41-60 of 96 Results  for:

  • International Political Economy x
Clear all

Article

Gabriele Spilker, Vally Koubi, and Thomas Bernauer

How does liberalization of trade and investment (i.e., economic globalization) as well as membership in international organizations (i.e., political globalization) affect the natural environment? Does economic and/or political globalization lead to ecological improvement or deterioration? This article reviews the existing literature on international political economy (IPE) and the environment in view of these and related questions. While globalization has various dimensions—economic, social, and political—IPE focuses mainly on the economic dimension when analyzing the effect of globalization on the environment. In particular, IPE puts most emphasis on the environmental implications of trade in goods and services as well as foreign direct investment (FDI). Even though both trade and investment are thought to have a substantial impact on the natural environment, the existing literature demonstrates that the effects of economic globalization on the environment are neither theoretically nor empirically one-dimensional. This means that existing research does not allow for a clear-cut overall assessment in terms of whether globalization leads to an improvement or deterioration of the environment. This is the case because the impact of economic globalization on the environment materializes via different mechanisms, some of which are supposedly good for the environment, and some of which are bad. On the one hand, economic globalization may improve environmental quality via its positive effect on economic growth, since trade and FDI facilitate specialization among countries according to their comparative advantage and the transfer of resources across countries. On the other hand, relevant economic theory gives little reason to believe that free trade and FDI will influence all countries in the same way. Instead, when considering the relationship between economic globalization and the environment, it is important to consider the interactions between scale, composition, and technique effects created by different national characteristics and trade and investment opportunities. In particular, the scale effect of openness to trade and capital mobility increases environmental degradation through more intensive production. The technique effect predicts a positive effect of trade and FDI on the environment through the use of cleaner techniques of production. And the change in the sectoral composition of a country as a consequence of trade and FDI, the composition effect, could positively or negatively affect the environment of a country (e.g., a change from agriculture to industry may lead to higher energy consumption and air pollution while a change from industry or agriculture to service is expected to decrease environmental degradation). Consequently, the overall effect of trade and FDI on environmental quality can be positive, negative, or nonexistent strongly depending on the specific situation of the country under investigation. Furthermore, both theory and empirical research highlight the potential for government policy and environmental regulations to affect the relationship between trade/FDI and the environment. On the one hand, increased competition between economic actors (usually companies) due to increased market openness (globalization) might cause a race to the bottom or at least regulatory chill in formal and informal environmental standards as well as pollution havens attracting foreign direct investment. The reason is that countries might weaken (or at least not increase) their environmental policies in order to protect industries from international competition or attract foreign firms and FDI motivated by the expectation of lower costs of environmental protection. Hence the (theoretical) expectation here is that developed countries will refrain from adopting more stringent environmental regulations and might even reduce existing standards due to competition with countries that have laxer environmental regulation. And less-developed countries will adopt lax environmental standards to attract FDI flowing into pollution-intensive sectors and export the respective goods to jurisdictions with higher environmental standards. In contrast, the Porter hypothesis states that a tightening of environmental regulations may stimulate technological innovation and thus help improve economic competitiveness. In addition, trade openness may induce an international ratcheting up of environmental standards (trading up) as higher environmental standards of richer and greener countries spread—via trade and investment relationships—to countries starting out with lower environmental standards. Furthermore, multinational corporations engaging in FDI and applying universal environmental standards throughout their operations tend to transfer greener technology and management practices to host countries, thus promoting the upgrade of local environmental standards and improving the environmental quality in those countries (the so-called pollution halo effect). Echoing the many theoretical pathways through which globalization can affect the natural environment, empirical studies estimating the impact of trade and FDI on environmental standards and environmental quality deliver quite heterogeneous results. In particular, the literature points to various factors mediating the effect of trade and FDI on the environment, such as differences in technology between industrial and developing countries, stringency of environmental regulations, property rights and political institutions, corruption levels as well as the pollution intensity of multinationals. More recently, IPE scholars have started to study the political dimensions of globalization and how they are related to environmental protection efforts. Memberships in international organizations are at the center of this research and recent studies analyze, for example, how they may affect the quality of the environment. Other studies focus more on specific organizations, such as the World Trade Organization, and, for instance, evaluate whether in trade disputes over environmental standards economic or environmental concerns prevail. Finally, a new strand of the IPE and environment literature deals with the micro level and studies how citizens evaluate economic openness in light of potential environmental concerns.

