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Begin New Search Political Geography Global Focus Content Type Policy Brief Publication Year within 3 Years

91. Is Foreign Direct Investment Losing Clout in Development?

Author:
Axel Berger and Alexandros Ragoussis
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Over the last decade, only a single projection of foreign direct investment (FDI) flows by the United Nations influential “World Investment Report” has proposed a negative outlook in the medium term. Based partly on surveys of business executives, these forecasts reflect ex¬pecta¬tions of investment growth which, however, have repeated¬ly failed to materialise. In fact, FDI flows to develop¬ing countries have remained stagnant over the past decade. Such wishful thinking is nurtured by a long series of positive narratives and facts about foreign investment. FDI has been one of the pillars of international development efforts for over 70 years. Its promise has not been limited to critical finance, but extends to longer term competitiveness through access to better technology, managerial know-how and, above all, prosperity through more and better paid jobs in the formal sector. From the old prescriptions of the so-called Washington Consensus to the hopeful Addis Ababa Action Agenda, the dominant development narrative has therefore favoured a rather indiscriminate pursuit of investment volume. This brief calls for rethinking of narratives and policies that help to improve the impact of FDI, based on secular trends that challenge our expectations. Four such trends stand out: First, while other sources of finance for development have grown considerably over the last decades, foreign invest¬ment has not followed the trend. Second, the kind of investment that is associated with stronger gains and longer term commitment in host economies – greenfield FDI – has also been in consistent decline as a share of total invest¬ment, while mergers and acquisitions and project finance have gained in importance. Third, the top 100 multinational enterprises (MNEs), accounting for nearly a quarter of global FDI stock, rely less on employment today than they used to in order to grow their foreign presence. Job creation, knowledge transfer and spillovers are therefore less likely to materialise through the presence of mega-firms and their corresponding investment at scale. Fourth, the growth of Chinese outward FDI within a strategic expan¬sionary political agenda stands to change rules and attitudes towards foreign investment moving forwards. We argue that, collectively, these trends invite a renewed conversation around the kind of foreign investment we want and expectations of this source of finance for develop¬ment. These facts obscure neither the broad benefits of FDI to developing countries, nor the value proposition of FDI attraction. Rather, they raise questions about expectations, priorities and the alignment of investment policy with the realities experienced across develop¬ing countries. To that end, we propose four priorities that stand to make a difference in the current context. We call for policy-makers to: 1) Place additional emphasis on retention of investment and linkages with the domestic economy. 2) Try new approaches for FDI attraction that focus on improving domestic investment facilitation frameworks. 3) Be selective as to investment sources and activities in order to mitigate political risks and align inward investment better with sustainable development. 4) Add evidence to improve our understanding of invest¬ment and inform decision-making. Overall, it is critical to engage in a serious multi-stakeholder conversation around expectations, actors and solutions that respond to the investment reality of today.
Topic:
Development, United Nations, Foreign Direct Investment, and Economy
Political Geography:
Global Focus

92. Rising Apprehensions

Author:
Simon Serfaty
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
To the end, Samuel Beckett insisted that he did not know who Godot was, nor what his two characters, Vladimir and Estragon, were waiting for. That was not the least absurdity of his play, which he wrote in French, the Irish author later explained, because he did not know the language well. That is where we all are now: confused over what to expect as we stagger into the second and possibly final half of the Biden presidency. In America, momentarily reset as the leader of the Free World, a democracy at risk; in Europe, an alliance recast by an unwanted war; and elsewhere, a global mutation told in languages we understand poorly even when they carry a slight American accent. This is unchartered territory: across the Atlantic, half the people waiting for Trump to return to the White House and the other half waiting for him to go to prison; around the world, half the people welcoming America’s restored leadership and the other half celebrating its demotion; and all over, rising apprehensions over a war which neither belligerent can realistically win but which both refuse to end.
Topic:
NATO, European Union, Geopolitics, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, Global Focus, and United States of America

