1. United Nations University - Comparative Regional Integration Studies - UNU-CRIS International Integration and Societal Progress: A Critical Review of Globalisation Indicators Paper prepared for II OECD World Forum on Statistics, Knowledge and Policy: Measuring and Fostering the Progress of Societies, Istanbul, 27-30 June 2007 Philippe De Lombaerde, UNU-CRIS. P. Lelio Iapadre, University of LAquila, Johns Hopkins University (SAIS Bologna Center), UNU-CRIS.

2. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Outline Globalisation indicators: an overview Defining and measuring international integration: conceptual issues –The scope of international integration International integration and societal progress –Trans-national public goods –Competition, innovation and economic growth

3. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Defining and measuring globalisation Economic globalisation indicators: 1979-: World Economic Forums indicator of competitiveness 1996-: Economic Freedom of the World (Gwartney and Lawson) 2001: World Market Research Center globalisation index (G-index) (Randolph) 2004: Riezman, Whalley and Zhang 2005: OECD Handbook on Economic Globalisation Indicators The Human Development Index and the birth of multidimensional indicators of globalisation

4. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Defining and measuring globalisation Globalisation indexNumber of variables Number of categories Dimensions G-Index (Randolph, 2001)62old economy (3 variables), new economy (3) Kearney/FP-GI (2001)114globalisation in goods and services (2), financial globalisation (3), globalisation of personal contact (3), internet connectivity (3) Kearney/FP-GI (2003)134economic integration (4), personal contact (3), technology (3), political engagement (3) Kearney/FP-GI (2004)144economic integration (4), personal contact (3), technological connectivity (3), political engagement (4) Kearney/FP-GI (2005, 2006)124economic integration (2), personal contact (3), technological connectivity (3), political engagement (4) CSGR-GI (Lockwood and Redoano, 2005) 163economic globalisation (4), social globalisation (9), political globalisation (3) MGI (Martens and Zywietz, 2004, 2006) 117global trade (1), global finance (2), global politics (2), organized violence (1), people on the move (2), technology (2), environment (1) DGI (Dreher, 2005)233economic integration (8), political engagement (3), social globalisation (12) Kearney/FP/H (Heshmati, 2006) 134economic integration (4), personal contacts (3), technology (3), political engagement (3)

5. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Defining and measuring globalisation Issues and recommendations: Taking actors into account Differentiating between concepts Adding dimensions and disaggregating flows Distinguishing between different logical components of globalization process: –(1) inputs (policies), –(2) (velocity, extensity and intensity of) global interactions, –(3) outputs (results, effects) Weighting the different sub-indices Parsimony, efficiency and transparency.

6. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Defining the scope of international integration National perspective –Openness to the rest of the world –Geographic diversification and concentration –The role of distance Regional perspective –Intra- and extra-regional integration Global perspective –Global integration as an average of national integration indicators –Intrinsically global processes, without reference to national borders Policy relevance: the debate about regionalism and multilateralism

7. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Measuring the provision of trans-national public goods –Regional vs. global public goods –International integration, in itself, is a sign of societal progress –International political integration helps providing an adequate supply of trans-national public goods –Improving the institutional dimension of international integration indicators Linking international integration to societal progress

8. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Empirical evidence –International integration fosters societal progress –International integration and economic growth: measurement needs Gauging the competition effects of international integration Assessing its effects on knowledge creation and diffusion Distinguishing between the dynamic effects of regional and global integration –International integration and non-economic aspects of societal well-being Linking international integration to societal progress

9. United Nations University - Comparative Regional Integration Studies - UNU-CRIS Conclusions Measuring international integration is essential for a better understanding of societal progress, and for a better formulation of integration policies Composite globalisation indicators face severe conceptual and methodological problems Accurately measuring the scope of international integration (regional vs. global) is essential to understand its implications for economic growth and societal progress