Operational oceanography in Indonesia

In 2005 Indonesian and European institutes joined to start the first step for the implementation of an Ocean Operational System in the Indonesian archipelago. The system will support the decision making process for the sustainable use of marine resources, providing useful information and added value products as well as a service for an improved management of the sea with high business impact to targeted groups as public authorities and commercial operators (coastal managers, fishermen, shipping companies). In this paper the System is shortly described with its potential benefits and economic and social impacts.

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Potential Benefits from a Deep EU–India Free Trade Agreement

Both parties to an eventual EU India FTA have agreed that it should not merely address tariff barriers but should also go further into what is known as deep integration, originally developed in the 1990s by R.Z. Lawrence. This relates to the removal of all obstacles to cross border business whether actual trade barriers or domestic regulations. We distinguish deep institutional integration from the deep integration of markets. We ask the question how one may support the other. There are potential market failures that can be addressed by trans-national rules on standards and technical regulations and services, but we conclude that the biggest impact of a deep RTA would be on the domestic economy of India if it provides an opportunity for reform. It should be noted that the paper draws on a study undertaken by the authors for DG Trade, but it represents only the views of the authors.

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Chinese medicine in an occidental perspective

This article treats the relationship between the Westerners and Chinese medicine. Firstly, the purpose is to comprehend how young Westerners have come to practice Chinese medicine in their lives and, secondly, to learn the eventual consequences of that practice on their lives and attitudes towards this medicine.

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The European Union, the Doha Round, and Asia

Agriculture has been the most contentious issue in the Doha Round of multilateral trade negotiations, and the European Union (EU) intervenes substantially in agricultural markets. This paper reviews these interventions in light of the EU’s participation in the Doha Round of multilateral trade negotiations with specific attention to Asia. It concludes that the offers made by the EU were designed precisely to avoid any real liberalization in its agricultural markets and have undermined the development aspirations of the round.

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The coordinate plane of global governance

The ‘coordinate plane of global governance’ developed in this paper describes the trade-off between static gains and dynamic losses associated with international policy harmonization. A simple model illustrates how potential gains result from producing positive international spill-overs, whereas potential losses come from restricted systems competition between national policy regimes. The solution to this model allows identifying the cut-off level between policies suitable for global harmonization and policies which should better not be centralized. An application of the concept to selected policy fields illustrates its relevance for decision-making on global governance.

European presence in Indonesia

This paper describes the European Union (EU) presence in Indonesia. It firstly discusses the reorientation of EU relations with Indonesia. It might be argued that the reorientation has been supported dominantly by economic and political motivations as consequences of the EU’s internal dynamics (such as single market; CFSP), the global dynamics and the rise of inter-regionalism. Secondly, current economic relationships show that the EU presence has been very significant for Indonesian economy, in term of international trade, investments, foreign exchange rate, debt, development assistance and business activities.

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The implementation of IMF programs: A conceptual framework

IMF supported programs have conventionally been assessed by examining their effects on intermediate variables and final outcomes. More recently greater attention has been paid to their implementation, on the assumption that in order to work programs need to be implemented. Empirical studies have begun to include political economy variables in an attempt to explain implementation. They have used the concept of ‘ownership’ to provide a theoretical foundation. This paper provides an alternative and simple conceptual framework based on the marginal benefits and costs of implementation. It goes on to discuss policies that might be expected to improve implementation based on this framework.

EU-China relations: balancing political challenges with economic opportunities

During 2005, the European Union and China marked 30 years of diplomatic relations with much fanfare. Celebrations surrounding the anniversary however belied the fact that throughout most of this period the European Union and China remained largely aloof from one another. The strengthening of EU foreign policy over time, as well as the economic reforms and new outward orientation exhibited by China have changed the dynamics of the relationship. Both sides are increasingly recognizing the potential mutual benefits that can be accrued from a closer relationship. This paper assesses EU-China relations from both economic and political perspectives. In terms of economics, it is clear that the EU must build stronger relations with China if it is to accrue the benefits of access to an expanding market with over one billion people. To do so successfully however, the EU will have to reconcile the economic and political components of its foreign policy. The EU continues to challenge the Chinese government to reform its practices on a number of issues including human rights, democratic reform, and Tibet, all of which remain bones of contention. How the EU achieves the balance between political constraints and economic opportunities is the primary focus of this paper.

