Sogang ilas research series on international affairs Volume 9

Volume 9, 2009 ISSN 2093-193X SOGANGIIAS RESEARCH SERIES ON INTERNATIONAL AFFAIRS Regional Integration in Africa: Focusing on External and Internal Constraints Teke Nicolyn Nyinmaah & Kyu Young Lee Impacts of Intellectual Property Right Protection in Foreign Countries on Korea's Exports Nguyen K. Doanh, Yoon Heo c£ Nguyen T. Gam Development and Transformation of the CIA and American Covert Action: Comparing the Cold War Era and Post-911 Period Sang-eun Lee & Jae Chun Kim Internal Negotiation of KORUS FTA: Korean Perspectives Hong Ryul Lee Changing Pattern of Korea-Vietnam Trade Relations Tran Nhuan Kien & Hong Ryul Lee Institute of International and Area Studies Sogang University Volume 9, 2009 ISSN 2093-193X S o g a n g I IA S R e s e a r c h S e r ie s o n I n t e r n a t i o n a l A f f a ir s C O N T EN T S Regional Integration in Africa: 7 Focusing on External and Internal Constraints Teke Nicolyn Nyinmaah & Kyu Young Lee Impacts of Intellectual Property Right Protection 33 in Foreign Countries on Korea’s Exports Nguyen K. Doanh, Yoon Heo & Nguyen T. Gam Development and Transformation of the CIA 93 and American Covert Action: Comparing the Cold War Era and Post-911 Period Sang-eun Lee & Jae Chun Kim Internal Negotiation of KORUS FTA: Korean Perspectives 131 Hong lfyul Lee Changing Pattern of Korea-Vietnam Trade Relations 170 Tran Nhuan Kien & Hong Ryul Lee Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn 1 Editor’s Note It is my great pleasure to present the ninth volume of the Sogang 11AS Research Series on International Affairs, the journal of the Institute of International and Area Studies (I1AS) of Sogang University. The IIAS of Sogang University has the goal of promoting research on international issues from diverse perspectives, since it was founded in 1997. Publishing this journal is one of the major activities of the IIAS to achieve the goal. This volume includes five papers written by scholars of diverse fields, including international trade, international relations, and area studies. This fact is very much consistent with the journal’s policy of promoting multi-disciplinary international studies. Let me briefly summarize the papers of this volume. The paper by Teke Nicolyn Nyinmaah and Kyu Young Lee is titled as “Regional I n t e g r a ti o n in Africa: focus.ng on External and Interna,' „ art,cle deals with the subject of regional integration Constraints. This an wore regional organizations in Africa today that in Africa. There are ww B in any other continent and most African countries are members o f mote than one regional integration initiative. A t the same time, it ;s widely recognized that ^ ^ UP *° CXpeCta,I0nS ^ Has these initiatives produced onft limited results so far? Were the anenges and constraints simply «*> difficu/t? The underlying reasons Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn for the disappointing record need to be thoroughly examined and understood if African integration initiatives are to realize their potentials. There has been limited, if any, significant change in the structure of African economies since independence. In order to reap the benefit of trade, some basic economic fundamentals must first be addressed. The paper by Nguyen K. Doanh, Yoon Heo, and Nguyen T. Gam is titled as “Impacts of Intellectual Property Right Protection in Foreign Countries on Korea’s Exports” This paper investigates the impacts of IPR protection in foreign countries on Korea’s total exports and exports by commodity. Using the modified gravity equation with fixed effects and random effects models for the panel data, our results are summarized as follows. First, reinforced IPR protection in foreign countries has a positive effect on Korea’s total exports, indicating the dominance of market expansion effects. Second, stronger protection of IPRs induces Korea’s exports to all foreign countries regardless of their level of development. The effects are stronger in medium-income and high- income countries, followed by low-income countries where the effect is not clear. Third, Korea tends to export more to countries with strong imitative ability when the IPR protection in these countries is strengthened, suggesting the market expansion effects. Finally, stronger protection of IPRs in foreign countries with weak imitative ability leads to ambiguous reduction in Korea’s exports, demonstrating no market power effects. Efforts to increase the GDP, improve social infrastructure, accelerate domestic reforms (openness to trade) and importantly strengthen IPR protection in foreign countries are suggested as a remedy Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn for obstacles to Korea’s exports. The paper titled as “Development and Transformation of the CIA and American Covert Action: