Economic Globalization,International Organizationsand Crisis Management
Springer-Verlag Berlin Heidelberg GmbH
Richard Tilly . Paul J. J. Welfens (Eds.)
Economic Globalization, International Organizations and Crisis Management Contemporary and Historical Perspectives on Growth, Impact and Evolution of Major Organizations in an Interdependent World
With 11 Figures and 20 rabIes
i Springer
Praf. Dr. Richard Tilly University of Miinster Institute for Economic- and Socialhistory Spiekerhof 40 48143 Miinster Germany
Prof. Dr. Paul J.J. Welfens University of Potsdam European Institute for International Economic Relations (EIIW) August-Bebel-Str. 89 14482 Potsdam Germany http://www.euroeiiw.de
ISBN 978-3-642-63010-1
Library of Congress Cataloging-in-Publication Data Die Deutsche Bibliothek - CIP-Einheitsaufnahme Economic Globalization, International Organizations and Crisis Management: with 20 tablesl R. Tilly, P.J.J. Welfens (eds.). - Berlin; Heidelberg; New York; Barcelona; Hong Kong; London; Milan; Paris; Singapore; Tokyo: Springer, 2000
ISBN 978-3-642-63010-1 ISBN 978-3-642-57110-7 (eBook)DOI 10.1007/978-3-642-57110-7
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© Springer-Verlag Berlin Heidelberg 2000 Origina1ly published by Springer-Verlag Berlin Heidelberg New York in 2000 Softcover reprint of the hardcover l st edition 2000
The use of general descriptive names, registered names. trademarks, etc. in this publication does not imply. even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.
Hardcover-Design: Erich Kirchner, Heidelberg
SPIN 10724096 43/2202-5 4 3 2 1 O - Printed on acid-free paper
This conference volume is dedicated to the late
Wolfgang Rieke
who was a leading economist at the Deutsche Bundesbank for many years. Herepresented the wisdom ofthe Deutsche Bundesbank on many occassions and hisopen critical mind enriched the discussions and deliberations of many meetings
and conferences. Wolfgang Rieke did much to further our understanding ofinternational monetary problems and issues of cooperation.
His voice will be missed.
Richard Tilly and Paul JJ Welfens
Table of Contents
Introduction
Richard Tilly and Paul J.J. Welfens
I. Early Internationalization and Present Policy Coordination
1
A. Globalization of the Economy and International Organizations:
Developments, Issues and Policy Options for Reform 13
Paul J.J. Welfens
1. Introduction 132. Internationalization of the Economy 16
2.1 Rising International Trade 172.2 The Increasing Role of Foregin Direct Investment
and Portfolio Investment 192.3 Global Telecoms Networks and New Communication
Technologies 222.4 Increasing High Technology Competition 232.5 Multinational Companies: Regional Concentration
and Issues of Innovation 242.6 Theory of Globalization: Trade and Growth Theory in a
Technological Perspective with FDI 283. Organizational Moral Hazard, Efficiency and Stability Problems
in the World 343.1 International Organizations in Historical Perspective 363.2 International Organizations as an Insurance 383.3 Efficiency and Stability Problems in the World Economy 39
3.3.1 International Crisis Management:The IMF's Medicine for Asia and Russia 43
3.3.2 Economic Stability Aspects 493.4 New Issues in International Economic Relations: Liberalization
ofTelecommunication, Green Problems and Social Standards 534. International Organizations and Sustainable Globalization 55
