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Begin New Search Topic Development Political Geography North America Content Type Working Paper Publishing Institution Centro de Investigación y Docencia Económicas

1. Getting to “No”: Defending Against Demands in NAFTA Energy Negotiations

Author:
Antonio Ortiz Mena L.N.
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
How can a developing country defend itself against unwanted demands in international economic negotiations, especially when the demandeur is a stronger state? Such defense can be a necessary component of any strategy, not only a distributive one but also a mixed strategy aimed at a wider agreement that benefits both sides. Sometimes what looks like an unwelcome demand turns out, after exploration and exchanges of concessions, to be an acceptable element in a beneficial package deal. But some demands are unwelcome in the stronger sense that one's government places an infinite reservation value on that particular issue. The government would prefer no agreement. In the case of a deal breaker, the delegation can walk away from the entire negotiation, but this could have large costs in opportunities foregone and even possible penalties imposed. What are the alternatives short of walking away? Mexico's negotiators faced such situation in the North American Free Trade Agreement (NAFTA) negotiations with the United States and Canada (1990-1992), specifically in the energy sector. In general the three states sought a mutual-gains agreement, and in general each employed a mixed strategy. In energy, however, Washington made demands--regarding investment and supply commitments--which Mexico found unacceptable. At the end of the day the Mexican team managed to attain its main offensive negotiation aims in NAFTA (significantly improved market access, faster tariff reductions in the U.S. and Canada than in Mexico, and an effective dispute settlement mechanism), as well as the main defensive ones in energy. How did they do it? Structural conditions, such as being a neighbor of the U.S., gives Mexico certain leverage in negotiations, for the U.S. will typically take into account non-economic considerations when negotiating over economic issues. Nonetheless, many lessons derived from Mexico's negotiation strategy in energy negotiations during NAFTA can be applied across a range of cases.
Topic:
Development, Economics, Energy Policy, and Government
Political Geography:
United States, Washington, Canada, North America, and Mexico

2. Banking Reform and Development in the Middle East and Africa

Author:
Catherine Boone and Henry Clement
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
This study underscores the strategic role —both political and economic— of banking sector reform in the overall pursuit of economic development and democratization. It compares trajectories of banking sector reform in Middle Eastern and African countries that have remained on the margins of the new global economy. A close look shows that there governments' willingness to embrace reform has differed across contexts, as has the extent and pace of reform. Meanwhile, the effects of reform have also been very uneven. We model this variation in reform trajectories and its outcomes, propose a theoretical explanation for it, and use a set of case studies to illustrate the contrasts and causal dynamics that we have identified. Our main claim is that structural features of national political economies go far in defining actual trajectories of banking sector reform and liberalization. Structural features of national political economies that we define as key are the strength of indigenous private sector, and how it is linked to the state and foreign capital. We propose a typology of banking structure and reform trajectories and use case studies from the Middle East and Africa to illustrate variation in the politics of banking sector reform.
Topic:
Development and Political Economy
Political Geography:
Africa, United States, Middle East, Canada, North America, and Mexico

3. Liberalizaci ó n Commercial y Reforma Burocr á tica en El Área de Tratados Comerciales Internacionales en México.

Author:
Jorge A. Schiavon and Antonio Ortiz Mena
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
The central trade policy priority of the last two administrations (Carlos Salinas de Gortari, 1988-1994, and Ernesto Zedillo Ponce de León, 1994-2000) was the negotiation and the implementation of one very important and ambitious free trade agreement each, the North American Free Trade Agreement and the Mexico-European Union Free Trade Agreement respectively. This working paper explains how and why both administrations were able to successfully deal with the delegation problems that chief-executive principals face with their bureaucratic agents, through a series of institutional reforms. The main argument is that both Salinas and Zedillo had to deal with three specific agency problems: adverse selection, moral hazard, and incomplete enforcement, and that given the characteristics of the Mexican political system prevailing at that time, they were able to successfully solve these problems. These institutional reforms in the foreign economic policy should be understood as a response to agency problems, and not as a reflection of the personal governing style of Salinas and Zedillo.
Topic:
Foreign Policy, Development, and Treaties and Agreements
Political Geography:
Africa and North America

4. Environmental Protectionism and Comparative Observations in West Europe and North America

Author:
Imtiaz Hussain
Publication Date:
01-1998
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
Environmental concerns were seen by some as "a welcome guest in the free trade party" when they were first taken seriously in the early 1990s. Although they have since mushroomed in size and significance, the debate rages if policy measures are responding to demand. Trading behavior, for example, has not altered appreciably owing to the mounting pressures, but agreements increasingly acknowledge the need for safeguards. On the one hand is the problem of public pressure, very often of grassroots origins, upon policy-makers at all levels—multilaterally, internationally, regionally, nationally, and locally. On the other is the inquiry if policy impact is evolving differently, not only at various policy-making levels, but also in various parts of the world. How, indeed, have concerns and policy measures meshed? My broad response elaborates why environmental protectionism is chosen as a topic first, then explains the selection of cases for comparison, before turning to theoretical considerations, the empirical study itself, and finally drawing conclusions and implications, all in that order.
Topic:
Development and Environment
Political Geography:
Europe and North America

5. Old Wine in New Bottle? The Summit of the Americas in Theoretical Perspective

Author:
Imtiaz Hussain
Publication Date:
01-1997
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
What factors made the attainment of a regional trading bloc a priority at the Summit of the Americas? Why was it so inclusive a gathering? What are the prospects and problems of an American Free Trade Association? How can regionalism in this part of the world be explained theoretically?
Topic:
Development, International Trade and Finance, and Regional Cooperation
Political Geography:
America and North America