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President Hu Jintao’s Visit: The Economic Challenges and Opportunities

On the eve of President Hu Jintao's long-anticipated visit to Washington, critical economic policy issues loom large for both the U.S. and China. Over the past two decades, China has transformed into a major economic power and continues to play a growing role in the global community. Its ascension is likely to be one of…

       




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People In Transition: Assessing the Economies of Central and Eastern Europe and the CIS

After 17 years of transition to market economies in central and eastern Europe and the Commonwealth of Independent States (CIS), are people better off now than they were in 1989? Brookings Global recently hosted a presentation by Senior Fellow and European Bank for Reconstruction & Development (EBRD) Chief Economist, Erik Berglöf, on the 2007 Transition…

       




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Educational equality and excellence will drive a stronger economy

This election taught me two things. The first is obvious: We live in a deeply divided nation. The second, while subtle, is incredibly important: The election was a massive cry for help. People across the country–on both sides of the political spectrum–feel they have been left behind and are fearful their basic needs will continue…

       




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Free college for all will power our 21st-century economy and empower our democracy

Education beyond high school is essential for Americans to prosper in the 21st century. Looking into the past, we have seen the majority of those earning a college degree or other postsecondary credential achieve higher earnings, quality of life, civic engagement, and other positive outcomes. Looking ahead, we see a new future where the vast…

       




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Webinar: Reopening the coronavirus-closed economy — Principles and tradeoffs

In an extraordinary response to an extraordinary public health challenge, the U.S. government has forced much of the economy to shut down. We now face the challenge of deciding when and how to reopen it. This is both vital and complicated. Wait too long—maintain the lockdown until we have a vaccine, for instance—and we’ll have another Great Depression. Move too soon, and we…

       




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The ABCs of the post-COVID economic recovery

The economic activity of the U.S. has plummeted in the wake of the coronavirus pandemic and unemployment has soared—largely the result of social distancing policies designed to slow the spread of the virus. The depth and speed of the decline will rival that of the Great Depression. But will the aftermath be as painful? Or…

       




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Made in Africa: manufacturing and economic growth on the continent

In this week’s episode, John Page, a senior fellow in the Global Economy and Development Program, assesses the potential role of several economic strategies in transforming Africa’s industrial development for the global economy. “Between now and about 2030, the estimates are that as many as 85 million jobs at [the] bottom end of manufacturing will…

      
 
 




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Transportation and the Economy

Opportunity 08 hosted U.S. Transportation Secretary Mary Peters for a discussion of America's transportation infrastructure. Secretary Peters focused on the challenges facing the nation’s transportation network, and how local, state and national leaders can take advantage of new technology and approaches to unleash a new wave of transportation investments in this country.

      
 
 




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What About Microeconomics?

Robert Crandall and Clifford Winston respond to Paul Krugman's recent New York Times Magazine article which laments the current state of macroeconomics. The authors call attention to the fact that Krugman did not mention the state of microeconomics which, they argue, has not suffered any serious intellectual setbacks from the current Great Recession.

      
 
 




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Why the Rules Mattered In the Nomination Race

Hillary Clinton was not ready on day one.

The autopsies of her defeat for the Democratic nomination contest all point to a series of early blunders by her campaign. Her campaign plan was simple: leverage her name recognition, early money lead, and organization to win the Super-Tuesday contests, thereby wrapping up the Democratic nomination in early February. As the inevitable winner, she could be the centrist candidate on the Iraq war and tout her experience as a problem solver.

But her over-confident and over-priced campaign consultants failed to recognize that in a “change” election, caucus attenders were not excited by an Iraq war centrist who also happened to be a Washington insider. Clinton’s lack of a plan to effectively contest the caucuses allowed Barack Obama to win what would be the all important delegate race, and more importantly, give him the mantle of momentum while she appeared mired in the mud at a crucial mid-February stage of the campaign.

But she was ready on day two.

She hit her stride late in the game by impressively winning a series of primary contests. All the more remarkable: she did so on a shoestring election-to-election budget while the media wrote her off as a spoiler. With a newfound voice that emphasized she was a populist who would fight for the people, her new message resonated particularly well as the economy continued to falter.

