ECONOMICS: GLOBAL STATISTICS, TRENDS, ISSUES, PROSPECTS
from

Global Issues of the Twenty-First Century
and United Nations Challenges
A GUIDE TO FACTS AND VIEWS ON MAJOR OR FUTURE TRENDS

BACK INDEX NEXT

by Christopher Spencer
Former Senior Advisor International Organizations,
Canadian Department of Foreign Affairs and International Trade
Updated: 13 SEP 08


F.H.Abed, "Micro-Credit, Poverty and Development: the Case of Bangladesh" in Behind the HeadlinesVol.57/ No.2-3 (Winter/Spring 00):-micro-credit -small loans made to poor households/individuals to finance small-scale entrepreneurial activities- has expanded rapidly(world target is now $20b), and encouraged hope for major cost-effective global poverty-reduction. "NGOs in Asia, Africa, and Latin America are largest providers of micro-credit to those sections of society - rural landless, disadvantagedwomen, marginal farmers, and wage labourers - who depend largely on selling their labour for a living" (12). These target groups reflect the fact that it is often the only way very poor can break cycle of povertyresulting from a lack of collateral and exorbitant local interest charges. It produced high success ratesnot only in poverty-reduction(and repayment:98%)but in social reform, economic development, education/training, and growth of assets for both borrowers/lenders, which is reinvested. Abed, director ofBangladesh Rural Advancement Committee, among world's largest NGO's, offers much globally-relevant information:big issues/questions; scale/approach/result; specialties(income-useful education, social development).

 

Virginia D. Abernethy, Population Politics: The Choices that Shape Our Future(New York: Insight Books 93):-an influential source, frequently cited for its study of human incentives. It takes now widely-held view that developing an informed motivation to lower fertility rates(e.g. perception of limited resources)must often precede active use of contraceptives. It also makes radical proposal: total US immigration ban.[In fact, current migration from poor to rich countries barely affects demographic pressures or trends, although short-distance, large-scale movements (such as from Bangladesh to Assam)can have local impact.] G. Pascal Zachary, "An Unconventional Academic Sounds Population Alarm" in Wall Street Journal 31 Jul 98, reports that Abernethy opposed most aid to poor countries since, contrary to "demographic transition" theory(that fertility falls as living standards rise), prosperity increases fertility.[Most experts probably feel that while" transition" is much more complex than once thought, perceiving its complete reversalwould:(1)confuse some immediate, with major long-term, effects of rising living standards (low OECD fertility);(2)ignore many other factors, e.g. female education; women's choice; cultural imperatives.]

 

Paul R. Abramson and Ronald Inglehart, Value Change in Global Perspective(Ann Arbor: Univ. of Michigan Press, 1995):-the book makes a statistical survey of most major countries, rich and poor, to demonstratethat there is a generational trend for public opinion to change from primary concern with Materialism(economic development, security, etc.)to Postmaterialism(democracy, human rights). For another viable option available, so many can reflect the change in their global values, see: Kimon Valaskakis et al., The Conserver Society: A Workable Alternative for the Future(Toronto: Fitzhenry & Whiteside, 1979).

 

Diane Ackerman et al., The New Age of Discovery: A Celebration of Mankind's Exploration of the Unknown (Toronto: Time Canada 97):-although"popular"in format, purpose/content are serious: 17 thoughtful essays contributed by leading scientists and academics. Aim is to survey where scientific discovery now stands, and where it is taking us. Many topics are or will be global and/or UN issues: health/ageing; defence against asteroids; DNA/climatic discoveries and implications; "Third World" -relevant technology; genderdifferences; care of global commons and indigenous peoples; extraterrestrial life; new energy forms; ethical computing; "homogenization" of world; special global challenges. Relatively easy place to start looking at trends and prospects- particularly if your background not in science. Survey is just example ofvaluable collections of what are in fact 21st-Century global issues, put together by good general periodicals(dailies, weeklies, monthlies),often to mark occasions like anniversaries or new years/decades. Those fitting our purposes here would be forward-looking, deal with subjects global in scope or importance, be written by top impartial authorities, and preferably offer reading lists.

 

James Adams, The Next World War: Computers Are the Weapons and the Front Line Is Everywhere(New York: Simon & Schuster 98):-not primarily about technology, but rather warning about (un)anticipated effects of accelerating revolution in many-faceted field of information warfare(IW). Uses many original sources to explain fundamental changes in nature of combat. Weapons can be disabling, non-lethal, long-distance, unmanned, multi-use, minuscule... Wars may be battlefield-less, electronic, adversary-ambiguous, instantaneous... Intelligence and surveillance will be pervasive/often decisive. At same time, vast technical lead -and complexity - of rich countries' forces/societies also creates immense (cyber)vulnerability. In global North-South terms, implies economically-advanced states will prefer to fight by exploiting their technology, while any less-advanced opponents will tend to concentrate their attackson that technology's weak points.[World community/UN will find "violent conflict" (formal inter-state war now very rare)not only creates multiple new diplomatic/legal issues(time/space limits, sanctions, intervention, lethality, causes, costs, crimes)but, most difficult of all, is increasingly ambiguous, in terms of "participants" (both initiators and intended enemies/victims), location(e.g. if electronic, disease-inducing, and/or delayed-action), aims(already true of terrorism), even very existence(e.g. cyber-, resource- or bio-conflict; deliberate/ accidental?).One major consequence then is that entire concept of conflict-resolution transformed.]

 

Patricia Adams and Grainne Ryder, "China's Great Leap Backward: Uneconomic and Outdated, the Three Gorges Dam Will Stunt China's Economic Growth" International Journal Vol.LIII/No.4(Autumn 98):-fear of global warming produced above all by fossil fuels' carbon dioxide caused real concern about China's vast impact as world's largest producer/consumer of coal, worst fossil fuel CO2 source. Yet large hydroelectric dams also produced great environmental damage, and Three Gorges Dam will be largest in world. Hence article argues Dam hydro-generation should be replaced by "either combined cycle gas turbines or cogeneration [which] would reduce CO2 emissions by more than 60%" (694).(Explanation in article.)Unfortunately, case is made with such CO2 focus that critical purpose of dam "flood-control" is ignored. See massive global threat from flooding: Economist 11 Mar 00(op.cit.).

 

M. A. Adelman, The Genie Out of the Bottle: World Oil Since 1970 (Cambridge: MIT Press, 1996).- possibly the most serious challenges resulting from world economic and environmental change relate to producing and consuming energy. Oil is still the world's most critical energy source, and will never be exhausted; it will simply cease being economically retrievable.. For those with some economic experience, this book provides anexcellent history of global trends in the oil industry since it became a major factor in world affairs, including OPEC's formation, the OPEC-induced 1970s oil price shocks, and the 1986 collapse of OPEC's attempt to control prices; it also provides a backdrop to recent major changes in the industry. For interesting statistical evidence that oil prices may play a greater role in raising or lowering employment than interest rates, inflation or productivity, see The Economist 01 Apr 00:" Oil and the New Economy" (72).

