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  • Author: Edward Alden, Rebecca Strauss
  • Publication Date: 05-2014
  • Content Type: Policy Brief
  • Institution: Council on Foreign Relations
  • Abstract: Each year, U.S. state and local governments spend tens of billions of dollars to lure or retain business investment. The subsidies waste scarce taxpayer dollars that could better be used to strengthen public services such as education and infrastructure, or to lower overall tax burdens to create a more favorable investment climate. No state wants to dole out such subsidies, but most fear losing jobs to competing states if they refuse. States should take steps to curb subsidies, beginning with greater disclosure and cost-benefit analyses, and building up to a multistate agreement that creates strong disincentives for continuing subsidies. Existing international arrangements provide models and tools for achieving this.
  • Topic: Economics, International Trade and Finance, Governance, Reform
  • Political Geography: United States, North America
  • Author: Balkan Devlen
  • Publication Date: 06-2014
  • Content Type: Policy Brief
  • Institution: Norwegian Peacebuilding Resource Centre
  • Abstract: From the start of the Ukrainian crisis Turkey kept a low profile and adopted a strategy best described as "don't poke the Russian bear". Russia is a major Turkish trading partner and Turkey relies heavily on Russian natural gas for its energy needs, while Turkish prime minister Erdogan has also been dealing with serious domestic challenges in the last year. Therefore, due to both external and internal factors, Turkey will avoid confronting Russia directly and will pass the buck to the U.S. and EU. In the short to medium term there are three plausible scenarios under which Turkey will change its current policy. They include the oppression of Crimean Tatars by the Russian authorities; military confrontation in the Black Sea between Russia and NATO; or a more unified, tougher stance against Russia by the West. In the long term Turkey most likely will revert to its traditional role of balancing Russia by strengthening its ties with the West, while reducing its energy dependence on Russia.
  • Topic: Foreign Policy, Economics, Governance
  • Political Geography: Russia, United States, Europe, Turkey, Ukraine, Asia
  • Author: Rainer Geiger
  • Publication Date: 04-2014
  • Content Type: Policy Brief
  • Institution: Columbia Center on Sustainable Investment
  • Abstract: Launched in July 2013 by the European Union and the United States, the Transatlantic Trade and Investment Partnership (TTIP) represents an important effort to reach a comprehensive economic agreement between two major trading partners. As has been pointed out, the project offers great opportunities for liberalizing trade and investment and regulatory convergence. Its level of ambition implies high risks, but despite negotiators' initial optimism, its success is far from certain.
  • Topic: Economics, International Trade and Finance, Treaties and Agreements, Foreign Direct Investment
  • Political Geography: United States, Europe
  • Author: John Lee, Charles Horner
  • Publication Date: 04-2014
  • Content Type: Policy Brief
  • Institution: Hudson Institute
  • Abstract: U.S. administrations and officials are consistently caught flat-footed by the increasing assertiveness of the People's Republic of China (PRC) over disputed territories in the East China and South China Seas. This assertiveness is strident, yet controlled. Beijing's objectives in the region, with respect to maritime issues in particular, have been apparent for several decades. While the United States is well aware of the PRC's "talk and take" approach—speaking the language of negotiation while extending de facto control over disputed areas—U.S. policy has been tactical and responsive rather than strategic and preemptive, thus allowing China to control the pace and nature of escalation in executing talk and take.
  • Topic: International Relations, Diplomacy, Economics, International Trade and Finance, Bilateral Relations
  • Political Geography: United States, China, Asia
  • Author: Bill Brownell, Scott Stone
  • Publication Date: 04-2014
  • Content Type: Policy Brief
  • Institution: Atlantic Council
  • Abstract: The release of the second installment of the Intergovernmental Panel on Climate Change's Fifth Assessment Report on March 31, 2014, provoked the usual calls for urgent and immediate action in response to climate change, including in particular at the international level in the form of a new climate treaty built upon domestic regulatory regimes. Irrespective of whether these calls for action are overly strident or carefully measured, the law plays a central role. In almost any discussion, the breadth and stringency of national and sub-national regulations and the extent to which a treaty can make them “legally binding” assumes paramount importance. But this emphasis on law is misplaced, because it runs headlong into the hard reality that would confront any international climate agreement in the US Senate. And given the soaring use of coal around the world, it also draws attention and resources away from far more achievable opportunities to develop and deploy advanced coal technologies that would allow the world's most abundant, accessible, and affordable energy resource to meet critical energy needs in balance with each country's environmental, economic, and security priorities.
