System Of Economic Governance Research Articles

THE ISSUES OF SCOPE AND LEGAL STATUS IN WTO – IMF CONSULTATIONS

In designing the international economic governance system after the Second World War, trade and finance, due to the close connection between them, were addressed as parts of a whole. A predictable and stable international monetary system was recognized as prerequisite for healthy and sustainable trade. However, these two issues were regulated under different institutional structures, by envisaging close cooperation and coordination. The International Monetary Fund (IMF), designed to be responsible for international finance and monetary issues, was established in 1944. The International Trade Organization (ITO) was designed to address international trade, while the General Agreement on Tariffs and Trade (GATT), with a limited scope, was temporarily put into implementation in January 1, 1948 to provide rapid tariff reductions until the ratification of ITO Charter. The ITO became still-born as it was not approved by national parliaments, especially the USA, and international trade continued to be regulated by the GATT. The GATT, with its unique organizational structure that gradually developed, continued its existence until the establishment of the World Trade Organization (WTO) in 1995 and hosted international trade negotiations. WTO, with more advanced legal and institutional structure, took over the functions of the GATT. Formal consultation procedures have constituted an important part of the cooperation between the GATT/WTO and the IMF in the context of the management of international trade and monetary/financial system. These procedures differ from traditional cooperation activities between international organizations and have a special character. It is regulated in a binding language as an obligation for the relevant WTO bodies to apply for consultations with the IMF on certain issues and to comply with the inputs received from the IMF. There are some points open to interpretation regarding the scope of the consultations and the binding and functional status of IMF inputs in the WTO. This study discusses the issues of scope and legal status.

The impact of the COVID-19 crisis on the fiscal positions in the euro area countries

Motivation: The selection of the topic stems from the threat of a debt crisis in the euro area, as a result of the COVID-19 pandemic. The main research hypothesis has been formulated as follows: the COVID-19 pandemic has caused a significant deterioration of the fiscal situation in all euro area countries, which has led to a debt crisis within the zone.Aim: The main purpose of the article is to analyze and assess the impact of the COVID-19 crisis on the fiscal positions of the euro area countries, primarily from the perspective of the fiscal rules included in the Maastricht Treaty and the Stability and Growth Pact.Results: The COVID-19 pandemic led to a sharp economic collapse in the eurozone in 2020. Consequently, fiscal rules were suspended, allowing the member countries to undertake significant fiscal interventions to mitigate the effects of the crisis. The pandemic thus forced the authorities in these countries to employ Keynesian methods to sustain the economy. As a result of the severe recession and the temporary emergency measures taken, public finances in the member states suffered significantly. The huge increase in the public debt ratios of some of these countries did not trigger a new debt crisis, however. The new system of economic governance, which enabled the establishment and use of innovative stabilization instruments at supranational level, proved to be of great support here. The main research hypothesis has not been therefore entirely confirmed. The mutually reinforcing effects of the eurozone’s fiscal policy and monetary policy were crucial for mitigating the effects of the COVID-19 crisis in its countries and supporting the economic recovery thereof in 2021–2022. The rapid development of the crisis has revealed the difficulties in the application of fiscal policy assessment indicators. Changes in the surveillance should lead to improved regulatory clarity and reduced regulatory complexity.

RCEP이 아세안 무역에 미치는 영향

Purpose - This research aims to enhance the understanding of Asia’s economic relationships and international economic governance, with a focus on the Regional Comprehensive Economic Partnership (RCEP). Specifically, this paper seeks to provide recommendations for South Korea’s participation and effective utilization in RCEP within the Asian region. Also this study suggests the significance of the Rule of Origin in Free Trade Agreements (FTAs), and highlights the importance of a cumulative certificate of origin, which refers to a document that verifies the cumulative origin of goods in international trade, applicable to 15 RCEP countries, as compared to existing bilateral FTAs.
 Design/Methodology/Approach - This paper reviews previous studies related to ASEAN and RCEP, discussing the findings and key issues addressed in earlier research efforts. News articles and statistics either of political conflicts or economic implications are utilized in this context.
 Findings - Currently, the global economic governance system, centered around the World Trade Organization (WTO), is facing challenges due to economic and trade friction between major powers, exacerbated by the COVID-19 pandemic. Regional economic integration bodies like RCEP are taking on a new central role in international trade rules.
 Research Implications - This research implies that the economic relations in the Asia-Pacific region have been steadily strengthening, and this contributes to maintaining stability through economic interdependence even in the presence of political conflict, and there is a room for South Korea to contribute.

