Industrial policy in the EU: old dilemmas and new options

Industrial policy is highly controversial. Supporters claim it is necessary to address market failures. Critics argue that the danger of government failure is often higher and that such failure may lead to greater welfare loss. The EU justifies its industrial policy by pointing to the existence of transnational problems and to its unique ability to counter them. The EU has the capacity to coordinate national policies, to reduce redundancies, to control and limit national subsidies to industry. It also has a mandate for managing EU foreign trade and competition policy. There are five major industrial policy arenas. Technology policy has been relatively successful in certain fields like telecommunications or traffic‐control systems. In other fields, such as micro‐electronics and computers, the results have been mixed at best. Regional policy has had a limited developmental impact. On foreign‐trade policy, anti‐dumping measures have largely been a failure, though they have stimulated Japanese direct investment. A division of labour between the EU Commission and national, regional and local governments should be advanced with a view to formulating and implementing industrial policy. The regional and local levels should formulate policies aimed at strengthening specialized factors. The EU should concentrate primarily on fostering and shaping new lines of technological development and managing capacity reduction in declining industries.     

The Perpetuation of Regime Security in Gulf Cooperation Council States: A Multi‐Lens Approach

Gulf Cooperation Council (GCC) states have been engaging in diversification efforts, yet the types of efforts suggest that the primary interest is regime security. Regional foreign policy is complex; hence we propose a multi‐lens approach to analyze overlapping and complementary political, economic, and social forces. The international political economy of hydrocarbons demonstrates the similarities among GCC states, regional dynamics illustrate interstate relations and similar patterns, while economic diversification suggests individual state trajectories and comparative and competitive patterns. By outlining the contemporary context for GCC states, we argue that low oil prices, regional dependence on hydrocarbons, and trends in economic diversification efforts signal GCC states' preference to reinforce their rentier systems with alternative state revenue streams. GCC states' diversification into new markets and sectors and use of state‐owned enterprises in microcompetitions indicate a new search for alternative revenue streams and prestige, which in turn are used to assure the perpetuation of regime security. This finding sets trajectories and implications for the region, specifically economic stagnation and supplementary diversification processes.     

日本对外贸易政策的新动向--关于区域自由贸易协定的几点议论

日本与新加坡签署自由贸易协定,表明其对外贸易政策发生了一些变化,它有别于日本一贯主张的“多边主义”,这一变化是建立在对多边贸易政策和区域协定重新认识基础之上的,表现为日本积极参与区域协定的具体行动上,其意图是适应外部环境变化以解决自身的经济问题。     

Between Kant and Machiavelli: EU foreign policy priorities in the 2010s

The entry into force of the Lisbon Treaty invites and enables Europe to develop elements of a common foreign policy. Europe should resist the tendency of listing all issues calling for attention, and be aware that it will have to address three agendas, not just one. The first agenda is the Kantian one of universal causes. While it remains essential to European identity, it presents Europe with limited opportunities for success in the 2010s as could be seen at the 2009 Climate Summit in Copenhagen. The ‘Alliance’ agenda remains essential on the security front and would benefit from a transatlantic effort at rejuvenation on the economic one. Last but not least, the ‘Machiavellian’ agenda reflects what most countries would define as their ‘normal’ foreign policy. It calls for Europe to influence key aspects of the world order in the absence of universal causes or common values. While Europe's ‘Machiavellian’ experience is limited to trade policy, developing a capacity to address this third agenda in a manner that places its common interests first and reinforces its identity will be Europe's central foreign policy challenge in the 2010s. A key part of the Machiavellian agenda presently revolves around relations with Ukraine, Turkey and the Russian Federation, three countries essential to Europe's energy security that are unlikely to change their foreign policy stance faced with EU soft power. Stressing that foreign policy is about ‘us’ and ‘them’, the article looks at what could be a genuine European foreign policy vis‐à‐vis each of these interdependent countries, beginning with energy and a more self‐interested approach to enlargement. The European public space is political in nature, as majority voting and mutual recognition imply that citizens accept ‘foreigners’ as legitimate legislators. At a time when the European integration process has become more hesitant and the political dimension of European integration tends to be derided or assumed away, admitting Turkey or Ukraine as members would change Europe more than it would change these countries. Foreign policy cannot be reduced to making Europe itself the prize of the relationship. What objectives Europe sets for itself in its dealing with Ukraine, Turkey and Russia will test whether it is ready for a fully‐fledged foreign policy or whether the invocation of ‘Europe’ is merely a convenient instrument for entities other than ‘Europe’.     

