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  • Author: Glenn W. Harrison, Thomas F. Rutherfod
  • Publication Date: 05-1997
  • Content Type: Working Paper
  • Institution: The North-South Center, University of Miami
  • Abstract: This paper examines the net economic benefits and government revenue implications for Chile of forming a free trade area with MERCOSUR as an associate member, forming a free trade area with NAFTA, and reducing its external tariff multilaterally and unilaterally. The research shows that NAFTA would benefit Chile, but Chile must obtain improved access in non-grain crops, one of its key export sectors, or NAFTA will result in losses for Chile. Chile will lose from the MERCOSUR agreement as presently constituted but can gain from participation in MERCOSUR by reducing its external tariff to between 6 percent and 8 percent. Such a lowering of the external tariff would lead to a reduction of costly, trade-diverting imports (on which Chile does not collect tariffs) from high-priced partner country suppliers. The paper indicates that Chile should continue to push for NAFTA membership, while moving toward broader multilateral trade liberalization. Additionally, collecting the value added tax at more uniform rates in Chile would reduce domestic distortions and enhance the effectiveness of trade policy reforms.
  • Topic: Economics, International Organization, International Trade and Finance
  • Author: Luigi Manzetti
  • Publication Date: 04-1997
  • Content Type: Working Paper
  • Institution: The North-South Center, University of Miami
  • Abstract: Some economists have argued that before governments privatize state-owned monopolies in public utilities, they should first try to promote competition. If this is not done, privatization does not produce gains in economic efficiency; instead, it fosters rent-seeking behavior by the new private ownership. Few empirical analyses of rent-seeking behavior for Latin America in post-privatization environments have been done — those that exist concentrate on economic issues and neglect important political motivations. The purpose of this paper is to fill that gap and address key issues of public policy by examining the cases of Chile and Argentina and providing a political explanation for why the Chilean and Argentine governments allowed rent-seeking behavior in important public utility markets. Based upon an analysis of these experiences, the paper then discusses the types of institutions most likely to avoid such negative consequences.
  • Topic: Economics, Government, Political Economy
  • Author: Carter Garber
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: The North-South Center, University of Miami
  • Abstract: In this paper, economist and development finance consultant Carter Garber examines the process of complementing donations and commercial bank credit with private investments as a source of capital for international microenterprise finance. First, he describes the large expectations for private capital in the rapid growth of microenterprise finance. Second, Garber discusses the varied sources of private capital, especially those involving socially responsible investment. The third and central section is an examination of eight “socially responsible investment” mechanisms that currently channel $27 million of U.S. private credit to microfinance lending institutions. Garber demonstrates the variety of available mechanisms and examines their track record to date. The final section identifies policy changes that will be necessary for these types of private investment in microenterprise to grow fast enough to meet the expected demand during the coming decade.
  • Topic: Economics, International Trade and Finance
  • Publication Date: 12-1997
  • Content Type: Working Paper
  • Institution: U.S. Government
  • Abstract: In fall 1996, the National Intelligence Council (NIC) and the Institute for National Strategic Studies (INSS) held a series of conferences at National Defense University to identify key global trends and their impact on major regions and countries of the globe. The exercise was designed to help describe and assess major features of the political world as they will appear in the year 2010.
  • Topic: International Relations
  • Political Geography: Africa, United States, Europe, Middle East, Asia, South America
  • Author: Robert Chamberlain, Alexandra Cousteau, Nathan Ruff
  • Publication Date: 04-1997
  • Content Type: Working Paper
  • Institution: The Woodrow Wilson International Center for Scholars
  • Abstract: With the end of the Cold War, the United States military and intelligence communities have been searching for new enemies and new roles. The demise of the Soviet Union presented an opportunity to revisit traditional conceptions of security and consider new missions such as heightened counter-terrorist activities and protection of US firms against economic espionage. In this project, special attention has been given to the importance of environmental change. The exploration of linkages between environmental change and security has developed into a complex debate focused on two fundamental and interrelated questions: Is environmental change a "traditional" security threat? In any case, what role is best played by the military and intelligence communities?
