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1. A Fair Deal on Seabed Wealth: The Promise and Pitfalls of Article 82 on the Outer Continental Shelf

Author:
Cleo Paskal and Michael Lodge
Publication Date:
02-2009
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Approximately 70 of the 156 States that have ratified the 1982 UN Convention on the Law of the Sea have potential Outer Continental Shelf Claims (OCS). Those claims could cover more than 15 million square kilometres of seabed. Under Article 82 of the Convention, a portion of the revenue from the extraction of non-living resources on the OCS must be disbursed 'on the basis of equitable sharing criteria, taking into account the interests and needs of developing States, particularly the least developed and the land-locked among them.' Article 82 is a unique and complex provision that does not address many of the specifics of how this is to be accomplished. The Energy, Environment and Development Programme at Chatham House is working with the body charged with applying Article 82, the International Seabed Authority, to explore in greater detail some of the critical issues of implementation while the Article is still dormant.
Topic:
International Relations, Energy Policy, Environment, International Law, Treaties and Agreements, and United Nations

2. The Palestinian Refugee Issue: A Palestinian Perspective

Author:
Abbas Shiblak
Publication Date:
02-2009
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
The quest of Palestinian refugees to return to their homes is not only a legal and moral right but has become a major part of Palestinian identity and symbolizes Palestinian historical narratives. It has been an effective instrument of mobilization that became the political priority of various resistance groups which later formed the Palestine Liberation Organization. The PLO embarked on a line of negotiation which sought to reconcile rightist and realist approaches. They sought acknowledgment by Israel of its responsibility for the refugee issue and acceptance in principle of their right of return while showing flexibility and readiness to discuss various formulations of return. At the core of the inter-Palestinian debate is the dynamic between the two objectives of achieving statehood and the resolution of the refugee issue. State-building came to be seen not only as a means of reconstructing Palestinian identity but also as a catalyst to resolution of the refugee issue. A peace agreement should widen the options for the refugees and address all aspects of the refugee issue including the rights of repatriation to Israel, return to a Palestinian state, compensation, and equality and full citizenship rights in countries where refugees choose to remain. A comprehensive peace agreement must include the regional aspects of the refugee issue and all regional actors. There is an urgent need to review the current format of negotiations and bring about more balanced and effective international political engagement in the bilateral Israeli-Palestinian negotiations.
Topic:
Conflict Resolution, Security, Political Violence, Political Economy, Post Colonialism, Poverty, Terrorism, and Treaties and Agreements
Political Geography:
Israel, Palestine, and Arab Countries

3. Options for a Democratic Taiwan

Author:
Kerry Brown
Publication Date:
03-2009
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Over the last two decades, as Mainland China has been developing and liberalizing its economy, Taiwan has been undergoing an equally remarkable but very different political transformation, from martial law in 1987 to its current status as one of the most vibrant, stable democracies in Asia. Despite its eventful experience of the democratization process, the parliamentary and presidential elections in 2008 proved that Taiwan is now a mature, and stable, democracy. It has passed the ultimate test, seeing the successful transition of rule from one party to another and back again, without social turmoil. Economic performance over the same period has been less striking. Once among the fastestgrowing economies, Taiwan is now afflicted by a relatively low growth rate, and problems over the outflow of capital and investment to the Mainland. The potential for conflict over cross-straits relations remains but it has been significantly reduced under President Ma and by the Mainland Chinese government's greater accommodation with a democratic Taiwan in the last decade. The risk of a military conflict between the two sides, which could drag in the US, and therefore the rest of the world, cannot be entirely discounted, however. Taiwan's greatest challenges in the next decade remain the same as in the last – to maintain its identity, to develop its democratic system, and to handle relations with the Mainland in a way that preserves its interests while avoiding conflict. Taiwan's system, which has so far proved itself robust and effective, faces a new challenge too: how to benefit from the increase in Mainland investment abroad.
Topic:
Democratization, Economics, and Markets
Political Geography:
United States, China, Israel, Taiwan, and Asia

