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41. Ghana’s Pathway to AI Governance and Its Implications for Africa

Author:
Thompson Gyedu Kwarkye
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Artificial intelligence (AI) is transforming various sectors, offering the opportunity for economic growth and societal progress in Africa. However, it poses several risks that may disproportionately impact the continent. African countries are developing governance frameworks to navigate these concerns. Ghana’s 10-year National Artificial Intelligence Strategy emphasizes innovation, talent development and addressing AI-related risks through ethical and regulatory frameworks. It integrates several ethical dimensions to provide a test case for others on the continent. African governments must adopt a more human-centric governance approach, invest in local talent and foster inclusive AI development to avoid technological dependency while mitigating AI risks and maximizing its benefits. The dominance of AI by major technology companies highlights disparities between the more prosperous and resource-poor African countries. Bridging these gaps is crucial to ensuring that Africa can influence the future trajectory of AI development.
Topic:
Development, Governance, Economic Growth, and Artificial Intelligence
Political Geography:
Africa and Ghana

42. Strengthening Health System Response to Sexual Violence in Afghanistan

Author:
Barbara Buckinx, Charu Lata Hogg, and Ila Prabhuram
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Liechtenstein Institute on Self-Determination, Princeton University
Abstract:
This policy report summarizes insights from a workshop organized by the Liechtenstein Institute on Self-Determination (LISD) at Princeton University on November 5, 2024. The workshop, titled “Strengthening Health System Response to Sexual Violence in Afghanistan,” was co-organized by All Survivors Project (ASP) and cosponsored by the SPIA Afghanistan Policy Lab and the Center for Health and Wellbeing, and was held under the Chatham House Rule.
Topic:
Women, Sexual Violence, Public Health, and Healthcare System
Political Geography:
Afghanistan and South Asia

43. Eight Principles for the 2025 Tax Policy Debate (that Republicans and Democrats Should Be Able to Agree On)

Author:
Kimberly A. Clausing
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
The Tax Cuts and Jobs Act, which Congress passed in 2017, came with a built-in policy time bomb—several of the more popular provisions are set to expire on the last day of 2025. These tax cut expirations limited the cost of the law to meet the requirements of the budget reconciliation process and thereby avoid being blocked by a Senate filibuster. The bill's architects deliberately made the less popular provisions (corporate tax cuts) permanent, but they wagered that the more popular individual tax cuts could be extended when the time came. That time has arrived. Yet Congress faces daunting challenges in extending the expiring tax cuts this year, including their high costs, competing fiscal priorities, a fractious Republican caucus with narrow House and Senate majorities, and President Trump's mercurial demands. As the 2025 tax policy debate moves forward, Clausing offers eight principles that both parties should be able to agree on. Of course, actual agreement on these principles is far from likely in today's political environment. Still, she suggests "middle of the road" positions for those who would resuscitate bipartisan tax policy cooperation.
Topic:
Budget, Domestic Politics, Tax Systems, and Fiscal Policy
Political Geography:
North America and United States of America

44. Destined for Division? US and EU Responses to the Challenge of Chinese Overcapacity

Author:
Salih Bora, Mary Lovely, and Luis Simón
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Heightened concerns about China’s exports have intensified competitive pressures on producers and compelled American and European policymakers, government officials, and political leaders to try to counteract those concerns. President Donald Trump’s decision to raise tariffs on China by 145 percent is the most recent—and arguably most dramatic—example of broader concerns about Chinese overcapacity. The clash with China is particularly evident in sectors that US and European leaders have deemed essential for growth and security, charging that Chinese industrial subsidies, rather than comparative advantage, are the basis for the country’s export success. However, the European Union and the United States have taken different approaches to resolve tensions with China. The European Union seeks, at least for now, to preserve and adhere to global trading rules. By contrast, the United States has acted unilaterally (even before the second Trump administration) to defend its domestic production by engaging in a trade confrontation with China that, together with China’s retaliation, has rattled global financial markets. This Policy Brief explores these EU-US divisions, their reflection on trade and industrial policy, and prospects for coordinated action against Chinese overcapacity. The authors argue that the European Union can take the lead toward a resolution within the rules-based system while maintaining an open door to future US participation.
Topic:
European Union, Tariffs, Exports, and Donald Trump
Political Geography:
China, Europe, North America, and United States of America

