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working papers series
publie par le centre de recherche ethnoregional
et l’association forum budapest
/mta pti etnoregionális kutatóközpont, budapest fórum/
Institute for Political Science Integration Studies
MACROECONOMIC POLICY ATTITUDE
STRUCTURE AND ENVIRONMENTAL
OF CEE COUNTRIES
Research Centre of Ethno-regional Studies
at the Institut for Political Science
of the Hungarian Academy of Sciences
Research Centre of Ethno-regional Studies
at the Institut for Political Science
of the Hungarian Academy of Sciences
The Research Centre of Ethno-regional Studies understake an inter-institutional and pluridisciplinary role to play concerned with ethnical and regional issues, and it to publish the results of contemporary research and translations in different series of Working Papers. The publication of this volume was made possible by the Budapest Forum and a grant from OTKA /No. T 029747 és az OTKA No. T 022600/.
Európai integrációs tanulmányainkat azzal a céllal adjuk ki, hogy segítsék az új tudományos eredmények vitáit és terjedését, dokumentum- illetve fordítás-sorozatunk pedig hiányt pótló tudományos anyagokat próbál elérhetővé tenni. A publikációk a szerzők véleményét tartalmazzák, amelyekért maguk a szerzők vállalnak felelősséget. E dokumentum több intézmény együttműködésének eredménye: CEPFA, a Budapest Fórum, az MTA PTI Etnoregionális Kutatóközpontja és az MTA Politikai Tudományok Intézete működött közre a publikáció előkészítésében. A tanulmány megjelenését az MTA Politikai Tudományok Intézetének segítsége tette lehetővé. Kiadásához a Budapest Fórum, valamint az OTKA T 029747 és a T 022600 számú kutatási keret biztosít anyagi hátteret.
© ODHIAMBO MOSES - Budapest, 2001.
Edited by Mr. A.Gergely András et Lévai Imre
Kiadni, másolni csak kiadó vagy a szerző írásos engedélyével és az MTA Politikai Tudományok Intézetének hozzájárulásával lehet.
All rights reserved. This book may not be reproduced, in whole or in part, in any form (except by reviewers for the public press or the scientific institutions) the prior permission writing from the publishers or the author.
Key words: Hungary, Central and East Europa, European integration network, macroeconomy, international policy, European Union, integration law, French, Dunaszigetköz Area, Kis Balaton area, international trends
Tárgyszavak: Magyarország, Kelet-Európa, EU-csatlakozás, környezetvédelmi politika, makrogazdaság, nemzetközi politika, Európai Unió, integráció, Franciaország, Szigetköz, Kis-Balaton, nemzetközi szabályozás
ISBN 963 9218 60 X
Institut for Political Science
of the Hungarian Academy of Sciences
THE MACRO-ECONOMIC POLICY OF DYNAMIC STRATEGIES, ACTIONS, PERSPECTIVES AND PROBLEMS OF YAOUNDE / LOME’ CONVENTIONS’ AGENDA WITHIN THE EUROPEAN UNION INTEGRATION NETWORKS FROM 1974 TO 2000
The historical basis of EU-agreements began in 1957, when an implementing convention covering trade and aid was added to the Treaty of Rome which provided for negotiation by the Community (as opposed to individual Member States) with overseas countries and territories (OCTs) of the Member States. A European Development Fund (EDF) of 581 million units of account was set up, to be applied as grants (mainly for infrastructure projects), principally in Francophone Africa.
Many former colonies of Community Member States became independent in the 1960's, and by 1963 the 18 countries of the Associated African States and Madagascar had negotiated a separate five-year convention with the European Community, with a second EDF of ECU 800 million, including loans as well as grants. The Yaounde Convention therefore provided for preferential trade agreements, and the establishment of joint institutions at ministerial and parliamentary level. The objectives made therein were not formal; they were made in time for the further negotiations with EU.What was clear, however, was that a fundamental revision of the Yaounde Agreement, which was recognised as being a key part of the Community’s external policy, was considered necessary by the Commission. The responsibiloity that the Community felt for the African countries within this region dictated that a successor to the Yaounde Agreement would be negotiated to the coming Agreement of protocols.
