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54201. U.S.-Cuban Relations in the 21st Century: A Follow-On Chairman's Report

Author:
Julia Sweig and Walter Mead
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
In the last quarter of 1998, following the visit to Cuba of Pope John Paul II, the Council on Foreign Relations convened an Independent Task Force to assess U.S. policy toward Cuba in the post–Cold War era. The Task Force represents a bipartisan group of former State Department officials, congressional staff, labor leaders, and students of Latin American affairs and U.S. foreign policy from a cross section of think tanks, academic and religious institutions, businesses, trade unions, and government agencies. In a chairman's report issued in January 1999, the Task Force recommended a number of steps to strengthen civil society in Cuba, expand people-to-people contact between Cubans and Americans, and “contribute to rapid, peaceful, democratic transition in Cuba while safeguarding the vital interests of the United States.”
Political Geography:
United States and Cuba

54202. 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

54203. 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

54204. 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

54205. 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

54206. 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

54207. 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

54208. 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

54209. 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

54210. 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

54211. 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

54212. 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

54213. 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

54214. 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

54215. 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

54216. 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

54217. 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

54218. 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

54219. 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

54220. 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

54221. 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

54222. 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

54223. 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

54224. 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

54225. 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

54226. 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

54227. 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

54228. 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

54229. 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

54230. 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

54231. Friendly Schengen Borderland Policy on the New Borders of an Enlarged EU and its Neighbours

Author:
Michael Emerson, Joanna Apap, Nicholas Whyte, Marius Vahl, Jakub Boratynski, and Grzegorz Gromadzki
Publication Date:
11-2001
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
One often hears the term 'Europe' being used interchangeably with 'European Union', giving the impression that those countries that are not destined to become members of the EU in the near future are not part of the same continent. Even after the forthcoming accession by 13 new countries, a significant part of Europe will remain outside the 'EU club'.
Topic:
Security and NATO
Political Geography:
Europe and Middle East

54232. Our Future Southeastern Turkish Frontiers

Author:
Nathalie Tocci
Publication Date:
10-2001
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Today's southeast Turkey has historically been the homeland of a large number of diverse ethnic groups. Nowadays, in many town and villages of the region the largest ethnic group is Kurdish. Turkish officials under Turgut Özal in the 1990s for the first time admitted there may be around 10 million Kurds living in Turkey. Other estimates indicate a Kurdish population of around 15 million. Adding to this figure the additional 10 million or so Kurds living in Iran, Iraq, Syria and the former Soviet Union, the Kurdish people represent the largest ethnic group in the world without a state of their own.
Topic:
Security and NATO
Political Geography:
Iraq, Europe, Iran, Turkey, Middle East, and Syria

54233. Issues for Europe -- Post-11 September

Author:
Daniel Gros and Michael Emerson
Publication Date:
09-2001
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Ten days now after 11 September, the policy agenda becomes a huge set of interlocking issues – political, strategic, economic. The present note makes a first survey of these issues, and expresses opinions on some of them. However the main purpose is to establish a template or framework to help monitor and evaluate the evolution of the world's response to this massive event. It will be updated and revised in further CEPS Policy Briefs as the story unfolds.
Topic:
Security and Terrorism
Political Geography:
Europe

54234. Kosovo: A Strategy for Economic Development

Publication Date:
12-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Kosovo cannot have a stable future without sustainable economic development. This report considers the task of promoting such development. After surveying the present state of the economy, it assesses the international efforts so far to lay the groundwork for future prosperity. It also considers the prospects for the former socially owned sector, including plans for privatisation and prospects for restructuring and investment.
Topic:
Economics, Emerging Markets, and Government
Political Geography:
Eastern Europe and Kosovo

54235. Macedonia's Name: Why the Dispute Matters and How to Resolve It

Publication Date:
12-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
On 16 November 2001, Macedonia's parliament passed a set of constitutional amendments that were agreed in August, when Macedonian and Albanian minority leaders signed the Ohrid Framework Agreement. Later that day, President Trajkovski clarified the terms of an amnesty for Albanian rebels, in line with international requests.
Topic:
Conflict Prevention, Government, and International Cooperation
Political Geography:
Eastern Europe, Macedonia, and Albania

54236. Bin Laden and the Balkans: the Politics of Anti-Terrorism

Publication Date:
11-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The global focus on Islamist extremist-inspired terrorism resulting from the 11 September atrocities has raised the question of the potential for such terrorist activity in, or emanating from, the Balkans.
Topic:
Politics, Religion, and Terrorism
Political Geography:
Eastern Europe and Balkans

54237. Bosnia: Reshaping the International Machinery

Publication Date:
11-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
After six years and billions of dollars spent, peace implementation in Bosnia and Herzegovina remains far from complete. Reshaping (ërecalibratingí, in local jargon) the international community (IC) presence is vital if the peace process is to have a successful outcome.
Topic:
International Relations, Government, and Politics
Political Geography:
Bosnia and Eastern Europe

