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22. Formula for a Crisis: Protectionism and Supply Chain Resiliency—the Infant Formula Case Study
- Author:
- Scott Lincicome, Gabriella Beaumont-Smith, and Alfredo Carrillo Obregon
- Publication Date:
- 01-2023
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- It has become accepted wisdom in Washington that the COVID-19 pandemic revealed how openness to international trade and investment increases U.S. vulnerability to economic shocks and contributes to widespread shortages of food, medicine, and other essential goods. This official narrative, however, ignores ample economic research showing that, while disruptions are inevitable in a modern economy, the alternative to free trade—a protectionism‐driven onshoring of global supply chains—carries its own risks and can even heighten vulnerability by inhibiting natural market adjustments to economic shocks. The infant formula crisis, which lasted for most of 2022 and was unique to the United States, provided an unfortunate real‐world lesson in this regard.
- Topic:
- International Trade and Finance, Free Trade, Resilience, COVID-19, and Supply Chains
- Political Geography:
- North America and United States of America
23. The Persistent Consequences of the Energy Transition in Appalachia’s Coal Country
- Author:
- Eleanor Krause
- Publication Date:
- 03-2023
- Content Type:
- Policy Brief
- Institution:
- Belfer Center for Science and International Affairs, Harvard University
- Abstract:
- The persistence and intensification of earnings, employment, and opportunity gaps across place has become an increasingly salient feature of the United States economy over the past several decades.1 This economic divergence has occurred alongside a remarkable transition away from coal-fired electricity that is expected to continue as lower-carbon energy sources become more economically viable. While essential to minimizing the damages of climate change, the shift poses significant challenges to the relatively rural and distressed communities traditionally reliant on this resource. Indeed, many historically coal-dependent communities in Central Appalachia have long been characterized by deep poverty, limited employment opportunities, and high rates of public assistance, and recurrent adverse shocks to coal employment over the past several decades have amplified many of these qualities, potentially elevating the risks associated with the energy and economic shifts ahead. How have Appalachia’s coal-dependent communities adjusted to historical and contemporary declines in demand for coal, and how do these shocks – and their consequences for the educational composition of affected communities – influence the capacity for future generations to adapt to new challenges? In this policy brief, I present estimates of how Appalachia’s coal country has adjusted to recent declines in coal mining employment (“coal shocks”), and I demonstrate how this adjustment process is, in part, dictated by the persistent consequences of historical employment shocks in Appalachia. The evidence suggests that recent coal shocks (i.e., declines in coal employment occurring between 2007 and 2017) have been relatively painful for affected communities, causing large reductions in local population sizes, declines in local employment counts, declines in earnings, and increases in the rate of government transfer receipt. All of these adjustment costs are more severe in counties with a history of “selective migration” induced by shifting employment opportunities in the 1980s. That is, the estimated effect of recent coal shocks on population sizes, employment, earnings, and transfer payments is significantly larger in counties that lost greater numbers of their college-educated adults in the 1980s thanks to historical employment shocks in proximate labor markets. The upshot is that coal-dependent communities may demonstrate little resilience to recent coal shocks in part because of the persistent consequences of historical shocks, which fundamentally altered the educational composition of affected communities. By dramatically reducing the number of college-educated individuals living in a community, adverse shocks have the capacity to put places on a pathway of decline that makes it more difficult to adapt to economic shifts in subsequent generations. These insights preview the potentially damaging implications of future contractions in the coal industry, revealing the need for greater empirical investigation of the types of policy efforts that might ameliorate the painful local adjustment costs associated with the energy transition going forward.