4. Africa's New Human Rights Court: Whistling in the Wind?

Author:
Sonya Sceats
Publication Date:
03-2009
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Human rights abuses on a massive scale continue to afflict the lives of millions of people across the continent of Africa. As in other parts of the world, the obstacles in pursuing justice are currently insurmountable for most victims. Against this troubling backdrop, the African Union (AU) has decided to add a human rights section to its new court which has been agreed upon but not yet set up. This court is called the African Court of Justice and Human Rights. In the meantime, another pan-African human rights court, the African Court on Human and Peoples' Rights, has recently opened in Arusha, Tanzania. This court will be wound down to make way for the African Court of Justice and Human Rights but is expected to operate for the next few years at least. These two courts represent the third instalment in efforts since the Second World War to create regional human rights courts. Because they have broad powers to enforce socio-economic rights and the collective rights of peoples, they may be setting an example for new developments around the world. This briefing paper focuses on the African Court of Justice and Human Rights, but it also explains key features of the interim African Court on Human and Peoples' Rights. It addresses questions including: Can victims of human rights abuses bring cases? Will the Court be able to try African heads of state? Will governments comply with judgments?
Topic:
Human Rights, Human Welfare, and Torture
Political Geography:
Africa

5. Oil, Gas and International Insecurity: Tackling a Self-fuelling Fire

Author:
Daniel Litvin
Publication Date:
03-2009
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
In the United States, European Union and Asia, fears about dependence on oil and gas imports from unstable regions have become a major theme of political debate. This paper provides a high-level and historical perspective on this complex issue. Dependence on oil and gas imports raises real economic- and political-security issues for many countries. Neither the global economic crisis nor climate change policies - both of which look set to restrain oil and gas demand - will solve the problem entirely. In fact, over the next few decades it is likely to become worse.
Topic:
Climate Change, Energy Policy, and Oil
Political Geography:
United States, Europe, and Asia

6. Trade and the Global Economic Crisis: Immediate Challenges and Long-term Threats

Author:
Jim Rollo and Peter Holmes
Publication Date:
03-2009
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
The collapse of world trade is threatening to create a negative feedback loop to the global economy. Some countries have seen their trade fall by 30–50% in the year to February 2009, a bigger fall than between 1929 and 1930. Annual figures for world trade in 2008 show a big fall in the fourth quarter – a trend that has been accelerating. The world's trade ministers have failed to get the Doha Development Agenda back on track, despite direct instructions from the G20 leaders to do so quickly after the November summit in Washington, DC. This failure sends a very powerful negative signal about the G20's lack of policy coordination on even bigger issues. There is a two-way interaction between trade and the macro-economy at a national and global level. The current crisis is threatening countries that rely on export-led growth, a strategy that has led billions out of poverty. It is imperative for there to be recognition that the current shrinkage in global trade is a macro-economic problem requiring macro-economic solutions, and that the necessary actions must be coordinated.
Topic:
Conflict Prevention, Economics, Globalization, International Trade and Finance, Markets, and Political Economy

7. North Africa: The Hidden Risks to Regional Stability

Author:
Claire Spencer
Publication Date:
04-2009
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
North Africa may not be as stable as it looks: socio-economic and political pressures are fracturing the consensus between governments and governed and may overtake terrorism and criminality as the region's main destabilizing forces. With political leadership in the region effectively a lifelong position, the growth of authoritarianism is undermining the prospects for achieving political and economic liberalization. Despite the worsening global economic climate, a window of opportunity exists to accelerate socially sensitive and productive domestic investment and open space for greater autonomous political and economic development. Success depends on renegotiating the social contracts on which North Africa's states are based. A broadening of participation, above all through the extension of legal employment, targeted investment on education, health and skills, and the establishment of independent legal and regulatory frameworks, will go some way towards addressing socio-economic stresses. A change in the political environment, however, requires a re-evaluation of how the region's security climate is seen from outside, with adjustments in the kind of support given to regional governments by its key international partners, the European Union and the United States.
Topic:
International Relations, Security, Islam, and International Security
Political Geography:
Africa, United States, and Arabia

