India cancels small farmers' debt
BBC News, February 29, 2008

In what has been widely received as a populist budget in view of the upcoming elections in 2009, the Indian Government has announced the cancellation of small farmers' debts. The giant schmene, which is estimated to cost 600bn Rs, offers to cancel farm loans to all farmers with less than two hectares of land. The move forms the centrepiece of the latest budget, along with a 20% increase in education spending and 15% in health funding. <<More>>

Secretary-General and Indian Prime Minister discuss UNCTAD XII
UNCTAD, February 29, 2008

UNCTAD Secretary-General Supachai Panitchpakdi and Indian Prime Minister Manmohan Singh have discussed UNCTAD's work and mission in view of the upcoming UNCTAD XII Conference. Dr. Singh said he believed that UNCTAD needed to continue to be comprehensive in addressing trade and development issues as well as new and emerging realities. The importance of commodity matters in the context of food and energy security, and the role of dynamic developing countries in South-South trade and economic cooperation were also stressed. The prime minister conveyed his country's strong support for an enhanced role for UNCTAD and emphasized India's commitment to the success of UNCTAD XII. <<More>>

'Balance of Payments'
National Journal's Congress Daily, February 28, 2008

Only a comprehensive social safety net--universal healthcare, universal retraining and universal unemployment insurance--can cope with Americans' rising economic insecurity and stem the anti-trade sentiment among the American electorate. <<More>>

Food and the spectre of Malthus
The Financial Times, February 26, 2008

This rise in prices is a consequence of both demand and supply trends. On the demand side, the key factor has been the strong consumption growth in emerging markets, which in turn has been powered by those countries’ impressive income gains. <<More>>

Lamy's 2008 Aid-For-Trade Roadmap Gets Green Light
WTO News, February 25, 2008

The Aid-for-Trade roadmap proposed by the World Trade Organisation's Director-General Pascal Lamy has been approved by the Committee on Trade and Development. Lamy stated that the 2008 reviews would be more focused, technical and results-oriented. Aiming at the empowerment of developing countries, the Aid for Trade initiative has shown encouraging signs that countries are motivated to take a lead. Lamy called for more cooperation with the OECD and the World Bank in developing performance indicators to help assess trade capacity in developing countries. <<More>>

Manufacture of patented drugs for export under study
The Hindu, February 24, 2008

The Government of India is to consider whether or not it should allow its drugs companies to manufacture patented medicines for export to poor countries at a hearing scheduled in the Delhi Patent Office late next week. If the Government agrees, it will be the second time an export licence will be granted for public health reasons since the WTO Members agreed on the trade provision in August 2003. <<More>>

TV Boxes Set Off a Trade War
National Journal, February 23, 2008

The U.S. and the EU are haggling over the information technology agreement, which some trade experts hold up as a model for future sector-specific free trade deals. Its all about how to treat evolving technologies. The outcome of the dispute will tell us a lot about whether trade agreements are static or dynamic accords. Attached is a piece in this week's National Journal laying out what is at stake. <<More>>

The Advantages of International Trade for Africa
Business Daily,  February 21, 2008

In an appeal to face the challenges crucial to the multilateral trade system, the Director-General of the World Trade Organisation, Pascal Lamy, pointed out the overall benefits from trade for the vast majority of people. However, the economic growth resulting from the expansion of world trade has not been equitably distributed inside societies and increased economic and social inequalities. Therefore, there must be a continuum in the articulation of trade and domestic policies, both for developed and developing countries. <<More>>

Rich nations' aid practice fails to match promise
The Financial Times, February 18, 2008

Given the totemic status attached to the United Nations' target for rich countries to donate 0.7 per cent of their national income in overseas aid, governments might feel they are being told: never mind the quality, feel the width. But complaints from poor countries are frequently about the predictability and efficiency of aid, as much as its quantity. <<More>>

India ahead of China in economic transformation
The Economic Times, February 18, 2008

India has been ranked 25th in terms of economic transformation, way ahead of the world's fastest growing economy China. A study conducted by the German Bertelsmann Foundation points out that India has rapidly developed to become a global economic power. However, the report also stresses the importance to tackle the country's greatest problem: the continuously pronounced inequalities in the society, particularly in terms of education, health, social security and earnings. A greater social equilibrium has to be created in order to sustain the high growth rates. <<More>>

World Bank urges benefit assessment of bio-fuel
The Financial Express, February 18, 2008

In view of the competition between food and fuel crops for land and water, the World Bank (WB) has asked national governments to carefully assess economic, environmental, and social benefits and the potential to enhance energy security. In its World Development Report 2008, the WB states that the challenge for developing country governments was to avoid supporting bio-fuels through distortionary incentives that might displace alternative activities with higher returns. <<More>>

Bangladeshi's aid for US poor
The Financial Times, February 16, 2008

On the second floor of a run-down building in Queens, squeezed between a sari boutique and a tiny store selling Bollywood DVDs, are two rooms - rented for $1,500 a month - whose occupants have been sent from Bangladesh to end poverty in the US. <<More>>

SEZ lessons from China
Anurag Viswanath & Manoranjan Mohanty/Business Standard February 14, 2008

India seeks to emulate China's SEZ policy though it is increasingly under attack there.

