Word: exportability
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...shaken boardrooms from Wall Street to Tokyo with his defiance of the multinational banks that hold many of Latin America's burdensome loans. His July inauguration made front-page news in Western capitals when he used it to announce that Peru would spend no more than 10% of its export earnings for interest and principal payments on its $14 billion foreign debt. Said he, with a typical rhetorical flourish: "President Alan García, may the world hear me, knows that Peru has a first great creditor--its own people...
Despite a declining dollar on world currency markets, which makes foreign products more expensive in the U.S., Western Europe's trade surplus is expected to rise from last year's $25 billion to $40 billion. If, as expected, the European export boom eventually cools down, the gap can easily be filled at home by rising consumer demand and increased industrial investments. Even the painful level of unemployment will probably decline slightly in the year ahead, partly as a result of an increase in small, new businesses. Nonetheless, some 10.5% of the labor force remains jobless, and this continues...
...times ahead for Europe. Giersch, for one, saw a Continent divided between a majority of employed and a significant minority of jobless; between skilled workers and the unskilled; between regions that are prospering, mainly those located around the Alps, and regions whose resource-based industries are in rapid decline. Export industries have been doing well, Giersch noted, while others, like housing, have suffered. What Europe still lacks, according to Giersch, is a flexible labor force that would be willing in some cases to accept lower pay and move more easily to new jobs. Without that, he said, it will...
...reducing dependence on oil. Mexico needs to develop very aggressively its capacity to export goods other than oil. We need foreign investment to increase export capacity and [to enable us] to absorb modern technology. This goal requires considerable internal efforts and a climate abroad that will encourage investments in export products. No matter how hard we try in Mexico to increase exports, if the large markets do not give access to our export goods, the investor will not feel sufficiently encouraged to make the investments...
...some of their wherewithal--to follow the Soviet pattern of behavior outside their borders. Elements of such a deal are at hand in the Contadora proposal, which calls for the reduction of the Sandinista armed forces, the withdrawal of Soviet and Cuban military advisers and a ban on the export of revolution. The Sandinistas have hinted they might be willing to accept something along those lines. Even some Administration officials believe the Sandinistas might pay that price to get the contras off their--backs...