Regulatory theory assumes that national governments seek to constrain undesirable firm behavior, either through direct governmental oversight, or through oversight delegated to non-governmental organizations. We reverse that assumed relationship with the first study investigating when and how certain for-profit businesses of international scope constrain undesirable national government behavior. We ground our study in transnational regime theory explaining when and how for-profit firms position themselves as private regulators, and political budget cycle theory explaining when national governments are more likely to violate regulatory policies and respond to private regulatory enforcement by these for-profit firms. We document empirical support for our framework through analyses of sovereign credit ratings published by major credit rating agencies (CRAs) and borrowing by 63 national governments holding 111 executive elections from 2001-2011. Governments borrow less excessively during election years when CRAs put them on watch for a sovereign rating downgrade, which hurts re-election prospects in the short term and raises national borrowing costs in the longer run. Our study suggests new avenues of management research investigating when other for-profit firms (e.g., insurance firms) are more likely to constrain undesirable government behavior, and new avenues of public policy research aimed at using for-profit firms to discipline developing country governments (e.g., Cape Verde) trying to maintain responsible fiscal policies as they democratize.
{"title":"Reverse Regulation? National Political Budget Cycles and the Moderating Power of Transnational Rating Agencies","authors":"Marek Hanusch, Paul M. Vaaler","doi":"10.2139/ssrn.3446380","DOIUrl":"https://doi.org/10.2139/ssrn.3446380","url":null,"abstract":"Regulatory theory assumes that national governments seek to constrain undesirable firm behavior, either through direct governmental oversight, or through oversight delegated to non-governmental organizations. We reverse that assumed relationship with the first study investigating when and how certain for-profit businesses of international scope constrain undesirable national government behavior. We ground our study in transnational regime theory explaining when and how for-profit firms position themselves as private regulators, and political budget cycle theory explaining when national governments are more likely to violate regulatory policies and respond to private regulatory enforcement by these for-profit firms. We document empirical support for our framework through analyses of sovereign credit ratings published by major credit rating agencies (CRAs) and borrowing by 63 national governments holding 111 executive elections from 2001-2011. Governments borrow less excessively during election years when CRAs put them on watch for a sovereign rating downgrade, which hurts re-election prospects in the short term and raises national borrowing costs in the longer run. Our study suggests new avenues of management research investigating when other for-profit firms (e.g., insurance firms) are more likely to constrain undesirable government behavior, and new avenues of public policy research aimed at using for-profit firms to discipline developing country governments (e.g., Cape Verde) trying to maintain responsible fiscal policies as they democratize.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"62 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130538668","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
German Abstract: Um das Wachstum und die Wettbewerbsfahigkeit Europas zu verbessern und das Risiko weiterer Finanzkrisen zu verringern, sind unterschiedliche Varianten gemeinsamer Anleihen in Diskussion. Eine gemeinsame Haftung macht aus deutscher Sicht dann Sinn, wenn die Verwendung der Mittel ebenfalls in einem gemeinsamen Haushalt in den bestehenden demokratischen Gremien der EU entschieden wird. Durch die notwendige Einstimmigkeit im Rat der EU bei Budgetfragen ist auch eine Begrenzung des Schuldenwachstums und des damit verbundenen systemischen Risikos moglich. Durch die erweiterte Verantwortung wurde die Bedeutung der europaischen demokratischen Prozesse in den Augen der Burger steigen. English Abstract: To improve European growth and competitiveness and to reduce the risk of further financial crises, several options for common bonds have been suggested. A joint liability makes sense from the German viewpoint if the collected funds are used for a joint budget that is decided in the normal EU budget process. The necessary unanimity in the Council of the EU for budget issues limits the debt growth and the accompanying systemic risk. The importance of European democratic governance would be strengthened by this enhanced responsibility in the eye of European citizens.
