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10101. Danish Security Policy over the last 50 Years - Long-Term Essential Security Priorities

Author:
Bertel Heurlin
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This article is about the general priorities of Danish security policy over the last 50 years. But what exactly is security policy – and how should one perceive priorities? First a few remarks on semantics. The term security policy is new. From 1949 Denmark only gradually used the term security policy, rather than defence policy and foreign policy. In 1945 the United Nation's Security Council had been established. It was to act on behalf of the Member States when international peace and security were threatened. In 1947 the National Security Council was established in the United States. The Council was evidently intended to take care of the US' national security. With the introduction of these vital institutions the step was taken towards using the terms ”international” and ”national security policy”. In general the term ”security policy” became common in the beginning of the 1960s. Minister for Foreign Affairs Per Hækkerup talks about security policy in his book on Danish Foreign Policy from 1965. Furthermore the Ministry of Foreign Affairs in 1967 could publish the first book on Danish security policy.
Topic:
Security, Foreign Policy, and Politics
Political Geography:
Europe

10102. Greenland's geopolitical reality and its political-economic consequences

Author:
Jens Kaalhauge Nielsen
Publication Date:
06-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Geopolitics is an old concept, which received its classic modern form in the work of Friedrich Ratzel, Rudolf Kjéllen, Harold J. Mackinder, Alfred T. Mahan, and Karl Haushofer. It can be regarded as an intellectual approach that aims at establishing a political grammar of world politics, through a scientific discipline based on the objective reality of geography. Thus, geopolitics is often seen as a “realistic” attempt to establish world policy as an objective science based on some kind of "physico-spatial reference". The implicit assumption is a discreet claim that it is possible to study international politics and the allocation of power as one studies the weather: as a system based on objective, natural laws with a fixed and firmly established pattern of forces and indispensable reference points. Hence, Halford J. Mackinder believed that he could identify "the Geographical Pivot of History." In this way, somewhere behind the concept of geopolitics as a scientific concept lies a compelling idea: a theory of the international system based on sheer objective forces, which can be reduced to the invariable necessities of an ultimate "physical" matrix that was merely given expression by the vocabulary of "national interests." We find the same notion in the concept of "realpolitik," the idea that it is possible to conduct a policy grounded on a realm of crucial necessities, as in Bismarck's policies framed in the image of Iron and Blood.
Topic:
Foreign Policy, Economics, and Politics
Political Geography:
Europe

10103. In Tempestuous Waters: Denmark and the WTO Regime

Author:
Erik Beukel
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
International trade negotiations and the World Trade Organisation (WTO) have come into the public limelight. Until a few years ago, the governance of the world trading system, encapsulated in General Agreement on Tariffs and Trade (GATT), was considered a mundane and dull subject to which only a few people with a special economic interest payed attention. Today, however, the problems dealt with in the WTO affect much broader economic interests and attract attention from different political persuasions and social movements, as illustrated by the battle in Seattle, in December 1999, when the Third Ministerial conference of the WTO was met by massive demonstrations organised by multifarious NGOs. Generally, multilateral economic institutions, such as the World Bank, the International Monetary Fund (IMF), and the WTO, have become tempestuous waters, because among other things these institutions are contested by a medley of non-governmental organisations (NGOs) and grass roots movements (O'Brien et al. 2000). The conflict centres on “globalisation”, a controversial and ambiguous notion (Hirst and Thompson 2000), and the WTO is a focal point of the globalisation storm (Hart 1997).
Topic:
Economics, International Trade and Finance, and Politics
Political Geography:
Europe

10104. European Defence: Visions and Realities?

Author:
Julian Lindley-French
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Good morning, ladies and gentlemen. It is a real honour for me to be here today to address you on the complex subject of European Defence: Vision and Realities. I am grateful as ever to Bertel Heurlin and David Munis Zepernick for arranging this chance to discuss with you European defence at what is a crucial moment. Last time I was here I spoke a lot about visions, so today, as you will hear, the emphasis will be on realities rather than visions.
Topic:
Security, Defense Policy, and Government
Political Geography:
Europe

10105. Can Slovakia Catch Up? The Implications of EU Accession Talks a Year After the Helsinki Summit

Author:
Vladamir Bilcik
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Since the dissolution of Czecho-Slovakia in 1993, Slovakia, with its population of about 5.4 million, has emerged as one of the two new successor states. Yet, since gaining its independence Slovakia's political developments have followed a somewhat divergent path from the course of its new western neighbor - the Czech Republic. More broadly, Slovakia also diverged in its transition to democracy from Poland and Hungary, the other two Central European neighbors and two essential elements of the Visegrad group. As a result, Slovakia has been coined as "a region specific country". Its case of regime change from the communist to the post-communist rule has been described as "a borderline case between that of more advanced Central European and lagging South-East European countries". (Szomolanyi, 2000: 16).  Â
Topic:
International Relations, Democratization, and Government
Political Geography:
Europe

