Financial Statecraft

The time is ripe to ask fundamental questions about what Benn Steil and Robert Litan have coined as "financial statecraft,” or those aspects of economic statecraft directed at influencing international capital flows.

Author: Benn Steil

Publisher:

ISBN: 030010975X

Category: Business & Economics

Page: 208

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As trade flows expanded and trade agreements proliferated after World War II, governments—most notably the United States—came increasingly to use their power over imports and exports to influence the behavior of other countries. But trade is not the only way in which nations interact economically. Over the past two decades, another form of economic exchange has risen to a level of vastly greater significance and political concern: the purchase and sale of financial assets across borders. Nearly $2 trillion worth of currency now moves cross-border every day, roughly 90 percent of which is accounted for by financial flows unrelated to trade in goods and services—a stunning inversion of the figures in 1970. The time is ripe to ask fundamental questions about what Benn Steil and Robert Litan have coined as “financial statecraft,” or those aspects of economic statecraft directed at influencing international capital flows. How precisely has the American government practiced financial statecraft? How effective have these efforts been? And how can they be made more effective? The authors provide penetrating and incisive answers in this timely and stimulating book.

The BRICS and Collective Financial Statecraft

Introduction: the BRICS as a club -- Global power shift: the BRICS, building capabilities for influence -- BRICS collective financial statecraft: four cases -- Motives for BRICS collaboration: views from the five capitals -- Conclusion: ...

Author: Cynthia A. Roberts

Publisher: Oxford University Press

ISBN: 9780190697525

Category: Business & Economics

Page: 272

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In the first decade of the 21st century, five rising powers (Brazil, Russia, India, China, and South Africa) formed an exclusive and informal international club, the BRICS. Although neither revolutionaries nor extreme revisionists, the BRICS perceive an ongoing global power shift and contest the West's pretensions to permanent stewardship of the existing economic order. Together they have exercised collective financial statecraft, employing their expanding financial and monetary capabilities for the purpose of achieving larger foreign policy goals. This volume examines the forms and strategies of such collective financial statecraft, and the motivations of each individual government for collaborating through the BRICS club. Their cooperative financial statecraft takes various forms, ranging from pressure for "inside reforms" of either multilateral institutions or global markets, to "outside options" exercised through creating new multilateral institutions or jointly pushing for new realities in international financial markets. To the surprise of many observers, the joint actions of the BRICS are largely successful. Although each member has its unique rationale for collaboration, the largest member, China, controls resources that permit it the greatest influence in intra-club decision-making. The BRICS cooperate due to both common aversions (for example, resentment over being perennial junior partners in global economic and financial governance and resistance to infringements on their autonomy due to U.S. dollar dominance and financial power) and common interests (such as obtaining greater voice in international institutions, as the IMF). The group seeks reforms, influence, and enhanced leadership roles within the liberal capitalist global system. Where blocked, they experiment with parallel multilateral institutions in which they are the dominant rule-makers. The future of the BRICS depends not only on their bargaining power and adjustment to market players, but also on their ability to overcome domestic impediments to sustainable economic growth, the basis for their international influence.

The Financial Statecraft of Emerging Powers

Financial statecraft' goes beyond sanctions against rogue states. The aims of financial statecraft may be defensive or offensive, its targets bilateral or systemic, and its instruments financial or monetary.

Author: L. Armijo

Publisher: Springer

ISBN: 9781137429384

Category: Political Science

Page: 189

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Financial statecraft' goes beyond sanctions against rogue states. The aims of financial statecraft may be defensive or offensive, its targets bilateral or systemic, and its instruments financial or monetary. Regions and countries profiled include Argentina, Venezuela, Brazil, India, Southeast Asia, China, and Japan.

Financial Statecraft

In the mid-1990s, after the customary lag required for politics to catch up with economics, the arsenal of economic statecraft began expanding in response to the growing importance of financial flows. Both the Clinton administration and ...

