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Saturday, March 22, 2008

Approach economic problems for the global environment

The general principles for international measures to deal with problems related to the global environment as international public goods were set at the Rio Summit, the Johannesburg Summit, and so on measures taken by countries to cope with various problems, including the burden of resolving problems, are left to the negotiating table for the various treaties. Although many international agreements have already been concluded, most of the provisions requiring only that efforts be made and have little legally binding provisions.

Major issues for the global environment policies for the future include the post-Kyoto Protocol negotiations on global warming and the realization of the goals set in the Millennium Development and the Plan of Implementation Johannesburg, in particular measures for problems related to poverty reduction in developing countries (access to potable water and sanitation facilities, and to reduce the number of slum dwellers), expansion partnerships and the strengthening of governance in the international environment.

The principle of the burden of costs to be paid by each country enforces measures to solve the problems above means that the burden borne by the developed countries is inevitably greater than that of developing countries, which is consistent with the "principle common but differentiated responsibilities ". One key element is "the polluter pays", but the scope of such a burden is still under discussion. There are arguments about whether or not a preventive approach is an established principle. In recent years, there has been a growing trend to the company's request to accept responsibility as shown in the OECD Guidelines for Multinational Enterprises and the UN Global Compact.

A major administrative issue for all countries is to implement comprehensive measures to environmental problems with a minimum of economic and social costs. The average expenditure in OECD countries on environmental measures is already about 2 per cent of GDP and is expected to rise further. It is possible to reduce by at least 25 per cent of the costs incurred by the OECD countries through the use of means that are economically efficient, much more than the current average.

Many voluntary agreements are concluded in order to achieve the goals of environmental protection policy, but the economic efficiency of such agreements is extremely low compared to other economic means. The cost of monitoring by the regulations are often high. The OECD recommends that the economic means, such as environmental taxes, surcharges and unloading, which fully utilize the advantage of the market economy, require the lowest cost and are effective in achieving environmental goals . In addition, the OECD called for the elimination of various subsidies that have a negative effect on the environment.

The Kyoto Protocol global warning to prevent various problems left unresolved, including self-serving charges set for developed countries. Enough discussions on the participation of developing countries in the form of agreements, methods to allocate burdens and how to deal with techniques are necessary for the reform of the post-Kyoto Protocol negotiations, which will focus on implementation of economic measures.

Economic Means were not used in most Japanese measures against air pollution and global warming. Japan should use more economic means such as environmental taxes, surcharges and unloading operations, as recommended by the OECD.

Rethinking international aid for the public good

In recent years, development assistance of international public goods (BPI aid) has been steadily increasing due to higher international public goods because of increasingly international transaction, and increasingly contagion, such as currency crises. Although it is often said that the provision of international public goods tends to be inadequate, it has been proved theoretically that the provision does not need to be inadequate if their types and incentive systems are "reconsidered". This paper examines various aspects of the IPG aid, such as suppliers of aid and the IPG optimal involvement of Multilateral Development Banks (MDBs), taking into account theoretical and empirical development in recent years and the realities on the ways and means for the size of the IPG and providers of aid.

Firstly, the document shows that by focusing on the arguments of Todd Sandler and others, it is possible to promote volunteerism IPG aid if the types of goods (eg, club merchandise and common products), the grouping of technologies (eg, best ball, low and Maillon) party structures and the design of systems (such as prisoners dilemma games with rewards or penalties, games and insurance) are justified. Next, the paper discusses the participation of international organizations or major countries push through direct contributions, the "pushing" and "building partnerships" to ensure a minimum level of contributions, in respect of each type of international public good , the technology or the aggregation structure Thursday. It also discusses the possibility of maintaining appropriate levels of contributions without public participation.

