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231. Why Growth Is Getting Harder

Author:
Brink Lindsey
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
For over a century, the trend line for the long-term growth of the U.S. economy has held remarkably steady. Notwithstanding huge changes over time in economic, social, and political conditions, growth in real gross domestic product (GDP) per capita has fluctuated fairly closely around an average annual rate of approximately 2 percent. Looking ahead, however, there are strong reasons for doubting that this historic norm can be maintained.
Topic:
Economics, Globalization, International Trade and Finance, Markets, Financial Crisis, and Governance
Political Geography:
United States

232. Japan's strategic pivot south: diversifying the dual hedge

Author:
Corey J. Wallace
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
International Relations of the Asia-Pacific
Institution:
Japan Association of International Relations
Abstract:
Tensions between Japan and its neighbors pose a significant problem for the viability of Japan's strategic 'dual hedge' between China and the United States. Japan's response has been to embrace renewed US commitment to the region while initiating comprehensive strategic partnerships in military, economic, and political spheres with nations 'south' of its traditional domain of strategic interest. Strengthened relationships with Southeast Asian nations, India, and Australia may turn out to be crucial for Japan as it will enable Japan to manage its security affairs without having to depart from its long-cultivated maritime security policy, and will enable Japan to continue to pursue a neo-mercantilist economic policy while also supporting the socioeconomic development of other regional players essential for future multipolar balance. Japan's diplomatic activities provide a useful 'strategic contrast' with China that will likely ensure Japan is accepted in the region. Japan's strategic pivot is also domestically sustainable and, therefore, deserves scholarly attention.
Topic:
Economics
Political Geography:
United States, Japan, China, India, Asia, and Australia

233. The Impact of the U.S.-Korea Free Trade Agreement On Both Economies

Author:
Yoon-Shik Park
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
Four and a half years after the agreement between the U.S and Korean governments, the U.S.-Korea Free Trade Agreement (KORUS FTA or KORUS) was finally approved by both the U.S. Congress and the Korean Parliament in late 2011 and has been in effect since March 15, 2012. KORUS is the most important free trade agreement for the U.S. since the North American Free Trade Agreement (NAFTA) that came into force in 1994. Korea has become an important trade partner of the United States, for which Korea is the 7th largest trading partner, 5th largest export market for agricultural products, 2nd largest market for U.S. services in Asia, and 10th largest market for information technology products. The total U.S.-Korea trade volume tripled over just two decades between 1990 and 2011. However, the relative importance of two countries' bilateral trade has declined in recent decades. This trendline decline is expected to be reversed in the coming years because of the KORUS. Several studies have been conducted to estimate the potential effects of KORUS. The U.S. International Trade Commission (ITC) study in 2007 estimated that U.S. GDP would increase by $10 to $12 billion (about 0.1%) and U.S. exports would rise by $9.7 billion to $10.9 billion, if KORUS were fully implemented. A University of Michigan study, commissioned by the Korea Economic Institute, estimated that U.S. GDP would increase by $25 billion (0.14% of GDP). This estimate was larger than the US ITC result, in part because the study included the effects of liberalization in services trade. The Korea Institute for International Economic Policy (KIEP) estimated the potential economic impact of KORUS on Korea's economy. The study concluded that KORUS would lead to an increase of 0.42% to 0.59% in Korean GDP according to a static analysis and 1.99% to 2.27% according to a dynamic analysis. A study by the U.S. Chamber of Commerce in 2009 found that America would suffer a net loss of more than 345,000 jobs, $35 billion in lost export sales and U.S. GDP failing to grow by $40 billion, if KORUS were NOT implemented while the European Union and Canada moved forward to implement FTAs with Korea.
Topic:
Economics
Political Geography:
United States and Korea

234. The American sequester - and us

Author:
Eva Gross
Publication Date:
04-2013
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
Following President Obama's budget proposal on 8 April, the US has embarked on another round of negotiations in attempts to reach a fiscal deal. Differences between the two sides (Democrats insist on taxing the wealthy whereas Republicans insist on spending cuts) have their roots in respective party doctrines, and the current gridlock displays the exceedingly partisan nature of the current US political process. Although the origins of this dispute are clearly to be found in domestic politics, they increasingly have foreign policy implications as well. They are likely to have an impact across the Atlantic - where fiscal austerity and budgetary cuts are equally underway, albeit for reasons that do not entirely coincide - and an effect on EU-US security cooperation.
Topic:
Security, Foreign Policy, Economics, and Politics
Political Geography:
United States

235. The Rebalance to Asia: U.S.-China Relations and Regional Security

Author:
Phillip C. Saunders
Publication Date:
08-2013
Content Type:
Working Paper
Abstract:
Upon taking office in January 2009, Obama administration officials proclaimed a U.S. “return to Asia.” This pronouncement was backed with more frequent travel to the region by senior officials (Secretary of State Hillary Clinton's first trip was to Asia) and increased U.S. participation in regional multilateral meetings, culminating in the decision to sign the Association of Southeast Asian Nations (ASEAN) Treaty of Amity and Cooperation and to participate in the East Asia Summit (EAS) at the head-of-state level. The strategic “rebalance to Asia” announced in November 2011 builds on these earlier actions to deepen and institutionalize U.S. commitment to the Asia-Pacific region.
Topic:
Security, Foreign Policy, Arms Control and Proliferation, Diplomacy, Economics, and Bilateral Relations
Political Geography:
United States, Israel, and Asia