Unfortunately, by the time she retooled her message and got rid of the people who had driven her campaign into the ditch— campaign manager Patti Solis Doyle and chief strategist Mark Penn—it was already too late. Obama had built a nearly insurmountable lead in the delegate count.

It is here that the rules matter.

If states had not moved up or “frontloaded” the date of their primaries and caucuses, under the misimpression that doing so would give them a greater voice in the 2008 nomination, Clinton might be the Democratic nominee.

She would have received more delegates from Florida and Michigan, two states that she would have likely won if all Democratic candidates had vigorously campaigned, but was denied a full slate because these states violated party rules by holding their elections too early. Counting these contests was important for her delegate count and to her argument that she had won more popular votes than Obama.

If states had not frontloaded their primaries and caucuses, she would have recovered from her early stumbles before it was too late. She would have minimized damage from her disastrous February, when Obama racked up an impressive string of victories even in Virginia, where she might have done better given her later strength.

The irony is that Clinton was expected to benefit from frontloading. Only a candidate with name recognition, money, and organization could compete. Lesser candidates like Joe Biden, Chris Dodd, Mike Gravel, Dennis Kucinich, Bill Richardson and even John Edwards would be quickly weeded out of the field, leaving her with only one real opponent to dispense with.

The lesson is that frontloading does not well serve the nomination process. Running for president is an unrehearsed drill. Mistakes will be made. Candidates become better as they learn how to campaign and to craft messages that work. Democratic Party leaders will undoubtedly look hard over the next four years at what steps can be taken to even out the flow of the nomination contests.

While these lessons may resound loudly for Democrats, they apply equally well to Republicans. Democrats permitted the process to play out over a longer time by awarding delegates proportionately; Republicans brought their nomination to a faster close by awarding delegates by winner-take-all. John McCain became the inevitable winner of his party’s nomination without even winning a state’s vote majority before his opponents dropped like flies.

While Republicans have delighted in the continued fight among the Democrats, McCain has been in a holding pattern since winning his nomination. Unable to use his time effectively to make headway with the American public, he has incurred problems in his own party. As evidence, 30 percent of South Dakota and Montana Republican primary voters registered a protest vote by voting for someone else.

Perhaps McCain won his party’s nomination too soon. He lost to George Bush in 2000 and has yet to demonstrate that he can run an effective general election campaign. He would have benefited from being more strongly tested, making more mistakes, and learning from them in the primary season. Now, he and his campaign will have to learn on the job in the general election, while they face, in Obama, an opponent who has been tempered in his party’s nomination fire stoked by Clinton.

Plenty of time remains for McCain to make his mistakes and for Obama to make more—and for both to recover before November. Campaigns often become so knee-jerk reactive to criticisms of any mistake that they fail to recognize the value in the lessons that may be learned. The primary election season is thus a valuable period for candidates to plumb their strengths and shore up their weaknesses, and we need to find a way to restore it as such.

     
 
 




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Global economic and environmental outcomes of the Paris Agreement

The Paris Agreement, adopted by the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2015, has now been signed by 197 countries. It entered into force in 2016. The agreement established a process for moving the world toward stabilizing greenhouse gas (GHG) concentrations at a level that would avoid dangerous climate…

       




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Adele Morris on BPEA and looking outside macroeconomics

Adele Morris is a senior fellow in Economic Studies and policy director for Climate and Energy Economics at Brookings. She recently served as a discussant for a paper as part of the Spring 2019 BPEA conference.Her research informs critical decisions related to climate change, energy, and tax policy. She is a leading global expert on the design…

       




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Webinar: Reopening the coronavirus-closed economy — Principles and tradeoffs

In an extraordinary response to an extraordinary public health challenge, the U.S. government has forced much of the economy to shut down. We now face the challenge of deciding when and how to reopen it. This is both vital and complicated. Wait too long—maintain the lockdown until we have a vaccine, for instance—and we’ll have another Great Depression. Move too soon, and we…

       




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Economic sanctions: Assessing their use and implications for U.S. foreign policy

On January 27, Foreign Policy at Brookings hosted a panel discussion on economic sanctions and their implications for advancing U.S. foreign policy objectives. Moderated by Robert Bosch Senior Visiting Fellow Jim Goldgeier, the panel included experts with a combined background on the use of sanctions in the Middle East, Latin America, and North Korea: Brookings…

