Current International System Research Articles

The International Monetary Fund’s Role in Overcoming Economic Crisis in PIIGS

The financial crisis started in 2008 and touched the whole world but some countries experienced its consequences more than others. The European Union and in particular eurozone, slid into a stage of economic recession. Five of 28 EU countries faced the edge of financial fall, named PIIGS-Portugal, Italy, Ireland, Greece and Spain. Multidimensionality of the global crisis have caused that international economic organizations faced a great challenge, For them it was a test of efficiency and effectiveness. The leading role in this period belonged to the International Monetary Fund (IMF), which is standing on the guard of the whole international currency system. The aim of the article is to draw and analyze the most important IMF activities towards PIIGS, especially what instruments were proposed as a help and what changes had to be made by receiving states in order to receive the financial support. The ten-year perspective taken in the article allows for the more comprehensive assessment of the issue.

Diclosure Of Thirs-Party Funding Arrangements aand The Existence of Third-Party Funders in International Investment Arbitration

Third-party funding has been commonly used in International Investment Arbitration. Third-party funders increasingly usually finance the claimant who either (i) does not have sufficient funding to start legal proceedings, or (ii) adequately capitalized, but seek funding in order to minimize cash flow disruption and share risk during their arbitration proceedings. However, the notion of third-party funding gives rise to several issues; first, should funded parties be required to disclose their funding arrangements? Following the first research question, when does the funded party need to disclose the existence of a third-party funder? Then what legal measures can be taken to tackle the concern of transparency and disclosure in cases involving third-party funding? This research concentrates on the transparency and disclosure requirements, which is the central issue that influences further development and use of third-party funding arrangements in international arbitration. Analysis of relevant treaties, laws, guidelines, and case laws drives us to the conclusion that there exist measures and several drains the current international arbitration system that will serve a transparency system to control third-party funding. Hence, it would be appropriate for arbitration institute or investment treaties to take these tools into account in order to provide legal certainty for the disputing parties, arbitral tribunal, and ultimately, for the legal framework of third-party funding in investment arbitration..

Determinants shaping the international currency system: Where do currencies stand relative to their equilibria?

AbstractUsing a sample of 27 currencies, we empirically test the role of a large set of determinants potentially underlying currencies' share in the international currency system, providing, to the best of our knowledge, the most comprehensive study of this kind so far. We propose a new global indicator that quantifies the international use of currencies on the basis of three dimensions—medium of exchange, unit of account and store of value. From a range of indicators including openness, financial development and institutional development indicators, we uncover several variables that are significant in explaining the international status of currencies, hence contributing to understanding the role of the determinants shaping the international currency system. We also investigate the long‐run equilibrium values for currency shares, allowing us to score currencies on the basis of the potential stemming from the determinants. We contribute to the debate on international currencies' prospects, not only by looking at much discussed currencies such as the US dollar, the euro and the Chinese renminbi, but also by uncovering potential of emerging currencies. This knowledge is of the utmost importance for the debate on the reform of the international monetary system—from the point of view of academics, policymakers and market practitioners.

Petro-RMB? The oil trade and the internationalization of the renminbi

Abstract In this article, we examine China's promotion of the renminbi (RMB) in international oil trade and explore its implications for the international currency system in the short and the long term. The article traces the rise of the RMB in international oil trade in recent years and provides an analysis of its impact on the internationalization of the Chinese currency. We argue that despite the increasing use of the yuan in oil trade in recent years, in the short term it is highly unlikely that a petro-RMB system will emerge to rival the petrodollar system. Unlike the petrodollar, which combines the qualities of a master currency, a top currency and a negotiated currency, China lacks the economic leadership and the political and geopolitical leverages to make the RMB a major petrocurrency. Although the emergence of the RMB-denominated Shanghai oil futures is an important development, the absence of highly developed financial markets and a strong legal system in China hinders its potential. In the long run, the RMB may take on a more prominent role in the international oil trade as China's weight as an oil importer rises. More importantly, the overuse of financial sanctions by the US government has begun to undermine the role of the dollar within and beyond the oil trade. In addition, the rise of alternative energy sources will diminish the centrality of oil in the world economy, thus reducing the significance of petrocurrencies—whether the dollar or the RMB—in shaping the international currency system.