45. Alignment or Misalignment? US and EU High-Tech Trade and Sanctions Policies toward China

Author:
Antonio Calcara and Jeffrey J. Schott
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This Policy Brief focuses on the alignment or misalignment of the European Union and the United States on high-technology trade and sanctions vis-à-vis China. The Trump administration is likely to continue the aggressive US stance toward China in the technological realm, putting increasing pressure on its European allies to align with US policy. The Europeans, for their part, are in a difficult position: On the one hand, they are under pressure from the US government; on the other hand, the more Washington restricts Chinese trade, the more Chinese exporters will look to the European market to sell their manufactured goods. Increased competition from Chinese imports in Europe, especially in the automotive sector, could in turn trigger a political backlash that weakens support for transatlantic coordination on China.
Topic:
Science and Technology, Sanctions, European Union, Trade Policy, and Imports
Political Geography:
China, Asia, United States of America, and European Union

46. Significant, but Not Systemic: The Challenge of China’s Efforts to Rival Western Financial Predominance

Author:
Martin Chorzempa and Lukas Spielberger
Publication Date:
05-2025
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Despite worldwide concerns about the US dollar, the Chinese renminbi is not yet ready to be a serious contender for leading international currency status. This Policy Brief examines three of the most important Chinese approaches to increasing the renminbi’s role as an international settlement currency: promote bilateral swap agreements between the People's Bank of China and other central banks; create international payment systems that do not involve the dollar, most notably the Cross-Border Interbank Payment System; and develop a central bank digital currency for alternative payment infrastructures. The authors find that Beijing’s efforts fall short of posing a systemic challenge to the dollar or to infrastructures like SWIFT. Nevertheless, these approaches have enabled China to use its currency for bilateral foreign policy. US and European policymakers should consider countering or attenuating these efforts, even though they have had limited success in increasing renminbi usage.
Topic:
Foreign Policy, Central Bank, Currency, Digital Currency, and SWIFT
Political Geography:
China and Asia

47. Addressing Climate-Induced Loss and Damage in South Coastal Bangladesh: Bridging Local Insights and National Policy Interventions

Author:
International Centre for Climate Change and Development (ICCCAD)
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
International Centre for Climate Change and Development (ICCCAD)
Abstract:
This policy brief captures the key findings from Loss and Damage Policy Labs (LDPLs), a series of local and multi-level national policy dialogues held in Bangladesh in 2024. The LDPLs involved diverse stakeholders seeking to address climate-induced loss and damage (L&D) in Bangladesh, by fostering community-driven approaches and connecting local needs with the national policy landscape. The brief emphasizes local experiences in Bangladesh, particularly in its southern belt. It illustrates a case study from Barisal Division, which is representative of the wider vulnerable coastal region of Bangladesh. Addressing the climate risks threatening Bangladesh and its coastal region specifically requires a cohesive, inclusive, and evidence-based approach that integrates local perspectives into national frameworks while addressing both economic and non-economic loss and damage (NELD). Priorities include fostering community-driven, gender-sensitive solutions, enhancing capacities through training and robust assessment frameworks, and strengthening access to global climate finance through innovative mechanisms and transparent processes. By aligning local capacities, national policies, and international commitments and advocating for equitable support on global platforms, Bangladesh can pioneer effective climate resilience strategies, and serve as a model for other vulnerable nations.
Topic:
Climate Change, Climate Finance, Resilience, and Dialogue
Political Geography:
Bangladesh and South Asia