 

Agence France-Presse"U.N. Chief Blames Rich Nations for Failure of Trade Talks"New York Times 13 Feb 00:-UNSG Kofi Annan told Conference on Trade and Development(UNCTAD) in Bangkok that breakdown of WTO meeting in Seattle was not result of violent NGO protests, but was the fault of world's most powerful nations which "could not agree on their priorities" . While the developing nations playedmore "active and united role" than ever before, industrial powers" bickered among themselves" and showed "they did not have will to carry out reforms in[trade]rules" . Annan said barriers were excluding LDCs from benefits of global trade, and called for a "Global New Deal" to "spread the advantages of freer flow of goods, jobs and capital among all countries...open to investment" . Seth Mydans"U.N. Trade Meeting Brings Rich and Poor No Closer"NYT 20 Feb 00:-UNCTAD "ended with no real narrowing of differences" that split WTO meeting, thus confirming UNSG's pessimism. There were only " general expressions of hope that rich and poor nations might eventually agree on formula that would allow them to share benefits of global trade." To this end, LDCs had again demanded fully opened markets for their products, and objected to standards of environmental and worker protection that simply delayed their development. Algeria claimed Africa is being crushed - indeed "rubbed out" - by new world trade order. The Economist 13 May 00"The WTO: Merry-Go-Round" (75-6):-provides useful update on WTO-related issues since WTO/UNCTAD meetings, andconfirms both Annan's complaints: US and EU still "bickering" , and LDCs still getting raw deal. For another, more optimistic/forward-looking update on Transatlantic bickering:Economist 30 Sep 00"Trade: Boom...".

 

Masood Ahmed & Cheryl Gray Helping Countries Combat Corruption: The Role of the World Bank(Washington: IBRD 97):-produced by World Bank's Poverty Reduction and Economic Management Network(PREM). Bank's World Development Report 1997: The State in a Changing World(op.cit.)also deals with global corruption issues in government context but mainly descriptively, while PREM reportconcentrates on how Bank can help governments address corruption as serious development constraint. Daniel Kaufmann(op.cit.)lists more articles and books on this issue.

 

Philip G.Altbach & Roberta Malee Bassett "The Brain Trade: Prime Numbers" Foreign Policy No.144(Sep/Oct 04):-among very influential "globalizing" events today are the growing millions of Third World post-secondary students attending universities in rich Western countries. Many gain access to key ideas of modern society and/or operate in English, so later lives will be influenced by "worldly" visions. Despite newglobal concerns with terrorism" there is no holding back the flow of students seeking education beyondtheir borders" ;Australia recently estimated the "total number of international students will increase to 8m by 2025." Regarding content," literature and arts take back seat[;] three fields dominate: business/management,engineering, mathematics/computer sciences." About 80% of world's foreign students are from Asiancountries; the following states include universities with 100,000+ enrolled through distance education: China, India, Indonesia, Iran, Pakistan, South Korea, Thailand, Turkey. Leading receiver countries(with the rough total of foreign students 2000/01): Australia(70,000), Britain(223,000), France(135,000), Germany(185,000),US(547,000). Since most foreign students pay for their own study/living expenses, first two depend on their income to help support public universities. "Many migrants maintain strong ties from abroad, someeventually return home, and growing numbers of highly educated contribute to their home societies byproviding expertise and investment. But loss of significant numbers of best and brightest remainsproblem for many poorer societies" . It may then be related to expenses that "increasing number[of potential foreign student payers is]looking for new options in developing world" ;emergence of mega-universities in India and China may soon alter balance of'brain trade'forever.

 

Lawrence K.Altman "Study Finds Drop in H.I.V. Cases in South India"NYT 31 Mar 06:-"Prevalence of new HIV infections has fallen significantly in southern India, region of that country where the disease hasoccurred most often, scientists reported. Many health officials have predicted major increases in HIV in India, which has world's second highest number of infected people, after South Africa. But new infections among young aduts declined by more than a third from 2000 through 2004, according to astatistical study. [Article contains selected statistics from study and varied information about sources.]Authors attributed favorable trend to an increasing use of condoms by men and an insistence by prostitutes that their partners use them. That decline, in turn, reduced transmission of HIV to spouses.Experts cautioned against drawing too firm a conclusion from one study and added that the new findingsdid not mean India's HIV epidemic was over. Still, the study has two key implications, researchers said.One is that strategies that emphasize education about how HIV can be transmitted and the use of condoms offer the best hope for reducing the spread of the virus in India. Second is that routine monitoring of HIV and other sexually transmitted diseases are powerful and cost-effective ways to control AIDS in India. But experts urged constant vigilance for signs of a reversal of the favorable trend...Reductions were more modest in 14 northern states, where prevalence of HIV infections is about one-fifth that in the four southern states".

 

Sudhir Anand and Amartya K.Sen Sustainable Human Development: Concepts and Priorities(New York: UNDP/ODS 96):-tries to provide rationale for bringing together narrowly environmental viewof "sustainable" world and case for eliminating "inequities" in living conditions. Argument for "human development" (pushed by UNDP/World Bank/this bibliography)made well, but its role in population controland easing pressure on the planet's carrying capacity mentioned only weakly and indirectly. Generaleconomic development( "overall opulence" )criticized as "partisan" for failing "to take note of need for impartiality in allocating entitlements" i.e.collective statistics hide unacceptable inequities. Imbalanced - or at least imperfect - defence of key imperatives.

 

Chris Anderson, "The Young(stressing Youth and Age)" The Economist 23 Dec 00(Survey 1-16):-explorescauses/ elements/global impact of major social trend, strong in North America, spreading through advanced/emerging societies and already changing poorer countries(Japan, Germany, China)." About...growing influence of young adults in world, and especially working world...thanks to convergence of forces that play to youth's strength -from technology to...pace of change to...tearing down of traditional...order.[T]hey are...first young who are both in position to change world, and are actually doing so.[Y]oung people increasingly make own environment, thanks to shift in power that gives them opportunity, responsibility and tools once reserved for their elders" .Rapid, relentless pace ofchange(technological/social)favours young, since they learn/relearn faster/easier/can afford to risk more to try new things(including jobs).In organizations, hierarchies of mature giving way to meritocracies in order to compete/ survive, initiate/adjust to change, and as knowledge/skill/even experience needs constant updating/replacement. Youth: welcome change; think flexibly/technologically; exploit(mobile)skills; riskfutures; prefer opportunity to wealth/ security; demand/deserve respect. "Youth and Government" in issue(61-2)reports youth's growing role/impact in decision-making.[ "W]ell-prepared input can be more influential than[votes - point often made about NGOs' power being in knowledge]Young people...are not only leaders of tomorrow; increasingly they are leaders of today" .

