Journal Global Policy and Governance <p align="justify">Interdependence of International Relations with finance, economy, technology, research, and advanced knowledge until a few years ago unimaginable, new military might introduced by innovation must be some of the crucial challenges, where also our Journal Global Policy and Governance intends to contribute opening its pages, issue after issue, to faculty, experts, testimonies, articles and relevant review of books, junior researches working papers. But we know also that traditional conflicts would not have any perspective in the medium term and will bring to the defeat of the ones who are imagining a return to the past. We intend to embrace and reach all the possible interested colleagues and fellows around the world, as choices and strategies in all the sectors involving public and private governance, nobody excluded, are under questioning and innovative evaluation.</p> en-US Journal Global Policy and Governance 2194-7740 <p align="justify">The authors when submitting their papers endorse and give permission as well to the Publisher Transition Academia Press to publish the article/paper in print and/or electronic format. Article/paper is defined as the final, definitive, and citable Version of Record, and includes the accepted manuscript in its final form, including the abstract, text, bibliography, and all accompanying tables, illustrations, data. </p> <p align="justify">If/when an article is accepted for publication, Author will be asked to transfer copyright of the article to Transition Academia Press. Transition Academia Press will retain copyright of all published material and reserves the right to re-use any such material in any print and/or electronic format. Author willing to retain their copyright from the Editors might request a fair condition, on the base of a bilateral agreement.</p> <div><hr align="left" size="1" width="33%" /> <div> <p> </p> </div> </div> EU Regional Policy: Inception, Development and Results <p>The article focuses on the evolution of the Common Regional Policy of the European Community. It analyzes the key reforms of the EC/EU Regional Policy, major factors that made such reforms necessary, and their implications for the institutional structure of the Community, and the Member States.<br>The author addresses the transformation of the regional policy from a purely economic means of ensuring cohesion between Member States towards a powerful tool of reshaping the Europe’s political and economic space. He also describes the process of the delegation of powers from central governments to subnational entities, as well as of building-up of the institutional mechanisms for the representation of regional interests inside the EU decision-making system. <br>The article assesses the impact of the policy upon the progress of regionalization in Europe and decentralization of the nation state. The author argues that the common regional policy and, specifically, the introduction of the subsidiarity have contributed to the establishment of a new governance level in the EU and putting in place a multilevel governance system, thus reshaping the Community governance paradigm.</p> Valeriy V. Kopiika Sergiy O. Makovskyy Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 3 16 10.14666/2194-7759-9-2-001 Comparative Analysis of the Return on Foreign Investments of the United States, Germany and Japan <p>This research paper aims to analyze the return on foreign outward and inward investments of the United States, Germany and Japan. For all of the three countries the cumulative inflows of the financial account from inward direct, portfolio and other investments significantly exceed the income outflow. At the same time, the amount of income received by the United States exceeds the amount of investment abroad. Due to the fact that the profitability of outward investments for the US, Japan and Germany exceeds the return on inward investments it can be concluded that participation of these countries in international investments has a positive effect on their balance of payments. In the countries that are partners of the United States, Japan and Germany the opposite effect is observed. The results of the study indicate that in 2020 due to the financial stimulation of the social-economic development in the conditions of the coronavirus pandemic the sharp increase of the level of public debt to GDP in the US, Japan and Germany has not yet affected significantly the yield of government securities. However, if the current expansionary fiscal policies of the United States and Japan are continued, countries may face substantial problems in servicing their public debt. In such a situation the Central Bank of Japan and the US Federal Reserve System will be forced to keep the discount rate at almost zero for a long time, fearing a sharp rise in the cost of servicing public debt.