Search

Begin New Search Topic Economics

5351. The Transatlantic Economy in 2020: A Partnership for the Future?

Author:
Frances G. Burwell, W. Bowman Cutter, Paula Stern, and Peter S. Rashish
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The United States and the European Union maintain the world's largest and most significant economic relationship, which in turn is a foundation supporting the transatlantic political partnership. By some estimates, the transatlantic economy — including two-way trade and foreign affiliate sales — totals $2.5 trillion and is responsible for 14 million jobs in the United States and Europe. It is not just the scale of the transactions, however; the transatlantic economy is deeply interconnected through impressive levels of foreign direct investment in both directions. Together, the United States and the EU have been key players in managing the global economy through the World Trade Organization, World Bank, and International Monetary Fund. They have been responsible for the major accomplishments in international trade liberalization of the last 40 years, and have spurred the adoption of global standards in a wide range of sectors.
Topic:
Economics, International Cooperation, and International Trade and Finance
Political Geography:
United States and Europe

5352. Do Economic Sanctions Work? Lessons from ILSA Other Sanctions Regimes

Author:
Stuart E. Eizenstat
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The 1990s saw a cascade of contentious sanctions legislation. Congress passed the Antiterrorism and Effective Death Penalty Act of 1996, including an amendment to the Sovereign Immunities Act, which permits lawsuits against governments on the terrorism list – a major step in denying foreign governments normal immunity from suit in U.S. courts. The Iran–Libya Sanctions Act (ILSA) was also passed in 1996, with the goal of discouraging third–country companies from investing in Iran or Libya. This sparked outrage from European countries, which objected to the act's “extra–territorial” reach, and from the European Union (EU) institutionally, which responded with a law barring any European company from complying with the legislation (and with similar provisions regarding Cuban trade under the controversial Helms–Burton Act).
Topic:
International Relations, Economics, and Terrorism
Political Geography:
United States and Europe

5353. Supporting the High-Technology Entrepreneur: Support Network Geographies for Semiconductor, Telecommunications Equipment, and Biotechnology Start-Ups

Author:
Martin Kenney and Donald Patton
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Using a unique database derived from U.S. initial public stock offering prospecti, the authors examine the location of four actors (the firm's lawyers, the venture capitalists on the board of directors, the other members of the board of directors, and the lead investment banker) of the entrepreneurial support network for start-up firms in three high-technology industries: semiconductors, telecommunications equipment, and biotechnology. We demonstrate that the economic geography of the biotechnology support network differs significantly from the networks in semiconductors and telecommunications equipment. Our results suggest that generalization about the economic geography of high-technology industries drawn from a single industry study can be misleading. We find that biotechnology has a far more dispersed network structure than the two electronics-related industries. We suggest that the case of biotechnology suggests that if the source of seeds for new firms is highly dispersed, then an industry may not experience the path dependent clustering suggested by geographers and economists. Also, we argue that contrary to common belief biotechnology and its support network does not exhibit as great clustering as does either semiconductors or telecommunications equipment. Suggesting that for economic development planners, it may be easy to encourage biotechnology start-ups, but the synergies from the industry may not be as powerful as in other high-technology fields.
Topic:
Economics, Industrial Policy, and Science and Technology
Political Geography:
United States

5354. Building Venture Capital Industries: Understanding the U.S. and Israeli Experience

Author:
Martin Kenney, Gil Avnimelech, and Morris Teubal
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
During the growth phase of every venture capita (VC) business cycle, it seems as though both local and national governments in various countries initiate policies aimed at establishing VC industries as part of a high-technology economic development strategy. It is remarkable how each time there seems to be a proliferation of ill-advised policies that are usually reminiscent of the ones tried during the previous phase. Not surprisingly, in a distressingly large number of cases, the “new” policies to foster VC meet with minimal success or fail outright. While the causes of failure are undoubtedly multiple, there is ample room for believing that often the policies were based on a simplistic or incomplete understanding of the roots and dynamics that have led to the development of self-sustaining national VC industries. This paper uses historically informed case studies of Israel and the U.S. to develop an appreciative model of how the VC industries in these two nations came into being. Our model and understanding of this process is deliberately evolutionary and systemic. We believe that this perspective is the only one capable of providing both scholars and policy-makers with a grounded understanding of the emergence and development of the VC industries in these two nations.
Topic:
Economics, Government, Industrial Policy, and Science and Technology
Political Geography:
United States and Israel

5355. How Revolutionary is the Revolution: Will there be a “Political Economy” of the Digital Era?

Author:
John Zysman and Abe Newman
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
The purpose of this paper is to consider whether there is a political economy of a digital era. Our concern is how the digital revolution influences the role of the State in society and the economy and the politics that surround it? In the spring of 2000 in the midst of the stock boom we would have as ked: “Is the extraordinary expansion of computing intelligence, the pervasive spread of digital networks, and the recent arrival of the commercial Internet, the edge of an historical revolution, a transformation?” Data networks had existed for decades and Business to Business commerce (B2B) had been conducted over these networks for years. But the sudden interconnection of disparate networks into a single “cyber world”, and broad consumer participation in those networks through vehicles such as AOL seemed to augur a new era. The pace at which individuals, not just firms, were being connected to the Internet in the United States was explosive. Businesses were reorganizing and extending intern al activities to capture the possibilities of the network of networks. Together the Internet's rapid build out encouraged the fantasy that the new information network technologies could, in themselves, transform the terms of competition and restructure a broad range of the economy. By the summer of 2003, the conventional question had become different: “Was this the revolution that never happened, the dreams evaporating with stock values, first during the dot com collapse and then in the telecoms debacle?” Did the digital revolution have more in common with tulip speculation, a pure ephemera, than the railroad expansion and transportation revolution that created and destroyed individual fortunes. Of course, the industrial revolution di d not end with the first textile company failures, nor does the digital revolution end with the dot com collapse.
Topic:
Economics, International Trade and Finance, Political Economy, and Science and Technology
Political Geography:
United States

