Search

Begin New Search Topic Development Political Geography Europe Content Type Working Paper

1. The Role of the Consumer and Systemic Policy Mixes for Circular Business Models in the EU

Author:
Hanna Fuhrmann-Riebel
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Recent decades have shown an unprecedented growth in demand for resources, with a trend that is projected to accelerate in the future. Policymakers around the world have started to recognise that transitioning to a more resource-efficient and circular economy (CE) is key to addressing this challenge. Two important enablers for the transition to a CE are circular business models (CBMs) and consumers. The two are interlinked, as demand shifts among consumers can foster the development and supply of new business models, which in turn require the uptake by consumers to be successful. To promote the development and increase the uptake of new CBMs, policymakers need to provide the respective regulatory frameworks and incentives. Doing so requires systemic policy mixes that go beyond encouraging technological innovations and include targeting the demand side as well. This paper zooms in on the role of the consumer for CBMs, discusses potential consumer barriers to CBM demand, and outlines how policy-making can address these barriers by applying systemic mixes of instruments to tackle the macro-, meso-, and micro-level factors that influence consumer demand simultaneously. While the macro-level describes the economic context of consumers’ decision-making, that is, the availability and supply, infrastructure and price of CBMs in the market, the meso-level characterises the social environment, including social norms and social status, whereas the micro-level focuses on individual characteristics such as consumption habits, security and quality concerns, and environmental knowledge or concern. This paper illustrates how the different consumer barriers are closely interlinked, and that, ideally, policymakers should target all three levels jointly to encourage CBM demand most effectively. In doing so, policymakers should consider the principles of the waste hierarchy in order to maximise the environmental benefits of CE policy mixes. The paper mostly takes a European perspective on the topic, especially when discussing relevant policy frameworks, and reflects on potential differences to other regions, particularly in the Global South, when appropriate
Topic:
Development, European Union, Business, and Economic Growth
Political Geography:
Europe

2. The Future of EU Blended Finance and Guarantees: An Assessment of Cooperation Strategies with Least Developed Countries in Africa

Author:
Erik Lundsgaarde
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The European Fund for Sustainable Development Plus (EFSD+) is a core element of EU development cooperation and reflects the EU’s strong commitment to deploying blended finance and guarantees as development financing tools. This discussion paper examines the EU’s intentions concerning how the EFSD+ will be integrated into geographic programmes, focussing on the least developed countries (LDCs) in Africa. Based on a review of the Multiannual Indicative Programmes (MIPs) for 30 African LDCs as well as the regional MIP for Sub-Saharan Africa covering the period 2021-2027, the paper provides an overview of funding reserved for EFSD+ implementation in geographic programmes, identifies the expected EFSD+ sectoral priorities and summarises references to development finance institutions (DFIs) as EFSD+ implementation partners. This descriptive review highlights issues for the future monitoring and assessment of the EFSD+. The paper points to uncertainty about the magnitude of the management challenge that EU institutions face in EFSD+ implementation given the difficulties of predicting the scale of guarantee-backed operations in individual countries, the lack of information on the expected volume of blended finance operations, and the limited analysis of how EFSD+ tools relate to other EU funding approaches. The paper also notes that EU institutions should be more explicit about the criteria shaping EFSD+ resource commitments to clarify relevant prerequisites for the effective deployment of EFSD+ tools. Finally, the broad thematic scope for EFSD+ use implies that knowledge about how blended finance and guarantees function and how the financing approaches interact with other interventions needs to increase throughout the EU system.
Topic:
Development, European Union, Finance, Sustainability, and Cooperation
Political Geography:
Africa and Europe

3. Forced migration, aid effectiveness, and the humanitarian–development nexus: The case of Germany’s P4P programme

Author:
Stefan Leiderer and Helge Roxin
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Bridging the gap between humanitarian assistance and development cooperation has been a contentious issue in academia and development practice for decades. Drawing on an evaluation of Germany’s ‘Partnership for Prospects’ initiative, this paper argues that, whilst the supplement of ‘peacebuilding’ to the nexus (humanitarian–development–peacebuilding [HDP] nexus) brought an important context factor into the discussion in an environment of conflict, it is only of marginal help in a context of forced migration to neighbouring countries of a given conflict. For the context of host countries of refugees in a protracted crisis, it is more relevant that host countries show ownership and reliability in their policies to create long-term perspectives for refugees. These policies in turn need to be embedded in reliable rules (polity) and negotiation processes (politics) in host countries. Consequently, the paper suggests that a ‘HD–Triple-P’ nexus would take the necessary political dimension into account more adequately. However, it might also mark the boundary as to what development politics can achieve.
Topic:
Foreign Policy, Development, Humanitarian Aid, International Cooperation, Refugees, Conflict, and Forced Migration
Political Geography:
Europe and Germany

