Reference Update

JULY/AUGUST 2006

ECONOMICS AND TRADE

1. THE RETURN OF SAVING
Martin Feldstein.
Foreign Affairs, May/June 2006, 7 pages.
The U.S. savings rate has been falling for decades, but that downward trend will likely soon be reversed, as factors such as rising mortgage interest rates force Americans to start saving more. The change will ultimately be for the better, but in the short term it could cause serious problems for the United States and its trading partners unless they start preparing immediately.

2. TWO MYTHS OF GLOBALIZATION
A. Edward Gottesman
World Policy Journal, Spring 2006, 9 pages.
The author discusses the two myths of globalization. The first is that China is the "next economic superpower" and will be the largest economy in the world in 10, 20, or 30 years. The second is that the current account deficit the US has run for a number of years (about a third of which has recently been in trade with China) is "unsustainable" and will result in some global economic cataclysm.

3. THE GLOBALIZERS IN SEARCH OF A FUTURE: FOUR REASONS WHY THE IMF AND WORLD BANK MUST CHANGE, AND FOUR WAYS THEY CAN
Ngaire Woods
CGD Brief, April 2006, 8 pages.
The author says the IMF and World Bank are being assailed for lack of legitimacy, independence and effectiveness. He elaborates on four main reasons these institutions need to change. First, their income is running out; secondly, their traditional client countries are turning elsewhere. Additionally, their use of conditionality has failed, however they have not found a new mechanism for managing loans; and they are also seen as being incapable of providing impartial policy advice since they answer to powerful countries first rather than to the borrowers. Nevertheless, the author writes, the IMF and World Bank can ensure their future relevance if their reforms accomplish deep changes such as focusing on the borrowers, contributing to rather than hijacking a country's policy debates, involving borrowers in decision-making, and focusing on roles for which they have a unique capacity.

4. VIETNAM: COUNTRY OUTLOOK
Economist Intelligence Unit – ViewsWire, 17 August 2006, 2 pages
The article provides brief and updated information on Vietnam's development including economic growth, international relations, domestic politics and policy trends.

5. TODAY'S GOLDEN AGE OF POVERTY REDUCTION
Surjit S. Bhalla.
International Economy, Spring 2006, 5 pages.
The author says the claims that globalization increases poverty and inequality is simply false. The increases in poverty that organizations like the World Bank report are based purely on the number of poor, he explains, so while increased population does mean more poor, the numbers fail to reflect the even larger increase in number of people who have moved out of poverty. History has proven that economic liberalization leads to production efficiency, which leads to economic growth, which leads people out of poverty, Bhalla asserts. He also suggests that poverty reduction has been so successful that it is time to move the absolute poverty line to about two dollars a day.

6. DOES FOREIGN AID HELP?
Simeon Djankov
Cato Journal, Winter 2006, 28 pages.
The authors believe that foreign aid has a negative impact on the democratic stance of developing countries, and on economic growth, by reducing investment, increasing government consumption, and reducing the level of democracy of the recipient countries. Alternatives exist, for example, in the manner in which aid is disbursed. However, there is very little documented evidence on the effectiveness of foreign aid that aid has much of an impact on economic development. Loans induce a more effective use of the funds because they have to be returned while remittances and private assistance have also proven to be positive steps in fostering growth and investment, but the increasing number of participants to the aid market and the potentially conflicting goals of donors further contribute to the ineffectiveness of aid. They note that the effectiveness of foreign aid can be improved by increasing the responsibility of recipient countries, reducing the cost of remittances to developing countries, and improving the coordination of donors.

7. FASHION AND FOREIGN AID: A REALISTIC LOOK AT THE "DIGITAL DIVIDE"
Alec Van Gelder
Institute of Public Affairs Review, April 2006, 4 pages.
The hype and the attention devoted to the digital divide risks diverting scarce resources away from efforts that really matter to improving the lot of the poor, writes van Gelder. It is true that information and communications technology (ICT) remain inaccessible for the vast majority of the poor, he says, but other development indicators -- necessary predecessors to productive use of ICT -- such as clean water and air, reliable sources of energy, high-quality education, and rule of law are also lacking in these countries. There are successful examples of ICT use in poor countries, but he questions the wisdom of placing too much emphasis on the digital divide in places that lack free institutions and basic living standards.

