Content Type: Working Paper / Political Geography: Global Focus / Publication Year: within 10 Years and within 5 Years

501. Consumer Sovereignty and the Role of Government Intervention

Author:: Harold Furchtgott-Roth and Kirk R. Arner
Publication Date:: 06-2020
Content Type:: Working Paper
Institution:: Hudson Institute
Abstract:: American businesses and consumers have an unequal relationship. Consumers generally are and should be sovereign because a consumer—not a seller, nor a third party, nor even the government—usually decides what to purchase. Consumers must like a business to buy its product or service. If a business has poor service, sales will suffer. And if a business is tainted by scandal, customers will flee. As courtiers of purchasing power, businesses go on bended knee to pay homage to the consumer. Typically, a business need not like a consumer to sell products or services. In most lines of business, a seller must sell to anyone willing to pay. And although there are types of businesses where a seller can legally refuse a sale, most rational sellers seek as many customers as possible.
Topic:: Economics, Government, Sovereignty, and Regulation
Political Geography:: Global Focus

502. Coronavirus and Power: The Impact on International Politics

Author:: Sven Biscop
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: EGMONT - The Royal Institute for International Relations
Abstract:: This will change everything. It is an understandable feeling. When people pass through an ordeal, they want to believe that when all is over there will be some compensation. Things may indeed change, but perhaps not as radically as may seem likely today in the midst of the crisis – and not all change will be for the better. What change could the corona crisis bring to international politics?
Topic:: International Cooperation, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

503. Building the Banking Sector’s Capacity for Green Infrastructure Investments for a Low-Carbon Economy

Author:: Takashi Hongo and Venkatachalam Anbumozhi
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: The construction of green infrastructure, using advanced technology and retiring inefficient technology, is essential for the low-carbon transition. Various green infrastructure programs are being implemented, and banks play an important role in facilitating these programs. Many lessons have been learned in improving finance for green infrastructure: (i) measurement, reporting, and verification is a useful tool for identifying green infrastructure investment; but just reduction is not enough for Green Infrastructure and three requirements – carbon dioxide emission reductions, improving energy access, and contributions to sustainable economic growth – connected with the Sustainable Development Goals are necessary; (ii) banks can contribute to realising a positive cycle of cost reduction and diffusion of advanced technology for reducing costs by scaling up markets; and (iii) carbon pricing is essential for removing carbon externalities and making green infrastructure commercially viable. Banks are recommended to have long-term strategies, improve their capacity for scenario analysis, have more dialogue with industry, and develop innovative finance such as carbon markets. Governments are recommended to adopt carbon pricing to encourage finance for green infrastructure.
Topic:: Climate Change, Energy Policy, Environment, Infrastructure, Green Technology, Renewable Energy, and Banking
Political Geography:: Global Focus

504. Addressing Antimicrobial Resistance

Author:: Aspen Health Strategy Group
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: Aspen Institute
Abstract:: In June 2019, the Aspen Health Strategy Group met for three days to explore the topic of antimicrobial resistance. We are pleased to present the final report from our work, based upon the group’s rich discussion. In the tradition of the thought-provoking conversations and dialogue on how to address critical societal issues — the hallmark of the Aspen Institute — the report includes five big ideas to address antimicrobial resistance.
Topic:: Health, Public Health, Resistance, and Medicine
Political Geography:: Global Focus

505. Artificial Intimacy

Author:: Aspen Digital
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: Aspen Institute
Abstract:: For all of the gains that artificial intelligent (AI) systems allow, society is only now beginning to orient itself to the tremendous ethical and political issues emerging as a result of AI’s prevalence in our society. For example, recent critiques of facial recognition software bring to light issues of algorithmic bias, data irregularities, human rights violations, and government surveillance. In response, various principles and values-based governance models are furiously being developed to direct the future of AI design. The report of the 2020 Aspen Institute Roundtable on Artificial Intelligence explored the intersection of human intimacy and artificial intelligence, investigating how different human-machine relationships may affect the development of human behavior and emotions.
Topic:: Science and Technology, Emotions, Artificial Intelligence, Behavior, Robotics, and Emerging Technology
Political Geography:: Global Focus

506. Connecting Women and Peace and Security (WPS) and Youth and Peace and Security (YPS) to Beijing+25 and the Generation Equality Forum

Author:: Mallika Iyer and Mavic Cabrera-Balleza
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Global Network of Women Peacebuilders (GNWP)
Abstract:: Women and youth peacebuilders formed a coalition to discuss urgent, intersecting issues related to the full and effective implementation of the Women and Peace and Security (WPS) and Youth and Peace and Security (YPS) agendas.
Topic:: Gender Issues, Violent Extremism, Women, and Equality
Political Geography:: Global Focus

507. Research Report: Gender-Sensitive Provisions In Peace Agreements And Women’s Political And Economic Inclusion Post-Conflict

Author:: Mavic Cabrera-Balleza
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Global Network of Women Peacebuilders (GNWP)
Abstract:: During the first practicum in the Fall of 2019, five students from the Master’s in Global Affairs program at CGA worked in teams to address research questions that emerged from GNWP’s work and research on current and past peace processes, and women’s roles in peacebuilding and sustaining peace. Using quantitative and qualitative analysis, the students examined the effect of women’s participation in peace negotiations and gender-sensitive provisions in peace agreements on women’s political representation and economic empowerment post-conflict.
Topic:: Gender Issues, Women, Peace, and Inclusion
Political Geography:: Global Focus

508. COVID-19 Incidence and the Timing of Quarantine Measures and Travel Restrictions: A Cross-country Analysis

Author:: Marjorie Pajaron
Publication Date:: 06-2020
Content Type:: Working Paper
Institution:: Walter H. Shorenstein Asia-Pacific Research Center
Abstract:: COVID-19 presents humanity with not just a health crisis but also a governance crisis as leaders around the globe confront the challenges of stemming the spread of the virus. Various governments have responded in various ways to slow the transmission of the virus. Ideally, the leaders of a country should approach the crisis with a two-pronged attack. The first is to flatten the epidemic curve (epi curve), which is simply a graphical representation of the number of cases and date of onset of the illness, and the second is to raise or strengthen the capacity of the health system. Flattening the epi curve includes mass testing for COVID-19, which has been done in South Korea, for example. Decreasing the incidence also includes quarantine, isolation, and other social distancing strategies, which have been done by various countries in varying degrees. For example, in China, total lockdown (cordon sanitaire) was implemented in Wuhan, of the Hubei province, while in the Philippines, the entire Luzon, which consists of eight administrative regions, including the national capital region (NCR), was in total lockdown (enhanced community quarantine, or ECQ) since March 16 (World Health Organization [WHO] 2020a). Other parts of the Philippines were under different degrees of quarantine at different periods since the appearance of local transmission. Raising the health care system capacity of a country may include, but is not limited to, training of health care workers, increasing facilities or hospitals that receive COVID patients, and providing adequate personal protective equipment (PPE). This paper offers a brief epidemiological review of COVID-19 since its first case in China and how the hotspots for this disease evolved and changed over a relatively short period. This paper also aims to provide a short descriptive review of the existing data on COVID-19 in the Association of Southeast Asian Nations (ASEAN) region and the government response of its ten member countries, so that we can somehow draw lessons and learn from these myriad experiences as we continue to combat the spread of this dangerous pathogen. The findings in this paper are preliminary, and more rigorous analysis is expected to be performed as the data becomes more extensive and available.
Topic:: Public Health, Pandemic, COVID-19, Travel, and Quarantine
Political Geography:: Global Focus

509. Detecting the Ideological Position of Political Islam Towards Liberal Democracy in Muslim Countries

Author:: Nikola Gjorshoski and Goran Ilik
Publication Date:: 01-2020
Content Type:: Working Paper
Journal:: Journal of Liberty and International Affairs
Institution:: Institute for Research and European Studies (IRES)
Abstract:: The question of the correlation between Islam, political Islam, and liberal democracy has so far been the most exposed topic in exploring the democratic capacity of political Islam and Islamic societies in general. What is particularly intriguing about the relationship between political Islam and liberal democracy is the fact of its westernized triviality that has received a pejorative tone in Islamic political circles. Simplified, the triviality of liberal democracy for the Islamic political campus implies imposing a model of democracy that cannot be fully compatible with the original Muslim notion of society and government. Hence, the following paper analyzes exactly the relations of political Islam to specific inherent categories of liberal democracy such as the rule of law, representative government, the separation of powers, and secularism as diferenta specifica of liberal western democratic discourse. Through the methods of induction and deduction, the author will illustrate how appropriate tangent or divergence is illustrated and how this is reflected in the general ideological positioning of political Islam towards liberal democracy in Muslim countries through an axiological and praxeological perspective.
Topic:: Democracy, Rule of Law, Islamism, Liberalism, Secularism, and Sharia
Political Geography:: Middle East, North Africa, and Global Focus

510. Cyber Mapping the Financial System

Author:: Jan-Philipp Brauchle, Matthias Göbel, Jens Seiler, and Christoph Von Busekist
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Cyber risks present a growing threat for individual agents in the financial system: banks, insurers, central counterparties, and the like. However, cyber events may also have the potential to destabilize the financial system as a whole. While dedicated microprudential regulatory and supervisory regimes are in place or are being developed to manage cyber risks especially at credit institutions, what is lacking is a systemic view of cyber risks that particularly sheds light on concentrations and contagion channels that are material to the financial system.
Topic:: Science and Technology, Finance, Networks, Risk, and Financial Institutions
Political Geography:: Global Focus

511. Regional Financial Arrangements and the International Monetary Fund: Sustaining Coherence in Global Financial Governance

Author:: C. Randall Henning
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: Cooperation and competition among regional financial arrangements (RFAs) and the International Monetary Fund (IMF) increasingly determine the effectiveness of the global financial safety net (GFSN), which many observers fear is becoming fragmented. Overlap among these crisis-fighting institutions has important benefits but also pitfalls, including with respect to competition, moral hazard, independence, institutional conflict, creditor seniority and non-transparency. The study reviews the RFAs in Latin America, East Asia and Europe to assess their relationships with the IMF and address these problems. Among other things, it concludes: institutional competition, while harmful in program conditionality, can be beneficial in economic analysis and surveillance; moral hazard depends critically on institutional governance and varies substantially from one regional arrangement to the next; secretariats should be independent in economic analysis, but lending programs should be decided by bodies with political responsibility; and conflicts among institutions are often resolved by key member states through informal mechanisms that should be protected and developed. Findings of other recent studies on the GFSN are critiqued. Architects of financial governance should maintain the IMF at the centre of the safety net but also develop regional arrangements as insurance against the possibility that any one institution could be immobilized in a crisis, thereby safeguarding both coherence and resilience of the institutional complex.
Topic:: Governance, Surveillance, Strategic Competition, and IMF
Political Geography:: Europe, Middle East, Asia, South America, Australia, North America, and Global Focus

512. Standards for Digital Cooperation

Author:: Michel Girard
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: Global data standards are urgently needed to foster digital cooperation and manage global tech platforms. No global organization is currently mandated to coordinate the development, maintenance and use of technical standards covering data value chains and policy-oriented standards covering data governance. Precedents exist where standards development work is coordinated by international organizations in sectors of the economy operating across borders, from aviation and maritime shipping to meteorology, food production, public health and the management of the internet. This paper proposes the creation of a Data Standards Task Force (DSTF), which would be entrusted with a dual mandate: enabling the development of technical standards to create data value chains and being accountable for the development of data governance standards needed by regulators to properly frame the leading big tech platforms (Facebook, Amazon, Apple, Microsoft and Google). The ultimate objective of the DSTF would be to create the required architecture for a “single data zone” where data can circulate freely between participating jurisdictions.
Topic:: Science and Technology, Social Media, Data, Digital Cooperation, and Big Tech
Political Geography:: Global Focus

513. The NPT turns 50: Will it get to 60?

Author:: Henry Sokolski
Publication Date:: 02-2020
Content Type:: Working Paper
Institution:: Nonproliferation Policy Education Center
Abstract:: In the next decade, it is all too likely that the past success of the Non-Proliferation Treaty (NPT) in preventing the further spread of nuclear weapons among the world’s nations will be reversed. Three trends make more proliferation likely. First is the decay of nuclear taboos. Second, and arguably worse, is renewed vertical proliferation—the increase in size and sophistication of nuclear arsenals by states that already have them. Third, the technical information to fuel nuclear breakouts and ramp-ups is more available now than in the past. These trends toward increased proliferation are not yet facts. The author describes three steps the international community could take to save the NPT: making further withdrawals from the NPT unattractive; clamping down on the uneconomical stockpiling and civilian use of nuclear weapons materials (plutonium and highly enriched uranium); and giving real meaning to efforts to limit the threats that existing nuclear weapons pose.
Topic:: Arms Control and Proliferation, Nuclear Weapons, Treaties and Agreements, Nuclear Power, Disarmament, and Nonproliferation
Political Geography:: Russia, North Korea, Global Focus, and United States of America

514. Low inflation bends the Phillips curve around the world

Author:: Kristin Forbes, Joseph E. Gagnon, and Christopher G. Collins
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: This paper models inflation by combining the multicountry framework of one of its authors (Forbes) with the nonlinear specification proposed by the other two (Gagnon and Collins). The results find strong support for a Phillips curve that becomes nonlinear when inflation is low, in which case excess economic slack has little effect on inflation. This finding is consistent with evidence of downward nominal wage and price rigidity. The estimates also show a significant and economically meaningful Phillips curve relationship between slack and inflation when slack is negative (i.e., when output is above long-run potential). In this nonlinear model, international factors play a large role in explaining headline inflation, a role that has increased over time, supporting the results of Forbes’ linear model.
Topic:: Economics, Inflation, and Data
Political Geography:: Global Focus