93. Exchange Rate Predictability Based on Market Sentiments

Author:
Hyo Sang Kim, Eunjung Kang, Yuri Kim, Seongman Moon, and Huisu Jang
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
It is well-known that exchange rates are difficult to forecast using observed macro-fundamental variables. This discrepancy between economic theory and empirical results is called the Meese and Rogoff puzzle. The purpose of this study is to address this puzzle from a new approach. Rather than pursuing a linkage between macro-fundamentals and exchange rates, we focus on the market sentiment index as a factor that could possibly enhance exchange rate predictability. The analysis folds into three phases. First, we conducted an assessment of the traditional exchange rate predictability model, as well as the augmented traditional model incorporating the market sentiment index. Second, we predicted the exchange rate by applying the market sentiment index, based on the contrarian opinion investment strategy commonly used by foreign exchange dealers. Finally, we analyzed if the machine learning model incorporating both economic fundamentals and market sentiment index could enhance the predictability of the exchange rate.
Topic:
Economics, Markets, and Exchange Rates
Political Geography:
Global Focus

94. Embedding Reintegration Assistance for Returning Migrants in the Local Context: The Role of Referrals

Author:
Ravenna Sohst and Camille Le Coz
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Migration Policy Institute (MPI)
Abstract:
The objectives of European reintegration programs for migrants returning to their countries of origin have expanded in recent years. Reintegration assistance, instead of being delivered as standardized support packages, is increasingly being designed to take into account the multiple dimensions of returnees’ reintegration—economic, social, and psychosocial—and the context of the communities in which they settle. As these programs become more complex, it has also become clear that no one service provider can offer all of the various services necessary to meet returnees’ diverse needs and profiles. One way to broaden the range of supports available to returning migrants and embed reintegration assistance into the local context is to refer returnees to local actors, including government agencies and civil-society organizations. Such referrals, particularly when combined with capacity-building assistance for local partners, can help connect returnees with tailored, long-term support. Yet, there is no consensus across reintegration programs as to how referral mechanisms should be organized, what types of services referral partners should deliver, the level of budget support different actors need, and how their work should be monitored. This policy brief explores the role of referrals in reintegration programming, offering a typology of approaches taken across programs to date. It also discusses common challenges, emerging good practices, and promising next steps to improve the local embeddedness of reintegration assistance.
Topic:
International Cooperation, International Organization, Migration, Governance, Integration, Deportation, Reintegration, Immigration Policy, and Illegal Immigration
Political Geography:
Europe and Global Focus

95. Reassessing Recruitment Costs in a Changing World of Labor Migration

Author:
Kate Hooper
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Migration Policy Institute (MPI)
Abstract:
Recent years have seen national governments, multilateral organizations, civil society, and private-sector groups take steps to promote the fair and ethical recruitment of migrant workers, including efforts to reduce or eliminate recruitment costs. High recruitment costs can result in workers taking on a financial burden that can only be serviced through high-interest loans or debt bondage, placing them in a more vulnerable position and curtailing the income they can then save or send to loved ones via remittances. Still, progress to address recruitment costs has been uneven to date, and the pandemic has been a major setback. The public-health crisis has seen some existing costs rise or fluctuate wildly and new ones emerge (e.g., fees associated with COVID-19 testing and quarantine), with particularly pronounced effects in low- and middle-skilled sectors and informal employment. This has put working abroad out of reach for some would-be migrants while exposing others who travel abroad for work to new risks. This policy brief explores how the pandemic has affected costs for migrant workers at every stage of their journey, with a focus on new public-health measures and other additional expenses. It also reflects on what these developments mean for future efforts to promote fair and ethical recruitment. The brief is the first publication resulting from a multiyear research partnership between MPI and the SDC’s Thematic Section Migration and Forced Displacement to support the development of global solutions for migration-related challenges.
Topic:
International Cooperation, International Organization, Labor Issues, Governance, Employment, Economy, COVID-19, Recruitment, Immigration Policy, and Recession
Political Geography:
Global Focus

96. Diversifying Supply Chains: The Role of Development Assistance and Other Official Finance

Author:
Conor M. Savoy and Sundar R. Ramanujam
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
The Issue: The international political economy has undergone significant transformation since March 2020, profoundly impacting global supply chains and bringing to light the risks supply chains pose to economic development around the world. This brief explores some of these risks in detail and lays out the role foreign assistance can play in de-risking and diversifying supply chains by building capacity in new partner countries.
Topic:
International Cooperation, Political Economy, Foreign Aid, and Supply Chains
Political Geography:
Global Focus