- Topic:
- Climate Change, Employment, Coal, and Energy Transition
- Political Geography:
- North America, United States of America, and Appalachia
24. Decentralized Autonomous Organizations and Policy Considerations in the United States
- Author:
- Sarah Hubbard
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- Belfer Center for Science and International Affairs, Harvard University
- Abstract:
- Decentralized Autonomous Organizations (DAOs) can be defined as global, digitally-native organizations which enable people to coordinate and govern shared resources and activities through the use of smart contracts on blockchains. The explosive growth of DAOs since 2020 has led to experimentation, speculation, and investment in this emerging organizational framework. There are an estimated 6,000 DAOs as of June 2022, with participation from contributors around the world and an aggregate treasury value of an estimated $25 billion. While the web3 space has been marred by scams and bad actors, there are legitimate use cases for DAOs. Early applications include focuses on fractionalized ownership and control, incentive alignment, resilient operations, and collective action. DAOs demonstrate innovative potential and are producing new forms of tax revenue and employment for the U.S. States have taken various approaches towards legislation, including establishing a DAO LLC. The U.S. government needs a comprehensive strategy for addressing DAOs as novel organizational structures to retain domestic innovation and protect consumers. Future policy solutions should consider the following: DAOs have technical and operational uniqueness that should be taken into account by legislators and regulators. The United States must provide legal clarity to retain domestic innovation. The friction of existing organizational formation should be reduced and adapted. A multi-pronged approach is needed across the federal-level, state-level, and industry self-governance practices. This report aims to serve as an accessible primer for United States policymakers to understand the unique opportunities and challenges DAOs present, and how these organizations may be addressed in the regulatory landscape of the U.S. The first section of this report establishes the societal context in which DAOs have emerged, with an emphasis on the trends in organizational frameworks and working conditions to which DAOs respond. The second section describes the underlying technical and structural components that DAOs are built upon. The third section outlines the key purposes and applications of DAOs and shares findings from case studies and semi-structured interviews with 12 DAOs and 20 DAO contributors. The final section provides an overview of existing legislation and concludes by outlining directional considerations for policymakers.
- Topic:
- Decentralization, Autonomy, and Cyberspace
- Political Geography:
- North America and United States of America
25. The Science of Rapid Climate Change in Alaska and the Arctic: Sea Ice, Land Ice, and Sea Level
- Author:
- John P. Holdren
- Publication Date:
- 08-2023
- Content Type:
- Policy Brief
- Institution:
- Belfer Center for Science and International Affairs, Harvard University
- Abstract:
- The Earth’s surface north of the Arctic Circle, which includes nearly a third of Alaska, is warming 3-4 times faster than the global average.1 Alaska as a whole is warming twice as fast as the lower 48 states.2 As is true for most of the manifestations of anthropogenic climate change, moreover, the extremes of temperature are growing faster than the averages: the highest-ever temperature north of the Arctic Circle—100.4°F—was recorded in Verkhoyansk, Siberia, in June 2020;3 Anchorage reached an all-time high of 90°F on July 4, 2019;4 and Utqiavgik, Alaska, the northernmost U.S. city, reached an all-time winter high of 40°F in December 2022.5 The reasons warming is so fast in the Far North are quite well understood scientifically. The most important factor is the ice-snow-albedo feedback, in which warming reduces the area of land and water covered by ice and snow, which means less reflectivity and more absorption of incident solar energy at the surface, hence further warming.
- Topic:
- Climate Change, Environment, Carbon Emissions, and Sea Ice
- Political Geography:
- North America, Alaska, Arctic, and United States of America
26. China's response to the US tech war: The closing of detours
- Author:
- Yang Jiang
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- In the US-China rivalry, no battle is currently more fierce than the one over technology, with both countries ramping up efforts to pursue global technological leadership. The tech war has intensified under President Joe Biden, with the US’s strangling of China’s technological bottleneck getting tighter and tighter. The US’s stated aims are protecting its national security and foreign policy interests and preventing sensitive technologies with military applications from being acquired by China. Some analysts point to Beijing’s Made in China 2025 as the trigger of the tech war because that is China’s plan to upgrade manufacturing and seek the top positions in global value chains. The US is pursuing a strategy to outcompete and outmanoeuvre China, as is stated in the Biden administration’s National Security Strategy in October 2022: “this decade will be decisive, in setting the terms of our [the US’s] competition with the PRC”. Especially in the sector of semiconductors or chips, where the West controls China’s access to the most advanced technology, US restrictions and its ability to bring its allies into line have been destructive to China’s development. On 21 May 2023, Beijing’s ban of American chipmaker Micron from critical information infrastructure in China signals a first direct retaliation from Beijing. China has also realised that some of its hitherto measures—turning to alternative sources of import, utilising policy loopholes, and sufficing with lower-level technology—are just detours. They are not long-term solutions; nor can they be the foundation of China’s national security. The US restrictions have forced China to adopt new measures to accelerate domestic innovation with more focus on basic research and market forces. How the tech war will play out has important implications for Western countries and global supply chains. This policy brief will focus on China’s responses to the US-waged tech war, specifically: What have been China’s domestic measures to respond to the tech restrictions from the US, and what is China’s potential for technological breakthrough? What have been China’s international responses, and what are China’s options for retaliation?
