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  • Author: Jeffrey A. Frankel, Andrew K. Rose
  • Publication Date: 08-1996
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: Everyone studing EMU cites the theory of Optimum Currency Areas: whether a country like Sweden should join the currency union depends on such parameters as the extent of Swedish trade with other EU members and the correlation of Sweden's income with that of other members. Few economists have focused on what we consider one of the most interesting aspects of this issue. Trade patterns and income correlation are endogenous. Sweden could fail the OCA criterion for membership today, and yet, if it goes ahead and joins anyway, could, as the result of joining, pass the Optimum Currency Area (OCA) criterion in the future. (Further, even if Sweden does not enter EMU quickly, it will be more likely to satisfy the OCA criteria in the future as a result of its recent accession to the EU.) The few economists who have identified the importance of the endogeneity of trade patterns and income correlation are divided on the nature of the relationship between the two. This is an important empirical question, which may hold the key to the answer regarding whether it is in Sweden's income interest to join EMU. We review the OCA theory, highlighting the role of trade links and income links. Then we discuss and analyze the endogeneity of these parameters. We present econometric evidence suggesting strongly that if trade links between Sweden and the rest of Europe strengthen in the future, then Sweden's income will become more highly correlated with European income in the future (not less correlated, as some have claimed). This has important implications for the OCA criterion. It means that a naïve examination of historical data gives a biased picture of the effects of EMU entry on Sweden. It also means that EMU membership is more likely to make sense for Sweden in the future than it does today.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Europe, Sweden
  • Author: Susanne K. Schmidt
  • Publication Date: 08-1996
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: European competition law allocates far-reaching competences to the European Commission. The paper asks for the conditions under which the Commission may use these rights against the member states, focusing on the most powerful provision - the right of the Commission under Article 90 to issue directives by itself in those cases where member-state governments have allocated specific rights to undertakings that conflict with the Treaty's rules. In addition the Commission may pursue Treaty violations on a case-by-case basis. In European telecommunications policy the Commission has used its powers rather successfully, with all liberalization decisions being based on Article 90. But for European electricity policy the Commission has shrunk away from using these powers in favor of initiating council legislation. The paper analyzes the conditions of the Commission's ability to act under European competition law in a multi-level framework, drawing among others on a principal-agent approach.
  • Topic: Energy Policy, Government, International Law, International Political Economy, Science and Technology
  • Political Geography: Europe
  • Author: Frank Schimmelfennig
  • Publication Date: 08-1996
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: Two seemingly contradictory trends dominate the European debate over legitimate rule. On the one hand, there appears to be no ideologically viable alternative to liberal democracy following the collapse of the Eastern Bloc. On the other, the rapid progress of European integration has triggered an intense public debate over the European Union's "legitimacy deficit" and active popular opposition in many Western European countries. This paper asks whether these two seemingly contradictory developments can be reconciled. It argues that they can once it is recognized that the modern inter-state system is undergoing profound change. State sovereignty is being undermined by the trans-nationalization of foreign policy and the inter-nationalization of governance. In particular, the European Union has crossed the border from horizontal (or anarchical) interstate cooperation to vertical (or hierarchical) policy making in a multi-level political system in which states are but one level of the policy.
  • Topic: Foreign Policy, Economics, Government, International Organization, Sovereignty
  • Political Geography: Europe
  • Author: Gregory W. Noble
  • Publication Date: 11-1996
  • Content Type: Working Paper
  • Institution: Berkeley Roundtable on the International Economy
  • Abstract: The last decade has witnessed a momentous transformation in the political economy of East and Southeast Asia. From the 1950s until the early 1980s transnational production played a limited role in the strategies of Northeast Asian governments and firms. Ubiquitous policies of protection and promotion aimed to increase domestic investment, production and exports. Governments discouraged outward investment through financial controls, particularly over foreign currencies; they limited inward foreign investment to narrowly confined niches, and then often subjected it to onerous restrictions to prevent foreigners from gaining a major foothold in the national economy. The few exceptions involved areas in which domestic production was inadequate: investments in Southeast Asian raw materials and energy; investments by Japanese and Western firms in Korea and Taiwan for some labor-intensive products to be sold in local or third-country markets (but rarely in Japan); and a handful of high-tech investments by Western firms such as IBM which enjoyed such strong patent positions that they could not be forced to license their technology. Since the mid-1980s the combination of rapid currency appreciation, rising costs of labor, land and pollution control in Northeast Asia, and liberalizing economic reforms in Southeast Asia led to a huge surge of direct foreign investment, mainly for the production of labor-intensive manufactured goods. The focal point of Northeast Asian economies shifted from export-led growth based on protected domestic markets to management of regional production networks spread throughout Asia.
