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Bijlage 1: het meerjarenplan

PART 1: POLICY RESEARCH CENTRE ................................................................................................................................... 4

CHAPTER 1 I INTRODUCTION OF THE CONSORTIUM ........................................................................................................ 4

CHAPTER 21 CO-OPERATION WITHIN THE CONSORTIUM .................................................................................................. 6

2.1. COMMON LOCATION ...................................................................................................................................................................................... 6 2.2. CENTRAL CO-ORDINATION BY THE LEUVEN CENTRE FOR GLOBAL GOVERNANCE STUDIES .............................................................................. 7

2.2.1. Scientific co-ordination ....................................................................................................................................................................... 7 2.2.2. Administrative co-ordination ............................................................................................................................................................. 7

2.3. DIVISION OF THE FINANClAL MEANS AMONGST THE DIFFERENT PARTNERS ....................................................................................................... 7

CHAPTER 31 CO-OPERATION ............................................................................................................................................. 8

3.1. JUSTIFICATION OF THE CO-OPERATION WITH PARTNERS .................................................................................................................................. 8 3.2. STEERING GROUP ............................................................................................................................................................................................ 8 3.3. SCIENTIFIC ADVISORY BOARD .......................................................................................................................................................................... 8 3.4. CO-OPERATION WITH THE GOVERNMENT ....................................................................................................................................................... 9

3.4.1. Communication .................................................................................................................................................................................... 9 3.4.2. Availability of data ............................................................................................................................................................................. 9

3.5. CO-OPERATION WITH OTHER POLICY RESEARCH CENTRES .............................................................................................................................. 9

PART 2: RESEARCH ACTlVITIES ........................................................................................................................................ 10

CHAPTER 1 IINTRODUCTION TO THE RESEARCH ............................................................................................................. 10

1 .1 GENERAL APPROACH ..................................................................................................................................................................................... 1 0 1.2. GENERAL OBJECTIVE OF THE RESEARCH PROPOSALS ..................................................................................................................................... 11 1.3. EVALUATION AND ADJUSTMENT OF RESEARCH .............................................................................................................................................. 12

1.3.1. Internal evaluation ........................................................................................................................................................................... 12 4.3.2. Consultation structures ..................................................................................................................................................................... 12 4.3.3. Overview of planned evaluation ................................................................................................................................................... 12

1 .4. SAFEGUARDING OF THE SCIENTIFIC AND POLICY QUALITY OF THE RESEARCH ................................................................................................ 1 3 1.4.1. Scientific quality care ...................................................................................................................................................................... 13 1.4.2. Policy quality care .......................................................................................................................................................................... 13

1 .5. OVERVIEW OF PLANNED RESEARCH ............................................................................................................................................................... 1 3 1.5.1. General overview ............................................................................................................................................................................. 13 1.5.2. Overview of academic de/iverables .............................................................................................................................................. 15 1.5.3. Overview of policy de/iverables .................................................................................................................................................... 20 1.5.4. Overview of staff days ................................................................................................................................................................... 24

CHAPTER 21 INTERNATIONAL AND EUROPEAN LAW ...................................................................................................... 26

2.1. GENERAL PROBLEM STATEMENT AND PRACTICAL APPROACH FOR THIS PillAR ................................................................................................ 26 2.2. IMPACT OF NON-TRADITIONAL INTERNATIONAL LAW-MAKING PROCESSES IN THE FLEMISH REG ION ............................................................ 27 2.3. MAKING THE MOST OF THE LlBERALISATION OF TRADE IN SERVICES - CONSTRAINTS ON DOMESTIC REGULATORY AUTONOMY? ................. 35

CHAPTER 311NTERNATIONAL AND EUROPEAN POLICY ................................................................................................. 42

3.1. GENERAL PROBLEM STATEMENT AND PRACTICAL APPROACH FOR THIS PillAR ................................................................................................ 42 3.2. EXPLAINING VARIATION OF REGIONAL AUTHORITIES' INFLUENCE IN EU LEGISLATION AND IDENTIFYING BEST PRACTICES .............................. 44 3.3. EXPLAINING VARIATION IN REGIONAL AUTHORITIES' REPRESENTATION IN EUROPEAN UNION EXTERNAL POLICY FIELDS ................................ 52

CHAPTER 411NTERNA TlONAL ENTREPRENEURSHIP ......................................................................................................... 63

4.1. GENERAL PROBLEM STATEMENT AND PRACTICAL APPROACH FOR THIS PillAR ................................................................................................ 63 4.2. THE INTERNATIONALISATION OF FLEMISH SERVICE INDUSTRIES ....................................................................................................................... 65 4.3. THE DECISION TO EXPORT: FIRM AND INDUSTRY DETERMINAN.TS .................................................................................................................... 73 4.4. THE IMPACT OF EUROPEAN PREFERENTlAL TRADE AGREEMENTS ON FLEMISH FIRMS ....................................................................................... 80

CHAPTER 51 DEVELOPMENT CO-OPERATION .................................................................................................................. 89

5.1. GENERAL PROBLEM STATEMENT AND PRACTICAL APPROACH FOR THIS PilLAR ................................................................................................ 89 5.2. CHALLENGING THE STATUS-QUO? THE IMPACT OF THE EMERGING ECONOMIES ON THE GLOBAL DEVELOPMENT CO-OPERATION SYSTEM .. 90 5.3. THE ROLE OF THE PRIVATE SECTOR IN DEVELOPMENT CO-OPERATION ........................................................................................................... 96 5.4. INTEGRATING HUMAN RIGHTS INTO DEVELOPMENT. A COMPARATIVE ASSESSMENT OF STRATEGIES AND PRACTICES OF SMALL DONORS 100

DEEL 3: BEGROTING ........................................................................................................................................................ 106

HOOFDSTUK 1 I ALGEMENE TOELICHTING ..................................................................................................................... 106

1 .1 . FINANCIERING ............................................................................................................................................................................................ 1 06 1.2. KOSTEN ...................................................................................................................................................................................................... 106

1.2.1. Centrale beheerskosten en overdrachten naar het volgende iaar ......................................................................................... 106 1.2.2. Personeels-, werkings- en uitbestedingskosten ......................................................................................................................... 106

1 .3. OVERZICHT BEGROTING STEUNPUNT ......................................................................................................................................................... 107 1.4. INTERNE ALLOCATIE MIDDELEN .................................................................................................................................................................... 107

HOOFDSTUK 21 PERSONEELSKOSTEN ............................................................................................................................ 108

2.1. OVERZiCHT ................................................................................................................................................................................................. 108 2.2. TOELICHTING .............................................................................................................................................................................................. 108 2.3. BENODIGDE PERSONEELSBEZETTING ........................................................................................................................................................... 1 09

2.3.1. Tabel ................................................................................................................................................................................................ 109 2.3.2. Toelichting ...................................................................................................................................................................................... 109

HOOFDSTUK 31 WERKINGSKOSTEN ............................................................................................................................... 110

3.1. OVERZiCHT ................................................................................................................................................................................................. 110 3.2. TOELICHTING .............................................................................................................................................................................................. 111

HOOFDSTUK 41 KOSTEN VOOR ONDERAANNEMING ................................................................................................... 111

Flanders, a Region in the north of Belgium, is not only located in the heart of Europe with Brussels as its administrative headquarters, it also displays very distinctive constitutional features. Belgium is a federal State whieh has devolved a great number of important policy-making powers to its constituent parts, including the power to conduct external policies and conclude treaties with other countries and international organisations. The present application for a Poliey Research Centre to service the Flemish Government takes this unique position of Flanders in the Belgian federal context and in international relations as its point of departure.

Flanders is a reg ion of opportunities. lts very open economy, continuous efforts to respect and promote

human rights and the rule of law, solidarity towards developing countries, and its embrace of diversity

and openness towards other cultures and regions of the world make it an attractive place to invest and to

develop business and other relations. Nevertheless, as a non-State actor in international relations, Flanders

faces a number of challenges in fully deploying its external policies and becoming fully engaged in

international policy- and rule-making. Still, Flemish external policy has the capacity to become a

comprehensive foreign policy integrating politieal, economie and development dimensions. The initiators

wish to endorse such an integrated approach by formulating a number of objectives geared towards the

advancement of Flanders' domestie and broader global interests.

The current architecture of global governance provides an inadequate foundation for addressing the

spread of transnational challenges, the rise of new powers, and the mounting influence of non-State

actors. Actively engaging in improving existing and building new legal frameworks at the international

and European level therefore forms a concrete challenge to Flanders, as weil as the enhancement of its

interests and visibility via multilateral fora. Furthermore, in today's networked international society,

Flanders has to be keenly aware of the importance of interaction through strategie partnerships in order

to define common interests with States, international organisations, regions and private actors in

international and European multi-Ievel policy-making.

Given the international competitiveness of modern economies and the fact that Flanders is dependent on

exports for its growth, continuous multifaceted expertise is needed to support cross-border trade as weil

as to foster Flemish global presence through foreign direct investment. Simultaneously, since this engages

both the responsibility of public and private actors, Flemish entrepreneurs have to be encouraged to make

full use of their potential to promote sustainable development through international investment and tra de.

Thereto, we envision the continued evolution of the Flemish Region towards a small yet co-operative and

locally very present partner for sustainability and development. In order to guarantee effective assistance

to this process as a Policy Research Centre, an integrated approach towards development co-operation,

combining aspects such as the rule of law, respect for human rights and domestie accountability is

indispensable. A final objective is to strive to improve the consistency of the classie development aims with

the new global agenda, characterised by the rapid rise of new themes that go far beyond assistance for

poverty reduction, including migration, climate change, energy and natural resources, global governance

and security.

The initiators of this applieation consider it vitally important to support Flanders in acting as a politieal and

economie partner abroad, making optimal use of its competences, resources and strengths. Having a

compelling vision on foreign poliey, international entrepreneurship and development co-operation that is in

line with Flemish va lues, needs and assets will provide guidance in translating ideas into achievement.

T 0 this end, the initiators' vision is as follows.

PART 1: POUCY RESEARCH CENTRE

CHAPTER 1 I INTRODUCTION OF THE CONSORTIUM

The Flemish Inter-University Policy Research Centre for International Policy, International Entrepreneurship and

Development Co-operation, is a consortium of seven entities within four Flemish institutions for higher

education, with leg al, politieal, economie and sociologieal research expertise on development co-operation,

European integration, globalisation, multilateralism, economieal transition, international trade and investments,

federalism, interest group polities, regional polities and the creation of an international legal order.

The consortium will be led by the University of Leuven, Leuven Centre for Global Governance Studies (GGS),

in which some consortium members of the K.U.Leuven already co-operate on a structural basis. In addition, the

K.U.Leuven Research Institute for Work and Society (HIVA), the Faculty of Business and Economics (FEB) and

the Institute for International and European Policy (liEP) will take part in the consortium. In addition, the

consortium contains internationally leading experts from the University of Antwerp (Antwerp Centre for

Institutions and Multi-Level Polities), the Vlerick Leuven Gent Management School and the HogeschoolUniversiteit Brussel (H.U.Brussel - Center for Research on Economie Markets and their Environments - Research

Group Globalization, Innovation and Competition).

Each of the participating research centres bring in, besides internationally recognised expertise, a pool of

junior and senior researchers who are currently affiliated with the research centers (see figure 1). In this way

the consortium links the Flemish Government to a large pool of experts on a wide area of relevant topies.

Figure 1

PClUCY RESEARCH

CENTRE

Next to this, the consortium has selected a number of key external international academie partners to become

part of its Scientifie Advisory Board due to their continuous excellence in their respective research areas. The

Policy Centre will interact on a regular basis with the Steering Group consisting of representatives from the

administration and government. As such the Poliey Cent re is embedded in a network whieh will support

academie excellence and policy relevance. The latter is illustrated in figure 2.

Figure 2

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The policy centre opted to establish a structure of four pillars, co-ordinated by professors at the partner

institutions, to whieh the three main themes introduced by the tender (i.e. subsidiarity and multi-Ievel

governancej international entrepreneurship and international co-operation) were allocated. A Steering Group

will consist of representatives of the consortium and representatives of the administration and government. The

Steering Group will be represented by its members in the Scientifie Advisory Board. The Scientifie Advisory

Board, whieh is established to evaluate the ongoing research from a scientifie point of view, brings together a

set of internationally renowned academies of partner institutions. Members of the Scientifie Advisory Board

will also be involved in the PhD committees of the PhD students and will be available to review research

conducted in the context of the consortium.

The "Steering Group" ensures the continuous exchange of information and meets regularly (at least half

yearly) in view of the aforementioned planning and evaluation activities. Periodieal consultation will also be

organised in co-operation with external partners, most prominently the Scientific Advisory Board, bringing

together the academie representatives. The "Steering Group" ensures the continuous exchange of information

and meets regularly (every quarter of a year) in view of the aforementioned planning and evaluation

activities, in order to ensure a structural partnership.

CHAPTER 21 CO-OPERATION WITHIN THE CONSORTIUM

In view of maxima I efficiency, the initiators opt for a decentralised structure with the consortium's

headquarters integrated in the Leuven Centre for Global Governance Studies, House De Dorlodot,

Deberiotstraat 34, 3000 Leuven. The supervisor-coordinator, the managing coordinator, administrative

support personnel and two PhD candidates affiliated with pillar 1 will be located at the headquarters. The

decentralised structure means that two PhD candidates (pillar 2) will be housed at the Antwerp Centre for the

Study of Institutions and Multi-Level Polities (Antwerp), two PhD candidates (pillar 3) will be placed at the

VIeriek Management School (Leuven) and one doctoral researcher (pillar 4) will conduct research at the

Research Institute for Work and Society (Leuven). The fact that researchers involved will be located within the

premises of the partner institutions and research groups does not negatively affect the operation of the

integrated consortium. Although the preliminary working place for the researchers will be decentralised,

researchers will have access to the headquarters' physieal location as weil as all research means and they wil!

participate in the team meetings. The headquarters will foresee a common working space. Moreover,

depending on the requirements of the partieular research activity, short term visiting research stays are

envisioned in Leuven, Antwerp and Brussels. This enhances the multidisciplinary character of the research team,

whieh will be an asset wh en heterogeneous short term policy questions have to be dealt with.

Headquartered in the inner city of Leuven, the Policy Research Cent re will be clearly recognisable by

appropriate signage. The aim of a recognisable unity will also be pursued through other means, e.g. via our

own unique website. A common working paper series will be set up and will be ,integrally available at the

website, in a format specifieally designed for the consortium.

2.2.1. Scientific co-ordination

The scientifie deliverables to the Flemish Government are the primary responsibility of the coordinators of the

four pillars represented by the supervisor-coordinator. The Leuven Centre for Global Governance Studies has

a coordinating role regarding the various research activities. This role is taken up by the supervisor

coordinator, Prof. dr. Jan Wouters. This means that the Centre ensures the interdisciplinarity of the research.

Other assignments of the supervisor-coordinator will consist of:

1 . Consultation with government

2. Drafting of the yearly research planning concerning short term assignments

3. Stimulating interdisciplinary co-operation, where considered appropriate

4. Organising reviews regarding guaranteeing control of completed assignments

5. Co-ordination of the valorisation of the research, including organising seminars

6. Representation of the Poliey Research Centre

2.2.2. Administrative co-ordination

The supervisor-coordinator is also responsible for the administrative co-ordination of the Centre. He will be

supported by a managing coordinator (Dr. Axel Marx) and an administrative collaborator.

The supervisor-coordinator and the manager-coordinator are responsible for:

1. Managing day-to-day activities of the consortium

2. Project administration

3. Follow-up of the Policy Research Cent re (financially and deliverables)

4. Contact with members of the Scientifie Advisory Board

5. Financial management and reporting

6. Human resources management

The administrative collaborator is responsible for:

1. Ensuring uniformity of output (e.g. formatting layout of the working paper series and publications)

2. Setting up and management of the Policy Centre's website

3. Support in organising seminars and conferences

4. Organising internal team meetings, meetings of the Scientifie Advisory Board

5. Management of project mailing list for dissemination results and call for papers

6. Communieation with the government

The projected annual budget for the Centre is € 500,000. Each of the four pillars will be provided

approximately with an annual budget of € 110,000. The consortium budgets € 60,000 to be used by the

Centre by the Leuven Centre for Global Governance Studies for the co-ordination of the consortium.

The consortium foresees a 70/30 time balance between long-term, fundamental research and short-term, ad

hoc research activities. The long-term research will be carried out by doctoral researchers. These doctoral

researchers, jointly with their supervisors, will equally accord time to short-term, ad hoc and policy related

questions in their specifie area of knowiedge. Next to this, all four pillars will have means reserved in the

budget for the short-term, ad hoc questions that may arise and general operational expenses.

All financial means are administered centrally by K.U.Leuven who will distribute the budget to participating

institutes and research centres. The managing coordinator ensures that all expenses made in the framework of

the Policy Research Cent re are integrated in a consolidated budget. This makes it possible to produce a

yearly balance sheet for the entire policy centre, as weil as a profit-and-Ioss account: entries and expenses

for personnel, functioning and investment. All expenses - with the exception of overheads - have to be proven

by statements of expenditure.

CHAPTER 31 CO-OPERATION

The international subject matter of this Poliey Research Centre makes co-operation with institutions and

researchers in and outside Flanders a logieal choiee. The entities who are formally involved in the four pillars.

are not only already involved in a large number of international networks but have also opted to propose a

number of high level academie experts, associated with the consortium members and represented in the

Scientifie Advisory Board. This group consists of a number of excellent national and international researchers.

Insofar this is judged to be desirabie by the Government of Flanders, consultation will as weil as be organised

with other Policy Research Centres.

The Steering Group consists of senior researchers (most notably, the supervisor-coordinator and the

coordinators of the pillars) and representatives of the Flemish administration and government. The Steering

Group operates as the main board of the policy centre. It will set the research agenda and priorities. Next to

this, it will become a forum for direct interaction between the Flemish government and the involved academie

experts.

The partners in the Scientifie Advisory Board are on the one hand involved in the processing of the data (joint

research) and will contribute to the consortium in the form of ad hoc expertise, adviee and consultation. On the

other hand, an important task of the Scientifie Advisory Board consists in the common organisation of

valorisation activities (joint seminars and papers). They will as such act as an academie sounding board to the

policy centre.

3.4.1. Communication

The administrative coordinator wiJl function as the centra I contact point of the Policy Research Centre. A

government representative wiJl equally take up the function as centra I contact point. All questions and requests

wil I be transferred through this one-on-one communieation line between the Poliey Research Cent re and the

government. This in order to con trol co-ordination costs. The administrative coordinator will direct short term

research questions and poliey adviee to the substantively competent researcher.

3.4.2. Availability of data

The data sets collected during research conducted in the framework of the Policy Research Centre wiJl be

shared as widely as possible with the government, bearing in mind however the applicable privacy laws as

weil as the commitments of the Policy Centre made towards extern a I partners.

Several other themes for whieh the Government of Flanders subsidises Poliey Research Centres, concern issues

that are linked with foreign poliey. Regarding the multidisciplinary character of the aspired policy-relevant

research, we plan to co-operate and exchange data where this can lead to better results.

Therefore, the initiators intend to make arrangements with the initiators of the following Poliey Research

Centres in order to explore possible synergies:

Policy Research Centre "Ondernemen en Regionale Economie" [Enterprising and regional enterprisingl,

partieularly for the aspects of "export orientation of small and medium enterprises";

Policy Research Cent re "Transitie Duurzame Ontwikkeling" [Transition Sustainable Developmentl,

partieularly for the research questions related to the multi-Ievel policy concerning sustainable

development;

Policy Research Centre "Bestuurlijke Organisatie Vlaanderen" [Administrative organisation Flandersl,

partieularly regarding research questions regarding the impact of EU policies on Flemish governance

structures and poliey positions.

PART 2: RESEARCH ACTlVITIES

CHAPTER 1 IINTRODUCTION TO THE RESEARCH

Research will be conducted under four thematie pillars, described in the first part of this document, i.e.

'International and European Law /Global Governance' (Chapter 2), 'International and European Policy'

Chapter 3) 'International Entrepreneurship' (Chapter 4) and 'Development Co-operation' (Chapter 5). A

detailed plan of the research work condudes the proposal (Chapter 6). Under each of these pillars, specifie

research proposals provide for a more specifie long-term scientifie commitment. In the short term, this process

will allow for researchers to reach short-term condusions addressing the policy questions in the call. Each of

the research proposals is inspired by the questions from the call on the one hand, and on Flanders' stated

foreign policy on the other (see the 2009 coalition agreementl and the 2009 policy paper on foreign policy,

international entrepreneurship and development co-operation2). Bibliographieal references are available at

the end of each research proposal and demonstrate the scientifie relevance of the proposals. Each of the

research proposals not only contains a dear research plan, timeline, and description of the methodology to be

employed, but also indieates a variety of ways to mobilise the research to achieve distinctly artieulated short

and long-term research outputs and themes, as weil as ad hoc poliey questions.

Alongside the long term strategie research projects outlined (cf. 70%), the consortium will also conduct short

term research projects (cf. 30%) that reflect the policy priorities at that point in time. The short term research

projects will be guided annually by the Steering Group. For these short term research projects the Policy

Research Cent re will utilise its PhD researchers alongside the large pool of other researchers currently

affiliated with the research en ti ties involved with the consortium.

As aresuit, two types of projects will be facilitated- long term research projects and short term research

projects. The long term research projects will be PhD-track research projects whieh will be conducted by

doctoral researchers. The short-term projects will be conducted by researchers working either on the PhD track

or by other researchers affiliated to the research centre (via the participating research centres). The Policy

Research Centre commits to undertake continuous efforts in contributing to the provision of serviees depending

on the concrete needs of the government and in the framework of the genera I 70/30 agreement. One can

think of punctual questions in the framework of international negotiations or short term adviee on topica I issues

the government is confronted with. Doing so, the Policy Centre wishes to contribute to a broad range of topies

in international policy, international entrepreneurship and development co-operation with policy impact.

The Poliey Research Centre is supported by a pool of over a 1 00 researchers affiliated with the different

partner institutions. Their expertise can be used in order to cover very specifie and ad hoc questions.

Temporary researchers can be hired for specifie purposes, e.g. the collection of data for the government. This

approach is iIIustrated in figure 4.

1 VLAAMSE REGERING, Regeerakkoord 2009. Een daadkrachtig Vlaanderen in beslissende tijden, 2009. 2 K. PEETERS, Beleidsnota 2009-2074. Buitenlands Beleid, Internationaal Ondernemen en Ontwikkelingssamenwerking, 2009.

Figure 4

70% Long Term Research projects

The different long-term research proposals are aimed at forming a broad theoretica I background for a

multidisciplinary team of eight doctoral researchers with alegal, political science, or economics background.

This is essential in order to secure the proficiency necessary for the in-depth assessment of Flemish policy

demanded by the project. Research will be structured around long-term research questions, but will also result

in the production of short-term outputs in different forms, including mapping exercises, development of

methodologies, production of data sets for sub-questions, and the analysis of these data sets. These eight PhD

tracks will work within their discipline's distinct theoretica I frameworks in order to cover the different topics

within the call. However, the PhD researchers will engage in a wide range of interdisciplinary discussions to

encourage maximum synergy. Doctoral researchers will mainly focus on long-term research activities

fundamental to the project, but will also engage with Flemish policy makers to address their specific questions.

Furthermore, short-term and ad hoc research activities will be taken up by consortium partners according to

their research focuses. Hence, research takes shape in different, mutually nurturing forms ranging from short

term policy advice to long-term theory formation. For a more detailed overview and time and budget

balance of the long- and short-term research.

It is the Policy Research Centre's aim to handle the entire 'chain of science' ranging from fundamental research

to basic strategic policy research in order to further disseminate this knowledge to stakeholders and policy

makers by means of policy briefs, interactive workshops and tailor-made advice. In the view of the

participants in the consortium, only through this mix of outcome types can the project provide the necessary

background for a thorough study and evaluation of the impact of Flemish foreign policy, and the development

of new instruments and policy indicators.

The consortium consists of three core units, having specifie evaluation tasks: (1) The policy centrei (2) the

Steering GrouPi and (3) Scientifie Advisory Board.

1.3.1. Infernal evaluation

The internal evaluation of the PhD tracks of whieh deliverables are pre-determined in the research proposals,

is of vital importance. Each project is supervised by the academie supervisor and the doctoral committee

consisting of leading national and international experts. In an annual report to the government, the doctoral

committees will evaluate the progress, quality and output of the research. Further, an internal reporting system

will be set up. Internal evaluation takes place in both the regular meetings of the Executive Board and

Steering Group, presided by the supervisor-coordinator, and by means of assessment talks with supervisors.

This internal evaluation not only upholds the integrity of the research output internally, but also reinforces its

poliey relevanee by recognising new developments and needs, alongside other research done in this field

externally. The individual supervisors and pillar coordinators keep an overview of external research, and will

continue to fuel the discussions within the framework of the Scientifie Advisory Board.

The internal evaluation of the 30% short-term research activities taken up by the policy centre, varies from

that of the long-term research. The research themes, output and deliverables of the short-term research will be

determined in the consortium's annual programme whieh must be approved by the Steering Group. On a

regular basis, consultation between the government and the supervisor-coordinator will be organised. Each

short-term research activity as weil as the researchers involved wil I be evaluated by a follow-up report. The

output of the short term research projects will be scientifieally evaluated by members of the Scientifie Advisory

Board and other recognised external experts. The Centre will organise a standard review process for the

output of short term research projects. Annually, a genera I report on the short-term research activities will be

drawn up for the Steering Group.

4.3.2. Consultation structures

Apart from the internal evaluations, the initiators look to develop a structure whieh enables them to keep in

touch with the opinions of Flemish policy-makers, civil society and other academies. As aforementioned, the

Steering Group is the primary body of the consortium responsible for facilitating co-operation between the

Policy Research Centre and the Flemish authorities. The scientifie evaluation will take place within the structures

of the Scientifie Advisory Board, of which pre-eminent domestie and international academies are members.

Members of this Board will also be part of the different doctoral committees.

4.3.3. Overview of planned evaluation

FREQUENCY

I General Meeting I Yearly

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1.4.1. Scientific quality care

Self-evaluation remains the primary method for quality care. The supervisors of the different research

activities are chiefly responsible for the scientifie and policy quality of the research. The different researchers

and their supervisors within the different entities will each write annual evaluation reports, whieh will be

discussed in special sessions of the board of academie supervisors, entirely devoted to the discussion of these

reports. Quality care also takes place continuously within the infrastructure of the internal evaluation. Internal

seminars (whieh will be open to external researchers) and public events will encourage feedback for the

research. Finally, the supervisor-coordinator and the manager-coordinator will ensure the general progress of

the different projects is in keeping with the intended time frame, and bring issues raised with the researchers

and academic supervisors on the project The scientifie quality control of the consortium will be monitored by

the Scientifie Advisory Board.

Current scientifie practiees will be the leading parameters for the external quality control of the consortium.

External quality care will therefore be provided by the output standards of the consortium. The initiators

intend to publish a minimum of two internationally peer reviewed artieles per year per pillar in highly ranked

(impact factor) journals whieh are ISI indexed. This will allow to track the citations of partieular papers. Next

to this, each pillar will be responsible for the publieation of four other scientifie papers in the format of a book

chapter, an edited volume, or publication in another journal. All senior researchers involved in the Poliey

Research Centre have a track record in internationally peer-reviewed publishing and maintain excellent

contacts with major publishers. Joint papers to be produced with renowned foreign institutions and individu al

research to be disseminated within these networks to maximise the quality of research delivered, will be

encouraged. Another important instrument for external control will be provided for through the reporting

duties of researchers to the doctoral schools of the institutions involved.

1.4.2. Policy quality care

The safeguarding of quality of the consortium in the first place will be assessed in the Steering Group, in

whieh representatives from the Flemish government and administration work c10sely together with the initiators of the consortium.

1.5.1. General overview

>;! ....... _Ti"." .... · Prof. dr. Dirk De Bièvre (ACIM) .. Prof. Bart Kerremans (IIEB) - Prof. dr. Peter Bursens

finality after termination of the research

Sltnervli!;ij'h"j"rv" '" Prof. dr. Hans mi)lynjt:1ç~:x, ••• Huyse(HIV A)

1.5.2. Overview of academie deliverables

Delherables Topic

Literature study

Case studies

Impact analysis research paper

Analysis of the existing practice based on literature and case studies

Assessment of the modes of entrance, impact, status and accountability mechanisms of non-traditional international law and standards in the Flemish region

Macro-level econometrie analysis: macro-study about the trade challenges and opportunities, based on gravity approach

Intemationalisation of Flemish Service Industries

Development of a theoretical microlevel model that allows for a dynamic impact assessment of preferential trade liberalisation at the sector-, firm- and product-level

Mapping of all European PTA activity: inventory of new features, potential pitfalls, challenges and opportunities

Individual case reports

Seminars and workshops

Journaloutput

Input in mid-term research

preparation and analysis

The role of the private emerging donors strategies

1.5.3. Overview of poliey deliverables

The primary policy deliverable of the Policy Research Cent re is the delivery of policy papers and policy

briefs. Next to this the Policy Cent re will, in consultation with the government, organize training sessions as weil

as seminars for government officials. Third, the Centre will undertake valorisation activities to promote project

results and communicate these with a broader range of civil societyactors (e.g. media and NGOs) and public actors (e.g. Flemish Agencies and the Flemish Parliament).

