Samuel B. H. Faure
This article focuses on the decision-making dilemma of arms procurement policy. Why does a State decide sometimes to cooperate internationally with other States and their defense industries, to buy military goods such as jet fighters, tanks and warships, and why does it decide sometimes to not cooperate and prefers autarky? To answer this Research Question, this article brings in the form of a literature review, all the contributions in political science (almost hundred references) that explain this decisional variation. The aim is to map all explanatory models of this dilemma by testing their theoretical and methodological proposals on the case of France, to identify their main contributions and their weakness.
Stéphanie Balme, Jean-Luc Domenach, Jean-Louis Rocca, Yuxin Jiang, Martine Le Boulaire, Denis Segrestin
Jean-Pierre Pagé (dir.)
Jean-Pierre Pagé (dir.)
Martial Foucault, Renaud Bellais
During the first decade of the 21st century the Gulf States undertook reforms of their social policies based on the generous redistribution of hydrocarbon profits. One of the elements of the redistribution was to guarantee of employment. Beginning in the 1990s rising unemployment indicated that the traditional employment policies were ineffective, generating social tensions as evidenced in the "Arab spring". The goal of the reforms is to move nationals into salaried jobs in the private sector, currently held largely by foreign workers. The change is strongly opposed by business executives and local entrepreneurs. Having become accustomed to inexpensive foreign workers they object to the increased costs entailed by the reforms. The royal families are thus obliged to negotiate between the interests of the private sector, often aligned with their own, and the dissatisfaction of the young, the group most impacted by unemployment and the key players in the protests that erupted in 2011 in Bahrain, Saudi-Arabia and Oman.
Latin America's national oil companies, created at various times during the twentieth century, have each evolved in a different way. The two main companies – Petroleos de Mexico (Pemex) and Petroleos de Venezuela (PDVSA) – provide excellent illustrations of the rich diversity of organizational and industrial development. Many factors – such as the importance of earth quakes – explain the diversity.
Nevertheless, the role of governments during the period of nationalizations is key. It was then that the relationships between the owners of natural resources, public operators, regulators, the finance ministries, and international operators were defined. This process shaped the companies' institutional structures (path dependency) and set the parameters for future entrepreneurial dynamism. The path by which each of these enterprises developed continues to affect their culture as evidenced by the recent reforms which attempted to restructure Pemex and PDVSA.
Rémi Bourguignon, Solène Hazouard, Martine Le Boulaire
Christian Milelli, Françoise Hay
The arrival in Europe of Chinese and Indian firms is a recent phenomenon, yet it should be viewed as one which will last as it results from the strong economic growth of these two Asian giants. In this light it is useful to spell out the principal traits of these investors which remain largely unknown in Europe outside a narrow circle of experts and which have their own unique characteristics which are, on occasion, similar; this diversity can be explained by their unique national histories. The various modes of interaction can be explained by the manner in which these enterprises establish foreign subsidies. An examination of the impact these firms have on European economies and societies can help avoid unfounded paranoia and better address possible risks. The principal message of this paper is that it is necessary methodically and periodically to follow this phenomenon which is only in its infancy.
The Central European model of development has until recently rested on a low interest rates, significant increases in consumption, heavy dependence on capital inflows, open markets especially towards Western Europe, and for some specialization in cyclical industries (automobiles). The crisis has highlighted on the one hand the growing divergence between the countries of Central Europe and on the other their high level of interdependence which has necessitated cooperation in their relations with the EU. While Western Europe is unlikely to experience a repeat of the 1930s, it is possible that recovery will prove illusory as it did between the two world wars. Witness the case of the automobile sector which became a major contributor to GDP and source of in Central Europe but whose future prospects are uncertain. Regional policies of which new member states are the beneficiaries should, in theory, encourage innovation, pro-employment policies, and sustainable development as means to ensuring recovery
The latest WTO Round launched in Doha in 2001 has once again stalled. Even if an agreement were reached it is not certain it would be ratified by the US Congress. The latest delay is due in part to the changing economic context in which the negotiations are taking place, some of which changes are due to decisions made during the course of the negotiations. Governments and public opinion are increasingly in favor of bilateral negotiations in which it is possible to include new subjects rejected in the Doha multilateral negotiations. These include rules on labor and environmental standards, competition policy, investment, and government procurement. The assertiveness of emerging economies has upset the co-leadership positions of the US and the EU and argues for a new, as yet-to-be determined, negotiating process. The latest economic crisis has raised question about the objectives of the agriculture negotiations and has revealed the difficulties faced by an organization that thinks long-term of adapting to changes in the short term. This paper’s recommendations are aimed at improving the ability of the WTO to operate under current conditions and advocates the inclusion of new negotiating topics. If the principle of decision by consensus is not revised the rush to bilateralism is likely to continue, which is dangerous because of its discriminatory character.
