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Begin New Search Topic Development Content Type Policy Brief

121. Potential and Pitfalls for African Industrialization in Chinese-built Standard Gauge Railways

Author:
Yunnan Chen
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
Railway development has been a key feature of transport infrastructure investments in several African economies, with several new standard gauge railways (SGR) built in the last ten years in Ethiopia, Nigeria, and Kenya. These planned projects have also entailed substantial Chinese involvement through construction contractors, in financing, and in the operations and management, becoming part of the wider Chinese discourse of the Belt and Road Initiative (BRI). They also have significant potential in supporting the industrialization plans of African states, and in some cases, have been explicitly linked to plans for a green transformation. This brief draws from case studies across Africa with a focus on Ethiopia, to highlight the significant potential of railway investments as a low-cost, low-carbon transport for green industrialization, but also its pitfalls and challenges as an infrastructure for governance, and local technology transfer.
Topic:
Development, Belt and Road Initiative (BRI), Industrialization, and Railways
Political Geography:
China and Africa

122. Electric Vehicles and the Changing Automotive GVC: A Window of Opportunity for African Countries?

Author:
Tobias Wuttke
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
Only two African countries have successfully integrated with the automotive GVC to date: South Africa and Morocco. Their experiences, compared to other even more successful developing and emerging economies with automotive industries, highlight both the opportunities as well as the limitations of automotive GVC participation as an economic development engine. Scale in vehicle production, facilitated by government industrial policy, is the key prerequisite for successful participation with localisation benefits. These fundamentals do not change with the shift to electric vehicles. Governments in Africa and elsewhere need to attract FDI in electric vehicle production and from there can support the development of a local component and materials value chain. Once these basics are covered, governments and local firms can aim for making use of the technological window of opportunity by investing in EV-related technology, mainly battery technology, to potentially capture more value from automotive GVC participation than has traditionally been possible in the ICE vehicle value chain.
Topic:
Development, Industrial Policy, Foreign Direct Investment, Global Value Chains, Automotive Industry, and Electric Vehicles
Political Geography:
Africa

123. Current Capabilities and Future Potential of African Textile and Apparel Industries

Author:
Lindsay Whitfield and Chema Triki
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
The textile and apparel industry is a globalised industry characterised by a high degree of dependency and fragmentation in global supply chains. From the mid-20th century, cotton textile and apparel manufacturing production relocated from industrialised to developing countries, particularly in Asia, and was quickly followed by the emergence of the petrochemical industry and synthetic fibre production in East Asian countries, while South Asia continued to focus on cotton and natural fibres. China, Bangladesh, and Vietnam are currently the central players in global apparel supply chains, with China and increasingly Vietnam having vertically integrated industries with access to a diverse range of fabrics and thus a large product portfolio. The largest apparel consumer markets are concentrated in Europe, North America, and other wealthy countries such as Japan, as they have higher purchasing power and economically larger markets. Large emerging economies such as China and India largely supply their domestic markets but have not yet become major destination consumption markets for other developing economies. Changes in international trade over the past 30 years fostered the textile and apparel global value chain dynamic. These changes were marked by opening trade borders, lowering tariffs, tax breaks or subsidies offered by various governments, and free trade agreements. Low labour costs and lower production costs have shaped the decisions of global actors to relocate their operations from one country to another. Current global trends are set to transform the global value chains of textiles and apparel again. These trends include increasing production costs in China, the drive to shorten supply chains post-Covid pandemic through nearshoring and seeking countries with yarn-to-garment (or vertical) production capabilities, and a sustainability shift. These trends are leading global apparel buyers to diversify their sourcing away from China and Asia more generally and to consider new supply bases. These structural trends in the industry, together with the AfCFTA, represent a window of opportunity for African countries. African industry actors and their governments should build new textile and apparel industries that seek to participate in global and regional markets and engage with global technologies and international partnerships. Attracting foreign firms with the necessary technical, organisational, and managerial capabilities is essential. The AfCFTA represents a powerful tool to respond to the verticality need of the industry, considering the current production levels of raw materials, but also an opportunity to increase the number of African countries with industrial capabilities in textile and apparel. The ongoing negotiations on rules of origin will significantly impact the continent's potential to create synergetic regional value chains.
Topic:
Development, Industrial Policy, International Trade and Finance, Business, Supply Chains, and Textile Industry
Political Geography:
Africa