48. US interests can benefit from stronger congressional ties with the Caribbean

Author:
Wazim Mowla and Maite Gonzalez Latorre
Publication Date:
06-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The Caribbean’s geographic proximity to the United States—as well as its use as a transit point for US citizens, goods, and financial services—makes it a crucial hub for US national interests. However, the relationship has suffered from inconsistent and infrequent assistance. Changes in US policy priorities bring ever-changing adjustments to US engagement, leaving the Caribbean, its leadership, and its institutions with insufficient time to benefit from US policy action. For Caribbean countries, policy continuity is critical for implementation and to see tangible and meaningful development. The region’s small populations and markets, vulnerability to natural disasters and changing global commodity prices, and limited institutional capacity slow the pace of receiving and utilizing development assistance and support. Underpinning US-Caribbean ties with stronger US congressional engagement can provide needed longevity to the relationship. Congressional actions—like newly appropriated resources and committee hearings—can bring tangible benefits to US-Caribbean relations.
Topic:
Security, Environment, Politics, and Economy
Political Geography:
Caribbean, North America, and United States of America

49. Building a path toward global deployment of fusion: Nonproliferation and export considerations

Author:
Sachin Desai, Michael Hua, Amy Roma, Jessica Bufford, Jacqueline Siebens, and Andrew Proffitt
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Commercial fusion is on the horizon, with many experts arguing that fusion power plants could put electrons on the grid by the end of this decade. However, there are questions around the process for regulating fusion power plants. In this Atlantic Council issue brief, authors Sachin S. Desai, Michael Y. Hua, Amy C. Roma, Jessica A. Bufford, Jacqueline E. Siebens, and J. Andrew Proffitt explore pathways to address regulation, nonproliferation, and export considerations for fusion technologies. They argue that fusion power plants should be regulated in a pathway that is separate from the regulatory pathways established for fission reactors, especially since the materials and processes involved in fusion power plants are significantly different from fission reactors.
Topic:
Geopolitics, Nonproliferation, Exports, Renewable Energy, Nuclear Energy, Energy, and Energy Transition
Political Geography:
Global Focus

50. Issue brief: A NATO strategy for countering Russia

Author:
Ian Brzezinski
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Russia is the most direct and significant threat to the security of NATO member states—and since Moscow’s invasion of Georgia in 2008 this threat continues to grow. It now encompasses the war in Ukraine, the militarization of the Arctic, hybrid warfare, and violations of arms control treaties. While NATO holds a significant advantage over Russia in military and economic power, an effective and unified strategy is needed to counter Russia’s aggression and fully harness the Alliance’s collective capabilities. To effectively counter Russia, NATO must defeat Russia in Ukraine, deter Russian aggression against NATO allies and partners, contain Russian influence beyond its borders, and degrade Russia’s ability and will to accomplish its revisionist agenda. That will require, among other actions, a significant increase of support and commitment to Ukraine’s defense against Russia, and a more robust Alliance force posture including the modernization of its nuclear deterrent, the permanent stationing of brigade elements along NATO’s eastern frontier and increased defense industrial capacities.
Topic:
Defense Policy, NATO, Intelligence, International Organization, National Security, Science and Technology, Cybersecurity, Deterrence, Resilience, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

