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The IUP Journal of International Relations

October '10
Focus

Palestine and Israel are in a conflict over a territory, which they associate with their distinct cultures, histories and identities. Both regard sovereignty over the territory in conflict, as fundamental to their existence.

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The Right of Self-Determination: Legal and Human Rights Dimension of the Palestinian-Israeli Conflict
The Legality of the Israeli Blockade of Gaza
New Features of the International Industrial Labor Division and Its Impact on China's Economy
International Money Laundering Activities: Sports to Terrorism
Democracy, Education and the Youth: Botswana's Experience
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The Right of Self-Determination: Legal and Human Rights Dimension of the Palestinian-Israeli Conflict

-- Brijesh Mehrish

The principle of self-determination enshrined in Woodrow Wilson's 14 Points after World War I, generated controversy and resulted in the break-up of empires and states in the Europe. An attempt is made to analyze the legal and human rights dimension of the Palestinian-Israeli conflict and the various processes to resolve the conflicts and dynamics of the Palestinian society characterized by factionalism and gang violence as a result of the emergence of Islamic fundamentalism. The basic question is how to reconcile the seeming demands for access to power, government and territory. This requires compromises on the issues of equality, sovereignty, territorial integrity and recession. These issues are discussed in the context of the Palestinians' demand for the right of self-determination as most of the territories of Palestine are under Israeli occupation. In 1947, Palestine was partitioned into the Jewish state of Israel and the Arab state of Palestine which resulted in several wars between the Jewish state of Israel and Palestine. So far the Palestinian-Israeli conflict has not been resolved. There are many hurdles and obstacles in the way of resolving the conflict through negotiations for peace and stability in the Middle East. The US foreign policy under various Presidents and their diplomatic initiative for dialogue for peaceful negotiation has been examined.

The Legality of the Israeli Blockade of Gaza

-- Fred Aja Agwu

This paper contests the view that the Israeli blockade of Gaza is illegal. Those who posit the illegality of the blockade had premised their argument on the fact that Israel cannot be said to be at war with the Palestinians in Gaza because the latter does not constitute a state. It had also been argued that even if Israel was at war with Gaza, the war is not of an international character and as such, the law of armed conflict cannot apply, especially that of belligerent blockade because Gaza does not have a navy. In contradicting the opponents of the Gaza blockade, this paper argues that Israel is at war with the Hamas in Gaza; that by dint of Martens Clause and Article 3, common to the four Geneva Conventions (1949), the law of armed conflict applies to all circumstances, both to international and non-international armed conflicts; and that whether or not the Hamas in Gaza have a naval force, a belligerent blockade can be imposed on Gaza. This paper concludes that the legality of the Gaza blockade is given, but it, however, deplores the seeming watertight nature of the blockade, and the excessive force the Israelis deployed in the interdiction of the Gaza-bound and Turkey-flagged flotilla. Hence, it concludes that much as the Israelis have the belligerent right to the Gaza blockade, the Palestinians in Gaza also have a legitimate right to demand the application of humanitarian principles to the blockade, which entails that the blockade be eased, should not be made absolute, and should rather allow for a mercy corridor. But the paper finally concludes that the ultimate solution resides in both sides forswearing extreme standpoints and vowing sincere commitment to a lasting solution to the conflict.

-- Zhang Jianping

This paper studies the new features of international industrial structure adjustment and transfer, which is driven by economic globalization and scientific and technological advancements since the 1990s. It mainly analyzes the major impacts on the economy of China by international industries' accelerated transfer and intra-product specialization under globalization. Based on the theory of Modern Dynamic Comparative Advantage and Vertical Specialization, it uses models and empirical tests, and proves that China's large trade surplus is mainly the result of China's international division status and the structural factors of processing and manufacturing links in the international industrial chain. And along with other factors, they led to high foreign exchange reserves and high liquidity. Regression analysis shows that China's exports are mainly pulled by external demands (75%); the exchange rate has a contribution rate of 20% to trade surplus, and the RMB exchange rate adjustment cannot change the trade surplus pattern. When faced with the accelerating international industrial transfer, the deepening international intra-products' division and sustained global trade and economic imbalance, etc., in order to play for China's dynamic comparative advantages and avoid falling into the trap of comparative advantage, in the short term, the expansion of domestic demands is required as an effective way to control the trade surplus, lower the foreign exchange reserve pressure and reduce the liquidity. China should increase imports and overseas investment. In the long term, from the national strategic view, China needs to speed up the implementation of the new type of internationalization strategy. It should implement a package of foreign economic and structural policy reforms, improve the status of the international industrial division, and gradually open its capital account with the support of exchange rate policy adjustments, so as to form a new international competitive advantage.

International Money Laundering Activities: Sports to Terrorism

-- Saurabh Kumar

This paper examines the macroeconomic effects of money laundering and the role of international anti-money laundering mechanism, particularly the works of Financial Action Task Force (FATF). It posits that the coexistence of free international capital flows and national institutional and regulatory systems created chaos in which transnational economic and financial delinquency flourished. The legal and institutional infrastructure that enabled free financial flows across the universe has made many countries vulnerable to money laundering. This paper emphasizes that money laundering not only impacts tax collection, foreign reserve and financial crime but also hits directly the distribution part of wealth and demand side of money. It also focuses on the evolution, concept and course of action of money laundering with certain examples. Further, this paper underlines how sports have now become a part of money laundering activities and covers its illegitimate sources. It stresses that to counter money laundering, joint international attention is needed. Countries must eliminate unfavorable policies and they should not hesitate to compromise with their financial confidentiality policies.

Democracy, Education and the Youth: Botswana's Experience

-- Christopher Ntau, Tidimane Ntsabane and Robert M Molebatsi

This paper, drawing on historical data, looks at how African societies in general and Botswana in particular, have prepared their youths for participation in the political process. It argues that their involvement in politics is rooted in the traditional culture that limits the youth's participation in public affairs. This culture is reproduced by the main socializing agents in society such as family, school, political parties and the media.

National Interest, International Law and Our Shared Destiny

Author: Fred Aja Agwu
Reviewer: Alex Ekeanyanwu

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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