515. Gendered laws and women in the workforce

Author:: Marie Hyland, Simeon Djankov, and Pinelopi Koujianou Goldberg
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: This paper provides the first global look at how gender discrimination by the law affects women’s economic opportunity and charts the evolution of legal inequalities over five decades. Using the World Bank’s newly constructed Women, Business and the Law database, it documents large and persistent gender inequalities, especially with regard to pay and treatment of parenthood. The paper finds positive correlations between more equal laws pertaining to women in the workforce and more equal labor market outcomes, such as higher female labor force participation and a smaller wage gap between men and women.
Topic:: Gender Issues, Labor Issues, Women, Inequality, and Economic Inequality
Political Geography:: Global Focus

516. Central bank policy sets the lower bound on bond yields

Author:: Joseph E. Gagnon and Olivier Jeanne
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: This paper shows that the scope for bond yields to fall below zero is strictly limited by market expectations about how far below zero central banks are willing to set their short-term policy rates. If a central bank communicates a credible commitment to keeping its policy rate above a given level under all circumstances, then bond yields must be higher than that level. This result holds true even in a model in which central banks are able to depress the term premium in bond yields below zero via large-scale purchases of long-term bonds, also known as quantitative easing (QE). QE becomes less effective as bond yields approach their lower bound.
Topic:: Economics, Finance, Central Bank, and Global Bond Market
Political Geography:: Global Focus

517. Global value chains and the removal of trade protection

Author:: Chad P. Bown, Aksel Erbahar, and Maurizio Zanardi
Publication Date:: 02-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: This paper examines how trade protection is affected by changes in the value-added content of production arising through global value chains (GVCs). Exploiting a new set of World Trade Organization (WTO) rules adopted in 1995 that impose an exogenously timed requirement for countries to reevaluate their previously imposed trade protection, the authors adopt an instrumental variables strategy and identify the causal effect of GVC integration on the likelihood that a trade barrier is removed. Using a newly constructed dataset of protection removal decisions involving 10 countries, 41 trading partners, and 18 industries over 1995–2013, they find that bilateral industry-specific domestic value-added growth in foreign production significantly raises the probability of removing a duty. The results are not limited to imports from China but are only found for the protection decisions of high-income countries. Back-of-the-envelope calculations indicate that rapid GVC growth in the 2000s freed almost a third of the trade flows subject to the most common temporary restrictions (i.e., antidumping) applied by high-income countries in 2006.
Topic:: Economics, International Trade and Finance, Global Markets, Finance, and Trade
Political Geography:: Global Focus

518. A program for strengthening the Federal Reserve's ability to fight the next recession

Author:: David Reifschneider and David Wilcox
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: If the Federal Reserve does not decisively change the way it conducts monetary policy, it will probably not be capable of fighting recessions in the future as effectively as it fought them in the past. This reality helped motivate the Fed to undertake the policy framework review in which it is currently engaged. Researchers have suggested many steps the Fed could take to improve its recession-fighting ability; however, no consensus has emerged as to which of these steps would be both practical and maximally effective. This paper aims to fill that gap. It recommends that the Fed commit as soon as possible to a new approach for fighting recessions, involving two key elements. First, the Fed should commit that whenever it runs out of room to cut the federal funds rate further, it will leave the rate at its minimum level until the labor market recovers and inflation returns to 2 percent. Second, the Fed should commit that under the same circumstances, it will begin to purchase longer-term assets in volume and will continue such purchases until the labor market recovers. If the forces driving the next recession are not unusually severe, this framework might allow the Fed to be as effective at fighting that recession as it was in the past. If the next recession is more severe, however, the Fed will probably run out of ammunition even if it takes the two steps recommended here. Therefore, both monetary and fiscal policymakers should consider yet other steps they could take to enhance their ability to fight future recessions.
Topic:: Economics, Monetary Policy, and Federal Reserve
Political Geography:: North America, Global Focus, and United States of America

519. New Productivity Drivers: Revisiting the Role of Digital Capital, FDI and Integration at Aggregate and Sectoral Levels

Author:: Amat Adarov and Robert Stehrer
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: The Vienna Institute for International Economic Studies (WIIW)
Abstract:: The paper studies the drivers of productivity at country and sectoral levels over the period 2000-2017 with the focus on the impact of capital accumulation and structure. The analysis confirms an especially important role of ICT and intangible digital capital for productivity growth, particularly in the manufacturing sectors. While backward global value chain participation and EU integration are also found to be instrumental for accelerating productivity growth, the impact of inward foreign direct investment is not robustly detected when the data is purged from the effects of special purpose entities and outlier countries.
Topic:: Economics, Foreign Direct Investment, European Union, Digital Economy, Capital Flows, and Trade
Political Geography:: Europe and Global Focus

520. Robotisation, Employment and Industrial Growth Intertwined Across Global Value Chains

Author:: Mahdi Ghodsi, Oliver Reiter, Robert Stehrer, and Roman Stöllinger
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: The Vienna Institute for International Economic Studies (WIIW)
Abstract:: The global economy is currently experiencing a new wave of technological change involving new technologies, especially in the realm of artificial intelligence and robotics, but not limited to it. One key concern in this context is the consequences of these new technologies on the labour market. This paper provides a comprehensive analysis of the direct and indirect effects of the rise of industrial robots and productivity via international value chains on various industrial indicators, including employment and real value added. The paper thereby adds to the existing empirical work on the relationship between technological change, employment and industrial growth by adding data on industrial robots while controlling for other technological advancements measured by total factor productivity (TFP). The results indicate that the overall impact of the installation of new robots did not statistically affect the growth of industrial employment during the period 2000–2014 significantly, while the overall impact on the real value added growth of industries in the world was positive and significant. The methodology also allows for a differentiation between the impact of robots across various industries and countries based on two different perspectives of source and destination industries across global value chains.
Topic:: Economics, Science and Technology, Digital Economy, Economic Growth, Industry, and Robotics
Political Geography:: Global Focus

521. Does Employment Protection Affect Unemployment? A Meta-analysis

Author:: Philipp Heimberger
Publication Date:: 02-2020
Content Type:: Working Paper
Institution:: The Vienna Institute for International Economic Studies (WIIW)
Abstract:: Despite extensive research efforts, the magnitude of the effect of employment protection legislation (EPL) on unemployment remains unclear. Existing econometric estimates exhibit substantial variation, and it is therefore difficult to draw valid conclusions. This paper applies meta-analysis and meta-regression methods to a unique data set consisting of 881 observations on the effect of EPL on unemployment from 75 studies. Once we control for publication selection bias, we cannot reject the hypothesis that the average effect of EPL on unemployment is zero. The meta-regression analysis, which investigates sources of heterogeneity in the reported effect sizes, reveals the following main results. First, the choice of the EPL variable matters: estimates that build on survey-based EPL variables report a significantly stronger unemployment-increasing impact of EPL than estimates developed using EPL indices based on the OECD’s methodology, where the latter relies on coding information from legal provisions. Second, we find that employment protection has a small unemployment-increasing effect on female unemployment, compared with a zero impact on total unemployment. Third, using multi-year averages of the underlying data tends to dampen the unemployment effects of EPL. Fourth, product market regulation is found to moderate the effect of EPL on unemployment.
Topic:: Labor Issues, European Union, Employment, Unemployment, and Organisation for Economic Co-operation and Development
Political Geography:: Europe and Global Focus

522. Tracking and Assessing Governance and Management Reform in the Nuclear Security Enterprise

Author:: Jill Dahlburg and Robert Shea
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: The National Academy of Public Administration
Abstract:: The Act directs NNSA’s Administrator to enter into an agreement with the National Academy of Sciences, Engineering and Medicine and the National Academy of Public Administration to create an Implementation Assessment Panel to: Provide guidance to the Secretary and Administrator on the implementation plan content; Track implementation plan progress; and Assess implementation plan effectiveness. NAPA and NAS have formed a joint Implementation Assessment Panel. The Panel will oversee the work of the joint NAPA/NAS study team, providing strategic guidance on study approach and focus, and issuing key findings and recommendations. The 14 Panel members bring a wealth of experience from DOE Science Laboratories, Federally Funded Research & Development Centers, the Intelligence Community, Academia, and the Office of Management and Budget.
Topic:: Security, Diplomacy, National Security, and Military Affairs
Political Geography:: Global Focus

523. The Significant Political Declaration and the Forthcoming 10th NPT Review Conference

Author:: Miroslav Tuma
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: Institute of International Relations Prague
Abstract:: The political declaration with an annex entitled Advancing Nuclear Disarmament, Securing Our Future was adopted on 25 February 2020 in Berlin by the Foreign Ministers of the fifteen countries associated in the prestigious Stockholm Initiative for Nuclear Disarmament. They call on all NPT participating countries to discuss and adopt the proposed stepping stones. According to the authors of the declaration, the implementation could contribute to averting the dangerous development of the security situation and to the gradual realization of the generally supported vision of creating a world without nuclear weapons. Due to the global pandemic caused by COVID-19, the 10th NPT Review Conference was postponed indefinitely.
Topic:: Arms Control and Proliferation, Nuclear Weapons, and Nonproliferation
Political Geography:: Global Focus

524. The impact economy: balancing profit and impact

Author:: Dirk Schoenmaker
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Bruegel
Abstract:: Governments and companies can reinforce each other in their pursuit of sustainable development, which is based on three pillars: economic, social and environmental. An impact economy, in which governments and companies balance profit and impact, is best placed to achieve the United Nations sustainable development goals.
Topic:: Economics, Environment, United Nations, Governance, Sustainable Development Goals, Business, and Private Sector
Political Geography:: Global Focus

525. Forecasting exchange rates of major currencies with long maturity forward rates

Author:: Zsolt Darvas and Zoltan Schepp
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: Bruegel
Abstract:: This paper presents unprecedented exchange rate forecasting results based upon a new model which approximates the gap between the fundamental equilibrium exchange rate and the actual exchange rate with the long-maturity forward exchange rate.
Topic:: Economics, Governance, Global Political Economy, and Exchange Rate Policy
Political Geography:: Global Focus

526. Talking Points for the Top National Security Issues of 2020

Author:: Mieke Eoyang
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Third Way
Abstract:: In 2020, candidates and elected officials will face questions on national security and foreign policy issues. In this memo, we provide short talking points on these issues that acknowledge the concerns of Americans, critique current approaches and policies, and present a vision for the future: 1. Global Health Security, 2. China & COVID-19, 3. China Trade War, 4. Russia, 5. Terrorism, 6. Domestic Extremism, 7. Iran, 8. Election Security, 9. Saudi Arabia & Yemen, 10. Syria, 11. Alliances, 12. North Korea, 13. Cyberthreats, 14. Venezuela, 15. Afghanistan, 16. Forever War, 17. Border Security, 18. Defense Spending, 19. Impeachment, 20. Climate Change, 21. Corruption
Topic:: Security, Defense Policy, Military Strategy, and Elections
Political Geography:: United States, North America, and Global Focus

527. Leading with Intentionality: The 4P Framework for Strategic Leadership

Author:: Robert Wilkinson and Kimberlyn Leary
Publication Date:: 09-2020
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: The year 2020 has brought one crisis after another, perhaps exacerbating a common belief that a “heroic leader” can save the day. But does this mythical figure really exist? Leadership, once we study it, isn’t one thing exercised at the top by one person, as our colleague and leadership expert Ron Heifetz has observed; it is an activity exerted by people at all levels, and by noticing certain less obvious aspects of leadership, anyone can improve at it. Leadership is possible at any time there is a collective problem. Each of us may have a role to play in mobilizing others to address community problems, and each of us can improve our skills to be more effective.
Topic:: Leadership and Crisis Management
Political Geography:: Global Focus

528. Job Search and Hiring with Two-Sided Limited Information about Workseekers' Skills

Author:: Eliana Carranza, Robert Garlick, Kate Orkin, and Neil Rankin
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: This paper presents field experimental evidence that limited information about workseekers’ skills distorts both firm and workseeker behavior. Assessing workseekers’ skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers’ employment and earnings. It also aligns their beliefs and search strategies more closely with their skills. Giving assessment results only to workseekers has similar effects on beliefs and search, but smaller effects on employment and earnings. Giving assessment results only to firms increases callbacks. These patterns are consistent with two-sided information frictions, a new finding that can inform the design of information-provision mechanisms.
Topic:: Labor Issues, Employment, Business, and Job Creation
Political Geography:: Global Focus

529. Horrible Trade-offs in a Pandemic: Lockdowns, Transfers, Fiscal Space, and Compliance

Author:: Ricardo Hausmann and Ulrich Schetter
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: In this paper, we develop a heterogeneous agent general equilibrium framework to analyze optimal joint policies of a lockdown and transfer payments in times of a pandemic. In our model, the effectiveness of a lockdown in mitigating the pandemic depends on endogenous compliance. A more stringent lockdown deepens the recession which implies that poorer parts of society find it harder to subsist. This reduces their compliance with the lockdown, and may cause deprivation of the very poor, giving rise to an excruciating trade-off between saving lives from the pandemic and from deprivation. Lump-sum transfers help mitigate this trade-off. We identify and discuss key trade-offs involved and provide comparative statics for optimal policy. We show that, ceteris paribus, the optimal lockdown is stricter for more severe pandemics and in richer countries. We then consider a government borrowing constraint and show that limited fiscal space lowers the optimal lockdown and welfare, and increases the aggregate death burden during the pandemic. We finally discuss distributional consequences and the political economy of fighting a pandemic.
Topic:: Development, Government, Political Economy, Inequality, Economic Growth, Fiscal Policy, Pandemic, and COVID-19
Political Geography:: Global Focus

530. Gender Differences in Professional Career Dynamics: New Evidence from a Global Law Firm

Author:: Ina Ganguli, Ricardo Hausmann, and Martina Viarengo
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: We examine gender gaps in career dynamics in the legal sector using rich panel data from one of the largest global law firms in the world. The law firm studied is representative of multinational law firms and operates in 23 countries. The sample includes countries at different stages of development. We document the cross-country variation in gender gaps and how these gaps have changed over time. We show that while there is gender parity at the entry level in most countries by the end of the period examined, there are persistent raw gender gaps at the top of the organization across all countries. We observe significant heterogeneity among countries in terms of gender gaps in promotions and wages, but the gaps that exist appear to be declining over the period studied. We also observe that women are more likely to report exiting the firm for family and work-life balance reasons, while men report leaving for career advancement. Finally, we show that various measures of national institutions and culture appear to play a role in the differential labor-market outcomes of men and women.
Topic:: Gender Issues, Labor Issues, Women, Employment, Inequality, Human Capital, and Legal Sector
Political Geography:: Global Focus

