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2991. Market Comrades

Author:
R. Glenn Hubbard
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Ceremonial gift-giving is an integral part of doing business in China. The value lies not so much in the gift (whose packaging is often more elaborate), but in the possibility of cementing a mutually beneficial relationship. And so it was a few weeks ago with the headline-grabbing announcement that China would revalue the yuan against the U.S. dollar. The modest gesture may make more possible a comprehensive economic dialogue between China and the United States in the interest of both nations. The announcement on July 21 by the People's Bank of China that it would revalue the yuan, abandoning the eleven-year-old peg of 8.28 yuan per U.S. dollar, caught financial markets by surprise. The jolt led market participants to gauge effects of current (and perhaps future) revaluations on currency values and interest rates. And, some U.S. political leaders claimed a victory in the campaign to blame Chinese “market manipulation” for external imbalances facing the United States.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
United States, China, and Asia

2992. Bring Them Home

Author:
Nicholas Eberstadt
Publication Date:
08-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
In the nearly six decades since the United Nations approved the Universal Declaration of Human Rights, more than one constitutional democracy presiding over an ethnically homogeneous populace—governing a nationality, if you will—has been faced with the prospect of a humanitarian crisis afflicting compatriots living beyond its borders. And on more than one occasion, such states have been moved by those same crises to affect the rescue of their countrymen—by welcoming them into the homeland, embracing them as fellow citizens, and permitting them to enjoy the opportunities and benefits of life under secure, constitutional, and democratic rule. The Federal Republic of Germany faced one such crisis in the very earliest days of its existence. That particular humanitarian emergency entailed the plight of the unlucky people who came to be called Vertriebene: ethnic Germans—most of them women and children—who, by no fault of their own, had to flee before the harsh and vindictive specter of Soviet expansion.
Topic:
International Relations, United Nations, and War
Political Geography:
Asia, Soviet Union, and Germany

2993. Yuan Answers?

Author:
Phillip L. Swagel
Publication Date:
06-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
If China decides to adopt a flexible exchange rate, as many U.S. policymakers have urged, gains in U.S. exports and national savings in the long term will be offset by higher prices on Chinese goods and higher interest rates in the short term.
Topic:
Economics, International Trade and Finance, and Politics
Political Geography:
China and Asia

2994. Why Do Poverty Rates Differ From Region to Region? The Case of Urban China

Author:
Guanghua Wan and Yin Zhang
Publication Date:
08-2005
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper proposes a semi-parametric method for poverty decomposition, which combines the data-generating procedure of Shorrocks and Wan (2004) with the Shapley value framework of Shorrocks (1999). Compared with the popular method of Datt and Ravallion (1992), our method is more robust to misspecification errors, does not require the predetermination of functional forms, provides better fit to the underlying Lorenz curve and incorporates the residual term in a rigorous way. The method is applied to decomposing variations of urban poverty across the Chinese provinces into three components – contributions by the differences in average nominal income, inequality and poverty line. The results foreground average income as the key determinant of poverty incidence, but also attach importance to the influence of distribution. The regional pattern of the decomposition suggests provincial groupings based not entirely on geographical locations.
Topic:
Demographics, Economics, and Poverty
Political Geography:
China and Asia

2995. Out of School and (Probably) in Work: Child Labour and Capability Deprivation in India

Author:
D. Jayaraj and S. Subramanian
Publication Date:
08-2005
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores the hypothesis that the phenomenon of child labour is explicable in terms of poverty that compels a household to keep its children out of school and put them to work in the cause of the househol d's survival. In exploring the link between child labour and poverty in the Indian context, the paper advances the view that the nature of the connection is more readily apprehended if both the variables under study are defined more expansively and inclusively than is customarily the case. Specifically, the suggestion is that it may be realistic to include those children who are conventionally categorized as 'non-workers not attending school' within the count of child labourers. It is also suggested that poverty is meaningfully measured in terms of a multi-dimensional approach to the problem, wherein the aim is to assess generalized capability failure—arising from want of access to elementary infrastructural facilities and essential amenities—with respect to a number of basic human functionings. The core of the paper's argument is presented by means of a simple analytical model of child labour and deprivation, and the issues emerging from it are studied in the Indian context with the support of bot h primary and secondary data.
Topic:
Education, Human Rights, and Poverty
Political Geography:
India and Asia

