William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0002
- Subject:
- Political Science, Asian Politics
This chapter provides an overview of economic statecraft and how it differs from “normal” commerce. It first challenges a common misconception in the field of international relations—that states ...
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This chapter provides an overview of economic statecraft and how it differs from “normal” commerce. It first challenges a common misconception in the field of international relations—that states conduct economic relations with each other—before discussing the relationship between economics and national security in the context of externalities. It then considers the specific microfoundations of economic statecraft as it is actually practiced in grand strategy, with particular emphasis on the element of state control—whether the state can control or direct the behavior of the commercial actors that are conducting the international economic activity. It also describes a framework for thinking about the relationship between the economic activities of commercial actors and the security of a nation-state.Less
This chapter provides an overview of economic statecraft and how it differs from “normal” commerce. It first challenges a common misconception in the field of international relations—that states conduct economic relations with each other—before discussing the relationship between economics and national security in the context of externalities. It then considers the specific microfoundations of economic statecraft as it is actually practiced in grand strategy, with particular emphasis on the element of state control—whether the state can control or direct the behavior of the commercial actors that are conducting the international economic activity. It also describes a framework for thinking about the relationship between the economic activities of commercial actors and the security of a nation-state.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0008
- Subject:
- Political Science, Asian Politics
This chapter examines the mainland's use of interest transformation as a strategy to alter Taiwan's definition of its own interests. It considers how China executed its strategy of interest ...
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This chapter examines the mainland's use of interest transformation as a strategy to alter Taiwan's definition of its own interests. It considers how China executed its strategy of interest transformation by focusing on the spring 2005 visit of Lien Chan, chairman of the Kuomintang Party (KMT), to the mainland and the subsequent elimination of tariffs on Taiwanese fruit. It shows how mainland authorities worked together with Taiwan's opposition parties and began to target Taiwan's fruit exports for further expansion as part of China's shift to an economic statecraft strategy based on interest transformation. It argues that the mainland's trade concessions to the support base of Taiwanese President Chen Shui-bian was part of a successful electoral effort to mitigate Taiwan's aspiration for independence.Less
This chapter examines the mainland's use of interest transformation as a strategy to alter Taiwan's definition of its own interests. It considers how China executed its strategy of interest transformation by focusing on the spring 2005 visit of Lien Chan, chairman of the Kuomintang Party (KMT), to the mainland and the subsequent elimination of tariffs on Taiwanese fruit. It shows how mainland authorities worked together with Taiwan's opposition parties and began to target Taiwan's fruit exports for further expansion as part of China's shift to an economic statecraft strategy based on interest transformation. It argues that the mainland's trade concessions to the support base of Taiwanese President Chen Shui-bian was part of a successful electoral effort to mitigate Taiwan's aspiration for independence.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0001
- Subject:
- Political Science, Asian Politics
This book examines how China uses economics as a tool of national power in the twenty-first century. More specifically, it assesses the conditions under which China is more successful or less ...
More
This book examines how China uses economics as a tool of national power in the twenty-first century. More specifically, it assesses the conditions under which China is more successful or less successful in its pursuit of economic statecraft. It explores economic statecraft in the context of contemporary Chinese grand strategy to show how China uses firms to pursue its foreign policy and other strategic goals. It also considers economics as it relates to national security as well as China's global search for strategic raw materials such as oil, China's use of economic statecraft in its relations with Taiwan, and China's sovereign wealth funds as an avenue of state control. Finally, it explains why the Chinese state can or cannot control the behavior of commercial actors that play important roles in economic statecraft.Less
This book examines how China uses economics as a tool of national power in the twenty-first century. More specifically, it assesses the conditions under which China is more successful or less successful in its pursuit of economic statecraft. It explores economic statecraft in the context of contemporary Chinese grand strategy to show how China uses firms to pursue its foreign policy and other strategic goals. It also considers economics as it relates to national security as well as China's global search for strategic raw materials such as oil, China's use of economic statecraft in its relations with Taiwan, and China's sovereign wealth funds as an avenue of state control. Finally, it explains why the Chinese state can or cannot control the behavior of commercial actors that play important roles in economic statecraft.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0012
- Subject:
- Political Science, Asian Politics
This book concludes by offering a few observations about economic statecraft in general and Chinese economic statecraft in particular. First, state control is an essential and often overlooked ...
