The Ex-Im Bank in the 21st Century: A New Approach?

by Gary Clyde Hufbauer (Editor), Rita Rodriguez (Editor)

Overview

President Franklin Roosevelt created the Export-Import Bank of the United States (Ex-Im Bank) in 1934 to promote US trade in the midst of the Great Depression. At the outset, the Ex-Im Bank was instructed to supplement, not compete with, private sources of export finance. Historically, the Ex-Im Bank filled gaps when the private sector was reluctant to finance exports to politically uncertain areas—such as Latin America in the 1940s, Europe in the 1950s, and emerging markets more recently. Critics now ask whether—in the current era of vast private capital markets—significant financing gaps still exist that require government action. Put bluntly, should the Ex-Im Bank still be playing a role in financing US exports to emerging markets? Since the 1970s, the Ex-Im Bank has faced a new challenge: helping US exporters meet the financial competition from foreign export credit agencies (ECAs)—such as COFACE in France and the Export-Import Bank of Japan. The Ex-Im Bank has tried to cope with foreign ECAs in two different ways. One way is to negotiate common rules for export financing, under OECD auspices. The other is to match credit terms offered by foreign ECAs. A central question for the Ex-Im Bank in the 21st century is whether this dual strategy still provides a viable answer to an array of new forms of competition spawned by foreign ECAs.

The Institute for International Economics sponsored a conference in May 2000, both to honor the Bank's 65th anniversary and to look ahead at challenges facing the Ex-Im Bank. This volume—edited by former director of the Bank, Rita Rodriguez, and Institute Senior Fellow Gary Clyde Hufbauer—presents the papers from the conference. The papers both describe the Bank's current environment and identify new problems and opportunities in a global economy characterized by highly sophisticated private finance and intense competition for export markets. This volume provides an analytical basis for evaluating the Ex-Im Bank's future and suggests options that should be considered by President George W. Bush and Congress.

Contributors: Robert Rubin * James Harmon * Lorenz Schomerus * J. David Richardson * Renato Sucupira * Mauricio Moreira * William Cline * Peter Evans * Kenneth Oye * Allan Mendelowitz * William Niskanen * Robert Nardelli * John Lipsky * Daniel Zelikow *Robert Hormats * Hans Reich * A. Ian Gillespie * Fumio Hoshi * William Daley * James Leach * Lawrence Summers

Product Details

ISBN-13:	9780881323009
Publisher:	Peterson Institute for International Economics
Publication date:	01/01/2001
Series:	Special Report Series , #14
Pages:	304
Product dimensions:	6.00(w) x 9.00(h) x (d)
Age Range:	18 Years

About the Author

Gary Clyde Hufbauer, Reginald Jones Senior Fellow since 1992, was formerly the Maurice Greenberg Chair and Director of Studies at the Council on Foreign Relations (1996–98), the Marcus Wallenberg Professor of International Finance Diplomacy at Georgetown University (1985–92), senior fellow at the Institute (1981–85), deputy director of the International Law Institute at Georgetown University (1979–81); deputy assistant secretary for international trade and investment policy of the US Treasury (1977–79); and director of the international tax staff at the Treasury (1974–76).

Rita M. Rodriguez, former full-time director of the Export-Import Bank of the United States, was nominated to the position by President Reagan. She served as a Director of ENSCO International Inc. (Ensco Plc) from August 25, 2003 to May 20, 2013. She served as a Professor of Finance at the University of Illinois at Chicago from 1978 to 1982 and Assistant and Associate Professor of Business Administration at Harvard Business School from 1969 to 1978. She has authored numerous journal articles and books and articles. She has been a Fellow and Senior Fellow at the Woodstock Theological Center at Georgetown University since September 2002.

Table of Contents

1. "Ex-Im Bank: Overview, Challenges, and Policy Options"—Rita M. Rodriguez
2. "Ex-Im Bank and International Economic Policy Leadership" —Robert E. Rubin
3. "Perspectives on the Future of Ex-Im Bank" —James A. Harmon
4. "Export Credit Insurance: Business as Usual or a New Approach?"—Lorenz Schomerus
5. "Exports Matter...And So Does Trade Finance"—J. David Richardson
6. "Brazil’s Recent Experience"—Renato Sucupira and Mauricio Mesquita Moreira
7. "Ex-Im, Exports, and Private Capital: Will Financial Markets Squeeze the Ex-Im Bank?"— William R. Cline
8. "International Competition: Conflict and Cooperation in Government Export Financing" —Peter Evans and Kenneth A. Oye
9. "The New World of Government-Supported International Finance" —Allan I. Mendelowitz
10. "Should Ex-Im Bank Be Retired ?" —William Niskanen
11. "A Customer’s Point of View"—Robert L. Nardelli
12. "Can Trade Finance Attract Commercial Banks?" —John Lipsky
13. "ECAs in the Capital Markets"— Daniel Zelikow
14. "An Investment Banker Looks at Ex-Im Bank" —Robert Hormats
15. "A German Perspective" —Hans W. Reich
16. "A Canadian Perspective"—A. Ian Gillespie
17. "A Japanese Perspective"— Fumio Hoshi
18. "Maintaining Ex-Im Bank as a Major Force in the 21st Century"—William M. Daley
19. "A View of Ex-Im from the US Congress" —Jim Leach
20. "The Fight against International Trade Finance Subsidies"—Lawrence H. Summers.