Regional integration among developing countries, revisited

Economic integration among developing countries became an important policy issue in the 1960s and early 1970s. But although intraregional trade increased in some trading groups, it remained a modest share of total trade. However, dramatic changes in the world economy have affected the environment for regional integration and cooperation. The formation of new, powerful economic and trading blocs, such as the single market of the European Community, the US-Canada free trade area, initiatives in the Pacific basin, and the transition to market economies in Central and perhaps Eastern Europe, seems to have fostered a trend toward new regionalism in the world economy. The virtual failure of the GATT negotiations may speed this up. To minimize economic losses and avoid marginalization, regional groups of developing countries must increasingly work out common positions and join one of the influential groups. Both factors require the gradual yet rapid dismantling of barriers to the free flow of production factors within regional groups. Obviously, intraregional trade cannot become an alternative to trade flows that are basically oriented to the world market. But in the 1990s, intraregional trade and economic relations are likely to grow parallel to, or even at a higher rate than, extraregional contacts.TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Economic Theory&Research,Environmental Economics&Policies,Trade and Regional Integration,Trade Policy

After the Crisis?

The economic crisis is not over yet, but it is already apparent that the developing, emerging countries are the big winners. The Hungarian economy is an open economy, and the issue of openness must be handled by securing new markets. However, it should be noted that 70 percent of Hungarian exports are destined for the European Union. Much greater emphasis should be placed on cooperation with MNCs, and it is also important to determine how to increase added value and how to eliminate the duality of the Hungarian economy. EU funds should be used to develop exports, join multinational networks, offset imports and improve competitiveness.economic crisis, competitiveness, export development

El dilema alemán: entre el liderazgo y la resistencia

Alemania ha acaparado una gran parte del protagonismo durante la gestión de la crisis económica. Su liderazgo es clave tanto para salir de la misma como para afrontar los futuros retos que se presentan a la UE. Independientemente de cualquier análisis puramente económico, el año 2010 ha demostrado que, en situaciones de dificultad excepcional, la llave para avanzar en la agenda europea posiblemente esté en Berlín, no en Bruselas ni en ninguna otra capital. Este análisis se concentra en el papel de Alemania durante la crisis. En particular, al vínculo existente entre Alemania y la UE, una relación que se ha vuelto mucho más compleja durante los últimos años, tanto desde el punto de vista económico como político, y que tiene implicaciones que conviene prever para el resto de los países miembros