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CHANTIER
DE LA
GLOBE
MAISON LA REVUE DE L’INSTITUT | THE GRADUATE INSTITUTE REVIEW
DE LA PAIX | GLOBAL GOVERNANCE
OF THE WORLD
TRADING SYSTEM
| CAMPUS DE LA PAIX
N11 Printemps | Spring 2013
N11 Printemps I Spring 2013
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I
http ://graduateinstitute.ch
SOMMAIRE | CONTENTS
Des conditions-cadre favorables | Favourable framework conditions – Philippe Burrin 2
Nouvelle composition du Conseil de fondation 3
CAMPUS DE LA PAIX 4
ÉCLAIRAGES | PERSPECTIVES 7
Global Governance of the World Trading System 7
Introduction – Richard Baldwin 8
Interview of Pascal Lamy, Director General of the WTO 10
21st Century Trade and Global Trade Governance: What Future for the WTO? – Richard Baldwin 12
The Rise of Informal Internal Lawmaking and Trade Governance – Joost Pauwelyn 14
Regional Economic Organisations as Integrative Centres? The Case of ASEAN – Cédric Dupont 16
Rare Earths: Evolving Trade and Resource Policy Issues – Manuel A.J. Teehankee 18
How Preferential is World Trade? – Andreas Lendle 19
LA VIE DE L’INSTITUT | INSTITUTE NEWS 20
What is the Use of Economics? – Amartya Sen 20
Inauguration de la chaire Yves Oltramare 22
Interview of Martin Riesebrodt, Adjunct Professor, Yves Oltramare Chair 23
New professor: Aditya Bharadwaj, Research Professor, Anthropology
and Sociology of Development 24
Launch of the LL.M. in International Law 25
Alumni 26
In Memoriam: Carlos Fuentes et le droit international – Marcelo Kohen 26
Thomas Helbling, PhD 2000 28
Macha Levinson, PhD 1974 29
Les nouvelles thèses | New Theses 30
LES PUBLICATIONS | NEW PUBLICATIONS 32
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013
DES CONDITIONS-CADRE
FAVORABLES
FAVOURABLE FRAMEWORK
CONDITIONS
Philippe Burrin, directeur | Director
N ous entrons dans une période où les conditions-
cadre de notre activité viennent d’être redéfinies
avec nos proches partenaires, les autorités publiques et
W e are now entering a phase where the framework
conditions that govern our activities have recently
been redefined with our close partners, the public author
l’Université de Genève. Le résultat est tout à fait satisfai- ities and the University of Geneva. The results are most
sant et favorisera la continuation de notre essor. satisfactory and will help promote our continued growth.
Le financement public pour les années 2013-2016 est ins- Public funding for the 2013–2016 period is enshrined in the
crit dans une nouvelle convention d’objectifs qui doit être new “Convention d’objectifs” to be signed shortly between
signée prochainement par l’Institut, la Confédération hel- the Institute, the Swiss Confederation and the State of
vétique et l’Etat de Genève. Les montants alloués sont Geneva. The level of subsidies is the same as that granted
ceux de 2012 et représentent une assurance de stabilité. in 2012 and provides assurances of stability.
Philippe Burrin. Parallèlement, une loi soumise par le gouvernement de At the same time, under a new law submitted for approval
Genève à l’approbation du parlement reconnaît l’Institut, by the Government of Geneva to the Parliament, the Institute
à côté de l’Université, comme l’une des hautes écoles sou- will now be recognised alongside the University of Geneva
tenues par le canton et souligne au passage le rôle parti- as one of the institutions of higher education supported by
culier qu’il joue à l’égard de la Genève internationale. the canton. The new law also underlines its special role with
Cette reconnaissance est bienvenue et fournit une base regard to International Geneva. This recognition is most wel-
juridique solide à une institution née il y a cinq ans de la come as it provides a legal basis for an institution born five
double volonté politique de Berne et de Genève et dont la years ago from the combined political will of Bern and
réussite est incontestée. Geneva and whose success has been proven.
Enfin, une convention a été signée récemment avec l’Uni- Finally, the Institute recently signed an agreement with
versité de Genève. Elle reprend l’essentiel de la convention the University of Geneva which builds on the one con-
précédente, qui date de 2006, en formalisant et en renfor- cluded in 2006 by formalising and strengthening cooper
çant la coopération entre les deux partenaires. Il en sortira ation between the two partners. This will add to the
une attractivité accrue de la place académique de Genève attractiveness of Geneva as an academic centre in the field
dans le domaine des études internationales. of international studies.
Ces conditions-cadre, auxquelles il faut ajouter l’achève- These framework conditions, to which must be added the
ment prochain de la Maison de la paix, donnent à l’Institut forthcoming completion of the Maison de la paix, will pro-
une forte assise pour la poursuite de sa stratégie d’excel- vide the Institute with a strong foundation from which to
lence dans ses missions principales – l’enseignement, la continue to pursue its strategy of excellence in its primary
recherche et la formation continue – et le développement missions – teaching, research and executive education –
de sa réputation en Suisse et dans le monde. and the continued development of its appeal in Switzerland
and in the world.
2 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013
NOUVELLE COMPOSITION
DU CONSEIL DE FONDATION
Jacques Forster, président du Conseil de fondation de l’Institut
Trois membres ont quitté le Conseil de fondation après plu- Mme Huber-Hotz a également suivi des études post-grade
sieurs années d’engagement au service de l’Institut. en aménagement du territoire à l’Ecole polytechnique
Mme Iris Bohnet a dû renoncer à poursuivre son mandat au fédérale de Zurich (EPFZ).
sein du Conseil en raison de la lourde charge de son poste
de doyenne académique de la Kennedy School of Beth Krasna est membre du
Government à Harvard, de même que M me Andrea Conseil des écoles polytechniques fédé-
Schenker-Wicki, qui a été nommée prorectrice de l’Univer- rales depuis 2003 et présidente du
sité de Zurich. Mme Anne-Christine Clottu Vogel, qui prési- comité d’audit depuis 2008. Elle siège
dait jusqu’en 2007 le Conseil de fondation de l’IUED, a aux conseils d’administration de la
exprimé le désir de se retirer du Conseil à la fin de la Banque Cantonale Vaudoise, de Bonnard
période couverte par la première convention d’objectifs de & Gardel Holding SA, de Coop et de Raymond Weil SA.
