\r\n | \r\n GLOBALIZATION<\/b>\r\n \r\n \"Bush Urges Shift to Direct Grants for Poor Nations,\" by David E. \r\n Sanger in the New York Times<\/i>, July 18, 2001, page A1. \r\n<\/p> \r\n \"Protestors at Bay, Rich Nations' Chiefs to Meet in Genoa,\" by \r\n Alessandra Stanley and Warren Hoge in the New York Times<\/i>, \r\n July 18, 2001, page A10. \r\n<\/p> \r\n \"Fortress Genoa Awaits G-8 Leaders and Foes,\" by Alessandra Stanley \r\n in the New York Times<\/i>, July 19, 2001, page A12. \r\n<\/p> \r\n \"Bush Scolds Protesters at Genoa Talks,\" no byline, New York Times<\/i>, \r\n July 19, 2001, page A12. \r\n \r\n <\/p><\/td>\r\n <\/tr>\r\n <\/table>\r\n\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n
\r\nAll of these articles include criticisms \r\ndirected against those who have protested the recent course of \r\nglobalization... but [none]... present the protesters' views.\r\n<\/b><\/p>
\r\nIt is worth noting\r\n that a large share of export\r\n earnings, especially for the poorest\r\n nations, are used to service past\r\n debt. If this debt were cancelled,\r\n poor nations... would be better able\r\n to develop their domestic\r\n economies. \r\n\r\nIndustrialized nations are seeking to\r\n impose a situation in which\r\n developing nations must increase\r\n their exports. This need is not a\r\n natural development, as implied by\r\n the protesters' critics. \r\n\r\n<\/p> <\/p>
\r\n\r\nIt is\r\n also possible that the World Bank's\r\n programs go awry because they are\r\n poorly designed or driven by\r\n ideological motives -- such as the\r\n promotion of privatization -- rather\r\n than a serious examination of\r\n conditions.\r\n\r\n This was an argument\r\n made by Joseph Stiglitz, the former\r\n chief economist at the World Bank. \r\n\r\n <\/p> <\/p>
\r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n \r\n <\/td>\r\n\r\n\r\n\r\n | \r\n\r\n \r\n <\/b> \r\nThe Times<\/i> article by Sanger discusses a speech in which President \r\nBush advocated that the World Bank convert many of its loans to \r\ngrants. The other Times<\/i> articles report on preparations for the G-8 \r\nsummit in Genoa, Italy. All of these articles include criticisms \r\ndirected against those who have protested the recent course of \r\nglobalization, including comments from President Bush and British \r\nPrime Minister Tony Blair. For example, the Stanley and Hoge article \r\nquotes Blair saying, \"If the public knew [the protesters'] views, \r\nthey'd disagree with them,\" but neither this article nor any of the \r\nothers cited above present the protesters' views.<\/p> \r\n \r\nThe theme repeated by the protesters' critics is that developing \r\nnations must export to the industrialized nations in order to escape \r\npoverty. It is worth noting that a large share of export earnings, \r\nespecially for the poorest nations, are used to service past debt. If \r\nthis debt were cancelled, poor nations would have to divert far fewer \r\nresources to producing goods for export and would be better able to \r\ndevelop their domestic economies. The TRIPS agreement, which extends \r\nU.S.-type patent and copyright protection to developing nations, will \r\nincrease the flow of royalty payments and licensing fees from \r\ndeveloping nations, further increasing the need for developing \r\nnations to export. In short, the industrialized nations are seeking \r\nto impose a situation in which developing nations must increase their \r\nexports. This need is not a natural development, as implied by the \r\nprotesters' critics. <\/p> \r\n \r\nThe article by Sanger notes that the World Bank's programs \"often go \r\nawry,\" but attributes this fact to \"local corruption or the conflict \r\nbetween the bank's plans and \r\nthose of local and national leaders.\" It is also possible that the \r\nWorld Bank's programs go awry because they are poorly designed or \r\ndriven by ideological motives -- such as the promotion of \r\nprivatization -- rather than a serious examination of conditions. \r\nThis was an argument made by Joseph Stiglitz, the former chief \r\neconomist at the World Bank. \r\n\r\n
