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2881. How to Negotiate Over Trade: A Summary of New Research for Developing Countries

Author:
John S. Odell and Antonio Ortiz Mena L.N.
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
Developing country governments frequently negotiate with other governments over trade issues. Most developing countries are now members of the World Trade Organization (WTO) and many of the rest are negotiating to join it. In the Doha Development Agenda, members find themselves facing multilateral talks of daunting complexity. The issues range from established ones such as market access, to the revision of WTO rules on antidumping, subsidies, and dispute settlement, to controversies over proposed new rules on investment and competition policies. Sometimes governments also negotiate to settle legal disputes about members' compliance with existing rules. Many are simultaneously negotiating new regional and bilateral pacts as well. This paper provides an advance summary of a research project developed by a group of scholars in 2003 to address the need of many developing countries to improve their capacity to participate effectively in trade negotiations.
Topic:
Development, Economics, Government, and International Trade and Finance

2882. Las bases internas de la política exterior: realidades y retos de la apertura económica y la democracia

Author:
Guadalupe González González
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
The purpose of this paper is to analyze the links between economic liberalization, democratization and foreign policy using the Mexican experience as a case study. The paper revolves around three major concerns: a) the change in the role and place of foreign policy in the context of an open economy and a democratic regime, compared with the previous period of a closed economy and an authoritarian regime; b) the impact of economic liberalization and democratization on the formulation, agenda and orientation of foreign policy; c) the effects of the new economic, political and social internal configuration on the international position of Mexico and its negotiating capacity vis a vis the world. This work documents an increase in the level of activity and interest shown by numerous social, governmental and bureaucratic actors in foreign policy issues as a consequence of economic openness and democratization of the political regime, which leads towards a greater politization of the issue area. The main argument is that the deficits in economic and social development, democratic consolidation and governability, negatively affect the country's credibility and its negotiating capacity vis a vis the world.
Topic:
Foreign Policy, Democratization, Development, and Economics
Political Geography:
Mexico

2883. Tendencias y patrones de la cooperación internacional para el desarrollo económico

Author:
Arturo C. Sotomayor
Publication Date:
08-2005
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
This paper provides a literature review and explores the evolution of official development aid (ODA) in the past decade. The main empirical puzzles that guide this research are: how has foreign development aid or ODA evolved historically within the broader framework of international cooperation? Who are the main ODA contributors? What countries provide more foreign aid in terms of their gross domestic product? What motivations drive ODA contributions? Which developing countries benefit the most from foreign aid?
Topic:
Development, Economics, Humanitarian Aid, and Politics

2884. Getting to “No”: Defending Against Demands in NAFTA Energy Negotiations

Author:
Antonio Ortiz Mena L.N.
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
How can a developing country defend itself against unwanted demands in international economic negotiations, especially when the demandeur is a stronger state? Such defense can be a necessary component of any strategy, not only a distributive one but also a mixed strategy aimed at a wider agreement that benefits both sides. Sometimes what looks like an unwelcome demand turns out, after exploration and exchanges of concessions, to be an acceptable element in a beneficial package deal. But some demands are unwelcome in the stronger sense that one's government places an infinite reservation value on that particular issue. The government would prefer no agreement. In the case of a deal breaker, the delegation can walk away from the entire negotiation, but this could have large costs in opportunities foregone and even possible penalties imposed. What are the alternatives short of walking away? Mexico's negotiators faced such situation in the North American Free Trade Agreement (NAFTA) negotiations with the United States and Canada (1990-1992), specifically in the energy sector. In general the three states sought a mutual-gains agreement, and in general each employed a mixed strategy. In energy, however, Washington made demands--regarding investment and supply commitments--which Mexico found unacceptable. At the end of the day the Mexican team managed to attain its main offensive negotiation aims in NAFTA (significantly improved market access, faster tariff reductions in the U.S. and Canada than in Mexico, and an effective dispute settlement mechanism), as well as the main defensive ones in energy. How did they do it? Structural conditions, such as being a neighbor of the U.S., gives Mexico certain leverage in negotiations, for the U.S. will typically take into account non-economic considerations when negotiating over economic issues. Nonetheless, many lessons derived from Mexico's negotiation strategy in energy negotiations during NAFTA can be applied across a range of cases.
Topic:
Development, Economics, Energy Policy, and Government
Political Geography:
United States, Washington, Canada, North America, and Mexico

2885. What Role for Learning? The Diffusion of Privatisation in the OECD and Latin American Countries

Author:
Covadonga Meseguer
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
In this paper, I enquire whether 37 governments in industrial and in Latin American countries privatised as a result of learning from experience. Using a rational updating model, I examine whether the decision in the 1980s and 1990s to streamline the public sector was the outcome of a revision of beliefs about the effectiveness of privatisation or whether, alternatively, it was triggered by international pressures or mimicry. The results suggest that rational learning and especially emulation were two important factors in the decision to privatise. International pressures, here proxied by the presence or absence of an agreement with the International Monetary Fund and by European Union membership, are irrelevant to explanations of the decision to privatise. Finally, domestic political conditions appear relevant to the decision to launch privatisation but only when the analysis is carried out for each of the regional sub-samples. In the OECD countries, centre-left governments were more likely to privatise whereas in Latin American more repressive regimes were more willing to divest.
Topic:
International Relations, Development, and Government
Political Geography:
Latin America