l’Institut, marquée notamment par le succès de la fusion Mme Krasna est également membre de l’Académie suisse
de l’IUHEI et de l’IUED. Le président du Conseil et le direc- des sciences techniques. Depuis mars 2010, elle préside
teur de l’Institut les remercient chaleureusement pour leur la Fondation en faveur de l’art chorégraphique, qui orga-
engagement et leur contribution au développement de nise le Prix de Lausanne. Elle a un diplôme en génie
l’Institut depuis 2007. chimique de l’Ecole polytechnique fédérale de Zurich
(EPFZ) et un MBA de la Sloan School du Massachusetts
Par ailleurs, trois personnalités ont rejoint le Conseil de Institute of Technology (MIT).
fondation de l’Institut en janvier 2013 : Mme Annemarie
Huber-Hotz, Mme Beth Krasna et M. Carlos Lopes. Deux Carlos Lopes est secrétaire géné-
d’entre elles, Mme Huber-Hotz et M. Lopes, connaissent ral adjoint des Nations unies et secré-
déjà bien l’Institut en tant qu’anciens. Le Conseil de fon- taire exécutif de la Commission
dation ainsi que le directeur de l’Institut se réjouissent de économique pour l’Afrique. Il a occupé
pouvoir compter sur leur expérience, leurs compétences plusieurs postes aux Nations unies, dont
et leur soutien. ceux de coordonnateur résident au Brésil
et au Zimbabwe, et de directeur pour les politiques de
Annemarie Huber-Hotz est développement au PNUD. Il a aussi été directeur des
présidente de la Croix-Rouge suisse affaires politiques pour le secrétaire général Kofi Annan,
depuis 2011. Elle a été chancelière de la directeur général de l’UNITAR et directeur de l’Ecole des
Confédération entre 2000 et 2007. De cadres des Nations unies. Il a enseigné dans plusieurs
1992 à 1999, elle a été secrétaire géné- universités comme professeur invité et fait partie d’une
rale de l’Assemblée fédérale, dont elle a douzaine de conseils d’institutions académiques.
auparavant dirigé le service scientifique et été secrétaire M. Lopes a un doctorat en histoire de l’Université de
du Conseil des Etats. Elle a fait des études de psychologie, Paris 1 Panthéon-Sorbonne et un doctorat honoris causa
de sociologie, d’ethnologie et de philosophie à l’Université en sciences sociales de l’Université de Candido Mendes,
d’Uppsala, en Suède, et de sciences politiques à l’Institut. à Rio de Janeiro.
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 3
CAMPUS
DE LA PAIX
Le pétale 4 de la Maison de la paix (premier plan), relié à la Maison des étudiants Edgar et Danièle de Picciotto (arrière-plan)
par la passerelle piétonne Sécheron-Nations. Janvier 2012. Photo Gérald SCIBOZ.
Les principaux éléments du Campus de la paix s’inscrivent des moyens supplémentaires ainsi qu’une réserve de sur-
aujourd’hui dans l’espace et modifient en profondeur la face pour l’avenir.
physionomie du quartier situé entre Sécheron et la place
des Nations. La maçonnerie des quatre premiers pétales est aujourd’hui
terminée et met en valeur la courbure et l’entrelacement
Après l’inauguration de la Maison des étudiants Edgar et des formes que nous devons à la créativité de notre archi-
Danièle de Picciotto en septembre 2012, la réalisation de tecte, Eric Ott, du bureau IPAS de Neuchâtel. La façade
la Maison de la paix aborde la dernière ligne droite dans double peau posée sur les deux premiers pétales ainsi que
une enveloppe architecturale cette fois définitive. sur les deux niveaux inférieurs qui forment le socle destiné
à accueillir la bibliothèque Kathryn et Shelby Cullom Davis
En effet, il a été décidé d’adjoindre aux quatre pétales pré- donne déjà une idée de la transparence et de l’élégance
vus initialement un cinquième et un sixième pétale. Ce du bâtiment une fois terminé.
choix, approuvé par le Conseil de fondation en octobre, a
l’avantage, d’un point de vue architectural, d’utiliser plei- Les collaborateurs et les étudiants de l’Institut s’installeront
nement le terrain dont l’Institut a la disposition grâce à la dans les deux premiers pétales et utiliseront la bibliothèque
générosité de la Fondation Hans Wilsdorf. Il permettra dès cet automne. Les pétales 3 et 4 seront achevés à la fin de
d’accroître la partie locative de l’immeuble et apportera l’année, les deux derniers pétales au milieu de 2014.
4 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013
INAUGURATION
MAISON DES ÉTUDIANTS
EDGAR ET DANIÈLE DE PICCIOTTO
D’une surface de 13 000 m2 sur 10 niveaux,
la Maison des étudiants offre :
72 studios
21 colocations de 2 ou 3 chambres
18 colocations de 4 chambres
23 appartements de 3 ou 4 pièces
entièrement meublés et équipés.
De gauche à droite, Jacques Forster, Daniel de Picciotto,
Danièle et Edgar de Picciotto, Philippe Burrin.
La Maison des étudiants Edgar et Danièle de Picciotto a
été inaugurée le 11 septembre 2012 en présence de
M. Edgar de Picciotto et de sa famille ainsi que de
M. Charles Beer, conseiller d’Etat en charge de l’Instruc-
tion publique. Conçue par le bureau Lacroix / Chessex, elle Charles Beer, conseiller d’Etat en charge de l’Instruction publique.
a été réalisée par l’Institut grâce à un don extrêmement Photos Eddy MOTTAZ.
généreux de M. Edgar de Picciotto, d’une contribution
substantielle de la Loterie romande et d’un emprunt ban-
caire auprès du Credit Suisse, le partenaire de l’Institut
en matière de financement de ses projets immobiliers.