124. Climate Change Mitigation for Late Industrialisers: The Role of Technology Intensity in Manufacturing

Author:
Elvis Korku Avenyo and Fiona Tregenna
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
Many developing countries now have a renewed focus on industrialisation and industrial policy. This is based on the recognition that industrialisation is a key driver of long-term economic progress and is the central route to improve the well-being of citizens in developing countries (Chenery, 1955; Tregenna, 2016; United Nations Industrial Development Organization [UNIDO], 2016). At the same time, the climate crisis poses an existential threat to the global economy and to humanity and has emerged as a challenge to the industrial development prospects and pathways of developing countries. This is because industrialisation is an important contributor to global warming, specifically to anthropogenic emissions of cardon dioxide (CO2.) (Adom et al., 2012; Han & Chatterjee, 1997). Late industrialisers thus face a dual challenge: industrialising while mitigating climate change (Altenburg & Rodrik, 2017). Hence, there is now a degree of tension as to how late industrialisers can achieve long-term economic development under paths involving heavy or intensive industrialisation, while mitigating emissions and environmental damage more broadly. An emerging discourse recognises the critical need for developing countries to push towards industrial development that, while generating growth in productivity and jobs, is also environmentally sustainable. This is especially important, as poorer countries are particularly vulnerable to the immediate effects of the climate crisis (Altenburg & Rodrik, 2017; Padilla, 2017). Thus, transforming towards sustainable production systems and green industrial policies offers developing countries opportunities to industrialise in an environmentally sustainable way while contributing to job creation and economic prosperity (Altenburg & Rodrik, 2017; Padilla, 2017; Rodrik, 2014). However, the high ‘green premia’ and new access barriers to the ‘green’ energy technologies from advanced economies directly threaten this potential sustainable industrial development pathway in developing countries.
Topic:
Climate Change, Development, Science and Technology, Manufacturing, Industrialization, Sustainability, and Carbon Emissions
Political Geography:
Global Focus

125. Financing Loss and Damage at Scale: Toward a Mosaic Approach

Author:
Michael Franczak
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Peace Institute (IPI)
Abstract:
The historic decision on loss and damage (L&D) at the 2022 UN Climate Change Conference (COP27) calls for a new fund and funding arrangements focused on addressing L&D. It also tasks a Transitional Committee to prepare recommendations on the new fund and funding arrangements for adoption at the 2023 UN Climate Change Conference (COP28) in Dubai. This decision reflects a recognition that existing funding arrangements are grossly inadequate to address the escalating scale of L&D. Addressing L&D will require both enhancing these existing arrangements and creating a new fund and funding arrangements, forming a mosaic of solutions across countries, institutions, and markets. This paper aims to aid the Transitional Committee and other stakeholders by providing an initial sketch of that mosaic. First, it examines existing arrangements, modalities, and sources of funding for addressing L&D from UN humanitarian agencies, multilateral development banks and international financial institutions, and insurance and bond markets. Second, it proposes reforms to existing arrangements that would address key finance gaps and bottlenecks. Third, it identifies elements of a new L&D fund that would complement existing arrangements and make use of innovative finance (including levies and bond issuances) to operate at scale. With roughly six months left until COP28, the Transitional Committee will need to work efficiently to achieve its mandate, which includes determining the fund’s institutional arrangements, modalities, structure, governance, sources of funding, and coordination and complementarity with existing funding arrangements. To this end, the paper recommends that it should: Begin securing financing before COP28, particularly innovative financing, which takes longer to secure than traditional donor contributions; Consult with the private sector to determine its role, including in the use of insurance mechanisms and risk pools, frontloading, and connections between L&D and jobs; Determine the form and role of triggers, including for slow-onset events; Consider how to address noneconomic losses, including displacement and forced migration; and Identify the actions, mechanisms, and institutions required to operationalize the fund, including an internal or external coordination mechanism.
Topic:
Climate Change, Development, United Nations, and Finance
Political Geography:
Global Focus

126. Global Inequality in Well‐​Being Has Decreased across Many Dimensions: Introducing the Inequality of Human Progress Index

Author:
Chelsea Follett and Vincent Geloso
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The world has seen dramatic, global human progress across a broad range of indicators in recent decades, but have those gains been widely shared? The Inequality of Human Progress Index (IHPI) measures relative gaps in global development. It surveys international inequality across a greater number of dimensions than any prior index. By analyzing inequality in a multidimensional way, the IHPI takes inequality more seriously than those indexes that focus on income inequality alone. The IHPI considers material well‐​being and seven additional metrics: lifespan, infant mortality, adequate nutrition, environmental safety, access to opportunity (as measured by education), access to information (as measured by internet access), and political freedom. Across all but two of those dimensions, the world has become more equal since 1990. Globalization and market liberalization over the past few decades have not only raised absolute living standards but also reduced overall inequality.
Topic:
Development, Inequality, Economy, and Well-Being
Political Geography:
Global Focus