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This book concludes by offering a few observations about economic statecraft in general and Chinese economic statecraft in particular. First, state control is an essential and often overlooked prerequisite of economic statecraft. Second, state unity is the most important of the five factors that determine when state control is more or less likely, whereas the balance of relative resources seemed to be the least significant. Another observation involves the so-called “king-making” capabilities of the state. By backing only those commercial actors that carry favor or prove amenable to advancing government agendas, the Chinese state is able to at least partially compensate for the problematic principal-agent challenges stemming from a fragmented market structure. The book also discusses the policy implications of its findings for China, particularly with regards to its political economy and its rise on the international stage, and the world.Less
This book concludes by offering a few observations about economic statecraft in general and Chinese economic statecraft in particular. First, state control is an essential and often overlooked prerequisite of economic statecraft. Second, state unity is the most important of the five factors that determine when state control is more or less likely, whereas the balance of relative resources seemed to be the least significant. Another observation involves the so-called “king-making” capabilities of the state. By backing only those commercial actors that carry favor or prove amenable to advancing government agendas, the Chinese state is able to at least partially compensate for the problematic principal-agent challenges stemming from a fragmented market structure. The book also discusses the policy implications of its findings for China, particularly with regards to its political economy and its rise on the international stage, and the world.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0007
- Subject:
- Political Science, Asian Politics
This chapter examines China's attempts to coercively leverage Taiwan's growing economic dependence on the mainland. The evolution of the cross-strait economic relations and China's corresponding ...
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This chapter examines China's attempts to coercively leverage Taiwan's growing economic dependence on the mainland. The evolution of the cross-strait economic relations and China's corresponding strategic use of economics can be usefully broken into two phases, each of which highlights a different strategic logic of economic statecraft. In the early days of the cross-strait economic ties, China was mainly focused on attracting Taiwanese capital investment and management expertise. As the cross-strait economic interaction expanded and deepened throughout the 1990s, China began to consider the possibility of using this economic interaction as a coercive lever of power. This chapter first provides an overview of cross-strait economic ties during the period 1979–1996 before discussing the mainland's shift to a coercive leverage strategy. It then considers Beijing's use of coercive leverage against prominent Taiwanese corporations with mainland operations in order to influence the outcome of Taiwan's presidential elections. It also evaluates the results of China's coercive approach.Less
This chapter examines China's attempts to coercively leverage Taiwan's growing economic dependence on the mainland. The evolution of the cross-strait economic relations and China's corresponding strategic use of economics can be usefully broken into two phases, each of which highlights a different strategic logic of economic statecraft. In the early days of the cross-strait economic ties, China was mainly focused on attracting Taiwanese capital investment and management expertise. As the cross-strait economic interaction expanded and deepened throughout the 1990s, China began to consider the possibility of using this economic interaction as a coercive lever of power. This chapter first provides an overview of cross-strait economic ties during the period 1979–1996 before discussing the mainland's shift to a coercive leverage strategy. It then considers Beijing's use of coercive leverage against prominent Taiwanese corporations with mainland operations in order to influence the outcome of Taiwan's presidential elections. It also evaluates the results of China's coercive approach.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- book
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.001.0001
- Subject:
- Political Science, Asian Politics
This book introduces an innovative theory that pinpoints how states employ economic tools of national power to pursue their strategic objectives. The book shows what Chinese economic statecraft is, ...