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 5
MAISON DE LA PAIX
Vue générale du bâtiment.
Image Eric OTT,
IPAS Architectes SA.
Un nouveau don
Un don de 1,6 million CHF de la Loterie
romande servira à équiper la bibliothèque
de l’Institut de postes informatiques
pour la consultation du catalogue, ainsi
que du système RFID (Radio Frequency
Identification) qui permet un emprunt
automatique des ouvrages. Il permettra
également de terminer le catalogage
de fonds non encore numérisés. Ce don
Escalier hélicoïdal dans le pétale 1. augmentera le confort d’utilisation pour
Janvier 2012. les usagers et facilitera l’accès à des
Photo Gérald SCIBOZ.
collections importantes dans le champ
des relations internationales et des
études du développement. Il porte à près
de 35 millions CHF le total des dons
de mécènes (Fondation Hans Wilsdorf,
Mme Kathryn W. Davis, Fondation
Goehner) reçus pour la Maison de la paix.
http://campusdelapaix.ch
≥
6 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013
ÉCLAIRAGES | PERSPECTIVES
GLOBAL
GOVERNANCE OF
THE WORLD
TRADING SYSTEM
CHINA, Huaibei: A Chinese poultry seller waits for customers at her stall in a market in Huaibei, on 30 September 2010. China won a rare victory at
the WTO against the USA after a panel ruled that US restrictions on Chinese poultry imports are illegal. AFP/CHINAXTRA.
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 7
ÉCLAIRAGES | PERSPECTIVES
ÉCLAIRAGES | PERSPECTIVES
INTRODUCTION
Richard Baldwin, Professor of International Economics;
Co-Director, Centre for Trade and Economic Integration
CAMBODIA, Phnom Penh: US Secretary of State Hillary Clinton joins hands with other foreign ministers during the opening of the East Asia Summit held on
the sidelines of the 45th Annual Ministerial Meeting of the Association of Southeast Asian Nations (ASEAN) on 12 July 2012. AFP/HOANG DINH Nam.
World trade governance is at an histori- new century has seen massive liberal diverging leading world trade govern-
cal crossroads. The world’s most impor- isation of trade in goods and services ance towards a fragmented and exclu-
tant trade talks – the WTO’s Doha Round – much of it by nations that disparaged sionar y system dominated by
– have slipped into a coma while key trade liberalisation for decades. But something akin to the 19th century
nations play a waiting game. Traditional unlike last century, almost none of this Great Powers arrangement.
approaches – practices that worked has occurred under the WTO’s aegis.
wonders in the 20th century – have By default, the world is pursuing the To date, these changes seem more like
failed in the new century. Nevertheless, regional and bilateral road. challenges than threats. The key play-
trade liberalisation is as popular as ever. ers believe the world trade system will
While some crisis-linked barriers have It is increasingly obvious that the bilat- continue to be anchored by the WTO’s
been erected, these are not of first-order eral/regional road and the multilateral shared values, such as reciprocity,
importance – or at least not yet. The roads are not parallel. They are transparency, non-discrimination, and
8 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013
“World trade governance
is at an historical
crossroads… Traditional
approaches – practices that
worked wonders in the
20th century – have failed
the rule of law. WTO-anchorage allows in the new century.”
each member to view its own policies
as minor derogations. Yet, at some point, disciplines are being supplanted by example of ASEAN, he notes they may
derogations become the new norm. The regional rules. Joost Pauwelyn takes a help sort out complexity and contribute
steady erosion of the WTO’s centricity different tack by noting that the WTO’s to convergence, but they also raise a
will sooner or later bring the world to lack of progress on big, formal deals is series of questions about the feasibil-
a tipping point – a point beyond which part of a general trend, what he calls ity of such solutions and interleaving
expectations become unmoored and informal international lawmaking – non- of regional and global organisations.
nations feel justified in ignoring WTO traditional actors (national regulators,
norms since everyone else does. central banks, cities or private actors) The contribution by former WTO
engaged in non-traditional processes Ambassador, Manuel A.J. Teehankee,
This special issue of Globe gathers a (networks or schemes rather than for- who is now a visiting fellow at the
range of insights into the challenges mal international organisations) and Graduate Institute Centre for Trade and
facing global trade governance in the non-traditional outputs (guidelines, Economic Integration, focuses on a
21st century. It leads with an interview standards or arrangements rather than narrower but more novel issue – export
with WTO Director General Pascal treaties). Noting that new technologies controls. Taking the example of rare
Lamy in which he highlights, inter alia, have reduced costs of networked co earths, he points out that the WTO is
the risk of a proliferation of different operation, broader groups of stakehold- struggling with the balance between
standards or regulations that may, inad- ers can now get involved in international competing national norms and preroga-
vertently or otherwise, “lead to trade cooperation efforts. At the same time, tives, and the quest to foster and pre-
slowing down and/or rising trade ten- our complex, diverse and rapidly evolv- serve a global commons of prosperity
sions”. He points out that regional deals ing society makes formal treaty-based and opportunity for all.
are politically cheaper, but economi- solutions often too difficult to achieve
cally lower quality. and too rigid. Traditional international Following the narrower focus, the
law – organisations such as the WTO essay by Andres Lendle points out that
Most of the other contributions focus – may simply not be adapted to the new the “spaghetti bowl” of tariff prefer-
on aspects of the regional road. My realities. In this world view, the WTO ences is much less pernicious than it
own essay stresses the point that the travails are not a passing issue; it is the might at first appear. While there are
WTO is doing just fine when it comes writing on the wall telling us what hundreds of preferential trade agree-
to traditional trade – trade where things future global governance will look like. ments on the books, most are not very
are made in one nation and sold in preferential. On most goods and in most
another. But when it comes to supply- Taking a slightly more traditional nations, the baseline tariffs are very
chain trade – cross-border flows of approach, Cédric Dupont examines how low (so little preference is gained from
goods, investment, services, know-how regional multi-nation organisations are duty-free access), and most of the high-
and people associated with interna- playing a role in the regional road the tariff items are excluded from the pref-
tional production networks – WTO world seems to be on. Focusing on the erential deals. •
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 9ÉCLAIRAGES | PERSPECTIVES
INTERVIEW OF PASCAL LAMY
DIRECTOR GENERAL
OF THE WORLD TRADE ORGANIZATION
Looking back on your 8 years and on measuring trade in value added What role do you think
at the helm of the WTO, what are which we are developing in collabora- independent organisations like
your views on progress? tion with other organisations like the the Graduate Institute should
Well, it depends on how you define OECD and UNCTAD. play in the development
progress. In many ways, our organisa- of the world trade system
tion has progressed a great distance. We have implemented a variety of in general and the work of the
important measures to improve the WTO in particular?