5356. Post-Communist Competition and State Development

Author:
Anna Grzymala-Busse
Publication Date:
12-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Theories of institutional development have tended to view discretion, or the leeway to act within institutional bounds, as an often unintended consequence of agency design and institutional specification. Yet the post-communist states show that discretion is a fundamental goal of institutional creation among competing elites. In turn, while political competition has been identified as a key constraint on discretion in institutional creation, widely-used indicators of political competition are inadequate. As post-communist democracies show, the number or seat share of political parties matters far less than what parties do in parliament. The key factor is a robust opposition: a clear, credible, and contentious threat to governing parties. Such opposition leads to the rise of formal institutions that both minimize the discretion necessary for rent-seeking, and favor equitable distributional outcomes.
Topic:
Economics and Government
Political Geography:
Europe

5357. The Language of Democracy: Vernacular Or Esperanto? A Comparison between the Multiculturalist and Cosmopolitan Perspectives

Author:
Daniele Archibugi
Publication Date:
12-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Will Kymlicka has argued “democratic politics is politics in the vernacular.” Does it imply that democratic politics is impossible in a multilingual community, whether at the local, national, regional or global level? This paper discusses this assumption and maintains that democratic politics should imply the willingness of all players to make an effort to understand each other. Democratic politics imply the willingness to overcome the barriers to mutual understanding, including the linguistic ones. Any time that there is a community of fate, a democrat should search for methods that allow deliberation according to the two key conditions of political equality and participation. If linguistic diversity is an obstacle to equality and participation, some methods should be found to overcome it, as exemplified by the Esperanto metaphor. The paper illustrates the argument with four cases of multi-linguistic political communities: a) a school in California with English-speaking and Spanish-speaking students; b) the city of Byelostok in the second half of the nineteenth century, where four different linguistic communities (Polish, Russian, German and Yiddish) coexisted. This led Markus Zamenhof to invent Esperanto; c) the linguistic problems of the Indian state, and the role played by English – a language unspoken by the majority of the Indian population in 1947 – in developing Indian democracy; and d) the case of the European Parliament, with twenty languages and a wealth of interpreters and translators.
Topic:
Democratization, Economics, and Politics
Political Geography:
Russia, Europe, India, California, and Germany

5358. All for All: Equality and Social Trust

Author:
Bo Rothstein and Eric M. Uslaner
Publication Date:
12-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The importance of social trust has become widely accepted in the social sciences. A number of explanations have been put forward for the stark variation in social trust among countries. Among these, participation in voluntary associations received most attention. Yet, there is scant evidence that participation can lead to trust. In this paper, we shall examine a variable that has not gotten the attention we think it deserves in the discussion about the sources of generalized trust, namely equality. We conceptualize equality in two dimensions: one is economic equality and the other is equality of opportunity. The omission of both these dimensions of equality in the social capital literature is peculiar for several reasons. One is that it is obvious that the countries that score highest on social trust also rank highest on economic equality, namely the Nordic countries, the Netherlands, and Canada. Secondly, these are countries that have put a lot of effort in creating equality of opportunity, not least in regard to their policies for public education, labor market opportunities and (more recently) gender equality. The argument for increasing social trust by reducing inequality has largely been ignored in the policy debates about social trust. Social capital research has to a large extent been used by several governments and policy organizations to send a message to people that the bad things in their society are caused by too little volunteering. The policy implication that follows from our research is that the low levels of trust and social capital that plague many countries are caused by too little government action to reduce inequality. However, many countries plagued by low levels of social trust and social capital may be stuck in what is known as a social trap. The logic of such a situation is the following. Social trust will not increase because massive social inequality prevails, but the public policies that could remedy this situation cannot be established precisely because there is a genuine lack of trust. This lack of trust concerns both “other people” and the government institutions that are needed to implement universal policies.
Topic:
Civil Society, Economics, and Gender Issues
Political Geography:
Europe, Canada, and Netherlands

5359. Capital, Labor, and the Prospects of the European Social Model in the East

Author:
Dorothee Bohle and Bela Greskovitz
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
During the past decade of European economic integration vastly worse standards have emerged in work conditions, industrial relations, and social welfare in Eastern Europe than in the West. Area scholars explain this divide by labor weakness caused by the ideological legacy of communism, and do not problematize the impact of transnational capital. In contrast, this essay argues that the reason why the European social model has not traveled to the East is that its socio-economic foundations, the industrial building blocks of the historical compromise between capital and labor, have not traveled either. In the West, the compromise had been rooted in capital-intensive consumer durables industries, such as car-manufacturing, and their suppliers. These sectors brought together organized and vocal labor with businesses willing to accommodate workers' demands, because for them labor had been less a problem as a cost-factor and more important as factor of demand. However, the main driving force of the eastward expansion of European capital has been the relocation of labor-intensive activities where business relies on sweating masses of workers, whose importance as consumers is marginal, and who are weak in the workplace and the marketplace. With this general conceptualization of how the emerging new European division of labor constrains the social aspects of East European market societies as a background, the essay studies the cases of Hungarian electronics and Slovak car industries in order to better understand how particular features of various leading sectors mediate the general pattern.
Topic:
Economics, Government, and Human Welfare
Political Geography:
Europe and Eastern Europe