\r\n <\/p><\/td>\r\n <\/table>\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n\r\n\r\n | \r\n \r\n \r\n\r\n \r\n \r\n | \r\n WTO TALKS <\/b>\r\n \r\n \"U.S., E.U. Near Accord on Trade Talks,\" by Paul Blustein in the \r\n Washington Post<\/i>, July 18, 2001, page E1. \r\n \r\n <\/p><\/td>\r\n <\/tr>\r\n <\/table>\r\n\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n
\r\n\r\nMuch of the article is ostensibly\r\n devoted to the concerns of\r\n developing nations.<\/b>\r\n\r\n In spite of this focus, the article\r\n never mentions the reconsideration\r\n of the TRIPS agreement, the one\r\n item that developing nations insisted\r\n be on the agenda.<\/p> \r\n\r\nBy imposing U.S.- type copyright and\r\n patent protection on developing\r\n nations, TRIPS could drain hundreds\r\n of billions of dollars in royalty\r\n payments and licensing fees from\r\n developing nations over the coming\r\n decades. \r\n\r\n<\/p> \r\nMost people who claim to support\r\n \"free trade\" also support\r\n protectionist measures like\r\n copyrights and patents,\r\n\r\n <\/p> <\/p>
\r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n \r\n <\/td>\r\n\r\n\r\n\r\n | \r\n\r\n \r\n <\/b> \r\nThis article reports on negotiations between the European Union and \r\nthe United States over the agenda for the WTO summit in November. \r\nMuch of the article is ostensibly devoted to the concerns of \r\ndeveloping nations, discussing efforts to increase their access to \r\nmarkets in the industrialized nations. \r\n<\/p> \r\nIn spite of this focus, the article never mentions the \r\nreconsideration of the TRIPS agreement, the one item that developing \r\nnations insisted be on the agenda at the WTO talks. By imposing U.S.-\r\ntype copyright and patent protection on developing nations, TRIPS \r\ncould drain hundreds of billions of dollars in royalty payments and \r\nlicensing fees from developing nations over the coming decades. \r\n<\/p> \r\nIt is also worth noting that at one point the article refers to the \r\nviews of \"free-trade advocates,\" without identifying any groups or \r\nindividuals. Most people who claim to support \"free trade\" also \r\nsupport protectionist measures like copyrights and patents, and do \r\nnot object to professional restrictions that maintain high salaries \r\nfor doctors, lawyers and other professionals. It is unlikely that the \r\npeople referred to in this quote can accurately be described as \"free \r\ntrade advocates.\" \r\n\r\n
\r\n <\/p><\/td>\r\n <\/table>\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n\r\n\r\n | \r\n \r\n \r\n\r\n \r\n \r\n | \r\n GLOBAL WARMING<\/b>\r\n \r\n \"U.S., Japan Are Pressed on Kyoto,\" by William Drozdiak in the \r\n Washington Post<\/i>, July 17, 2001, page A11. \r\n \r\n <\/p><\/td>\r\n <\/tr>\r\n <\/table>\r\n\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n
\r\n\r\nThe last conference in the Hague\r\n broke down primarily over a\r\n demand by the United States that it\r\n be allowed to emit at levels above\r\n those agreed to in the Kyoto\r\n conference in 1997, based on the\r\n fact that it has large amounts of\r\n forests and farmlands.\r\n
<\/b> <\/p> <\/p>
\r\n\r\nSince everyone at the Kyoto\r\n conference knew that the United\r\n States, like other nations, has forests\r\n and farmlands, and set the ceilings\r\n with this in mind, the U.S. was\r\n effectively demanding that it be\r\n granted a higher ceiling than the\r\n one that it had originally accepted. \r\n\r\n
<\/p> <\/p>
\r\n\r\nThere would be little dispute among\r\n the nations that increasing their\r\n forests, farmlands, or other sinks for\r\n carbon dioxide, should be counted\r\n against the limits.\r\n\r\n The issue that\r\n created controversy was the U.S.\r\n effort to raise the limits based on\r\n existing carbon sinks. This would\r\n seriously reduce the effectiveness of\r\n the treaty in curbing global\r\n warming. \r\n \r\n <\/p>
