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. … […]