Playing the Diversity Card: Saudi Arabia’s Foreign Policy under the Salmans

ABSTRACT

Since the 2003 regime change in Iraq and the 2011 Arab uprisings, the political map of the Middle East has been in flux. Regional actors have taken advantage of emerging windows of opportunity, which have affected the outcome of this process. Saudi Arabia’s role as an aspiring regional hegemon in the region is salient: the country’s assertive course in shaping its neighbourhood coincides with a more independent foreign policy that goes beyond the traditional US alliance and seeks to diversify its international partners. This diversification of Saudi foreign policy since the ascension to the throne of King Salman in 2015 is explained by using the IR concept of hedging.     

Coercive Assets? Foreign Direct Investment and the Use of Economic Sanctions

How does foreign direct investment (FDI) affect the use of economic coercion? This article argues that while FDI matters, the effect depends on the entry mode of the FDI. The economic interdependence created by FDI does not have a monotonic effect on economic statecraft because the relative costs incurred by economic disruption differ depending on the forms of foreign investment. In particular, the FDI that creates wholly-owned subsidiaries (for example, cross-border mergers and aquisitions) imposes greater costs to the sender's firms than cross-border joint ventures with local partners, while FDI through joint ventures incurs greater costs for the host than the home country and its firms. By utilizing US sanction episodes from the Threat and Imposition of Economic Sanctions (TIES) dataset, the empirical analysis supports the argument. The results show that economic sanctions are less likely to occur as the share of FDI through cross-border mergers and acquisitions increases.     

Conditional on Conditionality: IMF Program Design and Foreign Direct Investment

The article explores how International Monetary Fund (IMF) program design influences foreign direct investment inflows. The author argues that stricter IMF conditionality signals a program-participating government's commitment to economic reforms, as it incurs larger ex ante political cost and risks greater ex post political cost. Thus, the catalytic effect of an IMF program is conditional on conditionality: programs with stricter conditions catalyze more foreign direct investment than those with less stringent conditions. Empirical analysis of the IMF conditionality dataset supports the argument and shows that after accounting for IMF program participation, the more structural conditions included in an IMF program, the more foreign direct investment flows into the country.     

RECOGNITION AND ENFORCEMENT OF JUDGMENTS BETWEEN CHINA,JAPAN AND SOUTH KOREA IN THE NEW ERA: SOUTH KOREAN LAW PERSPECTIVE

This article discusses the rules for recognition and enforcement of foreign judgments in the Republic of Korea (hereinafter referred to as “South Korea” or “Korea”). Articles 217 and 217-2 of the Civil Procedure Act of Korea and Articles 26 and 27 of the Civil Enforcement Act of Korea provide for the recognition and enforcement of foreign judgments respectively. Korea has not entered into any bilateral or multilateral treaties regarding the recognition and enforcement of foreign judgments and is not a party to the Convention on Choice of Court Agreements. The article also considers the current undesirable status of recognition and enforcement of judgments in the region consisting of China, Japan and South Korea (hereinafter referred to as “Region”) and suggests a course of action to be taken to improve the situation. The author believes that the experts of the Region should embark upon a project to improve the current situation and that the first step should be to exchange and gather information on the current legal regime of the countries in the Region on the recognition and enforcement of judgments. The author looks forward to future cooperation among the experts in the Region on this topic and is confident that the reciprocity requirement, which currently is a major obstacle to the mutual recognition and enforcement of foreign judgments in the Region, will be overcome in the near future.     

THE KOLMAR V. SUTEX CASE ON RECIPROCITY IN FOREIGN JUDGMENTS ENFORCEMENT IN CHINA: A WELCOME DEVELOPMENT OR STILL ON THE WRONG TRACK?