Comparing the Cold War Era and Post-911 Period” is coauthored by Sang-eun Lee and Jae Chun Kim. The objective of this paper is to place American covert action in the context of larger roles that American intelligence community has played in the post WWII era. Among 16 intelligence organizations that make up American intelligence community, the CIA has been in charge of American covert action. American intelligence activities can be divided into TECHINT and HUMINT, depending on the means that activities rely on. Covert action is one particular type of HUMINT, and since the CIA is in charge of running American HUMINT, it is also in charge of covert action as well. The paper also summarizes some of the changes that the end of the Cold War has brought about to American intelligence policies in general and the CIA and covert action in specific. The CIA was going through identity crisis in the wake of sudden collapse of the Cold War international order. Covert action was no longer thought of as legitimate foreign policy tool of the US, because it lost much of its raison d’etre - exigency of coping with Soviet communist threat. But 911 once again brought the CIA and covert action to the forefront of US foreign policy making. The paper by Hong Ryul Lee is titled as “Internal Negotiation of KORUS FTA. Korean Perspective’ . The main objective of this paper is to analyze internal negotiations of KORUS FTA in Korean perspective Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn using Putnam’s two-level game theory and Lohmann and O’Halloran’s model. In the KORUS FTA, the nature of negotiation issue is heterogeneous; the reaction of domestic interest groups is asymmetric; and the negotiation issue is politicized in Korea. President’s leadership variable is flexible. Presidents tend to consider the national interests than his or her political interests. The political leadership of the presidents had contributed significantly to the conclusion of the FTAs. The empirical results in the case of Korea show that except for inflation, other independent variables do not have statistical significance. The impact of inflation on the tariff rate shows negative. Regarding the effect of the President’s party, coefficients indicate that Republican presidents in Korea tend to decrease the tariffs. This effect, however, is not statistically significant at the 0 to 10 percent level. The result of the divided government shows that a shift from a unified to divided government increases the tariff rate. However, this impact is not clear, since it does not have statistical significance at the conventional level (0- 10%). The Tran Nhuan Kien and Hong Ryul Lee’s paper “Changing Pattern of Korea-Vietnam Trade Relations” analyzes the trends in bilateral trade between Korea and Vietnam over the past decade and to draw possible implications for their future trade relations. The main findings of this paper are as follows. First, the commodity trade patterns between Korea and Vietnam remained virtually unchanged even though the bilateral trade between the two has expanded significantly over the past decade. Second, there has been a high and growing share of intermediate goods Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn in Korean exports and of consumption goods in Korean imports. Third, the technological level embodied in Korea’s exports to Vietnam is much higher than that of Vietnam’s export to Korea. Fourth, Vietnam’s exports had been less diversified as compared to Korea. Fifth, the bilateral trade between Korea and Vietnam has been less intense than their respective trade with other countries in the world during the recent years. Sixth, Korea-Vietnam bilateral trade has been mainly inter-industry trade. Seventh, Vietnam enjoyed a comparative advantage mainly in either primary products or low-technology manufactures while Korea enjoys a comparative advantage primarily in manufactured products and machinery and transport equipment. The high degree of trade complementarity between Korea and Vietnam suggests that a free trade agreement will bring about greater benefits for the two countries. 1 hope this volume will contribute to the advancement of international and area studies in Korea by facilitating academic discussions. Further. 