REGIONAL SECURITY

8. CHINA AND JAPAN'S SIMMERING RIVALRY
Kent E. Calder
Foreign Affairs, March/April 2006, 11 pages.
The author notes that China and Japan account for nearly three-quarters of the region's economic activity and more than half of the military spending. Despite their deep economic ties and a doubling of their bilateral trade in the past five years, their relationship is increasingly strained - with dangerous implications for the U.S. and the world at large. He argues that the U.S. should encourage cultural communication, exemplified by the State Department's International Visitors Program, which would be far more effective than official action, given the importance of personal networks in Asia.

9. THE SHADOW OF THE BOMB, 2006
Sidney D. Drell
Policy Review, April/May 2006, 14 pages.
The author fears that terrorists or rogue states are acquiring nuclear weapons, and wants the U.S. to sign the Comprehensive Test Ban Treaty, and also wants universal adherence to the International Atomic Energy Agency's Additional Protocol. However, some details are faulty, he asserts -- the number of nuclear weapon states hasn't grown in two decades, though Pakistan did not test a nuclear weapon until 1998. He labels the Proliferation Security Initiative, now nearly three years old, to be a mere proposal; he argues against a U.S. development of a nuclear earth-penetrating weapon, a program that the Bush administration dropped in October 2005. He argues that North Korea is currently violating the Agreed Framework, which in fact ended with Pyongyang's 2002 assertion that it had secretly been building nuclear weapons for years. Available online at: http://www.policyreview.org/136/drell.html

GLOBAL ISSUES AND ENVIRONMENT

10. FEDERAL REGULATION OF GENETIC TESTING NEGLECT
Gail H. Javitt and Kathy Hudson
Issues in Science and Technology, Spring 2006, 8 pages.
Genetic testing is playing a growing role in health care delivery and is providing information that can be the basis for profound life decisions, such as whether to undergo prophylactic mastectomy, terminate a pregnancy, or take a particular drug or dosage of a drug. Currently, the government exercises only limited oversight of the analytic validity of genetic tests and virtually no oversight of the clinical validity of genetic tests. Here, Javitt and Hudson suggest that the government needs to ensure that genetic tests provide useful medical information and that the test results are reliable.

11. LIFE LESSONS: HOW SOAP OPERAS CAN CHANGE THE WORLD
Hannah Rosin
The New Yorker, June 5, 2006, 6 pages.
Drama serials, originating in the 1950s in the United States as long-running daytime "soap operas," have proven to be the most enduring and popular form of television programming. Now known worldwide as telenovelas, these TV and radio programs are being transformed in many countries as vehicles to teach literacy, combat AIDS, fight domestic abuse, and encourage civic participation. The article describes how New York-based Population Communications International works with the United Nations and USAID, as well as grassroots community groups and social workers, to develop scripts that reflect the cultures and traditions of their audiences in poor countries while transmitting messages of empowerment.

12. ANYTHING INTO OIL
Brad Lemley
Discover, April 2006, 6 pages.
The author reports on the operation of the first commercial biorefinery in the world that can make oil from a variety of waste. This plant converts turkey slaughterhouse waste into fuel oil, high-grade fertilizer and water. Start-up delays, technical adjustments and higher operating costs have resulted in financial losses, but the owner of the plant expects it to begin operating at a profit because a federal government subsidy for renewable diesel fuel went into effect in early 2006. Future plans for the company include building plants in Europe to process beef slaughterhouse waste because it is expected that the process will destroy prions, the proteins that cause mad cow disease. The company has also demonstrated the process for automobile recyclers using their waste of plastics, fabrics, rubber and nylon that currently is dumped in landfills.

MEDIA, COMMUNICATIONS AND INFORMATION TECHNOLOGY

13. INSIDE THE SPYWARE SCANDAL
Wade Roush
Technology Review, May/June 2006, 17 pages.
In 2005, Sony BMG Music Entertainment company put antipiracy software on their CDs. In doing so, they spied on their own customers and gave hackers the power to access people's computers. The author tells the story of how Sony installed secret software on its customer’s computers that prevented listeners from making more than three copies of their music, and secretly contacted Sony via the Internet every time a PC user played a copy-protected disk. The scandal ignited a dispute in the public sphere over the ways consumers should be allowed to use copyrighted digital information, and over how far copyright holders can go to secure their intellectual property against piracy.

