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54751. A Resurgent MERCOSUR: Confronting Economic Crises and Negotiating Trade Agreements

Author:
Thomas Andrew O'Keefe
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
Almost from the day it was launched on March 26, 1991, skeptics have predicted the imminent collapse of the Common Market of the South (Mercado Común del Sur — MERCOSUR), while some economists have fretted about the project's supposed protectionist designs to create a trade fortress. The most memorable example of the latter was a 1996 report written by a World Bank economist that relied on out-of-date trade statistics and attributed to MERCOSUR policies that were actually pre-existing national automotive regimes. More recent tirades have tried to blame Argentina's economic meltdown on its MERCOSUR membership. A well-known economist from a New York City investment bank has even gone as far as to proclaim MERCOSUR dead. Given all the invective directed against efforts to integrate South America's Southern Cone economically over the past decade, it is not surprising that MERCOSUR is misunderstood by many in North America.
Topic:
Economics, International Trade and Finance, and Treaties and Agreements
Political Geography:
South America, Latin America, and North America

54752. The Changing Landscape of Financial Services in Latin America's Large Emerging Markets

Author:
Jerry Haar
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
The Latin American financial services sector has been profoundly affected by the sweeping economic, legal, and regulatory reforms of the 1990s. Conversely, the sector has extensively impacted the economic liberalization process that has been the hallmark of Latin American development from the late 1980s through the present. This paper highlights trends in the financial services sector; discusses the key drivers of change, both globally and regionally; illustrates how three of those drivers — mergers and acquisitions (M), technology, and customer demand — are revolutionizing this sector; and reviews the organizational and strategic responses by financial firms to an increasingly competitive environment.
Topic:
Economics, Emerging Markets, and Globalization
Political Geography:
Latin America

54753. Was Failure Avoidable? Learning From Colombia's 1998-2002 Peace Process

Author:
Adam Isacson
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
Colombians had never seen President Andrés Pastrana as angry or as dejected as he appeared on television the night of Wednesday, February 20, 2002. His effort to end nearly 40 years of violence — a conflict with leftist guerrillas and paramilitary vigilantes that claimed over 3,500 lives in 2001 — had just received a fatal blow. More than three years of frustrating negotiations had come to nothing.
Topic:
Conflict Resolution and Terrorism
Political Geography:
Colombia

54754. The United States and Colombia: The Journey from Ambiguity to Strategic Clarity

Author:
Gabriel Marcella
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
President Bush's sweeping support for Colombia underlines a remarkable turnaround in U.S. policy. Driven for years by the ambiguity of a counternarcotics-only approach, the United States has now adopted a more comprehensive recognition of Colombia's deeply rooted and complex security problem. Indeed, Colombia is a revealing paradigm for twenty-first century conflict. It is a surprisingly weak state under assault by a powerful combination of ungoverned national territory, insurgent terrorism of the left and right, international crime organized around drug trafficking, a deeply rooted counterculture of violence and impunity, ecological damage, and institutional corruption. Unlike the Cold War military and ideological confrontation between two superpowers, a country's debilities, rather than its strengths, breed the viruses that threaten the international community and the United State.
Topic:
Foreign Policy
Political Geography:
United States and Colombia

54755. A Review of European Perceptions of Cuba

Author:
Joaquín Roy
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
The commemoration of the 100th anniversary of the birth of the Cuban Republic on May 20, 2002, provided an opportunity to review not only the survival of the Cuban regime, but also the whole history of the Cuban nation. 2 This event coincided with the historic visit of former President Jimmy Carter to Havana 3 and the reiteration of the unwillingness of the United States to terminate its embargo of Cuba, as expressed by President George W. Bush in an unprecedented speech in Washington and on a trip to Miami. 4 At the same time, friction has increased between Cuba and some influential Latin American countries, as in the special case of Mexico. The tension generated in the aftermath of the vote taken by the United Nations Commission for Human Rights in Geneva in April 2002, which criticized Cuba's human rights practices, revealed a definite crack in the comfortable linkage previously enjoyed by Castro with most countries of the hemisphere (with the notable exception of the United States). On October 23, 2002, when the European Parliament (EP) approved the award of the Sakharov Prize to Cuban dissident Oswaldo Payá for his record in the defense of human rights and especially for his leadership in the “Varela Project,” the overall panorama of the relations of the European Union (EU) with Cuba acquired a new look, signifying the confirmation of a long pattern of the EU's perceptions of and policy toward Cuba. 5 Cuba's decision to allow Payá to travel to Strasbourg to receive the award was taken simultaneously with the EU's announcement of the opening of a delegation in Cuba, while Castro surprisingly declared that Cuba would reapply to become a member of the Africa, Caribbean, Pacific (ACP) Cotonou Convention. It is time, therefore, for a historical review and a consideration of the most salient aspects of European-Cuban relations and some of the pending issues.
Topic:
International Relations
Political Geography:
Europe, Cuba, and Caribbean

