NEWSLETTER  

The Elcano Royal Institute is an independent, private foundation established
in Madrid in 2001 to study international developments from a Spanish
perspective. The Institute aims to become a leading forum for research
and informed discussion of international affairs which will be of interest
to policy-makers, academics, business leaders, the media and society at large.


Newsletter n? 7 - 11/04/2004
ISSN 1698-5184

 
  Highlights

 What We Learned from the US Presidential Election (ARI) ,Soeren Kern
 Bush vs. Kerry: The Economy in the Balance? (ARI - Part I) ,Paul Isbell
 The Human Touch: Kerry vs. Bush in the White House (ARI) ,Tomas Valasek
 North Africa: Dancing with Demography (WP) ,Rickard Sandell
  
 
 
 

INTRODUCTION

The November issue of our Newsletter includes a new selection of working papers and analyses recently published by the Institute. We also present several links to documents of interest released on the Internet and which might be of special interest to our readers.

As you know, Inside Spain is a permanent section of our Newsletter, written by William Chislett, which reports on a monthly basis on the main issues which have occupied the Spanish agenda. October has been a very busy month and Chislett takes a close look at several fronts. In the economic field, he reports on Santander Central Hispano’s purchase of Britain’s Abbey National and on how the Government has reached a tentative agreement with unions over the ailing Izar shipyards. He explains how Spain has remained in 23rd position out of 104 countries in the 2004 Growth Competitiveness Index of the World Economic Forum, just behind Chile but ahead of France and Italy, and how, according to the latest annual survey by Germany’s IWD, Spain’s labour costs are approaching those of Canada and Italy, while our country’s exports in 2003 were the 11th largest in the world in absolute terms and represented 27.2% in GDP terms. In a different aspect, Spain moved from 23rd to 22nd in the 2004 corruption perceptions index. He also reports on the growth of Spain’s immigrant population, which now makes up around 7% of the total population.

On the political front, William Chislett deals with the situation in Cuba, and on how Spain wants to lead the European Union in changing its policy of isolating the Cuban government; on the Gibraltar issue, Miguel ángel Moratinos, Spain’s Foreign Minister, and his UK counterpart, Jack Straw, have agreed to re-launch the stalled talks in a new co-operative spirit and give Gibraltar, for the first time, a voice at the negotiating table. He also informs on the tense relations between the United States and the new Spanish Government, and on how Spain has won Algeria’s support for its effort to achieve a solution to the Western Sahara problem.

Our main issue this month is, of course, the US presidential election and its results. Soeren Kern’s post-election analysis comments on how the campaign has highlighted the cultural divisions within American society that in many ways reflect the source of the current tensions in trans-Atlantic relations. A majority of US voters have decided to stick with the perceived moral and religious certainties offered by George Bush in preference to what Soeren Kern describes as John Kerry’s ‘fully post-modern world-view’. Our Senior Analyst Paul Isbell writes on the economic aspects of the election and Tomas Valasek analyses whether a different president would have made a substantial change in US policies towards Europe. In this section we also include an ARI by Rodolfo O. de la Garza on the growth of the latino vote and its impact on the 2004 presidential election.

We also highlight an important working paper by Rickard Sandell, our Senior Analyst on Demography and Population, in which he looks at the problem of North African population dynamics and the effects of population growth, age structure and distribution.

In our Mediterranean and Arab World area, Haizam Amirah Fernández, the Institute’s Senior Analyst, has written a well documented analysis on Morocco, describing how five years after Mohammed VI’s accession to the throne, discontent and disappointment are growing more rapidly than the promised reforms.

In our European Union section, William Chislett further contributes to this Newsletter with a working paper on an issue he knows well: Turkey and its European aspirations, which has stirred up umprecedented passions for or against its entry.

Once again, we remind our readers that those who do not wish to continue receiving both our English-language Newsletter and our Spanish-language Boletín should inform us at /wps/myportal/rielcano_in/Newsletter of their preference for one or the other version.

 
INSIDE SPAIN, by William Chislett

William Chislett reports on Santander Central Hispano’s purchase of Britain’s Abbey National and on the Government’s agreement with the unions on the ailing Izar shipyards. Also on the economic front, he comments on Spain’s position in the 2004 Growth Competitiveness Index and on its labour costs and exports. On the political front, topics this month include the 2004 corruption perceptions index, immigration, Cuba and Gibraltar. Spain’s currently tense relations with the United States and the so far intractable Western Sahara problem complete this month’s Inside Spain.