Trade, finance and international currency

Currency choices in international trade are related to the depth of financial markets, especially in the provision of trade finance. This paper examines: (i) how this financial channel affects international currency choices and (ii) the corresponding macroeconomic implications. Based on unique data with global coverage, we first document the empirical patterns of international currency usage and emphasize the importance of financial market development identifying the distinct trade finance channel. We then build a two-country monetary search model featuring time-to-ship friction and trade finance arrangements: goods are delivered one period after the contract, and the lack of commitment between exporters and importers forces the two parties to rely on bank-intermediated trade finance. The currency choice is endogenized and related to financial efficiency, terms of trade, and the inflation rate. We find that a country issuing a single international currency will: (i) enjoy incumbency advantage but have less room when implementing monetary policy; (ii) face a hump-shaped relationship between its economy size and optimal inflation level; and (iii) experience a persistent deficit in international trade. These results are illustrated with numerical examples and have rich implications for the current international monetary system dominated by the U.S. dollar.

From the ‘Small but Smart State’ to the ‘Small and Entrepreneurial State’: Introducing a Framework for Effective Small State Strategies within the EU and Beyond

AbstractAs the current international system is leaning towards multipolarity, small states face the danger of their influence being diminished and their interests being ignored. Small states in Europe and within the European Union might find themselves in such a predicament. In order to overcome it, they are in need of effective strategies. Literature on the international relations of small states suggests that, despite their limitations, small states are able to pursue their goals and succeed in the international system. Small state studies employ the ‘small but smart state’ concept for a small state that can maximize its influence. Despite being widely used, the latter lacks analytical value and remains a cliché. The objective of this article is to pin down the ‘small but smart’ state strategy and based on that to provide a comprehensive framework for the analysis and the design of effective small state strategies. We suggest that the ‘small but smart’ state strategy shares many elements with the entrepreneurial action, as the latter is extended from its business origins to include a specific strategy. We draw on the field of entrepreneurship to explore the ways it can enhance our understanding of the international relations of small states and we introduce a framework for the ‘small and entrepreneurial state’ strategy. The notion of the ‘small and entrepreneurial state’ adds more depth and rigor into our small state analyses as well as reinvigorates a fragmented and repetitive literature. Last but not least, our ‘small and entrepreneurial state’ approach can be of use for both small state scholars and policy makers.

The Arm’s Length Principle in the 21st Century – Alive and Kicking?

The international tax system faces substantial challenges with respect to taxing profits of multinational enterprises. Policymakers have put the focus on the taxation of the digital economy. The aim of this article is to provide a comprehensive overview over the ALP and the allocation of taxing rights of business profits, the concept of value creation, the impact of digitization on the allocation of taxing rights and the current discussions regarding this topic. Finally, I make a connection between the value creation concept and the challenges of digitization and asked the question if ALP is fit for purpose. It is intended to refocus on the proper application of the ALP in the 21st century as the re-thinking exercise is more demanding and requires more work than what has been published so far. By doing this exercise, I also provide food for thought which could be further explored to enhance the current international tax system.

Complicated Multipolar International Relations System: Russia and China As New Power Centers

This study discusses the nature of the current international relations system and examines the roles and behaviours of the actors within the system. Certainly, the study does not neglect the former studies regarding the nature of the system, and so it contains disciplinary literature review. The methodology of the study is based on combination of quantitative and qualitative methods which evaluates the current system by uniting facts, numbers and arguments-theories. This study focuses on nature of current international relations system by emphasizing on the impacts and relations of the major actors particularly Russia and China. Certainly, other significant actors are not neglected which have close relationship with Russia and China. For instance, Turkey, Iran and members of the BRICS and some African countries are playing crucial roles in current international relations system by improving their ties with Russia and China in economic, political and military spheres. Only sovereign states are not actors in international relations system, international organizations and multinational companies also play crucial roles within international relations system. Therefore, they may create competitive and cooperative atmosphere as dependent on their own interests, which makes the system more complicated. As a result the paper indicates interactions of the various actors and the challenges of the emerging new actors to the USA-Western dominated unipolar system and their involvements in economic, social and political spheres in the world.