127. Security professionals are changing how humanitarian organisations operate

Author:
Jethro Norman
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The International Committee of the Red Cross (ICRC) created the first position solely dedicated to security in 1991, but for the next decade it was rare for humanitarian organisations to embed security professionals. After the 2003 Canal Hotel bombing in Baghdad in which the UN’s special representative in Iraq was killed, the United Nations Department of Safety and Security (UNDSS) was established. However, attacks on aid workers increased throughout the 2000s in countries such as Afghanistan, Iraq and Somalia. Humanitarian organisations invested more in their security in response to these threats, as well as changing norms around humanitarian liability. In 2015, in a landmark ruling, an aid worker successfully sued the Norwegian Refugee Council (NRC) for gross negligence. In response, donors implemented increasingly stringent insurance protocols, and the demand for humanitarian security professionals continued to grow. Today, virtually every international humanitarian organisation operating in an insecure region employs an international security professional, typically from a western military, police or private security background. Insights from long-term fieldwork with security contractors and aid workers in Sub-Saharan Africa (including Somalia, Kenya, South Sudan and Tanzania) shows that this has resulted in friction between the two groups, especially in relation to access and liability. In recent years, several developments have streng- thened the authority of security professionals over humanitarian staff. First, digital technologies have been increasingly used for information gathering, monitoring of staff and remote management. Second, as humanitarian security has become more structured and coordinated, new international organisations have emerged whose sole purpose is to provide security services to humanitarian clients. Whilst sometimes registered as non-profits, their function is not dissimilar to commercial private security companies, raising important questions about how the information they gather may be used beyond humanitarian purposes.
Topic:
Security, Development, Humanitarian Aid, and Humanitarian Organizations
Political Geography:
Global Focus

128. Climate change, mobility and human trafficking in Ethiopia

Author:
Ninna Nyberg Sørensen
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Throughout history, demographic, economic, political, religious, and environmental developments have resulted in Ethiopian mobility, mainly within the country or neighbouring region, but also further afield. Although Ethiopia’s current migration rate is only about half of the sub-Saharan average of 2%, the combined effects of poverty, population growth, conflict, and climate change have led to a recent growth in international migration. Women make up half of these flows. Proximity to the Middle East has facilitated women’s migration for domestic work while simultaneously raised concern over human trafficking violations. International Human Rights and anti-trafficking organisations predict that the negative effects of climate change will increase the vulnerability to trafficking in persons, forced labour, sexual exploitation, and debt bondage. This policy brief draws on research carried out under the auspices of the collaborative ‘Governing Climate Migration’ (GCM) research programme to further explore how climate change, migration and human trafficking may interlink. It questions routine applications of the human trafficking label to irregular Ethiopian migrant domestic workers and suggests replacing it with a migration-trafficking continuum approach that takes life before, during and after migration into account.
Topic:
Climate Change, Development, Migration, Borders, Risk, and Human Trafficking
Political Geography:
Africa and Ethiopia

129. Existing Dispute: Does the new budget set the stage for a fresh phase of conflict in Iraq?

Author:
FARAS
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
On 12 June, 2023, Iraq's Council of Representatives approved a three-year budget (2023-2025) of 198.9 trillion dinars (USD 153 billion), including the budget for Iraq's Kurdistan region. This came around three months after the government filed the draft budget, making it the largest in Iraqi history.
Topic:
Development, Oil, Budget, Domestic Politics, Public Spending, and Parliament
Political Geography:
Iraq, Middle East, and Kurdistan Region of Iraq (KRI)

130. Power and potential: The economics of Egyptian construction and ICT

Author:
Matteo Colombo
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Young Egyptians’ dissatisfaction with their employment prospects was a key driver of protests in 2011 and 2013. Since then, the country’s political authorities have worked hard to create job opportunities for young Egyptians by boosting growth in the construction sector (infrastructure and public works), among other things. Since the sector also generates substantial revenues for the country’s power elite, this has been a win-win strategy in the short-term. But overreliance on the construction sector has also created too many informal and unstable jobs that are a poor match for Egypt’s many well-educated graduates. Cairo’s growth strategy has not addressed some of the country’s long-standing economic problems, such as informality and a low overall employment rate. Giving the country’s promising ICT sector a boost similar to that of the construction sector to address such deficiencies and anticipate a looming debt crisis requires a paradigm shift with two elements. First, a deal between Egypt’s political authorities and the power elite that buys time in exchange for future rents. Second, facilitation of private sector dynamism through regulatory encouragement and public seed funding for new business activity.
Topic:
Development, Economics, Employment, and Construction
Political Geography:
Middle East and Egypt