54238. Croatia: Facing Up To War Crimes

Publication Date:
10-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
On 8 October 2001, the International Criminal Tribunal for the former Yugoslavia (ICTY) confirmed an indictment charging Slobodan Milosevic, the former president of Serbia and of the Federal Republic of Yugoslavia (FRY), with crimes committed in Croatia. This indictment had been keenly awaited for years in Croatia, where a widespread perception of international indifference to Serb crimes perpetrated against Croats between 1991 and 1995 has been ably encouraged and manipulated by the right wing.
Topic:
Development, Human Rights, and Politics
Political Geography:
Eastern Europe, Yugoslavia, Serbia, and Croatia

54239. Wages of Sin: Confronting Bosnia's Republika Srpska

Publication Date:
10-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
By recognising Republika Srpska (RS) as a legitimate polity and constituent entity of the new Bosnia, the 1995 Dayton Peace Agreement embraced a contradiction. For the RS was founded as a stepping stone to a ëGreater Serbiaí and forged in atrocities against ñ and mass expulsions of ñ non-Serbs.
Topic:
Foreign Policy, Government, and Politics
Political Geography:
Bosnia and Eastern Europe

54240. Serbia's Transition: Reforms Under Siege

Publication Date:
09-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The 3 August 2001 murder of former State Security (DB) official Momir Gavrilovic acted as a catalyst for the emergence of a long-hidden feud within Serbia's ruling DOS (Democratic Opposition of Serbia) coalition. Inflamed by Yugoslav President Vojislav Kostunica's closest advisers, the 'Gavrilovic Affair' has driven a wedge into DOS that could spell the end of the coalition in its present form. In so doing, Kostunica's Democratic Party of Serbia (DSS) has been exposed more clearly than before as a conservative nationalist party intent on preserving certain elements of the Milosevic regime.
Topic:
Security, Government, and Politics
Political Geography:
Eastern Europe and Serbia

54241. Macedonia: Filling the Security Vacuum

Publication Date:
09-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The war option has, for the moment, been checked, but Macedonia is very far from being at peace. Neither the agreement signed on 13 August 2001 2 by the four Macedonian governing parties – two ethnic Macedonian, two ethnic Albanian – nor the subsequent limited NATO deployment, nor the first-stage approval of necessary constitutional amendments by the Macedonian parliament on 6 September have yet given anyone confidence that peace is sustainable. The parliamentary vote, for example, came only after an acrimonious debate in which markers were laid down that ultimate approval of the legislative package could not be taken for granted.
Topic:
Conflict Resolution, Security, and Human Rights
Political Geography:
Eastern Europe, Macedonia, and Albania

54242. Albania's Parliamentary Elections 2001

Publication Date:
08-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The Socialist Party's decision on 21 August to nominate Ilir Meta for another term as Prime Minister closed out the longest election in Albania's turbulent post-communist history. Voting for the parliament was held, extraordinarily, in four rounds on 24 June 2001, and 8, 22 and 29 July due to accusations of electoral fraud in various forms. It was, nevertheless, peaceful and produced a decisive victory for the ruling Socialist Party (SP). The Socialists, who have held power since 1997, won 73 seats in the 140-member legislature, against 46 for the Union for Victory (UfV) coalition, led by the Democratic Party (DP). The remaining 21 seats were allocated among five small parties, each of which gained the necessary 2.5 per cent of votes, and two independent candidates who won direct mandates. The results gave the Socialists a sufficient majority to form a new government and, crucially, with the aid of likely allies, to elect a new president in 2002 when the term of the incumbent, Rexhep Meidani, expires. Formation of that government, however, was delayed further weeks until the SP's General Steering Committee gave Meta an overwhelming victory in his bitter personal battle with the party chairman, Fatos Nano, who backed his own man for the prime minister's chair.
Topic:
Democratization, Nationalism, and Politics
Political Geography:
Eastern Europe and Albania

54243. Macedonia: War on Hold

Publication Date:
08-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Macedonian and Albanian political leaders signed a political agreement – hailed by its Western midwives as a peace agreement – on 13 August 2001. NATO Secretary General Lord Robertson and the European Union's High Representative for Common Foreign and Security Policy, Javier Solana, flew to Skopje to attend the signing ceremony. But the strange context of the signing showed just how implausible it is that, without further extraordinary efforts, the agreement will actually provide a workable way to keep multiethnic Macedonia out of civil war. Details of the agreement had been hammered out by 8 August in Ohrid, a resort town chosen for the negotiations because it was some distance away from the latest fighting. Signature was delayed five days, however, while Macedonian government troops and ethnic Albanian rebels engaged in the deadliest series yet of tit-for-tat retaliations. Terms of the agreement were withheld from the public lest they provoke violent responses from hardliners on both sides. The ceremony, when it finally occurred, was carried out almost furtively, in a small room of the President's residence, without live television.
Topic:
Conflict Resolution, Politics, and Treaties and Agreements
Political Geography:
Europe, Eastern Europe, Macedonia, and Albania

