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The space industry: Trade related issues
Books
Distortions in competition THE SPACE INDUSTRY: TRADE RELATED ISSUES Organisation for Economic Cooperation and Development OECD, Paris, 1985, 91 pp
outer space there would appear to be some difficulties and limitations with its presentation of international trade in the space industry. In the first instance it is not clear that there is general agreement on the components specific to the industry and which would form the basis for an analysis of trade in the products of the space industry. The study under review considers there to be three basic production activities within the space sector satellites, launchers, and ground stations - and international trade is discussed in terms of these products. Many readers of this journal might hold that this is too narrow a consideration. More importantly, considerations of the distortions to multilateral trade resulting from government involvement with the space industry ignores, to a great extent, the origins of the industry and, in many cases, its continuing features. Space activities had their origin in government initiatives and the industry continues in its reliance on governments for the sponsorship of the majority of space activities. With the large capital costs associated with entry to the industry
This slim volume is one of four studies of issues germane to trade in high technology products; the other studies are in the areas of machine tools, pharmaceuticals, and semiconductors. The OECD's remit was to examine the extent of government involvement in these industries and to identify any resulting distortions in competition that might generate friction at the international level. The choice of the space industry for a case study of this type is somewhat surprising in that it is not immediately obvious that the level of trading activity associated with the industry is significant nor would the industry be comparable to the subjects of the other case studies. The volume of trade in space products is small and it would be wishful to assume that there exists a multilateral trading system for these products. In any discussion of trade there is the additional complication, recognized by the OECD, that the appropriate trade data do not yet exist because of the deficiencies of national statistical collection offices. As a result, the study is unable to discuss trade in any rigorous fashion and instead focuses mainly on how THE DREAM IS ALIVE markets operate. There is then a consideration of space markets, produced and directed by Graeme prices, space budgets, the supply Ferguson, in cooperation with NASA, structure, and facets of government the Smithsonian Institution's National policy. Much of this presentation Air and Space Museum, IMAX Syswould be familiar to readers of this tems Corporation, and Lockheed Corjournal as it is extracted from the poration. mainstream space literature of a few years ago with very optimistic fore1985, 70mm IMAX, 60 minutes, casts for satellite markets, launcher colour costs and competition. There is, however, little consideration of cur- 'The dream is alive' is one of those rent preoccupations with space sta- unique and memorable films that all tions and commercialization. readers of Space Policy should find the While it is admirable that the time to see. What makes the film OECD has given some attention to unique is IMAX, developed by the the activities associated with the use of IMAX Systems Corporation of Cana-
and with burgeoning research and development costs it is difficult to envisage an alternative arrangement. These activities were started by countries at different times with the result that there are great variations in the type and levels of activity, and great disparities in the levels of capabilities. It is not surprising that some governments seek to protect their infant industry and in this context notions of unfettered trade run counter to political realities. This is reinforced by the association of space activities with strategic considerations and the attendant restrictions on the free movement of goods. A commendable attempt by the OECD to deal with a complex subject. However, it may be argued that, definitional problems aside, the structure and characteristics of the industry are somewhat different from the other high technology industries considered and that while there may develop some patterns of trade it would be unrealistic to expect there to be an unhindered multipolar trading system.
