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Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The EU claims that its free trade agreements with regional organisations of developing countries can promote the respective regions' integration into the world economy. Taking as case studies EU negotiations with the Southern African Development Community and Mercosur, the paper argues that the EU and its partners have different conceptions of integration into the world economy. For the EU the latter simply means multilateral trade liberalisation under the wto, while, for its partners, it involves increasing industrial production and exports of manufactured products. If the latter notion is accepted, an fta with the EU should increase European foreign direct investment into the region or at least increase their trade surpluses, thus increasing the resources available for support of local firms. The paper argues that an fta with the EU will not be likely to produce these results; thus the fta will simply be an instrument to promote market access for EU firms. [ABSTRACT FROM AUTHOR]

Over the last decade, essentially since the Asian crisis of 1997-98, the economic integration of Northeast Asia has been marked by three overarching trends. Economic relations have become: 1) more institutionalized; 2) more "Asian;" and 3) more China-centric. These macro-trends are demonstrated and analyzed in the paper. But by way of anticipation, numerous counter-cutting facts need also to be kept in mind. In essence, recent trends, notable as they are, have by no means reversed three counter-realities: 1) economic ties are still largely driven, less by governments and formal arrangements, than by corporations in search of profits and production efficiencies; 2) despite growing economic interdependence across Northeast Asia and between that sub-region and Southeast Asia, Japan, China and South Korea remain heavily linked to global, and particularly US, markets; and 3) though China is an ever important hub in Northeast Asian trade and investment, Japan remains by far the most powerful economic player in the region. [ABSTRACT FROM AUTHOR]

This paper examines a two-country dynamic general equilibrium model with status-seeking agents. We show that the introduction of status-seeking behavior brings about new properties in equilibrium dynamics. While there exists a continuum of steady states in the standard dynamic models, the present framework demonstrates that, under some conditions, there uniquely exists an incompletely specialized steady state, which is locally saddle-point stable. Therefore, catching-up and overtaking phenomena seen in economic development can be explained, and comparative statics analysis also is made possible. Our comparative statics analysis illustrates, for example, that trade pattern is determined in the Heckscher–Ohlin manner; the patient country acts just like a capital abundant one to export the capital-intensive good. Furthermore, as distinct from the existing literature, the present study shows that the existence of an incompletely specialized steady state can be ensured even if the two countries conduct different policies. [ABSTRACT FROM AUTHOR]

This paper briefly reviews the economic performance of China's economic reform starting in 1978, and which it presents personal views on the experiences of Korea's economic development and lessons for China's economic reform. The paper reviews the China-Korea economic relationship, and explores both the opportunities of China's economic development for Korea and the prospects for Bilateral Economic cooperation. It is estimated that the Chinese economy will maintain dynamic growth for the coming decade. The 2008 Olympic Games and the 2010 World Expo in China will provide further impetuses for Chinese economic development. China's huge market and its rapid economic growth can help the further recovery and development of the Korean economy. At the same time, the further development of the Chinese economy can benefit from financial, technical and managerial support from Korea. The complementarities between the industrial structures of China and Korea will surely push their future economic cooperation into a broader and deeper stage. Bilateral trade will enhance the competitiveness of both nations in the global market and help them achieve mutual prosperity and development. (Edited by Xinyu Fan) [ABSTRACT FROM AUTHOR]

India's spectacular growth in the last 15 years and its increasing integration into the world economy should have influenced the country's foreign policy goals away from the isolationist stance of former times. The government should also have become more interested in the distributional effects of global integration, become more assertive in demanding influence within global governance institutions and more sensitive to the demands of domestic interest groups affected by the actions of other countries. This is indeed the case, as we aim to show in this article. The government is still insulated to a certain but declining degree against the influence of specific interest groups on foreign policy strategies, however. Redistribution at the domestic, regional and international levels is a concern of the political elite, but activities at the domestic level target those important as voter groups more than those affected by globalisation. Regional activities are only partly proactive, while those at the global level do not challenge the existing international economic order but mostly intend only to carve out a better position for India itself. [ABSTRACT FROM PUBLISHER]