5360. Lessons for Post-Communist Europe from the Iberian Integration into the EU after Sixteen Years

Author:
Sebastian Royo
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The purpose of this paper is to outline the main consequences for Portugal and Spain of EU integration. It uses the integration of Portugal and Spain into the European Union as an opportunity to draw some lessons that may be applicable to East European countries as they pursue their own processes of integration into the European Union. It examines challenges and opportunities that new member states from central and Eastern Europe will face when trying to integrate in the EU. Finally, the paper analyzes the impact the 2004 enlargement will have on the Iberian countries.
Topic:
Economics and Government
Political Geography:
Europe and Spain

5361. Why European Citizens Will Reject the EU Constitution

Author:
Claes H. de Vreese
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
This study tests competing hypotheses about popular support for European integration. It introduces anti-immigration sentiments as a key variable for understanding reluctance towards integration. Drawing on survey data, it is found that anti-immigration sentiments, economic considerations, and the evaluation of domestic governments are the strongest predictors of both support for integration and individuals' propensity to vote “Yes” in a referendum on the enlargement of the EU. When extrapolating the findings to future referendums on issues of European integration, it may be predicted that such referendums will result in a “No” outcome under the conditions of high levels of anti-immigration sentiments, pessimistic economic outlooks, and/or unpopularity of a government.
Topic:
International Relations, Economics, Government, and Politics
Political Geography:
Europe

5362. The EMU Macroeconomic Policy Regime and the European Social Model

Author:
Andrew Martin
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
This paper will be a chapter in Euros and Europeans: Monetary Integration and the European Social Model, Andrew Martin and George Ross, eds., Cambridge University Press, 2004. Over time, the impact of EMU on the European social model (ESM) is likely to depend most fundamentally on its effects on unemployment. If EMU makes possible a significant reduction in unemployment, it poses no threat to the ESM. However, EMU is likely to keep unemployment at high levels. This expectation hinges on two propositions: 1) in order to bring unemployment back down after an extended period of disinflation has kept growth below its potential and unemployment high, a period of economic growth above its long-run potential – a growth spurt – is necessary, and 2), the EMU macroeconomic policy regime, as interpreted and implemented by the ECB, blocks such a growth spurt. The first part of the paper describes the policy regime, arguing that the ECB's implementation of it so far and the bank's rationale for doing so indicate an unwillingness to permit the growth spurt needed to significantly reduce unemployment. Its rationale invokes the orthodox view that monetary policy has no long run effects on growth and employment. This view is challenged by an alternative view, described in the second part. The alternative rests mainly on an empirical analysis of cases in which disinflation was and was not followed by growth spurts during the 1980s and 1990s. Showing that in the long run unemployment was lower without higher inflation where monetary policy permitted growth spurts than where it did not, this analysis suggests that the ECB's orthodoxy is fundamentally flawed and that adherence to it will perpetuate Europe's high unemployment.
Topic:
Economics, Human Welfare, and Politics
Political Geography:
Europe

5363. Learning and Change in Twentieth-Century British Economic Policy

Author:
Michael J. Oliver and Hugh Pemberton
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Despite considerable interest in the means by which policy learning occurs, and in how it is that the framework of policy may be subject to radical change, the “black box” of economic policymaking remains surprisingly murky. This article utilizes Peter Hall's concept of “social learning” to develop a more sophisticated model of policy learning; one in which paradigm failure does not necessarily lead to wholesale paradigm replacement, and in which an administrative battle of ideas may be just as important a determinant of paradigm change as a political struggle. It then applies this model in a survey of UK economic policymaking since the 1930s: examining the shift to “Keynesianism” during the 1930s and 1940s; the substantial revision of this framework in the 1960s; the collapse of the “Keynesian-plus” framework in the 1970s; and the major revisions to the new “neo-liberal” policy framework in the 1980s and 1990s.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United Kingdom and Europe

5364. How Can International Organizations Shape National Welfare States? Evidence from Compliance with EU Directives

Author:
Katerina Linos
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
How can international organizations shape national welfare states? The answer depends on why national governments comply with international organization mandates. International relations scholarship offers two competing compliance models. Enforcement theories emphasize states' utilitarian calculus and predict that states' policy preferences determine implementation, while managerial theories attribute non-compliance to states' capability limitations and emphasize institutional variables. This paper examines the implementation of EU social policy directives through a new quantitative dataset and qualitative case studies of implementation in Greece and Spain. Three proxies for national social policy preferences – low labor costs, high unemployment and early national social legislation – predict implementation delays. At the same time, factors unrelated to national preferences on particular directives have at least as large an impact on timely implementation. Thus, a national bureaucracy's capacity and the absence of veto players reduce implementation delays. These findings suggest that capabilities influence compliance at least as much as preferences, but through mechanisms different from the ones emphasized in existing work. Although international organizations may not be especially successful in overcoming past policy legacies in favor of future commitments, they can reorient the axes of contestation from left-right to supra-sub national and thus shape national policies.
Topic:
Economics, Globalization, and International Organization
Political Geography:
Europe

5365. The carter center financing democracy in guatemala. Final Report: Financing Democracy in Guatemala

Publication Date:
05-2004
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
In recent years discussions about the quality of democracy in the Western Hemisphere have focused increasing concern on the financing of political parties and their campaigns. Unlimited spending on campaigns is believed (correctly or not) to have raised the cost of elections to the point where poor candidates stand little chance of competing and the prospect of creating a level playing field for parties and their candidates has become decidedly remote. Undisclosed contributions of licit or illicit origin by wealthy donors have meanwhile intensified the dependence of elected officials on their campaign funders, increasing the likelihood that politicians respond to donor interests and hindering effective representation for the ordinary citizen in the making of public policy. In tandem, these trends are contributing to public cynicism about parties and candidates, and about the possibilities for meaningful citizen participation in politics.
Topic:
Democratization, Economics, and Politics
Political Geography:
Latin America and Central America