51. From Tunis to Baghdad: Can platform-based politics take root?

Author:
Carrie Schenkel and James Storen
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The organization of political parties has served multiple distinct roles in the Middle East and North Africa (MENA). In many cases, regimes use them to create a light veneer of democratic legitimacy for authoritarianism; in other cases, parties exist to represent one identity group or are centered around a singular individual. In rare cases, but with a few successful examples, parties exist to represent an ideology. Rarer still, but key to the future democratic success of the region, are true platform-based parties. Vacuums of political leadership have developed due to the limited role parties play in shaping governance, representation, and public policy. In a rapidly changing region, the opportunity for effective, issues-based parties has never been more evident. Iran’s proxies in the region have been significantly weakened and the “Axis of Resistance” dismantled, presenting openings for new political leadership to emerge. Political parties are not yet poised to meet the moment. In much of the region, long histories of implicit and explicit bans and one-party dominance have left political parties weak, unpopular, and ineffective. Extended periods of suppression and restriction—such as Jordan’s thirty-year party ban, Iraq’s decades of one-party rule under Saddam Hussein, and Tunisia’s twenty-three years of party bans during the Ben Ali era—have resulted in political parties that lack both organizational capacity and broad public appeal. Rather, they are fragmented, ideologically vague, and centered around individuals rather than coherent platforms. The proliferation of political parties—more than 220 are currently registered in Tunisia, for example—has further undermined any sense of clear policy platforms and the ability to differentiate one party from another. Rather than reforming or uniting under existing frameworks, disillusioned members frequently break away to form new parties, stymieing coalition-building and the development of rooted, comprehensive party ideologies. Disillusionment with traditional parties has led citizens to favor actors perceived as more directly serving their interests, such as Hezbollah—which positions itself as a resistance force against Israel—or Muslim Brotherhood-affiliated parties, which have gained trust through their provision of essential social services in Egypt, Jordan, and elsewhere. In an era defined by youth-led movements, digital activism, and persistent calls for democratization, these parties stand at a crossroads. Whether they act as agents of change or instruments of entrenched power remains a central question, shaping not only the future of governance within individual nations but also the trajectory of regional stability and development.
Topic:
Civil Society, Corruption, Diplomacy, Politics, Elections, and Democratic Transitions
Political Geography:
Iraq, Middle East, North Africa, and Lebanon

52. Trade with Colombia is big business for US exporters—amid growing Chinese influence in Latin America

Author:
Geoff Ramsey and Enrique Millán-Mejía
Publication Date:
03-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Colombia and the United States have achieved a close, mutually beneficial partnership over several decades on migration, security, counternarcotics, and commerce—with the US trade surplus with Colombia totaling $1.3 billion in 2024. The Colombian market is particularly important for US agricultural producers. Thanks to the US-Colombia Trade Promotion Agreement (TPA), Colombia is the top destination for US agricultural exports in South America and the third main destination in the Western Hemisphere. The United States is still Colombia’s largest trading partner in South America—with $36.7 billion in two-way trade in 2024—but January data showed Chinese products leading over US imports for the month. The TPA promotes both reciprocal trade and US influence; interpretative improvements to previously agreed-upon matters are possible,
Topic:
Economy, Business, Tariffs, Exports, Trade, and International Markets
Political Geography:
China, Colombia, South America, Latin America, and United States of America

53. The Future of European Digital Competitiveness

Author:
Oscar Guinea and Vanika Sharma
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Former Italian prime minister Mario Draghi’s recent report on Europe’s competitiveness lays bare the negative effects of overregulation in the EU economy and the underperformance of its digital sector. However, Draghi failed to draw connections between these two phenomena. The future of Europe’s competitiveness is inextricably linked to the future of its digital economy. Unfortunately, the economic contribution of Europe’s Information and Communication Technology (ICT) sector remains significantly smaller than that of the US ICT sector to the US economy. There are well-known reasons behind this divergence. Chief among them is the lack of sufficient investment in Europe’s intangible and tangible assets. Regulation, particularly those regulations governing the digital economy, has emerged as a key factor that restricts Europe’s usage of digital technologies and hinders subsequent productivity growth. The EU now has nearly 100 tech-focused laws, comprising thousands of pages, provisions, and restrictions. This must change. The EU should develop a joint plan for digitalisation and competitiveness. This plan should build upon Europe’s comparative advantages: openness, strong institutions, the rule of law, robust intellectual property protections, and high levels of human capital. Above all, the EU must recognise that, while protecting consumer rights, EU policies and regulations must also prioritise the competitiveness of Europe’s ICT sector and promote the widespread adoption of digital technologies across the entire EU economy.
Topic:
Markets, European Union, Digital Economy, and Economic Competition
Political Geography:
Europe

