerical estimates of the gains from agricultural liberalization in the rich countries, see F. Ackerman (2005), ‘The Shrinking Gains from Trade: A Critical Assessment of Doha Round Projections’, Global Development and Environment Institute Working Paper, No. 05–01, October 2005, Tufts University. Two World Bank estimates cited by Ackerman put the share of the developed countries in the total world gain from trade liberalization in agriculture by high-income countries at 75% ($41.6 billion out of $55.7 billion) and 70% ($126 billion out of $182 billion). Chapter 4 1 Between 1971 and 1985, FDI accounted for only about 0.6% of total fixed capital formation (physical investment) of Finland.


pages: 414 words: 119,116

The Health Gap: The Challenge of an Unequal World by Michael Marmot

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active measures, active transport: walking or cycling, Affordable Care Act / Obamacare, Atul Gawande, Bonfire of the Vanities, Broken windows theory, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, centre right, clean water, congestion charging, correlation does not imply causation, Doha Development Round, epigenetics, financial independence, future of work, Gini coefficient, Growth in a Time of Debt, illegal immigration, income inequality, Indoor air pollution, Kenneth Rogoff, Kibera, labour market flexibility, lump of labour, Mahatma Gandhi, meta analysis, meta-analysis, microcredit, New Urbanism, obamacare, paradox of thrift, race to the bottom, Rana Plaza, RAND corporation, road to serfdom, Simon Kuznets, Socratic dialogue, structural adjustment programs, the built environment, The Spirit Level, trickle-down economics, urban planning, Washington Consensus, Winter of Discontent, working poor

I led a European Review of Social Determinants and the Health Divide.30 As part of that Review we invited Ron Labonté of the University of Ottawa to update the work he did for the CSDH on globalisation and health. Ron commented that the relationship between trade policies, poverty and inequalities is a huge field of policy research, but two significant pointers emerged.31 The first relates to the long, and I mean very long and protracted, Doha development round negotiations conducted under the auspices of the World Trade Organization. Assuming the talks ever reached a conclusion, analysts modelled four different outcomes. Their work suggested that there would be annual real income gains of between $6 and $8 billion each for Japan, the USA and the EU 15 group of countries, and losses of about $250 million for Sub-Saharan Africa. Free trade sounds like a good thing.


pages: 437 words: 113,173

Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial cluster, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Khan Academy, Kickstarter, labour market flexibility, low cost carrier, low skilled workers, Lyft, Malacca Straits, mass immigration, megacity, Mikhail Gorbachev, moral hazard, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, Pearl River Delta, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Robert Metcalfe, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, TaskRabbit, The Future of Employment, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day

The risk of stagnation is especially sharp in democratic societies. Democracy is a giant political innovation that separates our New Renaissance from the last. It gives us enormous adaptability to social stresses. But this adaptability comes at a price: nothing great gets done unless the people stand together behind it. Consider for a moment what we—for lack of a stronger, broader sense of belonging—have failed to do. The Doha Development Round of global trade talks, meant to improve poor world access to rich-world markets, was stillborn in Seattle, then formally revived in Doha in 2001, but has so far agreed on nothing. Rather than tackle the biggest issues on the global trade agenda (not least, perverse agricultural subsidies to rich-world farmers), it has disintegrated into a patchwork of bilateral and regional trade agreements.


pages: 487 words: 147,891

McMafia: A Journey Through the Global Criminal Underworld by Misha Glenny

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anti-communist, Anton Chekhov, Berlin Wall, blood diamonds, BRICs, colonial rule, crony capitalism, Deng Xiaoping, Doha Development Round, failed state, Fall of the Berlin Wall, financial deregulation, Firefox, forensic accounting, friendly fire, glass ceiling, illegal immigration, joint-stock company, market bubble, Mikhail Gorbachev, Nick Leeson, offshore financial centre, Pearl River Delta, place-making, rising living standards, Ronald Reagan, Skype, special economic zone, Stephen Hawking, trade liberalization, trade route, Transnistria, unemployed young men, upwardly mobile