Deng Xiaoping’s emphasis on “One Focus, Two points” — focus on Economic Construction, Reforms-and-Open Door and Four Ideological Principles — constituted a turning point in China’s economic history. The Reforms-and-Open Door strategy steered China’s economic destiny, and catapulted it on the road to becoming an economic powerhouse. Reforms (Gaige), began in the countryside with the introduction of the Household Responsibility System (HRS) in agriculture, a policy which entailed a break with communes and accelerated the development of rural industries. The success of rural reforms propelled a bold experimentation in other key sectors. Open Door (Kaifang), on the other hand, was envisioned to throw open China’s doors — which had remained closed and confined in the socialist cloister to the outside world — to foreign capital and technology. An important component of Open Door was the creation of SEZs. <<More>>

Can business support sustainable development?
www.lloyd's.com, February 11, 2008

According to a recent study conducted among university applicants in the UK, 78% state that serious change must happen if the planet is not to be overcome by environmental chaos. A pragmatic approach to the future development of society and positive action will be required to achieve this aim. Global leaders need to work together to drive the sustainability agenda. Business leaders can set an example and personally make a difference. To achieve inclusive sustainable societies, it is critical that governments begin to work together to develop a set of standards and principles. <<More>>

India plans for closer regional economic ties
The Hindu, February 11, 2008

India is considering a policy to permit all neighbouring countries, including Pakistan, to allow their companies to invest in all potential economic areas. During a recent visit to Sri Lanka, Minister of State for Commerce and Industry Jairam Ramesh stated that India’s globalisation was incomplete and could not be sustained without closer economic cooperation in the region. In order not to become a prisoner of reciprocity, India should take the initiative to open up its economy for investments from neighbouring countries.  <<More>>

Breaking the Neoclassical Monopoly in Economics
Thomas Palley, February 11, 2008

For the last 25 years, the so-called "Washington Consensus”, aiming at an expansion of the role of markets while constraining the role of the state, has dominated economic development policy. A recent publication by Harvard Economist Dani Rodrik challenges the intellectual foundations of the Washington Consensus, which is based on a one-size-fits-all formula of privatisation, deregulated labor markets, international economic integration, and macroeconomic stability based on low inflation. Instead, Rodrik argues that there are many recipes for development success by countries following eclectic policies tailored to specific local conditions.  <<More>>

Going Green in Trade Policy
National Journal, February 09, 2008

With French talk of a carbon tax on imports and the U.S. Senate considering legislation that would require imports from China and India to have carbon certificates, the EU has delayed a decision on what to do about carbon intensive imports. But the attached piece in Friday's National Journal notes that Brussels has clearly warned it will take action if China, India and the United States do not sign up to a global carbon reduction regime. The EU debate has lessons for the United States, which has yet to begin a serious public discussion of this issue. <<More>>

Rich-poor "digital divide" still broad, says UNCTAD
Reuters, February 07, 2008

The digital divide between rich and poor countries is narrowing as mobile phones and Internet use become more available, but the developing world still lags far behind. A recent study conducted by the United Nations Conference on Trade and Development shows that mobile phone subscribers have almost tripled in developing countries over the last five years. According to UNCTAD, the technology has the potential to improve the economic life of the population in the developing world as a whole. <<More>>

Lamy: Trade expansion insurance against financial turbulences
WTO News, February 06, 2008

The World Trade Organisation's Director-General Pascal Lamy has stated that the global trading system has underpinned an unprecedented period of economic growth and development. In his speech at the Geneva Lectures on Global Economic Governance, Lamy said that the Doha Round was the one global initiative that may boost confidence of world businesses, workers and consumers during times of insecurity in the world economy. <<More>>

General Council Establishes Working Party for Equatorial Guinea
WTO News, February 05, 2008
The General Council, on 5 February 2008, established a working party to examine the application of Equatorial Guinea to accede to the WTO. It authorized its Chair to designate the Chairperson of the working party in consultations with members and the representative of Equatorial Guinea. <<More>>

WTO Praises Ghana's Economic Performance
Accra Mail, February 05, 2008

The World Trade Organisation (WTO) has commended Ghana for its impressive economic performance, with high real GDP growth rates, decreasing inflation, improved fiscal situation, and substantial progress in poverty reduction. WTO members stated that the strong growth of Ghana's economy had been supported by trade liberalisation, reduction of tariff rates as well as the streamlining of customs procedures. <<More>>

India-EU Trade Likely To Hit US$572 Bn By 2015
PBD, February 04, 2008

According to a study conducted by the Federation of Indian Chambers of Commerce and Industry, India’s trade with the European Union has the potential to reach US$572 billion by 2015 once the FTA with the 27-nation bloc is implemented. Going by the study ‘India-EU Trade & Investment: Current Status and Issues’, India-EU trade would account for more than 25% of the country’s GDP compared to less than 10% currently, which may grow up to over two trillion dollars if 10% economic growth is achieved and maintained.
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Can the Doha round be completed by year's end?
Sunday, February 03, 2008

While the WTO's Director-General Pascal Lamy has expressed optimism towards a successful completion of the Doha Round by the end of this year, Caribbean countries are doubtful about the outcome of negotiations. The talks have been deadlocked over agriculture since 2006, with developing countries pushing for cuts in farm subsidies and the removal of tariffs on agricultural imports imposed by the EU and others developed nations. In exchange, they would then be more willing to grant industrialised nations improved access for manufactured goods and services. With regards to the Economic Partnership Agreement (EPA) with the EU, CARIFORUM member states still struggle to accept the premise that tariff liberalisation, open markets, competition and integration will create sustainable economic growth.
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