Study on carbon emission reduction effect of institutional openness in China

As the main means to dovetail the domestic system with international rules, institutional openness is the key to deepening participation in the global economic governance system, breaking through energy and carbon emission constraints, and achieving green and sustainable economic development. Taking 284 prefecture-level cities in China from 2006 to 2019 as the research sample, this paper uses the establishment of Pilot Free Trade Zones as a quasi-natural experiment to systematically identify and test the actual impact of institutional openness on urban carbon emissions in China through the asymptotic difference in difference method, instrumental variables method, spatial econometric model, and mediating effects model. Meanwhile, technological progress is used as the entry point to analyze the intrinsic mechanism of action by adopting digital transformation oriented to efficiency improvement and green innovation capability oriented to R&D innovation as the differentiated perspective. It is found that institutional openness significantly suppresses urban CO2 emissions, and there is a certain heterogeneity and spatial spillover effect of this effect. Further study finds that institutional openness achieves carbon emission reduction through technological progress. The study aims to find new institutional innovation and development paths for low carbon development.

Research on the Risk Evaluation and Prevention Strategy of Cross-Border Merger and Acquisition Projects of Energy Enterprises Under the New Situation

At present, the world is undergoing profound changes unseen in a century, and the international political and economic governance system is undergoing profound changes. Protectionism and antiglobalization are on the rise, and the normalization of COVID-19 prevention and control has intensified international investment and economic and trade frictions. The domestic and foreign environment faced by the overseas investment and merger of Chinese power enterprises is increasingly complex, and the potential risks and uncertainties are increasing. Combing the energy industry key risk points of transnational mergers and acquisitions, this paper analyse the energy industry transnational M&A project political risk and legal risk evaluation method, and put forward the company transnational M&A project political risk and legal risk prevention strategy.

HIGH QUALITY DEVELOPMENT OF THE CHINA PAKISTAN ECONOMIC CORRIDOR AND RECONSTRUCTION OF THE GLOBAL GOVERNANCE SYSTEM

In order to cope with the unprecedented changes in a century, the "Belt and Road" Initiative (BRI) co-construction project with the China-Pakistan Economic Corridor (CPEC) as the flagship has become an important carrier for economic growth and reconstruction of the global industrial chain and supply chain, which is leading the reconstruction of the global economic governance system. Anatomy of the internal relationship between the high-quality development of CPEC and global economic governance, analysis of the important value of the corridor to the stable development of regional economic society and its internal driving force for stable and long-term development, and clarification of the internal mechanism of corridor investment operation and the global industrial chain and supply chain reconstruction will help to further promote the co-construction of BRI and provide useful reference for building an open, linked and more inclusive world economy and jointly building Human Community with a Shared Future with political mutual trust, economic integration and cultural tolerance

A Review on Marine Economics and Management: How to Exploit the Ocean Well

With the objective of establishing methods for high-quality marine development and effective marine management, this review focuses on four dimensions of marine development: marine economy, marine resources, marine ecology, and marine accounting. The focus of marine economy research is the marine industry, with the marine circular economy being the latest research frontier. Marine resources are the foundation of the marine economy. To use different types of marine resources more efficiently, it is necessary to apply the property right system of natural resources to marine fields. The healthy development of the marine economy is guaranteed by marine ecology. How to scientifically measure marine ecological loss and evaluate the marine ecological environment carrying capacity and marine ecological security is key to the sustainable development of the marine economy. The development of the marine economy is based on successful marine accounting. The lack of marine data globally has made marine accounting controversial. The study aims to review the development history and latest research frontiers for various marine-related fields and identify existing problems in the processes of marine economic development and marine management, with a view to finding a breakthrough for transforming and upgrading marine development, improving the marine economic governance system, and strengthening the modernization of marine governance capacity, so as to better develop and utilize the oceans.

U.S. - China: “Power Transition” and the Outlines of “Conflict Bipolarity”

This article focuses on the phenomenon of global rivalry between China and the United States in terms of power transition theory, which is scientifically new and relevant due to the increased attention to the so-called Thucydides trap, in which, as some experts claim, both states have fallen. This paper presents a different vision of the global rivalry for leadership in the shaping of a new world order, which has already taken the form of overt non-violent confrontation and manifests itself in technological and trade wars as well as scientific and cultural rivalries. Nevertheless, despite the non-violent nature of the rivalry, this process is followed by an increase in the military capabilities of states, mainly projected in the basins of the Pacific and Indian Oceans (Indo-Pacific region). The methodological basis of the paper is power transition theory, which has been developed over the past 60 years by A.F. Organsky, J. Kugler, D. Lemke, R. Tammen and other researchers, united in the TransResearch Consortium. The authors argue that the analytical prism of this theory is more relevant to the analysis of current global rivalry than the classical neorealist balance of power approach. Through the prism of the theory the issues of rebalancing the global system of economic governance are analyzed. Also, a comparative analysis of the US-Japanese and US-Chinese trade and technological wars is carried out. Both the military and aggregate capabilities of two countries on a global scale and in the Indo-Pacific region are examined. The conclusion contains findings and comments on the impact of U.S. - China rivalry on the system of international relations.