Elaboration strategies

Policy formation (successful influence of multilateral norm creation)

Policy report / brief 4 Policy Space in GATS and Services PTAs

strategies

Policy report / brief 9

Policy implications

Impact extemal policies: Assessing impact of policies in 5 areas

Micro-level econometrie analysis: firmlevel and sectoral determinants of Flemish services exports

Policy report / brief 19

1.5.4. Overview of sfaff days

The role of the private sector m emerging donors strategies

(210 days/year equals 1 FTE/year)

CHAPTER 21 INTERNATIONAL AND EUROPEAN LA W

As a small yet very open reg ion, Flanders' domestic policies and regulations are undoubtedly influenced by

international politica I and economie events, such as the consequences of globalisation and multilevel

governance.3 Over time, less traditional actors in public international law (international governmental

organisations, private actors, enterprises, NGOs) continue to expand their influence at the global level, which

amongst other things has resulted in different ways of international law-making emerging. Globalisation

processes have led to greater involvement of upcoming economies in politica I, economic and legal affairs,

which has compelled the Flemish region to continuously adapt and reassess its tra de and development co

operation relationships.

Flanders holds a rather unique position in international law and within the wider changing and multifaceted

world. As a sub-state actor it fully participates in multilevel governance processes. Thus, although it is

important to continue to actively engage in more classic law and policy making at the international level,4

contemporary trends of international interaction have to be closely followed in order to strengthen its legal

relationships with its key international partners - be it States, sub-state entities, international governmental

organisations or private actors.

The pillar "International and European law" wil I conduct research on the topics of multi-Ievel and private

governance, subsidiarity, international and European trade law and human rights law. In this regard, topics of

genera I public international law, international trade law, human rights law and legal aspects of development

co-operation will be covered.

We opted to cover legal aspects embedded in parts 6.3.1., 6.3.2. and 6.3.3. of the call:

a) Impact of international norms, standards and soft law in the Flemish region (Part 6.3.1., Topic 1,

including all four questions)

b) Interaction between the Flemish region and European tra de policy and international trade law (Part

6.3.2., covering legal aspects of Topics 1-3)

c) Legal consequences for human rights law, good governance and development co-operation resulting

from the involvement of developing economies and private actors in the third world (Part 6.3.3.,

covering legal aspects of this topic)

An integrated approach is the most accurate and realistic way of dealing with the consequences of

globalisation and increased multilateralism.

The practical organisation of the cluster "Multi-Ievel aspects of Flemish foreign policy" is as follows:

3 VlAAMSE REGERING, Regeerakkoord 2009. Een daadkrachtig Vlaanderen in beslissende tijden, 2009, p. 83: Vlaanderen, als deelstaat, behoort tot de meest open regio's van de wereld met een sterke interactie tussen het binnenlands beleid en de Europese en internationale beleidsontwikkelingen [Flanders, as a sub-state entity, is among the most open regions of the wor/d, characterized by astrong interaction between the domestic and deve/opments in international and European policy] 4 K. PEETERS, Beleidsnota 2009-2014. Buitenlands Beleid, Internationaal Ondernemen en Ontwikkelingssamenwerking, 2009, p. 64: De Vlaamse Regering zal zijn verdragsrecht aanwenden voor kwesties waar juridische zekerheid onontbeerlijk is, en zal actief deelnemen aan de voorbereiding en onderhandelingen over gemengde verdragen. [The Flemish Government will use its right to conc/ude treaties to address issues where legal security is essential, and wil/ actively participate in the preparation and negotiation of mixed treaties.]

1. Two distinct long-term research themes were selected, whieh will be studied in the framework of two

separate Ph.D. tracks in law. The doctoral researchers involved will also analyse short-term policy questions

linked to these long-term research themes.

11 "Impact of non-traditional international law-making processes in the Flemish reg ion"

(preliminary title, academic supervisor: Prof. dr. Jan WOUTERS and Prof. dr. Geert DE BAERE

(K.U.Leuven)).

11 Making the Most of the liberalisation of Trade in Serviees - Constraints on Domestie

Regulatory Autonomy?" (preliminary title, academie supervisors: Prof. dr. Jan WOUTERS and

Prof. dr. Geert VAN CALSTER (K.U.Leuven)).

2. Furthermore, two legal themes whieh will not lead to a doctoral degree will be taken up by this pillar. A

number of short and longer-term research questions including policy adviee will be grouped on the following

legal topies:

11 "Flanders' bilateral relationship with the Netherlands" (academie supervisor: Jan WOUTERS

(K.U.Leuven)).

11 "Legal analysis of the common trade policy of the European Union" (academie supervisor:

Jan WOUTERS (K.U.Leuven)).

I. Project details

The proposed research will be entitled "Impact of non-traditional international law-making processes in the

Flemish reg ion" [Doorwerking van niet-traditionele vormen van internationaal recht binnen de Vlaamse bevoegdheidsdomeinen]. It concerns a long-term research theme to be conducted at the K.U. Leuven Centre for

Global Governance Studies (GGS) and the Institute for International Law (liL), that will result in a doctoral

dissertation. The academie supervisor of this research are Prof. dr. Jan WOUTERS and Prof. dr. Geert DE

BAERE (K.U. Leuven). The PhD research will address the first set of questions introduced in part "6.3.1.

Subsidiarity / multi-Ievel governance" of the call on the impact of international norms and standards in

Flemish areas of competence.

11. Problem statement

States, sub-state entities and private actors increasingly interact across national borders. At the global level,

alongside the more traditional way to draft international law through the conclusion of treaties, there is an

emerging tendency to engage in alternative methods to generate international agreement (Raustiala, 2005).

Both public and private actors are involved in formulating norms - such as guidelines, standards and

declarations - and in informal policy co-ordination activities. These norms still have an ambiguous position at

the global level and within public international law (Cohen, 2007-2008). Their impact is nonetheless likely to

affect national legal systems whieh would obviously have consequences for Flemish areas of competency.

Scholars tend to disagree on the legal value of these norms and have attributed these terms different names,

such as 'soft law', 'global governance activities' and 'informal international law' to indieate the differences in

the rules that manifest when compared to traditional law-making processes typieal of the international legal

system (Pauwelyn, 2011; Lichtenstein, 2001).

Non-traditional international law finds its origins in different fora, introduced by a variety of actors. On the

one hand, international organisations, subsidiary organs such as general assemblies, Conferences of the

Parties and/or special or functional committees create new international norms through decision-making

processes, the production of guidelines, poliey harmonisation, and standardisation activities (Kingsbury & Casini, 2009; Von Bernstorff, 2009). The World Health Organisation Assembly, for example, systematieally

formulates recommendations and standards. Although strictly speaking they do not have legally binding

effects, these 'soft laws' are on a regular basis translated into member States' policies. (Art. 23 WHO

Constitution; Un, 2011). On the other hand, private actors - groups of enterprises, economie sectors, NGOs,

etc. - operate in a broad range of poliey areas to set standards in relation to specifie products and product

features, manufacturing and distribution processes, sustainable development and human rights. First hand

examples are the Forest Stewardship Council, proclaiming FSC certifieation schemes for wood produced

according to standards of responsible forest management, and private fishing standards created by the

Sustainable Fisheries Partnership (Rafols, & Brander, 2005).

The output of non-traditional international law-making, i.e. norms, standards and guidelines, seems to have

considerable impact at the national, regional and local level (Von Bogdandy et al., 2008). Institutions, such as

parliaments, courts, regions and municipalities, ombudsmen and independent regulators are confronted with a

diverse range of soft, or even, informally created international standards, of whieh it remains unclear whether

these can even be considered 'Iaw' (Kingsbury & Casini, 2009). Since norm creation and standard-setting by

international public and private actors can also be observed in policy areas for whieh Flanders is given

competences - amongst others in sustainable development, economy, environment, work, sport and health - it

is reasonable to assume similar effects in the Flemish reg ion. However, no structural efforts have been made to

systematieally analyse these rules and poliey spaces. If it could be established that these norms and standards

have had an impact on the Flemish regulation and economie sectors, it should furthermore be identified and

explained how these norms have been created on the international dimension, and subsequently introduced at

the sub-state level. Within policy competences, regional strategies need to be developed in order to influence

these international norm development processes. Bearing in mind the somewhat vague legal status of most

norms and standards concluded, when implementing these "new law mechanisms", one must be mindful of

principles of good governance, the rule of law, traditional checks and balances systems as weil as democratie

accountability mechanisms (Wallach, 2001-2002). Partieularly, Flanders will need to ensure the principles of

legal protection and transparency, avoiding an accountability gap for the output of these non-traditional

international law-making processes at the domestie level. In this, the practiee of quasi-automatie

implementation of international norms through simplified treaty adoption procedures and enactment of

standards without Parliamentary approval seems particularly problematie in terms of opposability to

individuals (Van Eeckhoutte & Loose, 2007).

m. Scientific state of the art

The topie of law-making outside the boundaries of traditional public international law has been studied at

different universities and scientifie institutions. Until now, legal literature primarily focused on theory-forming

at the international level. The Global Administrative Law Project (GAL) of the New Vork University School of

Law focuses on the increasing use of administrative law-type mechanisms. At the Max-Planck-Institut für

ausländisches öffentliehes Recht und Völkerrecht at Heidelberg, Germany, the exercise of international public

authority forms the main theme for a number of projects that analyse the exercise of public authority by

international institutions (Von Bogdandy et al., 2010). The Hague Institute for the Internationalisation of Law

(HiiL) has a research interest in both the public and private side of the phenomenon of "new international law

and law-making". It currently sponsors a research project on "Private Transnational Regulation: Constitutional

Foundations and Governance Design" and a research project on "Informal International Law-making". The

latter project (executed by the Graduate Institute in Geneva, the Leuven Cent re for Global Governance

Studies and the University of Twente) will generate an inventory of existing informal international law-making

processes with a particular focus on accountability, legitimacy, and domestic implementation. In addition, legal scholarship has shown specific interest in critica I case studies of public and private standard setters, e.g. in

health and food safety (Büthe, 2008; Clapp & Fuchs, 2009; Wouters et al., 2009) and social and

environmental responsibility (Wirth, 2009). Finally, growing research interests can be observed in the topic

'impact of non-traditional international law in domestic courts and regulatory schemes' (Benvenisti & Downs, 2009).

In the proposed research, insights provided by aforementioned projects and scholarship will be used to apply

the theoretica I framework to the specific Flemish situation, focusing on domestic implementation, the impact of

norms and the Flemish influence in norm creation at the global level.

IV. Fundamental and applied research questions

The first long term fundamental research question of the project concerns the assessment of the use and

development of soft norms, guidelines and standards in international law: how (questions of law-making), and

by whom (actors involved) are these generated? In this, it is assumed that the broad range of standards

created at the international level has lead to a fragmented legal framework that nevertheless bears the

potential to impact domestic law. A comparative framework that includes several norm and standard-setting

committees will be established. Case-studies will include public and private actors likely to affect Flemish

policy competences. While working towards an answer to the long term questions posed, a series of other

questions must be attended, most importantly regarding the legal status of the rules that manifest from these

non-conventional norm-creation practices.

A second long term fundamental research question focuses on the influence of international norms resulting

from non-traditional international law-making activities in the Flemish reg ion. To what extent do these guidelines impact regional regulatory schemes and behaviour? To address this, research will be conducted on

the role of sub-state public authorities and private actors within institutional and procedural designs of global

networks and accountability and review mechanisms. The Flemish-international interaction will therefore be at the centre of the researcher's interest.

A third long term fundamental research question is formulated having in mind the objective of maximising

Flemish influence in international norm-setting. How can Flemish policy and regulatory schemes influence and

shape non-traditional international law-making? In this, the possible impact of both public (the Flemish

Parliamentary Assembly, administration, regional representatives, ... ) and private actors (economic sectors or

NGOs involved in standard-sectors) will be analysed and concrete policy recommendations will be formulated.

V. Research design and methodology

1/ What is the current state of play of law-making outside the formal framework of public international decision making structures (such as intergovernmental organisations)?

Before elaborating on the research stages, a preliminary mapping of the international actors and fora

responsible for the creation of norms and standards should be carried out. Selected norm creation activity will

be mapped based on a series of resources:

publicly available primary sources: statutes and interest statements of international organisations and

NGOs, standards setting procedures, position papers of interest groups;

context resources such as media and academic Iiterature;

in-depth case study research of a selection of public and private standard-setters having a potential

to have a direct impact on Flemish policy competences.

In consultation with the Flemish government and administration, depending on concrete needs and policy

related interests, a list of case studies will be composed. An overview of proposed topics, containing both

public and private norm providers, is herewith provided:

Sustainable development & OECD Guidelines & Policies (sustainable development, sustainable

Environment

Road safety

Sport

Health

agriculture); ISO standards (e.g. 14000 on environmental

management); Forest Stewardship Council, UNFCCC Conference of

the Parties norms.

International Road Federation

International Olympic Committee (IOC), Fédération Internationale de

Football Association (FIP A), Doping related standards (W ADA /

UNESCO)

World Health Assembly regulations

Using the empirical findings and existing Iiterature as a starting point, incidence and variance in design and

operation wiJl be identified and explained. The aim of this preliminary part is to develop data sets, which wiJl

become an indispensable tooi at later stages. Concluding this part, we wiJl also deliver a first report on the

possible impact of norms created by the studied object related to Flemish regulation and policy.

2/ What is the legal framework for norms creafed at the international level that cannot be considered traditional public international law-making?

Based on the preliminary, empirica I part, a theoretica I framework will be set up to determine the following

sub-questions: (1) questions about the basic structural patterns and institutional design of non-traditional law

making; (2) methodological questions concerning the scope of non-traditional law and its sources. More

concretely, research will focus on these variables: First, on actors and fora involved in norm creation. The

research will continue to draw a dear line between public and private actors involved. Although arguably

having direct impact on domestic regulations, policies and behaviours, not all actors may be involved in 'Iaw

making' in a strict sen se. The involvement of the Flemish economic sector in setting norms and standards will be

a primary focus area. Second, the processes under consideration here are international, as opposed to

domestic. They involve cross-border policy co-ordination and/or standard setting, but not by way of formal

international rule making (as wh en treaties are conduded or wh en an international organisation is empowered

to issue binding norms). Third, the research will focus on different forms of output, such as guidelines, standards

and dedarations, which should be categorised as to the different effects these create. The adjustment of

terminology in light thereof will be an integral part of the theory building.

The goal of this aspect of the project is to determine definitions, distinctions and categorisations to be used

throughout the research and to become a tooi in Flemish policy-making. Doing this, the researcher will rely on

the existing legal scholarship - which is well-developed - but focusing in particular on Flemish interests. The

development of a common theory and terminology is a requisite to frame and measure 'impact' at the Flemish

sub-national level and to assess possible deficits in these processes.

3/ How do sources of non-traditional international law enter the national legal order, and more in partieu/ar in the Flemish region, and what are the eonsequenees for Flemish regu/ation and poliey?

This research question addresses the core issue of the doctoral thesis:

It is of particular interest to map how norms, standards and guidelines created at the international level enter

in the domestic legal order (mapping of modes of entrance). This will be done by comparing how traditional

international law is implemented in Flanders, to the way this is done for less traditional norms and standards.

It can be assumed that norms become more relevant precisely because of their transmission into Flemish

regulation (direct or indirect, e.g. via the European Union), references made in case law or their adoption in

private transactions. Specific emphasis in this part of the research will be put on the role of democratic

mechanisms and principles in these implementation processes. First, af ter hoving focused on the Flemish

legislative and executive branches, an analysis of the Belgian jurisprudence on the acceptance and impact of

the specific forms of soft law and private standards discussed will be carried out. Through a theoretica I

assessment, the role of EU legislation as a filter for norms and standards to be introduced in the Flemish reg ion

will be measured. Second, emphasis will be put on the adaption of private standards in Flanders, which most

likely differs from the norms created under the auspices of international organisations or by

transgovernmental networks.

Subsequently, the status and impact of the output of the processes in the Flemish reg ion and on Flemish

regulatory schemes will be assessed and evaluated (status and impact analysis). Questions on their status

indudes an assessment of their legal value. Conflicts between domestic law, particularly regional law, and

these norms and standards are of interest too. The empirica I data for this analysis is collected in the first stage

of research.

Next to th is, domestic law can help ensure accountability of the new international law (accountability analysis).

Until this point, it has been undear to wh at extent accountability mechanisms exist in Flanders. Internal

legitimacy to a large extend depends on Parliamentary supervision. Therefore, research will be conducted on

how to reconcile internal procedures of anticipatory parliamentary approval as weil as the specific set of

rules for advisory procedures of the Counseil d'État when implementing more technical international norms.

A more limited, though still vital part of this research will address the previous questions within a different

context than the Flemish one (comparative analysis). Through a comparative analysis of international

federated entities, similar questions (how do non-traditional international norms and standards enter the sub

state legal orders and policies, and wh at is their legal status?) will be raised. The goal is to assess wh at can

be learned from other regions. There will be points of comparison in other strong "constitutional regions" such

as Catalonia, Scotland and Québec.

4/ Which insfruments and strategies are best suited to optimise F/emish inf/uence at the internationa//eve/?

Af ter having theoretically and empirically framed the impact of non-traditional law-making processes and

their output with a dear emphasis on the Flemish situation, the researcher will seek to identify various types of

instruments and legal strategies best suited to influence these. The results of the research at the global level

will allow us to screen the multilateral context in terms of opportunities and constraints for regions in adapting

domestic policy to the changes in the way international law is made. Since this last part focuses explicitlyon

the strategies of Flanders in different international organisations, public and private governance structures,

the final part of the dissertation will consist of concrete policy suggestions with respect to the development of

instruments, which will also be translated in a final report.

VI. Valorisation

Valorisation of the research takes place in a variety of ways:

VII. Timing

Ol Frequent feedback with the sound board group and the Steering Group and presentation of

preliminary findings;

.. Frequent reports;

.. Networking with other regions;

.. Capacity building through workshops;

111 Presentations at international and national conferences;

.. Publications in international and national journais;

.. Joint publications with partner institutions and researchers;

11 Ph.D. dissertation;

111 Continuous policy support.

The timing of this research proposal is influenced by the fact that the researcher will be employed on a basis

of a doctoral scholarship (doctoraatsbursaa/) which imp lies that his dissertation will be delivered in the fifth

year.

Preliminary mapping of international norms with the potential to have a direct impact in Flemish policy competences

Flemish

Ad hoc continuous

VIII. Bibliographical references

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Braithwaite, J. & Drahos, P., Global Business Regulation, Cambridge, Cambridge University Press, 2000, 704 p.

Büthe, T., 'The Globalization of Health and Safety Standards: Delegation of Regulatory Authority in the SPS Agreement of the 1994 Agreement', Law & Contemp. Probs. (2008), vol.71 , pp. 219-255.

Chandra, M., 'ISO Standards from Quality to Environment to Corporate Social Responsibility and Their Implications for Global Companies', J. Int'l Bus. & L. (2011), vol. 10, pp. 107-113.

Clapp, J. & Fuchs D., (eds), Corporate Power in Global Agrifood Governanee, Cambridge, MA, The MIT Press, 2009,pp.312.

Cohen, H.G., 'Finding International Law: Rethinking the Doctrine of Sources', lowa L. Rev. (2007-2008), vol. 93, pp.65-130.

Fulponi, L., 'Private Voluntary Standards in the Food System: the Perspective of Major Food RetaiIers in OECD Countries', Food Poliey (2006), vol. 13, pp. 1-13.

Levit, J.K., 'Bottom-Up Lawmaking: The Private Origins of Transnational Law', Indiana Journalof Global Legal Studies (2008), vol. 15, pp. 49-73.

Uchtenstein, c., 'Hard Law v. Soft Law: Unnecessary Dichotomy?', The International Lawyer (2001), vol. 35, pp. 1433-1441.

Un, C.-F., 'Global Food Safety: Exploring key elements for an international regulatory strategy', Va. J. 'nt" L. (2011), vol. 51, pp. 637-695.

Pauwelyn, J., 'The Rise and Challenges of 'Informal' International Law-Making', in Muller, S., Zouridis, S., Frishman, M., and Kistemaker, L., The Law of the Future and the Future of Law, Oslo, TOAEP, 2011, pp. 744, pp. 125-139

Kingsbury, B., Kirsch, N. & Stewart, R.B., "The Emergence of Global Administrative Law", Law and Contemporary Problems (2005), vol. 68, pp 15-61.

Kingsbury, B. & Casini, L., 'Global Administrative Law Dimensions of International Organizations Law', International Organizations Law Review (2009), Vol.6, pp. 319-358, pp. 349-356

Rafols, X.P. & Brander L., 'The Stewardship Council Model: A Comparison of the FSC and MSC', J Int7 & Comp. L. (2005), vol. 11, pp. 637-663.

Rausticila, K., 'Form and Substance in International Agreements', Am. J. Int'l L. (2005) vol. 99, pp. 581-614.

Van Eeckhoutte, D. & Loose, T., 'Wijziging zkt. Instemming. Het probleem van de parlementaire instemming met vereenvoudigde verdragswijzigingen', K.U. Leuven Institute for International Law Working Paper Nr. 105

- januari 2007, avai/able at https:/Iwww.law.kuleuven.be/iir Ini/onderzoek/wp/WP1 05n.pdf.

Von Bernstorff, J., 'Procedures of Decision-Making and the Role of Law in International Organizations', German Law Journal (2008), vol. 9, pp. 1939-1964.

Von Bogdandy, A., Dann, Ph. & Goldmann, M., 'Developing the Publicness of Public International Law:

Towards a Legal Framework for Global Governance Activities', German LJ. (2008), vol. 9, 1375-1400.

Von Bogdandy, A., Wolfrum, R., von Bernstorff, J., Dann, Ph. & Goldmann, M. (eds), The Exercise of Public Authority by International Institutions: Advancing International Institutional Law, Heidelberg, Springer, 2010, pp. 999.

Wallach, L., "Accountable Governance in the Era of Globalization: the WTO, NAFTA, and International Harmonization of Standards", U. Kan. L. Rev. (2001-2002), vol. 50, pp. 836-837.

Wirth, 0., 'The International Organization for Standardization: Private Voluntary Standards as Swords and Shields', B.C. Envtl. Aff. L. Rev. (2009), vol. 36, pp. 79- 102.

Wouters, J., 'Customary international law before national courts: some reflections from a continental European perspective', Non-state Actors and International Law (2004), vol. 4, pp. 25-38.

Wouters, J., Marx, A., Hachez N., 'In Search of a Balanced Relationship: Public and Private Food Safety Standards and International Law', Leuven Centre for Global Governance Studies Working Paper No. 29 -

June 2009, avai/able at ytvVW .qgsJnJleu'!en.be /nieuw Ipublicotions/vvorkinq%20..QQf2ers/ ew series/wp29.pdf, pp. 31.

Wouters, J. & Van Eeckhoutte, 0., 'The en force ment of customary international law through EC law', in J. Prinssen & A. Schrauwen (eds.), Direct effect: rethinking a classic of EC legal doctrine pages, Groningen, Europa

Law Publishing, 2002, 181-234, pp. 320.

Wouters, J. & Van Eeckhoutte, 0., 'Doorwerking van internationaal recht voor de Belgische hoven en rechtbanken', in Nederlandse Vereniging voor Internationaal Recht, De nationale rechter en het internationale recht, No. 131, The Hague, T.M.C. Asser Press, 2005, 145-242, pp. 243.

Wouters, J. & Van Eeckhoutte, D. (eds.), Doorwerking van internationaal recht in de Belgische rechtsorde. Recente ontwikkelingen in rechtstakoverschrijdend perspectief, Antwerp, Intersentia, 2006, pp. 652.

Wouters, J., De Man, Ph. and Hachez, N., 'Internationaal recht voor de praktizijn: hoe omgaan met

handelingen van internationale instellingen en internationale rechtspraak', in K. lenaerts and J. Wouters (eds.),

Internationaal en Europees Recht, Themis Cahier No 49, Bruges, Die Keure, 2008, pp. 57-76.

Wouters, J. Wessel, R.A. and FolIesdal, A. (eds.), Multilevel Regulation and the EU. The Interplay between Globa/, European and National Normative Processes, leiden - Boston, Martinus Nijhoff Publishers, 2008, xxi + 420 p.

WHO Constitution, adopted by the International Health Conference held in New Vork from 19 June to 22 July

1946, signed on 22 July 1946 by the representatives of 61 States (Off. Rec. Wld Hlth Org., 2, 100), and

entered into force on 7 April 1948.

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I. Project details

The proposed theme for the second long-term research project wil! be 'Making the Most of the Liberalisation of Trade in Services - Constraints on Domestic Regulatory Autonomy?' [Het optimaliseren van de liberalisering van de handel in diensten - Begrenzing van de autonome nationale regelgeving?].

The desired candidate will become a member of the K.U. leuven Centre for Global Governance Studies

(GGS) and the K.U. leuven Institute for International law. The research, which will lead to a doctoral

dissertation in law, wil! be carried out under academic supervision of Prof. dr. Jan Wouters and Prof. dr. Geert Van Calster.

The project addresses a number of questions raised in part 6.3.2 (International Enterprising/ 'Internationaal Ondernemen') of the call. This part specifies the need for legal analyses on (a) EU Trade Policy, (b) Free (or Preferential) Trade Agreements (throughout this document the term Preferential Trade Agreement (PTA) will

be used: as such it encompasses the term Free Trade Agreement), (c) Trade in Services and (d) Export Opportunities for Small and Medium Sized Enterprises (SMEs). The tender document specifically mentions the necessity of research on the compatibility of Flemish regulation of the tertiary sector of the economy

(hereafter referred to as the service sector) with international regulations. A second part of the project will focus on another question raised in the tender document, i.e. the policy space granted by international regulation on trade in services for sub-state actors to deal with issues such as labour regulations, public health

and the environment.


The role of services in the global economy is steadily increasing. In 2010, services accounted for

approximately 70% of global GDP (World Bank, 2010). Trade in services however, is limited and only accounts for approximately 20% of global cross-border trade (WTO). Gradual liberalisation of trade in

services is one of the cornerstones of the EUs common international trade policy, as witnessed by the fact that the EU is the world's leading exporter and importer of services (WTO, 2011). Multilateral liberalisation is

sought through the channels of the World Trade Organization (WTO), which deals with services in the General

Agreement on Trade in Services (GATS Agreement). The GATS, still subject to negotiations that are presently

locked, are still largely incomplete (Delimatsis, 2010). Increasingly, provisions covering trade in services are

incorporated into bilateral (or regional) preferential trade agreements.

The proposed research revolves around Flanders' role in the domain of international tra de law and policy.

Centra I to the project will be the question to which extent the existing framework of international rules on

trade in services can enhance Flanders' position in the global services market. The Flemish government has

recognised the importance of services trade in its most recent governmental agreement, in which it states that

the export of services should be increased.5 At the same time, Flanders' has always been active in ensuring

that it can maintain the principle of universal service, and to that end, has negotiated several exceptions. One

author has phrased these conflicts of interests as 'domestic sovereignty vs. international trade liberalisation'

(Munin, 2011 ).

Although liberalisation of the services sector offers opportunities for Flemish service providers who export their

services abroad, due care has to be taken to ensure that regulating authorities maintain sufficient policy

space to adopt measures necessary to protect other societal va lues, such as public morals, public health and

the environment. There is some literature available on the multilateral regulatory framework on services, but

far less is known about the impact on domestic regulatory autonomy that would result from the inclusion of

services provisions in preferential trade agreements.

111. Scientific state of the art

There is a wide range of literature available on multilateral liberalisation of the trade in services (Andenas

and Zleptnig, 2008; R. Wolfrum, P. Stoll and C. Feinäugle, 2008; Panizzon, Pohl and Sauvé, 2008). How can

the liberalisation of trade in services be reconciled with the legitimate societal concerns that some lawmakers

hold? Some authors have focused on the linkages between domestic regulatory autonomy and the GATS

(Delimatsis, 2008). It has been argued that the WTO Appellate Body has confused market access disciplines

with rules on domestic regulations, thereby inappropriately encroaching upon the regulatory autonomy of

WTO Members (Pauwelyn, 2005; Mavroidis, 2007, Wouters and Coppens, 2008). Others have addressed

the question of whether GATS includes what we call 'public services' or 'services supplied in the exercise of

governmental authority' (Krajewski, 2003).

However, there is considerably less institutional knowledge available about about the impact of the inclusion

of provisions on tra de in services in Preferential / Free Trade Agreements. With the Doha Development

Agenda yet again on the brink of collapse, there is a visible proliferation of preferential trade agreements.

Not only are there more of those agreements, they also offer deeper integration and now include issues such

as investment, intellectual property, and technical barriers to trade and services (BagweIl and Mavroidis,

2011). Today, one third of Preferential Trade Agreements (PTAs) include provisions on services, compared to

only one tenth in 1990 (WTO, 2011). Even though some authors have looked at the relationship between

multilateral and regional liberalisation of trade in services (Stephenson, 2002; Cottier and Delimatsis, 2011),

and others.have shed some light on additional commitments in PTAs (Roy, Marchetti and Urn, 2007), there are

still many uncertainties that warrant further research, especially when looked at from a Flemish perspective.

To what extent are the additional commitments in PTAs compatible with existing WTO obligations. In this

respect, a detailed analysis of Art. V GATS will be undertaken. Secondly, one can ask whether the evolving

practice of incorporating services provisions in PTAs can lead to 'modeis' that can eventually be used to

further the multilateral liberalisation process. In this respect it would be an astute decision to closely monitor

5 VLAAMSE REGERING, Regeerakkoord 2009. Een daadkrachtig Vlaanderen in beslissende tijden, 2009, p.33.

both the negotiation processes for new preferential trade agreements, as weil as the developments in the

DDA negotiations on Rules on Domestic Regulations in the GA TS framework.


