Production networks,economic integration and the services sector: Implications for regional trade agreements in southern Africa

Debate on an appropriate framework for economic integration in southern Africa has hitherto focused largely on matters relating to trade in final goods, with little analysis of the potential benefits of production sharing and fragmented trade, or of challenges related to the accompanying role of the services sector. The first goal of this article is thus to explore the possible benefits for the development of specialisation and trade expansion related to the international fragmentation of production, and whether such benefits may be better harnessed by southern African countries in a context of regional integration. Secondly, the critical role of the services sector in production-sharing arrangements leads to questions about developing country services sectors and regional versus multilateral services liberalisation. The article therefore considers the importance of the services sector in the fragmentation context, and the growing debates surrounding services aspects of developing country regional trade agreements. It is argued that while there may be a case for the promotion of production-sharing arrangements in regional trade agreements in southern Africa, key constraints that continue to hinder the region's trade and development agenda remain the conflicting rules of origin in economic arrangements with overlapping membership, and non-tariff barriers to trade, particularly intra-regional transport costs.     

建立我国排污权交易法律制度的设想——从经济法理念与法经济学角度分析

排污权交易制度是经济法与环境法中一项新兴的法律制度,其中包容了经济法学、环境法学、法经济学等多门学科理论知识。阐述排污权交易制度所体现的经济法理念——可持续发展理念,以及从科斯定理等法经济学角度分析,有利于探讨在我国建立排污权交易法律制度的可能。     

Harmonious World and China’s Foreign Economic Policy: Features,Implications, and Challenges

Analysts oddly have neglected the foreign economic implications of China’s harmonious world and harmonious society doctrines. This article specifies the foreign economic policy effects of both, collectively termed harmonious world plus (HWP). It shows that HWP implies China’s continued integration into the global economic system, acceptance of the extant international economic order, and backing for increased cooperation and exchange, provided it is mutually beneficial. It further demonstrates that HWP implies support for global development, self-reliance, and multilateralism. Beyond this, the study reveals that HWP is likely to influence China’s interactions with international economic institutions, foreign investors, and its international resource dealings. Generally speaking, this article shows that China is making progress adhering to most of the tenets of HWP, though there are some areas for concern. It also reveals that convergences and divergences between HWP and China’s actual policies are attributable to national interests, China’s limited capabilities, and domestic politics. Jean-Marc F. Blanchard is associate director of the Center for U.S.-China Policy Studies and associate professor in the Department of International Relations at San Francisco State University (SFSU). He also is a Board Member of and Research Director for the Association of Chinese Political Studies. Dr. Blanchard’s research interests include China’s integration into the global economic system, China’s interactions with multinational corporations, Chinese multinational corporations, Sino-Japanese relations, and Chinese territorial and maritime issues. He is a co-editor of Harmonious World and China’s New Foreign Policy (Lanham: Lexington Books, 2008), a co-editor of and contributor to Power and the Purse: Economic Statecraft, Interdependence, and National Security (London: Frank Cass, 2000), and the author of 20 book chapters and refereed journal articles.     

Economic Inequality and Democratic Political Engagement

What effect, if any, does the extent of economic inequality in a country have upon the political engagement of its citizens? This study examines this question using data from multiple cross‐national surveys of the advanced industrial democracies. It tests the theory that greater inequality increases the relative power of the wealthy to shape politics in their own favor against rival arguments that focus on the effects of inequality on citizens' objective interests or the resources they have available for political engagement. The analysis demonstrates that higher levels of income inequality powerfully depress political interest, the frequency of political discussion, and participation in elections among all but the most affluent citizens, providing compelling evidence that greater economic inequality yields greater political inequality.     

Impacts of land and agricultural commercialisation on local livelihoods in Zambia: evidence from three models

By examining three different models of commercial agriculture – a plantation, a commercial farming area, and an out-grower scheme – we observe heterogeneous impacts on different segments of rural communities. Each produces gender and generational differentials in employment and other income-earning opportunities. Our study supports the hypothesis that the plantation model typifies the ‘enclave’ economy that is poorly integrated into the surrounding communities and the local economy. While out-grower schemes have often been favourably compared to plantations, our evidence on the Magobbo sugarcane out-grower scheme points to the contrary: its block farming model consolidates smallholdings and creates a peasant-shareholder class. Shareholder ‘out-growers’ receive dividends from what is essentially an extension of the plantation. This accumulation for a few also produces land scarcity and fragile semi-proletarianised livelihoods for others. By contrast we find that the commercial farming model, while based on an elite form of large-scale commercial farming, does provide benefits to surrounding areas, through employment and local economic linkages.     