531. Work, Freedom, Dignity: For Young Tunisians, the Revolution Was Not Only About Accountability for Corruption

Author:: Ruben Carranza and Mohamed Azer Zouari
Publication Date:: 02-2020
Content Type:: Working Paper
Institution:: The International Center for Transitional Justice (ICTJ)
Abstract:: Building on its work in Tunisia since 2012, ICTJ met with representatives of youth-led civil society organizations and social movements and state institutions involved in pursuing accountability for Ben Ali-era corruption. This paper focuses on the strategies and insights that members of the youth-led organizations and movements shared in these discussions. It seeks to call attention to their larger revolutionary goals and to offer ways for policymakers, advocates, and donors to support these goals in their transitional justice work.
Topic:: Civil Society, Social Movement, Transitional Justice, Youth, and Revolution
Political Geography:: Global Focus

532. Dual Use in the DPRK

Author:: Margaret Croy
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: James Martin Center for Nonproliferation Studies
Abstract:: Several states have succeeded in extracting “yellowcake” uranium from phosphoric acid as part of the phosphate fertilizer production process. The Democratic People’s Republic of Korea (DPRK) has both the means and motivation to undertake such work, thus significantly altering existing open-source assessments of how much yellowcake uranium North Korea could produce annually, which in turn affects estimates of how many nuclear warheads DPRK can make. There is ample rationale for the DPRK to pursue this method of uranium extraction. The dual usage of existing infrastructure would both conceal the activity and make it more difficult for international audiences to positively identify and condemn. The DPRK certainly needs fertilizer, and the information on how to extract uranium from its production is readily available. Lastly, this method of yellowcake production embodies the policy of byungjin—parallel nuclear-weapon development and economic expansion—a hallmark of Kim Jong Un’s strategy. Given these factors, the rationale for the pursuit of this method is clear. The evidence is even more so. The first section of the paper explains the science behind uranium extraction from phosphoric acid produced as an intermediary in the production of fertilizer from phosphate rock. The second section highlights some of the historical cases of states using this method to obtain uranium. The third section elucidates the reasoning and rationale for using this method in the DPRK, and the fourth section examines the open-source evidence available indicating that this method of obtaining uranium—however uncommon—is in use in the DPRK today, and is likely to continue and expand in scale.
Topic:: Science and Technology, Mining, Manufacturing, and Uranium
Political Geography:: Global Focus

533. The COVID-19 Pandemic: A Preliminary Assessment of the Impact on Terrorism in Western States

Author:: James K. Wither
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: George C. Marshall European Center for Security Studies
Abstract:: The paper analyzes the terrorism threat against western states during the novel coronavirus disease (COVID-19) pandemic and, in particular, whether the crisis has created particular vulnerabilities that terrorists could exploit both to mount attacks and attract new recruits. The paper also explores the extent to which the pandemic might make western societies more vulnerable to terrorism in the longer term. Salafi-jihadist and far-right extremists have greeted the COVID-19 crisis with enthusiasm, viewing its impact on the West as both vindicating and advancing their ideologies and objectives. However, despite the calls for attacks on social media, the pandemic’s lockdowns, increased surveillance, travel restrictions, and the heavy police and military presence on the ground have created a challenging environment for terrorist operations. The security services have been drawn directly into the campaign against the corona virus. This has diverted resources and assets away from counterterrorism duties in the short term, which might create potential opportunities for terrorists. As a result of the pandemic, governments will need to review national security priorities in the longer term. This is likely to result in a much greater emphasis on domestic and international public health issues. Counterterrorism may not retain its post 9/11 position in the hierarchy of western national security priorities.
Topic:: Security, Terrorism, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

534. Pandemics: The Armed Forces as the Ultima Ratio?

Author:: John L. Clarke
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: George C. Marshall European Center for Security Studies
Abstract:: The novel coronavirus disease (COVID-19) crisis has caused leaders in all affected countries to turn to their armed forces for support in an ever-expanding range of roles. Armed forces are being tasked to provide capabilities that in many instances go beyond what they have provided in past crises. As the crisis progresses and tragedy intensifies, the armed forces may appear to be the last resort available—the ultima ratio—to decision-makers. It must be expected that these demands will continue to mount even if the current crisis abates, as it is sure to remain a top national concern for months to come. This paper examines the range of roles that armed forces have taken on within the context of this crisis and places those roles, mission, tasks, and function within a scheme of six mission sets that comprise the defense support to civil authority (DSCA) rubric. The paper goes on to set forth a half-dozen considerations for decision-makers to contemplate before asking the armed forces to undertake these roles. In the current pandemic crisis, many of the tasks inherent in the DSCA rubric have been prominent in the demands by political leaders for armed forces support, such as the provision of essential services (many logistical and medical in nature) as well as search capabilities, decontamination operations, and engineering support. For example, armed forces in Italy, Spain, France, and the United States, just to name a few, have built and staffed medical facilities; transported virus patients; delivered food supplies; searched buildings for victims; and decontaminated residences and public facilities, such as train stations and airports. In addition, armed forces organizations have provided mortuary services, including the transportation and cremation of virus victims’ remains, which, of course, are contaminated. Photos of Italian Army units have shown convoys of trucks loaded with coffins. Soldiers have also provided medical support to overwhelmed facilities. Soldiers have been photographed administering tests for the virus, moving patients within hospitals, and providing basic services, such as changing bed pans and providing meals, all in a contaminated environment. French military aircraft, equipped for medical evacuation, have transported virus patients to less-stressed medical facilities in France.
Topic:: Military Affairs, Leadership, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

535. Post-INF Arms Control in the Asia-Pacific: Political Viability and Implementation Challenges

Author:: Tanya Ogilvie-White
Publication Date:: 06-2020
Content Type:: Working Paper
Institution:: International Institute for Strategic Studies
Abstract:: Collaborative efforts to build a new arms-control architecture are urgently needed following the demise of the Intermediate-Range Nuclear Forces Treaty (INF Treaty) – especially in the Asia-Pacific, where arms-racing pressures are unbridled. High-level discussions within the Trump administration on deploying previously prohibited ground-based INF-range (500–5,500 kilometres) missiles in the Asia-Pacific could hamper progress; rather than convincing Beijing to engage in (as-yet-unspecified) trilateral arms-control negotiations, they could increase strategic risks, strain relations between the United States and its allies in the region (Australia, Japan and South Korea) and encourage closer Sino–Russian military cooperation. Efforts to create arms-control momentum are welcome, but to be politically viable, new initiatives need to be fair, equitable and underpinned by strategic empathy, reciprocity and mutual restraint. A more constructive approach would see the US and its Asia-Pacific allies using their combined diplomatic capital to push for a formal regional arms-control dialogue, which could initially focus on confidence building and strategic-risk reduction, and over the longer term help lay the foundations for a new arms-control regime.
Topic:: Arms Control and Proliferation, Diplomacy, Military Strategy, and INF Treaty
Political Geography:: Global Focus

536. COVID-19: Global Trade and Supply Chains after the Pandemic

Author:: David Ramirez
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: International Institute for Strategic Studies
Abstract:: The COVID-19 outbreak has shaken international trade and supply chains to their very foundations. This paper presents possible trade and supply scenarios, examining in particular the future of China’s pre-COVID-19 role as ‘the world’s factory’. Although disruptions such as the Japan earthquake and tsunami of 2011 and the recent trade war between the United States and China have strained global trade and supply chains in the past, particularly in Asia, COVID-19 has had historically devastating effects. While high levels of uncertainty currently make it hard to foresee exactly how global trade and supply chains will look in the post-COVID-19 era, it is inevitable that they will be reshaped.
Topic:: International Trade and Finance, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

537. The Consequences of COVID-19: Reduced Chances of Achieving the 2030 Agenda for Sustainable Development?

Author:: International Institute for Strategic Studies
Publication Date:: 09-2020
Content Type:: Working Paper
Institution:: International Institute for Strategic Studies
Abstract:: In the second in a series of papers analysing the ways COVID-19 is affecting stability across the world, this paper explores how the pandemic has affected the implementation of the UN’s 2030 Agenda for Sustainable Development and undermined progress towards global economic, social and political stability. The COVID-19 pandemic is a major setback on the path towards achieving the United Nations’ 2030 Agenda for Sustainable Development (2030 ASD), making the challenge even greater for international organisations, governments and all relevant stakeholders. Moreover, when the health crisis hit, progress towards development goals was already patchy. The impacts of the pandemic and the consequences of the lack of progress in certain areas are mutually reinforcing, and require a combination of immediate responses to the damage done by COVID-19 and broader, longer-term efforts aimed at increasing resilience to future crises of similar proportions.
Topic:: United Nations, Sustainable Development Goals, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

538. The COVID-19 pandemic: Scenarios to Understand the International Impact

Author:: International Institute for Strategic Studies
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: International Institute for Strategic Studies
Abstract:: The novel coronavirus that causes COVID-19 spread around the world in a matter of a few short months in 2020. Its long-term effects, as well as the ultimate duration and severity of the pandemic itself, are marked by deep uncertainty. While it is too early to forecast the consequences of COVID-19 with precision, it is possible to systematically explore plausible trajectories for the medium-term future. This research paper uses scenarios to address the following question: what could be the impact of the COVID-19 pandemic on the global political, economic and military balance of power over the course of the next five years? The paper focuses on six clusters of drivers of change to build scenarios. In the realm of politics, the two clusters are governance and geopolitics. The governance cluster straddles the divide of domestic and international politics, combining social cohesion in societies, populism as a political force, the role of the state, nationalism and state capacity. The geopolitics cluster focuses on aspects of international leadership and alliances. In the economic arena, clusters formed around the themes of economic reordering and recovery. In the former, regionalism, protectionism, supply-chain dynamics and Chinese technological leadership are considered. In the latter, the pace of the recovery is set in the context of employment, public debt, finance and energy issues. In the military realm, drivers relating to armed conflict and to military posture were combined to form clusters. The armed-conflict cluster considers projections for threat perceptions, major-power war, conflict among middle powers and intra-state violence. Military posture is captured by examining issues around force projection, the digitisation of armed forces, defence-industrial dynamics, strategic stability and the role of nuclear weapons. Scenarios in this paper are not designed to predict the future, but they are meant to help bound the range of possible futures for which decision-makers may need to prepare. In the scenario Silver Linings, geopolitics in 2025 are characterised by cooperation and the recession of domestic governance challenges. The economic recovery was swift and comprehensive, and although the pandemic modified aspects of globalisation its basic tenets remained intact. Armed conflict of the inter-state and intra-state kind has declined, and military postures are increasingly driven by advanced technologies and a smaller number of overseas operations. In the Downfall scenario, a weakened societal fabric has generated governance challenges at home and geopolitics are characterised by conflict. Economic recovery following the collapse triggered by the pandemic remains slow and incomplete, and economic reordering leads to the fragmentation of pre-existing international ties at the state and commercial levels. Great-power war has become a realistic probability and growing state fragility brought about by the pandemic leads to an increase in armed conflict. The scenario Lost in Transition is full of countervailing forces introducing challenges and a sense of instability. In the realm of politics, the geopolitical situation is marred by conflict, but domestic governance structures are not particularly challenged. Economically, recovery is slow and there are attempts to decouple − leading to bifurcated economic activity − with each strand led by China and the United States respectively. Militarily, new alliances emerge but a key concern is the near-perfect storm that the pandemic has created for security and stability in Africa. The scenario Home Alone outlines a future world in which the economic recovery is highly uneven. Attempts to generate momentum for renewed international cooperation fail as great-power rivalries intensify – however, the European Union emerges as a more confident geopolitical actor. Globalisation is disrupted by a drive to create regional and local supply chains and China forces a bifurcation of production for some sectors. Armed conflict linked to state fragility increases markedly, while the ability and willingness of international actors to provide humanitarian assistance and crisis-management resources fall dramatically. The pandemic itself is an event of world-shattering proportions. Yet many of its political and military implications are likely to be evolutionary in nature. In the period considered here, the potential for radical change (and a break with past practice and assumptions) is perhaps greatest in the economic realm. Furthermore, the scenarios can be helpful in recognising courses of actions that appear to be robust in the sense that they would appear to yield beneficial results across a range of alternative futures. Of course, even ‘future history’ marches on and it will remain crucial to consider the impact of unfolding events to maintain a sense of the direction of travel. The scenario implications will be useful to policymakers seeking to identify particular developments that may be desirable or undesirable. This will in turn facilitate discussion about the levers available and the extent to which such developments can be influenced. The most important point to take away from a European perspective is that across the scenarios a coherent and cohesive Europe is a prerequisite to exploit opportunities and avoid becoming, if not the battleground, than at least the playground for the political and economic policies of others.
Topic:: Development, International Cooperation, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

539. The Strategic and Geo-economic Implications of the COVID-19 Pandemic

Author:: International Institute for Strategic Studies
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: International Institute for Strategic Studies
Abstract:: The COVID-19 pandemic of 2020 will have enduring effects on geopolitics and geo-economics in the Middle East, the Gulf and beyond. In this IISS Manama Dialogue 2020 Special Publication we explore the regional and global implications of the pandemic, including essays on Gulf defence economics, global and great-power politics, the Gulf states’ development models, strategy and geo-economics.
Topic:: Development, International Cooperation, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

540. Understanding Climate-Security Risks: A Mechanism-based Approach

Author:: Zafar Imran
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Center for International and Security Studies at Maryland (CISSM)
Abstract:: Whether climate change can stoke political violence and civil conflict is a critical and controversial question. Differences in methodological traditions (qualitative vs. quantitative) are often blamed for academic infighting over this question. This brief suggests that the real problem lies with an impoverished understanding of the process of climate change, particularly how social and ecological systems interact, and how changes in either propagate through the other and generate feedbacks. By presenting a dynamic understanding of the climate-conflict equation, this brief presents a mechanism-based analytical framework that can be used to study the complex phenomenon across diverse social settings. It illustrates the approach by tracing mechanisms through which climate change is fueling protests by farmers in Pakistan, and suggesting other potential applications.
Topic:: Agriculture, Climate Change, Environment, Conflict, and Rural
Political Geography:: Global Focus

