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931. Economic Integration and Migration: The Mexico-US Case

Author:
Philip Martin
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explains the evolution and effects of Mexico-US migration, and highlights the NAFTA approach to economic integration, viz., free up trade and investment while stepping up efforts to prevent unauthorized migration. The European Union approach is different: provide aid first, and later free up trade and migration in the expectation that moves toward convergence will ensure minimal migration because trade has become a substitute for migration. The paper concludes that NAFTA will reduce unwanted Mexico-US migration in the medium to long term, and that different initial conditions in Europe mean that there will be relatively little east-west migration when nationals of new entrant EU members achieve freedom of movement.
Topic:
Economics and Migration
Political Geography:
United States, Europe, and Mexico

932. Social and Economic Decline as Factors in Conflict in the Caucasus

Author:
Svetlana Glinkina and Dorothy Rosenberg
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We argue that the conflicts in the Caucasus are the result of the abrogation by the elite of the earlier, Soviet era, social contract. This process was accompanied by the collapse of the formal economy; evidenced by huge national income compression, falling public goods provision, and growing inequality and poverty. In the absence of state provision of basic amenities and governance, ordinary people are compelled to fall back on kinship ties. Declining standards of governance facilitate state-sponsored corruption and criminality in a setting where the shadow economic activity is increasingly important to individual survival strategies. Oil pipelines and the right to control the transit of goods both legal and illegal also underlie conflict in the region. Criminality has replaced ethnicity as the major motivation for conflict and conflict per se has become a lucrative source of income.
Topic:
Economics, Ethnic Conflict, and Poverty
Political Geography:
Russia, Europe, Asia, and Soviet Union

933. EU-U.S. Relations beyond Iraq: Setting the Terms of Complementarity

Author:
Simon Serfaty
Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
The North Atlantic Treaty Organization (NATO) and the European Union (EU) have been significant institutional casualties of the war in Iraq. European heads of state and government who joined the coalition of the willing organized by President George W. Bush (with a decisive assist from Prime Minister Tony Blair) often did so in spite of significant opposition from their general public. States that gathered, vocally or passively, in the coalition of the unwilling (and even resentful) organized by President Jacques Chirac (with a decisive assist from Chancellor Gerhard Schroeder) did so at the expense of a Euro-Atlantic structure within which the states of Europe have gained unprecedented security, stability, and prosperity. As the first phase of the coalition's military action in Iraq comes to an end, the prevailing view in the United States is that the EU is a troubled and troubling union: troubled in terms of its internal divisions, and troubling in terms of the motivation that seems to underline the actions of its older members. As for NATO, the prevailing view is that it is a fading organization with a blocking minority of members who are not only unwilling but also broadly incapable and frankly irrelevant.
Topic:
Economics and Politics
Political Geography:
United States, Europe, and Middle East

934. The Future of the Transatlantic Defense Community

Author:
Felix G. Rohatyn and Jean-Paul Béchat
Publication Date:
02-2003
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
On January 24, 2003, the CSIS Commission on Transatlantic Security and Industrial Cooperation in the Twenty-First Century, under the leadership of CSIS president and CEO John J. Hamre, released its final report, The Future of the Transatlantic Defense Community. Cochaired by Jean-Paul Béchat, chairman and CEO of SNECMA and president (in 2001-2002) of the European Association of Aerospace Industries (AECMA), and former U. S. ambassador to France Felix G. Rohatyn, this Commission consisted of 22 senior business leaders and former policymakers from both sides of the Atlantic. An Experts Group, directed by CSIS Europe Program director Simon Serfaty and composed of several representatives from the private and public sectors and academia, assisted the Commission in its work.
Topic:
Economics and Politics
Political Geography:
United States, Europe, and Middle East