- Topic:
- Science and Technology, Sanctions, Strategic Competition, Rivalry, and Supply Chains
- Political Geography:
- China, Asia, North America, and United States of America
27. De-escalation Efforts: What Tehran wants from a prisoner swap deal with Washington?
- Author:
- FARAS
- Publication Date:
- 08-2023
- Content Type:
- Policy Brief
- Institution:
- Future for Advanced Research and Studies (FARAS)
- Abstract:
- US National Security Council Spokesperson Adrienne Waston, in a statement on August 10, 2023, affirmed that Iran has released from prison five Americans who were detained and has placed them on house arrest. US citizens Siamak Namazi, Morad Tahbaz, Emad Shargi, and two others were released from Tehran’s notorious Evin prison to house arrest. The US official described their release as “an encouraging step” and stressed that Washigton will continue efforts to bring them “all back home in the United States.”
- Topic:
- Foreign Policy, Nuclear Weapons, Treaties and Agreements, Sanctions, and Regional Politics
- Political Geography:
- Iran, Middle East, North America, and United States of America
28. Cautious Pragmatism: What is thе potential outcome of Washington's approach to thе Nigеr crisis?
- Author:
- FARAS
- Publication Date:
- 08-2023
- Content Type:
- Policy Brief
- Institution:
- Future for Advanced Research and Studies (FARAS)
- Abstract:
- On August 8, 2023, US Sеcrеtary of Statе Antony Blinkеn announcеd that diplomacy is thе prеfеrrеd way of rеsolving thе crisis causеd by thе coup in Nigеr. Following thе coup on July 26, US National Security Advisor Jake Sullivan strongly condemned any effort to detain or subvert thе functioning of Nigеr's dеmocratically еlеctеd govеrnmеnt, led by President Mohamеd Bazoum. Thеsе statements reflect thе ambiguity of Washington's stance regarding thе crisis in Nigеr.
- Topic:
- Foreign Policy, Diplomacy, Counter-terrorism, Crisis Management, Coup, and Strategic Interests
- Political Geography:
- Africa, Niger, and United States of America
29. Cluster Bombs: What is the potential impact of American weapons on Ukraine’s counteroffensive?
- Author:
- FARAS
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- Future for Advanced Research and Studies (FARAS)
- Abstract:
- The US Department of Defense officially announced on July 7, 2023, that the US would provide cluster bombs to Ukraine as part of a new military assistance package to support Kyiv in its counteroffensive against Russia. Cluster munitions are weapons that consist of a container that opens in mid-air to scatter up to 600 explosive submunitions or bomblets over a wide area. Most of these weapons are known for their lack of precision guidance, meaning they are not individually directed toward specific targets. Estimates suggest that these weapons' failure rate (dud rate) during conflicts ranges from 10% to 40%, posing a significant risk to civilians, especially because they can explode later upon contact or movement.
- Topic:
- Weapons, Military Aid, Russia-Ukraine War, and Cluster Bombs
- Political Geography:
- Russia, Europe, Ukraine, and United States of America
30. A Surprising Shift: Is Somalia choosing Moscow over Washington?
- Author:
- FARAS
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- Future for Advanced Research and Studies (FARAS)
- Abstract:
- Somali Foreign Minister Abshir Omar Jama made a surprise visit to Moscow on May 26, 2023, to meet with several Russian officials, including his counterpart Sergey Lavrov. His visit raised several questions regarding motives and implications, particularly in light of the Russian top diplomat’s statements about Russia’s readiness to supply Mogadishu with the necessary military equipment for its ongoing war against the terrorist group Al-Shabaab.
- Topic:
- Foreign Policy, Engagement, Al-Shabaab, and Military Aid
- Political Geography:
- Africa, Russia, Somalia, and United States of America