But noble though its aims are, in practice the WTO just holds the ring as a group of prizefighting countries use their muscle and guile to secure as great an advantage as possible at the expense of others. In the blue corner, a tag team defending unfair subsidies shapes up to the producers of counterfeit goods in the red corner. Naturally, the weak and defenseless take quite a bruising in this arena. In 2007, the despairing failure of the Doha round of world trade negotiations, the aim of which was to smooth out such conflicts and contradictions, suggests that trade disputes will become ever bitterer in the coming years. China’s imperative to create jobs through exporting goods means that the temptation not to clamp down on fake products will remain high, especially as its ability to police the trade is limited. Individual Western companies have found that China’s Public Security Bureau is a weak, inefficient, corrupt, and unwilling partner.


pages: 386 words: 122,595

Naked Economics: Undressing the Dismal Science (Fully Revised and Updated) by Charles Wheelan

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affirmative action, Albert Einstein, Andrei Shleifer, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, capital controls, Cass Sunstein, central bank independence, clean water, collapse of Lehman Brothers, congestion charging, creative destruction, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, David Brooks, demographic transition, diversified portfolio, Doha Development Round, Exxon Valdez, financial innovation, fixed income, floating exchange rates, George Akerlof, Gini coefficient, Gordon Gekko, greed is good, happiness index / gross national happiness, Hernando de Soto, income inequality, index fund, interest rate swap, invisible hand, job automation, John Markoff, Joseph Schumpeter, Kenneth Rogoff, libertarian paternalism, low skilled workers, lump of labour, Malacca Straits, market bubble, microcredit, money market fund, money: store of value / unit of account / medium of exchange, Network effects, new economy, open economy, presumed consent, price discrimination, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, race to the bottom, RAND corporation, random walk, rent control, Richard Thaler, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, Silicon Valley, Silicon Valley startup, South China Sea, Steve Jobs, The Market for Lemons, the rule of 72, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, transcontinental railway, trickle-down economics, urban sprawl, Washington Consensus, Yogi Berra, young professional, zero-sum game

Some believed that the Clinton administration secretly organized the protests to scuttle the talks and protect American interest groups, such as organized labor. Indeed, after the failure of the WTO talks in Seattle, UN chief KofiAnnan blamed the developed countries for erecting trade barriers that exclude developing nations from the benefits of global trade and called for a “Global New Deal.”11 The WTO’s current round of talks to reduce global trade barriers, the Doha Round, has stalled in large part because a bloc of developing nations is demanding that the United States and Europe reduce their agricultural subsidies and trade barriers; so far the rich countries have refused. Trade gives poor countries access to markets in the developed world. That is where most of the world’s consumers are (or at least the ones with money to spend). Consider the impact of the African Growth and Opportunity Act, a law passed in 2000 that allowed Africa’s poorest countries to export textiles to the United States with little or no tariff.


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

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1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, labour market flexibility, labour mobility, LNG terminal, low cost carrier, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, Plutocrats, plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

Despite the radical expansion of worldwide connectivity since that time, globalization has been pronounced dead three times in just the past decade or so. First came the 9/11 terrorist attacks on New York and Washington in 2001. It was claimed that the erosion of trust between the West and the Arab world, increased security at borders, and the geopolitical disruptions of the wars in Iraq and Afghanistan could grind the global economy to a halt. Then came the collapse of the World Trade Organization (WTO) Doha round of negotiations in 2006, when it was argued that without an agreement on a single overarching global framework of rules, global trade would unwind, retrench, or contract. And most recently with the financial crisis of 2007–8, exports slumped, international lending diminished, and the Anglo-Saxon model of capitalism came under attack, all cited as evidence of “de-globalization.” A fourth front of “end of globalization” hyperbole is now under way as American interest rates rise, Chinese growth slows, and cheap energy and advanced manufacturing technologies together enable the near-shoring and automation of production.