8. Is the Euro Ready for 'Prime Time'?

Author:
Benjamin J Cohen and Paola Subacchi
Publication Date:
07-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
When Europe's Economic and Monetary Union (EMU) became effective nearly a decade ago, the euro was seen as having the potential to be the second pillar of the international monetary system. It was expected to share leadership in monetary affairs with the United States. Ten years later, however, the story looks quite different. Although the euro has firmly established itself as an international currency, the degree of change has been considerably less than expected. Europe's joint money remains at a distinct disadvantage in relation to America's greenback, limiting the role it can play in global monetary governance. The euro is not yet ready for 'prime time' and can at best play only a subordinate role to the dollar in the global system. This can be described as a one-and-a-half currency system – certainly not a two-pillar world. The problem lies in the governance structure of EMU. Because the euro is a currency without a country, based on an inter-state agreement, participating members find it difficult to speak with a single voice. The solution lies in a reform of EMU's governing rules and institutions that would put greater emphasis on the euro's external dimension. On the one hand this calls for more proactive management of the currency's exchange rate by the European Central Bank (ECB), together with an explicit commitment by the Eurogroup –the euro zone's informal committee of finance ministers – to undertake effective coordination of national fiscal policies. On the other hand it means designating a single representative of EMU with real authority to speak on behalf of members in international councils. Unless the euro zone can learn how to project power more successfully than it has until now, dual leadership of monetary affairs at the global level will remain out of reach.
Topic:
Foreign Exchange
Political Geography:
United States and Europe

9. EU Trade Policy: Approaching a Crossroads

Author:
Roderick Abbott
Publication Date:
07-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
In an important shift, inspired partly by drift in the Doha Round negotiations, the EU announced in 2006 that it would seek new free trade area arrangements with fast-growing economies, particularly in Asia. The plan, which ended a moratorium on the launch of bilateral trade talks, in place since 1996, was billed explicitly as a contribution to the EU's own growth and jobs strategy as well as a market-opening exercise. However, the policy has so far been no more effective than multilateral negotiations in producing concrete results. Negotiations with South Korea and ASEAN have made only slow progress, while the state of talks with India remains unclear. The EU spent most of 2007 renegotiating long-standing agreements with African, Caribbean and Pacific (ACP) countries in an effort to satisfy WTO rules. Meanwhile, the EU's partnership agreements with China and Russia have expired, and appropriate successor arrangements are still being sought. In both cases, a number of important bilateral problems and strains will need to be dealt with. With its various trade negotiations treading water, the EU may need to review its options. One could be a more aggressive pursuit of market access, modelled on the US approach. Alternatively, the EU's traditional preference for multilateral engagement may reassert itself.
Topic:
International Trade and Finance
Political Geography:
Africa, Russia, China, Europe, Asia, South Korea, and Caribbean

10. The Past as Prelude? Negotiating the Palestinian Refugee Issue

Author:
Rex Brynen
Publication Date:
06-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
The question of Palestinian refugees has long been one of the most difficult issues in dispute in the Israeli-Palestinian peace process. With the onset of renewed peace talks following the Annapolis summit of November 2007, it is once again an issue that the Israeli and Palestinian negotiators must address. The two sides are in a worse position to resolve the issue than they were during the last rounds of permanent status negotiations in 2000–01. The political weakness of the Israeli and Palestinian governments is compounded by heightened mistrust between the two societies, as well as by a hardening of Israeli public attitudes against even the symbolic return of any refugees to Israeli territory. There is now a substantial accumulated body of work on the Palestinian refugee issue to guide and inform negotiators and policy-makers. This includes past official negotiations among the key parties, wider discussions among regional states and the international donor community, unofficial and Track II initiatives and a considerable body of technical analysis.
Topic:
Diplomacy, International Law, and Migration
Political Geography:
Middle East, Israel, and Palestine

