The World Economy: Challenges of Globalization and Regionalization

250 Pages·1996·25.504 MB·English

by  Marjan Svetličič, H. W. Singer (eds.)

THE WORLD ECONOMY
Also by Marjan Svetlicic
CONTEMPORARY DEVELOPMENT STRATEGY OPTIONS OF
SMALL COUNTRIES, IN SMALL STATES COMPARED: POLITICS
OF NORWAY AND SLOVENIA
CROSSROADS OF THE WORLD ON THE VERGE OF THE 21 ST
CENTURY
FOREIGN DIRECT INVESTMENT AND THE TRANSFORMATION
OF CENTRAL EUROPEAN ECONOMIES
FOREIGN DIRECT INVESTMENT IN SOLVENIA (with M. Rojec)
FOREIGN INVESTMENT IN CENTRAL AND EASTERN EUROPE
(with P. Artisien and M. Rojec)
GOLDEN NETS OF TRANSNATIONAL COMPANIES
INVESTMENT AMONG DEVELOPING COUNTRIES AND
TRANSNATIONAL CORPORATIONS (with M. Rojec)
JOINT VENTURES AMONG DEVELOPING COUNTRIES
MULTINATIONAL OF THE SOUTH, NEW FORMS OF EQUITY
INVESTMENT BY YUGOSLAV FIRMS IN DEVELOPING
COUNTRIES (with M. Rojec)
Also by H. W. Singer
CONFLICT AND CHANGE IN THE 1990s (editor with Anthony Carty)
DEVELOPMENT PERSPECTIVES FOR THE 19 90s (editor with Renee
Prendergast)
ECONOMIC DEVELOPMENT AND WORLD DEBT (editor with
Soumitra Sharma)
The World Economy
Challenges of Globalization
and Regionalization
Edited by
Marjan Svetlicic
Professor of International Economic Relations
Faculty of Social Sciences
University ofL jubljana
Slovenia
and
H. W. Singer
Professorial Fellow
Institute of Development Srudies and
Professor Emeritus
University of Sussex
First published in Oreat Britain 1996 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire R021 6XS
and London
Companies and representatives
throughout the world
A catalogue record for this book is available
from the British Library.
ISBN 978-1-349-24697-7 ISBN 978-1-349-24695-3 (eBook)
DOI 10.1007/978-1-349-24695-3
First published in the United States of America 1996 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue,
New York, N.Y. 10010
ISBN 978-0-312-15886-6
Library of Congress Cataloging-in-Publication Data
The World economy: challenges of globalization and regionalization I
edited by Marjan Svetlicic and H. W. Singer.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-312-15886-6 (cloth)
I. Economic hislry-1990- 2. Competition,lnternational.
J. International economic relations. I. Svetlicic, Marjan.
II. Singer, Hans Wolfgang, 1910-
HC59.15.w66J 1996
JJ7--dc20 95-42059
CIP
© Centre for International Cooperation and Development 1996
Softcover reprint of the hardcover 1s t edition 1996
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written pernlission.
No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordancc with
the provisions of thc Copyright, Designs and Patents Act 1988,
or under the tenns of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London WI P 9HE.
Any person who does any unauthorised act in relation 10 this
publication may be liable to criminal prosecution and civil
claims for damages.
10 () 87654:12
06 05 04 03 02 01 00 99 ()8
Contents
List of Abbreviations vii
List of Tables and Figures ix
Foreword xi
1 World Economy: Challenges of Globalization and
Regionalization
Marjam Svetlicic and Hans Singer 15
Part One:
Transformation of the Global Economy 39
2 The Emerging World Economic Order and the Criteria
of Acceptability
Jack N. Behrman 41
3 International Involvement of Autarky?
A Simple Analytic Framework
H. Peter Gray 55
4 The Discrepancy between National and International
Governance
Louis Emmerij 65
5 Globalization. Economic Integration.
and Political Disintegration
Marjan Svetlicic 81
6 The Competitive Potential of Technology-Intensive Industries
in Developing Countries
Yair Aharoni and Seev Hirch 99
7 Economies in Transition and Development Economics
Marjan Svetlicil: 119
Part Two:
Challenges of the Regionalization of the World Economy 135
8 Globalization and Regionalization in the 1980s and 1990s
Charles Oman 137
9 Is a Genuine Partnership Possible in a Western Hemisphere
