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.

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.

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.

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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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.

Outside and inside competition for international organizations—from analysis to innovations

The analysis of the competitive environment of international organizations has been neglected in scholarly research. Both the external and the internal type of competition in international organizations are rather weak and their performance is far from ideal. To strengthen both types of competition, several tentative proposals are advanced. They range from the introduction of an international competition agency, competition rules, a monitoring institute, voucher systems, matching contributions, popular participation rights by citizens to the use of prediction markets and institutionalized devil’s advocates. These proposals are put forward to stimulate discussion and to advance new ideas about the design of international organizations.

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.

Congressional voting on funding the international financial institutions

The United States is the largest contributor to the International Monetary Fund (IMF) and the World Bank, providing resources in exchange for voting power in these international financial institutions (IFIs). While the Treasury Department manages the day-to-day aspects of US participation in these institutions, Congress retains authority on funding. With the aim of understanding the microincentives of US support for the IFIs, I analyze congressional voting on bills to fund the IFIs. I argue that members of congress are more likely to support a funding increase (1) the more “liberal” their ideology, (2) the larger the share of campaign contributions they get from banks that specialize in international lending, and (3) the larger the share of voters that gain from economic globalization that reside in their districts. Statistical analyses of voting on five IFI funding bills since 1977 provide support for these arguments.

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Electronic supplementary material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.

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.

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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‘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.

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.

The governance of the World Bank: Lessons from the corporate sector

The World Bank Group (WBG) is a multilateral organization as well as a large financial conglomerate. The debate on its governance, however, has mainly focused on how to ensure more inclusive decision-making by strengthening the voice and representation of its entire membership. The WBG’s governance as a set of arrangements that enable the principal (shareholders) to oversee the agent (management) has so far been overlooked, even though the adequacy of such arrangements is relevant in all institutions wherein shareholders delegate to management the achievement of organizational objectives. In reviewing the institutional, historical, and current underpinnings of the WBG’s decision-making, we elaborate on the extent to which the Group follows best-practice corporate governance standards that have been designed with the aim of improving shareholders’ oversight. Drawing from a methodology developed by the IFC, an entity of the WBG, we analyze the Group’s internal governance, highlighting which aspects are furthest from (or closest to) current financial-sector best practices. In so doing, we provide a framework for prioritizing the most critical areas in which the WBG’s governance falls short of private-sector standards, and we identify the nature of possible remedies.

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 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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Success in slow motion: The Europeanization of Romanian child protection policy

This paper analyzes the influence of the European Union (EU) through a qualitative case study of child protection policy in Romania. This is a particularly tough case for the growing “Europeanization” literature. Prior research has called attention to several factors that promote Europeanization, including the presence of a pro-reform domestic coalition, the clarity and consistency of the EU’s own legislative targets, a state’s own prior involvement in the setting of European standards, a strong consensus among EU member states backing the European position, and strong non-European support for EU initiatives. According to these propositions, Romanian child protection seemed to provide a worst case scenario for Europeanization, as initially none of these conditions held. And yet the paper shows that substantial Europeanization occurred anyway. We argue that the EU experienced a very slow start with Romania but that it cultivated an opposition that responded to EU initiatives when that opposition took power. Moreover, the EU found three “workarounds” to the obstacles just noted: it asserted legislative targets it did not possess itself, invented new policy tools, and drew protection for its most controversial policy from another international organization, the ECHR. Our central theoretical claim is that external pressure requires internal accommodation in order to have lasting effects. The claim has important implications for the diffusion and conditionality debates.

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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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.