Category: International Trade

The NYT editorializes today that Venezuelan president Hugo Chávez is, at worst perhaps, a necessary evil given the current political climate: “if it takes Mr. Chávez’s demagogy to spur Washington toward more enlightened policies in the Americas, so be it.”

Oh yeah, and more US foreign aid to Latin America equals “social justice.”

“Mr. Bush deserves praise for doubling the assistance to Latin America, to $1.6 billion a year. But much of this has been for security programs in Colombia. A lot more will be needed if promoting social justice is to be more than a sound bite.”

In any case, I think it may in fact be true that President Bush’s “reputation in the hemisphere [is] nearing its modern nadir” if in a comparison of Bush and Chávez the latter comes off looking favorably. Or maybe it says more about the discernment of those making such judgments than it does about Chávez’s objective quality.

Blog author: jspalink
Wednesday, February 7, 2007

Make trade, not war? In an excerpt from his new book “The Commercial Society,” Sam Gregg examines the long held view that nations engaged in trade are less likely to wage war. He notes that nations which are busy with commercial pursuits, instead of war making, may also be more vigilant about “protecting the fabric of freedoms upon which commercial societies depend.”

Read the commentary here.

A NYT editorial informs us today that retail prices for coffee products are rising (HT: Icarus Fallen). We are assured, however, that the price rise has been “relatively modest” and that an important factor is “changes in supply and demand in a global economy.”

No kidding.

The bad news in the editorial, at least for the fair trade crowd, is that these same forces of suppy and demand are raising the price for the commodity itself.

According to the International Coffee Organization, the composite price of coffee rose over 36 percent from the beginning of 2005 to the end of 2006. The organization predicts a down year for the Brazilian coffee crop, which could lead to a supply shortfall and even higher prices this year. While world demand has grown at annual rates of 1.5 to 1.8 percent over the last five years, it has been rising at a much faster clip of roughly 15 percent for smaller players like Russia and China. As more people enter the global middle class, the demand for coffee rises, putting upward pressure on the price.

I have argued previously that the very low price of coffee internationally was a pointer to the fact that we had a global glut in the bean supply.

That trend seems to be reversing and the rising commodity price for coffee is thus undermining the long-term viability, relevance, and credibility of fair trade coffee.

For an opposing perspective, check out Black Gold, a new movie on the fair trade coffee movement, which I have not yet seen (HT: The Advocate).

Blog author: jballor
Thursday, January 4, 2007

From today’s WaPo:

About 25 percent of the technology and engineering companies launched in the past decade had at least one foreign-born founder, according to a study released yesterday that throws new information into the debate over foreign workers who arrive in the United States on specialty visas.

Scott McNealy, chairman and co-founder of Sun Microsystems, “is among the advocates for an expanded visa program, writing editorials, calling members of Congress and supporting political action committees.”

He asks a pretty good question, I think: “Why would you have any arbitrary number on smart people?”

Blog author: jballor
Tuesday, January 2, 2007

James Dyson, inventor of the world’s most exciting bagless vacuum cleaner, will receive a knighthood. Speaking of his company, the BBC reports:

Today, the company has about 1,400 staff in the UK, with about 4,000 others working in production plants in Malaysia and China.

Despite his successes, Mr Dyson has been criticised for his decision to ship so many production jobs abroad.

Paul Kenny, general secretary of the GMB said: “Do people now get a knighthood for services to exporting jobs?”

By contrast, Dyson says, “I have spent 35 years making things in a country that often has little regard for its manufacturers.”

“It has left me more convinced than ever that engineering is this country’s future.”

HT: Gear Factor

New President of Mexico Calderon spent yesterday at the US Mexican border greeting Mexicans returning home for Christmas. His message was two-fold. First, a pledge to create jobs in Mexico:

“The generation of well-paid jobs is the only long-lasting solution to the migration problem,” Calderón said before greeting immigrants in cars packed with Christmas gifts.

Calderón, who took office Dec. 1, pledged to fight corruption to make Mexico more attractive to foreign investors.

“We need to ensure that more investment crosses the border into Mexico rather than Mexican labor heading to the United States,” the new president said.

This has been my message about the immigration issue, too. I said it at an Acton conference for Mexican bishops, and I’ve said it in print many times.

The other interesting fact in this article is the scale of the Christmas migration: an estimated 1.2 million people will return to Mexico for Christmas from the US this year. I have been aware of this phenomenon since we lived in Santa Rosa CA, north of San Francisco. Santa Rosa has a substantial agricultural community, part of the Wine Country. My daughter’s elementary school was probably 75% Mexican. The place cleared out at Christmas time. The school simply accepted as a fact of life that most of the kids would be gone for a month around Christmas time. Bear in mind, that many of them were making a 12 hour drive to their homelands in Mexico.
This is part of the phenomenon I addressed in my National Catholic Register article, Give Us Your Heart. Many, many Mexicans keep their bodies in America but their hearts in Mexico. It would be better for all of us for them to be able to be integrated: let one place or the other be truly home.

By the way, Calderon’s second message was: Merry Christmas! (They’re allowed to say that in Mexico!)

The children of the Chinese One-child policy are finding new obstacles in their paths: no one wants to hire them. Incredible, but true. It seems that many of the only children have been so pampered by their parents, that employers do not find them suitable workers. Some have called these children, "Little Emperors," because their parents dote on them so thoroughly. Evidently, this is not good preparation for working in the global economy!

Recently, China Daily reports, the Sinohydro Engineering Bureau No. 1 in the central province of Henan held a job fair for students majoring in hydro-electricity. But when Chen Fengxin expectantly handed over his resume, it was not murmurs of approval he heard but these questions: "Are you from a village? Do you have any brothers and sisters?" If he was from a city, and especially if he was an only child (as city children are more likely to be), the recruiter was not interested. Chen was stunned.

A female representative of the hydro scheme explained to a local paper: "Students from cities and only children cannot endure the hardships incurred in the process of geological exploration. Brain drain is rife," she said, adding that parents of only children hope their offspring can stay close to them and not work too far away.

Just another hidden cost of China’s aggressive population control program.

Cross posted at my blog.