More
This book introduces an innovative theory that pinpoints how states employ economic tools of national power to pursue their strategic objectives. The book shows what Chinese economic statecraft is, how it works, and why it is more or less effective. It provides an accessible tool kit to help us better understand important economic developments in the People's Republic of China. The book links domestic Chinese political economy with the international ramifications of China's economic power as a tool for realizing China's strategic foreign policy interests. It presents a novel approach to studying economic statecraft that calls attention to the central challenge of how the state is (or is not) able to control and direct the behavior of economic actors. The book identifies key causes of Chinese state control through tightly structured, substate and crossnational comparisons of business–government relations. These cases range across three important arenas of China's grand strategy that prominently feature a strategic role for economics: China's efforts to secure access to vital raw materials located abroad, Mainland relations toward Taiwan, and China's sovereign wealth funds. The ideas in this book are applicable beyond China and help us to understand how states exercise international economic power in the twenty-first century.Less
This book introduces an innovative theory that pinpoints how states employ economic tools of national power to pursue their strategic objectives. The book shows what Chinese economic statecraft is, how it works, and why it is more or less effective. It provides an accessible tool kit to help us better understand important economic developments in the People's Republic of China. The book links domestic Chinese political economy with the international ramifications of China's economic power as a tool for realizing China's strategic foreign policy interests. It presents a novel approach to studying economic statecraft that calls attention to the central challenge of how the state is (or is not) able to control and direct the behavior of economic actors. The book identifies key causes of Chinese state control through tightly structured, substate and crossnational comparisons of business–government relations. These cases range across three important arenas of China's grand strategy that prominently feature a strategic role for economics: China's efforts to secure access to vital raw materials located abroad, Mainland relations toward Taiwan, and China's sovereign wealth funds. The ideas in this book are applicable beyond China and help us to understand how states exercise international economic power in the twenty-first century.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0004
- Subject:
- Political Science, Asian Politics
This chapter examines the role of economics in China's grand strategy as it rises to great power status in the international system. A good deal of China's post-1978 foreign policy has been focused ...
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This chapter examines the role of economics in China's grand strategy as it rises to great power status in the international system. A good deal of China's post-1978 foreign policy has been focused on facilitating the country's economic development. Increasingly, China finds itself in a position in which it may be able to leverage its growing economic power to advance its foreign policy goals. This chapter begins with an overview of grand strategy as an analytical concept in international relations. It then considers China as a strategic actor and the evolving role of economics in China's contemporary grand strategy, along with Deng Xiaoping's reassessment and strategic reorientation of China toward economic development. It also explains how much of China's modern foreign policy has been designed to serve the requirements of economic development and the international integration of a rising China. Finally, it discusses the utility of economic statecraft in pursuing China's grand strategy.Less
This chapter examines the role of economics in China's grand strategy as it rises to great power status in the international system. A good deal of China's post-1978 foreign policy has been focused on facilitating the country's economic development. Increasingly, China finds itself in a position in which it may be able to leverage its growing economic power to advance its foreign policy goals. This chapter begins with an overview of grand strategy as an analytical concept in international relations. It then considers China as a strategic actor and the evolving role of economics in China's contemporary grand strategy, along with Deng Xiaoping's reassessment and strategic reorientation of China toward economic development. It also explains how much of China's modern foreign policy has been designed to serve the requirements of economic development and the international integration of a rising China. Finally, it discusses the utility of economic statecraft in pursuing China's grand strategy.
Sophia Kalantzakos
- Published in print:
- 2018
- Published Online:
- November 2017
- ISBN:
- 9780190670931
- eISBN:
- 9780190670962
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190670931.003.0002
- Subject:
- Political Science, International Relations and Politics, Political Economy
Resources have been essential inputs in the world economy and at the epicenter of technological developments. There are different theories of resource scarcity, but uninterrupted access to resources ...
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Resources have been essential inputs in the world economy and at the epicenter of technological developments. There are different theories of resource scarcity, but uninterrupted access to resources is vital to modern economies, especially since modern technological applications demand resource inputs from across the globe. Physical depletion and flow disruption, therefore, both pose a series of challenges for policymakers and industry. The examination of China’s use of economic statecraft in the case of the rare-earth crisis and the corresponding response of the European Union, the United States, and Japan provide a salient example of how resource dominance can spill over into global power politics.Less
Resources have been essential inputs in the world economy and at the epicenter of technological developments. There are different theories of resource scarcity, but uninterrupted access to resources is vital to modern economies, especially since modern technological applications demand resource inputs from across the globe. Physical depletion and flow disruption, therefore, both pose a series of challenges for policymakers and industry. The examination of China’s use of economic statecraft in the case of the rare-earth crisis and the corresponding response of the European Union, the United States, and Japan provide a salient example of how resource dominance can spill over into global power politics.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0009
- Subject:
- Political Science, Asian Politics
This chapter examines an instrument of Chinese economic statecraft: the State Administration of Foreign Exchange (SAFE), the financial entity in charge of managing China's foreign exchange reserves. ...
