Einzelbesprechungen

Ohne ZusammenfassungAus dem Italienischen übersetzt von Erich Allina, Wien.Aus dem Englischen übersetzt von Erich Allina, Wien     

Implications of the lome convention for African trade and development

Conclusion The analysis presented here does not support the contention that the Lomé Convention is a turning point in the history of relations between rich and poor nations, and the herald of a new economic order, more just and equitable. While Lomé does not represent radical departures from the present system, it reflects the realization by the vulnerable, resource-poor EEC that some concessions had to be made in the fields of trade and aid. The reforms include: greater trade preferences; STABEX; some participation in the decision-making process of the EDF; financing of economic integration among the ACPs. These modifications, however, do not repudiate the present system, but rather make it more viable. The power of the multinationals is in no way affected, and the pattern of unequal development is left intact. Lomé-type relationships between the poor and rich countries will at best provide the elites with increased resources which might lead to national capitalist development, strengthening of the elites’ material base, and reproduction of the structure of dependence and inequality.     

Overzicht van buitenlandsche tijdschriften

Jaartal en blz. achter de namen der tijdschriften hebben betrekking op de plaats, waar deze laatstelijk in De Economist zijn bebandeld.     

What labelling policy for consumer choice? The case of genetically modified food in Canada and Europe

Abstract. Faced with divergent opinions among consumers on the use of genetically modified (GM) foods, Canada has adopted a voluntary labelling approach for non‐GM foods, whereas the European Union has a mandatory labelling policy for GM foods. Interestingly, both labelling systems have resulted in very little, if any, additional consumer choice. Using an analytical model, we show that the coexistence of GM and non‐GM products at the retail level depends on the labelling policy, consumer perceptions, and the type of product. Although voluntary labelling tends to favour the use of GM products, it is more likely to provide consumer choice.     

Perfect and Proper Equilibria of Large Games

This paper deals with the existence and other related issues of perfect and proper equilibria of games with a continuum of players. A sufficient condition for the existence of a perfect (proper) equilibrium as an almost everywhere limit of a sequence of ε-perfect (ε-proper) equilibria is given. An example shows that almost everywhere convergence need not obtain if the condition is violated. Extension to the case where the set of actions available to the players can differ is discussed.Journal of Economic LiteratureClassification Number: C79.     

Economic stability under fixed and flexible exchange rates

This paper analytically compares macroeconomic performance under fixed and flexible exchange-rate regimes. A model is developed in which the economy is stable around full employment, but subject to periodic random shocks. From the model, conditions are derived which allow comparison (across exchange-rate regimes) of the size of the expected squared deviation from full employment income in any arbitrarily selected period. These conditions are stated in terms of the variances and elasticities of particular behavioral relations.     

Alternative Energy Strategies for the United Kingdom Revisited: Market Competition and Sustainability

Energy and electricity demand forecasts for Britain made in the late 1970s by a research team from the International Institute for Environment and Development (IIED), under the leadership of Gerald Leach, are assessed with the benefit of hindsight. These researchers broke the energy market down into some 400 end-use, fuel, and appliance categories. They then assessed the potential for energy saving in physical terms, using available technical fixes, for each category. The resulting “bottom-up” projecitons of energy consumption departed from the historic correlation with economic growth, or “top-down” approach. It enabled the IIED team to postulate an alternative, low energy strategy for the United Kingdom to 2025. This study subsequently had a great influence on energy planning elsewhere in the industrialized world, although it was not without its detractors.The IIED energy demand projections are reviewed in the context of both the greatly increased market competition in the UK from 1979 onward, and the need to achieve sustainable development. It is shown that, although total primary energy consumption in the mid-1990s was much in line with the forecasts in the Leach report, the reasons for this and the structure of the newly competitive energy market are quite different from that originally postulated. However, the critics of the IIED team did little better. Long-term energy projections (25–50 years) as one-off, static exercises appear to be of little value for energy planning purposes. They can, as in the case of the Leach report, be a great source of data and ideas, as well as stimulating debate about new strategies. It is argued that rolling projections using a rather broad, sectoral approach that is continuously updated at not greater than five-year intervals, in a similar manner to econometric forecasts, are more useful for energy planning purposes.