4. European aid to the MENA region after the Arab uprisings: A window of opportunity missed

Author:
Thilo Bodenstein and Mark Furness
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
European official development assistance to Middle Eastern and North African (MENA) countries increased sharply after 2011, ostensibly in support of the social, economic, and above all political changes demanded by the Arab uprisings. The subsequent turn to development policies driven by security and anti-migration agendas, especially following the Syria refugee crisis in the autumn of 2015, raises the question whether initial expressions of support for democratic transformation expressed by European donors were ever backed by concrete measures. This paper discusses this question with an exploratory review of the policy and practice dimensions of four European MENA aid programmes between 2011 and 2016. The policy dimension is explored via an analysis of available documents from the EU, France, Germany, and the UK. The practice dimension is discussed with reference to OECD-DAC aid data on bilateral aid to MENA countries, focusing on aid in the social infrastructure and services sector, and in particular on the government and civil society sub-category. Our analysis reveals that, while all donors promised to support democracy in MENA countries, none had a clear strategy for doing so via their development cooperation. At the practice level, while programmes and projects were aimed at supporting change in specific contexts, increases in aid were mostly unrelated to political change. This indicates a preference for avoiding risks, which served to underpin the region’s political and socio-economic status quo. Accordingly, European donors missed an opportunity to test whether their aid could make a difference in supporting democratic transformation in the MENA. The social, economic, and political tensions behind the Arab uprisings remain unresolved more than a decade on, meaning that there is likely a need to learn lessons from the period following 2011.
Topic:
Development, Democracy, Arab Spring, and Development Assistance
Political Geography:
Europe, Middle East, and North Africa

5. EU Development Cooperation Policy Shifts from Charity to Self-interest

Author:
Patryk Kugiel
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
In recent years, the EU’s development cooperation policy has evolved, moving away from an approach based on poverty eradication and the needs of partner countries to focusing more on its own interests. This change is supported by the majority of EU members. This gives the EU the opportunity to exert strategic influence in the world but risks the loss of its unique identity as an altruistic donor and attractive partner in development cooperation. The change in the Union’s approach is consistent with the position of Poland, which can use it to reform and strengthen its development aid system.
Topic:
Development, Regional Cooperation, European Union, and Development Aid
Political Geography:
Europe and Poland

6. Who Learns More from Afar? Spatial Empirical Evidence on Manufacturing and Services

Author:
Nina Vujanović
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper investigates spatial dependence of FDI knowledge spillovers in manufacturing and services using spatial panel techniques applied to the 2006-2014 Bureau Van Dijk’s Amadeus firm-level dataset for Croatia and Slovenia. The paper finds diverse results across the two sectors. The distance between regions does not hinder the absorption of foreign knowledge in manufacturing despite the strong market-stealing effects operating within regions as well as spatially. On the other hand, FDI knowledge spillovers decrease service productivity within regions, because of market-stealing effects operating strongly across a smaller geographical scale. However, its impact is lost as knowledge spillovers from more distant neighbours are accounted for, because the poaching of local labour is impeded by distance due to rising costs of labour mobility. The research indicates that for knowledge absorption, geographic distance plays differing roles in manufacturing and services, due to the different nature of the production process.
Topic:
Development, International Trade and Finance, Foreign Direct Investment, Manufacturing, Econometrics, and Competition
Political Geography:
Europe, Croatia, and Slovenia

7. Hydrodiplomacy and the Food, Water and Energy Nexus: A holistic approach for transboundary cooperation and peace

Author:
Fadi Comair
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The rapid social and economic development in the world is leading to increased levels of water stress that point to potential water crises. As the most vital and strategic of natural resources, water can serve as an instrument of domination or of cooperation. Given the presence of key geopolitical concerns in the Near East, regional hydro-diplomatic cooperation is necessary to ensure fair sharing of the resource and to avoid additional tensions and conflict. Nine of the seventeen EMME countries are below the absolute water scarcity threshold of 500 m3/year per capita, including all six countries in the Gulf region, Jordan and Palestine. Those countries that share major transboundary basins in the EMME region such as the Nile, Jordan and Tigris-Euphrates basins are subject to multiple challenges which include unilateral water resources management, water scarcity, and environmental degradation leading to food insecurity. Hydrodiplomacy is a tool for applying integrated water resource management at a national and transboundary level in accordance with a cooperative model seeking peace among riparian countries. Multiple UN agencies contribute to bringing riparian countries together with a view to fostering dialogue and the sharing of information on water management and transboundary cooperation.
Topic:
Development, Diplomacy, International Cooperation, Water, Food, Geopolitics, and Energy
Political Geography:
Europe and Middle East

