Definition and Scope

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• Definition and Scope
• International Cooperation and national policy
  objectives
• What kind of international cooperation nurtures
  policy coherence?
• The case of the WTO
• Conclusion.

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• Definition and Scope
• Incoherence is naturel
• Economists have long debated rationality
• What is, not what would or should be.
• Coherence
• A situation in which different policies are
  pulling in the same direction, or at least, not
  pulling in different directions.
• Simple provided that everyone agreed on
• (a) the direction to pull and
• (b) the link between policy levers and the
  outcome.

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• International Cooperation and national policy
  objectives
• What are the circumstances in which international
  cooperation can facilitate the attainment of
  national economic objectif?
• The potential role of international cooperation
  in assisting governments to attain their social,
  political and economic objectives is a vast
  subject.

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• Why cooperate
• Term of trade, political economy considerations
  and commitment to policies
• International policy spillovers
• Curbing market power
• Information asymetries, transparency and
  regulatory failure
• Supporting institution and capacity-building

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• Why Cooperate some other reasons
• Search for uniform, solutions to shared problems
  when agreement is elusive and compromises
  suboptimal
• Reducing transaction cost
• The idea that governments may sometimes seek to
  avoid responsiblility and blame by transferring
  what should be a national policy discourse onto
  the international scene.

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• What kind of international cooperation nurtures
  policy coherence?
• Differing degrees of cooperation (1)information
  exchange, (2) consultation, (3) coordination and
  (4) legally binding obligation which are backed
  up by ,ore or less effective enforcement
  mechanism. For instance, the WTO.
• What degree of international coperation is
  desirable for coherence? No simple answer, since
  situations will differe among countries and
  through time

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• What kind of international cooperation nurtures
  policy coherence? (continued)
• Effective cooperation requires (1) adequate
  information to decision-makers, (2) international
  institutions need to have appropriate measures at
  their disposal and adequate enforcement means in
  order to act effectivelly

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• The case for the WTO
• Place of the WTO in international gouvernance.
• WTO has five core funtions (1) a set of rules
  for the conduct of international trade, (2) a
  forum for negotiating rade liberalization, (3) a
  dispute settlement system, (4) transparency and
  (5) greater coherence in global economic policy
  making.
• WTO a public good?

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• Conclusion
• Good policy-making require an understanding of
  the extent to which economies are linked-up, and
  hence the importance of an integrated and
  coherent policy mix.
• The disign qnd content of mutually supportive
  policies is crucial to the outcome, and so is
  effective implementation.
• The capacity of different authorities to work
  effectivelly together is fundamental.
• Internqtional cooperation is necessary for
  coherence.