 

Kofi A. Annan, "The Quiet Revolution" Global Governance Vol.4/No.2(Apr-Jun 98):-fine updating of Secretary-General worldview and priorities. Globalization is "most rapid reconfiguration of...economic geography ever" so UN must exploit"mutual benefits of change while managing adverse effects...UN's past pattern of incremental adaptations will not suffice." Must do what "it does better than others" ;collaborate more with international bodies/civil society: NGOs /business/academe. UN aim"strategic resource deployment, unity ofpurpose, coherence of effort/agility/flexibility" . These aims all relevant to effective economic development.

 

Kofi A. Annan, "Preventing War and Disaster: A Growing Global Challenge" Annual Report on the Work of the Organization 1999, by the Secretary-General of the United Nations(New York: DPI/ 2058; Sales No: E.99.1.29-Sep 1999):-after a convincing plea for more cost-saving global efforts to foresee, prevent, or reduce human and natural crises, Annan summarizes all major UN activities over year to Sep 99, and selected plans and problems(in 130pp). Chapters address: peace and security; development; humanitarian issues; globalization; legal order; human rights; administration. Overall impression: hard-won progress implementing UN obligations/reforms/savings are frustrated by Members' selfishness/lack of political will/financial irresponsibility. Most references to ECONOMIC TRENDS/ISSUES are in the context ofdevelopment (assistance)(42-63)and the multiple effects of globalization(76-89)on other UN preoccupations.UNGA held a high-level meeting involving the private sector, civil society and the UN System on thesocial/economic impact of globalization and, with ECOSOC, is trying to work more closely with Bretton Woods institutions/the private sector on globalization, development finance and other economic issues.

 

Kofi A. Annan, "UN Committed to Ensuring World Water Security and 'Blue Revolution', Says Secretary-General, in Message to World Water Forum" in UN Press Release SG/SM/7334 21 Mar 00:-urgent global problem is finding huge additional quantities of affordable water to meet increasing needs of population growth/concentration and rising agricultural/industrial demand, and to make up for global pollution andfalling water tables(see Worldwatch Institute: Lester R. Brown, "Water: Emerging Constraint on Growth" (123-5)in State of the World(1999)op.cit.). Hence "world's impending water crisis" was theme of UNSG's text. He reported that "every year, more than 5 million people[over 50% children]die as a result of poor water quality - 10 times the number killed in wars...[W]ithin 25 years two out of every three people on Earth will live in water-stressed conditions. Indeed, the declining state of the world's freshwater resources, in terms of quantity and quality, may well prove to be the dominant issue on the environment and development agenda of the new century" . UN Newservice 21 Mar 00: Klaus Toepfer, UNEP head, at the Forum: "The battle for the conservation of water will be won or lost in the mega-cities of the world" .[Technology can help:]Douglas Jehl, "Tampa Bay Looks to the Sea to Quench Its Thirst" in New York Times12 Mar 00:-US appears to be just reaching the stage when many high-density areas need, or find it economic, to desalinate sea or brackish water. Tampa Bay(2.3m residents)will be the first large urban areato do so, planning the largest(25m gallons/day)desalinization plant outside Saudi Arabia(whose economics are totally different). As of writing, five states(cheaply)desalinate brackish water, while two cities which built sea-water plants decades ago, now use them for backup due to cost. But Tampa cost estimates have fallen from $4-6 per 1,000 gallons to $2.08. With several cities planning desalinization, and many more facing the need, economics/ technology may now produce a global cost breakthrough. [World FDI and ODA may soon include large expenditures on desalination.]

 

Kofi A. Annan, "We the Peoples: The Role of the United Nations in the 21st Century" Millennium Report of S-G presented 03 Apr 00 to UNGA in preparation for the Millennial Summit 6-8 Sep 00:- Executive Summary, Key Proposals, Full Report, Fact Sheet, Press Releases, SG UNGA Statement, SG Press Conference Transcript: all under http://www.un.org/millennium/sg/report/. Annan said report "attempts to present a comprehensive account of the challenges facing humanity as we enter the twenty-first century, combined with a plan of action for dealing with them" . Section titles with(very tight)summaries: I. New Century, New Challenges: New millennium-Summit offers unique occasion to reflect on world's common destiny, since interconnected as never before. UN can help meet challenges ahead and be reshaped now to make a real difference. II. Globalization and Governance: Globalization unequally distributed and lacks shared social objectives. More people(plus crime, drugs, terrorism, pollution, disease, weapons, migrants, refugees)interact across frontiers faster, and feel more threatened/ horrified by distant events/conditions. New technologies enable common understanding/action, so must learn to govern better, together. States need mutual help via common institutions, from non-state actors, and informal policy networks. The unequal/unstable/unsustainable world development model needs agreed remedial measures. III. Freedom From Want: .5b live on less than $1 a day, so must reduce extreme poverty by half before 2015. Priorities: sustained growth; all children complete primary school by 2015 and all youth finddecent work; by 2010 HIV infection rate in young cut by 25% -one result of more LDC-relevant research;improve lives of 100m slum dwellers by 2020; experts/charities to tackle low agricultural productivity in Africa, as governments give higher priority to poverty; maximize LDC access to infonets to speed development; rich states open markets to LDCs, offer more debt relief, and focus increased ODA. IV.Freedom From Fear: internal wars killed 5m in decade; WMD remain threat; security protects people, not territory. Tackle conflict by: prevention, more balanced development, human/minority rights, exposingweapons/money/resource smuggling; protect the vulnerable by enforcing international/human rights law; using UNSC for armed intervention when rights and lives are massively violated; consider peace operations review panel proposals; target "smart" sanctions more; improve control of small arms transfers, and reduce dangers of existing nuclear arms and proliferation. V. Sustaining Our Future: Most planet-sustaining actions are too few, little, and late. Before 2002, must: cope with climate change: reduce emissions 60% by efficient/renewable energy, implementing Kyoto Protocol; meet water crisis: accept 2015 target of 50% reduction in those without safe/affordable water, raise agricultural productivity per unit of water, improve management; defend soil: biotechnology may be best hope for sufficient food production, so debate must be resolved globally; preserve forests, fisheries, biodiversity with joint government/private sector conservation; build new stewardship ethic: public education, integration ofenvironment into economic policy, regulations/ incentives, accurate scientific data. VI. Renewing the UN: Must find consensus solutions among governments, private sector, NGOs, and IOs, with UN as catalyst. Build on core UN strengths(norm-setting, global actions, humanitarian trust)to press rule of law, adapt UNSC, and work with NGOs, private sector and foundations, including through informal policy networks; work with industry to exploit information technology; improve UN management throughstructural/agenda reform, priority-setting, more flexibility, results-based budgeting. VII. For Consideration by the Summit: Act on basis of shared Charter values: Freedom, Equity and Solidarity, Tolerance, Non-Violence, Respect for Nature, Shared Responsibility. Adopt resolutions drawn from Report as evidence.Reviews: Barbara Crossette, "Annan Urges High-Tech Aid for Poor Countries" in New York Times 4 Apr;The Economist 8 Apr: "Kofi Annan's Words to the World: Bouncing to a Fairer World" (51).

