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6071. Application of System Dynamics in the Process of Sharing Military Capabilities

Author:
Antonín Novotný and Dalibor Procházka
Publication Date:
04-2015
Content Type:
Journal Article
Abstract:
The article describes the application of system dynamics in the process military capabilities sharing of the Czech Republic with Alliance allies. The aim is not to capture the problem in all its aspects, but is focused on the process of multinational capabilities sharing with accent for the Army of the Czech Republic, which has been suffer in the last few years the reduction in the defence spending. Czech Republic gradually came with its defence budget into the group of countries that profit from its membership in NATO, but without its own contribution for developing of its military capabilities. The basic precondition for the capability and readiness of the Alliance to face current and new security challenges, is the necessity to have adequate capabilities. For achieving this goal is essential higher and more responsible involvement the European countries of the Alliance for collective defence, including the Czech Republic. Ongoing Ukrainian crisis and the behavior of the Russian Federation represent a fundamental change in the security environment in Europe and therefore changing the assumptions on which the Alliance is preparing to fulfil tasks. Solving problems in capabilities can be achieve by properly-designed investments in upgrading, by improving NATO defence planning process and accordance with national defence planning process, by consistent execution capability targets that this process generates, but also by use of multinational capabilities sharing. Pooling and sharing capability among individual member states can have a significant impact on the way, how to replace the missing defence sources or how to effectively use increasing of defence budgets, which the Alliance, including the Czech Republic, declared at the summit in Wales.
Political Geography:
Europe and Ukraine

6072. Editorial

Publication Date:
04-2015
Content Type:
Journal Article
Abstract:
Dear readers, Please, let me introduce another issue of the Obrana a strategie journal, bringing an above-average number of attractive texts, which attests to the growing interest of authors and readers in our journal. Before briefly introducing its contents, I would like to point out some of the currently implemented or prepared changes, which will affect the Obrana a strategie journal in 2015. In order to increase the attractiveness of our periodical, we are preparing modernisation of its visual style for the following year. Similarly, the Guidelines for Authors have been also updated. The most important change which will affect all prospective contributors consists in updating the templates for contributions, which have been completely revised, adjusted and simplified. The second important change is the discontinuation of the Forum, mainly due to the low interest of authors in this feature, allowing for maximum share of the peer-reviewed content of the journal and better accessibility for foreign databases. The contents of this issue start with two articles related to Africa.
Political Geography:
Europe

6073. Moving beyond a Donor-Recipient Relationship? Assessing Partnership in the Joint Africa-EU Strategy

Author:
Karen del Biondo
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
The Kolleg-Forschergruppe (KFG)
Abstract:
The Joint Africa-EU Strategy (JAES), which was adopted in 2007, aimed to break with the traditional do¬nor-recipient relationship between the EU and Africa and to develop a true partnership. The concept of partnership has been central in EU-Africa relations ever since the Lomé Agreement (1975), but many have argued that it has been eroded by conditionalities and the end of special trade preferences. Ideally, a partnership is characterized by shared values, equality and trust, but are these principles reflected in the JAES? This study investigates this question by focusing on the thematic partnerships on peace and security and democratic governance and human rights. The paper argues that, despite the power asymmetries between the EU and Africa, the JAES has been characterized by equality in decision-making and by African ownership in capacity-building. However, while the JAES may objectively be based on shared values, the EU and the AU have often differed on how to apply those values in concrete situations, more particularly on the question which type of intervention is acceptable (conditionality, military intervention, etc.). Moreover, the analysis identifies a general feeling of mistrust amongst both parties in the partnership.
Topic:
Security, Human Rights, and Governance
Political Geography:
Africa and Europe

6074. Building the ASEAN Center for Humanitarian Assistance and Emergency Response. Is ASEAN Learning from the Experience of the European Civil Protection Mechanism?

