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White House the World Birdsall THE WHITE HOUSE AND THE WORLD THE AND WHITE HOUSE THE Birdsall THE Each day brings fresh evidence that Americans’ well-being is linked to the lives of others around the world as never before. Accelerating advances in technology and the creation of new knowledge offer undreamed-of opportunities. Yet global poverty, inequality, disease, and the threat of WHITE HOUSE rapid climate change threaten our hopes. How will the next U.S. president tackle these global challenges? AND The White House and the World shows how modest changes in U.S. policies could greatly improve the lives of poor people in developing countries, thus fostering greater stability, security and prosperity globally and at home. THE WORLD Center for Global Development experts offer fresh perspectives and practical advice on trade policy, migration, foreign aid, climate change, and more. In an introductory essay, CGD President Nancy Birdsall explains why and how A Global Development Agenda the next U.S. president must lead in the creation of a better, safer world. The White House and the World will be invaluable to anybody interested in for the Next U.S. President improving U.S. foreign policy in the 21st century. Praise for the Center for Global Development “The Center for Global Development has a track record of providing impor- tant insights into how the United States can improve global development policy and thereby tackle some of the world's most intractable problems. This book continues that tradition and helps advance our understanding about how the next administration can improve a critical arm of our global engagement.” —Sen. Robert Menendez (D-NJ) “CGD’s work is always rigorous and very often useful to us in government. Their combination of independence and high quality makes it a place to turn to for new ideas and sound analysis.” —Bobby Pittman Jr., Senior Director and Special Assistant to President Bush for African Affairs at the National Security Council “I commend the Center for its excellent initiatives to raise the profile of development issues and to contribute ideas and solutions to the many challenges of development.” —Kofi Annan, former United Nations Secretary-General “CGD occupies the well-reasoned middle-ground these days between the anti-globalists and the doctrinaire cheerleaders for free markets, free trade and free flows of capital.” —The Washington Post Edited by Nancy Birdsall Center for Global Development CGD The White House and the World A Global Development Agenda for the Next U.S. President Nancy Birdsall, editor Center for Global Development Washington, D.C. Copyright © 2008 CENTER FOR GLOBAL DEVELOPMENT 1776 Massachusetts Avenue, N.W. Washington, D.C. 20036 www.cgdev.org Th e White House and the World: A Global Development Agenda for the Next U.S. President may be ordered from: BROOKINGS INSTITUTION PRESS c/o HFS P.O. Box 50370 Baltimore, MD 21211-4370 Tel.: 800/537-5487, 410/516-6956 Fax: 410/516-6998 Internet: www.brookings.edu All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission in writing from the Center for Global Development. Th e views expressed in this volume are those of the authors and should not be attributed to the board of directors or funders of the Center for Global Development. Library of Congress Cataloging-in-Publication Data Th e White House and the world : a global development agenda for the next U.S. president / Nancy Birdsall, editor. p. cm. ISBN-13: 978-1-933286-24-2 (alk. paper) ISBN-10: 1-933286-24-5 (alk. paper) 1. United States—Foreign economic relations—Developing countries. 2. Developing countries—Foreign economic relations—United States. 3. Economic assistance, American—Developing countries. I. Birdsall, Nancy. II. Title. HF1456.5.D44W55 2008 2008012536 338.91'73—dc22 Editing and typesetting by Communications Development Incorporated, Washington, D.C. Reprinted 11/08 Th e Center for Global Development is an independent, nonprofi t policy research organization dedicated to reducing global poverty and inequality and to making globalization work for the poor. Th rough a combination of research and strategic outreach, the Center actively engages policymakers and the public to infl uence the policies of the United States, other rich countries, and such institutions as the World Bank, the International Monetary Fund, and the World Trade Organiza- tion to improve the economic and social development prospects in poor coun- tries. Th e Center’s Board of Directors bears overall responsibility for the Center and includes distinguished leaders of nongovernmental organizations, former offi cials, business executives, and some of the world’s leading scholars of devel- opment. Th e Center receives advice on its research and policy programs from the Board and from an Advisory Committee that comprises respected develop- ment specialists and advocates. Th e Center’s president works with the Board, the Advisory Committee, and the Center’s senior staff in setting the research and program priorities and approves all formal publications. Th e Center is supported by an initial signifi cant fi nancial contribution from Edward W. Scott Jr. and by funding from philanthropic foundations and other organizations. Board of Directors Edward W. Scott, Jr.