Search

The US should turn to Europe for lessons on planning and implementing fiscal constraints as the relative prosperity being experienced by the US would not last forever. European legislators' way of dealing with political and economic reforms in preparation for the European Monetary Union may be used by American counterparts to solve budget issues. Social problems cannot be put aside because of the good economy in 1998. When the next recession occurs, US leaders may have to look into Europe to face the difficulties.

Republicans and Democrats are having trouble in the debate on whether to grant Pres Bill Clinton fast-track authority or not. The factions have reportedly been linked to electioneering and intense lobbying by interest groups. The White House has also found trouble in finding backers for the bill that would extend trade negotiating rights of the President.

The Caribbean region is pressured to create more creative trading practices to remain competitive in the trading business and respond to the changing patterns in the international trade markets. The pressure is brought on by the emergence of the North American Free Trade Agreement, which will give Mexico an advantage over the US and Canadian export markets.

Chinese officials are concerned about the rapid rate of economic growth compounded by increasing inflation. Premier Li Peng's prediction of a nine percent economic growth rate for 1994 has been contradicted by state economists, who predict a GDP growth of 12% instead. Consumers have also been alarmed by a rise in food prices, triggered by inadequate agricultural production and shrinking farm acreage, compounded by China's rapid population increases. Government officials are worried that inflation might result in a wage explosion and the subsequent damage caused by a wage-price spiral.