Identifier
Created
Classification
Origin
09SAOPAULO125
2009-03-05 17:34:00
UNCLASSIFIED
Consulate Sao Paulo
Cable title:
MEDIA REACTION: GLOBAL ECONOMY: PROTECTIONISM; SAO PAULO
how-toVZCZCXYZ0010 OO RUEHWEB DE RUEHSO #0125 0641734 ZNR UUUUU ZZH O 051734Z MAR 09 FM AMCONSUL SAO PAULO TO RUEHC/SECSTATE WASHDC IMMEDIATE 8994 INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE RUEHBR/AMEMBASSY BRASILIA PRIORITY 0149 RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9048
UNCLAS SAO PAULO 000125
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: MEDIA REACTION: GLOBAL ECONOMY: PROTECTIONISM; SAO PAULO
Recession and Protectionism: lessons and errors from the past
Op-ed in business oriented Valor Econtmico (3-5) by economist
Marcelo Piancasteli from the Institute of Applied Economic Research
(IPEA). Several years ago, on an invitation from the State
Department, Mr. Piancasteli, on a student program, visited
Pittsburgh, PA, an area with high concentration of steel mills. On
this industry, he now states: "The U.S. steel industry has improved,
but has not turned globally competitive....In the package of
measures proposed by President Obama's administration to fight
recession, there is an astute article to limit steel imports, which
brings back the time old adage of protectionism: protect jobs in
industries with no conditions to compete in the global market....The
current initiative.... this allows us to review past lessons....We
know today that U.S. protectionism, along with other mistakes in
monetary policy, only prolonged [1929] recession, which lasted 10
years and only ended because World War II started."
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