54. Quantum Technology: A Policy Primer for EU Policymakers

Author:
Oscar Guinea, Dyuti Pandya, Oscar du Roy, and Andrea Dugo
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Quantum technology is rapidly emerging as a transformative force with the potential to reshape industries ranging from finance and pharmaceuticals to automotive and aerospace. In 2024 alone, investments in quantum technology reached over USD 56 billion. Its development, however, presents unique geopolitical challenges, stemming from its applications in defence and encryption, as well as its power to unsettle established comparative advantages and market specialisations across countries. Against this backdrop, an open and collaborative approach to quantum innovation is critical for maximising the benefits of this technology. Countries perform more effectively in quantum technology when they support cross-border collaborations and market specialisation. Firms producing quantum hardware or software solutions can sell to a range of industrial users who, in turn, integrate these cutting-edge systems into goods and services. Such synergy reduces the overall risks and costs of R&D, as different partners share both the financial burden and any uncertainties related to the commercial viability of quantum applications. Moreover, collaboration fosters a wider diffusion of quantum technologies. As firms specialising in quantum computing, communication, or sensing deepen their expertise, their insights permeate adjacent sectors through the shared knowledge enabled by joint collaborations. Conversely, restrictive policies that limit interaction between domestic and foreign firms risk stifling innovation. Self-reliance strategies reduce opportunities for knowledge-sharing, limit the pool of potential partners, and ultimately slow the pace of quantum breakthroughs. This operating framework supports the current EU approach to quantum technology, which emphasises openness and encourages a higher number of collaborations between EU and non-EU companies. This approach is grounded in economic realities: the EU ranks second only to the US in terms of the number of companies and collaborations between firms and it thrives on partnering with non-EU countries as the number of collaborations with companies outside the EU far exceeds the number of collaborations within the EU.
Topic:
European Union, Digital Economy, Digital Policy, and Quantum Computing
Political Geography:
Europe

55. Cybersecurity at Risk: How the EU’s Digital Markets Act Could Undermine Security across Mobile Operating Systems

Author:
Matthias Bauer and Dyuti Pandya
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The EU’s fight against cybersecurity threats risks being undermined by the over-enforcement of the Digital Markets Act (DMA). Article 5(4) could force mobile operating system providers to allow unregulated external links, bypassing critical security controls and exposing millions of smartphone users to cyber threats. The DMA focuses on market structure, overlooking how differences in operating system design affect security vulnerabilities. A one-size-fits-all approach ignores platform-specific security needs, leaving European users exposed to cyber threats. This risks undermining the EU’s economic security agenda, including initiatives like the Cybersecurity Strategy, Cyber Resilience Act, and NIS2 Directive, which aim to strengthen digital defences. The unintended consequences of this regulatory approach are already evident in Apple’s recent decisions to withhold certain features – such as advanced AI functionalities and enhanced app security tools – from the EU market due to DMA-related concerns. As a result, EU consumers face reduced access to innovative technologies, diminished user experiences, and weaker security protections compared to users in other regions. Now, Android, a widely used open-source system, may also be compromised by DMA enforcement, potentially limiting its flexibility, security, and the broader ecosystem of app developers and device manufacturers that rely on its open architecture.
Topic:
European Union, Cybersecurity, Digital Economy, and Digital Markets Act (DMA)
Political Geography:
Europe

56. The Participation of Foreign Bidders in EU Public Procurement: Too Much or Too Little?

Author:
Lucian Cernat
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This policy brief examines EU public procurement data from the Tenders Electronic Daily (TED) to evaluate foreign bidders’ participation and success in winning EU public contracts. Despite data coverage limitations, the available information shows an increase in foreign participation in both full and partial contracts, with most activity concentrated in a few countries. Countries like the United States, Japan, and Canada focus on securing full contracts, while nations such as Norway and Turkey often engage through partial contracts. Notably, since Brexit, UK bidders have faced a significant decline in market share, benefiting other countries. The main conclusion is that foreign participation via cross-border procurement (Mode 1) – the only one available in the TED database – is not very high. Although it increased over time, it remains relatively modest, mainly due to low participation rates, rather than discriminatory practices. Between 2016 and 2019, only about 7 percent of EU procurement authorities received foreign bids. This fact alone largely explains the low level of cross-border procurement taking place via Mode 1: put simply, there is no winning without trying. Another important conclusion is that a comprehensive assessment of the participation of foreign bidders in EU procurement would require two new key metrics in the TED data collection process to capture the more important yet missing modes of international procurement. Having reliable and comprehensive data is not just an academic pursuit but a necessity for shaping effective EU policy in the face of rising global protectionism in public procurement.
Topic:
European Union, Contracts, and Public Procurement
Political Geography:
Europe