By 1975, the accession of the UK to the European Community, 20 Commonwealth countries and other independent states – 46 in all – signed the first Lome’ Convention (after Lome’ capital city of Togo) to run for five years. This replaced the Yaounde Convention and set out the objectives and principles of coordination and cooperation between the Community and the ACP (African, Caribean and Pacific) states, and aimed to promote the economic, cultural, and social development of the ACP states, to consolidate and diversify their relations in a spirit of solidarity and mutual interest.
The objectives of the European Cooperation with the developing countries is as follows: -to promote the high quality research required for development and economic development - to help to sustain and improves RTD capacity, including human resources, in developing countries, - to help retain scientific know-how in Europe in fields of mutual interest and relevant to the problems facing the developing countries, - to take account of the Union’s political obligations and of the recommendations of international fora such as the Rio Conference on research in developing countries with a view to sustainable development. The three key sectors reflecting developing countries’ major concerns have been identified :
-Management of renewal resources (forests, oceans, water, energy, etc.),
-Improvement of agricultural and agro-industrial production (livestock farming, agriculture, production, storage and marketing system, etc.),
-Public health (control of prevalent diseases, vaccines, health care systems, etc.),
-a fourth field covers topics of mutual interest defined jointly on a case by case basis (information and communication technologies, non-nuclear energy, industrial technologies, advanced material, etc.).
Within each of these priority areas, activities will be targeted as follows :-Based on dialogue between the developing countries and the European Commission, with a view to ensuring a regional approach (1).
The rationale of YAOUNDE AGREEMENT study sought to redress an important gap in attempts to conceptualize the process of European Integration. The impact of European Union (EU) policy-making process, and the influence of the European Union Institutions, on a wider process of European Integration had largely been neglected by integration theorists. In contrast, the underlying theme of this project is that to properly understand the dynamics of the EU policy-making process and the crucial role of the YAOUNDE/LOME’ CONVENTIONS and the European institutions and other interests within the process.
Traditional international relations-based approaches to the study of the European Integration, which have dominated the debate in the field in recent years, have focused largely upon the dominant role of national governments in the integration process and have concentrated on trying to explain Treaty-based landmarks in the process. This analytical focus has resulted in a neglect of the impact of the day-to-day work of policy-makers, interest groups and bucreaucrats in influencing the conducive environment in which decisions on Treaty formulation and ratification are taken by the heads of state, or government of the member states. This Treaty-based landmark approach also ignores, and, more importantly, fails to explain,the wide range of policy areas in which the Commission of the European Union (CEU), has succeeded in expanding the scope of EU competence despite national government opposition, with no basis in the founding treaties, or with only the most tenuous claim to legal justification.
African Integration as an ever OAU closer Union has been stipulated to design an integration predesigned to provoke a convergence in all fields. Divergence has thus been a measure of non-African. However, the concept of diversity announces an aspect of differences between the African people which have deep historical roots which denote our modes of living ways, ways of thinking, ways of defining problems and solutions and hence, which denote our ways of using new knowledge and new technologies where convergence is not germane to integration. As the World is sinking in globalisation and omnipresent competition, Africa is experiencing deeper changes in its economic structure, which needs some solid foundations, anchors, or constant moral values in the signing of appropriate Agreements with the European Union Integration Networks.
The visions of African Future oscillate between the bottom-top concept of cultural education innovation, regional development and a loose conglomerate of regions entangled from ancient tribal hostilites and some flawlessly co-ordinated armruled superstates. While advocates of African diversity use to stress the importance of values and traditions, the proponents of African homogenisation tend to present themselves as the pragmatic realists, involved in the real life dilemmas. Over the last decades of independent states the pragmatics seem to prevail. As Hingel notes: while socio-economic disparities in the community are images of inequalities and a threat to African construction,diversity (difference based on diverse cultural and historical backgrounds) is an underrated and poorly exploited source of development and progress (2). The current trend of coherent Africa as a continent of regional systems is to create a ripe, concrete, socio-economic, political and globalised Africa and in this way to make it well tuned for competition in the emerging global economy. Yet, from the perspective of evolutionary adaptation, this attitude is not so realistic, as usually mantained.
