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How Globalization Helps the Poor

by Gary S. Beckervia Hoover Digest
Thursday, October 30, 2003

Whatever its critics may claim, globalization isn’t just for fat cats and multinational corporations. By Gary S. Becker.

Economic Policy

The State Asset Commission: A Powerful New Government Body

by Barry Naughtonvia China Leadership Monitor
Thursday, October 30, 2003

A powerful new government body, the State-Owned Assets Supervision and Administration Commission (State Asset Commission, or SAC, for short), was authorized at the 10th National People's Congress in March 2003 and set up operations in June. The SAC represents an important step forward toward clarifying and modernizing the administration of government property rights and improving the oversight of government managers. But at the same time, because the SAC is intended to gather the reins of many types of authority, there is a risk that it will become an overly powerful and interventionist body. The establishment of the SAC reveals much about the sources and exercise of political power in contemporary China. The commission's head, Li Rongrong, exemplifies the newly emerging technocratic leadership. But, the manner in which the SAC falls in the middle of contention over personnel authority also shows how old-style political considerations remain central.

Fighting Corporate Recidivism

by Thomas J. Healeyvia Hoover Digest
Thursday, October 30, 2003

Enron, HealthSouth, Tyco! What can be done to restore order and sanity to the executive suite? By Hoover overseer Thomas J. Healey.

Political Reform

Studying the Three Represents

by Joseph Fewsmithvia China Leadership Monitor
Thursday, October 30, 2003

Starting in June, Chinese media have been promoting a new campaign to study the "three represents," Jiang Zemin's ideological formulation that was enshrined in the Chinese Communist Party (CCP) constitution at the 16th Party Congress in fall 2002. Following Hu Jintao's efforts to emphasize a more populist approach to governance, including his "people's war" against severe acute respiratory syndrome (SARS) in April and May, the new campaign has raised new questions about the relationship between Hu and Jiang. Review of the evidence reveals that this campaign has long been in the works and thus should not—in and of itself—be taken as evidence of a reassertion of Jiang's political clout, but there are nevertheless significant differences between the two leaders and their approaches to governance and ideology. Although the evidence suggests that Hu Jintao has been trying to inject new themes and approaches to governance, he remains willing to acknowledge the role of Jiang as elder statesman and refrains from challenging him directly. Thus, political differences are more likely to be played out in personnel decisions and policy priorities over the coming months than in the sort of political competition that is likely to lead to instability.

If Economists Are So Smart, Why Is Africa So Poor?

by Barry R. Weingast, Douglass C. North, Stephen Habervia Hoover Digest
Thursday, October 30, 2003

Despite an enormous inflow of foreign aid, most African countries today are poorer than they were a generation ago. What’s gone wrong? By Hoover fellows Stephen Haber, Douglass C. North, and Barry R. Weingast.

Education and Capitalism: How Overcoming Our Fear of Markets and Economics Can Improve America's Schools

Education and Capitalism: How Overcoming Our Fear of Markets and Economics Can Improve America's Schools

by Herbert J. Walbergvia Hoover Institution Press
Thursday, October 23, 2003

The authors call on the need to combine education with capitalism.

Analysis and Commentary

Could a Degressive Tax Be Better Than a Flat Tax?

by Alvin Rabushkavia Hoover Daily Report
Monday, October 20, 2003

I have argued that disincentives to work, save, and invest should be removed via a flat tax. But why not go a step further and improve incentives across the board by creating a degressive tax? Such an experiment is about to take place in Switzerland.

Analysis and Commentary

The Case for a Dynamic Economy

by David R. Hendersonvia Hoover Daily Report
Monday, September 22, 2003

The history of economic growth is the history of people making more with less and shifting into new jobs that were unheard of in the previous generation.

Russia's Oil in America's Future: Policy, Pipelines, and Prospects

by William Ratliffvia Analysis
Monday, September 1, 2003

Presidents George Bush and Vladimir Putin will hold a summit at the end of September that will focus on economic and other ties between the United States and Russia. The two presidents have long recognized the central position of energy in our bilateral relations, and in that sphere, nothing is as critical as oil. Today Russia may again be the largest oil exporter in the world, but very little yet comes to the United States. Russia’s oil industry is dominated by rich and aggressive young private companies. Generally, they are eager to deal with foreigners, but despite significant state reforms they often are still inhibited by a dilapidated, state-controlled delivery system and a residue of traditional thinking and institutions. Many of Russia’s as-yet-unresolved post-Soviet prob-lems exploded in mid-2003 when the prosecutor general’s office attacked Yukos, the country’s most modernized, productive and pro-American private oil company. Thus even as Washington and American oil industry leaders actively sought alternatives to unstable sources in the Middle East, Africa and Latin America, basic questions re-emerged in Russia about the privatizations of the 1990s, the security of private property, the mixing of law and politics, and the exercise of power in the Kremlin. Today Russians, with the support of American and European allies, must create conditions that will welcome the foreign funds, technology, and expertise needed to develop the critical oil industry but also to lay foundations of law and infrastructure that will help make Russia a stable member of the world community. Americans must decide how much involvement Russia can constructively absorb to promote not only short-term oil supplies but also long-term Russian development and broader U.S. foreign policy goals. Finally, the critical long-term lesson of 9/11 and other recent experiences for Americans is that even as we cultivate Russia as an ally and major source of oil, we must actively develop alternative sources of energy. In an unstable world, the United States must not forever be held hostage by other nations with their often very different cultures, institutions and interests.

Analysis and Commentary

The Flat Tax at Work in Russia: Year Three, January-June 2003

by Alvin Rabushkavia
Wednesday, August 13, 2003

The Ministry of Taxation of the Russian Federation has reported the taxes and fees collected for the period January-June 2003. The data show that the 13% flat tax on personal income continues to achieve very positive results.


Economic Policy Working Group

The Working Group on Economic Policy brings together experts on economic and financial policy to study key developments in the U.S. and global economies, examine their interactions, and develop specific policy proposals.

Milton and Rose Friedman: An Uncommon Couple