The collapse of the Doha trade talks puts at risk one of the rich world's most important commitments to developing countries: to reform policies that make it harder for poor countries to participate in global commerce. Trade has the potential to be a significant force for reducing global poverty by spurring economic growth, creating jobs, reducing prices and helping countries acquire new technologies. Global Trade and Development, a Center for Global Development Rich World, Poor World brief, explains how the U.S. engages in global trade and how trade affects development and global poverty. Learn more about Rich World, Poor World: A Guide to Global Development
With foreign investment in the U.S. increasingly in the spotlight, this working paper by William Cline explores the U.S. external deficit and the fact that the U.S. relies on foreign lending to finance its trade deficit. Cline emphasizes the dangers of a hard landing for the U.S., and why this would especially hurt developing countries that depend on an expanding U.S. economy and are vulnerable to spikes in interest rates. The paper is based on a chapter in Cline’s recent book, The U.S. as a Debtor Nation.
The Commitment to Development Index (CDI), which ranks 21 countries across six policy areas, is widely seen as the most comprehensive and substantive measure of rich country policies towards development. In response to requests from other would-be index builders, CDI architect David Roodman describes the work of the interdisciplinary team that builds and runs the Index. Among the lessons: to work well, policy indexes must combine humility with a clear sense of purpose.
Does openness in trade and the free flow of capital promote growth for the poor? In this new working paper, CGD president Nancy Birdsall describes asymmetries in globalization and their implications for poverty reduction. She argues that poor countries lack effective social contracts, progressive tax systems, and laws and regulations that rich capitalist societies use to manage markets so that free trade and commerce more equally benefit all. These asymmetries also exist at the global level, where poor countries are especially susceptible to the risks of free trade and the vagaries of volatile capital flows.
The ninth negotiating round, named the "Doha" Round for the city in Qatar where it was launched, has proven to be unique, because many developing countries are flexing their political muscle as never before. As a result, the Doha Round seems destined to fail unless rich countries cut the trade barriers that hurt developing countries most: those in agriculture.
With the prospects for an ambitious outcome in the Doha Round of trade negotiations seemingly fading, many are lamenting the welfare gains that would be lost from a superficial agreement while others are asking whether it matters for the world's poorest and, if so, how.
Senior Fellow William R. Cline outlines a "grand bargain" that negotiators can strike at the upcoming "Doha Development Round" that would ahieve increased trade liberalization.
All eyes are on Geneva in the next few weeks as negotiators try to salvage the Doha Round of trade talks before the Hong Kong WTO meetings in mid-December. A new brief by CGD and IIE Research Fellow Kimberly Elliott. Learn more
How is America's debt of 22% of GDP and its $670 billion trade deficit sustainable? What are the challenges to the rest of the world as the US’ fiscal accounts and exchange rates adjust to correct this imbalance? In this important new book, CGD/IIE Senior Fellow William R. Cline argues that without a significant fiscal adjustment, the growing US foreign debt will put the US economy—as well as the world economy and developing nations—at risk. The National Journal calls the book "the most thorough and up-to-date look at the issue."
Production-weighted Estimates of Aggregate Protection in Rich Countries toward Developing Countries - Working Paper 66
These new estimates of rich-country barriers to developing country exports show that the poorest countries face the highest barriers. The trade component of the 2005 CDI is based on this paper.
In this posthumously published working paper, Dick Sabot argues that the U.S. external deficit is putting at risk the welfare of poor people in developing countries. This accessible paper draws on a forthcoming book, The U.S. as a Debtor Nation, by William Cline, and has been updated to include Cline's latest results.
After two decades of neglect, interest in agriculture is on the rise. This new working paper by one of the leading thinkers in rural development argues that the reach and efficiency of rural infrastructure, coupled with effective investment in agricultural research and extension, hold the key to unlocking the potential of agriculture for poverty reduction.
Time to put to rest the stale debate over whether the World Bank should disburse grants or loans to the world’s poorest countries. It is critical that the Bank provide more of its funding as grants, but in a more rational manner than has been the case to date. A third Bank window should distribute grants – and grants only – to very poor countries, for example, with incomes below $500 per capita. Shifting to grants-only for the very poorest countries would ensure they never again find themselves with unpayable debt burdens, and would allow them to re-invest resources into their own economies rather than repay the Bank.
In this brief we focus on potential disruptions in poor countries and the policy priorities for coping with them. In particular, we recommend that the United States, which is the only rich country that does not grant tariff-free access for imports from all least-developed countries, provide this access as quickly as possible. In addition, to take advantage of any resulting opportunities, beneficiary countries must adopt domestic reforms to encourage greater productivity.
Sugar is a prototypical case of a policy that favors the few at the expense of the many. Thanks to a government policy that supports prices by sharply restricting imports, a small number of American sugar cane and beet growers are enriched at the expense of US consumers and of more efficient foreign growers, most of whom are in poorer developing countries.
A Better Globalization: Legitimacy, Governance, and Reform by Kemal Dervis is a reformist manifesto that argues that gradual institutional change can produce beneficial results if it is driven by an ambitious long-term vision and by a determination to continually widen the limits of the possible.
This brief summarizes five key recommendations from the CGD book A Better Globalization: Legitimacy, Governance, and Reform by Kemal Dervis. It presses for reform on a broad front with a renewed, more legitimate, and more effective United Nations as the overarching framework for global governance based on global consent.
Is there any reason to think trade negotiations are more likely now than in the past to encourage substantial reform of rich countries’ farm policies? This paper looks at the evolution of and current approaches to agricultural policies in rich countries to see if there are lessons from the past that might improve chances for reform this time around.