  • Topic: Economics, Industrial Policy
  • Political Geography: Japan, Taiwan, Asia, Korea
  • Author: Edmund A. Egan
  • Publication Date: 01-1996
  • Content Type: Working Paper
  • Institution: Berkeley Roundtable on the International Economy
  • Abstract: Microsoft Corporation, the largest company in the US software industry, has been under anti-trust scrutiny from the Department of Justice for most of the 1990s. In 1995, its planned acquisition of Intuit, Inc. prompted a Silicon Valley law firm, on behalf of unnamed complainants, to submit a White Paper to the DOJ, on the subject of Microsoft's long-term strategy. The White Paper, relying on the theoretical concepts of network externalities and lock-in effects, argues that Microsoft will use Intuit's products to attain monopolistic positions in network operating systems, on-line services, and electronic commerce, and will eventually be in a position to affect the content transmitted over electronic networks.
  • Topic: Industrial Policy, Science and Technology
  • Political Geography: United States
  • Author: Andrew Young
  • Publication Date: 08-1996
  • Content Type: Working Paper
  • Institution: The Carter Center
  • Abstract: This year, the world celebrated the 100th anniversary of the modern Olympiad. Consider this vision of a world at peace: The opening ceremonies in Atlanta's Centennial Olympic Stadium, where more than 10,000 athletes from 197 countries gathered to demonstrate the highest ideals—teamwork, sportsmanship, and recognition of personal achievement. All invited countries participated, free of the ideological and political restraints that prevented many from attending in years past. For 16 days in July and August the world came together to honor those striving to surmount universal standards of excellence. Our hearts reached out to the hurdler who stumbled just before the finish line, the marathon runner who shook off fatigue, the Paralympian who rose above all expectations. We saw, for a brief moment, the potential all of us have to better ourselves and our world.
  • Topic: Conflict Resolution, Arms Control and Proliferation, Government
  • Political Geography: United Nations
  • Publication Date: 03-1996
  • Content Type: Working Paper
  • Institution: The Carter Center
  • Abstract: The Carter Center convened a small, informal meeting to examine the question of whether there might be developed "more effective" international economic sanctions -- those which better achieve desired political goals without causing great suffering to innocent people. President Carter and others have expressed frustration that recent sanctioning efforts have fallen short of their objectives, yet sanctions appear to be one of the only tools available to the international community short of a resort to force. This meeting, chaired by Harry Barnes, Director of the Conflict Resolution and Human Rights programs at The Carter Center, set out to identify 1) what factors might be involved in designing more effective sanctions; 2) what obstacles must be overcome; 3) what steps governments and international bodies such as the United Nations might take to improve sanctions; and 4) what steps might be taken by non-governmental organizations (NGOs). The following is a summary of the discussion and possible follow-up actions, paying particular attention on potential roles for NGOs.
  • Topic: International Political Economy
  • Political Geography: United Nations
  • Author: Robert A. Pastor
  • Publication Date: 01-1996
  • Content Type: Working Paper
  • Institution: The Carter Center
  • Abstract: In my travels throughout Latin America, I have always found the region's leaders eager to converse with American statesmen, but with few exceptions, they mostly had to content themselves with speaking to specialists like me. The kind of transnational dialogue that would permit hemispheric relations to rise to a higher level just did not exist. When President Carter asked if I would direct a new program at The Carter Center, my thoughts turned to the question of whether I could help form a group of senior statesmen from thoughts the hemisphere, who not only could consult with each other, but also work together to advance the ideals of human rights, democracy, social justice, and equitable development that lie at the core of the inter-American promise.
  • Topic: International Relations, Foreign Policy, Democratization, Human Rights
  • Political Geography: United States, South America, Latin America, Central America, Caribbean
  • Author: Yagil Levy
  • Publication Date: 01-1996
  • Content Type: Working Paper
  • Institution: Center for Studies of Social Change
  • Abstract: Wars produce contrasting effects on the state's status in the domestic arena: they bolster its internal control but, at the same time, create opportunities for collective action of which domestic groups can take advantage and weaken state autonomy. As the case of Israel suggests, within the confines of geo-political constraints, states modify their military doctrine to balance the two contradictory impacts. The main purpose of the paper is to lay the foundation for a Sociology of Strategy by drawing on the case of Israel.