Author: Benn Steil

Publisher: Yale University Press

ISBN: 0300128266

Category: Business & Economics

Page: 224

View: 692

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divAs trade flows expanded and trade agreements proliferated after World War II, governments—most notably the United States—came increasingly to use their power over imports and exports to influence the behavior of other countries. But trade is not the only way in which nations interact economically. Over the past two decades, another form of economic exchange has risen to a level of vastly greater significance and political concern: the purchase and sale of financial assets across borders. Nearly $2 trillion worth of currency now moves cross-border every day, roughly 90 percent of which is accounted for by financial flows unrelated to trade in goods and services—a stunning inversion of the figures in 1970. The time is ripe to ask fundamental questions about what Benn Steil and Robert Litan have coined as “financial statecraft,” or those aspects of economic statecraft directed at influencing international capital flows. How precisely has the American government practiced financial statecraft? How effective have these efforts been? And how can they be made more effective? The authors provide penetrating and incisive answers in this timely and stimulating book. /DIV

Financial Statecraft and Transaction Costs

The scholarly debate on currency internationalization focuses on country characteristics and policies as the main determinants in currency competition.

Author: Marina Zucker Marques

Publisher:

ISBN: OCLC:1247938958

Category:

Page:

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The scholarly debate on currency internationalization focuses on country characteristics and policies as the main determinants in currency competition. However, this literature has neglected the fact that, given the intertwined nature of the international monetary system, other countries' actions and the functioning logic of international finance can also impact a currency's international status. This article shows that RMB usage has been boosted not only by Chinese statecraft but also by economic actors' recent difficulties in using the dollar. The American financial sanctions against Chinese trade partners, the cyclical instability of international finance, as well as peripheral countries' low inflows of dollars have encouraged firms and banks to use the renminbi as an alternative to the dollar. In addition to contributing to a broader understanding of the drivers of currency internationalization, this article proposes a model that explains the mechanisms that push firms and banks away from the incumbent international currency. I posit that changes in domestic and international conditions influence currency transaction costs, thereby propelling economic actors to increase their use of currencies with relatively lower transaction costs. Interviews with Chinese senior officials from the PBOC and the Ministry of Commerce, manufacturing companies, and bank staff are the main primary sources for this article. I triangulate this information with news reports and speeches both in Chinese and English.

China s Economic Statecraft Co optation Cooperation And Coercion

This book aims to study China's economic statecraft in the contemporary era in a comprehensive manner.

Author: Li Mingjiang

Publisher: World Scientific

ISBN: 9789814713481

Category: Political Science

Page: 328

View: 730

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This book aims to study China's economic statecraft in the contemporary era in a comprehensive manner. It attempts to explore China's approaches to using its economic, trade, investment, and financial power for the pursuit of its political, security, and strategic interests at the regional and global levels. The volume addresses three major issue areas in particular. The first issue pertains to how Beijing has used its economic clout to protect what it perceives as its "core interests" in its external relations. Three cases are included: the Taiwan issue, human rights, and territorial dispute in the South China Sea. The second major area of inquiry focuses on how China has employed its economic power in its key bilateral relations, including relations with Japan, North Korea, the United States, and other states in the East Asian region. The third issue concerns China's economic statecraft in the global context. It addresses the impacts of China's economic power and policy on the transformation of the global financial structure, developments in Africa, the international intellectual property rights regime, and China's food security relations with the outside world.

Minilateralism

This book explains how these strategies work and reveals how this new diplomatic toolbox will reshape how countries do business with one another for decades to come.

Author: Chris Brummer

Publisher: Cambridge University Press

ISBN: 9781139868174

Category: Law

Page:

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Economic diplomacy is changing. The multilateral organizations that dominated the last half of the twentieth century no longer monopolize economic affairs. Instead, countries are resorting to more modest 'minilateral' strategies like trade alliances, informal 'soft law' agreements, and financial engineering to manage the global economy. Like traditional modes of economic statecraft, these tools are aimed at both liberalizing and supervising international financial policy in a world of diverse national interests. But unlike before, they are specifically tailored to navigating a post-American (and post-Western) world where economic power is more diffuse than ever before. This book explains how these strategies work and reveals how this new diplomatic toolbox will reshape how countries do business with one another for decades to come.

Challenges to China s Economic Statecraft

This book presents a comprehensive assessment of China's economic statecraft and its challenges.

Author: Yi Edward Yang

Publisher: Rowman & Littlefield

ISBN: 9781498583459

Category: Political Science

Page: 310

View: 939

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This book presents a comprehensive assessment of China's economic statecraft and its challenges. The contributors explore the various factors and dynamics that determine the effectiveness of China's effort to turn its wealth into global power.