Research will be conducted on two separate, but related, levels. The fundamental, long and 'medium

length' activities of the project will result in articles being published in international academic journais, such

as the Journalof International Economic Law, World Trade Review and the Journalof World Trade. The

outcome will be the researcher defending his dissertation to obtain a PhD in law.

Main research questions:

11 How is the international trade in services regulated at the international level? This question de lege Iata will result in a descriptive mapping of the current international regulatory

framework. On the multilateral level the GATS offers a forum for further liberalisation under

the auspices of the WTO. On the bilateral and regional level, numerous Preferential Trade

Agreements have been concluded, many of which also incorporate provisions on services

libera lisation.

11 To what extent does current international regulation allow the autonomous Flemish lawmaker

to advance principles of sustainable development, labour rights, public health and cultural

diversity in its trade policy concerning services? This question is built upon an analysis of Article

XIV of the General Agreement on Trade in Services that forms part of the World Trade

Organization and which incorporates the general exceptions to GATS obligations. However,

the rules underlying the multilateral trading system are increasingly being incorporated, in

different ways, into preferential trade agreements (PTAs). Therefore, this part will also

address the genera I exceptions to the rules on trade in services incorporated in the FTAs

concluded by the EU (for example the EU - South Korea FTA). What effect does the

incorporation of provisions on services have on (Flemish) regulatory autonomy?

11 What impact does the shift of negotiations on the liberalisation of services, from the

multilateral to the bilateral/regional level, have on Flemish external trade poliey? Will the

multilateral field eventually be abandoned altogether? What effects will the proliferation of

PT As with services provisions have? Some authors have suggested that preferential trade

negotiations can be a stepping-stone for multilateralism (Persin, 201 0). Will this hypothesis hold true?

The short-term research and policy issues related to this research project may concern a number of topics:

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The impact of the EU Common International Trade Policy on Flanders' capacity to regulate the services sector;

The legal aspects of the external EU Trade Policy in a WTO context;

The formulation of Flemish policies and positions with regard to the formation of EU positions

in multi- and bilateral trade negotiations;

Compatibility of (proposed) Flemish regulation with GA TS obligations;

Compatibility of (proposed) Flemish regulation with provisions on serviees in preferential trade agreements;

The results of this short-term research mayalso be incorporated, where appropriate, into the final

dissertation.


How is the international trade in services regulated at the international level?

The first stage of research consists of preliminary mapping of the international regulatory framework on trade

in services. First, at the multilateral level, the GA TS will be examined. Through an analysis of publidy

available primary sources and context resources (academic literature / press releases) this agreement will be examined. What position does this agreement take in the multilateral field of trade liberalisation? Secondly,

a number of bilateral / regional preferential trade agreements that incorporate provisions on services will be

studied. These indude in the first place the agreements the EU has negotiated in the context of its common

extern a I trade policy, and which have a direct on Flanders. Sy way of a comparative analysis a number of,

yet to be determined, FTAs mayalso be examined. These could indude NAFTA, AUSFTA and the ASEANFramework Agreement on Trade in Services (AFAS). The aim of this mapping exercise is to get a dear view of

the state-of-play in trade in services liberalisation.

To what extent does current international regulation al/ow the autonomous Flemish lawmaker to advance principles of sustainab/e deve/opment, labour rights, public health and cultural diversity in its trade policy concerning services?

The preamble of the GATS Agreement explicitly recognises the 'right to regulate' that WTO Members

reserve. This second part focuses, first, on the issue of domestic regulation which is dealt with in Art. VI of the

GATS Agreement. A structured analysis of this artide will incorporate:

• The negotiating history and ratio leg is;

• The obligations contained in the artide;

• The relationship with other GATS artides;

Second, this part deals with the general exceptions incorporated in Art. XIV GATS. National regulations that

do not comply with GATS obligations may be justified under Art. XIV and XIV bis of the GATS Agreement. A

study of the artide will look at the explicit justifications listed, such as public morals, public order and human,

anima I or plant life or health, as weil as implicit justifications such as the environment, sustainable

development, human rights, labour standards and culture. Part of the analysis will focus on whether these

implicit grounds are covered by Art. XIV GATS. Moreover, an analysis will be made of the requirement that

measures adopted with a view of protecting one of the mentioned objectives does not constitute 'arbitrary

and unjustifiable discrimination.' This analysis incorporates GATS-related WTO case law, particularly the US

Gambling (Weil er and Irwin, 2008; Ortino, 2006) and China - Publications and Audiovisual Products (Pauwelyn, 2010) cases.

What impact does the shift of negotiations on the liberalisation of services, from the multilateral to the bilateral/regionalleve/, have on Flemish external trade policy?

The goal of this part of the research is to establish a pattern, if any, in the liberalisation of trade in services.

To this end, the evolution of PTAs on this issue will be assessed and evaluated. One aspect in which some PTAs

differ from the GATS is the way in which its drafters have adopted a 'negative list' rather than a 'positive list'

approach, thereby trying to achieve deeper liberalisation. This part aims to discern whether the adoption of a

'negative list' approach in PTA negotiations conducted by the EU would offer significant advantages. On the

other hand, it will be examined whether this approach has negative side effects in terms of the loss of policy

space. The empirical data retrieved from the mapping exercise developed under the first stage of the

research will be built upon here. The monitoring of the development of services disciplines in preferential

trade agreements should eventually lead to proposals on which provisions should or should not be transposed

to the multilateral level.

VI. Valorisation

Valorisation of the research wiJl cover:

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11

11

11

11

Presentations at international conferences;

Publications in international and national journais;

Continuous policy support;

Capacity building through workshops;

Frequent reports;

Ph.D. dissertation;

Continuous policy support.

The research will be conducted following the doctoral program of the K.U.Leuven, which stresses the

importance of international publications.

VII. Timing

The researcher will be able to fully benefit from the expertise available at the Institute for International Law

as weil as the K.U. Leuven Centre for Global Governance Studies (GGS). This expertise not only covers

detailed knowledge of international economic law and policy, but also the economic background of the

process of trade liberalisation. The first years of the project wiJl largely be devoted to research activities,

af ter which the researcher will be able to cater for 'on demand' research requests and policy support.

Long term PhD research:

1. State-of-Play of Services Liberalisation (Multilateral and regionallevels)

Literature research

Output: literature study; state-of-play

2. Policy Space in GATS and Services PTAs

Interviews

Year 1 Year2 Year3 Year4

Output: impact assessment

3. Liberalisation of Services through WTO DDA / PTAs.

Output: impact assessment; analysis of best practices; policy guidelines

4. Elaboration of Flemish negotiation strategies

Output: policy formation

Dissertation (academie capacity building)

Continuous policy support


K. Alexander and M. Andenas (eds.), The World Trade Organization and Trade in Services, (Martinus Nijhoff

Publishers: leiden, 2008).

K. BagweIl and P. Mavroidis (eds.), Preferential Trade Agreements: A Law and Economics Ana/ysis, (Cambridge

University Press: Cambridge, 2011.

P. Delimatsis, 'International Trade in Services and Domestic Regu/ations: Necessity, Transparency and Regulatory Diversity', (Oxford University Press: Oxford, 2008).

P. Delimatsis, 'Concluding the WTO services negotiations on domestic regulation - hopes and fears', World Trade Review (2010),9:4,643-673.

P. Delimatsis, N. Diebold, M. Molinuevo, M. Panizzon and P. Sauvé, 'Developing trade rules for services: a case of fragmented coherence?' in T. Cottier and P. Delimatsis (eds.), The Prospects of International Trade

Regulation: From Fragmentation to Coherence, (Cambridge University Press: Cambridge, 2011).

M. Krajewski, 'Public Services and Trade Liberalization: Mapping the legal Framework', Journalof International Economic Law (2003), 6(2), 341-367.

P. Mavroidis, 'Highway XVI re-visited: the road from non-discrimination to market access in GATS', World Trade Review (2007), 6: 1, 1-23.

N. Munin, 'The GATS: alegal perspective on crossroads of conflicting interests', World Trade Review (2011), 10:3, 325-342.

F. Ortino, 'Treaty Interpretation and the WTO Appellate Body Report on US - Gambling: A Critique', Journal of International Economic Law (2006), 9: 117-148.

M. Panizzon, N. Pohl and P. Sauvé (eds.), 'GATS and the Regulation of International Trade in Services',

(Cambridge University Press: Cambridge, 2008).

J. Pauwelyn, 'Rien ne va Plus? Distinguishing Domestic Regulation from Market Access in GATT and GATS',

World Trade Review (2005), 4:2, 131-170.

J. Pauwelyn, 'Squaring Free Trade in Cultural Goods and Services With Chinese Censorship: The WTO

Appellate Body Report on China - Audiovisuals', Melbourne Journalof International Law (2010), 11, 1-22.

D. Persin, 'Market Access for Small versus Large Service Enterprises: The Preferential and Multilateral Trade liberalization Tracks Compared', Journalof World Trade (2010),45(4),785-819.

M. Roy, J. Marchetti and H. lim, 'Services liberalization in the new generation of preferential trade agreements (PTAs): how much further than the GATS?', World Trade Review (2007), 6:2, 155-192.

S. Stephenson, 'Regional vs Multilateral liberalization of Services', World Trade Review (2002), 1 :2, 187-209.

G. Van Calster, 'Faites vos jeux - Regulatory autonomy and the World Trade Organisation af ter Brazil Tyres', Journalof Environmental Law (2008) 121-136.

G. Van Calster, 'An overview of regulatory innovation in the European Union', Cambridge Yearbook of European Legal Studies, eds. Catherine Barnard and Okeoghene Odudu, Oxford, Hart Publishing, 2009, 289-321.

G. Van Calster and K. Hectors, 'De invloed van het Europese milieurecht op de decentrale overheden in België', in L. Hoornaert, G. Straetmans, A-M Van den Bossche (eds), Lokale Besturen: dichtbij en EU-nabij, Antwerpen, Intersentia, 201 0, 11 5- 1 38.

J. Weiler and D. Irwin, 'Measures Affecting the Cross-Border Supply of Gambling and Betting Services (DS 285), World Trade Review (2008), 7: 1, 71- 113.

R. Wolfrum, P. Stoll and C. Feinäugle (eds), 'WTO-Trade in Services, Max Planck Commentaries on World Trade Law, vol. 6, 2008.

J. Wouters, 'Enkele beschouwingen over GATS en hoger onderwijs', in Ad amicissimum amici scripsimus: vriendenboek Raf Verstegen (Die Keure: Brugge, 2004, 386-390).

J. Wouters and D. Coppens, 'GATS and Domestic Regulation: Balancing the Right to Regulate and Trade liberalization' in K. Alexander and M. Andenas (eds.), The World Trade Organization and Trade in Services, (Martinus Nijhoff Publishers: Leiden, 2008).

J. Wouters and B. De Meester, The Wor/d Trade Organization: alegal and institutional analysis, (Intersentia: Antwerp, 2007.) .

WTO, 'Trade Policy Review Report: Report by European Union', WTjTPRjGj248, 1 June 2011.

WTO, 'Understanding the WTO: The Agreements - Services: rules for growth and investment', available at http:j jwww.wto.orgjenglishjthewto_ejwhatis_ejtiCejagrm6_e.htm.

WTO, 'World Trade Report 2011 - The WTO and Preferential Trade Agreements: From co-existence to coherence', available at http:j jwto.orgjenglishjres_ejpublications_ejwtr11_e.htm.

CHAPTER 3 I INTERNATIONAL AND EUROPEAN POLICY

Whilst the European Union faces a number of extern a I and internal challenges (uprisings in the Arab region,

the Euro crisis, economie reform, and so on), the impact of day-to-day EU policymaking upon member states

and regions increases every day. The Flemish Government has recognised the relevanee of the European

governance level in several of its core policy documents and initiatives, and considers an increased

involvement of Flanders in EU policymaking to be a top priority.6 Flemish Foreign Affairs Minister Kris Peeters

has devoted substantial attention to the EU in his policy prioritiesl In partieular, Flemish foreign policy has

included in its list of key goals a focus on strengthening the role of regions in the EU and investing in tools to

influence European policies. Finally, the overarching, long term program 'Flanders in Action' (Vlaanderen in

Actie - ViA) positions the EU and its economie policies (EU2020), as crucial for the economie development of

Flanders.

The call explicitly mentions four issues whieh will be tackled by this 'International and European Policy' pillar.

Page 34 lists th ree issues and page 36 raises the fourth:

(1) Best practices for regional interest representation in EU decision-making

(2) Institutional impact of the Treaty of Lisbon and subsequent opportunities for regions

(3) Impact of EU external policies on Flemish foreign policy

6 VLAAMSE REGERING, Regeerakkoord 2009. Een daadkrachtig Vlaanderen in beslissende tijden, 2009. 7 Beleidsbrief Buitenlands Beleid, Internationaal Ondernemen en Ontwikkelingssamenwerking, 2010.

(4) Organisation and activities of the service sector in EU economie and trade policies

We have reorganised these questions into two encompassing PhD tracks (research activity 1 and 4). These

doctoral projects simultaneously cover both the PhD research tracks and the 4 concrete research questions

explicitly derived from the call (research activity 2-3,5-6). A total of six activities will be carried out by two

PhD students under supervision of 4 promoters from 2 consortium partners (University of Antwerp and

K.U.Leuven). Institutionally, they will both be based at the Antwerp research centre ACIM and the overall

Poliey Research Centre consortium. In addition, all collaborators will be involved in continuous support of

policymakers along the lines agreed within the Steering Group and under guidance of the genera I

coordinator of the consortium.

The first PhD track focuses on poliey fields with a predominantly internal-EU character while the second has a

largely external-EU policy outlook. Among the EU-internal poliey fields are the single market policies,

environmental poliey, research and development, intellectual property, and so on. While some EU internal

market poliey fields have EU-external implications, some extern a I EU policies a/so have implications for

regulation within the EU. By closely coordinating the two projects, the analytieal distinction provides clarity

and maximises the efficiency of each PhD researcher. Among the EU-external policy fields are issues of trade

and investment.

The first track aims at mapping and explaining the success of regional interest representation in EU-decisionmaking. Adopting a mixed method approach by combining a quantitative large-N strategy with some

qualitative in-depth case studies, this track will not only result in PhD and academie output (research activity

1), but will also answer the call's questions 1 (best practiees) and 2 (institutional impact of lisbon) through

research activities 2 and 3 respectively.

The second track also aims at mapping and explaining the success of regional interest representation in the

EU-decision-making system through a series of EU external policy fields. The PhD project (research activity 4)

wil! consist of two complementary comparisons. The first comparison will assess the degree of impact of EU

external policies in different fields on Flanders, while the second will compare different forms of regional

interest representation within those policy fields - hence providing answers to question 3 (impact of external

policies) through research activity 5. In addition, this track will also be involved in the more multidisciplinary

research into the serviees sector, therefore addressing the call's question 4 through research activity 6.

Both PhD students / researchers will be based at the ACIM (Antwerp Centre for Institutions and Multi-Ievel

Polities), composed of 3 professors, 3 post-doe researchers and a dozen PhD students. The overall research

agenda of the group is to study the impact of multi-Ievel institutional configurations on changes in government

and governance, policy and polities and state - society relations. Clearly, the impact of the EU on regional

authorities and the constraints and opportunities that follow from the process of European integration fit

squarely into the core of its research agenda. The group has established three research lines: the polities of multi-Ievel government, the polities of interest representation, and regulatory and judicial polities. The four

research questions put forward by the Flemish government fall within the first; the research activities

developed for the first track also has empirieal linkages with the second and third research lines. The group

has already gained substantial experience in studying the position of regions in the EU and the strategies of

both functional and territoria I EU interest group organisations. What we propose builds cumulatively upon

several ongoing projects, whieh means that we will be ab Ie to create synergies with already existing

expertise and data-sources. We stress that ACiM is a strong international player whose faculty is involved in

numerous collaborative research projects with different global partners and networks. Faculty in the group

are partners in the European Science Foundation CRP INTEREURO - Comparative research on interest group

polities in Europe, steering members of the ECPR Standing Group on Interest Groups, and have extensively

collaborated with the University of Edinburgh on federalism and interest representation in federal politieal

systems. In this regard mutual and added-value exchanges of expertise and data is assured. On top of this,

and within the consortium, we envisage close co-operation with senior members of the KU-Leuven Institute for

International and European Policy.

In addition to the incorporation of the projects in ACiM and the broader consortium we plan to explore

synergies with other Policy Suppor Centres, especially the EU tracks in 'Bestuurli;ke Organisatie / Slagkrachtige Overheid', whieh will deliver valuable opportunities for co-operation. We also envisage close collaboration

with the 'Departement Internationaal Vlaanderen' and several of its agencies, Flanders Investment and Trade

F.I.T., the Flemish Delegation within the Belgian Representation to the EU and the Flemish - European Liaison

Offiee (Vlaams - Europees Verbindings Agentschap -VLEVA). For valorisation initiatives, we plan to work

together with training institutions such as Prospex.

I. Project details

Explaining Variation of Regional Authorities' Influence in EU Legislation [Invloed van regio's in Europese wetgeving. Op zoek naar verklaringen voor de variatie in succes]

Antwerp Cent re for Institutions and Multi-Ievel Polities (ACIM), Universiteit Antwerpen

Supervisors: Prof. Peter Bursens and Prof. Jan Beyers

PhD student / researcher: to be hired

This track 1 explicitly addresses the following items identified in the cal!:

a. 'Een vergeli;kend onderzoek naar de wi;ze waarop verschillende substateli;ke actoren (cf het grote aantal regiokantoren) invloed uitoefenen op de Europese besluitvorming. Een onderzoek naar 'good practices'. Hoe scoort Vlaanderen hier in, hoe kan Vlaanderen zijn prestaties hierin verbeteren?' (call p. 34) The

large-N-part of the PhD-research project wil! be combined with in-depth case studies in order to

achieve both academie output and recommendations based on knowledge about practiees adopted

by other European regions

b. 'Welke (institutionele) hernieuwingen zi;n relevant voor substateli;ke actoren en welke opportuniteiten liggen er concreet voor Vlaanderen?' (call p. 34) This track wil! take 2009-2011 as a timeframe.

Hence, it wil! provide the necessary data and analysis to answer also the first question mentioned in

the cluster 'European Union' .


Regions are affected by a broad range of European policies. Regional authorities are of ten responsible for

the implementation of EU legislation whilst the scope of their policies can be constrained by a large number of

EU policies, even when these do not belong explicitly to their domestic competencies. Obviously, regions all

over Europe have recognized the substantial impact of the EU and have engaged in a wide array of influence

strategies. Moreover, in various ways the EU institutions themselves take an open attitude towards regional

involvement in the EU polieymaking process. The core objectives of this project are (1) to map the successes

(and failures) of regional authorities in influencing EU legislation and to explain the variation in success, (2) to

derive best practiees and (3) to identify new opportunities and challenges brought about by the introduction

of the Lisbon Treaty. The latter 2 objectives are elaborated upon in the two sections discussing the policy

deliverables.


The role of regions in the EU and the impact of the EU upon regional authorities has been studied widely for

over two decades. Most of this work is embedded in the regionalism Iiterature (Jeffery 1997, 2000; Keating

1998, 2008), the multilevel governance literature (Hooghe and Marks 1996, 2001) and the Europeanization

Iiterature (Graziano and Vink 2007, Bursens 2007, 2011). Another strong empirieal research agenda has

focused on the impact of non-state actors in European policy-making. This research agenda is primarily

embedded in interest group polities and lobbying Iiterature (Beyers 2002, Beyers and Kerremans 2007,

Bouwen 2002, Coen & Riehardson 2009, Greenwood 2011). It has delivered numerous empirieal analyses of

interest group influence in EU policymaking.

It is notabie that both research tracks are increasingly being combined and integrated, whilst the involvement

or territorial interests in the EU influence production process is more closely scrutinised. Nevertheless, we still

lack systematie data of the influence of regional authorities in European decision-making and EU legislative

processes. Only recently, this gap has been identified by Thatham (2008, 2010), Blatter and Kreutzer (2008,

2009), and by our own research group 'ACIM', as we currently manage an ongoing PhD-project that aims to

examine the advocacy tacties of territorial interests in the EU (Verboven 2011; Verboven, Beyers and Roeien

2011). One key component of this project consists of mapping all regional actors represented in Brussels

(there are approximately 450 of these) and explaining the variation of organisational formats regional

authorities use when they mobilise in Brussels. The Policy Research Centre research will take the data collected

within the ongoing project as a starting point.

In short, in this research activity we aim to combine the expertise, knowledge and methodologies of two large

research programs - interest group polities on the one hand and regionalismjmultilevel governance on the

other - into an innovative strategy that will determine how to map and to account for the variations in

influence of regional authoritiesjterritorial interests in EU legislative decision-making?


This project allows for theoretica I innovation because it combines insights and expertise from different areas

of political science through the study of how interest organisations lobby in Brussels on the one hand, and via

the Iitany of Iiterature on regional representation in Brussels on the other.

This will, first of all, enable us to test the scope of some existing propositions on territoria I interest

representation: are these theories on lobbying applieable to territorial interests, do they need minor or major

adjustment, or do we need a substantially different set of theoretica I propositions to explain territorial

interest's influence in EU decision-making? Another reason for this combination is that regional interests

operate in Brussels, an environment where the vast majority of interest organisations are non-territoria I or

functional (Beyers, Eising, Maloney 2008). The question is how regional interests can navigate effectively in a

dense community where they are only one player among many others.

Secondly, the project adds to our empirical knowledge regarding an important aspect of the behaviour of

regional authorities in the EU, namely why these authorities are sometimes effective in their lobbying efforts

and less so at other times. What (types) of regions are successful in influencing which kinds of legislative

issues? What explains their success? Which areas are more easily influenced compared to other areas? These

questions refer to a broader interest in politica I science on issues pertaining to how to measure and explain

politica I influence and power. Because of the innovative combination of research traditions and because of the

combination of quantitative and qualitative methods, the project can result in a number of peer reviewed

publications and in a PhD.

In addition to this, the empirical results wiJl be extremely interesting for policy-makers. Our approach wiJl

make it possible to identify successful regional strategies and to point to explanations as to why some regions

have been successful in defending their interests at the European level. To this end, the large N approach wiJl

be complemented by in-depth case-studies. In other words, we wiJl be able to identify best practices and to

suggest how Flemish policymakers can learn from these examples.


The large N design wiJl be an important souree for the PhD research while the case studies will on top of that

be used to derive concrete suggestions for the Flemish government.

For the large N quantitative analysis we have developed the following strategy. The first step is to map the

issues that trigger influencing activity by the Flemish government. We wiJl start from a randomised stratified

sample of 100 legislative proposals that is currently drawn from the complete set of legislative initiatives

2008-2010, derived from PreLex/EurLex (n=636 directives, regulations, Green Papers and White Papers).

This sampling is part of an ongoing research project - INTEREURO, funded by the European Science

Foundation - led by Jan Beyers. In order to sufficiently capture the post-lis bon era, we will add a

randomised stratified selection of 20 legislative proposals from 2011. The sample of issues wiJl be submitted

to a selection of Flemish actors (officials, private organisations, members of ministerial cabinets, politicians),

who are in one way or another involved in EU legislation. They wiJl be asked in which of these proposals

Flanders has had an interest and/or where it has tried to influence EU decision-making. This wiJl result in a list

of legislative issues in which Flanders invested politica I resources, which could entail many different things

ranging from very small investments (such as an isolated effort by the Flemish administration to seek

information from the European Commission) to very large lobby campaigns the Flemish government becomes

involved in.

As we presume that the Flemish government wiJl - as most other regional governments - prioritise its efforts to

influence the EU, we also presume that the number of remaining issues will be much lower than the 120 issues

we start with. A systematic measure of what the Flemish government - in collaboration with other actors -

lob bies on, is in itself interesting. It is important to note that this design does not select legislative proposals

because they are part of the regional competence catalogues in Belgium. This is important because also

legislative proposals that belong to the federal level can be relevant as these can have impact on Flemish

economy, actors and policies. Examples of these include EU legislation in the area of the budget, energy and

social affairs.

The second step is to map other European regional authorities that undertook action in the (selected) issues.

For this we use a dataset established within our own research group which contains all regional authorities that

are active in Brussels as weil as the large data-archive that is currently developed within INTEREURO. Our

main sou ree of information to find out which regions have also developed lobbying activity is online data from

the consultation procedures of the European Commission. Other sou rees such as specialised European media

(Agence Europe, European Voice and online media) will be explored as weil. This mapping is important as it

allows us to identify systematieally the allies and opponents the Flemish representatives at the EU-level are

confronted with. Such a systematie mapping of allies and opponents is important as we know from the

lobbying literature that most lobbying is conducted by large coalitions of interest organisations (Gray an

Lowery 1998; Heany 2005; Beyers and Kerremans 2004; Hula 2009).

It is relevant to point out that this design will enable us to move beyond the group of usual suspects, i.e. strong

legislative regions from Germany, Austria, Spain, Italy and the UK. These will surely be part of the research.

Yet, we know that the representation of regions in Brussels is much more multifarious and diverse than is

traditionally considered (Ver boven, Beyers and Roeien 2011). For instance, we expect other kinds of regional

authorities such as big eities and coalitions of regions to be active in a number of policy issues. Comparing

lobbying from Flanders with the lobbying of these kind of regional authorities can shed new light upon the

overall Flemish performance.

The third step is to measure influence through a comparison of the legislative text - the outcome - and the

preferences of the regional interests. All these legislative texts are available electronieally through EURLEX

and will be coded by INTER EURO (more preeisely by the US team at the University of Virginia, with whieh

ACiM collaborates closely). We will conduct a detailed measure of the preferences of regional authorities by

analysing the online consultative procedures of the Commission, the websites of the regions and by press

reports (e.g. from Agence Europe). Depending on the quality of the data, we can then proceed in two ways. If

the data is detailed enough we can use computerised content analysis to compare the final legislation with the

initia I preference. If not, we will reduce the data to the level of identifying whether regions we re supported

or opposed to a number of relevant issues in the legislation. In the latter case, we will analyse broad policy

positions.

In the end, this strategy will deliver a dataset with issues that have been subject to lobbying by regional

authorities including knowledge about whieh regions we re successful in shaping EU polieies according to their

preferences. In terms of learning from other regions, the identifieation of successful regions will be a starting

point for the selection of a limited number of regions and cases that will be analysed in more detail. It needs

to be emphasised that, as we will collect data in a broad range of policy fields, we can also explore

variation within Flanders in order to address the question to wh at extent is Flanders more successful in some

policy fields than in other and why.

Finally, we will look to explain the variation in success, i.e. the identifieation of explanatory variables and the

mechanisms at play. It needs to be emphasised that much of the theoretieal work of the PhD-student will be

focused on the conceptualisation and measurement of politica I influence; here we will build upon the most

recent and advanced politieal seience knowledge that is available to us (for examples see Arts and

Verschueren 1999; Duer and De Bièvre 2007). Fortunately, there is already much expertise on the matter

available in ACiM. Basieally, we will develop a set of hypotheses from the existing lobbying literature. We

will start from the set of independent varia bles gathered from other ongoing projects within ACIM. The set of

explanatory variables will consist of th ree clusters:

(1) characteristies of regions (finaneial resources, personnel resources, internal organisation, domestie co

ordination, constitutional position, ideologieal orientation of government in power, ••• ),

(2) strategies / advocacy tacties of regions (coalition partners, both public and private, lobby

strategies, lobby venues, lobby instruments, ••• ) / political resources invested in the issue,

(3) issue and poliey field characteristies (salience, type of policy domain, ... ).

VI. Valorisation

The academie valorisation will consist firstly of a PhD. Derived from th is, the PhD student and the promoters

will submit several artieles to peer reviewed journals and books. In addition all involved staff will present

results during international conferences (ECPR, EUSA, APSA, UAC ES, and so on). On top of this, the project will

build several datasets whieh can be used in future research projects and by Flemish governmental agencies:

an inventory of territoria I interests in the EU, and a dataset with policy issues relevant for regional authorities.

As such, the project will be an important element in our endeavour to establish cumulative knowledge on the

involvement of regional actors in multi-Iayered systems such as the EU, one of the objectives of ACiM. Further,

the project will entrench itself on the international stage by participation in critieal international conferences,

and the use of Policy Research Cent re as a tooi to strengthen our participation in international research

networks. This will add important value to Flanders as it ensures that Flemish academies continue to play a

leading role in European research networks that focus on regionalism and the role of regional and sub-state

authorities.

Policy Deliverable 1: Good Practices in EU Legislative Lobbying

The first PhD track seeks to answer the question put forward in the call regarding a comparative analysis of

territorial lobbying in the EU in order to derive best practiees. 'Een vergeli;kend onderzoek naar de wi;ze waarop verschillende substateli;ke actoren (cf het grote aantal regiokantoren) invloed uitoefenen op de Europese besluitvorming. Een onderzoek naar 'good practices'. Hoe scoort Vlaanderen hier in, hoe kan Vlaanderen zi;n prestaties hierin verbeteren?' (call p. 34). Hence, the policy goals are clearly complementary to the theoretieal

goals of the first PhD track. How does Flanders perform? Under whieh conditions is the Flemish government

influential and under whieh conditions does it lack influence? Do other regions perform better and if so, wh at

factors attribute to their success? And ultimately, can the Flemish government learn from other regions? To

what extent are regional authorities comparable? How can the Flemish government apply a smart copy-paste

strategy in order to optimise its own impact on EU poliey-making?

The approach follows directly from the design of the PhD track described above. First, all relevant poliey

issues from 2008-2011 will be identified. Secondly, we will select those issues that triggered lobbying activity

from the Flemish government. Thirdly, we will identify all other regions that have been active with respect to

these issues. Fourth, we will measure the influence of these regions. Next, we will conduct a quantitative

analysis to identify the factors under whieh regions can be successful in legislative lobbying. This will present

us with a list of conditions that the Flemish government can take into consideration when engaging in lobbying

activities towards the EU. The advantages of structuring the research by issues is that we will supersede the

obvious selection on regions and policy fields. This is important because we believe that the Flemish

government might also learn from other regions than those who also enjoy legislative competencies and from

other poliey fields than their own.