{"title":"Wie Eurobonds Sinn machen könnten (How Eurobonds Could Make Sense)","authors":"Peter Schwendner","doi":"10.2139/ssrn.3390682","DOIUrl":"https://doi.org/10.2139/ssrn.3390682","url":null,"abstract":"German Abstract: Um das Wachstum und die Wettbewerbsfahigkeit Europas zu verbessern und das Risiko weiterer Finanzkrisen zu verringern, sind unterschiedliche Varianten gemeinsamer Anleihen in Diskussion. Eine gemeinsame Haftung macht aus deutscher Sicht dann Sinn, wenn die Verwendung der Mittel ebenfalls in einem gemeinsamen Haushalt in den bestehenden demokratischen Gremien der EU entschieden wird. Durch die notwendige Einstimmigkeit im Rat der EU bei Budgetfragen ist auch eine Begrenzung des Schuldenwachstums und des damit verbundenen systemischen Risikos moglich. Durch die erweiterte Verantwortung wurde die Bedeutung der europaischen demokratischen Prozesse in den Augen der Burger steigen. \u0000 \u0000English Abstract: To improve European growth and competitiveness and to reduce the risk of further financial crises, several options for common bonds have been suggested. A joint liability makes sense from the German viewpoint if the collected funds are used for a joint budget that is decided in the normal EU budget process. The necessary unanimity in the Council of the EU for budget issues limits the debt growth and the accompanying systemic risk. The importance of European democratic governance would be strengthened by this enhanced responsibility in the eye of European citizens.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125017292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study assesses linkages between social media and governance dynamics in 49 African countries for the year 2012. The empirical evidence is based on ordinary least squares and quantile regressions. Ten bundled and unbundled governance dynamics are used, notably: (i) political governance (entailing “voice & accountability” and political stability/no violence); (ii) economic governance (involving regulation quality and government effectiveness); (iii) institutional governance (comprising the rule of law and corruption-control) and (iv) general governance (entailing political, economic and institutional governance). Social media is measured with Facebook penetration. The findings show that Facebook penetration is positively associated with governance dynamics and these positive nexuses differ in terms of significance and magnitude of significance throughout the conditional distribution of the governance dynamics.
{"title":"Governance and Social Media in African Countries: An Empirical Investigation","authors":"S. Asongu, N. Odhiambo","doi":"10.2139/ssrn.3271787","DOIUrl":"https://doi.org/10.2139/ssrn.3271787","url":null,"abstract":"This study assesses linkages between social media and governance dynamics in 49 African countries for the year 2012. The empirical evidence is based on ordinary least squares and quantile regressions. Ten bundled and unbundled governance dynamics are used, notably: (i) political governance (entailing “voice & accountability” and political stability/no violence); (ii) economic governance (involving regulation quality and government effectiveness); (iii) institutional governance (comprising the rule of law and corruption-control) and (iv) general governance (entailing political, economic and institutional governance). Social media is measured with Facebook penetration. The findings show that Facebook penetration is positively associated with governance dynamics and these positive nexuses differ in terms of significance and magnitude of significance throughout the conditional distribution of the governance dynamics.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"89 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114846136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ecological consumer behavior contributes to environmental protection and influences corporate management strategy and public policy coping with global warming and climate change (Barr & Shaw, 2013; Leiserowitz et al., 2014). Korean consumers show a relatively high profile of environment-friendly purchase behavior and other daily life decisions (OECD, 2014; OECD, 2011, Ramme et al., 2015). Korea is a densely populated country. Korean corporations maintain significant global presence in the consumer goods marketplace. Thus, sustainable development is prioritized in the public policies in Korea.
