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NEW GROWTH MODEL- ALTERNATIVE TO NEO- LIBERAL ECONOMIC GLOBALIZATION

IVAN LUKAS PRAGUE GLOBAL POLICY INSTITUE - GLOPOLIS ECONOMIC PARTNERSHIP AGREEMENTS AND NEW SOVEREIGNTY CONCEPTS. NEW GROWTH MODEL- ALTERNATIVE TO NEO- LIBERAL ECONOMIC GLOBALIZATION. DEVELOPMENT understood as STABLE CLIMATE AND ENERGY SECURITY 2. FOOD SECURITY

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NEW GROWTH MODEL- ALTERNATIVE TO NEO- LIBERAL ECONOMIC GLOBALIZATION

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  1. IVAN LUKASPRAGUE GLOBAL POLICY INSTITUE - GLOPOLISECONOMIC PARTNERSHIP AGREEMENTS AND NEW SOVEREIGNTY CONCEPTS

  2. NEW GROWTH MODEL- ALTERNATIVE TO NEO-LIBERAL ECONOMIC GLOBALIZATION DEVELOPMENT understood as • STABLE CLIMATE AND ENERGY SECURITY 2. FOOD SECURITY 3. INDUSTRIAL/SERVICES SECTOR DEVELOPMENT AND STABLE FINANCE AND ITS ENEMIES ->

  3. 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 )

  4. 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

  5. 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

  6. 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

  7. 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

  8. Food sovereignty • localization - eat what you produce, produce what you eat • protection of local markets • development of small, agro-ecological farms

  9. Economic sovereignty • infant industry protection • in case of finances the regulation is even more in order – financial integration only for “advanced” states

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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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