Polar structure in the international system

Conclusion The observation of the phenomenon of structural evolution of the international system and its instability on a particular situation, by its transition from unipolar to polarity to bipolarism and then to unilateralism in the early 1990s led by the United States, and to the present moment, To say that the structure by which the hierarchy of superpowers or the regime is directed in terms of its various capacities that qualify it, and with the consent of the rest of the States directing the regime to lead and lead the world's first place, has no direct relation to the stability of this system, I hope other more influential in its stability. The structure of the new international order will be completely different in terms of the roles and legal rules governing the relationship between these roles. Therefore, the stability of this system will be based on very different foundations from the foundations of the international system since the Treaty of Westphalia to the present. This research deals with the stages of development of the international system first, and then describes the current international system II, to the factors affecting the polar structure

International Taxation in an Era of Digital Disruption: Analyzing the Current Debate

The “taxation of the digital economy” is currently at the top of the global international tax policymaking agenda. A core claim some European governments are advancing is that user data or user participation in the digital economy justifies a gross tax on digital receipts, new profit attribution criteria, or a special formulary apportionment factor in a future formulary regime targeted specifically at the “digital economy.” Just a couple years ago the OECD undertook an evaluation of whether the digital economy can (or should) be “ring-fenced” as part of the BEPS project, and concluded that it neither can be nor should be. Importantly, concluding that there should be no special rules for the digital economy does not resolve the broader question of whether the international tax system requires reform. The practical reality appears to be that all the largest economies have come to agree either that a) there is something wrong with the taxation of the “digital economy,” or b) there is something more fundamentally wrong with the structure of the current international tax system given globalization and technological trends. This paper is intended as a limited exploration of the second (or third, or fourth) best. It analyzes three policy options that have been discussed in general terms in the current global debate. First, I consider whether “user participation” justifies changing profit allocation results in the digital economy alone. I conclude that applying the user participation concept in a manner that is limited to the digital economy is intellectually indefensible; at most it amounts to mercantilist ring-fencing. Moreover, at the technical level user participation faces all the same challenges as more comprehensive and principled proposals for reallocating excess returns among jurisdictions. Second, I consider one such comprehensive international tax reform idea, loosely referred to by the moniker “marketing intangibles.” This idea represents a compromise between the present transfer pricing system and sales or destination-based reforms to the transfer pricing regime. I conclude that splitting taxing rights over “excess” returns between the present transfer pricing system and a destination-based approach is complex, creates new sources of potential conflict, and requires relatively extensive tax harmonization. This conclusion applies equally to user participation and marketing intangibles. If such a mechanism were nevertheless pursued, I suggest that a formulary system for splitting the excess return is the most manageable approach. Third, I consider “minimum effective taxation” ideas. I conclude that, as compared to the other two policy options discussed herein, minimum effective taxation provides a preferable path for multilateral cooperation.

The Good Place or the Bad Place? The Ted Danson of International Tax: The OECD and its Claim to Fame, BEPS.

The Good Place is a new Netflix – series. A fantastic sitcom with Ted Danson in an impressive lead role as (Arch angel) Michael. In the series Eleanor Shellstrop (Kristen Bell) has died and ends up – by mistake – in the Good Place. Michael explains how it works. All actions of people are valued with plus and minus points. At the end of your life, all plus and minus – points are added up and if you have a sufficient balance you end upon in the Good Place. Committing genocide is minus 434.484,45. Use of Facebook as a verb: minus 5,55. Remaining loyal to the Cleveland Browns plus 53,83 and remembering your sister’s birthday plus 0,04. One of the other indicators of really bad people is that they take off both shoes and socks in the plane. It is tempting to use this system to assess the current international tax system and the main actors in this play. We will focus primarily on the Ted Danson of international tax: the OECD and its claim to fame: BEPS. What would be the score of say Pascal St Amans?