生态消费者行为有助于环境保护，并影响企业应对全球变暖和气候变化的管理策略和公共政策(Barr & Shaw, 2013;Leiserowitz et al.， 2014)。韩国消费者在环保购买行为和其他日常生活决策方面表现出相对较高的关注度(OECD, 2014;OECD, 2011, Ramme等人，2015)。韩国是一个人口稠密的国家。韩国企业在全球消费品市场上保持着重要的地位。因此，可持续发展在韩国的公共政策中处于优先地位。
{"title":"Consumer Attitude and Behavior on Green Packaging in Korea","authors":"S. Choi","doi":"10.2139/ssrn.2717036","DOIUrl":"https://doi.org/10.2139/ssrn.2717036","url":null,"abstract":"Ecological consumer behavior contributes to environmental protection and influences corporate management strategy and public policy coping with global warming and climate change (Barr & Shaw, 2013; Leiserowitz et al., 2014). Korean consumers show a relatively high profile of environment-friendly purchase behavior and other daily life decisions (OECD, 2014; OECD, 2011, Ramme et al., 2015). Korea is a densely populated country. Korean corporations maintain significant global presence in the consumer goods marketplace. Thus, sustainable development is prioritized in the public policies in Korea.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125820535","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Effective taxation is essential for achieving sustained growth in third world countries as many lack adequate financial resources to provide basic public goods. Advice from international development agencies has recently shifted away from the Washington Consensus towards a model that stresses institutional building and contextualized tax policy-making and implementation. Against that backdrop, this essay reviews the tax reforms in China for the past three decades, explores their structural determinants, and attempts to draw lessons for the least developed countries seeking to strengthen their extractive capacity. The review indicates that in reforming its tax system, the Chinese government engages in constant pluralistic learning, target setting and making incremental changes based on trial and error. The Chinese model of tax reform, however, may not be broadly transferrable as most other developing countries do not share its structural premise. Moreover, the model loses much of its glamour if examined from a comparative perspective. Nonetheless, the Chinese experience sheds light on several key questions regarding tax reforms in the least developed countries such as the role of the state, the importance of timing, and priority setting in institutional building.
{"title":"A Chinese Model for Tax Reforms in Developing Countries?","authors":"Ji Li","doi":"10.2139/ssrn.2603510","DOIUrl":"https://doi.org/10.2139/ssrn.2603510","url":null,"abstract":"Effective taxation is essential for achieving sustained growth in third world countries as many lack adequate financial resources to provide basic public goods. Advice from international development agencies has recently shifted away from the Washington Consensus towards a model that stresses institutional building and contextualized tax policy-making and implementation. Against that backdrop, this essay reviews the tax reforms in China for the past three decades, explores their structural determinants, and attempts to draw lessons for the least developed countries seeking to strengthen their extractive capacity. The review indicates that in reforming its tax system, the Chinese government engages in constant pluralistic learning, target setting and making incremental changes based on trial and error. The Chinese model of tax reform, however, may not be broadly transferrable as most other developing countries do not share its structural premise. Moreover, the model loses much of its glamour if examined from a comparative perspective. Nonetheless, the Chinese experience sheds light on several key questions regarding tax reforms in the least developed countries such as the role of the state, the importance of timing, and priority setting in institutional building.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126810618","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This note examines the issue of foreign legal representation in arbitral proceedings. This is done within the precincts of the broader issue of the benefits and likely detriments of a liberalized legal regime. The need for an evaluation of whether an emerging economy, which seeks to attract and retain foreign investments, should embrace international best practices in its legal system has never been more important. The right to legal representation of choice is well accepted and provided for by international arbitral instruments and even national legislations of leading arbitration jurisdictions. This note examines various international instruments, arbitral rules, national legislations; and also the policy considerations of various protectionist and liberal jurisdictions. It establishes that more jurisdictions have liberalized or are taking steps towards the liberalization of their legal services sector, particularly as it relates to arbitration. It concludes with a recommendation that emerging economies will achieve a cohesion in their economic and development policies, if they embrace a liberal approach, not just in the area of foreign legal representation but also in their legal services sector as a whole.
