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The ECONOMIST 113, no. 5, 1970ENGLAND AND EUROPEAN TECHNICALCOOPERATIONBYDRS. J. N. F. B.1. introductionOn June 30, j. 1. his negotiations with the second timeUnited Kingdom on accession to the European economicCommunity started. After a Commission opinion ofthe European communities to the Council of Ministers, 1 and thedecisions of the Hague Conference of Heads of State and ministersof Foreign Affairs in december 1969, as well as in this springreached agreement on the financing of the commonagricultural policy and the (modest) extension of the powersof the European Parliament were the final obstaclesremoved for new negotiations.The above advice is, for which the economic aspectsof accession, in particular, addressed the Customs Union, heragricultural policy, the policy development and the Association industrifilewith regard to the developing countries. The immediate consequencesfor the English eeonomie seem not favorable; In addition to the consequencesthose accepting the customs tariffs of the EuropeanEconomic Community has for the position of the British industry(which is now in diameter more protection thanthe Community industry because bet level of the British import dutieshigher than that of the European Economic Community)the English are faced with rising pricesfor food and threaten balance of payments problems as a resultof the extensive British contribution to the European agricultural fund.2 on the other hand, however, that the British accession1 opinion of the Commission, the Council of Ministers on the ~ e san vemoeken for membershipUnited Kingdom, Ireland, Denmark and from bet.Norway dd LI o. 69, Brussels1969.2 see her white paper by the English Government to Britain and the European ParliamentCommunities. An Economic Assessment, CMND 4289, EIMSO, London 1970, as well as herThis ill eommentaar The Economist February 14, 1970, p. 1. 10--12. ENGLAND and the EUROPEAN TECHNICAL COOPERATION 441economy in the longer term, acquires from the frustrating opportunities' stop go ' to get 3 that the country cycle since her end of thelast world war has caused so much damage. For this isIt is necessary that the British industry is modernizedusing the application of the latest resultsresearch and technical development of scholarly articles on k and that themanagement of the British industri ~ le enterprises is improved,minimizing growth rate of industrial production and bet ~ leper capita income of re ~ le workforce more connection canwith that of the EEC countries.The specific benefits for the current EEC countries are mainlythe wider market of agricultural products and theincreasing support of Community agricultural funding.Joint benefits for all partners of a largerIn addition, by increasing community arisetrade and hence her sales area for industrial productsand the growing scope of the enlarged EEC in the implementationof the common research and development policy. 4In the following will primarily the economic backgroundof the Western European integration efforts are highlighted withusing a short overview of the factors that this integrationpromote. This is followed by a summary of the State of playcommon policy pursued so far by bet on bet areaof the technical development, indicatingWhat opportunities possible accession of England 5iedtto an increase in the effectiveness of this policy. Finally,some conditions that must be treated v01daanso that industrial and technical area of England on the accessioncan lead to a success.On the political and institutional aspects cannot be accepted;the treatment therefore remains limited to economic factors.Also will the (important) consequences of the British accessionfor the Association policy and commercial policy in relation tothe countries of the so called ' third world ' excluded.2. Enkde economic background of her Eur @ ese integrateThe interdependence of the European ~ results is on econo-3 See th. Peeters and j. p. Abraham, advantages of accession for the British economy,Economic-statistical releases, 28 j anuari 1970, pages. 112-116.4 See Advice from the Commission to the Council of Ministers betreMende requests foraccession, op. cit., p. 1. 66.442 Drs. j. N.F. Beconomic area over the last ten j servants increased in significant degree.Some figures can explain this development. Amounted Toin 1958 the mutual trade of the Western European countries still21.4% of total world trade, this percentage was increased in 1968to 27.2 o/0. For the EEC countries these figures amounted to 7.1 ~/oor 12.1 °/o. 50ok if the exports are related to betgross national product arrives at the conclusion that the mutualdependence has increased; as it turns out that in cases where only themutual trade within the EEC is taken into account thecontribution of the export to the gross national product in currentmarket prices in these ten years increases by 4.5% to 7.6%. 6This increased interdependence of course has consequencesof the economic policies of the Government; so is e.g. recently7 calculated that an increase in public expenditure of WestDuitslandwith 5 ~ as a result can have that her gross nationalproduct in France increases with 1.5% or approximately a quarter of theannual economic growth of this country. With is so all to no longerthat the Government of the Federal Republic does not have toconcerned about the repercussions of her economic-politicalmeasures for the partner countries.This increased dependence on monetary area has alsoimportant and default consequences. The West German economicpolitick, diei.h.b, focused on maintaining a stable domesticprice level (expressed in attempts the riseof bet limit prices to several percent per year) can asin the past already has shown be frustrated if, in themajor trading partners to a quick percentage growth ofRe re ~ el gross national product as an objective priority isgiven above it as stable as possible keeping the price level.West-Germany can not constantly through revaluationstry to keep a private road. Quite apart from the objectionswho has a line of conduct for such lengths ke bet functioning ofthe common market is no longer in the long term this politickin line with the objective of monetaryUnion.5 x 965 platforms See Gatt, international Trade, Gen ~ ve 1966, table D, as well as InternationalTrade z968, Gen ~ ve 1969, table G.O.E.C.D. O.E.C.D. Countries, National Accounts, see x95o-o/68, Paris 1970, as well asfootnote 5.7 see s. a. Resnick, An Empirical Study of Economic Policy in the Common Market, inA. Ando c.s., Studies in Economic Stabilization, The Brookings Institution, Washington1968, pages. 184-214. ENGLAND and EUROPEAN TECHNICAL COOPERATION 443But also in the technical field is the need forlarger Western European cooperation evident. The main reasonfor this is the fact that in highly developed economiefin a continuationthe growth of her income in increasingly dependent onof the technical progress. In all Western European countrieshas now reached the stage that rather than the quantitativegrowth of the working population (which in particular, in Netherlands and Franceof interest is the capital stock, but especially the) or qualitativeimprovement due to more education and technical knowledgeand by the growth of the economic sphere there theapplicationsin other words, income promotes, s bet the future growth of the incomeon the other hand is more and more dependent on an improvement inthe quality of the labour force through an increase in herlevel of education and, on the other hand, a better quality capital stockby this with the results of the latest technicaleasy ways to connect.The relationship between technical progress and growth of incomeis not one-sided; Conversely, one can argue that aincreasing the market size due to the growth of her incomea necessary condition for a further technicaldevelopment. Especially rich countries with a big market canrelatively many resources from alternative destinationsand use it for improving education and a betincrease in expenditure for research and development on awide range of areas. It is therefore no coincidence that a countryIf the United States has managed to lead a technicalnow get some disturbing dimensionshas adopted and partly led to mainly Americanenterprises so far chances are, that the market enlargementbe provided in the European economic community,have been able to exploit.Economic integration, monetary integration, Government policy andtechnical development can therefore only in conjunction with arapid growth of the common market be reviewed.In her following a brief outline will be given of theattempts have been made to a common policy so farfor the attention of, scientific research and technical developmentto come. This will not address the differ-8 see e. f. Denison and j. p. Poullier, Why Growth Rates DiMer, Washington 1967. 444 DRS j. n. f. B.the road in this area attempts along intergovernmental successesavailable; the history of this policy is well streams
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