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2111. Football diplomacy

Author:
Anthony Bubalo
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
What is the problem? While Australian governments have successfully built pragmatic ties with Asian leaders, a popular dimension to our engagement with Asia has in many respects been missing. This didn’t matter greatly in the past, but today public opinion is increasingly a factor in foreign policy. Governments must influence individuals as well as elites to address global problems such as terrorism and disease and ‘branding’ has become critical to a state’s ability to attract trade, investment and international political support. But a new opportunity to deepen people-to-people links with Asia has arrived in the form of Australia’s recent admission into the Asian Football Confederation. For the first time, Australia will have a significant sporting relationship with Asia. The question is, how can Australia best use this opportunity to enhance its regional image and engagement?
Topic:
Diplomacy and Government
Political Geography:
Asia and Australia/Pacific

2112. Buying air warfare destroyers: a strategic decision

Author:
Hugh White
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
The Air Warfare Destroyer [AWD] project is Australia's biggest proposed defence acquisition in decades. Cabinet has already chosen a company to build the ships. But before minsters go further and sign contracts, they should stop and ask two big questions which have not so far been properly considered. First, would AWDs do enough for Australia's defence to justify their cost, and what would we need to sacrifice to afford them? Second, are we buying them the right way? There are good reasons to think that the answer to both questions is no. The AWD's main purpose is to provide air defence for ADF amphibious operations in medium- to high-level conflicts. But such operations would not be a high priority for Australia. The forces we could deploy are small, and the risks they would face, even with AWDs, are daunting. And if it was necessary, amphibious operations could be better protected for air attack by proactive counter-air campaigns or fighter escorts. For coalition operations, AWDs would only add another option to a wide range of highly capable contributions we can already make, including submarines, maritime patrol aircraft, AEW and fighters. And AWDs would be marginal to any future development of ballistic missile defences for Australia. So AWDs would provide few important new military options. But their high price imposes big opportunity costs in the already-squeezed defence investment program. Unless Defence funding rises sharply, we can afford them only by cutting other major capabilities. The most likely trade-off is the JSF project; cutting that would have serious strategic costs. So ministers should not commit to buying the AWDs before they have reviewed the Defence Capability Plan as a whole to see the full implications for the ADF's overall capability. If ministers nonetheless decide to buy AWDs, they should look very carefully at how the project is being developed and managed. As they did with Navy's troubled Collins submarines and Seasprite helicopters, Defence is setting unique Australian requirements that will unnecessarily add to the cost and risk of the project. And they are experimenting with a new acquisition strategy that provides less competition and leaves more of the risk of the project in Defence's hands. A simpler and more competitive acquisition strategy would provide better value for money. The simplest and cheapest of all would be to buy overseas. There is no compelling strategic reason to buy AWDs, and even less to build them in Australia.
Topic:
Arms Control and Proliferation, Economics, and Government
Political Geography:
Australia and Australia/Pacific

2113. Beyond Arafat

Author:
Anthony Bubalo
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Arafat may have suffered a lingering physical demise, but politically he has long been in decline. He lost much of his international credibility over his unwillingness to rein in Palestinian terrorism against Israel, and domestically his authority had gradually been eroded. While lacking an anointed heir, a succession plan is more or less in place. Political infighting is a possibility, though a desire for unity will probably prevail in the short term. But Arafat's successors will struggle to end the chaos and lawlessness into which the West Bank and the Gaza Strip have descended. Over the longer term Arafat's passing will remove the main obstacle to internal Palestinian reform. It has the potential to re-invigorate the peace process although it will not solve the fundamentals of the current impasse. It will also complicate Israeli Prime Minister Ariel Sharon's plans for a unilateral withdrawal from Gaza and parts of the West Bank, even if his instinct will be to press ahead.
Topic:
Conflict Resolution, Development, and Government
Political Geography:
Middle East