4.1 Towards an 1-7 Meeting 564.2 Normative Perspectives 574.3 Conclusions and Issues for the 21 SI Century 59
Appendix 63
Comment: Wolfgang Maennig 69
VIII Economic Globalization, International Organizations and Crisis Management
B. The Emergence and Growth of International Organizations
James Foreman-Peck
73
1. Introduction 73
2. International Regimes, 'Free Riding' and Transactions Costs 74
3. Nineteenth Century International Political Organization 82
4. International Trade and Communications Regulation 83
5. International Property Rights in New Technology 86
6. Monetary Unions and Co-operation 87
7. Managing Default on Sovereign Debt 94
8. Conclusion 97
Comment: Rainer Fremdling 103
C. Does Integration Globalize?
Financial Crises and Financial Geography 1831-1914
Marc Flandreau
1. The Solidarity of Financial Centers
2. Segmentation of National Monetary Territories
3. Conclusion
Comment: Gerd Hardach
107
107
112
116
119
D. Globalization and the Market for International Organizations:
The OECD Case 127
Michele Fratianni and John Pattison
1. Introduction and Summary of the Issues
2. Trends in lOs
3. The Evolution of the OECD
4. Decision-Making Rules
5. Does the OECD Have an Expansion Strategy?
6. The OECD as an Inter-bloc 10
7. A New Role for the OECD
Comment: Peter George Warr
127
130
132
137
140
143
146
153
Table ofContents IX
E. The Asian Development Bank in the Context of Rapid Regional
Development 155
Werner Pascha
1. The Issues 155
2. ADB: An Overview 156
3. ADB's Goals 158
4. Do ADB's Goals Make Sense? 160
5. Is There a Case for a Regional Development Bank? 163
6. ADB and the Economic Success of the Asia-Pacific Region 168
6.1 ADB as an Important Factor of Growth andDevelopment in the Region? 168
6.2 Japan's Role 1696.3 The Bank's Role in Regional Integration 1716.4 ADB's Role in the 1997 East Asian Financial Crisis 172
7. Winds of Change: What Place for ADB? 175
F. A First Draft of Six Major Elements of a Federal European
Constitution: Some Thoughts Using Political Economy 185
Friedrich Schneider
1. Introduction 185
2. Six Basic Elements ofa Future European Federal Constitution 185
3. The Design ofthe European Legislation 187
4. The Subsidiarity and Federalism Principles as Safeguards AgainstGovernment Growth 189
4.1 The Subsidiarity Principle 1894.2 Fiscal Federalism in a European Constitution 1904.3 The Tax Base of the European Government 191
5. Institutions of Direct Democracy in a Future European Constitution 192
6. Summary and Conclusions 194
Comment: Peter Bernholz 203
X Economic Globalization, International Organizations and Crisis Management
II. Theory of Policy Coordination and
Impact of International Organizations
G. Globalization and the Changing Character of the International
Monetary Fund 211
Harold James
I. The International Order and the Liberalizationof Capital Movements
1.1 The IMP as Lender of Last Resort1.2 The IMP and the Supervision of Capital Markets
2. The Question of Governance, or Politics andthe International Monetary Fund
211
215221
226
H. The Many Lives of the International Labour Organization (ILO) 237
John Gillingham
I. Introduction
2. The Politics of Labor at the ILO
3. Economics, Education and Politics at the ILO
Comment: Irmgard Nuhler
I. Specific Institutional Aspects of International Cooperation
A GAME Theoretic Account
Werner Guth
237
241
244
251
255
264
265
269
1. Introduction 255
2. Problems When Cooperating Across Borders 256
3. Cooperation Without Contract Enforcement 258
4. Prospects ofInternational Cooperation in Case ofCostly TypeDetection 262
5. Policy Measures Improving the Prospects ofInternational Cooperation
6. Conclusions
Comment: Rudiger Sehils
Table a/Contents XI
273
J. Globalization and the Environment: Trade, FDI and
International Co-operation Issues
Tom Jones and Joaquim Oliveira Martins
1. Introduction 273
2. Globalization and Environment: A Framework for Analysis 274
3. Trade Issues 278
4. Foreign Investment Issues 280
5. International Co-operation Issues 283
6. Conclusions 289
Comment: Hans-Georg Petersen 293
K. Strategic Aspects of IIASA's Food and Agriculture Model
Werner GUth and Reinhard Selten
1. Introduction
2. A Special Linkage Model
3. Analysis of the Special Linkage Model
4. A More General Linkage Model
5. Analysis ofthe More General Linkage Model
6. Endogenous Detennination ofTrade Balances
7. An Alternative Approach to Demand
8. Conclusions
297
297
299
303
307
311
314
316
318
L. Trade Liberalization and Prudential Regulation: The International
Framework for Financial Services 321
SydneyJ Key
1. Introduction
2. Liberalization in the GATS and the WTO
2.1 'Binding' Liberalizing Measures in the GATS2.2 Discriminatory and Nondiscriminatory Barriers2.3 The Prudential 'Carve-out'
3. International Efforts to Ensure Adequate PrudentialRegulation and Supervision
4. Conclusion
Comment: Paul JJ Welfens
321
322
323324325
327
330
339
XII Economic Globalization, International Organizations and Crisis Management
III. Panel Discussions
Panel M: The Role of the HIS
The Role of the Bank of International Settlementsin the 1930s and 1990s
Gunter D. Baer
345
347
Reflections on the Early History of the Bank for InternationalSettlements 357
Richard Tilly
Panel N: Integrating Eastern Europe into the World Economy
Association with, Hopes for Joining the European Union
Andras Blaha
Integrating Eastern Europe into the World Economy
Heinrich Engelke
Integrating Eastern Europe into the World Economy:
The Relations between the EU and Russia
Christian Meier
Integrating Eastern Europe into the World Economy
Werner Varga
List of Tables
List of Figures
List of Participants
Index
365
367
373
377
385
389
391
393
395