54756. Europe: Neither Plan Colombia, nor Peace Process - From Good Intentions to High Frustration

Author:
Joaquin Roy
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
With the public announcement of a reshaped Plan Colombia in mid-2000, European attitudes toward involvement in attempting to solve the crisis of Colombia's endemic violence has oscillated from alarm to hope and, finally, to frustration. The overall scene has been dominated by a sense of powerlessness, mixed with realism and internal contradictions between member states and institutions of the European Union (EU).
Topic:
International Relations and Government
Political Geography:
Europe and Colombia

54757. A Global Race for Free Trade Agreements

Author:
Arne Melchior
Publication Date:
11-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The article examines the currently expanding worldwide network of bilateral free trade agreements. Following regional integration in Europe and later the Americas, the process if East Asia has accelerated from 2002. A Distinctive feature of the current stage in the expansion of FTAs beyond geographical regions and into global space, hence challenging WTOs supremacy on inter-continental trade rules. Setbacks in the WTO Doha Round may stimulate a further move towards «global bilateralism». The more such agreements in place, the greater is the incentive for new ones. Even if political obstacles hinder some agreements, the process is currently accelerating. While it is rational for countries to pursue such agreements, they should in parallel work for multilateral trade liberalisation in order to reduce the discriminatory impact of FTAs. This is needed if we are to avoid that «Most Favoured Nation» treatment under the WTO actually becomes «Least Favoured Nation» treatment: Rules that only apply to countries that are left outside the «free trade race».
Topic:
Economics, Globalization, International Trade and Finance, and Politics
Political Geography:
America, Europe, and East Asia

54758. Corruption and fast change: Shifting modes of micro-coordination

Author:
Jens Chr.1 Andvig
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper studies the effects on corruption of having coexisting, contradictory norms for allocating different micro-coordination modes across society. One important reason for their coexistence is fast change, and links to Huntington's classical analysis of corruption are worked out. The notion of micro-coordination most is exposed and its usefulness for explaining corruption is argues through examples. The examples outlined are corruption in land allocation in Kenya, the economic transition in post-communist countries and the global telecommunications industry.
Topic:
Economics and Industrial Policy
Political Geography:
Kenya and Africa

54759. The Rhetoric of Hegemony

Author:
Daniel Heradstveit and David C. Pugh
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper looks at the rhetorical extension of the word “terrorism” to cover what used to be called guerrilla war, separatism, civil war, armed resistance and all other forms of political violence, down to and including non-lethal sabotage and vandalism. It begins by reflecting on how political power must be buttressed by legitimacy, which in turn involves the de-legitimisation of challengers. This is often achieved by assimilating political dissent to the “criminality” that by definition governments are created to combat. When governments use the term “order” to mean their own convenience, and the converse, this can effectively evoke the individual citizen's fear of personally suffering violence, even when he is in fact more at risk from the government itself than from its critics. In much the same way, “terror” no longer means government violence against citizens (as in the 19th century), nor solely violence against civilians by dissident groups; it has recently mutated to mean any armed resistance to the party deploying the rhetoric, even in conventional military forms. The terrorist label is the ultimate delegitimising technique, which may be employed to mobilise metropolitan populations to support a globally-coordinated suppression of resistance to the new world order.
Topic:
Crime, Human Welfare, Politics, and Terrorism

54760. A Polanyi Perspective on Post-Communist Corrruption

Author:
Jens Chr.1 Andvig
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper seeks to explain the present high levels of corruption in the post-communist countries, i.e. the centrally planned economies where the communist party lost power as the outcome of a specific historical process where both the character of the former economic system as well as that policy shock itself played key roles. Among the possible explanatory factors the study focuses on the effects of production decline and the 'monetarisation' of the economy which started before the policy shock.
Topic:
Development, Economics, and Government

54761. The Intangible Globalization: Explaining the Patterns of International Trade in Services

Author:
Leo A. Grünfeld and Andreas Moxnes
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
We identify the determinants of service trade and foreign affiliate sales in a gravity model, using recently collected bilateral data for the OECD countries and their trading partners, as well as new indicators for barriers to service imports and foreign affiliate sales. We emphasize the strong links between service FDI and trade, since a large proportion of trade is facilitated through foreign affiliate sales. Trade barriers and corruption in the importing country have a strong negative impact on service trade and foreign affiliate sales. We find a strong home market effect in service trade, and rich countries do not tend to import more, which may indicate that rich countries have a competitive advantage in service trade. Free trade agreements do not contribute to increased service trade. A full liberalization of international trade in services in our model, lifts exports by as much as 50% for some countries, and no less than 30%.
Topic:
Economics, Globalization, and Science and Technology

54762. Study of selected Fredskorpset exchange projects

Author:
Axel Borchgrevink
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The present study examines nine Fredskorpset exchange projects, in order to assess the degree to which the goals specified have been reached. The basis for the exchanges is the partnerships established between institutions in Norway and counterpart entities in the South. The projects studied encompass a wide variety of such partnerships, illustrating the flexible and innovative attitude that Fredskorpset has shown during its first two years of operation. By basing its work on such partnerships, Fredskorpset has avoided some of the weaknesses of traditional volunteer programs. In terms of achievements, there are variations among the projects. While individual learning of participants was strong in all cases, the degree to which institutional benefits were achieved varied. Well-matched partners with sufficiently strong institutional structures; thorough planning of exchanges; and participants selected in accordance with well-defined needs for professional skills were seen to be important factors for successful projects.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Europe and Norway

