Fostering a dynamic and stable neighborhood for Europe

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This article designs a strategy based on which Europe can increase its internal dynamics, connect with its dynamic neighborhood and stabilize its eastern and southern regions. The envisaged strategy learns from past errors, counteracts “my country first calls”, balances uneven trade and investment pacts, and prevents land and resource grabbing. A new partnership strategy with neighbors in Eurasia, the Middle East and Africa will enable Europe to overcome its growth fatigue. It could help to reshape globalization and convert the current “ring of fire” into a “ring of friends”. Then, together with its neighbors, Europe could still be an important economic region in 2050.

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... A further layer of relationship reaches out to the European neighbourhood, which aims at avoiding new dividing lines between the enlarged EU and its neighbours. It strives instead to strengthen the prosperity, stability and security of all countries involved, and is also based on the values of democracy, rule of law and respect for human rights (Aiginger and Handler, 2018). ...
... Our review can be brief, as many studies on the topic are already available (see e.g. Aiginger and Handler, 2018). ...
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Social and political sciences use the term ‘identity’ in describing a wide range of phenomena, whether these be personal explanations of self-understanding, descriptions of common interests or the shared experiences of a larger group. It has been used in the recent analyses of countries or larger communities, but also in the historical studies of very different societies in developing or industrialized countries. To make the concept more operational and open to empirical research, we dichotomize it into an inclusive versus an exclusive type. This enables us to carve out the different policy conclusions associated with each type. We then apply the concepts for analysing the emergence of European identity over the past decades, as well as its limits and recent headwinds. We present survey data on national and supranational identity and country differences concerning trust in national and European institutions. As a counterstrategy to populism and the exclusive type of identity, political observers, from scientists to members of the media, are split into suggesting either a "cordon sanitaire” to discourage voting for such ideas versus an embracement strategy by including their representatives into government, thereby controlling them or revealing their incompetence. This paper, in contrast, ventures a proactive strategy of four steps to localize the root causes of the success of populism, offering an inclusive vision for the long run, policy instruments for economic improvements and a new narrative. These concepts are linked to the strategy of the European Commission of a Green Deal and a Social Europe "striving for more”, which acts as a program to strengthen the inclusive European identity and pre-empt the renationalization requested by the exclusive type. It is much too early to analyse the COVID-19 crisis under the proposed dichotomization and the new narrative. However, the differences in the initial reactions of countries to the emerging pandemic, bashing foreign sources for its creation and misusing the crisis for a restoration of autocratic leadership on the one hand and looking for solidarity on the national as well as international level on the other, may later be attributed to the concepts of exclusion versus inclusion.
... Reporting expenditures in Dollars instead of Euros is maintained, even if European firms and agencies are involved. A European communications agency or TV channel would also be important.Europe has to build strong partnerships with non-European neighbours in the East and the South(Aiginger, 2018;Aiginger & Handler, 2018). Even if we argue that the share of Europe in GNI, exports and manufacturing is larger than perceived, it will shrink for a given geographical size, due to lower economic growth than emerging economies and decreasing populations (both typical for top income regions). ...
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Europe may emerge from the recent crisis stronger than before, as a player with a more sustainable democratic model than China and fewer political divides than the US. What reports tend to neglect is that Europe is currently the largest economic region, leading in exports, foreign direct investment, and most indicators on Sustainable Development. A reason for this downplaying is that Europe is seen as continent consisting of individual small and big countries and not as a political or economic whole. The paper takes an alternative position and carves out conditions for closing divides, to make existing European strengths more visible and extend the quality lead. The Recovery and Resilience Facility as well as the Multiannual Financial Framework must be used for reforms and coherence. A rebounding Europe requires a double strategy of fostering innovation while redirecting productivity towards energy and resource saving, away from its current priority on labour efficiency. This would empower Europe to be a quality player in a multipolar world in which there are no longer only two superpowers, China and the US, competing for attention.
This book discusses the unprecedented impact of the financial and economic crisis on government finances and economic performance across Europe, which has raised skepticism on the ability of the current course of integration to promote prosperity. Correspondingly, the European Union is about to contract for the first time in its history. This timely book covers the economic issues that challenge the future of integration in Europe. The chapters are authored by international experts and examine current and emerging challenges and trends for the European Union: economic convergence, monetary policy, competition law, transport policy, the informal sector, employment, recovery and enlargement. Four chapters focus on Greece, which has been the greatest challenge faced by European institutions in the context of the sovereign debt crisis, and one chapter discusses the possible costs of Brexit. The reader will benefit from understanding the key economic challenges, which, if effectively addressed, will lead to deepening the union, or in contrast to a multi-speed Europe.
