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ARTICLES

Economic Competition and Nuclear Cooperation

The “Nuclear Renaissance” Revisited

Pages 21-41 | Published online: 18 Feb 2014
 

Abstract

The number of bilateral nuclear cooperation agreements surged during the “nuclear renaissance” of the past decade. This proliferation is only partially explained by the prevailing approaches that focus on strategic imperatives. To supplement these explanations, this study draws on neoliberal models of economic competition to posit that bilateral agreement negotiations also exhibit conditions of “uncoordinated interdependence” and maneuvering to gain market share. Case evidence suggests the contours of supplier state bids for civilian assistance are determined at least as much by considerations about economic competition as they are by positive strategic goals. In addition, this study identifies several cases of cooperation where there appears to be little or no strategic motive for export agreements. The study concludes that patterns of economic competition and the influence of peers in defined competitive spaces alter material payoffs and impact policies. It also identifies a surprising role for principled restraint in dampening strategic and economic competition in some dyads.

ACKNOWLEDGMENTS

The author received helpful commentary on development of this manuscript from Matthew Fuhrmann, Jonathan Pearl, Juliet Kaarbo, Jim Wirtz, Jim Keeley, John Baylis, Imad El-Anis, and Jeffrey Knopf. Feedback from anonymous reviewers for the Nonproliferation Review also helped refine several critical arguments. Some research for this article was completed while the author served as a visiting scholar in the Institute for Security and Conflict Studies at the Elliott School of International Affairs, George Washington University, and thanks go to director Charles Glaser and his colleagues for their advice and support. An earlier version of this paper was presented at the Monterey Strategy Seminar at the Naval Postgraduate School, in Monterey, California, in the fall of 2011.

Notes

1. Matthew Fuhrmann, “Spreading Temptation: Proliferation and Peaceful Nuclear Cooperation Agreements,” International Security 34 (Summer 2009), pp. 7-41; Matthew Fuhrmann, Atomic Assistance: How “Atoms for Peace” Programs Cause Nuclear Insecurity (Ithaca, NY: Cornell University Press, 2012); Matthew Kroenig, “Exporting the Bomb: Why States Provide Sensitive Nuclear Assistance,” American Political Science Review 103 (February 2009), pp. 113-33.

2. Matthew Fuhrmann, “Nuclear Suppliers and the Renaissance in Nuclear Power,” in Adam Stulberg and Matthew Fuhrmann, eds., The Nuclear Renaissance and International Security (Stanford, CA: Stanford University Press, 2013), p. 5; see also Douglas M. Stinnett, Bryan R. Early, Cale Horne, and Johannes Karreth, “Complying by Denying: Explaining Why States Develop Nonproliferation Export Controls,” International Studies Perspectives 12 (August 2011), pp. 308-26.

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6. Sonali Singh and Christopher Way, “The Correlates of Nuclear Proliferation: A Quantitative Test,” Journal of Conflict Resolution 48 (December 2004), pp. 859-85; see also Dong-Joon Jo and Erik Gartzke, “Determinants of Nuclear Weapons Proliferation,” Journal of Conflict Resolution 51 (February 2007), pp. 1-28.

7. Fuhrmann, “Spreading Temptation,” p. 9; Matthew Kroenig, “Importing the Bomb: Sensitive Nuclear Assistance and Nuclear Proliferation,” Journal of Conflict Resolution 53 (April 2009), p. 165.

8. Kroenig, “Exporting the Bomb,” p. 117; See also Matthew Kroenig, Exporting the Bomb: Technology Transfer and the Spread of Nuclear Weapons (Ithaca, NY: Cornell University Press, 2010).

9. Kroenig, Exporting the Bomb; Jo and Gartzke, “Determinants of Nuclear Weapons Proliferation.”

10. Fuhrmann, “Spreading Temptation,” p. 8.

11. Fuhrmann, “Spreading Temptation,” p. 10.

12. See, for example, William C. Potter ed., International Nuclear Trade and Nonproliferation (Lexington, MA: Lexington Books, 1990); Sheena Chestnut, “Illicit Activity and Proliferation,” International Security 32 (Summer 2007), pp. 80-111; Matthew Kroenig, “Exporting the Bomb,” p. 126.