236. The Decline and Fall of France

Author:
Milton Ezrati
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
The National Interest
Institution:
Center for the National Interest
Abstract:
FRANCE's ECONOMY is not just doing badly. It is in profound decline. The slide has proceeded far enough now that businesspeople and politicians across the Continent increasingly refer to France as the "sick man of Europe"-quite a distinction at a moment when Greece, Portugal, Spain and Italy share the hospital ward. For decades, European Union structures were strong enough to allow Paris to ignore the country's economic shortcomings. No longer. Unless Paris reforms its economic policies and practices, it could have a disastrous effect. Further economic woes may undermine the Franco-German cooperation on which the EU has relied, confronting the union with either dissolution or, more likely, an increasingly Germanic future.
Topic:
Economics and Reform
Political Geography:
United States, France, and Germany

237. U.S., China and Thucydides

Author:
Robert B. Zoellick
Publication Date:
08-2013
Content Type:
Journal Article
Journal:
The National Interest
Institution:
Center for the National Interest
Abstract:
LAST YEAR, during his visit to the United States, Chinese president Xi Jinping introduced the idea of a “new type of great-power relationship.” In March of this year, in apparent response, President Obama's national-security adviser, Tom Donilon, suggested an interest in building “a new model of relations between an existing power and an emerging one.” This June, the two presidents met in California to explore whether their strategic outlooks can be reconciled. I suspect that President Xi's concept reflects the senior leadership's study of history. At last year's meeting of the U.S.-China Strategic and Economic Dialogue, former president Hu Jintao stated, “We should prove that the traditional belief that big powers are bound to enter into conflict is wrong, and [instead] seek new ways of developing relations between major countries in the era of economic globalization.” In the United States, professors Graham Allison and Joseph Nye at Harvard have referred to this challenge as “the Thucydides trap”: in explaining the cause of the great Peloponnesian War of the fifth century BC, Thucydides pointed to the rise of Athens and the fear it inspired in Sparta. In the centuries since, scholars have pondered how power shifts have led to competitive tensions, which sometimes have been managed and sometimes led to conflict. This essay will pose a question: What might be the substance of a new type of great-power relationship between China and the United States? Kevin Rudd, former prime minister and foreign minister of Australia, has also taken up this topic in a series of thoughtful speeches. His approach points to the need for reinforcing dialogues and cooperative efforts.
Topic:
International Relations, Economics, and Globalization
Political Geography:
United States and China

238. Left Out

Author:
Henning Meyer
Publication Date:
12-2013
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
When the global financial crisis hit in 2008, social democrats in Europe believed that their moment had finally arrived. After a decade in which European politics had drifted toward the market-friendly policies of the right, the crisis represented an opportunity for the political center left's champions of more effective government regulation and greater social justice to reassert themselves.
Topic:
Economics and Government
Political Geography:
United States, Europe, France, Denmark, and Slovakia

239. Broken Borders: Government, Foreign-Born Workers, and the U.S. Economy

Author:
Benjamin W. Powell and Zachary Gochenour
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Independent Institute
Abstract:
The U.S. government interferes with the market for foreign laborers by restricting the number and mix of immigrants and setting tight quantitative limits on foreign-born guest workers. This has created a mismatch between the demand for foreign workers from U.S. businesses and their supply, directly leading to the illegal immigration situation we confront today. The current system inefficiently limits the gains that our economy could achieve from employing larger numbers of foreign workers, and it disproportionately harms small U.S. businesses. The economic fears associated with increased guest workers or immigrants are unfounded. The current Senate immigration reform proposal would be a marginal improvement but does not go far enough. Red Card, an alternative guest worker proposal, would better coordinate labor markets. Ultimately, an immigration market free from government limitations and interference would be the most efficient solution.
Topic:
Economics, Labor Issues, Immigration, and Governance
Political Geography:
United States and North America

240. Inward FDI in the United States and its policy context

Author:
Lucyna Kornecki
Publication Date:
02-2013
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Inward foreign direct investment (IFDI) represents an integral part of the United States (U.S.) economy, with its stock growing from US$ 83 billion in 1980 to US$ 3.5 trillion in 2011. The United States, which had earlier been primarily a home for multinational enterprises (MNEs) rather than a host for affiliates of foreign MNEs, has become a preferred host country for FDI since the 1980s. Foreign MNEs have contributed robust flows of FDI into diverse industries of the U.S. economy, and total FDI inflows reached US$227 billion in 2011, equivalent to 15% of global inflows, the single largest share of any economy. Inflows of FDI, with a peak of US$ 314 billion in 2000 and another of US$ 306 billion in 2008, have been an important factor contributing to sustained economic growth in the United States. The recent financial and economic crises negatively impacted FDI flows to the United States and opened a period of major uncertainty. The effectiveness of government policy responses at both the national and international levels in addressing the financial crisis and its economic consequences will play a crucial role for creating favorable conditions for a rebound in FDI inflows.
Topic:
Economics, Human Rights, International Trade and Finance, Foreign Direct Investment, and Governance
Political Geography:
United States and North America