2886. What is New in the Study of Policy Diffusion? A Critical Review

Author:
Fabricio Gilardi and Convadonga Meseguer
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
This paper surveys what is new in the study of the international diffusion of policies and institutions. We critically review the most recent contributions on the topic, trying to identify the substantive and methodological novelties in this literature. Regarding mechanisms, we argue that whereas there is acknowledgement that they overlap, there is hardly any attention to the way in which they interact (either with other mechanisms of diffusion or with domestic factors). More generally, mechanisms are studied separately and are not integrated into a coherent model of diffusion. Regarding empirics, we argue that existing studies have concentrated on policies that seem to have diffused in an explosive way despite the fact that both theory and methods are appropriate to study any type of diffusion. We argue that new empirical work should tackle the difficult issue of how to better operationalize alternative diffusion mechanisms. More attention should also be given to modeling diffusion processes to account for the fact that causal patterns may be highly heterogeneous in time and space. Finally, we show that the last wave of studies on diffusion may have had the unintended consequence of opening up new questions. Some of these questions are about the mechanisms that initiate vs. accelerate the diffusion of policies and institutions, why policies diffuse in clusters rather than globally, why some policies diffuse faster than others and why some policies do not diffuse at all.
Topic:
International Relations, Foreign Policy, and Development

2887. Erez Industrial Estate Pilot Study: An Implementation Plan

Author:
Jocelyn Brooks
Publication Date:
08-2005
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
A previous study by the East West Institute in April 2005 concluded that industrial estates offer promising opportunities for economic rehabilitation, employment regeneration, the development of export-based industries, and provide a focal point for domestic and international investment in the Palestinian Territories.
Topic:
Development, Economics, and Government
Political Geography:
Middle East and Palestine

2888. The Erez and Gaza Industrial Estates: Catalysts for Development

Author:
Aiman Mackie
Publication Date:
05-2005
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
The political and economic landscape in the Middle East is changing in ways that would have been hard to imagine months ago. With changes in governments, the near cessation of violence, the more active reengagement of the United States in the peace process, and various positive signals from both sides, including direct meetings between Israeli Prime Minister Ariel Sharon and Palestinian President Mahmoud Abbas, the longstanding conflict between Israelis and Palestinians is entering a period of relative optimism. Recent indications are that the Palestinian Authority is ready to work jointly with five parallel working groups being set up by the Government of Israel to address different aspects of the planned disengagement from Gaza, and the Quartet Principals have appointed out- going World Bank President James D. Wolfensohn as Special Envoy for Gaza Disengagement. The Special Envoy is charged with leading, overseeing and coordinating the international community's efforts in support of the disengagement initiative.
Topic:
Development, Economics, and Government
Political Geography:
United States, Middle East, Israel, Palestine, and Gaza

2889. Africa and the Challenge of Globalization

Author:
Jeffrey Herbst
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This paper provides an overview of Africa's economic performance. Although the continent appeared headed for economic success in the early days of independence, based particularly on natural resource endowments, Africa's economic growth has stagnated while the rest of the world has experienced continuous, often spectacular, growth. The countries in Africa that have had the worst performance are those that contain the majority of the population. These states, in particular, suffer most from a crisis of governance and lack the policy and legal frameworks to grow quickly. The states in Africa can be divided into six categories and each grouping faces a different set of challenges from globalization: 1) high performers ready to globalize; 2) countries on an upward trajectory; 3) large, poorly performing countries; 4) poorly performing countries; 5) countries in collapse; and 6) oil producing countries. Only the states in the first two groupings are currently able to participate in the globalized economy.
Topic:
Development, Economics, and Globalization
Political Geography:
Africa

2890. The Impact of RMA on Conventional Deterrence: A Theoretical Analysis

Author:
Manjeet S. Pardesi
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This research aims to theoretically study if deterrence will prevail if and when states with RMA-ed militaries are faced with the prospect of conventional war. To answer this question, this study analyzes the impact of transformation on conventional deterrence in the event of a military standoff for three theoretical scenarios–(1) RMA capable conventional military vs. RMA-incapable conventional military (with the former state being nuclear or non-nuclear and with the latter being non-nuclear), (2) two RMA-capable conventional militaries (both states non-nuclear), and (3) two RMA-capable conventional militaries (both states nuclear). The study concludes that the current defense transformation is revolutionary simply because it permits the possibility of a limited conventional armed conflict between two nuclear weapons states (including great powers) and as such attempts to resuscitate the role of conventional military power in international politics. On the other hand, analogous to the nuclear revolution, the possession of RMA capabilities by two non-nuclear belligerents is likely to render large-scale conventional armed conflicts with unlimited military objectives between them unthinkable. However, this study warns that deterrence is weakened when only one state in an adversarial dyad is RMA-capable. Moreover, in any dyad involving RMA-capable states, deterrence is weakened when the RMA-capable state contemplates a strategy of limited aims (political and/or military) vis-à-vis its adversary. This tendency is all the more pronounced when it is contemplating a limited war waged with air power and missile strikes (low-cost, low-risk) than a limited war for territorial gains.
Topic:
Conflict Resolution, Defense Policy, Development, and War