The GATT agreement on trade related investment measures: Implications for developing countries and their relationship with transnational corporations

This article addresses three issues. First, it argues that the use of trade related investment measures (TRIMs) by LDCs can only be analysed in the context of their dealings with transnational corporations (TNCs). Second, it considers the applicability of existing GATT rules to TRIMs and shows that they are inadequate and can pose difficulties for LDCs seeking foreign direct investment by TNCs. Third, it suggests a framework for regulating TRIMs as one element of host‐TNC relations. The article concludes with proposals for enhancing the capacity of LDCs in their dealings with TNCs.     

International patron-client relationships: A conceptual framework

Dependency theory has cast new light on the workings of the international political economy, and on the relations between more and less developed countries. Insofar as dependency theory aims at specifying generalsystemic constraints on the behavior of Third World states, its ability to explain/predict how particular Third World states respond to these constraints is limited. Our concern is with the foreign policy responses of the LDCs. The comparative foreign policy approach to this question has attempted to account for cross-national variation in foreign policy responses of LDCs with variation in theirdomestic features, i.e., attributes, capabilities, and regime types. Here we suggest that an understanding of the foreign policies of the LDCs can be enhanced by adding an explicitly dyadic perspective to dependency and comparative foreign policy approaches, conceptualized as a form of patron-cliency.     

Debt crisis of the less developed countries and the transfer debate once again

In the perspective of substantial amount of net transfers from the debtor less developed countries (LDCs) to the creditor developed countries (DCs) in the recent debt crisis years, there is a renewed debate (that started in the context of German reparation payments after the First World War) on the question of transfer burden of debt. The present study assembles some evidence to show that the LDCs in general expanded their export‐volumes and faced losses in their export unit values in the process of their debt repayments. Many LDCs faced this transfer burden of debt irrespective of whether their export drive was in the field of primary products or manufactures. Thus the Keynesian analysis for German transfer problems seems to be relevant in the context of the present experience of the LDCs. For some debtor countries, the ‘insoluble’ transfer problem mentioned by Keynes exists as they are facing ‘Fisher's paradox’: The more the debtors pay, the more they owe.     

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.     

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.     

brics in the Contemporary World: changing identities,converging interests

Abstract

This paper aims to address the reasons why the acronym brics is moving from being an easy marker to guide foreign investors interested in emerging markets to denoting an important political group of countries determined to promote major changes in international relations. Theoretically the paper draws on social constructivism to demonstrate that the changing identities of brics (Brazil, Russia, India, China and South Africa) can be treated as the main cause of the convergence of their interests in the international arena. Through a detailed analysis of these countries’ statements at the opening sessions of the UN General Assembly from 1991 to 2011, their social claims about themselves are retraced and the way they have judged the international sphere in which they engage is captured, in order to demonstrate the changing character of their identities. These new identities, it is argued, created the opportunity for converging interests, which explains the emerging political structure of brics . The paper concludes that, after four major summits and a significant number of wide-ranging low-level meetings, brics might be considered one of the major long-lasting forces shaping the new architecture of international relations in the 21st century.     

The reconstruction of business interests after the ISI collapse: unpacking the effect of institutional change in Chile and Uruguay

Abstract

This paper focuses on understanding the different evolutions of business’ associational paths in post-Import Substitution Industrialization (ISI) Chile and Uruguay, offering an explanation at the crossroads of the institutional change and international trade literatures. The argument is that the different forms in which ISI institutions were transformed during the liberalisation period facilitated a greater mobility of factors to different degrees, triggering divergent enduring associational strategies on the part of business. The proliferation of narrow-based special benefits during the ISI fuelled preferences for the formation of sector-based coalitions oriented towards rent-seeking activities. Nevertheless, while ISI regulations were displaced in Chile during the military period, Uruguay followed a gradual process of layering of new rules alongside old ones. These diverging strategies, having different effect on established inter-sectoral regulatory distortions, propitiated alternative associational paths of local business.     

Structural Transformation in Africa: Static Gains,Dynamic Losses

Abstract

This paper places recent growth and structural transformation in 11 Sub-Saharan African countries in historical and international perspective. During the early post-independence period, resources were reallocated to manufacturing activities with high productivity growth. Structural change stalled in the mid-1970s. When it resumed in the 1990s, workers mainly relocated to distributive trade services. Productivity levels in these activities were higher than in agriculture, enhancing overall economy performance. But services productivity growth was sluggish and increasingly falling behind the world frontier. These patterns are also observed in Latin America, but not in Asia.     