10106. European [security] Union: from existential threat to ontological security

Author:
Ian Manners
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The past ten years have seen the steady escalation of attempts to securitise the EU which, for good or for bad, are now beginning to succeed. Across Europe the EU is fast becoming a convincing reason for groups to mobilise in protest and action - from Copenhagen to Nice to Gothenburg the EU has become a synonym for 'threat'. As this paper will explore, the securisation of the EU is occurring as it begins to be represented as a threat to ontological security, and eventually existential security, in the lives of Europeans and non-Europeans. But how best to think about the European [security] Union as it attempts to balance the headline security concerns of conflicts on its border with the structural security concerns of its citizens. This thinking involves questioning the very nature of the security the EU is attempting to secure through a series of reflections on the many dimensions of security, the ontopolitical assumptions of differing metatheoretical positions, and finally arguing the need to desecuritise the EU.
Topic:
Security, Defense Policy, and Government
Political Geography:
Europe

10107. Short and Long-Term Dynamics in the EU's Northern Dimension

Author:
Nicola Catellani
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In the last decade the process of European integration has been characterised by an increased capacity of the European Union (EU) to develop a certain subjectivity on the international arena. In particular, the EU has been able to elaborate multifaceted approaches towards most of its neighbouring areas.
Topic:
Diplomacy
Political Geography:
Europe

10108. The 'Difference Engine': Constructing and Representing the International Identity of the European Union

Author:
Ian Manners
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The purpose of this paper is to more fully develop the notion of the international identity of the EU previously suggested by Richard Whitman and myself. I will attempt to balance our previous focus on the 'active dimension' of the EU's attempts to 'assert its identity on the international scene' by looking at the 'reflexive dimension' of the EU's international identity from a more sociological perspective. This paper will argue that the distinctive polity perspectives and role representations of the EU can be thought of as a form of 'difference engine' which drives the construction and representation of the EU's international identity. Like Babbage's original difference engine, the EU's international identity is not a multiplier of difference, exaggerating the dissimilarities between the EU and the rest of the world through the generation of a new European supranational identity, but functions solely on the basis of addition - by adding an EU element to Europeans' complex and multifaceted identities.
Topic:
International Relations
Political Geography:
Europe

10109. The Construction of Europe in the Northern Dimension

Author:
Christopher S. Browning
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This article focuses on the construction of Europe at the turn of the millennium. Unlike most approaches to this issue that tend to focus analysis on debate in Brussels, the most powerful member states, or on the various IGCs, this paper looks at this question through the lens of the discourses surrounding a regional initiative. The initiative in question is that of the Northern Dimension with the argument being that it is on the EU's borders and in the regional peripheries that the debates constructing the EU can be most clearly identified. In this respect the article contributes to a growing constructivist/poststructuralist literature that places boundary producing practices at the heart of the constitution of subjectivity.
Topic:
Globalization and International Political Economy
Political Geography:
Russia, Europe, and Asia

10110. The European Union and Globalisation: Reflections on Strategies of Individual States

Author:
Morten Kelstrup
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Major developments in European politics are related to two simultaneous processes: the process of globalisation and the process of Europeanisation. As Helen Wallace has recently remarked: “For too long the debates on globalisation and on Europeanisation have been conducted in separate compartments and in different terms” (Wallace, 2000, 369). The purpose of this paper is to support the effort in bringing the two debates together. The paper will discuss the two processes, discuss how they interlink, and have a special focus on possible strategies and dilemmas of individual states that are confronted with both processes.
Topic:
Globalization and International Political Economy
Political Geography:
Russia, Europe, and Asia

10111. The New Saint Petersburg: A Case of Border-Making or Border-Breaking?

Author:
Pertti Joenniemi
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The naming of St Petersburg appears to form a distinct pattern. The city emerged in the context of early modern Russia and gained a name that signalled - by having Dutch and German rather than Russian connotations - some degree of mental openness. The choice was very much in line with the overall endeavour of breaking the isolation caused by Russia's somewhat peripheral location in view of the rest of Europe.
Political Geography:
Russia, Europe, and Asia

10112. On the Encounter Between the Nordic and the Northern: Torn Apart but Meeting Again?

Author:
Pertti Joenniemi and Marko Lehti
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The North is no longer as immobile and sedimented as before. It does not just mark something local and extremely peripheral but has turned into an increasingly legitimate marker of Europeanness in the form of the EU's Northern Dimension Initiative. The marker is not just used to frame some space in the margins of the European configuration; it is also used as an umbrella in co-ordinating the relationships between specific regional formations such as Nordic, Baltic, Barents and Arctic co-operation. This added centrality of the North raises a host of questions about the unfolding of political space in the northern part ofEurope. Our aim here is to tackle some of them by exploring in particular the encounter that is now unfolding between the new North and the more traditional Norden, two configurations that to some extent compete for the same space. Essential relationships are being re-negotiated, this enforcing various actors to choose between different representational frames, each with their own specific identities and spatial coverage. Above all, we seek to provide the encounter with a temporal background in viewing both of them as discursive constructs that are condusive to change.
Political Geography:
Europe and Nordic Nations

10113. NATO and The South-Eastern Europe – Powerless of Powerfuls And Power of Weaks in Ethnic Conflicts

Author:
Zlatko Isakovic
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Several major interrelated events overshadowed others within the relationships between NATO and the countries of the South-eastern Europe last few years. Among them seems to be on the top of the list the NATO enlargement process, the NATO engagement in the Kosovo conflict, and the transformation of NATO's role or mission.
Topic:
Security and NATO
Political Geography:
Europe

