The notion that a person can turn a dream into a small business by applying healthy doses of ingenuity, elbow grease and grit has resonated with Americans from the earliest days of this nation. Indeed, there is something so intrinsically appealing about that scenario that more than 22 million Americans are small business owners today—including some 20 million who operate "micro"—or very small—enterprises.
Topic:
Development, Economics, Environment, and Industrial Policy
Changes in technology have been transforming commerce, politics, and culture for centuries. Yet it is now becoming clear that the explosion of the Internet and assorted digital technologies is provoking epochal changes in the global economy. Finance capital now roams the world with unprecedented speed. Transportation and logistics have become radically more efficient. Work readily moves to wherever it can be most skillfully and cheaply performed. Innovation and productivity are forging ahead, sometimes at blinding speeds.
Topic:
Development, Economics, Globalization, Government, and Science and Technology
Twenty years ago, the United States was the world's largest creditor nation, unsurpassed in its ownership of assets outside of its borders, even after deducting what foreigners owned inside its borders. Yet over the past two decades, America has been transformed into the world's largest debtor nation. At the end of 2004, its debts to the rest of the world exceeded its assets by about $2.5 trillion—21 percent of its gross domestic product (GDP). This proportion is unmatched by any other major developed economy.
The Middle East will be a central focus of U.S. foreign policy for the next generation and beyond. While the list of challenges in the region is long, the Arab world also presents opportunities. In a region marked by a "democracy deficit" and limited economic prospects, there is also ferment. From Marrakesh to Cairo and Ramallah to Riyadh, Arabs are engaged in intense debate, self-reflection, and reassessment of their societies. Washington has a chance to help shape a more democratic Middle East. Whereas emphasis on stability was once the hallmark of U.S.-Middle East policy, democracy and freedom have become a priority. Indeed, U.S. policymakers concluded shortly after the September 11 attacks that the prevailing domestic political, economic, and social conditions within Arab countries were a serious national security concern.
Iraq's elections on January 30, 2005, were a watershed in the country's history. Still, democracy involves much more than voting. It is about the distribution of political power through institutions and laws that guarantee accountable rule. The real fight for power will be over Iraq's permanent constitution.
Erik Canton, Bert Minne, Ate Nieuwenhuis, Bert Smid, and Mark van der Steeg
Publication Date:
08-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Long-run per capita economic growth is driven by productivity growth. Major determinants of productivity are investments in education and research, and the intensity of competition on product markets. While these ideas have been incorporated into modern growth theories and tested in empirical analyses, they have not yet found their way to applied macroeconomic models used to forecast economic developments. In this paper, we discuss various options to include human capital, R and product market competition in a macroeconomic framework. We also study how policy can affect the decisions to build human capital or to perform research, and how competition policy impacts on macroeconomic outcomes. We finally sketch how these mechanisms can be implemented into the large models used at the Netherlands Bureau for Economic Policy Analysis (CPB).
Topic:
Development, Economics, Education, and Emerging Markets
Luca De Benedictis, Roberta De Santis, and Claudio Vicarelli
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The aim of this paper is to estimate the effect of the EU's eastern enlargement on the trade patterns of the Central and Eastern European countries (CEECs)1 that joined the EU in May 2004. In particular, the paper investigates whether and how the EU free trade agreements (FTAs) with the CEECs affected centre-peripheral and intra-peripheral trade flows. It also evaluates whether the prospect of joining the EU had the added positive effects on the export flows of the CEECs that had been anticipated.
Patrick Clawson, François Heisbourg, and Vladimir Sazhin
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The definition of European policy objectives and strategies vis-à-vis Iran's nuclear ambitions must take into account the specificities of the case, setting, as it were, its problématique. First, we have the unusual situation of a basically three-way game: the EU (and notably the EU-3, comprising the UK, France and Germany), Iran and the 'significant other', the United States, which is outside of the negotiation but a key player. Any student in strategy knows that a triangle is the most unstable and tricky combination to deal with, and the presence of yet another set of outsiders (notably Russia and China) adds another element of complexity.
Topic:
Development and Peace Studies
Political Geography:
Russia, United States, United Kingdom, Europe, Iran, Middle East, France, and Germany
Sjef Ederveen, Albert van der Hoorst, and Paul Tang
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
A stronger focus on jobs and growth is part of an effort to renew the Lisbon strategy. Yet the view that economic expansion contributes to maintaining Lisbon's other goals of social cohesion as well as the environment is somewhat optimistic. First, there are structural trade-offs among the central elements of the Lisbon strategy. Escaping these trade-offs temporarily is sometimes possible but requires policy changes. Second, higher productivity (growth) may not provide more structural room for governments to manoeuvre. It leads to higher tax receipts but also to higher public expenditures since public sector wages and social security benefits are linked to productivity. In contrast, more employment (jobs) is associated with a smaller public sector. But to engineer the increase in employment, changes in welfare state arrangements are needed. In other words, focussing solely on the sick child will probably harm the other children.
Topic:
Security, Development, Economics, and Human Welfare