Article

Tanja A. Börzel and Soo Yeon Kim

Economic regionalism has been dominated by preferential trade agreements (PTAs). Not only have their numbers surged since the end of the Cold War, we also see different varieties of PTAs emerging. First, long-standing PTAs have evolved into deeper forms of economic regionalism, such as custom unions, common markets, or currency unions. Second, PTAs increasingly involve “behind-the-border” trade liberalization, such as the coordination of domestic trade–related regulatory standards. Third, many of the PTAs that were established over the past 25 years no longer only involve countries of the “Global North” but are formed by developing and developed countries (“North-South” PTAs) and between developing countries (“South-South” PTAs). Finally, a most recent development in economic regionalism concerns the building of so called “mega-PTAs,” such as the Trans-Pacific Partnership (TTP) and the Transatlantic Trade and Investment Partnership (TTIP), combining several PTAs. In order to explain the formation, proliferation, and evolution of these varieties of PTA, existing international political economy (IPE) approaches have to give more credit to political factors, such as the locking-in of domestic reforms or the preservation of regional stability. Moreover, IPE scholarship should engage more systematically with diffusion research, particularly to account for the spate of deeper regionalism. Finally, “rising powers” and “emerging markets” constitute an exciting new research area for IPE. These new players differ with regard to the importance they attribute to regionalism and the ways in which they have sought to use and shape it. Identifying and explaining variations in the link between rising powers and regionalism is a key challenge for future research

Article

International agricultural production has been transformed by the consolidation of the agribusiness model. Multinational chemical and trading companies leveraged their scientific and technological superiority over the producers to advance sales of agrochemical and biotechnological products at the same time that they integrated with traders and processors. By advancing financial scale advantages, international corporate actors established powerful buying positions, determined infrastructural developments, and established a globalized pattern of agricultural economic activity. This has been reinforced by converging demand trends of growing global population, a dietary transition in the emerging world that includes more animal products, a diversifying energy matrix that increasingly includes biofuels and the use of agricultural products as a financial asset class. The international political economy (IPE) of the soybean agribusiness model was articulated with the specific national political economies of Brazil, Argentina, and Paraguay. Differential institutional structures and different political economy coalitions and conditions processed these external conditions in different ways: coordination (Brazil), confrontation (Argentina), and colonization (Paraguay).

Article

One-quarter of the world’s states are African and can contribute to international relations theory and practice as the North enters a period of ambivalence and begins to retreat from positive global engagement. Each actor based in or concerned about the African continent, state and non-state alike, advances a foreign policy to reflect its interests, often in coalition with others. East-South relations and a non-Western world, as well as Brazil, Russia, China, India, and South Africa, are important in international development and emerging powers in Africa. The diversion away from international order and peace of the United States under President Donald Trump, the United Kingdom under Prime Minister Theresa May, and the European Union, the latter characterized by unanticipated immigration and endless Eurozone crises, can be positive for African agency and development if the continent can seize the unprecedented space to advance its own developmental states and regionalisms. Such possibilities of Africa’s enhanced prospects are situated in terms of a changing global political economy in which new economies, companies, and technologies are emerging along with contrary, nontraditional security threats. In response, novel forms of transnational “network” governance are being conceived and charted to advance sustainable developmental states and regionalisms through innovative foreign policy stances outside established, but increasingly dysfunctional and ossified, interstate institutions.

Article

Sebastian Harnisch

The Islamic Republic of Iran and the European Union (EU) have not yet established formal diplomatic relations, but since 1979 the Union and its member states have had various strong if often conflictual interactions. The relationship has been marked by distinct phases that reflect the emerging character of the partners, a theocratic republic on the one hand and a Union of interdependent democratic states on the other. While mutual economic interests have formed the basis for substantial interactions, relations with member states and the EU itself have been colored by a long and sometimes hurtful history of European states’ role in Iranian politics, including the Russian and British imperial influence over Persia in the late 19th and early 20th century, the British (and American) involvement in the coup against democratically elected Prime Minister Mohammad Mosaddeq in 1953, and the French hosting of Ayatollah Ruhollah Khomeini, an avowed critic of the Pahlavi dynasty, prior to the anti-authoritarian revolution in 1979. Over time, the relationship has substantially shaped the character and direction of the politics of the EU’s common foreign and security policy, resulting in more policy coherence between member states and the EU, more policy autonomy, particularly vis-á-vis the United States, and more proactive behavior, such as during the nuclear negotiations leading to the Joint Comprehensive Plan of Action (in 2015). By engaging with a problematic member of the nonproliferation treaty, the EU not only specified and thus strengthened the treaty, but it also grew into an international nonproliferation actor to reckon with.

