CIAO DATE: 05/2011
Volume: 13, Issue: 2
June 2010
The global imbalances and the contradictions of US monetary hegemony
Mattias Vermeiren
Over the last decade, the world economy has been characterised by escalating global current account imbalances between the United States (US) and East Asia in particular. This article argues that US monetary hegemony has been a necessary condition for the emergence of these imbalances. It is contended that the notion of structural power is indispensable to understanding the nature of US monetary hegemony and its relation to the imbalances. US monetary structural power has both induced East Asian states to increase their accumulation of dollar-denominated assets and allowed the US to decrease its savings. The article also shows that the mechanisms of US structural monetary power contain several contradictory dynamics that are able to undermine its own purpose, which is to avoid the burden of adjustment to balance-of-payments disequilibria.
German development policy 1998–2005: the limits of normative global governance
Aram Ziai
The Social Democratic/Green government which was in office in Germany from 1998 to 2005 announced that it would practise development policy as ‘global structural policy’: as policy aiming to transform global economic structures in favour of poor countries. The article proceeds by analysing the attempts to do so in three areas: the reform of structural adjustment programmes and debt relief, the reform of the international financial architecture, and the ‘Development Round’ in world trade negotiations. The article also analyses the accompanying discourse in order to identify the factors limiting this form of normative global governance.
Court reform in transitional states: Chile and the Philippines
Charles Anthony Smith, Mark Jorgensen Farrales
Contrary to the conventional wisdom, we argue that democratic institutions are not a prerequisite to an independent judiciary. Rather, the need for foreign investment is a necessary and, in some cases, perhaps sufficient condition for the establishment of at least nominally independent judicial institutions. We consider Chile immediately after Pinochet and the Philippines at the outset of the Marcos regime. We consider the similarity of court reforms implemented by these two regimes. These cases illustrate two distinct points in the life span of an authoritarian government. The Chilean case features the time period that begins a transition to democracy prior to consolidation. The Philippine case features the time period of ascension of the authoritarian. Despite the different environments, both regimes implemented court reforms primarily designed to attract foreign direct investment into their troubled economies.
Conceptualising neighbourhood: Russia vs its 'others'
Andrey S Makarychev
Russia's longing to be a part of Europe is usually manifested in the Kremlin's inclination to politically deal with (and get recognition from) the core European Union (EU) powers. Moscow, which regularly goes through a process of self-assertion as a great power, agrees to communicate only with those who are considered to possess a comparable international status.