 

Kofi A. Annan, "Common Destiny, New Resolve" , Annual Report on the Work of the Organization 2000, by the Secretary-General of the United Nations(New York: DPI/2153;Sales No.E.00.1.22-Sep 99):-UNSG begins by noting report to Millennium Summit, "We the Peoples: The Role of the United Nations in the 21st Century" (op.cit.), includes his assessment of humanity's progress and challenges at turn of millennium,and suggests ways in which international community can work together to" better lives of people still left behind" .Introduction, summarizing 130-page report on major UN activities over year to Sep 00, highlights: (1)Demands on UN humanitarian agencies far exceeded worst-case predictions; (2)Living standards in sub-Saharan Africa still declining; (3)AIDS pandemic spreads with frightening rapidity; needs stronger commitment to action; (4)Three new peace missions were created, straining UNHQ resources. (5)Reviewsanalysed UN failures in Srebrenica and Rwanda; offered recommendations. (6) controversial economicbenefits of globalization must be more inclusive/equitably shared. (7)Must be cooperative management ofglobal economic affairs through more effective governance. (8)Informal global policy networks involving governments, international institutions, civil society and private sector have great potential. Chapters: Peace/Security; Humanitarian Commitments; Development; International Legal Order/Human Rights; UNManagement.

 

Kofi A. Annan, Report of the [UN] Secretary-General to the Preparatory Committee for the High-level International Intergovernmental Event on Financing for Development:-this collaborative effort(officially UNGA Document A/AC.257/12)runs to 64 pages, makes 87 recommendations, and was commissioned bythe Millennium Summit to help focus discussion at a Mar 2002 global meeting on development financing(still an" event" since it awaits an official title). Involved directly in the report's preparation were: many parts of the UN proper(particularly DESA, UNCTAD and UNDP); UN Agencies; the Bank, Fund and WTO; theregional development banks; OECD; the Financial Stability Forum; many governments/otherstakeholders(arranged by the UN regional commissions); the business community; and civil society organizations. Hence it reflects extremely varied, expert and authoritative views - significant, since some proposals are quite radical, even if presented solely on the responsibility of the UN Secretariat. The report consists of an Introduction and six chapters, the latter perhaps being the agenda items of the "event" : I. Mobilizing domestic financial resources for development; II. Mobilizing international resources for development: foreign direct investment and other private flows; III. Trade; IV. Increasing international financial cooperation for development through, inter alia, official development assistance; V. Debt; VI. Addressing systemic issues: enhancing coherence and consistency of the international monetary, financial and trading systems in support of development. For highlights, see UN Press Release DEV/2275at: http://www.un.org/News/Press /docs/2001/ dev2275.htm. The complete text(which explains all acronyms!)can also be downloaded from the Web: http://www.un.org/esa/ffd/aac257-12E.htm orhttp://www.un.org/esa/ffd/aac257-12E.pdf. For three articles about the Report(highlighting the dirty bits)see: Christopher S. Wren, "U.N. Report Proposes Steps to Fight Global Poverty" in New York Times 30 Jan 01;Reuters, "Annan Offers Poor Nations 87 Ways to Lure Funds" NYT 30 Jan; Wren, "The U.N. Offers 87 Remedies to Help Poor Nations Develop" NYT 04 Feb. The UNSG's opening speech at the subsequentPrepcom meeting is reported in: Reuters "Annan: Poor Nations Must Set Development Priorities" NYT 12 Feb. It describes his theme as: LDCs "should play a greater role in setting policy and priorities in thefinancing of global development" and cease to be "decided in clubs where only rich countries have real influence" . This issue is of course a perennial one at the UN, where the contribution-weighted voting in Bretton Woods bodies is seen as "grossly unfair" and "neo-colonialist" by aid recipients, whose very survival may be at stake, but "absolutely essential" by the investment-oriented donors, who feel" shareholders" have natural rights to determine where and how their own money is spent. Annan aims to increase the relative role of" one-country-one-vote" UN fora(UNGA; ECOSOC)in making broad global development policies and priorities. He also is very concerned to make foreign investment in LDCs larger and less volatile as ODA continues its decline. Advising him is a high-level panel(Zedillo, Rubin, Delors...).

 