Article

Ireland joined the European Communities—as they were known then—in 1973, alongside the United Kingdom and Denmark. In many ways, that membership was defined by the bilateral British-Irish relationship. Ireland was, to all intents and purposes, an underdeveloped appendage of the British economy, and membership alongside the United Kingdom was deemed by most of the Irish political and economic establishment as virtually axiomatic. Irish policy makers, however, took full advantage of the opportunities offered by membership; in particular the Common Agricultural Policy, the direct transfers that derived from cohesion, regional and structural funding, and the opportunity to present the country as a successful location for Foreign Direct Investment (FDI) with access to the entire European market. Irish policy makers also positioned themselves rhetorically close to the heart of European construction, which had the added value of creating an Irish antithesis to Britain’s ongoing European discontents. There are perhaps four key themes to be analyzed with respect to Ireland and its membership of the European Union. The first is the question of a small state and its sovereignty. As a former colony, with a bitter experience of imperialism and a strong sense of independence, Ireland’s pooling of sovereignty with its European partners has most often been presented as a desirable trade-off between legal, formal sovereignty and effective sovereignty. Having a seat at the main table—alongside the former imperial hegemon—was deemed to be a major advance, one that allowed the state more effectively to pursue its interests—including the resolution of conflict on the island of Ireland. The 2008 financial collapse, and Ireland’s experience of the EU-led troika briefly challenged that narrative. Subsequently, the support given by the EU26 to a resolution of post-Brexit border relations on the island substantially reinforced Ireland’s European commitment. A second theme of inquiry is that of Irish economic development within the European Union. In contrast to other similarly under-developed states and regions in the EU, Ireland is seen by many as something of a poster child for making a success of EU membership. In the run-up to the 2004 enlargement and shortly thereafter, Dublin was a magnet for central European and Mediterranean states looking to replicate the success of the so-called “Celtic Tiger.” Debate persists, however, on the precise balance of costs and benefits deriving from the model of economic development pursued by the Irish state, the role of Irish government policy therein, and consistency between Irish and EU policy priorities, especially in the field of corporate taxation and the regulation of large multinationals. A third theme of inquiry is the intersection of local, national, and European democracy. Once membership was secured, the European Union became a central and largely uncontested fact of Irish political life. Early constitutional referenda authorizing ratification of EC and then EU treaty changes, while vigorously contested, were overwhelmingly won by coalitions of the mainstream political parties and sectoral interest groups. With both the Nice (2001) and Lisbon (2007) treaties, however, ambivalence, antagonism, and complacency combined initially to thwart ratification. The gap between popular opinion on EU treaty change, which ultimately divided roughly 60/40 in favor, and the near unanimity among political elites and sectoral interests, opened a conversation on the relationship between local, national, and European democracy, which is as yet unresolved, but which many see as having further centralized policy making and distanced it from effective democratic control. A fourth theme is that of Ireland and Europe in the world. Ireland joined the European Communities with no expressed reservations on its further political integration, but as the only non-member of NATO. During those initial debates, economic arguments overwhelmingly predominated, but the political issues were aired and the implications for Ireland’s traditional military neutrality were robustly discussed. The subsequent membership of other non-aligned states ought, on the face of things, to have made Ireland’s position all the more secure. Thus, with a long and popular history of UN peacekeeping and active international engagement, the development of European foreign, security, and defense policies should not have proven to be problematic. In fact, neutrality, security, and defense remain neuralgic issues for Ireland within the European Union and have contributed in a very modest way to the challenges faced by the Union in its attempts to craft a coherent and credible common security and defense policy. This speaks to debates surrounding Ireland’s proper place in the world, the lessons of its own history and the perceived capacity for smaller states to shape the international community. These four themes underpin much research and analysis on Ireland as a member of the European Union. In an unstable contemporary climate, with many well-established expectations under threat, they also serve to identify the pathways available to navigate beyond political and economic instability both for Ireland and the wider European project.

