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Begin New Search Political Geography Global Focus Publication Year within 3 Years

581. The Environmental Consequences of Inequality

Author:
James K. Boyce
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Inequality has important consequences for the extent of pollution and natural resource depletion as well as for the distribution of the costs and benefits from environmental degradation. Inequalities in the distribution of purchasing power operate through the market, and inequalities in the distribution of political power operate through governance institutions, often with mutually reinforcing effects.
Topic:
Environment, Political Economy, Natural Resources, Inequality, Justice, and Pollution
Political Geography:
Global Focus

582. Considerations on Inflation, Economic Growth and the 2 Percent Inflation Target

Author:
Robert Pollin and Hanae Bouazza
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper considers two basic questions with respect to inflation control, inflation targeting, and overall macroeconomic performance. The initial question is: what has been the justification in research for establishing an inflation target, and specifically a low inflation rate target of 2 – 3 percent, as the organizing principle and overarching goal of macroeconomic policy? The second question is: do we actually observe stronger macroeconomic performances—as measured in standard terms of GDP growth—when macro policy operates within the framework of such low inflation targets? Our answers to these questions are straightforward. First, no serious body of research has been produced that provides a clear justification for a 2 – 3 percent inflation target as the central goal of macroeconomic policy. Further, there is no body of evidence showing that economies at any level of development consistently experience stronger economic growth outcomes when inflation is maintained at less than 3 percent as opposed to higher inflation rates, certainly within a 4 – 5 percent inflation range and, in some circumstances, somewhat higher rates still. These findings are significant insofar as they open space for considering the set of measures other than contractionary monetary policies as viable inflation control tools. It is possible that these other measures do not operate as forcefully as contractionary monetary policy in bringing inflation down to a 2 – 3 percent target range. But our findings suggest that it is not typically necessary to force down inflation to such low levels, especially given that contractionary monetary policies succeed in controlling inflation primarily through the channel of raising mass unemployment and weakening workers’ bargaining power.
Topic:
Economic Growth, Inflation, and Macroeconomics
Political Geography:
Global Focus

583. Inconsistent Definitions of GDP: Implications for Estimates of Decoupling

Author:
Gregor Semieniuk
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Efforts to assess the possibilities for decoupling economic growth from negative environmental impacts have examined their historical relationship, with varying and inconclusive results. Part of the problem is ambiguity about definitions of environmental impacts, e.g. whether to use territorial or consumption-based measures of environmental impact. This paper shows that ambiguities arising from definitional changes to GDP are sufficiently large to affect the outcomes. I review the history of structural revisions to GDP using the example of the United States, and on international comparisons of purchasing power parity, compare decoupling results using various historical definitions of GDP on the same environmental indicator, and demonstrate that changing the GDP data vintage does impact decoupling results in qualitatively important ways, with and without purchasing power parity. Inconsistencies in economic measurement introduce an additional layer of ambiguity into historical decoupling evidence and model projection into the future. To advance debate and be clear about scenario assumptions, rigorous reporting of GDP definitions used and the sharing of data vintage for subsequent comparison and replication are urgently needed.
Topic:
Environment, Political Economy, GDP, and Economic Growth
Political Geography:
Global Focus

584. The Price of Speculation: Cryptocurrencies and Climate Change

Author:
Izaura Solipa and Gerald Epstein
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Cryptocurrencies are a form of digital currency whose popularity has rapidly increased over the past decade. What distinguishes them from other electronic currencies is their underlying technology known as the blockchain, a decentralized public ledger in which transactions among the network peers are accurately and securely recorded. The validation and mining process, where new coins are issued, is highly computationally intensive and thus requires vast amounts of energy. The literature estimates energy consumption levels of the cryptocurrency mining to be as high as those of countries such as Angola, Iceland or Cuba, and a corresponding emission of at least 3-15 million tons of CO2. We discuss these estimated impacts of Bitcoin and other cryptocurrencies on both energy levels and the environment, and then outline alternative applications that could promote climate change mitigation. We argue that despite the latter applications and the possible benefits from the technology, particularly in the energy sector, the financial uses of blockchain are creating significant environmental costs without any clear social or economic benefit stemming from this largely speculative activity.
Topic:
Climate Change, Science and Technology, Economy, Cryptocurrencies, Blockchain, Digital Currency, and Speculation
Political Geography:
Global Focus

585. Environmental Justice and Carbon Pricing

Author:
James K. Boyce, Michael Ash, and Brent Ranalli
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Opposition to carbon pricing has come not only from the fossil fuel lobby, as might be expected, but also from environmental justice (EJ) advocates who seek to end the disproportionate environmental harms imposed upon people of color and low-income communities, and who fear that carbon pricing could reinforce rather than remedy pollution exposure disparities. This paper focuses on the objections to carbon pricing that EJ advocates have raised. They argue that carbon pricing (i) fails to reduce emissions significantly, (ii) fails to reduce the disproportionate impacts of hazardous co-pollutants on people of color and low-income communities; (iii) hits low-income households harder than richer households; and (iv) commodifies nature. This paper discusses how carbon pricing can be designed to address these very real concerns.
Topic:
Environment, Inequality, Justice, Fossil Fuels, and Carbon Emissions
Political Geography:
Global Focus

586. How to respond to nuclear blackmail

Author:
Yagil Henkin and Alexander Grinberg
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Reliable deterrence is a vital interest of the West, and developing a strategy for reliable deterrence without escalation is also essential. The West could prevent escalation if it manages it carefully and with determination and credibility.
Topic:
Security, Defense Policy, Military Strategy, and Deterrence
Political Geography:
Global Focus

587. Is Foreign Direct Investment Losing Clout in Development?

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

588. International Democracy Promotion in Times of Autocratization: From Supporting to Protecting Democracy

Author:
Julia Leininger
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The worldwide wave of autocratization is doing away with many of the democratic achievements made since 1989. Scholarship on international democracy promotion is yet to theorise how democracy can be protected from autocratization. Such a theory must account for different democratic and autocratic trajectories as well as integrate theoretical approaches from international relations and comparative politics in the study of democracy promotion. However, such a combined perspective is still missing. One reason for this is that the field lacks a clear concept of “protection” and does not yet systematically integrate evidence from democratization research. This paper addresses this research gap. It is the first attempt to develop a concept theory of democracy promotion, which includes support and protection of democracy. Coupling this with a depiction of six phases of regime change, this paper makes a second contribution: based on the proposed conceptual and theoretical integration, it generates a series of testable anchor points for further empirical analysis on what strategies are most likely to be effective during the various phases of regime change.
Topic:
International Relations, Democratization, Regime Change, Democracy, and Autocracy
Political Geography:
Global Focus

589. Determinants of Social Cohesion: Cross-Country Evidence

Author:
Yabibal M. Walle
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Noting that few studies to date have investigated the determinants of social cohesion in a comprehensive and systematic manner, this paper examines the macro-level determinants of social cohesion using a panel of up to 92 developing and developed countries for the period 1990–2020. Employing the system GMM dynamic panel data estimator, which addresses endogeneity concerns by means of internal instruments, I find that the levels of education, government size, globalisation, and economic development have significantly positive effects on most dimensions of a country’s social cohesion. In contrast, inflation, corruption and income inequality are detrimental to social cohesion.
Topic:
Corruption, Development, Income Inequality, Inflation, and Social Cohesion
Political Geography:
Global Focus

590. Rising Apprehensions

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