The Persisting Us Trade Deficit Is Protectionism the Right Answer?

On January 22, 2018, the Trump administration imposed Safeguard Tariffs on $8.5 billion of imports of solar panel and $1.8 billion for washing machines. This move marked the beginning of what is now considered a trade war the USA is fighting against China and other traditional American trade partners such as EU and NAFTA members states. The “official” motivation for Trump’s trade war is that the persisting US trade deficit depends on “unfair competition” by trade partners. Tariffs are therefore seen as a political tool for levelling the field of international trade. In this paper we present and discuss two main objections to this view: the first is that current and trade account disequilibria are ultimately due to differences between domestic savings and investments driven by macroeconomic fundamentals which in general do not depend only on the trade policies of foreign countries. The second objection consists in the fact that the role of the US dollar as the “world’s money” in the current asymmetric international monetary system makes the US trade deficit both inevitable and sustainable in the long run. Unless protectionist measures permanently affect the domestic savings-investment balance they alone cannot eliminate a structural trade deficit.

Toward a Transformed and Unequal World

With the increasing use of machine learning algorithms in strategic decision-making and military affairs, the artificial intelligence (AI) revolution is bringing about significant changes to the current international system. AI applications will further tilt the global balance of power in favor of actors who can make the best use of the emerging technology. AI-assisted automation is also changing prevailing socioeconomic production models on the global scale; and in the not too distant future, it is expected to exert systemic impacts on the current global order. Having recognized the full potential of AI technology in propelling the next industrial revolution, China has adopted an AI development strategy for guiding a nation-wide campaign to harness AI power at an early stage, so as to seize the strategic initiative in an emerging global AI competition. China’s initial efforts have produced remarkable achievements with theoretical and practical implications.

Avatars and Sustainability of International Political Systems

All the facts mentioned in this article lead this study to consider that political borders established after the Second World War and managed by the East-west bipolarity have changed. But that does not change the nature and practice of international politics, hence does the idea of sustainability of international political systems. The situation of the current international sys-tem, the ongoing mutations do not lead to the end of the conflicting relations between the main centers of power. As conflicts of interest are unwaveringly attached to international politics or to the short-term policy, the new system in gestation will therefore not be fundamentally different from the above.

¿La región como trampolín para la emergencia global? Las estrategias regionales de Brasil y Turquía

Taking into consideration the transitory nature of the current international system, this article aims to analyze the relationship between the global emergence of several powers from the South and their regional policies. After an exploration of the academic literature on regional, middle and rising powers, the author compares the regional strategies of two states, Brazil and Turkey, based on four dimensions: their relative power resources, the self-perception regarding the region, the strategies and roles that constitute their regional policy and the reception of this projection by its neighbors and the main extra-regional powers. From this comparison, the relationship will be established between the regional strategies of both countries and their global emergence aspirations.

University as a global actor in the international system of the 21st Century

Since its foundation, the university has always been a relevant actor within the international system as the main producer and transmitter of scientific knowledge. Considered as a global actor and historically interrelated with multiple agents at the national and international level, the university must now face new and powerful challenges within the international context. Since the last decades of the 20th Century, the world has entered a vertiginous path of transformation, driven by multiple and profound global processes that have generated significant changes in all the parameters of the international system and have prompted the creation of a new international system. The research problem that arises in this work focuses on studying whether this new international stage will mean an opportunity for the university as an international actor to assume new roles on a global scale or if, on the contrary, whether threats and pressures will erode its global position. The main objective of the present investigation is to analyze the role of the university within the changing world order of the 21st Century and for this purpose it is proposed to know the main changes that operate in the current international system, to decipher how these new global trends affect the university and, understand how the university is reacting to these systemic changes. To achieve these objectives, an extensive literature review has been carried out within the fields of International Studies, Education Sciences, and other Social Sciences. Finally, it is expected to obtain as a result some concrete answers about the context, the impact and the reactions of the university to the modified international system to contribute to a much broader, complex and necessary debate regarding the future of the university as a global actor in the new international system of the 21st Century.Received: 27 September 2018Accepted: 12 November 2018Published online: 29 November 2018