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This chapter examines an instrument of Chinese economic statecraft: the State Administration of Foreign Exchange (SAFE), the financial entity in charge of managing China's foreign exchange reserves. More specifically, it considers one episode to show how the state was able to use SAFE to pursue its strategic foreign policy objectives: Costa Rica's 2007 derecognition of Taiwan. The chapter first provides an overview of SAFE before discussing SAFE's purchase of Costa Rican bonds in 2008 and 2009. It shows that SAFE's bond purchase was part of a larger pattern of economic inducements collectively designed to strengthen Costa Rica's ties to the mainland while severing its connection to Taiwan. The SAFE–Costa Rica episode illustrates how China's sovereign wealth funds can be used to achieve a foreign policy goal.Less
This chapter examines an instrument of Chinese economic statecraft: the State Administration of Foreign Exchange (SAFE), the financial entity in charge of managing China's foreign exchange reserves. More specifically, it considers one episode to show how the state was able to use SAFE to pursue its strategic foreign policy objectives: Costa Rica's 2007 derecognition of Taiwan. The chapter first provides an overview of SAFE before discussing SAFE's purchase of Costa Rican bonds in 2008 and 2009. It shows that SAFE's bond purchase was part of a larger pattern of economic inducements collectively designed to strengthen Costa Rica's ties to the mainland while severing its connection to Taiwan. The SAFE–Costa Rica episode illustrates how China's sovereign wealth funds can be used to achieve a foreign policy goal.
Ben Dew (ed.)
- Published in print:
- 2018
- Published Online:
- January 2019
- ISBN:
- 9781784992965
- eISBN:
- 9781526138705
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9781784992965.003.0001
- Subject:
- History, British and Irish Early Modern History
This introduction outlines the main features of the economic statecraft tradition, a form of historical writing which presented kings and queens as managers of a nation’s financial and commercial ...
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This introduction outlines the main features of the economic statecraft tradition, a form of historical writing which presented kings and queens as managers of a nation’s financial and commercial interests, and sought to assess the contribution they had made to national economic welfare. The significance of the tradition is then examined for (1) debates concerning the relationship between economic and political practice (as discussed by Hannah Arendt and J.G.A. Pocock) and (2) approaches to the history of economic policy. A concluding section summarises the organisation and content of the rest of the book.Less
This introduction outlines the main features of the economic statecraft tradition, a form of historical writing which presented kings and queens as managers of a nation’s financial and commercial interests, and sought to assess the contribution they had made to national economic welfare. The significance of the tradition is then examined for (1) debates concerning the relationship between economic and political practice (as discussed by Hannah Arendt and J.G.A. Pocock) and (2) approaches to the history of economic policy. A concluding section summarises the organisation and content of the rest of the book.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0010
- Subject:
- Political Science, Asian Politics
This chapter examines the National Social Security Fund (NSSF) as a potential instrument of Chinese economic statecraft. More specifically, it considers the factors that make the NSSF unlikely to be ...
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This chapter examines the National Social Security Fund (NSSF) as a potential instrument of Chinese economic statecraft. More specifically, it considers the factors that make the NSSF unlikely to be a source of strategic concern by focusing on its institutional and structural characteristics as well as its investment activities. The chapter begins with a historical overview of the NSSF, followed by a discussion of the NSSF's financing sources and uses. It then reviews the NSSF's mandate and activities before evaluating how the theory applies to the case of the NSSF. It suggests that the NSSF has little potential as an effective tool of China's economic statecraft owing to its institutional structure.Less
This chapter examines the National Social Security Fund (NSSF) as a potential instrument of Chinese economic statecraft. More specifically, it considers the factors that make the NSSF unlikely to be a source of strategic concern by focusing on its institutional and structural characteristics as well as its investment activities. The chapter begins with a historical overview of the NSSF, followed by a discussion of the NSSF's financing sources and uses. It then reviews the NSSF's mandate and activities before evaluating how the theory applies to the case of the NSSF. It suggests that the NSSF has little potential as an effective tool of China's economic statecraft owing to its institutional structure.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0011
- Subject:
- Political Science, Asian Politics
This chapter examines the China Investment Corporation's (CIC) potential as an instrument of Chinese economic statecraft. The CIC is a sovereign wealth fund whose empirics indicate that it lies ...
