International Monetary Fund. External Relations Dept.
Is globalization the norm today? In his new book, Global Capitalism: Its Fall and Rise in the Twentieth Century, Harvard University Professor Jeffry A. Frieden explores the evolution of globalization since the 1880s, arguing that globalization is a choice formed by politics and policy decisions, rather than a fact of life. At a March 29 Book Forum sponsored by the IMF and moderated by Steven Pearlstein (Washington Post), panelists Harold James (Princeton University) and Virginia Haufler (University of Maryland) joined Frieden for a discussion about globalization.
This Netherlands’s 2005 Article IV Consultation reports that raising participation and productivity are important for boosting the economy potential and reducing pressures on the public finances in the face of population aging. The authorities have implemented or are in the process of implementing key reforms, including by tightening disability and unemployment benefits and early retirement arrangements, lessening inactivity traps, enhancing competition, and reducing the administrative burden. The financial system remains sound, resilient to potential adverse shocks, and well supervised.
Advanced economies have been witnessing a pronounced slowdown of productivity growth since the global financial crisis that is accompanied in recent years by a withdrawal from trade integration processes. We study the determinants of productivity slowdown over the past two decades in four closely integrated European countries, Austria, Denmark, Germany and the Netherlands, based on firm-level data. Participation in global value chains appears to have affected productivity positively, including through its effect on TFP when facilitated by higher investment in intangible assets, a proxy for firm innovation. Other contributors to productivity growth in firms are workforce aging, access to finance, and skills mismatches.