\r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n \r\n <\/td>\r\n\r\n\r\n\r\n | \r\n\r\n \r\n <\/b> \r\nThis article reports on an international conference designed to reach \r\nan agreement to curb global warming, which is taking place in \r\nGermany. At one point the article reports that the previous \r\nconference in the fall of last year broke down over a dispute over \r\ntrading pollution credits between countries. The article also reports \r\nthat the delegates will attempt to determine the extent to which \r\nforests and farmlands -- which pull greenhouse gases out of the \r\natmosphere -- \"should be factored into the equation.\" \r\n<\/p> \r\nAccording to reporting at the time, the last conference in the Hague \r\nbroke down primarily over a demand by the United States that it be \r\nallowed to emit at levels above those agreed to in the Kyoto \r\nconference in 1997, based on the fact that it has large amounts of \r\nforests and farmlands (see \"Global Warming Talks Collapse,\" by \r\nWilliam Drozdiak, Washington Post<\/i>, November 26, 2000, page \r\nA1; \"Treaty Talks Fail to Find Consensus In Global Warming,\" by \r\nAndrew C. Revkin, New York Times<\/i>, November 26, 2000, Section 1, page \r\n1; \"Envoys Could Not Agree on Value of Forests to World Environment,\" \r\nby Andrew C. Revkin, New York Times<\/i>, November 26, 2000, Section 1, \r\npage 16; and ERR 12-1-00). The Clinton administration took the \r\nposition at the Hague conference that it should be able to count the \r\ncarbon dioxide pulled out of the atmosphere by its forests and \r\nfarmland against the ceiling it had agreed to three years earlier. \r\nSince everyone at the Kyoto conference knew that the United States, \r\nlike other nations, has forests and farmlands, and set the ceilings \r\nwith this in mind, the U.S. was effectively demanding that it be \r\ngranted a higher ceiling than the one that it had originally \r\naccepted. \r\n<\/p> \r\nThere would be little dispute among the nations that increasing their \r\nforests, farmlands, or other sinks for carbon dioxide, should be \r\ncounted against the limits. The issue that created controversy was \r\nthe U.S. effort to raise the limits based on existing carbon sinks. \r\nThis would seriously reduce the effectiveness of the treaty in \r\ncurbing global warming. \r\n \r\n
\r\n <\/p><\/td>\r\n <\/table>\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n\r\n\r\n | \r\n \r\n \r\n\r\n \r\n \r\n | \r\n ARGENTINA<\/b>\r\n \r\n \"Argentine with a Headache: The Economy,\" by Clifford Krauss in the\r\n New York Times<\/i>, July 18, 2001, page A12. \r\n \r\n <\/p><\/td>\r\n <\/tr>\r\n <\/table>\r\n\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n
\r\n\r\nThe article begins by asserting\r\n that Mr. Cavallo was viewed as \"the\r\n knight in shining armor who would\r\n lift Argentina out of its three-year\r\n long recession,\" when he took over\r\n the position four months ago.\r\n<\/b>\r\n Many of\r\n Argentina's current problems\r\n actually are the result of Mr.\r\n Cavallo's policies in a previous\r\n government. \r\n<\/p>
<\/p>
\r\n\r\nMr. Cavallo made the decision in the\r\n early 1990s to tie Argentina's\r\n currency to the dollar as a way to\r\n curb hyper-inflation. While the policy\r\n was successful in taming inflation, it\r\n had predictable consequences,\r\n which Argentina is now\r\n experiencing.\r\n\r\n
<\/p>
\r\nCurrent efforts to\r\n maintain the peg with the peso\r\n significantly overvalued have led to\r\n even higher interest rates, enormous\r\n foreign borrowing, and other\r\n measures that are hurting the\r\n economy. \r\n\r\n \r\n
<\/p>
\r\n\r\nIf Mr. Cavallo was\r\n unaware of the extent of the nation's\r\n credit problems it would suggest that\r\n he was an extraordinarily\r\n ill-informed person to become the\r\n government's top economic official. \r\n\r\n