935. €uros for ESDP – financing EU operations

Author:
Antonio Missiroli
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
The financing of EU-led crisis management operations is a somewhat neglected yet nevertheless crucial factor affecting the external effectiveness and internal consistency of the Union's foreign and security policy. Until recently, CFSP's operational acquis has been minimal, its legal underpinning limited and tortuous, its budgetary fundament ludicrous, and its administrative practice mostly contradictory and often fraught with inter-institutional turf battles between Council, Commission and Parliament. With the launch of the first ESDP operations proper (EUPM in Bosnia and Herzegovina, Concordia in FYROM) in 2003, the forthcoming Operation Artemis in the Democratic Republic of Congo and the possible takeover of SFOR after 2004, it has become all the more important and urgent to devise more appropriate arrangements and incentives for common action. The European Convention and the ensuing Intergovernmental Conference represent additional opportunities to be seized. In this respect, the main issues to be addressed regard: a) the speed and readiness of budgetary allocations, on the one hand, and their long-term sustainability, on the other; b) the coherence of the relevant provisions, in both institutional and functional terms, and their consistency with the peculiarities of the EU as an international actor; and c) the degree of transparency, accountability and internal fairness compatible with the imperatives of crisis management. The experience of other international organisations operating in this field (NATO, OSCE, UN) can also be taken into consideration with a view to selecting rules and modalities that may be helpful in tackling the problems highlighted here. First and foremost, it is desirable that the current fragmentation of CFSP expenditure in separate EU budgetary lines be overcome. The appointment of an EU 'Minister for Foreign Affairs' (or whatever title is given to the new foreign policy supremo) is expected to help solve this problem and reduce some inter-institutional tensions and bottlenecks. For example, it is desirable for all expenditure related to civilian crisis management (with the possible exception of the salaries of seconded national personnel) to be borne by the EU bud- get in a more transparent fashion. To this end, the relevant procedures have to be made less tortuous and more flexible. Secondly, expenditure for operations 'having military or defence implications' — in so far as it will remain distinct and separate from the rest — should be pooled in a more systematic, sustainable and explicit manner. Neither the current 'ad hocery' (as exemplified by EUPM and Concordia ) nor the minimalist approach adopted by the Convention's Praesidium (with the proposal of a subsidiary 'start-up' fund) address the essential issues. In fact, if a subsidiary budget has to be set up, then it should be more ambitious and create a long- term basis for covering all the 'common costs' arising from military operations. Such an EU Operational Fund could usefully draw upon the precedent of the European Development Fund and adopt a distinct 'key' for national contributions. Such a 'key' should take into account e.g. the member states' ability to pay but also their ability to contribute in kin through the actual involvement of personnel and equipment in EU operations. It should also be periodically adjustable and help overcome potential 'burden-sharing' disputes inside the Union by setting agreed criteria against which to measure and assess national contributions without resorting to the crude GDP scale. At the same time, the Fund's financial cycle should be the same as that of the EU budget. And, in perspective, the “common costs” thus covered should include also accommodation and transportation costs, especially if the Union develops common capabilities in the fields of strategic lift and logistics. By doing so, the EU would eventually have two main modalities for common operational expenditure at its disposal: the EU budget for all non-military aspects, and the Operational Fund. Both would guarantee a reliable financial perspective. If the separation between civilian and military aspects were ever to be bridged, their merger would not represent a problem. Thirdly, the European Parliament could consider reimbursing those member states who participate in ESDP operations a fixed somme for faitaire to cover partially the per diems of their seconded personnel (civilian as well as military). Such reimbursement could be made through the EU budget annually, ex post facto, with no political conditions attached. On the one hand, it would prove that the EU budget covers not only internal benefits (agriculture and structural funds) but also external commitments. On the other, it would add transparency to ESDP in that the Parliament could organise hearings with experts and officials as well as plenary debates. For their part, the member states would gain an additional incentive – however modest – to provide adequate human resources for external operations. Finally, participating 'third' (and especially remaining and future candidate) countries could well be associated with all these arrangements, either case by case or more systematically. And none of the proposals outlined here necessarily require treaty change, although it would be preferable to insert some 'enabling' clauses in the Constitutional Treaty. All proposals, however, would require collaboration — rather than competition — between EU institutions.
Topic:
Economics, Government, and Politics
Political Geography:
Europe, Bosnia, Herzegovina, and Democratic Republic of the Congo

