This article investigates the links between trade policy and economic growth in a panel of 57 countries between 1970 and 1989. It develops a new measure of trade policy openness based on the policy component of trade shares, using it in a simultaneous equations system to identify the effect of trade policy on several determinants of growth.

Following the end of the Cold War, the United States and its allies recognized that it was in their vital security interests to promote stable transitions in the countries of Central and Eastern Europe (CEE) and the New Independent States (NIS) of the former Soviet Union. For the most part, such transitions would depend on the efforts of the states in transition themselves, including many that had been newly formed. However, one way in which the Western nations could help was by economic assistance -- both financial and technical.

The most abundant and efficacious form of financing will eventually be direct investment by Western private industry combined with indigenous investment in the countries; however, many of the transitioning countries, particularly those of the NIS did not have many attractive investment targets, with the possible exception of the natural resources sector. Recognizing this, the Western countries established a variety of unilateral and multilateral mechanisms to provide interim financing. These mechanisms utilized existing multilateral institutions such as the World Bank Group and the International Monetary Fund as well as existing unilateral institutions such as the United States' Export-Import Bank, the Overseas Private Investment Corporation, and the Trade and Development Agency. The charters and agendas of several existing institutions were expanded to address the specific issues in CEE/NIS. In addition, they established new multilateral institutions such as the European Bank for Reconstruction and Development and unilateral institutions such as several enterprise funds set up by the United States and TACIS (Technical Assistance to the Commonwealth of Independent States) set up by the European Union.

In conjunction with these sources of finance the Western countries also initiated an extensive series of programs designed to address specific economic development and security issues in the region. These programs provided their own funding for projects, provided extensive technical assistance, and in some cases were designed to attract and work with Western private industry. One such program is the Nuclear Cities Initiative (NCI), which is managed by the U.S. Department of Energy. NCI's primary objective is to help prevent the flow of critical weapons technology and personnel from Russia to countries aspiring to acquire nuclear weapons. NCI's approach is to assist Russia in downsizing its nuclear weapons complex by creating sustainable, non-military employment for nuclear weapon specialists in Russia's closed nuclear cities. NCI is designed to build infrastructure necessary to attract private investment and to facilitate the efforts of private investors, thereby leveraging NCI's own budget.

Many of the sources of finance cited herein require a Western company as a strategic partner and co-investor. Thus the missions of NCI and these financial sources are highly complementary. Recognizing this, Stanford's Center for International Security and Cooperation, under contract to NCI and under subcontract to the University of California Lawrence Livermore National Laboratory, undertook a project to assemble information on many sources of finance that were applicable to NCI's mission, particularly those that are at least partially capitalized by the United States Government (USG). The intent was to make this information available to NCI partners to facilitate the establishment of ventures co-financed by NCI, the Russian Federation, private Western industry, and the sources described herein. While this research was performed for the purposes of NCI, much of the data are generally applicable to other projects seeking financing in Russia.

The rate of investment sufficient to provide developing Asia with a reasonably adequate supply of electricity is immense, ranging from a World Bank estimate of 2000 megawatts (MW) each month (which translates into an annual investment of about $35 billion per year) to even higher estimates. All of the larger countries of developing Asia have been looking for foreign direct investment (FDI) to provide a significant amount of the needed capital. In 1996, financial closings for new power projects in developing Asia reached $13.7 billion, or almost 40 percent of the lower range of the estimated requirement. Although data on the foreign share of the monetary value of financial closings is not available, it is likely to be over 80 percent. Thus, the foreign share of total direct investment in power projects in developing Asia appeared to have been around 30 percent before the East Asian currency crisis.

At the Gleneagles summit in July 2005, the heads of state from the G-8 countries - the United States, Canada, France, Germany, Italy, Japan, Russia and the United Kingdom - called on the International Monetary Fund (IMF), the World Bank and the African Development Bank to cancel 100 percent of their debt claims on the world's poorest countries. The world's richest countries have agreed in principle to forgive roughly $55 billion dollars owed by the world's poorest nations. This article considers the wisdom of the proposal for debt forgiveness, from the standpoint of stimulating economic growth in highly indebted countries. In the 1980s, debt relief under the "Brady Plan" helped to restore investment and growth in a number of middle-income developing countries. However, the debt relief plan for the Heavily Indebted Poor Countries (HIPC) launched by the World Bank and the International Monetary Fund in 1996 has had little impact on either investment or growth in the recipient countries. We will explore the key differences between the countries targeted by these two debt relief schemes and argue that the Gleneagles proposal for debt relief is, at best, likely to have little effect at all. Debt relief is unlikely to help the world's poorest countries because, unlike the middle-income Brady countries, their main economic difficulty is not debt overhang, but an absence of functional economic institutions that provide the foundation for profitable investment and growth. We will show that debt relief may be more valuable for Brady-like middle-income countries than for low-income ones because of how it leverages the private sector.

This collection of papers stems from a recent World Bank project focused upon the contentious issue of whether government has played any positive role in the success of the so-called "high-performing" Asian economies. It goes beyond the influential World Bank volume The East Asian Miracle to chart a middle ground that recognizes diversity among the different East Asian economies, as well as the evolutionary nature of government intervention.