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Begin New Search Topic International Political Economy Content Type Working Paper

201. Latin America and the Global Economic Crisis

Publication Date:
03-2009
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
An overview of the region up to 30 January 2009 by the UN Economic Commission for Latin America and the Caribbean (cepal) argues that the larger economies have been more directly affected by the global economic crisis (because in general they are more integrated with the global markets, especially finance), but are also better equipped to respond to it. In particular, Cepal sees South America as diverging from Central America and the Caribbean, which seem to be both less resilient in terms of their economies, and more exposed to the slump in the USA. They are being driven back to aid as the last/only resort. Mexico is in a category of its own, the most exposed to the US downturn, but as a large economy and an oil exporter, better placed to withstand the downturn than its Caribbean basin neighbours.
Topic:
Economics, Globalization, and International Political Economy
Political Geography:
South America, Latin America, and Caribbean

202. Thresholds in the Process of International Financial Integration

Author:
Eswar Prasad, M. Ayhan Kose, and Ashley D. Taylor
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The financial crisis has re-ignited the fierce debate about the merits of financial globalization and its implications for growth, especially for developing countries. The empirical literature has not been able to conclusively establish the presumed growth benefits of financial integration. Indeed, a new literature proposes that the indirect benefits of financial integration may be more important than the traditional financing channel emphasized in previous analyses. A major complication, however, is that there seem to be certain “threshold” levels of financial and institutional development that an economy needs to attain before it can derive the indirect benefits and reduce the risks of financial openness. In this paper, we develop a unified empirical framework for characterizing such threshold conditions. We find that there are clearly identifiable thresholds in variables such as financial depth and institutional quality—the cost-benefit trade- off from financial openness improves significantly once these threshold conditions are satisfied. We also find that the thresholds are lower for foreign direct investment and portfolio equity liabilities compared to those for debt liabilities.
Topic:
Development, Economics, Globalization, International Political Economy, and International Trade and Finance

203. Difference within Similarity: Transatlantic Relations as a 'Community of Neighbours'

Author:
Pertti Joenniemi
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The contribution focuses on the unfolding and tensions within the transatlantic relationship and it pursues, in particular, the question how the bonds of association between Europe and America are best comprehended and accounted for. In trying to break some new ground for theorization it argues that the Realist, Liberal and Constructivist accounts have so far come up short in terms of providing up-to-date and broadly acceptable answers. With the dominant theories focusing largely on either external enmity or internal homogeneity, difference internal to the relationship has too easily been conceptualized as destabilizing and seen as representing a rupture. In contrast, the paper assert s that while elements of enmity and homogeneity are important, communities such as the Atlantic one are also critically brought together by their internal differences. It then aims, in view of the difference-based dynamics at play and foundational for the Atlantic communality, to complement an d provide a corrective to the more established theorization of that togetherness.
Topic:
International Relations, Foreign Policy, International Political Economy, and Bilateral Relations
Political Geography:
United States, America, and Europe

204. China's $1.5 Trillion Bet: Understanding China's External Portfolio

Author:
Brad W. Setser and Arpana Pandey
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
This paper was originally published in January 2009. The May update incorporates quarter one 2009 data on China's foreign reserves, the Treasury International Capital (TIC) capital flows data for December, January, and February, and the results of the June 2008 survey of foreign portfolio investment in the United States. The June 2008 survey indicated that China bought fewer Treasury bonds and more equities than the authors estimated in the January paper.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States and China

205. The value of power, the power of values: a call for an EU Grand Strategy

Author:
Sven Biscop (ed.)
Publication Date:
10-2009
Content Type:
Working Paper
Institution:
European Centre for Minority Issues
Abstract:
In its 2003 European Security Strategy (ESS), the EU has a grand strategy, embracing all instruments and resources at the disposal of the Union and the Member States, but a partial one. The ESS tells us how to do things – in a preventive, holistic and multilateral way – but it is much vaguer on what to do: what are the concrete objectives and priorities of the EU as a global actor?
Topic:
Economics, Emerging Markets, International Political Economy, International Trade and Finance, and Regional Cooperation
Political Geography:
Europe

206. The Chinese Meaning of Just War and Its Impact on the Foreign Policy of the People's Republic of China

Author:
Nadine Godehardt
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The image of China's peaceful rise, which the Chinese government is keen to enforce in the world, stands in contrast to the view of China's ascent as a threat. China's economic and military growth is perceived as a potential threat to the (East) Asian security structure and as a challenge to the preponderance of the United States. Even though the PRC is more active in international and regional organizations­and better integrated in the international community­than ever before, the ambiguity of China's true political intentions is still dominant.
Topic:
Civil Society and International Political Economy
Political Geography:
United States, China, Israel, East Asia, and Asia

207. Iranian Strategy in Iraq: Politics and "Other Means"

Author:
Joseph Felter and Brian Fishman
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
The Combating Terrorism Center at West Point
Abstract:
Iran has a robust program to exert influence in Iraq in order to limit American power-projection capability in the Middle East, ensure the Iraqi government does not pose a threat to Iran, and build a reliable platform for projecting influence further abroad. Iran has two primary modes of influence. First, and most importantly, it projects political influence by leveraging close historical relationships with several Shi'a organizations in Iraq: the Islamic Supreme Council of Iraq (ISCI), the Badr organization, and the Dawah political party. Second, Iran uses the Iranian Revolutionary Guard Corps (IRGC) and Qods Force (QF) to provide aid in the form of paramilitary training, weapons, and equipment to various Iraqi militant groups, including Moqtada al-Sadr's Jaysh al-Mahdi (JAM) and the Special Group Criminals (SGCs). Iran also projects influence through economic initiatives and various religious programs. Iranian influence in Iraq is inevitable, and some of it is legal and constructive. Nonetheless, Iranian policy in Iraq is also duplicitous. Iran publicly calls for stability while subverting Iraq's government and illegally sponsoring anti‐government militias.
Topic:
International Political Economy and War
Political Geography:
Iraq, Iran, and Middle East