In December 2016, the Nanjing Intermediate People’s Court in China issued its ruling in the Kolmar v. Sutex case, where a monetary judgment from Singapore was recognized and enforced against a local textile company. The case confirms that once a foreign country has taken the initiative, Chinese courts will follow up to enforce judgments from that country reciprocally. This is the doctrine of de facto reciprocity adopted by some Chinese courts. The paper surveys the judicial practice of Chinese courts and finds that this area of law is full of confusion and uncertainties due to the lack of applicable rules. Recent developments suggest that China may move away from this approach and adopt a relaxed version of reciprocity, which is worthy of close attention.     

Retrospection and Perspective of Foreign Investment Legislation in China (1979–2009)

Thirty years have passed for foreign investment legislation in China since the promulgation of the first foreign investment law in 1979. The remarkable achievements in the past 30 years under the China’s reform and open policy have benefited from introduction of foreign investment to a large extent as the result of foreign investment legislation and its changes. This paper starts with a retrospection of foreign investment legislation in China since 1979, followed by a discussion on the features and motives of changes in such legislation, and makes conclusions on the experience and lessons from the legislation, which will be conducive to further improvement of foreign investment legislation in China.     

The New Geo-Economics of a “Rising” India: State Transformation and the Recasting of Foreign Policy

With a focus on India, and drawing on critical scholarship on geo-politics and geo-economics and “relational” state theories, this article examines the ways in which ideational and material processes of state transformation have shaped India’s international engagement in different periods. Prior to 1991, geo-political social forms linked to a national developmentalist state project shaped India’s engagement with global and regional multilateralism and the nature of this engagement fluctuated according to shifts in the legitimacy and viability of this state project. The erosion of the developmentalist state project from the 1970s laid the path for a deeper shift in the national social order in the 1990s with the recasting of statehood wherein India’s future was thought to be best secured through policies of economic openness, growth and competitiveness. This shift in India’s state project has given rise to new forms of global and regional engagement that are distinct to older forms of international engagement and reflect and further processes of state transformation in India. This is illustrated through a case study on energy policy.     

Where in the world is South Africa? Lecture by Ambassador Tony Leon 14 February 2013

Most of the current constructs which theoretically underpin foreign policy for this country are either overblown or incoherent; they do not appropriately define or advance or prioritise South Africa's national interests abroad, nor do they acknowledge the tensions embedded in the clash between normative policies and realpolitik. Drawing from ‘real time’ experiences in international diplomacy, this lecture explores some of the dilemmas that South Africa, as a middle-range power in the world, confronts in its international engagements. The cost-effectiveness of South Africa's global projection is also examined, and some practical reforms to achieve better results in the current age of austerity suggested.     

ANC foreign policy making during the Mbeki period: More democratic or less?

The African National Congress, as an entity distinct from government, served during the 1994–2008 period as an independent forum for debate about South Africa's foreign policy, particularly in the National Executive Committee's Subcommittee on International Relations. This debate retained the oligarchic character of the movement in exile, with few voices – Thabo Mbeki's most prominent among them – dominating the discussion, inputs from subnational party structures almost non-existent, and dissenters expected to keep quiet publicly. That said, participants in these discussions largely dismissed characterisations of Mbeki as a dictator in the foreign policy debate, noting that the predominance of his views stemmed mostly from his strong argumentation and knowledge rather than bullying. Senior ANC leaders also claimed that limited interest in foreign policy, outside of national party structures, hindered efforts to broaden participation in foreign policy formulation.     

Asymmetry as context: The rollercoaster of South Africa–US relations post 1994

The United States pictured a bright future with a strategic country when the new South African government took power in 1994. They envisioned a strong partnership in political, economic and security realms. The bilateral relationship did not turn out to be as easy as many in America might have envisioned. Despite notable camaraderie during the Mandela–Clinton administrations, there was a considerable downward swing in US–South African relations during the Bush administration. This situation has since appeared to reverse itself during the current Obama and Zuma administrations. This paper, through the lens of ‘asymmetry theory’ as developed by Brantly Womack, seeks to shed light on how a rollercoaster relationship such as this can go through such fluctuations and not end in extreme tension.