Table Of ContentRedrawing the Global Economy
Also by Alice Landau
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RETHINKING THE EUROPEAN UNION: Institutions, Interests and Identities
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THE ENLARGEMENT OF THE EUROPEAN UNION: Issues and Strategies
(with Victoria Curzon-Price and Richard Whitman)
Redrawing the
Global Economy
Elements of Integration
and Fragmentation
Alice Landau
Assistant Professor
University of Geneva
Switzerland
© Alice Landau 2001
Softcover reprint of the hardcover 1st edition 2001 978-0-333-80240-3
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First published 2001 by
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Library of Congress Cataloging-in-Publication Data
Landau,Alice.
Redrawing the global economy :elements of integration
and fragmentation / Alice Landau.
p.cm.
Includes bibliographical references and index.
1.International economic integration.2.Regional
economics.3.Globalization.I.Title.
HF1418.5 .L36 2000
337—dc21
00–053043
10 9 8 7 6 5 4 3 2 1
10 09 08 07 06 05 04 03 02 01
For Lea, Herbert, Yaël
and David Harris
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Contents
List of Tables xi
List of Graphs xiii
1 Portraying Integration and Fragmentation in the
World Economy Today: an Introduction 1
The other face of Janus 1
Globalization and regionalization: new incarnation? 3
Integration and fragmentation: twin processes 4
States in a changing global context: stresses and challenges 6
New modes of regulation for new issues 7
The book ahead 7
Part I Globalization
2 Exploring Globalization 11
Globalization, free trade, and the WTO 11
Two currents of thought 13
The optimists 15
The pessimists 18
Regionalization instead of globalization 22
Governments, companies and trade policies 24
Summing up the globalization debate 27
Globalization and governance 29
The determinants of globalization 33
Globalization and technology 34
3 Assessing the Differentiated Character of
States 39
Challenges to the state? 40
New patterns of governance 44
Bringing in international and transnational actors 45
The NGOs: newcomers in world affairs 46
International organizations and international regimes 52
Bringing power politics back in 56
vii
viii Contents
The decay of the state capacities 57
The East Asian economies: from success to crisis 58
Africa: bleak prospects 61
Concluding remarks 65
4 The Stratification of Global Trade 66
Globalization and trade 67
Changing pattern of trade in developing countries 71
Shifting patterns of trade: services 76
Concluding remarks 77
5 The GATT/WTO: Instrumentalizing
Globalization 79
The GATT: adapting to the transformations in the world
economy 80
Devising new trade restrictions 82
The Uruguay Round of negotiations 84
The WTO: towards an open and liberal multilateral trading
system 87
The WTO and developing countries: maintaining special and
differential treatment or equalizing power? 95
The tasks ahead 100
Negotiating in conditions of asymmetry 102
Concluding remarks 107
6 Foreign Direct Investment and the Global
Economy: Why, How, and Where? 109
Explaining FDI 109
FDI: pros and cons 110
Developing countries and FDI: shifting pattern 112
Multiplying investment rulemaking 116
The OECDMultilateral Investment Agreement 121
The triadization of FDI 125
Developing countries and FDI: concentration and shifting
pattern 129
Central and Eastern Europe: catching up 134
Concluding remarks 135
Contents ix
7 The Transnational Corporations: Channeling
Disparities 137
Transnationals and national governments: maximizing their
interests 138
Changing attitudes 139
Towards an international regime for monitoring TNCs? 141
TNCs as conduits for trade and investment 142
Retaining control over the assets 142
The uneven pattern of TNCs 144
TNCs and developing countries 147
Mergers and acquisitions: a strategy in its own right 148
Geographical distribution: transatlantic against
Continental Europe 152
Industry composition 155
M&As and developing countries 157
Building strategic R&Din developing countries 158
Concluding remarks 160
8 The Globalization of Capital 161
From the gold standard to Bretton Woods 162
The Bretton Woods agreement: a facsimile of the gold
standard? 164
Towards financial globalization 166
The debt crisis 168
The international financial system today 171
Developing countries: unequal pattern of international
finance 174
Agreement on financial services: effects on developing
countries 181
Part II Regionalization in the Global Economy
9 Regionalization: Old Blends and New
Incarnation 185
What is regionalization? 186
A triad? 189
Investigating the variance in regional arrangements 190