       




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Building the SDG economy: Needs, spending, and financing for universal achievement of the Sustainable Development Goals

Pouring several colors of paint into a single bucket produces a gray pool of muck, not a shiny rainbow. Similarly, when it comes to discussions of financing the Sustainable Development Goals (SDGs), jumbling too many issues into the same debate leads to policy muddiness rather than practical breakthroughs. For example, the common “billions to trillions”…

       




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A social distancing reading list from Brookings Global Economy and Development

During this unusual time of flexible schedules and more time at home, many of us may have increased opportunities for long-form reading. Below, the scholars and staff from the Global Economy and Development program at Brookings offer their recommendations for books to read during this time. Max Bouchet recommends The Nation City: Why Mayors Are…

       




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The Economics of the Cross-Strait Services Agreement

On March 30, 2014, 500,000 Taiwanese, according to some observers, gathered in a rally against the hasty ratification of the contentious Cross-Strait Services Trade Agreement (CSSTA). The rally marked the climax of the recently concluded 24-day student-led sit-in protest inside Taiwan’s Legislative Yuan (LY). Some considered the protest’s rationale plausible and others did not; regardless, a sound resolution…

       




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Congressional Testimony: Cross-Strait Economic and Political Issues

Cross-Strait relations have marked a path of reduced tension and increasing cooperation after the election of President Ma Ying-jeou of the ruling Chinese Nationalist Party (KMT) in 2008. Taiwan’s efforts to institutionalize its engagement with the People’s Republic of China (PRC), particularly in trade and investment activities, presents both opportunities and challenges on both sides…

       




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The G-20 Los Cabos Summit 2012: Bolstering the World Economy Amid Growing Fears of Recession


Leaders will head to the G-20 Summit in Los Cabos, Mexico, among renewed serious concern about the world economy. The turmoil that started with the U.S. subprime mortgage crisis has resulted in now almost five years of ongoing instability. The emerging market economies fared much better than the advanced economies and pulled out of the crisis already in 2009, but the slowdown we are now facing in 2012 is again global, demonstrating the interdependence in the world economy. The emerging market economies have stronger underlying trend growth rates, but they remain vulnerable to a downturn in the advanced economies. The center of concern is now squarely on Europe, with a recession threatening most European countries, even those that had reasonably good performances so far. After an encouraging start in 2012, the U.S. economy, while not close to a recession, is also showing signs of a slowdown rather than the hoped for steady acceleration of growth. And the slowdown is spreading across the globe.

At a time like this it would be desirable and necessary that the G-20 show real initiative and cohesion. The essays in this collection look at the challenge from various angles. There is concern that the G-20 is losing its sense of purpose, that cohesion is decreasing rather than increasing, and that policy initiatives are reactive to events rather than proactive. Let us hope that at this moment of great difficulty, the G-20 will succeed in giving the world economy a new sense of direction and confidence. It is much needed.

Download » (PDF)

Image Source: Andrea Comas / Reuters
     
 
 




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Ryan Hass speaks on a panel about China’s Belt and Road Initiative, hosted by the World Economic Forum in Amman, Jordan

On April 7, Ryan Hass spoke on a panel about China's Belt and Road Initiative and China's relations with the Middle East during a session of the "World Economic Forum on the Middle East and Africa," which was held in Amman, Jordan.

       




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The end of Kansas-Missouri’s border war should mark a new chapter for both states’ economies

This week, Governor Kelly of Kansas and Governor Parson of Missouri signed a joint agreement to end the longstanding economic border war between their two states. For years, Kansas and Missouri taxpayers subsidized the shuffling of jobs across the state line that runs down the middle of the Kansas City metro area, with few new…

       




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Webinar: COVID-19 and the economy

With more than 1,000 deaths, 3 million and counting unemployed, and no definite end in sight, the coronavirus has upended nearly every aspect of American life. In the last two weeks, the Federal Reserve and Congress scrambled to pass policies to mitigate what will be a very deep recession. Americans across the country are asking—…

       




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Campaign 2016: Ideas for reducing poverty and improving economic mobility