Kofi A. Annan "Courage To Fulfil Our Responsibilities" The Economist 04 Dec 04(23-5):-UNSG offers global action-urging essay built on his immediate reaction to report of the High-Level Panel on Threats, Challenges and Change. Following his urgent introduction is a brief summary of Annan's alreadyconcentrated and rearranged version of the panel report's many concerns/proposals. Its value is less to summarize the panel's views than to identify subjects they and/or he discuss. "We face a world of extraordinary challenges - and of extraordinary interconnectedness. We are all vulnerable to new security threats, and to old threats that are evolving in complex and unpredictable ways. Either we allow this array of threats, and our responses to them, to divide us, or we come together to take effective action to meet all of them on basis of a shared commitment to collective security. I asked the 16 members of [panel]- eminent people representing many nations and points of view - to analyse the threats to peaceand security our world faces; to evaluate how well our existing policies and institutions are meeting them; and to recommend changes to those policies and institutions, so as to ensure an effective collective response to those threats. Their report...makes 101 far-sighted but realistic recommendations. If acted on, they would address the security concerns of all states, ensure that UN works better, strengtheninternational rule of law and make all people safer" . First: threats. Event/process leading to deaths on large scale/lessening life chances or undermines states, should be viewed as threat to innatl peace/security.Clusters: economic/social, including poverty/disease; inter-state conflict/rivalry; internal violence: civil war/state collapse/genocide; nuclear/radiological/chemical/ biological weapons; terrorism; innatl crime.Threats interconnected to unprecedented degree; no state alone can defeat. Highly enriched uranium at size of 6 milk cartons could level medium-sized city as nuclear device. Such attack in US/Europe isstaggering cost for world economy. Security of developed states only as strong as ability of poor statesto respond to/contain new deadly infectious disease. Incubation period for most is longer than most air flights, so any one of 700m who travel airlines in year could unwittingly carry lethal virus to unsuspecting state. Today, virus similar to 1918 influenza could kill tens of millions in fraction of a year. In today's worldany threat to one is truly threat to all; applies to all categories of threats. Since real limits on self-protection,all states need collective-security system, committing all to act cooperatively against dangers. Givengravity/interconnectedness of threats, world needs more active prevention. Prevention can be highly effective(Nuclear Non-Proliferation Treaty);WHO helped halt SARS. Best prevention agents: capable states, acting/cooperating with others. Best preventive strategy: is development support. Millennium Development Goals to halve poverty/hunger by 2015 states' best security investment. It will save lives/reduce violentconflict and radicalism/bolster state ability against threats before real harm. HIV/AIDS shows danger ofinadequate prevention. Slow/ineffective global response allowed 20m killed/20 years; spread continues andworst to come. Ultimate cost will include shattered societies. Still not taking all needed steps to bring under control. Also need public-health facilities built in poor world. Not only poorer states benefit diseasetreatment/local prevention; whole world has better defence against bio-terrorism/large-scale naturalepidemics. UNSC should work with WHO to strengthen biological security via prompt, effective responses.Equal: greater environmental collective action, including beyond Kyoto protocol to better resources management in states at risk. Prevention also vital to protect against terrorism. New isrange/scale/intensity of threat(al-Qaeda can kill around world/has struck in 10+ UN members).Could acquire instruments of massive destruction: unprecedented danger. UN must better use assets in fight against terrorists: articulate a strategy respectful of laws/human rights. Definition of terrorism offered: any action intended to kill/seriously harm civilians/non-combatants, with purpose of intimidatingpopulation/compelling action by government/innatl organization. States should use to build consensus andstrengthen UN response to deadly scourge. Also urgent recommendations on non-proliferation/disarmament/curbing supply of materials to reduce risk of nuclear/chemical/biological attacks by states/terrorist groups. States encouraged to end development of domestic uranium enrichmentand urged to voluntary time-limited moratorium on reprocessing plant construction. IAEA ability to monitorcompliance with Non-Proliferation Treaty strengthened by standards in protocol for safeguards inspections. Since Cold War, UN far more engaged in preventing/ending civil wars; ended more through negotiationsince 90 than in previous 200 years; developed expertise/learned hard lessons. As demand for UN blue helmets grows, need to boost peacekeeper supply/avoid 90s worst failures. Rich states should hastenefforts transforming existing forces for UN peace operations. UN must invest in mediation/support peace agreement implementation. Demobilize combatants/reintegrate into civil life; otherwise civil wars not successfully ended/other goals(democracy/justice/ development)remain unmet. Often innatl community lost focus if crisis high point past/peacekeepers left. Propose UNSC create Peacekeeping Commission; to givestrategic focus for work in states under stress/emerging from conflict. If prevention/peaceful resolution fails, UN must be able to rely on force. Whatever reason: all states/UNSC should bear in mind basic guidelines/questions: (1)Seriousness of threat: does it justify force?(2)Proper purpose: does proposed force halt/avert threat?(3)Last resort: all non-military options explored/exhausted? (4) Proportional means: force proposed minimum necessary?(5)Balance of consequences: clear action not worse than inaction? No need to amend Art.51 of UN Charter: any state's right of self-defence against armed attack/pre-emptive action against imminent threat. However if states fear threats, neither imminent nor proximate, but which could culminate in horrific violence if left to fester, UNSC already powered to act/must be prepared to take action earlier than past, when asked/reliable evidence. Protection of civilians inside states long fraught with controversy. Yet recognized more widely that question better framed, not as intervene-right but protection-responsibility - borne first/foremost by states. Panel agreed principle of non-intervention in internal affairs cannot protect committing genocide/large-scale ethnic cleansing/othercomparable atrocities. I hope UN members agree/UNSC will act. UN(now nearly 60)born in very different time/world, so has under-appreciated record of adapting to new dangers, e.g. peacekeeping in world's civil wars/response to attack of Sep 01. Clearly needs far-reaching reform to prevent/respond to all current threats. Some propose via-UN collective response too difficult/not necessary. But all anti-threat actions impact beyond immediate context/all states benefit from shared global framework. Not mean UN needs to do everything. It must learn of share burdens/welcome help from others/work with them. Already does so; report recommends strengthened UN partnerships with regional organs/individual states. Great attention: UNSC reform. Objectives: make UNSC more effective/authoritative. Permanent membership devised(1945)to ensure active engagement of big powers to maintain peace/security. New permanent members matter of controversy/debate. Two suggestions, both expanding membership to 24; aim at: add those who contribute most to UN financially/militarily/diplomatically; ensure UNSC represents UN as whole;not expand veto, which would render decisions more difficult. Proposals offer chance breakthrough in year ahead. If acted on, UNSC more representative/better equipped for decisive action. Need strengthened UN secretariat that can support Peacebuilding Commission; implement UNSC/ committee decisions better on peacekeeping/mediating civil wars. Report envisages more concerted-action secretariat, with UNSGmore responsible for management/accountability. Equally important: ECOSOC overhaul to strengthen role in social development/improving knowledge on economic-social dimensions of security threats. Also, recommends Human Rights Commission better defender of rights of all. After 60 years, once again findworld mired in disillusionment and all too imperfect. Easy to stand at sidelines and criticise/talk endlessly about UN reform, but world no longer has that luxury. Time to adapt collective security system so it works efficiently/effectively/ equitably. Next year UN states reviewing progress on Millennium Declaration; world leaders' summit in Sep. Appropriate moment to act on some of most important recommendations in report.I will indicate which call for decisions at that level. Fervently hope world leaders will rise to challenge. Have all lived through period of deep division and sombre reflection. Must make 05 year of bold decision; all share responsibility for each other's security. Let's summon courage to fulfil responsibility." Complete text of "A More Secure World: Our Shared Responsibility" Report of the High-level Panel on Threats, Challenges and Change, plus initial comments by requester/addressee, UNSG Kofi Annan, can be read and even copied(99pp Acrobat Reader)from Secretary General's part of UN file (www.un.org). Executive Summary(8pp Acrobat)also available at same address. Capturing the 21st Century Security: Prospects for Collective Responses(Oct 04)collects reports from six Stanley Foundation conferences in 04 that dealt with UNSG panel. Report at http://reports.stanleyfoundation.org. Council on Foreign Relations "Q&A: Reforming the United Nations" 01 Dec 04:-originally available either by NYT>CFR>International>[title] or via CFR directly. This is expert interview with Lee Feinstein who" has spearheaded Council work on the United Nations" and studied the important UN report and its UNGA prospects.

