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Regional cooperation, and the role of international organizations and regional integration (English)

The authors examine regional cooperation among neighboring countries in the area of regional public goods. These public goods include water basins (such as lakes, rivers, and underground water), infrastructure (such as roads, railways, and dams), energy, and the environment. Their analysis focuses on developing countries and the potentially beneficial role that international organizations and regional integration may play in bringing the relevant countries to a cooperative equilibrium. A major problem in reaching a cooperative solution is likely to be the lack of trust. If neighboring countries do not trust each other because of past problems, they may fail to reach a cooperative solution as each tries to maximize its gain from the regional public good. These strategies typically do not account for spillover effects and ultimately leads to losses for all parties. Other constraints on reaching a cooperative solution are its complexity and the financial requirements. Two types of institutions may help resolve some or all of these problems. International organizations can help with trust, expertise, and financing. The United Nations and the World Bank have been involved in a number of such projects in Africa, Asia, and elsewhere, and have been successful in helping parties reach cooperative solutions. Regional integration agreements, though not necessary for regional cooperation, may also be helpful by embedding the negotiations on regional cooperation in a broader institutional framework. The authors examine these issues with the support of both analysis and a number of case studies.


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    Schiff, Maurice Winters, L. Alan

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    Policy Research Working Paper

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    Regional cooperation, and the role of international organizations and regional integration

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    oecd principles;Democratic Republic of Congo;coastal and marine ecosystems;energy and the environment;price deposit insurance;water need;price of deposit insurance;regional integration facilitating investment;tragedy of the commons;enforcement of property right;ship generated waste management;distribution of power source;international civil aviation organization;development research group;regional cooperation;cooperative solution;quality of water;solid waste facility;trade and investment;demand for good;regional integration agreement;return to investment;waste management investments;Solid Waste Management;volume of trade;small island economies;cost of land;renegotiation of agreement;international shipping line;economies of scale;degree of transparency;natural resource problem;railway landlord corporation;losing market share;efficient regional market;flow of water;exchange of information;degree of trust;international water resource;long distance traffic;Economics of Water;Planning and Operations;regional water management;returns to scale;acute water shortage;regulating water supply;letter of intent;road and bridges;body of water;shared water resource;international water agreement;regional public goods;provincial government agency;river water diversion;burden of enforcement;national government agency;groundwater due;cost of failure;international community;trade diversion;positive return;River basin;international cooperation;landlocked country;institutional framework;water flow;bilateral contract;downstream neighbor;international agreement;water issue;surplus water;cruise line;cooperative agreement;water use;foreign exchange;downstream countries;energy minister;storage dam;environmental issue;Electric Power;market solution;irrigation water;Dispute Settlement;compensatory transfer;road transport;protecting habitats;protected area;endangered species;common perception;transportation spending;increased investment;emergency energy;national utility;central service;political change;security standard;bird area;competitive sector;environmental law;demand curve;coastal ecosystem;monarch butterfly;highway agency;generating capacity;environmental cleanliness;dam development;road system;rail operation;railway line;electronic security;transit trade;economic freedom;corporate governance;manufacturing sector;customs union;telecommunications market;Technology Diffusion;trade volume;competition policy;telecommunications reform;power sources;power pool;political cooperation;mutual trust;trade preference;legal regime;economic welfare;community participation;political support;partner country;goods trade;Trade Policy;consumption benefits;Trade Policies;institutional base;import good;government revenue;rural transportation infrastructure;world price;external tariff;tariff revenue;subnational fiscal;country imports;water consumption;land area;riparian country;tourist industry;riparian state;fragile ecosystem;transition period;waste recovery;cruise ship;disposal system;Ocean Dumping;donor financing;intergovernmental agreement;cooperative management;irrigation system;power output;hydro potential;international pressure;institution building;international tension;fish stock;richer countries;private contractor;sovereign right;equitable use;water right;disaster zone;health problem;rice crop;inadequate drainage;ecological zone;excessive use;water delivery;international treaty;excess power;evaporation losses;shadow price;mountain soil;building dams;legal doctrine;territorial integrity;territorial sovereignty;average rainfall;water scarcity;integrated management;fishing ground;environmental advocacy;fair share;technical standard;environmental concern;scientific investigations;political sensitivity;global experience;external assistance;basin state;reciprocal externality;consultative process;river course;Hydroelectric Power;federal government;enforcement problem;free-rider problem;project yield;small country;task forces;majority rule;independent body



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Schiff, Maurice Winters, L. Alan

Regional cooperation, and the role of international organizations and regional integration (English). Policy, Research working paper ; no. WPS 2872 Washington, D.C. : World Bank Group.