While the former steps are all equally included in the PhD research, we proceed with an additional stage in

order to formulate poliey recommendations for the Flemish government. We will select a limited number of

successful cases (either other regions or partieular issues or policy fields) and analyse in more detail the

strategies used. We will investigate to what extent the Flemish case is comparable to the these examples and

ultimately look into what way the Flemish government would be able to transpose the strategies to Flanders.

Multiple valorisation outputs are envisaged from this approach. First of all, the project in combination with

other ongoing projects within the research group will deliver datasets that can be used by the Flemish

government in future efforts to influence EU policy-making. The dataset comprising information on all regional

authorities active in Brussels will enable the Flemish Government to seek allies to collaborate with in partieular

cases. The dataset whieh is composed of all relevant policy issues covering the years 2008-2011 can be used

to scan the kind of issues that are relevant for Flemish policy-competencies. The pre- and post-Lisbon variation

allows us to make inferences on the impact of changes in the overall EU institutional infrastructure.

Secondly, we will produce reports covering the quantitative and qualitative comparative analysis, identifying

good practiees in other regions, including a careful analysis of strategies that can be usefully transposed into

the Flemish context. A workshop for Flemish officials and officials coming from best practiee regions, including

some academies from other prestigious research centres, can be useful to transfer knowledge and skilIs in EU

interest representation.

Thirdly, we can envisage training for officials who are involved in EU policy-making. A collaboration with

VLEVA and private training experts seems to be useful to provide hands-on training in lobbying EU legislative

processes. Training can be organised in collaboration with other training initiatives of the overall consortium

and with external partners.

Policy Deliverable 2: Institutional Change under the Treaty of Lisbon upon Flemish Foreign Policy Opportunities

Treaty changes throughout the history of European integration have always had an impact on the

opportunities available for member states to act within the EU. Obviously, this is also true for regions with

legislative competences such as Flanders, who equally engage in legislative lobbying. The call therefore

correctly asks to what extent the Lisbon Treaty has altered the interest representation environment for regions:

'Welke (institutionele) hernieuwingen zi;n relevant voor substateli;ke actoren en welke opportuniteiten liggen er

concreet voor Vlaanderen?' (call p. 34)

Within the first PhD track, we will therefore deal with the impact of the institutional environment of the EU

upon constraints and opportunities for Flemish foreign policy.

Theoretieally, we will frame this project within the research agenda of Europeanisation (Featherstone and

Radaelli 2003, Graziano and Vink 2006, Bulmer and Lequesne 2006) whieh examines the way issues of

polity, poliey and polities within member states adapt to the ongoing process of European integration. Here,

we focus on the impact of institutional changes on the European level (the Treaty of Lisbon) upon the strategies of regional authorities.

The academie goal is clear: we seek to make an exhaustive overview of all relevant changes in the Lisbon

Treaty for regional authorities. Many legal and politica I analyses have already been made. While most of

these focus on the impact upon the member state level, we go one step further and consider the impact upon

the regional level. Once the impact has been identified, the policy goal becomes obvious: does the new

institutional context put limits on regional involvement in the EU, or did it rather bring new opportunities? We

seek to identify the major challenges and the most important new avenues for Flanders to play the European

game. Note that the objectives identified for the large-N-research are closely interrelated with this poliey deliverable.

The first task is to make an inventory of all artieles of the Treaty that have changed and have entailed

potential consequences for regional authorities. We look at the major changes: new institutions (EC president,

High Representative), the abolishment of the pillar structure, the changes in the rotating presidency, the new

voting system in the Council, increased role for the EP, the new and more extensively used ordinary legislative

procedure, the ex ante engagement of the national and the regional parliaments, the External Action Serviee,

the mutual solidarity c1ause, stricter rules for the implementation of EU policies, new comitology rules, legal

status of the fundamental rights charter, newly defined policy areas into exclusive, shared and supporting

competencies, and so on). Obviously, the impact of more explicit 'regional' changes will be considered. The

Treaty mentions in this respect "territoria I cohesion" among the objectives of the Union; respect for minorities

and protection of Iinguistie and cultural diversity; the recognition of regional identities; respect for local and

regional self-government; involvement of regional and local levels in the provisions concerning the subsidiarity

principle; recognition of the specificity of certain areas and regions; the right of the Committee of the Regions

to bring a case in front of the European Court of Justiee to proteet its own prerogatives, as weil as respect for

the subsidiarity principle; the consultation of the Committee of the Regions for new areas, su eh as energy and

civil protection. We might think here of a report largely composed of 5 columns: Treaty changes, positive

effects for regions, negative effects for regions, identifieation of challenges and opportunities,

recommendations • Analytieally, the impact will be divided into different aspects relating to impact upon

policy, polities and polity. Did the Lisbon Treaty respectively influence the content of regional policies, the way

regions deal with the EU or the way the regions are organised internally? As this track will tackle the period

2009-2011, the PhD student wiJl also have the opportunity to study how similar regions than Flanders have

reacted to the changes brought by the Lisbon Treaty. During the interviews of the qualitative part, officials of

comparable regions wiJl be asked to assess the Lisbon changes and to present the reactions of their own

regions. Additionally, as the Treaty will already be into force for more than two years at the start of the

project, we wiJl be able to make an empirica I analysis of how the Flemish Government and other regions have

responded. We envisage drawing upon good practiees both within Flanders and from other regions to feed

recommendations with respect to how get the most out of Lisbon.

Valorisation of this activity wiJl be threefold. First a report wiJl be delivered discussing the impact and the

opportunities brought by the lisbon Treaty, together with recommendations for the political and the

administrative level. Next, the project wiJl present a database on the relevant treaty artieles and the impact.

Third, we plan to organise a workshop for officials and politica I actors from the Flemish government to

disseminate the results of the project. For the latter, we wiJl seek co-operation with the Vlaams-Europees Verbindingsagentschap VLEV A.

VII. Timing

The PhD track wiJl run throughout the entire 5 years. Obviously, the PhD wiJl only be finished at the end, while

other academie (papers, journal articles) and policy output (reports, datasets, training) are also envisaged in

earlier stages. The first policy valorisation wiJl deliver its activities during year 3 and 4 (2014-2015) as it wiJl

build heavily upon the data-collection in 2012-2013. Datasets, reports will be available as from 2014,

workshops and training wiJl be organised throughout 2015. The second policy valorisation will be carried out

during the first two years. The institutional analysis and subsequent report is envisaged for 2012. The results

of the comparative analysis are timed for the end of 2013, in order to make optimal use of the field work for

the overall data-collection.

Year 1 Year 2 Year 3 Year 4

Research Activity 1:


Issue-mapping and actor mapping

Measuring influence

Explaining variation

Editing dissertation and journal output

Keisearch Activity 2:

Policy Oeliverable 1: Good Practices

Analysis and data-sets

Report - workshops - training


Policy Oeliverable 2: Impact of Lisbon Treaty

Institutional analysis

Comparative analysis



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Based on Triangulation." International Politieal Science Review 20(4): 411-424.

Beyers, J. (2002). "Gaining and seeking access. The European adaptation of domestie interest associations." European Journalof Politica I Research 41 (5): 585-612.

Beyers, J. and B. Kerremans (2004). "Bureaucrats, Politicians, and Societal Interests. How is European polieymaking politicized?" Comparative Politica I Studies 37( 10): 1 -31 •

Beyers, J. and B. Kerremans (2007). "Critieal Resource Dependencies and the Europeanization of Domestie Interest Groups." Journalof European Public Policy 14(2): 460-81.

Beyers, J., R. Eising, and W. Maloney (2008). "Researching Interest Group Polities in Europe and Elsewhere:

Much We Study, Little We Know? ." West European Polities 31 (6): 1103-1128.

Blatter, J., M. Kreutzer, et al. (2008). "The Foreign Relations of European Regions: Competencies and Strategies." West European Polities 31 (3): 464-490.

Blatter, J., M. Kreutzer, et al. (2009). "Preconditions for Foreign Activities of European Regions: Tracing Causal

Configurations of Economic, Cultural, and Politieal Strategies." Publius 40(1): 171-199.

Bouwen, P. (2002). "Corporate Lobbying in the European Union: The Logie of Access." Journalof European Public Policy 9(3): 365-90.

Bulmer, S. and Ch. Lequesne, (2005) "The Member States of the European Union", Oxford, Oxford University Press.

Bursens, P. (2006). State Structures. In P. Graziano and M. Vink "Europeanization: New Research Agendas". Basingstoke, Palgrave: 115-127.

Bursens, P. (2011) Subnational Authorities in S. Bulmer and Ch. Lequesne (eds.) "The Member States of the EU", Oxford, Oxford University Press, forthcoming.

Coen, 0., and Riehardson, J. (2009) "Lobbying the European Union. Institutions, Aetors and Issues" (eds.) Oxford, Oxford University Press

Dür, A. and D. De Bièvre (2007). "Inclusion without Influenee? The Involvement of NGOs in European Trade Poliey." Journalof Public Poliey 27(1): 79-101.

Featherstone, K., Radaelli, c., Ed. (2003) "The Polities of Europeanization". Oxford, Oxford UP.

Gray, V. and D. Lowery (1998). "To Lobby Alone or in a Floek. Foraging Behavior Among Organized

Interests." Ameriean Polities Quarterly 26( 1): 5-34.

Graziano, P., Vink, M., Ed. (2006). "Europeanization. New Research Agendas". Basingstoke, Palgrave.

Greenwood, J (2011) "Interest Representation in the European Union" Basingstoke: Palgrave Maemillan.

Heaney, M. T. (2006). "Brokering Health Poliey: Coalitions, Parties, and Interest Group Influenee." Journalof Health Polities, Poliey and Law 31 (5): 887-994.

Hooghe, L., (1996) "Cohesion Poliey and European Integration: Building Multi-Level Governanee" Oxford, Oxford University Press.

Hooghe, L., Marks, G. (2001) " Multi-Ievel Governanee and European Integration" Lanham, Rowman & Littlefield.

Hula, K. W. (1999). Lobbying Together. Interest Group Coalitions in Legislative Polities. Washington, Georgetown University Press.

Jeffery, C. (1 997). "The Regional Dimension of the EU" London, Cass.

Jeffery, C. (2000). "Sub-National Mobilization and European Integration." Journalof Common Market Studies 38(1): 1-24.

Keating, M. (1998) "The New Regionalism in Western Europe: Territorial restrueturing and Politieal" Change. Cheltenham, Eigar.

Keating, M. (2008). "Thirty Years of Territorial Polities." West European Polities 31 (1-2): 60-81.

Tatham, M. (2008). "Going Solo: Direct Regional Representation in the European Union." Regional and Federal Studies 18(5): 493-515.

Tatham, M. (2010). "'With or without you'? Revisiting territoria I state-bypassing in EU interest representation." Journalof European Public Poliey 17( 1 ): 76-99.

Verboven, T. (2011), The Organizational format of territoria I Lobbying in Brussels', unpublished paper.

Verboven, T., J. Beyers, and E. Roeien (2011). Explaining the organizational format of territoria I lobbying in Brussels. ECPR General Conference 25-27 August 2011. Iceland, Reykjavik.

I. Project details

Explaining variation in regional authorities' representation in European Union external policy fields

[Op zoek naar verklaringen voor de rol van regio's in externe beleidsdomeinen van de Europese Unie]

Antwerp Centre for Institutions and Multi-Ievel Poli tics (AClM), Universiteit Antwerpen

Supervisors: Prof. Dirk De Bièvre (ACIM), Prof. Bart Kerremans (IIEB) and Prof. Peter Bursens (AClM)

PhD student / researcher: to be hired

This track 2 PhD project will analyse the way regional authorities are represented in EU external policies. By

doing so, it will provide answers to the following items identified in the call:

1. 'Een vergelijkend onderzoek naar de wijze waarop verschillende substatelijke actoren (cf het grote aantal regiokantoren) invloed uitoefenen op de Europese besluitvorming. Een onderzoek naar 'good practices'.

Hoe scoort Vlaanderen hier in, hoe kan Vlaanderen zijn prestaties hierin verbeteren?'. Whereas the track

1 PhD project focuses on internal, legislative policy making in the EU, this PhD project focuses on regional

authorities' representation in EU external affairs. The project will analyse two aspects of variation:

differences between extern a I policy fields (tra de in goods, trade in services, investment, health,

intellectual property, ... ), and before and af ter the lisbon Treaty.

2. Within this systematic framework the PhD will be able to answer the other following questions in the call's

cluster 'European Union': 'Wat is de impact van de ontwikkelingen inzake het Europees Gemeenschappelijk Buitenlands en Veiligheidsbeleid op het Vlaamse buitenlands beleid, zowel op institutioneel als beleidsmatig vlak?' (p. 34), 'Welke (institutionele) hernieuwingen zijn relevant voor substatelijke actoren en welke opportuniteiten liggen er concreet voor Vlaanderen?' (p. 34), and 'Waarom is de dienstensector veel minder goed georganiseerd in federaties en koepels vergeleken met de industriële sector? Wie kan de belangen van de dienstensector(en) verdedigen en communiceren? Hoe kan de Vlaamse overheid (DiV) de dienstensector(en) op een efficiënte manier bereiken en consulteren?' (p. 36)


The distribution of competences among regional, national and European levels has been undergoing a

significant shift recently. Since the adoption of the lisbon Treaty, the European Union has acquired new

competences in the areas of trade in services, investment, intellectual property, standards, environmental

policy, etc. All these issues enhance the role that the EU can play in international relations and international

negotiations, and potentially the role of supranational institutions such as the European Parliament and the

European Commission. This raises the question how regional authorities such as Flanders can effectively

represent their interests in EU external affairs.

The objectives of this project are therefore (1) to map the different possible forms of regional involvement in

EU external affairs, (2) to assess the differences in efficacy of each of these forms, and (3) to explain these

differences. In achieving these objectives, the fundamental difference between EU external affairs and EU

internal affairs needs to be kept in mind. In the case of external affairs, EU actors act at the international

level on behalf of the EU and under control of different politica I actors within the EU such as the European

Parliament, the Council of Ministers, and the EU member states. This acting at the international level creates

challenges for those who are represented at that level, and thus also for regional entities. The latter may even

face even larger challenges than the other actors do. Principal Agent Theory will clarify why this is the case.


As noted in the scientifie state of the art of Research Activity 1, the role of regions in the EU and the impact of

the EU upon regional authorities has been studied widely for over two decades. Most of this work is

embedded in regionalism literature (Jeffery 1997; 2000; Keating 1998; 2008), multilevel governance

literature (Hooghe and Marks 1996; 2001) and Europeanisation literature (Graziano and Vink 2007; Bursens

2007; 2011). To understand the role of regional authorities in the EU's external affairs, research on the

involvement of such authorities in the EU needs to be combined with research on the EU's external affairs.

There is first the literature on the development of competences and policies in this area and the factors that

drive these. This literature covers both developments in the EU's Common Foreign and Security Poliey, EU trade

policies, and the interaction between these two (Keukeleire and MacNaughtan 2008, Hili and Smith 2011, Dür

and Elsig 2011, De Bièvre and Eckhardt 2011, Gstöhl 2009, Gstöhl and De Bièvre in preparation).

There is secondly, the literature on principal-agency theory (Epstein and O'Halioran, 1999; Shapiro 2005;

Gailmard 2009), its application to the EU in general (Tallberg 2002; Pollack 1997; 2003; Franchino 2007)

and to the EU's external policies in partieular (Meunier and Nieolaïdis 1999; Kerremans 1994; De Bièvre and

Dür 2005; Damro 2007; Elsig 2007; Delreux 2011). This literature analyses the tension between the EU

negotiator in international affairs on the one hand, and the EU representatives of member states on the other

hand. The former is seen as the agent, and the latter as the principals. Principal-agent models have been

developed and empirieally researched to show how the external role of the EU agent affects the ability of

the principals to control the agent, the tools the principals apply here, and the constraints that the agent faces

(Kerremans 2004; 2006; Delreux 2008; 2009; Delreux and Kerremans 2010). Information asymmetry is

crucial here. Because the EU agent acts as an EU representative in international negotiations and

deliberations, it has access to information to whieh the principals have less or no access to, complicating

member state principals' efforts to control their EU Commission agent - a diffieulty that regional authorities

may be confronted with to an ever greater extent. Member state principals may find it more diffieult to

control their agent under qualified majority voting (QMV) than under unanimity. In the case of unanimity in the

Council, each principal has a veto over the outcome - reducing agency losses. When the policy field in

question falls under QMV, such institutional prerogatives may disappear, unless member state principals act

under an informal consensus decision mode. Importantly, however, principals - such as member states or

regional authorities - can revert to other institutional venues to alleviate their disadvantaged position (see

more on this below). Agency losses at the detriment of principals also vary with the kind of privileges that the

EU principals can call upon at the international level, such as their participation rights in international

organisations, and the existence of large member state permanent representations with such organisations.

Wh en negotiations are conducted in a multilateral setting, decisive negotiations tend to take place in more

informal settings where the EU agent tends to enjoy near-exclusive participation rights to the detriment of the

EU principals. The question is th en how principals can prepare for this reality, how they ensure that the agent

will take into account their interests in informal negotiations, and what channels they should follow to remain

informed about what is going on behind closed doors. This question has so far been approached for member

state representation at the EU level as weil as the representation of sector interests at the EU level, yet can

and must be complemented by an analysis of regional authorities' (such as Flanders') possibilities to monitor

and influence EU external poliey making.

Thirdly, there is the literature on the role of small states in international relations (Ingebritsen, Neumann, Gstöhl

and Beyer 2006). This literature points at factors that matter for small players in international relations such

as coalition formation with other small partners (and a division of labor with them), close collaboration with

large partners, the need to focus on a limited number of highly politicised issues, and the potential importance

of close co-operation with supranational institutions. Some of these may be important as weil for a relatively

small reg ion like Flanders that at the same time possesses important legislative competences.

Timing to conduct this research is very propitious: the institutional changes brought about by the Lisbon Treaty,

bring about a near experimental environment to assess the impact of this institutional change to the practices

of regional interest representation in EU external affairs, allowing for a neat and simple analysis of before

and af ter (see also the planned legal analysis in other parts of this Policy Research Centre application).

Especially the fact that the competency to conclude bilateral investment treaties has now been transferred

from the member states to the EU level, requires careful consideration of the effects of this institutional change

on the representation and defence of firm and sector interests (especially services) by national and regional

authorities in EU decision making (Woolcock 2006; Manger 2009; Kleimann 2011). Institutional characteristics

- such as the question whether exclusive or shared competences exist in an area, or whether QMV or

unanimity rules in the Council - may be particularly important for a reg ion that wants to defend its interests,

and for the channels that it needs to use in order to do so.


This PhD research project aims at mapping and explaining the impact of regional interest representation in

the EU-decision-making system in different EU external policy fields. It will do so by a systematic analysis of

different ways in which regions tend to defend their interests in the EU's external policy fields, and the

perceived effectiveness of these ways. For that purpose, a systematic comparison will be conducted of the

way in which four different regions with legislative powers in the EU defend their interests in six different

external policy fields of the EU: trade in goods, trade in services, intellectual property rights, investment,

environment, and competition. We will elaborate on the precise case selection of the 3 other regions apart

from Flanders in the section on 'Research design and methodology', since this depends crucially on the mix of

institutional and policy preference differences and similarities that will allow for maximisation of the validity

of the findings. In this comparison, the situation before, but especially af ter the en try into force of the Lisbon

Treaty will be scrutinised in order to identify the opportunities that this Treaty has brought about for regions

with legislative powers in the EU. Throughout this work, the focus will be on the ways in which, and the channels

through which these regions try to limit the information asymmetries that emerge as a consequence of the fact

that it concerns external policy fields. We elaborate on such possible channels of regional representation in

the next section.

Regions with legislative powers within EU member states have numerous institutional venues at their disposal

through which they can represent themselves and defend the interests of their firms and citizens, and thus

through which they can try to exert control on the EU actor that negotiates on behalf of the EU in international

negotiations. Firstly, such regions can be directly involved in the determination of the position that their

member state will take in the EU Council, the COREPER, the Council working groups and, in the case of

extern a I policies, the committees through which the member states control and assist the EU negotiator on

international negotiations (such as the Trade Policy Committee in the Council and the European Parliament

INTA committee on International Trade, in which interestingly there is currently not one single Flemish or

Belgian MEP ... ). Secondly, such regions can be directly present in these bodies, albeit not as representatives

of themselves only but of their member state as a whoie. But the direct presence in bodies such as the EU

Council, the Council working groups, and certainly in the committees that assist and control the EU negotiator

provides important potential informational advantages to a region. Thirdly, regions can insert their

preferences in comments that the Committee of the Regions provides to the European Commission and the

other EU institutions. Fourthly, regions can engage in close co-operation with other regions whenever their

preferences converge, or even with the authorities of other member states.

Each of these channels may have its own benefits, its own constraints, and its own pitfalls depending on the

distribution of competences between the EU and the member states, the distribution of competences inside the

region's member state, the extent to which regions agree or disagree among themselves on the ways to follow

in an international negotiation, the international negotiating setting (multilateral, bilateral), the knowledge

intensity of the issues at stake, and the level of politicisation of these issues.

like in the first PhD project, by comparing the practice of several important regional entities within the

European politica I system, we intend to co me to a systematic explanation for why such sub-national entities

choose particular venues above others or choose to combine some of these. One of the most important

explanations lies in the variation across different policy fields. Quite obviously, Flanders has strong

competences in a number of policy fields with a crucial extern a I dimension, such as environment and external

trade policy. Yet, between those areas where Flanders and other European Union regions do have strong

legislative competencies and those where they don't have them, there is likely to be systematic variation in the

way they represent themselves and defend their interests in international negotiations.

In the area of trade and investment relations, the positioning of Flanders within the new institutional

architecture of the European Union is of paramount importance for the region. The lisbon Treaty has indeed

enhanced the EU's trade competencies with those in the field of bilateral investment treaties. Contemporary

bilateral or regional trade agreements, of ten contain very important sections on investment conditions,

intellectual property rules, and service industry regulation. Especially in the area of investment, the

simultaneous development of the decline of the so-called bilateral investment treaties (BITs) and the newly

acquired competence of the EU to conclude all new bilateral investment treaties on behalf of its member

states, is an important development, the impact of which this research project wiJl seek to assess (Woolcock

2006).

In the policy field of industrial and scientific innovation, it is important to map and explain different types of

regional interest representation on behalf of the Flemish reg ion. Interestingly, these policy fields overlap with

a federal Belgian field of competence, intellectual property. Since such rules very of ten also form part and

parcel of so-called free trade agreements, the search for an optima I representation of academic and

industrial intellectual property owners on the international level is of great importance.

In the area of the services industry, many trade agreements are concerned with regulations on market access

that are very different from tariff or other trade barriers in trade in goods. Since Flanders is a highly

competitive reg ion in the area of services such as logistics, or maritime services, it has important interests to

defend in international negotiations conducted by the EU. But it is not the only EU reg ion in this situation.

Regions in other EU member states face similar challenges even if the distribution of competences with their

national authorities may be different. A systematic comparison of the ways in which these different regions

defend their interests in these different policy fields will yield a solid empirical and theoretica I basis to

formulate suggestions for improvements in the future.

As has been indicated above, the question of regional impact on the EU's external policy fields wiJl be

approached on the basis of a principal-agent model. The idea is there that as the EU negotiates

internationallyon these issues, the relationship between the EU-negotiator and the EU member states can be

characterised as one between an EU agent and a range of EU principals. As principal, a member states faces

so-called agency losses. These refer to the reduction in the ability to exactly determine what the agent does in

the international negotiations. Principals try of course, to minimise this reduction in ability. They do so by

controlling and sanctioning the agent. The setting of amandate, the definition of negotiating directives, and

the close observation of the agent through committees such as the Trade Policy Committee are part of the

controlling. The refusal to approve an agreement that the agent has negotiated is the ultimate sanction. The

problem that the principals face is however one of information asymmetry. They are not as closely involved in

international negotiations as the agent is. And as such, whenever concessions are made that they dislike, they

have to make a calculated guess whether this was due to a cheating agent (an agent that paid attention to its

own interests rather than those of its principals) or to factors beyond the agent's control. Wh en agents

disclaim responsibility and argue that external pressures were detrimental to negotiations is this really the

case? In case the principals reject an agreement that was indeed the best the EU could get, they will not get a

better outcome by doing this, and will bear the reputational cost of having jeopardised an internally

negotiated agreement. In case they accept an agreement that could have been improved, the outcome will be

worse than would have been the case wh en information asymmetries would have been smaller.

In international negotiations conducted by the EU, the member states as principals thus face agency losses.

That is, the priee they are prepared to pay in order to allow the EU as a whole to make maximum use of the

joint market power of its member states - the priee of speaking with one voice. What these member states try

to do th en is limit these losses. They have the tools to do so, given their rights as members of the EU Council,

and in case of shared competencies, the direct involvement of their domestie politica I systems in the ratifieation

of the agreements. Given these tools, it is a matter of reducing the information asymmetries in order to know

how and when to activate these tools.

For regional authorities, this is more challenging because the probability of agency losses is higher. Their co

decision rights in the EU are of ten (but not always) weaker. Their ability to express a position (and thus to

push the agent) depends on the agreement of other regions (either in their own member state or, when we

refer to the Committee of the Regions, in other member states), and/or their national (federal) government. In

the Belgian case for instance, a veto expressed by a reg ion in the Belgian co-ordination system, results in an

abstention of Belgium in the EU Council in case the other Belgian players don't follow.

Their participatory rights may be weaker as weil. Are they able to directly participate in the EU Council?

Given the Belgian rotation system, the answer may be 'yes' at partieular moments and 'no' at others. Are they

involved in the EU committees that assist and control the EU agent, especially in-between ministerial sessions or

conferences? Are they involved in the informal networks through whieh agent and principals tend to interact in

international negotiations? Are they involved in the informal networks between the EU member states and the

EU's external negotiating partners? That may depend on them being their country's delegation leader in the

Council, and/or their involvement in their country's permanent representations with international organisations

or embassies with individual countries with whom the EU negotiates. Each negative answer on each of these

questions increases the probability that information asymmetries between a region and an EU agent will be

high, and each negative answer thus undermines a region's ability to fully defend its own interests.

Given the challenges that regions as potential principals face, our research design focuses on the question of

information asymmetries, the efforts of regions to reduce such asymmetries, and the factors that influence both

their ability and propensity to do so. Indeed, efforts to reduce an information asymmetry are never cost-free.

There is an opportunity cost related to them. Sometimes, these costs may be prohibitive. Sometimes, it is the

cost-benefit ratio that is too negative.

Principal-agent theory looks at two strategies that principals follow to reduce the information asymmetries

they potentially face: police-patrol and fire-alarm deviees (Pollack, 2003). In the first case, principals closely

follow the agent, scrutinising their activities, and assessing whether efforts should be made to rein in the agent.

In the case of EU extern a I policy fields, regions' decisions to maximise their use of the forma I channels, like the

Council, like the Trade Poliey Committee, like the Committee of the Regions, like their domestie co-ordination

systems, reflect such a police-patrol approach.

A fire-alarm approach leaves the investment in information asymmetry reduction to others. In the literature,

interest groups or civil society are of ten seen as these "others". Because of their direct interests, interest groups

are expected to closely follow what the agent is doing with the issue at stake to them. If an agent's actions

become problematic, such groups are expected to alarm the agent's principals as these are directly able to

rein him in. At that point, the principals will become active, based on the information they get from such

groups. The benefit of such an approach is its relatively low cost for the principals, something which may be

attractive for regions with a rapidly widening scope of issues that they need to follow up. Given the changes

in the lisbon Treaty and the growing role of the EU in international negotiations of concern to a region like

Flanders, using a fire-alarm approach may be attractive. Such fire-alarm procedures exist in the area of

trade in goods, as in antidumping cases, interest groups can highlight to the Commission, the member states, or

even the European Court of Justice, that they think their trading opportunities are unduly harmed by a

proposal to impose anti dumping duties (De Bièvre and Eckhardt 2011). However, the cost of a fire alarm

approach is that a principal depends on the willingness of others to invest in the issues, something that is more

problematic in the services sector than in the manufacturing sector (De Bièvre and Eckhardt 2011). In addition,

what interest groups perceive as problematic is biased. Thus, the reduction in information asymmetry brought

about by such groups is of ten biased as weil (Milner, 1997). It is weil established in the literature that the

manufacturing sector is far better organised in its sector trade associations than the services sector. Several

reasons beyond the control of policy makers as weil as sector firms may weil account for this difference in

capacity to mobilise politically to inform policy makers, in case regional Flemish policy makers, of vital

interests to be defended at the international level. Policy deliverable 6 therefore develops a strategy to

assess this lower degree of service interest group mobilisation in Flanders, and - in congruence with the

economists' analysis of Flemish service industry's comparative advantages - will propose ways to alleviate this

structural disadvantage.

A region's effective strategy to reduce information asymmetries may thus consist of a mixture of police-patrol

and fire-alarm approaches. And the effectiveness of that mixture may vary across policy fields, given the

already mentioned distribution of competences in each of these fields, both in the EU and in the region's

member state. Our research design makes maximum use of this variation.