A middle power’s trade policy under U.S.-China FTA competition: South Korea’s double hedging FTA diplomacy

Existing studies on the roles and foreign policies of middle powers place too much focus on their security policies, while there is a dearth of scholarship on their trade policies. Middle powers have used free trade agreement (FTA) politics not only to obtain economic benefits through trade expansion, but also to achieve broader foreign policy goals. Given the U.S.-China FTA competition in East Asia, as a middle power, South Korea, has developed double hedging FTA diplomacy by supporting both powers’ FTA initiatives in order to avoid potential conflicts and maintain favourable relationships with both powers. Specifically, Korea has tried to maximize its national interest and, furthermore, to maintain regional stability by establishing two bilateral FTAs, the Korea-U.S. FTA and the Korea-China FTA, and by showing interest and participating in larger FTA discussions, such as the US-led Trans-Pacific Partnership and the China-led Regional Comprehensive Economic Partnership.     

Participation in hard times: how constrained government depresses turnout among the highly educated

Existing studies on electoral turnout in times of economic crisis have predominantly focused on disadvantaged voters. However, during the recent economic crisis, turnout among highly educated citizens has strongly declined as well. Existing resource-based theories of political participation cannot account for this. This article suggests that the anticipation of government inefficacy is an important driver of abstention among highly educated. Where governments are severely constrained, these citizens anticipate that the hands of future governments will be tied. Hence they are more likely to abstain out of frustration or rational calculations. The study uses the recent economic crisis as test case, as it entails particularly acute constraints on several European governments. The cross-sectional and longitudinal evidence – based on ESS survey data and different measures of government constraint in 28 European countries – provides ample support for the argument.     

Income inequality and party (de)polarisation

Scholars of US politics report a strong connection between income inequality and party polarisation. This study evaluates this relationship comparatively, and finds that the opposite association holds outside the United States, namely, that increasing inequality depolarises political parties’ economic positions. High levels of inequality change the composition of the core constituencies on the left and depress the participation of low-income voters, leaving left-wing parties with less support when they adopt distinct leftward positions. At the same time, inequality does not create strong incentives for right-wing parties to move further rightward. Therefore, income inequality leads to party systems that are depolarised on economic issues. The results have implications for our understanding of political representation, economic inequality, and political polarisation.     

Decentralised governance and empowerment of county governments in China: betting on the weak or the strong?

Decentralised economic development initiatives empowering local governments have gained currency in both developed and developing contexts. The empowerment of county governments in China is a case in point. This study uses difference-in-differences (DID) and the fixed-effects model with panel data (1997–2008) in counties in Zhejiang Province to empirically investigate the different impacts of the empowerment reform on county economies and fiscal revenue (FR). The results reveal that the reform has not promoted county economies as expected but has significantly increased FR. The reform has had a larger impact on less developed counties than on developed ones, which suggests a positive outcome of this decentralisation policy in China with regard to revenue generation. This study on county empowerment in Zhejiang Province provides some policy implications for other regions in China or developing countries.     

Policy design and domestic support for international bailouts

Financial bailouts for ailing Eurozone countries face deep and widespread opposition among voters in donor countries, casting major doubts over the political feasibility of further assistance efforts. What is the nature of the opposition and under what conditions can governments obtain broader political support for funding such large‐scale, international transfers? This question is addressed by distinguishing theoretically between ‘fundamental’ and ‘contingent’ attitudes. Whereas the former entail complete rejection or embrace of a policy, the latter depend on the specific features of the policy and could shift if those features are altered. Combining unique data from an original survey in Germany – the largest donor country – together with an experiment that varies salient policy dimensions, the analysis indicates that less than a quarter of the public exhibits fundamental opposition to the bailouts. Testing a set of theories on contingent attitudes, particular sensitivity is found to the burden‐sharing and cost dimensions of the bailouts. The results imply that the choice of specific features of a rescue package has important consequences for building domestic support for international assistance efforts.