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1. Euro Zone Nations Wrestle With a 'Trilemma' (Rodrik) New York Times
2. Reinhart Named Professor at Kennedy School (Reinhart) Harvard Magazine
3. Beijing migrant worker-rockers seeking HK help (Saich) South China Morning Post
4. Pulling the plug on nation’s security (Kayyem) Boston Globe
5. Why Brazilian Oil Struggles to Catch Fire Wall Street Journal
6. How About a Free-Trade Deal With Europe? (Dobriansky) Wall Street Journal
Euro Zone Nations Wrestle With a 'Trilemma'
… According to the trilemma theory, drawn in part from studies of the economic crises of 1930s and 1940s, it is possible to have two of three things: deep economic integration, democratic politics and autonomous nation-states.
But under the theory, it is not possible to have all three.
“To remain in the euro zone under current conditions, countries like Greece, Italy and Spain are increasingly being forced to give up decision-making authority to rules imposed by Germany,” said Dani Rodrik, the father of the trilemma theory.
“This is creating democratic stresses at home,” he said. “Ultimately, externally imposed austerity becomes incompatible with democracy at home.”
Mr. Rodrik, professor of international political economy at the John F. Kennedy School of Government at Harvard, first wrote about the trilemma idea in 2000, well before the euro zone debt crisis began. But he said the euro problems presented a perfect illustration of his theory.
It is much more than an obscure academic debate. Almost everyone now accepts that much closer economic integration is needed to save the euro.
Reinhart Named Professor at Kennedy School
International finance expert Carmen M. Reinhart, coauthor with Cabot professor of public policy Kenneth Rogoff of This Time is Different: Eight Centuries of Financial Folly, has been named Zombanakis professor of the international financial system at Harvard Kennedy School (HKS), effective July 1. Previously the Weatherstone Senior Fellow at the Peterson Institute for International Economics, Reinhart formerly served as professor of economics and director of the Center for International Economics at the University of Maryland, and has also held positions at the International Monetary Fund. She has also been chief economist at investment bank Bear Stearns. She earned her doctorate from Columbia University.
Beijing migrant worker-rockers seeking HK help
A folk rock band from Beijing has called on the Hong Kong media to support its efforts to save a school for migrant workers' children it set up in the capital. …
Dr Anthony Saich, professor of international affairs at Harvard Kennedy School, said pressure from local schools and residents to push out migrant families was another factor.
"It is problematic for long-term social stability," said Saich. "Unless China effectively integrates migrants and their children into public services such as education, the leadership will face a second and third generation of migrants who feel even more like second-class citizens. This could lead to the kind of unrest that we have witnessed in other cities around the world."
Pulling the plug on nation’s security
WELCOME BACK, D.C., it’s good to hear from you. By now, hopefully, you and your neighbors in the mid-Atlantic area are back online after last month’s violent storms left about 3 million people in the dark and, with downed power lines and fallen trees, delayed the restoration of power. Since then, to catch you up, Tom Cruise’s Oprah couch-jumping testament to love was put in a new light when Katie Holmes filed for divorce; CNN’s Anderson Cooper came out of the closet to a worldwide yawn; and the nation celebrated its independence from an unresponsive and monopolistic source of power (and it wasn’t the electric utilities).
The ongoing power outages are an epic failure, however, not only for those who suffer in the heat but for the rest of the nation and the world looking on, aghast. That our capital is in the dark is akin to riots in London or debilitating strikes in Paris. It says something about a nation whose projection of strength is an essential part of its security strategy. There is little national power with no power in the nation’s capital.
Why Brazilian Oil Struggles to Catch Fire
Brazil floats on a sea of oil. So why have its oil stocks sunk so badly?
It is nearly six years since initial discoveries of vast reserves buried under a thick layer of salt beneath the seabed off Brazil's coast. State-controlled Petroleo Brasileiro, or Petrobras, is sole operator, with a minimum 30% stake in all so-called "pre-salt" projects. In a recent study from Harvard's Kennedy School, Brazil ranks fourth in the world in terms of the potential to boost oil output this decade. Yet Petrobras' stock price is now pretty much where it was in October 2006, lagging both the Brazilian market and the U.S. exploration-and-production sector.
How About a Free-Trade Deal With Europe?
Europe's ongoing economic crisis and the evident discord among its key leaders have profound implications for the United States. Despite a new agreement during the most recent European Union summit last month, the crisis will likely endure for some time, with unpredictable political and economic consequences. Visionary and determined American leadership is essential both to help some of our closest and oldest allies and to protect our national interests, domestically and internationally.
The deep links between the American and European economies are not always fully appreciated. According to a recent study by the German Marshall Fund, European investment amounted to 72% of total foreign direct investment in the U.S. in 2010. U.S.-EU merchandise trade reached $632 billion in 2011.