To attain this aim, the research project will proceed along a similar track as Research Activity 1 'Explaining

Variation of Regional Authorities' Influence in EU Legislation'. The project will be able to draw on

comprehensive datasets in order to proceed to a controlled comparison of selected cases in a second phase

of the research project. The data we will rely on consists of a dataset of (1) all regional interest

representations in the EU (Verboven 2011; Verboven, Beyers and Roeien 2011), (2) all interest groups active

in Flanders and Belgium, based on National Bank of Belgium data (Frausen and Beyers), and (3) all interest

groups active on EU policy making (INTEREURO-database).

The first dataset on all regional interest representations in the EU will allow us to select cases of regions that

have similar and/or comparable legislative competencies in areas of EU external policy and have similar

and/or comparable policy preferences. It is therefore likely, but by no means fixed as yet, that we will be

analysing and comparing regional representation across different policy fields in regions such as North-Rhine

Westphalia or Baden-Württemberg, Hamburg or Bremen, Veneto, Catalonia, or Rhone-Alpes. The second and

third dataset will allow us to map and explain patterns of interest group involvement in 'police patrol'

monitoring and influencing of EU policy fields (through participation in meetings) as weil as 'fire alarm'

monitoring and influencing of those fields, i.e. by activating mechanisms of consultation whenever vital interests

of certain economic sectors are touched upon in EU extern a I policy making.

The main difference between internal and external EU poliey making lies in the fact that the former can be

studied best by looking at EU legislation, while extern a I policies consist of the monitoring and influencing of

international negotiations in a bilateral or regional setting, or within the framework of firmly established

international organisations. Af ter the comprehensive mapping of both regional representations' approach to

monitoring and influencing of EU external policies, as weil as of Flemish and Belgian interest groups

involvement in monitoring and influencing EU extern a I policies, the second phase of the research project will

consist of a controlled comparison of regional representation by Flanders and three other selected regions

with legislative capacity in the six policy fields of trade in goods, trade in serviees, investment, intellectual

property protection, environment, and competition poliey.

The aim of this PhD research project therefore is to compare a set of four important regional entities, find out

through whieh venues they seek to influence EU policy making, account for variation across regions and poliey

fields, identify lacunae in the representation and interest defence by Flanders and identify best practiees, and

draw up systematie suggestions for the improvement of this interest representation.

VI. Valorisation

The academie valorisation will consist in the first place of a PhD. Derived from this, the PhD student and the

promoters will submit several artieles to peer reviewed journals and books. In addition all involved staff will

present results during international conferences (ECPR, EUSA, APSA, UACES, and so on). As for the policy

adviee part goal of this study, our target audience will be the Department Internationaal Vlaanderen and

Flanders Investment & Trade, as weil as sector specifie interest organisations in the different policy fields

analysed. More specifieally, we plan the two following policy deliverables, explicitly derived from the call, to

be delivered by the PhD researcher and the promoters: a study on the impact of EU external policies upon

Flemish foreign policy opportunities, and a study on the organisation of serviee sector interest groups. Both

policy deliverables will result in a report and the organisation of a training workshop to bring together

academies and practitioners. These workshops will be organised by the Keerbergen-based public affairs

consultancy firm Prospex, specialised in the training of public officials (Iike at the OECD) to bring together

people with specialised, technieal knowiedge, and make it useable for policy practitioners and international

negotiators (www.prospex.com).

Policy Deliverable3: Impact of EU External Policies upon Flemish Foreign Policy Opportunities

This research activity will deal with the third research question mentioned in the cluster 'European Union' (call

p. 34). 'Wat is de impact van de ontwikkelingen inzake het Europees Gemeenschappeliik Buitenlands en

Veiligheidsbeleid op het Vlaams buitenlands beleid, zowel op institutioneel als beleidsmatig vlak.' The PhD track

research will therefore be designed to gradually, systematieally analyse Flemish regional representation in EU

external poliey fields, but also to come to an overview of all the extern a I policy fields of the European Union

and an assessment of their relative importance for Flemish governmental authorities and Flemish firms active

on the international market. This policy deliverable will therefore focus on the following aspects of the EU's

external policies. First, we will identjfy the impact of the EU's external trade poliey (its common commercial

policy) in trade in goods. Here it will be important to assess the impact of changes to the tariff structure due

to changes in applied (as compared to WTO bound) ta riffs, EU trade partners' antidumping practiees, and

the effects of EU Free Trade Agreements with third countries, as weil as those that are under negotiation by

the European Union (the latter two in close co-operation with Leuven economist Jan van Hove and his economie

analysis of PTAs). Second, we will identify the impact of the EU's trade poliey in the area of trade in serviees.

Given the importance of the serviee sector for the Flemish economy (insurance, banking, law firms, logisties,

etc.), it is crucial to map Flemish defensive and offensive interests in this area. Third, as since the Lisbon Treaty

the EU has the competency to negotiate bilateral investment treaties it will be important to map the constraints

and opportunities, the continuing legal force of existing bilateral investment treaties, as weil as the new ones

associated with new bilateral investment treaties the European Commission may be negotiating with third

countries. Fourth, we will explore the implications of the EU's new patent legislation on the international level,

especially under the Conventions administered by WIPO.

These five goals will be attainable through collaboration with the pillar 'International Entrepreneurship j Internationaal Ondernemen' of this application, the use of the database elaborated within ACiM in the ESF

INTEREURO project (Beyers, De Bièvre, Kerremans), as weil as the World Trade Institute in Bern (Ass. Prof.

Manfred Elsig and postdoctoral researcher Dr. Jappe Eckhardt)

Policy Deliverable 4: Service Sector Interest Groups

This research activity will analyse the problem identified on page 36 of the call: 'Waarom is de dienstensector veel minder goed georganiseerd in federaties en koepels vergeleken met de industriële sector? Wie kan de belangen van de dienstensector(en) verdedigen en communiceren? Hoe kan de Vlaamse overheid (DiV) de dienstensector(en) op een efficiënte manier bereiken en consulteren?'.

Collective action theory (Olson 1965) takes us a considerable way in explaining why diffuse and

heterogeneous interests are more difficult to mobilise than concentrated interests. In comparison to firms active

in the sector of goods production, such as manufacturing, the service sector has traditionally always been less

weil organised in the form of trade associations. Although many other factors have been identified that may

alleviate the smaller mobilisation potentialof the services sector, the fact that it is more difficult to represent

services interests poses a serious policy making challenge, as policy makers lack systematic input in order to

identify key interests of their large and economically important service provider sectors during the process of

negotiations on trade in services, investment treaties, or intellectual property rules.

This research activity will therefore rely on the comprehensive ESF INTEREURO dataset of interest groups

active in European lobbying, and their FlemishjBelgian members in order to identify all existing service sector

interest groups. This will allow regional Flemish authorities to have complete information on the existing

population of interest groups in the sector. This will then be compared to the organisation of the services

industry in other regions and countries, in order to identify best practices elsewhere, to compare it to the

manufacturing sector, and to bank on the economic comparative advantages that will be identified in the

economic analysis in the project '4.1. The internationalisation of Flemish service industries'. This systematic

information will allow to identify avenues for a more efficient flow of information between services firms and

Flemish representatives in EU committees on trade in services.

VII. Timing

Year 1 Year 2 Year 3 Year4



Mapping of regional representation in EU

external policy fields

Explaining variation

Editing dissertation and journal output


Policy Deliverable 3: Impact of EU external policies

Assessing impact of policies in 5 areas

Report - workshops - training


Policy Deliverable 2: Service sector interest groups

Data all service sector interest groups

Comparisons



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357-374

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the Doha Development Round", European Foreign Affairs Review, 9(3): 363-393

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CHAPTER 411NTERNATIONAl ENTREPRENEURSHIP

The thematie piJIar regarding international entrepreneurship consists of three long-term research projects that

wil I be developed in three doctoral research tracks. Although each doctoral track includes fundamental

research in order to guarantee the quality of the Ph.D. dissertation and in order to optimise the international

publication op ti ons, the policy context as weil as the policy implications will always be stressed. Moreover,

short-term research projects are embedded in each long-term research project whieh provides for specialised

advise to be given for any ad hoc policy-related questions that arise. Finally, as requested in the tender

(point 1), ad hoc policy advise wiJl be provided to general issues related to the effects of European external

trade policy on Flemish international entrepreneurship and its context. For the latter, the Policy Research

Centre goes beyond merely legal analysis, but aims to use the full potentialof this multidisciplinary research

consortium: multi- and interdisciplinary advise (Iegal-economie-politieal) wiJl be provided whieh is the

appropriate approach given the complex reality of international trade policy nowadays (see PhD track 2).

Generally speaking, this research pillar aims to study, from an economic, business and politieal economie

perspective, some of the main challenges and opportunities that Flemish firms face in the globalised world, in

partieular given the Flemish economy's openness to international tra de. The three long-term research projects

that wiJl be developed respectively deal with the internationalisation of serviee industries, the decisions to

export of small and medium-sized enterprises and the impact of preferential trade agreements. Each

research project includes an empirieal analysis that focus mainly on Flanders and that compares the Flemish

situation with international evidence.

Both macro-economie and miero-economie analysis wiJl be applied throughout the long-term research projects.

Including and starting from a macro-economie analysis has several advantages. First, by studying the macro

economie situation first, we get acquainted with the genera I context as weil as with any specifie and relevant

Flemish economic characteristies. Secondly, for the macro-economie analysis we can always rely on well

established methodologies in the literature. As there is already relatively accessible statistieal data, this

enables us to start up the analysis in an early stage of the Policy Research Centre. Finally, knowing the

macro-economie situation enables us to put the miero-economie analysis in the right context.

Nevertheless, the main focus of all three long-term research projects is on miero-economic analysis and evidence. A similar approach is followed for each research project, i.e. the analysis of firm-Ievel dataB.

Studying firm-Ievel evidence has several advantages. First, it allows us to get a better insight into dynamies at

the firm-Ievel. Contrary to macro-economie or even sector-level studies, a more detailed approach helps to

understand how individual (Flemish) firms are dealing with the challenges and opportunities of globalisation.

From previous evidence we know that firm-Ievel characteristies, strategies and performance are

heterogeneous. Neglecting this heterogeneity would lead to wrong conclusions and recommendations.

Secondly, by opting for this firm-Ievel approach, we follow the international literature. Hence it strengthens

the academie quality leading to better publication opportunities. Finally, a firm-Ievel analysis can be

translated into more precise and more direct adviee to Flemish companies, strengthening them on the

international markets.

A substantial research consortium will take care of this research pillar. The consortium consists of researchers

from VIeriek Leuven Gent Management School, the Centre for Economie Studies (CES) as weil as the Research

Unit Managerial Economies, Strategy and Innovation (MSI) of the Faculty of Business and Economies of

Katholieke Universiteit Leuven, the Institute for International and European Poliey (liEP) of the Faculty of Social

Sciences of Katholieke Universiteit Leuven and the Centre for Research on Economie Markets and their

Environments (CREME - Research Group Globalization, Innovation and Competition (GIC)) of the Faculty of

8 Access to the firm-Ievel data must be granted by one of the responsible federal institutions. Contacts with the National Bank of Belgium have been established. Access to the required data is, nonetheless, dependent on the formal agreement by the National Bank of Belgium.

Economics and Management of Hogeschool-Universiteit Brussel (HUB-EHSAL vzw). The entire research pillar

will be co-ordinated by Prof. Dr. Leo Sleuwaegen and the Vlerick Leuven Gent Management School.

The remainder of this chapter will consecutively describe the three long-term research projects in more detail.

I. Project details

Promoters:

Leo Sleuwaegen (Full professor at K.U.Leuven and Vlerick Leuven Gent Management School) (research

project co-ordinator)

Rene Beiderbos (Full professor at University of Leuven and professorial fellow at Maastricht

University)

Jan Van Hove (Associate professor at Hogeschool-Universiteit Brussel (HUB-EHSAL vzw) and at

K.U.Leuven)

Research Assistant: Bursaal (100 % - active during entire period of Policy Research Centre, partly financed by

alternative, academic project - during first 2 years full-time financed by Policy Research Centre)

In addition, doctoral researcher Peter M. Smith (currently Ph.D. student at K.U.Leuven, formerly former

administrator EU Commission and former member of BEPA) will be involved in this project since his Ph.D. deals

with aspects of international services liberalisation. Both Peter Smith and the new doctoral student will be

involved in short term research in addition to the long-term doctoral research track proposed in this research

project description.

The project responds to the research issues identified in the call:

11 measuring the importance and performance of the Flemish services (sub)sector(s)

lil identifying the competitive advantagesj comparative advantages of services (aggregate and

subsectoral approach) in Flanders in an international context

11

11

lil

calculating the trade potential (challenges as weil as opportunities) for Flemish services activities in

a bilateral perspective

identifying the strategic interests of Flemish services sectors and firms in bilateral and multilateral

trade agreements related to services, taking into account both offensive and defensive interests

identifying the firm and sectoral determinants of services exports

measuring the impact of innovation and research co-operation on the internationalisation of

services

Note that the legal aspects of services liberalisation and its impact on the Flemish economy are dealt with in

Research Pillar 1.


Since Flanders is one of the economically most developed regions of the world, services are very important

for the Flemish economy. On the one hand, many high-quality services are provided in Flanders; on the other

hand, Flemish people wish to have easy access to good services and are prepared to spend a large

proportion of their income on them. The importance of services in the Flemish economy, however, strikingly

contrasts with the limited international openness of the services sector. Although services constitute a large part

of Flemish gross domestic product, they are only a small part of Flemish international trade (20-30 % of total

trade). A similar situation can be observed in many other European countries. However, because of recent

European and international liberalisation efforts (e.g., EU services directive, negotiations in the World Trade

Organisation), new markets are being opened which may create opportunities for Flemish service providers in

the near future, while more competition caused for foreign services providers becoming active on the Flemish

market can be expected.

Nevertheless, the importance of services within the entire Flemish economy is currently not (yet) reflected in the

Flemish export pattern and performance. This research project therefore aims to inventory the strengths and

weaknesses of the Flemish services sector and its subsectors in order to measure the competitive and

comparative advantages of Flemish services in a worldwide context. Based on a quantitative macro-economic

and micro-economic analysis, the export potential and export determinants of Flemish services will be

calculated. As such we will be able to detect the strategic interests for the Flemish services sectors as weil as

the problems they may have to cope with in the future.

The data collection for Flanders will be part of the research design. However, some stylised facts regarding

the international openness of services can be derived from Belgian statistics as weil as from recent studies for

Belgium (e.g., Piette and van der linden, 2009). First, Belgian services trade is very small compared to trade

in manufactured goods. Moreover, the share of services trade in total Belgian trade is rising only very slowly.

Although this is not only the case for Belgium (e.g., a similar situation can be found in The Netherlands), it

remains surprising. The underperformance in terms of international trade may either reflect fundamental

disadvantages, or alternatively, may point to a large export growth potential in the future once particular

barriers to international trade disappear (e.g., legal and regulatory barriers). Secondly, not only is the

Belgian share of services in total exports relatively low, but also the structure of that trade is unfavourable.

Compared to the average of EU-27, Belgian exports are much more directed towards traditional services as

weil as towards royalties and services between affiliated enterprises, reflecting the strength of traditional

multinationals in the Belgian economy. Traditional services are those related to trade in goods as weil as most

services provided to households such as non-business-related travelling. High value added services are

overwhelmingly concentrated in the knowledge intensive business services (KIBS) area. They cover in

particular, telecommunications, computer services, R&D and professional services. In 2009 only 27.7% of

Belgian exports of services were for high value services down from 34.7% in 2006. Among comparable

countries only Denmark relied more on exports of traditional services (overwhelmingly shipping). Finland

(35.7%), Sweden (40.4%) and particularly Ireland (72.3%) all had much higher shares of high value added

exports than Belgium. This is striking since high value added services are important within the domestic

economy. Hence it seems that the internalisation of these sectors lags behind. However, a more detailed and

in-depth analysis may reveal other and more fundamental tendencies. Thirdly, the degree of concentration of

Belgian exports of services on markets with high growth potential is also weak. Over two thirds of exports of

services are directed to other EU countries and 87% to the developed countries members of the OECD. Only

3.3% of exports are to the emerging BRIC countries. Hence it seems that Belgian services exports are mostly

oriented towards markets close to the domestic market, at least to some extend neglecting new trade

opportunities further away from home.

Hence, summarising, the data on exports of services show a number of worrying features. However, it remains

a puzzle as to why the Belgian performance of these exports remains bel ow that of most of the comparable

small open economies of north-west Europe. Moreover, evidence regarding the Flemish situation is not

available. The reason why the relatively successful development of high value added services domestically

has not led to a similar concentration among exports also calls for an explanation. Such explanations require

a far more extensive analysis of where and how Flemish enterprises in the service industries are growing. The

heterogeneous nature of services requires that the analysis will be undertaken at a far more detailed level

than is available from current macro-economic statistics. Therefore this project will aim to study the

international potentialof the Flemish services sector both from a macro-economic and micro-economic

perspective.


There are two major strands in the literature on trade in services: on the one hand, the economics literature on

international trade (for recent overviews see Francois and Hoekman (2009) and Lejour and Smith (2008))

and, on the other hand, the management literature on international business. A number of important issues

regarding trade in services has been identified and studied in one or both of these fields which should not be

neglected in any new study. First, the literature recognises that worldwide services liberalisation is an ongoing

process. Although the World Trade Organisation (WTO) has been dealing with it for many years, trade is

services remains more limited due to the sensitivity of services liberalisation. In order to avoid that

international liberalisation negotiations are hampered by the sensitivity of particular services activities, a

distinction is made between different 'modes'. Liberalisation negotiations proceed by commitments by

members of the WTO within each mode, either for specific services sectors or horizontally across all sectors.

The following modes can be distinguished:

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Mode 7 - cross-border trade: when suppliers of services in one country supply services to consumers in

another country without either supplier or consumer moving into the territory of the other;

Mode 2 - consumption abroad: process by which a consumer resident in one country moves to another

country to obtain a service;

Mode 3 - commercial presence: enterprises in an economy supply services internationally through the

activities of their foreign affiliates abroad;

Mode 4 - movement of natural persons: process by which an individual moves to the country of the

consumer in order to provide a service.

This imp lies that any country or reg ion should decide about the modes, the sectors and the extent of

liberalisation one is willing to liberalise or one is looking for concessions from other WTO members. In order to

make these decisions, an economic impact assessment is indispensable. Secondly, as pointed out by Francois

and Hoekman (2009), technological change stimulates international tra de in services since, for many services

activities, it is no longer necessary to supply the service at the same place where it is consumed. However,

services provision of ten has an element of "jointness in production" which requires complementary inputs for an

effective provision of services abroad. Consequently, as also reflected in the different modes, studying trade

in services cannot neglect the interaction with foreign (direct) investment related to the services activities,

similar to issues addressed by the literature on horizontal versus vertical foreign direct investments by goods

producing firms. Thirdly, many studies look into the impact of regulatory barriers on trade in services.

Contrary to trade in goods, trade is services is particularly hampered by individual countries' rules,

legislations, etc. Francois and Hoekman (2009) provide a very interesting typology of policies affecting

foreign services transactions (see Figure 5).

Figure 5: A Typology of Policies Affecting Foreign Services Transactions

I n Impact on Impact on operations entry/establishment

E.g., A E.g., all retail banks required

A. Non discriminatory A limit of three mobile to maintain a minimum phone providers pennitted level of capital, to operate in the country independent of type of

legal entity E.g.,

E.g., nationality quotas for foreign insuranee firms managers of afiUiates; not permitted to offer

B Discriminatory minimum equity stake certain types of coverage required for national or product innovations; investors; economie needs tests price controls

Source: Francois and Hoekman (2009)

Within this typology a distinction is made between the (non-)discriminatory nature of the regulations and the

impact on either entry / establishment or on operations. Finally, one should not neglect the interaction between

trade in services and trade in goods. Services may be complementary to the goods exported. Hence trade in

goods may stimulate trade in services. Comparatively, services may facilitate trade in goods (e.g., processing,

transport, logistics etc.).

Both macro-economic and micro-economic studies have dealt with trade liberalisation and trade in services.

The lack of good quality data on trade in services as weil as on regulatory barriers causes challenges to

research about the impact of services liberalisation and trade in services. Nevertheless, thanks to the recent

improvement of macro-economic databases as weil as to the recent disclosure of firm-Ievel databases in

several countries, many new studies have been published in recent years. At the macro side, gravity equations

have been applied to study the determinants of services by Ceglowski (2006) and Kimura and Lee (2006),

Walsh (2006) and implicitly by Piette and van der Linden (2009). Recent studies also use micro-level data to

study trade in services. For instance, Li, Whalley and Chen (2010), Fillat-Castejón et al. (2008) and Christen

and Francois (2009) study whether local presence benefits trade in services. Other studies use large micro

level databases include Jensen and Kletzer (2005), Breinlich and Criscuoio (2008) and Gaulier et al. (2010).

An alternative view on the issue of forms of internationalisation appropriate to goods or services on the basis

of tasks is provided by two recent papers using micro-data sets by Oldenski (2009) and by Ariu and Mion

(2010). Blomstermo et al. (2006) study foreign market entry mode, which is a particularly important subject

for service firms, using a sample of 140 Swedish professional service firms following 71 qualitative interviews

with managers in internationally active services firms. In order to test for the difference in entry mode

between service sectors, the authors make a distinction between hard and soft services. Hard services are

those for which production and consumption can be decoupled, such as software. Soft services decoupling is

not possible and the service provider must be physically present near the user. In turn, entry can take the form

of a high control mode such as a wholly owned subsidiary or a low control mode such as licensing or direct

exporting. They find that managers in soft services are much more likely to choose a high control entry mode

than those for hard services. They further find that the fundamental process of internationalisation and foreign

market entry mode is similar to that of manufacturing industry for hard services, but that there are some

unique aspects for soft services. A limitation of the study is that the sample consists of professional service firms

with relatively high knowledge content. Such services are of course provided to other businesses. The results

may therefore not be extrapolated to services with a lower knowledge content to services provided to

consumers.

The micro-economic studies, although substantially different in terms of the methodological approach, are

related to the international business literature that stresses the strategic aspects of cross-border trade in

services (for an overview see Van Looy et al. (2003)). Välikangas and Lehtinen (1994) distinguish between

three types of services and their appropriate international strategies. The first is 'standardisation'. The service

is provided in the same manner to each cu stomer. Such services can also be considered "industrialised" wh en

they are provided according to highly routinized procedures with little initiative possible on the part of either

the provider or the cu stomer. Budget hotels, fast food restaurants and standardised software are considered

by the authors as standardised services. Low cost and predictability are key qualities associated with these

services in the eyes of the cu stomer. We should also consider the possibility of breaking down a service into a

number of discrete tasks, some but not of all which may be subject to standardisation. Where customer

interaction is present, standardised services wil! be provided through a wide network of service units, of ten

established through licensing or franchising.

The second type of strategy examined is that of specialisation. It is limited in scope by the amount of ski lied

resources available for a firm. Such a service will usually be targeted at a narrow market segment and take

advantage of some unique competence or competences of the service provider. Clearly, specialisation implies

a high degree of differentiation. Many professional service firms in fields such as consuiting or auditing follow

a specialisation strategy. Establishment of local subsidiaries or partnerships are typical forms of

internationalisation in order to keep control over specialised knowledge and maintain quality. Where the

service is sufficiently specialised, provision through a firm's staff travelling abroad mayalso be a feasible

form of internationalisation. Finally customisation can represent a viabie strategy where each customer or

each project is unique. Advertising campaigns are an example. In these cases, sending staff abroad

represents the dominant form of internationalisation although when sufficient business is generated local

subsidiaries or regional centres will also be established.

Although the research on trade in services is expanding, many research questions remain unanswered. Javalgi

and White (2002) pointed to the need to develop testable empirical frameworks taking into account the

specific characteristics of services activities. Until now such framework is still missing. In this research project we

will attempt to fill this gap by combining the macro- and micro-perspective on international tra de in services

as weil as by providing new evidence for the Flemish economy.


From a research point of view this research project aims to measure the importance of and evolution in the

Flemish services sector and its subsectors. Many macro-economic characteristics will be studied including value

added, employment, wages, trade, investments, innovation etc. Apart from a getting a better insight into the

structural characteristics of services in Flanders, this data collection also enables us to calculate the competitive

and comparative advantages of Flemish services in an international context.

Next, this project aims to calculate the trade potential (challenges as weil as opportunities) for Flemish service

firms as a result of recent and ongoing European and international liberalisation From both the macro-

perspective (which subsectors will gain/loose? On which markets will Flanders gain/loose?) and the micro

perspective (which kind of firms will benefit from/ loose from international services liberalisation?).

As such, this research project combines the overall dimension with a very detailed, firm-Ievel analysis that

incorporates potential heterogeneity among services subsectors as weil as services firms. A good

understanding of the heterogeneity should result in a better assessment of the potentialof firms to participate

in international services markets.

To the extent possible, this analysis will pay attention to the specific characteristics of international

agreements (e.g., services-related issues in preferential trade agreements -see e.g., Park and Park, 2011),

regulatory barriers (e.g., kind of barriers to services trade)) and trading partners (e.g., specific regulations

applicable). For such detailed analysis we will undoubtedly benefit from the multidisciplinary nature of this

research consortium as weil as from the extensive expertise within the Leuven Cent re for Global Governance

Studies.


This research project consists of a literature review, an extensive mapping of services activities, macro

economic and micro-economic research as weil as policy recommendations.

In the literature review we will provide an detailed overview on the previous evidence regarding services

liberalisation and trade in services. Such overview is in particular useful to compare our later Flemish evidence

with the international context.

Since services activities are very diverse and since existing databases do not cover the full spectrum of

economic characteristics, a new database will be developed that brings together relevant existing data on

services in Flanders as weil as international regulatory barriers to tra de. For the latter we can rely of the

expertise within this research consortium as weil as on previous data collection and expertise within the Leuven

Cent re for Global Governance Studies. Such exercise allows to study evolutions in Flemish services as weil as

differences across various services sectors. Based on this data, the competitive and comparative advantages

of Flemish services will be calculated. Finally, the database will also be used in the macro- and micro-part of

the analysis.

The macro-economic part of the analysis will study the impact of different kinds of regulatory barriers on the

Flemish bilateral trade in services, controlling for a number of trading partners' characteristics. To this end an

augmented gravity model will be developed, based on previous similar studies, but adapted to the specific

Flemish context. Both total and sectoral trade will be studied, given the specific and various characteristics of

services activities.

The micro-economic part will turn to a firm-Ievel analysis, similar to the two other research projects within this

research pillar, which will include a number of aspects. First, the determinants of firm-Ievel trade in services

will be studied. Secondly, the potentialof existing and new export destinations will be calculated taking into

account the specific Flemish competences as weil as the growth potentialof foreign markets. Thirdly, the

impact barriers to trade, in particular of regulatory barriers to trade, will be studied.

In proposing this methodology the willingness of the National Bank of Belgium to provide us with the essential

data has been verified.

VI. Valorisation

The project's results wil! become available in a set of working papers that will be submitted to leading

international journals in the field of international business. They wil! also be part of a doctoral dissertation

project currently who wil! work on the project.

The result wil! also be presented in several workshops organised at the K.U.Leuven, Hogeschool-Universiteit

Brussel and other universities in Flanders and abroad, including the universities and business schools with which

the research groups is currently working (IESE, Barcelona, Bocconi, Milan, Queens University, Charlotte, USA,

Sorbonne-Panthéon, Paris, Erasmus University, Rotterdam). The intention is to present the results in specialised

international conferences organised by the Academy of International Business and the European International

Business Academy.

Specific workshops related to policy issues will be organised in collaboration with the administration of the

Flemish community, FIT, SERV and Flemish Foreign Affairs Council and supranational organisations, including

the EU and OECD.

VII. Timing

Long term PhD research: Assistanf N.N. in coon with Drs. Peter Smith

Research activity 1 Liferature review Collecting and Preparing the data Deve/opment of indicators reflecting Flanders international competitive and comparative advantages

LJUIUU'I' database + research Research activity 2 Macro-level econometric ana/ysis: macro-study abouf the trade challenges and opportunifies, based on gravity approach

research + int. conferences Research activity 3 Micro-level econometric ana/ysis: firm-Ievel and sectoral determinants of Flemish services exports

Output research paper & workshop & policy

Research activity 1 Database and monitoring instrument on the importance and performance of Flemish services

rnCllun.rnn in an international context Research activity 2 Answer to ad hoc


Ariu, A. and Mion, G. (2010), Trade in Services: IT and Task Content, Working Paper Series 200, National Bank of Belgium.

Blomstermo, A., Sharma, D. and Sallis, J. (2006), Choice of foreign market entry mode in service firms. International Marketing Review, 23(2), pp. 211-229.

Breinlich, H. and Criscuoio, C. (2008), Service Traders in the UK. Centre for Economic Performance, LSE, CEP Discussion Papers 0681.

Ceglowski J. (2006), Does Gravity Matter in a Service Economy?, Review of World Economics, 142(2), pp. 307-329.

Christen, E. and Francois, J. (2010), Modes of Delivery in Services C.E.P.R. Discussion Papers, CEPR Discussion Papers no. 7912.

Fillat-Castejon, c., Francois, J.and Wörz, J. (2008), Cross-border Trade and FDI in Services, CEPR Discussion Papers no.7074.

Francois, J. and Hoekman, B. (2010), Services Trade and Policy, Journalof Economic literature, 48(3), pp. 642-692.

Gaulier, G., Mil et, E. and Mirza, D.(2010), Les Firmes françaises dans Ie Commerce de Service, CEPII Working Papers no. 2010-28.

Javalgi, R.G. and White, D. (2002), Strategic challenges for the marketing of services internationally. International Marketing Review, 19(6).