Article

Israeli-European Union (EU) relations have consisted of a number of conflicting trends that have resulted in the emergence of a highly problematic and volatile relationship: one characterized by a strong and ever-increasing network of economic, cultural, and personal ties, yet marked, at the political level, by disappointment, bitterness, and anger. On the one hand, Israel has displayed a genuine desire to strengthen its ties with the EU and to be included as part of the European integration project. On the other hand, Israelis are deeply suspicious of the Union’s policies and are untrusting of the Union’s intentions toward the Israeli-Palestinian conflict and to the Middle East as a whole. As a result, Israel has been determined to minimize the EU’s role in the Middle East peace process (MEPP), and to deny it any direct involvement in the negotiations with the Palestinians. The article summarizes some key developments in Israeli-European Community (EC)/EU relations since 1957: the Israeli (re)turn to Europe in the late 1950s; EC-Israeli economic and trade relations; the 1980 Venice Declaration and the EC/EU involvement in the MEPP; EU-Israeli relations in a regional/Mediterranean context; the question of Israeli settlements’ products entering free of duty to the European Common Market; EU-Israeli relations in the age of the European Neighbourhood Policy (ENP); the failed attempt to upgrade EU-Israeli relations between the years 2007 and 2014; and the Union’s prohibition on EU funding to Israeli entities beyond the 1967 borders. By discussing the history of this uneasy relationship, the article further offers insights into how the EU is actually judged as a global-normative actor by Israelis.

Article

Hitoshi Suzuki, Yu Suzuki, and Yoshimi Igawa

Japan and the European Union have historically developed relations, from trade conflicts to mutual cooperation between global actors. Japan’s prewar attitude and postwar rapid reconstruction caused misunderstandings and frictions, but these were gradually overcome thanks to the efforts made by Japan, the European Commission and member state governments. After the Cold War ended, policy fields of cooperation expanded from “mutual” market liberalization to foreign direct investments, aid, security, and environment. Japan and the EU jointly aided the newly liberalized countries in Central Eastern Europe, while the EU sought to strengthen its relations with countries in the Asia-Pacific. The Japan–EU Economic Partnership Agreement and the Strategic Partnership Agreement of 2018 were signed on the 50th anniversary of the customs union. The Agreements are jointly aimed by both parties to foster global free trade and shared values. For the first time in postwar history, Japan and the EU had reached an agreement before achieving one with the United States. Japan–EU relations are the strongest they have been since 1959 when the Japanese Mission to the European Communities and the European Commission Delegation to Japan were established. But the security threats in the Pacific indicate that bilateral relations between Japan and member states—the United Kingdom and France at the forefront—are still in play. The impact of Brexit, estimated to be felt more on the Japanese side, is also an issue requiring close study.

Article

What does current scholarship suggest about the relationship between the rights of workers in the developing world and the global economy? Contemporary multinational production includes both direct ownership of manufacturing facilities abroad and arm’s length subcontracting and supply chain relationships. Thus far, political economists have paid greater attention to the former; there are various reasons to expect that multinational firms may have positive, rather than negative, effects on workers’ rights. For instance, some multinationals are interested in hiring at the top end of local labor markets, and high standards serve as a tool for recruitment and retention. Multinationals also could bring “best practices” from their home countries to their local hosts, and some face pressure from shareholders and consumers—given their visibility in their home locations—to act in “socially responsible” ways. Hence, while directly owned production does not automatically lead to the upgrading of labor standards, it can do so under some conditions. Supply chain production is likely more mixed in its consequences for workers. Such production involves arm’s length, subcontracted production, in which multiple potential suppliers typically compete to attract business from lead firms. Such production often includes more labor-intensive activities; minimizing costs (including labor costs) and lowering production times can be key to winning subcontracts. We may therefore expect that subcontracted production is associated with greater violations of labor rights. It is worth noting, however, that research regarding the consequences of supply chain production—and the conditions under which such production may lead to improvements for workers—is less advanced than scholarship related to foreign direct investment. The governance of labor rights in a supply chain framework is marked by several challenges. It is often difficult for lead firms, even those that wish to protect worker rights, to effectively monitor compliance in their subcontractor facilities. This becomes more difficult as the length and breadth of supply chains grow; private governance and corporate social responsibility have therefore not always lived up to their promise. Rather, achieving labor protections in a supply chain framework often requires both private and public sector efforts—that is, governments that are willing to privilege the rights of workers over the rights of local factory owners and governments that are willing to enact and implement legal protections of core labor rights. Such government actions, when coupled with private sector–based capacity building, codes of conduct, and regular monitoring, offer the most promise for protecting labor rights within global supply chains. Finally, governments of developed countries also may play a role, if they are willing to credibly link working conditions abroad with market access at home.