China's Politics and Bilateral Trade Linkages

Abstract

China's position in the world economy during the past half-century provides vital information for investigating the relation between politics and trade. Although there is a substantial number of studies in this area, the current study extends the literature in at least three ways: (1) it is one of the first studies that investigates the problem of a potential sample selection bias—as a result of the fact that countries taken up in the analysis are not randomly sampled from all countries in the world; (2) it considers third-country effects that follow from the fact that China's relation with any two countries is affected by the relation between these countries themselves; and (3) it tests the impact of five political arrangements simultaneously, which is more comprehensive than any former study. By using data as to 78 of China's trade partners over the 1950–2002 period, this study provides empirical evidence for the hypotheses that the establishment of diplomatic relations, cooperation, visits of heads of states and political system similarity are associated with greater trade flows. The hypothesis that member countries of a Preferential Trading Agreement have had smaller trade flows with China, which is no member of any of these Preferential Trading Agreements, is not supported by the results.     

Into the sea: capacity-building innovations and the maritime security challenge

Abstract

Maritime security capacity-building is a growing field of international activity. It is an area that requires further study, as a field in its own right, but also as an archetype to develop insights for capacity-building and security sector reform in other arenas. This article is one of the first to analyse this field of activity. Our empirical focus is on the Western Indian Ocean (WIO) region. Here, international actors have launched multiple capacity-building projects, initially in response to Somali piracy. We document the significance, extent and variety of capacity-building activities in this region and examine the ways in which capacity-building at sea has incorporated innovative characteristics that develop and expand the capacity-building agenda as traditionally understood. Our conclusion highlights the need to pay more attention to the maritime domain in international security and development studies and considers ways in which the maritime capacity-building experience may offer important lessons for other fields of international policy.     

How Dependent Are the Baltic States on Russia?

Abstract

This article explores the impact of international trade on private investment in the three post-Soviet Baltic states—Estonia, Latvia and Lithuania—by applying the business cycle synchronisation theory and highlighting the importance of big neighbours for small open economies. The study covers 1995–2015. The study shows that changes in the GDP growth of trading partners can have a greater effect on domestic private investment in small open economies than GDP changes in their own economies. The ongoing business cycle synchronisation between Russia and the Baltic countries means that the impact of Russia as a big neighbour remains an important issue for the latter.     

Intellectual Property Rights and the Potential for Universal Access to Treatment: trips,acta and hiv/aids medicine

Where hiv/aids is concerned, the twin goals of ‘zero new infections’ and an ‘aids-free generation’ are now, due to advances in treatment (and treatment as prevention), a realistic possibility. However, these goals can only be achieved through the scaling-up of treatment to the point of universal access. It is inevitable that the success of any scaling-up will be predicated on cost, particularly of hiv/aids medicines. This article argues that recent changes in the global intellectual property landscape—effected by way of bilaterally- and plurilaterally-negotiated trade agreements initiated by developed countries—jeopardise the target of universal access. Enhanced protection of international intellectual property rights increasingly poses a threat to the development of, and international trade in, generic medicines. Unless developing countries move to reinvigorate moribund multilateral institutions, particularly the wto, they will lose control of the intellectual property agenda, and thus the ability to impose an alternative vision regarding universal access.     

What if diasporas didn't think about development?: a critical approach of the international discourse on migration and development

Abstract

This paper explores the links between migration and development emphasized by international organizations. This discourse, which encourages migrants to work at their level, toward the development of their country has become consensual. But if one looks closely, these natural links seem fragile, both in international migration policies and social experiments of migration. By studying the case of the Togolese migration, this article shows that the institutionalization of this new paradigm is weak and that the recent implementation of migration policies in Togo just seems to be an answer to the requirements of international partners. More than a real programmatic issue, the role of the diaspora in development becomes an obligatory resource in negotiations with sponsors. Then, if the discourse on development began to emerge among migrants themselves, it is not necessarily synonymous with the growth of a strong culture of transnational or diasporic commitment. Few associative structures are actually created and migration trajectories and histories are first and foremost thought of in an individual or familial frame, far from social imperatives of community development. Finally, if we analyze the more general logic of these migrations in Togo, while they seem to foster identity transformations they may primarily function as a driving force behind reproduction of social inequalities in the country of origin.     

Inter-industry Productivity Spillovers: An Analysis Using the 1989–1998 Brazilian Trade Liberalisation

Abstract

A major obstacle in the estimation of inter-industry (vertical) productivity spillovers is the need of an exogenous productivity shock. In this article, I propose the use of trade policy changes as a large productivity shock, since the literature has found evidence that trade liberalisations increase industry-level productivity. To do so, I develop a new empirical methodology using spatial econometrics, and apply it to the large economy-wide shock represented by the 1989–1998 Brazilian trade liberalisation. My results indicate the existence of positive and substantial upstream productivity spillovers. Nevertheless, no evidence of downstream productivity spillovers is found.     