* José Angel Gurría Trevino Dani Rodrik** Chairman James A. Harmon William D. Ruckelshaus Nancy Birdsall* Enrique V. Iglesias S. Jacob Scherr President Kassahun Kebede Belinda Stronach Carol J. Lancaster Lawrence H. Summers Bernard Aronson* Susan B. Levine* Adam Waldman* C. Fred Bergsten* Nora C. Lustig Honorary Members Jessica P. Einhorn M. Peter McPherson John L. Hennessy Timothy F. Geithner Ngozi Okonjo-Iweala Sir Colin Lucas David Gergen Th e Honorable Paul H. Robert S. McNamara Th omas R. Gibian* O’Neill Amartya K. Sen Bruns Grayson* John T. Reid* Joseph E. Stiglitz *Member of the Executive Committee **Ex offi cio, chair of Advisory Group Advisory Group Masood Ahmed David de Ferranti Kenneth Prewitt Abhijit Banerjee Kristin Forbes Dani Rodrik Pranab Bardhan Carol Graham David Rothkopf Jere Behrman J. Bryan Hehir Federico Sturzenegger Th omas Carothers Simon Johnson Robert H. Wade Anne Case Anne Krueger John Williamson Angus Deaton David Lipton Ngaire Woods Kemal Dervis Mark Medish Ernesto Zedillo Esther Dufl o Deepa Narayan Peter Evans Rohini Pande v Contents Preface ix Acknowledgments xi Introduction Righting the Th ree-Legged Stool: Why Global Development Matters for Americans and What the Next President Should Do about It Nancy Birdsall 1 Harnessing U.S. Technology and Business 1 Healthy Foreign Policy: Bringing Coherence to the Global Health Agenda Ruth Levine 43 2 Global Warming: An Opportunity for Greatness David Wheeler 63 3 Power and Roads for Africa: What the United States Can Do Vijaya Ramachandran 91 4 Foreign Direct Investment and Development Th eodore Moran 121 vii viii THE WHITE HOUSE AND THE WORLD 5 Getting the Focus Right: U.S. Leadership in the Fight against Global Corruption Dennis de Tray and Th eodore Moran 141 6 Integration in the Americas: One Idea for Plan B Nancy Lee 171 Better Trade and Migration Policies 7 U.S. Trade Policy and Global Development Kimberly Ann Elliott 185 8 Tripping over Health: U.S. Policy on Patents and Drug Access in Developing Countries Carsten Fink and Kimberly Ann Elliott 215 9 Don’t Close the Golden Door: Making Immigration Policy Work for Development Michael Clemens and Sami Bazzi 241 Aid and Security 10 Modernizing U.S. Foreign Assistance for the Twenty-fi rst Century Sheila Herrling and Steve Radelet 273 11 Opportunities for Presidential Leadership on AIDS: From an “Emergency Plan” to a Sustainable Policy Mead Over 299 12 U .S. Policy toward Fragile States: An Integrated Approach to Security and Development Stewart Patrick 327 13 Aid for Education: More Bang for the Buck Kate Vyborny and Nancy Birdsall 355 6 Integration in the Americas: One Idea for Plan B Nancy Lee Once there was a shared strategy in the Americas to boost growth and spread its gains. April 2008 marked the tenth anniversary of the launch of negotiations in Santiago, at the second Summit of the Americas, for the Free Trade Area of the Americas, the plan to unite a market of 880 million peo- ple. Now support for the Free Trade Area of the Americas has eff ectively collapsed—a victim of the deadlocked Doha Round, globalization fears, ideological diff erences, regional leadership rivalries, the distractions of fi nancial instability, and the lure of subregional approaches. Should the United States care about the demise of a regionwide integration strategy? Th is chapter argues that it should, that the risks of failure to address extreme regional inequality (between and within countries) are increasingly evident. Warning lights are fl ashing in the hemisphere. Po- litical polarization and the steep rise in crime and urban violence present real threats to stability in large and small countries. Market democracies in the region need an eff ective regional strategy to help them spread the benefi ts of growth to large excluded and disaff ected populations. Th e lack of such a strategy helps create a vacuum that some seek to fi ll with undemocratic, statist models that risk a giant leap backward. Nancy Lee is a visiting fellow at the Center for Global Development. For helpful comments and encouragement, she is grateful to Nancy Birdsall, Kim Elliott, Vijaya Ramchandran, and Dennis de Tray at the Center for Global Development; Peter Hakim at the Inter-American Dialogue; and Mark Medish at the Carnegie Endowment for International Peace. For ex- cellent research assistance, she thanks Cindy Prieto and Selvin Akkus at the center and Julia Sekkel at the Inter-American Dialogue. 171 172 THE WHITE HOUSE AND THE WORLD Th e experience of Europe and East Asia demonstrates that regional in- tegration matters fundamentally for competitiveness, growth, and income convergence.
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