Jensen, J. and Kletzer, L.G. (2005), Tradable Services: Understanding the Scope and Impact of Services Offshoring, Brookings Trade Forum, pp. 75-133.

Kimura, F. and Lee, H. (2006), The Gravity Equation in International Trade in Services, Review of World Economics, 142( 1 ), pp. 92- 121.

Lejour, A. M., & Smith, P. M. (2008), International Trade in Services-Editorial Introduction, Journalof Industry, Competition & Trade, 8(3/4), pp. 169-180.

li, c., Whalley, J. and Chen, Y. (2010), Foreign Affiliate Sales and Trade in Both Goods and Services, NBER Working Paper Series no. 16273.

Oldenski, L. (2009, June), Export versus FDI: A Task-Based Framework for Comparing Manufacturing and Services, mimeo.

Park, I. and Park, S.(2011), Regional liberalisation of Trade in Services, The World Economy, 34 (5), pp.725-740.

Piette, C. and Van der linden, J. (2009), De economische gevolgen van de Dienstenrichtlijn in België: een verkenning, working paper, National Bank of Belgium.

Välikangas, L. and Lehtinen, U. (1994), Strategic Types of Services and International Marketing. International Journalof Service Industry Management, 5(2).

Van Looy, B., Gemmei P. and Van Dierdonek, R. (2003), Services Management: An Integrated Approach,

Financial Times/ Prentice Hall.

Walsh, K. (2006), Trade in Services: Does Gravity Hold? A Gravity Model Approach to Estimating Barriers to

Services Trade, The Institute for International Integration Studies, Trinity College Dublin •

/;: j; 'i: '<:~~i·

. -J: ':~: (> Vl f:} 1.-;. ~. ~~);

I. Project details

Supervisors:

Leo Sleuwaegen (Full professor at K.U.Leuven and Vlerick Leuven Gent Management School)

(research project co-ordinator)

Rene Beiderbos (Full professor at University of Leuven and professorial fellow at Maastricht

University)

Kristien Coucke (Assistant Professor at Hogeschool-Universiteit Brussel and Affiliated Researcher at the

Research Group Managerial Economics, Strategy and Innovation (MSI) of the K.U.Leuven)

Research Assistant: N.N. - to be appointed (bursaal 100% - Ph.D. Student - 4 years)


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Measurement of the number of exporting SMEs (and other firms) in Flanders and its evolution.

Development of a monitoring instrument taking account of the restrictions imposed by the National

Bank of Belgium

What determines the decision to start exporting? How to increase the number of exporting SM Es?

(in line with the Pact 2020 ambitions)

Policy recommendations and proposals for reform


There is a striking consistency in the empirica I findings about the internationalisation of firms across countries:

firms involved in international activities are few in number, bigger and more productive than other firms. Only

a small number of firms account for the bulk of aggregate exports and foreign direct investment in the

investigated countries. For Belgium, it was estimated that the top ten per cent of all exporters accounted for

84 per cent of all exports of produets in 2003 (Mayer and Ottaviano, 2007; Muûls and Pisu, 2007). The

reason for this strong concentration is because international competition triggers aselection process where

only the more innovative and productive firms are able to grow across borders (e.g., Beiderbos et al., 2009a;

2009b, Colantone and Sleuwaegen, 2010). An increasing number of firms also participate in international

networks and sou ree produets and services from abroad. This is of ten followed by re-export af ter some

processing of the produets took place (see Coucke and Sleuwaegen, 2008; Onkelinx and Sleuwaegen, 2010).

Despite the strong concentration of large exporters, Mayer and Ottaviano (2007) show that the number of

exporting firms, the so-called extensive margin, is more important than the increase in the exports sales per

firm, the so-called intensive margin for explaining increases in the aggregate value of exports for a set of

countries. Moreover, given the superior performance of firms participating in international markets (for

instance in terms of employment growth - see Beiderbos and Wynen, 2010), a large number of those firms

would also raise productivity, GOP and wages of these countries more than proportionally. Hence, they seek

policies geared towards increasing the number of exporting firms instead of promoting established exporters.

The same findings apparently do not hold for the U.S., where Bernard's research shows that over any five

year period in the last two decades, 80 per cent of the growth in U.S. exports came from existing exporters.

In a recent study for Belgium it was determined that continuing exporters, especially large firms, generated

more exports than the total net export growth over the period 1998-2005 (Onkelinx and Sleuwaegen,

201 0). The loss of exports by firms that stopped exporting over the same period was larger than the

contribution of new exports made by new exporters (see Table 1). While these figures go in the same

direction as the US findings, one should not overlook the fact that new exporting firms, especially small and

medium sized firms that have started exporting, contributed the most to the creation of new employment (see

Table 2). Large firms that continued or stopped exporting laid off a substantial number of employees. The

foregoing findings suggest that there is substantial heterogeneity among exporters and that firms starting to

export are dynamie young companies that seek extra growth opportunities for exploiting their competitive

advantages. The proposed research should verify these conjectures for Flemish exporters, examine in detail

their contribution to the Flemish economy, and explain the determinants of their decision to start exporting,

including the effects of export promoting poliey measures.

Export growth total ~ ~ large ~SME

continue export 37,915 25,411 12,504

stop export -16,753 -5,331 -11,422

start export 13,378 3,952 9,427

Total 34,540 24,031 10,509

rab/e ,: Export growth Belgian SMEs and large firms, 1998-2005 (€ mil/ion)

SME

Employment growth total ~ ~ large ~SME

continue export -3,217 -38,817 35,600

stop export -116,185 -49,498 -66,688

start export 96,893 23,440 73,453

Total -22,509 -64,875 42,365

rab/e 2: Employment growth Belgian SMEs and large firms, 1998-2005 (Full Time Equivalents)


The determinants of export behaviour have been studied in the manufacturing sector of selected countries.

Evidence is available, for example, for Belgium and Flanders (Muûls and Pisu, 2007; Beiderbos et al., 2009a;

2009b; Abraham and Van Hove, 2010), Germany (e.g., Arndt et al. 2008, Engelmann and Fuchs 2008,

Roper and Love, 2002; Wagner, 2001 and 2008), the United Kingdom (Bleaney and Wakelin, 1999; Roper

and Love, 2002; Wakelin, 1998), the United States (Bernard and Jensen, 1999), Ireland (Roper et al., 2006),

Italy (Sterlacchini, 2001) and for some developing countries including Indonesia (van Dijk, 2002) and the

Philippines (Dueiias-Caparas, 2007).

Common to these studies is the finding that innovation, human capital, size and productivity show up as

important determinants of export performance. Large firms have indeed more opportunities to raise financing

and have more resources to overcome the entry barriers in foreign markets. Recent studies also show that

financially constrained firms are less likely to export being unable to cover the additional costs related to

exporting (e.g., Arndt et al., 2008; Bellone et al., 2008).

Because of astrong selection process, only productive firms are able to survive and grow in foreign markets

(formally shown by Melitz, 2003). A wide range of empirica I studies recognise the existence of productivity

differences between exporting and non-exporting firms for the manufacturing sector (see Wagner, 2007 for

a survey). Also for the business services sector, recent evidence shows higher productivity for exporting firms

than for non-exporting firms (e.g., Vogel, 2009). In addition to the above mentioned determinants ownership

also shows up as an important determinant of a firm's export potentia!. Belonging to a holding or

multinational group enable firms to take advantage of group resources and to exploit synergies in marketing

or distribution (Roper et al., 2006; Engelmann and Fuchs, 2008).

In spite of the above identjfied determinants Wagner (1995, 2003, 2008) demonstrates that th ere still

remains a lot of unobserved heterogeneity in the decision to export and the export performance of firms. This

unexplained variation across firms suggests the importance of idiosyncratic elements related to competitive

strategies and organisation of (exporting) firms. Unfortunately, few studies have investigated the nature of

these characteristics (see e.g., Onkelinx and Sleuwaegen, 2011).

The proposed project wil! build on recent insights and analyse how firm-specific determinants are related to

the internationalisation strategy of firms, in which timing and scope of internationalisation play a decisive role.

The research wil! start from the paradigm that the decision to start exporting is part of an (explicit or implicit)

internationalisation strategy, which itself is part of the competitive strategy adopted by the firm. The

competitive strategy indeed confronts the decision-maker with a set of questions related to the geography of

operations by the firm: What is the relevant geographic market of doing business? Local, regional or global?

Where are the competitors located? How will internationalisation contribute to the chosen competitive strategy

chosen by the firm (differentiation, cost leadership, focus)? What is best timing for expanding abroad? With

respect to the latter dimension, SMEs can also opt for early or late internationalisation in their life cycle. As a

result of the timing and scope of decisions, different internationalisation strategies can be identjfied: new firms

that start exporting soon af ter inception (international new ventures) and incumbent firms that start exporting

af ter a substantial number of years of purely domestic growth (late internationalisers), both opting for either

simultaneous entry in multiple markets (sprinkler strategy) or entering a single market and consecutively

spreading activities over different markets in time (waterfall strategy). An increasing group of small firms, the

so-called born globals, of ten operating in global high-tech markets, are forced to internationalise shortly af ter

inception.

As an original contribution to the literature, the proposed research seeks to identify the industry and firm

specifie features related to the adoption of a partieular internationalisation strategy. By relating these

features to the chosen competitive strategy of the firm, the analysis wants to contribute to a demystifieation of

the "unobserved" factors involved in the decision to become an exporter (cf. supra). These findings would

enable policy analysts to better understand the effeetiveness of policy measures by analysing them in relation

to the competitive strategies eh os en by firms.


From a theoretieal point of view, the research aims to explain the determinants of the decision to start

exporting by SMEs and establish the link between competitive strategies and internationalisation strategies of

SMEs (cf. supra). The goal is to uncover to what extent this link can account for the heterogeneity of firms with

respect to the decision to export and to assess the impact of policy measures on the decision. So far the focus

has been on structural features of the firm, without making an explicit link to the competitive strategy.

In terms of poliey related questions, the project aims at:

11 monitoring the number and evolution of exporting SMEs (and large firms) in Flanders

11 observe and explain differences of the prevalenee of exporting SMEs across and within industries

11 explain the determinants of becoming an exporter in relation to (available and unavailable)

policy instruments

11 analyse the effeetiveness of macro- and micro policy instruments


This research project consists of a macro- as weil as micro-economic part, both of which will contain clear

policy recommendations.

In the macro-part we develop indicators that monitor the export behaviour and performance of SMEs in

Flanders. This allows policy-makers to assess the current and future performance of Flemish SMEs.

The micro-part of this research project will build on the methodology and results obtained in a recent research

project sponsored by the National Bank of Belgium (see Onkelinx and Sleuwaegen, 2010) and extend it to

the case of Flanders. Contrary to the two other research projects within this research pillar, this research

project will exclusively focus on the micro-economic, firm-Ievel analysis, since the macro-economic evidence is

well-known. In order to get access to Flemish firm-Ievel data, contacts with the National Bank of Belgium have

been established. The National Bank of Belgium expressed her willingness to co-operate and to look for

solutions to provide access to the data while safeguarding the confidentiality of the data. Such a procedure

was developed for a recent study dealing with international strategies of Belgian SMEs sponsored by the

National Bank of Belgium.

The last project measured the number of new exporting SMEs over the period 1998-2005 and classified them

according to the timing and scope of their initial export operations. With respect to the latter dimension, SMEs

with a narrow export scope (regional focus) were distinguished from the more internationally diversified firms

(global). In terms of timing, SMEs that opted for early internationalisation in their life cycle were distinguished

from firms that started exporting only af ter five years or more from the date they were first established. As a

result, four types of internationalisation strategies were identified: new firms that started exporting soon af ter

inception (international new ventures) and incumbent firms that started exporting af ter a substantial number of

years of purely domestic growth (late internationalisers), both opting for either simultaneous entry in multiple

markets (sprinkler strategy) or entering a single market and consecutively spreading activities over different

markets in time (waterfall sfrategy). The combination of scope and timing of internationalisation resulted in the

typology of internationalisation strategies presented in Figure 6.

I Born glooal

Sprinkler strategy

Born-again global

-------------------------------------------------f------------------------------------------------- -

early

Born international

Waterfall strategy

timing

Traditional internationaliser

Figure 6: Typology of Internationalisation strategies

late

The proposed research wants to extend and develop the results obtained in the NBB study by focusing on

Flemish firms and investigating the industry and firm specific factors that lead firms to adopt a particular

strategy of Figure 1. This will be done econometrically by specifying a qualitative response model (e.g.

multinomial probit) that relates the choice of one versus the other strategies to quantitative and qualitative

features related to the context and organisation of the firm or the industry to which it belongs, including the

presence of generic and specific policy measures. We propose to extend this analysis by some in-depth case

studies, focusing on the internationalisation process itself, i.e. how do firms make the decision to choose for one

particular internationalisation strategy, and how this process is influenced by the particular competitive

strategy and policy context characterising the firm.

The project will also provide a set of indicators measuring the number of Flemish firms participating in export

markets over time and the scope of their international involvement (intra-EU, extra-EU export, subdivided in

TRIAD, BRIC and other developing countries). If data allow, these indicators will be cross tabulated with

indicators about the size, age and ownership structure of the firms.

VI. Valorisation

The project's results will become available in a set of working papers that will be submitted to leading

international journals in the field of international business. They will also constitute the basis of a doctoral

dissertation project initiated by the research assistant working on the project.

The result will be presented in several workshops organised at the K.U.Leuven, Vlerick Leuven Gent

Management School, Hogeschool-Universiteit Brussel and other universities in Flanders and abroad, including

the universities and business schools with which the research groups is currently working together (IESE,

Barcelona, Bocconi, Milan, Queens University, Charlotte, USA, Sorbonne-Panthéon, Paris, Erasmus University,

Rotterdam). The intention is to present the results in specialised international conferences organised by the

Academy of International Business and the European International Business Academy.

Specific workshops related to use of the proposed indicators and related to specific policy issues will be

organised in collaboration with the administration of the Flemish community, FIT, SERV and Flemish Foreign

Affairs Council.

VII. Timing

Long term PhD research: Assistanf N.N.

1. Research activity 1 Preparing the data + Literature review

Output: chapter in dissertation

2. Research activity 2 Development of indicators related to export activities by Flemish SMEs - fol/ow-up in the future

Output: Indicators

3. Research activity 3 Determinants of becoming an exporter Econometrie analysis

Output: results presented in working paper, seminars, int. conferences

4. Research activity 4 Case studies and Policy instruments effectiveness

Output: Working paper & workshops

Dissertation (academic capacity building)

Ad hoc continuous policy support

Short term research

1. Research Activity 1 Monitoring the number of SME exporters Preparing the data

Output: Database monitoring instrument

2. Research activity 2 Evolution of SME exporters and sectoral composition

Output: research report, workshop

3. Research activity 3 Policy instruments promoting export participation.

Output: research report, workshop with administration, FIT, SERVand FFAC


Year 1 Year 2 Year 3 Year 4

Abraham, F. and Van Hove, J. (2010), Can Belgian Firms cope with the Chinese Dragon and Asian Tigers? The Export Performance of Multi-product Firms on Foreign Markets, Working Paper Research 204, National Bank

Belgium.

Arndt, C, Buch, C, and Mattes, A. (2008), Barriers to Exporting: Firm-level Evidence from Germany, Centro

Studi luca D'Agliano Development Studies Working Papers, 268.

Beiderbos, R. and J. Wynen (2010), Export, Innovatie en Werkgelegenheid., in Clarysse B., ed., Grenzeloos

Ondernemen in Vlaanderen, Roularta Books, Roeselare, Belgium, pp. 41-60.

Beiderbos, R., Van Roy, V. and Duvivier, F. (2009a), De Impact van Innovatie op de Exportintensiteit van Vlaamse Ondernemingen, in: d'Enghien, P. (EOS.), Een wetenschappelijke kijk op groei in Vlaanderen,

Steunpunt Ondernemerschap en Internationaal Ondernemen, Roularta Books, Belgium, pp. 59-90.

Beiderbos, R., Wynen, J. and Duvivier, F. (2009b), Innovation and Export Competitiveness: Empirical Evidence

from Flemish Firms, STOIO Working Paper 2009/1.

Bernard, A.B. and Jensen, J.B. (1999), Exceptional Exporter Performance: Cause, Effect, or Both? Journalof

International Economics, 47( 1), pp. 1-25.

Bellone, F, Musso, P., Nesta, L. and Schiavo, S. (2008), Financial Constraints as a Barrier t Export Participation,

Document de TravaiI, Observatoire Francais des Conjonctures Économiques, 2008-29.

Bleaney, M. and Wakelin, K. (1999), Sectoral and Firm-Specific Determinants of Export Performance:

Evidence from the United Kingdom, Centre for Research on Globalisation and labour Markets Research

Paper, 99/12.

Colantone, I. and Sleuwaegen, L. (2010), International Trade, Exit and Entry: a Cross-country and Industry

Analysis, Journalof International Business Studies, 41, pp. 1240-1257.

Coucke, K. and Sleuwaegen, L. (2008), Offshoring as a survival strategy: Evidence from firms in Belgian manufacturing, Journalof International Business Studies, 39 (8), pp. 1261-1277.

Dueiias-Caparas, M.T. (2007), Firm-level Determinants of Export Performance: Evidence from the Philippines, Philippine Journalof Development 34( 1 ).

Engelmann, S. and Fuchs, M. (2008), Bestimmungsfaktoren der Unterschied einzelbetrieblicher Exportaktivitäten in Ost- und Westdeutschland. Ifo Dresden berichtet, 2008( 1 ), pp. 21 - 32.

Mayer, T. and Ottaviano, G. (2007), Happy Few: The Internationalisation of European Firms: New Facts based on Firm-Ievel Evidence, Sciences Po.

Melitz, M.J. (2003), The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica, 71 (6), pp. 1695-1725.

Muûls, M. and Pisu, M. (2007), Imports and Exports at the level of the Firm: Evidence from Belgium, Working Paper Research 114, National Bank of Belgium.

Onkelinx, J. and Sleuwaegen, L. (2010), Internationalization Strategy and Performance of Small and Medium

Sized Enterprises, Working Paper Research 197, National Bank of Belgium.

Onkelinx J. and Sleuwaegen L. (2011), Internationalization Strategies and Performance of Small and

Medium Sized Enterprises, the case of Belgium, Review of Business and Economics, lVI (2), pp. 128-146.

Roper, S. and Love, J.H. (2002), Innovation and Export Performance: Evidence from UK and German Manufacturing Plants. Research Policy, 31, pp. 1087-1102.

Roper, S., Love, J. H., and Higon, D.A. (2006), The Determinants of Export Performance: Evidence for

Manufacturing Plants in Ireland and Northern Ireland, Scottish Journalof Political Economy, 53(5), pp. 586-

615.

Sterlacchini, A. (2001), The Determinants of Export Performance: A Firm-Level Study of Italian Manufacturing. Review of World Economics, 137(3), pp. 450-472.

Van Dijk, M. (2002), The Determinants of Export Performance in Developing Countries: the Case of Indonesian

Manufacturing. Eindhoven Centre for Innovation Studies Working Paper, 02/01.

Vogel, A. (2009), Exporter Performance in the German Business Services Sector: First Evidence from the Services Statistics Panel. Working Paper Series in Economics, Leuphana University of Lüneburg, 111.

Wagner, J. (1995), Exports, Firm Size, and Firm Dynamics. Smal! Business Economics, 7(1), pp. 29-39.

Wagner, J. (2001), A Note on Firm Size - Export Relationship. Smal! Business Economics, 17, pp. 229-237.

Wagner, J. (2003), Unobserved Firm Heterogeneity and the Size-Exports Nexus: Evidence from German Panel Data. Review of World Economics, 139( 1), pp. 161-172.

Wagner, J. (2007), Exports and Productivity: A Survey of the Evidence from Firm Level Data. The World

Economy, 30(1), pp.60-82.

Wagner, J. (2008), Exports and Firm Characteristics - First Evidence from Fractional Probit Panel Estimates.

Working Paper Series in Economics, Leuphana University of Lüneburg, 97.

Wakelin, K. (1998), Innovation and export behaviour at the firm level. Research Policy, 26, 829 - 841.

Winsted, K.F., & Patterson, P.G. (1998). Internationalization of Services: The Service Exporting Decision.

Journalof Services Marketing, 12(4), pp. 294-311.

I. Project details

Supervisors:

Jan Van Hove (Associate professor at Hogeschool-Universiteit Brussel (HUB) and at K.U.Leuven) (research project co-ordinator)

Filip Abraham (Ful! professor at K.U.Leuven)

Joep Konings (Full professor at K.U.leuven)

Bart Kerremans (Full professor at K.U.leuven)

Research Assistant: N.N. - to be appointed (bursaal 100% - Ph.D.student - 4 years)


11 developing a methodology that allows for an impact assessment of preferential trade agreements on

the Flemish economy, including at very detailed levels;

.. measuring the impact of European preferential trade agreements on Flanders at the macro- as weil as

the micro-level;

11 identifying challenges and opportunities for Flemish companies in foreign markets, both intra-EU and

extra-EU;

11 identifying strategic interests of Flemish industries and firms in preferential trade agreements;

.. putting the Flemish position in an international perspective by a comparative cross-country analysis

based on a literature review and a macro-economic analysis, which allows for learning from

international best practises;

.. formulating practical policy recommendations in order to offer support to Flemish firms to deal with

challenges and opportunities created by preferential trade agreements.


Preferential trade agreements (PTAs) are very popular nowadays, especially af ter the failure of the

multilateral trade negotiations in the Doha Development Round of the World Trade Organization. Compared

to other countries, the European Union is particularly active in establishing new preferential trade agreements,

as part of the "Global Europe" initiative (European Commission, 2006). In recent years agreements were

concluded in particular with important emerging economies including Chile, Mexico, South Africa and most

recently with South Korea. Moreover, negotiations are ongoing with many other countries including India,

Singapore, Malaysia and Canada; and trade talks with Japan are likely to start soon. Although the external

trade policy belongs to the legal competences of the European Union institutions9, these preferential trade

agreements affect European Union member states and regions within these member states. The impact is likely

to differ across countries and regions as weil as across agreements.

For that reason the impact of PTAs has been studied intensively, in particular by economists wondering what

the welfare and economic effects are of such preferential trade liberalisation efforts as weil as what impact

particular PTAs have had on countries, regions, companies and individuals. These questions are particularly

relevant to the Flemish economy because of its international openness to trade and investments. New PTAs

may create both new opportunities (e.g., better market access to non-EU markets) and new challenges (e.g.,

increased import competition in the domestic and EU market) for Flanders.

From a policy point of view as weil as from a research perspective there are several reasons why additional

and new research regarding preferential trade agreements is welcome. First, since preferential trade

agreements are not uniform but differ in terms of the path of liberalisation (speed as weil as intensity), studies

are welcome to obtain evidence about the specific impact of new PTAs. Secondly, the effects generated by

recent preferential trade agreements may differ from the well-establishing findings because new PTAs tend

to be much more sophisticated than their predecessors. In particular they include more modern trade policy

issues like (anti-}dumping, safeguards, rules of origin etc. as weil as new trade-related concerns like

intellectual property and environmental protection, which are not included in the standard welfare and impact

analysis of PTAs. Thirdly, the impact of PTAs is mostly studied at the macro-level. PTAs may, however, trigger

dynamics at the more detailed micro-level, including at the level of individual firms, sectors and products.

9 See Reichert and Jungblut (2007) for a discussion on the institutional aspects of EU external trade policy.

All these elements motivate new research regarding the impact of preferential trade agreements. Such

research should take into account the considerations mentioned. This requires new theoretica I and

methodological developments as weil as new empirica I research.


Because of their worldwide and increasing popularity preferential trade agreements (PTAs) have been

intensively studied. Most attention is paid to the impact of PT As on welfare and economic performance.

Theoretica I arguments point to ambiguous, but potentially significant welfare effects, caused by the

combination of trade creation and trade diversion effects (Viner, 1950). Positive welfare effects only occur if

the preferential tra ding partner is more efficient than the rest of the world. Trade diversion may, however,

offset any positive welfare effects. Since there is indeed empirica I evidence of trade diversion (e.g., Romalis,

2007), as weil as some evidence that PTAs lower export prices for non-members (Chang and Winters, 2002),

the overall welfare effects remain ambiguous. The literature on the welfare effe cts of PT As also takes into

account that PTAs influence the multilateral tra de liberalisation process. There exists a long debate on whether

PTAs are "stumbling blocks" or "building blocks" to multilateral trade liberalisation (e.g., Bhagwati, 1991;

Bhagwati and Krueger, 1995; Bhagwati and Panagariya, 1996; Srinivasan, 1998; Foroutan, 1998; Limao,

2006). On the one hand, countries involved in PTAs may not be willing to reach agreements at the multilateral

level. As such they hamper an efficient working of the World Trade Organisation reducing global welfare.

Recent research even talks about a "clash of liberalisations" (Karacaovali and Limao, 2008). On the other

hand, others argue that PTAs can be a step towards further multilateral liberalisation (e.g., Baldwin, 2006).

Since the popularity of PTAs cannot be explained by unambiguous welfare gains, other explanations have

been looked for. The so-called "domino theory" states that countries are likely to join existing PTAs in order to

avoid trade diversion (Baldwin, 1993; Baldwin and Venables,1995). From the literature review it is dear that

PTAs remain both economically and politically sensitive (Bond and Syropoulos, 1996; Levy, 1997; Krishna,

1998).

In particular, there is extensive evidence of the welfare effects of the PTAs the European Union is involved in,

apart from evidence of the European integration process itself (for an overview see Horn et al., 20101°). Recent studies, for example, assess the impact of the EU-South Korea PTA (e.g., Andreosso-O'Caliaghan,

2008). Even the potential impact of new PTAs has been studied (e.g., Khorana and Perdikis, 2010 for PTA

EU-India, Carrère et al., 2010 for PTA EU-ASEAN).

Policy makers are, however, not merely interested in the overall welfare effects, but also - and probably

even more - in the actual, real economic impact on domestic firms, induding the challenges and opportunities

they face in the domestic and international markets. Many studies look into these real economic effects, taking

into account PTAs' impact on trade, labour, wa ges and industrial reorganisation among other things. Two

methodological approaches can be distinguished. On the one hand, authors rely on computable genera I

equilibrium models to assess the impact of PTAs. The advantage of this approach is that it takes into accounts

the interaction effects between sectors and actors. The disadvantage is that it has huge data requirements

and that very strict assumptions have to be implemented in order to make these models "computable". On the

other hand, different partial equilibrium methodologies are applied, depending on the effects one wants to

assess. For example, in order to measure the impact on international trade (export opportunities as weil as

import competition), a popular approach are (augmented) gravity models that are able to predict the

potential trade creation and trade diversion effects of PTAs.

10 See McGuire and Lindeque (2010) for a recent discussion on the impact of European external trade policy.

The most recent tendency in the literature goes beyond such analysis at the macro-level. It turns to the micro

level where in particular the impact of PTAs on individual firms can be studied. Studying the impact of

preferential tra de liberalisation on individual firms fits into the recent literature on heterogeneous firms which

points to a large and diverse impact of trade liberalisation on firms' performance (see e.g., Abraham et al.,

2010; Abraham and Van Hove, 2010). Also for policy-makers such micro-level analysis has advantages. It

allows for more specific recommendations to the European trade negotiators in order to serve the interests of

European firms.

Several authors looked into the impact of trade liberalisation on firm-Ievel performance from a theoretica I

perspective. The seminal Melitz (2003) paper includes an assessment of the impact of tra de liberalisation on

intra-sectoral reallocations. Intra-firm dynamics resulting from trade liberalisation are modelled by Ederington

and McCalman (2007). The traditional welfare analysis is taken to the firm-Ievel literature by Baldwin and

Forslid (2010), while a regional approach has been developed by Okubo (2009). long et al. (2011)

develop a theoretica I model that shows how trade liberalisation affects innovation incentives and

consequently firm-Ievel productivity. labour market effects are studied by Egger and Kreickemeier (2009).

Despite the relatively large number of theoretica I studies looking into the impact of trade liberalisation on

firm-Ievel performance, the number of studies focusing on preferential trade liberalisation is limited. This can

be explained by the relative sophistications of current preferential trade liberalisation, going far beyond

traditional ta riff reductions. Hence there is room for new theoretica I research.

Recent trade literature of multi-product firms put forward interesting propositions regarding the impact of

tra de liberalisation (e.g., Eckel et al., 2009 and 2011; Eckel and Neary, 2010), i.e. firms producing and

exporting a variety of products instead of a single good. Agur (2010) shows that trade liberalisation triggers

firm selection and increases product variety. Hence liberalisation results in fewer firms producing and

exporting a large variety of products. As argued by Eckel and Neary (2010), many of these recent

theoretica I arguments should be further developed. In particular the firm-product-geography scope of

exports is worth intensive study (see e.g., Van Hove, 2010 and Abraham and Van Hove, 2011 for discussion

on product-level trade issues).

Empirical evidence supports the theoretica I propositions about the impact of trade liberalisation, in particular

of preferential trade liberalisation, on diverse aspects of firm-Ievel performance. Baggs (2005) studies the

impact of NAFTA on Canadian firms. Marinov et al. (2008) test the empirica I implications of the

heterogeneous firms models for French firms during the European integration process between 1993 and

2002. Bustos (2011) looks into the impact of Mercosur on Argentinian firms. However, the evidence is still

scarce and does not evaluate all the theoretica I projections that have been put forward. Moreover, as argued

before, PTAs can be very diverse in scope and details. Therefore many different PTAs, countries and issues

can be the subject of new empirical research. Analogous to the theoretica I perspective, the most interesting

research questions are related to the behaviour and performance of multi-product firms, including their

strategic reactions and the way they are affected by new preferential liberalisation initiatives.