11. Israeli Perspectives on the Palestinian Refugee Issue

Author:
Orit Gal
Publication Date:
06-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
At the beginning of the Oslo Process the greatest challenge was the question of Palestinian statehood; negotiation of the refugee issue was postponed until the later stages. Over a decade later, Palestinian statehood is generally accepted as a given, and the refugee issue has taken centre stage. The Israeli perspective, from a leadership standpoint, is seemingly characterized by a sense of being overwhelmed, owing to the complexity of elements making up the refugee issue, the multiplicity of actors involved, and a heightened sense of uncertainty as to the consequences of any negotiated settlement. More strategic work is needed at the political and policy-making level to determine the resolution level required for the agreement itself. Much of the detail involved will have to be developed outside the main negotiation framework. More research and strategy development work is needed concerning the Israeli public domain, to assess existing attitudes and possible avenues for widening the public discourse. To this end, the Israeli media should also be encouraged to present the different debates and elements of the issue. There is a need for an international task force of leading experts working alongside the negotiation process and translating both sides' strategic options into operational frameworks. Such support could ease the load on the actual negotiating parties, thereby facilitating the decision-making process.
Topic:
International Cooperation and Migration
Political Geography:
Middle East, Israel, and Palestine

12. Controlling Illegal Logging: Using Public Procurement Policy

Author:
Duncan Brack
Publication Date:
06-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
The use of public procurement policy by consumer states to create protected markets for legal and sustainable timber is helping to exclude the products of illegal logging, thereby encouraging the legal and sustainable production of timber. Many countries already possess some form of green procurement policy into which criteria for legal and sustainable timber can easily be fitted. In general no new legislation is needed, so this offers a relatively rapid route to tackling imports of illegal timber. Nine countries currently possess some form of timber procurement policy at central government level. Although they are all very recent in implementation, the evidence already suggests that they are having a positive effect on increasing market share for verified legal and sustainable timber. However, the adoption of different criteria and coverage of products risks making it more difficult for exporters to provide supplies of timber; some degree of technical harmonization would be desirable, and seems likely. The inclusion of requirements for legal and sustainable timber in building standards provides another route for promoting these products. At present, however, the points-based systems that these standards are based on usually encourage, rather than require, sustainable timber.
Topic:
Environment, Government, International Organization, and Treaties and Agreements

13. Thinking About the Future of Food: The Chatham House Food Supply Scenarios

Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Demand for food is increasing because the global population is rising and major developing economies are expanding. Global supply capacity, meanwhile, is struggling to keep up with changing requirements. Four global food supply scenarios have been developed by the Chatham House Food Supply Project to consider the challenges created and their impact on the EU/UK: 'Just a Blip': what if the present high price of food proves to be a brief spike with a return to cheap food at some point soon? 'Food Inflation': what if food prices remain high for a decade or more? 'Into a New Era': what if today's food system has reached its limits and must change? 'Food in Crisis': what if a major world food crisis develops? Across the world the responses to change will be conditioned by uncertainties surrounding the availability of sufficient energy, water, land and skills. EU/UK stakeholders need to start planning now to develop new food supply systems that are up to the task.
Topic:
Agriculture, International Trade and Finance, Markets, and Population
Political Geography:
United Kingdom and Europe

14. The International Climate Change Agenda: Opportunities for the G8

Author:
Antony Froggatt
Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
The countries of the G8 have a key role in establishing a global deal to reduce greenhouse gas emissions, not only because they produce 40% of global emissions, but because they can help facilitate the diffusion of the technologies necessary to stabilize the climate. Energy efficiency holds the key to both energy and climate security. Currently available technologies and practices will enable short-term and long-term targets to be met. There is a need for international cooperation that leads to increased efficiency standards for products and structures, focused finances and greater human resources and knowledge. Sector initiatives that help drive emissions reductions in heavy energy-consuming sectors will play an important role. Reductions in energy consumption and greenhouse gas emissions can be significantly increased through greater technological innovation and diffusion. This can be enhanced through greater research cooperation, increased targeted finance and deployment agreements.
Topic:
Security, Climate Change, Energy Policy, Environment, International Cooperation, and Science and Technology