We have strengthened our capacity to efficiency and functioning of the Raising awareness of the organisa-
monitor developments in the trading Secretariat and we have renovated and tion and what it does. In the past,
system and this has been vital during expanded our headquarters, making it there was so much misinformation
the economic crisis as it has enabled both a more friendly environment and about the WTO and about trade that
us to keep tabs on governments’ imple- more environmentally friendly. we became something of a mythical
mentation of trade restrictions. Issuing creation in the minds of some. Over
our bi-annual report card on these We have also enhanced our relations time, thanks in part to institutions like
developments has had an important within the Lake Geneva community. yours, these sentiments have changed.
deterrent effect on the application of Our Public Forums and Open Day events We have become far better known
these restrictions. have been very successful at introdu and this has helped to shift opinion
cing to the public our organisation and more in our favour. This is particularly
We have moved closer to our goal of its objectives. We have worked closely true in developing countries where
universal membership by adding new with important institutions like the many have now come to see the WTO
members including Russia, Saudi Graduate Institute and IMD, with local as a place where they can stand up
Arabia, Vietnam and Ukraine, and business leaders, media, civil society for their commercial rights, win dis-
smaller countries like Montenegro, and, of course, the city and cantonal putes against great powers and work
Samoa and Vanuatu. governments. with other developing countries to
advance an agenda that is meaning-
Our work with international organisa- An area where we have been frustrated ful for them.
tions has been greatly enhanced by lack of progress has been the Doha
through a variety of programmes like Development Round negotiations. We This does not happen in too many other
Aid for Trade, but also through less have achieved some important nego- international fora. This is not to say
formal interactions including joint tiating results in the areas of govern- that we do not have problems and
research, seminars and frequent con- ment procurement and issues of imperfections. We certainly do. What
tacts between WTO officials and those importance to our poorest members. is important is that scholars, non-gov-
in other organisations. But the challenging economic and geo- ernmental organisations, journalists
political environment since 2008 has and businesses correctly identify
We have launched ground-breaking not been conducive to brokering agree- where the problems lie so that we can
work on the functioning of value chains ment on the Doha Round. set about fixing them.
10 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013Pascal Lamy at the Opening of the Academic Year of the Graduate Institute at the World Trade Organization on 3 October 2012. Photo Eric ROSET.
Do you view the “mega-regionals”, of peak tariffs (15% or higher) are eli- And we should not underestimate the
like TPP and TAP, as posing gible for reduction under preferential danger of competing – or even conflict-
a different challenge to the WTO trade arrangements. Moreover, busi- ing – trading blocks. When such trad-
than the many bilateral RTAs nesses often are confused about the ing arrangements are superimposed
since 1990s? multitude of rules of origin, tariff struc- over a paradigm of rising geopolitical
At one level no and at another level tures, customs requirements that are tension and rivalry, the danger grows.
yes. We have had mega-regionals part and parcel of such bilateral agree-
before. The joining of Europe into a ments. This is why only around one- How this situation evolves depends
Single Market created the largest trad- quarter of businesses surveyed in Latin on a number of factors including the
ing power in the world. NAFTA is an America and Asia actually trade under true objectives behind entering into
enormous trading area. ASEAN, APEC, the terms of bilateral agreements. The these relationships. If the objective
all of these trading entities are big. The risk is a proliferation of different stand- is opening trade, there can be bene-
WTO, and the GATT before it, contin- ards or regulations, which are less fits, but this depends on how such an
ued to operate successfully. In fact, transparent than duties. While such opening takes place and what strings
many of these preferential trading measures are normally drafted to are attached. If we are to avert this,
arrangements affect trade far less than address real problems, they can inad- we need to “multilateralise” regional-
you might imagine. We at the WTO vertently or otherwise, lead to trade ism through enhanced global rules
have studied this situation closely and slowing down and/or rising trade ten- and market opening. •
we have determined that around 85% sions. These kinds of agreements are
of trade today takes place under MFN politically cheaper, but economically
or WTO tariffs. Only about one-third lower quality.
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 11ÉCLAIRAGES | PERSPECTIVES
21st CENTURY TRADE AND
GLOBAL TRADE GOVERNANCE
WHAT FUTURE FOR THE WTO?
Richard Baldwin, Professor of International Economics;
Co-Director, Centre for Trade and Economic Integration
of trade, investment, and services by
WTO members – including nations like
India, Brazil, and China that disparaged
liberalisation for decades. In fact, WTO
members are advancing the WTO’s
liberalisation goals unilaterally, bilat-
erally or regionally – indeed almost
everywhere except inside the WTO.
Interestingly too, the malaise does not
reflect WTO unpopularity. The organi-
sation continues to attract new mem-
bers – even powerful nations like
Russia – despite the high political price
of membership. Finally, it does not
reflect WTO irrelevance: WTO dispute
settlement procedures are increasingly
popular, with an ever wider range of
members using them. In short, when
it comes to 20th century trade and
trade issues, the WTO is in excellent
health.
China, Shanghai: A visitor walks by auto parts during an exhibition in Shanghai on 22 August 2007.
