Hi-Fis and Low Gears: Manufacturing’s Bounce in the U.S.


Tim MahedyBy Tim Mahedy

(Version in Español)

It’s no secret that the manufacturing sector in the United States has been in decline for the past three decades. But a strong rebound in durable goods, such as cars and electronics, has helped revive the manufacturing sector and has supported the post-recession recovery.

As of early 2013, manufacturing output was only 4 percentage points below its pre-recession peak. Comparing across countries, the United States has performed more strongly than most of its G-7 counterparts, with the exception of Germany. Yet, the recovery in Germany has stagnated since mid-2011, while the U.S. recovery continues to gain steam.

Is this strong rebound in U.S. manufacturing here to stay, or just a temporary phenomenon?

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Escaping the Resource Curse


By Mauricio Villafuerte

(Version in عربي)

It reads like a script for a Hollywood movie—a poor protagonist happens upon an opportunity that has the potential of bestowing riches, but an evil curse threatens to spoil it all.

Unfortunately, it’s not a movie script. The scenario plays out repeatedly in many parts of the real world all the time. For many developing countries, managing natural resources and the increased revenues they bring is a tough haul.

Cue the extensive literature on the “resource curse” and the lack of consensus on how to run fiscal policy and manage budgets in resource-rich countries.

In some respects, this is like the “all-too-similar” sequel, because the tribulations associated with how to best manage natural resources, such as oil, minerals, and gas, seem to endure so that resource-rich developing countries are never quite free of them.

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