Archive - Feb 12, 2008
After 10 years, could the honeymoon be over?
Food shortages, a weakening economy and outbreaks of dengue fever are fueling growing discontent among Venezuelans and Hugo Chavez and his socialist party are experiencing their greatest period of unpopularity. Beyond domestic problems, recent weeks have brought Chavez a heightened level of threats from his enemies, reports the New York Times.
Don't Be Sour over Nafta
The New York Times reports that despite concern over Nafta among Mexican farmers and U.S. big sugar companies, in time Nafta should make the U.S. consumer and the Mexican farmer better off.
Whose to Blame: Government Policies or Free Trade?
Today, Business Week takes a look at how Mexico is benefiting under Nafta -- but why the free trade agreement hasn't solved all of Mexico's economic woes.
There's no question that the country has benefited greatly from Nafta: Mexico has become the world's 15th-largest exporter, sending abroad $272 billion of merchandise in 2007 ($43 billion of which was oil). It transformed a $3 billion trade deficit with the U.S. in 1993 into a $75 billion surplus in 2007. Mexico went on to sign free-trade agreements with 41 other countries, attracting some $223 billion of foreign investment in 15 years.
So, why did tens of thousands of angry Mexican farmers take to the streets in late January, demanding that Nafta be renegotiated? Because after a decade and a half of free trade, Mexico's economic transformation is incomplete, and many Mexicans are blaming Nafta for a plethora of problems that have more to do with bad government policies than with free trade.
Developing Economies and Technology
The World Bank has just published a statistical report on worldwide computer access and ownership, wondering, among other things, just how well developing countries are utilizing technological innovations. It found that
With [technology], labour and capital can be used and combined far more effectively. So it is good news that the bank finds that the use of modern technology in emerging economies is coming on in leaps and bounds.
Rich and Poor Split Over Globalization
A new BBC global poll reveals a notable divide in world public opinion: while many in the richest countries express concern about the pace of globalization, those in developing countries are more likely to believe that globalization is moving too slowly.
"People in some developing countries want to accelerate globalisation and appear to believe that this will help break down some of the inequities in their country," said Steven Kull of the University of Maryland's Program on International Policy Attitudes, a co-sponsor of the poll.
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