The euro for China: too important to fail and too difficult to rescue

Abstract

The aim of this paper is to analyze China's strategy in relation to the euro. The first section summarizes China's active support to the single currency since its creation up to the first phase of the current Eurozone debt crisis. It shows how China has used a two-pronged approach. It has developed a public campaign in favor of the euro, especially when the market sentiment has been bearish on the single currency, and it has continued to be an active player in the European sovereign debt markets. The second part explains why China has been so supportive. Beijing wants to move away from dollar hegemony and thus it favors a tripolar monetary system based on the US dollar, the euro and the Chinese renminbi (RMB). With this aim, and despite the crisis, China has continued to diversify its foreign reserves into the euro making it by now ‘too important to fail’, not only because China holds roughly $1 trillion in euro-denominated assets, but also because for China the Eurozone is a crucial market and an important strategic counterweight to US dominance in world affairs. Finally, the third part focuses on how by the end of 2011 China switches to a more cautious approach due to the difficulty involved in rescuing the Eurozone. Domestic pressures, public outcry in Europe against being saved by China, the unwillingness of the European leaders to enter into strategic bargaining and Germany's strategy to use sovereign bond spreads as a market mechanism to create ‘more Europe’ have convinced policy-makers in Beijing to keep a lower profile while making sure the value of the euro remains stable.     

Organizational Learning Capacity and Its Impact on the Results in a Government Agency in Chile

ABSTRACT

Rising demand for quality, efficiency, and openness in the management of collective problems and their solutions has prompted successful government agencies to consider knowledge as a key resource. Government agencies make intensive use of human capital and knowledge in the performance of their duties. Knowledge represents the most important strategic resource, and its skillful management is a key capability in institutional performance. Using structural equation modeling, we analyze the relationship between the learning capability of an organizational system, characterized by the dynamic interaction of stocks and flows of knowledge, and its impact on performance. Our results support the view that learning capability, especially knowledge flows and stocks, has a positive impact on the performance of public institutions.     

Recent interpretations of ideology

The ‘emergence’ of the ‘market’ as the basis of economic and political decision-making has become a main focus of debate within the social sciences since the late 1970s. Even while those opposing the growing centrality of neo-classical economics and market-oriented political discourses remain a significant academic constituency, within their ranks there has been a growing realization that regulatory mechanisms, and in particular the role of the state, have nevertheless been the subject of extensive changes. Alternative schools of thought have argued in terms of the way in which such mechanisms have been refashioned. Regulation has become, in the words of Regini and Majone, ‘transferred’ and the ‘boundaries’ between regulator and regulated ‘changed’: the regulatory process has been seen to shift at the macro/national level and at the micro/enterprise level. While supporting the general argument that it is the boundaries of regulation which are to be discussed, not its presence, we shall nevertheless argue that these changes are, if anything, more contentious and that a set of ironies emerges which politicize regulation even further.     

Reflections on relationships: the nature of partnership according to five NGOs in southern Mexico

This article is based on interviews with several staff members of NGOs located in San Cristóbal de Las Casas, Chiapas, Mexico, regarding partnerships between them and their funding sources, such as foundations or agencies of the North that do or support development work in the South. The motive behind the interviews was an interest in the word ‘partnerships’, in particular strategic ones. Do partnerships exist now and, if they do, what does it mean for the NGOs to have a partnership with a funding source? The general conclusion was that strategic partnerships have indeed existed in the past, and may again emerge in the future, but that currently they exist only sporadically, given the distinct ways of viewing and carrying out development work within NGOs on the one hand, and foundations or agencies on the other.     

Equality before the Law and Precedent

The paper explores the nature of the principle of equality before the law, understood as the formal justice criterion that like cases must be treated alike, as a rationale of the rule or system of precedent. The first part discusses and rejects Kelsen's thesis on the conceptual insignificance of that principle in the sphere of the application of the law, identified uniquely with a logical criterion related to generality of rules and simple legality. The second part argues for the ethical relevance of equality before the law as a reason for a legal system to have a rule of defeasibly binding precedent.     

The EU ‘Stress Tests’: The Basis for a New Regulatory Framework for Nuclear Safety

Among the constitutional tensions at the heart of the European integration process, the relationship between ‘mainstream’ EU Law (framed by the Treaty on European Union) and Euratom Law has often been overlooked. Nonetheless, the EU's response to the nuclear power plant accident in Fukushima provides an opportunity to revisit this relationship. This article specifically aims to highlight the dysfunctions of the prevailing understanding of the Euratom's provisions on nuclear safety matters as well as to identify, under a joint interpretation of all EU Treaties, how to develop a European nuclear safety regime that reinforces the compensatory role of EU law and contributes to enhance the EU's legitimacy.