The purpose of this paper is to explain the relative neglect of the Euro’s leverage of competitiveness and the differential impact of the common currency on the competitiveness of the Eurozone countries. Since the Eurozone’s leverage of competitiveness is not widely recognized, it is first simply demonstrated here by means of an apt analogy with handicap sports, such as horse racing and golf. The importance of the competitiveness leverage is then examined by reference to the contrasting experience of Greece and Germany. Finally, it is argued that there is a discordance between economic theory (and particularly the theory of international trade) and the concept of competitiveness. This extends across a number of dimensions, ranging from historical origins, ideology and methods to fundamental theory. This dissonance has led to a disregard of competitiveness by mainstream academic economics, not only in the context of the optimal currency area literature but also more generally, and constitutes the reason for the neglect of the Eurozone’s leverage of competitiveness.
This paper attempts to provide a fresh examination of some of the assumptions that underpin two theories explaining the processes of European integration – liberal intergovernmentalism and postfunctionalism – in the context of two major crises that the European Union (EU) has had to contend with over the course of the last 10 years – the withdrawal of the United Kingdom (UK) from the EU and the Ukrainian crisis, which in February 2022 escalated into a full-blown Russian invasion of Ukraine. It demonstrates how 1) liberal intergovernmentalism, particularly with regard to the domestic preferences formation stage and some critiques notwithstanding, is highly relevant in explaining the developments surrounding the decision to hold a referendum on the UK’s continued future in the European Union, 2) postfunctionalism then takes up the baton in accounting for the main reasons behind the pro-”Leave” result of the 2016 referendum, which eventually resulted in the country’s formal withdrawal from the EU on 31 January 2020, 3) the war in Ukraine has in both an indirect and direct fashion brought about a change (that has the potential to turn out to be a fundamental one) in the post-Brexit relations between the EU and the UK, which once again can at least partially be explained by drawing on both of the abovementioned theories of European integration.
Wars have deeply determined the economic spheres of the Middle East and Africa, leading to long-term instability and developmental complications. While the human cost of conflict is well documented, its economic results remain overlooked. This study applies an econometric approach to analyse the impact of war on economic growth across conflict affected countries from 2010 to 2023. The findings reveal that both war and corruption significantly restrict economic performance, with corruption negatively impacting growth (-0.3747) and conflict-driven instability, as measured by the Global Peace Index, further intensifying economic decline (-1.7803). Yet, the direct economic cost of war was found to be statistically insignificant, suggesting that broader systemic setbacks such as institutional deterioration, capital flight, and governance failures are the primary obstacles to growth. The results highlight the urgent need for strong governance, anti-corruption standards, and peace-building strategies to support post-conflict economic recovery. This study provides practical insights for policymakers, offering strategic recommendations to promote sustainable development in war-affected regions.
Koch, Dirk-Jan (2024). Foreign Aid and Its Unintended Consequences (1st ed.). Routledge. https://doi.org/10.4324/9781003356851 Foreign Aid and Its Unintended Consequences by Dirk-Jan Koch, is an attempt to shift the aid effectiveness debate off the linear question of what works to the more complex and much-needed question of what else happens when international development interventions meet the randomness of the real world. Koch claims that the unintended effects are not rare exceptions, but they are an inherent characteristic of development assistance and he places these effects into ten (10) categories grounded in bounded learning and complexity theory. The author relies on qualitative methods by adopting case studies, experience and testimonies to illustrate the cases instead of quantitative generalisation. The review aims to critically assess Koch’s theoretical contribution to the debate on aid effectiveness and development policy, by highlighting the strengths, limitations and gaps for future studies.
The Belt and Road Initiative (BRI) stands as one of the main instruments of China’s geoeconomic rise, challenging the monetary and financial hegemony of the United States and promoting a reorganization of global power dynamics. Its expansion into Latin America reflects a strategic move to extend China’s influence while simultaneously generating a new configuration of economic interdependence in the region. By analyzing the hegemony of the dollar standard and Sino-Latin American economic relations, this study investigates the impacts of the BRI on Latin America and its implications in the ongoing power struggle between China and the United States. It is argued that, although the Chinese initiative offers an alternative to traditional Western financing and enables new development opportunities, it also imposes structural and strategic challenges. The growing Chinese presence in the region may consolidate new forms of economic dependency, deepening Latin America’s specialization in commodity exports and infrastructure aimed at external markets. Furthermore, the BRI unfolds within an environment of increasing geopolitical rivalry, where the United States seeks to maintain its historical influence over Latin America through alternative financial and diplomatic mechanisms. Thus, this study highlights the complexity of Latin America’s integration into the Belt and Road Initiative, emphasizing the monetary, structural, and political tensions that arise from this process and the challenges that Latin American countries face in building an autonomous strategy amid the ongoing reconfiguration of the global economy.
