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.

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.

Should it be curtains for some of the IMF’s lending windows?

Increasing attention is being paid to IMF governance and operations, but not to how IMF programs are differentiated under the array of available lending windows. This paper examines empirically the economic and political circumstances associated with the use of IMF facilities. It therefore extends existing research into the determinants of IMF arrangements by investigating the extent to which different influences are at work in the case of different facilities. Focusing initially on extended arrangements as compared to stand-bys, the results indicate that although initially the facilities were used in different economic circumstances, since the mid 1980s these differences have largely disappeared. Instead the differences between user countries have become more political than economic. There are, however, some differences between concessionary and non-concessionary facilities beyond the income levels of countries using them. The policy implications for the range and design of the Fund’s lending windows are discussed.

Renewing IMF surveillance: Transparency, accountability, and independence

In this paper, we present a vision for IMF surveillance that seeks to produce a more accountable, transparent, and independent surveillance process. First, to make surveillance more focused, the IMF’s assessment should be principles-based; that is, the Fund should assess the overall coherence of exchange rate, monetary, fiscal and financial policies, with a view to analyzing their effects on external stability. Second, the IMF should have a governance structure that increases incentives to support candid, transparent assessments of surveillance. In practice, this entails a different role for the Executive Board: the Board will set out the Fund’s strategic framework for surveillance; the Managing Director and the staff will conduct surveillance. These reforms clarify the roles and responsibilities of the IMF and its member countries in the surveillance process. Also, our proposed reforms aim at making surveillance more even-handed and objective. We believe that this principles-based approach can bolster the credibility and legitimacy of surveillance, giving the Fund greater influence on the economic policies of members.

The International Monetary Fund: A review of the recent evidence

A review of recent quantitative studies on the International Monetary Fund reveals that much of the conventional wisdom is incorrect. Recent studies have demonstrated a new degree of methodological rigor, have drawn more heavily upon insights from political science, and have asked a number of new questions. We review studies of participation in IMF programs, design of IMF conditionality, implementation and enforcement of IMF conditions, conventional program effects and catalytic effects. At every stage, we find substantial evidence of the influence of major IMF shareholders, of the Fund’s own organizational imperatives, and of domestic politics within borrowing countries. We conclude that very little is known with certainty about the effects of IMF lending, but that a great deal has been learned about the mechanics of IMF programs that will have to be taken into account in order to obtain unbiased estimates of those effects.

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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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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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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Explaining the European Parliament’s gains in the EU Constitution

The Constitutional Treaty, like each set of reforms since the Single European Act, would constitute another incremental increase in the European Parliament’s powers. But the Parliament did not get everything it wanted. What we do in this paper is investigate why the European Parliament tends to ‘win’ in some areas but not in others. We consider five possible explanations and test these theories by looking at the issues the Parliament promoted in the constitutional negotiations and the factors that determined whether the Parliament was successful or not in a particular area. We find that the Parliament gains power in areas where the governments delegate new powers to the EU and are uncertain about the consequences of this delegation. We also find that public support for the Parliament played a role in the extension of the Parliament’s powers in the Constitution.

‘Diplomatic Divergence: the Japanese and British Responses to Indonesia’s Confrontation of Malaysia 1963–1966’

While Indonesia’s policy of Confrontation towards Malaysia brought it into direct military conflict with Britain, this same event prompted Japan to pursue its first explicit postwar diplomatic initiative. Due to different strategic goals for the region, Britain and Japan’s approaches to Indonesian bellicosity were markedly different. Notably, while Britain took a hard-line stance with President Sukarno, Japan in contrast took a lenient approach eschewing economic and diplomatic isolation of Indonesia. With a latent warming in Anglo–Japanese ties beginning in this decade, this paper demonstrates that despite their antithetical approaches to this Southeast Asian crisis bilateral relations were not adversely affected.

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Building a strong nation, how does China perform in science and technology

A common perception is that China has relied on the expansion of labour-intensive industries and flooded the world market with cheap but low to medium level technology products. Although it has become the third largest exporting nation, China has failed to create a large number of big businesses that can compete with the world’s leading multinational companies (Nolan (2004)). The Chinese government has long been aware of the weakness of its development strategy and has been trying to improve its own technological capacity through investments in basic research, innovations and the application of new technologies, utility models and designs. China’s strategy on science and technology can be best described by the so-called ‘walking with two legs’ principle. The first leg is based on building up domestic research and innovative capacity. This is through investments in research institutes, universities and LMEs. China’s second leg has been to build up its technology capacity through its open policy and attracting FDI and technology. China has made significant advances in the following areas regarding science and technology.