The WTO on 18 July ruled against China over its auto parts dispute with the United States, the European Union The WTO’s woes stem rather from the
and Canada. IMAGINE CHINA/JING WEI.
emergence of a new type of trade,
The world has changed; the WTO has over tariffs and agricultural barriers, which is intimately tied to the unbund
not. The cross-border flows of goods, the WTO seems unable to move for- ling of production (global value chains).
investment, services, know-how and ward on anything. Stalwart WTO mem- It has reshaped the geography of global
people associated with international bers are looking elsewhere for the new production. And – since joining a sup-
production networks – “supply-chain disciplines needed to underpin 21st ply chain is the fast route to industri-
trade” for short – has transformed the century trade. alisation – unbundling is also at the
world. The WTO has not kept pace. heart of emerging market growth,
This failure is paradoxical. The malaise which has in turn reshaped the geog-
Instead, it seems trapped in a deep does not reflect anti-liberalisation sen- raphy of global demand. In this new
malaise. Unable to conclude the Doha timents. Quite the contrary; the new configuration, protectionism has no
Round due to 20th century conflicts century has seen massive liberalisation place. Indeed, countries that establish
12 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013“The real threat,
[…] is not failure of
the WTO, but rather
the erosion of its
protective barriers will find themselves to cover new areas of cooperation. In centricity in the
world trade system.”
looking on as manufacturers take their the pessimistic version of this scenario,
custom elsewhere, thereby excluding lack of progress will undermine politi-
them from global supply chains. cal support and WTO disciplines will
Protectionism has become start to be widely flouted; the bicycle, nations (international supply chains
destructionism. so to speak, will fall over when forward are still rare in Latin America and
motion halts. Africa), but the most dynamic aspect
The new trade needs new rules – dis- of trade today is the development of
ciplines that go far beyond the WTO’s. Under the second scenario, the WTO’s international value chains.
To date, virtually all of the necessary centricity is reinvigorated. In this scen
governance has emerged spontan ario, the organisation engages in 21st Where the WTO’s future seems cloudy
eously in regional trade agreements or century trade issues both by crafting is on the 21st century trade front. The
via unilateral “pro-business” policy new multilateral disciplines – or at least demands for new rules and disciplines
reforms by developing nations. The real general guidelines – on matters such governing the nexus of trade, invest-
threat, therefore, is not failure of the as investment assurances and by multi ment, services, intellectual property,
WTO, but rather the erosion of its cen- lateralising some of the new disciplines and business mobility are being for-
tricity in the world trade system. that have arisen in regional trade mulated outside the WTO. Developing
agreements. nations are rushing to unilaterally lower
This suggests that the WTO’s future their tariffs (especially on intermediate
will take one of two forms. In the first, There are many variants of this future goods) and unilaterally reduce behind-
the WTO will remain relevant for 20th outlook. The engagement could take the-border barriers to the trade-invest-
century trade and the basic rules of the form of plurilaterals where only a ment-services-IP nexus. Most nations
the road, but irrelevant for 21st century subset of WTO members sign up to the are rushing to sign bilateral investment
trade; all “next generation” issues will disciplines. Examples of this are found treaties, and “deep” regional trade
be addressed elsewhere. in the Information Technology agreements that provide the 21st cen-
Agreement and the Government tury disciplines. All of this has mark-
In the optimistic version of this scen Procurement Agreement. It could also edly eroded the WTO centrality in the
ario, which seems to be where the cur- take the form of an expansion of the system of global trade governance.
rent trajectory is leading us, the WTO Doha Round agenda to include some
will remain one of several pillars of of the new issues that are now rou- The implication of this is clear. The
world trade governance. This sort of tinely considered in regional trade WTO’s future will either be to stay on
outcome is familiar from the EU’s three- agreements. the 20th century side-track on to which
pillar structure, where the first pillar it has been shunted, or to engage con-
(basically the disciplines agreed in trea- Of course, 20th century trade is still structively and creatively in the new
ties up the 1992 Maastricht Treaty) with us, and is important in some goods range of disciplines necessary to under-
was supplemented by two new pillars (e.g. primary goods) and for some pin 21st century trade. •
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 13ÉCLAIRAGES | PERSPECTIVES
THE RISE OF INFORMAL INTERNAL
LAWMAKING AND TRADE GOVERNANCE
Joost Pauwelyn, Professor of International Law;
Co-Director, Centre for Trade and Economic Integration
Historically, the world trading system especially in the field of finance, health, responses, designing adequate, coun-
evolved from a power-based to a rules- food safety and the environment, but try-specific solutions and interactive
based regime. Yet, legalisation of world more recently also in trade (e.g. adoption and continuous monitoring
politics may have passed its high-water Kimberley Scheme on Conflict of results.
mark. While the 1990s saw the cre Diamonds, APEC list of environmental
ation of the WTO, the International goods, Wassenaar Arrangement on In terms of non-traditional outputs and
Criminal Court and Kyoto Protocol, the export controls of arms, WTO commit- processes, countries should consider
number of formal treaties concluded tee guidelines on international stand- creating some agreements that are not
ards, aid for trade platforms). New subject to formal dispute settlement
“Informal technologies have reduced costs of or even mere guidelines with flexibility
international
networked cooperation and made it for domestic implementation and future
accessible to a broader group of stake- adaptation subject to peer review and
lawmaking […] holders. At the same time, our complex,
diverse and rapidly evolving society
less adversarial monitoring mecha-
nisms. At times, the incentive structure
represents a makes formal treaty-based solutions
often too difficult to achieve and too
to comply with soft or informal law has
proven to be more effective than that
complementary rigid. Traditional international law is,
in many cases, simply not adapted.
of hard law. Although some trade
issues will continue to be addressed
model to the To adequately regulate 21st century
in traditional WTO and preferential
trade agreements, many problems in
existing formal trade, negotiators need to more
actively engage with other actors. Both
today’s networked knowledge society
are increasingly difficult to address
WTO structure.” the WTO and its members must estab-
lish better and more direct lines of com-
through the rigidity of treaties and adju-
dication. Informal lawmaking is, in this
in the 2000s is down dramatically. This munication with the private sector, sense, no longer a second-best option
stagnation of formal international law consumer organisations and sector- but increasingly the first-best, optimal
has come hand in hand with a consid- specific regulators, agencies and solution.
erable rise in “informal international administrators to tap into their expert
lawmaking” involving non-traditional ise and resources and facilitate adop- Remains the question of how account-
actors (regulators, central banks, cit- tion and implementation of trade deals. able or democratic such informal law-
ies or private actors), non-traditional This type of outreach should not make making processes and outputs are.
