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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A note on the feasibility of a monetary area in the East Asia

After the constitution of the European Monetary Union (EMU), a new scope for monetary coordiantion is emerging in other regional areas. The standard approach to theoretically analyse the feasibility of a monetary union is the optimum currency areas (OCA) approach. Although this approach has been claimed to be non-operative, recent studies using synchronisation measures have shown a high potential applicability. This paper provides an empirical application of the OCA theory to a hypothetical East Asian monetary union centred on Japan’s currency. We find that despite the increasing synchronisation of macroeconomic determinants of a monetary area during 1980–2001, the perspective of an Asian currency union is still not economically feasible.

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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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The awakening of the red dragon. China fills the power vacuum in the Far East

The paper analyses the basic parameters of the power of China, according to Geopolitical Theory. Even though the authors adopt a critical approach on some aspects of the geopolitical theory, the geopolitical analysis elucidates the interests of China and the United States and focuses on the way of which the American decision-making system perceives China. The article interprets the geopolitical role of China, starting from the origins of geopolitical theory to the contemporary international relations theory. In addition, it focuses on the current geo-strategic context of the Far East. It analyses Chinas' strategic thinking, China's nuclear doctrine and its military power as compared to the neighbouring countries and as a major player in the world economy.

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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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Transregional security cooperation after September 11, 2001

The aim of this article is to answer the question what kind of global security architecture emerged after September 11 and what functions Europe, East Asia and the United States assumed in this triadic structure. The empirical findings reveal that the transpacific security cooperation is the strengthening link in this global security structure, the transatlantic security cooperation the weakening one and the Asia–Europe Security Cooperation is to be seen as the emerging link. In order to explain these different institutional manifestations of transregional cooperation, different theories of International Relations are applied to the three cases. It comes as no surprise that neoinstitutionalism and constructivism offer the best insights into the formation and development of international institutions.

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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.

The EU’s refusal to grant China ‘Market Economy Status’ (MES)

Although relations between the EU and China have considerably improved over recent years, Brussels and Beijing still disagree on a number of key issues. These include the EU embargo on arms sales to China, various bilateral trade disputes, problems of illegal migration and, last but not least, Brussels’ refusal to grant China MES. It is this last point that this essay will scrutinise. In doing so, it will firstly present the Chinese point of view on the question. The Chinese believe that, in view of all the efforts they have made in the course of their ongoing transition towards market economy, they deserve to be granted MES without delay. Indeed, Beijing has lately put this issue very high on its list of foreign policy priorities and, claiming that it is victim of discriminatory treatment, has been exerting ever stronger political pressure on the EU and its Member States. Yet Brussels, arguing that China does not yet fulfil the necessary requirements for being granted MES, has until now resisted this pressure.

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The political weakness of the EU in East Asia: a constructivist approach

This paper provides a constructivist explanation of the political weakness of the EU in East Asia. By examining the corporate identity of the EU as well as its social identities towards ASEM, China and Japan, I argue that the identities which the EU has constructed towards the outside world and in relation to the region, based on self recognitions of its superpower status and the defence of certain political values, is disliked by both China and Japan for different reasons. Without the support of the two regional superpowers, the EU is not capable of getting involved in the resolution of East Asian hard political affairs.

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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 new impetus towards economic integration between Europe and Asia

With the end of the Cold War and the collapse of the Soviet Union the large economic space of the Eurasian super-continent has also become part of the world-wide globalization process. How this process of integration of Eurasia is proceeding in key areas of cross-continental linkages is of great importance for the future of the region and for the future of the World as a whole. One of the key questions will be whether the regional and global institutions can provide adequate support for this integration process.This paper was presented as a keynote speech at The Fourteenth OSCE Economic Forum in Vienna on 23 January 2006. It draws on a longer paper by (Linn and Tiomkin in press).The authors are, respectively, Executive Director of the Wolfensohn Initiative at The Brookings Institution, Washington, DC, USA, and MBA and MPA/ID candidate at Harvard University. Johannes Linn served as Vice President for Europe and Central Asia at the World Bank from 1996 to 2003.

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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.

Confucianism and the concept of liberty

Liberty is a concept absent in, and alien to, Confucianism. The term “tsu-you,” (or “cha-yu,” in Korean) is a modern neologism concocted by East Asian thinkers in the 19th century struggling to translate and come to grips with Western political theory. Moreover, the term that they ultimately decided to use was a Taoist, not a Confucian, term. Hence, if this lecture was entitled “Concept of Liberty in Confucianism,” it would have been a very short one. Confucianism has no room for liberty.

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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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Knowledge hubs along the Straits of Malacca

World history has known areas of relative isolation and areas of high intensity of cultural interaction. The Mediterranean Sea, the Silk Road or the Straits of Malacca can be cited as such crucial contact zones. Within these areas, centres sprung up that served as interfaces between cultures and societies. These “hubs” as we would like to call them, emerged at various points throughout the contact zones, rose to prominence and submerged into oblivion due to a variety of natural calamities or political fortunes. This paper assesses the rise and fall of trade and knowledge hubs along the Straits of Malacca from before colonialisation until today. Historical hubs of maritime trade and religiosity today increasingly establish themselves as educational and knowledge hubs. This leads us to speak of the Straits of Malacca as a chain of—not pearls—but knowledge hubs with Singapore as the knowledge hub in the region shining the brightest of all, as the data suggest. We aim to conceptually grasp this development by suggesting a model or at least a hypothesis about the rise and movement of knowledge hubs in general.

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APEC and emerging regionalism in North East Asia

This paper explores what kind of regional trade agreement is most likely to emerge in Northeast Asia by tracing the trajectories of APEC. Taking into account the underlying potential of realizing cumulative causation effects between market expansion and technology cooperation among China, Japan and Korea, it reaches the tentative conclusion that a Northeast Asia Regional Trade Agreement (RTA) might take shape in the near future despite the prevalence of polarized versions in the cultural heritage and the international relations between these three countries.

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Quo vadis Japanese ODA? New developments in Japanese aid policies

Japan positioned itself in a special situation among the aid donor countries. This paper presents the trends in Japanese Official Development Aid policies in the new Millennium, provides an overview and discussion of the characteristics of Japanese ODA, and examines the different views and critiques that have arisen regarding Japan’s development aid policies. The paper’s goal is to highlight and interpret the latest developments and reforms of Japan’s ODA administration and strategies, its strengths and weaknesses, and to understand how ODA is becoming a more strategic, a stronger political, diplomatic and foreign policy tool in the hands of the Japanese government.

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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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International institutions and market expectations: Stock price responses to the WTO ruling on the 2002 U.S. steel tariffs

Many scholars assert that international institutions have little power to enforce laws, punish offenders, or force compliance. Others stress that international institutions are important actors, specifically in the regulation of international trade. In this paper, I show that the recent trade dispute over U.S. steel protection provides us with a critical case to evaluate the role of the World Trade Organization in settling trade disputes and specifically stabilizing expectations of market actors over future steel policy. I argue that stock prices can serve as an important tool in answering these questions. In an empirical analysis using daily steel stock prices, I find that during the 2002 WTO steel case, the WTO dispute mechanism helped market actors stabilize expectations of future trade policy.

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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