541. Artificial Intelligence and Strategic Trade Controls

Author:: Lindsay Rand, Jonas Siegel, Scott Jones, and Tucker Boyce
Publication Date:: 06-2020
Content Type:: Working Paper
Institution:: Center for International and Security Studies at Maryland (CISSM)
Abstract:: Balancing the benefits and risks posed by artificial intelligence (AI), one of the most diffuse and rapidly evolving emerging technologies, is imperative when forming sound policy. This report analyzes the threats, trade linkages and mechanisms, and policy options in light of ongoing discussions regarding the prospects for applying export controls on artificial intelligence technologies and applications. Using open source research, findings from organized dialogues, and expert interviews, the report authors identified policy options that go beyond export controls and encompass a coordinated, comprehensive, and technical approach to garnering the many benefits of artificial intelligence while mitigating its security risks. These approaches take into account both traditional nonproliferation strategies and ongoing debates concerning national security and economic competitiveness. Urgent, cross-sector action by governments and nongovernmental entities, including exporters, technology developers, academia, and civil society, is necessary to activate cooperative tools that mitigate the risks posed by AI. Lessons learned from strategic trade approaches to AI can be replicated, in certain situations, to other emerging technologies.
Topic:: Science and Technology, Governance, Artificial Intelligence, and Emerging Technology
Political Geography:: Global Focus

542. nnovation and Its Discontents: National Models of Military Innovation and the Dual-Use Conundrum

Author:: Amy J. Nelson
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Center for International and Security Studies at Maryland (CISSM)
Abstract:: his study explores variations in national models of innovation, as well as the pathways or levers those models afford in controlling innovation’s end product. This report focuses on dual-use, emerging technologies’ “origin stories” and takes a big picture view of their emergence. It is bookended by an exploration of where these dual-use technologies come from and by an assessment of where they are going. The report uses case studies of both U.S. and German investment in artificial intelligence and additive manufacturing to highlight national approaches to innovation, assessing each country’s approach to regulating sensitive and dual-use technologies once they have been developed. The report argues that within a national model of innovation, the way in which technology is procured by a state’s military is linked with that state’s ability to control or regulate an end-product and, in turn, prevent diffusion or proliferation.
Topic:: Military Strategy, Military Affairs, Nonproliferation, and Innovation
Political Geography:: Global Focus

543. Emerging Technologies and Trade Controls: A Sectoral Composition Approach

Author:: Lindsay Rand and Tucker Boyce
Publication Date:: 10-2020
Content Type:: Working Paper
Institution:: Center for International and Security Studies at Maryland (CISSM)
Abstract:: The rapid development of dual-use emerging technologies has magnified the importance of reconciling technological leadership, economic competitiveness, and national security objectives. While trade controls on dual-use technology transfer can promote peace and mitigate security threats, overly cumbersome policies may impose economic burdens on the private sector that threaten competitiveness and innovation. Striking a balance between these opposing agendas has become especially challenging in the context of emerging technologies that have elicited significant interest in both the military and civilian markets. The dilemma has also been complicated by the merging of economic security discourse and policy with national security. Policymaking mechanisms should be calibrated at the level of individual technologies to avoid security and/or economic consequences of under or over-regulation. This report offers policymakers data, findings, and recommendations to strengthen the effectiveness of individual policies and to work towards a comprehensive technology strategy. In order to develop trade policies that can achieve the intended security benefits without unwarranted damage to economic competitiveness and technology innovation, policymakers must recognize technology-specific development characteristics and the associated global sectoral composition – companies, universities, research institutes, and public-private collaborations - worldwide. This report applies a mapping methodology to three emerging technologies whose level of emergence and security relevance qualifies them as “chokepoint” technologies: position, navigation, and timing (PNT), quantum computing, and computer vision. Entities in each technology category were selected and analyzed using open source information in order to identify trends with respect to global dispersion, foreign involvement (including partnerships, commerce, and investment), and specific technology focus area. A second level of analysis was conducted to compare and contrast the key trends for each of the three sectors to determine how technology-specific factors impact innovation and market establishment and to illustrate the importance of technology-specific trade policies. Analysis of the data shows clear differences among the three technologies that have important implications for the desirability and feasibility of strategic trade controls:
Topic:: Security, Science and Technology, Innovation, Trade, and Emerging Technology
Political Geography:: Global Focus

544. Imperfect competition in product and labour markets. A quantitative analysis

Author:: Dario Tortarolo and Roman D. Zarate
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:: We disentangle the extent of imperfect competition in product and labor markets using plant level data. We derive a formula for the ratio between markups and markdowns assuming costminimizing firms that face upward-sloping labour supply and downward-sloping product demand curves. We then separate this combined measure of market power by estimating firm-level labour supply elasticities instrumenting wages with a different set of instruments: including the use of intermediate inputs, input price shocks, and TFP shocks. Our results suggest that both markets exhibit imperfect competition, but the variation is mainly driven by markups. We also estimate the relative gains of removing market power dispersion on allocative efficiency, finding that markups are more important on TFP than markdowns.
Topic:: Economics, Labor Issues, Finance, Labor Market, Supply Chains, and Price
Political Geography:: Global Focus

545. The first and last word in debates: Plaintive plaintiffs

Author:: Elena D'Agostino and Daniel J. Seidmann
Publication Date:: 02-2020
Content Type:: Working Paper
Institution:: Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:: Is it better to have the first or the last word in two-round debates like common law trials? If litigants always share available witnesses then they never prefer to present first (to lead), and may prefer to follow; and they never prefer to choose the order after observing the available witnesses than to always follow. Litigants can prefer to lead if they have different available witnesses because the outcomes when some litigant leads coincide with the outcomes in an alternative game where that litigant follows, but commits to its reaction function before observing its available witnesses. Leading is therefore a commitment device.
Topic:: Law, Criminal Justice, and Legal Sector
Political Geography:: Global Focus

546. Foreign influence and domestic policy

Author:: Toke S. Aidt, Facundo Albornoz, and Esther Hauk
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:: In an interconnected world, economic and political interests inevitably reach beyond national borders. Since policy choices generate external economic and political costs, foreign state and non-state actors have an interest in infl uencing policy actions in other sovereign countries to their advantage. Foreign infl uence is a strategic choice aimed at internalizing these externalities and takes three principal forms: (i) voluntary agreements, (ii) policy interventions based on rewarding or sanctioning the target country to obtain a specific change in policy and (iii) institution interventions aimed at influencing the political institutions in the target country. We propose a unifying theoretical framework to study when foreign in fluence is chosen and in which form, and use it to organize and evaluate the new political economics literature on foreign infl uence along with work in cognate disciplines.
Topic:: Foreign Policy, International Relations Theory, Borders, Nation-State, and Domestic Policy
Political Geography:: Global Focus

547. Beyond Compliance and Cooperation? Rethinking Corporate Social Responsibility in Global Value Chains in the Age of COVID-19

Author:: Peter Lund-Thomsen and Jacob Ramirez
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:: In this article, we explore whether COVID-19 has led to a rethink of the two dominant ways of conceptualizing corporate social responsibility (CSR) in global value chains (GVCs): the compliance and cooperation paradigms. Hence, we examine whether any changes have taken place in the drivers, main features, theoretical underpinnings, and limitations of these two approaches to CSR in GVCs in the light of COVID-19. We contend that COVID-19 has been associated with an expanded version of the compliance paradigm. However, COVID-19 has not directly challenged the cooperation approach as a conceptual model. Instead the partial failure of buyers to act responsibly in relation their purchasing practices and restrictions on international travel have highlighted the limitations of this approach in the age of COVID-19. The conclusion highlights the main findings, research and policy implications of this analysis.
Topic:: International Political Economy, Business, Economic Policy, Pandemic, Global Value Chains, and COVID-19
Political Geography:: Global Focus

548. Not every time is the right time for real-time marketing: branding in the COVID-19 pandemic

Author:: Lisa Ann Richey and Maha Rafi Atal
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:: As the global Covid-19 pandemic spread through Europe and North America, companies raced to communicate how they were responding to the crisis. Advertising that focuses on a company’s response to humanitarian crises is hardly new. Every holiday season features a parade of brands touting their seasonal partnerships with charitable causes. Yet these exercises in “Covid-branding” struck a particular nerve with both consumers and media commentators because so many of the brands stuck to the same script.
Topic:: Economics, Markets, Communications, and Advertising
Political Geography:: Europe, North America, and Global Focus

549. Pugwash Document on the NPT Review Conference Postponent and Risks after the Pandemic

Author:: Pugwash Conferences on Science and World Affairs
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Pugwash Conferences on Science and World Affairs
Abstract:: This is a Pugwash document concerning nuclear problems and tensions in the time of COVID-19. This document has been co-signed by an extensive list of Pugwash colleagues and personalities. We hope that it might promote debate about how to improve international cooperation and, in particular, the reduction of international tensions that may bring new risks
Topic:: Arms Control and Proliferation, Nuclear Weapons, Military Strategy, Nonproliferation, Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

550. 65 Years After the Russell-Einstein Manifesto: Where Are We Now?

Author:: Pugwash Conferences on Science and World Affairs
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Pugwash Conferences on Science and World Affairs
Abstract:: On July 9, 1955, two of the most eminent intellectuals of the 20th century, Bertrand Russell and Albert Einstein, issued an appeal to humanity, urging that the immense peril associated with nuclear weapons be recognized by governments and publics alike. The Russell-Einstein Manifesto warned that nuclear weapons pose a threat to the survival of the human species and called for major efforts to address and contain nuclear dangers. One of the consequences of the Manifesto was the holding of the first Pugwash conference in 1957. The origins and goals of Pugwash are contained in the Russell-Einstein Manifesto: to highlight the dangers of nuclear weapons, to call for the elimination of nuclear weapons, and to promote peaceful resolution of conflicts. Today, July 9, 2020, is the 65th anniversary of the Russell-Einstein Manifesto. We ask, how is the situation now, 65 years later?
Topic:: Arms Control and Proliferation, Human Rights, Nuclear Weapons, Conflict, and Peace
Political Geography:: Global Focus

551. Pugwash Document on Cyber Security and Warfare

Author:: Gian Piero Siroli, Gotz Neuneck, and Paolo Cotta-Ramusino
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: Pugwash Conferences on Science and World Affairs
Abstract:: Since its foundation, the Pugwash Conferences on Science and World Affairs (Pugwash) has continued to bring together, from around the world, influential scientists, scholars, experts and public figures concerned with reducing the dangers of armed conflict, especially regarding nuclear weapons and other weapons of mass destruction, and with understanding the new threats related to new technologies, while seeking cooperative solutions. Pugwash held three workshops on the topic of cyber security and warfare between December 2018 and January 2020, gathering a total of about 60 experts and practitioners from Europe, North and South America, and Asia, focusing on a broad set of specific themes. The first workshop (Geneva, Switzerland, December 2018, hosted by the GCSP) discussed battlefield digitalization and offensive cyber capabilities, weapon-system vulnerabilities, and the implications of Artificial Intelligence (AI). The second workshop (Bariloche, Argentina, October 2019, supported by INVAP, Global Security Foundation and KPMG) focused on “Cybersecurity in Latin America”. The third workshop (Geneva, Switzerland, January 2020, sponsored by the Mission of Brazil to the UN Office in Geneva) focused on “Cyber Security and Warfare,” and included discussions on international cooperation, the multi-stakeholder approach, and implications of AI and autonomous weapons systems. Reports are available on the Pugwash website1. The participants, who came from many countries, carried out an analysis and reflection on various aspects of the cyber ecosystem in the context of international stability and security, and reviewed current initiatives included within the international agenda. Better definitions, a common nomenclature, and reliable communication between responsible stakeholders—based on the principles of International Humanitarian Law and the experiences of arms control for risk reduction, self-restraint and crisis management--might be useful or necessary. Sound technical analysis and forensics are a precondition to understanding the different threats and vulnerabilities of the cyber-sphere. Detailed proposals for discussion and implementation were elaborated during the workshops.
Topic:: Security, War, Cybersecurity, Conflict, and Artificial Intelligence
Political Geography:: Global Focus

552. ID2020, Bill Gates and the Mark of the Beast: how Covid-19 catalyses existing online conspiracy movements

Author:: Elise Thomas and Albert Zhang
Publication Date:: 06-2020
Content Type:: Working Paper
Institution:: Australian Strategic Policy Institute (ASPI)
Abstract:: Against the backdrop of the global Covid-19 pandemic, billionaire philanthropist Bill Gates has become the subject of a diverse and rapidly expanding universe of conspiracy theories. This report takes a close look at a particular variant of the Gates conspiracy theories, which is referred to here as the ID2020 conspiracy (named after the non-profit ID2020 Alliance, which the conspiracy theorists claim has a role in the narrative), as a case study for examining the dynamics of online conspiracy theories on Covid-19. Like many conspiracy theories, that narrative builds on legitimate concerns, in this case about privacy and surveillance in the context of digital identity systems, and distorts them in extreme and unfounded ways. Among the many conspiracy theories now surrounding Gates, this one is particularly worthy of attention because it highlights the way emergent events catalyse existing online conspiracy substrates. In times of crisis, these digital structures—the online communities, the content, the shaping of recommendation algorithms—serve to channel anxious, uncertain individuals towards conspiratorial beliefs. This report focuses primarily on the role and use of those digital structures in proliferating the ID2020 conspiracy.
Topic:: Science and Technology, Internet, COVID-19, and Misinformation
Political Geography:: Australia and Global Focus