54763. How the Axis of Evil Metaphor Changes Iranian Images of the USA

Author:
Daniel Heradstveit and G. Matthew Bonham
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The respondents feared an American attack, and regarded their membership in «the Axis of Evil» as a stab in the back after Iranian help in Afghanistan. This demonisation was seen overwhelmingly in terms of American geopolitical designs, ignorance and downright irrationality – an expansionist superpower that is dangerously out of control. The WTC attack initially caused a strengthening of Iranian national unity and a more coherent foreign policy, but most of the respondents regard «the Axis of Evil» as killing the nascent dialogue with the USA stone dead and coming as a godsend to the conservatives and the ultras.
Topic:
International Relations and Foreign Policy
Political Geography:
Afghanistan, United States, America, Iran, and Middle East

54764. Evaluation of Fadcanic's teacher training program in Nicaragua's Southern autonomous region of the Atlantic Coast

Author:
Axel Borchgrevink and Anníbal Ramírez Rodrígues
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
Since 1997, FADCANIC has been implementing a training program for unqualified teachers working in primary schools of Nicaragua's Southern autonomous region of the Atlantic Coast. SAIH, the Norwegian NGO that has been funding this program, has commissioned the present evaluation. It concludes that the program has had a significant impact in terms of improving education in the region through addressing one of the most urgent needs of the educational sector, namely teacher qualifications. However, the evaluation also points out a number of other limitations for the sector, including lack of resources for materials, physical infrastructure and reasonable teacher salaries, as well as general social problems of the region. It recommends that the program is continued, and that even greater emphasis is put upon creating a teacher education appropriate to the multilingual and -cultural reality.
Topic:
Development, Education, and International Trade and Finance
Political Geography:
Norway, Central America, and Nicaragua

54765. Defusing a Ticking Bomb? Disentangling International Organisations

Author:
Indra Øverland
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This article examines how various organisations divide and coordinate their conflict prevention and development aid in the Samtskhe-Javakheti region of southern Georgia, and how that coordination might be improved. There have been numerous early warnings of impending violent conflict and calls for conflict prevention in Samtskhe-Javakheti. Counter-claims have, however, been asserted that the region's problem is in fact not one of potential violent ethnic conflict, but rather one of poverty and peripherality, and that exaggerated, uncoordinated early warning might in fact inflate conflicts that were not initially acute. At one point it seemed that the Samtskhe-Javakheti case would provide an example of uncoordinated and one-sided focus on conflict prevention and early warning on the part of international organisations, and its potentially detrimental consequences. An overview of the activities of the organisations, however, shows the contrary. A critical, sensitive and deconstructive perspective is already incorporated into their approach, and their activities are well coordinated. More formalised institutions are nonetheless needed to ensure the inclusion of large multilateral actors such as the World Bank and Council of Europe in the process, and consistent coordination in other regions too.
Topic:
Conflict Prevention, Development, and International Organization
Political Geography:
Europe, Eastern Europe, and Georgia

54766. A Gap in OSCE Conflict Prevention

Author:
Indra Øverland
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper argues that local media have been of great importance in the escalation of inter-ethnic conflicts in the former Soviet Union, and that conflict prevention by the OSCE in the region initially did not focus appropriately on media issues. During the past few years, however, media issues have increasingly come to preoccupy the OSCE, chiefly in connection with human rights issues and freedom of speech, but to some extent also as an element of conflict prevention. The importance of local media for OSCE conflict prevention is analysed in terms of the activities of the High Commissioner for National Minorities and Representative on Freedom of the Media, and OSCE annual reports.
Topic:
Conflict Prevention, Ethnic Conflict, and Human Rights
Political Geography:
Russia and Soviet Union

54767. From the pre-G8 2003 Summit seminar in Stockholm on "Strengthening Cooperative Threat Reduction in the Northern Region"

Author:
Ian Anthony and Morten Bremer Maerli
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In June 2002, the G8 countries pledged 20 billion dollars over ten years to their “Global Partnership against the Spread of Weapons and Materials of Mass Destruction” (Global Partnership). Under this initiative, the G8 countries will support specific cooperation projects, initially in Russia, to address non-proliferation, disarmament, counter-terrorism and nuclear safety issues. Among priority concerns are the dismantlement of decommissioned nuclear submarines and the disposition of fissile materials.
Topic:
Conflict Prevention, International Cooperation, Peace Studies, and Terrorism
Political Geography:
Russia

54768. NATO Nuclear Non-Proliferation Policies in a Changing Threat Environment

Author:
Morten Bremer Maerli (ed) and Allistair Millar(ed)
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This report summarises the conference “NATO Nuclear Non-Proliferation Policies in a Changing Threat Environment” convened in , Oslo, 12 May 2003. The conference was co-organised by the Fourth Freedom Forum, the Norwegian Atlantic Committee, and the Norwegian Institute of International Affairs. It was co-sponsored by the Norwegian Ministry of Foreign Affairs, the Norwegian Ministry of Defence and the Ploughshares Foundation.
Topic:
NATO, Arms Control and Proliferation, Nuclear Weapons, and Peace Studies
Political Geography:
Norway and Oslo

