Jeffrey J. Schott, Senior Fellow, was a Senior Associate at the Carnegie Endowment for International Peace (1982-83) & an International Economist at the US Treasury (1974- 82). He is the author, coauthor, or editor of several books on the trading system, including Launching New Global Trade Talks: An Action Agenda (1998), Restarting Fast Track (1998), The World Trading System: Challenges Ahead (1996), The Uruguay Round: An Assessment (1994), Western Hemisphere Economic Integration (1994), NAFTA: An Assessment (rev. ed. 1993), North American Free Trade: Issues & Recommendations (1992), Completing the Uruguay Round: A Results-Oriented Approach to the GATT Trade Negotiations (1990), Free Trade Areas & U.S. Trade Policy (1989), The Canada-United States Free Trade Agreement: The Global Impact (1988), Auction Quotas and United States Trade Policy (1987) & Trading for Growth: The Next Round of Trade Negotiations (1985).
In the wake of the Great
Recession of 2008–09, economists feared that protectionist policies might sweep
the world economy, echoing the wave of tariff escalations during the Great
Depression of the 1930s. To some surprise, officials were more restrained and
largely avoided traditional forms of protection (tariffs and quotas), leading
some observers to underestimate the incidence of new protectionism. In
fact, policymakers increasingly turned to more opaque behind-the-border
nontariff barriers (NTBs). Using a combination of statistical analysis and case
studies, the authors show that local content requirements (LCRs), a form of
NTB, have become increasingly popular. How much was global trade actually
reduced on account of LCRs? A conservative estimate might be $93 billion. Case
studies featured cover the healthcare sector in Brazil, wind turbines in
Canada, the automobile industry in China, solar cells and modules in India, oil
and gas in Nigeria, and “Buy American” restrictions on government procurement
in the United States.
In Rich People Poor Countries, Caroline Freund identifies and analyzes nearly 700 emerging-market billionaires whose net worth adds up to more than $2 trillion. Freund finds that these titans of industry are propelling poor countries out of their small-scale production and agricultural past and into a future of multinational industry and service-based mega firms. And more often than not, the new billionaires are using their newfound acumen to navigate the globalized economy, without necessarily relying on political connections, inheritance, or privileged access to resources. This story of emerging-market billionaires and the global businesses they create dramatically illuminates the process of industrialization in the modern world economy.