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1111. Why Delegate the Allocation of Foreign Aid to Multilateral Organizations? Principal-Agent Problems and Multilateralism

Author:
Helen Milner
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
Why do countries delegate the distribution of foreign aid to international institutions? Specifically, why have the advanced industrial countries chosen to distribute part of their foreign aid through multilateral organizations, such as the European Union (EU), World Bank, IMF, UN, and regional development banks (RDBs)? The delegation of aid provision to an international institution is puzzling. Why would governments relinquish control over their aid if they are a useful instrument of statecraft? Governments delegate aid delivery to international institutions when their publics lack information about the consequences of aid and fear that their governments will deviate from their wishes concerning its use. By using the international organization to send aid, the government issues a credible signal to voters about the use of foreign aid. This signal leaves all actors better off by helping to solve a principal-agent problem in domestic politics. When publics are skeptical about the benefits of aid, governments are more likely to turn aid over to multilateral organizations in order to reassure taxpayers that their money is being well spent. Using data on about 20 donor countries of the OECD from 1960-2000, I investigate the sources of multilateral giving, showing that public opinion has the expected negative relationship to multilateral aid-giving.
Topic:
International Relations, Foreign Policy, Economics, and International Trade and Finance
Political Geography:
Europe and United Nations

1112. North American Economic Integration Policy Options

Author:
Earl H. Fry
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
At the end of 2003, the North American Free Trade Agreement (NAFTA) will have been in effect for a decade, and although the accord will not be fully implemented for another five years, almost all of its important provisions are already in place. The model for NAFTA was the Canada-U.S. Free Trade Agreement (CUSFTA), which was put in motion in 1989 and was to be fully implemented within 10 years but was superseded by NAFTA after only five years in operation. NAFTA itself has created the world's largest free-trade area, encompassing the United States, Mexico, and Canada; 21.3 million square miles of territory; 422 million people; almost $12 trillion in yearly production; and $615 billion in annual three-way merchandise trade. North American trade, investment, government-to-government, and people-to-people exchanges have increased dramatically over the past decade and decisionmakers in Washington, D.C., Mexico City, and Ottawa will soon have to consider whether continental economic integration should move to the next level in the form of a customs and monetary union or even a common market possessing many of the attributes of the European Union (EU).
Topic:
Economics and International Trade and Finance
Political Geography:
United States, Europe, Canada, Latin America, Central America, North America, Mexico, and Ottawa

1113. Turkey's Bold Step Into the Future: Will the EU Meet the Challenge?

Author:
Adam S. Albion
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
The triumph of the Justice and Development Party (AKP) in Turkey's November 3 national election represents a significant opportunity to demonstrate both to the West and the Muslim world that it is possible for a democratic, Islamic party to effectively lead a modern secular state. Such a demonstration of the compatibility of Islam and democracy could produce a catalytic and strategically important effect among moderate Muslims throughout the world. The AKP seems to have recognized the importance of this opportunity by pledging to continue with much-needed political and economic reforms and EU integration efforts. The EU and the West must not let this opportunity pass them by; they must continue to encourage Turkey on its path to economic and political reform by establishing a concrete timeline towards EU membership and by helping Turkey to overcome its current financial crisis. Rejection by the West at this critical juncture could have very damaging effects, not only for Turkey, but for the viability of moderate Islamic parties throughout the Muslim world.
Topic:
Economics and Religion
Political Geography:
Europe, Turkey, and Middle East

1114. Russia's Maternal and Infant Health Crisis: Socio-Economic Implications and the Path Forward

Author:
Stephen M. Massey
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
Today, fewer than one in three Russian newborns is healthy, disease rates among Russian children are surging, and shrinking access to quality family planning and prenatal care has worsened the state of women's reproductive health across Russia. The health of Russia's infants and children is especially significant given the country's shrinking population and the mounting problems of infectious disease, rural poverty, illegal narcotics, and alcohol abuse – all contributing factors to poor birth outcomes. The long-term economic impact of unhealthy children born in the past decade is already a serious limiting factor to Russia's emergence as a strong economic partner and international actor. Many infant deaths and childhood illnesses could be prevented with expanded investments in infrastructure and education, improved access to quality care, and reform of Russia's healthcare sector – each of which is too costly for Russia to finance on its own. Untapped opportunities also exist for collaboration between Russian, European, and American civic groups, healthcare experts, scientists, and policy leaders that would have a positive impact on maternal and child health in Russia and beyond.
Topic:
Economics, Human Welfare, and International Cooperation
Political Geography:
Russia, Europe, and Asia

1115. Russia's Southern Regions: Threats and Opportunities

Author:
Robert Orttung
Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
Instability in Russia's southern regions poses a threat to the continuation of the country's overall political and economic reform, and to regional stability in Central Eurasia. These regions, which already possess Russia's most fragile local economics, face a variety of problems emanating from the weak and failing states to their immediate south. Most visibly, there is the threat of terrorism, an increasing flow of illegal narcotics from producers in Afghanistan, an influx of contraband goods that wipe out Russian jobs, and illegal immigration. With few resources and extensive corruption among key officials, Russia's southern regions are poorly equipped to deal with these problems. Developing mutually beneficial trade links between Russia's southern regions and its neighbors in Central Asia, China, and Mongolia can mitigate instability and economic stagnation in this region, help to rebuild regional economies, generate income, and better enable governments to provide security and basic human services to their people. The West can support these developments as well as help combat organized crime, target corruption, and improve border security.
Topic:
Security, Economics, International Cooperation, and Terrorism
Political Geography:
Afghanistan, Russia, China, Europe, Mongolia, and Asia

