Category Archives: trade

A Resilience Case for International Trade

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July 3, 2022Some new problems have afflicted the economy in the last year.  Two examples come from the US:  blockages in supply chain logistics and a critical shortage in infant milk formula. One problem applies to the EU even more than to the US: energy scarcity due to sanctions against Russian fossil fuel exports.  And one applies almost everywhere: inflation.

Some have associated these four problems with what is said to be excessive dependence on international trade, that is, with globalization.  Consequently, deglobalization, fragmentation, reshoring, friend-shoring, decoupling, and resilience have become popular buzzwords.  The feeling is that individual countries would not have been so exposed to shocks if they had been more self-sufficient. read more

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Energy Policies Can Be Both Geopolitical & Green

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April 29, 2022 — Russia’s invasion of Ukraine has amplified the importance of national security objectives when Western nations formulate energy policy.  At the same time, they should not take their eye off the ball of reducing environmental damage and, in particular, slowing down greenhouse gas emissions.  Both goals, geopolitical and environmental, are urgent.  The national security and environmental objective should be evaluated together, rather than via separate “stove pipes.”

Some talk as if the two goals are necessarily in conflict — because, for example, fighting back against Moscow by boosting domestic US oil production would contribute to air pollution and global climate change.  But there are plenty of steps that would benefit the environment and simultaneously further the geopolitical objective.  The most obvious steps, especially for the EU, are sanctions that cut demand for imports of fossil fuels from Russia. read more

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The G20 agenda, as the pandemic continues

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August 28, 2021 — Italy hosts the G20 this year.  The 2021 Summit of the Heads of Government will take place in Rome in October. Officials of member countries, including the finance ministers and central bank governors, are preparing.

The G20 meeting will come at a time of great uncertainty as concerns the health and economic effects of the pandemic, midway through its 2nd year.  Although the mechanisms of international cooperation have been badly bruised by events of recent years, they are more important than ever, in light of the interconnectedness across nations that the pandemic so vividly demonstrates. read more

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