  • Topic: Defense Policy, Government, Politics
  • Political Geography: Middle East, Israel
  • Author: Richard Whitman
  • Publication Date: 10-1996
  • Content Type: Working Paper
  • Institution: Centre for the Study of Democracy, University of Westminster
  • Abstract: The Treaty on European Union (TEU, or 'Maastricht Treaty'), which came into force on 1 November 1993, established a 'three pillar' structure for the new European Union. Pillar one consists of the European Communities - the European Coal and Steel Community (ECSC); the European Atomic Energy Community (EAEC); and the European Community (EC). Pillars Two and Three were introduced by the TEU and consist of, respectively, the Common Foreign and Security Policy (CFSP) and co-operation in Home and Judicial Affairs (HJA).
  • Topic: Security, Foreign Policy, International Organization
  • Political Geography: Europe
  • Author: Sofía Gallardo C.
  • Publication Date: 01-1996
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: With the implementation of the North American Free Trade Agreement different view regarding the possible environmental risks and the measures that had to be taken in order to be able to manage them were expressed. Some environmental organizations for the first time sought to influence international trading issues in local, national and trinational networks. Current globalization processes have established new challenges to the citizens because they have forced them to focus their political action simultaneously in national, regional and global public scenarios. Therefore, Mexican, Canadian and American citizens have been increasingly involved in their countries' economic integration processes, creating awareness of the possible risks generated by the current globalization patterns and of the ways in which they can be affected. This paper concentrates on the challenges that civic organizations in general, and environmental groups in particular, have had to confront in order to maintain or try to improve their living standards with the implementation of NAFTA and offers some considerations on the successes and failures of civic and environmental actions in the purview of NAFTA.
  • Topic: Economics, Globalization, International Trade and Finance
  • Political Geography: America, Canada, North America, Mexico
  • Author: Jesus Velasco
  • Publication Date: 01-1996
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: The classification of current political tendencies in the United States is sometimes confusing. Since the beginning of Ronald Reagan's first presidential campaign, American journalists and scholars have used indistinctly terms like right, conservatism, neoconservatism, ultraconservatism, extreme right, New Right, etc., to define the different political forces behind Reagan's ascent to the White House. This confusion is evident in the work of John Judis. He believes that Kevin Phillips (a conservative scholar), Paul Weyrich (a New Right activist), Irving Kristol (a neoconservative leader), and William Buckley (a traditional conservative), could all be embraced within the term "conservative" without considering any differences in their theoretical and political position.
  • Topic: International Relations, Foreign Policy, Politics
  • Political Geography: United States, America
  • Author: Susanne Lutz
  • Publication Date: 12-1996
  • Content Type: Working Paper
  • Institution: Max Planck Institute for the Study of Societies
  • Abstract: The debate on economic 'globalization' suggests that the blurring of territorial boundaries shifts the power relations between nation-states and domestic market constituencies in favour of the latter. States have lost autonomy since policies are increasingly formulated in supranational or global arenas. Market actors may use their wider choice of geographic location in order to lobby for low regulated market environments. The paper seeks to differentiate this common view considerably. It argues that economic internationalization weakens the capacity of domestic market actors to engage in self-binding agreements that formerly had solved regulatory problems. Networks of interstate collaboration in turn lack the ability to monitor and enforce negotiated agreements. Both developments impose new duties of market supervision on the nation-state. Empirical reference is drawn from the stock exchange sector that went through a process of transformation which has led to an enhanced role of the nation-state in the model of sectoral governance.
  • Topic: Economics, Globalization, Government, International Trade and Finance
  • Author: Reiner Grundmann
  • Publication Date: 12-1996
  • Content Type: Working Paper
  • Institution: Max Planck Institute for the Study of Societies
  • Abstract: Successful international cooperation is a puzzling problem for social scientists. The ozone layer has been subject to both international treaties and domestic legislation. It is one of the foremost success stories in international relations, yet insufficiently understood. In this paper I argue that existing approaches - including the sophisticated and highly acclaimed epistemic community approach - do not take the underlying theoretical problems seriously enough. Departing from the epistemic community approach, I propose a framework for a network analysis combining interests, knowledge and power into a coherent model, which is derived from this case but can apply to similar cases sharing similar characteristics. It is argued that one of two rivaling policy networks gained hegemony over the other, mainly by winning over allies from the competing network. Ultimately this contributed to the competing network's breakdown.
