The Foreign Service Journal, April 2007

ism, especially by developed coun- tries, remains a huge obstacle to glob- alization and poses a major threat to the Doha Round. It takes many forms, including non-tariff trade bar- riers such as technical barriers and rules of origin. Even those countries that abolish tariffs are quick to estab- lish and enforce non-tariff barriers to protect certain industries. “The United States and Europe have perfected the art of arguing for free trade while simultaneously work- ing for trade agreements that protect themselves against imports from developing countries,” Stiglitz notes. “The average European cow gets a subsidy of $2 a day; more than half of the people in the developing world live on less than that.” The Bush administration, in an effort to help the foundering Doha Round negotiations succeed, has pro- posed eliminating $10 billion in farm subsidies over the next five years. But whether these cuts will find their way into the new farm bill is dependent upon politics more than economics. Stiglitz also dissents from the pre- vailing wisdom among economists and policymakers regarding intellectual property rights. When the Uruguay Round’s set of multilateral trade rules was signed in 1994, it included an agreement on Trade-Related Aspects of Intellectual Property Rights. But in Stiglitz’ view, TRIPs pose serious ob- stacles to trade and do not belong in a trade agreement. In a chapter discussing the crush- ing debt burden many developing countries carry, Stiglitz equates over- borrowing with overlending, and says developed countries have an obliga- tion to assist those burdened with debt, especially when it is not a result of government corruption. “The global financial system is not working well,” Stiglitz concludes. He recommends a better capitalized glo- bal reserve system based on “global greenbacks,” a type of world currency. Agree or not, Stiglitz is a policy- minded economist with a firm grasp of the problems of our global econo- my and detailed solutions to them. Jim Patterson, a former Foreign Ser- vice officer, is an economist and free- lance journalist. His work has appear- ed in the San Francisco Chronicle , New York Times and The Hill , among other publications. A P R I L 2 0 0 7 / F O R E I G N S E R V I C E J O U R N A L 73 B O O K S * per night, single or double occupancy subject to availability Y our search is over, choose a hotel where the federal per diem rate is available year-round. * Luxurious Suites All rooms with full size kitchen & stove tops Fitness center Complimentary in-room coffee Full service restaurant Parking available Across fromMain State White House, The Mall, and Metro Foggy Bottom station (blue & orange lines) within walking distance Accommodations State Plaza Hotel 2117 E. St. NW Washington, DC 20037 Telephone: (800) 424-2859 (202) 861-8200 Parking Available Rated 1 / 2 by AAA www.stateplaza.com E-mail: reservations@stateplaza.com