Monthly Archives: April 2005

India and China

bq. Despite India’s rapid growth, how­ev­er, China’s devel­op­ment enjoys a good 15-year head start, and the gap shows no signs of nar­row­ing. Indi­ans wor­ry open­ly whether a con­sen­sus for growth can be sus­tained with the kind of sin­­gle-mind­ed­­ness that has helped pro­pel China.“New York Times”: I have pre­vi­ous­ly “reported”: on the fun­da­men­tal dif­fer­ences between the […]

Long-run terms of trade for commodities

What could be the expla­na­tion of the rel­a­tive­ly poor price per­for­mance of man­u­fac­tures exports into which Aus­tralia has rapid­ly diver­si­fied since the late 1980s (when the $A was float­ed)? The RBA shows that in the peri­od 1974 — 2004, Aus­tralian man­u­fac­tured exports achieved a year­ly 3.0 per­cent­growth, com­pared to a world aver­age of 3.6 per­cent. […]


But the elec­tion is in the form of a bat­tle with win­ners and loosers; so of course it will get the media’s atten­tion. It’s a sto­ry that every sub-edi­­tor feels com­fort­able with. “Let’s see more blood on the carpet‚Ķ nev­er­mind the issues!” The Finan­cial Times is, as usu­al, an hon­or­able excep­tion. bq. But emerg­ing from […]

The old entente

After all, for fifty years in the GATT the U.S. and Europe divid­ed the top jobs in the World Bank, IMF, OECD and GATT between them. bq. Devel­op­ing coun­tries have raised con­cerns about the Unit­ed States and Euro­pean Union tac­it­ly shar­ing out the top posts at the major inter­na­tion­al finan­cial insti­tu­tions, includ­ing the WTO. ( […]

The price of WTO Membership

Economies such as Chi­na and Tai­wan that joined the WTO after the WTO Agree­ments entered into force (1995) have had to com­ply with the rules with­out access, in most cas­es, to the long imple­men­ta­tion peri­ods avail­able to orig­i­nal WTO Mem­bers; economies that were for­mer­ly mem­bers of the GATT. Com­pli­ance is dif­fi­cult enough. But the bilat­er­al […]

Globalization and trade deficits

McK­in­sey com­plains that “definitions”: of the cur­rent account bal­ances are mis­lead­ing because they fail to show that the U.S. cur­rent account deficit is, in real­i­ty, a con­squence of the strength of the U.S. econ­o­my, as seen in the growth of U.S. direct invest­ment abroad and it’s enjoy­ment of the ben­e­fits of those invest­ments. bq. … […]