Article

Research on the domestic politics of trade typically begins with a theory about who benefits from trade and who is harmed by it. The actors—for instance, firms, workers, or industries—who benefit from trade are expected to support liberalization while those who are harmed are expected to oppose liberalization. For individuals, exposure to globalization through the labor market—including the type of job, firm, or industry—is likely to be an important determinant of individuals’ preferences over policies governing the global economy. To understand the domestic politics of trade with respect to labor, therefore, it is important to ask two key questions. First, what explains the preferences of workers? Broadly, scholars can be divided between those that argue different economic factors (i.e., labor market consequences) explain attitudes toward free trade and those who argue that noneconomic factors (e.g., values, information) are the main drivers of attitudes. Empirical tests of these theories rely on survey data. Second, how do trade pressures influence elections and when do workers’ interests influence policy outcomes? Research on mass politics shows that workers’ interests with respect to trade shape not only support for incumbents in elections but also whether elected officials support free trade. Domestic institutions also play an important role in this process, with research suggesting that democracies and left-leaning governments implement trade policies that are more favorable to workers. Yet trade in the 21st century looks very different from trade 30 years ago. It no longer involves only (or even primarily) the exchange of final goods but also trade in intermediate goods and services. Trade is also closely linked to the production strategies of multinational firms, including offshoring. These fundamental changes in the nature of global economic activity have important implications for the how the interests of workers relate to those of their employers, and by extension the politics of trade. As a result, scholars are increasingly incorporating new models of trade into analysis of politics at the individual and aggregate levels.

Article

The currently extensive land appropriation across Africa signals the most radical shift in the distribution and tenure status of land since colonial times. The first alarms about “land grabs” by foreigners were raised by advocacy groups around 2007–2008. The search for land, always watered land, by foreign agents is driven by concerns about rising food and oil prices, and most of the acquired land is put under food crops, biofuels, and flex crops. The promises of profits from the exceedingly low price of land across Africa, as well as the rising demand for the mentioned crops, have also attracted speculation by private equity funds. With more detailed research on the processes and effects of this shift in rights to (and use of) land, the focus on a “new scramble” by foreign agents has extended to the multiple processes involved in the increasing demand for Africa’s land, internally and externally. The increase in acquisition of land by international agents, not only for cultivation but for minerals, oil, timber, and so forth, exacerbates the accelerating demand for land within African countries by nationals such as salaried, middle-class people and politicians acquiring land for cultivation and for an investment fast increasing in value. The millions of small-scale users of largely “customary” land struggle to derive a livelihood from their smallholdings and access to dwindling and increasingly enclosed common land, including grazing and watering areas. These linkages among local, national, and global dynamics of land acquisition reveal mounting socioeconomic and political inequality across Africa. In addition, research on the land rush reveals competing visions for African agriculture, invoking the debate of large- versus small-scale agricultural futures, a long-standing question of agrarian studies now being asked within much changed political-economic, social, and environmental conditions. Both macro-data and field studies show that most of the foreign acquired land is used for large-scale plantations, some of which include contract farming and outgrower schemes. Although, for a variety of reasons, some large land deals fold, the most recent Land Matrix data show most do move into production. Research on these large-scale projects has shown, however, that most fail to attain the projected aims of providing benefits to the countries and people from which they acquired the land. Most appropriated land was already in productive use by local users rather than “under-utilized” or “waste land” as described in many documents by investors and donors such as the World Bank; there were fewer benefits in the form of employment, higher and sustained income, and lower risk for most laborers, contract farmers, and outgrowers; far less infrastructure (schools, clinics, roads, etc.) built, as promised, for local populations; and output that is either exported or that proves unsuitable for the locales, with lower production value at lower efficiency compared with the land uses before the large-scale projects were put in place. These negative findings have to be set alongside the facts that the investors acquire the land at either extremely low cost (usually lease rather than sale) or even free, and receive tax, import/export and other “incentives.” The failure to benefit the millions of small- to medium-scale users of land, despite the rhetoric of land investors, major donors such as the finance arms of the World Bank Group, and governments facilitating the deals, has emerged as a key problem in light of deepening poverty, and a dearth of sufficient employment to absorb the young population, let alone people “exiting” from the land. Numerous experts conclude that a continued rapid alienation of land, especially to large-scale investors, will exacerbate localized land scarcity, restrict the potential of smallholder-led development, and put unrealistic pressure on the non-farm economy to absorb Africa’s rapidly rising labor force.