57. Benchmarking Quantum Technology Performance: Governments, Industry, Academia and their Role in Shaping our Technological Future

Author:
Fredrik Erixon, Andrea Dugo, Dyuti Pandya, and Oscar du Roy
Publication Date:
03-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
In this study on the transformative potential of quantum technology in reshaping economies, we present results and evidence drawing on a unique and innovative quantum dataset compiled by ECIPE. This data offers new insights into the current state of quantum advancements. This comprehensive database sheds light on the roles of various actors – governments, industry, and academia – showcasing their contributions to the development of quantum technologies. By grounding the analysis in real data, we provide a clearer understanding of the dynamics at play, enabling stakeholders to assess the sustainability of quantum technology progress and foster an ecosystem that supports both public and private sector involvement.
Topic:
Science and Technology, Digital Economy, Private Sector, Industry, and Quantum Computing
Political Geography:
Global Focus

58. India and the World Economy: Policy Options at a Time of Geopolitical Drama, Technological Shifts, and Rising Protectionism

Author:
Fredrik Erixon, Dyuti Pandya, and Vanika Sharma
Publication Date:
03-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
What trade policy should India pursue? Geopolitical drama and a faltering multilateral system have made choices of trade policy harder for many countries. Rising protectionism, economic nationalism, and growing scepticism towards globalisation eat into most trade relations. Technology-driven innovation and rapid changes in the composition of trade have added additional layers of complexity, forcing governments to develop new policies for cross-border economic integration. This is the inflection point for India’s trade policy: its traditional approach is increasingly unable to respond to new economic and political realities, and new approaches may be needed to deliver better economic outcomes. Using India’s external trade strategy as a starting point, this policy brief presents three strategic options for India, each reflecting varying degrees of trade openness as a means to drive economic development. Using categories from the world of soft drinks, we call them “Trade Zero”, Diet Trade” and “Trade Regular”. First, the Trade Zero approach allows India to maintain its defensive stance on trade, focusing primarily on the growth of its domestic market and demand. Trade only serves as a means to manage production surpluses. Second, the Diet Trade approach pushes India to softly enhance trade with its already well-established trading partners, ideally by focusing on high-value-added goods and services. The model emphasises deepening diplomatic relations through trade: however, not at the cost of domestic policy priorities. And lastly, the Trade Regular approach encourages the adoption of a more ambitious trade strategy with the aim of establishing India as a central hub connecting major global economic regions. This would happen through upgrading existing trade agreements, signing new multilateral trade agreements, as well as adopting significant domestic reforms for further economic liberalisation. India’s trade performance provides the actual context of the realities of India’s trade policy. There are some notable features in India’s trade performance: its trade sector is small (international trade as a share of the GDP); it has a large services export sector compared to the export of goods; exports of high-value added goods and services has increased substantially; there is a consistently large share of big economies such as the United States and the European Union in India’s exports. All these features point to India’s position in global trade as a relatively high-value added economy. India, therefore, not only has an opportunity to leverage its trade capacity to significantly improve economic growth but can also adapt to newer forms of trade and increasingly engage with the global economy. Moreover, given the shifting global context and the increasing trade reciprocity demands from larger economies, India will also need to strengthen its trade relations with a diverse set of partners. In a way, India’s economy has already made the choice of which model that suits it best. Given the key features of the country’s trade sector, India’s real economy is already moving towards a Trade Regular model. However, there is a gap between the actual performance and policy positions, which remain defensive. Future trade growth, however, will likely depend on India becoming more pro-active in its trade policy and better equipped to negotiate trade agreements that respond the ambitions of its outward-oriented companies.
Topic:
Science and Technology, Geopolitics, and Trade Policy
Political Geography:
South Asia and India