In lieu of an introduction, this chapter explores the speed of recovery in the European Union from the late global financial and economic crisis, through key macroeconomic indicators. Although the united Europe endured the crisis, there are several issues which question the current course and outcomes of the European integration project. The book brings together contributions from leading and distinguished scholars and experts on the most relevant and pressing economic aspects of the issues that will shape the future of the union. This chapter gives an overview of their contributions.
Since the turn of the millennium, there has been a concern that employees are being falsely classified as self-employed to circumvent collective agreements, labour laws, and employment tax. The aim of this paper is to evaluate the prevalence and the working conditions of those in dependent self-employment. Analysing the European Working Conditions Survey in the 28 member states of the European Union, the finding is that 4% of the workforce is dependent self-employed and that there is a need for a more nuanced understanding of the working conditions faced by the dependent self-employed. The paper concludes by discussing the theoretical and policy implications.
European transport is not only a key sector of the EU economy, but indispensable for the functioning of the internal market. The current major challenges for European transport can be briefly summed into the costs of congestion, the reduction of oil dependency and greenhouse gas emissions, infrastructure quality, and internal and external competition. This chapter discusses how the global financial and economic crisis of late 2000s has affected the economic activity of European transport, how the European legal order has responded to the new challenges and the orientations and developments of EU transport policy.
After the financial crisis, Greece experienced a severe loss in real per capita income and accumulated a public debt much higher than GDP. The article analyses the causes of this development, including policy failures of Greece and the EU. It develops a game-changing strategy, to restart growth not relying on tourism only. Greece should make use of its unique location between Europe, Asia and Africa to build a bridge connecting these regions with fascinating and productive complementarities. Given this new strategy, a regional leadership in decarburization, youth reform boards and the Greek diaspora as a manager of reforming and financing new activities, Europe should cut a substantial part of the debt. This would be in the interest of Greece, the EU and Europe’s neighbours.
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The 21st century era of globalization has opened up many investment alternatives for Africa. There is now a rush by governments and private companies to expand in the rapidly growing region, to the extent that we can begin to talk of a process of world-wide investment. Both traditionally powerful economies in the West and emerging powers such as China and India have contributed to a vast proliferation of investment, raising questions of what intense competition will mean for Africa’s economic development. The Globalization of Foreign Investment in Africa: The Role of Europe, China, and India compares the differing approaches between Asian and European players in Africa, with a particular focus on the role of foreign direct investment (FDI) in the socio-economic, socio-political, and socio-cultural development of the region. First documenting the historical context of Western dominance from European colonial powers, the book follows the paradigm shift that occurred with China’s 21st century foray into Africa in search of oil and other raw materials to fuel its own rapidly rising economy. Using an interdisciplinary approach, the author proposes that Africa will only get maximum benefits from high-level investment activities if it succeeds in evolving an Africa-driven foreign investment policy. This strategy presents the best scenario for an African economic renaissance in the 21st century. An important contribution to research on contemporary Afro-Asian dynamics, this book will be of interest to students and academics of African Studies, Asian Studies, globalization, and economics, as well as potential investors and investing agencies.
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As strategies for achieving sustainable growth in developing countries are re-examined in light of the financial crisis, it is critical to take into account structural change and its corollary, industrial upgrading. Economic literature has devoted a great deal of attention to the analysis of technological innovation, but not enough to these equally important issues. The new structural economics outlined in this paper suggests a framework to complement previous approaches in the search for sustainable growth strategies. It takes the following into consideration: First, an economy's structure of factor endowments evolves from one stage of development to another. Therefore, the optimal industrial structure of a given economy will be different at different stages of development. Each industrial structure requires corresponding infrastructure (both"hard"and"soft") to facilitate its operations and transactions. Second, each stage of economic development is a point along the continuum from a low-income agrarian economy to a high-income industrialized economy, not a dichotomy of two economic development stages ("poor"versus"rich"or"developing"versus"industrialized"). Industrial upgrading and infrastructure improvement targets in developing countries should not necessarily draw from those that exist in high-income countries. Third, at each given stage of development, the market is the basic mechanism for effective resource allocation. However, economic development as a dynamic process requires industrial upgrading and corresponding improvements in"hard"and"soft"infrastructure at each stage. Such upgrading entails large externalities to firms'transaction costs and returns to capital investment. Thus, in addition to an effective market mechanism, the government should play an active role in facilitating industrial upgrading and infrastructure improvements.