208. The International Monetary Fund and the World Bank: It's Time to Separate the Conjoined Twins

Author:
Lex Rieffel
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The IMF and the World Bank were created in 1944 to be at the center of the international financial system, but they have not adapted well to the far- reaching changes in the global economy over the past twenty years. Their legitimacy has been called into question due to their antiquated governance structures, and as a consequence they are losing relevance and effectiveness.
Topic:
Economics, International Organization, International Political Economy, International Trade and Finance, and International Monetary Fund

209. Can America Still Lead in the Global Economy?

Author:
Lael Brainard and David Lipton
Publication Date:
08-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
From the vantage point of 2008, some of the most memorable initiatives of U.S. international economic leadership—the Paris and Louvre Accords, the support for Poland and Russia after the fall of communism, the Uruguay Round, and the Mexican Financing Loan—seem like quaint reminders of a simpler time. In the coming years, the exercise of international economic leadership will surely prove more complex than in the past. The very success of the American vision of a global spread of vibrant and competitive markets has created a huge, rapidly integrating private economy of trade and finance much less amenable to guidance, let alone control, by governments. Unlike in diplomacy and defense, where non state actors are growing in importance but still a side show, in inter- national economics, households, corporations, labor unions, and non-profits are now the dominant players in most parts of the world. While they respond to national laws and policies, their interests are varied and their operations often span borders.
Topic:
Economics, International Political Economy, International Trade and Finance, and Markets
Political Geography:
Russia, United States, Paris, Poland, Uruguay, and Mexico

210. Turkey's Middle East Policies: Between Neo-Ottomanism and Kemalism

Author:
Ömer Taspinar
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In what represents a remarkable departure from its policy of non-involvement, Turkey is once again becoming an important player in the Middle East. In recent years, Ankara has shown a growing willingness to mediate in the Arab– Israeli conflict; attended Arab League conferences; contributed to UN forces in Lebanon and NATO forces in Afghanistan; assumed a leadership position in the Organization of Islamic Conference and established closer ties with Syria, Iran, and Iraq.
Topic:
International Political Economy, Islam, Nationalism, and Religion
Political Geography:
Afghanistan, Iraq, Iran, Turkey, Middle East, Israel, and Syria

211. When Money Talks: Arab Sovereign Wealth Funds in the Global Public Policy Discourse

Author:
Sven Behrendt
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In recent years, Arab and other emerging economies' sovereign wealth funds (SWFs)—government-controlled pools of assets designed to engage primarily in foreign investments—have grown into a relevant class of investors in global financial markets. Their past and projected growth has triggered an intense debate about their impact on the structure and architecture of the global financial system.
Topic:
Economics and International Political Economy
Political Geography:
Arabia

212. The Trade and Climate Change, Joint Agenda

Author:
Thomas L Brewer
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Climate change, international trade, investment and technology transfer are all issues that have intersected in diverse institutional contexts and at several levels of governmental activity to form a new joint agenda. The purpose of this paper is to advance understanding of this joint agenda by identifying the specific issues that have emerged, the policies that have been adopted, especially in the EU and US, and the options that are available for further policy-making.
Topic:
Climate Change, International Cooperation, International Political Economy, and International Trade and Finance
Political Geography:
United States and Europe

213. The Struggle for a Civilised Wider European Order

Author:
Michael Emerson
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Europe's two crises – the Georgia-Russia war of August and the ongoing global financial and economic crisis – point to huge challenges for the organisation and policies of the European Union. The present paper concentrates on the risks that the crises represent for one of the EU's prim e objective, to achieve a civilized wider European order. At least the current episodes show that with leadership the EU can act fast in both diplomacy and finance. But the next question is how to follow through, beyond a passing moment of an effective six-month presidency of the EU. This is the subject of the present note, which advocates a comprehensive upgrading of the EU's policies in the wider European area, and contributes ideas for the revision of the European Security Strategy currently being prepared. The aim would be to strengthen EU policies towards South-East Europe, East Europe and Central Asia, and defuse the current confrontation between a normative Europe and an aggressive Russian realpolitik; better still Russia might, after reflecting on what the two crises mean for its fundamental interests, conclude that the time had come for a more genuinely cooperative understanding with the EU.
Topic:
International Political Economy
Political Geography:
Russia, Europe, Central Asia, Asia, and Georgia

214. Free Hand Abroad, Divide And Rule At Home

Author:
Jack Snyder, Robert Y. Shapiro, and Yaeli Bloch-Elkon
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
Arnold A. Saltzman Institute of War and Peace Studies
Abstract:
Under unipolarity, the immediate costs and risks of war are more likely to seem manageable for a militarily dominant power like the U.S. This does not necessarily make the use of force cheap or wise, but it means that the costs and risks of the use of force are comparatively indirect, long-term, and thus highly subject to interpretation. Unipolarity, combined with the opportunity created by September 11, opened a space for interpretation that tempted a highly ideological foreign policy cohort to seize on international terrorism as an issue to transform the balance of power in both the international system and American party politics. This cohort's response to the terrorist attack was grounded in ideological sincerity, but also in the routine practice of wedge issue politics, which had been honed on domestic issues during three decades of partisan ideological polarization and then extended into foreign policy.
Topic:
Defense Policy, Government, International Political Economy, and Terrorism
Political Geography:
United States and America