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Are economic forecasts of the International Monetary Fund politically biased? A public choice analysis

The paper shows that the economic forecasts of the IMF are frequently distorted by political bias. Longer-term growth forecasts for the industrial countries reveal an absolute as well as relative optimism bias and a significant correlation with election dates in the US. Furthermore, the IMF projections for the developing regions are strongly biased toward optimism. The significant relationship between forecast errors and IMF net credit flows to a region supports the hypothesis that the IMF staff tries to legitimize its lending activities with overly optimistic forecasts.

Exit, voice, and loyalty in international organizations: US involvement in the League of Nations

Recent challenges to traditional international relations theory have questioned the nature of international organizations (IOs) as agents of powerful state-members and have examined various conduits through which non-state actors can voice their concerns. Yet little work has focused on participation in IOs when a powerful state’s official position contradicts the goals of actors within it. This article examines the archival record of American involvement in the League of Nations’ economic section to explore such a circumstance. I correct the prevailing historical view of American isolationism in the interwar period and argue that participation by advanced, industrial democracies can better be understood as combinations of exit, voice, and loyalty on the part of individual components of state and civil societies.

Ownership and conditionality in IMF-supported programs: Back to Per Jacobsson’s time

Using a historical case study this article provides an example of how heterogeneity of interests within a government may affect the interplay between country ownership of reforms and conditionality in IMF-supported programs. The case study also highlights how pro-reformers’ preferences may be conditional on reforms advancing their personal agendas. This suggests a new issue to be addressed by formal models of conditionality. Two main themes emerge from the analysis: (a) the importance of a clear hierarchy to unify heterogeneous interests among decision makers; and, (b) a flexible country-tailored approach to conditionality can contribute to domestic ownership of reforms.

IMF staff: Missing link in fund reform proposals

Current IMF reform proposals are preoccupied with changing governance structures by reallocating Executive Board chairs and quota shares and with expanding and altering the Fund’s surveillance role, but not enough attention has been paid to whether organizational change at the staff level is also needed. IMF staff have intellectual dominance and discretion in the design of loan conditionality, writing of surveillance reports, and provision of technical and policy advice. There are also clear internal and external criticisms of how the Fund’s organizational culture—that is perceived to be hierarchical, technical/economistic, bureaucratic, and homogeneous/conforming—negatively affects the Fund’s policy output and relationship with borrowing members. This article suggests altering ’how things are done’ at the IMF by making changes to recruitment and organizational structure.

EU trade relations with Emerging Asia: identifying the issues

Trade interdependence between Europe and Asia has rapidly increased in recent years. Europe–Asia trade flows now constitute a ‘third link’ in the global economy. As trade expands, however, global trade governance has declined and free trade agreements (FTAs) have increased. Hence, the Global Europe strategy has been designed to enhance trade relations with emerging Asia which is the most dynamic region in the global economy today. But Asia’s model of export led growth leaves it more exposed to shocks emanating from outside the region than ever before raising questions about its sustainability. Deep integration agreements between Europe and Asia are needed to foster economic growth. They also need a development dimension to help Asian countries address their key development challenges. Brigid Gavin was the Research Coordinator of the workshop on ‘Deep Integration and North–South Free Trade Agreements: EU Strategy for a Global Economy’ which provided the papers and discussion forum for the articles in this special edition. The workshop took place at the United Nations University-Comparative Regional Integration Studies (UNU-CRIS) centre in Bruges, Belgium on 19–20 June, 2008. She wishes to express her thanks to Mr Luk Van Langenhove, Director of UNU-CRIS for financial support and to all the authors and participants in the workshop for their contribution to making this project a real success. A special word of thanks goes to Lars Nilsson, Chief Economist Unit, DG Trade, European Commission for his opening presentation to the workshop. Alice Sindzingre is Research Fellow, National Centre for Scientific Research (CNRS), University of Paris and Visiting Lecturer at School of Oriental and African Studies (SOAS), University of London. This analysis draws from her paper ‘The EU Economic Partnership Agreements with Africa’ which she presented at the workshop and available on the UNU-CRIS website.

