Much ado about nothing? The European Union and the global politics of untying aid

This article has two main purposes. The first is that of providing a longitudinal analysis of the global politics of untying aid, by looking at a number of debates that have occurred within the Development Assistance Committee and in the context of a number of high-level forums on aid effectiveness. The second is that of proposing some explanations for the lack of significant progress in these contexts. The focus is on the European Union (EU), which has been widely perceived as one of the most fervent supporters of promoting the aid untying agenda. In all these debates, the EU's leadership aspirations have remained largely unfulfilled. Thus, the EU has failed to adopt a EU-wide vision on aid untying; persuade non-EU donors to untie their aid, even when it has played the reciprocity card; and promote a pro-poor use of foreign aid, by supporting local ownership and facilitating greater access of developing country firms to aid contracts.     

Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports

Abstract

Recent studies offer an ambiguous picture on the effectiveness of foreign aid in strengthening the export capacity of recipient countries. Moreover, the literature on aid for trade (AfT) has often neglected the fact that exporters in the donor countries may be among the main beneficiaries. We simultaneously estimate and compare the effects of AfT on trade in both directions. We find that AfT increases recipient exports to donors as well as recipient imports from donors. The first effect tends to dominate the latter, which contradicts the sceptical view that donors grant AfT primarily to promote their own export interests.     

Trading in development: norms and institutions in the making/unmaking of European Union–African,Caribbean and Pacific trade and development cooperation

This paper offers a contribution to recent debates on European Union (EU) external trade and development policy, with a specific focus on the African, Caribbean and Pacific (ACP) group of countries. The question asked is why the EU encountered such difficulties in the attempt to translate its normative preferences for freer trade and closer economic integration into a series of binding agreements? Drawing on both economic constructivist and historical institutionalist insights, it is argued that the case for reform initially rested on a strong convergence between institutions and ideas, enabling the EU to discursively present desired policy reforms as necessary to satisfy World Trade Organisation trade rules. However, in due course, the institutional dynamics behind the latter began to diverge from the EU's policy preferences and blunt its norm-based argument – thus creating the space for transnational coalitions to, first, question and, ultimately, undermine aspects the EU's trade and development prospectus for the ACP.     

Facing the Giant: Southern perspectives on the European Union

The European Union portrays itself as a different global actor. This self-representation has triggered a debate around the EU as a global ‘normative power’, while providing momentum for innovative research into how other societies view and assess the global performance of the EU. For the first time this article presents the findings of a study conducted respectively in Brazil, India and South Africa. As leading nations of the ‘global South’, these three countries offer important insights into how the EU is perceived not only in emerging markets, but also in the so-called developing world at large. The findings reveal that the EU is an unknown entity to most citizens in these countries and is rarely covered by local media. Moreover, it is often criticised for inconsistencies and double standards by political elites and civil society, especially in the area of international trade, while being praised as a successful example of regional integration.     

ASEAN At 50: the global political economy’s contribution to durability

Why has the Association of Southeast Asian Nations (ASEAN) proved so durable as a regional organisation given the many challenges it has faced since its inception in 1967? This analysis makes use of an historical institutionalist approach. It shows how the global political economy, through the injection of aid and investment and the development of production networks and increased trade, generated a generally positive regional economic environment that encouraged cooperation. It also provided the resources for the gradual institutionalisation of ASEAN and the expansion of its reach through the establishment of associated regional organisations. The result was that these factors, in combination, contributed to ASEAN’s staying power.     

EU fta Negotiations with sadc and Mercosur: integration into the world economy or market access for EU firms?

The EU claims that its free trade agreements with regional organisations of developing countries can promote the respective regions' integration into the world economy. Taking as case studies EU negotiations with the Southern African Development Community and Mercosur, the paper argues that the EU and its partners have different conceptions of integration into the world economy. For the EU the latter simply means multilateral trade liberalisation under the wto, while, for its partners, it involves increasing industrial production and exports of manufactured products. If the latter notion is accepted, an fta with the EU should increase European foreign direct investment into the region or at least increase their trade surpluses, thus increasing the resources available for support of local firms. The paper argues that an fta with the EU will not be likely to produce these results; thus the fta will simply be an instrument to promote market access for EU firms.     

Regionalism in the Global South: Mercosur and ECOWAS in trade and democracy protection

ABSTRACT

The aim of this article is to analyse the performance of regionalism in the Global South through a comparative analysis of Mercosur and Ecowas with regard to the trade and democracy protection agendas, by contrasting their institutional design and regional leadership concerning the two issues. Firstly, it analyses the evolution of intra-regional trade as well as the trade agenda of each bloc concerning international negotiations with other states or economic blocs. Secondly, it discusses the relevance of democratic stability in the two regional organisations and how each organisation has performed in cases of democratic rupture in member states. When comparing the dynamics of the two organisations, we argue that differences in terms of institutional design and regional leadership have meant that Ecowas has been less ambitious than Mercosur in its trade agenda, but more decisive vis-à-vis the region’s democratic stability. Thus, this article aims to contribute to the comparative regionalism literature, setting out an analytical comparative framework for assessing the performance of regional organisations, which remains a difficult task for this particular research agenda.     