The New Economic Policy: Dimensions of the Study

In September 2021 Novosibirsk hosted The All-Russian Scientific Conference «Russian Economic Reforms in Regional Terms», which was organized with financial support from the fund «Istoria Otechestva» («History of Motherland»). The conference resulted in setting the objective to study the stages of economic reforms, which took place in the territory of Russia and its regions in the late 19th and early 20th century. Another task of the conference was to observe the general and specific influence of spatial factor on the intensions, implementations and results of the reforms. Researchers from different Russian cities presented their findings on agrarian colonization and development of the regions, economic policy and reforming strategies, as well as on changes in the economic governance systems. Since the conference was dedicated to the 100-th anniversary of the NEP, it paid special attention to scientific understanding of general patterns and specific features of the NEP implementation. The review provides information on the main reports and papers, related to the NEP topic. It also presented a summary of the debates, which took place at the round table «The NEP: Results and Research Perspectives».

Between hyperglobalization and national policy. Is there a way to mitigate populist risks for global economic governance in the post-Covid-19 world?

Some scholars of global governance advocate rebalancing from global to national governance. They underline the incompatibility of global economic governance with democracies, which have the right to protect their social arrangements. They discern the fact that global (economic) governance is under heavy fire from a new vox populi, underscoring the socio-economic and cultural sources of their resentment and opposition to the liberal international order. While pointing at the timeliness of such argumentation, this article examines the fundamental problem with a sovereignty-related solution to the populist challenge. It lies in the fact that reconstituting global economic steering with a stronger emphasis on sovereignty may open the door for pursuing distinct national policies, which have blossomed during the Covid-19 pandemic and which not only overlap with populism but dismantle the benefits of international cooperation in the post-Covid-19 world. By asking about the role of the fragmented system of economic governance in inspiring populist resentment, this article creates an opportunity not only to address the challenges to global economic governance, but more specifically to reflect upon: the justification of decisive shifts toward national governance; risks which remain hidden for those discontented with economic globalization; and drafting an alternative solution, namely taking the middle way between hyper globalization and a more national policy.

Artificial Intelligence, Globalization, and Strategies for Economic Development

Progress in artificial intelligence and related forms of automation technologies threatens to reverse the gains that developing countries and emerging markets have experienced from integrating into the world economy over the past half century, aggravating poverty and inequality. The new technologies have the tendency to be labor-saving, resource-saving, and to give rise to winner-takes-all dynamics that advantage developed countries. We analyze the economic forces behind these developments and describe economic policies that would mitigate the adverse effects on developing and emerging economies while leveraging the potential gains from technological advances. We also describe reforms to our global system of economic governance that would share the benefits of AI more widely with developing countries.

Artificial Intelligence, Globalization, and Strategies for Economic Development

Progress in artificial intelligence and related forms of automation technologies threatens to reverse the gains that developing countries and emerging markets have experienced from integrating into the world economy over the past half century, aggravating poverty and inequality. The new technologies have the tendency to be labor-saving, resource-saving, and to give rise to winner-takes-all dynamics that advantage developed countries. We analyze the economic forces behind these developments and describe economic policies that would mitigate the adverse effects on developing and emerging economies while leveraging the potential gains from technological advances. We also describe reforms to our global system of economic governance that would share the benefits of AI more widely with developing countries.

