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2531. China's State-Owned Enterprises: Thriving or Crumbling?

Author:
Christopher A. McNally
Publication Date:
02-2003
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
Even though China's state firms lost their near-monopoly status after 1978, they still form the country's financial and industrial nucleus.Nevertheless, in early 1996 the total losses of these state-owned enterprises (SOEs) exceeded profits for the first time. With the economy threatened, offi-cialdom issued a mandate in 1997: SOEs must become profitable in three years. In 2001, statistics showed a massive turn around, and victory was declared. Despite doubts about the official statistics, substantial improvement did seem evident. The question was, what caused it? While massive layoffs and corporate restructuring did increase efficiency, most improvements have been the result of external factors such as debt restructuring and government-arranged buy-outs and mergers. This strategy offers short-term rewards, but could be a disaster in the long term. Real reform of China's state sector requires financial reforms that bite (even more urgent with WTO entry), serious moves toward a social security system for displaced workers, and more outright priva-tization of state firms to give non-state shareholders real power on their boards.
Topic:
Economics, Government, and Industrial Policy
Political Geography:
China

2532. The Ethnopolitical Dynamics of Elections

Author:
Stefan Wolff
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
European Centre for Minority Issues
Abstract:
Elections are a key element in any political process because of their rule-legitimating function. They are, therefore, frequently used instruments at different levels of the political process (from local government to presidential elections) and in most types of political systems (from democracies to single-party totalitarian systems). In democratic and democratizing systems in particular, elections serve a variety of different purposes in addition to legitimating rule, including providing an institution for the expression of the popular will and providing mechanisms for peaceful change in government.
Topic:
Democratization, Government, and Politics
Political Geography:
Eastern Europe

2533. From Copenhagen to Brussels European defence: core documents, Volume IV

Author:
Antonio Missiroli
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
With the present issue, the 'European defence core documents' annual collection reaches its fourth volume – stretching from Copenhagen, where the last European Council of 2002 was held, to Brussels, where the last one of 2003 took place. In actual fact, the Thessaloniki European Council of June 2003 was the last one to be hosted by the country holding the rotational EU presidency. From now on, all European Councils will take place in Brussels – thus crucially depriving this collection of a distinctive title for each issue.
Topic:
Foreign Policy, Defense Policy, and Government
Political Geography:
Europe

2534. €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

2535. 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

2536. European armament cooperation Core documents

Author:
Burkard Schmitt
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
There is a long tradition of armaments cooperation in Europe. The first cooperative programmes were launched in the 1960s, and their number increased considerably over the following decades. Projects such as Transall, Tornado, HOT, Milan and Eurofighter – to name just a few – have illustrated both the political will and the technological capability to develop and produce high-tech weapons systems jointly.
Topic:
Defense Policy, Government, and International Cooperation
Political Geography:
Europe

2537. DCAF Security Sector Governance Status Report and Needs Assessment on Timor Leste

Author:
Philipp H. Fluri
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
The DCAF Security Sector Governance Status Report and Needs Assessment on Timor- Leste was planned and implemented on the initiative and on behalf of the Foreign Minister of Switzerland Madame Micheline Calmy-Rey.
Topic:
International Relations, Security, Development, and Government

2538. Before and After 1998 - A Romanian Short History

Author:
Mircea Plangu
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
Bitter impressions can be presumed if we are to acknowledge that society is somehow divided into two categories: military and civilians, or vice-versa. Or if we understand that the civilians involved in security policy are a scarce resource. Reading about the concept, we can perceive hints about some obstacles existent in the activity of civilians at the interface with their military colleagues.
Topic:
Security, Civil Society, and Government
Political Geography:
Europe

2539. The Role of Civilians in National Security Structures - The Bulgarian Experience

Author:
Velizar Shalamanov
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
The strengthening of the democratic and civilian control of the security sector has been an important policy issue on the agenda of the international community throughout the last decade. A key dimension in this respect is the role of civilians in the formulation and conduct of national security policy.
Topic:
Security, Civil Society, and Government
Political Geography:
Eastern Europe and Bulgaria

2540. The Role of Civilians in Security and Defence Policy Making - The Case of the Czech Republic

Author:
Marie Vlachová
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
Formal and institutional framework of democratic control of armed forces has been installed in the Czech Republic – roles, responsibilities and powers of security sector institutions/actors are determined by law.
Topic:
Security, Civil Society, and Government
Political Geography:
Eastern Europe and Czech Republic