The BRICS and Collective Financial Statecraft

Introduction: the BRICS as a club -- Global power shift: the BRICS, building capabilities for influence -- BRICS collective financial statecraft: four cases -- Motives for BRICS collaboration: views from the five capitals -- Conclusion: ...

Author: Cynthia A. Roberts

Publisher: Oxford University Press, USA

ISBN: 0190697555

Category: BRIC countries

Page: 289

View: 286

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Introduction: the BRICS as a club -- Global power shift: the BRICS, building capabilities for influence -- BRICS collective financial statecraft: four cases -- Motives for BRICS collaboration: views from the five capitals -- Conclusion: whither the BRICS?

Smart Sanctions

Smart Sanctions explores the emerging concept of targeted sanctions and provides a comprehensive framework for new sanctions strategies for the 21st century.

Author: David Cortright

Publisher: Rowman & Littlefield

ISBN: 0742501434

Category: Political Science

Page: 259

View: 519

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Smart Sanctions explores the emerging concept of targeted sanctions and provides a comprehensive framework for new sanctions strategies for the 21st century. It includes essays by experts and analysts from the United Nations community, the European Union, the United States Government, and the academic community. Visit our website for sample chapters!

Financialising City Statecraft and Infrastructure

Financialising City Statecraft and Infrastructure addresses the struggles of national and local states to fund, finance and govern urban infrastructure.

Author: Andy Pike

Publisher: Edward Elgar Publishing

ISBN: 9781788118958

Category: Business & Economics

Page: 360

View: 488

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Financialising City Statecraft and Infrastructure addresses the struggles of national and local states to fund, finance and govern urban infrastructure. It develops fresh thinking on financialisation and city statecraft to explain the socially and spatially uneven mixing of managerial, entrepreneurial and financialised city governance in austerity and limited decentralisation across England. As urban infrastructure fixes for the London global city-region risk undermining national ‘rebalancing’ efforts in the UK, city statecraft in the rest of the country is having uneasily to combine speculation, risk-taking and prospective venturing with co-ordination, planning and regulation.

Russia s Response to Sanctions

In the first in-depth analysis of the effects of sanctions on the Russian political economy, Richard Connolly details the Western sanctions targeting the energy, defense and financial sectors, and the Russian response.

Author: Richard Connolly

Publisher: Cambridge University Press

ISBN: 9781108244442

Category: Business & Economics

Page:

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In the first in-depth analysis of the effects of sanctions on the Russian political economy, Richard Connolly details the Western sanctions targeting the energy, defense and financial sectors, and the Russian response. He explores how the Western sanctions have caused Russian officials to formulate rapid policy responses to enable the country to adapt to the new circumstances. The sanctions and the Russian response have caused the state's role in the Russian economy to grow stronger and caused its policymakers to accelerate efforts to shift Russia's foreign economic relations away from the West and toward Asia. Connolly analyzes how the political economy in Russia and the nature of the country's integration with the global economy have been fundamentally reshaped. He demonstrates that a new system of political economy is emerging in Russia, and how it is crucial to understanding Russia's future trajectory.

Commerce Finance and Statecraft

This book will be essential reading for historians and literary critics working on Restoration and eighteenth-century historical writing, and historians, economists, political scientists, and philosophers interested in historiographical ...

Author: Ben Dew

Publisher:

ISBN: 1784992968

Category: Economic history

Page: 278

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In the seventeenth and eighteenth centuries, historians of England pioneered a series of new approaches to the nation's economic history. Commerce, finances and statecraft charts the development of these forms of writing and examines their importance for the economic, political and historical thought of the period.

Economic Statecraft and Foreign Policy

This book develops a unified theory of economic statecraft to clarify when and how sanctions and incentives can be used effectively to secure meaningful policy concessions.