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This chapter examines the China Investment Corporation's (CIC) potential as an instrument of Chinese economic statecraft. The CIC is a sovereign wealth fund whose empirics indicate that it lies somewhere between the two extremes of the State Administration of Foreign Exchange (SAFE) and the National Social Security Fund (NSSF). In the early days of the CIC, there was little state control over it and its predecessors. As the 2008 fiancial crisis unfolded, the State Council (and the Ministry of Finance in particular) consolidated its control of the CIC. This consolidation marked the second phase of the CIC case. This chapter first provides an overview of the origins, structure, and leadership of the CIC before discussing the sources and uses of the CIC's financing as well as its direct investments. It then applies the theory to better understand the CIC case as an instrument of Chinese economic statecraft. It suggests that the CIC will not be an effective tool for achieving China's foreign policy interests.Less
This chapter examines the China Investment Corporation's (CIC) potential as an instrument of Chinese economic statecraft. The CIC is a sovereign wealth fund whose empirics indicate that it lies somewhere between the two extremes of the State Administration of Foreign Exchange (SAFE) and the National Social Security Fund (NSSF). In the early days of the CIC, there was little state control over it and its predecessors. As the 2008 fiancial crisis unfolded, the State Council (and the Ministry of Finance in particular) consolidated its control of the CIC. This consolidation marked the second phase of the CIC case. This chapter first provides an overview of the origins, structure, and leadership of the CIC before discussing the sources and uses of the CIC's financing as well as its direct investments. It then applies the theory to better understand the CIC case as an instrument of Chinese economic statecraft. It suggests that the CIC will not be an effective tool for achieving China's foreign policy interests.
Stephan Haggard and Marcus Noland
- Published in print:
- 2017
- Published Online:
- September 2017
- ISBN:
- 9781503600362
- eISBN:
- 9781503601994
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9781503600362.003.0008
- Subject:
- Political Science, International Relations and Politics
This chapter looks back at our findings, measuring them against some of the analytic expectations established in our introduction in Chapter 1. It then asks two speculative questions. First, what if ...
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This chapter looks back at our findings, measuring them against some of the analytic expectations established in our introduction in Chapter 1. It then asks two speculative questions. First, what if North Korea were to change? How might that affect the conclusions drawn here? Particular consideration is given to economic reform processes. Second, what if the major parties undertook different strategies with respect to North Korea? These questions permit us to engage in some comparisons with other relevant cases, most notably Iran, and to consider a new spate of diplomatic initiatives—including both sanctions and proposals for engagement—introduced in the wake of the fourth nuclear test in early 2016.Less
This chapter looks back at our findings, measuring them against some of the analytic expectations established in our introduction in Chapter 1. It then asks two speculative questions. First, what if North Korea were to change? How might that affect the conclusions drawn here? Particular consideration is given to economic reform processes. Second, what if the major parties undertook different strategies with respect to North Korea? These questions permit us to engage in some comparisons with other relevant cases, most notably Iran, and to consider a new spate of diplomatic initiatives—including both sanctions and proposals for engagement—introduced in the wake of the fourth nuclear test in early 2016.
Ben Dew (ed.)
- Published in print:
- 2018
- Published Online:
- January 2019
- ISBN:
- 9781784992965
- eISBN:
- 9781526138705
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9781784992965.003.0010
- Subject:
- History, British and Irish Early Modern History
This chapter is concerned with the relationship between David Hume’s writing on political economy and his History of England (1754–61). Underpinning his analysis in these works, it is argued, was an ...
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This chapter is concerned with the relationship between David Hume’s writing on political economy and his History of England (1754–61). Underpinning his analysis in these works, it is argued, was an attempt to give England's commercial and financial interests – interests which were in Hume's estimation of vital importance to government – a proper intellectual foundation. In performing this task, Hume developed a damning critique of the economic statecraft tradition; indeed, it was, in part, the misunderstandings of economic affairs committed by previous generations of historians that he sought to warn his readers against and correct. The chapter opens by looking at how these ideas shaped his essays of the 1740s and 1750s, before moving on to look in detail at the History.Less
This chapter is concerned with the relationship between David Hume’s writing on political economy and his History of England (1754–61). Underpinning his analysis in these works, it is argued, was an attempt to give England's commercial and financial interests – interests which were in Hume's estimation of vital importance to government – a proper intellectual foundation. In performing this task, Hume developed a damning critique of the economic statecraft tradition; indeed, it was, in part, the misunderstandings of economic affairs committed by previous generations of historians that he sought to warn his readers against and correct. The chapter opens by looking at how these ideas shaped his essays of the 1740s and 1750s, before moving on to look in detail at the History.