 

"Anonymous"Imperial Hubris: Why the West Is Losing the War on Terror(DullesVA: Brassey's 04):-author is a senior US intelligence official with nearly 20 years experience in national security issues related to Afghanistan and South Asia. This strong critique of arrogant US/allies' policies towards Osama bin Laden/al Qaeda, and military action against Afghanistan/Iraq, proved quickly influential in many respects, and advocates less US loyalty to Israel/corrupt Muslim regimes or presence in Mideast. Motivation of Muslim terrorists is identified not as hatred/fear of Western national systems but of their broadly negative actions against Islamic peoples. All complex chapter titles: (1)Some Thoughts on the Power of Focused, Principled Hatred. (2) An Unprepared and Ignorant Lunge to Defeat - The US in Afghanistan. (3) Not Down, Not Out: Al Qaeda's Resiliency, Expansion, and Momentum. (4) The World's View of bin Laden: A Muslim Leader and Hero Coming into Focus? (5) Bin Laden Views the World: Some Old, Some New, and a Twist. (6) Blinding Hubris Abounding: Inflicting Defeat on Ourselves - Non-War, Leaks, and Missionary Democracy. (7) When the Enemy Sets the Stage: How US's Stubborn Obtuseness Aids Its Foes. (8) The Way Ahead: A Few Suggestions for Debate. Epilogue: No Basis for Optimism.

 

Reza Aslan No god but God: The Origins, Evolution, and Future of Islam(New York: Random House 05):-The widely-read author defines his aim in the Prologue: "This book is not just critical reexamination of the origins and evolution of Islam, nor is it merely an account of the current struggle among Muslims to define the future of this magnificent yet misunderstood faith. This book is, above all else, an argument for reform"(xx). William Grimes, in his New York Times 04 May 05 review, quotes the book:"What is taking place now in the Muslim world is an internal conflict between Muslims, not an external battle between Islam and the West"(248). Grimes himself argues: "[Islam's] history, grippingly narrated and thoughtfully examined, takes up nearly all of 'No god but God'. Aslan... has written a literate, accessible introduction to Islam.,. carefully placing its message/rituals in historical context. Complete with glossary/annotated bibliography, it could easily serve as a college textbook". The 310-page book includes 21st century arguments: "[T]he attacks of 11 Sep 01 were not a defensive strike against a specific act of aggression against Islam. They were never sanctioned by a qualified mujtahid. They made no differentiation between combatant/noncombatant.,. indiscriminately killed women, children, and approximately 200 Muslims. In other words, they fell far short of the regulations imposed by Muhammad for a legitimate jihadi response, which is why, despite common perception in the West, they were so roundly condemned by the vast majority of the world's Muslims"(87). "Tragic events of 11 Sep... initiated a vibrant discourse among Muslims about meaning/message of Islam in 21st century... It may be too early to know who will write the next chapter of Islam's story, but it is not too early to recognize who will ultimately win the war between reform/counterreform... But the cleansing inevitable, and tide of reform cannot be stopped. Islamic Reformation is already here"(266).

 

Associated Press," Researchers Produce a Healthier Rice" in New York Times 14 Jan 00: -item reports that " scientists have genetically engineered a type of rice that could end vitamin A deficiency in the developing world" . About 14m children worldwide are deficient; so besides reducing widespread blindness, raising vitamin A levels could prevent 1-2m deaths a year. Swiss researchers successfully spliced three genes into rice to make it rich in beta carotene, a source of vitamin A. While tests are ensuring the original nutritional value is maintained, the famous International Rice Research Institute(IRRI) is working tobreed the trait into popular rice varieties. New developments reported in David Barboza, "AstraZeneca to Sell a Genetically Engineered Strain of Rice" NYT 16 May(Note to Anthony DePalma"Super Seeds Sweeping Major Markets...").

 

Associated Press, "China Refines Birth-Control Policy" in New York Times 07 May 00:-this report on a new government policy says China" hopes to limit its growing population to 1.4b people in 2010 by refining" its current policy. This is an unlikely feat, given that the present official figure of 1.25b may understate the real total by tens of millions, and experts believe the population will actually peak about 1.6b around 2050. Beijing claims:" A more perfect control system will be built and a better environment...created...[S]afe, effective and proper contraceptive methods should be made available to women...Nevertheless, the population will increase by 10m a year in the next few decades" . Officials already worry this will outstripfinite supplies of water, farmland and other resources, requiring major grain imports, but an unintended population-control factor has developed: boys being preferred, China may already have 100m more males than females.

 

Associated Press "Nations Vow to Fight Urban Blight" New York Times 09 Jun 01:-results of five-year-review of progress in meeting UN Habitat Agenda, agreed upon at 96 global summit on urban issues in Istanbul. New York review conference produced UN Declaration on Cities and Other Human Settlements in the New Millennium which reaffirmed commitment to Agenda principles regarding "adequate housing for all and sustainable development of world's cities" -no easy task since many countries" openly admit they have made little progress since Istanbul meeting. More than 1b...still lack adequate housing[out of 3b(50%)global urban population, and since f]ast-growing slums are common on outskirts of Asian, Africa and Latin American cities" .Textual crises overcome involved Palestinian proposal to criticize Israel, and US refusal to reaffirm adequate housing as "human right" .

 

Associated Press"Annan Paints Grim Picture to Assembly"New York Times 19 Sep 06:- "Addressing world leaders for last time as UNSG, Kofi Annan painted a grim picture of an unjust world economy, global disorder, widespread contempt for human rights, and appealed for nations/peoples to truly unite. As theannual UN General Assembly [UNGA] ministerial meeting got under way, 192 UN member states facedambitious agenda including trying to promote Mideast peace, curb Iran's nuclear ambitions, get UN peacekeepers into conflict-wracked Darfur, promote democracy... Annan, whose second five-year term ends 31 Dec 06, said the past decade has seen progress in development, security, rule of law - the threegreat challenges he said humanity faced in first address to UNGA in 97. But UNSG said too many still exposed to brutal conflict, and fear of terrorism has increased clash of civilizations/religions. Terrorismbeing used as pretext to limit or abolish human rights, and globalization risks driving richer and poorer apart, he said. 'Events of last 10 years have not resolved, but sharpened, three great challenges - unjust world economy, world disorder, and widespread contempt for human rights and rule of law', Annan said.'As result, we face world whose divisions threaten very notion of an international community, upon which this institution stands. I remain convinced that only answer to this divided world must be a truly United Nations' , he said. In annual report, UNSG touched on some of most difficult issues confronting leaders... [Arab-Israeli conflict; Iraq; Afghanistan; Sudan/Darfur]. 'Together we have pushed some big rocks to top of the mountain, even if others have slipped from our grasp and rolled back. But this mountain... is best place on earth to be',UNSG said.'I yield my place to others with an obstinate feeling of hope for our common future', Annan said. [UNGA] loud applause/rose in sustained standing ovation".