5366. Financing Democracy in the Americas

Publication Date:
05-2004
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
Citizens throughout the hemisphere increasingly question the integrity of political processes with opaque methods of financing and access. After a quarter-century of democratic governance, money-conscious voters in Latin America's troubled economies have begun to ask whether elections really allow them to hold governments accountable for enacting promised reform s or whether instead politicians respond primarily to the special interest groups who fund their campaigns. Democracy remains a valued good, but questions are being asked about how much it costs, who pays, and whether the need to raise funds distorts policy agendas.
Topic:
Democratization, Economics, and Politics
Political Geography:
Latin America and Central America

5367. The Inefficient Use of Power: Costly Conflict with Complete Information

Author:
Robert Powell
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
Recent work across a wide range of issues in political economy as well as in American, comparative, and international politics tries to explain the inefficient use of power — revolutions, civil wars, high levels of public debt, international conflict, and costly policy insulation — in terms of commitment problems. This paper shows that a common mechanism is at work in a number of these diverse studies. This common mechanism provides a more general formulation of a type of commitment problem that can arise in many different substantive settings. The present analysis then formalizes this mechanism as an “inefficiency condition” which ensures that all of the equilibria of a stochastic game are inefficient. This condition has a natural substantive interpretation: Large, rapid changes in the actors' relative power (measured in terms of their minmax payoffs) may cause inefficiency.
Topic:
Foreign Policy, Economics, Government, and Politics
Political Geography:
America

5368. The Meaning of Monetary Power

Author:
Benjamin J. Cohen
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
What is the meaning of monetary power? No one doubts that money is inherently political, an integral part of global “high politics.” Yet remarkably few scholars of international relations have attempted to explore the notion of monetary power in formal analytical terms. As Jonathan Kirshner has accurately noted, the topic is “a neglected area of study” (1995:3).
Topic:
International Relations, Economics, Government, and International Trade and Finance

5369. Financial Sector Reform in India: Is There a Grand Design?

Author:
Rajrishi Singhal
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
The Planning Commission of India, in its Approach Paper for the Tenth Five-Year Plan (2002- 07), set its sights on two lofty targets: doubling per capita income over the next 10 years—compared to similar goals over 20 years as was previously the norm—and reducing the incidence of poverty by five percentage points.
Topic:
Development, Economics, and Government
Political Geography:
South Asia and India

5370. Thirteen Years of Power Sector Reform in India: Are We Still Groping in the Dark?

Author:
Kandula Subramaniam
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
In 1991, before the New Power Policy was announced opening the Indian power supply industry to private investment, the country was experiencing power shortages. Sanghvi (1991) estimated that in countries like India, electricity shortages led to a loss of 1.5 to 2 percent of gross domestic product (GDP). Ten years later, India still experiences shortages of power in the form of load-shedding. Even grid breakdowns have become a regular feature. In 2001 alone, there were two major grid collapses, bringing several Indian states to a grinding halt for more than one day.
Topic:
Economics, International Trade and Finance, and Science and Technology
Political Geography:
South Asia and India

5371. CERI: Regional integration in Asia since China's entry into the WTO

Author:
Diana Hochraich
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
Since their economic development got under way, the ASEAN countries - which essentially manufacture labour-intensive products - have been marked by strong regional integration brought about by the segmentation of the production process engaged in by Japanese companies. In these countries, successive relocations resulted in de facto economic integration at a time when various political groupings intent on blocking the development of communism were also emerging. Since joining the WTO, China - the world's workshop - has become the hub for trade with the developed countries. In the face of such competition, the ASEAN countries will have to show their capacity to maintain their position in the value chain represented by the production of all of the Asian countries.
Topic:
Economics and Regional Cooperation
Political Geography:
China and Asia

5372. CERI: Eighteen months into Lula's presidency, how is Brazil faring?

Author:
François d'Arcy
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
This study, which examines the chances of success of the government of Luiz Ináci Lula da Silva, takes as its starting point the idea that the main obstacle resides in the structure of the Brazilian political system. Being unable to reform that system, President Lula has skilfully adapted to it, but not without having to forge certain unusual alliances. He has, nevertheless, honoured the campaign promises which brought him to power after three unsuccessful attempts in a row, maintaining anti-inflationary policies and strict budgetary discipline, and respecting commitments given concerning public debt and privatised companies. This macroeconomic policy – which follows on from that of Fernando Henrique Cardoso – dominated his government's first year in office, slowing the implementation of new policies addressing social issues and sustainable development. So far, the latter policies would appear to point more to continuity than to radical change, a fact which will, doubtless, contribute greatly to their success.
Topic:
Economics, Government, and Politics
Political Geography:
Brazil and South America

5373. The mysteries of Vietnamese "socialist democracy". Evolution of the people's assemblies and of the legal system since the launch of the Dôi moi