54769. Nuclear Dimensions of the Iraqi Crisis

Author:
Morten Bremer Maerli
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In accordance with Resolution 1441, unanimously passed by the UN Security Council, Iraq on November 7th, 2002, submitted a declaration of its activities concerning weapons of mass destruction (WMD). Copies of the declaration were forwarded to the International Atomic Energy Agency (IAEA) and later to the permanent members of the Security Council. The declaration described the various methods used by Iraq in trying to produce nuclear material suitable for weapons, as well as the many sites involved in the nuclear program. In the nearly 12,000-page document Iraq claimed that it had no current WMD programs. However, intelligence analysts from the United States and other nations immediately began to scrutinize the document, and senior US officials quickly rejected the claims made by Iraq.
Topic:
Security, Nuclear Weapons, and United Nations
Political Geography:
United States, Iraq, and Middle East

54770. Industrial heterogeneity of the ICT industry—An exploratory survey on Norwegian firms

Author:
Arne Melchior
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper presents evidence from a limited survey undertaken among Norwegian ICT firms in 2001, supplemented with other statistical evidence. Corresponding to the limited production of ICT hardware in Norway, the hardware firms covered by the survey were dominated by sales outlets of foreign firms. While these firms are on average small and with a modest skill requirement, some of them are larger and more skill-intensive due to the provision of related software and services. Within-firm learning, higher education as well as sector- and industry-wide knowledge externalities generally matter to IT firms. Education is ranked third, and is more important for software and services than for hardware. Knowledge externalities are less important for foreign-owned firms. 2/3 of the firms surveyed produce various combinations of hardware, software and services, with software+services as the most frequent combination, composed by firms that are on average clearly larger than the sample average. Such firms rely more on learning within the firms and less on sectorwide knowledge externalities than other IT firms. Adaptation of products to individual customers is important for many IT goods, and implies that e.g. imported software frequently generates substantial domestic employment in related services. The survey tentatively suggests that such complementarities in production may be an important aspect of IT production. Norwegian IT exports are generally small, but pure software producers in the sample had larger exports.
Topic:
Economics, Education, Industrial Policy, and International Trade and Finance
Political Geography:
Norway

54771. Transition from socialism—the corruption heritage

Author:
Jens Chr.1 Andvig
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper explores the apparently high incidence of corruption in those former socialist countries where the Communist Party lost power. It argues that part of the explanation of the high corruption incidence is to be sought in the simultaneous production decline which gives rise to a Schumpeter effect, where former bureaucrats are becoming corruption entrepreneurs. Another important factor is the swift change in the ruling norms giving rise to a Huntington effect an overshooting of the applicability of the market mechanism. An important driver of both effects is the monetation of the centralised multi-tiered bartering system of the old socialist economies. That process is briefly compared to older forms of market expansion into decentralised non-market agricultural economies as analysed by Polanyi and Marx.
Topic:
Economics, Government, and Industrial Policy

54772. Remarks on Private-to-private corruption

Author:
Jens Chr.1 Andvig
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The OECD's Anti-Bribery Convention may be regarded as the strongest international expression of the recent recognition of corruption as a major global issue. The convention aims to contain trans-border corruption by making it illegal for citizens and enterprises located in the countries that have signed the convention to get involved in corrupt transactions with officials abroad. Working out the convention the legal regulation of transborder corruption has become harmonised across countries. Given the initial success, the question has been raised whether the convention should be extended or modified in some way. New policy instruments have been proposed; greater precision in how to deal with middlemen has been urged.
Topic:
Economics, Government, Industrial Policy, and International Trade and Finance

54773. Sunk costs in the exporting activity: Implications for international trade and specialisation

Author:
Arne Melchior
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
International trade costs may be sunk and not proportional to sales. The paper explores this theoretically, by allowing firms to invest in sales channels or marketing in order to increase demand in each market. The returns to such investments will, ceteris paribus, be higher in markets with lower variable trade costs (e.g. transport costs). Firms will therefore invest and sell more at home than in foreign markets, and more in foreign markets with low variable trade costs. Sunk export costs will therefore amplify the trade-reducing impact of other trade barriers, and dampen the «home market effect» whereby large countries tend to be net exporters of differentiated goods.
Topic:
Economics, Emerging Markets, Industrial Policy, and International Trade and Finance

54774. Peer review: a tool for co-operation and change

Publication Date:
12-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Democratic governments want policies that are in the best interest of their citizens. But how can they - and their voters - be sure they are making the right choices? One answer is by learning from the tried and tested experience of others. One of the OECD's core strengths is its ability to offer its 30 members a framework to examine and compare experiences and discuss "best practices" in a host of areas from economic policy to environmental protection or strategies to create jobs.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

