Newspaper article The Christian Science Monitor

New Deal for World Economy? Analysts Try to Focus on Outlines of `New World Order' as Seen through an Economic - Rather Than Political - Lens

Newspaper article The Christian Science Monitor

New Deal for World Economy? Analysts Try to Focus on Outlines of `New World Order' as Seen through an Economic - Rather Than Political - Lens

Article excerpt

ECONOMISTS and others are putting on their thinking caps about what historian Walter W. Rostow calls the "new world economic order" - the economic side of what President Bush calls the "new world order."

Greater freedom in Eastern Europe, political and economic turmoil in the Soviet Union, and now the Gulf war and its consequences in the Middle East have prompted some speculation as to the evolution of the world economic system.

Mr. Rostow, an economic historian at the University of Texas in Austin, sees a long-term evolution of power away from the United States and the Soviet Union. He says this diffusion of power, which could lead to chaos, requires the creation of a framework through which each country is "tamed" by the rule of law and order.

Nations must be given an "appropriate stature" without their having to try for it by shooting their way across borders, Rostow says, and Saddam Hussein "was sent among us to warn us of the task ahead."

With the end of the war, economists expect the attention of world leaders to return to domestic economic issues, the debt problems of developing nations, and managing a successful conclusion to the Uruguay Round of trade negotiations, which resumed earlier this month after their collapse last December. In the US, the unemployment rate jumped last month to 6.5 percent from 6.2 percent in the previous month.

Also, European leaders will be concentrating more on strengthening the 12-nation European Community and working out ties with the European Free Trade Area and with the east European nations. The US, Mexico, and Canada will devote more effort to negotiating a North American free trade area. And the US will need to explore further its Enterprise for America Initiative with Latin American nations.

Rostow suggests that in this decade Germany, Japan, India, and perhaps even Indonesia should be made permanent members of the United Nations Security Council. With the US, Britain, China, France, and the Soviet Union, the new members would attempt to exercise greater control in world hot spots.

In the Middle East, Rostow calls for a political settlement, more arms control, and a development bank financed out of the region's oil revenues to spread prosperity to the oil-poor nations in the region. (US debates energy strategy: Page 8.)

He hopes that the radical nations in the region will "realize there is not much to be gained by the old-fashioned use of force in the world that has emerged."

John Sewell, president of the Overseas Development Council, suggests that the US could use much of the $20 billion in the Department of Defense budget allocated to "national security and promoting American interests abroad" for economic development and humanitarian purposes around the globe. …

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