553. Evaluating our Evaluations: Recognizing and Countering Performance Evaluation Pitfalls

Author:: Lee Evans and G. Lee Robinson
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Department of Social Sciences at West Point, United States Military Academy
Abstract:: Selecting the right person for the right job at the right time is a persistent challenge faced by organizations. Performance evaluations are a fundamental component of selection processes, and their use in the Army is nearly as old as the service itself. Some early evaluation systems consisted of a list of officers in a regiment with observations noted for each ranging from “a good-natured man” to “merely good—nothing promising” to “a man of whom all unite in speaking ill.” While our current evaluation form adds a bit more science to the art of performance evaluation, a constant in the Army’s performance evaluation system is the reliance on raters to render their judgment on the potential of a subordinate for service at higher levels. The purpose of this article is to better equip raters to exercise these judgments. While we recognize the calls for personnel management reform and the initiatives underway to better manage the Army’s talent, our purpose is not to add another voice to these suggestions for structural changes to the Army’s evaluation system.Instead, we focus on the process of discretionary judgment exercised by raters that is and will continue to be an integral part of performance evaluation. Our aim is to recognize the structural and cognitive biases inherent in our evaluation system and provide recommendations to help senior raters more objectively evaluate their subordinates. While we think the importance of this topic is self-evident, educating raters on the potential for bias in their evaluations is especially important in the type of rating system used by the Army. This system places great emphasis on the person serving as the senior rater. Although the evaluation forms include assessments from raters and sometimes intermediate raters, the senior rater comments are widely acknowledged to carry the most weight for promotion and selection decisions due to the small amount of time available to evaluate a soldier’s file. Most positions involve work that is highly interdependent on other members of the organization, which places a considerable demand on raters to assess and articulate how much an individual contributed to the output of the group. While the performance of an officer is undoubtedly important to his or her chances for promotion or selection, the abilities of the officer’s senior rater to convey the level of this performance through an evaluation is also vital to talent management. Previous studies demonstrate that exposure to a high-quality mentor increases an officer’s likelihood of an early promotion to major by 29 percent, perhaps because high-quality mentors are skilled at communicating their protégé’s potential in their performance evaluations. Equipping raters to make their best possible judgments of subordinates and clearly articulating these judgments is vital to fostering a meritocratic Army talent management system.
Topic:: Military Affairs, Leadership, Bureaucracy, and Performance Evaluation
Political Geography:: Global Focus

554. The Use of Cyberspace in the Context of Hybrid Warfare. Means, Challenges and Trends

Author:: Cholpon Abdyraeva
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Austrian Institute for International Affairs (OIIP)
Abstract:: This paper aims to introduce the state of art on hybrid warfare and seeks to address the conceptual confusion regarding an ever-expanding concept of hybrid warfare. By doing so, this paper simultaneously attempts to assess the growing significance of cyber and information domains within the hybrid warfare, which can be clearly illustrated by the example of the Russian hybrid warfare strategy. The Russian approach to hybrid warfare has considerably broadened the scope of hybrid warfare and changed the focus of debates from military to non-military components of hybrid warfare. Therefore, the purpose of this paper is: 1) to produce a deeper insight into hybrid warfare, including related trends, and 2) to assess the role and impact of cyber and information warfare with a particular focus on Russia. This paper can serve as an introduction that guides policy makers with expert opinions, and as such, intends to motivate further investigation in this field.
Topic:: Science and Technology, Cybersecurity, Internet, Conflict, and Hybrid Warfare
Political Geography:: Russia and Global Focus

555. Covid-19: Urgent Responses

Author:: Petra Rethmann
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Institute on Globalization and the Human Condition, McMaster University
Abstract:: In the space of just a few weeks, the COVID-19 pandemic caused by the novel coronavirus has radically transformed the lives of people around the globe. Apart from devastating health consequences for people directly affected by the virus, the COVID-19 pandemic has had major implications for the way people live and work, socialize and love, and make personal, political, and economic decisions. The elbow bump has replaced the handshake. Privately owned communications technologies such as Zoom and Skype have become media of necessity, not of choice. Unemployment is at record levels, the low-wage sector is growing, and short-term work and precariousness is on the rise. The downward mobility trend (Nachtwey 2016) that has been underway in, among others, Western capitalist states for a while, continues to cement itself. Fears of social and personal decline are growing. All of this, and more, harbors the danger of increasing polarizations, (re)producing old and new figures of enmity, hate, and blame. The pandemic has inflicted a level of pain that is deep. War metaphors have been and are being bandied around, enlisting us in a fight in which supposedly we are all together. But as the papers included in this collection show, this “we” is not harmonious, uniform, or even. It cracks across fault lines of poverty, gender, and race. Data from a variety of reliable sources show that African Americans, who suffer disproportionally from poverty, inadequate housing, limited access to good health care, and chronic illnesses such as diabetes and hypertension, are dying from COVID-19 at horrific rates. In the banlieues and cités (public housing complexes) of France food-price spikes have triggered hunger riots. While many of us have had (and have) the privilege to work from home, others, including warehouse packers and front-line workers, have been exposed to deadly hazards at work. Domestic, sexual, and gender-based violence has increased, and stay-at-home measures have exposed women and children who live with violent men to great danger. Restrictions that translate into national-security policies have ramped up anti-migrant sentiments. And across Canada, as well as in other places, people in local nursing homes, seniors’ residences, and single-parent households are disproportionally affected and suffer. Indeed, it appears as if the very fabrics of the social, whatever they were before, are at stake.
Topic:: Digital Economy, Public Health, Pandemic, COVID-19, and Health Crisis
Political Geography:: Global Focus

556. Covid-19: Urgent Responses

Author:: Petra Rethmann
Publication Date:: 06-2020
Content Type:: Working Paper
Institution:: Institute on Globalization and the Human Condition, McMaster University
Abstract:: In May 2020 the Institute on Globalization and the Human Condition published a Working Paper entitled COVID-19: Urgent Responses. The paper produced by James Gibbs, Luseadra McKerracher, and Jessica Fields is part of this series. Together, then, the COVID-19: Urgent Responses includes ten exciting paper that also stand as a testimony to the challenges faced by many of us in these times.
Topic:: Public Health, Pandemic, COVID-19, and Health Crisis
Political Geography:: Global Focus

557. Transcending History’s Heavy Hand The Future in Economic Action

Author:: Jens Beckert and Timur Ergen
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Max Planck Institute for the Study of Societies
Abstract:: This paper discusses sociological analyses of the formation and role of expectations in the economy. Recognition of the social constitution of expectations advances the understand- ing of economic action under conditions of uncertainty and helps to explain core features of modern capitalist societies. The range of applications of the analytical perspective is il- lustrated by closer examination of three core spheres of capitalist societies: consumption, investment, and innovation. To provide an idea of core challenges of the approach, three major research questions for the sociological analysis of expectations are presented.
Topic:: Economics, Markets, Sociology, Capitalism, and Innovation
Political Geography:: Global Focus

558. Fight the COVID-19 Pandemic and Improve Global Health Governance

Author:: Lin Ren, Aizong Xiong, Guoding Wu, Chen Shen, Xu Tian, and Bo Peng
Publication Date:: 07-2020
Content Type:: Working Paper
Abstract:: The fast spreading of the COVID-19 across the globe points to the urgency of strengthening global health governance. As the core global health governance institution, the WHO has taken a series of actions after the eruption of the epidemic and played an important role in providing guidance and coordinating global forces to combat the epidemic. The epidemic, however, has also exposed some defects of the global health governance mechanism, especially the WHO, and posed challenge to it. The international community needs to strengthen its support for the WHO to improve its role in the global health governance.
Topic:: Health, Governance, and COVID-19
Political Geography:: China, Asia, and Global Focus

559. The Un-Evident Victims of Armed Conflict: Humanitarian Workers

Author:: Tamia Brito
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Public International Law Policy Group
Abstract:: n the increasingly complex realm of armed conflict, the impact of armed encounters has expanded beyond the parties to the conflict and the civilian population. There is a deteriorating situation for humanitarian workers as they have become direct targets of organized violence, despite the protection that international law has provided for them. Both International Humanitarian Law (IHL) and International Criminal Law (ICL) have established special protection to personnel providing input and services to the civilian population affected by armed conflict. However, the difference between theory and practice can be rather large. The humanitarian mission is being limited in the field by novel risks brought by armed conflicts. This blog post discusses the achievements of international law in providing special protection to humanitarian aid personnel as part of global recognition of the humanitarian endeavor. It also addresses factual information regarding humanitarian workers, illustrating the risks they experience in the field. To conclude, this blog post exhibits responses that the international community is implementing to mitigate the discrepancy between law and practice. World Humanitarian Day (August 19th) may be an opportunity to remember the relevance of this particular issue and encourage further efforts towards its solution.
Topic:: Humanitarian Intervention, Violence, Humanitarian Crisis, and Armed Conflict
Political Geography:: Global Focus

560. Triple Threat: New Research Highlights Three Key Sources of Insecurity for Women Peacebuilders

Author:: Jennifer Bradshaw and Louise Allen
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: The Joan B. Kroc Institute for Peace Justice, University of San Diego
Abstract:: As we move into this new decade, women peacebuilders from around the world are facing enormous challenges as they work to build more inclusive and safer societies. To better understand the peacebuilding landscape that these women are currently navigating, the Kroc School's Institute for Peace and Justice has conducted a network-wide research project with its Women Waging Peace members. This research brought together perspectives from over 1,000 women from 56 different countries who are working to end cycles of violence in their communities. In the fifth installment of our Kroc Insight series, we focus on the increased insecurity and threat women peacebuilders are facing from three main sources: state actors, non-state actors, and their domestic space.
Topic:: United Nations, Peacekeeping, Women, and Peace
Political Geography:: Global Focus

561. How ‘demos’ met ‘cracy’: debt, inequality, money

Author:: Andreas Antoniades and Ugo Panizza
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Centre for Global Political Economy, University of Sussex
Abstract:: The recurrence of ever more destructive economic crises and patterns of pervasive indebtedness and inequality threaten the social fabric of our societies. Our main responses to these trends have been partial, focusing on symptoms rather than causes, often exacerbating rather than improving the underlying socio-economic dynamics. To reflect on these conditions and on ‘what needs to be done’ this paper turns to a similar socio-economic malaise faced by the city-state of Athens in the 6th century BC. Most historical studies dealing with this crisis focus on the comprehensive debt relief policy (seisachteia) implemented by Solon. We argue that this debt relief, although necessary, was the least important of Solon’s reforms. Solon read the problem of debt as a problem of money so he went on to reform the monetary and exchange system. But he did not think that these reforms alone could restore socioeconomic sustainability. For this, a redefinition of what was counted as valuable economic activity and as income had also to take place. And for all these to work, citizens had to be involved more in the commons. Far from only achieving socioeconomic sustainability, these reforms gave rise gradually to the demos that we meet in the golden age of Democracy. It is indeed interesting that Democracy, in its ideal type of the 5th century BC, finds its origin in the way in which a society responded to a major socioeconomic crisis, characterised by pervasive indebtedness and destabilising inequalities. Such a broader historical horizon may help us grasp better the problems, stakes and challenges of our times.
Topic:: Debt, Political Economy, History, Democracy, and Global Political Economy
Political Geography:: Greece and Global Focus

562. The Future of Nuclear Arms Control: Time for an Update

Author:: Angela Kane and Noah Mayhew
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Institute for Development and Peace
Abstract:: Many consider the Reagan-Gorbachev prin- ciple that “nuclear war cannot be won and must never be fought” (Joint Soviet-United States Statement 1985) to be the clarion call for arms control. With this, US and Soviet leaders put words to the fundamental under- standing that arms control was sacrosanct in the context of other, unrelated issues in inter- national security. In 2020, we live in a different reality where arms control by some experts has been reduced to “nuclear identity politics” (Ford 2020) while others claim that it is “practical- ly exhausted” (Yermakov 2020). Disconcert- ing as these sentiments may be, they contain a kernel of truth. Arms control in 2020 is still oriented to realities of the past. But if the arms race spirals into full force, it is humans who will be the losers. Hence, it is unhelp- ful to dismiss arms control as an obsolete manifestation of Cold War nightmares. But it is time for an update to address new global challenges, in particular quickly evolving geo- political realities and emerging technologies. Furthermore, the silos in the debate on arms control need to be overcome.
Topic:: Arms Control and Proliferation, Diplomacy, Nuclear Weapons, Military Strategy, and Military Affairs
Political Geography:: Global Focus

563. Agricultural Value Chains in Development Cooperation

Author:: Jana Herold
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Institute for Development and Peace
Abstract:: The support of agricultural value chains has become an important approach in German and international development cooperation, not only to promote the economic development of a country but also to contribute to poverty reduction and food security by integrating smallholder farmers into value chains. In consequence, this approach can address a number of goals of the Agenda 2030 for sustainable development. While promoting value chains has great potential to advance sustainable development, it can also have negative effects, particularly for poor and vulnerable population groups. In order for these population groups to be able to benefit from value chain support, they need targeted financial and technical support and bridging assistance. Therefore, the approach should primarily aim at poverty reduction, but also at improving food security, empowering women and sustainable natural resource management. The main challenges of the value chain approach are insufficient access to agricultural inputs, markets and agricultural credits and the lack of entrepreneurial know-how for market-oriented production. Overall, the INEF research on agricultural value chains shows that their promotion should always start with primary production, as this is the basis for any further added value. However, the land use rights of the population eligible for support, especially women, should be clarified before any investment is made. Another critical point that any support for value chains should take into account is a country's physical infrastructure. It is necessary to connect both primary production and processing to markets. The integration of smallholder farmers into value chains is particularly viable via primary production. In order to include resource-poor farmers into value chains as well, these should be actively supported at the beginning of the project, among other things through training in market-oriented production. Furthermore, access to financial services and bridging assistance as well as to agricultural inputs is of key importance, especially at the beginning of the growing season, and particularly when market-oriented production is started for the first time. Access to credits can be facilitated by organising in cooperatives. Furthermore, this form of organisation makes it possible to bundle resources and strengthen negotiating power vis- à-vis buyers. In order to ensure that smallholder farmers can continue to supply themselves with food, especially at the start of operations, a sole focus on cash crops should be avoided and instead healthy staple foods should also be promoted. To support sustainable production, the support of value chains should always include natural resource management measures. This can increase productivity and, compared to previous practice, at the same time achieve a more ecologically sustainable cultivation of the land. In this context, secured land use rights, especially for women, provide additional incentives for farmers to invest in their fields. The studies also show that the processing of local agricultural products and commercially harvested products offers income-generating activities especially for women. In this context, locally adapted partial mechanisation is important in order to increase production efficiency without displacing women from further processing.
Topic:: Security, Agriculture, Natural Resources, and Food Security
Political Geography:: Global Focus