Towards the Baghdad Pact: South Asia and Middle East Defence in the Gold War, 19477ndash;1955

This article illustrates US policy on European integration and the European Economic Community (EEC) by focusing on the General Agreement on Tarriff and Trade (GATT) Kennedy Round negotiations (1963–7). However underestimated in the history of international relations, GATT provides in fact an outstanding framework for analysing the foreign policy of its members. Whilst analyses of the Round per se already exist, no scholar thus far has focused on US policy towards European integration. Moreover, no previous author has utilised the European archives and has examined the stances of the EEC. This article shows that US support for European integration, which both Kennedy and Johnson followed at the behest of the ‘Europeanists’ in their respective administrations, conditioned the bargaining position of the United States in Geneva. The US negotiators tried to enhance US trade interests while at the same time attempting to encourage European regional integration. In so doing, the United States played a role in the strengthening of European regional integration by favouring the unity of the area. Moreover, contrary to previous accounts, this article shows that US negotiators were able to direct and move forward a complicated negotiation, showing Washington's leadership. The article concludes by showing that the Kennedy Round ended a period of about twenty years during which the United States acted to promote the unity of Western Europe. At the end of the 1960s, with the worsening of the US economic conditions, the tension in transatlantic relations over monetary and security issues, and the strength that the EEC demonstrated during the Kennedy Round, ‘the Europeanists’ were no longer able to prevail with their line in the internal discussions. This change became apparent when the Nixon administration shifted to a more detached and ambiguous policy towards European integration.     

Indian foreign policy and contemporary security challenges

India is fast emerging as an important player in regional and international arenas. However, it continues to be beset by a number of security challenges, both internally and externally. On the assumption that India's foreign policy has evolved in step with its domestic politics, this article briefly surveys the evolution of Indian domestic politics and foreign policy before discussing some of the domestic and international (including regional) security challenges India faces today. The article concludes that although economic diplomacy does at present serve India well in projecting power internationally, achieving great power status in the future will rest on the resolution of key political and security challenges.     

Heading west? Georgia's Euro‐Atlantic path

Events in Ukraine in 2014 are likely to transform the presence and role of western institutions such as NATO in the post‐Soviet area. The crisis has starkly revealed the limits of their influence within Russia's ‘zone of privileged interest’, as well as the lack of internal unity within these organizations vis‐à‐vis relations with Moscow and future engagement with the area. This will have long‐term implications for the South Caucasus state of Georgia, whose desire for integration into the Euro‐Atlantic community remains a key priority for its foreign and security policy‐makers. This article examines the main motivators behind Georgia's Euro‐Atlantic path and its foreign policy stance, which has remained unchanged for over a decade despite intense pressure from Russia. It focuses on two aspects of Georgia's desire for integration with European and Euro‐Atlantic structures: its desire for security and the belief that only a western alignment can guarantee its future development, and the notion of Georgia's ‘European’ identity. The notion of ‘returning’ to Europe and the West has become a common theme in Georgian political and popular discourse, reflecting the belief of many in the country that they are ‘European’. This article explores this national strategic narrative and argues that the prevailing belief in a European identity facilitates, rather than supersedes, the central role of national interests in Georgian foreign policy.     