On the threshold of the 21st century the Yaounde Agreement countries had been looking forward perhaps for the first time, to real prospects after gaining independence for development. But at the same time the standing and strength of African government structures in these countries were under severe strain. For sure the time after independence, was not ripe to slacken the efforts, or downgrade the quality of EU–Africa partnership. The Yaounde Agreement with the European Integration as per the EC Legislation and Agreements affecting the Institutions of African Issue of socio-economic and political Strategic Management Process of Annex I of EC TEXT of Articles 85 and 86 of the EC TREATY Articles 53,54, and 56 of the EEA Agreement and of Articles 2,3 and 4 of PROTOCOL 22 to that Agreement (3). The three major steps in the strategic management are as follows : - Strategy formulation
- Evaluation and Control.
In working through these steps the Yaounde Agreement would analyze the internal strengths and weaknesses as well as external opportunities and threats (4).
As depicted in figure 1, the strategic management process involves decisions ranging from planning strategy through control of operations.The strategy formulation is decision making that determines the YAOUNDE AGREEMENT’s Mission and establishes its objectives and Strategies. Some refer to strategy formulation as planning. Strategy Implementation consists of activities and decisions that are intended to carry out new strategies,or support existing strategies.Some refer to strategy Implementation as operational management.
Evaluation and Control of the YAOUNDE AGREEMENT involved activities and decisions that keep the socio-economic and political process on track. Evaluation and Control include following up on goal accomplishment and feeding back the results to the decision-makers of the reached YAOUNDE AGREEMENT.
Input(Customer-Needs) Strategy FormutationStrategy Implementation Evaluation and Control Output (Customer-Value)
Figure 1. Strategic Management Process of Yaounde Agreement.
Viewed from a traditional perspective, in which national governments are considered to be the dominant actors in Union policy-making, a major preoccupation for scholars was, for a considerable period whether or not the YAOUNDE AGREEMENT would finally be ratified by the decision-makers and thus its provisions would ultimately enter into force. However, different conceptual lenses led analysts to different judgements about what is relevant and important.
The Lome’ Convention set up preferential trade agreements, provided for aid and gave some protection to commodity producers using the STABEX system of balancing compensation for losses, to apply where low world prices or low production caused dramatic fluctuations. The fourth European Development Fund was increased to ECU 3457.8 million.
In the planning of YAOUNDE AGREEMENT, the EUROPEAN UNION INTEGRATION in conjuction with the AFRICAN ISSUE AGENDA MANAGERS had to analyze the conditions in the internal environment of the organization and conditions in the external environment.This analysis of internal strengths and weaknesses and external free market opportunities and threats was so pervasive in strategic planning that it always had its AGREEMENT I; AGREEMENT II and its own acronym: SWOT analysis (5). The usual medicine prescribed by thinkers concerned about this situation is :- limit the neo-liberal excesses and harness market forces by strategic planning (6).
2. THE STRATEGIC MANAGEMENT PROCESS OF INITIATION OF YAOUNDE AGREEMENT
The underlying theme of the initiation of the YAOUNDE AGREEMENT - is that to properly understand the process of EUROPEAN UNION INTEGRATION it is vital to understand the dynamics of the European policy-making process and the crucial role of the European Institutions within the process. In the internal dynamics of the policy-making process within the European Commission in the two directorates, DGV (Employment, Industrial Relations and Social Affairs) and DGXIII (Tele-communications, Information Industries and Innovation), are explored. It is augued that a vital characteristic of the Commission’s ability to influence any policy sector is its ability to respond rapidly to any ’windows of opportunity’ ripe for EU intervention or, indeed, to facilitate the appearance of these windows. Yet, the means required to achieve thie end, and the degree of success they meet, vary from sector to sector. It is argued that the Commission has an important role to play in EU policy-making, and ultimately in the integration process, thus it is vital to develop a detailed understanding of the functioning of its constituent parts, of the interrelationships between them,and of the influence of their activities upon the actions of the commission as a whole.
During the initiation of YAOUNDE AGREEMENT the primary SWOT analysis issues were two-fold :-Internal strengths and weaknesses, -External opportunities and threats. The previous conditions were parameters, or issues internal to the Agreement that might have led to a customer benefit, or a competitive advantage. Alternatively, a weakness was a condition, or issue internal to the organization that might have led to negative customer value, or a competitive disadvantage (1). See Table 1.
TABLE 1. YAOUNDE AGREEMENT PRIMARY SWOT ANALYSIS ISSUES
Internal Strengths and Weaknesses External Opportunities and Threats
Horizontal systems and processes Customer value trends
Organization Structure Demographic trends
Corporate Culture Economic trends
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