It is understood that the IPG aid includes not only a useful tool for "core businesses" which produce international public goods (such as the development of drugs to prevent infections), but also aid for "complementary activities" (such that the distribution of drugs to prevent infections in the developing countries) for consumption (use) of international public goods in developing countries, given the close interdependence between the delivery and receipt of the delivery of goods international public. Therefore, the size of the IPG aid including complementary activities is discussed by using the CRS (creditors reporting system) of the OECD / DAC. In recent years, aid has IPG was between 20 and 40 percent of total ODA (though figures vary depending on the definition of aid IPG). According to trial calculations, the entire IPG aid from Japan is also rising steadily, as is the case with other OECD countries, relatively focused on complementary activities in the health and medical care.

International Public Goods composed of global public goods, whose profits are expected to spread throughout the world, and regional public goods, which should benefit from a certain area only. This paper examines the current state of global public goods, aid (aid GPG), taking the Global Environment Facility (GEF) as an example. It is believed that financing through "partnerships" is possible for the GEF programs, which support global environmental conservation activities in developing countries. Because these programs are considered "combination products" that create benefits not only for the global environment, but also for the environment and the development of certain countries or regions. Therefore, the GEF can be a mechanism to provide additional funds to improve support activities such as the global environment problems in developing countries such as climate change and biodiversity, through partnerships with bilateral donors , multilateral development banks, UN agencies and NGOs.

It is said that the demand for regional public goods has increased in recent years. Regional development banks (BRD), such as the Asian Development Bank and the Interamerican Development Bank are active in projects offering not only an entire region but also specific projects for sub-regions such that the Mekong region, South Asia, Central Asia, Central America and South America. That regional public goods to be provided by international organizations such as regional or global BRD by international organizations such as the World Bank, should be determined by applying the criteria of efficiency. It is to compare the effectiveness of the provision of regional public goods by regional international organizations in accordance with the principle of subsidiarity "(indicating that the area where the benefits are enjoyed should correspond to the area covered by an organization) with the efficiency of the economy of scale and scope in the global supply by international organizations. IPG The majority of core assistance from the World Bank and BRD is provided by "grant" rather than "loans" and more large quantities, which could be financed. Because of the low incentive for a country to repay the borrowings for the international public goods whose benefits are enjoyed by more than one country. however, there are cases emerging markets, including several countries borrow funds in the context of a common approach to increasing international public goods.

IPG bilateral aid may also be regarded as "common products", in which the provision of international public goods strengthens national interests (in a narrow sense, ie private benefits) of donor countries. In addition to providing funding and design of systems for the provision of international public goods, but also the role of multilateral development banks to provide information and opportunities for negotiations and the formation of partnerships, so that countries Donors are able to provide a better understanding of their national interests (in the broadest sense) to be strengthened.

The maintenance and strengthening of the multilateral trading system

The multilateral trading system centered on the World Trade Organization (WTO) is seen as an international public good (in the strictest terms, a club well), which has the characteristics of non-exclusion and non-rivalry in the consumption, but the current system is criticized by people in various fields. The multilateral trading system orthodoxy (based on the concept of comparative advantage and public choice) is in crisis because of the continuing protests in society and criticism of the current system of developing countries.

Civil society groups protest that trade liberalization was promoted at the expense of the global environment and a disproportionate emphasis on the profits of multinational corporations widens the gap between rich and poor resulting from meetings behind closed doors that 's is held in Geneva, where trade faceless bureaucrats to make important decisions. The governments of developing countries have begun to adopt a negative attitude toward the new round of negotiations, arguing that, ultimately, it was only developed countries that have benefited from the Uruguay Round, and they demand the equitable application of existing agreements before starting new negotiations for further liberalisation. These critics increasingly severe were the main reasons for the failure of the Seattle Ministerial Conference in December 1999. It was decided that a new round of negotiations would start at the ministerial conference in Doha in 2001, but no agreement has been concluded at the ministerial conference in Cancun in September 2003, which was regarded as the review conference mid-term for negotiations, etc. Negotiations once again ran into trouble. An agreement was reached at a meeting of senior officials in Geneva in July 2004 to relaunch negotiations and preparations for the ministerial conference in 2005 in Hong Kong began, but progress in the negotiations can not be assured.

