| Globalization and Tax Competition
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Does globalization undermine the fiscal basis of the welfare state? The conventional wisdom believes so: open borders cause tax competition, which in turn leads to a race to the bottom in capital taxation. However, the data show that revenues from capital taxation are fairly stable in OECD countries. Some observers conclude from this that globalization does not pose much of a challenge to the welfare state. Philipp Genschel argues this conclusion is unwarranted because it overlooks that tax competition was not the only challenge facing welfare states during the 1980s and 1990s. There was also slow growth, rampant unemployment, and high levels of precommitted spending. "Globalization, Tax Competition, and the Fiscal Viability of the Welfare State" is published by the Max Planck Institute for the Study of Societies. | By Max Planck Institute for the Study of Societies., Germany. | Macro Economic Policy Resource. |
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| Economic Growth in the EU "
María Garcia-Vega and José Herce investigate whether economic integration promotes interdependent growth among countries. They conclude that this has been indeed the case for advanced OECD countries and that, for those countries belonging to the EU, through successive enlargements, the effect has been even stronger. More precisely, if every (trade) partner of a given country experiences an extra growth of 1 percentage point, this economy will profit from an extra 0.5 point, and if this country belongs to the EU it will have an additional increase of its rate of growth of 0.2 points. Both figures can be interpreted as growth externalities with the latter suggesting that an integration process like the one followed by the EU has an (positive) effect on growth. "Interdependent Growth in the EU: The Role of Trade" is published by ENEPRI. | By ENEPRI, Europe. | Macro Economic Policy Resource. |
| Tsunami Response: Lessons Learned. On February 10, 2005, Oxfam America President Ray Offenheiser presented testimony to the Senate Foreign Relations Committee in which he outlined the lessons learned from the tsunami disaster response to date and called for the delivery of effective and appropriate aid to the tsunami survivors. Foremost in his recommendations are that aid programs be designed with input from the people whom they are intended to benefit, and that all programs meet internationally accepted Sphere standards for disaster relief. | By Oxfam USA, US. | International Development Policy Resource. |
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