Stephan Haggard and Marcus Noland
- Published in print:
- 2017
- Published Online:
- September 2017
- ISBN:
- 9781503600362
- eISBN:
- 9781503601994
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9781503600362.003.0001
- Subject:
- Political Science, International Relations and Politics
This chapter reviews the theoretical literature on the effectiveness of sanctions and inducements, with a particular emphasis on the latter. It distinguishes between quid pro quo models of engagement ...
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This chapter reviews the theoretical literature on the effectiveness of sanctions and inducements, with a particular emphasis on the latter. It distinguishes between quid pro quo models of engagement and more transformative models. With respect to the former, the chapter walks through coordination and bargaining problems as well as how the effectiveness of sanctions is affected by characteristics of the target state. It also calls into question the logic of transformative engagement with respect to certain types of authoritarian regimes, and provides an historical review of diplomacy around the Korean peninsula since 1990.Less
This chapter reviews the theoretical literature on the effectiveness of sanctions and inducements, with a particular emphasis on the latter. It distinguishes between quid pro quo models of engagement and more transformative models. With respect to the former, the chapter walks through coordination and bargaining problems as well as how the effectiveness of sanctions is affected by characteristics of the target state. It also calls into question the logic of transformative engagement with respect to certain types of authoritarian regimes, and provides an historical review of diplomacy around the Korean peninsula since 1990.
Stephan Haggard and Marcus Noland
- Published in print:
- 2017
- Published Online:
- September 2017
- ISBN:
- 9781503600362
- eISBN:
- 9781503601994
- Item type:
- book
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9781503600362.001.0001
- Subject:
- Political Science, International Relations and Politics
Because authoritarian regimes like North Korea can impose the costs of sanctions on their citizens, they constitute “hard targets.” Yet such regimes may also be immune—and even hostile—to economic ...
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Because authoritarian regimes like North Korea can impose the costs of sanctions on their citizens, they constitute “hard targets.” Yet such regimes may also be immune—and even hostile—to economic inducements if those inducements imply reform and opening. Can economic carrots and sticks by used effectively with respect to such systems? This book draws on an array of evidence—trade data, surveys of Chinese and South Korea firms doing business in North Korea, and an analysis of the country’s political structure—to capture the effects of sanctions and inducements. The book also provides a detailed reconstruction of the role of economic incentives in the bargaining over North Korea’s nuclear program. While it highlights the difficulties sanctions have faced, it also shows the reluctance of the leadership to weaken its grip on foreign economic activity, suggesting that inducements may have limited effect as well. The case is made through a detailed reconstruction of negotiations over North Korea’s nuclear program. Discussing parallels to Iran, the book urges policy makers to think in terms of gradual strategies—including informational ones—that may have effects only over the long run.Less
Because authoritarian regimes like North Korea can impose the costs of sanctions on their citizens, they constitute “hard targets.” Yet such regimes may also be immune—and even hostile—to economic inducements if those inducements imply reform and opening. Can economic carrots and sticks by used effectively with respect to such systems? This book draws on an array of evidence—trade data, surveys of Chinese and South Korea firms doing business in North Korea, and an analysis of the country’s political structure—to capture the effects of sanctions and inducements. The book also provides a detailed reconstruction of the role of economic incentives in the bargaining over North Korea’s nuclear program. While it highlights the difficulties sanctions have faced, it also shows the reluctance of the leadership to weaken its grip on foreign economic activity, suggesting that inducements may have limited effect as well. The case is made through a detailed reconstruction of negotiations over North Korea’s nuclear program. Discussing parallels to Iran, the book urges policy makers to think in terms of gradual strategies—including informational ones—that may have effects only over the long run.
William J. Norris
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780801454493
- eISBN:
- 9781501704031
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801454493.003.0005
- Subject:
- Political Science, Asian Politics
This chapter examines the challenge of state control with regard to the China National Petroleum Corporation (CNPC). It considers how the state utilizes economic statecraft in the context of efforts ...