The post-interventionist development adopted by Indian governments from the mid-1980s onwards has enabled companies to further participate in the economic growth. Still, growth benefits are very unevenly distributed while social and environmental externalities weigh more and more on Indian society. In such a context, while public regulation tends to reduce social and environmental judicial constraints in order to encourage rapid growth of investments, civil society groups are intensifying their regulatory actions on private companies, and advocate for a balance of public policies in favor of a better protection of the social groups most affected by economic activity, and for a better protection of the environment. As a response, big companies are revising their strategies and practices of corporate social responsibility (CSR), to preserve their social legitimacy and the conciliatory attitude of the State. This study explores the recomposition of relationships and balances of power between economic actors, the State and the civil society, in a context of national modernization. It provides a detailed analysis of stakes and dynamics within public and civil society regulation, as well as companies’ self-regulations.
Since the early 2000s, The People’s Republic of China has invited itself to the “Great Central Asian Game” that traditionally counterpoised Russian and US interests. Today, Central Asia’s future lies mainly in its capacity to avoid neighbouring Middle Eastern destabilisations and integrate the Asia-Pacific Zone through China’s influence. In less than two decades, China has managed to enter significantly and in a variety of forms in the Central Asian region. The country has imposed itself as a faithful partner in terms of bilateral diplomacy and transformed the Shanghai Cooperation Organisation into a regional structure much appreciated by its members. China has moved to the fore as an economic player in Central Asia in the trade sector, hydrocarbons, and infrastructures. Nevertheless, social fears have grown linked to this ever growing Chinese presence, and a number of Central Asian experts specialising in China do not hide their political, economic and cultural apprehensions when it comes to dealing with a neighbour whose power will be difficult to manage in the long run.
José Allouche, Jean-Luc Domenach, Chloé Froissart, Patrick Gilbert, Martine Le Boulaire
Antoine Vion, François-Xavier Dudouet, Eric Grémont
The study proposes analyzing the complex links between the standardization and regulation of mobile phone markets from a political economy perspective. Moreover, this study examines these links by taking into consideration, from a Schumpeterian perspective, the market disequilibrium and the monopolistic phenomena associated with innovation. It aims firstly to underline, with respect to different network generations (0G to 4G), the particularity of this industry in terms of investment return, and the key role that network standardization plays in the structuring of the market. This key variable of the standard explains in large part the income that GSM represented in the industrial and financial dynamics of the sector. The study thus explores the relations between the normalization policies, which are certainly neither the sole issue of public actors nor are they simple industrial property regulations, and the regulation policies of the sector (allocation of licenses, trade regulations, etc.). It underlines that the last twenty-five years have made the configurations of expertise more and more complex, and have increased the interdependency between network entrepreneurs, normalizers, and regulators. From a perspective close to Fligstein’s, which emphasizes the different institutional dimensions of market structuring (trade policies, industrial property regulations, wage relations, financial institutions), this study focuses on the interdependent relations between diverse, heavily institutionalized spheres of activity.
Facing a very complex environment with many economical, geopolitical and climate uncertainties and risks, National and International Oil Companies have been looking for a more rationale organizational structure to hold out against competition. This is the problem Pemex – the Mexican National Oil Company - which is third-ranked in world oil production, has been facing with. The reform process is not easy: it implies changes to the Constitution. With the recent democratization of the political regime, none of the major political parties alone is dominant in the Congress and has the capacity to push through such changes. Since the beginning of the nineties, the teams who governed Pemex tried to reply the following questions: Which kind of organizational mechanisms would allow Pemex to conserve its condition as a National Company and, in the same time, to be managed with the private sector principles and criteria? More concretely, is it possible to stimulate a market context inside a state monopoly without modifying the text of the Constitution? How can a new labor culture be created when the very influential Oil Trade Union has been maintaining a corporatist logic of the ancien régime? How to introduce criteria for corporate social responsibility when secrecy has been part of the traditions in the management of the company? What kind of evaluation is it possible to make nowadays about the reforms those managers offered?
