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World Economy Highlights
U.S. Growth
First quarter 2004 GDP grew at an annual rate of 4.2%. In reality, this is good economic news. Also job growth rate is up. ( Washington area very low unemployment.) Significance is that U.S. growth is good for global economy. This should help even poor countries.
World Bank/IMF Spring Meetings, April 24/25
Development was main theme; principal meeting was that of "Development Committee". There was lots of talk, not much action. The emphasis of the discussions was on "Millennium Development Goals" to help reduce poverty. There also was a recognition that HIPIC countries still are in trouble. Anti-bank/fund demonstrations took place but they were milder than recently. The bottom line: not much good for poor nations came out of the meetings.
European Union Expansion
May 1, 10 new member countries joined the EU: Estonia , Latvia , Lithuania , Poland , Czech Republic , Slovakia , Hungary , Slovenia , Malta , Cyprus . Already members were Ireland , UK , Denmark , Sweden , Finland , Netherlands , Belgium , Luxembourg , France , Germany , Austria , Portugal , Spain , Italy , and Greece . The EU now is larger than the U.S. and could be a strong competitor for leadership in the world economy - but not soon as many of the members still have serious economic problems themselves.
WTO Action on U.S. Cotton Subsidies
It is important to note that U.S. provides $3 billion subsidy to 25,000 cotton farmers. The result is overproduction and cheap prices to consumers. This hurts farmers in other - poor - countries. Brazil brought complaint to WTO which on April 26 issued ruling that declares subsidies illegal. The situation is complicated because this ruling and the response might set a precedent for other agricultural subsidies by developed countries. So there will be lots of legal hurdles to jump but the move is in the right direction to help farmers in poorer countries.
Submitted by Ed Dillery , Member of the International Economics Committee of the Commission on Peace. Comments: C Edward Dillery cedillery@juno.com
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