We can be sure that the 2016 presidential candidates, whoever they are, will be in favor of promoting opportunity and cutting poverty. The question is: how? In our contribution to a new volume published today, “Campaign 2016: Eight big issues the presidential candidates should address,” we show that people who clear three hurdles—graduating high school, working full-time, and delaying parenthood until they in a stable, two-parent family—are very much more likely to climb to middle class than fall into poverty:

But what specific policies would help people achieve these three benchmarks of success?  Our paper contains a number of ideas that candidates might want to adopt. Here are a few examples: 

1. To improve high school graduation rates, expand “Small Schools of Choice,” a program in New York City, which replaced large, existing schools with more numerous, smaller schools that had a theme or focus (like STEM or the arts). The program increased graduation rates by about 10 percentage points and also led to higher college enrollment with no increase in costs.

2. To support work, make the Child and Dependent Care Tax Credit (CDCTC) refundable and cap it at $100,000 in household income. Because the credit is currently non-refundable, low-income families receive little or no benefit, while those with incomes above $100,000 receive generous tax deductions. This proposal would make the program more equitable and facilitate low-income parents’ labor force participation, at no additional cost.

3. To strengthen families, make the most effective forms of birth control (IUDs and implants) more widely available at no cost to women, along with good counselling and a choice of all FDA-approved methods. Programs that have done this in selected cities and states have reduced unplanned pregnancies, saved money, and given women better ability to delay parenthood until they and their partners are ready to be parents. Delayed childbearing reduces poverty rates and leads to better prospects for the children in these families.

These are just a few examples of good ideas, based on the evidence, of what a candidate might want to propose and implement if elected. Additional ideas and analysis will be found in our longer paper on this topic.

Authors

Image Source: © Darren Hauck / Reuters
     
 
 




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Walk this Way:The Economic Promise of Walkable Places in Metropolitan Washington, D.C.

An economic analysis of a sample of neighborhoods in the Washington, D.C. metropolitan area using walkability measures finds that: More walkable places perform better economically. For neighborhoods within metropolitan Washington, as the number of environmental features that facilitate walkability and attract pedestrians increase, so do office, residential, and retail rents, retail revenues, and for-sale…

       




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The economic power of walkability in metro areas

You might be getting whiplash from the latest takes: millennials, a driving force behind the revival of cities, are now fleeing for the suburbs? While the latest census data do show this geographic phenomenon, we should be careful about using an old framing–city versus suburb–to understand a new trend: the growing market for walkable urban…

       




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China 2049: Economic challenges of a rising global power

In 2012, the Chinese government announced two centennial goals. The first was to double the 2010 GDP and per capita income for both urban and rural residents by 2021. The second was to build China into a fully developed country by 2049, the year when the People’s Republic of China (PRC) celebrates its centenary. Indeed,…

       




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Open for business: Building the new Cuban economy


Event Information

May 31, 2016
5:30 PM - 7:00 PM EDT

Falk Auditorium
Brookings Institution
1775 Massachusetts Avenue, N.W.
Washington, DC 20036

For Cubans, “D17”—December 17, 2014—changed everything. On that day, the United States and Cuba announced that the two countries would renew diplomatic relations nearly 60 years after Fidel Castro came to power. For both countries, a new transformation has begun—but this time, it is the promise of Cuba’s insertion in the globalized economy and the crumbling U.S. embargo that is catalyzing change on the island.

On May 31, the Brookings Book Club hosted Nonresident Senior Fellow Richard E. Feinberg and NPR Correspondent Tom Gjelten for a discussion of Feinberg’s new book, “Open for Business: Building the New Cuban Economy” (Brookings Institution Press, 2016). The discussion focused on the factors that guided this monumental decision: international diplomacy; changes already underway in Cuba; successful Cuban entrepreneurs and foreign investments; and scenarios for Cuba’s future development path.

Three young Cuban leaders, including two whose vignettes appear in the book, “Open for Business,” joined the discussion and shared their personal experiences with the economic realities in Cuba today, as well as the opportunities created by the shift in Cuban-American relations.