  • Topic: Security, Climate Change, Economics, Energy Policy
  • Political Geography: United States, North America
  • Author: Franklin D. Kramer
  • Publication Date: 04-2014
  • Content Type: Policy Brief
  • Institution: Atlantic Council
  • Abstract: As the Ukraine crisis demonstrates, in an unpredictable world, military capabilities can be a critical factor. The longstanding goals of the United States and its NATO allies have been to create a Europe whole and free, and globally to support such goals through collective defense, crisis management, and cooperative security. Ukraine raises the issue of how best to accomplish those ends. As part of the Ukraine response, there have been and will continue to be diplomatic, economic, and energy efforts. However, one key element will be to create more effective integrated capabilities that will support NATO's military tasks, and thus the values and goals that NATO represents.
  • Topic: NATO, Diplomacy, Economics
  • Political Geography: United States, Europe, Ukraine, North America
  • Author: Pinar Dost-Niyego, Orhan Taner
  • Publication Date: 04-2014
  • Content Type: Policy Brief
  • Institution: Atlantic Council
  • Abstract: The recent events in Ukraine have revived the question of European dependence on Russian natural gas. The security of Europe's natural gas supply has been a consistently important issue in Russian-European Union (EU) relations. Russia provided 34 percent of EU gas in 2012, and Russian policies can have a direct impact on EU supplies. After the West-Russian confrontation over Ukraine, a lot has been said about the 'US shale gas revolution' and the possibilities of the United States becoming an energy exporter for future European energy needs. Although US energy independence seems to promise new perspectives for future European energy security, as well as for the balance of power in the Middle East, this is not for this decade. We cannot expect that the European Union would be able to cut off all of its energy relations with Russia, but we can foresee–or at least agree–that the European Union should diversify its natural gas supplies.
  • Topic: Security, Foreign Policy, Economics, Energy Policy
  • Political Geography: Russia, United States, Europe, Ukraine, Middle East, Asia
  • Author: Nancy Birdsall, Homi Kharas, Nabil Hashmi
  • Publication Date: 07-2014
  • Content Type: Policy Brief
  • Institution: Center for Global Development
  • Abstract: The Quality of Official Development Assistance (QuODA) measures donors' performance on 31 indicators of aid quality to which donors have made commitments. The indicators are grouped into four dimensions associated with effective aid: maximizing efficiency, fostering institutions, reducing the burden on partner countries, and transparency and learning. The 2014 edition finds that donors are overall becoming more transparent and better at fostering partner country institutions but that there has been little progress at maximizing efficiency or reducing the burden on partner countries. The World Bank's concessional lending arm, the International Development Association (IDA), performs very well in QuODA, ranking in the top 10 of 31 donors on all four dimensions. The United States ranks in the bottom half of all donors on three of the four dimensions of aid quality and last on reducing the burden on partner countries. The United Kingdom ranks in the top third on three of four dimensions of aid quality and scores particularly well on transparency and learning. The Global Fund ranks in the bottom third on fostering institutions but ranks in the top third on the other three dimensions of aid quality, including the top spot in maximizing efficiency.
  • Topic: Foreign Policy, Development, Economics, Foreign Aid, Foreign Direct Investment
  • Political Geography: United States, United Kingdom
  • Author: Gary Clyde Hufbauer, Cathleen Cimino
  • Publication Date: 07-2014
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: Unconventional extraction methods, namely horizontal drilling and fracking, are transforming global energy production, consumption, and trade. Th e extraction of large amounts of oil and gas from shale formations has led to an unprecedented surge of domestic production in the United States. Th e US Department of Energy (DOE) is now processing more than 40 applications from domestic producers to export liquefi ed natural gas (LNG). While experts still disagree about the magnitude and duration of the energy boom, we are at the "dawn of a US oil and gas renaissance" (Houser and Mohan 2014).
  • Topic: Economics, International Trade and Finance, Monetary Policy
  • Political Geography: United States, North America
  • Author: Raluca Diana Ardelean, Mengun Zhang
  • Publication Date: 07-2014
  • Content Type: Policy Brief
  • Institution: Centre for International Governance Innovation
  • Abstract: China has gained substantial economic power in recent years, becoming the second-largest trading nation after the United States and the largest goods-trading nation since 2012 (Eichengreen 2014). It is also currently the largest source of savings and the largest potential source of capital for international investment (ibid.). Measured by GDP, China is now the second-largest economy in the world (see Figure 1), and the World Bank surmises it is likely to surpass the United States in 2014 (World Bank 2014). Because of China's growing economic importance, a shift in power is reasonably assumed. As its economic power grows, internationalization of the RMB has become a key policy goal for China, especially after the 2008 financial crisis (Zhang 2009; Park 2010; China Securities Regulatory Commission [CSRC] 2014). This goal demonstrates China's desire for better integration and representation in the international economic community and signals its willingness to perform internal financial reforms and take more responsibility in global economic affairs.
  • Topic: Economics, International Trade and Finance, Monetary Policy
  • Political Geography: United States, China, Asia