10114. Intrastate Conflicts, International Interventions and their Implications on Security Issues, Case of Kosovo

Author:
Enika Abazi
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Intra-state conflicts are not a new phenomenon. Since 1945 they have been more frequent and more violent than inter-state warfare (SIPRI-UNESCO Handbook, 1998: 13-25). With the end of the Cold War these tendencies exuberated following mostly in the lines of ethno-national and separatist-armed conflicts, bringing a significant shift in the perception of security issues and alternative approaches to it, especially in Europe. In particular, the changing dialogue of sovereignty, identity and security and international responsibility appears to be increasingly significant. Considering that the prepositions in IR depend on both empirical validity and logical soundness a theoretical exercise on the case of intra-state conflicts questions the validity of the traditional state developed concept of security. The path is open for new interpretations and understanding of normative, operational and structural issues in contemporary world politics.
Topic:
Security, Ethnic Conflict, and Sovereignty
Political Geography:
Europe

10115. Turkey and Europe: Ongoing Hypocrisy?

Author:
Dietrich Jung
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
“There is only one way to escape these dangers, which is to emulate the progress of the Europeans in science, industry and military and legal organization, in other words to equal them in civilization. And the only way to do this is to enter European civilization completely” (Ziya Gökalp1876-1924). These words of Ziya Gökalp, the most prominent nationalist intellectual of the late Ottoman Empire, whom Mustafa Kemal Atatürk himself called the “intellectual father of the new Republic”, nicely reveal the historical paradox behind Turkish-European relations. They are an expression of both Turkey's desire to be acknowledged as a European state and the deeply rooted Turkish mistrust vis-à-vis the intentions of Europe. The victim of European power politics wants to be equal to its victimizers. On the basis of this paradox, this article claims that the mutual suspicions that have marred Turkish-EU relations cannot be understood without taking the historical legacies of Ottoman-European relations into account. In particular, it presents a critique of the flawed strategy of some circles that try to facilitate Turkey's EU accession by exploiting the country's geo-strategic assets. In putting the focus on security issues, the article will unmask the contradictions in this strategy, which rather contributes to maintaining the historically caused, distorted and sometimes hypocritical communication between Turkey and the EU.
Topic:
NATO
Political Geography:
Europe, Turkey, and Middle East

10116. Europe and the Crises in the Great Lakes Region

Author:
Bjørn Møller
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The first question one must ask is whether “the Great Lakes Region” is in fact a meaningful and useful frame of analysis.
Topic:
Conflict Resolution and Ethnic Conflict
Political Geography:
Africa and Europe

10117. French Military Doctrine in the 1990s

Author:
Sten Rynning
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The end of the Cold War and the disappearance of the strategic rationale for territorial nuclear deterrence have raised fundamental questions in relation to French military doctrine. Significant territorial threats have disappeared, and the main role for military instruments now lies on the peripheries of Europe or further beyond. For those who had invested faith in nuclear deterrence and strategic stability—and that concerns most actors not only in France but also elsewhere among NATO allies—this change of events has been a severe challenge. President Mitterrand symbolizes the pains of adjustment in many ways as he never seriously considered changing track and became instead an ardent opponent of profound reform.
Topic:
Defense Policy, NATO, Cold War, Nuclear Weapons, and Reform
Political Geography:
Europe and France

10118. Structural Geopolitics in Europe: Constructing Geopolitical Subjectivity for the EU and Russia

Author:
Pami Aalto
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This paper is designed to elucidate structural geopolitics in Europe. This entails mapping the main structural developments and processes in contemporary Europe in the sphere of spatially and geographically coloured politics, i.e. geopolitics.
Topic:
International Political Economy
Political Geography:
Russia, Europe, and Asia

10119. Global Conditions and Global Constraints: The International Paternity of the Palestinian Nation

Author:
Dietrich Jung
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In a recent article, Michael Mandelbaum depicted Middle Eastern states as the most combative members of the international community. He painted the picture of a region in which “traditional motives for war – gold and God – are still alive” (Mandelbaum 1999). In line with this rather stereotypical perspective, the Middle East is often viewed as a zone of conflict, in which competition for scarce resources (“gold”) inevitably leads to violent encounters between actors that are guided by irrational ideas (“God”). The long and bloody history of the Palestine conflict has contributed a lot to coroberating this image of a region in which violence seems to be endemic. In terminating the so-called Middle East Peace Process, the current “Al-Aqsa Intifada” marks another violent step in this conflict that has frequently escalated to warlike proportions in the form of popular unrest, communal riots, anti-colonial insurgencies, guerilla and terror attacks, as well as civil and inter-state wars. Yet behind these waves of violence and counter-violence, we can easily discern patterns of a kind of nationalist conflict with which European history is far more familiar than the stereotype of Middle Eastern irrationality admits. Despite the academic obsession with proclaiming the “end of territoriality” and the “decline of the nation-state”, the Palestine conflict represents a painful but vivid remnant of those national conflicts that politically characterized the nineteenth and twentieth centuries in Europe.
Topic:
Conflict Resolution and International Organization
Political Geography:
Europe, Palestine, and Arab Countries