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Iran’s economic reforms in retreat

If the intended aim of the new round of U.S. sanctions were to change Iran’s behavior, it already has. Just not the behavior the Trump team had in mind—Iran abandoning its pursuit of pro-market economic reforms. President Hassan Rouhani, who was elected twice, in 2013 and 2017, on a platform of liberal economic reforms, has…

       




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Iran’s economy 40 years after the Islamic Revolution

Unlike the socialist revolutions of the last century, the Islamic Revolution of Iran did not identify itself with the working class or the peasantry, and did not bring a well-defined economic strategy to reorganize the economy. Apart from eliminating the interest rate from the banking system, which was achieved in name only, the revolution put…

       




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Politics Trump Economics in the Complex Game of Eastern Mediterranean Hydrocarbons


A 2010 publication of the U.S. Geological Survey caused major excitement in Cyprus, an island that at the time was suffering from the economic collapse of its neighbor and major trading partner, Greece. According to the publication, the seabed of the Eastern Mediterranean could contain up to 120 trillion cubic feet (tcf) of natural gas.3 Three years later, the Cypriot administration has high hopes that natural gas exports may get Cyprus—the third smallest European Union member state—back on its feet, after its own financial collapse in 2012. Unfortunately for the Cypriots, the reality on the ground is sobering, and it is currently unclear whether Cyprus will become a producer, or an exporter, of natural gas. Around Cyprus, other countries hope to benefit from the energy potential as well, including Israel, Lebanon and the Palestinian Authority. In the Israeli Exclusive Economic Zone (EEZ), in particular, substantial reserves of natural gas have been found, though the verdict is out whether these will in fact all be produced.

Exploration of Cyprus’s offshore concessions is at an early stage. Energy majors such as ENI and Total are among the first to explore possible gas (and oil) reserves and they expect results not before 2015. To date, only two test wells have been drilled by Houston-based Noble Energy. Proven reserves have been downgraded since and are currently estimated to be between 3 and 5 tcf. At this level of reserves, investing in a natural gas liquefaction terminal, which the Cypriot administration has supported, is not economically viable. A better alternative would be to construct a pipeline to Turkey, which has a large and rapidly growing market for natural gas.

Download the full piece »

Downloads

Image Source: © Handout . / Reuters
      
 
 




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Turkey-Israel relations: a political low point and an economic high point


Turkish Foreign Minister Mevlut Cavusolu’s decision earlier this month to decline to participate in the Munich Security Conference due to Israeli ministerial participation marks a new low in the troubled Turkish-Israeli relationship.

And yet, the latest statistics released this week by the Israeli government document an overall volume of $5.44 billion dollars in Turkish-Israeli trade during 2014. This marks an all-time high point in Turkish-Israeli economic relations, up 11.5 percent from 2013, including $2.75 billion in Israeli exports to Turkey (a 10 percent year-to-year increase) and $2.68 billion in Turkish imports to Israel (13 percent higher than 2013).

This pattern of an almost non-existent political dialogue at the senior levels accompanied by robust bilateral trade has characterized the Turkish-Israeli relationship since 2011. Short of unexpected dramatic changes, the relations between the two former allies will likely continue in this pattern for the foreseeable future. 

Almost two years after Israel’s official apology to Turkey over the Mavi Marmara incident (which I wrote about in depth here), the two countries continue to move in different directions, despite sharing similar strategic concerns on a range of regional issues – the civil war in Syria, instability in Iraq and Iran’s nuclear program.

The main bone of contention between the AKP-led Turkish government and the Likud-led government in Israel remains the Palestinian issue. Turkey continues to speak out against Israeli occupation and settlement activity in the West Bank, as well as on Israeli human rights violations towards the Palestinian population. In addition, Turkey remains one of the main (very few) patrons of Hamas, providing the group with political and economic support and allowing the organization to maintain representation in Istanbul. Israel viewed with disdain Turkish attempts, together with Qatar, to facilitate a ceasefire with Hamas during the summer 2014 war. Anti-Turkish sentiments in Israeli public opinion skyrocketed in response to President Erdogan’s allegations that Israeli policies on Gaza are genocidal. 

Amidst rising tensions in the relationship, President Erdogan publicly vowed after his August 2014 election that as long as he’s in power, Turkey’s approach to Israel will not change. As a result, there are no serious expectations that any senior-level political dialogue will resume, and mutual representation is likely to remain at a junior diplomatic level (after ambassadors were withdrawn from Tel Aviv and Ankara in 2011).