564. Making Peace with Climate Adaptation

Author:: Louise Van Schaik, Camilla Born, Elizabeth Sellwood, and Sophie de Bruin
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Clingendael Netherlands Institute of International Relations
Abstract:: Climate change poses risks to poor and rich communities alike, although impacts on the availability and distribution of essential resources such as water, food, energy and land will differ. These changes, combined with other social, political and economic stresses and shocks, can increase tensions within and between states, which, if unmanaged, can lead to violence. Climate-related changes to transboundary waters, food security and trade patterns, sea levels, and Arctic ice, as well as the transition to a low-carbon economy, have profound geopolitical implications. Largescale climate-related migration may also affect the stability of states, and relations between states. Climate action itself may prove destabilizing: (mal)adaptation can disrupt economic and social relations, particularly if implemented without appropriate political economy analysis and risk assessments. In response to analyses linking climate change to security, peace and security actors increasingly realize that interventions to promote peace and stability are more likely to be effective if they incorporate such analyses. At the United Nations, member states have agreed to shift towards a “preventive” approach to conflict risks, grounded in sustainable development. The UN leadership is adjusting institutional structures to better understand and respond to climate-related security risks at all levels, including a newly established climate security mechanism in New York. Many regional intergovernmental institutions have also recognized the links between climate change, peace and security. Some, such as the Intergovernmental Authority on Development in East Africa and the European Union, have incorporated climate-related factors into their conflict early-warning mechanisms. We are only just beginning to understand the realities of adapting to unprecedented climate change, however. Climate-related factors will need to be incorporated systematically into political analysis, risk assessment, and early warning, accompanied by deeper integration of climate-security risk assessment into planning and political engagement in the field. Similarly, more consistent analysis of climate-related security risks must contribute to politically informed, conflict-sensitive adaptation strategies.
Topic:: Conflict Prevention, Climate Change, International Political Economy, Peace, and Sustainability
Political Geography:: Global Focus

565. Shifting into Digital Services: Does a Crisis Matter and for Who?

Author:: Erik van der Marel
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: How do trade patterns change after an external shock such as an economic crisis, and is this shift structural? This paper uses a Difference-in-Difference (DID) approach to investigate whether services trade became more digital after the Global Financial Crisis (GFC) in 2008. It finds that the GFC formed an independent break from the previous period that turned services trade to become more digital – although there are signs that this somewhat already happened before 2008. Software-intense services such as R&D services, information services, computer services and charges for Intellectual Property Rights (IPR) saw on average a 6 percent higher increase in global exports compared to other non-digital sectors post-2008. Countries with higher internet usage and with already comparative advantage in these sectors saw this higher increase in digital trade. More striking is that in particular upper-middle income countries and countries with high manufacturing activity saw the sharpest shift into digital services trade after the GFC. These significant outcomes forecast a direction into which patterns of services trade are likely to turn after the current economic crisis resulting from COVID-19.
Topic:: International Political Economy, International Trade and Finance, Digital Economy, Global Financial Crisis, Exports, and Digital Policy
Political Geography:: Global Focus

566. Don’t Throw Caution to the Wind: In the Green Energy Transition, Not All Critical Minerals Will Be Goldmines

Author:: Perrine Toledano, Martin Dietrich Brauch, Solina Kennedy, and Howard Mann
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Columbia Center on Sustainable Investment
Abstract:: he green energy transition will be exceedingly mineral intensive. Manufacturing solar panels, wind turbine and batteries to power cleaner energies is set to significantly increase the demand for co-called “critical” minerals. Such a forecast prompts high expectations in mineral-rich countries and suggests promising opportunities for developing countries. However, the projects to increase the primary extraction of critical minerals rest on bullish forecasts and uncertain terrain due to a number of factors explored in the paper that threaten to leave these investments obsolete and economically stranded.
Topic:: Science and Technology, Green Technology, Sustainability, and Transition
Political Geography:: Global Focus

567. Prices, Profits, Proxies, and Production

Author:: Victor H. Aguiar, Roy Allen, and Nail Kashaev
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Centre for Human Capital and Productivity (CHCP), Western University
Abstract:: This paper studies nonparametric identification and counterfactual bounds for heterogeneous firms that can be ranked in terms of productivity. Our approach works when quantities and prices are latent rendering standard approaches inapplicable. Instead, we require observation of profits or other optimizing-values such as costs or revenues, and either prices or price proxies of flexibly chosen variables. We extend classical duality results for price-taking firms to a setup with discrete heterogeneity, endogeneity, and limited variation in possibly latent prices. Finally, we show that convergence results for nonparametric estimators may be directly converted to convergence results for production sets.
Topic:: Economics, Human Capital, Profit, Productivity, and Price
Political Geography:: Canada and Global Focus

568. Child Skill Production: Accounting for Parental and Market-Based Time and Goods Investments

Author:: Elizabeth Caucutt, Lance Lochner, Joseph Mullins, and Youngmin Park
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Centre for Human Capital and Productivity (CHCP), Western University
Abstract:: This paper studies the multidimensional nature of investments in children within a dynamic framework. In particular, we examine the roles of parental time investments, purchased home goods/services inputs, and market-based child care services. We first document strong increases in total investment expenditures by maternal education; yet expenditure shares, which skew heavily towards parental time, vary little with parental schooling. Second, we develop an intergenerational lifecycle model with multiple child investment inputs to study these patterns and the impacts of policies that alter the prices of different inputs. We analytically characterize investment behavior, focusing on the substitutability of different investment inputs and the way parental skills affect the productivity of family-based inputs. Third, we develop an estimation strategy that exploits intratemporal optimality conditions based on relative demand to estimate substitutability between inputs, the relative productivity of different inputs, and the role played by parental education. This approach requires no assumptions about the dynamics of skill investment, preferences, or credit markets. We also account for mismeasured inputs and wages, as well as unobserved heterogeneity in parenting skills. We further show how noisy measures of child achievement (measured several years apart) can also be incorporated in a generalized method of moments approach to additionally identify the dynamics of skill accumulation. Fourth, we use data from the Child Development Supplement of the Panel Study of Income Dynamics to estimate the skill production technology for children ages 12 and younger. Our estimates suggest complementarity between parental time and home goods/services inputs as well as between these family-based inputs and market-based child care, with elasticities of substitution ranging from 0.2 to 0.5. We find no systematic effects of parental education on the relative productivity of parental time and other home inputs. Finally, we use counterfactual simulations to explore the extent and sources of variation in investments across families, as well as investment responses to changes in input prices. We find that variation in prices explains 48% of the overall variance in investment expenditures, and differences in wages explain more than half of the investment expenditure gap between college-educated and non-college-educated parents. We further show that accounting for the degree of input complementarity implied by our estimates has important implications for the responses of individual inputs to any price change and for the responses in total investments and skill accumulation to large (but not small) price changes.
Topic:: Economics, Labor Issues, Children, Human Capital, Economic Mobility, Credit, Productivity, Skilled Labor, and Price
Political Geography:: Global Focus

569. Returns to Skill and the Evolution of Skills for Older Men

Author:: Qian Liu, Lance Lochner, Youngmin Park, and Youngki Shin
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Centre for Human Capital and Productivity (CHCP), Western University
Abstract:: This paper shows that repeated cross-section data with multiple skill measures (one continuous and repeated) available each period are sufficient to nonparametrically identify the evolution of skill returns and cross-sectional skill distributions. With panel data and the same available measurements, the dynamics of skills can also be identified. Our identification strategy motivates a multi-step nonparametric estimation strategy. We further show that if any continuous repeated measurement is shown to be linear in skills, a much simpler GMM estimator can be used. Using HRS data on men ages 52+ from 1996-2016, we show that one of the available (continuous and repeated) skill measures is linear in skills and implement our GMM estimation approach. Our estimates suggest that the returns to skill were fairly stable from the mid-1990s to the Great Recession, rising thereafter. We document considerable differences in skills and lifecycle skill profiles over ages 52–70 across cohorts, with more recent cohorts possessing lower skills in their mid-50s but experiencing much weaker skill declines with age. We also document skill differences by education and race, which are stable across ages and explain roughly one-third and one-half, respectively, of the corresponding differences in wages. We observe substantial differences in skills for men in their mid-50s choosing to retire at different ages, but no clear evidence of sharp declines in skills surrounding retirement ages. Finally, we show that individual fixed effects account for more than a third of all skill variation at age 60, with considerable persistence in year-to-year skill innovations.
Topic:: Global Recession, Labor Issues, Human Capital, Men, Productivity, Skilled Labor, and Retirement
Political Geography:: Global Focus

570. Marriage, Children, and Labor Supply: Beliefs and Outcomes

Author:: Yifan Gong, Todd Stinebrickner, and Ralph Stinebrickner
Publication Date:: 04-2020
Content Type:: Working Paper
Institution:: Centre for Human Capital and Productivity (CHCP), Western University
Abstract:: While a large literature is interested in the relationship between family and labor supply outcomes, little is known about the expectations of these objects at earlier stages. We examine these expectations, taking advantage of unique data from the Berea Panel Study. In addition to characterizing expectations, starting during college, the data details outcomes for ten years after graduation. Methodological contributions come from approaches to validate quality of survey expectations data and the recognition that expectations data, along with longitudinal data, can potentially help address endogeneity issues arising in the estimation of the causal effect of family on labor supply.
Topic:: Economics, Labor Issues, Human Capital, Family, Labor Market, and Productivity
Political Geography:: Canada and Global Focus

571. Perceived and Actual Option Values of College Enrollment

Author:: Yifan Gong, Ralph Stinebrickner, and Todd Stinebrickner
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Centre for Human Capital and Productivity (CHCP), Western University
Abstract:: An important feature of post-secondary schooling is the experimentation that accompanies sequential decision-making. Specifically, by entering college, a student gains the option to decide at a future time whether it is optimal to remain in college or to drop out, after resolving uncertainty that existed at entrance about factors that affect the return to college. This paper uses data from the Berea Panel Study to quantify the value of this option. The unique nature of the data allows us to make a distinction between “actual” option values and “perceived” option values and to examine the accuracy of students’ perceptions. We find that the average perceived option value is 65% smaller than the average actual option value ($8,670 versus $25,040). A further investigation suggests that this understatement is not due to misperceptions about how much uncertainty is resolved during college, but, rather, because of overoptimism at entrance about the returns to college. In terms of policy implications related to college entrance, we do not find evidence that students understate the overall value of college, which depends on the sum of the option value and expectations at entrance about the returns to college.
Topic:: Economics, Labor Issues, Human Capital, Higher Education, Economic Mobility, and Productivity
Political Geography:: Global Focus

572. Self-Employment and Development

Author:: Juan Herreno and Sergio Ocampo
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: Centre for Human Capital and Productivity (CHCP), Western University
Abstract:: Selection into self-employment among the poor is dominated by subsistence concerns, which leads to high levels of unproductive self-employment in developing countries. We incorporate this view into an otherwise benchmark macro-development model by allowing for labor frictions. Standard models that rely only on financial frictions are at odds with crucial features of the data, including large self-employment rates among the poor and the response of labor markets after well-identified labor demand shocks. We study the efficacy of a wide range of development policies on occupational choices, prices, and productivity. We find that providing unemployment benefits improves selection into self-employment, increasing total-factor productivity (TFP). Self-employment grants and unconditional transfers lower TFP by making self-employment more attractive to low-productivity individuals. Finally, financial reforms that improve access to credit succeed in raising productivity, but they do not address the subsistence concerns of poor individuals. Self-employment is still concentrated among the poor after the reforms take place.
Topic:: Economics, Labor Issues, Employment, Human Capital, Macroeconomics, Economic Development, and Productivity
Political Geography:: Global Focus

573. Global giants and local stars: How changes in brand ownership affect competition

Author:: Vanessa Alviarez, Keith Head, and Thierry Mayer
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:: We assess the consequences for consumers in 76 countries of multinational acquisitions in beer and spirits. Outcomes depend on how changes in ownership affect markups versus efficiency. We find that owner fixed effects contribute very little to the performance of brands. On average, foreign ownership tends to raise costs and lower appeal. Using the estimated model, we simulate the consequences of counterfactual national merger regulation. The US beer price index would have been 4-7% higher without divestitures. Up to 30% savings could have been obtained in Latin America by emulating the pro-competition policies of the US and EU.
Topic:: Economics, International Political Economy, and Multinational Corporations
Political Geography:: United States, United Kingdom, Latin America, and Global Focus

574. MULTIPRIL: a new database on multilateral price levels and currency misalignments

Author:: Cécile Couharde, Carl Grekou, and Valérie Mignon
Publication Date:: 10-2020
Content Type:: Working Paper
Institution:: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:: This paper describes the new CEPII-MULTIPRIL database on Multilateral Price Levels (MPL) introduced in 2020. The MULTIPRIL database covers a wide sample of 178 countries over the 1990-2018 period, and includes relative price level series computed vis-à-vis two sets of trading partners (177 and the top 30) according to three different trade-weighting schemes. It also contains MPL-based currency misalignments series for 156 countries over the 1991-2018 period. MULTIPRIL offers the potential to improve the coverage and quality of worldwide price-competitiveness comparisons. By focusing on price level data, it usefully complements the EQCHANGE database on equilibrium exchange rates and currency misalignments derived from series in indices. Its multilateral setting provides a more comprehensive picture of relative price levels and currency misalignments compared to existing bilateral measures.
Topic:: Economics, International Political Economy, Exchange Rate Policy, Trade, Database, and Price
Political Geography:: Global Focus