Mass destruction

How international organizations influence the domestic politics and foreign policies of states is often ignored in the study of international cooperation. This article develops an approach focusing on how states may influence the international agenda, which then shapes the position‐taking opportunities and constraints politicians face as they try to maintain their domestic political positions. This article is a preliminary exploration of how agenda setting works, what kinds of agenda‐setting strategies are available, and under what conditions agenda setting matters. Aspects of past secessionist crises will be used to clarify the discussion. The interaction between domestic position taking and international agenda setting will then be applied to the current crisis in Yugoslavia to determine why Greece, in particular, has been more influential than one might have expected.     

Ad hoc coalitions and institutional exploitation in international security: towards a typology

Abstract

While the increasingly thick web of global, regional and sub-regional security arrangements and institutions has received ample scholarly attention, the phenomenon of ad hoc military coalitions and how they impact these institutions has been relatively little explored. We examine ad hoc coalitions in international security responses and develop a tentative typology of military responses that takes ad hoc coalitions into consideration, where we differentiate in terms of institutionalisation and duration. Following a rational-choice institutionalist logic, we argue that institutional proliferation increases the chances of institutional exploitation. We illustrate this with how states apply a pick-and-choose approach in which institutional products but not frameworks are used. They use the interoperable forces, a common culture and mainstreamed doctrine, but not the formal deployment of rapid response mechanisms of eg the North Atlantic Treaty Organization and the African Union. In closing, we observe that institutional proliferation in international security facilitates a functionalist approach mainly inspired by national self-interest. Future research should examine whether this could result in dwindling relevance of international institutions, first in the domain of security, but later also in other domains.     

History,regionalism, and CARICOM trade: A gravity model analysis

Abstract

A gravity model is fitted to 17 annual cross sections, 1980–1996, of bilateral trade data (imports and exports) between CARICOM member states and selected trading partners. Specifically, the paper investigates the effects of regional integration, colonial legacies and linguistic ties on CARICOM bilateral trade flows between member states and between member states and North American and European Union countries. The empirical results indicate that history and regionalism have had significant and strong effects on CARICOM trade. Additionally, two traditional explanatory variables in gravity models, income per capita and population, have significant and positive effects on CARICOM trade while the distance between trading partners exerts the expected negative effect.     

Public funds for private enterprise: The international finance corporation 1

In a recent article Helleiner [1974: 351] argues that the Special Drawing Rights (SDR) scheme has operated in such a way as to transfer real resources from developed countries (DCs) to less developed countries (LDCs). Helleiner attempts to substantiate this claim empirically by examining the net acquisition of SDRs which has been made by DCs, and the net use of SDRs which has been made by LDCs since the SDR facility was established. In this article it is suggested that, although the SDR agreement has, indeed, served to create an ‘informal’ SDR/aid link, net use data taken at face value do not necessarily reflect the extent or nature of this informal link.     

Placing School Victimization in a Global Context

ABSTRACT

Although often considered to be safe havens, schoolhouses have a darker side: they are places where students are victimized. Research in the United States shows that students are victimized by various forms of misconduct, ranging from property-related crime (e.g., theft, destruction) to violent behavior (e.g., assault, homicide) in schools. Notably, international studies reveal that school victimization is a serious concern across the globe. In this context, the present study provides an overview of the extent and nature of school victimization from international perspective. Special attention is given to bullying, a form of victimization found across the globe. Important school-based prevention efforts developed outside the United States are discussed. Finally, this study raises awareness to another type of serious victimization—terrorist attacks—that are on the rise, particularly among nations located in the Middle East, Southeast Asia, and Africa.     

Terrorism and international political analysis∗

Abstract

The international spread of terrorism requires more careful study of its ability to influence the international order. Therefore, it is first of all necessary to distinguish the purposes for which terrorism is set up on the international level, also exactly assessing its actual transnational links. In this way, it will be possible to proceed toward a comparative analysis of terrorism in different regions of the international system. The purpose of such an analysis is to evaluate the influence that terrorism has, from the methodological standpoint, on the studies of the international system and, from the substantial standpoint, on the actual ability of terrorism to weaken that very system. Clarifying the implications of these aspects, the conclusion will be a reflection on the causal relationship that links terrorism and the international system; the former is a consequence of the nature of the latter, caused by the immobility of the international system, and hence by the blocked situation that faces anyone who wants to modify the international order.