Author:
Angela Pennisi di Floristella
Publication Date:
01-2015
Content Type:
Working Paper
Institution:
The Kolleg-Forschergruppe (KFG)
Abstract:
Why, following the EU's first attempts at advancing community cooperation in civil protection and the creation of the EU civil protection mechanism, has ASEAN undertaken new initiatives, such as the adoption of a legally binding accord, AADMER and a formal institution, the AHA Center, largely comparable to the institutional innovations endorsed by the EU, in the same issue area? Can these developments be interpreted simply as the result of independent decision-making by ASEAN or are they at least a partial outcome of a transfer process? The aim of this study is to contribute to the emerging debate on European influence in Southeast Asia, taking into account how processes of policy and institutional transfer may lead ASEAN's region builders to learn from the EU's experience. Specifically, by discussing the case of disaster management, which has remained largely unexplored by comparative IR literature, this study argues that independent problem solving does not offer an adequate explanation of ASEAN's developments. Conversely, lesson drawing and emulation are suggested as the two most relevant underlying mechanisms which can explain the gradual and selective adoption of an EU-like model of disaster cooperation.
Political Geography:
Europe and Asia

6075. The Shadow Banking System of China and International Regulatory Cooperation

Author:
Zheng Liansheng
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
The shadow banking system was defined in 2007 by Paul McCulley, the managing director of Pacific Investment Management Company, but it began to receive significant attention in the immediate aftermath of the GFC. Since the beginning of the financial crisis in 2008, the regulatory agencies of different countries, international organizations and think tanks have all carried out in-depth research into shadow banking and have released a series of results. Regulatory reforms have also addressed shadow banking, the most important of which is the US Dodd-Frank Act of 2010, which aims to restrain the expansion and risk taking of shadow banking in the United States. The United Kingdom and the European Union have also adopted reforms and built up a supervisory system to track the risks of the shadow banking system.
Topic:
Financial Crisis
Political Geography:
United States, China, United Kingdom, and Europe

6076. Understanding Digital Intelligence and the Norms That Might Govern It

Author:
David Omand
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
This paper describes the nature of digital intelligence and provides context for the material published as a result of the actions of National Security Agency (NSA) contractor Edward Snowden. Digital intelligence is presented as enabled by the opportunities of global communications and private sector innovation and as growing in response to changing demands from government and law enforcement, in part mediated through legal, parliamentary and executive regulation. A common set of organizational and ethical norms based on human rights considerations are suggested to govern such modern intelligence activity (both domestic and external) using a three-layer model of security activity on the Internet: securing the use of the Internet for everyday economic and social life; the activity of law enforcement — both nationally and through international agreements — attempting to manage criminal threats exploiting the Internet; and the work of secret intelligence and security agencies using the Internet to gain information on their targets, including in support of law enforcement.
Topic:
Security, Economics, and Government
Political Geography:
Europe

6077. The Influence of RMB Internationalization on the Chinese Economy: Theory and Policy

Author:
Fan He and Qiyuan Xu
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
With a balance between radicalism and gradualism, renminbi (RMB) cross-border settlement covers all of the items in China's balance of payments (BoP), including financial accounts, although some of these accounts are still controlled by means of quotas and administrative approval. By the end of the first quarter in 2014, the amount of RMB trade settlement had reached ¥11 trillion since the pilot scheme was launched in July 2009. RMB cross-border settlement has become increasingly important for monetary authorities in terms of macroeconomic policy frameworks. This is especially the case with the more sophisticated conditions in global monetary markets, which result not only from the nontraditional monetary policies employed by the European Central Bank and the Bank of Japan, but also the ongoing quantitative easing (QE) tapering by the US Federal Reserve and the spillover effects on emerging economies. It is increasingly important to evaluate the potential influence of RMB internationalization on China's macroeconomy. A framework, which includes monetary supply and demand, was created to analyze the influences of RMB cross-border settlement on China's domestic interest rate, asset price and foreign exchange (forex) reserves. RMB settlement behaves in different ways with the various items in BoP, such as imports, exports, foreign direct investment (FDI), overseas direct investment (ODI), RMB Qualified Foreign Institutional Investor (RQFII), RMB Qualified Domestic Institutional Investor (RQDII) and cross-border loans. It was found that RMB settlement in different items leads to different effects on China's economy. For RMB export settlement, RMB overseas direct investment (RODI) and RQFII at the initial stage, RMB settlement does not affect China's interest rate and asset price. In addition, more favourable to the People's Bank of China (PBoC), foreign exchange reserves increase less with these reforms; therefore, they should be promoted with priority. However, it is necessary to stress that all settlements should be based on real transactions in order to prevent fake exports. For RMB import settlement, RODI and RQDII at the initial stage, these pilot schemes exert influences on China's economy through interest rate changes, causing an additional increase of forex reserves. Although other short-term items in the financial account could also impact the interest rate, the items in this group are either based on real business such as trade and investment or on financial transactions at the initial stage on a small scale. Therefore, this group has a relatively moderate influence on the interest rate. It is important to remember that this negative by-product is a result of the assumption that the PBoC targets exchange rate stability. If the PBoC sets the exchange rate system to be flexible enough, then such pilot schemes will not cause an increase of forex reserves. It is thus essential to advance exchange rate regime reforms to keep up with the steps of RMB internationalization. With the progress in RQDII and RQFII, the endorsement of issuing dim sum bonds for capital backflows and with the increase in lending from the offshore to the onshore market, these types of RMB cross-border settlements will not exert pressure on forex reserves; however, they do have an impact on the money market. If the amount of RMB flowing through these items is large enough, the interest rate and asset price will be significantly affected, and could be in conflict with the intended monetary policy. These types of transactions are the most risky to monetary authorities; therefore, they should be cautious regarding these items. In the short term, RMB settlements in these kinds of items should be regulated with quotas. In the medium to the longer term, these items should be opened in a gradual way.
Topic:
Foreign Exchange and Monetary Policy
Political Geography:
Japan, China, and Europe

