Front Matter

Front Matter Page

EDITOR-IN-CHIEF: Camilla Lund Andersen

MANAGING EDITOR: Marina Primorac

SENIOR EDITORS

Gita Bhatt

Jacqueline Deslauriers

Ismaila Dieng

Natalie Ramírez-Djumena

James L. Rowe, Jr.

Rani Vedurumudi

ONLINE EDITOR: Marie Boursiquot

ASSISTANT EDITORS

Eszter Balázs

Niccole Braynen-Kimani

Maureen Burke

Bruce Edwards

Nadya Saber

PRINT/WEB PRODUCTION SPECIALIST

Lijun Li

EDITORIAL ASSISTANT: Robert Newman

COPY EDITOR: Lucy Morales

CREATIVE DIRECTOR: Luisa Menjivar

SENIOR GRAPHIC ARTIST: Michelle Martin

ADVISORS TO THE EDITOR

Bernardin Akitoby

Celine Allard

Bas Bakker

Steven Barnett

Nicoletta Batini

Helge Berger

Paul Cashin

Adrienne Cheasty

Luis Cubeddu

Alfredo Cuevas

Marcello Estevao

James Gordon

Thomas Helbling

Laura Kodres

Tommaso Mancini Griffoli

Gian Maria Milesi-Ferretti

Inci Otker-Robe

Laura Papi

Uma Ramakrishnan

Abdelhak Senhadji

Janet Stotsky

Alison Stuart

© 2016 by the International Monetary Fund. All rights reserved. For permission to reproduce any F&D content, submit a request via online form (www.imf.org/external/terms.htm) or by e-mail to copyright@imf. org. Permission for commercial purposes also available from the Copyright Clearance Center (www.copyright.com) for a nominal fee.

Opinions expressed in articles and other materials are those of the authors; they do not necessarily reflect IMF policy.

Subscriber services, Changes of address, and Advertising inquiries

IMF Publication Services

Finance & Development

PO Box 92780

Washington, DC, 20090, USA

Telephone: (202) 623-7430

Fax: (202) 623-7201

E-mail: publications@imf.org

Finance & Development is published quarterly by the International Monetary Fund, 700 19th Street NW, Washington DC 20431, in English, Arabic, Chinese, French, Russian, and Spanish.

English edition ISSN 0145-1707

Postmaster: send changes of address to Finance & Development, International Monetary Fund, PO Box 92780, Washington, DC, 20090, USA. Periodicals postage is paid at Washington, DC, and at additional mailing offices. The English edition is printed at Dartmouth Printing Company, Hanover, NH.

F&D

FINANCE & DEVELOPMENT A QUARTERLY PUBLICATION OF THE INTERNATIONAL MONETARY FUND

December 2016 · Volume 53 · Number 4

Front Matter Page

FEATURES

GLOBALIZATION: INSIDERS, OUTSIDERS

  • Globalization Resets

  • The retrenchment in cross-border capital flows and trade may be less dire than it seems

  • Sebastian Mallaby

  • Leave Zombies Be

  • The stalled march toward trade liberalization is just as well

  • Paul Krugman

  • Get on Track with Trade

  • Trade raises productivity but may hurt some unless policies redistribute the benefits

  • Maurice Obstfeld

  • A Two-Way Street

  • Policymakers must address economic and political issues to strengthen globalization

  • David Lipton

  • New Concept, Old Reality

  • Globalization is a recent term, but the internationalization of markets, people, ideas, and cultures is nothing new

  • Harold James

  • Double-Edged Sword

  • A more integrated global economy is affecting workers around the world

  • No Worker Left Behind

  • The right policy mix means good jobs at home and abroad

  • Frances O’Grady

  • A Spoonful of Sugar

  • High- and low-skill immigration both raise incomes and confer broad benefits on advanced economies

  • Florence Jaumotte, Ksenia Koloskova, and Sweta Saxena

  • Upside, Downside

  • U.S. policy should carry the ball for globalization by turning trade’s gross losers into net winners

  • Alan S. Blinder

  • For Richer, for Poorer

  • International trade can widen inequality in developing economies

  • Nina Pavcnik

  • Zulu Sushi and Other Hopes

  • Globalization has offered little to Africa

  • Kumi Naidoo

  • Hollowing Out

  • The U.S. middle class is shrinking as households climb into higher, or slip into lower, income brackets

  • Ali Alichi

ALSO IN THIS ISSUE

  • Flight from Quality

  • Argentine wine exports tell a tale of consumers’ shift to lower-quality goods after the global financial crisis

  • Natalie Chen and Luciana Juvenal

  • Shocks to the Purse

  • Governments must understand and manage risks to public spending and debt

  • Benedict Clements, Xavier Debrun, Brian Olden, and Amanda Sayegh

  • Set the Tone at the Top

  • Central bank boards benefit from the same critical reviews as company boards

  • Ashraf Khan

  • Letter to the Editor

DEPARTMENTS

  • People in Economics

  • Ground Breaker

  • Ismaila Dieng profiles Leonard Wantchekon, a former activist who plans to train the next generation of African economists

  • Picture This

  • Food Evolution

  • Increased agricultural efficiency and productivity are critical for food security

  • Maria Jovanovic

  • Currency Notes

  • Mountains of Cash

  • Switzerland bucks the global trend by maintaining a cash tradition

  • David Pedroza

  • Book Reviews

  • The Fix: How Nations Survive and Thrive in a World in Decline, Jonathan Tepperman Gaining Currency: The Rise of the Renminbi, Eswar Prasad

  • The Fourth Industrial Revolution, Klaus Schwab

Illustration: pp. 38, 39, iStock.

Photography: cover, Martha Rial; pp. 2, 4, Jim Graham; p. 6, mf-guddyx/Getty Images; p. 8, François Guillot/AFP/Getty Images; p. 11, Paul Vallejos/El Comercio de Peru/Newscom; p. 12, Luke Sharrett/Bloomberg via Getty Images; p. 17, IMF photo; p. 18, Bain News Service/Interim Archives/Getty Images; p. 20, William England/Getty Images; p. 22, Martha Rial; p. 23, Anastasia Vishnevskaya; p. 24, Anastasia Vishnevskaya, Tiego Tiemtoré; p. 25, courtesy of Convergys One; p. 26, Alberto Ñiquen Guerra; p. 27, Stefan de Vries; p. 28, Jess Hurd/reportdigital.co.uk; p. 30, iStock, Lee Besford/Fairfax Media/Getty Images; p. 33, Wilford Harewood/ The Hale Institute, Emory University; p. 35, Andrew Holbrooke/Corbis via Getty Images; p. 37, Greenpeace; p. 40, Kay Lee Davies/Getty Images; p. 43, Daniel Garcia/AFP/Getty Images; p. 46, Michele Linina/Bloomberg via Getty Images; p. 47, Fabrice Coffrini/AFP/Getty Images, Swiss National Bank; p. 48, Lisa Wiltse/ Corbis via Getty Images; p. 51, Ezra Bailey/Getty Images; pp. 54-56, IMF photo.