54775. Economic Survey of New Zealand, 2003

Publication Date:
12-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Past macroeconomic and structural reforms have been contributing to stronger growth for the last decade. The economy has also become more resilient, weathering the recent global slowdown well. Productivity growth has picked up, although not by enough to have yet moved New Zealand up the OECD income rankings. Its small size and remoteness may be factors, so encouraging global linkages is important, but more remains to be done to strengthen fundamentals. Recent economic performance has been encouraging: buoyant domestic demand has helped maintain output growth in spite of weak trading partner growth, an appreciating exchange rate and a fall in the terms of trade from recent high levels. Monetary policy will need to be vigilant, given that the economy is probably operating above potential and the housing market is strong. In considering fiscal policy options, the focus should be on those that contribute to the growth performance of the economy, whilst remaining firmly based on a prudent assessment of future revenues and of the long-term challenges connected to ageing. In its growth strategy the government appropriately emphasises fostering innovation, skills and talent, and developing global linkages, but it should maintain a level playing field and avoid sector-specific incentives. It should continue to remove regulatory obstacles to investment, particularly in the area of infrastructure, by improving and speeding up the environmental consent process. The decision to resume cutting tariffs is commendable and also furthers the objective of supporting development in poorer countries. Immigration helps to enlarge the pool of available skills and to develop global connections, both of which contribute to enhancing growth potential. Recent changes that focus admis- sions policy more toward skilled and more employ- able immigrants will help, though the temptation to link immigration policy too closely to manpower plan- ning should be resisted. The labour market functions reasonably well, but the government should avoid measures that would reduce flexibility and raise labour costs. The employment rates of marginal groups could be improved by strengthening incentives to move from welfare to work. In short, only through this whole range of efforts to boost productivity growth and improve labour market outcomes can the nation meet its income aspirations.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
New Zealand

54776. Economic Survey of Japan, 2003

Publication Date:
12-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The current economic upturn does not diminish the urgency of continuing with fundamental reforms to lay the foundation for a robust and sustainable expansion strong enough to reverse the downward trend in Japanese living standards relative to other OECD countries and to restore price stability after nearly eight years of deflation. Given the negative implications of falling prices, the Bank of Japan should strengthen its quantitative easing policy by further expanding the range of assets it purchases. In addition, the effectiveness of monetary policy depends critically on resolving the problems in the banking and corporate sectors. The authorities should follow through on the objective of substantially reducing non-performing loans and revitalising the corporate sector, while ensuring that banks are adequately capitalised, using public money if necessary. Moreover, it is important to scale back the role of government financial institutions. Given the likely negative impact of accelerated bank and corporate-sector restructuring on activity and the need to ensure that the recovery is not ended prematurely, excessive fiscal policy tightening should be avoided, while any increase in revenue due to buoyant activity should be used to reduce the deficit. Achieving the moderate fiscal consolidation projected for 2004 is a key to building confidence in the longer-term sustainability of public finances, which also requires a credible consolidation plan for 2005 and the years beyond, including measures to limit spending and boost tax revenues. Moreover, it is essential to prevent increases in spending as a share of GDP, an objective that requires reform of pension and health care pro- grammes in the face of rapid population ageing. Given the constraints on macroeconomic policy, a successful programme to revitalise the economy will require a broad programme of structural reform, focused on strengthening competition to boost consumer welfare and improve the allocation of resources. To achieve such an outcome, competition policy should be improved by making the Fair Trade Commission stronger and more effective and by creating a framework conducive to competition in network industries that have been liberalised, such as telecommunications and energy. Expanded international trade, greater inflows of direct investment and removal of outdated regulations - accelerated through the recently created special zones - also have important roles to play in boosting competition. In sum, a broad-ranging programme of carefully designed macroeconomic policies and far-reaching structural reforms to enhance Japan's growth potential is needed.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Japan

54777. Fighting Bribery in International Business Deals

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Bribing public officials to obtain international business raises serious moral and political concerns, undermines good governance and economic development, and distorts international competitive conditions.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

54778. Integrating Information and Communication Technologies in Development Programmes

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Information and communication technologies (ICTs) can play a key role in development and poverty reduction. ICTs can help promote economic growth, expand economic and social opportunity, make institutions and markets more efficient and responsive, and make it easier for the poor to obtain access to resources and services. It can also make it easier to make the voices of the poor heard in the decisions that shape their lives.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

54779. Economic Survey of Chile, 2003

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
A stable institutional framework in Chile has provided the foundations for growth and confidence of international markets. While a comprehensive social agenda is putting pressure on resources under the recent economic slow-down, the Chilean government should be praised for having maintained a sound fiscal and monetary stance and building on its unique institutional framework based on the freedom of choice. The current challenges are to strengthen the coherence of this development policy agenda with a vision to long-term growth and broader social consensus. Chile is a small open economy, for which international competitiveness is the cornerstone for sustainable growth. The latter is the outcome of the multiple policy synergies discussed above. The first important link is to continue preserving a sound macroeconomic framework avoiding distortions that may produce excessive real exchange rate appreciation, which could hinder the incentives to invest and expand employment in the tradable sector. The deepening of financial intermediation and development of risk capital are needed to support the emergence of new and more innovative firms. A better functioning of the labour market is critical to the development of the enterprise sector. In particular increased female labour participation would support the development of light industries and services. Investment in human capital, in particular education and workers' training, is needed to develop products with a higher technological content. The administrative conditions and regulation of product markets should also be improved, notably by reducing administrative barriers to enterprise creation and removing distortions in the tax treatment of cross-border interenterprise financial flows. These policy link-ages would help increase product variety and intra-industry trade that could contribute to reduce the vulnerabilities associated with an excessive reliance on natural resources and export concentration. In all these areas of reform, Chile is now in a position to emulate and converge towards the more advanced benchmark of OECD countries.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Chile