 

Jacques Attali "The Crash of Western Civilization: The Limits of the Market and Democracy" Foreign PolicyNo.107 (Summer 97):-contends that democracy and market economy mutually incompatible. Former promotes the individual, is based on equality, relies on citizens' responsibilities/coalitions, needs sedentary voters, and supports majority decisions. Markets view people only as commodities, foster inequality, exploit selfishness, and prefer nomads and aggregated self-interest. Civilization will collapse under a market dictatorship!

 

Carter F.Bales & Richard D.Duke "Containing Climate Change: An Opportunity for U.S. Leadership"(78-89) Foreign Affairs Vol.87/No.5(Sep/Oct 08):-official summary:"Greenhouse gas emissions are harming the environment and the global economy. After cleaning up its own act, US must enlist developing countries in a new climate-control regime that promises to dramatically reduce emissions and encourage energy efficiency and the development of clean-energy technology". Emphasized extracts:"A cap-and-invest strategy would allow US to develop a clean economy at little or no net cost". "Time has come for US to lead the fight against global warming at home and abroad". Bales: Managing Partner Emeritus of Wicks Group of Companies. Duke: Director of Natural Resources Defense Council's Center for Market Innovation.

 

Benjamin R.Barber Jihad vs. McWorld: How the Planet is Both Falling Apart and Coming Together and What This Means for Democracy(New York: Times Books 95):-unusual and debatable perception of some broad global trends that has generated new interest - though not necessarily credibility for its conclusion - since its publication. Argues world experiencing basic conflict between homogenizing power of post-industrial capitalism/ "fundamentalist" ethnic-religious reaction. Believes both forces undermine state(presumably in terms of traditional sovereignty)and hence democracy.[Why and how is democracy so dependent upon sanctity of Westphalian nation-state?]Sources of new interest derive, of course, from growth of anti-globalization movement, however disunited it may be in both fears and formulas, and "Clash of Civilizations" thesis put forward by Samuel P. Huntington(op.cit.)and apparently illustrated -all too violently-by Osama bin Laden.

 

Scott Barrett Why Cooperate? The Incentive to Supply Global Public Goods (New York: Oxford Univ Press 07):-surprisingly well written -considering the complexity of issues- in: (1) describing the existing global challenges (e.g. climate change, nuclear proliferation, worldwide pandemics) and those that threaten the entire planet (e.g. terrorism, physical/chemical/biological instabilities, asteroids); and (2) reporting on how such problems have been successfully or badly handled in the past, the rationales involved, and the various cooperations that would/might work best in future. Barrett's "threat" approach differs from my item "EARTH MUST COOPERATE...", mainly in stressing "Global Public Goods" actions of the recent past (e.g.often successful United Nations; wonderful "Montreal Protocol" ozone treaty), whereas my gloomy and concentrated "page" is designed almost solely to identify: (1) the exploding scale/variety of global threats; (2) the human tendencies that have created/will create them; and (3) why we must change a number of very old human views/feelings. Both press broader global diplomacy as essential tool. Most chapters focus on distinct types of issue/solution. [Even a study of brief bit(s) of 275p would be valuable.] Titles: Incentives to Supply Global Public Goods [GPG]; (1) Single Best Efforts: GPG that Can Be Supplied Unilaterally or Minilaterally; (2) Weakest Links: GPG that Depend on States that Contribute the Least; (3) Aggregate Efforts: GPG that Depend on Combined Efforts of All States; (4) Financing and Burden Sharing: Paying for GPG; (5) Mutual Restraint: Agreeing What States Ought Not to Do; (6) Coordination and Global Standards: Agreeing What States Ought to Do; (7) Development: Do GPG Help Poor States?; Conclusion: Institutions for Supply of GPG.

 

Robert J.Barro Determinants of Economic Growth: A Cross-Country Empirical Study(Cambridge: MIT Press, 1997):-these lectures draw on statistics, newly available for most countries over several decades, in order to study what causes growth. Among the findings: the main factors conducive to higher growth rates are abetter rule of law, higher initial education and life expectancy, lower costs for official welfare, lower fertility, and better terms of trade. More democracy up to a certain level also favours economic growth, but beyond that other priorities intervene. It was decided that inflation over 20% deters growth.

 

Jean-Francois Bayart, Stephen Ellis and Beatrice Hibou The Criminalization of the State in Africa(Oxford:James Currey 99):-inevitably researched unscientifically, seeks to explain multiple political-economic crises of Africa(i.e.south of Sahara)as whole. "African specialists" after lamentingdemography/stagnation-acerbated poverty/hyper-urbanization, highlight certain developments: facade of democratic transition/structural adjustment/other reforms; armed conflicts' continuation or spread; above all, elites' massive involvement in corrupt/criminal activities(drugs/other smuggling; political-financial/other fraud; coercion/violence).While driven by change, these African reactions show historicalinfluence of approving accumulation of power and wealth through devious personal initiative. Thusnationalism, government and law are simply used; their criminalization culturally-rooted.

 

Barbara Beck"The Economics of Ageing: The Luxury of Longer Life" The Economist 27 Jan 96 (Survey 1-16):-longer average lifespans worldwide are raising global, and not simply national, problems in fields like economics and finance, travel and migration, medicine and health care, social and cultural change, and even moral standards.

 

Elizabeth Becker "Number of Hungry Rising, U.N. Says" New York Times 08 Dec 04:-UN agency Food and Agriculture Organization(FAO)makes ominous report: for first time in almost decade, estimated number in the world going hungry has increased. Despite overall increase in global wealth, FAO states, after slow/steady decrease, chronically hungry rose to nearly 852m(18m increase since 00); 5m children aredying of hunger annually. FAO senior claimed world now producing more than enough food, so problemis access to jobs/resources/land/money to buy food. UN's International Labor Organization(ILO)reported that record 1.4b(half world's workers) earn less than $2 daily. Oxfam reported that global aid budgets now total half of level in 60. Yet UN's Millennium Development Goals, pledged by all the world's governments, set targets to halve extreme poverty/hunger by 15." At least 80% of world's chronically hungry live in rural areas and over half...subsistence farmers. Competition from world's wealthiest farmers, heavily subsidized by rich governments,...blamed in part for the inequity. Trade ministers have promised to continueworking to reduce agricultural subsidies/supports at global trade talks next year [WTO].In measuring hunger [FAO]considers calorie intake/amount of food available/ inequities in access to food supplies. Thirtycountries [Asia/ Africa/Latin America]cut percentage of hungry people at least 25% over last decade byreducing conflict/focusing ...programs on rural areas/ small farmers.[This fundamentally critical, since]children under three most vulnerable to disease/ death. Without proper nutrition, difficult for these children to ever recover/lead productive lives."