Author: Jean-Marc F. Blanchard

Publisher: Routledge

ISBN: 9781136225826

Category: Political Science

Page: 266

View: 182

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This book develops a unified theory of economic statecraft to clarify when and how sanctions and incentives can be used effectively to secure meaningful policy concessions. High-profile applications of economic statecraft have yielded varying degrees of success. The mixed record of economic incentives and economic sanctions in many cases raises important questions. Under what conditions can states modify the behaviour of other states by offering them tangible economic rewards or by threatening to disrupt existing economic relations? To what extent does the success of economic statecraft depend on the magnitude of economic penalties and rewards? In order to answer these questions, this book develops two analytic models: one weighs the threats economic statecraft poses to the Target’s Strategic Interests (TSI); while the other (stateness) assesses the degree to which the target state is insulated from domestic political pressures that senders attempt to generate or exploit. Through a series of carefully crafted case studies, including African apartheid and Japanese incentives to obtain the return of the Northern Territories, the authors demonstrate how their model can yield important policy insights in regards to contemporary economic sanctions and incentives cases, such as Iran and North Korea. This book will be of much interest to students of statecraft, sanctions, diplomacy, foreign policy, and international security in general.

Japan s New Regional Reality

The book covers a wide range of economic issues including trade, investment, finance, currency, and foreign aid.

Author: Saori N. Katada

Publisher: Columbia University Press

ISBN: 9780231549080

Category: Political Science

Page:

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Since the mid-1990s, Japan’s regional economic strategy has transformed. Once characterized by bilateralism, informality, and neomercantilism, Japanese policy has shifted to a new liberal strategy emphasizing regional institution building and rule setting. As two major global powers, China and the United States, wrestle over economic advantages, Japan currently occupies a pivotal position capable of tipping the geoeconomic balance in the region. Japan’s New Regional Reality offers a comprehensive analysis of Japan’s geoeconomic strategy that reveals the country’s role in shaping regional economic order in the Asia-Pacific. Saori N. Katada explains Japanese foreign economic policy in light of both international and domestic dynamics. She points out the hurdles to implementing a state-led liberal strategy, detailing how domestic political and institutional changes have been much slower and stickier than the changing regional economics. Katada highlights state-market relations and shows how big businesses have responded to the country’s interventionist policies. The book covers a wide range of economic issues including trade, investment, finance, currency, and foreign aid. Japan’s New Regional Reality is a meticulously researched study of the dynamics that have contributed to economic and political realities in the Asia-Pacific today, with significant implications for future regional trends.

Power and the Purse

The essays here address the relationship between economic interdependence and international conflict, the political economy of economic sanctions, and the role of economic incentives in international statecraft.

Author: Jean-Marc F. Blanchard

Publisher: Routledge

ISBN: 9781135268947

Category: History

Page: 352

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The essays here address the relationship between economic interdependence and international conflict, the political economy of economic sanctions, and the role of economic incentives in international statecraft.

Sanctions Statecraft and Nuclear Proliferation

The literature on financial statecraft is somewhat more upbeat. Hufbauer et al. originally found in bivariate tests that financial sanc— tions had a better track record of success than trade sanctions.47 Shagabutdinova and Berejikian ...

Author: Etel Solingen

Publisher: Cambridge University Press

ISBN: 9781107378575

Category: Political Science

Page:

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Some states have violated international commitments not to develop nuclear weapons. Yet the effects of international sanctions or positive inducements on their internal politics remain highly contested. How have trade, aid, investments, diplomacy, financial measures and military threats affected different groups? How, when and why were those effects translated into compliance with non-proliferation rules? Have inducements been sufficiently biting, too harsh, too little, too late or just right for each case? How have different inducements influenced domestic cleavages? What were their unintended and unforeseen effects? Why are self-reliant autocracies more often the subject of sanctions? Leading scholars analyse the anatomy of inducements through novel conceptual perspectives, in-depth case studies, original quantitative data and newly translated documents. The volume distils ten key dilemmas of broad relevance to the study of statecraft, primarily from experiences with Iraq, Libya, Iran and North Korea, bound to spark debate among students and practitioners of international politics.

Alternative Banking and Financial Crisis

STATECRAFT. AND. GOVERNMENT. BANKS. Kurt. von. Mettenheim. Introduction. Until 2008 developing countries systematically fared worse during financial crises. After Mexico declared a moratorium on foreign debt in 1982, most of Latin ...

Author: Kurt von Mettenheim

Publisher: Routledge

ISBN: 9781317318637

Category: Business & Economics

Page: 304

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The recent banking crisis has brought into question the business model used by most large banks. This collection of essays explores the success of ‘alternative banks’ – savings banks, cooperative banks and development banks, using case studies from around the world and discussion of both the historical and theoretical context of banking practices.