575. Migration and Cultural Change

Author:: Hillel Rapoport, Sulin Sardoschau, and Arthur Silve
Publication Date:: 09-2020
Content Type:: Working Paper
Institution:: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:: We examine both theoretically and empirically how migration affects cultural change in home and host countries. Our theoretical model integrates various compositional and cultural transmission mechanisms of migration-based cultural change for which it delivers distinctive testable predictions on the sign and direction of convergence. We then use the World Value Survey for the period 1981-2014 to build time-varying measures of cultural similarity for a large number of country pairs and exploit within country-pair variation over time. Our evidence is inconsistent with the view that immigrants are a threat to the host country’s culture. While migrants do act as vectors of cultural diffusion and bring about cultural convergence, this is mostly to disseminate cultural values and norms from host to home countries (i.e., cultural remittances).
Topic:: Migration and Culture
Political Geography:: Global Focus

576. Corporate tax avoidance and industry concentration

Author:: Farid Toubal, Mathieu Parenti, and Julien Martin
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:: This paper argues that tax avoidance by large corporations has contributed to the 25% increase in concentration among U.S. firms since the mid-1990s. Corporate tax avoidance gives large firms a competitive edge, which translates into larger market shares and an increase in the granularity of the economy. We develop IV and difference-in-differences strategies that show the causal impact of tax avoidance on firm-level sales. Had firms not resorted to tax avoidance in 2017, our results imply that the average industry concentration would have been 8.3% lower, which is around its early 2000 level.
Topic:: Economics, International Political Economy, Markets, Tax Systems, Corporations, Tax Evasion, and Corporate Tax
Political Geography:: United States and Global Focus

577. Grey Zones in Global Finance: the Distorted Geography of Cross-Border Investments

Author:: Vincent Vicard, Amélie Guillin, and Anne-Laure Delatte
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:: Tax avoidance schemes generate artificially complex cross-border financial structures inflating measured international investment stocks in tax havens. Using a standard gravity framework, we estimate that about 40% of global assets (FDI, portfolio equity and debt) are `abnormal' – unexplained – stocks. Abnormal stocks are increasing over time and concentrated in a limited number of jurisdictions. Six jurisdictions including three European countries are the largest contributors: Cayman, Bermuda, Luxembourg, Hong Kong, Ireland and the Netherlands. Interestingly, the Luxleaks in 2014 do not appear to have diverted cross-border investments away.
Topic:: Economics, International Political Economy, International Trade and Finance, Finance, Borders, Investment, and Stock Markets
Political Geography:: Global Focus

578. Cross-border Investments and Uncertainty Firm-level Evidence

Author:: Rafael Cezar, Timothée Gigout, and Fabien Tripier
Publication Date:: 03-2020
Content Type:: Working Paper
Institution:: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:: This paper studies the impact of uncertainty on cross-border investments. We build a data-set of firm-level outward Foreign Direct Investments between 2000 and 2015. We create a time and country varying measure of uncertainty based on the dispersion of idiosyncratic investment returns. An increase in uncertainty delays cross-border flows to the affected country. Yet, this average effect hides strong heterogeneity. Firms with low ex-ante performance durably reduce their foreign investments. Meanwhile high-performing firms increase their investments after the initial shock. We interpret these results as the evidence of a cleansing effect of uncertainty shocks among multinational firms in the presence of financial frictions.
Topic:: Economics, International Political Economy, Foreign Direct Investment, Borders, and Investment
Political Geography:: Global Focus

579. Does Birthplace Diversity affect Economic Complexity? Cross-country Evidence

Author:: Dany Bahar, Hillel Rapoport, and Riccardo Turati
Publication Date:: 01-2020
Content Type:: Working Paper
Institution:: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:: We empirically investigate the relationship between a country’s economic complexity and the diversity in the birthplaces of its immigrants. Our cross-country analysis suggests that birthplace diversity is strongly and positively associated with economic complexity. This holds particularly for diversity among highly educated migrants and for countries at intermediate levels of economic complexity. The results are robust to accounting for previous trends in birthplace diversity as well as to using alternatives diversity measures. We address endogeneity concerns by instrumenting diversity through predicted stocks from a pseudo-gravity model as well as from a standard shift-share approach. Finally, we provide evidence suggesting that birthplace diversity boosts economic complexity by increasing the diversification of the host country’s export basket.
Topic:: Economics, International Political Economy, Multiculturalism, Immigrants, Diversity, and Economic Complexity
Political Geography:: Global Focus

580. conomic Rents and the Contours of Conflict in the Data-driven Economy

Author:: Dan Ciuriak
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: In the era of continuous and steadily accelerating technological change that started with the Industrial Revolution, economies and societies were repeatedly transformed in ways that can be traced to ownership of the essential and scarce factor of production of the day and command of the economic rents that flowed to that factor. The digital transformation is now ushering in a new economic era, in which the economy is again being reordered by new technologies based on a new essential capital asset — data. Data generates massive rents, fuels the rise of superstar firms and generates powerful incentives for strategic trade and investment policy. The emergence of this new economy signals a new era of conflict, on new battlegrounds and with new tools or weapons, between new coalitions within and between countries. This paper describes the contours of the conflicts that are to be expected with the digital transformation as it realigns interests; compares these expectations with actual developments; and comments on the strategies of the main protagonists and the implications for the rules-based system of international commerce.
Topic:: Science and Technology, Commerce, and Digitalization
Political Geography:: Global Focus

581. Data Standards Task Force for Digital Cooperation

Author:: Michel Girard
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: There is no consensus to create a global framework for managing data governance under the United Nations. A Data Standards Task Force (DSTF) is needed to create a single data zone where trustworthy data could circulate freely between like-minded countries. This proposal is aligned with the objectives of fora such as the International Grand Committee on Big Data, Privacy and Democracy. Canada could also spearhead the launch of the DSTF with like-minded countries through the implementation of regional free trade agreements such as the Canada-United States-Mexico Agreement, the Canada-European Union Comprehensive Economic and Trade Agreement or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Topic:: International Cooperation, United Nations, Trade Policy, and Digitalization
Political Geography:: Global Focus

582. Helping Organizations Master Data Governance

Author:: Michel Girard
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: Data is seen by many as the most lucrative commodity of the new global economy. Data analytics and self-teaching algorithms are projected to continue to disrupt every imaginable market and to create new ones. Many organizations are struggling to integrate big data analytics into their operations. New data governance challenges could be tackled through adherence to a data governance standard. There is currently no standard in place to provide guidance on the deployment of corporate data policies to manage ethics, transparency and trust in data value chains. This policy brief outlines the issues that should be covered in the proposed standard.
Topic:: Science and Technology, Governance, and Data
Political Geography:: Global Focus

583. Modern Conflict and Artificial Intelligence

Author:: Aaron Shull, Daniel Araya, Samantha Bradshaw, Amandeep Singh Gill, Michael Horowitz, Meg King, Robert Mazzolin, Maya Medeiros, Rodrigo Nieto-Gomez, and Liis Vihul
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: Autonomous systems are revolutionizing our lives, but they present clear international security concerns. Despite the risks, emerging technologies are increasingly applied as tools for cybersecurity and, in some cases, cyberwarfare. In this essay series, first published online, experts explore digital threats to democracy and security, and the geopolitical tensions they create.
Topic:: Cybersecurity, Conflict, Artificial Intelligence, and Emerging Technology
Political Geography:: Global Focus

584. Technology-Facilitated Gender-Based Violence: An Overview

Author:: Suzie Dunn
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: As digital technologies become more sophisticated, so does technology-facilitated gender-based violence (TFGBV). This type of violence can take many forms, from the release of personal information and private images without consent, to online stalking and death threats. For perpetrators of TFGBV, the internet is their weapon of choice — it allows them to monitor and control their targets from anywhere in the world. Victim-survivors have little recourse against the many forms of online gender-based violence, including threats of harm, some of which have been carried out. The resulting mental and physical health effects of TFGBV, among other impacts, have forced many victim-survivors out of online spaces and silenced their voices.
Topic:: Gender Issues, Science and Technology, Gender Based Violence, and Mental Health
Political Geography:: Global Focus

585. Data Is Divisive: A History of Public Communications on E-commerce, 1998–2020

Author:: Susan Ariel Aaronson and Thomas Struett
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: For 22 years, the members of the World Trade Organization (WTO) have been discussing how to govern e-commerce and the data that underpins it. In 2019, some 74 (now 86) nations began to negotiate e-commerce. These talks are conducted in secret and little is known about how they are progressing. However, WTO members issued a wide range of public comments on both the Work Programme on Electronic Commerce and the Joint Statement Initiative on Electronic Commerce from 1998, when the work program began, to the present. These communications provide context as well as a window into the negotiations. Using qualitative techniques to analyze these communications, the authors of this paper found that throughout the 22-year period, member states were divided by their understanding, capacity and willingness to set rules governing e-commerce or digital trade. Data, digital prowess and data governance expertise were creating division among members. The paper offers three suggestions for action policy makers could take to address this divide.
Topic:: Communications, Digital Economy, Data, and WTO
Political Geography:: Global Focus

586. The World with and after COVID-19

Author:: Giovanni Tria, Angelo Arcelli, and Robert Fay
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: The COVID-19 pandemic has posed significant challenges for all economies, and for the financial sector, in 2020. At the same time, the crisis also brings material opportunities for beneficial change. Policy makers, regulators and governments have the chance to rethink the evolution of the financial systems and international relations to make them fit-for-purpose for what could now be called a “new normal,” where green finance and sustainability will likely become key pillars of the post-pandemic world. Discussions as part of the Financial Regulatory Outlook partnership between CIGI and Oliver Wyman, held virtually on November 23, 2020, focused on how policy makers and financial services leaders can help the industry navigate the risks they face during and after the pandemic and, as a result, build more resilient economies and financial systems for the future.
Topic:: Public Health, Pandemic, and COVID-19
Political Geography:: Global Focus

587. War, Terrorism, and Catastrophe in Cyber Insurance: Understanding and Reforming Exclusions

Author:: Jon Bateman
Publication Date:: 10-2020
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Cyber insurance is a promising way to contain the havoc cyber attacks wreak, but endless lawsuits hamper its effectiveness. Reforms and new solutions are sorely needed. Insurance is one of the most promising tools for addressing pervasive cyber insecurity. A robust market for insuring cyber incidents could, among other things, financially incentivize organizations to adopt better cyber hygiene—thereby reducing cyber risk for society as a whole. But cyber insurance is not yet mature enough to fulfill its potential, partly due to uncertainty about what kinds of cyber risks are, or can be, insured. Uncertainties in cyber insurance came to a head in 2017, when the Russian government conducted a cyber attack of unprecedented scale. Data-destroying malware called NotPetya infected hundreds of organizations in dozens of countries, including major multinational companies, causing an estimated $10 billion in losses.1 NotPetya showed that cyber risk was greater than previously recognized, with higher potential for “aggregation”—the accumulation of losses across many insurance policies from a single incident or several correlated events. NotPetya also exposed a serious ambiguity in how insurance policies treat state-sponsored cyber incidents. Some property and casualty insurers declined to pay NotPetya-related claims, instead invoking their war exclusions—long-standing clauses that deny coverage for “hostile or warlike action in time of peace and war” perpetrated by states or their agents.2 War exclusions date back to the 1700s, but they had never before been applied to cyber incidents. This novel use of the war exclusion, still being litigated, has raised doubts about whether adequate or reliable coverage exists for state-sponsored cyber incidents. Some observers have asked whether such incidents are insurable at all, given the potential for aggregated cyber losses even more catastrophic than those of NotPetya.3 And while the war exclusion has attracted the most attention, another exclusion—for terrorism—presents similar challenges to cyber claims.
Topic:: Terrorism, War, Cybersecurity, and Non-Traditional Threats
Political Geography:: Global Focus

588. Enduring Cyber Threats and Emerging Challenges to the Financial Sector

Author:: Adrian Nish, Saher Naumaan, and James Muir
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Cybersecurity is a unique challenge for the financial sector. To prevent massive financial losses, banks and other financial institutions should understand how cyber threat groups could launch complex new cyber attacks. At the time of writing, several financial services firms are working to restore their networks following disruptive cyber attacks. Banks in Chile and Seychelles, as well as financial technology companies like Silverlake Axis, a supplier of core banking systems throughout the Asia-Pacific, are all reportedly victims of separate ransom and extortion attempts. Elsewhere, the threat from cyber criminals triggered a suspension of automatic teller machine (ATM) transactions overnight, and hackers recently knocked websites associated with a stock exchange offline using distributed denial-of-service (DDoS) attacks. Such disruptions not only impact customers of these services, but also undermine the confidence of peers in the financial services community. Regulators have been taking increasing notice of these cyber threats, and operational resilience has shot to the top of agendas around the world. A few years ago, targeted attacks on financial services sector firms were still relatively rare. However, cases have increased in recent years as capabilities and specialisms such as network intrusion have advanced. BAE Systems in partnership with the Carnegie Endowment for International Peace has documented public examples via the Timeline of Cyber Incidents Involving Financial Institutions. This timeline serves as a useful resource in tracking trends, even though public cases are just the tip of the iceberg and the true volume of incidents and near misses is much greater.
Topic:: Security, Finance, Non-Traditional Threats, and Cyberspace
Political Geography:: Global Focus