2114. Explaining Middle Eastern Authoritarianism

Author:
Marcus Noland
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Arab political regimes are both unusually undemocratic and unusually stable. A series of nested statistical models are reported to parse competing explanations. The democratic deficit is comprehensible in terms of lack of modernization, British colonial history, neighborhood effects, reliance on taxes for government finance, and the Arab population share. Interpretation of the last variable is problematic: It could point to some antidemocratic aspect of Arab culture (though this appears not to be supported by survey evidence), or it could be a proxy for some unobservable such as investment in institutions of internal repression that may not be culturally determined and instead reflect elite preferences. Hypotheses that did not receive robust support include the presence of oil rents, the status of women, conflict with Israel or other neighbors, or Islam. The odds on liberalizing transitions occurring are low but rising. In this respect the distinction between the interpretation of the Arab ethnic share as an intrinsic cultural marker and as a proxy for some unobservable is important-if the former is correct, then one would expect the likelihood of regime change to rise only gradually over time, whereas if it is the latter, the probabilities may exhibit much greater temporal variability.
Topic:
Economics, Government, and Politics
Political Geography:
United Kingdom, Middle East, Israel, and Arabia

2115. After 'Non' and 'Nee': Plans B, C, and D for the European Constitution

Author:
Daniel Gould
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The proposed European Constitution, which was just voted down in France and the Netherlands, is technically a treaty containing far-reaching amendments to the present set of treaties governing the European Union. Article 48 of the EU treaty text currently in force specifies that any such amendments first be unanimously approved by the governments of the member states within an Inter-Governmental Conference framework and then ratified by each country. The first, intergovernmental step of ratification was completed October 29, 2004.
Topic:
Economics and Government
Political Geography:
Europe, France, and Netherlands

2116. Domestic and External Debt: The Doomed Quest for Equal Treatment

Author:
Brad Setser and Anna Gelpern
Publication Date:
05-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
"Equality" has the ring of a basic value, an incontrovertible virtue. In international finance, equal treatment is enshrined in treaties and contracts. Of all the equal treatment aspirations in finance, none seems more essential to a lawyer than equal treatment of creditors holding identical legal instruments: if one is to suffer a default, surely so should the others; restructuring options available to one must be open to all without regard to the creditor's identity. Yet in the world of sovereign debt, local and foreign investors buying the same paper rarely achieve what anyone would recognize as equal treatment.
Topic:
Debt, Economics, Government, and International Trade and Finance

2117. North Korean Human Rights Act of 2004: Issues and Implementation

Author:
Stephan Haggard and Marcus Noland
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
It is an honor to be invited to testify before this committee. We would like to begin our testimony by restating a simple yet compelling point: The absence of human, civil, and political rights in North Korea and the humanitarian disaster that afflicts its population are inextricably linked.
Topic:
Economics, Government, and Human Rights
Political Geography:
Asia and North Korea

2118. Outsourcing and Offshoring: Pushing the European Model Over the Hill, Rather Than Off the Cliff!

Author:
Jacob Funk Kirkegaard
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Once again a specter is haunting Europe—not in the shape that Marx saw it but in the form of outsourcing and offshoring, which allegedly will empty Europe of the highly skilled high-paying jobs of the future. This working paper argues that the specter needs to be dispelled. Today, Europe faces challenges in the form of low productivity growth and low labor utilization/high unemployment. Outsourcing and offshoring, far from being a blight, are powerful tools to help solve the productivity growth problem and may also—provided the right structural reforms are implemented—assist in solving Europe's low employment problem.
Topic:
Economics, Government, and Third World
Political Geography:
Europe

2119. The Fed: Pulling on a Rubber Band

Author:
John H. Makin
Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
On December 13 the Federal Reserve's Open Market Committee (FOMC) raised the federal funds rate, the principal tool for setting monetary policy, by 25 basis points to 4.25 percent. At the same time, the Federal Reserve Board of Governors greatly simplified what had been a tortured statement explaining the basis for their actions and the factors that will govern future actions. The statement was remarkably brief: Despite elevated energy prices and hurricanerelated disruptions, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures. The Committee judges that some further measured policy firming is likely to be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives. (emphasis added).
Topic:
Economics, Emerging Markets, Government, and International Trade and Finance

2120. Why the Dollar Is Rising . . . Again

Author:
John H. Makin
Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Let's begin with a riddle: Why is the dollar like a Republican president? Answer: Because the dollar faces incessant predictions of imminent collapse, but in the end it wins out over weaker alternatives.
Topic:
Development, Economics, Government, and International Trade and Finance