54780. Policy coherence: Vital for global development

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Trade and investment, coupled with transfers of knowledge and technology and an appropriate institutional framework, have been major engines of global economic growth in developed and developing countries over the past 50 years. From the mid-1980s, the pace of global economic integration and growth accelerated significantly. Sustaining global economic growth and achieving a better sharing of its benefits will further the interests of all countries, developing and developed alike. Recognising this, the international community has committed itself to specific Millennium Development Goals and to ways of achieving them.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

54781. Economic Survey of Mexico, 2003

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Fiscal rectitude, progress towards macroeconomic stabilisation, and past structural reforms have been necessary and desirable, but have not yet been sufficient to raise potential growth to rates that would allow closing the gap in living standards with other OECD countries. Prolonged cyclical weakness, with no unambiguous signs yet of a vigorous upturn, has depressed private investment, which is also hampered by legal and regulatory obstacles in key sectors, electricity in particular. Mexico's catching-up is further hindered by low human capital accumulation. The administration has insufficiently solid and stable revenue to finance necessary social spending and public infrastructure investment on the required scale. Policies should therefore give priority to broadening the tax base and creating conditions - economic, financial and legal - in which a competitive private sector has the ability and incentives to invest more. It is also important to spend more productively in areas such as education; efforts there should concentrate on making the existing school system, and the teaching body, more effective, and on allocating more resources to the training of adults. Although the large informal sector provides a kind of safety valve for many of the low-skilled, the formal sector must become a more attractive place in the longer term in which to work and to employ. Emigration also provides a safety valve, and remittances lift many households out of acute poverty. A migration agreement between the United States and Mexico would bring benefits to both. Levels of water and air pollution are unacceptably high in Mexican urban areas, and though policies are addressing this, the (implicit or explicit) pricing of natural resources and of polluting activities is far from optimal. Overall, Mexico needs to move ahead with comprehensive structural reforms, including most immediately approval of the tax, electricity and labour reforms, so as to fully release the country's growth potential and provide resources to deal with important issues of human capital and poverty relief.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Mexico

54782. The Economic Consequences of Violent Conflict in West Africa

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Violent conflict undoubtedly affects West Africa's prospects for economic development and integration. However, the nature of these effects is still poorly understood. As part of the SWAC regional programme on conflict and stability, the SWAC Secretariat undertook a literature review and an electronic consultation of southern and northern agencies and specialists in summer 2003. This aimed to assess the economic consequences of violent conflict at multiple levels; identify operational lessons on how best to deal with these effects; and highlight key areas for further work where the SWAC can add value. The core findings of the review are presented in this note.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
West Africa

54783. Poverty and Health in Developing Countries: Key Actions

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Health is higher on the international agenda than ever before and improving the health of poor people is a central issue in development. Poor people suffer worse health and die younger. They have higher than average child and maternal mortality, higher levels of disease, and more limited access to healthcare and social protection. But health is also a crucially important economic asset, particularly for poor people. Their livelihoods depend on it. When poor people become ill or injured, their entire household can become trapped in a downward spiral of lost income and high healthcare costs.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

54784. Economic Survey of Austria, 2003

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
To raise Austria's growth potential, significant changes in the institutional set-up will be necessary in order to achieve sound public finances, higher labour force participation - in particular among older workers - and to open up the sheltered sectors of the economy to healthy competition. Although the government's emphasis on structural spending reductions to achieve eventual budget balance while also creating room for tax cuts is appropriate, earlier fiscal easing means that under current plans budget balance will be restored only after 2007. Such a deficit path is not appropriate given Austria's high debt-to-GDP ratio. Stronger spending restraint will be necessary in order to create room for the major tax reform that the authorities are committed to. Public expenditure reform is focused on reducing public sector employment, but the cost savings are eroded by the generous early retirement programmes used to achieve these employment reductions. Comprehensive public sector reform has to address the complicated -federal fiscal relationships and make sure that tasks are allocated to the most appropriate private or public agent. More cost-benefit analysis and output performance budgeting would help to improve the efficiency with which public resources are used. The pension reform undertaken by the government marks considerable progress in moving to sustainable old-age income replacement through measures designed to increase further the labour force participation rate of older workers and women and lengthen working lives considerably. Further necessary action includes measures to improve the employability of older workers, in particular the elimination of excessive seniority wage components, and a more stringent revision of the remaining age-specific employment protection regulation. The large differences in economic performance between manufacturing, which is fully exposed to international competition, and services points to considerable scope for increasing competition by reducing entry barriers and facilitating the operations of the newly established competition authority. Proceeding along these lines will help Austria to realise the positive potential associated with Eastern enlargement while at the same time becoming more resilient to adverse supply side shocks.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Austria