This paper examines the global imbalances in two eras of globalization. The main focus is on the medium-run factors that determine the current account balances. The results suggest that relatively rich countries with developed financial markets, high quality institutions and high proportion of dependent persons tend to run current account deficits (or lower surpluses) in both periods. On the other hand, the high initial level of net foreign assets increases the current account balance. This holds especially in the prewar period. The government budget balance has a positive effect on the current account balance in some instances. In the prewar period, the government budget balance plays the role only in the short-run, suggesting the importance of the short-run fluctuations in the current account balance. The twin deficits hypothesis plays a more important role in the second era of the globalization. However, it holds only for developing countries. These results suggest that the twin deficit hypothesis and the global savings glut hypothesis are not mutually exclusive. [ABSTRACT FROM AUTHOR]

Vietnam has been successful in attracting substantial foreign direct investment (FDI) inflows. The foreign-invested sector is an important engine of economic growth for Vietnam. The first part of the article profiles Vietnam's experience in attracting FDI since the late 1980s, and identifies the factors that lay behind a subsequent contraction in FDI inflows during the latter half of the 1990s. The second part identifies areas where Vietnam might improve its attractiveness to foreign investors, and thereby better harness overseas capital for sustained economic development and poverty reduction. This necessitates moving away from incremental adjustments to the FDI regime itself, and adopting a more holistic approach to the design and implementation of a conducive host country business environment, which benefits both local and overseas investors alike. Many of the lessons learnt by Vietnam are pertinent to other developing and transitional economies seeking to harness FDI for economic development and poverty reduction. [ABSTRACT FROM AUTHOR]

Taiwan has had to conduct a foreign economic policy (FEP) within a constricted international space given the island's "contested statehood" predicament. While the dynamic nature of Taiwan's newly industrialized economic development and the government's "resourceful" economic diplomacy strategies have provided Taipei with increasing room for FEP maneuvers, the "mainland China" factor continues to loom large. This paper contends that the People's Republic of China (PRC) exerts orientating gravitational forces upon Taiwan's FEP that are growing in strength. These forces comprise two main aspects. The first concerns the gravitational pull of the PRC economy upon Taiwan's economy that centers on the burgeoning growth of cross-Strait commerce and the ever more palpable transnational economic space this interaction is creating. Here, Taipei must primarily weigh the risks and benefits of further economic integration with mainland China. The second aspect relates to the domain of economic diplomacy, where Taiwan must navigate in a wider international economic system in which the PRC is exerting increasingly powerful economic and political gravitational forces. Discussion on this broad issue is examined in the context of Taiwan's pursuit of economic security in the international system. [ABSTRACT FROM AUTHOR]

The article focuses on the paper "Toward a New International Economic System," by Keizai Doyukai and Committee for Economic Development. Much of this joint statement by the CED and Keizai Doyukai essentially restates their traditional progressive economic philosophies: liberalization of trade, freedom of international movement of capital, greater aid to developing nations and so forth. Of chief interest therefore are those parts, which indicate current priorities and areas of differences in views. Two points set the outlook of the statement in perspective. First, the general requirement is for a new economic system that accommodates the rapidly changing economic relations among countries. Second, neither the important differences in the trade and domestic economic policies of the two countries nor the serious clashes of economic interest that still exist should be minimized. The issue of internal verses external effects of government polices recognized as central by presenting it as the first item under "Basic Principles."

In identifying the determinants of Australia's foreign aid relationship with developing countries (sometimes labelled 'the South'), this article examines the institutional history of official Australian development assistance since the Second World War. Several, often competing, narratives are delineated. These include: an ongoing questioning within the aid 'policy community', such as it is, of the purpose of foreign aid and the nature of its relationship to foreign policy; bureaucratic contestation over access to foreign aid resources; the desire of Australian foreign aid decision-makers to ensure their control, increasingly via managerialist methods, of aid delivery; and an avoidance by decision-makers of viewing the South as a politically relevant entity. Taken together, these narratives portray an aid programme that has become more 'professionalised' over time, but which finds itself institutionally inhibited from engaging meaningfully with the political nature of international development relationships. [ABSTRACT FROM AUTHOR]