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This chapter examines the challenge of state control with regard to the China National Petroleum Corporation (CNPC). It considers how the state utilizes economic statecraft in the context of efforts to secure oil through the creation and subsequent “going out” of the Chinese national oil corporations, which were among the earliest Chinese commercial actors to venture abroad. The chapter begins with a historical background on China's petroleum industry and its relationship to the Chinese state before turning to a discussion of the CNPC's early efforts to venture abroad. In particular, it discusses the CNPC's activities in Sudan and the strategic difficulties caused by the state's “going out” policy. It also explains how Chinese authorities sought to re-establish control over the international activities of its commercial actors in the extractive resources sector through balance of relative resources and unity of the state.Less
This chapter examines the challenge of state control with regard to the China National Petroleum Corporation (CNPC). It considers how the state utilizes economic statecraft in the context of efforts to secure oil through the creation and subsequent “going out” of the Chinese national oil corporations, which were among the earliest Chinese commercial actors to venture abroad. The chapter begins with a historical background on China's petroleum industry and its relationship to the Chinese state before turning to a discussion of the CNPC's early efforts to venture abroad. In particular, it discusses the CNPC's activities in Sudan and the strategic difficulties caused by the state's “going out” policy. It also explains how Chinese authorities sought to re-establish control over the international activities of its commercial actors in the extractive resources sector through balance of relative resources and unity of the state.
Rafael Fernández de Castro and Beatriz Leycegui
- Published in print:
- 2015
- Published Online:
- August 2015
- ISBN:
- 9780190226114
- eISBN:
- 9780190256784
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190226114.003.0009
- Subject:
- Political Science, International Relations and Politics
This chapter examines Mexico’s effective use of diplomacy to achieve economic ends through the North American Free Trade Agreement (NAFTA) and the Pacific Alliance, a new free-trade pact comprising ...
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This chapter examines Mexico’s effective use of diplomacy to achieve economic ends through the North American Free Trade Agreement (NAFTA) and the Pacific Alliance, a new free-trade pact comprising Chile, Colombia, Peru, and Mexico. The chapter relies on Robert Putnam’s two-level game theory as an analytical tool to explain the success of these regional negotiations. In both cases, the presidents involved played successful two-level games by leveraging their leadership to harness the political and bureaucratic apparatus and effectively address domestic and foreign interests. In addition, the presidents were able to turn what is theoretically a negotiation weakness—the strength of domestic constituencies—into a source of bargaining power.Less
This chapter examines Mexico’s effective use of diplomacy to achieve economic ends through the North American Free Trade Agreement (NAFTA) and the Pacific Alliance, a new free-trade pact comprising Chile, Colombia, Peru, and Mexico. The chapter relies on Robert Putnam’s two-level game theory as an analytical tool to explain the success of these regional negotiations. In both cases, the presidents involved played successful two-level games by leveraging their leadership to harness the political and bureaucratic apparatus and effectively address domestic and foreign interests. In addition, the presidents were able to turn what is theoretically a negotiation weakness—the strength of domestic constituencies—into a source of bargaining power.
Sophia Kalantzakos
- Published in print:
- 2018
- Published Online:
- November 2017
- ISBN:
- 9780190670931
- eISBN:
- 9780190670962
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190670931.001.0001
- Subject:
- Political Science, International Relations and Politics, Political Economy
In 2010, because of a geopolitical incident between China and Japan, seventeen elements of the periodic table known as rare earths became notorious overnight. An “unofficial” and temporary embargo of ...