 

Zanny Minton Beddoes, "Global Finance: Time for a Redesign?" The Economist 30 Jan 99(1-18):-excellentSURVEY: (1)identifies perceived and objective problems with generally uncontrolled, if IMF- "cushioned" ,world financial system;(2)describes often radical, mutually incompatible, and/or unfeasible reform plans;(3)offers some more modest but workable proposals. Dangers include certainty of crises if systems are not changed; IMF's "moral-hazard" role not reduced. Reform ideas range from IMF-abolition, through capital controls, to creation of global regulator, central bank, or world currency. Incompatibleobjectives remain: maintaining national sovereignty/ regulating financial markets/benefiting from global capital markets. Proposals:(1)rich states can improve norms of own financial markets;(2)can encourage responsible creditor behaviour;(3)institutions must innovate.

 

Zanny Minton Beddoes, "From EMU to AMU? The Case for Regional Currencies" (8-13)in Foreign AffairsVol.78/No.4 (Jul/Aug 99):-Washington economics writer for The Economist predicts that by 2030 the world will have two major currency zones, result of regional currency unions. Whole of Europe will use euro, whilewhole Western Hemisphere and possibly parts of Asia will use the dollar. Reason is that: "Regional currencies will prove the best route to reconciling the economic imperatives of increasing international capital mobility with the political realities of the nation-state" (8). More specifically, many emerging economies will have to curb capital flows, so the author argues by examining other options(floating exchange rates, fixed rates, currency boards)that most efficient way is currency union since it makes most credible commitment to stability, acting as "bulwark against protectionism" (13).

 

Zanny Minton Beddoes, "The International Financial System: Think Again" (16-27)Foreign Policy No.116(Fall 1999):-the Economist's Washington economics correspondent argues against, qualifies, or supports numerous widely-held views about a need for new global financial architecture: a global market for capital does not yet exist; most just moves about. Allowing free capital movement in and out of a countrymay stimulate economic growth, if action is not premature. Recent emerging-market crashes are worse, but not more frequent, than before. Their "contagion" not always irrational. Most crises are caused by weak banking systems, helped by lack of "due diligence" by foreign banks. Most ideas for new "global financial architecture" are ill-advised and/or politically unfeasible. Reforms should not concentrate on capital flows control; at most dissuade short-term flows. A global central bank is unrealistic and imperfect. IMF merits some criticism and "moral hazard" concerns, but bailouts are not to blame for international economic crises, and few private investors escape lightly. Major lessons have been learned.

 

C.Fred Bergsten"Foreign Economic Policy for the Next President"Foreign Affairs Vol.83/No.2 (Mar/Apr 04):-identified as first in series of commissioned essays on foreign policy concerns for next president. After recommending US initiatives to improve a number of trade and related programs, Bergsten concludes:" [F]oreign economic policy could rescue overall US foreign policy. US's biggestproblem in the international arena is its tendency to act unilaterally on a range of issues. Such...is demonstrably ineffective and thus thankfully rare in the economic domain. The international economicinitiatives proposed in this essay would convey a new image of US foreign policy while furthering US national interests. They should rank high on the agenda of the next US president.

 

C.Fred Bergsten"The World Economy: The Risks Ahead for the World Economy" The Economist 11 Sep 04(63-5):-director of Institute for International Economics in Washington DC, author was invited to explain why policymakers - particularly in US and China - must take action now to avert real danger of global economic problems. Essay's introduction makes case clear: "Five major risks threaten world economy. Three centre on US: renewed sharp increases in current-account deficit leading to crash of dollar; budget profilethat is out of control; and outbreak of trade protectionism. Fourth relates to China, which faces possible hard landing from its recent overheating. Fifth is that oil prices could rise to $60-70 per barrel even without major political or terrorist disruption, and much higher with one...If two or three...were to occur incombination then they would radically reverse global outlook." Related action must be taken by number of governments, both to maintain global growth and "avoid deeper oil stocks and new traderestrictions." While there are considerable highlights about US and Chinese financial and trade policies, both subjects are now clearly more and more of world impact and importance. [Hence internationalcooperation to ensure economic growth is increasingly of global necessity; "nationals" at WTO/IBRD/IMF..meetings must think globally.] Economist 13 Nov 04 "China: The Emperor Is Not Always Obeyed" (46):-article reports little on China's high growth rate, and much on new limits to Beijing's role/ability to determine the nature/rate of economic growth. "[M]any...new contradictions from central planning andstate ownership to something nearer market economics. Upstart private firms...now play important role in bringing new vitality to China's industries. But some essential things - such as bank credit and political support - still flow much more readily to state-run enterprises.[C]entral government has sought to limit economic overheating with mix of macroeconomic and administrative measures. Last month's interest-rate increase, China's first in nine years, was preceded by series of orders curbing bank lending and restrictingfixed-asset investments, especially in...industries...At local/provincial levels, however, officials have understandably remained keen to keep up growth rates/tax revenues/employment figures.[S]een imposition of any measures designed to slow economic activity rather as they might look at a toxic-waste dump: vital for greater good ...but better in someone else's backyard.[Beijing]has gone from issuing orders to merely'trying to convince local governments that centre's policies are in their own best interests' .That task...has been complicated by rising influence of private firms...which can now muster wherewithal toinvest in capital-intensive projects.[C]entral government faces continuing struggle to control flow of money and investment. It remains fairly effective in regulating bank lending...'but there are huge sums of private money sloshing around that Beijing cannot control'.[H]iring/firing of officials throughout bureaucracy[is now]best defence against rebellious local governments[but]mice out there far outnumber indignant cats of Beijing."

 

C.Fred Bergsten"A Partnership of Equals: How Washington Should Respond to China's Economic Challenge"(57-69) Foreign Affairs Vol.87/No.4(Jul/Aug 08):-official summary:"Despite its growing economic clout, China continues to act like a small country with little impact on the global system at large and therefore little responsibility for it. Behavior threatens to undermine the existing international economic architecture. To avoid a major train wreck, Wshdc should seek todevelop true partnership with Beijing so as to provide joint leadership of global economic system"-e.g. trade/finance/energy/climate. Bergsten:Director, Peterson Institute for International Economics. Essay adapted from his forthcoming, co-authored book, China's Rise: Challenges and Opportunities (Peterson Institute and Center for Strategic and International Studies, 08). See very current: Elizabeth C.Economy & Adam Segal "China's Olympic Nightmare: What the Games Mean for Beijing's Future"(47-56):-off.sum:"The 2008 Olympics were meant to be China's global coming-out party. But on the eve of Games, Beijing finds itself