CAPITALIZING ON THE CHINA CYCLE: TIME IS RUNNING OUT FOR LATIN AMERICA. By Kevin P. Gallagher for the Global Development and Environment Institute at Tufts University. (December 2012). This policy brief reviews the prospects for economic growth in Latin America in the event of a slowdown in Chinese demand for primary commodities. The brief argues that, in the long run, China's appetite for Latin American commodities will decline, as will prices. Yet, a China "super-cycle" is still likely, according to the author, which should in turn benefit Latin America for the foreseeable future. The author notes that Latin America's challenge will be to seize this opportunity while it can and use the benefits from China trade to generate long-run sustainable development. The brief can be accessed here.
COORDINATING CLIMATE AND TRADE POLICIES: PARETO EFFICIENCY AND THE ROLE OF BORDER TAX ADJUSTMENTS. By Michael Keen and Christos Kotsogiannis for the International Monetary Fund. (December 2012). This working paper explores the role of trade instruments in globally efficient climate policies, focusing on the central issue of whether some form of border tax adjustment (BTA) is warranted when carbon prices differ internationally. The authors find that tariff policy has a role in easing cross-country distributional concerns that can make non-uniform carbon pricing efficient and, more particularly, that Pareto-efficiency requires a form of BTA when carbon taxes in some countries are constrained, a special case being identified in which this has the simple structure envisaged in practical policy discussions. It also argues that the efficiency case for BTA depends critically on whether climate policies are pursued by carbon taxation or by cap-and-trade. This paper can be accessed here.
THE RE-EMERGENCE OF EUROPE. By Klaus Schwab for the World Economic Forum (December 2012). This e-book examines the events that have led to Europe's current challenging political and financial climate. By looking at potential solutions through social, political, and economic lenses, the book suggests likely outcomes to what Europe will look like in the future. The author also examines the possible long-term implications that global trends and challenges may have on the region. The author asks, for instance, how Europe might remain true to its social democratic traditions while also returning to the top of global competitiveness, and how the 27-member bloc might best make use of its human capital to become a leader again in innovation and sustainability. This e-book can be found here.
OECD STATISTICS ON INTERNATIONAL TRADE IN SERVICES, VOLUME 2012 ISSUE 1. Published by the Organisation for Economic Co-operation and Development (OECD) (2012). This publication includes statistics by category of service on international trade in services for the 34 OECD countries, the European Union, and the Euro Area as well as analysis, definitions, and country notes. The report is available here.
ISSUES IN BRIEF NO. 26 - THE IMF'S NEW VIEW ON FINANCIAL GLOBALIZATION: A CRITICAL ASSESSMENT. By Kevin P. Gallagher for Boston University's Frederick S. Pardee Center for the Study of the Longer-Range Future (December 2012). In this brief, the author analyses the IMF's new policy on managing capital flows and draws out his assessment of the move's implications for future policy, particularly trade and investment treaties. The full brief can be found here.