More than three years after its adoption, is the Paris Declaration on Aid Effectiveness living up to its ambitions? This chapter presents some answers to this question. It draws on the most recent evidence available, including the results of the 2008 Survey on Monitoring the Paris Declaration, the international Evaluation of the Implementation of the Paris Declaration and the Progress Report. This chapter shows that there is a robust body of evidence that the Paris Declaration is making progress, but not fast enough. Donors and partner countries need to gear up their efforts if we are to meet international commitments and targets for effective aid by 2010. The Paris Declaration has wide political resonance; its implementation requires high-level political commitment to generate the kind of traction that is still needed to deliver results. [ABSTRACT FROM AUTHOR]

The European Neighbourhood Policy (ENP) is modelled on the institutional and procedural experience of the EU's eastward enlargement, although it explicitly excludes a membership perspective. It thus aims to define an alternative incentive for domestic reform in neighbouring countries, referred to as 'a stake in the internal market'. This article suggests that the ENP amounts to a form of 'conditionality-lite' for non-candidate countries. Within the ENP the key defining elements of conditionality - clear incentive and enforcement structures - are vague for both the EU and its neighbouring countries. Thus, the ENP is conceptually and empirically weak when measured against a simple, rationalist conditionality model. In line with the alternative understanding of conditionality as a process rather than a clear-cut variable, the main function of the ENP is twofold: it provides an external reference point which domestic political actors in the ENP countries can choose to utilise when it fits their agenda (both pro-EU or anti-EU); and a loose framework for socialisation. This process of socialisation involves both the EU and the ENP countries. Through an analysis of the ENP process in Ukraine and Moldova it concludes that while the ENP tries to prevent a repeat of the EU's 'rhetorical entrapment' in further eastward enlargement, it paradoxically paves the way for a 'procedural entrapment' in ENP countries that harbour membership aspirations and provides a momentum, though not a guarantee, for conflict resolution. [ABSTRACT FROM AUTHOR]

The article focuses on the growing relations of India with Africa by evaluating the factors that motivate India's increasing relations with Africa. According to the author, the engagement of India with Africa was motivated by its border dispute with China in 1962. It reveals that India has supported the liberation struggles in southern Africa and also expand the economic cooperation with participation of Indian settlers. Moreover, it was noted that evolving engagement of India across the continent was captured through its growing trade relations with Africa.

International aid has been a significant element both in economic development and international politics since 1945, but has been insufficiently integrated in the discipline of history. The present article discusses the main problems of method, sources and discourse in the field of aid history, based on the recently published three-volume history of Norwegian development aid. The shifting conjunctures of aid are seen in relation to main paradigm changes in development theory. It is emphasized that history is not a macro-evaluation, but that it provides a basis for reflection, in this as in other fields. [ABSTRACT FROM AUTHOR]

This article argues that the Japanese nation-state has been building institutional capacity in Southeast Asia to foster, in effect, the regionalization of the Japanese developmental state, or a governed interdependence of the Japanese state, ASEAN member states and Japanese capital throughout the region.

The Millennium Development Goals (MDGs) are driving the development agenda through strategies for improved results. Countries in most of Asia and northern Africa are largely on track for the goals; West Asia, the Caribbean and Latin America are progressing on education but less so on poverty; and most of the least developed countries, notably in sub-Saharan Africa, have made little progress in the 1990s. Prevention of violent conflict and building lasting peace are essential to achieving the MDGs. DAC work on peace and security is helping development agencies address this key dimension of the Millennium Declaration. The increased focus on results is also driving DAC work - with its partners - to improve the effectiveness of development assistance through harmonising donor practices, aligning with country strategies and systems, and providing predictable financing. But good practice has yet to become general practice. [ABSTRACT FROM AUTHOR]

The article discusses the impact of science education on economic development's trend, relationship and research in the U.S. It points out that globalization and international economic competition are the factors that contribute to the establishment of a competitive edge. The significance of understanding science education, as a necessary training for the workers in an economy integrated into the global market, is the basis of national and international policies of education, development and science. Moreover, it discusses comparative studies on the links between science education and economic development.

This article discusses the book "Papua New Guinea: Economic Situation and Outlook," by Leslie Stein. This book presents a detailed account of the recent developments in, and prospects for, the Papua New Guinea economy. The book discusses international economic relations, covering exports, imports and protection, the balance of payments, foreign debt, and exchange rate management in the country. It also analyzes the manufacturing, services, and tourism sectors. Overall the book considers the prospects for the world economy and for Papua New Guinea.