Mahindra Naraine Department of Politics University of Lancaster Lancaster, LA1 4YF, UK
A film of the space experience
254
da, whereby 70 mm film is projected (by a special IMAX projector) to produce vast, brilliantly clear-cut images onto a 32-foot high and 64-foot wide curved cinema screen five storeys high. The only such IMAX cinema in the UK is at the National Museum of Photography, Film and Television in Bradford, where 'The dream is alive' has been playing to packed houses since its European premi6re in September 1985. The film, which is the story of three Shuttle flights in 1984, presented challenges throughout its production. The bulky IMAX camera had to be specially modified for use on the Shuttle. The film's producer/director, Graeme
SPACE POLICY August 1986
Distortions in competition THE SPACE INDUSTRY: TRADE RELATED ISSUES Organisation for Economic Cooperation and Development OECD, Paris, 1985, 91 pp
outer space there would appear to be some difficulties and limitations with its presentation of international trade in the space industry. In the first instance it is not clear that there is general agreement on the components specific to the industry and which would form the basis for an analysis of trade in the products of the space industry. The study under review considers there to be three basic production activities within the space sector satellites, launchers, and ground stations - and international trade is discussed in terms of these products. Many readers of this journal might hold that this is too narrow a consideration. More importantly, considerations of the distortions to multilateral trade resulting from government involvement with the space industry ignores, to a great extent, the origins of the industry and, in many cases, its continuing features. Space activities had their origin in government initiatives and the industry continues in its reliance on governments for the sponsorship of the majority of space activities. With the large capital costs associated with entry to the industry
This slim volume is one of four studies of issues germane to trade in high technology products; the other studies are in the areas of machine tools, pharmaceuticals, and semiconductors. The OECD's remit was to examine the extent of government involvement in these industries and to identify any resulting distortions in competition that might generate friction at the international level. The choice of the space industry for a case study of this type is somewhat surprising in that it is not immediately obvious that the level of trading activity associated with the industry is significant nor would the industry be comparable to the subjects of the other case studies. The volume of trade in space products is small and it would be wishful to assume that there exists a multilateral trading system for these products. In any discussion of trade there is the additional complication, recognized by the OECD, that the appropriate trade data do not yet exist because of the deficiencies of national statistical collection offices. As a result, the study is unable to discuss trade in any rigorous fashion and instead focuses mainly on how THE DREAM IS ALIVE markets operate. There is then a consideration of space markets, produced and directed by Graeme prices, space budgets, the supply Ferguson, in cooperation with NASA, structure, and facets of government the Smithsonian Institution's National policy. Much of this presentation Air and Space Museum, IMAX Syswould be familiar to readers of this tems Corporation, and Lockheed Corjournal as it is extracted from the poration. mainstream space literature of a few years ago with very optimistic fore1985, 70mm IMAX, 60 minutes, casts for satellite markets, launcher colour costs and competition. There is, however, little consideration of cur- 'The dream is alive' is one of those rent preoccupations with space sta- unique and memorable films that all tions and commercialization. readers of Space Policy should find the While it is admirable that the time to see. What makes the film OECD has given some attention to unique is IMAX, developed by the the activities associated with the use of IMAX Systems Corporation of Cana-
and with burgeoning research and development costs it is difficult to envisage an alternative arrangement. These activities were started by countries at different times with the result that there are great variations in the type and levels of activity, and great disparities in the levels of capabilities. It is not surprising that some governments seek to protect their infant industry and in this context notions of unfettered trade run counter to political realities. This is reinforced by the association of space activities with strategic considerations and the attendant restrictions on the free movement of goods. A commendable attempt by the OECD to deal with a complex subject. However, it may be argued that, definitional problems aside, the structure and characteristics of the industry are somewhat different from the other high technology industries considered and that while there may develop some patterns of trade it would be unrealistic to expect there to be an unhindered multipolar trading system.
Mahindra Naraine Department of Politics University of Lancaster Lancaster, LA1 4YF, UK
A film of the space experience
254
da, whereby 70 mm film is projected (by a special IMAX projector) to produce vast, brilliantly clear-cut images onto a 32-foot high and 64-foot wide curved cinema screen five storeys high. The only such IMAX cinema in the UK is at the National Museum of Photography, Film and Television in Bradford, where 'The dream is alive' has been playing to packed houses since its European premi6re in September 1985. The film, which is the story of three Shuttle flights in 1984, presented challenges throughout its production. The bulky IMAX camera had to be specially modified for use on the Shuttle. The film's producer/director, Graeme
SPACE POLICY August 1986