10120. Austria's Role in an Enlarged European Union

Author:
Benita Ferrero-Waldner
Publication Date:
10-2001
Content Type:
Working Paper
Abstract:
European unity has come a long way. As early as 1946 – under the impression of the cataclysm of World War II – statesmen like Winston Churchill dreamed of a better Europe. “We must build a kind of United States of Europe”, Churchill said.
Topic:
Political Economy
Political Geography:
Europe and Asia

10121. Sustaining Media Pluralism in Democratizing Societies

Author:
Craig L. LaMay
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
In 1974 a global "third wave" of democratization began when a military coup in Portugal ended the dictatorship of Antonio Salazar, who himself had come to power in a military coup in 1926. Over the course of the succeeding 15 years, about 30 countries changed from various forms of nondemocratic regimes to nominally democratic ones, most dramatically in South America and Central and Eastern Europe. During this period, notable transitions from nondemocratic rule also occurred in Africa and Asia.
Topic:
Industrial Policy and Science and Technology
Political Geography:
Africa, United States, Europe, Eastern Europe, Asia, South America, and Portugal

10122. The Declining Use of Unskilled Labour in Italian Manufacturing: Is Trade to Blame?

Author:
Paul Brenton and Anna Maria Pinna
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
As in other industrialised countries, the manufacturing sector in Italy has recently experienced a substantial increase in the use of skilled relative to unskilled workers — skill upgrading. In this paper we estimate a model, based upon the notion of outsourcing, of the relative demand for skilled labour which allows identification of the roles of technological change and trade, the two main culprits, in skill upgrading. Compared to previous studies of Italy the model is applied to highly disaggregated industrial data and in addition the impact of trade is more precisely measured through the separate identification of import flows from low-wage labour abundant countries and those from OECD partners. Furthermore we also introduce a measure of trade variability. Our results show firstly that economic variables played little or no role in determining the relative demand for unskilled workers in the 1970s in Italy, reflecting the nature of Italian labour market institutions in the period. Subsequently, in the 1980s and 1990s, following some labour market reforms, we find that international competition, in terms of import penetration and the variability of trade prices, had a significant effect on the relative demand for blue-collar workers in Italy in skilled intensive sectors. In unskilled intensive sectors, such as textiles and clothing, where the impact of imports from low-wage countries might be expected to be more pronounced, we do not find a significant effect from imports but rather that the most important role has been played by technological change. The result is consistent with previous studies that indicate that Italian textile and clothing firms have remained internationally competitive by increasingly switching to high quality segments of the industry.
Topic:
Economics, Government, Human Rights, International Trade and Finance, Migration, and Political Economy
Political Geography:
Europe and Italy

10123. The War Against Terrorism and the Transformation of the World Order

Author:
François Heisbourg, David C. Gompert, Klaus Becher, and Alexei Arbatov
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
If the Gulf War of 1990-91 was a “defining moment” – one in which countries had to take sides – 11 September 2001 was much more, a “transforming moment”: not only was there an obligation to stand up and be counted, but with the advent of hyperterrorism, the post-Cold War era itself came to an abrupt end. Before discussing the implications of this “transforming moment”, two preliminary remarks are in order.
Topic:
Security, Defense Policy, NATO, Cold War, and Terrorism
Political Geography:
Europe

10124. Shaping Europe's Migration Policy

Author:
Joanna Apap
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
During the 1990s, Justice and Home Affairs moved, in an unexpected way, to centre stage in the European debate. Concern had been growing about immigration policy since the Maastricht Treaty institutionalised the third pillar of the European Union. This concern had been stimulated by several factors – the persistence of irregular migration and tragic incidents, such as the one in Dover in July 2000 in which 58 Chinese nationals lost their lives trying to enter illegally into the United Kingdom, the need for immigrant workers in some sectors, and the spectre of an ageing European population. More generally, the Treaty of Amsterdam, since its entry into force in 1999, represents a major development in overall Justice and Home Affairs policy, and the implementation of the treaty provisions in Justice and Home Affairs was described as the next major EU initiative after the single currency.
Topic:
Economics, Government, Human Rights, International Trade and Finance, Migration, and Political Economy
Political Geography:
Europe

10125. What Are the Limits to Economic Integration?

Author:
Paul Brenton
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper discusses the continuing importance of borders, even within the EU, for the volume of international trade and global capital flows. It suggests that a range of factors, including the nature of the commercial, social and legal fabric of a country and the structure of consumers' preferences, act to constrain cross-border exchanges relative to internal transactions. Hence, whilst the process of globalisation may continue, there are likely to be distinct limits to the extent of economic integration. This entails that the traditional roles of governments in OECD countries in providing social welfare and regulating the market economy within national boundaries will not be seriously undermined. However, the situation may differ in developing countries where existing social and legal institutions may be compromised by globalisation rather than acting to dampen its impact.
Topic:
Economics, Government, Human Rights, International Trade and Finance, Migration, and Political Economy
Political Geography:
Europe