54785. OECD Health at a Glance - How France Compares

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
In many respects, France fares well among OECD countries in terms of indicators of the health status of its population and resources allocated to its health care system. The French population (and particularly French women) enjoys a relatively high life expectancy compared with the average across OECD countries. The French have a free choice of doctor, and can approach relatively easily both generalists and specialists. Also, the French health system has not generally experienced the problems of long waiting lists for certain treatments, as has been the case in several other OECD countries. The health care system in France is predominantly funded through public sources, but with services delivered by both the public and private sector. Universal access is provided to doctors and hospital services, with some co-payments for patients which vary depending on the type of services. Since the introduction of the Universal Health Coverage Law (Loi de la Couverture médicale universelle or CMU) in 2000, people with low income who are not covered by complementary insurance have access to doctors and hospitals free of charge. Overall, public satisfaction with the health care system in France has traditionally been much higher than in most other countries. However, health spending in France is relatively high in comparison with the OECD average.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
France

54786. Economic Survey of Luxembourg, 2003

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The prospects for lower growth in the medium-long term will require far-reaching fiscal and structural adjustment. The authorities have made a start in reducing public expenditure growth in line with these more subdued prospects but more restraint will be necessary to meet their medium-term objectives. Adjustments to the general public pension scheme, preferably by reducing the high replacement rates, will be needed to make the scheme sustainable in the long term. The authorities have begun to tackle the early retirement problem, which will help to reduce the scale of the required adjustments to make the general public pension scheme sustainable, but more needs to be done. The reforms to the disability pension, which is one of the major routes to premature withdrawal from the labour force, should be complemented by reducing the earlyretirement pension on an actuarial basis in relation to a pension taken at the official retirement age and by reducing the ease with which imputed contributions can be obtained. Lower growth will also diminish the buffering role of cross- border employment on the national labour market, increasing the risk that adverse shocks increase structural unemployment. To counter this risk, the authorities should reduce the high replacement rates for unemployment and related benefits and ease employment protection regulation.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
Luxembourg

54787. Public Sector Modernisation

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Most OECD countries have been actively reforming their public sectors for two decades. Initially the problem seemed to be a relatively straightforward one of improving efficiency, reforming management practices, and divesting public involvement in commercial enterprises. These reforms have indeed had a major impact but they have also given rise to some unexpected problems of their own. Even a seemingly straightforward action such as simplifying a welfare benefit form and cutting the time taken to process it may, for example, encourage more people to apply for the benefit, increasing the workload and making it more difficult to cut waiting time. While more efficient government is certainly desirable, efficiency alone is not a guarantee of better government.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54788. E-Government in Finland: An Assessment

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Since the late 1990s, Finland has been a leader in exploiting information and communication technology (ICT) to renew its economy and to reform its public administration. Its reputation for successfully providing proactive electronic government services and information has brought officials from around the world to learn from its experience.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54789. Checklist for e-Government Leaders

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
E-government is more about government than about "e". As a tool to achieve better government, e-government offers potential solutions to leaders across the whole of government: IT managers, programme managers, agency heads, government-wide e-government planners and co-ordinators, and politicians all have a role to play. Yet the roles of these leaders differ, and even the role of an individual leader changes as e-government develops in a given country. At the beginning there may be an immediate need to foster innovation and diffusion of technology, whereas organisational change becomes more important once IT applications are in place. Certain key e-government principles are common to all leaders, though their relative importance will differ. While the elements in this policy brief may be applicable to leaders at various levels, they are especially relevant to leaders with broad responsibilities and a strategic vision of e-government.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54790. Attracting Investment to China

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Foreign investment has played an important role in China's economic development for almost a quarter of a century and is vital for that development to continue. But while China has been highly successful in attracting foreign direct investment (FDI) so far, and has made significant progress in improving its FDI policy framework, it has not fully exploited its potential to attract investment from OECD countries. To make the most of the potential benefits of joining the World Trade Organization (WTO) and to increase FDI inflows while enhancing their contribution to domestic development China will need to persevere with efforts to bring its laws and regulations into harmony with internationally recognised standards and to ensure they are fully and consistently implemented at local level.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
China

54791. Economic survey of Canada, 2003

Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Canada's economy has done comparatively well over the past two years, demonstrating a noticeably improved resilience to unfavourable shocks. Over the medium term the economy is poised to achieve growth rates that compare favourably with past performance, but that will not be enough to eliminate the per capita income gap with the United States. The fundamental challenge is to make Canada an even more attractive place to live, work and invest. While past reforms have begun to pay off, there is still unfinished business. To boost the employment rate further the government should reduce disincentive effects arising from the tax and benefit systems by, for example, making greater use of in-work benefits and reintroducing experience rating of Employment Insurance users. Faster productivity gains are more likely to be achieved in an economic environment conducive to innovation. A key to greater dynamism is strengthening competition by eliminating remaining foreign ownership limits and barriers to internal and external trade and continuing electricity deregulation. Investing in skills should also remain a priority, with a particular emphasis on adult education. The nation has benefited by importing human capital from abroad through immigration but needs to intensify its efforts to remove the obstacles that prevent immigrants from having their skills fully utilised in the labour market. Having introduced a sound fiscal framework and reformed its public pension system Canada is in a better position than most other countries in facing ageing-related fiscal challenges, but the trend rise in health-care costs remains a risk. With the recent budget the government chose to address the short-term needs of the existing system. But, ultimately, ways to control the rise in budgetary costs - whether through incentives to raise efficiency or through cost sharing - will need to be explored, otherwise the resources needed to finance the future burden should be set aside in advance, for example by setting a bolder debt reduction target. Finally, environmental sustainability will be enhanced with least cost to the economy if the ambitious greenhouse gas emissions reduction is achieved through market-oriented instruments rather than command and control measures or voluntary agreements.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:
United States and Canada