processes (networks or schemes rather deals more difficult (these non-state And here is the surprising thing.
than formal international organisa- actors should not have a veto). It should Traditional international law is based
tions) and non-traditional outputs rather make deals easier and more on what one could call “thin state con-
(guidelines, standards or arrangements effective, by collecting relevant infor- sent”: simple agreement by central
rather than treaties). Examples abound mation, sharing tested and failed state representatives is enough to
14 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013PAKISTAN, Karachi: This picture taken on 7 February 2012 shows a Pakistani employee working at a textile factory in Karachi. The European Union is Pakistan’s largest
trading partner, receiving nearly 30 percent of its exports – worth almost 3 billion euros (USD 3.9 billion). AFP/Asif HASSAN.
make law and justify its legitimacy. continuously test and adjust the rel- informal international lawmaking. This
No questions are asked about how evant standard to evolving realities begs the obvious question of whether
representative these state actors are, and demands. Not all informal inter- formal international law should be held
how workable or coherent the pro- national law meets this benchmark, against the benchmark of “thick stake-
posed solution is or whether domestic but an increasing amount of it does; holder consensus”. For one thing, the
parliaments had effective oversight. where it does not, adjustment to align WTO is not an “open” organisation as
Contrast this to the way most informal to best practices is much easier than it requires consent of all existing WTO
international lawmaking occurs. Here, reforming the WTO or UN. In this members before a new member can
a set of best practices are emerging sense, informal international lawmak- join. More importantly, one could ques-
which amount to what one could call ing can be more effective, legitimate tion whether today rule-development
“thick stakeholder consensus”. In other and accountable. in the WTO sufficiently involves all
words, guidelines, standards or other stakeholders and meets standards of
restrictions on freedom only occur In a recent WTO dispute, the Appellate transparency, coherence and
when they emanate from a recognised Body imposed something akin to “thick adaptability.
authority or rule-maker (e.g. based on stakeholder consensus” before the
representativeness, expertise or a his- WTO would accept an outside stand- Informal international lawmaking is on
tory of effective coordination), are sup- ard as an “international standard” that the rise. It represents a complementary
ported by all relevant stakeholders WTO members must use as a basis for model to the existing formal WTO struc-
(not just central state representatives), their domestic technical regulations ture. These new methods of govern-
are based on consensus (with no veto pursuant to the Agreement on Technical ance are not always second-best to a
for individual actors) and were devel- Barriers to Trade. This is a welcome formal treaty. Increasingly, they are
oped through open, inclusive and development that should exercise qual- the best way forward both in terms of
transparent procedures which ity control over an important part of effectiveness and accountability. •
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 15ÉCLAIRAGES | PERSPECTIVES
REGIONAL ECONOMIC ORGANISATIONS
AS INTEGRATIVE CENTRES?
THE CASE OF ASEAN
Cédric Dupont, Professor of International Relations/Political Science
In a world marked by a proliferation of active collaboration and mutual assis- a regional financing arrangement with
bilateral trade (and investment) agree- tance on matters of common interest. China, Japan and South Korea. This
ments, more “traditional” regional eco- Despite several expansions in the initiative comprises an expanded
nomic organisations have been battling 1990s to include liberalising “socialist” ASEAN swap arrangement (ASA) and
what several analysts have called “the economies in the region and various a network of bilateral swap arrange-
risk of irrelevance”. This risk has been high-level initiatives to advance col- ments (BSAs) among participating
particularly salient for the Association lective liberalisation commitments, countries. If the prospect of an East
of South East Asian Nations (ASEAN), ASEAN has largely failed to achieve Asia Free Trade Area (EAFTA) is added
significant trade liberalisation among to this, the effect would be to multi-
its members; further, it has a mixed lateralise free trade from the current
record as a forum for nurturing peace sets of ASEAN + 1 agreements with
“The case of and “caring societies”. As a result, it
has gradually lost visibility and now
China, Japan and South Korea;
ASEAN+3 stands out as the most nat-
ASEAN […] brings sits in the middle of a thick “noodle
bowl” of bilateral preferential trade
ural focal point or “integrative centre”
in Asia. Yet, it is unclear what it would
contrasting lessons agreements in the region. mean for the future of ASEAN.
as to the role of To regain momentum, ASEAN has Another regional initiative launched
regional economic
sought to carve out a new regional role by ASEAN has been the East Asia
for itself through a series of initiatives Summit, an ASEAN + 6 (ASEAN + 3
organisations in the intended to develop relationships with
major states in the broader region and
+ India, Australia and New Zealand)
structure created in 2005. The idea
current governance even beyond with the “global commu-
nity of nations”. As a group, it has been
here has been to build upon all the
existing ASEAN + 1 agreements to
of the world trading at the centre of a “widening complex”
of regional initiatives that started in
develop a regional comprehensive eco-
nomic partnership (RCEP). In 2011,
system.” the aftermath of the Asian financial
crisis in the late 1990s and has contin-
ASEAN leaders adopted the guiding
principles and objectives of the part-
ued since then. In addition to signing nership and recently refined them with
free trade agreements with individual the addition of a specific timetable for
established in August 1967 by five non-member countries, such as China, negotiations (with a 2015 deadline for
countries – Indonesia, Malaysia, India, Japan or South Korea (ASEAN + 1 completion). A key principle is that
Philippines, Singapore, and Thailand agreements), ASEAN took the initia- negotiations “will recognise ASEAN
– with the triple aims to accelerate tive to launch broader and deeper centrality in the emerging regional eco-
economic growth, promote regional schemes, beginning with the estab- nomic architecture”. There is, however,
peace and stability, and encourage lishment in May 2000 of ASEAN + 3, still high uncertainty about what this
16 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013INDONESIA, Malang: A worker walks in a market warehouse in Malang in East Java province full of freshly harvested cabbages for export to neighboring Association of
Southeast Asian Nations (ASEAN) countries Malaysia and Brunei on 12 December 2012. AFP/Aman ROCHMAN.
