ivan lukas prague global policy institue - glopolis economic partnership agreements and new...
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IVAN LUKASPRAGUE GLOBAL POLICY
INSTITUE - GLOPOLIS
ECONOMIC PARTNERSHIP AGREEMENTS AND NEW
SOVEREIGNTY CONCEPTS Speaker name 1
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NEW GROWTH MODEL- ALTERNATIVE TO NEO-LIBERAL ECONOMIC GLOBALIZATION DEVELOPMENT understood as1.STABLE CLIMATE AND ENERGY SECURITY2. FOOD SECURITY 3. INDUSTRIAL/SERVICES SECTOR
DEVELOPMENT AND STABLE FINANCEAND ITS ENEMIES ->
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STABLE CLIMATE AND ENERGY SECURITY• Energy security: access to energy sources needed
for sustainable livelihood is secured– currently 1,4 billion people in ssA without access to electricity
• access to energy sources at global level – threatened by oil peak
• Stable climate – threatened by high emission energy sources (oil, coal, gas )
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2. food security
• all people, at all times, have physical access to safe nutritious food which meets their dietary need and food preferences for active and healthy lives
Threatened by: - vagaries of international markets (price fluctuations)- prices at local level in ACP which go below local production costs (with also health
risks associated) as a result of increased global competition prices - general decline of local agri- usage of biofuels becasue of oil peak -> food shortages
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Economic and financial security
• industrial development and stable finance• Threatened by unfair competition as a result
of tariff reduction and unmanaged flows of hot money
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New sovereignty concepts, localization and policy space
• Sovereignty as an expression of basic freedom, human right and ultimate goal of development - as opposed to dependence, vulnerability and powerlessness
• Energy sovereignty • Food sovereignty • Economic sovereignty
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Energy sovereignty
• locally (regions, communities, families) available renewable energy sources, ability to control energy production and distribution processes
• right to decide whether they want to export their primary energy sources (raw materials, oil, coal
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Food sovereignty
• localization - eat what you produce, produce what you eat
• protection of local markets• development of small, agro-ecological farms
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Economic sovereignty
• infant industry protection• in case of finances the regulation is even more
in order – financial integration only for “advanced” states
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• the bottom line: re-embedding of economics into nations regions and local communities
• liberal international system is not beneficial for all members of the system
• certain conditions must be met to benefit from integration: relatively developed national economy, mobilization of internal resources, good regulatory framework
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EPAs and New sovereignty concepts
• Energy sovereignty- control over the export of raw materials will
be compromised; more trade will mean more transport and more emissions
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EPAs and Food sovereignty
• need for flexible level of protection: this is threatened by : • 1. prohibition of quantitative restrictions - the parties to the
EPAs must abolish all limits on imports by the time of signing the EPAs(e.g. Namibia threatened),
• 2. the safe guard measures (can be applied only once the injury happened) are much more restricted than in WTO provisions,
• 3. tariff standstill clause (applies also to sectors excluded from liberalization
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EPAs and economic sovereignty
• by reducing the tariffs local industries can not develop • food preparations, clothing, leather and foot wear, paper
products, chemicals, infant agro-based manufacturing industries
• Liberalization of financial services will lead to inflow of hot money (although this is not so much of an issue in underdeveloped and thinly integrated financial sectors in LDCs
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GENERAL POLICY RECOMMENDATIONS FROM THE POINT OF VIEW OF NEW GROWTH MODEL • mix of openness and regulation - policy space • mixture of local and global strategies • sequencing of liberalization • non-reciprocal liberalization (protection of regional and national markets) • substantial support measures/taking into account adjustment costs; alternative regional integration
(not open)• It is crucial that EU Member States work more closely with the Commission• need to raise the issue in the national parliaments • political will
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