The Doha Round negotiations are continuing at this time, but the crisis of the orthodoxy of the WTO remains. In addition to the negotiations, it was felt that the automatic and effectiveness of the dispute settlement procedures will be compared to the stagnation and inefficiency of the negotiations, and if the difference is not remedied, WTO Orthodoxy crisis will grow. An investigation into the dispute settlement procedures under way reveals that the Appellate Body judicial activism avoided as much as possible, and that the majority of countries deemed in violation of WTO agreements to accept the recommendations of the WTO and change their steps to comply with the WTO agreements. For this reason, it is believed that the discontent expressed by the country against the dispute settlement procedures have not reached a level such that it is impossible to control.

Ten years have passed since the creation of the WTO, and despite the difficulties of the multilateral trade system as an international public good has been maintained, so that it can be assumed that those countries are still trying to maintain and strengthen the WTO.

Japan temporarily joined the GATT in 1953 and became a contracting party in 1955. This means that when Japan joined the international economy after the Second World War, the multilateral trading system centered on the GATT was already in place, which has always been the Japanese government officials feel as if they had been delayed and it took a considerable period of time until Japan became capable of using the GATT rules as a political means. However, since then, Japanese trade policy has improved to the point where it is called aggressive legalism that uses the WTO rules. Now, the Japanese will be assessed value on the positive contribution how Japan can do to maintain and strengthen the multilateral trading system and to make the system more reliable in the context of the Doha Round negotiations.

If Japanese measures for the contributions are assessed on the basis of the three aspects of the financial contribution to the budget of the WTO, the provision of human resources for the Secretariat staff and the use of dispute settlement procedures, contributions will be are not in circulation. In the long and medium term measures to break the current impasse is needed.

Theoretical analysis of the overburden costs for operations peacekeeping United Nations

Economic theory alliances is one of the tools used to analyze the overwhelming costs of the UN peacekeeping operations. Economic theory alliances has been proposed by Olson and Zeckhauser (1966). Major research topics in this area are military alliances such as the North Atlantic Treaty Organization (NATO), focusing on the analysis of shared responsibility for public goods, in particular potential deterrent. Peace and security that the United Nations seeks to materialize by such means as the operations of peacekeeping are typical of public property. A common point between operations for peacekeeping from the United Nations and military alliances is burden-sharing between countries producing public goods, so that the economic theory of alliances is regarded as an effective tool of analysis. But it is also true that there are significant transactions between peacekeeping and military alliances, to incorporate the differences between the analysis model creates greater understanding at the same time keeping operations UN peacekeepers as an international public good and cost-sharing.

The most distinctive difference between keeping operations UN peacekeepers and military alliances such as NATO is an urgency. In many cases, the operations of peacekeeping United Nations must respond promptly to the changing situation in a region of the dispute and it is possible for the dead to rise significantly as a result of delays of a few months to achieve at resolutions to establish operations peacekeeping by the Security Council or for the forces of peace-keeping action. From this aspect, the operations of peacekeeping United Nations are more similar in kind to emergency assistance for regions suffering from natural calamities such as earthquakes to peace than military alliances.

The second characteristic of difference between the operations of peacekeeping UN and military alliances is the diversity of member countries. NATO currently has 26 members, all of a few in North America and Europe, while the United Nations, as its name suggests, has members throughout the world, with 191 member countries in 2004. Operations peacekeeping United Nations are established after the accident or termination of disputes, in order to stabilize regions of disputes. In the case of public welfare, regional stability, as indicated above, countries in the evaluation studies of the benefits differ depending on the geographic locations of the regions of conflict and economic and political relations with the regions dispute, which is different from deterring potential generated by military alliances in peacetime. The diversity among the countries gives rise to a great disparity in scores.