{"title":"Foreign Legal Representation in Arbitral Proceedings: The Case for a Liberalized Legal Services Sector in Emerging Economies","authors":"Ikemefuna Stephen Nwoye","doi":"10.2139/ssrn.2595844","DOIUrl":"https://doi.org/10.2139/ssrn.2595844","url":null,"abstract":"This note examines the issue of foreign legal representation in arbitral proceedings. This is done within the precincts of the broader issue of the benefits and likely detriments of a liberalized legal regime. The need for an evaluation of whether an emerging economy, which seeks to attract and retain foreign investments, should embrace international best practices in its legal system has never been more important. The right to legal representation of choice is well accepted and provided for by international arbitral instruments and even national legislations of leading arbitration jurisdictions. This note examines various international instruments, arbitral rules, national legislations; and also the policy considerations of various protectionist and liberal jurisdictions. It establishes that more jurisdictions have liberalized or are taking steps towards the liberalization of their legal services sector, particularly as it relates to arbitration. It concludes with a recommendation that emerging economies will achieve a cohesion in their economic and development policies, if they embrace a liberal approach, not just in the area of foreign legal representation but also in their legal services sector as a whole.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"113 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123652283","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Global regulatory cooperation, or cooperation among domestic regulators beyond national borders, is becoming a dominant feature in 21st century international relations. It has, however, drawn criticism for its accountability deficits. The literature has focused, by and large, on measures to improve accountability at the international level. This article argues that domestic administrative law too has a role in improving accountability. Moreover, in light of the gap between administrative law in its traditional form and the reality of regulatory cooperation (and the consequent new challenges to accountability), administrative law needs to adapt. The article proposes four areas where such adaptation could take place: setting “bottom up” procedures, statutory authorization, oversight mechanisms and procedures for incorporating global regulation. Applied to the case of regulatory networks in the medical field, the article demonstrates how this approach has already started manifesting itself in practice in the U.S. and EU, and points to general trends.
{"title":"The Accountability of Global Regulatory Cooperation: What Role for Domestic Adminsitrative Law? The Case of Medical Products","authors":"Ayelet Berman","doi":"10.2139/SSRN.2815347","DOIUrl":"https://doi.org/10.2139/SSRN.2815347","url":null,"abstract":"Global regulatory cooperation, or cooperation among domestic regulators beyond national borders, is becoming a dominant feature in 21st century international relations. It has, however, drawn criticism for its accountability deficits. The literature has focused, by and large, on measures to improve accountability at the international level. This article argues that domestic administrative law too has a role in improving accountability. Moreover, in light of the gap between administrative law in its traditional form and the reality of regulatory cooperation (and the consequent new challenges to accountability), administrative law needs to adapt. The article proposes four areas where such adaptation could take place: setting “bottom up” procedures, statutory authorization, oversight mechanisms and procedures for incorporating global regulation. Applied to the case of regulatory networks in the medical field, the article demonstrates how this approach has already started manifesting itself in practice in the U.S. and EU, and points to general trends.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127314412","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The concept of permanent establishment ("PE") has gained considerable importance with the growing trend of globalization. The concept of a PE is important for several Articles of the Convention and the concept or its cognate, also appears in the domestic laws of some countries. For example, in India we have the concept of ‘business connection’ ("BC").BC is the Indian equivalent of PE. It is much wider in connotation and has been very effectively used by the revenue authorities to tax the income of non-residents in India. Despite being referred to in the Income Tax Act, 1961 ("ITA"), the term was not defined till the Finance Act, 2003 inserted a somewhat cryptic explanation to Section 9 of the Indian Income Tax Act, 1961. This paper is an attempt to understand the concept of business connection and permanent establishment and its implications.
{"title":"Implication of Business Connection and Permanent Establishment","authors":"L. Kumar","doi":"10.2139/SSRN.2429137","DOIUrl":"https://doi.org/10.2139/SSRN.2429137","url":null,"abstract":"The concept of permanent establishment (\"PE\") has gained considerable importance with the growing trend of globalization. The concept of a PE is important for several Articles of the Convention and the concept or its cognate, also appears in the domestic laws of some countries. For example, in India we have the concept of ‘business connection’ (\"BC\").BC is the Indian equivalent of PE. It is much wider in connotation and has been very effectively used by the revenue authorities to tax the income of non-residents in India. Despite being referred to in the Income Tax Act, 1961 (\"ITA\"), the term was not defined till the Finance Act, 2003 inserted a somewhat cryptic explanation to Section 9 of the Indian Income Tax Act, 1961. This paper is an attempt to understand the concept of business connection and permanent establishment and its implications.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"76 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127249360","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Freedom of expression in general, and media development in particular, are core to UNESCO’s constitutional mandate to advance ‘the mutual knowledge and understanding of peoples, through all means of mass communication’ and promoting ‘the free flow of ideas by word and image.’ For UNESCO, press freedom is a corollary of the general right to freedom of expression. Since 1991, the year of the seminal Windhoek Declaration, which was endorsed by our Member States, UNESCO has understood press freedom as designating the conditions of media freedom, pluralism and independence, as well as the safety of journalists. It is within this framework that this report examines progress as regards press freedom, including in regard to gender equality, and makes sense of the evolution of media actors, news media institutions and journalistic roles over time.The overarching global trend with respect to media freedom, pluralism, independence and the safety of journalists over the past several years is that of disruption and change brought on by technology, and to a lesser extent, the global financial crisis. These trends have impacted traditional economic and organizational structures in the news media, legal and regulatory frameworks, journalism practices, and media consumption and production habits. Technological convergence has expanded the number of and access to media platforms as well as the potential for expression. It has enabled the emergence of citizen journalism and spaces for independent media, while at the same time fundamentally reconfiguring journalistic practices and the business of news.The broad global patterns identified in this report are accompanied by extensive unevenness within the whole. The trends summarized above, therefore, go hand in hand with substantial variations between and within regions as well as countries.