Regional Inequality of Industrial Output in China, 1952 to 1990

This paper examines regional inequality of industrial output in China from 1952 to 1990. This study reveals that regional inequality was widespread when socialist China was established in 1949. It was reduced in the 1950s as a result of the efforts to develop the interior through the implementation of the First Five Year Plan (1953–57). After that, regional inequality persisted for one-and-a-half decades due mainly to the poor economic returns of the defence-oriented "Third Front" programme, decentralization, the reorientation of development policies, and the incidence of disruptive political events. Since the launch of economic reforms in 1978, interregional inequality among the eastern, central and western regions has gradually increased. However, interprovincial inequality decreased. The relative decline of the traditionally rich provinces (three municipalities and the northeastern industrial bases) has contributed to the decline of interprovincial inequality. Meanwhile, favourable state policy, local initiatives and foreign investment and trade have stimulated the growth of the coastal provinces of Jiangsu, Guangdong, Shandong, Zhejiang and Fujian, leading to more rapid coastal development and the increase of interregional inequality. The emerging new map of regional development is important to the understanding of regional inequality in post-Mao China.     

U.S. Foreign Policy and the Arab Spring: Balancing Values and Interests

The rapid and unpredictable changes in the Middle East collectively known as the “Arab Spring” are posing tremendous challenges to U.S. policy formation and action. This article will explore and evaluate evolving U.S. policy in the Middle East and its potential implications. There has always been a tension in American foreign policy between pursuing American “values” (foreign policy idealism) and protecting American “interests” (foreign policy realism). For decades, the United States has sought to “make the world safe for democracy,” while at the same time often supporting repressive, nondemocratic regimes because of national security or economic self‐interest. The tension between these two fundamentally distinct policy orientations has become even more pronounced as the United States tries to respond to the Arab Spring uprisings. Why did the United States actively support the rebels in Libya but not the protestors in Syria or Bahrain? Is there an emerging, coherent “Obama Doctrine” on intervention in Arab countries, or was Libya just a “one‐off” event? These are some of the questions that this article will attempt to answer.     

How China Navigated the Dilemma of Trade Liberalization and Government Revenues

Many economists believe that in the long run, the aggregate performance of open economies is better than that of closed ones, and that open policies contribute significantly to economic development. At the same time, many political scientists and policy makers fear that, in the short run, one of the steps towards openness — trade liberalization — may harm government revenues. However, in the 1990s, China successfully navigated the dilemma of trade liberalization and government revenues. In this period, China decreased tariff and non‐tariff barriers for WTO accession, but has achieved dramatically increased tariff revenues since 1999. This study explores how China implemented trade liberalization and simultaneously increased tariff revenues in the 1990s. It demonstrates that a series of institutional arrangements, including a reform of Criminal Law, rigorous anti‐smuggling activities and a de facto tax imposed on the export sector, successfully curbed smuggling activities through the processing trade, and made foreign‐invested manufacturing enterprises the major contributors to the stability of customs revenue. China's case shows that a prosperous, export‐oriented and foreign‐invested manufacturing sector could potentially provide a developing country with a source of customs revenue.     

Do We Need a GCC Bank to Facilitate the Economic Turnaround of the GCC Region?

Amidst the ongoing crisis of plummeting oil prices, the GCC (Gulf Cooperation Council) terrain has become a haunt of economists and financial analysts to tackle the ongoing challenges in the region. GCC constituents are gearing themselves with a robust political will that they hope could result in a turnaround of their economy by adopting a policy of economic diversification in nonoil‐based sectors. With this background supported by extensive qualitative scan of literature pertaining to the reforms proposed by the six members of the GCC to drive the economy forward amidst ongoing economic crisis, this article seeks to underscore the prospect of a shared initiative by the GCC constituents in institutionalizing a GCC bank as a potent innovative solution which may serve to provide an edifice for pushing forth the region's economy in nonhydrocarbon segments contingent upon the individual needs of the GCC constituents. As an exploratory study, this paper sheds light on these issues besides discussing the fundamental functions of the GCC bank.     