8. Learning from KfW’s Ex-Post Evaluations? How Conflicting Objectives Can Limit their Usefulness

Author:
Nicola M. Dörrbecker
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The effectiveness of development cooperation (DC) is a topic of extensive debate in this policy field. Yet despite numerous review and evaluation formats designed to promote learning processes and hence enhance effectiveness, it is often impossible to document these improvements. Against this backdrop, the present paper aims to analyse the usefulness of ex-post evaluations (EPEs) by KfW Development Bank – both within KfW Development Bank and at the German Federal Ministry for Economic Cooperation and Development (BMZ), from which it receives its commissions. Research indicates that EPEs are conducted with great care. Moreover, EPEs can contribute to the legitimacy of (financial) DC, as project results are considered and presented in a structured manner. Nevertheless, the people interviewed for this study regard EPEs as (highly) subjective assessments and believe that these evaluations may under certain circumstances not be comparable with one another. Yet EPEs need to be comparable, because their overall ratings are used to calculate the success rate, which is currently around 81%. This in turn affects KfW’s reporting on its performance to BMZ and to the public. The data from the interviews shows that trade-offs during the production and use of EPEs appear to limit the usefulness of this format. EPEs are designed to deliver accountability to the public and to BMZ and to promote learning within KfW. These are conflicting objectives, however, as they would each require a different approach. According to those interviewed at KfW and BMZ, EPEs are seldom read or used. Interviewees explain that EPEs are rarely relevant to people working in operational areas, as the evaluations are not published until several years after the project concerned has been completed and only occasionally contain information that is relevant to current projects. The evaluations cannot be conducted sooner, however, as otherwise they would not be able to assess the sustainability and development impact of a project. Moreover, interviews and evidence from other studies indicate that EPEs are of limited relevance to political steering at BMZ, even in aggregated form. Nonetheless, the author believes that it would not be an option to no longer conduct EPEs, as they are the only way to review the development impact and sustainability of a representative number of projects in an affordable way, thus forming the basis for delivering accountability. Reconciling the conflicting goals of learning and accountability is challenging. For the learning component, it would appear to be a good idea to make greater use of cross-sectional analyses and to establish a central support structure for all implementing organisations and BMZ with a view to compiling all the key information from the evaluations and forwarding it to both BMZ and KfW and to the partner countries in a form tailored to meet their needs. For the accountability component, transparency also needs to be enhanced by making completed evaluation reports available to the public promptly and in full. In addition to an evaluation of international research literature, this paper particularly draws on empirical interview data. A total of 13 specifically selected experts from the German DC system were interviewed. This interview data thus forms an illustrative but not representative sample.
Topic:
Development, Public Policy, Transparency, and Cooperation
Political Geography:
Europe and Germany

9. Cooperation against the odds: Getting small firms to work together in unfavourable circumstances

Author:
Kira Gartzou-Katsouyanni
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
How can we get small firms to work together in order to achieve mutually beneficial outcomes, despite adverse circumstances? This policy paper provides an answer to this question that could be useful both to policymakers and to local stakeholders seeking to undertake innovative, cooperative economic activities in their area. Based on evidence from eight case studies within the Greek agri-food and tourism sectors, I argue that a small group of local actors, whom I call ‘institutional entrepreneurs’, usually play a key role in catalysing the emergence of cooperation at the local level. Their strategies and experiences carry valuable insights. I also outline the characteristics that macro-level institutional frameworks need to have if they are to facilitate local cooperation. These characteristics can inform the design of institutions at both the domestic and the EU level. The paper’s findings could be relevant to people interested in local development, but also to those concerned with boosting the productivity and export orientation of the Greek economy as a whole. After all, cooperation can improve the performance of small firms, and it is thus an important ingredient for inclusive growth in countries with a lot of small firms, such as Greece.
Topic:
Development, Economy, Business, and Production
Political Geography:
Europe and Greece

10. The Second Phase of the EU Southern Gas Corridor: Which role for Azerbaijan?

Author:
Marika Karagianni
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The operation of the Southern Gas Corridor marks the first attempt of the EU to diversify its pipeline gas supplies and routes beyond Russia. The 2nd Phase of the Corridor, which involves the operation of several gas interconnectors in South Eastern Europe, is being promoted, while the EU is looking for additional supply sources, namely LNG. The Russian invasion of Ukraine, coupled with the intense energy crisis in Europe, has reinforced these trends. Field development in Azerbaijan and future prospects for LNG exports, primarily from the US, are discussed in this article as realistic options for alternative supply sources for Europe.
Topic:
Development, European Union, Gas, Exports, and Pipeline
Political Geography:
Europe, Central Asia, and Azerbaijan