15. An EU-Korea Free Trade Area: Playing Catch-Up or Taking the Lead?

Author:
Jim Rollo
Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Both Korea and the EU are pursuing free trade areas (FTAs) aggressively as part of their trade policy strategies. Korea is much further down the road. There are strong incentives on both sides to conclude an agreement. However, specific issues and EU's desire to do at least as well as, and preferably better than, the Korea–US FTA may delay or even preclude success. Korea and the EU are not principal suppliers to each other, so while an agreement is predicted to be economically favourable to both sides, the effects are not expected to be very large. Korea has the higher barriers and is expected to make the bigger economic gains. There are sensitive sectors on both sides, notably automobiles for the EU and services and processed foods for Korea. Both sides have important agricultural constituencies to protect. Korea's key role in the East Asian production system suggests that rules of origin could be an area of particular difficulty in the negotiation.
Topic:
Agriculture and International Trade and Finance
Political Geography:
United States, Europe, East Asia, Asia, and South Korea

16. Prospects for an EU-Gulf Cooperation Council Free Trade Area: The World's First Region-to-Region FTA?

Author:
Jim Rollo
Publication Date:
04-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
The EU and the GCC have seemed close to an agreement on a region-to-region Free Trade Agreement (FTA) – possibly the first in the world between customs unions – for the last two years. The EU seems keener on an agreement than the GCC. An FTA is an element in the EU's Global Europe trade policy strategy and is explicitly linked to energy security concerns. The EU is the GCC's main supplier of goods and services, and since the completion of the GCC Customs Union tariffs are low and the economic effects of an FTA are likely to be small, on goods at least. There may be economic barriers to the final signing of an FTA on both sides: resistance by GCC states to services and investment liberalization; and resistance in the EU over access for GCC refinery products and chemicals. Commentary from the Gulf itself suggests that the EU practice of including clauses on human rights and labour market and environmental regulation may be at the heart of the slow progress from the GCC side.
Topic:
Environment, Human Rights, and International Trade and Finance
Political Geography:
Europe, Middle East, and Arabia

17. Rising Food Prices: Drivers and Implications for Development

Author:
Alex Evans
Publication Date:
04-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Global food prices have risen 83 per cent over the last three years. The increases have been driven by high income growth in emerging economies (probably the single most significant factor), use of crops for biofuels, the relative inelasticity of supply, historically low stock levels and some speculative investment. More recently, national concerns over inflation and prices have led some countries to reduce exports and others to try to build up stocks – creating a feedback loop that feeds on itself to drive prices up still further. In the medium to longer term, 'scarcity trends' – climate change, the cost of energy inputs, scarcity of land and water – could limit the supply-side response. In the immediate term, the priority is to increase both the volume and the quality of humanitarian assistance available to poor people, including by moving away from in-kind food aid and towards cash transfers or voucher systems – although it is important to be clear that there are outstanding questions about how these social protection systems will work, and they should not be seen as a panacea. The issue of compensatory financing may also arise for some countries facing balanceof- payments difficulties. In the longer term, the key challenge is to increase the supply of food: the World Bank estimates that demand for food will rise by 50 per cent by 2030, as a result of rising affluence and growing world population. Achieving this challenge will require something close to a revolution, and a massive investment in agriculture in developing countries. If supply fails to keep pace with rising demand, then the question of 'fair shares' is likely to emerge as a significant global issue. Already, the effect of a burgeoning global middle class switching to diets with more meat and dairy products – both relatively inefficient in terms of grain use – has been to reduce the affordability of staple foods for poorer consumers.
Topic:
Agriculture, Economics, Environment, International Trade and Finance, World Bank, and Population