will mean in practice and what the end competition for its regional centrality, members) in 2010 came up with the
result could be. On the one hand, there in particular from the Trans-Pacific goal to create a Free Trade Area of the
is willingness to address the problem Strategic Economic Partnership (TPP) Asia-Pacific (FTAAP).
of the noodle bowl of preferential trade launched in 2006 by four small econo-
agreements through some sort of multi mies (P4 group), including two ASEAN The case of ASEAN thus brings con-
lateralisation of benefits, but on the members, Singapore and Brunei. This trasting lessons as to the role of
other hand, the guidelines for RCEP initiative has since attracted the inter- regional economic organisations in the
state that “the ASEAN + 1 FTAs and est of bigger economies, in particular current governance of the world trad-
the bilateral/plurilateral FTAs between the USA and Australia, but also of two ing system. While it highlights their
and among participating countries will additional ASEAN members, Malaysia potential relevance for sorting out com-
continue to exist and no provision in and Vietnam. Negotiations for a high- plexity and contributing to convergence
the RCEP agreement will detract from standard agreement (traditional and and fewer international distortions in
the terms and conditions in these bilat- “new” trade issues, with efforts toward economic competition, it also raises a
eral/plurilateral FTAs between and regulatory convergence, trade and series of questions about the feasibil-
among the participating countries”. investment in innovative industries) ity and implementation of stated solu-
started in 2010 and led to a broad out- tions as well as ultimately about the
What seems to be certain is ASEAN’s line of an agreement in November 2012. destiny of regional organisations if the
willingness to prove its relevance as a Another competitor has been the Asia wider pan-regional schemes do see
force for integration in the most eco- Pacific Economic Cooperation forum the light of day. From this perspective,
nomically dynamic region of the world (APEC) that has also been fighting irrel- regional economic organisations may
at a time when further efforts at the evance in the 2000s and whose 21 face a choice between irrelevance and
global level are deadlocked. Yet, it faces member countries (including ASEAN disappearance. •
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 17ÉCLAIRAGES | PERSPECTIVES
RARE EARTHS
EVOLVING TRADE AND RESOURCE
POLICY ISSUES
Ambassador Manuel A.J. Teehankee, PhD Candidate in International Law;
Researcher, Centre for Trade and Economic Integration
earths have been the subject of dispute natural resource exporting raises the
hearings at the WTO. But there is also nation’s exchange rate to a level that
much action at the bilateral level. In makes its manufacturing exports
November 2012, Japan and India uncompetitive, or the so-called
signed a joint venture memorandum Resource Curse in which economic and
between state-owned Indian Rare political mechanisms produce low
Earths Limited and the Toyota Tsusho growth outcomes in nations with abun-
Corporation for the export of Indian dant natural resources.
rare earths.
At a more general international-law
At the multilateral level, there are con- level, multilateral conflicts over rare
cerns that the Chinese supply of these earths will test the apparent conflict
strategic minerals has reached near- between open access trade rules and
monopoly levels – over 90% of world the principle of permanent sovereignty
output comes from China – with Japan, over natural resources.
the US and the EU questioning Chinese
export restrictions. These involve impo- Rare earths also appeared on the
sition of export duties, export quotas, broader Asian security agenda when
minimum export prices, and other pro- China considered using trade restric-
cedures. The WTO will be examining tions as a sanction against Japan in
these measures against the framework the tension over the Senkaku/Diaoyu
AUSTRALIA, Olympic Dam: An aerial view of WMC Resources’
Olympic Dam uranium mine – the world’s largest uranium deposit – of the “General Exceptions” (Article islands. This has prompted Japanese
in the remote outback of South Australia, 22 November 2004. XX) of the GATT. hybrid car producers to search for tech-
AFP/Colin MURTY. nological alternatives and significantly
Article XX has often helped prevent reduce demand. In turn, Chinese mines
Global trade governance faces new conflict or offered balance between have had to reduce production, a tes-
challenges. One of these is export bar- open multilateral trade and national timony to the complex links between
riers, especially for raw materials. resource conservation policies – help- trade and international politics.
Problems have arisen because the WTO ing to foster good resource manage-
is much less specific about export bar- ment practices, while avoiding Policy alternatives for strategic miner-
riers than it is about import barriers. protectionist conduct. This requires als will be an interesting area for
considering economic justifications of research and should prompt healthy
An issue that typifies new concerns is natural resource management policies debate on how competing norms can
trade in so-called “rare earth that counter well-known development be reconciled with efforts to foster and
elements.”This has become highly con- problems. These include the so-called preserve global prosperity and oppor-
tentious. Trade and investment in rare Dutch Disease whereby success in tunity for all. •
18 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013HOW PREFERENTIAL
IS WORLD TRADE?
Andreas Lendle, PhD Candidate in International Economics;
Researcher, Centre for Trade and Economic Integration
The debate about how the global trad-
ing system will be governed in the
future is very much alive. The Doha
Round is unlikely to be concluded any
time soon, and despite the fact that
most scholars and policy-makers agree
that a multilaterally governed trading
system is far preferable to one gov-
erned by regional or bilateral agree-
ments, such preferential agreements
are proliferating at high speed. Not
only is their number increasing, but
such agreements are now also envis- CHINA, Geely vehicles park in Shanghai harbour, ready to be exported to foreign markets. 2011. AFP/Xinhua/Han CHUANHAO.
aged between very large trading part-
ners, such as the EU and Japan, or Despite this very active debate about preference could not be given in any
Japan and China. the pros and cons of preferential trade case. The remainder is dutiable trade
agreements, one quite central aspect not eligible for any preferences, and a
One reason why countries seem to of this had so far not been analysed: large share of that trade faces duties
be willing to engage actively in more how much of today’s global trade in below 5%.
and more preferential agreements, goods is actually “preferential”?