10126. Fiscal Policy Spillovers in the Euro Area: Where Are They?

Author:
Daniel Gros and Alexandr Hobza
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
What impact would a fiscal expansion in Germany have on the rest of the euro area? It has been generally suggested that it could go in either of two opposite directions, depending on the relative strength of two effects: the direct trade linkage and the financial market repercussions. A review of the results from four major macroeconomic models shows that the cross-country spillover effects of fiscal policy are indeed of uncertain sign and magnitude. Different models give quite different results if used in standardised simulations in terms of the sign, magnitude and time profile of the impact of a fiscal expansion in one member country (e.g. Germany) on other euro area countries. Fewer results are available concerning the potential spillover effects of structural policies, but they are similar to the ones concerning a budgetary stimulus: the magnitude of the spillover is small and varies across countries and over time.
Topic:
Economics, Government, Human Rights, International Trade and Finance, Migration, and Political Economy
Political Geography:
Europe and Germany

10127. The EU's Rapid Reaction Capability

Author:
Charles Grant, François Heisbourg, Kori Schake, and Dmitry A. Danilov
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
It has become something of a commonplace to say that the European Union is suffering from a lack of political leadership. Where are the Delors, Kohls, Mitterrands and Thatchers of today? This dearth is especially evident in the specific area of defence policy. For the European Security and Defence Policy (ESDP) is a new and still largely embryonic venture. The progress made over the past three years has been striking, but there is a real risk that the ESDP that finally emerges will be much less impressive or noteworthy than had been promised.
Topic:
Security, Defense Policy, NATO, and Terrorism
Political Geography:
Europe

10128. Seigniorage: An Argument for a National Currency?

Author:
Fransizka Schobert
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Seigniorage has often been mentioned as one of the most important and most readily quantifiable arguments for a government not to give up its monopoly in base money. The analysis shows that the measurement of seigniorage may lead to very different results and that it eventually depends on the monetary environment, in which central banks issue and manage base money. For less advanced countries in Central and Eastern Europe seigniorage has only been fiscally significant in high inflationary economies and even then the success in exploiting seigniorage has been limited. Widespread currency substitution has contributed to the results. Governments in these countries which are willing to stabilise prices but which lack crediblity to do so, may be increasingly interested in euroisation. More advanced EU-accession countries have received low revenues from having a national currency over the recent years. Seigniorage has arisen as a by-product of other central bank's objectives such as price and exchange rate stability. This caused high sterilisation costs and valuation gains of the central bank's asset portfolio have often been the main reason for positive results of seigniorage. In search for a viable monetary regime and in face of further liberalisations of capital markets these countries may look at euroisation as a choice to achieve price stability without exchange rate volatility.
Topic:
Economics and Political Economy
Political Geography:
Europe

10129. Democracy Promotion: The Case of European Union Strategy

Author:
Richard Youngs
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This working paper examines the nature of European Union democracy promotion policies since the mid-1990s. The analysis covers: EU democracy assistance projects; debates over the imposition of political conditionality; the importance attached to 'socialisation' dynamics; the relationship between commercial policy and democracy promotion; and a comparison between European and US approaches to political change. It is noted that the EU has developed significant new initiatives in the field of democracy promotion, many of which compare favourably with those of the US. The EU's approach to encouraging political change in the developing world has focused on enhancing the social and ideational foundations of sustainable democratisation, and has not favoured the systematic use of punitive conditionality. There have been notable attempts to link the democracy agenda to both grass roots development work and good governance initiatives. However, European democracy promotion still suffers from significant weaknesses. In particular, the different components of EU policy need to be dovetailed more effectively, based on a more balanced and comprehensive conceptualisation of the complex relationships between social, economic and political change.
Topic:
Democratization
Political Geography:
Europe

10130. Extending Citizenship Rights to Third Country Nationals

Author:
Joanna Apap
Publication Date:
10-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Various issues arise in the European context with respect to the boundaries of citizenship; one of the main questions is to what extent the division between the European Union citizens and third country nationals will increase, especially if “deepening” of the Union leads to more tightening of its external borders. This paper addresses the question of how far citizenship rights can be extended to third country migrants in the EU?
Topic:
Economics, Government, Human Rights, International Trade and Finance, Migration, and Political Economy
Political Geography:
Europe

10131. What Drove Relative Wages in France? Structural Decomposition Analysis in a General Equilibrium Framework, 1970-92

Author:
Sébastien Jean and Olivier Bontout
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper confronts a CGE model to observed evolutions in France, between 1970 and 1992, through a structural decomposition analysis. The choice of the model and the assumption of constant elasticities over time enable the structural change of the economy between two equilibria to be summarised through a set of four types of state variables, reflecting the effect of technical change, changes in factor supplies, shifts in consumption patterns, and international trade. Simulations then allow the contribution of each of these shocks to be assessed. We find that technical change had a strong positive impact on the relative wage of skilled to unskilled workers, while the impact of changes in factor supplies is strongly negative. The effect of international trade is far less important. However, if we take into account a trade-induced effect on productivity, then we find that trade substantially increased wage inequalities.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
China, Europe, and France