The interesting aspect of the relationship continues to be the booming trade between the two countries, which despite political tensions continues to grow at a rapid pace. Clearly there is an interest on both sides to insulate the economic sphere from the political sphere. Robust trade serves both countries’ economic interests and during a very unstable period keeps the relationship afloat. Nevertheless, an Israeli – Turkish natural gas deal which was considered in the past as a likely scenario and possibly a regional and bilateral “game changer” seems at present to be “off the table.” Potential energy cooperation between Turkey and Israel around the Eastern Mediterranean natural gas discoveries may be possible only in the context of political rapprochement. 

Authors

Image Source: © Baz Ratner / Reuters
      
 
 




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It's time to bring back Home Economics class

There are many benefits to offering an updated version of home economics at school.




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Will autonomous delivery robots soon be pushing pedestrians off the sidewalks?

Nobody is actually asking the question, because pedestrians don't matter, do they?




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Green economies offer small islands new economic and ecological opportunities

Environmental sustainability doesn’t have to come at the expense of economic development.




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The impact on Nigeria of the coronavirus pandemic: socioeconomic pandemonium!

It would be hell if the Covid-19 breaks out in Nigeria on the scale presently being witnessed in Europe and the US. Apart from the dire state of the healthcare system, 69 million Nigerians have no access to clean water. This invariably leads to water-borne diseases like cholera, which continue to break out as regular epidemics. Social distancing and self-isolation presuppose that people have enough space. In Lagos where we have over 100 slum areas, about 80 people can be found sharing a 10-room building with only two toilets and a bathroom being shared by all with no pipe-borne or treated water readily available.




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New Survey Explores Link Between Views on Politics, Economics, and Global Warming

Photo courtesy of Next Nature American Climate Values Survey Views on global warming may be more strongly politically and economically influenced than many may have hoped. The recently released results of the American Climate Values Survey, conducted




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Injecting Aerosols Into Atmosphere to Slow Global Warming Environmentally & Economically Risky

Another report on another geoengineering method that is likely too risky to try and utterly not cost-effective: Injecting aerosols into the atmosphere to slow warming (which would do absolutely nothing about ocean acidification, by the way).




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Tidal Power Could Inject £3 Billion Each Year Into UK Economy

By 2050 wave and tidal power could supply 11% of current UK electricity demand.




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Are Skyscrapers Torpedoing the World's Economies?

A new report by Barclays Capital suggests a dark side to the building boom in places like China, India, and Turkey.




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Could photography and the "sharing economy" mindset disrupt trophy hunting?

The sharing economy is all about access instead of ownership. Can this mindset be expanded to help hunters rethink what they value when it comes to trophy hunting?




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The philosopher's stone for a new era: quest for a cheap hydrogen economy

Hydrogen is abundant in water and full of energy. We just need a cheap way to get the hydrogen where we need it.




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EPA to revisit and probably roll back fuel economy standards

Because America needs more SUVs and pickup trucks to be great again




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Board game introduces pathways to a competitive bioeconomy using hemp & bamboo

This Monopoly alternative is designed to act as a walkthrough of the concepts of a new economically and ecologically viable "Industrial Evolution" based on a renewable bioeconomy.




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Is The Post-Fossil Fuel Economy Already Emerging?

Growing bike sales, a boom in sharing, and an interest in growing your own food are ust some of the signs that we could be moving beyond our current energy paradigm. Add your own to the list.




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At IDS16: an affordable, minimal and ergonomic standing desk

It's really all you need in this era of notebook computers.




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Nomadic home prototype built out of a shipping container (Video)

A contemporary design for an earthquake-resistant, modular home.




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The Ontario Beer Store is a model for the circular economy

It's being killed the name of "convenience."




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Scientists figure out what the celestial phenomenon "Steve" really is

More than just a typical aurora, researchers have now figured what powers this stunning lightshow and where it comes from.




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Will cleaner fuel for ships wreck the economy and worsen global warming?

That's what a lot of people are saying as new pollution rules for 2020 get closer.




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On MNN: Edward Burtynsky, Noma Restaurant and the future of the Sharing Economy

A TreeHugger hero visits our sister site.