215. Through the Looking-Glass, and What OLS Found There: On Growth, Foreign Aid, and Reverse Causality

Author:
David Roodman
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The cross-country literature on foreign aid effectiveness has relied on the use of instruments to distinguish causality from mere correlation. This paper uses simple non-instrumental techniques in the spirit of Granger to demonstrate that the main aid-growth connection is a negative causal relationship from growth to aid—aid, that is, as a fraction of recipient GDP. Coarsely, when GDP goes up, aid/GDP goes down. The endogeneity of aid, long-suspected, is real. Less understood is that adding certain common controls to regressions puts this relationship through the looking-glass, flipping both its sign and apparent direction: aid seems to cause growth. Ideally, instrumentation expunges the endogeneity shown here. In practice, estimates of aid's impact have run into problems. Autocorrelation in the errors is widespread, and can render endogenous lagged variables used as regressors or instruments. The pitfalls of “difference” and “system” include invalidity and proliferation of instruments. Multicollinearity in term pairs of interest, such as aid and aid or “project” and “program” aid, can amplify endogeneity bias. The combination of specification problems and widespread fragility (shown in earlier work) leads to pessimism about the ability of cross-country econometrics to demonstrate aid effectiveness. This does not rule an average positive effect, nor does it contradict the fact that aid has saved millions of lives, but it does suggest that the average effect on economic growth is too small to be detected statistically.
Topic:
Economics, Humanitarian Aid, and International Political Economy

216. The europeanization of Europe : the transfer of norms to Europe, in Europe and from Europe

Author:
Trine Flockhart
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Europeanization is a concept predominantly concerned with the domestic impact of the EU whilst less concerned with its historical foundations and wider geographical reach. By forwarding a Historical Sociological conceptualization of Europeanization it is revealed that the concept suffers from fundamental problems relating to historical and geographical scope, to uncertainty about which causal relationships to explain, and that it is based on implicit but unsustainable assumptions. This article challenges the assumption that Europeanization is based on ideas endogenous to Europe and is an activity preserved for Europeans. It suggests that 'Europeanization' can be conceptualized as several social processes involving different agents, structures, processes and conceptions of 'self' and 'other', and that Europeans have been more on the receiving end of ideational diffusion than promoters of a European norm set. By employing a Historical Sociological perspective it is revealed that before Europeans could 'Europeanize' either in or from Europe, they not only had to develop a European identity through a process of ideational diffusion to Europe, but the idea set which is today regarded as 'European' was diffused from the United States and stands in complete contrast to ideas previously also regarded as European.
Topic:
Civil Society and International Political Economy
Political Geography:
Europe

217. Structural Stability: On the Prerequisites of Nonviolent Conflict Management

Author:
Andreas Mehler, Lena Giesbert, Jenny Kuhlmann, Christian von Soest, and Ulf Engel
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The concept of “structural stability” has been gaining prominence in development policy circles. In the EU's and the OECD Development Assistance Committee's (OECD DAC) understanding, it describes the ability of societies to handle intra-societal conflict without resorting to violence. This study investigates the preconditions of structural stability and tests their mutual interconnections. Seven dimensions are analyzed: (1) long-term economic growth, (2) environmental security, (3) social equality, (4) governmental effectiveness, (5) democracy, (6) rule of law, and (7) inclusion of identity groups. The postulated mutual enhancement of the seven dimensions is plausible but cannot be proven. The most significant positive relationship appears between “democracy” and “rule of law,” respectively, on the one hand and the dependent variable “violence/ human security” on the other hand. This points to the usefulness of the political concept of structural stability to promote development policy agendas in this area at least. Applications that reach beyond these initial findings will, however, require further research.
Topic:
Conflict Resolution, Conflict Prevention, Security, and International Political Economy

218. Reunifying Cyprus: The Best Chance Yet

Publication Date:
06-2008
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
A new peace process in Cyprus offers the best opportunity in decades to solve the intractable division of the island. The turnabout is largely due to the surprise election of Demetris Christofias to the Greek Cypriot presidency. He, together with his Turkish Cypriot counterpart, Mehmet Ali Talat, are demonstrating political will to make the current UN-mediated talks succeed. Key players like Turkey are being constructive. The outside world, particularly the UN and European Union (EU), needs to fully engage in support of a comprehensive settlement that will improve Cypriot security and prosperity, free Turkey to continue its movement into Europe and overcome a problem that is increasingly damaging to EU policy in the region and beyond.
Topic:
Conflict Resolution, Diplomacy, International Political Economy, and United Nations
Political Geography:
Europe and United Nations

219. Korean Institutional Reform in Comparative Perspective

Author:
Marcus Noland and Erik Weeks
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
In recent years, academic economists have come to appreciate the centrality of public institutions in contributing to economic performance. Yet Korea, arguably the premier success story of the last half-century, has sometimes been described as a First World economy with Third World institutions. Although Korea modestly underachieves on most of the 52 institutional indicators examined in this paper, it is not an outlier, and on most indicators it is converging on global norms from below.
Topic:
International Organization and International Political Economy
Political Geography:
United States, Asia, and South Korea

220. Empire, Hegemony, and Leadership: Developing a Research Framework for the Study of Regional Powers

Author:
Sandra Destradi
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Regional powers are often conceived of as “regional leading powers,” states which adopt a cooperative and benevolent attitude in their international relations with their neighbors. The paper argues that regional powers can follow a much wider range of foreign policy strategies in their region. Three ideal-typical regional strategies are identified: empire, hegemony, and leadership. The paper is devoted to a theory-led distinction and clarification of these three terms, which are often used interchangeably in the field of international relations. According to the goals pursued, to the means employed, and to other discriminating features such as the degree of legitimation and the type of self-representation by the dominant state, the paper outlines the essential traits of imperial, hegemonic, and leading strategies and identifies subtypes for better classifying hegemony and leadership.
Topic:
International Relations, International Political Economy, and Political Economy
Political Geography:
China, India, and Brazil

221. China's Thirst for Oil

Publication Date:
06-2008
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
China's need for energy is growing faster than any other country's. Record economic growth results in demand that outstrips domestic supply, leading Beijing to look outward to ensure growth and stability. Concerns about the global oil market have led state firms to buy stakes around the world, often in countries shunned by Western firms. The investments are an important factor in Beijing's foreign policy. They also drive concerns that China's actions fuel or exacerbate conflict in the developing world and cause tensions with other major oil-importing countries as it locks up energy resources. China's energy needs have led it to play a more prominent role in international markets in recent years. This has generated concerns about the potential impact on other countries' energy security, and global and regional security generally. These are largely overstated, but China could take a number of steps, as its policymaking and implementation evolves, which would help create a more cooperative international environment on both energy and wider security issues.
Topic:
Security, Energy Policy, and International Political Economy
Political Geography:
China, Beijing, and Asia