10132. Is the ECB Sufficiently Accountable and Transparent?

Author:
Daniel Gros and Lorenzo Bini-Smaghi
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
More than two years after its inception, the ECB is still perceived as lacking transparency by many academics and market participants. Our analysis, based on a series of indicators, suggests instead that the ECB is, at least on paper, one of the most transparent and accountable central banks. The discrepancy between theory and public perception suggests that much remains to be done within the given institutional framework to improve the transparency of the ECB. What is the best way to achieve this goal? Several suggestions have been put forward, such as publishing the detailed minutes of the ECB Governing Council meetings. This would result in shifting the true debate to informal meetings of the Governing Council, while formal meetings would only record pre-packaged consensus with no or little discussion. In our view, the best way to make the ECB more accountable is to engage it in substantive discussions about its policy. The ECB should provide more information about the background analysis that leads to policy decisions. For example, the ECB should transform its 'staff projections' into true inflation forecasts and it should be more open about the arguments that shape the internal debates, which precedes decisions. Accountability cannot be ensured by the ECB alone. An important role has to be played by its counterparts, such as the European Parliament, the Council of EU Finance Ministers and the public at large.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe

10133. The Macedonian Crisis and Balkan Security

Author:
Nicholas Whyte, Nadia Alexandrova Arbatova, and Dana H. Allin
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
For most of the last ten years, Europeans have been embarrassed by Jacques Poos' rash promise of 1991; during the conflicts in Bosnia and Croatia from 1991 to 1995, the phrase seemed only to sum up the ineffective ness and the pomposity of the European Union's pretensions to be an actor of importance in its own backyard. The Dayton Agreement of 1995 was achieved only when Richard Holbrooke threatened to pull the US out of the process and 'leave it to the Europeans'. Terrified by this awful prospect (at least, according to Holbrooke's version), the warring parties agreed to the deal.
Topic:
Security, Defense Policy, NATO, and Terrorism
Political Geography:
Europe and Balkans

10134. NATO Enlargement

Author:
François Heisbourg, Tomas Ries, Vladimir B. Aranovsky, and F. Stephen Larrabee
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Politically, further NATO enlargement in some form is probably unavoidable. On the deepest level, because NATO at its core is an expression of the Atlantic community of liberal democratic values. Refusing entry to new applicants who fulfil the criteria and knock strongly enough and long enough is not only politically embarrassing but undermines the foundation on which NATO rests.
Topic:
Security, Defense Policy, NATO, and Terrorism
Political Geography:
Europe

10135. Reshaping Europe's Borders: Challenges for EU Internal and External Policy

Author:
Joanna Apap
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This colloquium brought together a distinguished list of political actors, policy makers, advisers, experts and researchers from all parts of Europe (see annex I for the list of papers presented and speakers). It was concerned with security in a broad sense, with special attention given to borders and to JHA (Justice and Home Affairs) issues.
Topic:
Security, Defense Policy, and Nationalism
Political Geography:
Europe

10136. Maastricht the Choice of Exchange Rate Regime in Transition Countires During the Run-Up to EMU

Author:
György Szapáry
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper raises some specific issues concerning the choice of exchange rate regime in transition countries during the run-up to EU/EMU membership. It argues that there is no "one-size-fits-all" exchange rate regime that accession countries should uniformly adopt. It also argues that the Maastricht criterion on inflation is inconsistent with the catching-up process because of the Balassa-Samuelson effect and that this inconsistency will encourage a "weighing-in" syndrome: like the boxer who refrains from eating for hours prior to the weigh-in only to consume a big meal once the weigh-in is over, the candidate country will maintain very tight monetary policy and resort to all sorts of techniques (freezing of administered prices, lowering of consumption taxes, etc.) to squeeze down inflation prior to accession only to shift back gears after it has joined the EMU. Indeed, the convergence of short-term interest rates to EMU levels that will come with accession will automatically mean a loosening of monetary policy after the country has become a member of the monetary union. That loosening will be reinforced if the country had previously allowed its exchange rate to appreciate against the euro. The result of this stop-go cycle is that the efficiency of economic management will suffer. It would be better to recognize the principle of the Balassa-Samuelson effect explicitly in the Maastricht criteria by giving more room for maneuver than the one provided by the present rule. The paper makes suggestions on how the Maastricht criterion on inflation could be adjusted and discusses their merits. It concludes that a reasonable compromise would be to define the permissible inflation deviation in reference to the average inflation rate of the euro zone, not the three EU members with the lowest inflation rate.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe

10137. Missile Defence and European Security

Author:
François Heisbourg, Klaus Becher, Alexander Pikayev, and Ivo H. Daalder
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
European NATO countries have been spectators to the debate about defending the US against ballistic missile attacks. While there have been national differences in Europe's reactions to the national missile defence (NMD) programme, it is obvious that most Europeans don't like it. The French seem somewhat more convinced than others that missile defence is inherently foolish and unworkable. Some British experts seem to insist more than others that any programme that might undermine NATO's nuclear deterrence and strategic unity should be avoided. And perhaps Germans, more than others, worry about perceived dangers to the ABM and other arms control treaties, and generally about relations with Russia. Most Europeans at present believe that US defence against long-range ballistic missiles is a slap in the face for Russia, a dangerous provocation for China and an inadequate response to the proliferation of weapons of mass destruction (WMD) and missile technology.
Topic:
Security, Defense Policy, NATO, and Terrorism
Political Geography:
Russia, United States, China, Europe, and Germany

