Global Economic Governance Initiative
The Global Economic Governance Initiative (GEGI) is a research program of the Center for Finance, Law & Policy, the Frederick S. Pardee Center for the Study of the Longer-Range Future, and the Frederick S. Pardee School of Global Studies. It was founded in 2008 to advance policy-relevant knowledge about governance for financial stability, human development, and the environment.
Latest From GEGI
Fueling Growth and Financing Risk: benefits and risks of China’s development finance in the global energy sector
by Kevin Gallagher, Rohini Kamal and Yongzhong Wang
According to new GEGI research in collaboration with Yongzhong Wang of the Chinese Academy of Social Science’s Institute for World Economics and Politics, in just over a decade Chinese policy banks have emerged as global leaders in development finance in general and in finance for energy projects in developing country governments in particular.
Europe's Regulations at Risk: The Environmental Costs of the TTIP
By Frank Ackerman
One Step Forward, One Step Back: Trade Treaties vs. Climate Protection
On Friday, April 22, President Barack Obama is joining other world leaders in signing the Paris climate accord. Although much less than what is needed, the Paris accord is an important step toward stabilizing the world’s climate and preventing the worst of future damages.
But on the following Monday, April 25, Obama will meet with European leaders in Hannover, Germany to promote the Transatlantic Trade and Investment Partnership (TTIP) – a proposed US-EU trade treaty that could amount to an enormous step backward on climate, clean energy, and other environmental issues.
As explained in a new GEGI report by the economist Frank Ackerman, “Europe’s Regulations at Risk: The Environmental Costs of the TTIP”, there is almost no remaining scope for traditional trade liberalization between the US and the EU. Tariffs are close to zero, and the flow of goods is already enormous in both directions.
2016 China-Latin America Economic Bulletin
by Kevin P. Gallagher, Rebecca Ray and Rudy Sarmiento
Chinese lending to Latin America more than doubled in 2015, rising to $29.1 billion USD. Meanwhile, China-Latin America trade stagnated, as the commodity boom of the last decade continued to cool. Overall, last year saw the China-Latin America relationship shift toward finance, especially finance for large infrastructure and energy projects in Latin America. Activity continued —albeit at an early stage — in several large developments such as the Nicaragua Canal and Twin Ocean Railway. Meanwhile, other Chinese-financed projects such as the Coca Codo Sinclair dam neared completion.
These are the main findings of the 2016 China-Latin America Economic Bulletin, the third annual brief on developments in trade, investment, and finance between China and Latin America. These bulletins are designed to provide analysts and observers handy reference to the ever-changing landscape of China-Latin America economic relations, a landscape where data is not always as readily accessible.
New book: The China Triangle
by Kevin P. Gallagher
In The China Triangle, Kevin P. Gallagher traces the development of the China-Latin America trade over time and covers how it has affected the centuries-old (and highly unequal) US-Latin American relationship. He argues that despite these opportunities Latin American nations have little to show for riding the coattails of the ‘China Boom’ and now face significant challenges in the next decades as China’s economy slows down and shifts more toward consumption and services. While the Latin American region saw significant economic growth due to China’s rise over the past decades, Latin Americans saved very little of the windfall profits it earned even as the region saw a significant hollowing of its industrial base. What is more, commodity-led growth during the China boom reignited social and environmental conflicts across the region.
China-Latin America Finance Database
by Kevin P. Gallagher, Fei Yuan and Margaret Myers
GEGI and the Inter-American Dialogue produce the annual China-Latin America Finance Database, the only publicly available source of empirical data on Chinese development bank (China Development Bank and China Eximbank) finance in Latin America and the Caribbean (LAC). The database features upwards of $125 billion in Chinese loan commitments to LAC nations since 2005.
TTIP and Climate Change: Low economic benefits, real climate risks
by Kevin P. Gallagher and Matthew C. Porterfield
Climate change governance should inform global governance more broadly-including international trade and investment policy. One of the most important trade and investment agreements is the Trans-Atlantic Trade and Investment Partnership (TTIP)-currently under negotiation between the European Union and United States- given the role it will likely play in establishing rules for the global economy in the 21st century.
GEGI co-director Kevin P. Gallagher and Matthew C. Porterfield of Georgetown University’s Harrison Institute for Public Law argue that the current model that the TTIP is based on will increase carbon dioxide emissions and jeopardize the ability of Europe and the United States to put in place effective policies for mitigating climate change. Trade and investment treaties should be used to help achieve the broader climate change objectives of Europe and the United States, not hinder them.
New Report: Greening Development Finance in the Americas
by Fei Yuan and Kevin P. Gallagher
GEGI’s new report documents how development banks operating in Latin America and the Caribbean (LAC) are falling far short of playing the key role they need to in spurring economic recovery and sustainable development.
The author’s, GEGI co-director Kevin P. Gallagher and research fellow Fei Yuan, argue that green financial flows from development banks need to be scaled up significantly, and alongside proper governance structures to ensure that green financial flows translate into sustainable development outcomes.
Investment Provisions in Trade and Investment Treaties: The Need for Reform
By Gus Van Harten, Matthew C. Porterfield and Kevin P. Gallagher
Nations of the world are currently negotiating a variety of significant trade and investment treaties that cover upwards of eighty percent of the world economy. The Trans-Pacific Partnership (TPP) would further integrate a number of Pacific-Rim nations; the Trans-Atlantic Trade and Investment Partnership (TTIP) would be a treaty between the United States and European countries. The United States and others are also negotiating major bilateral investment treaties (BITs) with China and India. As the negotiations have progressed, the investment provisions of these treaties have become increasingly controversial—though they are not well understood. This short policy brief highlights three core concerns about the investment provisions in contemporary treaties that have received significant scrutiny in scholarly and policy circles.