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 ANALYSES

US Elections

What We Learned from the US Presidential Election (ARI)
Author:Soeren Kern
The decisive re-election of President George W. Bush –with larger Republican majorities in both houses of Congress– confirms that the United States is a centre-right country. Nevertheless, the country remains divided. Indeed, the campaign highlighted cultural divisions within American society that in many ways reflect the source of the current tensions in trans-Atlantic relations


Bush vs. Kerry: The Economy in the Balance? (ARI - Part I)
Author:Paul Isbell
Before the US presidential debates, it was widely agreed that while a majority of Americans still placed more faith in George Bush in matters concerning national security, most believed that John Kerry would deal with economic issues more effectively and fairly than has (or would) President Bush. Furthermore, while a growing consensus of analysts now claim –almost to the point of cliché– that the foreign policy stances of the two candidates are not radically different from each other their positions on economic matters do appear to be quite distinct and materially different


Bush vs. Kerry: The Economy in the Balance? (ARI - Part II)
Author:Paul Isbell
What kind of international economic context will a President Bush or a President Kerry face? What does it imply for either candidate’s future potential room for manoeuvre? At first glance the international economic scenario does appear rosier than ever. Synchronized world growth this year has produced the fastest global growth rate in a generation. Nevertheless, a number of lingering weaknesses and new threats will reduce the responsible room for manoeuvre for the next US president, regardless of who actually occupies the White House in 2005


Bush vs. Kerry: The Economy in the Balance? (ARI - Part III)
Author:Paul Isbell
The default scenario for Bush is one in which his desires to continue with policies which either increase the deficit or fail to pro-actively cut it, run into the increasing scepticism of Congress and the Federal Reserve. While this will allow growth to slow, the conflict between the Bush White House, on the one hand, and the Congress and the Fed on the other, could by itself spook the markets into the beginnings of a dollar crisis


The Human Touch: Kerry vs. Bush in the White House (ARI)
Author:Tomas Valasek
Does it matter whether George W. Bush is re-elected to a second term? While there is little doubt that most Europeans would prefer a changing of the guard in the White House, it is equally true that on issues that most exasperate America’s allies on the old continent, the US president’s hands are tied. So is Europe not deluding itself in attaching so much importance to a changing of the guard? Or, on the contrary, could a different president make substantial changes in US policies towards Europe


The Latino Vote in 2004 (ARI)
Author:Rodolfo O. de la Garza
The growth of the Latino population has led to claims that Hispanics would play a major role in the 2004 presidential election. These claims are misleading because they rely exclusively on population size and ignore a variety of structural and behavioural factors that shape the ultimate influence of the Latino vote. This article reviews how institutional factors such as the role of the Electoral College and partisan outreach influence Latino participation


Document of Interest- Transcript of Wednesday?s Speeches
Following are transcripts of speeches delivered on Wednesday after John Kerry conceded the presidential election to President George W. Bush


Document of Interest- US Exit Polls
CNN?s exit polls offer a breakdown of voting patterns in the 2004 US Presidential Elections


European Union

Turkey?s EU Membership: The Moment of Truth (WP)
Author:William Chislettt
The European Commission took a momentous decision in October when it recommended, with certain conditions, that accession talks start with Turkey, the most secular state among the Islamic nations created by Mustafa Kemal Atat?rk in 1923 from the ruins of the Ottoman Empire. The decision, however, has to be endorsed by the leaders of the European Union (EU) member states at their meeting in Brussels on December 17. No other country seeking full EU membership has stirred up as many passions in favour or against its entry as Turkey


Document of Interest- The United States, the European Union and lifting the Arms Embargo on China
Since last fall, a worrying new front has emergend in the still tense relationship between the United States and Europe. The front lies not in the Middle East, but in China. The idea that the EU leaders might lift their arms embargo on China in December is a deep source of concern, not only for US Policy makers, but also for many of their European counterparts


Mediterranean & Arab World

Morocco is Failing to Take Off (ARI)
Author:Haizam Amirah
When Mohammed VI took power in 1999, great hopes were raised both inside and outside Morocco. Five years later, discontent and disappointment are growing more quickly than the promised reforms


Document of Interest- Morocco: Counter-Terror Crackdown Sets Back Rights Progress
Morocco''s campaign against suspected Islamist militants is undermining the significant human rights progress the country has made in recent years, Human Rights Watch said in a new report


Document of Interest- Political Reform in the Arab World: A New Ferment?
The nascent discourse on reform in the Arab World has inspired domestic predictions that the region is finally responding to the global trend toward democracy. But such enthusiasm about the inevitability of democratic change is premature, writes Amy Hawthorne in this Carnegie Paper


Demography & Population

North Africa: Dancing with Demography (WP)
Author:Rickard Sandell
This paper discusses the general nature of current demographic trends. The purpose is to offer a more nuanced view of part of the world?s population development. In particular, the author shows that the demographic transition, while similar in developed and developing countries, gives rise to an emerging demographic clevage between developed and developing countries. The focus of this paper is on demographic changes in the Mediterranean region. Rickard Sandell contrasts demographic developments on both the southern and northern shores of the Mediterranean Sea.


Document of Interest- The Security Demographic Population and Civil Conflict after the Cold War
Do the dynamics of human population –rates of growth, age structure, distribution and more- influence when and where warfare will next break out? The findings of this report suggest that the risk of civil conflict that are generated by demographic factors may be much more significant than generally recognized, and worthy of more serious consideration by national security policymakers and researchers


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The Elcano Royal Institute does not necessarily share the views expressed by the authors of its Working Papers and other texts which may appear on its Website or in any other of its publications.The Institute’s primary goal is to act as a leading forum for research and analysis and to stimulate informed discussion of international affairs, particularly with regard to those issues which are most relevant from a Spanish perspective, and which will be of interest to policy-makers, business leaders, the media, and society at large.