18. Stress-Testing the Regulators: Market Risks and the EU Economy

Author:
Max Watson
Publication Date:
04-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Today's market turbulence and global imbalances prompt the question whether economic and regulatory policies are poorly designed or just badly implemented. The question is urgent for Europe, which has its own asset booms and imbalances to worry about as well as the backwash of US problems. The imbalances in Europe's economies in large part reflect favourable shocks, such as falling interest rates and growing financial integration. But the 'growth crisis' in Portugal underscores the fact that there can be hard landings, even without a financial crisis, if fiscal policy is unwise and if productivity fails to take off. The current global imbalances and turbulence also have a common backdrop in the long period of unusually easy liquidity and low risk premia during which today's problems built up. This suggests that central banks should be prepared more often to 'lean against the wind' in times of asset price exuberance, and that politicians should not cut taxes or boost spending permanently on the back of revenue gains that result from transient financial booms. Banks and supervisors have many lessons to draw. Some involve going 'back to basics' on issues such as liquidity, off-balance-sheet operations, and the ability to close and reopen banks. Others require a careful look at incentives – in executive pay, rating agency roles and loan production systems. Supervisors also need to take better account of boom-bust cycles when they assess risks, and address cross-border issues in EU banking. Moral hazard has been partly addressed by pain inflicted on bank managements and shareholders. But at the macro level it may be building up as policy-makers act to limit losses in a setting where they cannot trace the ultimate fallout from risks. In future, their discretionary interventions need to be truly exceptional and much more symmetrical, or the money supply and the public debt will ratchet up amid serious resource misallocation.
Topic:
Economics, Government, and Financial Crisis
Political Geography:
United States and Europe

19. European Multinationals: A Globalization Scorecard

Author:
Stephen Thomsen
Publication Date:
03-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
Global competition requires a global response, and European firms are now at the forefront of attempts to become internationally diversified multinational enterprises. European firms have been accused at various times of being too focused on their integrating regional market or too tied by historical links with certain countries or regions to develop a genuinely global strategy. Yet figures for foreign direct investment suggest not only that European firms have invested far more abroad than their American and Japanese rivals, but that they have also done so in far more countries. Of particular relevance for long-term profitability, European enterprises have a much stronger presence in emerging markets than either US or Japanese firms. Europe has in turn received more inward investment from those countries than either the United States or Japan. These growing links between Europe and emerging economies could provide European firms with a competitive edge in what are the most promising markets of the future.
Topic:
Globalization and Markets
Political Geography:
United States and Europe

20. Exploiting Europe's Strong Potential: Governance, Institutions and Policies

Author:
Paola Subacchi, Benedicta Marzinotto, and Vanessa Rossi
Publication Date:
01-2008
Content Type:
Policy Brief
Institution:
Chatham House
Abstract:
With the euro approaching the tenth anniversary of its establishment, this is a timely as well as critical moment to review policies and performance. Enough experience of the convergence and adjustment processes has been gained to better understand how they work and what problems have been created rather than solved. As the strengths – and the success – of the euro become more visible, so too do its weaknesses and the conflicts it creates. Are the appropriate mechanisms and governance in place to help manage Europe's economy so that it can realize its potential? Governance is critical because of the institutional complexity of the monetary union. Independent policy targets and policy instruments not only have to be consistent with each other, but also need to be integrated in a nonconflicting framework. There are two threads to this debate: convergence and adjustments across the euro area, and how the region as a whole is performing with regard to the rest of the world. Both imply a new approach to governance. When EMU was established, the euro area comprised 11 founding members. Now it comprises 15 and is slowly expanding. Ten years ago the emergence of China was more a possibility than a reality, while the 'Asian Tigers' were coming to terms with a devastating financial crisis. Now the rise of the emerging market economies and the enlargement of the global economy's playing field pose significant challenges to the competitiveness of the euro area. With the euro now becoming the second pillar of the international monetary system, EMU's external dimension has become very relevant. The way forward needs to blend the traditional concerns for macroeconomic stability and competitiveness with the more recent concern about the role of Europe in the global economy. All these dimensions need to be organized into a coherent agenda. The right policy should be implemented at the right time.
Topic:
Economics and Foreign Exchange
Political Geography:
Europe