14. THIS LEAKY WORLD
William Powers
National Journal, May 6, 2006, 1 page.
The author describes how democracies in various parts of the world are dealing with questions about anonymous sources, the law, and the press. While Americans tend to see the problem as peculiar to the U.S., he points out that Australia has recently enacted anti-terrorism legislation that some observers see as already having a "chilling effect on the news." In Mexico, the government has passed a law which allows journalists to protect their sources because of the danger from drug cartels and gangs. A recent court case in Japan allowed some journalists to protect their sources. "Freedom of the press is a delicate dance, a never-ending series of judgment calls. The more tightly a society ... tries to define that freedom, the harder it becomes for journalists to do their jobs," he concludes.

U.S. POLITICS, SOCIETY AND CULTURE

15. HOW REPUBLICANS CAN GET THEIR GROOVE BACK
Carl M. Cannon
National Journal, May 13, 2006, 7 pages.
As the November election gets near, the Republicans are feeling the lack of support even from traditionally Republican districts, according to Cannon. GOP political consultant Roger Stone agrees, noting that "parties are always defined by their leaders...that means this is going to be a tough midterm." Possible remedies, such as developing culture of ethics to gain trust back from the people, showing fiscal restraint, and taking care of Iraq, even if it means seeking help from other countries are discussed. Overall, none of these can be accomplished in a short period of time. Cannon concludes that perhaps after 12 years of GOP congressional rule, people are ready for change.

16. CHASING HILLARY
Marc Ambinder
National Journal, April 22, 2006, 6 pages.
Democratic Presidential hopefuls are already clamoring to finance their primary campaigns, with Sen. Hillary Rodham Clinton leading the charge. The former first lady has raised $39.3 million as of March 31, 2006, just shy of the $40 million experts say a candidate needs to be politically viable for the Iowa caucus in 2008. With Sen. Clinton winning the support of mega-financiers, other hopefuls are seeking alternative fundraising venues, including the Internet and local grassroots efforts. Some of the usual fundraising competition has been relieved by Clinton's commanding lead, leaving other candidates to vie just for a chance to compete in 2008.

17. FLOATERS
Michael Crowley
The New Republic, May 15, 2006, 2 pages.
The author asserts that some politicians use rumors of a presidential run as a means of personal gain. He points to cases of senators 'floating' their names as possible presidential candidates to increase their power on Capitol Hill. Politicians involved in scandals may use the rumors of a presidential run to prove their competence and return to the good graces of their constituents. Finally, politicians on the speaker circuit or on book tours float a possible race to capitalize on the instant fame of the White House, hoping audiences will open their wallets to read the thoughts of a future president. The author worries that the practice of floating may trivialize presidential campaigns and undermine the efforts of well-meaning fringe candidates with a serious message to convey.

TRANSLATED DOCUMENTS

18. COPYRIGHT BASICS
25 pages
Copyright is a form of protection provided by the laws of the United States (title 17, U. S. Code) to the authors of “original works of authorship,” including literary, dramatic, musical, artistic, and certain other intellectual works. This protection is available to both published and unpublished works.

Below documents are from “Media Emerging”, an Electronic Journal of the U.S. Department of State, March 2006
http://vietnamese.vietnam.usembassy.gov/doc_ej0306.html

19. EMERGING MEDIA RESHAPE GLOBAL SOCIETY
Dale Peskin, Co-Director, and Andrew Nachison
4 pages
New technologies create new media, changing the distribution, consumption, and use of information and revolutionizing public consumption of information.

20. NEWSPAPERS RECREATE THEIR MEDIUM
Brian L. Steffens
6 pages
Community newspapers are creating multimedia platforms for the delivery of their products, attempting to attract younger readers and an Internet audience.

21. BROADCASTERS GETTING ONLINE, STAYING ON AIR
Michael Murrie
6 pages
The broadcasting industry has transformed the delivery and production of programming to survive in a changing marketplace.

22. PUBLIC LIBRARIES IN THE INTERNET AGE
Maurice J. (Mitch) Freedman
4 pages
Using the Internet, library professionals reach beyond the library walls to provide information services to their patrons.

23. MAKING CONNECTIONS A WORLD AWAY
4 pages
Average people are able to reach far beyond their own communities to connect with new people, sharing interests and experiences. Three online projects are profiled.

24. INTERNET2—CREATING TOMORROW'S INTERNET
Heather Boyles
3 pages
More than 200 universities are working with industry and government to develop and deploy advanced applications and technologies to accelerate the creation of tomorrow's Internet.

25. FIGHTING ONLINE CRIME
Daniel Larkin
6 pages
IC3 investigates the growing number of complaints about fraudulent, deceptive, and criminal activity online.