222. Georgia and Russia: Clashing over Abkhazia

Publication Date:
06-2008
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
With the dispute between Georgia and Russia in a new, dangerously confrontational phase, the risk of war in the South Caucasus is growing. Concerned by NATO's plans for further extension to former Soviet republics and Kosovo's unilateral but Western-orchestrated independence, Russia has stepped up manipulation of the South Ossetia and Abkhazia conflicts. Georgia remains determined to restore its territorial integrity, and hawks in Tbilisi are seriously considering a military option. Both sides need to recognise the risks in current policies, cool their rhetoric and cease military preparations. Russia should cease undermining its peacekeeper and mediator roles and be open to a change of negotiating formats. Georgia should adopt a new approach to the Abkhaz, encouraging their links to the outside world to lessen dependence on Russia and emphasising incremental con­­fidence building to establish the mutual trust needed for successful negotiations. The U.S. and European Union (EU) should be firm and united in cautioning both Moscow and Tbilisi against military adventures.
Topic:
International Relations, NATO, and International Political Economy
Political Geography:
Russia, Europe, Asia, Soviet Union, Kosovo, Georgia, and Tbilisi

223. How to Achieve a Better Budget for the European Union?

Author:
Daniel Gros
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
In recent decades the EU has widened and deepened to such an extent that it now deals in almost all areas of policy-making. Its budget, however, has barely changed over this period. It thus needs to be radically reformed if it is to reflect the priorities of an expanding and deepening Union. Over 40% of spending still supports agriculture, a declining sector; spending for research and innovation, recognised as the main driving force of productivity growth, is too low, and there is no room in the budget for the new public goods of domestic and external security that the public demands. However, the budget is determined through an inter-governmental negotiation in which no entity defends the over-arching European interest since all countries (rationally) care only about their 'net balance'.
Topic:
Government and International Political Economy
Political Geography:
Europe

224. EC Visa Facilitation and Readmission Agreements: Implementing a New EU Security Approach in the Neighbourhood

Author:
Imke Kruse and Florian Trauner
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
With the Eastern Enlargement successfully completed, the EU is searching for a proper balance between internal security and external stabilisation that is acceptable to all sides. This paper focuses on an EU foreign policy instrument that is a case in point for this struggle: EC visa facilitation and readmission agreements. By looking at the EU's strategy on visa facilitation and readmission, this paper aims to offer a first systematic analysis of the objectives, substance and political implications of these agreements. The analysis considers the instrument of EC visa facilitation and readmission agreements as a means to implement a new EU security approach in the neighbourhood. In offering more relaxed travel conditions in exchange for the signing of an EC readmission agreement and reforming domestic justice and home affairs, the EU has found a new way to press for reforms in neighbouring countries while addressing a major source of discontent in these countries. The analysis concludes with the broader implications of these agreements and argues that even if the facilitated travel opportunities are beneficial for the citizens of the target countries, the positive achievements are undermined by the Schengen enlargement, which makes the new member states tie up their borders to those of their neighbours.
Topic:
Security, Foreign Policy, International Political Economy, and Regional Cooperation
Political Geography:
Europe and Eastern Europe

225. Is European democracy promotion on the wane?

Author:
Richard Youngs
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The EU routinely asserts that the promotion of democracy and human rights is central to its international identity. However, while in some places the EU has a relatively strong record as a supporter of democratic values, it is failing to respond effectively to the emergence of a vastly more challenging environment for democracy promotion. This paper reveals serious limits across three strands of democracy policy – the magnitude of incentives offered in return for democratic change, the degree of critical pressure exerted for democratic reform and the scale of European democracy funding. Even where the EU is building on the initiatives it has pursued for the last two decades, the paper demonstrates that these policies fail to measure up to the challenges posed by the new international context.
Topic:
Democratization, Human Rights, and International Political Economy
Political Geography:
Europe and Eastern Europe

226. The United States:A normative power?

Author:
Daniel S. Hamilton
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
To what degree may the US be considered a normative power? The US foreign policy mainstream tends to reflect a varying blend of normative and hegemonic approaches. The US has been and continues to be simultaneously a guardian of international norms; a norm entrepreneur challenging prevailing norms as insufficient; a norm externaliser when it tries to advance norms for others that it is reluctant to apply to itself; and a norm blocker when it comes to issues that may threaten its position, or that exacerbate divisions among conflicting currents of American domestic thought. On balance (and despite exceptions), the US has sought to manage this normative-hegemonic interplay by accepting some limits on its power in exchange for greater legitimacy and acceptance of its leadership by others. The unresolved question today is whether the US and other key players are prepared to stick with this bargain. Closer examination of the US case also raises a considerable number of questions about the notion of the EU as a 'normative power'.
Topic:
International Relations, Foreign Policy, Defense Policy, International Law, International Organization, and International Political Economy
Political Geography:
Africa, United States, and Europe

227. The Trade and Climate Change, Joint Agenda

Author:
Thomas L Brewer
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Climate change, international trade, investment and technology transfer are all issues that have intersected in diverse institutional contexts and at several levels of governmental activity to form a new joint agenda. The purpose of this paper is to advance understanding of this joint agenda by identifying the specific issues that have emerged, the policies that have been adopted, especially in the EU and US, and the options that are available for further policy-making.
Topic:
Government, International Political Economy, and International Trade and Finance
Political Geography:
United States

228. Mobility of Labor and Services across the Baltic Sea after EU Enlargement: Trends and Consequences

Author:
Jon Erik Dølvik
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The enlargement of the EU / EEA area on 1 May 2004 to comprise 28 countries – including eight Central and Eastern European countries, in 2007 followed by Bulgaria and Romania – was a milestone. The subsequent opening of the markets for labor and services between countries with gaps in wages and living conditions comparable to those along the U.S./Mexican border has no modern precedent, prompting new patterns of competition, migration and adjustment in national labor market regimes. This paper reviews developments in labor migration after enlargement and the implications for the labor markets in the Baltic states and Poland, which have accounted for a predominant share of the intra- EU / EEA migration flows since 2004. Besides the UK and Ireland, where almost one million EU 8 citizens had registered in 2007, the booming Nordic economies have become important destinations, having granted more than 250,000 permits and seen sizeable additional flows of service providers and self-employed from the Baltic states and Poland. In the sending countries, rising demand for labor has, alongside strong outmigration – especially among young and well-educated groups – engendered falling unemployment, soaring wage growth, and made shortages of skills and labor an obstacle to further economic recovery. Yet, while better paid temporary work abroad may weaken the incentives for employment, mobility and training in the home country, aging will lead to shrinking working-age populations in the coming years. Unless the Baltic states and Poland can entice a larger share of the population to work in their home countries – and/or can attract substantial labor migration from third countries – the declining work force may easily entail economic stagnation and reinforce the outflow of human resources. These countries are thereby facing a critical juncture in their economic and social development. In the recipient Nordic countries, the growing labor and service mobility, low cost production, and competition for labor in Europe, as well as emerging lines of division in the labor markets, have, on the other hand, raised new questions as to how the principles of free movement and the egalitarian Nordic models can be made reconcilable in the open European markets.
Topic:
International Political Economy and Markets
Political Geography:
United States, United Kingdom, Europe, Eastern Europe, Poland, Bulgaria, Romania, and Ireland

229. China and the Future of the Developing World: The Coming Global-Asian Era and its Consequences

Author:
Jeffrey Henderson
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The rise of China as an economic and political 'driver' of the global economy is likely to be one of the defining moments of world history. Its dynamism and international expansion are on the verge of creating a 'critical disruption' in the global order that has held sway for over 60 years. As such, China is beginning to reshape the world, presaging a new phase of globalization: a 'global-Asian era'. This new era is likely to be distinct from any of the earlier phases of globalization and China's global footprint, in terms of its business, economic and political actions and their geopolitical implications, is likely to be markedly different from what has gone before. This paper offers a framework by which we can begin to understand the coming global-Asian era (GAE) and some of its consequences, particularly as the latter are surfacing in the developing world. Having discussed the nature and dynamics of the GAE, the paper turns to sketch a series of vectors (trade, aid and energy security) along which the GAE is beginning to impact on developing countries. The paper argues that, at least for these vectors, the Chinese-driven GAE is providing opportunities as well as dangers for national development projects. It concludes by briefly speculating on the viability of the GAE.
Topic:
Development, Globalization, International Political Economy, International Trade and Finance, and Oil
Political Geography:
China and Asia

230. Determinants of State Fragility and Implications for Aid Allocation: An Assessment Based on the Country Indicators for Foreign Policy Project

Author:
David Carment, Stewart Prest, and Yiagadeesen Samy
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper is derived from our ongoing research on fragile states funded by the Canadian International Development Agency (CIDA) to help policymakers and analysts make decisions on where and how to allocate aid, especially in fragile state environments. In order for development assistance to have a measurable and positive impact on fragile states, it is necessary to understand both how and why they become fragile. First, we reconceptualize the meaning of state fragility with equal attention given to the authority, legitimacy and capacity of a state, collectively referred to as ALC. Measures of these ALC components corresponding to six different categories of state performance—economics, governance, security and crime, human development, demographics, and the environment—are collected for all countries for the period 1999-2005. Initial testing of our fragility index shows that fragility is driven by a number of factors, of which the level of development seems to be more important. We complement this analysis by examining state fragility using the ALC framework. Overall, the approach presented has the distinct advantage of identifying country -specific patterns of fragility while at the same time allowing for broad strategically relevant measures of comparative performance that can be of use to policymakers regarding allocation of aid at the sectoral and programming level. Notwithstanding the fact that aid may be allocated for political and strategic reasons, and that fragile states are underfunded, we argue that aid that does flow to fragile states could be better targeted. Specifically, it could strengthen the underlying determinants of fragility by addressing fragile states' distinct and country-specific weaknesses in authority, legitimacy and capacity. Finally, we discuss policy implications of our analysis and directions for future research.
Topic:
Conflict Prevention, Development, and International Political Economy

231. Ecological Macroeconomics: Consumption, Investment, and Climate Change

Author:
Jonathan Harris
Publication Date:
07-2008
Content Type:
Working Paper
Institution:
Global Development and Environment Institute at Tufts University
Abstract:
The challenge of reducing global carbon emissions by 50-85 per cent by the year 2050, which is suggested by the Intergovernmental Panel on Climate Change (2007a) as a target compatible with limiting the risk of a more-than-2ºC temperature increase, clearly conflicts with existing patterns of economic growth, which are heavily dependent on increased use of fossil fuel energy. While it is theoretically possible to conceive of economic growth being “delinked” from fossil fuel consumption, any such delinking would represent a drastic change from economic patterns of the last 150 years.
Topic:
Climate Change, Economics, and International Political Economy

232. Fortune or Evil? The Effects of Inward Foreign Direct Investment on Corruption

Author:
Pablo M. Pinto and Boliang Zhu
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Arnold A. Saltzman Institute of War and Peace Studies
Abstract:
This paper analyzes the relationship between inward foreign direct investment (FDI) and grand corruption in host countries. We argue that the effects of FDI on government corruption are conditional on the host country's underlying economic and political climate: FDI will be associated with higher corruption levels in political and economic environments where competition is restriced. We adopt an empirical strategy aimed at dealing with the underlying endogeneity problem. We construct an instrument for inward FDI based on a measure of remoteness. We test our hypotheses on the conditional effects of FDI on corruption in an instrumental variable two-stage least-squares setting, finding preliminary support for our argument: the effect of FDI on corruption is positive in authoritarian and poor countries, and turns negative as countries develop and become more democratic. We also find that the marginal effect of FDI on corruption in democratic and rich countries is smaller.
Topic:
Corruption, Development, International Political Economy, and International Trade and Finance

233. On What Terms Is the IMF Worth Funding?

Author:
Edwin M. Truman
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
In the first decade of the 21st century the International Monetary Fund (IMF) faced crises of legitimacy, relevance, and budgetary finance. It now confronts what likely will be the worst global recession since World War II, potentially huge demands for its financial assistance with limited resources, and calls for it to play a more central role in the international financial and regulatory systems. At the same time, the incoming Barack Obama administration must decide what to do about the modest package of IMF reforms that was completed in the spring of 2008. The package requires US congressional approval to go into effect. This paper reviews the recent, slow progress on IMF reform and makes recommendations to the Obama administration against the background of that record, the emerging global recession, and continuing financial turmoil. I recommend that the IMF package be reopened to include a doubling of IMF quotas and an amendment that will permit the Fund to swap special drawing rights (SDR) with major central banks to finance its short-term lending facility. I also recommend a special allocation of 50 billion SDR. If these proposals are turned down by the G-20 at its meeting in April 2009, I reluctantly recommend that the Obama administration seek congressional approval of the IMF package as it now stands because a failure to do so would seriously undermine the Fund as a central multilateral institution.
Topic:
Development, International Organization, International Political Economy, International Trade and Finance, and Global Recession
Political Geography:
United States

234. Von der gesteuerten Demokratie zum selbststeuernden Kapitalismus

Author:
Wolfgang Streeck
Publication Date:
07-2008
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The paper is an expanded and revised version of a lecture given at the 2008 Annual Colloquium of the Max Planck Institute for the Study of Societies (MPIfG). Its subject is the relationship between social theories and political-economic change. The paper's central claim is that theories of society can by nature be fully understood only if related to and interpreted in the horizon of action of a virtual user located in the social world that is being explained. This is illustrated with reference to the development of political macrosociology since the Second World War. Next, five tendencies in today's social sciences are briefly discussed, all of which seem to indicate growing uncertainty about the practical usefulness of basic research in social science, in light of the demise of the democratic nation-state: the transition from Steuerungstheorie to research on “governance”; the departure from participatory models of democracy; the rise of economics to academic and political hegemony; a functionalist, efficiency-theoretical turn in theories of social policy; and growing doubts about the usefulness of a scientistic model of theory. In the final section it is suggested that the social sciences might find new theoretical orientation and practical self-confidence by defending in public discourse its fundamental insights on the limits of a market-driven organization of social life.
Topic:
Democratization, International Political Economy, Political Economy, and Political Theory

235. Der kollektive "Buddenbrooks-Effekt"

Author:
Christoph Deutschmann
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The paper views the current financial crisis in light of long-term structural socioeconomic changes in advanced industrial societies. In Western Europe, the United States and Japan, the period of economic prosperity after the Second World War led to a remarkable accumulation of wealth among the middle class that had surprisingly little effect on the substantial fortunes of the wealthiest upper class. This affluence gave rise to pension and investment funds emerging as a new type of collective actor in global financial markets, while the economy was marked by increasing instability, declining growth rates and financial crises. The paper tries to clarify the interconnections between these phenomena using the framework of a multilevel analysis that culminates in a model I call the “collective Buddenbrooks effect” (“Buddenbrooks” being a family saga by Thomas Mann): Structural upward social mobility will lead to an increasing imbalance in capital markets, since the volume of financial assets looking for profitable investment will rise as the social reservoir of solvent debtors and promising investment opportunities decline. Advanced industrial economies are thus characterized by a bias towards capital export and excessive financial liquidity, with the well-known consequences of low economic growth rates and the danger of speculative bubbles on global capital markets. The middle class that originally benefitted from postwar prosperity is negatively affected, too. I argue that the current crisis cannot be understood sufficiently without taking this structural socioeconomic background into account.
Topic:
Economics, International Political Economy, International Trade and Finance, Political Economy, and Political Theory
Political Geography:
United States, Japan, and Europe

236. Economic Sociology and Political Economy: A Programmatic Perspective

Author:
Jens Beckert and Wolfgang Streeck
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The paper presents some of the ideas underlying the current research program of the Max Planck Institute for the Study of Societies (MPIfG). It begins with a discussion of how the institute's programmatic orientation has evolved since it was founded in 1984. Programmatic change over the years involved (1) recognition of a secular decline in the capacity of the nation-state to organize and guarantee social order, and of the growing significance of self-regulating, “free” national and international markets for social life; (2) increased attention to issues of meaning and to “culture” and cultural symbolism, as well as to normative questions; (3) a gradual shift in emphasis from policy to politics; and (4) more explicit recognition of history and of the historicity of the questions posed and the observations analyzed in social science. The second part of the paper argues that Gesellschaftsforschung today is most appropriately conceived as the study of the economy and society of contemporary capitalism. It is suggested that the most promising approach is close cooperation between the scholarly traditions of political economy and economic sociology, with the former standing to benefit from a more explicit micro-foundation in a sociological theory of action and the latter from more systematic consideration of politics and the state. Third, the paper shows how the approach that has evolved at the MPIfG differs from mainstream economic sociology, from the so-called new institutional economics, and from behavioral economics. The paper concludes by enumerating four subject areas that are likely to be of particular importance for research at the MPIfG: (1) the nature of rational-economic action, (2) the constitution of markets, (3) the emergence and change of institutions, and (4) the relationship between capitalism and democracy.
Topic:
Economics, International Political Economy, Political Economy, and Political Theory