Summarising, both new theoretica I and empirical research may lead to new insights into and a better

understanding of the impact of preferential trade liberalisation on firm-Ievel performance. This analysis

should take into account the varying characteristics as weil as the new features of PTAs. In particular the

impact of preferential trade liberalisation on the export performance of firms, including the product level and

geographical scope of this export performance, is worth studying. Since the impact of PTAs involving the

European Union may have different effects on the European Union member states and regions, it is in

particular worthwhile to study this impact for Flanders, one of the most open regions of the European Union.

Such knowledge will also enable policy-makers to advise the European negotiators on the potential impact of

new PTAs and to defend the Flemish international interests.

IV. Fundamental and appJied research questions

From a theoretica I point of view, the research aims to measure the impact of preferential trade liberalisation

on firm-, product- and sector-level dynamics. The focus is on analysing the heterogeneity among firms and

industries, similar to the approach followed in the other two research projects within this research pillar, due to

international preferential liberalisation. A better understanding of these dynamics and this heterogeneity will

contribute to a better assessment of the challenges and opportunities for firms in an international context.

The theoretica I impact assessment will be applied to Flanders in order to answer the policy-relevant questions.

As such the project aims to measure the impact of European preferential trade agreements on Flanders at the

macro- as weil as the micro-level. It also aims to identify the challenges and opportunities for Flemish

companies in foreign (intra-EU as weil as extra-EU) markets, including the most strategic interests of Flemish

firms and industries.

Finally, in order to assess the performance of the Flemish economy, a comparative analysis will be done to

compare the impact of PTAs on different countries based on a comparative literature research and macro

economic analysis. Recommendations will be formulated based on international best practises.


This research project consists of a literature review, a macro-economic and micro-economic study as weil as

policy recommendations. The literature review will map the existing evidence of the impact of preferential

trade agreements. Particular attention will be paid to the European context in order to compare our later

findings for Flanders to the international evidence as weil as to learn from best practises.

The macro-part of the analysis will assess the performance and trade potentialof the Flemish economy by

applying an augmented gravity model to Flemish bilateral trade flows. In this setting the trade enhancing or

reducing effects of PTAs can be studied in a relatively straightforward way. The findings for Flanders will be

compared to earlier findings in the literature for other countries and regions.

However, since such macro-analysis is unable to capture the potentially heterogeneous effects of PTAs on

Flemish firms, a micro-part is added to the analysis. This micro-part consists of both theoretica I and empirical

research. The theoretical part of the micro-economic research will extend the recent multi-product trade

literature by incorporating the effect of preferential trade liberalisation, distinguishing between various

features of new PT As. This theoretica I work wiJl lead to a new methodological framework to assess the impact

of preferential trade liberalisation on sector-, firm- and product-level dynamics. The main focus wiJl be on the

trade-related effects of liberalisation, including import competition effects as weil as export expansion

effects, hence both challenges and opportunities for firms.

The empirical part of the micro-economic research will assess the actual impact of European Union PTAs on the

Flemish economy. Based on projections from the theoretical part of the project, the impact of preferential

trade liberalisation on sector-, firm- and product-level dynamics wiJl be studied for Flanders. This allows us to

identify the way in which Flemish firms deal with challenges and opportunities created by PTAs, to evaluate

this firm-Ievel behaviour, to identify the ongoing dynamics at different levels and to identify the destinations

that offer the greatest market potential for Flemish exporters.

Finally, throughout this research project policy recommendations wiJl be formulated. Apart from ad hoc policy

advice initiated by the Flemish administration, the promoters plan to develop a set of advises in order to

support Flemish companies to cope with challenges caused by PTAs as weil as to benefit from new

opportunities thanks to PTAs.

VI. Valorisation

The project's results will become available in a set of working papers that wil! be submitted to leading

international journals in the field of international economics. The research wil! take place as a new doctoral

dissertation project.

The findings wil! also be presented at national and international conferences as weil as during seminar

presentations worldwide. Workshops wil! be organised during whieh related international academic research

wil! be presented. This allows us to compare our findings and approach to state-of-the-art international

research in the field. Partieular attention wil! be paid to policy insights from our research. Finally, the findings

wil! also be disseminated to poliey makers from the Flemish administration and other interested publie

institutions in order to allow them to prepare new policies and to formulate recommendations to the European

level. These specifie workshops related to policy issues may be jointly organised with other interested parties

and organisations.

VII. Timing


1 • Research activity 1

Preparing the data

Theoretical Literature review

Empirical Literature review

Output: literature review paper

2. Research activity 2

Macro-economic ana/ysis: Estimation of an augmented gravity model to assess the tradere/ated macro-economic impact of PT As on Flanders

Output: research paper, seminars, int. conferences


Development of a theoretical micro-level model that al/ows for a dynamic impact assessment of preferential trade liberalisation at the sector-, firmand product-level

Output: research paper, seminars, int. conferences


Econometrie ana/ysis: micro-economic study of the impact of European PT As on Flemish trade +Policy implieations

Output: research paper, policy workshop, int. conferences


Dissertation (academic capacity building)


Short term research


Mapping of all Europeon PT A activity: inventory of new features, po ten tial piffalls, ehallenges and opportunifies

Output: research report, research discussion forum with poliey-makers


Deve/oping a set of poliey advises in order to help Flemish companies to deal with PT As

Output: report with practical reeommendations towards poliey-makers and firms


Answering ad hoc questions from the administrafion

Output: answers


Abraham, F., Konings, J. and Slootmaekers, V. (2010), FDI Spillovers in the Chinese Manufacturing Sector:

Evidence of Firm Heterogeneity, Economies of Transition, 1 8 (1), pp.143- 1 82.

Abraham, F. and Van Hove, J. (2010), Can Belgian Firms cope with the Chinese Dragon and Asian Tigers? The

Export Performance of Multi-product Firms on Foreign Markets, Working Paper Research 204, National Bank

Belgium.

Abraham, F. and Van Hove, J. (2011), Chinese Competition in OECD Markets: Impact on the Export Position

and Export Strategy of OECD Countries, Journalof Economie Policy Reform, 14 (2), pp. 151-170.

Agur, I. (2010), Trade Liberalization, Firm Selection, and Variety Growth, Review of International Economies,

18 (3), pp. 582-594.

Andreosso-O'Caliaghan, B. (2008), Economie Structural Complementarity: How Via bie is the Korea-EU FTA?,

Journalof Economie Studies, 36 (2), pp. 147-167.

Baggs, J. (2005), Firm Survival and Exit in Response to Trade Liberalization, Canadian Journalof Economies,

38 (4), pp. 1364-1383.

Baldwin, R.E. (1993), A Domino Theory of Regionalism, NBER working paper no. 4465.

Baldwin, R.E. (2006), Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global

Free Trade, The World Economy, 29, pp. 1451-1518.

Baldwin, R.E. and Forslid, R. (2010), Trade Liberalization with Heterogeneous Firms, Review of Development

Economies, 14 (2), pp. 161-176.

Baldwin, R.E. and Venables, A.J. (1995), Regional Economie Integration, in Grossman, G.M. and Rogoff, B. (eds.), Handbook of International Economics, pp. 1597-1644, North-Holland Press, Amsterdam.

Bhagwati, J. (1991), The World Trading System at Risk, Princeton University Press, Princeton.

Bhagwati, J. and Krueger, A. (1995), The dangerous Drift to Preferential Trade Agreements, Ameriean Enterprise Institute, Washington De.

Bhagwati, J. and Panagariya, A. (1996), Preferential Trade Areas and Multilateralism: Strangers, Friends, or Foes? In Bhagwati, J. and Panagariya, A. (eds.), The Economies of Preferential Trade Agreements, pp. 1-38, The AEI Press, Washington De.

Bond, E.W., Syropoulos, e. (1996), The Size of Trading Blocs: Market Power and World Welfare Effects, Journalof International Economics, 40 (3-4), pp. 411-437.

Bustos, P. (2011), Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms, Ameriean Economie Review, 101 (1), pp. 304-340.

Carrère, e., de Melo, J. and Tumurchudur, B. (2010), Disentangling Market Access Effects of Preferential Trading Arrangements with an Applieation for ASEAN Members under an ASEAN-EU FTA, The World Economy, pp. 42-59.

Chang, W. and Winters, A. (2002), How Regional Blocks affect excluded Countries: the Priee Effects of Mercosur, Ameriean Economie Review, 92 (4), pp. 889-904.

Eckel, e. and Neary, J.P. (2010), Multi-Product Firms and Flexible Manufacturing in the Global Economy, Review of Economie Studies, 77, pp. 188-217.

Eckel, e., lacovone, L., Javorcik, B. and Neary, J.P. (2009), Multi-product Firms at Home and Away, mimeo.

Eckel, e., lacovone, L., Javorcik, B. and Neary, J.P. (2011), Multi-Product Firms at Home and Away: Costversus Quality-based Competence, CEPR discussion paper no. 8186.

Ederington, J. and McCalman, P.(2008), Endogenous Firm Heterogeneity and the Dynamics of Trade Liberalization, 74 (2), pp. 422-440.

Egger, H. and Kreiekemeier, U. (2009), Firm Heterogeneity and the labor Market Effects of Trade Liberalization, International Economie Review, 50 (1), pp. 187-216.

European Commission (2006), Global Europe: Competing in the World, Document no. COM 567/2006, Brussels.

Foroutan, F. (1998), Does Membership in a Regional Preferential Trade Agreement make a Country more are less protectionist? The World Economy, 21 (3), pp. 305-336.

Horn, H., Mavroidis, P.e. and Sapir, A. (2010), Beyond the WTO? An Anatomy of EU and US Preferential Trade Agremeents, The World Economy, pp. 1565-1588.

Karacaovali, B. and Limao, N. (2008), The Clash of Liberalizations: Preferential vs. Multilateral Trade Liberalization in the European Union, Journalof International Economies, 74, pp. 299-327.

Khorana, S. and Perdikis, N. (2010), EU-India Free Trade Agreement: Deal or No Deal?, Sourth Asia Economie Journal, 11 (2), pp. 1 81-206.

Krishna, P. (1998), Regionalism and Multilateralism: aPolitical Economy Approach, Quarterly Journalof Economies, 113 (1), pp. 227-251.

Levy, P. (1997), A Politica I-economie Analysis of Free-trade Agreements, Ameriean Economie Review, 87 (4), pp. 506-519.

Limao, N. (2006), Preferential Trade Agreements as Stumbling Blocks for Multilateral Trade Liberalization? Ameriean Economie Review, 96 (3), pp. 896-914.

Long, N.V., Horst, R. and Stahier, F. (2011), Innovation and Trade with Heterogeneous Firms, Journalof International Economies, 84 (2), pp.149-159.

Marinov, R., Rocha, N. and DiNino, V. (2008), Trade Liberalization and New Exporters' Size: A Test of Heterogeneous Firm Modeis, B.E. Journalof Economie Analysis and Policy, 8 (1), Article 10.

McGuire, S.M. and Lindique, J.P. (2010), The Diminishing Returns to Trade Policy in the European Union, Journalof Common Market Studies, 48 (5), pp. 1329-1349.

Okubo, T. (2009), Trade Liberalization and Agglomeration with Firm Heterogeneity: Forward and Backward Linkages, Regional Science and Urban Economies, 39 (5), pp. 530-541.

Reiehert, M.S. and Jungblut, B.M.E. (2007), European Union External Trade Policy: Multilevel Principal-Agent Relationships, The Policy Studies Journal, 35 (3), pp. 395-418.

Romalis, J. (2007), NAFTA's and CUSFTA's Impact on International Trade, Review of Economies and Statisties, 89 (3), pp. 416-435.

Srinivasan, T. (1998), Developing Countries and the Multilateral Trading System, West View Press, Colorado.

Van Hove, J. (2010), Variety and Quality in Intra-European Manufacturing Trade: The Impact of Innovation and Technologieal Spillovers, Journalof Economie Policy Reform, 13 (1), pp. 43-59.

Viner, J. (1950), The Politieal Economy of Tariff Determination in the European Union, University of Florida, mimeo.

CHAPTER 51 DEVElOPMENT CO-OPERATION

In the last sixty years, development aid has become an industry with annual financial flows from North to

South of over $150 billion. Until the 1990s, the most visible part of the aid industry was a select group of

(Northern) governments and governmental development agencies, multilateral institutions and development

NGOs. Other types of co-operation, such as South-South co-operation, were going largely under the radar

(Brautigham, 2009, King, 2011). This Northern group has been 'select' in nature but not in numbers: the aid

industry has grown continuously up to more than 200 multilateral and bilateral institutions alone (De Haan,

2009). Although their strategies and principles may differ significantly (Tan-Mullins, 2010, King, 2011), many

authors have argued that these groups of actors constitute an epistemic community, with their own discourse,

vocabulary, domain-specific set of values and norms and codes of conduct (e.g. lewis & Mosse, 2006,

Develtere, 2009). However, this "status quo" of development actors, has been challenged from roughly the

1990s onwards, by a proliferation and diversification of new actors. Notably, emerging economies of the

South and private sector actors have carved out an important position within the development sector. New

actors imply new ways and possibilities for co-operation and partnership, but also for competition and

conflict. More specifically, this raises questions on the effects of emerging economies on the international co

operation discourses, policies and practicesi the need for co-operation between Western donors, emerging

economies and Southern (aid receiving) countriesi the inclusion of the private sector in aid and co-operationi

and the implications for the integration of human rights issues within development policies.

Within the call for proposals (section 6.3.3), four main actors were identified: emerging economies, private

sector, aid receiving countries and Western (small and large) donors. In addition, human rights issues were

recognised as a transversal theme. To incorporate the different dimensions of the research questions, and to

enable the exploration of the different links between the identified actors, as weil as to guarantee the links

with other piJlars, the pillar "development co-operation" is structured around one long term research, leading

to a doctoral degreei and two medium term research activities. A specific budget is foreseen to respond to

additional short term research and policy questions.

The long term research theme wiJl focus on the role and impact of the emerging economies on development

co-operation/aid in genera I, and specifically on the partnerships or co-operation with Western donors in

receiving countries on the one hand, and with private actors on the other. Implications of the emerging

economies on the human rights agenda of international donors wiJl also be looked at. This research wiJl be

conducted by a researcher at the Research Institute for labour and Society (HIVA). 90% of the researcher's

time will go to the long term research and 1 0% to support short term activities.

The firsf medium term research (6.5 months allocated over 2 years) will focus on the role of the private

sector in development co-operation. This research examines other important dimensions of the role of the

private sector, outside those which are part of the long term PhD research (section 5.2), which looks

specifically at how the emerging economies partner with the private sector.

The second medium research (10 months) will focus on the human rights aspects. The legal aspects of part

6.3.3 of the call (i.e. the leg al consequences on human rights law and good governance of the changing face

of development co-operation) will be covered by the leuven Cent re for Global Governance Studies (pillar 1).

Additional insights that derive from the long term PhD research in this pillar, (described under 5.2), will be

integrated as weil.

Finally, the researchers will provide capacity and expertise to address short-term policy questions from the

Flemish government and administration.

This pillar will be co-ordinated by the Research Institute for Work and Society (HIVA) of the Catholic

University of leuven. The academic supervisor is Prof. Hans Bruyninckx, director of HIVA. The following HIV A

researchers will be involved in the research: a doctoral researcher for the PhD track; Huib Huyse, research

manager, and Ignace Poll et, expert researcher for other research activities. For the second medium term

research, a researcher from the leuven Global Governance Studies Centre will be hired.

I. Project details

The proposed research is entitled: "Challenging the status-quo? The impact of the emerging economies on the

global development co-operation/aid system aid". [Een uitdaging voor het status-quo? De impact van de opkomende economieën op de ontwikkelingssector]. The long-term research theme will be conducted at the

Research Institute for Work and Society, K.U.leuven, by a researcher and will result in a doctoral dissertation

(supervision: Hans Bruyninckx and Huib Huyse). It responds to the questions in the call 6.3.3 related to the role

emerging economies in first instance, and to the questions related to private sector strategies and human rights

in second instance.


Developing countries are becoming less exclusive the playground of Western donors. Although, several of the

emerging economies (China, India, BraziI, South Africa, 00) have been involved in aid and trade activities with

other developing countries for several decades (Cabril et al., 2010; Denney et al., 2011; King, 2011;

Woods, 2008), the volume of their activities and the political weight of their presence increased significantly

over the last few years (Brautigam, 2009). This has several consequences:

Firstly, many questions arise as to how traditional (small and large) and emerging donors should relate at the

international policy level (global governance) and at the field level. The differences manifest themselves at

the level of interests in aid (the agenda), the underlying va lues and norms, the concepts, tools and approaches

used (Brautigam, 2009; Grimm, 2010), and the actual implementation on the ground (Dreher et alo, 2010).

Many scholars believe that there is an inherent contradiction, even conflict, in the Western and emerging

economies' presence in these same countries, in the same field, but with other approaches and interests. For

instance, for Western donors, the human rights agenda and the corresponding politica I conditions they impose

are a sensitive, but core element of their aid relationships, while emerging economies are criticised by western

donors for the absence or limited presence of politica I conditions annexed to their co-operation efforts. The

implications for the international co-operation system, and specifically for small donors as Flanders, are not

yet covered by a significant body of knowiedge, and therefore deserve to be further investigated.

Secondly, over the last few years several international reviews of the aid system have pointed at weaknesses

in the private sector strategies of international donors (Davies, 201 1). There is a growing call for international

aid to act as a catalyst for private sector development in developing countries. A number of emerging

economies indeed accommodate private sector co-operation and aid strategies (incl. the private sectors in

their own countries, see Brautigam, 2009). Lessons can be learned from these approaches for Western donors.

Thirdly, despite (perceived) conflicting interests and approaches, the presence of emerging economies on the

ground opens up opportunities for trilateral co-operation between Western donors and emerging economies.

Little is known, however, about the experiences and achievements of this kind of co-operation.


The proliferation and diversification of actors is apparent on different levels in the North, as in the South. In

the North, it is characterised by the increase of subnational and regional donors (regional governments, as

weil as provinces and municipalities). At the same time, there is the emergence of donors outside of wh at

Develtere has termed the existing th ree pillars of development aid 11 (Develtere, 2005). These 'new entries'

into development aid are not yet weil identified, delineated or analysed. A number of new actors have been

singled out as major new entries: private philanthropic organisations (incl. large US-foundations, such as the

Gates Foundation, as weil as and individuals) (De Haan, 2009) and similarly philanthropic initiatives (Edwards

2009), enterprises (Lancaster, 2008), faith-based organisations, for instance Muslim-based organisations

(Benthall & Bellion-Jourdan, 2003), diaspora or migrant organisations (Merz et al., 2007; De Bruyn et al.,

2008), private initiatives as translation of the Dutch 'particuliere initiatieven' (Kinsbergen & Schulpen, 2010),

trade unions, cooperatives and farmers movements (Develtere, 2005), and so on.

But the single most unique element, whether merely perceived or real, is the increased presence of emerging

economies, such as China's, India's and Brazil's economic activities - investment, trade and aid alike - in both

Africa, Asia and Latin-America. The BRIC countries are only the most visible part of a much larger group of

emerging actors, ranging from the new EU member states, countries such as Turkey, to the Arab countries.

While many of them have a long tradition of cooperating with other developing countries, their re-emergence

has been marked by the fact that they turned themselves from recipients of aid into deliverers of aid/trade to

other developing countries. Finally, the proliferation increases further because, as in the North, regional and

sub-national authorities do also play in important part in this process (for instance Chinese provinces). Besides

governmental agencies and local NGO's, private actors in the emerging economies are increasingly singled

out as partners or targets for donor activities.

11 Bilateral direct aid or governmental development agencies constitute the first pillar, multilateral institutions the second, and development agencies the third pillar.

The growth of development agencies and NGOs and their projects and programs in the South, has pushed the

aid industry itself into introduce approaches to co-ordinate, harmonise and align their efforts via common

goals, frameworks, and methodologies (cf. Comprehensive Development Framework, Millennium Development

Goals, Poverty reduction Strategy Papers, Paris Consensus, Accra AgÊmda for Action, EU division of labour

consensus). This has clearly been a defining trend for the whole sector of development aid (De Haan, 2009).

Despite this, many differing viewpoints exist about the impact and the effectiveness of aid (Gibson et al.,

2005; Hancock, 1989; Sachs, 2005; Collier, 2007; Easterly, 2006; Bebbington et al, 2009).

However, in the history of development aid, the period 2000-2010 may feature as the decade in whieh most

- if not all - of the acquired certainties and achievements were challenged. The emergence of the new

development actors in the North and South has only augmented the above discussion.

The presence of emerging economies has triggered debates around the following issues (Brautigam, 2009;

Hakenesh, 2011; Humphrey, 2011; King, 2010; One, 2010; Sato et al., 2011; Tan-Mullins, 2010; Yuhua,

2010): fragmentation (e.g. the need for donor co-ordinationjtrilateral co-operation), the motives for offering aid (e.g. altruistic versus win-win), the norms and values of aid (e.g. conditionalities, good governance, tied aid,

and transparency of aid flows), boundary setting (aid versus development, including trade and investment), the

nature of aid (capacity development in the social sector versus investments in infrastructure), the effecfiveness of

alternative approaches (eg. working with private sector), the ro/e of civil society (e.g. democratie ownership vs

politica I ownership), and global governance (e.g. the legitimacy of the OECD-DAC as norm-setting body).

However, it remains challenging to grasp this new reality through the concepts, norms and va lues of the

traditionaljNorthern development community. For example, for a long time, aid was not a word easily

pronounced in the spheres surrounding the China-Africa co-operation, indicating the Chinese do not

automatieally value the concept of aid (Brautigam, 2009). In addition, the integration of aid with programmes

of trade and investment makes it is diffieult to engage in comparative analysis. This last element will be

examined more closely in the medium term research on private sector involvement (see section 5.3), and,

where relevant, expertise will be mobilised from the other pillars in this Poliey Research Centre proposal.


The overall objective of the research is to identify the effects of the growing presence of the emerging

economies on development co-operation in genera I and on Western donors (including small donors) in specifie.

Specifie research questions to be answered include:

a) What is the effect of the emerging economies on the global governance of aid and development, for

example regarding the legitimacy of OECD-DAC as norm-setting and good-practiee body?

b) To what extent are the aid and co-operation discourses and practiees of traditional donors (including

conditionalities, such as adherence to human rights) and emerging economies (e.g. win-win approach)

mutually reinforcing?

c) What effects can be observed in the policy dialogue, programme implementation, and evaluation of

development programmes?

d) How do emerging economies include the private sector in their development strategies and what are

the characteristies of these approaches?

e) What are the experiences of different types of trilateral donor co-ordinationjharmonisation efforts

(from information sharing, division of labour, to trilateral co-operation)?

The theoretica I insights from the answers to these questions will allow us to draw conclusions and propositions

for the future relations of Flemish development co-operation with the partner countries and with emerging

economies, as weil as towards the relevance of different approaches to private sector involvement.


Where necessary and possible, the data collection activities are set-up in an integrated way, so that they

inform the medium and short term research activities. For example, the examination of the practices of

emerging economies regarding private sector involvement is relevant for the first medium term research (See

infra, §5.3), while the policies and discourses of emerging donors on human rights conditionalities are relevant

for the second medium term research.

A mixed method design is put forward, with both qualitative and quantitative elements, depending on the

issues that are examined. The design includes 6 case studies, involving fieldwork in 2 or 3 countries, selected in

conjunction with the commissioner of the research. HIVA's network of Southern university partners and

consultants can assist with the field work. Important phases in the research are listed bel ow:

In response to research guestions a and b:

7. Mapping what is known in the literature and idenfifying gaps

• Designing the theoretica I framework to guide the literature review

• Mapping international studies / reports / evaluations

• Performing the literature review, and identifying gaps

2. Examining the explicit and implieit aid/development co-operation poliey positions/ strategies/approaches of traditional donors (and OECD-DAC) and emerging economies over the last 5 years

,. Analysis of discourse on aid and co-operation policies and reports in the media and in policy

documents in North (6 donors) and South (6 donors)

,. Semi-structured interviews / web survey with reps of 6 bilateral agencies (2 smalI, 2 medium, 2 large), and OECD-DAC representatives (reps)

.. Semi-structured interviews with reps / web survey of 6 emerging economies (South-Africa,

China, India, BraziI, Turkey, Arab states or new EU member states), and G20 / BRIC

,. Analysis of trends in policy frameworks and identification of approaches of emerging economics

to private sector involvement.

In response to research guestions c, d and e:

3. Longitudinal study of 6 information-rich cases (with different degree of co-operation between traditional donors and emerging economies, and a review of their strategies for private sector involvement)

• Design of the theoretica I framework on basis of partnership literature, social network concepts,

and private sector co-operation models

,. Selection of case studies in, for example, Malawi / Mozambique / South-Africa

Possible selection criteria:

- no co-operation / information sharing / division of labour / trilateral co-operation; and/or

- different forms of trilateral co-operation by different emerging economies (China, BraziI, .. )

- involvement of subnational/regional authorities on side of Western and/or emerging

economies

• Two field visits (2013 & 2015) for each case study, incl. social network analysis measurements

and qualitative interviews/focus groups with stakeholders (programme staff, policy makers, .. ),

observation, document study.

• Cross-case analysis and analysis of various scenarios of donor co-operation

• International workshop with practitioners and policy makers to share lessons learned and review

cross-case analysis

VI. Valorisation / deliverables

A range of types of outputs and communieation channels will be used, as to address the information needs of

different target groups: i.e. policy makers of the Flemish government, administration and advisory bodies

(VAlS, VIA, SAR IV, .. ) and other regions/countries, practitioners, the academic community and the general

public. Valorisation includes:

Working papers & policy papers:

1. End of year 1: Mapping of the literature and identifieation of knowledge gaps

2. End of year 2: Mutual influences of the aid discourses and practiees of emerging economies

and Western donors

3. End of year 3: Influence of the emerging economies on the global governance of aid

4. End of year 4: Wh at are the effects of the presence of emerging economies on the Flemish

aid programmes in 3 countries and good practiees and lessons learned with

trilateral/multilateral co-operation

Internationally peer reviewed journal articles: end of year 2, 3 and 4.

Guest Lectures in the CADES program of K.U.Leuven and in the course Development Co-operation

(K.U.Leuven)

PhD thesis: end of year 4

Seminars and workshops

Conferences

In addition, the Policy Research Centre can contribute to organisational development , in the form of specifie

advice, review of organisational practiees, proposals for change strategies, and to institutional development,

if requested, to review, for example, poliey and legal frameworks.

VII. Timing



1. Research activity 1: Mapping and identifying knowledge

Output: articlejreport on state of the art

2. Research activity 2: Discourse analysis, Semi-structured interviews and web survey

Output: articlejreport trend analysis in policy frameworks

3. Research activity 3: Fieldworks : identifieation of cases, preparation and analysis, and cross-case analysis

Output: individual case reports and seminars; workshops

Dissertation (academie eapaeity building)



Benthall, J. & Bellion-Jourdan, J. (2003), The Charitable Crescent: Polities of Aid in the Muslim World, l.B. Tauris & Co. Ltd., London

Brautigam D. (2009), The Dragon's Gift. The Real Story of China in Afriea, Oxford

Broadman H. (2007), Africa's Silk Road: China and India's New Economie Frontier, World Bank, Washington

Cabril L., Weinstock J. (2010), BraziI: an emerging aid player: Lessons on emerging donors, and South-South and trilateral cooperation, ODI Briefing Paper 64, Overseas Development Institute

Collier, P. (2007), The Bottom Billion: Why the Poorest Countries Are Failing and Wh at Can Be Done About It, Oxford University Press, Oxford

Davies P. (2011), The Role of the Private Sector in the Context of Aid Effectiveness: Consultative Findings Document, Working Party on Aid Effectiveness, OECD Development Assistance Committee

De Bruyn, T. & Develtere, Pi Danckaers, T. (ed.) (2008), Het potentieel van de diasporafilantropie.

Onderzoek naar het geefgedrag van Belgische migrantengemeenschappen, Koning Boudewijnstiehting, Brussel

De Haan A. (2010), Will China Change International Development as We Know it?, Journalof International Development Vol.22

Denney L., Wild L. (2011), Arab Donors: Implications for Future Development Cooperation, Poliey Brief EDC 2020, Overseas Development Institute

Develtere P. (2005), De Belgische Ontwikkelingssamenwerking, Davidsfonds, Leuven

Dreher A., Nunnenkamp P., Thiele R. (2010), Are 'New' Donors Different? Comparing the Allocation of Bilateral Aid between Non-DAC and DAC Donor Countries, Kiel Working Papers 1601, Kiel Institute for the World Economy

Easterly, W. (2006), The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Mcuh 111 and So Little Good, Penguin Press, New York

Edwards, M. (2009), 'Why 'Philanthrocapitalism' is not the answer: private initiatives and international

development' in M. Kremer, P. Van lieshout & R. Went (eds.) Doing Good or Doing Better: Development Policies in a Globalising World, WRR-verkenning, AUP, Amsterdam

Gibson, c.c., Andersson, K., Ostrom E. & Shivakumar, S. (2005), The Samaritan's Dilemma. The

Politica I Economy of Development Aid, Oxford University Press, Oxford

Grimm S. (2010a), Engaging with China in Africa - Trilateral Cooperation as an Option?, EDC2020, EADI

paper n0 9, Bonn

Hakenesh C. (2011), European Good Governance Policies Meet China in Africa: Insights from Angola and

Ethiopia, EDC2020, EADI paper n° 10, Bonn.

