STRUGGLING
WITH SUCCESS
Challenges Facing the
International Economy
Anne O Krueger
Johns Hopkins University, USA
STRUGGLING
WITH SUCCESS
Challenges Facing the
International Economy
Published by
World Scientific Publishing Co. Pte. Ltd.
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STRUGGLING WITH SUCCESS
Challenges Facing the International Economy
Copyright 2012 by World Scientific Publishing Co. Pte. Ltd.
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ISBN-13 978-981-4374-31-6
ISBN-10 981-4374-31-8
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PREFACE
Since the outset of the financial crisis in 2007, it has become fashionable to assert that globalization was an, if not the, underlying cause of the crisis. From that assertion, some have concluded that globalization had gone too far, and needed to be reversed in one or more critical dimensions.
It is certainly true that some lessons have been learned and more will be learned from the crisis. Policy makers will adjust domestic and international policies and procedures in response, and doubtless many of the changes will strengthen the international economic system.
But it often seems forgotten how great the benefits of globalization have been. The past half century has seen huge progress in living standards of the vast majority of the world's population. This progress has translated into increases in life expectancy, greater literacy, improved health and nutritional status, especially in the places which were regarded as underdeveloped in the 1950s.
When Zvi Ruder of World Scientific Publishers approached me to put together some of the papers I had done, I thought that I could assemble material that might remind the critics of the successes of globalization, and simultaneously point to some of the challenges that must be addressed if we are to improve on the functioning of the system.
Focus should not be on reversing globalization; rather, it should be on finding ways to strengthen domestic and international economic policies to reduce the costs, including the costs of crises. There will be future crises, but if the lessons learned from the past half decade can be translated into appropriate policies, the severity of future crises will be reduced. The economic history of the world is one of progress, often enabled through adaptation to the changing structure of economies, but sometimes precipitated by crises when adaptation has been absent or insufficient.
The chapters in this book are intended to contribute to the discussion of needed changes, while simultaneously reminding all of the enormous benefits most have realized by progress to date. It is to be hoped that policy makers will confront the issues and lessons learned constructively and adapt, rather than waiting for the next crisis to force needed changes.
Anne O. Krueger
Washington DC
September 2011
ACKNOWLEDGEMENTS
As indicated in the Preface, this volume contains revised versions of papers most of which were initially written for conferences or for parts of books. I owe thanks for support to a number of individuals who helped with individual chapters; they are acknowledged at the beginning of the relevant chapters.
Others, however, were helpful over a longer time period. Many of the chapters were originally presented while I was at the IMF, and I owe a major debt of thanks to Graham Ingham, who supported me for most of my tenure there. Chapters 2, 5, and 13 were ones in which he played an especially large role as wordsmith and more. Ernest Parham was also invaluable in preparation of the manuscripts for those chapters and chapters 9 and 10.
Woan Foong Wong, now a graduate student at the University of Wisconsin, provided valuable research assistance in putting together the various parts of the manuscript. Sherry Russo was my assistant and gave valuable support in assembling the volume.
Some of the chapters were previously published and have been edited for inclusion here. I am indebted to the following publishers for permission to include the papers indicated:
Chapter 3: Published in American Economic Review, Trade policy and Economic Development: How We Learn. This was originally published in the May 1997 American Economic Review Papers and Proceedings.
Chapter 4: Reserve Bank of Australia, Increased Understanding of Supply Side Economics, Christopher Kent and Michael Robson, editors, Reserve Bank of Australia, 50th Anniversary Symposium, Sydney, Australia, 2010.
Chapter 5: John Wiley, publishers of the World Economy, in which an earlier version of The Importance of Getting Reforms Right was published, Vol. 28, No. 6, June 2005, pp. 749-763.
Chapter 6: Initially presented as a talk to a conference in Brazil entitled International Derivatives and Financial Market conference and was published in Portuguese. A short section on events post 2007 events has been added and much of the material specific to Brazil has been deleted. The sponsors of the conference, the Brazilian Financial and gave their permission for it to be reproduced.
Chapter 7: Published by the Federal Reserve Bank of San Francisco in Reuven Glick and Mark M. Speigel, editors, Asia and the Global Financial Crisis, pp. 93-110, December 2010.
Chapter 9: International Monetary Fund, published in 2002, under the same title as the chapter.
Chapter 10: (with Sean Hagan) Published in the Chicago Journal of International Law, Vol. 6, 2005, No. 1, pp. 203-218.
Chapter 11: Published in Gustav Ranis, S. C. Hu and Y.P. Chu, editors Development into the Twenty First Century, pp. 335-354, Edward Elgar, 1999.
Chapter 12: First published in the Journal of International Trade and Diplomacy, Volume 3, (1), Spring 2009, pp. 33-62. The journal is no longer published. Anyone claiming copyright should write to World Scientific Publishing at .
Chapter 13: Talk given at the 18th Australasian Finance and Banking Conference, Sydney, 2005.
Chapters 1 (Introduction), 8 and 15 were written for this volume and have not previously been published:
Chapter 14 has not previously been published. I presented it as a talk at the Annual Meetings of the World Bank and the International Monetary Fund in Singapore in October 2006 as my farewell address.
LIST OF ABBREVIATIONS
| AD | Antidumping |
| AIDS | Acquired Immune Deficiency Syndrome |
| AMS | Aggregate Measure of Support |
| BRIC | Brazil Russia India China |