Derechos humanos de las personas mayores: un nuevo reto para el siglo XXI en el sistema universal de Naciones Unidas

This monography focuses on specific aspects of equality and non-discrimination relating to older persons as well as on the forms of negligence, violence and abuse they may experience. Categories and levels are defined, accompanied by a wide range of cases taken from empiric evidence in each of the themes requested as inputs for the United Nations Open-Ended Working Group on Ageing. An extensive revision is also carried out of the United Nations international system for human rights promotion and protection, by identifying how older persons have been considered in the provisions of the United Nations different covenants and conventions, regarding matters such as equality, non-discrimination and protection against any form of negligence, violence and abuse, and, in general, in its contents applicable to older people. This article also discusses the 2030 Agenda and its relation to the human rights of older persons. Lastly, reflections and conclusions are included regarding the legal status of older persons within the current international system for the promotion and protection of human rights. At the end, the question is raised on whether there are concrete and specific advantages in place for States to enshrine the human rights model for older persons.

The International Economic Law and Conservation of Marine Resources in 'The Area': An Analysis Over the WTO Coercive Measures

The present article intends to analyze the adoption of World Trade Organization’s coercive measures against restrictions on domestic production or consumption of natural resources extracted from the “Area” by a third state that contravened international standards on its conservation policy. Firstly, The Article will analyze the dispute settlement system that exists today in international economic law, focusing on the Dispute Settlement procedure institute in 1994 by the WTO vis-a-vis its member states and the sanctions imposed and the Organization’s regulatory powers. In turn, given the current international legal system of the sea linked to the so-called “Area” in the UNCLOS, and how the United Nations throughout committee sections and supplementary regulatory frameworks intended to insert General Agreement on Tariffs and Trade (GATT)’s principles in UNCLOS’s context. Finally, a parallel is established between measures of economic coercion that discriminate against imported products, in order to encourage the conservation of marine resources, adopted by Article XX of the GATT, linked to the protection granted by the Law of the Sea to the Area, through analysis of cases judged by the WTO dispute settlement system.

Measurement units as quantities of objects or values of quantities: a discussion

Measurement units have historically been defined as quantities (i.e. specific properties) of objects, such as the mass of a particular piece of metal or the length of a particular rod. While the current International System of Units (SI) Brochure endorses this position, the draft 9th SI Brochure proposes to change it, and instead define measurement units as values of quantities. The reason for this proposed change is not provided, but it does not seem plausible that it is related to the redefinition of the SI units in terms of fundamental constants of nature: the very concept of what a unit is does not depend on the concrete way any given unit is defined. This paper is intended to open a discussion of whether measurement units should be defined as quantities or as quantity values, and provides our rationale for maintaining the definition of units as quantities.

History and Paradigm Shift: NGOs in International Development Aid

Abstract As Chinese NGOs are trying to go abroad under the Belt and Road Initiative, understanding the existing niche, discourse, and paradigm of the mainstream transnational NGOs in current international development aid system is crucial for Chinese NGOs to adapt and develop their own identity on value and norms. Based on key researchers’ observations, historical facts and statistics, this research examines the mainstream NGOs’ evolution in organization, action and discourse embedded in the macro-history of transnational NGOs and transformation of the international development aid system; it sums up the transformation around three macroscopic relations to understand and evaluate the action paradigm and discourse of the contemporary mainstream NGOs in transnational development, namely, around “Transnational NGO-State” relations a change from the private sphere to the public sphere, around “North-South” relations a shift from one-way aid to equal cooperation, and on “NGO-Society” relations an evolvement from voluntarism to professionalism. In the end the article points out the difference between Chinese NGOs and those of the developed countries in terms of the origin, timing, goal and discourse and specifies five basic questions China must face in its identity building.