589. Is the Coronavirus Catalyzing New Civic Collaborations for Open Government?

Author:: Abigail Bellows and Nada Zohdy
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: The pandemic is spurring elite and grassroots civic actors to cooperate more, but the gulf between them remains wide. Civic actors must seize the opportunity for reform on open government issues. From Africa to Latin America to Europe, the coronavirus pandemic has generated a surge in public demand for government transparency and accountability. To seize this window for reform, elite and grassroots civic actors concerned with open governance must overcome the cleavage that has long existed between them. Thus far, the pandemic has catalyzed some new civic collaborations, but not at the scale or depth needed to seize that window. In general, civil society groups report feeling more isolated during the pandemic. In some places, the urgency of tackling open government issues during the pandemic has helped overcome that isolation by deepening partnerships among existing networks. But in other places, those partnerships have yet to take shape, and new alliances are less likely to form without the benefit of face-to-face interactions. Even the partnerships that have crystallized or deepened do not appear to be changing the fundamental roles of elite and grassroots civic actors. It is possible that this shift may happen over time. Or it may be that the pandemic alone is not enough to dislodge structural barriers to deeper cooperation. The pandemic has dramatically changed the operations of elite and grassroots actors alike. The impact of those changes on collaboration between the two depends on preexisting levels of technological capacity. In places with limited connectivity, the pandemic has exacerbated the digital divide, adversely affecting grassroots actors. Meanwhile, in places with good connectivity, technology is enabling broader (though shallower) participation, laying the groundwork for more elite-grassroots collaboration. Although many civil society groups are struggling financially during the pandemic, those effects are mitigated to some degree by continuing donor interest in the open government sector. This is encouraging, as coalition building requires dedicated, flexible resources. Finally, it is a more dangerous time to be working on open government issues in general, and grassroots actors bear disproportionate risks in doing so. This underscores the need for more vertical alliances to mitigate civic space threats.
Topic:: Civil Society, Government, Health, Pandemic, and COVID-19
Political Geography:: Global Focus

590. Research Collaboration on Influence Operations Between Industry and Academia: A Way Forward

Author:: Jacob N. Shapiro, Natalie Thompson, and Alicia Wanless
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Research on influence operations requires effective collaboration across industry and academia. Federally funded research and development centers provide a compelling model for multi-stakeholder collaboration among those working to counter influence operations. Research on influence operations requires effective collaboration across industry and academia. Social media platforms are on the front lines of combating influence operations and possess a wealth of unique data and insights. Academics have rigorous training in research methods and relevant theories, and their independence lends credibility to their findings. The skills and knowledge of both groups are critical to answering important questions about influence operations and ultimately finding more effective ways to counter them. Despite shared interest in studying and addressing influence operations, existing institutions do not provide the proper structures and incentives for cross-sector collaboration. Friction between industry and academia has stymied collaboration on a range of important questions such as how influence operations spread, what effects they have, and what impact potential interventions could have. Present arrangements for research collaboration remain ad hoc, small-scale, and nonstandard across platforms and academic institutions. Federally funded research and development centers (FFRDCs) provide a compelling model for multi-stakeholder collaboration among those working to counter influence operations. Federally funded research institutions—such as the RAND Corporation, the Institute for Defense Analyses, or the MITRE Corporation—have hosted successful cross-sector collaboration between the federal government and academic institutions for more than seventy years. Academic and industry researchers should seek funding and create an analogous institution so the influence operations research community can further collaborative research on shared interests that cannot be addressed with existing models. Drawing from such models, industry would be a primary funder, but governments and philanthropic donors could also contribute to encourage independence and balance.
Topic:: Development, Academia, and Influence
Political Geography:: Global Focus

591. Deepfakes and Synthetic Media in the Financial System: Assessing Threat Scenarios

Author:: Jon Bateman
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Bad actors could use deepfakes—synthetic video or audio—to commit a range of financial crimes. Here are ten feasible scenarios and what the financial sector should do to protect itself. Rapid advances in artificial intelligence (AI) are enabling novel forms of deception. AI algorithms can produce realistic “deepfake” videos, as well as authentic-looking fake photos and writing. Collectively called synthetic media, these tools have triggered widespread concern about their potential in spreading political disinformation. Yet the same technology can also facilitate financial harm. Recent months have seen the first publicly documented cases of deepfakes used for fraud and extortion. Today the financial threat from synthetic media is low, so the key policy question is how much this threat will grow over time. Leading industry experts diverge widely in their assessments. Some believe firms and regulators should act now to head off serious risks. Others believe the threat will likely remain minor and the financial system should focus on more pressing technology challenges. A lack of data has stymied the discussion.
Topic:: Security, Cybersecurity, Artificial Intelligence, and Non-Traditional Threats
Political Geography:: Global Focus

592. Jobs’ Amenability to Working from Home: Evidence from Skills Surveys for 53 Countries

Author:: Maho Hatayama, Mariana Viollaz, and Hernan Winkler
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:: The spread of COVID-19 and implementation of “social distancing” policies around the world have raised the question of how many jobs can be done at home. This paper uses skills surveys from 53 countries at varying levels of economic development to estimate jobs’ amenability to working from home. The paper considers jobs’ characteristics and uses internet access at home as an important determinant of working from home. The findings indicate that the amenability of jobs to working from home increases with the level of economic development of the country. This is driven by jobs in poor countries being more intensive in physical/manual tasks, using less information and communications technology, and having poorer internet connectivity at home. Women, college graduates, and salaried and formal workers have jobs that are more amenable to working from home than the average worker. The opposite holds for workers in hotels and restaurants, construction, agriculture, and commerce. The paper finds that the crisis may exacerbate inequities between and within countries. It also finds that occupations explain less than half of the variability in the working-from-home indexes within countries, which highlights the importance of using individual-level data to assess jobs’ amenability to working from home.
Topic:: Employment, Pandemic, Job Creation, COVID-19, and Hospitality
Political Geography:: Global Focus

593. Motherhood, Labor Market Trajectories, and the Allocation of Talent: Harmonized Evidence on 29 Countries

Author:: Inés Berniell, Lucila Berniell, Dolores de la Mata, María Edo, Yarine Fawaz, Matilde P. Machado, and Mariana Marchionno
Publication Date:: 11-2020
Content Type:: Working Paper
Institution:: Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:: In this paper we assess whether changes in labor market decisions upon motherhood lead to potential inefficient allocations of talent. Using an event study approach with retrospective data drawn from SHARE for 29 European countries we show that motherhood effects go beyond the well studied effects of labor market participation decisions: the arrival of the first child substantially affects the uptaking of alternative modes of employment, such as part-time and self-employment, that are characterized by flexible or reduced work schedules but also lower pay on average. We also show that the size of labor market responses to motherhood are larger in societies with more conservative social-norms or with weak policies regarding work-life balance. To assess the effects of motherhood over the allocation of talent, we explore how labor market responses to parenthood vary by alternative measures of talent or ability. We find that all women, even those with the highest level of ability and abler than their husbands face large motherhood effects, while men show virtually no changes in the labor market when becoming fathers. We also find that mothers who become self-employed after the birth of the first child are those that are less entrepreneurial-able according to cognitive ability and personality traits shown to impair business survival. Overall, our results suggest relevant changes in the allocation of talent caused by gender differences in nonmarket responsibilities that can have sizable impacts on aggregate market productivity.
Topic:: Labor Issues, Children, and Employment
Political Geography:: Global Focus

594. Job loss and household labor supply adjustments in developing countries: Evidence from Argentina

Author:: Matias Ciaschi
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:: Using longitudinal data for Argentina, this paper measures the labor supply reaction of different household members to a breadwinner’s job loss. Firm events and local unemployment shocks are exploited as exogenous sources of variation to estimate the causal effect. Our main findings show that job loss by the male household head has a significant and substantial effect on the labor supply response of other household members, both at the extensive and intensive margin. While we do not find any effect on daughters, female partners and sons increase their labor market participation. The latter are also more likely to drop out from the educational system. These results are stronger among economically vulnerable households.
Topic:: Development, Education, Labor Issues, and Employment
Political Geography:: Global Focus

595. COVID-19 Lockdown and Domestic Violence: Evidence from Internet-Search Behavior in 11 Countries

Author:: Inés Berniell and Giovanni Facchini
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:: We study the impact of the COVID-19 pandemic on domestic violence in 11 countries with different ex-ante incidence of domestic violence (DV) and lockdown intensity. We use a novel measure of DV incidents that allows us to make cross-country com- parisons: a Google search intensity index of DV-related topics. Our difference-in- difference estimates show an increase in DV search intensity after lockdown (31%), with larger effects as more people stayed at home (measured with Google Mobil- ity Data). The peak of the increase in DV appears, on average, 7 weeks after the introduction of the lockdown. While we observe that the positive impacts on DV is a widespread phenomenon, the effect in developed countries is more than twice as strong as in Latin American countries. We show that the difference in impact correlates with the
Topic:: Public Health, Pandemic, COVID-19, and Domestic Violence
Political Geography:: Global Focus

596. Priorities for the UN's Children and Armed Conflict Agenda, 2020

Author:: Liechtenstein Institute on Self-Determination
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Liechtenstein Institute on Self-Determination, Princeton University
Abstract:: Priorities for the UN's Children and Armed Conflict Agenda, 2020 is the final report from LISD's annual workshop co-organized with the NGO Watchlist on Children and Armed, and held on January 29, 2020. The report reflects the discussions from three closed working sessions dedicated to (1) ongoing challenges and concerns impacting the implementation of the CAAC agenda, (2) emerging concerns and trends for the CAAC agenda, (3) the role of Member States in advancing the CAAC agenda through the Security Council Working Group and Group of Friends. A final recommendations section reflects findings from the workshop's wrap-up session which summarized key discussion points and recommendations of the working sessions.
Topic:: Security, United Nations, Children, Conflict, and Armed Conflict
Political Geography:: Global Focus

597. Sovereign debt restructuring: The centrality of the IMF's role

Author:: Sean Hagan
Publication Date:: 07-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: Over the past 40 years, the International Monetary Fund (IMF) has played a central role in the sovereign debt restructuring process. If the COVID-19 pandemic leads to a significant wave of sovereign debt distress, this role will be closely scrutinized. The paper analyzes how IMF policies have evolved to shape the incentives of sovereigns and their creditors at each stage of the sovereign debt restructuring process. It also identifies a number of issues that the IMF will likely have to address as a result of the pandemic, including (1) assessment of debt sustainability in a macroeconomic environment of considerable uncertainty, (2) treatment of official bilateral creditors, and (3) potential benefits—and challenges—of introducing additional incentives to maximize creditor participation in any debt restructuring.
Topic:: Debt, Emerging Markets, Government, International Monetary Fund, Financial Crisis, Macroeconomics, and COVID-19
Political Geography:: Global Focus

598. Public procurement in law and practice

Author:: Erica Bosio, Simeon Djankov, Edward Glaeser, and Andrei Shleifer
Publication Date:: 08-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: This paper examines a new dataset of laws and practices governing public procurement, as well as procurement outcomes, in 187 countries. The authors measure regulation as restrictions on the discretion of the procuring agents. They find that laws and practices are highly correlated with each other across countries, and better practices are correlated with better outcomes, but laws themselves are not correlated with outcomes. To shed light on this puzzle, they present a model of procurement in which both regulation and public sector capacity determine the efficiency of procurement. In the model, regulation is effective in countries with low public sector capacity and detrimental in countries with high public sector capacity because it inhibits the socially optimal exercise of discretion. The paper finds evidence broadly consistent with this prediction: Regulation of procurement improves outcomes but only in countries with low public sector capacity.
Topic:: Government, Law, Regulation, and Procurement
Political Geography:: Global Focus

599. Trade surplus or deficit? Neither matters for changes in manufacturing employment shares

Author:: Robert Z. Lawrence
Publication Date:: 09-2020
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: Many countries have launched industrial policy programs to improve their manufacturing competitiveness based on the idea that countries with larger trade surpluses or smaller deficits in manufacturing will have higher shares of manufacturing employment. And as countries try to generate a recovery from the COVID-19 crisis, these programs are being enlarged. But while the higher productivity in manufacturing that these programs generate may initially increase manufacturing output and expand trade surpluses in manufacturing, it will also reduce the manufacturing jobs required to manufacture those goods for domestic spending and generating the larger trade balances. As a result, the impact on employment is likely to be substantially smaller than might be expected. Improved productivity implies that goods can be manufactured more cheaply using fewer workers, so unless there is high enough demand at home and abroad for the lower-priced or new products that productivity growth generates, any additional jobs created could be substantially lower than might be expected. This is not just a theoretical possibility. Using data from a sample of 60 countries, this paper shows that between 1995 and 2011, on average countries with trade surpluses in manufacturing experienced declines in manufacturing employment shares that were slightly larger than the declines in countries with manufacturing trade deficits. Additionally, the declines in manufacturing employment shares were as large in countries where the manufacturing trade balance moved in a positive direction as in those where it declined. This suggests that even if industrial policies generate larger trade surpluses in manufacturing, they may not succeed in reversing the trend declines in manufacturing employment shares that have persisted in many countries for several decades.
Topic:: Labor Issues, Employment, Manufacturing, Trade Policy, Protectionism, and Trade Deficit
Political Geography:: Global Focus

600. Effects of US Foreign Assistance on Democracy Building, 1990–2014: An Update

Author:: Steven E. Finkel, Aníbal Pérez-Liñán, Michael Neureiter, and Chris A. Belasco
Publication Date:: 06-2020
Content Type:: Working Paper
Institution:: Kellogg Institute for International Studies
Abstract:: This paper updates our earlier work on the impact of US foreign assistance on democratic outcomes in recipient countries using newly available USAID Foreign Aid Explorer data covering the 2001–2014 period, as well as new outcome measures derived from Varieties of Democracy (V-Dem) data. Building on the theoretical and empirical framework established in our previous study and in subsequent work in the field, we estimate: a) the effect of overall USAID Democracy, Human Rights, and Governance (DRG) expenditures on general indices of democracy, b) changes in the effects of DRG expenditures after 2001, and c) the conditions that moderate the impact of DRG funding at the country level in the contemporary era. We find that the effect of DRG expenditures decreased dramatically in the 2002–2014 period, relative to the modest effect shown in the previous study for the period immediately following the end of the Cold War. However, DRG aid remains effective in the current era under favorable conditions. Further analysis demonstrates important conditional effects related to patterns of DRG investment, such that aid has greater impact when levels of security assistance are low (indicating competing priorities) and when prior DRG investment is low (indicating diminishing returns). In addition, DRG is more effective at intermediate levels of democratization and less so in contexts of democratic backsliding.
Topic:: Security, Development, Globalization, Governance, Democracy, and Public Policy
Political Geography:: North America, Global Focus, and United States of America

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