Greening an international organization: UNIDO’s strategic responses

The United Nations Industrial Development Organization’s (UNIDO) portfolio of technical cooperation projects changed radically between 1992 and 2004. In 1992, industrial-development-related projects constituted 98% of the portfolio in monetary terms, and environment-related projects 2% while, in 2004, the former constituted 43% and the latter 57%. However, the larger share of the environment-related projects in 2004 was only marginally, if at all, linked to UNIDO’s industrial development agenda. A compelling explanation for this radical change in the organization’s technical cooperation portfolio is provided by a model of strategic choice that draws on resource dependency and institutional approaches and that allows for staff strategic actions. Two factors, UNIDO’s financial and confidence crisis in the 1990s and an organizational culture wedded to industrial development, shaped UNIDO’s strategic responses, which, for the most part, did not integrate environmental concerns into industrial development projects and programs as instructed by its principal governing body.

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.

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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Going nuclear in Northeast Asia: a global view

Northeast Asia (NEA) is on the international security agenda for a lot of reasons. The historical legacy, territorial disputes, the region’s growing importance as an economic actor and a trading partner accompanied by increasing defence expenditures and acquisition of high tech weaponry and the political isolation of a “rogue” North Korea have all contributed to fear that NEA could open a Pandora’s box of a nuclear arms race. In this paper, I analyse recent strategic trends in Asia and try to evaluate the main motivations and objectives of a country like North Korea behind Weapons of Mass Destruction proliferation and the impact of this “nuclear diplomacy” on the evolution of defence policy of major military power like Japan.

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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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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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Working together: local and global imperatives for women in Mongolia

Mongolia is a country in transition. Domestic violence has just begun to reach the public and political agenda, due in large part to the activism and lobbying of women’s groups within Mongolia. State attention to domestic violence accords with Mongolia’s declared democratic and human rights agendas which are driven by political and economic shifts within society, the influence of trans-national feminism and the activities of two of the most influential non-governmental organisations (NGOs), each of which focus on violence against women. Local, feminist campaigning intersects with the global imperatives of treaty obligations and has resulted in the introduction of new legislation on domestic violence in 2004. Since then it has become apparent that there is a gap between the rhetoric of the law the reality of implementation. Women’s groups are battling this lack of political will to effectively implement changes.

Regionalisation, inter-regional cooperation and global governance

The contradiction between trans-boundary issues largely driven by globalisation and conventional authority based on sovereign state leads to the problem of global governance. Regionalisation emerges as a process in which nation states within geographic proximity take collective measures to cope with problems of global governance. With the increasing tendencies of regional cooperation, a new issue thus arises as to the interaction among regions. In fact, the more regionalized the world, the more necessary, enabled and willing for regions to construct connections with each other. Inter-regionalism and trans-regionalism therefore become a further step which regional blocks take to build one layer in the hierarchy of global governance. The paper takes the Asia–Europe Meeting as the case to analyze the above thesis. In the first section, it presents the observation that the global system is characterized with regionalisation, then analyzes the coordination problems facing regions interdependent upon one another and then formulates a modified framework for analysis of the Asia–Europe Meeting. In the second section of rational design, it analyzes the process in which Europe and Asia rationally establish the cooperation structure of ASEM as a means to tackle the coordination issues between the two regions. In the third section of governing globalisation, it discusses the effects and implications of ASEM’s contribution towards global governance mainly in ways of rationalizing international relations and strengthening regional identity in the era of globalisation.

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Agent permeability, principal delegation and the European Court of Human Rights

A growing body of international relations literature examines the delegation of state authority to international organizations. Delegation is a conditional grant of authority from a principal to an agent in which the latter is empowered to act on behalf of the former. This paper explores the effect of agent permeability to interested third parties on the efficacy of control mechanisms established by principals. Our central argument is that higher levels of agent permeability are likely to lead to higher levels of agent autonomy. Because of this, principals who face a potentially permeable agent are likely to delegate more cautiously—partially, in stages, or with clear limits. We illustrate our argument with a case study of the European Convention of Human Rights and its two principal institutions, the Commission and the Court. We find that principals (contracting states) historically delegated quite cautiously to the Court, clearly concerned about the Court’s autonomy. Court behavior in its first two decades reassured principals while increasing the Court’s permeability. Over time, that increased permeability increased Court autonomy in conjunction with the Court’s growing visibility and experience.