With Great Power Comes Great Responsibility

2006

Download PDFVolume: 9 Issue: 1

Acknowledgments

The Bologna Center Journal of International Affairs would like to thank:

The Bologna Center Student Body, Faculty and Staff
The Bologna Center Journal Auction Contributors
The Bologna Center Student Government
Professor Erik Jones, Faculty Advisor
Ryan Haney, Web and Layout Consultant

2006 Journal Staff

Editor-in-Chief Tarig Hashim Hilal*
Executive Editor Fatima B. Kassam*
Managing Editor Mame Soce Sene
Copy Editor Donna Brutkowski
Web/Layout Editors

Zecharia Kahn
Andre Duff

Finance Director Robert Carter Atlamazoglou
Public  Relations John Horton
Event Planning Leigh Anne DeWine
Nichole Graber

Editors

David Carlisle* | Duncan Burrell | Morgan Bushey | John R. Williams* | Aoife Brophy | Stefan Kahandaliyanage | Cynthia Mar | Leigh Anne DeWine | Gerd Gensbichler* | Sarah Gearen | Colleen Keenan | Sylvie Mahieu | Holger P. Wilms | Tamara Senikidze | Noah Wiss | Jessica Thompson | Nick Haslam | Zecharia Kahn | Donna Brutkoski | Fatima B. Kassam

Copy Editors

Hagir Elawad | Morgan Bushey | Colleen Keenan | Aoife Brophy | Kate Ostrander | Meredith Metzler

*Selection Committee

Articles:

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The issue of correlations among stock indices is essential for effective diversification strategies of portfolio managers. However, it is often claimed that the economic and financial integration of European markets has increased correlations between stock market indices, making it less attractive for portfolio managers to diversify among European assets. This paper examines the development of the correlation structure between country indices during monetary and economic integration in the European Monetary Union and finds that correlations increased considerably during the sample period of 1979 to 1999, and decreased again after the introduction of the euro. This paper seeks an economically sound explanation for this counterintuitive observation.

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With the election of Hamas, the Bush Administration’s democracy promotion policy in the Middle East appears to be a failure. However, an in-depth review of the theory, motivations and actions leading up to the election of Hamas in the Palestinian Authority parliamentary elections shows a more complex picture. The history of the Hamas movement proves that it is a pragmatic and forward thinking organization that has been able to adapt to the modern electoral system with great skill; furthermore, in its election may lie the seeds for a lasting peace through the democratic process.

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Considering the increasing involvement of private, for-profit companies in humanitarian aid activities, this essay looks at the incentive structures and moral hazards of the industry. Its goal is to identify conditions under which profit-driven actors could increase the efficiency of aid delivery without compromising its humanitarian aims. The essay argues that when faced with informational asymmetries and the “temptation to cheat,” donors, for-profits and nonprofits compromise efficiency to differing degrees and in different ways. By spelling out these organizations’ respective predispositions, and their effects on performance, this essay answers when and why we should prefer for-profit to nonprofit organizations in the humanitarian aid industry.

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As economies develop, they increasingly rely on energy to fuel their growth. This energy has historically come from traditional power sources – notably oil and coal – as they are relatively cheap and easily exploitable. Developed economies have derived much of their strength from the use of these energy sources, at the expense of environmental quality. These economies now have the responsibility to lead the world in advancing the utilization of renewable energy; the deregulation of the electric industry in many of these countries offers the perfect opportunity for governments to encourage the promotion of renewable energy through a variety of policies.

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What is the United States’ “vital national interest” in stopping the killing in Darfur? How can the United States best contribute to ending the bloodshed in Sudan? This essay examines the many American concerns in Sudan, from oil to the prosecution of crimes against humanity. But it settles on one decisive interest that tips the balance in favor of supporting intervention: the maintenance of international support for American policies as a primary source of US power. The United States should therefore offer serious support to an African-led intervention – an approach that will resolve the Darfur conflict without exacerbating already diminished perceptions of American legitimacy.

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When the seminal documents of human rights were written, no thought was given to the inclusion of sexual orientation minorities. As the movement for equality of orientation expands and the existing human rights paradigm becomes increasingly challenged by feminist critique, the question is growing of where sexual orientation belongs within human rights. Attempts at including sexual orientation have largely been through the right to privacy. Through an examination of American jurisprudence and changes in American and European legislation, this paper argues that the equality doctrine can and should be extended to include sexual orientation.

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Seemingly cursed by the legacy of the caudillo, government under a strong executive has come to characterize the structure of the modern Argentine state. Since the administration of Carlos Menem in the 1990s, questions have arisen as to the progress Argentina has made with regard to the consolidation of its democracy. However, while Menem set a precedent for directly challenging democratic institutions during his presidency, has history justified his unilateral decision-making as the only means of overcoming the barriers that obstructed Argentina’s political and economic development?

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This paper explores the long-standing energy tensions between Russia and Ukraine, examining developments in the politico-diplomatic role of Russian oil and gas pipelines in order to evaluate their effectiveness as instruments of intimidation. As the analysis will highlight, when Russia has used its energy exports as a “stick” with the goal of blackmailing leaders in Kiev into agreeing to Moscow’s foreign policy objectives, its leverage has been limited. Conversely, in the cases where Russia has used its energy exports as a “carrot,” Moscow has actually seen returns for its efforts. Thus, the Russo-Ukrainian energy relationship is interesting because it calls into question traditional perceptions of relative power.

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While it is quite common in the West to provide monetary assistance to people in emergency situations, the practice is highly underutilized in developing countries. Under certain conditions, giving cash is one of the most cost-efficient methods of delivering assistance to a high number of people in a short amount of time while engendering future economic growth. This paper counters the arguments of skeptics and calls on key figures in the industry to reflect upon the paternalism and inefficiency that they may continue to foster through their institutions.

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How should Italy address its rising tide of immigration? This paper compares the phenomenon to the flow of water; it can be blocked or it can be channeled to bring about positive outcomes. Italian regulations since the 1980s have restricted and only mildly directed the flow of immigrants. Economically, Italy as a whole has benefited greatly from the entrepreneurial spirit brought by new arrivals. Culturally, however, the nation has yet to find the means to fully integrate its foreign-born population. To address the issue, the cost of immigrating illegally must be raised, while the cost of doing so legally must be lowered. The European Union, national and local governments should strengthen social services, increase access to the banking system, sponsor skills training in countries that send immigrants and link trade and migration together.

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America’s “unnecessary wars” adhere to a basic pattern. They have been fought in the name of the broader mission that many Americans believe Providence has chosen their nation to carry out, but have been characterized by a prewar “fog” of incomplete or flawed information. They are the handiwork of a small but determined “war party,” and the US political system often acts as a stimulus to the use of force, rather than a check on it, as opposition politicians join the call for fear of being branded unpatriotic. Finally, from the War of 1812 to the invasion of Iraq in 2003, unnecessary wars have more often than not failed to advance the interests of those who pursued them. These lessons of the past are cause for serious reflection; the least that can be said after reviewing these wars is that the benefit of the doubt should never be given to those who urge military action.