Author:
Matthieu Salomon
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
Since the 1980s – and, more symbolically, since the 6th Communist party Congress - Vietnam has been engaged in reform, which is referred to as "dôi moi", i.e. renewal. While their aim is, first and foremost, to change the rules governing economic activity, these reforms have, since the 1990s, also been associated with political, institutional and legal change. Influenced, on the one hand, by endogenous constraints arising out of the necessary adaptation of the politico-legal environment and of the evolution of the power-legitimation processes and, on the other hand, by exogenous constraints born of the desire for integration into the international community and economy, the discourse of the Vietnamese authorities and the country's fundamental political texts have both been modified. It seems undeniable that, despite its weightiness and areas of permanence, the Vietnamese politico-legal system is, de facto, slowly evolving and becoming "normalised". The intention here is not to suggest that Vietnam is undergoing a "democratic transition" bringing it closer to a western model of reference. The aim of the regime may be defined thus: "to consolidate the single-party system while satisfying the demands for modernisation". By means of an analysis of the system of people's assemblies elected by the population and of the legal - i.e. juridical and judicial - system, this study attempts to provide an insight into the regime's capacity for politico-legal innovation and, notably, into its capacity to structure new arenas for debate. It examines the complex evolutions which have affected the rules and players of this too-often-neglected aspect of a changing Vietnam.
Topic:
Development, Economics, and Politics
Political Geography:
Southeast Asia

5374. The Political Economy of Regionalism: Current Theorizing and Preliminary Observations on the G-3 FTA

Author:
Antonio Ortiz Mena López Negrete
Publication Date:
12-2004
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
This working paper provides and overview of current theorizing on the political economy of regional integration. Specifically, it assesses several theories that attempt to explain the causes behind the resurgence or regionalism in the late 1980's and early 1990's with special emphasis on Milner's demand-driven theory based on demands for regionalism by firms with internal increasing returns to scale. After reviewing the main propositions of the theories in light of the G-3 Free Trade Agreement, it finds that no single theory adequately accounts for the causes behind the establishment of the agreement, that Milner's model is better at specifying preferences than outcomes, and that greater attention should be paid to the institutional forms of regional integration agreements.
Topic:
Economics, Industrial Policy, Political Economy, and Regional Cooperation

5375. Policy Learning, Policy Diffusion and the Making of a New Order

Author:
Covadonga Meseguer
Publication Date:
11-2004
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
This chapter surveys the role of learning as mechanism of policy diffusion in the context of the creation of a new political order. I discuss policy learning against the background of recent research on the diffusion of deregulatory and regulatory policies, and attempt to distinguish learning from other mechanisms of diffusion. I then survey the challenges entailed in testing this mechanism and set out my particular approach: a rational version of learning. I also report the results of preliminary efforts to test learning as applied to the diffusion of regulatory policies. I conclude that learning cannot be rejected as a plausible mechanism of the diffusion of policies, although it shares its explanatory role with less rational mechanisms of diffusion, in particular policy emulation. Further research and analysis is needed to test learning in either its rational or its bounded version, and in doing so to delve into the politics of learning.
Topic:
Foreign Policy, Development, Economics, and Politics

5376. Las relaciones económicas internacionales de México hacia el siglo XXI: retos y oportunidades. Reporte.

Author:
Antonio Ortiz Mena L.N. and Ninfa Fuentes
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
On December 2002, the Division of International Studies (DEI) at the Centro de Investigación y Docencia Económicas (CIDE) organized the forum “The International Economic Relations of Mexico: Challenges and Opportunities” with the support of the Konrad Adenauer Foundation. The forum approached the international economic relationships of Mexico, from the regional and multilateral perspectives. The objective of the forum and of this document is to evaluate the relationships that Mexico maintains with each one of the regions and countries approached in the forum, highlighting the challenges and the opportunities that each one of them presents. We live an opportune moment to design a prospective and coherent vision of the international economic relationships of Mexico in the XXI Century among government's organs in order to avoid arriving to a point in which Mexico would have a reduced maneuver margin. The participants who took part in the forum and a list of acronyms are included at the beginning of the document. The conference agenda can be found as well. This document intends to reproduce the essence of the forum discussions and the participants' presentations. It is our intention to reflect in a clear and honest manner the participants' statements in this paper. Any lack of precision is not intentional and is exclusively our responsibility.
Topic:
International Relations, Development, and Economics
Political Geography:
Central America and Mexico

5377. Taxpayer's Rights and Obligations: Analysis of Implementation and Enforcement Mechanisms in Uganda

Author:
Emmanuel Kasimbazi
Publication Date:
10-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This study uses Income Tax and Graduated Personal Tax to illustrate how taxpayers' rights and obligations are enforced. Existing literature on tax reform points to the fact that consideration of the rights and obligations of the taxpayers is central to the overall tax reform strategy. In fact, reform processes that do not effectively consider the rights of taxpayers will alienate and create discontent among the citizens. In the last few years, Uganda has taken keen steps to effectively reform its tax legal regime.
Topic:
Democratization, Economics, and Government
Political Geography:
Uganda and Africa

5378. The EU's Security Policy Towards the Mediterranean: An (Im)possible Combination of Export of European Political Values and Anti-terror Measures?

Author:
Ulla Holm
Publication Date:
10-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The Southern part of the Mediterranean has been put high on the EU-security agenda after 9/11. The Working paper makes the argument that the EU-politics towards its Arab Mediterranean neighbours are staggering between a status quo oriented politics and a politics of export of democracy. The tension is seen as an expression of two conceptualizations of the Mediterranean and the uneasy combination of four contradicting concepts on the relationship between the Mediterranean and the EU. The first conceptualization is about the Mediterranean as a cultural cradle of great civilizations. The other one is about the Mediterranean as a conflict-ridden zone. These conceptualizations are interlinked in the discourses on how to export security to the South and which kind of security the EU has to promote. The inter-linkage between the two conceptualization of the Mediterranean is furthermore linked up to two oppositional representations of the EU: the EU as an exporter of democracy and the EU as being a model to copy but not an empire-builder. This results in the following dilemmas caused by the oppositional relationship between four concepts: Respect for cultural diversity and export of political shared values. Respect for Arab sovereignty and export of European political values. The opposition between the four concepts is sharpened by Islamic terrorism which underlines the uneasy 'marriage' of the four concepts.
Topic:
Economics and Sovereignty
Political Geography:
Europe and Arabia