This book examines the historical, diplomatic, economic, and strategic aspects of the European Recovery Program (ERP) - popularly known as the Marshall Plan - which brought Europe out of the chaos, hunger, poverty, desperation, and ashes of World War II. In it, authors from a variety of countries who are scholars, policy makers, and business leaders, address applications of the Marshall Plan’s lessons learned to the 21st century for capacity building, human and sustainable development, and the role of public, private partnerships in emerging market economies and democratic societies. "There are not many of us left who served through the Marshall Plan from its beginning, and fewer still who served time in the Hotel Talleyrand in Paris, the site of the anniversary celebration, in June 2007, of Secretary George C. Marshall’s 1947 commencement address launching the European Recovery Program. There are, though, scholars who can address those times and evaluate them so that the experience can live on. "The dedication of the Hotel de Talleyrand as a memorial to that unique enterprise provided the opportunity; and the analyses and evaluations in this splendid volume, The Marshall Plan: Lessons Learned for the 21st Century, reflect the excitement, as well as the accomplishments, of an economic enterprise that produced the infrastructure of NATO and the European Union. Long live the spirit of Marshall’s vision!" -Thomas C. Schelling, Marshall Plan alumnus, Washington, Copenhagen, Paris, Washington, ’48-‘53, Nobel Prize in Economics 2005 "A historical event is and remains crucial when it interacts with others in such a way as to contribute to a deep and positive change in the course of history. In this sense, the Marshall Plan made an outstanding and lasting contribution. It was instrumental to overcoming the temptation of isolationism in the US, to reviving our badly needed economic recovery and gave a decisive input to coordinating our national efforts, thus paving the way to our future European integration." When I think of the world as it would have been without the Marshall Plan, I am encouraged to conclude that even in our challenging times, another, better world is possible. This collection of well written contributions and analyses, The Marshall Plan: Lessons Learned for the 21st Century, further strengthens my convictions. -Giuliano Amato, Former Prime Minister, Italy Former Vice President, European Constitutional Assembly
In this chapter, we provide an overview of the relationship between international migration and international trade as well as capital movements. We start out by identifying key issues through a brief comparison between modern migration and the mass migration of the nineteenth century, followed by a review of insights that can be drawn from a general factor proportions model about the positive and normative effects of migration, compared to trade. Subsequently we turn to a detailed analysis of the interrelationship between migration and capital formation as well as accumulation of technological knowledge. Finally, we use the gravity model to explore the interrelationship between bilateral trade and migration, with special emphasis on trade costs and network effects.
Countries interact more and more and borders open up, especially in Europe and within the European Union. A more intertwined world raises the question of how more free movements of goods and people –migration and trade – will affect each other. The purpose of this thesis is to establish whether migration and trade are complements or substitutes. Different theories on international trade and factor mobility predict different outcomes and the discussion about whether migration and trade are complements or substitutes continue. The research area is well explored on a theoretical level but less so empirically. A gravity model approach is used to investigate the link between migration and trade. In order to assess the relationship two gravity equations are tested through regression analysis. Bilateral data for five European countries and their partner countries in the rest of the world are used in the empirical analysis that covers the years from 1997 to 2001. The results are unambiguous and show that migration and trade are complements. The intra European Union effect differs slightly from the general effect but is still complementary.
He has been cited by "The New York Times Magazine" as "probably the most important economist in the world" and by Time as "the world's best-known economist." He has advised an extraordinary range of world leaders and international institutions on the full range of issues related to creating economic success and reducing the world's poverty and misery. Now, at last, he draws on his entire twenty-five-year body of experience to offer a thrilling and inspiring big-picture vision of the keys to economic success in the world today and the steps that are necessary to achieve prosperity for all. Marrying vivid eyewitness storytelling to his laserlike analysis, Jeffrey Sachs sets the stage by drawing a vivid conceptual map of the world economy and the different categories into which countries fall. Then, in a tour de force of elegance and compression, he explains why, over the past two hundred years, wealth has diverged across the planet in the manner that it has and why the poorest nations have been so markedly unable to escape the cruel vortex of poverty. The groundwork laid, he explains his methods for arriving, like a clinical internist, at a holistic diagnosis of a country's situation and the options it faces. Rather than deliver a worldview to readers from on high, Sachs leads them along the learning path he himself followed, telling the remarkable stories of his own work in Bolivia, Poland, Russia, India, China, and Africa as a way to bring readers to a broad-based understanding of the array of issues countries can face and the way the issues interrelate. He concludes by drawing on everything he has learned to offer an integrated set of solutions to the interwoven economic, political, environmental, and social problems that most frequently hold societies back. In the end, he leaves readers with an understanding, not of how daunting the world's problems are, but how solvable they are-and why making the effort is a matter both of moral obligation and strategic self-interest. A work of profound moral and intellectual vision that grows out of unprecedented real-world experience, "The End of Poverty" is a road map to a safer, more prosperous future for the world. From "probably the most important economist in the world" ("The New York Times Magazine"), legendary for his work around the globe on economies in crisis, a landmark exploration of the roots of economic prosperity and the path out of extreme poverty for the world's poorest citizens.
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