while on the other hand show little Preferential trade should be under- These numbers show that despite the
willingness to conclude the Doha stood as trade flows for which appli- hundreds of FTAs currently existing,
Round, is arguably that the agendas cable customs duties are below MFN tariffs for the wide majority of global
are different. The Doha Round tack- rates (i.e. those that a WTO member trade flows are still essentially non-
les issues such as agricultural subsi- grants to any other country). discriminatory. With new FTAs being
dies and significant tariff cuts for signed, the share of preferential trade
industrial products, which are highly The result is somewhat surprising. Only is likely to increase over the next years.
controversial. In contrast, preferential around 16% of global trade flows are While this is not good news for sup-
agreements often exclude the most actually preferential. The tariff advantage porters of a multilateral, non-discrim-
contentious issues. By doing so, the for most preferential trade flows is also inatory global trading system, the
level of real liberalisation achieved fairly small. Less than 2% of trade flows relatively small shares of current pref-
through such agreements is likely to are eligible for preferences with a margin erential trade show that multilateral-
be lower. However, preferential agree- of more than 10% of the import value. ism is still very much alive. •
ments also increasingly include issues
that go beyond what is negotiated in Around half of current global trade is http://voxeu.org/article/how-preferential-world-trade
the WTO. subject to zero MFN rates, for which a ≥
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 19LA VIE DE L’INSTITUT
INSTITUTE NEWS
WHAT IS THE USE OF ECONOMICS?
Amartya Sen, Professor, Harvard University; 1998 Nobel Memorial Prize in Economic Sciences
During the Opening Lecture, Professor Amartya Sen
explained why economics is an inexact science – and
why this is a good thing – and how drawing on economic
history can help inform policy-making to address con-
temporary global challenges.
On economics as a science
“ Economics has been called the dismal science. It’s
certainly not a rose garden. It could not be. Many
dismal things happen in the economic world: unemploy-
ment and poverty, terrible deprivations and gross inequa-
lity, hunger and famines, and so on. The subject of
economics can hardly stay clear of these grim realities.
The real difficulty that arises in trying to understand eco-
Amartya Sen. Photo Eric ROSET.
nomics as a dismal science is not its dismal nature, but
its epistemological status. Is this allegedly dismal science
Distinguished Economist Amartya Sen was invited to a science at all? […] One apparent concern relates to the
the Institute on 3 October 2012 to deliver the Opening lack of precision in social analysis. Precision is often taken
Lecture of the Academic Year and to receive the first to be a defining characteristic of science. […] But appro-
Edgar de Picciotto International Prize. Attributed priate specification of inescapable imprecision is part of
every two years, the prize rewards internationally
renowned academics, whose research has contributed
the discipline of science in this case.
”
to the better understanding of global challenges and
has inspired policy-makers. The prize was created to
pay homage to Mr de Picciotto and his family whose
“ Does economics yield some legitimate views about
the nature of the practical world around us? I’d like
to argue that it does. […] This is relevant for reasoned
exceptionally generous support contributed in large policy-making. Economics may not [offer] a single, defi-
part to the financing of the Institute’s Student House. nitive view of what should be done. And even when there
is an agreement on underlying values, it can still produce
divergent views of exactly what should be done. But
Webcast of the Opening Lecture nevertheless, despite the existence of some differences
http://graduateinstitute.ch/video-sen within an acceptable reading, there could be a solid basis
≥ there for questioning policies that are accepted with ina-
≥
Video interview of Professor Amartya Sen by Professor Jean-Louis Arcand
http://graduateinstitute.ch/interview-sen
dequate or bad reasoning.
”
20 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013Jacques Forster, Chairman of the Institute’s Foundation Board. Photo Eric ROSET.
On the economics of famine […] There is in fact plenty of evidence in the history of the
“ It’s easy for economic policy and corresponding politics
to be imprisoned in an unquestioned belief that food
supply, and not people’s incomes and entitlements in the
world that indicates that the most effective way of cutting
deficits is through resisting recession, combining deficit
reduction with rapid economic growth. The huge deficits
market economy, is the central causal factor behind the after the Second World War largely disappeared with fast
occurrence of famine. […] Many of the major famines have,
in fact, occurred without any reduction at all of food avail
economic growth in the post-war years.
”
ability per head […]. Some famines have occurred in years
of peak food availability as was the case in the Bangladesh “ I would argue that one of the worst aspects of the
policy of austerity being comprehensively imposed
Famine of 1974.
” along with reform has been the undermining of the feasi-
bility of real reform, by the confounding of two distinct
“ It also becomes clear that starvation in famine is typi-
cally associated with the selective decline in the econo-
mic means and entitlement of particular occupation groups,
agendas. One agenda involves the reform of bad adminis-
trative arrangements and practice, such as people evading
taxes, or government using favouritism, or for that matter,
often even a small occupation group, resulting from several preserving unviable conventions about retiring age. […]
possible causal economic factors such as severe unemploy- Another agenda is austerity in the form of ruthless cuts in
ment […] Or a collapse of the relative price of commodities public services and basic social security. A serious econo-
on the sale of which many people’s livelihoods depend.
On the problems in Europe
” mic analysis would tend to bring out sharply the distinction
between those two. […] Bundling the two distinct issues
together, reform and austerity, is not only intellectually
“ There’s nothing particularly surprising about the prob confused. It can also lead to a policy disaster, as it seems
lems of balance of payment and other economic adver-
sities that many of the European countries, Greece, Spain,
Portugal, have faced given the inflexibility of the Euro zone’s
to have in Europe.
”
On the importance of reasoned economic
insistence on no exchange rate adjustment and no inde- understanding
pendent monetary policies. […] I do believe that every
country can be competitive at some set of prices. […] But “ So I end this lecture by emphasising the need for learn
ing from reasoned economic understanding, which is
you have to get the prices right.
” important today and will remain so in the future.
Unfortunately, there may have been some loss both in the
“ Austerity is an odd way of cutting deficits because as
[John Maynard] Keynes noted, a reduction in someone’s
expenditure tends also to reduce other people’s income,
quality of theoretical reasoning and in sound empirical ana-
lysis in the alleged economics underlying policy thinking
in Europe in recent years and the associated features of
which may be a good thing to do in a situation of inflation,
but it’s not really cut out for the present situation of conti-
nued recession, little inflation, and massive unemployment.
contemporary European politics.
”
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