5379. Migrant Transfers as a Development Tool: The Case of Morocco

Author:
Nina Nyberg Sørensen
Publication Date:
10-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In 2003, the Global Development Finance Annual Report took formal notice of remittances as an important source of external development finance for the first time, listing Morocco as the 4th largest remittance recipient among developing countries. This paper examines the positive and negative results of remittances on Moroccan development, as well as of other migration-driven social changes. It offers a brief historical background to Moroccan migration and examines more closely Moroccan emigration to the EU from the early 1960s. Remittance practices are discussed, as is the issue of return migration. The paper concludes by discussing prospects for general development in the country and summarizing policy options in the field.
Topic:
Development, Economics, and Migration
Political Geography:
Europe and Morocco

5380. The Development Dimension of Migrant Transfers

Author:
Nina Nyberg Sørensen
Publication Date:
10-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The current appreciation of remittances as a development tool is recent and several questions on how best to capture their development impact remain. This working paper addresses some of the fundamental questions pertaining to the role of remittances in the migrationdevelopment nexus. Apart from offering a conceptual tool for understanding of the importance of remittances for developing countries, the paper gives a global overview of various types of remittance flows, the dynamics of such flows and their possible developmental impact on developing countries, including those experiencing conflicts. The paper concludes by offering some ideas on how appropriate policy measures could contribute to making remittances into an effective development tool.
Topic:
Development, Economics, and Migration
Political Geography:
Europe

5381. Conflicting Motivations: The Private Sector and International Conflict

Author:
Luke A. Patey
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Since the end of the Cold War, the world has been witness to a drastic increase in the number and magnitude of inter- and intra-state wars. These conflicts have predominately taken place within developing and underdeveloped countries and have led to substantial human, economic, and political costs at both local and international levels. The United Nations, along with international financial institutions and the global civil society, has recognized the need for curbing the violence and preventing further outbreaks. However, the political breadth and financial capacities of these organizations cannot ensure sufficient socio-economic recovery through peace-building operations alone. A more progressive approach is required. Responsible and committed engagement from private sector actors can provide a thrust towards reducing poverty in war-torn societies. Over the long term, the private sector in conjunction with international and non-governmental organizations can accelerate the process of postconflict reconstruction and encourage lasting peace through economic prosperity.
Topic:
Economics, Politics, Third World, and United Nations

5382. From Water 'Wars' to Water 'Riots' - Lessons from Transboundary Water Management

Author:
Jannik Boesen and Helle Monk Ravnborg
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Over the last decade, water scarcity has increasingly been coupled with international security. Due to the nature of water – a fluid life-necessity and a key ingredient in economic development, driven by gravity across boundaries – it has been anticipated that water may trigger international conflicts – the so-called water wars – in the future.
Topic:
International Relations, Security, Economics, and Environment

5383. Concepts and Experiences with Demand Driven Advisory Services

Author:
Esben Friis-Hansen
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The current institutional framework for agricultural services in East and Southern Africa was designed for a state-sponsored supply-driven approach. These institutions demand large field staff levels and are associated with high costs often financed by World Bank loans. These institutions are moreover ill-suited to respond to the demands from clients that are now emerging through development interventions and policies. Farmers are marginally involved with planning the content and means of service provision. Top-down approaches also fail to target agricultural services to women and vulnerable groups. Demand-driven advisory services have evolved over recent years and involve changing the role of extension agents from advisors to facilitators; increasing control by farmers through cost sharing; increasing the use of contracted services; and emphasizing knowledge provision rather then narrow technical advice.
Topic:
Agriculture and Economics
Political Geography:
Africa

5384. New Sources of Development Finance: Funding the Millenium Development Goals

Author:
Anthony B. Atkinson
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
In order to achieve the Millennium Development Goals (MDGs), substantial additional external funding needs to be mobilized. Estimates differ, but a 'ballpark' figure is an annual increase of US$50 billion. This could be achieved by a doubling of official development assistance (ODA). Welcome steps have been made in that direction, but this takes time, and time is of the essence. For this reason alone, it is necessary to consider new sources.
Topic:
Development, Economics, International Cooperation, and United Nations
Political Geography:
United States

5385. Sustainability of External Development Financing to Developing Countries

Author:
Matthew Odedokun
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
External development finance consists of those foreign sources of funds that promote or at least have the potential to promote development in the destination countries if delivered in the appropriate form. This rather broad definition qualifies all forms of external finance, and the quality and quantity of their inflows to developing countries are thus covered in the studies that form the background to this Policy Brief. These include official bilateral and multilateral, private commercial, and private noncommercial flows. A common characteristic is that all these types of flows are inadequate or becoming inadequate on the one hand and that their distribution is lopsided geographically and/or temporally, on the other.
Topic:
Development, Economics, International Cooperation, and United Nations

5386. Poverty, International Migration and Asylum

Author:
Christina Boswell and Jeff Crisp
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
In recent years, the issues of international migration and asylum have risen to the top of the international agenda. The pressures and opportunities linked to the process of globalization have led to an increase in the number of people moving from one country and continent to another. At the same time, insecurity and armed conflict in many of the world's poorest and economically marginalized states have triggered new waves of displaced people.
Topic:
Economics, Migration, Poverty, and United Nations