1116. French Democracy Without Borders

Author:
Suzanne Berger
Publication Date:
03-2002
Content Type:
Journal Article
Journal:
French Politics, Culture Society
Institution:
Conference Group on French Politics Society
Abstract:
There are intense debates in France today over globalization and its impact on democratic values and practice. The arguments retrace in many respects a much older inquiry into the compatibility of democracy and capitalism. The history of the past two hundred years suggests that despite the inequities that capitalist economies generate, the majority of the electorate has not been willing to vote out the system. Capitalism was protected, in part, by the fact that these systems were never wholly democratic, but provided constitutional protections for property. And democracy was preserved, in part, by the fact that these systems were never wholly capitalist, but in fact within national borders found a variety of solutions for blunting the impact of market forces. If globalization means a world without national borders, one may question whether this co-existence of capitalism and democracy can continue, and in fact, much of the French debate focuses on this point. This article retraces the history of the borders of France and suggests that borders are political, not geographic, constructions and as such, are far from disappearing even between the US and Canada, even within the European Union. As long as states can still regulate economic exchanges in ways that differentiate their societies from adjacent countries, borders persist. Globalization does create serious new challenges, but the stark dilemma of choosing either a world of economic openness or a world of liberal democracy does not capture the real stake and choices available to France and other democratic societies.
Topic:
Economics
Political Geography:
Europe, Canada, and France

1117. Kosovo/a Standing Technical Working Group, Thirteenth Meeting: Integration Returns

Author:
Robert Curis
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
European Centre for Minority Issues
Abstract:
The International Community should concentrate its efforts on the process of returns rather than looking to the numbers of individual returnees. . The present authorities (Provisional Institutions of Self Government – PISG – and United Nations Mission In Kosovo) should be assisted in promoting the right of all Internally Displaced Persons to return to their homes or remain in their present domicile, through ensuring the necessary social, institutional and legal preconditions for minorities to remain in Kosovo. This will help in promoting confidence building and dialogue that work toward reconciliation and tolerance between communities. . Financial assistance should be given towards organizing a proper education system for young people – if the process of returns targets only older people the effectiveness of the process is at stake. Financial support for returns should continue to be provided. Financial and technical assistance should be provided to finish projects begun in the last few years (reconstruction of houses, etc.)
Topic:
Civil Society, Development, and Economics
Political Geography:
Europe

1118. Kosovo/a Standing Technical Working Group, Eleventh Meeting: Economic Development and Labour

Author:
Graham Holliday
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
European Centre for Minority Issues
Abstract:
The Standing Technical Working Group (STWG) was established in March 2001 to address important issues of public policy in Kosovo/a at a technical level. It is composed of experts from Kosovo/a NGOs, the political parties and other civil society representatives. Its membership is fully interethnic and it prides itself on being able to conduct debate in Kosovo/a in an interethnic way. The Group reviews technical aspects of current policy and formulates proposals and critical questions in relation to them. It then seeks to engage the relevant appointed local and international representatives on these issues. In response to the changed political environment in Kosovo/a following the Assembly elections in November 2001, the Group sought to enhance its role in public policy analysis and development through the establishment of four expert working groups. These Expert Committees (ECs) have devoted their activities in 2002 to monitoring policy developments in four areas considered most relevant to the needs of all communities in Kosovo/a. One of these is the Expert Committee on Economic Development and Labour.
Topic:
Civil Society, Development, and Economics
Political Geography:
Europe

1119. Criteria Of Success And Failure In Hungary's Democratisation Process – A Methodological Experiment For Comparable National Case Studies

Author:
Zoltan Martinusz
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
The objective of this paper is to provide a brief general analysis of the democratisation of the security sector in Hungary in the decade following the political changes of 1989-1990 and highlight elements of success and failure. It must be underlined at the very beginning that the following analysis is of an experimental nature and is intended to serve more as a basis for future debate than an ultimate framework and example for similar analyses regarding other countries.
Topic:
Security, Democratization, and Economics
Political Geography:
Europe and Hungary

1120. How does globalisation affect local production and knowledge systems? The surgical instrument cluster of Tuttlingen, Germany

Author:
Gerhard Halder
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Institute for Development and Peace
Abstract:
The recent discussion of the winners and losersfrom globalisation has given prominence to regional development and industrial clusters in the global organisation of production and know-how. Tuttlingen, in southern Germany, is the recognised world leader in the global surgical instruments industry. However, price competition from emerging low-cost locations in South and South/East Asia and Eastern Europe, and rapid technological developments in medical engineering pose new challenges for the Tuttlingen cluster. In the past, institutional joint action was one of the pillars of the cluster's success, but there are doubts as to whether such institutions can face the new challenges. New public-private initiatives suggest a way forward, but it is too early to gauge their impact. In the past there wereimportant examples of small and medium sized firms coming togetherin joint marketing, production, and research and development efforts. While they continue, local competition has become more intense, making inter-firm co-operation more difficult. Some firms do, however, co-operate with suppliers further down the value chain, particularly those in Pakistan and Malaysia. The new challenges are also leading to further differentiation, both amongst firms as well as between producers and traders within the cluster. The most radical forms of product and functional upgrading are being concentrated in the cluster' sleading large firms. Innovation seems to be linked to close ties with end-users, the concentration of knowledge in medical engineering, and changes in surgical practices and health care delivery. Thus, the cluster while the 'big fish' in its own pond of surgical instruments, is having to come to terms with being a 'small fry' in the larger sea that constitutes the global health care sector.
Topic:
Development, Economics, Globalization, and Regional Cooperation
Political Geography:
Europe, East Asia, and Germany