Mapping international flows of electronic waste

In this paper, we map the international trade in electronic waste (e‐waste). We quantify the directions and magnitude of this trade at the global scale and examine the utility of the pollution haven hypothesis for explaining the observed trade patterns. Our results demonstrate four key findings: the international trade in e‐waste is a more complex story than being one about ‘rich’ countries dumping waste in ‘poor’ countries; the trade in e‐waste is highly regionalized, with intra‐regional trade accounting for most of the total trade flows; the pollution haven hypothesis is an important, but partial, explanation of observed trade patterns; and there is a need to conceptualize the trade and traffic of e‐waste as open ended and contingent processes facilitated by situated practices of wasting and valuing that rely on geographic difference and mobility for the exchanges between the domains of waste and value to occur.     

Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.     

Transport Infrastructure and Regional Integration in the Middle East

The soft aspects of the infrastructure of regionalism in the Middle East have previously been studied, while the impact of the region’s hard infrastructure, in particular transport infrastructure, has received little attention. This paper contributes to the study of regionalism in the Middle East by investigating the relationship between hard infrastructure and economic integration. It analyzes whether the state of domestic and cross‐border transport infrastructure in the region promotes regional trade. This is done by addressing the following sub‐questions: 1) What is the condition of domestic and cross‐border transport infrastructure in the Middle East? And 2) What is the relationship between domestic and cross‐border transport infrastructure and regional trade in the Middle East? These questions are answered by examining Egypt, Iraq, Israel, Jordan, Lebanon, Palestine, Syria, and Turkey as representative samples of the broader region. It is argued that regionalism relies on the development of domestic and cross‐border transport infrastructure and where the latter is limited, regionalism cannot deepen. The study concludes that domestic and cross‐border transport infrastructure performance is weak in several of the countries studied and that this weakness hinders regional economic integration regardless of the level of the region’s soft infrastructure.     

The uncertain merger of values and interests in UK foreign policy

How should ethics and values relate to the British national interest? The idea that ethical commitments to distant non‐citizens should occupy a position within British foreign policy was a controversial element of Labour's foreign policy during the early part of their 1997–2010 tenure. Rather than undermining traditional national interest concerns, one of the defining themes within Labour's foreign policy was that values and national interests were becoming increasingly merged in a globalized world. The post‐2010 coalition government has made distinct efforts to differentiate themselves from their predecessors, crafting a more pragmatic and national interest‐based foreign policy approach. Despite this, significant continuities with Labour's ‘ethical dimension’ are evident and many associated policies and practices have survived the transition. Moreover, the suggestion that British values and interests are interrelated and mutually reinforcing has been re‐asserted, with renewed vigour, by coalition policy‐makers. The article traces the ways in which values and interests have become increasingly merged in the language of recent British foreign policy and examines the implications for our understanding of the UK's national interest. It argues that the idea of an almost symbiotic relationship between values and interests is fundamentally unhelpful and makes the case for greater disaggregation of the two. Although a zero–sum game need not exist between core national interests and ethical obligations abroad, the suggestion that they are mutually reinforcing obscures the tensions that frequently arise between these different realms of obligation. Using the examples of failed state stabilization and UK arms trade regulation, the article demonstrates how uncritical acceptance of the values–interests merger risks producing unstable policy formulations.     

The rise of the Indo-Pacific: understanding ideational change and continuity in India's foreign policy

In 2011, the concept of the Indo-Pacific began to appear in India's foreign policy discourse. This article argues that rather than signalling a dramatic shift in India's foreign policy, however, the way in which the Indo-Pacific has been interpreted by the Indian leadership suggests significant continuity as well as change, which is contrary to the goals of the concept's most fervent proponents in India. The article seeks to develop a framework for understanding ideational change and continuity in foreign policy by theorising the interplay between ideas, political and economic flux, and social expectations related to effective and legitimate state-building. It is argued that the Indo-Pacific concept has instigated a new emphasis on regional architecture-building to manage the ongoing regionalisation in the area between the Indian and Pacific Oceans as a result of heightened trade flows and production and investment linkages. Yet, the Indo-Pacific concept, like the new policy ideas on regional engagement that preceded it—the Look East policy and the ‘extended neighbourhood’—has been articulated in ways that are also compatible with long-standing ideas—such as non-alignment—about what constitutes appropriate international behaviour. This reflects the nature of the broader state project that has emerged since 1990, which, while encompassing a new focus on economic growth and competitiveness as being essential to effective state-building, continues to prioritise older ideas about what constitutes effective and legitimate state-building.     