WTO agricultural trade battles and food aid

Recent agricultural trade battles at the WTO between the US and the EU have important implications for the Global South, in particular with respect to food aid. The current Doha round of trade talks hinges closely on agreement in the area of agriculture, and a key issue of disagreement between the US and the EU is the question of whether the WTO should impose disciplines on food aid and agricultural export credits. The US has also challenged the EU at the WTO over trade in genetically modified organisms (GMOs). The outcome of this dispute will affect food aid, as many countries have in recent years rejected GM food aid from the US on the grounds that it would harm their export markets in Europe. Decisions on both of these battles should be forthcoming within the next year or two, and the outcomes will affect food aid policies.     

Labour involvement in national and regional transformation processes: The case of Chile

This article argues that regionalisation should be analysed as a multi-layered process. Such an analysis shows the complexities of current transformation processes at the global, regional and national level. A perspective on labour issues is especially useful as it provides a focus on one of the most important aspects of globalisation-changes in production structures across borders. It also points to how labour movements are affected by these changes and how they readjust their strategies. The case of Chile is chosen as an early example of the so-called neoliberal model. Furthermore, regionalisation and strategies of integration into the world economy are central to Chile's economic model. This article intends to show the interconnections between national and regional processes of transformation in a global perspective, with a focus on the issue of labour and trade unions .     

EU trade and development policy beyond the ACP: subordinating developmental to commercial imperatives in the reform of GSP

Following the stagnation of negotiations with the African, Caribbean and Pacific states, the centrepiece of the European Union's (EU's) trade and development strategy has been a reform of the Generalised System of Preferences. Although policy-makers in the Commission's Directorate General for Trade have argued they are ‘refocusing’ these preferences on the ‘neediest’, by rendering a significant proportion of emerging economies' exports ineligible for the scheme, this article argues that the reform is actually part of a broader ‘reciprocity’ agenda being pursued in the context of the current economic crisis. This is about ensuring the EU possesses sufficient offensive leverage in ongoing free trade agreement negotiations, rather than representing any mercantilist move towards greater domestic protection. In arguing that the EU's developmental trade agenda is increasingly subordinated to commercial imperatives, this article adds to a literature that has situated the study of EU trade and development policy within the field of political economy.     

Ethnic Group Identity and the Roma Social Movement: Transnational Organizing Structures of Representation

This paper examines the relationship between European integration and ethnonational demands with the example of selected regions in the European Union (EU). It follows the theoretical premises of new regionalism and explores the ways in which ethnonational groups use the opportunities and resources of European governance to express their identities, material interests, and political demands. Methodologically, it conducts a plausibility probe of the potential effects of European integration on ethnonationalism by testing for regional differences in identities, interests, and political attitudes. The case studies are drawn from the UK (Wales and Scotland), Belgium (Flanders), Austria (Carinthia and Burgenland), Romania (Northwest and Center regions), and Bulgaria (South-Central and South-Eastern regions) as a representative selection of regional interests in the EU. The paper finds that European integration affects ethnonational groups by reinforcing identity construction in the direction of inclusiveness and diversity. Although regional actors are more supportive of the EU than the European publics in general, they also seek access to representation in the authority structures of the state. Based on these findings, the paper concludes that European integration facilitates a growing public acceptance of its resources, in parallel with persisting allegiances to the nation-state, the community, and ethnoregional distinctiveness.     

Challenging the European Union: the rising powers and the USA in the Doha Round

In this article, the challenges posed to the European Union's (EU) role in trade policy and its implications for development policy during the World Trade Organization's Doha Development Agenda, also known as the Doha round, are highlighted. The authors argue that transformed power relations have created a situation characterized by role uncertainty, for the emerging powers but also for the EU. Priorities among multiple possible roles – in the existing trade regime, in relation to the global South and in the ongoing negotiations – become subject to redefinition. For the EU, heavily wedded to a multilateralist and reformist mission because of its own history, this process is particularly difficult. The EU's traditional role conceptions as a leader and a benign partner to developing countries have been challenged and partly replaced by a more realist approach.     

The EU ‘partnership principle’: still a sustainable governance device across multiple administrative arenas?