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29. Richard M. Price, The Chemical Weapons Taboo (Ithaca, NY: Cornell University Press, 1997), p. 10.

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32. Recently, Jordan's diplomatic stance was rewarded with an appointment to the IAEA's influential Board of Governors.

33. Jack Caravelli, Beyond Sand and Oil: The Nuclear Middle East (Santa Barbara, CA: Greenwood Publishing Group, 2011).

34. It should be noted that the US Nuclear Regulatory Commission has negotiated agreements (technically termed “arrangements”) for low-level cooperation, technical information exchanges, and advising on nuclear regulatory matters with both the Jordan Nuclear Regulatory Commission and the Vietnam Agency for Radiation and Nuclear Safety (VARANS) in recent years; Paul K. Kerr, Mark Holt, and Mary Beth Nikitin, “Nuclear Energy Cooperation with Foreign Countries: Issues for Congress,” Congressional Research Service Report, July 11, 2011, <www.fas.org/sgp/crs/nuke/R41910.pdf>; US Department of State, “Arrangement Between the United States Nuclear Regulatory Commission and the Jordan Nuclear Regulatory Commission for the Exchange of Technical Information and Cooperation in Nuclear Safety Matters,” Document #2012-0176, September 20, 2012, <http://www.state.gov/documents/organization/206367.pdf>.

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36. Beilin, “Let Jordan Enrich Its Own Uranium.”

37. “Russia, Jordan Sign Nuclear Cooperation Agreement,” Haaretz, May 23, 2009, <www.haaretz.com/news/russia-jordan-sign-nuclear-cooperation-agreement-1.276562>.

38. Government Accountability Office, “Nuclear Commerce: Government-wide Strategy Could Help Increase Commercial Benefits from U.S. Nuclear Cooperation Agreements with Other Countries,” Report to the Committee on Foreign Affairs, House of Representatives, GAO-11-36, November 2010, <www.gao.gov/assets/320/311924.pdf>.

39. “Emerging Nuclear Energy Countries,” June 25, 2012, <www.world-nuclear.org/info/inf102.html>.

40. Taylor Luck, “Jordan Enters Talks with Russian, French Firms over Nuclear Reactor,” April 29, 2012, <http://jordantimes.com/jordan-enters-talks-with-russian-french-firms-over-nuclear-reactor>.

41. Quoted in an interview with Nuclear Export Controls blog, January 12, 2012, <http://nuclearexportcontrols.blogspot.com/2012/01/khaled-touqan-jordan-no-nuclear-reactor.html>.

42. James. F. Keeley, “A List of Bilateral Civilian Nuclear-Cooperation Agreements,” Vol. 5, University of Calgary, 2009, <http://dspace.ucalgary.ca/bitstream/1880/47373/11/Treaty_List_Volume_05.pdf>.

43. Government Accountability Office, “Nuclear Commerce: Government-wide Strategy Could Help Increase Commercial Benefits from US Nuclear Cooperation Agreements with Other Countries.”

44. American Council on Global Nuclear Competitiveness, “Mission and Overview,” <http://archive.is/ycA1U>.

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46. “Heavy Manufacturing of Nuclear Power Plants,” World Nuclear Association, August 2013, <www.world-nuclear.org/info/Nuclear-Fuel-Cycle/Power-Reactors/Heavy-Manufacturing-of-Power-Plants/>.

47. Dan Yurman, “Update on Jordan's Nuclear Program,” Idaho Samizdat: Nuke Notes Blog, June 7, 2012, <http://djysrv.blogspot.com/2012/06/update-on-jordans-nuclear-program.html>.

48. Etel Solingen, “The Perils of Prediction: Japan's Once and Future Nuclear Status,” in Potter and Mukhatzhanova, eds., Forecasting Nuclear Proliferation in the 21st Century, Volume 2, pp. 131-57.

49. It is perhaps ironic that Ichiro Takekuro of the Tokyo Electric Power Company was named president of JINED just months before the Fukushima disaster.

50. Takuya Hattori, President, Japan Atomic Industrial Forum, Inc., “Welcoming Four Nuclear Cooperation Agreements,” January 30, 2012; “Vietnam Looking to Expand Nuclear Cooperation to Japan and US,” Platts Nucleonics Week 51, September 30, 2010, <https://online.platts.com/PPS/P=m&e=1286398459931.3502121332992842945/NW_20100930.xml?artnum=c0dc3d75f-04f9-4c7b-be12-ca16f11bc888_7>.