The EU’s Economic Governance: Development in the Context of Modern Challenges

The article explores the key milestones in the evolution of the economic governance system in the EU in the context of the current challenges facing the European economy. The European single currency is one of the most significant and tangible achievements of a United Europe, and is therefore not just a monetary project. It provides a basis for economies of the Member States to become more integrated with a view to supporting greater stability and prosperity. The architecture of the Economic and Monetary Union, established by the Maastricht Treaty in 1992, is unique whereas it combines a single monetary policy that pursues the objective of price stability with decentralized fiscal and economic policies under the responsibility of Member States. In light of those considerations, the Treaty requires Member States to regard their economic policies as a matter of common concern and to coordinate them within the Council that is, at the intergovernmental level. Since the early 1990s, when the Maastricht Treaty laid the foundations of the single currency area, the EU has developed a very comprehensive and detailed framework for economic and fiscal surveillance. The framework is laid down in a range of secondary legislation, as well as in other documents that provide more details and transparency on how surveillance is carried out in practice. The framework has evolved in waves over time, with changes introduced in response to the emergence of new economic challenges, as well as based on the lessons gained in the implementation of the surveillance framework. In 1997, the Stability and Growth Pact (SGP) was established so as to strengthen the monitoring and coordination of national fiscal and economic policies to permanently enforce the deficit and debt limits established by the Maastricht Treaty for all Member States. In the early 2000s, adherence to the nominal deficit targets of the SGP proved difficult for some Member States in a recessionary environment. That is why the SGP was reformed to allow for greater consideration of economic conditions. In response to the vulnerabilities exposed by the economic and financial crisis that hit the EU and the euro area after 2007, the EU took a series of measures to strengthen its economic governance and surveillance framework. They are relevant for all Member States, but have a number of specific features for those that use the euro. The revamped macroeconomic and budgetary surveillance were integrated into the European Semester, a common timeline for the coordination of economic and employment policies at EU level, and which was established in the same context. Thus, the EU’s economic governance has strengthened and improved over time, evolving in the context of historical events. Its future will depend, in particular, on which scenario for further development the EU ultimately chooses.

Backlash Against Globalisation and the Shadow of Phobos

This article addresses challenges to the established international order. Its critique becomes particularly discernible at the domestic level, where political and economic frameworks are contested by electorates and anti-establishment movements in Western countries, engulfed by anti-globalisation sentiments and disillusioned with the asymmetric formula of globalisation. Populism implies that the ‘social revolt’ facing the West today, regardless of whether it takes place in France, Greece, Hungary, Poland, the UK or the USA, is not a legitimate response to deep-seated problems but rather is the problem itself. The main aims of this article are to investigate what has caused this surge of support for populism in the West; what the role of the default system of economic governance is in inspiring populist resentment; and, finally, what the identity crisis, stemming from ‘hyperglobalisation’, and wrecking the social order in Western societies has to do with fear, (un)fairness and the redistributive effects of economic globalisation.

‘Give me your watch and I will tell you the time’: crisis and austerity in the European Union from a Bourdieusian perspective

ABSTRACT We investigate crisis and austerity in the context of the European Union (EU) by appealing to the work of Pierre Bourdieu. Evidence suggests that after the recent US and Eurozone economic crises, fiscal consolidation intensified the deterioration of socio-economic conditions in Europe. We turn to analyses versed in the Bourdieusian tradition to explain crises and austerity in relation to the domination of the financial field and the ascendancy of neoliberal policies, processes of symbolic violence and misrecognition, and struggles for symbolic power. We then apply this framework to assess the EU economic governance system and the rhetoric imposed on Member States and social partners to justify austerity. Finally, we discuss ways to confront these conditions by presenting Bourdieu’s conception of the ‘collective intellectual’, who collaborates with other social groups in order to uncover the power relations and inequalities generated by neoliberal policies and to promote alternative economic policies for social welfare.

Remarks by Hassane Cisse

Question 1: What do you see as the state of play between capture and participation in the global economic and financial governance system? Can you share your diagnostic analysis on this issue with us based on your experience and reflections?Governance, defined in its simplest form, is about the way in which decisions are made, who makes them, and in whose interests such decisions are made.

Research on Economic Governance System based on Supply Side

Research on Economic Governance System based on Supply Side

Retrospect and prospect: development of China’s economics in the past 70 years

Purpose In the past 70 years since the founding of the People’s Republic of China, China’s economic studies have been constantly centered on major issues such as national modernization, social economic development and the establishment, reform and improvement of socialist economic system. The paper aims to discuss this issue. Design/methodology/approach It has experienced a process of transition from the establishment of traditional Soviet’s paradigm of political economics to that of modern economics, during which drastic changes have been observed in various aspects of China’s economics, including research content, scope and methods. Findings Based on that, a discipline system of economics in line with international economics has been initially established. Currently, under the guidance of Marxism, scholars in China’s economics actively draw on the beneficial knowledge system and analytical methods from modern economics, emancipate their minds, seek truth from facts and constantly fortify confidence in the socialist path, theory, system and culture, continuously enhance the discourse power of China’s economics in global economic governance system, so as to push forward to the building of a theoretical system of socialist economics with Chinese Characteristics in the new era. Originality/value Economics is a discipline that studies resource allocation and human’s behavior of making a choice based on rationality. Emerged in the industrial revolution and developed in the exploration of a large-scale socialized mode of production and resource allocation system, this discipline has gradually become a broadly explanatory force in social sciences which profoundly affects the economic decision-making behaviors of the government and various economic entities.

