The overvalued U.S. dollar has been unable to adjust sufficiently against Asian currencies, creating a risk that the United States will revert to trade protectionism in its attempt to achieve a better trade balance.
War, terrorism, a deepening secessionist movement, and interconnected economic and demographic trends threaten to overwhelm the Yemeni government, provide a breeding ground for terrorists, and destabilize the region.
The recent emphasis on the trade imbalance between the United States and China—which was high on President Obama’s agenda in Asia this week—is largely misplaced and diverts attention from more pressing domestic problems.
The White House must put forth a visionary new trade agenda to rebuild U.S. leadership abroad. However, it must first reinvigorate domestic support for its plans among the public, the private sector, and Congress.
Developing countries already play a substantial role in world trade, and their significance is only expected to rise. As they diversify and grow as export markets, emerging economies will come to dominate international trade.
China’s recovery is broadening and is expected to hold strong through 2010, but an unclear strategy for tightening monetary policy and domestic asset bubbles could pose significant risks to longer-term growth.
Government spending in oil-exporting countries in the Middle East and North Africa cushioned the impact of the global economic crisis, though it could not prevent asset values from collapsing and credit from tightening.
By 2050, emerging countries in Asia and Latin America are expected to become economic powers comparable to the United States and Europe, dramatically shifting the world’s balance of power.
While the WTO Ministerial will not address Doha, it does present an opportunity to strengthen the WTO by increasing transparency, providing better access to data, broadening monitoring, and easing the accession process.
Despite recent Chinese criticism of low U.S. interest rates, changing these rates in either direction would have adverse effects on China’s economy, underscoring the deep imbalances in the global financial system.























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