10138. Foreign Direct Investment and Company Taxation in Europe

Author:
Agnès Bénassy-Quéré, Lionel Fontagné, and Amina Lahrèche-Révil
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The growing globalisation of OECD economies, associated to the progresses in European integration, tends to increase the mobility of capital and to deepen the pressure on tax policies. On the one hand, tax policies are tied by the Stability Pact criteria: the limit imposed on budget deficits leaves little scope for tax rates to decrease. On the other hand, the growing mobility of capital tends to increase the elasticity of tax bases to tax rates, hence reducing the autonomy of governments in increasing taxes.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe

10139. Some Paradigms for the Evolving Map of Europe

Author:
Michael Emerson
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Two sets of opposing paradigms governing the map of Europe are struggling to predominate at the beginning of this second decade of the post-communist era. At the macro (continental) level the struggle is between the Common European Home versus the Europe of Two Empires–the enlarging European Union, and a Russia newly re-assertive towards its near abroad. At the micro (state or entity) level the struggle is between the Nationalising State versus the Europe of Fuzzy Statehood. This double competition of paradigms is most intense and sensitive in Borderland Europe around the frontiers between the two empires, or in their Overlapping Peripheries. It seems that the Europe of Two Empires has much more political energy these days than the Common European Home; and in Borderland Europe the Nationalising State has more energy than Fuzzy Statehood. However these trends should be of concern, since they point to the persistence of tensions and in the worst cases conflicts. A successful and stable Europe would need to see more of the Common European Home and of Fuzzy Statehood.
Topic:
Security, Defense Policy, NATO, and Terrorism
Political Geography:
Russia and Europe

10140. Economic Integration Between the EU and the CEECS: A Sectoral Study

Author:
Francesca di Mauro
Publication Date:
04-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Economic integration between the EU and the CEECs has proceeded at high speed over the 90's, with the main channels of such integration being trade and FDI. Some authors believe that the 'commercial transition' is now complete and that a new, deeper phase of integration has started, with growing flows of FDI in the region. Following a gravity-type approach, in this paper I tackle two difficult issues surrounding the EU-CEECs integration: has FDI in the CEECs region substituted EU exports, therefore harming employment at home? Has FDI in the CEECs region been redirected away from similarly attractive countries, such as Spain and Portugal? By using a unique database on FDI broken down by country and by sector, which allows more detailed qualifications than possible in previous work, the answers to these two questions appear to be negative.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe, Spain, and Portugal

10141. Who Needs an Extenal Anchor?

Author:
Daniel Gros
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper argues that there might be non-monotonic relationship between the strength of the domestic framework for fiscal policy and the interest of a country to use an external anchor to achieve price stability. Countries with a strong domestic framework, e.g. low public debt, little pressure for excessive expenditure and an efficient tax system, would anyway enjoy low inflation rates and therefore have little need for an external anchor. Countries with high debt or very weak institutions would greatly benefit from an external anchor to save them from the extreme inflation rates they would otherwise have to endure because the market knows that the temptation for them to inflate public debt away is so strong. By contrast, countries with moderately weaknesses might be in a situation where they need some inflation to supplement government revenues with seigniorage, but the inflation resulting from the interaction with the market, which knows about this, is still moderate.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe

10142. What's Trade Got To Do With It? Relative Demand for Skills within Swedish Manufacturing

Author:
Paul Brenton, Bob Anderton, and Eva Oscarsson
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper seeks to identify the contribution of trade and technological change to the increase in inequality between skilled and unskilled workers in Sweden since the 1970s. An empirical approach is adopted which allows for the outsourcing of the low-skill parts of the production chain within industries to low-wage locations and is applied to detailed industry and trade data, the latter distinguishing between low-wage sources of imports and OECD countries. Another feature of the study is the use of data on patents to capture technological change. The paper finds that, in contrast to previous studies, trade with low-wage countries may have contributed to the rise in inequality in Swedish manufacturing. Here we identify this effect through changes in relative import prices and through changes in import penetration measured in volume terms. Changes in import penetration measured in value terms, which have been used in previous studies, are not found to be significant. In addition imports seem to have had a larger effect on inequality in high-skill intensive sectors rather than the low-skill sectors. The empirical results also suggest that the increased use of technology also played a role in creating greater inequality between skilled and unskilled workers in Sweden with the magnitude of this impact increasing in the 1990s.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe and Sweden

10143. Skill Upgrading and Production Transfer within Swedish Multinationals in the 1990s

Author:
Pär Hansson
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper studies the link between production transfer in Swedish-headquartered multinational enterprises (MNEs) and skill upgrading in Swedish manufacturing in the 1990s. The analysis distinguishes between horizontal and vertical foreign direct investment (FDI). The increased employment share in affiliates in non-OECD countries (vertical FDI) has a non-trivial, significantly positive effect on the share of skilled labour in the Swedish parents. On the other hand, the skill upgrading in the parents is unrelated to employment changes in their affiliates in other OECD countries (horizontal FDI). The latter is consistent with implications of the newly developed horizontal MNE models.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe and Sweden