5387. Race, Ethnicity, and Economic Well-Being

Author:
Kenneth Finegold and Laura Wherry
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
Poverty has decreased among blacks, Hispanics, and whites in recent years. Yet only whites have experienced less hardship in the areas of food and housing. In contrast, blacks have seen an increase in housing hardship, while food hardship has increased among Hispanics.
Topic:
Demographics, Economics, and Poverty
Political Geography:
United States

5388. Through Economy to Democracy and Security? An Integrated Approach to Stability in South East Europe - 7th Workshop of the Study Group "Regional Stability in South East Europe"

Author:
Frederic Labarre
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
Austrian National Defence Academy
Abstract:
In contrast to the Central European transition countries, the economies of South East Europe (SEE) have been facing complex and interrelated political and economic problems. The dissolution of Yugoslavia combined with market losses, war in Bosnia and Herzegovina and Croatia, sanctions finally culminating in the Kosovo conflict were the main causes of political and economic instability in the whole region. Taking into account these factors, output recovery has been much slower in SEE than in the Central European countries. Measured in purchasing power standards, Croatia is the best performer in the region, with its GDP at about 38% of the EU average. Next comes Bulgaria (32%), whereas the respective values for Serbia and Montenegro and Albania range between 15-17%. Looking at the economic performance in the 1990-2002 period, Croatia and Romania reached almost 94% of their pre-transitional level in 2002, followed by Bulgaria and Macedonia (about 88% each). Serbia and Montenegro, the worst-affected, reached only about half of what it was in 1990. The cumulative output decline there was one of the largest among all the Central and East European countries.
Topic:
NATO, Diplomacy, Economics, Political Economy, and Regional Cooperation
Political Geography:
Europe, Bosnia, Herzegovina, Kosovo, Yugoslavia, Bulgaria, Balkans, and Romania

5389. Obstacles Impeding the Regional Integration of the Javakheti Region of Georgia

Author:
Jonathan Wheatley
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
European Centre for Minority Issues
Abstract:
This working paper is a consolidated and condensed analysis of a longer field report originally carried out as part of ECMI's action-oriented project “Defusing interethnic tension and promoting regional integration – the Javakheti Region of the Republic of Georgia”. Both the original field report, and this resulting analysis aim to provide an insightful overview of current the social, economic and political situation in two rayons (districts) of Georgia; Akhalkalaki rayon and Ninostminda rayon; which together combine to form a geographical area better known as the Javakheti Region in southern Georgia. By identifying and providing information about the current problems impeding the regional integration of Javakheti, this working paper will act as a guide for defining priorities and ensuring more informed intervention in the area.
Topic:
Economics, Ethnic Conflict, and Politics
Political Geography:
Eastern Europe and Georgia

5390. Does Lootable Wealth Breed Disorder? A Political Economy of Extraction Framework

Author:
Richard Snyder
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This article proposes a political economy of extraction framework that accounts for political order and state collapse as alternative outcomes in the face of lootable wealth. Different types of institutions of extraction can be built around lootable resources—with divergent effects on political stability. If rulers are able to forge institutions of extraction that give them control over the revenues generated by lootable resources, then these resources can contribute to the maintenance of political order by providing the income with which to govern. In contrast, the breakdown or absence of such institutions increases the risk of civil war by making it easier for rebels to get income. The framework is used to explain two puzzling cases that experienced sharply contrasting political trajectories in the face of lootable resources: Sierra Leone and Burma. A focus on institutions of extraction provides a stronger understanding of the wide range of political possibilities—from chaos, through dictatorship, to democracy—in resource-rich countries.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Burma and Sierra Leone

5391. On the Role of Distance for Outward Foreign Direct Investment

Author:
Peter Egger
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper focuses on the estimation of three distance-related effects on outward foreign direct investment (FDI). (i) Distance harms vertical multinationals, since they engage in trade. (ii) It makes non-trading multinationals better off than exporters. (iii) This positive effect on horizontal FDI is expected to rise with bilateral country size due to the home market effect. The use of panel data and related econometric methods is highly recommended to avoid parameter bias from endogenous, unobserved, time-invariant effects. A unified estimation approach to assess all three hypotheses then has to rely on instrumental variable techniques for generalized leastsquares methods. In the empirical analysis of 1989–1999 bilateral US outward FDI stocks at the industry level, it is shown that testing and accounting for autocorrelation is extremely important for parameter inference. In sum, the paper lends strong support to the theory of horizontally organized multinationals as outlined in Markusen and Venables (2000).
Topic:
Economics and International Trade and Finance
Political Geography:
United States

5392. Unemployment, Macroeconomic Policy and Labor Market Flexibility: Argentina and Mexico in the 1990s

Author:
Roberto Frenkel and Jaime Ros
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper compares the divergent unemployment experiences in Argentina and Mexico in the 1990s, examining in detail the remarkable contrasts in the adjustment of the labor market in these two countries that occur despite equally striking similarities in the evolution of a number of macroeconomic variables and external economic shocks. The paper focuses on the role of macroeconomic policies and the type of industrial restructuring in these developments and considers to what extent the divergent unemployment experiences can be explained by differences in the institutional characteristics of the labor market.
Topic:
Economics and Industrial Policy
Political Geography:
Argentina, South America, North America, and Mexico

5393. Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat?

