Principals, agents, and the European Union’s foreign economic policies

In the introduction to this collection on the principal–agent approach and the European Union’s (EU) foreign economic policies we briefly present the EU’s institutional structure for policy-making in trade, monetary, development and international competition and financial policy. We also offer some data on the extent of the EU’s involvement in the international economy. Our discussion of the principal–agent approach and how it can be applied to an analysis of the EU’s foreign economic policies forms the basis of the following contributions. It allows us to formulate three questions that are of particular interest for applications of the principal–agent approach to the EU. Finally, we summarize the various studies included in this collection.

Will International Pursuit of the Millenium Development Goals Alleviate Poverty in Mountains?

Since September 2000, when world leaders agreed on time-bound, measurable goals to reduce extreme poverty, hunger, illiteracy, and disease while fostering gender equality and ensuring environmental sustainability, the Millennium Development Goals (MDGs) have increasingly come to dominate the policy objectives of many states and development agencies. The concern has been raised that the tight timeframe and financial restrictions might force governments to invest in the more productive sectors, thus compromising the quality and sustainability of development efforts. In the long term, this may lead to even greater inequality, especially between geographical regions and social strata. Hence people living in marginal areas, for example in remote mountain regions, and minority peoples risk being disadvantaged by this internationally agreed agenda. Strategies to overcome hunger and poverty in their different dimensions in mountain areas need to focus on strengthening the economy of small-scale farmers, while also fostering the sustainable use of natural resources, taking into consideration their multifunctionality.

Carbon dioxide emissions and international trade at the turn of the millennium

We present a new dataset of geographical production-, final (embodied) production-, and consumption-based carbon dioxide emission inventories, covering 78 regions and 55 sectors from 1997 to 2011. We extend previous work both in terms of time span and in bridging from geographical to embodied production and, ultimately, to consumption. We analyse the recent evolution of emissions, the development of carbon efficiency of the global economy, and the role of international trade. As the distribution of responsibility for emissions across countries is key to the adoption and implementation of international environmental agreements and regulations, the final production- and consumption-based inventories developed here provide a valuable extension to more traditional geographical production-based criteria.