Free Trade Area?
Hans W. Singer 153
10 Antagonism or Equanimity: U.S. Multinational and
Regional Trading Blocs
Louis T. Wells, Jr. 165
11 Global Competition Moulds European Multinationals'
Responses to Regionalization
John M. Stopford 187
12 Multilateralism versus Regionalism from the Perspective
of the Central and Eastern European Countries
Metka Stare 215
13 Consequences of European Integration for Developing
Countries
Erich Scherzer 229
Index 247
List of Abbreviations
ACEA Association des Constructeurs Europeens d'A utomobiles
APEC Asia and Pacific Economic Corporation
ASEAN Association of South-East Asian Nations
CAP Common Agricultural Policy
CCC Commodity Credit Corporation
CEE Central and Eastern European
CEETs Central and Eastern European Countries in Transition
CIS Commonwealth of Independent States
CMEA Council for Mutual Economic Assistance
DAC Development Assistance Committee
DCs Developing Countries
EAI Enterprise for Americas Initiative
EC European Community
ECU European Currency Unit
EEA European Economic Area
EEC European Economic Community
EFTA European Free Trade Agreement
ESPRIT European Strategic Programme for Research and
Development in Information Technology
EU European Union
EXIM Exim Bank
FDI Foreign Direct Investment
FSCs Former Socialist Countries
FTA Free Trade Area
GATT General Agreement on Tariffs and Trade
GDP Gross Domestic Product
GM General Motors
GNP Gross National Product
GSP Generalized System of Preferences
IADB Inter-American Development Bank
IB International Business
IMF International Monetary Fund
JESSI Joint European Sub-Micron Silicon Initiative
LAC Latin American and Caribbean (countries)
LCDs Less Developed Countries
MDBs Multilateral Development Banks
MFA Multifiber Agreement
VII
MFN Most-Favored Nations
MIF Multilateral Investment Fund
MNCs Multinational Corporations
NAFfA North American Free Trade Arrangement
NATO North Atlantic Treaty Organization
NFl New Forms of Investment
NICs Newly Industrialized Countries
NIEs Newly Industrialized Economies
NIEO New International Economic Order
NTA Non Tariff Agreement
NTB Non Tariff Barriers
NTM Non Tariff Measures
OECD Organization for Economic Development and
Cooperation
OPM Others People Money
QRS Quantitative Restrictions
R&D Research And Development
RACE Research and Development in Advanced Communications
Technologies for Europe
RBP Restrictive Business Practices
SEM Single European Market
TGV Tn!s Grande Vitesse
TNCs Transnational Corporations
TRIMs Trade Related Investment Measures
TRIPs Trade Related Intellectual Property Rights
UK United Kingdom
UN United Nations
UNCTC United Nations Centre on Transnational Corporations
UNDP United Nations Development Program
USAID United States Agency for International Development
VER Voluntary Export Restraints
VW Volkswagen
WDR World Development Report
WHFTA Western Hemisphere Free Trade Area
WTO World Trade Organization
VIII
List of Tables and Figures
Chapter 2
Exhibit 1: Critera for a New World Order 53
Chapter 3
Figure 1: National Tolerance for International Involvement 57
Chapter 6
Figure 1: Technology Level and Market Orientation 106
Chapter 10
Table 1: Destination of exports of U.S. manufacturing
affiliates abroad, (Figures in millions of dollars)
1989 172
Table 2: Percentages of exports of U.S. manufacturing
affiliates abroad, destined for affiliate's region,
1982 and 1989 173
Chapter 11
Table 1: The "global" position of European firms,
selected industries, 1988 190
Table 2: Geographic distribution of outward FDI
(percent of total stock) 191
Table 3: Changing balance between overseas production
and exports from home country, 1977-90 192
Table 4: Shares of world industries, 1960-1993
(percent of sales of top twelve firms) 199
Exhibit 1: The changing nature of global competition 193
Figure 1: The differentiated global network 195
IX