1 promise that the IIAS of Sogang University will make its effort to increase the number of articles and improve the qualities of the papers published in this journal in the next volumes. Prof. Se Young Ahn Director In stitute o f Internation a I a n d A re a Studies S o g a n g University Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn Regional Integration in Africa: Focusing on External and Internal Constraints 7 Regional Integration in Africa: Focusing on External and Internal Constraints Teke Nicolyn Nyinmaah* Kyu Young Lee** Abstract The global trade environment is increasingly characterised by regional integration agreement. Most of the regional arrangements are trade focused while others are based on cooperation on a broader range of economic and political issues. Regional trade agreements are more complex and comprehensive in their scope, design and depth. Despite this increasing interest in regionalism, there are different viewpoints on the desirability and design of agreements for development. These differencesrevolve around two choices: trade focused regional integration and development-based integration whose objectives are much broader than trade integration. Opponents of trade focused integration argue that development objectives sought through trade integration can be targeted more directly by focusing on a broader set of economic 'fundamentals' and that static welfare gains from regional trade integration are typically modest. The performance of * Ph. D. Candidate at Graduate School of International Studies. Sogang University ** Professor at Graduate School of Intematinal Studies. Sogang University Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn Teke Nicolyn Nyinmaah / Kyu Young Lee trade focused regional integration in developing countries has been dismal and the trade specific objectives of RTAs are best achieved through multilateral (WTO) agreements, which are considered more welfare enhancing than RTAs. Proponents counter that broad-based regional integration agreements tend to lack commitment, policy harmonization and the inability to catalyze trade liberalization needed to assure private investors. It has been argued that this partly accounts for the continued existence of overlapping memberships in numerous regional agreements especially in Africa and their historically dismal performance. There are more regional organizations in Africa today than in any other continent and most African countries are members of more than one regional integration initiative. At the same time, it is widely recognized that many initiatives have not live up to expectations. Why has these initiatives produced only limited results so far? Were the challenges and constraints simply too difficult? The underlying reasons for the disappointing record need to be thoroughly examined and understood if African integration initiatives are to realize their potentials. There has been limited, if any, significant change in the structure of African economies since independence. In order to reap the benefit of trade, some basic economic fundamentals must fust be addressed. Key words: Integration, Trade, Development, Regional Policies. Regional Institutions. Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn Regional Integration in Africa: Focusing on External and Internal Constraints 9 1.Introduction It has been widely acknowledged that African regional integration has bore little fruits despite all the integration initiatives that have been put forward. Decades after independence, African countries continueto grapple with seemingly intractable developmental challenges.1 According to Qobo Mzukisi earlier strategies, including import substitution industrialization (ISI) and structural adjustment programmes (SAPs), failed to reverse Africa’s declining economic fortunes. Against a background of precarious dependence on the international market and general developmental malaise, regional integration is widely accepted as the roadmap to Africa’s development.2 In recent decades, the urgency for regional integration has been underscored by a conjuncture of external 1 Africa is not a country, as such the different countries had different dates in the attainment of independence as follows; 1847-Liberia; 1951-Eygpt; 1956-Sudan, Tunisia & Morocco; 1957-Ghana; 1958-Guinea; 1960- Chad, Benin, Nigeria, Ivory Coast, Madagascar, Central African Republic, Mali, Niger, Senegal, Burkina Faso, Mauritania, Togo, Zaire. Somalia, Congo. Gabon, Cameroon; 1961-Sierra Leone, South Africa (recognized as the Republic of South Africa, the indigenous people (Black Africans), were living under apartheid, and thus not truly independent); 1962-Algeria, Burundi, Rwanda, Uganda; 1963-Kenya. Tanzania; 1964-Malawi, Zambia; 1965-Gambia; 1966- Bostwana, Lesotho: 1968-Equatorial Guinea. Mauritius, Swaziland; 1969-Guinea- Bissau. Libya; 1975-Angola. Cape Verde. Comoros. Mozambique. Sao Tome; 1976-Seychelles: 1977-Djibouti; 1980-Zimbabwe; 1990-Namibia; 1994- Indige-nous Black Africans free from apartheid in South Africa. http://www. ipoaa.com/african_independence.htm( Search date: 20.01.2010) 2 Qobo Mzukisi, The challenges o f regional integration in Africa In the context o f globalization and the prospects for a United States o f Africa. Institute for Security Studies. ISS Paper 145 (Johannesburg. June 2007). pp. 1-3. http://www.issafrica.org/dvnamic/ administration/file_manager/file_links/PAPER145H.pdf?link_id=&slink_id=4674&link_t ype=&slink type=13&tmpl_id=3. (Search date: 03.30.2009). Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn [...]... Integration; and introduction.” Jaime De Melo and Arvind Panagariya (eds ) New Dimensions in Regional Integration (Cambridge: Cambridge University Press 199 3) p 247 29 Economic Report on Africa (ERA) “African Union Developing African Agriculture through Regional Value Chains, United Nations Economic Commission for Africa." Addis Ababa, April 20 09, http://www.un.un.org/regionaJcominissions/crisis/ecaera 09. pdf... Ronald J Oakerson "Regionalism, localism and metropolitan governance; suggestion from the research program on local public economics." Stale and Local Government Re\iem Vol 32 No 5 (2000), pp 1 69- 79 quoted in Michael Keating ; and John Loughlin (eds.) The Political Economy o f Regionalism (London: Frank Cass 199 7), pp 34-35 4 Robert Delvin and Lucto Castro "Regional Banks and Regionalism a ne*\ frontier... Development: Regional Challenges and the Regional Development Banks, Institute for International Economics, Washington DC: February 19, 2002, pp 1-20, www.iie.com (Search date: 04.05.20 09) Economic Report on Africa (ERA), “African Union Developing African Agriculture through Regional Value Chains, United Nations Economic Commission for Africa.” http://www.un.org/regional commissions/crisis/ecaera 09. pdf (Search... 1 No 2 ( 197 9), p 693 1 William Zartman, The Politics o f Trade Negotiation between Africa and the EE 2 (Princeton University Press, 197 1), pp 43-50 13 J Peterson and E Bomberg External Trade Policy: Decision-making in the European Số hóa bởi Trung tâmMartin’sliệu – ĐH TN Union (New York: St Học Press 199 9), pp 90 -1 19 http://www.lrc-tnu.edu.vn R egional Integration in A frica: Focusing on External... Louise, “Regionalism in Historical Perspective.” Fawcett, L and Hurrell A (eds.) Regionalism in World Politics: Regional Organtahon and International Order Oxford: Oxford University Press 199 5 pp 9- 36 Keating, Michael and Loughlin, John (eds.) The Political Economy o f Regionalism London: Frank Cass, 199 7 Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn R egional Integration in A frica:... characterized by progressive convergence of economic and social parameters between locals and regions and increasing degrees of interdependence Regional integration can also be driven by policy-induced regional cooperation, or regionalism.4 Regional Cooperation between two or more countries can also take place without pretensions o f regional integration.5 Functional regional cooperation involves an adjustment... regressed In 199 0, John Williamson codified the praise for East Asian economy 1 Ibid 4 1 Martin Guy, "The political economy o f African - European relations from Yaounde 5 I to Lome 11, 196 3- 198 0: a case study in neo-colonialism and dependency, " Diss Indiana University, 198 2, pp 299 -335 16 William Brown, The European Union and Africa: the restructuring o f North-South Relations (London: I B Tauris... reductions and complete liberalization on government revenue and the welfare effect on different sectors of an economy has clear political implications.26 Regional economic integration as stated before involves a series o f cooperative efforts from free trade area, customs union, common market and economic community Regional integration in Africa is hard to define Strands such as ‘developmental regionalism’... egional Integration in A frica: Focusing on External and Internal C onstraints 13 the formation o f regional blocks Apart from the continent-wide movement, there are many overlapping regional blocks within the continent Despite the existence o f many regional integration schemes, Africa has not yet reaped the fruits of integration like its model, the EU In the 199 0s, a different framework of regionalism... and the private sector, in order to strengthen solidarity and cohesion amongst the peoples of Africa As a continental organization it focuses on the promotion of peace, security and stability on the continent as a prerequisite for the implementation of the development and integration agenda of the Union 3 Conclusions Regional institutions are important in defining the issues, in mobilizing resources, . Volume 9, 20 09 ISSN 2 093 - 193 X SOGANGIIAS RESEARCH SERIES ON INTERNATIONAL AFFAIRS Regional Integration in Africa: Focusing on External and Internal Constraints Teke Nicolyn. the ninth volume of the Sogang 11AS Research Series on International Affairs, the journal of the Institute of International and Area Studies (I1AS) of Sogang University. The IIAS of Sogang University. so-called “second generation” free trade areas which go beyond traditional market 9 Mothae Maruping. “Challenges for Regional Integration in Sub-Saharan Africa: Macroeconomic Convergence and Monetary