Article

The labor market of the 21st century is evolving at a rapid pace, making traditional manufacturing and agricultural jobs increasingly precarious and generating significant pressure for turnover, retraining, and adaptation by workers. Latin America’s labor regulation, adopted in the middle of the 20th century to foster industrial development and incorporate urban workers, has been slow to adapt to these conditions. Its restrictive and costly hiring and firing rules offer stronger protections than in many other parts of the world, but they often apply to a diminishing minority of laborers. Despite a few exceptions, once-strong unions have been hollowed out in the region, and workers have become increasingly atomized in their job seeking. The region’s educational systems are plagued by underinvestment, and they struggle to provide the needed technical skills that could galvanize investment that would provide higher-wage employment. Large segments of the workforce—a majority in most countries—find themselves in the informal sector, in jobs that are not registered with the state and that do not make contributions to pensions and social security systems. Why has Latin America—a region endowed with a variety of natural resources and a resilient entrepreneurial spirit—exhibited these patterns in its labor market regulation? The answer lies in an overlapping nexus of economic and political influences in the region. In this complex mix, one strand of scholarship has documented the lasting and recurrent alliance between organized labor and political parties on the left. Another strand has highlighted the concentrated power of business interests—both local and transnational—that have had the power to shape policies. And a third body of research concentrates on the electoral dynamics that have given rise to a growing set of politically motivated policies that seek to support informal sector workers, but may incentivize their remaining in that status. Finally, considerable attention has been given to the under-resourced state agencies that are not adequately monitoring labor regulations, allowing for widespread evasion of required payroll taxes. A change-resistant cycle has predominated in the region, in which protected insiders in the unionized sectors seek to preserve a set of protections that apply to a shrinking few, while politicians court support among outsiders with direct benefits that address immediate needs but have not yet achieved long-term or intergenerational change. Business interests have largely benefited from the status quo of labor law evasion and social security avoidance, so they have been slow to invest in upgrading the workforce or changing technology that would inspire additional investment in education. Addressing this situation will require efforts at both the political and economic levels, perhaps loosening the partisan ties that lock in preferential policies, as well as increasing the skill levels that would attract higher-tech industries and higher-paying jobs.

Article

Jaime Antonio Preciado Coronado

If Latin American and Caribbean integration arose from the interests of nation-state institutions, linked to an international context where commerce and the global market was the mainframe of the economic development theory, some state and academic actors sought to expand the autonomy of nation-states in negotiating trade agreements and treaties under the paradigm of an autonomous governance of regionalism and economic integration. The autonomous integration initiatives arose between the 1960s and 1980s, before neoliberalism emerged as the sole model of development. However, since the 1990s, neoliberal policies have left little room for autonomous integration. A new period of autonomous integration emerged between the late 1990s and 2015, supported by progressive Latin American governments, along with a novel projection of social autonomy, complementary to autonomous integration, held by new social movements that oppose, resist, and create alternatives to neoliberal integration. Inspired by the critical theory, the research linkages between the state and social autonomy question the neoliberal integration process, its perverted effects on exclusion and social inequality, and the conflicts related to the regional integration of democratic governance. The debates on autonomous regional integration cover three fields: economic interdependence, the realist perspective in international politics, and the theses of the field of International Political Economy. Arguments question their critique of the colonial outcomes of the modern world system, even more so than had been posited by dependency theory. Finally, there is the question of the emergence of an original Latin American and Caribbean theory of autonomous integration initiatives.

Article

In 1991, the Southern Common Market (MERCOSUR) was launched with the aim of fostering regional integration among its four original members—Argentina, Brazil, Paraguay, and Uruguay. MERCOSUR evolved from open regionalism to postliberal regionalism in the course of the first 15 years of the 21st century. The organization has faced several challenges since its inception: internal struggles that result from significant asymmetries between members as well as underlying deficits in the regionalism process and external difficulties in managing MERCOSUR’s relations within the hemisphere and beyond (such as relations with the European Union and China).