</p> Sergey Yakubovskiy Giorgio Dominese Tetiana Rodionova Arina Tsviakh Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 17 27 10.14666/2194-7759-9-2-002 Modelling countries’ inclusion into global value networks and testing its influence over mega-regional unions existence <p>The paper is devoted to the modelling of the relationship between global value networks functioning and existence of mega-regional unions. The goal of the paper is to test an influence of firm’ openness to global economy on global value chains and after global value chains functioning on mega-regional unions existence. Using World bank enterprises survey data covering 2005-2017 on specific indicators describing countries’ enterprises openness to global economy and OECD-EORA GVC-related indicators specific OLS and probit models were testing, including testing GVC in 2017 and in 2011 on openness to global economy indicators, change in GVC’s participation on changes in openness to global economy, probability of being mega-regional member on GVC in 2017, 2011 and 2005 respectively, the same for different megaregions (TTP, TTIP, RCEP, SHOSS, BRICS), the reverse relation between GVCs’ participation and fact of being mega-regional member. Most of models have high explanative power, coefficients before independent variables are statistically significant and have right signs. It was concluded that more time remote progress in GVC’s participation has more effect over the probability of entering mega-regional unions. Reversely, mega-regional unions’ membership does not influence expansion of GVCs directly, but rather captures country specific effects. The research results are limited to countries under consideration and models used. Further researches could be concentrated on the elaboration of mutual dependence of GVCs and mega-regionals. It is suggested to include time variable indicating moment of being included into mega-regional union in order to test the instant effects over global value networks functioning. Moreover, it is advised to instrument dummy variable “megaregion” by country related economic indicators (GDP, FDI, etc.) to see whether it make difference over regression results. </p> Alla V. Kobylianska Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 29 44 10.14666/2194-7759-9-2-003 Public Debt and Economic Growth in the Western Balkan Countries <p>The paper empirically examines the relationship between public debt and economic growth in the Western Balkan countries during the period from 1995 to 2017 (both years inclusive). The study attempts to identify and determine the threshold values or the extent to which public debt-to-GDP ratio has a positive effect on economic growth, and beyond which point debt has a negative effect on the economic growth in Western Balkans countries. For this purpose, we employ different econometric models and techniques such as pooled OLS, fixed and random effects models, and GMM (Generalized Method of Moments). The results are consistent with the theoretical hypothesis that lower level of public debt has a positive effect on economic growth, and beyond certain threshold level it inverts into a negative effect on economic growth. The results show that the debt-to-GDP ratio turning point is between 50% and 60%, which means that any increase of public debt up to this point has a positive impact on economic growth, however, it inverts to a negative effect beyond this point. The findings of this study are useful for governments of Western Balkans countries, since it provides them with useful information about the level of public debt, i.e. the point at which the positive effects of public debt on economic growth turn negative.</p> Besnik Fetai Kestrim Avdimetaj Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 45 56 10.14666/2194-7759-9-2-004 Globalisation and the funding sustainability of the OECD welfare state <p>Without any doubt, the relationship globalisation has with the welfare state size is a very controversial topic, especially after the 80ties, when globalisation took the high road and started drastically changing the world economies, policies and industries. Opening the economies, means opening them up to external pressures, generally and when it comes to wages, taxes and social expenditures. In many OECD countries, the welfare state is perceived as a main cause for the ineffectiveness of the economies, and as a disabler of the postulate of free market. But, these points of view, do not decrease the important role the welfare state actually has. The only thing they can actually change, in this constant fight for higher profits, is to affect the size the welfare states have, both on the sides of the revenues and expenditures. In this article we detect a negative relationship among globalisation and two types of tax revenues: tax on property and tax on payroll in the OECD for the observed period from 1980 to 2017. On the expenditure side, we detect a negative relationship among globalisation and the health expenditures. We as well find a present convergence of the welfare state sizes on the sample of the OECD countries. That is why, in the last part of this article, we overview the convergence in the European Union and the rest of the OECD countries. </p> Emilija Poposka Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 57 72 10.14666/2194-7759-9-2-005 Characteristics of Paper Industry in Vietnam and its Investment Orientations until 2030 <p><em>Purpose of study:</em> The aim of this&nbsp;article&nbsp;is&nbsp;to examine the characteristics of paper industry in Vietnam, types of capital investment, trends and the effectiveness of the utilization of capital investment in this industry. This contributes to assessing the current state of investment, giving some suggestions to investors and supporting Vietnam's paper industry to become a strong competitive industry in the domestic and foreign markets.</p> <p><em>Methodology:</em> This article is based on the quantitative analysis method using data published by the Vietnam Pulp and Paper Association (VPPA), the General Statistics Office of Vietnam and the author's calculations.</p> <p><em>Main Findings:</em> It is realized that although the paper industry has a lot of strengths such as low depreciation and labor costs, available regional workers, the investment in this industry still has many weaknesses that need to be overcome and require some orientations on investment objectives and plans.