10144. Just Good Friends? The EU-Russian "Strategic Partnership" and the Northern Dimension

Author:
Marius Vahl
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Contrary to official claims, Russia and the European Union are not strategic partners. The economic and political asymmetries between them and the still divergent normative foundations on which their policies are based constitute considerable obstacles to strategically significant co-operation between the EU and Russia. These obstacles are likely to persist in the foreseeable future, and prevent the emergence of a real strategic partnership.
Topic:
Security, Defense Policy, NATO, and Terrorism
Political Geography:
Russia and Europe

10145. European Labour Markets and the Euro: How Much Flexibility Do We Really Need?

Author:
Michael C. Burda
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Widespread concern over real effects of EMU is consistent with new Keynesian approaches to macroeconomic fluctuations, but more difficult to reconcile with a real business cycle (RBC) paradigm. Using a model with frictions as a point of departure, I speculate that nominal price rigidity in Europe is likely to increase, while real rigidities are likely to decrease, as a consequence of monetary union. This logic implies a new European macroeconomic regime in which monetary policy is increasingly "effective" in influencing output in the short run. Similarly, changes in the nature of real and nominal price determination are likely to increase the volatility of the European business cycle. Empirical evidence of increasing covariation of price inflation and declining correlation of wage inflation and real wage growth within EMU countries in the last decade is consistent with this conjecture. Calls for additional labour market flexibility, given the magnitude of what is already in store for Europe, may be unwarranted.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe

10146. The Future of Montenegro: Proceedings of an Expert Meeting

Author:
Nicholas Whyte
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Mr. Emerson, Ladies and Gentlemen, Distinguished Friends of Montenegro, Let me start with my thanks to the Centre for European Policy Studies, the International Crisis Group and the Friedrich Ebert Foundation for organising this conference. The presentations of international and local experts will make a contribution to our consideration of the future of Montenegro. I find it especially important that this debate allows for a wide diversity of political views on the subject of Montenegro's future.
Topic:
Security, Defense Policy, and Nationalism
Political Geography:
Europe

10147. Policy Alternatives to Schengen Border Controls on the Future EU External Frontier: Proceedings of an Expert Seminar

Author:
Joanna Apap, Christopher Mulkins, and Malcolm Anderson
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The seminar brought together 38 distinguished experts from EU countries, candidate and non-candidate countries to discuss the impact of the extension of Schengen border control regimes on EU external relations and the situation of Central and Eastern Europe and to identify alternative policy options.
Topic:
Security, Defense Policy, and Nationalism
Political Geography:
Europe

10148. Fiscal Decentralisation Economic Growth in High-Income OECD Countries

Author:
Ulrich Thießen
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Following a brief review of the benefits and shortcomings of fiscal decentralisation, the paper attempts to empirically analyse for high-income OECD countries the relationship between per capita economic growth, capital formation and total factor productivity growth, on the one hand, and indicators of fiscal decentralisation, on the other hand. The evidence appears to be consistent with the hypothesis that the benefits of fiscal decentralisation on economic growth and capital formation are limited. However, satisfactory indicators of fiscal decentralisation are yet not existing so that the results are subject to serious qualifications.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe

10149. Asymmetric Labour Markets in a Converging Europe: Do Differences Matter?

Author:
Ray Barrell and Karen Dury
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Asymmetric economic structures across Europe may result in common shocks having asymmetric effects. In this paper we investigate whether the differences in the structure and dynamics that we observe in the European economies matter for policy design. In particular it is widely believed that labour market responses are different, with the structure of labour demand and the nature of the bargain over wages differing between countries. In addition the European economies move at different speeds in response to common shocks. In this paper we construct three different models of Europe, one where the labour market relationships are separately estimated and assumed to be different, one where the most statistically acceptable commonalties are imposed and one where common labour market relationships are imposed across all member countries. We use panel estimation techniques to test for the imposition of commonalties among countries. We find that it is possible to divide Europe into sub-groups, but it is not possible to have one model of European labour markets. We use stochastic simulation techniques on these different models of Europe and find that the preferred rule for the ECB is a combined nominal aggregate and inflation-targeting rule. We find that while this rule is dominant in all our models, the more inertia that is introduced into the labour markets, the more a nominal aggregate-targeting rule alone may be preferred. However, we conclude, that differences in the labour market transmission mechanisms across the European countries appear to have little influence on the setting of monetary policy for the ECB, although this depends on the relative importance of the different components in the welfare loss function.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe

10150. Trade Jobs in Portugal: A Microeconomic Approach

Author:
Ana Rute Cardoso
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The Portuguese economy presents a low unemployment rate when compared to its European counterparts and it has been claimed that this is partly due to the slow restructuring of the economy, which has been keeping its specialisation in traditional industries, some of them major exporting industries. This study analyses job creation and job destruction at the firm level across skill groups, during the 1980s and the 1990s. The major aim is to explore the role of international trade against alternative explanations of job flows, providing an answer to the question: did international trade help sustain the employment of particular groups of workers, namely the least skilled, in the Portuguese economy? Could conditions in international markets therefore have contributed to keep a low unemployment rate? A matched data set on workers and firms is used, which includes a direct measure of the skill of the worker. Results indicate that technology indicators are more relevant determinants of job flows than conditions in international product markets. Indeed, import prices have no impact on job creation or job destruction for the unskilled or on job creation for the skilled. Higher export prices lead to job creation for the skilled labour force, thus pointing to a certain skill upgrading.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Europe