Race to the Top: The Case for the Financial Stability Board

Race to the Top: The Case for the Financial Stability Board. Peterson Institute for International Economics. Policy Brief 17-12. Nathan Sheets. April 2017

The Financial Stability Board (FSB) has helped strengthen international financial regulatory standards, and as a result, the global economy—and hence the US economy—is more resilient and better able to support strong, sustainable, and balanced growth. The FSB has provided a framework to encourage other jurisdictions to toughen their regulatory regimes in line with steps taken in the United States. The FSB, however, does not have a perfect track record. Sheets suggests several areas where the governance, transparency, and the work program of the FSB could be improved. Supporters of the FSB’s work need to do a better job of presenting the case for international cooperation and showcasing the FSB’s accomplishments. The United States has played a leadership role in the FSB since the group’s inception, and important benefits have flowed to the US economy as a result. If it fails to maintain its leadership position, other countries will step in to fill the vacuum, resulting in rules and practices in the global economy and financial system that evolve in directions that are inconsistent with US national interests. [Note: contains copyrighted material].

[PDF format, 11 pages, 235.92 KB].

Twelve Economic Facts on Energy and Climate Change

Twelve Economic Facts on Energy and Climate Change: A Joint Report from the Hamilton Project and the Energy Policy Institute at the University of Chicago. Brookings Institution. March 27, 2017

The United States is in the midst of an energy revolution. The North American shale boom has unlocked vast quantities of natural gas, upending domestic electricity markets and enabling rapidly growing export volumes. American shale oil has sent global oil prices to their lowest sustained level in a decade and slashed U.S. imports in half. Meanwhile, the cost of renewable fuels like wind and solar electricity has plummeted, and they now account for the majority of new electric generating capacity.

Given this technological and economic context, the United States has perhaps never been better positioned to tackle the urgent threat of climate change. Though it is often discussed as a future problem, climate change caused by greenhouse gas (GHG) emissions is happening now. The concentration of carbon dioxide (CO2) in the atmosphere has increased from 317 parts per million in 1960 to more than 400 parts per million in 2016 (NOAA 2016), while the global average temperature has risen 1.6 degrees Fahrenheit (0.9° Celsius) above its 1960 level.

These changes are already impacting our everyday lives. Record-breaking temperatures, melting ice caps and more frequent coastal flooding, prolonged droughts, and damaging storms are just some of the intensifying risks we face as our planet continues to warm (IPCC 2007a). Despite these risks, the prices U.S. consumers pay for fossil fuels rarely reflect their costs, skewing consumption and investment choices away from cleaner fuels and discouraging the kinds of technological advancements that would allow the nation to make more efficient use of its energy resources. [Note: contains copyrighted material].

[PDF format, 24 pages, 2.19 MB].

How To End The Practice of Anonymously Held Corporations, One Year Post-Panama Papers

How To End The Practice of Anonymously Held Corporations, One Year Post-Panama Papers. Brookings Institution. Aaron Klein. March 27, 2017

One of the core tenets of America’s terrorism finance and anti-money laundering (AML) strategies is that financial institutions are under an affirmative requirement to ‘know your customers’—or KYC. The centrality can be seen in the ubiquity of the KYC acronym, often appearing alongside AML as a merged six-letter short hand.
Despite the importance of the tenet, however, corporations are still legally able to set-up anonymous shell entities that are entitled to open bank accounts and not required to provide information regarding the company’s beneficial owners—a shady practice that received international attention almost one year ago with the publication of the now-infamous Panama Papers. How can banks be expected to know your customer, when the customer is entitled to anonymity? What are the implications of anonymous ownership and of revising this practice? [Note: contains copyrighted material].

[HTML format, various paging].

Future of the Funds: Exploring the Architecture of Multilateral Climate Finance

Future of the Funds: Exploring the Architecture of Multilateral Climate Finance. World Resources Institute. Niranjali Manel Amerasinghe et al. March 2017

Multilateral climate funds play a key role in using public finance to help drive the economic and societal transformation necessary to address climate change. There is growing pressure for policymakers to make the architecture of funds more effective and coherent. This report examines seven key multilateral climate funds and recommends operational and architectural reforms to improve their ability to deliver low-emissions and climate-resilient development. [Note: contains copyrighted material].

[PDF format, 100 pages, 4.62 MB].

Kicking a Crude Habit: Diversifying Away from Oil and Gas in the 21st Century

Kicking a Crude Habit: Diversifying Away from Oil and Gas in the 21st Century. Peterson Institute for International Economics. Working Paper 17-2. Cullen S. Hendrix. February 2017

Since the 1970s, oil and gas production has enriched many countries but also made them dangerously dependent on these resources for export revenue and government finance. As a result, development experts have counseled such countries to diversify their economies and export bases. Virtually all oil- and gas-rich countries are—and have been for decades—rhetorically committed to this goal and have allocated significant resources to infant industry development and infrastructure projects to boost their economies. However, some—such as Nigeria, Qatar, and Russia—have been more successful than others. This working paper examines the fortunes of 40 oil- and gas-dependent economies during the 21st century commodity boom and finds that in spite of oil and gas prices nearly trebling, a sizable majority (75 percent) of these countries saw oil and gas rents decrease as a share of GDP. Yet many oil- and gas-rich economies continue to rely very heavily on these resources for export revenue. Internal economic diversification in the 21st century has been less a matter of correct policy formation and implementation and more a matter of factors that shape the policymaking environment, with the findings suggesting a difficult road to economic diversification for the Gulf Cooperation Council economies. [Note: contains copyrighted material].

[PDF format, 26 pages, 345.62 KB].

Delivering on Sustainable Infrastructure for Better Development and Better Climate

Delivering on Sustainable Infrastructure for Better Development and Better Climate. Brookings Institution. Amar Bhattacharya et al. December 23, 2016

2015 was a milestone year in which the world set clear and ambitious objectives through the Third International Conference on Financing for Development in Addis in July; the UN Summit in September that adopted the Sustainable Development Goals and the 2030 development agenda; and the COP21 in Paris in December that resulted in the milestone climate agreement. The three central challenges now facing the global community, as crystallized in 2015, are to reignite global growth, deliver on the sustainable development goals (SDGs), and invest in the future of the planet through strong climate action. At the heart of this new global agenda is the imperative to invest in sustainable infrastructure. [Note: contains copyrighted material].

[PDF format, 160 pages, 5.62 MB].

Global Risks Report 2017

Global Risks Report 2017. World Economic Forum. January 11, 2017.

The Global Risks Report 2017 features perspectives from nearly 750 experts on the perceived impact and likelihood of 30 prevalent global risks as well as 13 underlying trends that could amplify them or alter the interconnections between them over a 10-year timeframe.
2016 saw a crystallization of political risks that have led to the election of populist leaders, a loss of faith in institutions and increased strain on international cooperation. We should not be surprised by this: for the past decade, the Global Risks Report has been drawing attention to persistent economic, social and political factors that have been shaping our risks landscape.
This year’s report will examine the five greatest priorities facing the world in 2017, their interconnections and the actions necessary to avoid their harshest fall-out. [Note: contains copyrighted material].

[PDF format, 78 pages, 7.77 MB].