This article analyses the 'partnership principle'– which is of particular importance for multilevel governance interpretations of European integration – as it evolved in EU regional policy–making. After sketching in the crucial analytical lines of the current debate on 'partnership' on the example of the implementation of the EU structural policy in Germany, I examine how it functions. A closer look at two important sub–fields of 'partnership'–'societal participation' and 'policy evaluation'– reveals that theoretical expectations regarding its transforming potential, in terms of pitting supranational and subnational actors against central state authority and thereby circumventing the latter, have not materialized. On the contrary, recently rising resentment and out–and–out conflict between the European Commission and regional authorities so far point to theoretically unexpected limitations of 'partnership', calling into question whether it is an appropriate and sustainable inter–administrative co–ordination device – at least when viewed from the perspective of the EU multilevel governance thesis. In the light of the reported insights into the practice of 'partnership', this 'new mode of EU governance' thus needs to be reassessed.     

The European Union and Mercosur: A case of inter-regionalism

The article reviews the relation between two regional integration arrangements, the European Union and Mercosur, under three aspects: trade and investment, international negotiations and the institutional dimension. Tracing the agenda and issues dealt with between the two, leading to a project of a transatlantic free trade area, reveals that trade issues, one of two 'pillars' of reference, are important. However, the most influential results have stemmed so far from the other 'pillar', the political one. These results may be seen in the EU's role as a 'road map' for Mercosur's institutional trajectory, and second, as a signal for the private sector in furthering industrial networks within the ongoing world economic restructuring. The objective, thus, is to highlight how the relationship may interact with two encompassing processes: the shaping of regionalism/s, in particular the Mercosur case, and the so-called globalisation process.     

The value of pointillism? Integrating trade and development and the European Union as a global actor

As the contributions to this volume make clear, the intersection between the European Union's (EU) trade and development policies is populated by a diverse array of policies. The EU's selection of policies reflects, in part, the level of development of the developing country and competing understandings of how to best foster development. The contributions also hint at significant contributions to wider debates about the EU as a global actor, particularly the extent to which it is motivated by normative considerations and how affective it is in achieving its objectives. This article reviews the main findings of the contributions to this volume and advances some suggestions so as to enable a clearer picture to emerge that could more readily inform wider debates.     

The new great game in Central Asia post 2014: The US “New Silk Road” strategy and Sino-Russian rivalry

With the planned US and NATO withdrawal from Afghanistan in 2014 looming ever closer, and Central Asia's own future increasingly in doubt, major powers are all competing to enhance their influence in Central Asia. 2014 may mark a regional tipping point, but none can accurately predict how the regional balance might shift after the NATO withdrawal from Afghanistan. During 2009–2010, the signs of growing Russian dependence on China in terms of economy and energy were palpable, as were the signs of China successfully subordinating Russia to its Central Asian economic agenda. In 2011–2012, it was difficult to see Russia simply acquiescing in its subordination to China without reacting to that situation negatively. Since 2011, to avoid this dependence on China, Russia has vigorously pushed for its regional integration schemes. 2011 marked the launch of the US “New Silk Road” initiative. Great power regional integration schemes, however, undermine both regional and national development.     

Haiti's democratic challenge

This paper examines the emergence of a humanitarian frontline in several operational contexts. Over the past 15 years, and since 2001 in particular, the international aid sector has been confronted by a climate of polarisation. With the traditional aid and donor landscape dominated by Western or Western-aligned parties who are sometimes involved in armed conflict too, aid organisations face the impact of the supposed or real instrumentalisation of development and relief in a wider security and geopolitical control agenda. At the same time Western or Western-associated secular development models that are often promoted by traditional aid have either encountered their limits or failed in several parts of the global periphery. The expanded space for religion resulting from globalisation and the social changes that it causes have also expanded the space for faith-based development and relief actors, especially in operational situations that have a large cultural and ideological dimension. The paper focuses on the Islamic world and Islamic faith-based aid, but several factors and trends discussed in it bear relevance for Christian faith-based aid and majority Christian parts of the global periphery as well.     

A changing world: is the UN development system ready?

This article examines five contemporary areas of development concern that have become major drivers of global transformation since the turn of the millennium: the plight of fragile states; the emergence of new powers and new development funds in a changing aid landscape; the need for developing countries to manage the growing resources at their disposal; encroachments on the political sovereignty of states; and new global challenges that demand global action, including climate change, migration, and food security. These drivers of change call for responses from the UN – and in particular its development system of some 30 organisations. The ongoing protracted debate on the future UN development agenda should take cognisance of these changes if the system is to remain relevant after 2015. But the signs are not promising that either the agenda or the UN development system are up to the task.     

Stability First,Development Second,Democracy Third: The European Union's Policy towards the Post-Conflict Western Balkans, 1991–2010

This article assesses total EU financial flows towards the Western Balkans between 1991 and 2010. It shows that, in the short term, the majority of support has been allocated to humanitarian assistance and socio-economic development. Although the EU has declared its interest in democracy promotion, democracy assistance ranks only third on the list of its financial expenditures in the Western Balkans. Therefore, although EU financial aid is consistent with official EU programmes, it is inadequate in the post-conflict context of the EU candidate and potential candidate countries that require support for democratisation.