54792. Civil Society and the OECD - November 2002 update

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The OECD recognises the valuable contribution that civil society can make to the public policy-making process, and attaches great importance to the Organisation's own consultation and dialogue with civil society organisations (CSOs). This continuing dialogue builds trust in public institutions and promotes public understanding of the benefits and challenges of global economic and social change.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54793. Policy coherence: Vital for global development

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Trade and investment, coupled with transfers of knowledge and technology and an appropriate institutional framework, have been major engines of global economic growth in developed and developing countries over the past 50 years. From the mid-1980s, the pace of global economic integration and growth accelerated significantly. Sustaining global economic growth and achieving a better sharing of its benefits will further the interests of all countries, developing and developed alike. Recognising this, the international community has committed itself to specific Millennium Development Goals and to ways of achieving them.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54794. Environmentally Sustainable Buildings: Challenges and Policies

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The building sector is economically important in OECD countries, accounting for a significant proportion of industrial activities and jobs. In fact, the construction industry - buildings and infrastructure such as roads and electricity networks - accounts for around 5%-15% of their gross domestic product (GDP), and 45%-55% of their gross capital formation. The industry also provides 5%-10% of total employment in OECD countries. The building sector also has a great impact on the environment. Building activities such as design, construction, use, refurbishment and demolition all affect the environment, either directly or indirectly. p>
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54795. Trade Capacity Building: Critical for Development

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The global annual welfare gains from further multilateral trade liberalisation, involving both tariff reduction and trade facilitation, would be substantial. Recent OECD estimates suggest that they would range, depending on the precise scenario, between US$117 billion and US$173 billion. For individual economies, depending on the region to which they belong, the gains would amount to annual real increases in gross domestic product (GDP) of between 0.2% and 1.8%, the OECD estimates show. These figures are sufficiently impressive to inspire international action. But would the gains be automatic? Would significantly improved market access be enough to stimulate diversification and trade-led growth? And will increased trade necessarily contribute to reducing poverty and achieving the other Millennium Development Goals identified by the international community?
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54796. Opening up Trade in Services Opportunities and Gains for Developing Countries

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Services, from health and education to telecommunications and transport, are becoming the single largest sector in many economies. Not only do they provide the bulk of employment and income in many countries, but in areas such as the financial or telecommunications sectors, services provide vital input for the production of other goods and services. So the efficiency of the services sector is crucial to the efficiency of the overall economy.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54797. Service Providers on the Move

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The development focus of the current multilateral trade negotiations launched in Doha in late 2001 has highlighted the need for trade liberalisation in areas of export interest for developing countries. When it comes to services, a key issue for these countries is the temporary movement of people across borders to supply services, for example in areas such as nursing or information technology.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54798. Regionalism and the Multilateral Trading System

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Regional trade agreements (RTAs) are an integral part of international trade, accounting for almost half of world trade and expected to grow further in the next few years. These agreements operate alongside global multilateral agreements under the World Trade Organization (WTO), and have both positive and negative effects. They can be attractive, for example, because it may be easier for a small group of neighbouring countries with similar concerns and cultures to agree on market opening in a particular area than to reach agreement in a wider forum such as the WTO. They can also offer new approaches to rule-making and so act as stepping stones on the way to a multilateral agreement.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54799. Trade Facilitation: The Benefits of Simpler, more Transparent Border Procedures

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
International trade has grown rapidly in recent years, and with it the relative importance of border procedures such as Customs requirements, adding to the cost for governments and business, and ultimately for the customer. Indeed, surveys suggest that border-related costs such as the expense of supplying the required Customs documents or the surcharges arising from procedural delays when importing goods could total as much as 15% of the value of the goods being traded in some cases.
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

54800. The Doha Development Agenda: Tariffs and Trade

Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The opening of markets has boosted trade and economic growth worldwide in the past few decades. Yet tariffs – taxes imposed by importing countries on foreign goods – still remain a key obstacle to market access. The potential benefits of further reducing this obstacle are significant. OECD estimates indicate that scrapping all tariffs on merchandise trade and reducing trade costs by 1% of the value of trade worldwide would boost global welfare by more than USD 170 billion dollars a year. These gains would contribute a boost to regions around the world, adding the equivalent of up to 2% to the present annual gross domestic product (GDP) in some areas. No wonder that both developed and developing countries consider substantial tariff reductions as a central goal of the current multilateral trade talks in the World Trade Organization (WTO).
Topic:
Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy