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Item Infrastructure for sustainable development: the role of national development banks(Boston University Global Economic Governance Initiative, 2016-10) Yuan, Fei; Gallagher, Kevin P.; Boston University Global Economic Governance InitiativeDevelopment banks are increasingly becoming relied upon to help finance sustainable infrastructure in the 21st century. Much of the emphasis has been on the role of the existing multi-lateral development banks (MDBs), but lesser attention has been paid to the role of national development banks (NDBs). To help fill this gap, Boston University’s Global Economic Governance initiative (GEGI) and the Brookings Institution’s Global Economy and Development program convened a Task Force on Development Banks and Sustainable Development to examine the extent to which development banks are becoming catalysts for achieving a climate friendly and more socially inclusive world economy.Item Repositioning Chinese development finance in Latin America: opportunities for green finance(Boston University Global Economic Governance Initiative, 2016-08) Yuan, Fei; Gallagher, Kevin P.; Boston University Global Economic Governance InitiativeChina is one of the largest creditors of Latin American and the Caribbean and has loaned the region more than $125 billion since 2005. However, the composition of China’s financing in the region has been concentrated in commodity related sectors that are currently on the decline. This policy brief notes the extent to which Chinese finance is concentrated in new green economy sectors, and finds that China is not taking full opportunity of the potential in this sector. Moreover, as the global commodity boom has declined, much of China’s investments in the region have been exposed to significant risk, including prominent environmental and social risks. Despite great strides whereby the Chinese government has established a series of guidelines on greening overseas investment over the last few years, China’s development banks and companies are lacking the policies and staffing to identify and fully mitigate such risks. This policy brief reviews the green profile of Chinese development finance in LAC and analyzes environment related risks and policies for Chinese overseas investment. It also outlines the opportunities of green finance in LAC and how blending instruments can mobilize green financial flows that are beneficial for both China and LAC.Item Investment provisions in trade and investment treaties: the need for reform(Boston University Global Economic Governance Initiative, 2015-09) Van Harten, Gus; Porterfield, Matthew C.; Gallagher, Kevin P.; Boston University Global Economic Governance InitiativeNations of the world are currently negotiating a variety of significant trade and investment treaties that cover upwards of eighty percent of the world economy. The Trans-Pacific Partnership (TPP) would further integrate a number of Pacific-Rim nations; the Trans-Atlantic Trade and Investment Partnership (TTIP) would be a treaty between the United States and European countries. The United States and others are also negotiating major bilateral investment treaties (BITs) with China and India.Item The Trans-Pacific Partnership and regulating capital flows: recommendations for strengthening proposed safeguards in the leaked TPP investment chapter(Boston University Global Economic Governance Initiative, 2015-04) Gallagher, Kevin P.; Viterbo, Annamaria; Anderson, Sarah; Boston University Global Economic Governance InitiativeThe leaked text of the Trans-Pacific Partnership (TPP) Agreement’s investment chapter reveals that negotiators are giving serious consideration to a safeguard intended to allow nations to regulate capital flows. It is critical that the safeguard be drafted in such a way that governments have sufficient policy flexibility to prevent and mitigate financial instability.Item Leaked TISA Financial Services text: A glimpse into the future of services liberalization(Boston University Global Economic Governance Initiative, 2014-07) Thrasher, Rachel Denae; Boston University Global Economic Governance InitiativeNews of the leaked draft text of the financial services annex of the Trade in Services Agreement (TISA) has enlivened critics and given them opportunity to discuss the substantive shortcomings of the agreement. This brief addresses how the leaked text could impact host state regulation of foreign direct investment (FDI). The TISA negotiations are attempting to make progress in services liberalization outside of the stalled WTO proceedings. Proponents recognize potential importance of such an agreement in today’s services-driven economy. However, services liberalization has not resulted in the same consistent growth as liberalizing goods trade did in the mid-20th century. Here I discuss four key provisions in the leaked draft text that threaten to destabilize the global economy by exceeding the scope and coverage of the existing services liberalization as applied to FDI. First, by extending the “right of establishment” to foreign financial service providers, they would be granted almost automatic entry into any host state that is a party to the agreement. Second, by establishing automatic coverage of any “new financial service, host states may not protect themselves from new, untested financial services in the future. Third, by prohibiting even nondiscriminatory measures, foreign financial services providers receive special protection from any regulatory measures that may affect them, even if they affect national providers similarly. Finally, under the guise of “transparency”, this new draft text gives foreign providers political power in the host state to shape future financial services regulation.Item Capital account liberalization in China: a cautionary tale(Boston University Global Economic Governance Initiative, 2014-07) Gallagher, Kevin P.; Ocampo, José Antonio; Zhang, Ming; Yongding, Yu; Boston University Global Economic Governance InitiativeThis policy brief synthesizes some of the main themes and policy recommendations discussed at a February 2014 workshop of the Pardee Task Force for Regulating Capital Flows at Boston University, and presented in this report, though the specific recommendations discussed in this brief are our own. The main message is that China would do well to draw lessons from both the economics literature and country experiences with capital account liberalization. Such an approach would guide China to adopt a carefully sequenced and cautionary approach to capital account liberalization.Item Safeguarding United States’ trade and investment treaties for financial stability(Boston University Global Economic Governance Initiative, 2013-08) Gallagher, Kevin P.; Boston University Global Economic Governance InitiativeThis policy brief discusses new evidence in the economics profession showing that capital controls are important macro-prudential measures that nations should have in their toolkit to prevent and mitigate financial crises. United States trade and investment treaties do not reflect this emerging consensus on capital controls. It is essential to rectify this problem as the United States finalizes its new moves forward on negotiations for a Trans-Pacific Partnership Agreement (TPP) and a bi-lateral investment treaty (BIT) with China.