Although much bilaterally supported international agricultural research was conducted prior to 1972, only with the formation of the Consultative Group for International Agricultural Research (CGIAR) did a co-ordinated research programme funded by a number of agencies (national, development banks, UN and charitable) become a reality. Four existing institutes (IRRI, CIMMYT, IITA and CIAT) were initially accepted for funding, and in the course of the next seven years ICRISAT, CIP, ILRAD, IBPGR (now IPGRI), WARDA, ILCA, ICARDA, ISNAR and IFPRI were added. A brief period of consolidation occurred between 1979 and 1991, but in 1991–92 five more institutes (ICRAF, IIMI, INIBAP, ICLARM and CIFOR) became part of the system, quickly reduced by two by absorbing INIBAP into IPGRI, and merging ILCA and ILRAD to become ILRI. There are also several internationally funded institutes not of the CGIAR but associated with it, and strangely referred to as the non-associated centres, including AVRDC, IBSRAM, ICIMOD, ICIPE and IFDC. The CGIAR programme has become increasingly large and diverse. Plant breeding and crop and animal production still form the major components, together accounting for 40 per cent of the budget. Studies of economic policy and the strengthening of national agricultural research systems (NARS) through training and in other ways, have always been an important component of the CGIAR programme, although receiving little publicity. They have grown in importance as the system has developed. More recently increasing attention has been given to the environment, sustainability and biodiversity, and to the difficulties that an international system encounters in dealing with the ‘location specificity’ of many of the problems studied. ‘Ecoregional’ and ‘systemwide’ initiatives have become part of the research agenda. Perhaps most importantly a serious attempt is now being made to come to grips with the location specificity problem through the ecoregional initiatives. This requires greater collaboration between the CGIAR centres, and the many other partners in national and international agricultural research. © 1997 by John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The record of the international development effort over the past half-century has generally been disappointing—success in east Asia, failure in Africa and limited success in countries containing the majority of the people of the developing world. After 45 years well over a billion people still live in abject poverty. This reflects failure to achieve and sustain rapid growth, which in turn reflects the statist, protectionist policies followed in the majority of developing countries from the 1950s to the 1980s. Official aid and the influence of international agencies encouraged these policies. In the 1980s and early 1990s, a revolution in thinking has led most of Asia and Latin America to market-based policies which have increased growth rates substantially in many countries. The extreme view that aid is inconsistent with the market philosophy is wrong, but the new policy consensus, together with the huge increase in flows of private capital, do raise important questions about the role of aid. It is important to recognize that aid can do harm and is not validated merely by good intentions. The principles which should govern aid need to be reformulated. Aid should be basically concerned with helping countries to run efficient market economies and should take two main forms: assistance to the state to enable it to play its proper role in a market economy, and to the private sector to enable it to lead economic growth in conditions where markets often work imperfectly. Both forms of aid should be subject to strict disciplines. © 1997 by John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The article discusses the challenges of globalization and regionalization in the world economy. The section evaluates the processes of the globalization and regionalization of the world economy and the position of different groups of countries. It focuses on the anatomy of globalization and regionalization processes, their historical basis and current manifestations. It deals with what is common and what is not in the processes of globalization and regionalization. It provides special attention to small countries and their options in adapting to such processes.

The U.S. administration has been reviewing and arguing about how this complex, interconnected relationship with the developing nations can be managed. First, the U.S. must adopt a positive and constructive attitude in addressing international problems encompassing the developing countries. Americans will seek common ground with these countries, for progress will only be possible when solutions are mutually beneficial to all parties. Second, the U.S. will recognize in the actions that interdependence requires its people, as they fashion their domestic policies, to take into account their impact on the rest of the world, including the Third World. Third, the structure of the international system is changing, gradually evolving from a "North" and a "South" into a global community in which all countries have responsibilities as well as rights. Fourth, while the policies must be global in their concept, their implementation must be specific to each situation. Fifth, the U.S. accepts the diverse models of economic and political development that the less developed countries have chosen to benefit their peoples.