237. Industrial Relations Today: Reining in Flexibility

Author:
Wolfgang Streeck
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The paper was presented as a keynote lecture at the 10th anniversary of the Amsterdam Institute for Advanced Labour Studies (AIAS) in April 2008. It surveys the trajectory of scholarly work on labor after 1945, from its initial emphasis on rights of industrial and social citizenship to its present preoccupation with “flexibility” and “flexicurity”. It recalls the dissolution of the “Fordist” compromise in the 1970s and the subsequent gradual expansion of markets as the dominant mechanism for the allocation of life chances and the governance of society. Marketization encountered surprisingly little resistance, in real life as in the evolving conceptual apparatus of scholarly work. Liberalization proceeded and continues to proceed regardless of the social dislocations it causes, on a scale wholly unimaginable and indeed unacceptable under the postwar settlement. The paper ends with speculation on what if at all might be the forces today that could trigger a Polanyian counter-movement to the progress of capitalist social and economic relations. In particular it discusses whether demographic change, in terms of both a declining birth rate and increasing life expectancy, might bring about a new wave of market-containing social policy.
Topic:
International Political Economy, International Trade and Finance, Markets, Political Economy, and Political Theory

238. States and Rules, Norms and Interests

Author:
Ian Hurd
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Centre for International Peace and Security Studies
Abstract:
The conventional separation in IR theory between instrumental behavior and legitimated norms as explanations for state action has discouraged the study of phenomena that include both. As a result important practices including hypocrisy, norm violation, and the strategic reinterpretation of rules and laws are under-examined. The source of the problem is the idea of 'internalization' of external rules and norms, which has come to define the distinction between rationalism and constructivism in IR, and between the logics of appropriateness and of consequences. I argue that internalization is problematic for empirical research in IR because it eliminates the possibility of strategic thinking by states in relation to international norms and rules. It leaves no room for instrumentalism around norms and so cannot account for norm violation, the strategic manipulation of norms, and the productive process of norm innovation. This is a problem equally for rationalism and constructivism. I argue for an alternative model that focuses on the practice of invoking international norms and rules and show that this approach allows new insight into the agent-structure problem, the relation between states and rules in world politics, and the relation between rationalism and constructivism.
Topic:
International Relations, International Political Economy, Sovereignty, and Political Theory
Political Geography:
Global Focus

239. Globalization and Global Governance in the 21st Century

Author:
Jeffrey Hart and Joan Edelman Spero
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Centre for International Peace and Security Studies
Abstract:
An examination of international economic relations in the six decades since World War II reveals many ways in which political factors have shaped economic outcomes. The postwar security system significantly affected the postwar economic system. The creation of a bipolar security system following the outbreak of the Cold War led to the separation of the Eastern and Western economic systems and provided a basis for the dominant role of the United States in the Western system and of the Soviet Union in the Eastern system. The end of the Cold War led in turn to the end of the East-West economic divide and to the integration of the formerly Communist countries and China into the global capitalist economy.
Topic:
Cold War, Globalization, Government, International Cooperation, International Political Economy, International Security, and International Affairs
Political Geography:
United States and China

240. East Asian regionalism: Much ado about nothing?

Author:
John Ravenhill
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Australian National University Department of International Relations
Abstract:
In the decade since the financial crises, East Asia has become the most active site in the world for the negotiation of preferential trade agreements. Region-wide functional collaboration now goes substantially beyond trade, however, ranging across such areas as financial cooperation, disaster management, transborder crime, tourism, energy and environmental issues.
Topic:
International Relations, International Political Economy, International Trade and Finance, Regional Cooperation, and Treaties and Agreements
Political Geography:
Israel and Asia

241. Raymond Aron and the morality of realism

Author:
MURIELLE COZETTE
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Australian National University Department of International Relations
Abstract:
The realism school of thought in international relations is often accused of presenting politics as an autonomous sphere which does or should exclude ethical considerations, and of providing a tragic vision of politics which precludes any belief in progress. These accusations are particularly misplaced when applied to Raymond Aron, a leading classical realist whose insights are rarely investigated in the discipline. The article challenges the perception of Aron as a 'mainstream' classical realist and emphasises the distinctiveness of his formulation of realism by focusing on his views on ethics, politics and progress. It demonstrates that Aron promotes a 'morality of wisdom' which gives a central place to the defence of values alongside considerations of power. He also provides a definition of survival which stresses the importance of shared values for the existence of political communities, and consequently the need to uphold them even though ethical perfection cannot be achieved in the political sphere. Aron's ideas are finally underpinned by Kantian elements. Advocating not so much faith in a determined future, but rather hope sustained by reason, his realism provides a middle ground between moralism and cynicism. Aron therefore provides a very distinctive European version of realism which demonstrates the richness of realist arguments upon morality, politics and progress.
Topic:
International Relations, Government, International Political Economy, Politics, and Political Theory

242. Multilateralism Beyond Doha

Author:
Arvind Subramanian and Aaditya Mattoo
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There is a fundamental shift taking place in the world economy to which the multilateral trading system has failed to adapt. The Doha process focused on issues of limited significance while the burning issues of the day were not even on the negotiating agenda. The paper advances five propositions: the traditional negotiating dynamic, driven by private sector interests largely in the rich countries, is running out of steam; the world economy is moving broadly from conditions of relative abundance to relative scarcity, and so economic security has become a paramount concern for consumers, workers, and ordinary citizens; international economic integration can contribute to enhanced security; addressing these new concerns–relating to food, energy and economic security-requires a wider agenda of multilateral cooperation, involving not just the WTO but other multilateral institutions; and despite shifts in economic power across countries, the commonality of interests and scope for give-and-take on these new issues make multilateral cooperation worth attempting.
Topic:
International Relations, Economics, Globalization, International Political Economy, International Trade and Finance, Markets, and Privatization
Political Geography:
Middle East

243. Thought for Food: The Challenges of Coping with Soaring Food Prices

Author:
Nora Lustig
Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
World food commodities prices increased 130 percent from January 2002 to July 2008. Individual agricultural commodities show even more pronounced increases: corn, wheat, rice and soybeans rose by 190, 162, 318 and 246 percent, respectively. Since July, food commodities prices began to fall. While this decline comes as a relief, prices are likely to stay high in the foreseeable future. Available evidence suggests that the decline in living standards of net consumers caused by higher food prices outweighs the benefits accruing to poor net sellers in the majority of countries that have been analyzed so far. The time to implement measures to help the poor net consumers cope with higher food prices is now. However, too many developing countries lack the instruments, administrative capacity and fiscal space to implement safety nets fast enough and in the required scale. This is one of the most pressing policy challenges that we face. For the poor who are net sellers, governments should seize the opportunity to convert the short-run windfall into longer-term gains. Multilateral financial institutions can play a key role in providing financial resources to countries facing negative terms of trade shocks, technical assistance in the design of safety nets and resources to add fiscal space to countries to fund safety net programs. International organizations can also help countries design the appropriate macroeconomic policy response. This will call for greater flexibility in the menu of policy options traditionally deployed by the Bretton Woods institutions.
Topic:
Security, Agriculture, International Political Economy, International Trade and Finance, Markets, and Poverty