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A Chinese perspective on Lisbon Strategy

The Chinese interpretations of the Lisbon Strategy fall mainly into two different aspects: one focuses on the more or less neo-liberal orientation of the Lisbon Strategy, the other tries to assess the implications of this orientation toward the norms of national social welfare states. This article focuses on one of the main tool deployed by the Lisbon Strategy, i.e., the “innovation”, discussed its definitions, contents, practices and constraints. The article concludes that the direction of the Lisbon Strategy is more important than the quantitative goals it has set up to achieve, and China can in many ways learn from European experiences reviewed in designing and implementing the Lisbon Strategy.

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Future targets for Asian regional integration

The central framework of Asian integration is ASEAN+3 and, since its first Summit meeting in 1997, it has advanced regional integration in East Asia. Based on the direct experience of the author, this article presents a critical assessment of the progress made over the past ten years and argues that the ‘Singapore Declaration’ of 2007 is not ambitious enough for the future. An East Asian customs union (EACU) and common regional market should be the next targets for trade integration. In terms of monetary integration, Asia should aim for de-dollarisation and to achieve this it is crucially important to create a regional Asian monetary system (AMS).

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EU FTA negotiations with India, ASEAN and Korea: the question of fair labour standards

The EU sets considerable store by the need for its Free Trade Agreements (FTAs) now under negotiation with Asian countries to contain a sustainable development chapter with clear references to respect for the core ILO labour standards. While they reject the sanctions-based approach demanded by the European trade unions, they accept that some real enforcement mechanisms will be needed. Among Asian countries, Korea is most likely to accept some form of a social clause, while India and certainly some ASEAN countries strongly oppose it. This article explores the prospects for mutual agreement on this thorny issue at the bilateral level which, to date, has failed at the multilateral level.

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The institutional failures of International Monetary Fund conditionality

The purpose of this paper is to propose an analytical framework integrating the diverse explanations of the failure of IMF conditionality. The IMF is a key player in the running of markets in a global economy. The institutional failures of IMF conditionality are appreciated at two complementary levels: (a) its intrinsic bureaucratic bias, and (b) the inability of the IMF to manage the institutional change required for the development of market processes. A new approach of conditionality suggests the separation of the role of the IMF as financial backer from its role as adviser to countries confronted by the globalization process.

Delegating divisible sovereignty: Sweeping a conceptual minefield

Delegating sovereignty to international organizations (IOs) is both increasingly common and controversial. I address the sources of current controversies in three claims. First, although alleged otherwise, sovereignty is eminently divisible. From practice, indivisibility should not be a barrier to delegating to IOs. Second, it is intuitive that longer chains of delegation will be more likely to fail. Yet, it is not the length of the chain per se that matters as whether identifiable conditions for successful delegation are satisfied. Third, although “delegation” is often used to refer to both, delegating and pooling sovereignty are distinct activities. Much of the concern with IOs is really about pooling rather than delegating sovereignty.

From intergovernmental to global: UNESCO’s response to globalization

Whilst there is an ever-growing literature on the economic and political aspects of ‘globalization,’ at present there are few studies analyzing how intergovernmental organizations have reacted to this phenomenon. This article aims to fill this gap by analyzing the response to globalization of UNESCO, one of the least studied organizations of the UN constellation. Addressing the global orientation of some of the current programs, this article shows how a recent re-evaluation of scientific humanism—the main philosophical framework contributing to the creation of UNESCO—has influenced both UNESCO’s self-understanding and its understanding of globalization. Scientific humanism is a philosophical utopia that couples the advance of scientific knowledge with the diffusion of a common philosophical framework and promotes a universal system of education in order to establish a global community. Based on the philosophical appeal of a culture of peace based on science, humanism and human rights, UNESCO’s representation of globalization represents an intriguing example of how our global future may be conceived and, to some extent, realized.

IMF retrospective and prospective: A public goods viewpoint

The paper investigates changes in IMF activities using the analytical framework of international public goods. The IMF promotes international financial stability, whose outputs are joint products with varying degrees of publicness. In recent years, IMF loans (recipient-specific benefits) have assumed decreased importance, while the Fund’s technical assistance and monitoring activities have taken on greater importance. As a consequence, the club and purely public outputs (e.g., disseminating best practices) have grown as a share of IMF activities. Changes in the mix of IMF activities alter the mix of international public goods and, in so doing, change policy recommendations regarding the role of IMF. The future of IMF is also addressed, especially in light of increased private capital flows.