97. Indispensable: NATO’s Framework Nations Concept beyond Madrid

Author:
Sean Monaghan and Ed Arnold
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
s NATO’s leaders gather in Madrid this month to unveil the alliance’s eighth strategic concept at a crucial time for European security, they should take inspiration from earlier concepts. In 2014, NATO launched its Framework Nations Concept at the Wales summit to enhance collective defense through multinational cooperation. The idea is built on the basic principles established in NATO’s first strategic concept in 1949. Beyond Madrid, allied leaders should agree to develop the Framework Nations Concept in three ways
Topic:
Security, Defense Policy, NATO, International Cooperation, and Military Strategy
Political Geography:
Global Focus

98. The Digital Literacy Imperative

Author:
Romina Bandura and Elena I. Mendez Leal
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
Reading, writing, and numeracy: these are foundational skills people learn at school and continue using throughout their lifetimes. But as societies evolve and technology progresses, the learning needs and demands of one generation change for the next. Curriculums in educational institutions must keep up with these changes to reflect the new realities. They do so by removing outdated content, incorporating new disciplines, and innovating with new educational tools and techniques. While previous American generations learned Latin and shorthand, current generations learn Spanish or French and practice typing. In many public schools across the United States, cursive handwriting is no longer taught. Children now practice writing and typing using new technology such as tablets and computers, not typewriters. In advanced countries, educational equipment such as blackboards, chalkboards, and even whiteboards have been replaced with high-tech tools such as Promethean boards. While numeracy and basic literacy are still fundamental to learning, digital literacy has emerged as another critical life skill and is now, per the World Economic Forum, part of the twenty-first-century toolkit (see Figure 1). Beyond basic literacy, digital skills have become indispensable for every global citizen, whether to communicate, find employment, receive comprehensive education, or socialize. More than 90 percent of professional roles in across sectors in Europe require a basic level of digital knowledge and understanding. This need has become even more evident during the Covid-19 pandemic, making it more urgent for countries to embrace digital technologies and their associated skills.
Topic:
Education, Science and Technology, Digitalization, and Digital Literacy
Political Geography:
Global Focus

99. Gender Equity to Improve Immunization Services

Author:
Katherine E. Bliss and Alicia Carbaugh
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
The Covid-19 pandemic has underscored the importance of a strong health workforce to outbreak response, as well as of vaccine delivery to prevent further outbreaks. Women and men providing care, transporting supplies, analyzing data, and delivering vaccines to patients and their families have all contributed to pandemic-related activities while maintaining a focus on routine health programs. Women comprise an estimated two-thirds of the formal health workforce worldwide—and a high percentage of the unpaid health workforce as well. Yet gender inequities, including those related to training, compensation, and professional advancement, limit opportunities for female health workers to perform their duties and develop professionally, with implications for quality of care and health outcomes. By prioritizing gender equity within their own health workforces; gathering data on gender dynamics within the immunization programs they support; and supporting initiatives to train, retain, and advance the careers of female immunization workers, donor governments—including the United States, working with bilateral and multilateral partners—can strengthen quality of care, improve global immunization coverage, and reinforce health security in the long run.
Topic:
Governance, Medicine, Equality, Immunization, and Gender
Political Geography:
Global Focus

100. The First Space-Cyber War and the Need for New Regimes and Policies

Author:
Eytan Tepper
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
Many dubbed the Gulf War of 1991 the “first space war” due to the US Armed Forces’ extensive use of satellites. The cyberwar in Ukraine, although it is mostly playing out in the shadows, may be remembered as the first space-cyber war. This policy brief makes the case that states should adopt national policies to defend against threats to space-based assets and applications, such as communications satellites, that are both vital to national security and economic security and increasingly vulnerable to cyberattacks. It is time to explore and identify principles for responsible space-cyber behaviour that would represent a broad multilateral consensus. Identifying these principles may not prevent space-cyber hostilities but could provide “rules of the game.” States would also benefit from encouraging a space-cyber security industry that, beyond protecting against space-cyber threats, has the potential to be a significant growth engine.
Topic:
Security, Infrastructure, Cybersecurity, Space, and Cyberspace
Political Geography:
Global Focus