Author:
David Skarbek and Benjamin Powell
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Many studies have shown that multinational firms pay more than domestic firms in Third World countries. Economists critical of sweatshops have responded that multinational firms' wage data do not address whether sweatshop jobs are above average because many of these jobs are with domestic subcontractors. In this paper we compare apparel industry wages and the wages of individual firms accused of being sweatshops to measures of the standard of living in Third World economies. We find that most sweatshop jobs provide an above average standard of living for their workers.
Topic:
Economics, Human Welfare, Industrial Policy, and Third World

5394. Institutional Foundations of Economic Freedom: A time-series cross-section analysis

Author:
Xavier de Vanssay, Vincent Hildebrand, and Zane A. Spindler
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Using time-series cross-section analysis, we provide additional empirical validation for the principal-agent model developed by Adserà, et al. (2003). In our innovation, efficient economic policy is proxied by “economic freedom” from the Fraser Institute database and “political institutions” are proxied by variables from the Database of Political Institutions. Our results suggest that the more credible the threat of removal from office, the more government officials will pursue efficient economic policies.
Topic:
Development, Economics, Government, and Political Economy

5395. Firm Size, Technical Efficiency and Productivity Growth in Chinese Industry'

Author:
Dic Lo and Yuk-Shing Cheng
Publication Date:
12-2004
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Since the mid-1990s, China's state leadership has adopted a policy of nurturing the competitiveness of large state-owned industrial enterprises. The implications of this policy have been a matter of debate in the literature. This paper seeks to provide some useful input into the debate. With a view of investigating into the potential of long-term development of large enterprises, we estimate the “sequential production technology” in computing the Malmquist productivity index for various size-groups of enterprises in Chinese industry. Our findings indicate that large enterprises did register the fastest productivity growth and improvement in technical efficiency in the 1994-97 period. It thus appears that large-scale, mainly state-owned Chinese enterprises have exhibited the potential of m a king noticeable improvements and the relevant state policy does have its justification.
Topic:
International Relations, Development, Economics, and International Political Economy
Political Geography:
China

5396. Social origins of Ottoman industrialisation: Evidence from the Macedonian town of Naoussa

Author:
Costas Lapavitsas
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Ottoman industrialisation in cotton spinning was led by the town of Naoussa in Macedonia. This paper shows that Naoussa capitalists grasped the opportunities created by trade liberalisation, accumulated capital in domestic manufacture of woollen cloth, and secured a regular supply of low-wage female labour and free hydraulic energy. It is further shown that they took advantage of local institutional and political mechanisms within the Christian community independent of the relatively remote Ottoman state. But there was no capitalist transformation of agriculture, even though Naoussa capitalists often owned large land estates. Lack of broader institutional and political influence and absence of capitalist transformation of agriculture hampered the transformation of Naoussa capitalists from a provincial social group into a broad-based capitalist class.
Topic:
International Relations, Development, Economics, and International Political Economy
Political Geography:
Macedonia

5397. China's Nexus of Foreign Trade and Economic Growth: Making Sense of the Anomaly

Author:
Dic Lo
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Using a range of specifications that are standard in the relevant literature, this paper finds that China's rapid and sustained economic growth in the reform era has tended to be negatively correlated with its export growth and positively correlated with its import growth. This finding runs counter to widely -held perceptions on China's nexus of foreign trade and economic growth, and thus presents a serious challenge for interpretation. On the basis of some further regression analyses, and drawing on a number of applied studies on the subject matter, the paper argues that the finding is plausible and of complex ramifications. The conclusion which this paper arrives at, therefore, is that the Chinese experience has tended to be a case of strategic integration into the world market, rather than conforming to the standard neoclassical thesis of trade regime neutrality.
Topic:
International Relations, Development, Economics, and International Political Economy
Political Geography:
China

5398. The case for regional exchange rate arrangement in East Asia'

Author:
Takuji Kinkyo
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
The Asian crisis highlighted the difficulties for developing countries to actively manage exchange rates in an environment of high capital mobility. Now it became fashionable to argue that the exchange rate should be either allowed to float freely or irrevocably fixed. This paper examines the case for regional exchange rate arrangements as an instrument to enhance the manageability of exchange rates and discusses the options in East Asia. It critically assess the existing proposal of common basket peg system and suggests that East Asia should seek to create an Asian-version of regional monetary system modeled on the EMS.
Topic:
International Relations, Development, Economics, and International Political Economy
Political Geography:
East Asia and Asia

5399. Disorderly adjustments to exchange rate misalignments: The experience of Korea'

Author:
Takuji Kinkyo
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper analyzes Korea's exchange rate dynamics before and during the crisis of 1997-98 by estimating the long-run fundamental exchange rate and the associated error correction model. The analysis suggests that although Korea's exchange rate was substantially overvalued before the crisis, the subsequent exchange rate dynamics could not fully be accounted by the need to correct misalignments. It was found that there was a large deviation from the short-run fundamental value of exchange rates, indicating the presence of “overshooting of the overshooting equilibrium” during the crisis. The findings have important policy implications for crisis management in emerging market economies.
Topic:
International Relations, Development, Economics, and International Political Economy
Political Geography:
Korea

5400. Transmission channels of capital flow shocks: why Korean crisis was so severe'

Author:
Takuji Kinkyo
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
The Asian crisis highlighted the vulnerability of emerging market economies faced by sudden capital flow reversals. An important question that has critical implications for crisis management is how negative shocks in capital inflows were transmitted to economic activities, transforming financial instability into fully-fledged crises. Using VARs, this paper analyzes the transmission mechanism of capital flow shocks during the Korean crisis of 1997-98. Although it is commonly believed that severe economic contractions were caused by credit crunch, the analysis suggests that the major constraint for production was a steep rise in prices of imported inputs due to sharp exchange rate depreciations.
Topic:
International Relations, Development, Economics, and International Political Economy
Political Geography:
Asia and Korea