The city of Shanghai, which has been hard hit by the various reorganizations of state enterprises since the early 1990s, is a forerunner in policies to battle unemployment, to the extent that its achievements are often referred to by the expression the Shanghai model(Shanghai moshi). The city has been experiencing a variety of forms of unemployment since the year 2000, affecting not only workers in state enterprises but all categories of the population, particularly young people. This study examines the Shanghai model, first describing the causes of unemployment in Shanghai, and then tracing the development of the measures taken in the past ten years or so. From the widespread structural unemployment in the years 1996-1997 to the more contextual unemployment in recent years, the city has devised a whole array of measures that are constantly evolving. Some are specifically adapted to the organization of Chinese society, but a number of others are similar to those adopted in OECD countries. In opposition to the liberal discourse on the mercantilization of labor, these measures demonstrate a strong state voluntarism in employment policies. The preservation of social stability serves as a yardstick to gauge the effectiveness of these public policies.
The sudden slump in oil production since 2001 has only heightened the question of an alternative to an economy based on oil revenues, whereas the sultanate had undergone exponential development over the three preceding decades. From this standpoint, the policy of Omanizing the labor force conditions all other issues, as it is not merely an economic matter, but instead deeply alters the social fabric that remained intact during the era of prosperity, thereby questioning the very legitimacy of Oman’s economic model. Omani society is currently experiencing a rise in frustrations reflected in a resurgence of particularist prejudices and demands. Alongside this phenomenon is an exacerbation of inequality, particularly due to the enmeshment of economic and decisionmaking powers in the hands of the oligarchy that has benefited from these revenues since 1970. To what extent do the changes Oman is going through today harbor a threat for the stability of a regime considered to be one of the most stable in the region?
Since their economic development got under way, the ASEAN countries – which essentially manufacture labour-intensive products – have been marked by strong regional integration brought about by the segmentation of the production process engaged in by Japanese companies. In these countries, successive relocations resulted in de facto economic integration at a time when various political groupings intent on blocking the development of communism were also emerging. Since joining the WTO, China – the world’s workshop – has become the hub for trade with the developed countries. In the face of such competition, the ASEAN countries will have to show their capacity to maintain their position in the value chain represented by the production of all of the Asian countries. While a number of econometric studies seem to indicate that the ASEAN countries will succeed in this undertaking thanks to the specific nature of their production apparatus, it is important neither to underestimate China’s ability to learn quickly and its determination to move further up the production chain nor to overlook the total absence of industrial policy on the part of governments in these countries which follow the advice of international organisations. It would seem that the ASEAN countries, faced solely with market forces, cannot hope to enhance their limited ability to move up the production chain.
Barter was a prominent issue in public debate during the 1990s in Russia: it prompted a more overall reflection on the nature of the Russian economy and the aim pursued by economic reforms. These major issues shaped a number of divisions: the government opposition portrayed barter as one of the pernicious effects of economic policies that gave priority to finance to the detriment of the national productive sphere. For others, it was to be interpreted as the legacy of the Soviet industrial sector and its lack of competitiveness. The ruble crisis in 1998 paved the way for a reverse trend leading to the sudden decline of barter. Unlike the initial growth phase, the decrease in barter gave rise to little comment. Yet these two colliding changes provide an opportunity to review the relevance of the various interpretations offered. Furthermore, the effort to recontextualizing barter in an historic perspective provides keys to understanding the immense changes that occurred in Russia in the 1990s. The statistical indicator of barter will serve as a basis to formulate a central question: how should this swift decline of barter, offer a long, sustained increase, be interpreted: is it an adaptation in trade behavior to the new economic conditions or the effect of more restrictive legal standards? In the latter case, does this official decrease mask economic practices that are moving toward the informal sector? To understand the barter trade requires looking beyond stylized facts. By nature, statistics tend to objectify multifaceted phenomena. Our analysis fits within the anthropology of economic exchanges, striving to reconstitute the dynamic and subjective dimension that the actors’ practices and discourses give to barter. From this standpoint, we show that barter is the product of constant interactions between legal processes, economic context and socio-cultural context. The statistical decline of the barter indicator in that case seems to be one of the visible effects of deep-seated changes that have marked the new working environment for Russian business.
Caroline Vincensini, Petia Koleva
Paolo Giordano, Javier Santiso