pages: 566 words: 163,322

The Rise and Fall of Nations: Forces of Change in the Post-Crisis World by Ruchir Sharma

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3D printing, Asian financial crisis, backtesting, bank run, banking crisis, Berlin Wall, Bernie Sanders, BRICs, business climate, business process, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, centre right, colonial rule, Commodity Super-Cycle, corporate governance, creative destruction, crony capitalism, currency peg, dark matter, debt deflation, deglobalization, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Glaeser, Elon Musk, eurozone crisis, failed state, Fall of the Berlin Wall, falling living standards, Francis Fukuyama: the end of history, Freestyle chess, Gini coefficient, hiring and firing, income inequality, indoor plumbing, industrial robot, inflation targeting, Internet of things, Jeff Bezos, job automation, John Markoff, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labor-force participation, liberal capitalism, Malacca Straits, Mark Zuckerberg, market bubble, mass immigration, megacity, Mexican peso crisis / tequila crisis, mittelstand, moral hazard, New Economic Geography, North Sea oil, oil rush, oil shale / tar sands, oil shock, pattern recognition, Paul Samuelson, Peter Thiel, pets.com, Plutocrats, plutocrats, Ponzi scheme, price stability, Productivity paradox, purchasing power parity, quantitative easing, Ralph Waldo Emerson, random walk, rent-seeking, reserve currency, Ronald Coase, Ronald Reagan, savings glut, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Simon Kuznets, smart cities, Snapchat, South China Sea, sovereign wealth fund, special economic zone, spectrum auction, Steve Jobs, The Future of Employment, The Wisdom of Crowds, Thomas Malthus, total factor productivity, trade liberalization, trade route, tulip mania, Tyler Cowen: Great Stagnation, unorthodox policies, Washington Consensus, WikiLeaks, women in the workforce, working-age population

The last round of global trade talks was launched in 2001 at a summit in Doha, Qatar, and was supposed to finish in 2005 but went off the rails in 2008 amid the tensions of the global financial crisis. The dispute was multifaceted, but the core of it involved clashes between the United States and India over Indian demands for the right to protect farmers with a special tariff in the event of another crisis, and between the United States and Europe, which accused each other of unfairly subsidizing farmers. Ten years beyond its 2005 deadline, the Doha round is technically alive but dead in the water. The old consensus born in good times—that more free trade is better for all countries—has been deeply shaken in the post-crisis slow-growth world. In November 2008, amid fears that the global financial crisis would trigger a revival of 1930s-style trade wars, the leaders of the G-20 nations publicly renounced trade controls. Then they began quietly rolling out what the trade expert Simon Evenett calls “stealth protection measures,” such as subsidies for export industries; since 2008, Evenett has counted more than fifteen hundred such measures instituted by G-20 countries.


pages: 403 words: 125,659

It's Our Turn to Eat by Michela Wrong

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Berlin Wall, Bob Geldof, Bretton Woods, British Empire, clean water, colonial rule, Doha Development Round, failed state, Fall of the Berlin Wall, financial independence, Kibera, Mahatma Gandhi, Mikhail Gorbachev, oil shock, out of africa, profit motive, Ronald Reagan, structural adjustment programs, upwardly mobile, young professional, zero-sum game, éminence grise

An institution setting itself a narrow goal can statistically assess whether or not its efforts are having an impact. The more it takes on, the harder it is to separate out the various strands and quantify success and failure. ‘Some of its goals are so huge as to be meaningless,’ wrote The Times on the occasion of DfID's tenth anniversary. ‘As well as saying that “our overall aim is to get rid of world poverty,” it wants to scrap the EU's Common Agricultural Policy, complete the Doha Round of world trade talks and combat climate change.’32 ‘If you are responsible for everything, you are responsible for nothing,’ comments Easterly. DfID gauges improvement by a country's progress in meeting the UN's eight millennium development goals, but DfID is not the only organisation disbursing aid, and recipient governments, after all, also play some role in determining their national course.