Article

Integration attempts in Latin America have historically been linked to the European experience. Transatlantic influence has gone from policy learning through institutional mimicry to direct funding. Modern Latin American regionalism dates back to 1960, when the Central American Common Market and the Latin American Free Trade Association (LAFTA) were founded. Both associations were a response to the creation of the European Economic Community in 1957 and the fear that “Fortress Europe” would cut extra-regional markets off, so alternatives should be developed. The Latin American blocs aspired to overcome the small size of the national markets by fostering economies of scale. Shortly thereafter, European-born, U.S.-based political scientist Ernst Haas—jointly with Philippe Schmitter—put to the test the neofunctionalist theory he had developed for Europe to analyze Central American integration, correctly diagnosing the latter’s limitations and forecasting its setbacks. LAFTA also faltered and failed and, in 1980, the Latin American Integration Association (ALADI by its Spanish acronym) replaced it. A decade later, ALADI would become MERCOSUR’s umbrella organization. After the third wave of democratization, which in Latin America started in 1978, new attempts at regional integration took hold, and MERCOSUR was initially considered as the most successful. Successive leaders of the European Union (EU) nurtured big hopes and devoted a great deal of attention to EU–MERCOSUR relations, first assisting with integration technology, material resources, and intellectual guidance and, since 1995, conducting several rounds of negotiations to strike a trade deal. The path that had led to MERCOSUR resembled that of the EU, as it started in 1985 with functional and sectoral integration (wheat and oil prominently, in place of coal and steel) around the Argentina–Brazil axis. A few years later, in 1991, the binational association was opened up to Paraguay and Uruguay and transformed itself into a typical Balassa-like organization, prioritizing broader market integration over focused sectoral integration—just like the Treaty of Rome had done in Europe. Intra-regional trade tripled during the first seven years, but it later stagnated and never bounced back. As a result, the member states decided to up the rhetorical ante and broaden the areas encompassed by the organization rather than fostering economic interdependence or deepening the level of regional authority. An optional tribunal and a powerless parliament were established in 2002 and 2005 respectively. The outcome was grim: more institutions on paper did not enhance performance in practice. Having exhausted the internal agenda, the external agenda remained the only one where positive developments were still expected. In 2019, after twenty years of bumping negotiations, a political agreement on a comprehensive trade deal was reached with the European Union, MERCOSUR’s role model and largest trade partner. If this agreement is signed and ratified, it will become the largest interregional arrangement ever.

Article

Roberto Dominguez and Marlena Crandall

The EU–Mexico relationship is symbolic of how a determined commitment to cooperation can lead to enduring partnerships between disparate and geographically distant states. The EU and Mexico have gradually institutionalized several frameworks for cooperation through a series of internationally significant agreements. In spite of major asymmetries in their levels of political, social, and economic development, the EU and Mexico have continually formalized their commitment to cooperation: both parties signed the Economic Partnership, Political Coordination and Cooperation Agreement (GA) in 1997 (in force since 2000), the Strategic Partnership (SP) in 2008, and modernization of the GA in 2018. Although the EU and Mexico have had relations since the 1970s, the first two decades of the 21st century have witnessed an intense alignment of policy goals in a variety of economic, political, and social areas, leading to the acceleration of mutual commitments and cooperation between seemingly unlikely partners. The implementation of the 2000 GA has been successful on several fronts: trade expanded, trust grew, and the European investment flow to Mexico increased with few interruptions. Therefore, it was not a lack of success that motivated the GA modernization process, but external global transformations and a relationship that had outgrown its defining framework. External global transformations—such as the rapid technological revolution, the subtly shifting international balance of power, and the degradation of the neoliberal economic model—required a more responsive agreement with updated legal frameworks. Further, the limitations of the original GA with respect to trade and economic imperatives required the inclusion of several new articles to address the expanded digital and service-based economies. With respect to political coordination and cooperation, the revised GA incorporated more disciplines into the formal High-Level Dialogues, and addressed a broadened international agenda increasingly focused on regulation, sustainability, and environmental concerns. While the EU–Mexico relationship is characterized by an entrenched belief in institutionalized, regular, and productive cooperation mechanisms, both parties agreed to modernize the GA in the late 2010s. The decades-long commitment to this ethos, despite their highly disparate starting point, is poised to promote several more decades of cooperation with the conclusion of the modernized Agreement in 2018.

