International Development Association (IDA) donors and others operating a country performance-based allocation system face two difficult problems: how to strengthen incentives to produce and document development results and how to increase flexibility for fragile states. Fragile states have the greatest need for projects, but their projects tend to rate poorly in performance-based allocations systems, which provide little incentive to produce successful projects in fragile states or other countries.
Over the last 25 years, the international community has pursued a series of measures to address unsustainable debt burdens in low-income countries. Early actions focused on debt relief for official bilateral claims—initially by rescheduling—followed by increasing levels of debt stock reduction. During this period, the Paris Club repeatedly reduced or rescheduled the debts of a number of countries.
The Jubilee 2000 movement, which called for the cancellation of the foreign debts of the poorest nations, reached its zenith in the late 1990s and 2000-and then, by design, shut down. In the space of a few years, it became one of the most successful international, nongovernmental movements in history. As part of a larger, ongoing project to understand the consequences and lessons of the episode, David Roodman provides thumbnail assessments of Jubilee 2000 from several perspectives, deemphasizing anecdotes and statistics in favor of major themes.
Topic:
Debt, Development, Economics, and Non-Governmental Organization
The paper seeks to explain state failures. To do so, we focus on non-market forms of interactions in the public sector that allow officials to move into high or low effort levels, a kind of state tendency to bipolarity or manic depression. The activity level actually 'chosen' will have important consequences for the overall non-state economy. The paper outlines reasons why low effort and high corruption levels are likely to go together and increase the risks for possible rise in violent conflicts. It further describes mechanisms that show how non-formal institutions may impact corruption, state activity levels and possible economic gains from joining violent rebellion.
Using a world trade model with India subdivided into states, the paper examines how regional disparities are affected by domestic inter-state trade as well as international trade. According to the analysis, international liberalisation promotes decentralisation and convergence, not divergence, so trade is not to blame for India's growing regional disparities. High economic growth within India makes domestic markets more important and the geographical effect of this is opposite to that of globalisation. This may counterbalance the geographical impact of international liberalisation and explain why recent changes in geographical clustering in India are limited. The empirical results are consistent with this. They also indicate that Indian services expansion is largely driven by increases in domestic demand due to growth, and that domestic market integration is essential for India's manufacturing sector. We argue that for larger nations, the domestic inter-regional trade is important and India should have a trade policy that addresses domestic as well as international market integration.
Topic:
Development, Globalization, and International Trade and Finance
The recent economic crisis, 2008–2009,is commonly characterized as the worst since the Great Depression of 1929–1933. This recent crisis, called also the Great Recession, seems to form a turning-point in the global economic governance and the development of the world economy.
Topic:
Economics, Globalization, International Trade and Finance, and Financial Crisis
A vigorous debate is raging on the EU's normative roles in the global context. The EU actively promotes its political values outside of the Union, especially with regard to prospective accession countries. Yet, a normative foreign policy approach encounters considerable challenges when confronted with major powers, such as China and Russia that do not always share the political values promoted by the EU. Attempts at pursuing a normative policy towards these countries often come across as unserious or half-hearted. This paper discusses EU normative policy towards China, identifying loss of the moral high ground, conflicting interests of EU members and lack of leverage towards China as the three main factors hampering it. The paper argues that instead of a half-hearted offensive normative approach towards China, the EU may be better off with a more determined policy of defensive normativity. More broadly, the EU faces a stark choice between its desire to be a Normative Power and its wish to be a Great Power.
Topic:
Foreign Policy, Diplomacy, and Bilateral Relations
Contemplating the reasons for “EU failure” might appear odd at the current moment of time. If anything, the European Union finally seems to be putting its house in order. !e ratification of the Lisbon Treaty has ended the EU's decade long institutional impasse. For the first time in its history, the EU has appointed a President of the European Council and a powerful new High Representative for its Foreign and Security Policy. EU member states are in the process of creating a European External Action Service (EEAS) to represent their common interests abroad. And the list of countries knocking on the EU's doors seems to grow longer by the day. In light of these recent developments, as well as given the EU's historical success as a “peace project”, there seem to be few apparent reasons to ponder EU failure. Doing so, to some, might even appear counterproductive.
Generally speaking, the effects of international political party assistance are viewed negatively, or at least controversially. This study attributes some of the shortcomings of political party aid to the poor relationship between assistance providers and political science party research. They simply operate in different worlds. Party assistance lacks clear-cut concepts and strategies in practice, which makes it difficult to adequately evaluate it. At issue is its “standard method,” with its “transformative” intention to change the party organization of the assistance receivers. At the same time, the scholarship on political parties can provide only limited help to assistance providers due to its own conceptual and methodological restrictions, such as the Western European bias underlying its major concepts, the predominance of a functionalist approach, and the scant empirical research on political parties out-side of Europe and the US. Taking a cue from recent political party research, we could begin to question the overarching role of political parties in the transition and consolidation process of new democracies. Other research findings emphasize the coexistence of different types of party organizations, and the possibility of different organizational developments, which might all be consistent with consolidating democracy. All this suggests the necessity of abandoning the controversial aim of the “transformative impact” of political party aid.
Diehard believers in Turkey's European future had, for a brief moment, hung their hopes on the European Parliament (EP) as the key to unlocking the poisonous stalemate in Turkey's ailing accession process. The glimmer of light had come with the Lisbon Treaty, which could have been used to unblock the stalemate over the Direct Trade Regulation (DTR) between the EU and northern Cyprus by granting a voice to the EP on the matter. Breaking the stalemate would not have magically removed all obstacles to Turkey's protracted accession process. But it would have breathed new life and instilled a dose of much-needed optimism in the troubled relations between Turkey and the Union. Alas, that opportunity has been lost and, with it, the short-term hope of a rosier future for Cyprus, Turkey and the EU as a whole.
Topic:
Conflict Resolution, International Trade and Finance, and Treaties and Agreements