51. Yurman, “Update on Jordan's Nuclear Program.”

52. Tsutomu Ishiai, “Jordan's First Nuclear Reactor Could Be Delayed by Syrian Conflict,” Asahi Shimbun, May 16, 2012, <http://ajw.asahi.com/article/0311disaster/fukushima/AJ201205160022>.

53. As of late 2013, Japan is negotiating nuclear agreements with the United Arab Emirates, India, South Africa, and Turkey.

54. “Jordan urges Diet to ratify nuclear pact,” Japan Times, October 23, 2011, <info.japantimes.co.jp/text/nn20111023a2.html>.

55. Taylor Luck, “Central Badia Residents Denounce Nuclear Reactor Plans,” Jordan Times, November 9, 2013 <http://jordantimes.com/central-badia-residents-denounce-nuclear-reactor-plans>.

56. In March 2010, a South Korean consortium (Korean Atomic Energy Research Institute and Daewoo) won a contract to build a research reactor at Jordan University for Science and Technology by 2015; Taylor Luck, “Jordan to Break Ground on First Reactor ‘By Year's End’,” Jordan Times, June 19, 2012, <http://jordantimes.com/jordan-to-break-ground-on-first-reactor-by-years-end>.

57. “USA and Vietnam Agree to Nuclear Cooperation,” World Nuclear News, March 31, 2010, <www.world-nuclear-news.org/NP-USA_and_Vietnam_agree_to_nuclear_cooperation-3103104.html>.

58. Doan Phac Le, “Vietnam's Nuclear Power Development Plan: Challenges and Preparation Work for the First Nuclear Power Projects, INPRO SMR Forum,” October, 2011.

59. “USA and Vietnam Agree to Nuclear Cooperation.”

60. Agence France Presse, “Russia Gets Vietnam's First Nuclear Power Deal,” February 9, 2010, <www.asiaone.com/News/AsiaOne + News/World/Story/A1Story20100209-197685.html>.

61. Michael Yahuda, The International Politics of the Asia-Pacific, 1945-1995 (New York: Routledge, 1996).

62. Masaya Shiraishi, Japanese Relations with Vietnam, 1951-1987 (Ithaca, NY: Southeast Asia Program, Cornell University, 1990); Keiko Hirata, “Japan as a Reactive State? Analyzing the Case of Japan-Vietnam Relations,” Japanese Studies 18 (April 1998), pp. 41-58.

63. Ben Bland, “Vietnam: Going Nuclear with US Help,” Financial Times, December 9, 2010, <http://blogs.ft.com/beyond-brics/2010/12/09/vietnam-going-nuclear>.

64. Agence France Presse, “Russia Gets Vietnam's First Nuclear Power Deal.”

65. John Daly, “Never Mind Fukushima—Vietnam to Embrace Nuclear Power,” Oilprice.com, March 10, 2013, <http://oilprice.com/Alternative-Energy/Nuclear-Power/Never-Mind-Fukushima-Vietnam-to-Embrace-Nuclear-Power.html>.

66. Le Doan Phac, Deputy Director General of the Vietnam Atomic Energy Agency, “Presentation to the INPRO Dialogue Forum on Nuclear Energy Innovations: Common User Considerations for Small and Medium-Sized Nuclear Power Reactors,” Vienna, Austria, October 10-14, 2011, <www.iaea.org/INPRO/4th_Dialogue_Forum/AGENDA_DF_Drivers.pdf>.

67. “Impetus for Japan-Vietnam Reactor Deal,” July 5, 2013, World Nuclear News, <www.world-nuclear-news.org/NN_Impetus_for_Japan_Vietnam_reactor_deal_0506131.html>.

68. Mycle Schneider, Nuclear France Abroad: History, Status, and Prospects of French Nuclear Activities in Foreign Countries, Paper for the Centre for International Governance Innovation in Waterloo, Ontario, Canada, May 2009, p. 6; See also Michelle Smith and Charles D. Ferguson, “France's Nuclear Diplomacy,” International Herald Tribune, March 11, 2008, <www.cfr.org/france/frances-nuclear-diplomacy/p15707>.

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