  • Topic: Security, Environment
  • Political Geography: United States
  • Author: Richard N. Cooper
  • Publication Date: 12-1997
  • Content Type: Working Paper
  • Institution: Weatherhead Center for International Affairs, Harvard University
  • Abstract: International treaties in pursuit of common endeavors can be classified into two categories: those that set mutually agreed national objectives and leave each signatory to pursue them in their own way; and those that define mutually agreed actions. The proposed treaty on global climate change falls into the first category with respect to greenhouse gas emissions by the rich countries. Stabilization of atmospheric concentration of greenhouse gases requires eventual engagement of developing countries. The proposed treaty, based on historical emission levels, does not provide a foundation acceptable to them. Indeed, there is unlikely to be any generally acceptable principle for allocating emission rights, potentially worth trillions of dollars, among rich and poor countries. This probable impossibility suggests a successful attack on greenhouse gas emissions, necessarily international in scope, must be through mutually agreed actions, such as a nationally-collected emissions tax, rather than through national emission targets.
  • Topic: Environment, International Cooperation
  • Author: Richard. Tucker, Nathaniel. Beck
  • Publication Date: 11-1997
  • Content Type: Working Paper
  • Institution: Weatherhead Center for International Affairs, Harvard University
  • Abstract: Scholars in international relations (IR) are increasingly using time-series cross-section data to analyze models with a binary dependent variable (BTSCS models). IR scholars generally employ a simple logit/probit to analyze such data. This procedure is inappropriate if the data exhibit temporal or spatial dependence. First, we discuss two estimation methods for modelling temporal dependence in BTSCS data: one promising based on exact modelling of the underlying temporal process which determines the latent, continuous, dependent variable; The second, and easier to implement, depends on the formal equivalence of BTSCS and discrete duration data. Because the logit estimates a discrete hazard in a duration context, this method adds a smoothed time term to the logit estimation. Second, we discuss spatial or cross-sectional issues, including robust standard errors and the modelling of effects. While it is not possible to use fixed effects in binary dependent variable panel models, such a strategy is feasible for IR BTSCS models. While not providing a model of spatial dependence, Huber's robust standard errors may well provide more accurate indications of parameter variability if the unit observations are intra-related. We apply these recommended techniques to reanalyses of the relationship between (1) democracy, interdependence and peace (Oneal, Oneal, Maoz and Russett); and (2) security and the termination of interstate rivalry (Bennett). The techniques appear to perform well statistically. Substantively, while democratic dyads do appear to be more peaceful, trade relations, as measured by Oneal, et al., do not decrease the likelihood of particpation in militarized disputes, Bennett's principal finding regarding security and rivalry termination is confirmed; his finding on common external threats, however, is not; his results on the influence of issue salience are even more robust.
  • Topic: Conflict Resolution, International Relations
  • Author: John W. Schiemann, Kenneth Benoit
  • Publication Date: 05-1997
  • Content Type: Working Paper
  • Institution: Weatherhead Center for International Affairs, Harvard University
  • Abstract: Theories which explain the origins of institutions as the product of struggles for distributive advantage provide only a general framework with no conceptualization of the bargaining process and few applications to empirical cases. We address both problems and extend the distributive theory of institutional origins by drawing on a unique set of data to examine the creation of the Hungarian electoral law of 1989. Arguing that outcomes are shaped by four mechanisms arising from bargaining - time preferences, the credibility of threats and promises, mimicked fairness, and symmetrical division - we develop observable implications of these mechanisms and test them empirically by analyzing the bargaining which produced the multiple rules of Hungary's complex electoral system. Not only does the Hungarian case confirm the bargaining mechanism theory of institutional origins, but the theory also explains many curious features of the Hungarian electoral institutions, including its surprising combination of extraordinary complexity and unusual stability.
  • Topic: Democratization, Government
  • Political Geography: Eastern Europe
  • Author: David E. Johnson
  • Publication Date: 07-1997
  • Content Type: Working Paper
  • Institution: Institute for National Strategic Studies
  • Abstract: On November 30, 1995, Secretary of Defense William J. Perry testified before the House International Relations and National Security committees on the commitment of U.S. ground forces to the Former Yugoslavia. The commitment, crafted in Dayton, Ohio, had been avoided for some 4 years. Perry carefully discussed the mission, rules of engagement, and exit strategy for U.S. forces.
  • Topic: Security, Defense Policy, Government, International Law
  • Political Geography: United States, Yugoslavia
  • Author: Simon V. Mayall
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Institute for National Strategic Studies
  • Abstract: At the end of the Cold War every country was forced to reexamine the fundamental assumptions that had formed their security policies for the last 45 years. Among the "victors" of the Cold War, few countries were faced with a more disparate set of new circumstances than Turkey. Unlike the United States and Western Europe, "victory" for Turkey had a very ambivalent quality. Almost overnight Turkey moved from being the buttressing flank of one strategic region, to the epicenter of a new one.
  • Topic: Security, Defense Policy, Cold War, International Law, Nuclear Weapons, Religion
  • Political Geography: United States, Turkey