India's ‘non‐alignment’ conundrum: a twentieth‐century policy in a changing world

The idea of non‐alignment has remained a central component of Indian identity in global politics that is manifest in continuities: since independence in 1947 India has been in pursuit of strategic autonomy, a quest that in practice has led to semi‐alliances fashioned under the cover of non‐alignment and shaped by regional dynamics. In this setting, the rise of China now raises an interesting conundrum for Indian policy‐makers as New Delhi seeks to balance the benefits and risks of an increasingly assertive neighbour and a network of alliances with like‐minded countries. This article approaches this enigma by delineating continuities of non‐alignment from the early roots of the policy, through the Cold War‐era and into the modern‐day international system. Though domestic factors have had a significant influence on the trajectory of Indian foreign policy, the continuities of non‐alignment have prevailed through changes in leadership and domestic vicissitudes. By exploring the foundation of non‐alignment and how India has operationalized the policy, this article maintains that to some extent continuity will persist: India will likely continue its rhetoric in favour of strategic autonomy while moving closer to the West and its allies in practice. Yet in order to effectively balance China's growing influence, India will need to be more assertive in building these alliances, as the success of its modern‐day pursuit of strategic autonomy may well rest on a strong foundation of strategic partnerships. The coming to office in May 2014 of the National Democratic Alliance government led by Narendra Modi has signalled a move away from even the rhetoric of non‐alignment, with significant implications for the future of Indian foreign policy.     

辽宁省城市中心性研究与城市发展

以辽宁省地级及以上城市为研究对象,在建立评价指标体系基础上,基于区位商法和主成分分析法,对城市中心性进行了测度和研究。通过对过程数据和结果数据的进一步分析,发现辽宁省当前城市发展在区域经济空间结构、社会经济体制、第三产业、经济外向度等方面存在的问题,并提出了相关的政策建议。     

The impotence of being earnest? Avoiding the pitfalls of ‘creative middle power diplomacy’

This article critically evaluates Australia's ‘creative middle power diplomacy’, encapsulated in the three pillars of the Labor government's foreign policy platform. It notes that each pillar has been accorded specific roles in the implementation of Australian foreign policy and makes particular reference to the government's preference for multilateral engagement. The article subsequently demonstrates that such an agenda actually impedes a creative approach to key issues such as trade, climate change and non-proliferation challenges, as well as Australia's participation in Asia-Pacific order-building. It then offers some suggestions for a more flexible posture that is not inconsistent with past Labor approaches, but which also better appreciates regional and global complexities.     

Kin state non‐interventionism: Albania and regional stability in the Western Balkans

This article provides a comprehensive analysis of Albanian regional policy from 1992 to 2013. Situated in a conflict‐ridden region and surrounded by co‐ethnics living in Kosovo, Macedonia, Montenegro and Serbia, Albania has successfully resisted pressure to undertake interventionist regional policies. However, there are no structured accounts as to how Albania fashioned its non‐interventionist regional policy. This article fills this gap and retraces the development of Albanian regional policy as a function of its inter‐mingled domestic politics and regional and international dynamics. The article concludes that the Albanian regional approach has been shaped by its legacy of communist isolation, pro‐Western predisposition and recognition that accommodation of Western interests would overcome its constraints and advance the rights of Albanians living in the Western Balkans. The analysis is important not just for understanding Albania's actions but also for disentangling the relationship between regional policy, nationalism and a kin state's domestic and international constraints.