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In 2010, because of a geopolitical incident between China and Japan, seventeen elements of the periodic table known as rare earths became notorious overnight. An “unofficial” and temporary embargo of rare-earth shipments to Japan alerted the world to China’s near monopoly position on the production and export of these indispensable elements for high-tech, defense, and renewable energy sources. A few months before the geopolitical confrontation, China had chosen to substantially cut export quotas of rare earths. Both events sent shockwaves across the markets, and rare-earth prices skyrocketed, prompting reactions from industrial nations and industry itself. The rare-earth crisis is not a simple trade dispute, however. It also raises questions about China’s use of economic statecraft and the impacts of growing resource competition. A detailed and nuanced examination of the rare-earth crisis provides a significant and distinctive case study of resource competition and its spill-over geopolitical effects. It sheds light on the formulation, deployment, longevity, effectiveness, and, perhaps, shortsightedness of policy responses by other industrial nations, while also providing an example of how China might choose to employ instruments of economic statecraft in its rise to superpower status.Less
In 2010, because of a geopolitical incident between China and Japan, seventeen elements of the periodic table known as rare earths became notorious overnight. An “unofficial” and temporary embargo of rare-earth shipments to Japan alerted the world to China’s near monopoly position on the production and export of these indispensable elements for high-tech, defense, and renewable energy sources. A few months before the geopolitical confrontation, China had chosen to substantially cut export quotas of rare earths. Both events sent shockwaves across the markets, and rare-earth prices skyrocketed, prompting reactions from industrial nations and industry itself. The rare-earth crisis is not a simple trade dispute, however. It also raises questions about China’s use of economic statecraft and the impacts of growing resource competition. A detailed and nuanced examination of the rare-earth crisis provides a significant and distinctive case study of resource competition and its spill-over geopolitical effects. It sheds light on the formulation, deployment, longevity, effectiveness, and, perhaps, shortsightedness of policy responses by other industrial nations, while also providing an example of how China might choose to employ instruments of economic statecraft in its rise to superpower status.
Matthew Fuhrmann
- Published in print:
- 2012
- Published Online:
- August 2016
- ISBN:
- 9780801450907
- eISBN:
- 9780801465758
- Item type:
- book
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450907.001.0001
- Subject:
- Political Science, Security Studies
Nuclear technology is dual use in nature, meaning that it can be used to produce nuclear energy or to build nuclear weapons. Despite security concerns about proliferation, the United States and other ...
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Nuclear technology is dual use in nature, meaning that it can be used to produce nuclear energy or to build nuclear weapons. Despite security concerns about proliferation, the United States and other nuclear nations have regularly shared with other countries nuclear technology, materials, and knowledge for peaceful purposes. This book argues that governments use peaceful nuclear assistance as a tool of economic statecraft. Nuclear suppliers hope that they can reap the benefits of foreign aid—improving relationships with their allies, limiting the influence of their adversaries, enhancing their energy security by gaining favorable access to oil supplies—without undermining their security. By providing peaceful nuclear assistance, however, countries inadvertently help spread nuclear weapons. This book draws on several cases of “Atoms for Peace,” including U.S. civilian nuclear assistance to Iran from 1957 to 1979; Soviet aid to Libya from 1975 to 1986; French, Italian, and Brazilian nuclear exports to Iraq from 1975 to 1981; and U.S. nuclear cooperation with India from 2001 to 2008. It also explores decision making in countries such as Japan, North Korea, Pakistan, South Africa, and Syria to determine why states began (or did not begin) nuclear weapons programs and why some programs succeeded while others failed. The book concludes that, on average, countries receiving higher levels of peaceful nuclear assistance are more likely to pursue and acquire the bomb—especially if they experience an international crisis after receiving aid.Less
Nuclear technology is dual use in nature, meaning that it can be used to produce nuclear energy or to build nuclear weapons. Despite security concerns about proliferation, the United States and other nuclear nations have regularly shared with other countries nuclear technology, materials, and knowledge for peaceful purposes. This book argues that governments use peaceful nuclear assistance as a tool of economic statecraft. Nuclear suppliers hope that they can reap the benefits of foreign aid—improving relationships with their allies, limiting the influence of their adversaries, enhancing their energy security by gaining favorable access to oil supplies—without undermining their security. By providing peaceful nuclear assistance, however, countries inadvertently help spread nuclear weapons. This book draws on several cases of “Atoms for Peace,” including U.S. civilian nuclear assistance to Iran from 1957 to 1979; Soviet aid to Libya from 1975 to 1986; French, Italian, and Brazilian nuclear exports to Iraq from 1975 to 1981; and U.S. nuclear cooperation with India from 2001 to 2008. It also explores decision making in countries such as Japan, North Korea, Pakistan, South Africa, and Syria to determine why states began (or did not begin) nuclear weapons programs and why some programs succeeded while others failed. The book concludes that, on average, countries receiving higher levels of peaceful nuclear assistance are more likely to pursue and acquire the bomb—especially if they experience an international crisis after receiving aid.