54244. Peace in Presevo: Quick Fix or Long Term Solution?

Publication Date:
08-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The past decade in the Western Balkans has seen very few peacefully negotiated transfers of territorial control. The most recent example ñ albeit one not involving any change of sovereignty - was also the only one achieved by NATOís direct mediation. In May 2001, the Presevo Valley was brought back under Serbian government control, ending an ethnic Albanian insurgency that had lasted some seventeen months.
Topic:
Conflict Resolution, Ethnic Conflict, and Politics
Political Geography:
Eastern Europe and Balkans

54245. Bosnia's Precarious Economy: Still not Open for Business

Publication Date:
08-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Bosnia's economic reality is still bleak. After more than five years and five billion dollars of Dayton implementation, the country seems only at the beginning of an economic transition that should have begun in 1996.
Topic:
International Relations, Development, and Economics
Political Geography:
Bosnia and Eastern Europe

54246. Montenegro: Resolving the Independence Deadlock

Publication Date:
08-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Ten months after the fall of Slobodan Miloöević , considerable progress has been made in establishing democratic governance in the Federal Republic of Yugoslavia (FRY) and reintegrating the country into the international community. Yet the future of the federation itself remains in doubt. The FRY is a hollow edifice whose institutions hardly function except as an address for the international community. Montenegroís authorities no longer recognise the legitimacy of the federal government. All sides agree that the status quo is unsustainable and that Montenegro and Serbia must find a new basis for their relationship.
Topic:
Government, Politics, and Sovereignty
Political Geography:
Eastern Europe

54247. Macedonia: Still Sliding

Publication Date:
07-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Despite the ceasefire announced on 26 July 2001, and the promised resumption of political talks in Tetovo on 27 July, Macedonia is still locked in crisis and threatened by war. Neither ethnic Macedonian nor ethnic Albanian leaders have been converted to belief in a 'civic' settlement that would strengthen democracy by improving minority conditions, without weakening the integrity of the state. Ethnic Macedonians fear that civic reforms will transform the country exclusively to its, and their, detriment, while ethnic Albanians are sceptical that any reforms can really be made to work in their favour. Nor have separatists from both sides, within the country and in the diaspora, given up their conviction that security for their communities can only be achieved by demarcating – and hence competing for – ethnically “pure” territory.
Topic:
Conflict Resolution, Ethnic Conflict, and Politics
Political Geography:
Eastern Europe, Macedonia, and Albania

54248. Milosevic in the Hague: What it Means for Yugoslavia and the Region

Publication Date:
07-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
On 28 June 2001, St Vitus's Day – an anniversary with enormous resonance in Yugoslavia – Serbian government transferred former Yugoslav president Slobodan Milosevic to The Hague. By this bold political move, the government demonstrated in the clearest way its will to break with the past. With the timing driven by the international donors conference scheduled for 29 June, the transfer also confirmed the effectiveness of conditioning economic assistance to Yugoslavia on concrete political progress.
Topic:
Security, Human Rights, and Politics
Political Geography:
Eastern Europe, Yugoslavia, and Serbia

54249. EU CRISIS RESPONSE CAPABILITY: Institutions and Processes for Conflict Prevention and Management

Publication Date:
06-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
It is less than a decade since the European Union (EU) was formally established and set itself the ambitious project of developing a common foreign and security policy. Less than four years have passed since the signing of the Amsterdam Treaty which provided key institutional foundations of that policy. And it is less than eighteen months since many of the bodies responsible for implementing the most difficult aspects – those related directly to crisis response – have been created. This process may be well appreciated by those closely involved in it, but it is opaque and puzzling to many others. This report aims to clarify the process for those outside it. It describes the roles of the new bodies, their relationship to previously existing ones, and the basic fit between their functions and the goals of conflict prevention and management. This report is largely descriptive, but its analysis of the institutions and processes does provide a foundation for some recommendations for improvement as the EU carries its work forward.
Topic:
Conflict Prevention, International Relations, Security, and Human Welfare
Political Geography:
Europe

54250. The European Humanitarian Aid Office (ECHO): Crisis Response in the Grey Lane

Publication Date:
06-2001
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
This briefing paper examines in broad terms likely directions in the policy of the European Humanitarian Aid Office (ECHO) in the next two to three years, with special reference to its position in the development of European Union (EU) crisis response structures and processes. Its particular focus is on how ECHO has responded to the "grey area" dilemmas: whether and how to separate emergency humanitarian assistance from longer term development assistance, and from "political" projects generally. Section I provides an overview of ECHO's structure and funding; Section II describes how the grey area has been addressed to date; Section III discusses how the issue arises again in the context of the development of the EU's new conflict prevention and management ambitions; while the concluding Section IV draws upon recent experience in Macedonia to support the case for a more pragmatic approach to ECHO's role.
Topic:
Conflict Prevention, International Relations, Security, and Human Welfare
Political Geography:
Europe and Macedonia