  • Topic: International Relations, Environment, International Cooperation
  • Author: Lykke Friis
  • Publication Date: 12-1996
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: For a short period in May 1998, Denmark once again found itself in the European limelight. After the Danish no to the Maastricht Treaty in June 1992, European governments held their breath when the Danes were called to the ballot box on the 28th of May to accept or reject the Treaty of Amsterdam. A quick glance at the actual debate and the final result could easily leave the impression that everything was business-as-usual. Just like in 1972, 1986, 1992 and 1993 the debate largely centered around broad issues, such as the pros and the cons of Danish EU-membership and the danger of 'little Denmark' being swallowed by the 'big EU'. The final outcome of the referendum also looked familiar: Although 55.1 per cent of the Danish population voted in favor of the Treaty, a large minority continued to give an EU-Treaty their thumbs-down.
  • Topic: Foreign Policy, International Organization
  • Political Geography: Europe
  • Author: Bjørn Moller
  • Publication Date: 07-1996
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: Wonderful though it would be, in the real world it is not always possible to combine whatever is desirable and valuable. The present author holds (at least) two things to possess these qualities, namely a defensive restructuring of the armed forces and an expanded role for the United Nations. The purpose of the present paper is to analyze whether these two desiderata are possible to combine, or whether any incorrectable incompatibilities necessitate a choice between the two. The diagram below illustrates some of the possible inherent dilemmas in the form of a hierarchy of values, with an indication of logical (dotted lines) and causal (arrows) connections.
  • Topic: Conflict Resolution, Security, Defense Policy, Arms Control and Proliferation, Peace Studies, United Nations
  • Author: Alexander A. Sergounin
  • Publication Date: 07-1996
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: The end of the Cold War, the collapse of the USSR and its Marxist ideology, and the re-emergence of the Russian Federation as a separate, independent entity have compelled Russia to redefine its national interests and make major adjustments in the spheres of both foreign policy and international relations theory (IRT). These enormous tasks, together with an attendant polarisation of opinion on how to deal with them, have pitted Russia's policy makers and experts against one another in a fierce battle of world views. This debate is far from at an end. Neither a new security identity nor a coherent foreign policy strategy have yet been found.
  • Topic: Security, Foreign Policy, Environment, Government, Politics, Religion
  • Political Geography: Russia, Europe, Asia
  • Author: Pertti Joenniemi
  • Publication Date: 06-1996
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: Traditionally regarded as a fairly stable configuration, Norden has in recent years become one of the more uncertain cases on the European agenda. Obviously, it cannot remain unaffected once a new and different logic sets in and drastically reshapes the political landscape also in the northern part of Europe. The range of options is quite broad. Norden might establish itself as a central acronym or, on the contrary, develop into one of the more problematic configurations with a rather bleak future.
  • Topic: Security, International Organization
  • Political Geography: Europe
  • Author: Wolfgang Biermann, Martin Vadset
  • Publication Date: 04-1996
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: UN Peacekeeping after the Cold War shows that options of what the international community can achieve by intervening into or after civil war-like conflicts are in reality more limited than political or moral desires may demand. Finding out the criteria of the 'practicability' and feasibility of UN mandates is a challenging task for research as well as for political and military decision-makers. The Danish Norwegian Research Project on UN Peacekeeping (DANORP) has considered the peacekeepers themselves as a best resource to answer the question of 'practicability' of mandates they are expected to implement, and to identify political and operational "secrets of success" or "reasons for failure".
  • Topic: Conflict Resolution, Security, Democratization, Peace Studies, United Nations
  • Political Geography: Eastern Europe
  • Author: G. John Ikenberry, Daniel Deudney
  • Publication Date: 05-1996
  • Content Type: Working Paper
  • Institution: Christopher H. Browne Center for International Politics, University of Pennsylvania
  • Abstract: The end of the Cold War has triggered new debates about international relations theory. Most of the attention has been focused on explaining the end of the Cold War. Equally important, however, this epochal development raises new questions about the impact of forty years of East-West rivalry on the relations among the Western liberal democracies. This issue is not simply of passing historical interest because it bears on our expectations about the future trajectory of relations among the great powers in the West. Will the end of the Cold War lead to the decline of cooperative relations among the Western liberal democracies? Will major Western political institutions, such as NATO and the U.S.-Japanese alliance, fall apart? Will "semi-sovereign" Germany and Japan revert to traditional great power status? Will the United States return to its traditional isolationist posture? Our answers to these questions depend upon the sources of Western order: was the Cold War the primary cause of Western solidarity or does the West have a distinctive and robust political order that predated and paralleled the Cold War?
  • Topic: International Relations, Government, Politics
  • Political Geography: United States, Japan, Europe, Germany