Hancock, G. (1989), Lords of Poverty, MacMillan, London

Humphrey J. (2011), Indian Development Cooperation: Key Traits and Prospects, EDC 2020, Policy Brief,

Institute of Development Studies

King K. (2010), China's Cooperation in Education and Training with Kenya: A Different Model?, International

Journalof Educational Development 30, p.488-496

King K. (2011), A Brave New World of 'Emerging', 'Non-DAe' Donors and their Differences from Traditional

Donors, Editorial - New Actors - Old Paradigms?, NORRAG, NN44

Kinsbergen, S. Schulpen, L. (2010), De anatomie van het PI. Resultaten van vijf jaar onderzoek naar

Particuliere Initiatieven op het terrein van ontwikkelingssamenwerking, CIDIN/NCDO, Nijmegen/Amsterdam

Lancaster, C. (2007), Foreign Aid, Diplomacy, Development, Domestic Politics, The University of Chicago Press,

Chicago

Merz, B.J., Chen, L.c. & Geithner, P.F. (2007), Diasporas and Development, Global Equity Initiative, Asia

Center, Harvard University, Harvard University Press, Cambridge, Massachusetts

One (2010), The Data Report 2010: Monitoring the G8 Promise to Africa, www.one.org

Sato, J. et al. (2011), Emerging Donors: from a Recipient Perspective: An Institutional Analysis of Foreign Aid

in Cambodia, World Development, doi: 1 0.1 01 6 /j.worlddev.20 11 .04.014

Sachs, J. (2005), The end of poverty - how we can make it happen in our lifetime, Penguin Books, London

Tan-Mullins M., Mohan G. & M. Power (2010), Redefining 'Aid' in the China-Africa Context, in: Development

and Change 41 (5): 857-881

Woods N. (2008), Whose Aid? Whose Influence? China, Emerging Donors and the Silent Revolution in

Development Assistance, International Affairs 84:6

Yuhua X. (2010), Chinese Perceptions of African CSOs, in: Harneit-Sievers A., S. Marks and S. Naidu (eds.),

Chinese and African Perspectives on China in Africa, Kampala

I. Project details

The proposed research is entitled: The role of the private sector in development co-operation. [De rol van de private sector in ontwikkelingssamenwerking]. This research theme will occupy approximate 6,5 months, and will

be conducted at the Research Institute for labour and Society (HIVA) by a HIV A researcher, in collaboration

with the leuven Centre for Global Governance Studies, and supported by a HIVA research manager. It

responds to the questions in the call 6.3.3 related to private sector strategies. Findings of the long-term

research on emerging economies will be integrated in this medium term research.


The role of the private sector has received an increasing amount of attention from academies and policy

makers. large multinational companies (e.g. Unilever Sustainable living plan - 2020) are starting-up self

regulation activities, in an attempt to improve the ecology and social sustainability of their business activities.

Along the same lines, a growing range of ecologieal and social certifieation schemes are emerging. Corporate

social responsibility (CSR) activities are also growing and powerful private foundations are creating new

dynamics in the aid sector. The Flemish policy note 2009-2014 on Foreign Policy, International

Entrepreneurship, and Development Co-operation is emphasising the importance of local entrepreneurship,

fair tra de, and international certifieation. However, international donors are stuck with many questions on how

to relate to all these developments, bearing in mind the Western sensitivity around tied aid. This pillar will

explore the international developments, modalities, and good practiees regarding the role and involvement of

the private sector in the development co-operation system. It will primarily focus on private sector strategies,

in whieh Western governments and donors can play different kinds of roles (support, facilitation, regulation,

advocacy, beneficiary,..), and will be complemented by findings of the long-term PhD research on emerging

economies.


While there has been steady growth in interest in the role of the private sector 12 in development over the last

few decades, such interest has dramatieally expanded in recent years (Abbott, 2009; Brown et al., 2007; Marx A. et aL, 2011; Reardon et al., 2009; Vorley et al., 2009). A number of leading bilateral donors have

adjusted their aid policies to carve out a distinctive role for for-profit actors (DGIS Netherlands, DFID in UK,

USAID in USA). In addition, this interest can be witnessed in the preparatory documents of OECD-DAC

towards the Fourth High level Forum on Aid Effectiveness in Busan (Davies, 2011). However, it can be argued

that agreement on the importance of the private sector exists mainly at the paradigm level, and it sometimes

hides more than it reveals. Depending on the pending views about the role of the state vis-à-vis the private

sector in development, motivations and expectations about working with the private sector vary widely

(Abbott, 2009; Brown et alo, 2007; Marx A. et al., 2011; Marx, 2010; Reardon et al., 2009; Vorley et aL,

2009). Therefore, strategies by international donors also reflect these different views, resulting in a range of

practiees, oriented towards different types of actors. The strategies range from: lobbying for international social regulafion of the private sector (to avoid a 'race to the bottom'); encouraging self-regulation of the private sector through certification (e.g. Fair trade certifieation); setting-up public-private partnerships; using the private sector as an implementer of aid programmes; using funds from the private sector for deve/opment purposes through corpora te social responsibility or philanthropic activities; promotion of social entrepreneurship, capacity deve/opment of the business sector in deve/oping countries; facilitating partnerships between business,

12 Private sector understood here as for-profit private sector and private foundations (not civil society actors)

NGOs and government (e.g. USAID Global Development Alliances); supporting watchdog NGOs that monitor the practices of multilatera/ co-operation; etc.

An important dividing line between those strategies is the extent to whieh the developmental activities are

part of the core of the work of the business/social enterprise (e.g. see Vorley et al., 2009, on concepts of

inclusive business) or rather an add-on (e.g. see Ghalib et al., 2011, on corporate social responsibility

activities). Secondly, donors are faced with the important question on whieh type of actors to focus their

strategies on: governments, private sector, NGOs, or combinations of these actors. In addition, Davies (2011)

highlights the enormous diversity of the private sector (depending on the sector, type of actor and size,

domestie/non-domestie), and the need to differentiate between them when discussing the role of the private

sector in development. Further on, the many hybrid forms that exist, ranging from social enterprises to social

economy actors (Deraedt E., 2009), increase the complexity of this field.

While insights into the success factors of certain strategies, such as public-private partnerships, are manifesting

(Samii et al., 2002), many questions remain for policy makers regarding how they should develop a

comprehensive strategy that avoids the pitfalls commonly attributed to these areas. Little is known about whieh

specifie strategy, or combination of strategies is most effective in a given context, making it very diffieult for

donors to decide on a specifie scenario.

IV. Theoretical and policy research questions and goals

The main research question from the call (section 6.3.3) is the following: What are the most important

developments, modalities and best practiees regarding the role and involvement of the private sector in

international poverty reduction and the overall development practice?

Specifie research questions include:

a) What is known about the roles that the private sector can play in development? How has this evolved

over time?

b) What are the main strategies that donors have supported in their interaction with the private sector?

What works for wh om, in whieh context?

c) How can donor strategies regarding private sector involvement be made more context-specifie and

strategie?

The long-term PhD research (see 5.2) will provide material to answer the additional research question:

d) What can be learned from how emerging economies are dealing with the private sector in

development?

From this research, policy oriented lessons will be drawn relevant to small donors.


The following steps can be distinguished in the organisation of the research:

1) /n-depth ana/ysis of different ro/es and incentives for private sector invo/vement

11 Broad review of state-of-art thinking on the roles and incentives

• Analysing the material from a small donor perspective

2) Mapping the existing donor practices and reviewing the avoiIabie data on the effectiveness of different private sector strategies from on actor-centred perspective

• Comparative analysis of different donor strategies that focus on different actors, or groups of actors

• Analysing which strategies might be most effective in which context, and for which type of actor

3) Identification of good practices of the introduction of innovative private sector strategies

• On the basis of insights obtained in the previous steps and the long-term PhD research, a review is

done of the change management strategies, used by various donors, to introduce a new private sector

approach

4) Ana/ysis of good practices

• Seminar with experts for selected donor agencies to distil good practices

• Analytic report

VI. Valorisationfdeliverables

Working and policy papers

o End of year 3: Mapping donor practices regarding private sector involvement

o End of year 4: Good practices in private sector involvement in the aid sector.

Seminar: end of year 4

Report: end of year 4

VII. Timing

In order to allow integration and complementarity with the long-term research, the mid-tem research will be

conducted in year 3 (3,5 months) and year 4 (3 months).

Medium term research

1. Research activity 1: The role of the private sector in development co-operation

Output: research report, article - input in mid-term research , workshop



Abbott, K. and Snidal D. (2009), Strengthening International Regulation Through Transnational New

Governance: Overcoming the Orchestration Deficit", in, Vanderbilt Journalof Transnational Law, 42: 2 , p.

501-578

Brown, D. and Woods N. (2007), Making Global Self-Regulation Effective in Developing Countries. Oxford:

Oxford University Press

Davies, P. (2011), The Role of the Private Sector in the Context of Aid Effectiveness: Consultative Findings

Document, Working Party on Aid Effectiveness, OECD Development Assistance Committee

Ghalib A. and Agupusi P. (2011), How socially responsible are multinational corporations? Perspectives from

the developing world, Working Paper Series, 32, University of East Anglia

Deraedt E., (2009), Social Enterprise: A Conceptual Framework, Conceptual Discussion

Social Enterprise Development Targeting Unemployed Youth in South Africa

HIVAjK.U.Leuven

Paper for the ILO

(SETYSA) project,

Heap S. (2000), NGOs Engaging with Business - A World of Difference and a Difference to the World,

INTRAC publications, Oxford

Marx, A. (2011) Global Governance and the Certification Revolution, in D. Levi-Faur (ed.) Handbook of the Polities of Regu/ation. Cheltenham: Edward Elgar

Marx, A. & D. Cuypers (2010) 'Forest Certification as aGIobal Environmental Governance TooI. What is the

Macro-impact of the Forest Stewardship Council', in, Regu/ation and Governance, 4, 4, pp. 408-434

Marx, A. (2010) 'De opkomst en Proliferatie van Sociale en Ecologische Labels. Types, trends en uitdagingen

in Private Sociale Regulering', in, Ethische Perspectieven. September, pp. 264-278

Marx, A. (2008) 'Limits to non-state market regulation: A qualitative comparative analysis of the international

sport footwear industry and the Fair Labor Association', in, Regu/ation and Governance, 2, 2, pp. 253-273

Marx, A., D'Hollander D., Hansen R., Sterkx S., van Wersch, P., Ondernemingen en

Ontwikkelingssamenwerking, PULSE working paper, HIVAjK.U.Leuven

Reardon T., Barrett C. B.,Berdegue J. A., Swinnen J. F. M. (2009) Agrifood Industry Transformation and Small

Farmers in Developing Countries, World Development, Vol 37, Issue 11

Samii, R., Van Wassenhovem L., Bhattacharya S. (2002), An Innovative Public Private Partnership: New

Approach to Development, World Development, 30, Vol 6, p. 991-2008

Vorley B., Ferris S., SevilIe D., Lundy M. (2009), Linking worlds: New Business Models for Sustainable Trading Relations between Smallholders and Formalized Markets, New Business Models for Sustainable Trading

Relations-project, Rainforest Alliance, Bill and Melinda Gates Foundation

I. Project details

Supervisors:

Dr. Axel Marx (GGS)

Dr. Huib Huyse (HIVA)

Prof. dr. Jan Wouters (GGS)

Prof. dr. Cedrie Ryngaert (GGS)

This medium term research (1 0 months) will be conducted at the Centre for Global Governance Studies by a

junior researcher supported by a GGS research manager, in collaboration with the Research Institute for

Work and Society (HIVA). It responds to the questions in the call 6.3.3 related human rights.

11. Problem Statement

Human rights are of ten seen as objectives in their own right as weil as an instrument in achieving development

goals. The former is a result of the fact that human rights are embedded in an international legal framework

whieh obliges signatory states to promote and protect human rights, or in a broader development agenda

whieh supports the development of human rights (see: UN Millennium Development Goals). With regard to the

latter, the Paris Declaration on Aid Effectiveness of 2005 recognised the importance human rights can make to

aid effectiveness via political change such as strengthen the rule of law through improving access to justiee. As

aresuit several donor countries integrate the promotion of human rights in their development poliey. The focus

can be either on specifie rights such as children's rights, women's rights or rights of minorities or governance

interventions to promote the protection of rights (access to justiee).

The Flemish regulator also recognises this importance. In the 2007 Flemish Framework Decree on development

co-operation, respect for human rights is named as a building block of good governance.13 Furthermore, this

Parliamentarian Act establishes alegal framework to include a human rights agenda in the poliey dialogues

with partner countries (Art. 4, 3°). It was equally put forward in the 2009-2014 policy document on Foreign

Policy, International Entrepreneurship and Development Co-operation that a greater respect for human rights

contributes to a democratie, peaceful and secure international community.14 For this reason, the Flemish

government will continue to strive for the integration of a human rights agenda in the activities it undertakes in

the course of his international policy. Yet, notwithstanding these references, the integration of a comprehensive

human rights policy as a transversal theme in the Flemish International Relations can be enhanced.

In 2006 the OECD published a first comprehensive assessment of Integrating Human Rights into Development. In this report the OECD maps the initiatives and challenges for integrating human rights into development from

local projects to global initiatives. The report shows that the integration of human rights in development takes

place in various forms. The most common form of integration can be observed in specifie projects, directly

targeted at the realisation of specifie rights, specific groups or in support of specifie human rights

organisations. A more strategie approach can be found in the design of country programs. Other approaches

include mainstreaming human rights into all sectors of aid intervention (health, education) or including human

rights in a politieal dialogue between donors and developing countries. The report also shows that some

agencies are moving to human rights based approaches. This imp lies intern a I institutional changes are afoot.

Notwithstanding these efforts and as indicated supra in the description of the proposed PhD research of Pillar

4, the inclusion of a human rights agenda in development co-operation is perceived to be both sensitive and

crucial to western donors. International research shows that the inclusion of human rights in development poliey

is not straightforward. Erie Neumayer (2003) for example analysed the role of human rights in aid allocation

of 21 donor countries with panel data ranging from 1985 to 1997 and found that most donors fail to

promote human rights in a consistent manner and of ten give more aid to countries with a poor record on either

13 Art. 2, 20°, VLAAMS PARLEMENT, Kaderdecreet inzake ontwikkelingssamenwerking [Framework Decree on deve/opment cooperation], 22 June 2007, B.S. 14 August 2007. The degree of good governance in the partner country is a criterion in selecting the partner and failure to respect this can lead to the severance of co-operation. (Art. 7, 2 ° and 8, 3 0). 14 K. PEETERS, Beleidsnota 2009-2014. Buitenlands Beleid, Internationaal Ondernemen en Ontwikkelingssamenwerking [Policy document 2009-2014. Foreign Policy, International Entrepreneurship and Deve/opment Co-operation], 2009, p. 24.

civiljpolitical or personal integrity rights. He found no differences between countries considered front-runners

on this issue (Canada, Denmark, the Netherlands, Norway, and Sweden) and the other donors. He concluded

that contrary to their verbal commitment, donor countries do not consistently reward respect for human rights

in their foreign aid allocation.

As aresuit, many challenges remain, as is also emphasised in the OECD study.

m. Objectives

This short project aims:

1. To identify and map current strategies and practices of integrating human rights in development

policy of a selected number of donor countries which are generally considered to be "model" donor

countries, both on the level of the country jregion as weil as on the level of specific projects.

2. To assess the strengths and weaknesses, opportunities and threats of these strategies and practices

(SWOT analysis)

3. To compare the different strategies and approaches of donor countries.

4. Draw lessons from these experiences for the Flemish Government and formulate policy

recommendations.

IV. Case Selection: Donor Counfries and Projects

Since the aim is to map different strategies, several case studies of donor countries and projects within these

countries will be conducted. The selection of more cases increases the potential diversity of strategies and

practices which will allow a more comprehensive comparative assessment, as weil as to base policy

recommendations on a broader set of experiences. The assessment of the OECD, which focuses on major

donors, shows indeed that there is already quite some variation in how countries and projects deal with the

human rights-development nexus. The project will focus on 5 donor countries. Their activities in Partner

countries of the Flemish Government (Malawi, Mozambique and South-Africa) will be a primary research

interest. Within each country 2 specific projects which aim to further integrate human rights in development

activities will be further analysed. As aresuit 1 0 project cases will be included in the analysis. The selection

of cases, both countries and projects, will be based on the literature review and discussed with the steering

committee.

V. Research

The project will first start with a literature review. This review can build on the report of the OECD and

concentrate on the publications of. the last 5 years. The purpose of the literature review is to give an overview

of strategies and practices for integrating human rights in development and identify interesting case studies

for further research.

Subsequently, the case studies will be prepared. Each country case study will be based on study visits,

interviews and an analysis of primary and secondary sources. Each project case study will be based on

telephone interviews and an analysis of primary and secondary sources. For each country a separate case

study report will be prepared focusing on the following topics:

• policy development with regard to human rights

• institutional capacity on human rights

• tools used for integrating human rights in development co-operation

• mainstreaming human rights with other development issues

• dialogues on human rights

• projects which aim to integrate human rights in development co-operation (overview of projects with

objectives and work plan)

• evaluation of policy and projects (SWOT)

• challenges

Each country case study report will also consist of two separate project case study reports with a more

comprehensive description of the projects and an assessment.

In a third phase, the cases will be compared to identify similarities and differences.

Finallyon the basis of the analysis poliey recommendations will be formulated. Before finalising the policy

recommendations a roundtable with relevant actors from the steering group and invited experts will be

organised to discuss the report and recommendations.

Throughout the researcher, the scholar involved will work in close co-operation with the Pillar 4 PhD

researcher. The research also has close ties with the Pillar 1, since legal approaches towards human rights law

will be indispensable. For this reason, a collaboration framework will be set up with researchers involved in

themes of multi-Ievel governance.

VI. Timing

The project will run for 1 5 months, with a FTE of 1 0 months since the planning of the case studies will imply

time lags between setting up and execution. A 2 week time lag per case study is estimated.

Literature Review + Preparing Case Studies

Case Study 1: Country 1



2 3 4 5 6 7 8 9 10 11 12 13 14 15


Case study 5: Country 1

Comparative Analysis

Policy Recommendations

+

Roundtable

VII. Valorisation / Deliverables

The expected results/ deliverables:

• 1 report including a literature review, 5 country case studies and 1 0 project case studies.

• Policy recommendations in the form of a policy brief

• Roundtable + roundtable report


Darrow, M. & Arbour, L., "The pillar of glass: human rights in the development operations of the United

Nations", American Journalof International Law, Vol. 103 (2009), pp. 446-501

Erbeznik, K., "Money can't buy you law: The effects of foreign aid on the rule of law in developing countries",

Indiana Journalof Global Legal Studies, Vol. 18 (2011), pp. 873-900.

lotz, Ch., "International Norms in Statebuilding: Finding a Pragmatic Approach", Global Governance, Vol. 16, Issue 2 (2010), pp. 219-236

Martin, J. P., "Development and Rights Revisited: lessons from Africa", Sur - International Journaion Human Rights, Vol. 4 (2006), pp. 91-102.

Mclnerney-lankford, S., "Human Rights and Development: Some Institutional Perspectives", Netherlands Quarterly of Human Rights, Vol. 25, Issue 3 (2007), pp. 459-504.

Neumayer, E. (2003) Do Human Rights Matter in Bilateral Aid Allocation? A Quantitative Analysis of 21 Donor

Countries, in, Social Science Quarterly, 84, 3, pp. 650-666.

Nwobike, Ch., "Beyond Conditionally: Human Rights in EU Development Partnership with Developing

Countries", Sri Lanka Journalof International Law, Vol. 19, Issue 2 (2007), pp. 387-406.

Von Engelhardt, M., "Millennium Development Goals and Human Rights at 2010 - An Account of the

Millennium Summit Outcome", Goettingen Journalof International Law, Vol. 2, Issue 3 (2010), pp. 1129-1146

United Nations, Office of the High Commissioner for Human Rights, Human Rights and the Millennium Development Goals in Practice : A review of country strategies and reporting, 2010, pp. 40, available at

http://www.ohchr.org/Documents/Publications/HR MDGs in practice EN.pdf

OECD Development Co-operation Directorate, DAC Action-Oriented Policy Paper on Human Rights and

Development (2007), available at http://www.oecd.org/dataoecd/500/39350V4.pdf

OECD Development Co-operation Directorate, The Development Dimension: Integrating Human Rights into

Development: Donor Approaches, Experiences and Challenges (2006), available at http://www.oecd.org/document/24/0.3746.en264934565370456561111.00.html

DEEL 3: BEGROTING

HOOFDSTUK 1 I ALGEMENE TOELICHTING

Deze bijlage geeft een gedetailleerd overzicht van de geraamde inkomsten en uitgaven, de belangrijkste

taken en opdrachten en een overzicht van de opdeling tussen de deelnemers aan het consortium.

Het indicatief jaarbudget van het Steunpunt bedraagt 500.000 euro en wordt gefinancierd door de Vlaamse

overheid. De begroting van het Steunpunt gaat uit van een nominale nulgroei.

1.2.1. Centrale beheerskosten en overdrachten naar het volgende iaar

De overhead voor centrale beheerskosten en algemene exploitatiekosten bedraagt 1 0%. Het Steunpunt

voorziet dat een reserve wordt opgebouwd waarin overschotten worden overgedragen naar het volgende

jaar. De voorziene kosten zijn immers niet voor elk jaar gelijk. Dit wordt veroorzaakt door verschillen in

reiskosten voor elk van de jaren, en door het feit dat onderzoekers in het laatste jaar van een bursaalstatuut,

dat immers slechts vier jaar kan worden aangehouden, naar het budgettair zwaardere statuut van een

wetenschappelijk medewerker moeten omschakelen. De voorziene overdracht bedraagt telkens maximum vijf

procent van het subsidiebedrag en blijft aldus ruimschoots binnen de in het besluit uitgestippelde krijtlijnen.

1.2.2. Personeels-, werkings- en uitbestedingskosten

Het Steunpunt begroot drie kostenposten. De personeelskost (nader toegelicht in hoofdstuk 2) springt daarbij

in het oog. Het consortium heeft er voor gekozen te investeren in personeel, in de eerste plaats de

doctoraatsbursalen die zowel in lange als korte-termijnopdrachten zullen worden ingezet (zie supra, de

algemene 70/30 verdeling). Dit heeft tot gevolg dat de geplande uitgaven voor ad hoc opdrachten beperkt

blijven. Additionele personeelskosten verbonden aan korte termijnopdrachten zullen voornamelijk door de

door het resterende Steunpunt budget van verschillende partnerinstellingen gedragen worden. Dit betreft

personeelskosten van het verbonden ZAP-personeel, doch is er in pijler 1 en 2 een klein bedrag voorzien om

personeelskosten verbonden aan ad hoc opdrachten te dekken. Werkingskosten worden gezien als de

verantwoordelijkheid van de verschillende pijlers en worden begroot volgens behoeften van de onderzoeken.

Hierdoor worden de centrale (indirecte) kosten beperkt tot kosten voor een gezamenlijke internationale

conferentie in jaar vier. Zoals nader zal worden toegelicht, voorziet het Steunpunt niet in de vergoeding van

externen in het algemeen en van partnerinstellingen in het bijzonder. De uitbestedingskosten zijn daardoor

zeer beperkt en worden gedragen door de onderzoeksgroepen.

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Het Steunpunt zal vanuit boekhoudkundig oogpunt een aparte entiteit vormen. Zowel het Steunpunt als de

verschillende deelnemende entiteiten zullen daartoe een afzonderlijke boekhouding voeren. De nodige

financiële documenten worden door de centrale universitaire diensten gegenereerd (cf. 10% overhead).

Vermits de K.U.Leuven de coördinerende instelling zal optreden staat de financiële dienst van de Universiteit in voor de projectboekhouding en voor verdeling van de ter beschikking gesteld middelen tussen de

universiteiten en binnen de K.U.Leuven tussen de deelnemende entiteiten (Cf. samenwerkingsovereenkomst).

De K.U.Leuven alloceert de personeelsbudgetten respectievelijk naar GGS-KUL (Pijler 1), Universiteit

Antwerpen (Pijler 2), MSI-KUL en CES-KUL (Pijler 3) en GGS-KUL en HIVA-KUL (Pijler 4). Voor het

werkingsbudget geldt een verschillende regeling waarbij de K.U.Leuven budgetten overmaakt aan GGS-KUL

(Pijler 1), Universiteit Antwerpen (Pijler 2), VLGMS en CIS-HUB (Pijler 3) en GGS-KUL en HIVA-KUL (Pijler 4).

De bursaaltrajecten voor de MSI-VLGMS projecten van pijler 3 (PhD Tracks 5 en 6, Cf. Chapter 4, §4.2. en

4.3.) zullen immers uitgevoerd worden door een samenwerkingsverband van MSI en VLGMS. De bursalen

worden aangesteld via MSI maar hebben daarnaast een aanstelling bij VLGMS. VLGMS is verantwoordelijk

voor de office space en de selectie, de opvolging gebeurt gezamenlijk. Concreet betekent dit dat de

personeelsbudgetten worden gealloceerd naar MSI-KUL.Voor het werkingsbudget geldt dit niet, dit gaat rechtstreeks naar VLGMS.

HOOFDSTUK 21 PERSONEELSKOSTEN

Voor de personeelskosten wordt uitgegaan van:

1. Acht doctoraatsbursalen voor de lange termijn (PhD) onderzoeken in de vier pijlers in het statuut van

wetenschappelijk medewerker (BAP) met een beperkte aanstellingsduur;

In Pijler 3 zal er één bursaal slechts gedeeltelijk (24 maanden, gespreid over drie jaar) gefinancierd worden

door het Steunpunt.

In Pijler 4 zal een bursaal zal worden aangesteld met ruime onderzoekservaring binnen het onderzoeksteam

van het HIVA, wat de meerkost tegenover de andere zeven doctoraatsbursalen (pijlers 1, 2, 3) verklaart.

2. Twee wetenschappelijk medewerkers voor de middellange termijnonderzoeken in pijler 4;

Deze onderzoekers worden respectievelijk voor 6,5 (Role of the Private Sector) en 10 maanden (Integrating

Human Rights into Development) aangesteld.

3. Vier wetenschappelijk medewerkers voor ad hoc vragen in pijler 1, 2 en 4;

4. Een manager - coördinator op post-doctoraal niveau, aangeworven voor 25%;

5. Een administratieve kracht die voor 40% wordt aangeworven.

2.3.1. Tabel

2.3.2. Toelichting

Bovenstaande tabel geeft de benodigde personeelsbezetting weer voor het Steunpunt, uitgedrukt in

persoonsmaanden. Alle doctoraatsbursalen werken voltijds aan hun opdracht bij het Steunpunt. Enkel de

personeelsinzet gefinancierd door het Steunpunt is opgenomen in de tabel, wat het verschil in

persoonsmaanden (24 maanden) voor Track 1 in Pijler 3 verklaart. De bursaal die onderzoek zal verrichten

naar "Internationalisation of service industries" wordt slechts gedeeltelijk (50 %, gespreid over drie jaar)

gefinancierd door het Steunpunt.

Ook werd rekening gehouden met het managen van de coördinatie en administratieve ondersteuning (8

maanden). De secretariële ondersteuning onder de vorm van een deeltijdse medewerker is onontbeerlijk voor

zowel valorisatieactiviteiten, de uitgave van eigen publicaties en het aanbieden van een kwalitatieve en

frequent geactualiseerde website, als voor de integrale administratieve ondersteuning van het Steunpunt. De

administratieve medewerker onderhoudt ook de nodige contacten met de centrale universitaire diensten met

het oog op de financiële rapportering aan de Vlaamse overheid.

HOOFDSTUK 31 WERKINGSKOSTEN

Bij de werkingskosten wordt uitgegaan van een gedecentraliseerde verdeling, die sterk de behoeftes van de

verschillende onderzoeken volgt. De kosten voor uitrusting blijven, op de initiële aankoop van

computerhardware door elke pijler na, beperkt. Wel werden de lopende werkingskosten uitdrukkelijk

begroot. Binnen elke pijler zal een documentatie budget voorhanden zijn en voor de specifieke onderzoeken

van pijler 4 werden ook vertaalkosten begroot. Boeken en tijdschriften zullen enkel worden aangekocht indien

zij specifiek voor het Steunpunt kunnen worden verantwoord. Binnen pijler 3 gaat een aanzienlijk deel van het

budget naar het dragen van kosten eigen aan het gebruik en opzetten databanken, wat noodzakelijk is voor

de verschillende onderzoeken binnen deze pijler. Voor het overige wordt een beroep gedaan op het reeds

bij de verschillende participerende instellingen voorhanden zijnde bronnenmateriaal. Daarnaast zijn ook

kosten voorzien voor de organisatie van colloquia, studiedagen en seminaries. Deze nemen toe tegen het

einde van het onderzoek, omdat net in deze periode ook de valorisatie-activiteiten meer intens zullen worden

georganiseerd. De grote, indirecte werkingskost van het Steunpunt in jaar vier werd begroot om de

organisatie van een grote interdisciplinaire en internationale conferentie mogelijk te maken.

HOOFDSTUK 41 KOSTEN VOOR ONDERAANNEMING

Zoals reeds werd gesteld, voorziet het Steunpunt niet in de vergoeding van externen in het algemeen en van

partnerinstellingen in het bijzonder. Het consortium gaat ervan uit dat bij samenwerkingsactiviteiten de

partnerinstelling en het Steunpunt elk hun eigen kosten dragen. Tijdelijke en externe onderzoekers zullen

slechts in beperkte mate worden aangesteld, indien noodzakelijk omwille van hun specifieke expertise. Zo dit

niet mogelijk is (bijvoorbeeld vanwege de grote schaal van een internationale conferentie) dan zal worden

gezocht naar externe financiering.

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