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  • Author: Louise Van Schaik, Camilla Born, Elizabeth Sellwood, 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, Sustainability
  • Political Geography: Global Focus
  • Author: David Deming
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Science, Technology, Engineering, and Math (STEM) jobs are a key contributor to economic growth and national competitiveness. Yet STEM workers are perceived to be in short supply. This paper shows that the “STEM shortage” phenomenon is explained by technological change, which introduces new job skills and makes old ones obsolete. We find that the initially high economic return to applied STEM degrees declines by more than 50 percent in the first decade of working life. This coincides with a rapid exit of college graduates from STEM occupations. Using detailed job vacancy data, we show that STEM jobs change especially quickly over time, leading to flatter age-earnings profiles as the skills of older cohorts became obsolete. Our findings highlight the importance of technology-specific skills in explaining life-cycle returns to education, and show that STEM jobs are the leading edge of technology diffusion in the labor market.
  • Topic: International Organization, International Political Economy, Science and Technology, Labor Issues
  • Political Geography: Global Focus
  • Author: Will Dobbie
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: We estimate the causal effects of parental incarceration on children’s short- and long-run outcomes using administrative data from Sweden. Our empirical strategy exploits exogenous variation in parental incarceration from the random assignment of criminal defendants to judges with different incarceration tendencies. We find that the incarceration of a parent in childhood leads to a significant increase in teen crime and significant decreases in educational attainment and adult employment. The effects are concentrated among children from the most disadvantaged families, where criminal convictions increase by 10 percentage points, high school graduation decreases by 25 percentage points, and employment at age 25 decreases by 29 percentage points. In contrast, there are no detectable effects among children from more advantaged families. These results suggest that the incarceration of parents with young children may significantly increase the intergenerational persistence of poverty and criminal behavior, even in affluent countries with extensive social safety nets.
  • Topic: International Political Economy, International Affairs, Prisons/Penal Systems
  • Political Geography: Global Focus
  • Author: Will Dobbie
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This paper tests for bias in consumer lending using administrative data from a high-cost lender in the United Kingdom. We motivate our analysis using a new principal-agent model of bias, which predicts that profits should be higher for the most illiquid loan applicants at the margin if loan examiners are biased. We identify the profitability of marginal applicants using the quasi-random assignment of loan examiners. Consistent with our model, we find significant bias against immigrant and older applicants when using the firm’s preferred measure of long-run profits, but not when using the short-run measure used to evaluate examiner performance. Keywords: Discrimination, Consumer Credit
  • Topic: Debt, International Political Economy, International Affairs
  • Political Geography: Global Focus
  • Author: James M Dorsey
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: The Begin-Sadat Centre for Strategic Studies (BESA)
  • Abstract: EXECUTIVE SUMMARY: Much of the Middle East’s recent turmoil stems from internecine Middle Eastern rivalries spilling onto third country battlefields and Saudi and UAE-led efforts to roll back the achievements of the 2011 popular Arab revolts and pre-empt further uprisings. The recent successful toppling of ailing Algerian president Abdelaziz Bouteflika and months of anti-government demonstrations that have put Sudanese leader Omar al-Bashir on the defensive suggest that the Saudi-UAE effort may be faltering.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Israel
  • Author: Joseph Halevi
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: The paper highlights the position of German authorities, showing that they were quite lucid about the fundamental weaknesses inherent in a process that separated monetary from fiscal policies by giving priority to the centralization of the former. Instead of repeating the well known critiques levelled against the EMU – for which readers are referred to the unsurpassed treatment by Stiglitz, the essay highlights the splintering of Europe in the way in which it has unfolded during the 1990s and in the first decade of the present millennium. In particular the early economic and political origins of the terminal crisis of Italy are located between the late 1980s and the 1990s. France is shown to belong increasingly to the so-called European periphery by virtue of a weakening industrial structure and persistent balance of payments deficits. The paper argues that France regains its central role by political means and through its weight as an active nuclear military power centered on maintaining its imperial interests and posture especially in Africa. The first decade of the present millennium is portrayed as the period in which a distinct German economic area had been formed in the midst of Europe with a strong drive to the east with an increasingly powerful gravitational pull towards the People’s Republic of China.
  • Topic: Economics, International Political Economy, Political Economy, History, Macroeconomics
  • Political Geography: Africa, China, Europe, Asia, Germany, Global Focus
  • Author: Kai Gehring, Lennart C. Kaplan, Melvin H.L. Wong
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: Empirical Studies of Conflict Project (ESOC)
  • Abstract: China’s development model challenges the approaches of traditional Western donors like the World Bank. We argue that both aim at stability, but differ in the norms propagated to achieve that. Using fixed effects and IV estimations, we analyze a broad range of subnational stability measures in Africa. Aid by both the WB and China does not increase outright conflict nor any type of citizen protest, on average. Both even reduce outright conflict by governments against civilians. Still, Chinese aid is associated with more government repression and an increased acceptance of authoritarian norms, while WB projects strengthen democratic values.
  • Topic: Development, International Political Economy, Political Economy, World Bank, Developing World
  • Political Geography: Africa, China
  • Author: Ana Karen Negrete-García
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper investigates the existence and nature of constraints prevailing among Mexican microenterprises. It provides inter‐temporal insights by relying on firm‐level data span‐ning from 1994 to 2012. A performance index is defined based on firm levels of capital stock and monthly profits, and is used to estimate the empirical probability of a business’s success. The predicted values are used to classify every microenterprise into one of three categories: upper, middle, or lower segment. Overall, the study provides evidence of con‐ strained productivity and capital misallocation. Specifically, middle‐segment firms exhibit entrepreneurial features and their average marginal returns are 15 percent. Because this segment faces mainly external constraints, cost‐effective interventions are plausible. Re‐garding the lower‐segment firms, it is estimated that their average monthly marginal re‐ turns are 30 per cent, compared to 1 per cent for the upper segment. It is also shown that, over time, the share that middle‐segment firms represent relative to all microenterprises increased from 16 to 22 percent. Lastly, the sources of variation in monthly profits among segments are explored using the Oaxaca‐Blinder decomposition method.
  • Topic: International Political Economy
  • Political Geography: Mexico
  • Author: Ville Sinkkonen, Mika Aaltola
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: Donald Trump’s first year as President has been marked by continuity in US security policy, a partial challenge to the global principles of free trade, and a sea change in commitments to the liberal international order. These reflect a view of the international system as a zero-sum competitive realm.
  • Topic: International Political Economy, Political Theory, Capitalism
  • Political Geography: Global Focus
  • Author: Maria Demertzis, Stavros Zenios
  • Publication Date: 04-2018
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: Since the financial crisis, EU countries' economies have recovered to the point that they are exiting their adjustment programmes. Institutional stability mechanisms have been improved at the European level, with the promotion of the banking union and the establishment of a European Monetary Fund, for instance. However, the authors argue that such crisis contingencies should include markets in their risk-sharing, which would require better coordination with institutions.
  • Topic: International Political Economy
  • Political Geography: Europe