pages: 422 words: 113,830

Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism by Kevin Phillips

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algorithmic trading, asset-backed security, bank run, banking crisis, Bernie Madoff, Black Swan, Bretton Woods, BRICs, British Empire, collateralized debt obligation, computer age, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, currency peg, diversification, Doha Development Round, energy security, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, George Gilder, housing crisis, Hyman Minsky, imperial preference, income inequality, index arbitrage, index fund, interest rate derivative, interest rate swap, Joseph Schumpeter, Kenneth Rogoff, large denomination, Long Term Capital Management, market bubble, Martin Wolf, Menlo Park, mobile money, money market fund, Monroe Doctrine, moral hazard, mortgage debt, Myron Scholes, new economy, oil shale / tar sands, oil shock, old-boy network, peak oil, Plutocrats, plutocrats, Ponzi scheme, profit maximization, Renaissance Technologies, reserve currency, risk tolerance, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, Satyajit Das, shareholder value, short selling, sovereign wealth fund, The Chicago School, Thomas Malthus, too big to fail, trade route

FINANCIAL, MONETARY, AND ASSETS-PRESERVATION MERCANTILISM One intriguing sidebar to the intensifying August debate over the debt and housing bubble was a slowly spreading perception by the financial media of trends toward protectionism, mercantilism, and economic nationalism. Semantic disagreements vied with the political variety, but one could identify a number of strands. Summer’s seeming defeat of the Doha Round of world trade negotiations bespoke a resurgence of trade-related protectionism. The rise of sovereign wealth funds (huge government-run investment agencies) in China, Russia, Qatar, Abu Dhabi, and elsewhere grabbed attention as new vehicles of economic nationalism, simultaneously producing countermovements as France, Germany, the United States, and other nations expressed skepticism about letting state-owned foreign companies buy up important or strategic firms.


India's Long Road by Vijay Joshi

Affordable Care Act / Obamacare, barriers to entry, Basel III, basic income, blue-collar work, Bretton Woods, business climate, capital controls, central bank independence, clean water, collapse of Lehman Brothers, collective bargaining, colonial rule, congestion charging, corporate governance, creative destruction, crony capitalism, decarbonisation, deindustrialization, demographic dividend, demographic transition, Doha Development Round, eurozone crisis, facts on the ground, failed state, financial intermediation, financial repression, first-past-the-post, floating exchange rates, full employment, germ theory of disease, Gini coefficient, global supply chain, global value chain, hiring and firing, income inequality, Indoor air pollution, Induced demand, inflation targeting, invisible hand, land reform, Mahatma Gandhi, manufacturing employment, Martin Wolf, means of production, microcredit, moral hazard, obamacare, Pareto efficiency, price mechanism, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, race to the bottom, randomized controlled trial, rent-seeking, reserve currency, rising living standards, school choice, school vouchers, secular stagnation, Silicon Valley, smart cities, South China Sea, special drawing rights, The Future of Employment, The Market for Lemons, too big to fail, total factor productivity, trade liberalization, transaction costs, universal basic income, urban sprawl, working-age population

Since it is no longer a low-​income country, India is also poised to graduate from International Development Association (IDA) soft loans, which are one of the cornerstones of the global multilateral aid system. India’s activity as aid donor, through both bilateral and multilateral channels, is acquiring quantitative weight.18 On international trade policy, India’s changing stance is reflected in somewhat greater willingness to agree to binding international commitments. Although it was seen as a spoiler in the Doha round, other major powers have been at least as responsible. With global trade talks at an impasse, India has become more (at least by its own past record) aggressive in pursuing bilateral and regional trade agreements (see below). But it has so far stood outside ‘mega-​regional’ deals, which may shape the future of world trade. At the macro level, India’s impact on the world has to be seen in the context of China’s simultaneous rise.