</p> <p><em>Application of this study:</em> This article provides an overview of the investment in Vietnam’s paper industry and some orientations for domestic and foreign investors.</p> <p><em>Novelty/Originality of this study:</em> We study the characteristics and investment status of the Vietnamese paper industry which has not been studied by many authors before.</p> Hoang Nguyen Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 73 81 10.14666/2194-7759-9-2-006 On Vietnam’s Foreign Strategic Space during Renewal (Doi Moi) Time, since 1986 <p>Since the renewal time (1986), the strategic space in general and the foreign space in particular of Vietnam have been gradually promoted and progressed in favour of the national construction and development. That fact results from the transformation from the approach which was mostly the politic ideology - class-based thought in association, alliance, organization and force gathering into multilateralizing and diversifying the relations, giving top priority to the national-fatherland interests and being active in international integration. However, Vietnam's diplomatic strategic space is facing the challenge mostly due to increase in strategic competition among the big countries, especially the geopolitic ambition of China and cyber-security. For this reason, Vietnam should reach more typical actions such as promoting the studies, planning the foreign &nbsp;strategies, enhancing the communication and diplometic affairs, combining the fights in all aspects, consisting of politic-economic, cultural and legal foreign affairs, attracting more resources, strengthening, intensifying and connecting the internal forces, including renewing the politic system and reinforcing the national defence power in order to protect and enlarge the foreign space for Vietnam's more favorable career of national construction and development in the current context.</p> Khanh Tran Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 83 96 10.14666/2194-7759-9-2-007 The Construction and Reconstruction of Global Health Governance System under Public Health Emergencies <p>A series of public health crisis disrupted throughout the 21st Century, bringing global health governance under spotlight and consequently challenging its existing structure. Analysing based on Zürn’s three layers of the global political system that consist of normative principles, political institutions and the interactions between authorities, the article highlights that the current global health governance structure is under pressure for restructuring and reforming. The article argues that the key to enhancing international cooperation in combating public health crisis, is to reform the global health governance from its existing monopolist power structure to a multilateral governance model; and the normative principles should be adapted for regulating measures for combating public health emergencies, and their enforcement capacity should be enhanced. The article proposes that the World Health Organisation (WHO) is in need of reshaping the organisation by reducing its image as a political authority, while strengthening its role as a professional and independent global health authority, competent to lead in combating global public health crisis. Actors, such as non-government organisations and private corporations should also be given legitimate and institutionalised roles to the largest extent in the global health governance.</p> Li Lou Yijun Wei Xiaoyang Wei Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 97 116 10.14666/2194-7759-9-2-008 Inflation Rate and Gross Written Premium (GWP) Influence on the Profitability of UAE Insurance Sector. A Post Financial Crises Analysis <p>This study highlights how the profitability of insurance companies is affected by the gross written premium (GWP) and the inflation rate in the United Arabs Emirate (UAE). The sector of insurance globally has been affected due to the financial crises in 2007-2008. UAE insurance sector witnessed a shrink from 2008-2010. This research discovers the impact of the inflation rate and gross written premium (GWP) on the profitability of the United Arab Emirates (UAE) insurance sector from 2010 to 2019, and how the insurance sector improved during the post-financial crises. The UAE insurance market offers two types of insurance: the conventional insurance, that allows individuals to shift the burden of riskiness loss to the insurance firm, and the Takaful insurance that collects the premium by the members in order to ensure that there’s no damage or loss against each other.<br />Islamically insurance is essentially an idea of mutual help; therefore, the difference between the two insurances should be cleared up. In developed countries, individuals may own a range of assets and have exposure to potential risks that demand some form of life and/or general insurance protection. They also desire to secure incomes for their own confiscation or family members in the event of their death. In developed countries, businesses also are more plausible to use insurance to lessen the financial impact of adverse events. Insurance sector in developing countries has shown an increase even if the level of development of this one remains low compared to developed countries since the developing countries have a lack of coverage. Insurance can help society to improve livelihoods, increase the country’s productive capacity and secure prosperity.</p> Muhamad Abdul Aziz Muhamad Saleh Jumaa Copyright (c) 2020 Journal Global Policy and Governance 2020-11-10 2020-11-10 9 2 117 137 10.14666/2194-7759-9-2-009