\r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n \r\n <\/td>\r\n\r\n\r\n\r\n | \r\n\r\n \r\n <\/b> \r\nThis article examines the situation of Domingo Cavallo, Argentina's \r\neconomy minister, as he tries to get Argentina out of its current \r\neconomic crisis. The article begins by asserting that Mr. Cavallo was \r\nviewed as \"the knight in shining armor who would lift Argentina out \r\nof its three-year long recession,\" when he took over the position \r\nfour months ago. It is worth noting that many of Argentina's current \r\nproblems actually are the result of Mr. Cavallo's policies in a \r\nprevious government. \r\n<\/p> \r\nMr. Cavallo made the decision in the early 1990s to tie Argentina's \r\ncurrency to the dollar as a way to curb hyper-inflation. While the \r\npolicy was successful in taming inflation, it had predictable \r\nconsequences, which Argentina is now experiencing. When the U.S. \r\ndollar rose against other major currencies, the Argentine currency \r\nrose with it, making its goods uncompetitive in world markets. The \r\nproblem was exacerbated in 1999, when Brazil, Argentina's major \r\ntrading partner, devalued its currency. \r\n<\/p> \r\nArgentina's situation became even worse when Alan Greenspan began \r\nraising interest rates in 1999 in order to slow the U.S. economy. In \r\norder to maintain the link to the dollar, Argentina had to raise its \r\ninterest rates, even though it was already in a recession. Current \r\nefforts to maintain the peg with the peso significantly overvalued \r\nhave led to even higher interest rates, enormous foreign borrowing, \r\nand other measures that are hurting the economy. \r\n<\/p> \r\nAt one point the article quotes Mr. Cavallo as saying that when he \r\nbecame economics minister four months ago, he \"didn't realize our \r\ncredit had totally evaporated.\" Argentina's financial difficulties \r\nhad been widely reported in the international business press at the \r\ntime (see \"Speedy Start on Emergency Economic Plan in Argentina,\" by \r\nClifford Krauss, New York Times<\/i>, March 24, 2001, page B1; \r\nand \"Argentina Presses for Ways to Jolt Its Economy Out of \r\nRecession,\" by Clifford Kraus, New York Times<\/i>, March 25, 2001, \r\nsection 1, page 11). If Mr. Cavallo was unaware of the extent of the \r\nnation's credit problems it would suggest that he was an \r\nextraordinarily ill-informed person to become the government's top \r\neconomic official. \r\n \r\n
\r\n <\/p><\/td>\r\n <\/table>\r\n <\/td>\r\n <\/tr>\r\n\r\n\r\n\r\n \r\n \r\n<\/table>\r\n\r\n\r\n\r\n\r\n\r\n <\/td>\r\n <\/tr>\r\n<\/table>\r\n\r\n\r\n \r\n \r\n \r\n \r\n | \r\n \r\n You can receive ERR via email every week by sending a \"subscribe ERR\"\r\nemail to cepr@cepr.net. You can\r\nfind the latest ERR at TomPaine.com. \r\nAll ERRs since August 2000 are archived at http:\/\/www.tompaine.com\/news\/2000\/10\/02\/index.html. \r\nFor earlier archives, go to http:\/\/www.cepr.net\/columns\/subbaker.htm.\r\n \r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n <\/td>\r\n <\/tr>\r\n<\/table>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\n","contact":"","link":"","address":"","phone":"","parent_id":0,"mime_type":"text\/html","summary":"A weekly analysis of economic reporting in the Washington Post and New York Times. Excerpts relating to corporate globalization: G-8\u2014excluding protesters' views; debt cancellation, the unacknowledged alternative to growth-at-all-costs; World Bank programs ill-conceived, driven by flawed ideology; ignoring Third World's top agenda item\u2014reconsidering the TRIPS agreement intellectual property stranglehold. Also, U.S. subterfuge on global warming; Argentina's current economic crisis caused by yesterday's \"solution.\"","numcomment":0,"fileurl":"\/uploads\/2001\/09\/err_7_23_01.htm","filesize":"25.8 kibibytes","article_url":"\/news\/2001\/09\/9913.php"},"attachments":[],"comments":[]} | | | | | | | | | | | | | | | | | |