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Renewing America

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Showing posts for "International Trade and Investment"

Brexit in Context

by Michael Spence
Two activists with the EU flag and Union Jack painted on their faces kiss each other to protest against British exit from the European Union (Hannibal Hanschke/Reuters). Two activists with the EU flag and Union Jack painted on their faces kiss each other to protest against British exit from the European Union (Hannibal Hanschke/Reuters).

MILAN – I do not believe that foreigners contribute usefully by issuing strong opinions about how a country’s citizens, or those of a larger unit like the European Union, should decide when faced with an important political choice. Our insights, based on international experience, may sometimes be helpful; but there should never be any confusion about the asymmetry of roles. Read more »

Reigniting Emerging-Economy Growth

by Michael Spence
People are silhouetted against a backdrop projected with the picture of various currencies of money (Kacper Pempel/Reuters). People are silhouetted against a backdrop projected with the picture of various currencies of money (Kacper Pempel/Reuters).

HONG KONG – It is no secret that emerging economies are facing serious challenges, which have undermined their once-explosive growth and weakened their development prospects. Whether they return to the path of convergence with the advanced economies will largely depend on how they approach an increasingly complex economic environment. Read more »

Why Paul Ryan Should Not Endorse Donald Trump

by Edward Alden
U.S. Speaker of the House Paul Ryan takes questions at a news conference after his meeting with Republican presidential candidate Donald Trump (Jim Bourg/Reuters). U.S. Speaker of the House Paul Ryan takes questions at a news conference after his meeting with Republican presidential candidate Donald Trump (Jim Bourg/Reuters).

House Speaker Paul Ryan is reportedly still trying to decide whether to endorse the presumptive Republican nominee for president, Donald Trump. Asked this week at a news conference whether he was ready to back Trump, he would say only “I have not made a decision.” While pressure is growing for Ryan to jump on the GOP bandwagon starting to form behind Trump, the answer should be obvious: No. Read more »

Jeff Immelt of GE Gives The Most Important Foreign Policy Speech of the Year

by Edward Alden
Jeff Immelt, Chairman and CEO of General Electric (Mike Segar/Reuters). Jeff Immelt, Chairman and CEO of General Electric (Mike Segar/Reuters).

The most important foreign policy speech of the year so far was delivered not by any of the presidential candidates, nor by any of their advisors, nor by President Obama or his officials. It was given last week by the chief executive of General Electric, Jeff Immelt, who may be the most influential American CEO of his generation. And the message, to graduating students at NYU’s Stern Business School, was stark: if America is turning against the global economy, business will have to follow. Read more »

How to Solve the Global Steel Glut

by Edward Alden
Employees work at a factory of Dongbei Special Steel Group in Dalian, Liaoning province. (China Daily China Daily Information Corp-CDIC/Reuters). Employees work at a factory of Dongbei Special Steel Group in Dalian, Liaoning province. (China Daily China Daily Information Corp-CDIC/Reuters).

The steel industry is once again in crisis. Led by China, global steelmaking capacity has doubled in the past 15 years, while demand has slumped. The consequences in many countries are falling prices, idled production, bankruptcies and job losses. U.S. Trade Representative Michael Froman last week called it “a truly global challenge”. Read more »

What the Trade and Minimum Wage Debates Have in Common

by Edward Alden
California Governor Jerry Brown (C) signs a bill hiking California's minimum wage to $15 by 2023 (Lucy Nicholson/Reuters). California Governor Jerry Brown (C) signs a bill hiking California's minimum wage to $15 by 2023 (Lucy Nicholson/Reuters).

The election-year debates over trade and the minimum wage would appear to have little to do with each other. The growing concern over trade, on the one hand, has focused mostly on the impact of global competition on U.S. manufacturing, sectors in which most employees make far more than the minimum wage. The historic move by California and New York this week to raise their minimum wages to $15, on the other hand, will mostly boost pay for restaurant and retail workers – sectors that do not face international competition. Read more »

Free Trade at Risk in This Year’s U.S. Campaign

by Edward Alden

A video posted on YouTube last month captured everything that working-class Americans fear about global trade. In the footage from a cellphone camera, an executive from Carrier, a division of United Technologies, addresses agitated employees at the company’s Indiana plant, which employs 1,400 people making furnaces and other heating equipment. Read more »

Economics in a Time of Political Instability

by Michael Spence
German metal workers  bang drums after they walked out from their day shift in a warning strike (Kai Pfaffenbach/ Reuters). German metal workers bang drums after they walked out from their day shift in a warning strike (Kai Pfaffenbach/ Reuters).

This article was co-authored with David Brady, Deputy Director and Senior Fellow at the Hoover Institution and Professor of Political Science at Stanford University. 

MILAN/STANFORD – Over the last 35 years, Western democracies have seen a rapid rise in political instability, characterized by frequent shifts in governing parties and their programs and philosophies, driven at least partly by economic transformation and hardship. The question now is how to improve economic performance at a time when political instability is impeding effective policymaking. Read more »

India’s Landmark WTO Challenge to the United States

by Edward Alden

In the midst of a xenophobic U.S. presidential campaign in which candidates in both parties have harangued China and Japan over their trade policies, and leading Republicans have called for a “great wall” to keep out immigrants from Mexico and Central America, one country has quietly refused to take it any longer. Read more »

China’s Volatile Growth

by Michael Spence
An electronic board showing stock information at a brokerage house in Shanghai, China. (Aly Song/Reuters). An electronic board showing stock information at a brokerage house in Shanghai, China. (Aly Song/Reuters).

This article was co-authored with Fred Hu, Chairman and Founder of Primavera Capital Group, a China-based global investment firm.

MILAN – Uncertainty about China’s economic prospects is roiling global markets – not least because so many questions are so difficult to answer. In fact, China’s trajectory has become almost impossible to anticipate, owing to the confusing – if not conflicting – signals being sent by policymakers. Read more »