244. Rainfall Shocks, Markets, and Food Crises: Evidence from the Sahel

Author:
Jenny C. Aker
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
How do markets respond to extreme rainfall in West Africa? This paper examines the effect of weather on grain market performance in Niger, a country increasingly affected by drought and severe food crises over the past two decades. Using a dataset that combines information on rainfall, agricultural production, prices and transaction costs, I exploit rainfall variation to estimate the impact of drought on grain market performance between 1997 and 2006. Time series tests suggest that grain markets in Niger respond to supply shocks and that markets are more integrated during drought years. Exploiting the exogeneity of extreme rainfall in a difference-in-differences framework supports these findings: drought reduces grain price dispersion across markets. This impact is stronger as a higher percentage of markets are affected by drought, as was the case in 2004/2005, the year of a severe food crisis. The results suggest that early warning systems in West Africa should focus on the spatial impact of drought at the sub-regional level, as well as monitor prices in key forecasting markets during the harvest period.
Topic:
Agriculture, International Political Economy, and Markets
Political Geography:
Africa and Nigeria

245. Ethnic Coalitions of Convenience and Commitment: Political Parties and Party Systems in Kenya

Author:
Sebastian Elischer
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper analyzes the role of ethnicity in shaping the character of Kenya's political parties and its party system since 1992. Drawing on a constructivist conception of ethnicity, it uses a framework of comparison derived from Donald Horowitz and distinguishes between three party types: the mono-ethnic party, the multi-ethnic alliance type and the multi-ethnic integrative type. It shows that although Kenyan parties have increasingly incorporated diverse communities, they have consistently failed to bridge the country's dominant ethnic cleavages. Consequently, all of Kenya's significant parties represent ethnic coalitions of convenience and commitment and, thus, ethnic parties. The paper further states that the country's post-2007 political environment is a by-product of the omnipresence of this party type.
Topic:
Democratization, Ethnic Conflict, and International Political Economy
Political Geography:
Kenya and Africa

246. Reform of Quota and Voting Shares in the International Monetary Fund: "Nothing" Is Temporarily Preferable to an Inadequate "Something"

Author:
Ralph C. Bryant
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
A prosperous, stable world economy is in the self interest of every nation—large or small, rich or poor. The International Monetary Fund (IMF) is a worldwide intergovernmental institution that can facilitate that prosperity and stability. Because every nation has a stake, each should participate in the IMF's governance and operations. The value to each nation of an effective IMF increases as the world economy and financial system become more integrated.
Topic:
Development, Economics, International Organization, and International Political Economy

247. Measuring the Competitive Threat from China

Author:
Rhys Jenkins
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In recent years there has been a growing literature that analyses the threat which Chinese exports pose to the exports of other developing countries. The paper provides a critique of the standard measures of export similarity which have been used to estimate the threat from China in these studies. Two alternative indices, the static and the dynamic index of competitive threat, are developed and estimated for 18 developing countries and compared with estimates for the standard measures. It is shown that the latter tend to underestimate the extent to which countries are threatened by China. They also distort both the rankings of countries according to the extent to which they face competition from China and the direction of change in the competitive threat over time.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
China and Asia

248. State Fragility: Concept and Measurement

Author:
Mark McGillivray and Mina Baliamoune-Lutz
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The international donor community has grave concerns about the prospects for poverty reduction in what it terms fragile states. A state is classified as fragile if its country policy and institutional assessment (CPIA) score falls below a particular threshold. Recognizing that all states are fragile to varying degrees, this paper questions the method used by the international community to deem a country fragile. This paper develops a framework that uses fuzzy-set theory to deem a country as fragile. Fuzzy sets allow for gradual transition from one state to another while also allowing one to incorporate rules and goals, and hence are more appropriate for measuring outcomes that are ambiguous. Such ambiguity is an inherent characteristic of cross-country fragility classifications. The paper applies its framework to 76 low-income countries, for which the CPIA data are publicly available. The fragile state group that this framework provides is compared to that which the international donor community has constructed.
Topic:
Development and International Political Economy

249. How Long Can the Unsustainable U.S. Current Account Deficit Be Sustained?

Author:
Steven B. Kamin, Carol C. Bertaut, and Charles P. Thomas
Publication Date:
07-2008
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper addresses three questions about the prospects for the U.S. current account deficit. Is it sustainable in the long term? If not, how long will it take for measures of external debt and debt service to reach levels that could prompt some pullback by global investors? And if and when such levels are breached, how readily would asset prices respond and the current account start to narrow?
Topic:
Economics, Foreign Exchange, Government, International Political Economy, and Political Economy
Political Geography:
United States

250. Policy Liberalization and FDI Growth, 1982 to 2006

Author:
Matthew Adler and Gary Clyde Hufbauer
Publication Date:
08-2008
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Over the last three decades the global economy has expanded in a remarkable fashion. While nominal world GDP has increased four times, world bilateral trade flows have grown more than six-fold, and the stock of foreign direct investment (FDI) has grown by roughly 20 times since 1980. The sources of global trade and investment growth are well known—general economic expansion, policy liberalization, and better communications and technology—but the impact of each source is unclear. In this paper we attempt to uncover the contribution of policy liberalization to the rising ratios of US inward and outward FDI stocks to GDP over the last three decades.
Topic:
Economics, Globalization, International Political Economy, International Trade and Finance, Markets, and Political Economy
Political Geography:
United States