2996. Transforming Conflict with an Economic Dividend: The Sri Lankan Experience

Author:
Saman Kelegama
Publication Date:
08-2005
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Peace can generate an economic dividend, which can be further increased by appropriate economic reform. This dividend can in turn be used to raise popular support for conflict resolution measures along the road to achieving a final political settlement, a strategy that characterizes the recent period in Sri Lanka. However, despite an increase in economic growth following the cessation of hostilities between the Liberation Tigers of Tamil Eelam (LTTE) and the government, no substantial dividend materialized for either government supporters in the South or LTTE supporters in the war-torn Northeast. The causes of this failure include delays in disbursing aid which would have eased adjustment to economic reforms—resulting in cuts to public spending that affected Southern households—and weak institutions that impeded the effective use of aid in the Northeast. The Sri Lankan experience highlights some important lessons for both government and donors on making use of an economic lever for consolidating a peace process and conflict resolution. It also highlights some of the dangers in relying too much on economic levers to consolidate a peace process when levels of mistrust are very high.
Topic:
Conflict Resolution, Economics, and Peace Studies
Political Geography:
Asia and Sri Lanka

2997. Afghanistan: Old Problems, New Parliament, New Expectations

Author:
Emily Hsu and Beth DeGrasse
Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
With the September 18 parliamentary elections, Afghanistan completes its internationally mandated blueprint for democracy and enters a new phase of state building in uncharted waters. This transition occurs against the backdrop of rising threats to security and an economy dominated largely by illicit production and export of opium. On October 12, 2005, the U.S. Institute of Peace convened a meeting of the Afghanistan Working Group to review the recent parliamentary elections. The presenters at the meeting included Robert Varsalone, resident country director for Afghanistan for the International Republican Institute; Sam Zia-Zarifi, research director for the Asia Division of Human Rights Watch; Larry M. Sampler, former chief of staff for the UN Assistance Mission in Afghanistan; and Barnett R. Rubin, chairman of the Afghanistan Working Group. The following USIPeace Briefing summarizes views expressed at the meeting. The views expressed here do not reflect those of the Institute, which does not take positions on policy issues.
Topic:
Democratization, Development, and Politics
Political Geography:
Afghanistan, United States, and Asia

2998. Six-Party Talks: Defining A Realistic Roadmap for Success

Author:
Ralph A. Cossa, Scott Snyder, and Brad Glosserman
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
The forthcoming resumption of Six-Party Talks to eliminate nuclear weapons from the Korean peninsula is expected to build on the Joint Statement of principles released at the end of the last round on September 19, 2005. While some have criticized the vagueness of the Joint Statement, it represents the first tangible progress in identifying common principles and objectives in two years of sporadic meetings. If North Korea has indeed made a “strategic decision” to abandon its nuclear weapons programs – a thesis still to be tested – it may provide a basis for future progress. For this to occur, however, a more specific negotiating road map and implementing process must be developed. It is important to assess where the current guidelines might lead and to identify the "commitments for commitments" and "actions for actions" that might be envisioned as next steps.
Topic:
International Relations, Security, and Nuclear Weapons
Political Geography:
Asia and North Korea

2999. Eurasian Alternative in Turkish Foreign Policy

Author:
Erel Tellal
Publication Date:
03-2005
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
Uluslararasi Iliskiler
Abstract:
One of the constant fundamental principles of Turkish foreign policy during the republican era has been its “Western orientation”. In spite of this fact Turkey faced an “Eurasian alternative” in the last decade. Turkey, after negligence for 70 years, has tried to develop (to have friendly relations) with Central Asian and southern Caucasian states after they had acquired independence. The attempt of the last ten years can be called as failure of the last ten years. Since the State and the Ministry of Foreign Affairs remained ineffective in the process of determining policy and implementing it, this vacuum was filled by extreme nationalists who are inclined to see themselves as “big brother” and also by religious fundamentalists. Moreover, reasons stemming from the region and international environment played a role in the failure of Turkish policies as well. In the second decade Turkey should determine the related factors and head toward to cooperate with regional countries and Russia in order to become successful in the region.
Topic:
Foreign Policy
Political Geography:
Russia, Europe, Central Asia, Eurasia, Turkey, and Asia

3000. Turkish-Tajik Relations After the Independence

Author:
Pinar Akçali
Publication Date:
03-2005
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
Uluslararasi Iliskiler
Abstract:
This article aims to analyze the relations between Turkey and Tajikistan in the aftermath of the dissolution of the Soviet Union. The relations between these two countries remained rather limited in the period of 1991-1994 because Tajikistan was not Turkic, faced negative economic conditions, went through a civil war, and had closer ties with Iran and Russia. Between 1995 and 2003, however, these relations improved as Turkey better realized the fact that Tajikistan was both an inseparable part of Central Asian geography and critical for regional stability. Furthermore, in this period, Tajik Civil War ended with an important political reconciliation. It is concluded that although there has been a relative improvement in Turkish-Tajik relations since Tajikistan's independence, it has not yet reached to a satisfactory level.
Topic:
International Relations, Economics, and War
Political Geography:
Russia, Iran, Central Asia, Turkey, Asia, and Tajikistan