{"title":"World Trends in Freedom of Expression and Media Development","authors":"Courtney C. Radsch","doi":"10.18356/9789213632857","DOIUrl":"https://doi.org/10.18356/9789213632857","url":null,"abstract":"Freedom of expression in general, and media development in particular, are core to UNESCO’s constitutional mandate to advance ‘the mutual knowledge and understanding of peoples, through all means of mass communication’ and promoting ‘the free flow of ideas by word and image.’ For UNESCO, press freedom is a corollary of the general right to freedom of expression. Since 1991, the year of the seminal Windhoek Declaration, which was endorsed by our Member States, UNESCO has understood press freedom as designating the conditions of media freedom, pluralism and independence, as well as the safety of journalists. It is within this framework that this report examines progress as regards press freedom, including in regard to gender equality, and makes sense of the evolution of media actors, news media institutions and journalistic roles over time.The overarching global trend with respect to media freedom, pluralism, independence and the safety of journalists over the past several years is that of disruption and change brought on by technology, and to a lesser extent, the global financial crisis. These trends have impacted traditional economic and organizational structures in the news media, legal and regulatory frameworks, journalism practices, and media consumption and production habits. Technological convergence has expanded the number of and access to media platforms as well as the potential for expression. It has enabled the emergence of citizen journalism and spaces for independent media, while at the same time fundamentally reconfiguring journalistic practices and the business of news.The broad global patterns identified in this report are accompanied by extensive unevenness within the whole. The trends summarized above, therefore, go hand in hand with substantial variations between and within regions as well as countries.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116708666","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Aid for Trade is widely heralded as a success in promoting increased trade by developing countries. Increased trade, however, does not automatically translate into greater prosperity for workers or local communities. In a world characterized by global value chains (GVCs) in which large lead firms typically enjoy considerable power over their suppliers, workers and small producers are often in a poor position to capture the economic gains produced by these chains. Profits (economic rents) typically accrue to the powerful. The policy implication is that the benefits of Aid for Trade, unless targeted at enhancing the capacities of workers and small producers, or at increasing their bargaining power, may disproportionately flow to those with power in the chain and not to the intended beneficiary.
{"title":"Aid for Trade in a World of Global Value Chains: Chain Power, the Distribution of Rents and Implications for the Form of Aid","authors":"F. Mayer, W. Milberg","doi":"10.2139/ssrn.2281154","DOIUrl":"https://doi.org/10.2139/ssrn.2281154","url":null,"abstract":"Abstract Aid for Trade is widely heralded as a success in promoting increased trade by developing countries. Increased trade, however, does not automatically translate into greater prosperity for workers or local communities. In a world characterized by global value chains (GVCs) in which large lead firms typically enjoy considerable power over their suppliers, workers and small producers are often in a poor position to capture the economic gains produced by these chains. Profits (economic rents) typically accrue to the powerful. The policy implication is that the benefits of Aid for Trade, unless targeted at enhancing the capacities of workers and small producers, or at increasing their bargaining power, may disproportionately flow to those with power in the chain and not to the intended beneficiary.","PeriodicalId":206472,"journal":{"name":"INTL: Political & Legal Issues (Topic)","volume":"365 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130962013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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