The G20, G7 and BRICS in Global Economic Governance

The G20, established to overcome the 2008 financial and economic crisis, has asserted itself as the premier forum for international economic cooperation, most representative and authoritative mechanism for coordinating positions and forging collective decisions on economic policy issues. Members of the G7 and BRICS, the oldest club of developed industrial economies and the youngest club of the largest emerging economies, coordinate within the G20. It is argued that in the process of consensus-building in the G20, advanced and developing countries form new ad hoc groupings on specific issues, which temporarily supersede the existing alliances, such as the G7/8 and BRICS, and allow them to pursue decisions conforming to their national interests.This article reviews the G7 and BRICS members’ positions and coalition-building in the process of forging decisions on the issues historically central to the G20 agenda: international financial institutions reform, macroeconomic policy and financial regulation. The authors seek to reveal what role the BRICS and G7 alliances played in advancing their members’ priorities in the G20 decisions? Have ad hoc groupings of advanced and developing economies indeed replaced the traditional alliances? Was the BRICS successful in using the cooperation within the G20 to rebalance power and change the rules of the game in the global system? Has the G7 managed to maintain and consolidate its influence in the renewed system of global economic governance? What resources the BRICS possess for compensating the deficit of influence on the G20 decisions to achieve a more democratic and equitable multipolar world order and ensure sustainable, strong, balanced and inclusive growth?The findings show that, despite contradictions within the alliances and common interests between the BRICS and some G7 members on a number of issues, ad hoc groupings of advanced and developing countries do not replace the existing clubs. The G7 members successfully use coordination within their club to resolve internal contradictions, develop a common position and jointly promote it in the G20. The G7 ensured strengthening of the IFI system and its influence in it through cooperation with new centers of power, with a slight increase in the IMF and WB quota and votes shares for the BRICS; minimum reduction of these figures for the G7; and maintaining control over the IFIs governance. Both alliances influenced the G20 decisions to stimulate economic growth while maintaining price stability and ensuring financial sustainability. On managing the exchange rates, the BRICS and G7 acted as partners in the G20; however, the G7 demonstrated leadership in building consensus to address competitive devaluation. The G7 drove the financial regulation agenda. The BRICS established new institutions and rules. These new institutions create public goods for their members and their partners, exert catalytic influence for reform of the existing system, contribute to building a more equitable global economic governance. However, BRICS failed to change the balance of power and the rules of the game in the existing cooperation set up.

Cluster approach in ensuring the development of the sports industry in Ukraine

The purpose of the research. There is a substantiation of a cluster approach to ensuring the development of a sports industry in Ukraine. Methodology. Investigated general scientific methods, in particular: theoretical generalization - to determine theoretical bases and tendencies of content and components of the principles, cluster approach in providing the development of the Sports industry; system approach - for generalization of properties and conditions for the formation of clusters and techno-parks; methods of positive and normative analysis - for the development of recommendations and conclusions. Results. The article considers the experience of implementing a cluster approach to the organization of the economy on the example of leading countries. It is determined that the most effective in building a system of economic governance is a cluster. The advantage of this approach is the ability to concentrate the efforts of economic entities in creating added value, creating new conditions for the development of traditional and new sectors of the economy. Global experience in the development of the cluster approach shows the positive dynamics taking place in certain sectors. This development will be exacerbated by the intensification of competition between large organizations and small and medium-sized businesses, on the one hand, scientific discoveries on the other. In order to develop a cluster model of economic organization in the construction of public policy, the mechanisms of stimulating innovation, job creation, the level of infrastructure development, tax benefits are taken into account. Therefore, the introduction of a cluster approach in the practice of public administration is an urgent issue in the process of forming the state Ukrainian policy, focused on economic growth and sustainable development in the long run. Definitely, a sports cluster is a network structure with vertical and horizontal connections between organizations of the sports industry (main) and service industries (sporting goods, inventory, equipment, etc.) and infrastructure services. It should be noted that the state does not initiate the creation of a cluster, but creates conditions for the development of the cluster ("rules of the game") through tax, budget, credit policy, customs, the creation of research centers, sports infrastructure. Prospects for further research. Investigation of the principles of a cluster approach to ensuring the development of the sports industry in Ukraine give grounds for further improvement of the tools for the development of the sports industry and why will be devoted to further exploration of the author.