Article

J. Paul Dunne and Nan Tian

The literature on military spending and growth has become extremely large and diverse and has reached no clear consensus. This lack of consensus should not be unexpected, because there are a number of issues that make the empirical analysis of the relationship difficult to undertake and make it difficult to identify the particular impact of military spending on growth. Some of these issues have had relatively little attention in the literature. The historical context can affect the military spending and growth relation, so there is no reason not to expect different results for different periods. There are various theoretical perspectives that can be used in any analysis and numerous channels through which military spending can affect growth, which means that studies can differ in how they specify the models. In estimating models, a range of econometric techniques have been used, which can affect the results. There also remain issues of identification that present problems for empirical analysis. The observed correlation between output and military expenditure is likely to be negative if the system is driven by strategic shocks and positive if it is driven by economic shocks. Improved military spending data and the existence of some shocks, such as the end of the Cold War, is helping in dealing with identification, but it still remains a concern. Overall, more recent studies show that, in general, it is much more likely that military spending has a negative effect on economic growth than was evident in the past. The issues involved in undertaking any empirical analysis on military spending and growth mean that the debate is likely to continue.

Article

Multilevel governance (MLG) as a research approach has mostly been applied to explain governance issues surrounding the European Union or international organizations. As a general research framework in the area of international relations (IR) theory, however, MLG has widely been underutilized, despite the many advantages that the approach offers in the empirical investigation of an increasingly complex international or global system. There are key concepts, assumptions, and definitions of MLG that focus separately on levels and governance as key elements of the approach and its interdisciplinary lineage. Some contested IR concepts include sovereignty, the nation-state, the international system, anarchy, agency, and levels of analysis. These IR concepts benefit from the application of an MLG framework by enabling the use of an interdisciplinary and multimethodological, yet systematically comprehensive, approach—which allows for nuanced use of these concepts. Other areas that benefit from IR methodologies applied in MLG research are methodological toolkits with a special focus on the areas of global governance, security studies, and international political economy.

Article

“A Marriage of Convenience” became the best metaphor, coined in 1990 by distinguished American economist Sidney Weintraub to summarize the fundamentals under which NAFTA was built and understood, at least in mainstream analysis: the economic complementarities existing among the three countries of North America could work to the benefit of everyone involved if economic integration is well managed and geared toward the improvement of regional competitiveness. Thus, NAFTA became the privileged tool under which managed integration became implemented and assessed, at least in three major domains: as a foreign policy tool to advance the interests of each nation, as an economic device to reap the benefits of integration, and as the backbone under which a regional political and social bloc could eventually be constructed. Scholars, intellectuals, and public officials engaged in the discussions around NAFTA in each of those fields shared ideas, built some consensus, and split on dissents following competing approaches and/or national cleavages. The current literature in those three major fields of discussion is rich, voluminous, and highly inspiring, sometimes making references to other integrative experiences. This article reviews these debates and highlights either the consensus or dissention witnessed in each of the three domains under which NAFTA has been discussed the most. Since NAFTA cannot be separated from the political and social contexts that the debates and discussions took place in, a reference to those political contexts can be made when explaining and summarizing the debates. At a time when the mainstream consensus around NAFTA is being challenged by U.S. President Trump’s assumption that NAFTA is not about complementary economies but about economies competing against each other under a zero-sum game rationale, politics comes back to the forefront of North American affairs. The renegotiation of NAFTA will doubtless redefine the partnership among the three North American countries and the role that economic cooperation and integration entails for each.

Article

Recent discoveries of oil in some African countries have rekindled a debate about its place in development and international politics. The debate has pitched those viewing oil as a catalyst for development and a more assertive Africa in global politics against others who point to the negative impact of oil on older established African oil-producing states. Oil as a highly priced geopolitical and strategic commodity will for the foreseeable future shape relations between African petro-states and other global actors, particularly international oil companies and energy-dependent established and emerging global powers. The structural position of specific African petro-states in the global political economy and history, and the nature of their leadership, are defining factors in the diverse aspects of local and international politics, including the prospects for development and a more assertive Africa in international politics.