936. The European Union and armaments Getting a bigger bang for the Euro

Author:
Burkard Schmitt
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
The proposals of the Convention on the Future of Europe and the recent European Commission Communication on a Defence Equipment Policy have revived the debate about the EU's possible involvement in armaments. There is indeed a chance today that a European Agency for Armaments, Research and Capabilities will be set up and anchored in the new EU Treaty. At the same time, there is a growing consensus that the EU Commission should have certain competencies in the field of security-related research, and even the establishment of a common defence equipment market is (again) under discussion.
Topic:
Defense Policy, Economics, and Government
Political Geography:
Europe

937. Making Money: Political Development, the Greenback, and the Euro

Author:
Kathleen R. McNamara
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Institute of European Studies
Abstract:
The creation of Economic and Monetary Union (EMU) in Europe challenges much of what we have come to take for granted about states and the components of sovereignty. What does the willingness of twelve European Union (EU) members to abandon their own currencies mean for the nation-states of Europe? Does the Euro automatically imply further political development at the EU level? To address these questions, this paper parses out the role that national currencies play in statebuilding with reference to the nineteenth century American experience. Just as US federal authorities engaged in a political project to wrest control over money from subnational authorities to the center and unify the currency, so have the dynamics of currency unification in the EU involved important conflicts over the location of the legitimate exercise of control and rule. In particular, I highlight the role of war and market integration in prompting currency consolidation, and the importance of linkages between money and fiscal capacity for statebuilding, and apply the analytical lessons learned from the US experience to the case of the Euro.
Topic:
Development and Economics
Political Geography:
United States and Europe

938. Institutions for Fiscal Stability

Author:
Barry Eichengreen, George C. Pardee, and Helen N. Pardee
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Institute of European Studies
Abstract:
This paper reviews the controversy over Europe's Stability and Growth Pact and offers a proposal for its reform. It argues that Europe would be best served by focusing on the fundamental causes of unsustainable debts — public enterprises that are too big to fail, unfunded public pension schemes that are too big to ignore, inefficient and costly labor market and social welfare problems, and budget making institutions that create common pool and free-rider problems — rather than on arbitrary numerical indicators like whether the budget deficit is above or below 3 per cent of GDP. It proposes defining an index of institutional reform with, say, a point each for reform of budget making arrangements, reform of public pension schemes, and reform of labor markets and unemployment insurance. Countries receiving three points would be exempt from the Pact's numerical guidelines, since there is no reason to think that they will be prone to chronic deficits. The others, whose weak institutions render them susceptible to chronic deficits, would in contrast still be subject to its warnings, sanctions and fines.
Topic:
Conflict Resolution, Debt, and Economics
Political Geography:
Europe

939. The Accession Economies' Rocky Road to the Euro

Author:
Barry Eichengreen, George C. Pardee, and Helen N. Pardee
Publication Date:
11-2003
Content Type:
Working Paper
Institution:
Institute of European Studies
Abstract:
Now that the decision has been taken to admit to the European Union eight of what were once called the transition economies, attention has naturally turned to whether these countries should also join Europe's monetary union. But where is a consensus that joining the EU, while posing certain difficulties, will be a source of net benefits, there is no such consensus about the adoption of the euro. In part this uncertainty reflects the unusual difficulty that monetary economists have in translating theory into policy. We specialists, in other words, cannot even agree amongst ourselves.
Topic:
Economics, International Trade and Finance, and Regional Cooperation
Political Geography:
Europe

940. The Euro Through a Glass Darkly

Author:
Barry Eichengreen
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Institute of European Studies
Abstract:
On January 1st, Europe's monetary union will celebrate its fifth anniversary. Congratulations are not exactly pouring in. For going on two years, growth in the countries of the Euro Area has been significantly slower than in the United States. Unemployment over much of the continent remains disturbingly high. The single currency has not been a tonic for Europe's stagnant economy. To the contrary, numerous critics complain, the advent of the euro has only compounded Europe's economic problems. This paper provides a review and analysis of the debate.
Topic:
Economics and Political Economy
Political Geography:
United States and Europe