Belfer Center for Science and International Affairs, Harvard University
Abstract:
MADAM CHAIRWOMAN AND MEMBERS OF THE COMMITTEE: It is an honor to be here today to discuss a subject that is very important to the future of nuclear energy and efforts to stem the spread of nuclear weapons – reprocessing of spent nuclear fuel.
Topic:
International Relations, Development, Energy Policy, and Nuclear Weapons
Under traditional formulations, lower capital income tax rates reduce the user cost of capital and stimulate investment. The traditional approach, however, implictly or explicitly considers a revenue-neutral reduction in capital income taxation. We extend the traditional approach by considering a reduction in taxes that generates an increase in the budget deficit; the expanded budget deficit raises interest rates and the opportunity cost of investment. This provides a mechanism through which tax cuts can raise the cost of capital. Representative calculations show that, even with relatively modest interest rate effects, the net effect of making the Administration's recent tax cuts permanent or a 10-percent reduction in individual income tax rates would be to raise the user cost of capital. Thus, sustained tax cuts can raise the cost of capital and reduce investment.
The Millennium Challenge Account (MCA) proposed by President George W. Bush in March 2002 is an important step toward smarter US assistance to low-income countries. While it cannot yet be said to represent a revolution in development assistance, it is a welcome experiment and merits substantial funding by the Congress.
Topic:
International Relations, Development, Economics, and Human Welfare
The No Child Left Behind Act (NCLB) has the potential to improve many of America's schools, but this potential is currently undermined by serious flaws in how the program evaluates school performance. Because NCLB's measurement system compares only students' performance at a single point in time against state-determined standards, the information generated on school performance is often misleading and creates perverse incentives for states to lower their expectations.
What do we want from federalism?” asked the late Martin Diamond in a famous essay written thirty years ago. His answer was that federalism—a political system permitting a large measure of regional selfrule—presumably gives the rulers and the ruled a “school of their citizenship,” “a preserver of their liberties,” and “a vehicle for flexible response to their problems.” These features, broadly construed, are said to reduce conflict between diverse communities, even as a federated polity affords inter-jurisdictional competition that encourages innovations and constrains the overall growth of government.
A UNIQUE AND SUCCESSFUL INTERNATIONAL POLICY EXPERIMENT has been under way in Cambodia for the last six years. In the country's export apparel factories, working conditions and labor rights are monitored by inspectors from the International Labor Organization (ILO), an international public organization. The results of the inspections are published in credible, highly transparent reports that describe in detail whether the factories are in compliance with national labor laws and internationally agreed basic labor rights. These reports are published on the Internet, and a range of Cambodian and international actors use them. The U.S. government uses the reports as a key input for decisions under an innovative scheme that allows Cambodian firms to sell more apparel in the U.S. market if they improve working conditions and respect workers' rights. Private retail apparel firms that buy from Cambodian factories also use the reports. These buyers, conscious of their brand reputations, use the reliable information they find in the reports to steer orders toward compliant factories and away from noncompliant ones.
Topic:
Foreign Policy, Development, Economics, and Government
The George W. Bush administration in September 2002 laid out in the “National Security Strategy of the United States” its strategy toward China: “We welcome the emergence of a strong, peaceful, and prosperous China.” During a trip to Asia in March 2005, Secretary of State Condoleezza Rice adopted a similar phrase to welcome “the rise of a confident, peaceful, and prosperous China.”
Topic:
International Relations, Development, and Government
This short paper launches the second set of studies in the Carnegie Papers Middle East Series. The first set, now also published as a book under the title Uncharted Journey: Promoting Democracy in the Middle East, examined the most important issues concerning democracy promotion and democratic change in the Middle East. One of the conclusions that emerged from those studies is that the Middle East still offers a rather discouraging political picture. There are some liberalized autocracies but no democratic countries in the region. The link between economic and political reform remains weak. Democratic reformers have failed to build strong constituencies, and the organizations with strong constituencies are Islamist rather than democratic. The integration of Islamists in the reform process remains poor. And the United States, now championing democracy in the region, has little credibility in Arab eyes, and still has not consistently integrated democracy promotion in its policy toward the area. Yet, despite all these problems, it is becoming increasingly clear that there is a ferment of reform in the Middle East. But how significant is it?
The honeymoon between the Western oil industry and Russian President Vladimir Putin ended in mid-2003 when the Russian procurator's office began arresting Yukos executives. The Kremlin's seemingly sudden attack on private industry surprised the international business community that was expecting investment-friendly behavior from the Russian leadership. After assuming power in late 1999, Putin quickly signaled interest in developing a strong energy partnership with the United States, including increased opportunities for Western firms to invest in Russia's oil and gas industry.
With President Bush's call for comprehensive Social Security reform bogged down in the morass of partisan politics, many reform advocates have suggested starting the process with smaller steps. Recently, Sen. Jim DeMint (R-SC), Rep. Jim McCrery (R-LA), Rep. Paul Ryan (R-WI), Rep. Sam Johnson (R-TX), and others have proposed legislation to rebate Social Security surpluses to workers in the form of contributions to personal accounts.