6078. The Risk of OTC Derivatives: Canadian Lessons for Europe and the G20

Author:
Chiara Oldan
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Over-the-counter (OTC) derivatives played an important role in the buildup of systemic risk in financial markets before 2007 and in spreading volatility throughout global financial markets during the crisis. In recognition of the financial and economic benefits of derivatives products, the Group of Twenty (G20), under the auspices of the Financial Stability Board (FSB), moved to regulate the use of OTC derivatives. Although a number of scholars have drawn attention to the detrimental effects of the United States and the European Union (EU) to coordinate OTC reform, this overlooks an important aspect of the post-crisis process: the exemption of non-financial operators from OTC derivative regulatory requirements. Critically, they remain exempt under existing legislation regardless of the risks they continue to pose through unreported trades and counterparty risks to financial firms; there is still uncertainty around the pricing of derivatives (i.e., model risk) for non-financial operators that could pose a risk to the financial system. Nevertheless, the lack of coordination between the United States and European Union is detrimental for consistency and coherence among financial sectors. These, and similar inconsistencies in financial regulation, pose risks of conflict and fragmentation that should soon be addressed by the G20. The paper concludes by discussing what lessons can be learned from Canada, after it successfully avoided the worst of the crisis and contained the systemic risks posed by OTC derivatives before and after it.
Political Geography:
United States, Europe, and Canada

6079. Integrity of Public Officials in EU Countries: International Norms and Standards

Author:
Gillian Dell, Albena Kuyumdzhieva, and Ádám Földes
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Transparency International
Abstract:
Good governance and good administration are among the core pillars that form the foundations of the European governance system. The principles of transparency and openness along with the right of citizens to receive impartial, fair and timely administrative services are embedded in the Founding Treaty of the EU and in the EU Charter of Fundamental Rights (EU ChFR). These principles are identical to the ones stipulated in the Universal Declaration of Human Rights and the Council of Europe's (CoE's) Convention for the Protection of Human Rights and Fundamental Freedoms.
Topic:
Human Rights
Political Geography:
Europe

6080. From Wales to Warsaw: NATO's Readiness Action Plan

Author:
Douglas Lute
Publication Date:
05-2015
Content Type:
Journal Article
Institution:
Council of American Ambassadors
Abstract:
At the North Atlantic Treaty Organization (NATO) Summit in Wales on September 4-5, 2014, NATO leaders were clear about the security challenges on the Alliance's borders. In the East, Russia's actions threaten our vision of a Europe that is whole, free, and at peace. On the Alliance's southeastern border, the Islamic State of Iraq and the Levant's campaign of terror poses a threat to the stability of the Middle East and beyond. To the south, across the Mediterranean, Libya is becoming increasingly unstable.
Topic:
NATO
Political Geography:
Europe, Middle East, and Libya