A third difference is the great inequality in income among members. Eight of the 191 UN member countries, namely the United States, Japan, Germany, United Kingdom, France, China, Italy and Canada, account for about 70 percent of global income, while 45 African member countries located in the south or the Sahara desert account for only about 1 percent, and 33 countries in Latin America and the Caribbean, only about 5 percent.

According Olson (1969), in order to materialize pareto optimal level for the provision of public goods, it is necessary to materialize tax equity, whereby entities that enjoy the benefits of public property agreement with the entities that determine the level of provision of public property and the cost of the service. In the case of entities that comprise it for only part of the former entities, which means that tax equity is not achieved, there will be a spillover benefits that will cause inadequate supply of public goods. An example of this is the military power of the members of the military alliance. Therefore, in the case of military alliances, it is important to address the ineffectiveness of measures for the implementation of the external economy. On the other hand, for the operations of peacekeeping by the United Nations, it is possible that the results achieved by pursuing tax equity would be unacceptable from the point of view of impartiality because of three differences described above. For UN peacekeeping operations, the developed countries are making contributions commensurate with their economic power, rather than depending on the level of services they enjoy. The proof is that the burden on member countries to cover most of the costs of operations for peacekeeping are based on the countries' economic size. Taking into account the above, the way to address the issue of impartiality is important in the analysis of the increasing costs of UN peacekeeping operations.

Analysis of burden, international organizations

Through various international organizations, a wide range of international public goods are provided, ie the promotion of peace and security, human rights and security, a stable international financial system A multilateral trading system, and reducing poverty in low-income countries, the prevention of contagious diseases, and the preservation of the global environment. In the paper, we tried to analyze how members of international organizations to share the financial burden of providing these international public goods. We do this by conducting regression analyses based on data concerning subscriptions and contributions of nearly 20 major international organizations.

Econometric analysis of the costs borne by the member countries of international organizations show that the highest proportion of gross national income (GNI) and trade in their respective totals, most of the burden, especially in the case of the WTO or IMF. Also among industrialized members, the financial burden is greater for members with GNI per capita higher. Between all members, in contrast, the financial burden is greater for members with GNI per capita of less than international financial institutions (IFIs). This finding is particularly noteworthy for regional development financial institutions where members of the region, particularly the low-income members-bear a greater share of contributions, with a greater share of power to vote, that the non-regional members . The so-called "subsidiarity principle" seems to apply here. Such a pattern of burden-sharing, that low-income countries shoulder disproportionate burden, we do not find in other organizations, such as the OECD, the WTO, the ILO, the United Nations and other organizations affiliated with the United Nations. The reason is that the sharing of the burden and governance are not related to each other in these organizations, so it is natural to have small proportion of financial contributions for members with low incomes.

The sharing of the financial burden of member countries in the provision of international public goods through international organizations are deemed to be established in accordance with the benefits they receive, but it is not easy to accurately measure those benefits. If the size of the voting power (vocals) member countries in international organizations constitutes at least a portion of their benefits, it would be rational to bind to a certain extent, the burden sharing for the right to vote. In this sense, the link between the decision-making power (governance) and the financial burden (burden sharing) to the IFIs should provide a useful model. Recent revisions of Japanese contributions and governance reform in the OECD are seen as efforts to build such a link. However, it is not necessarily appropriate to retain the voting power of low-income countries weak as it may discourage these countries, the desire for participation and ownership, international organizations.

In the last section of the paper, we calculate a fair burden-sharing in the economies of East Asia at an Asian Monetary Fund (AMF), or an ASEAN +3 Secretariat Like its predecessor, which may be established in the future. We conclude that appropriate burden sharing and the power to vote for this organisation should be 40 percent or less in Japan, 30 percent or less for China, 10 percent or less for Korea and 25 percent or more to the ASEAN countries gathered Given these countries have strong financial contributions to the IMF, the World Bank (IBRD) and the ADB, the size of their economies, the extent of internationalization , and their per capita income.


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