59. EU Export of Regulatory Overreach: The Case of the Digital Markets Act (DMA)

Author:
Matthias Bauer, Dyuti Pandya, and Vanika Sharma
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The EU’s Digital Markets Act (DMA) exemplifies the “Brussels Effect,” extending the EU’s regulatory influence beyond its borders and shaping global digital competition policies. While intended to curb the market power of large technology platforms and promote fair competition, its broad, rigid, and pre-emptive approach risks stifling technological development, deterring investment, and creating legal uncertainty, particularly in emerging markets still building digital infrastructure and seeking to attract foreign investment. Large technology firms play a pivotal role in global economic development, driving innovation, infrastructure upgrading, and consumer welfare. However, increasing regulatory scrutiny, particularly under DMA-like frameworks, could inadvertently harm the very markets they help grow by imposing compliance burdens that hinder business expansion and technology diffusion. Countries with weaker institutions and regulatory capacity – such as India, Brazil, South Africa, and other emerging market and developing economies (EMDEs) like Indonesia – could face greater risks of regulatory capture, corruption, and enforcement challenges if they replicate the EU’s approach without adapting it to their economic realities (Section 2). A key concern with the DMA is the departure from traditional case-by-case enforcement in competition policy, instead relying on broad, pre-emptive obligations based on ambiguous concepts such as fairness and contestability. This shift reduces legal certainty, increases the risk of inconsistent enforcement, and may inhibit dynamic competition, which is essential for innovation-driven sectors like fintech, e-commerce, ICT, and edtech. By prioritising static over dynamic competition, the DMA could impede technological progress, limiting consumer choice and long-term economic benefits (Section 3). The global adoption of DMA-like regulations risks further regulatory fragmentation and may create unintended consequences, particularly in emerging economies where regulatory frameworks, institutional quality, and market structures differ significantly from the EU. Broad prohibitions on business practices, such as self-preferencing and data-sharing, could limit opportunities for local firms to scale internationally, weaken cybersecurity protections, and reduce incentives for large technology firms to invest in these regions (Section 4). To ensure proportionate and effective competition enforcement, governments outside the EU should prioritise regulatory flexibility and case-by-case assessments over broad, static restrictions. OECD best practices on competition policy emphasise clear objectives, legal certainty, and regulatory proportionality, ensuring that competition enforcement supports, rather than stifles, innovation and investment (Section 5). Moreover, the risks of corruption and regulatory overreach in developing countries make broad ex-ante regulations especially problematic. Excessive discretionary power granted to local authorities could increase the risk of politically motivated enforcement, deter foreign investment, and undermine long-term economic growth. A more effective approach would be to strengthen institutional frameworks, enhance transparency, and adopt supply-side policies that support technology neutrality, free trade, and economic freedom.
Topic:
Science and Technology, European Union, Regulation, Digital Markets Act (DMA), and Economic Competition
Political Geography:
Europe

60. Trade in the Great Sea: The Future of EU-Southern Neighbourhood Trade Relations

Author:
Jan A. Micallef
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This policy brief looks into the future of EU-Southern Mediterranean trade relations. It evaluates the current trade and contractual instruments governing these relations and asks if they are sufficient or if more is needed to exploit trade opportunities and manage trade challenges in the region. The policy brief shows why and how the current trade instruments are no longer sufficient. There are two main reasons for this: first, they do not really tackle areas such as services, investment and non-tariff measures (NTMs), all of which are important to unlock economic value for both sides in today’s economy; and second, new economic and political developments reinforce the need for better agreements. As trade becomes more political and intertwined with other issues such as energy, critical minerals, the environment and industrial policy, it is necessary to improve the agreements and instruments that govern trade. The policy brief lists some of the upgrades in EU-Southern Mediterranean trade agreements that are necessary. However, it also analyses what challenges there are to pursue these upgrades and what can be done to overcome the problems. The policy brief concludes that working towards these aims will be challenging but not impossible if there is the necessary political will on both sides. Both sides should realise that the price of not doing anything might be higher than the effort that is required to bring their trade instruments up to the standards needed.
Topic:
International Relations, Treaties and Agreements, European Union, and Trade
Political Geography:
Africa and Europe