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  • Author: Mao Ruipeng
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: As China deepens its engagement in global governance and development, its strategic motivation and rising influence within the UN and on international rules and norms are attracting the world’s attention. This paper focuses on China’s engagement with the UNDS, specifically Chinese funding and allocation decisions. China’s UNDS funding has risen rapidly since 2008 and even accelerated in 2013. Between 2013 and 2017, Chinese funding (excluding local resources) grew at an annual average rate of 33.8 per cent. In 2017, its total contribution reached USD 325.869 million. China’s shares of core funding and assessed contribution in its total UNDS funding are much higher than traditional donor countries. However, the share of non-core funding has also jumped. While China tends to mostly provide funds for UNDS development projects, in recent years it has also been hiking funding for humanitarian assistance. This paper also examines three cases of China’s earmarked funding – to the UNDP and the WFP, which receive the largest share of its UNDS funds, as well as for UNPDF operations, which count as a voluntary contribution. There are several reasons for China’s growing engagement with the UNDS, from evolving perception of foreign aid and appreciating the UN’s multilateral assets to fostering the reputation of “responsible great nation” and pushing forward the Belt and Road Initiative (BRI) through cooperation with the UNDS. In general, China continues to integrate into the global development system, and can be expected to maintain its support for the UN and continue to contribute to the UNDS.
  • Topic: Development, International Law, United Nations, Belt and Road Initiative (BRI), Norms
  • Political Geography: China, Global
  • Author: Elvis Melia
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This study asks what impact the Fourth Industrial Revolution will have on job creation and catchup development in Sub-Saharan Africa over the coming decade. Can light manufacturing export sectors still serve African development the way they served East Asian development in the past? If factory floor automation reduces the need for low-cost labour in global value chains, can IT-enabled services exports become an alternative driver of African catch-up development? I present case study evidence from Kenya to show that online freelancing has become an interesting sector, both in terms of its growth trajectory, and in terms of worker upward mobility in the global knowledge economy. As life everywhere moves further into the digital realm, and global internet connectivity between Africa and the rest of the world grows, more and more young Africans who stream onto the labour market may find work in the world of global online freelancing. I discuss the building blocks needed to make online work a sustainable vehicle for African catch-up development in the years ahead.
  • Topic: Development, Science and Technology, Labor Issues, Internet, Exports, Manufacturing, Industry
  • Political Geography: Kenya, Africa
  • Author: Sabrina Disse, Christoph Sommer
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: The vast majority of enterprises worldwide can be categorized as small and medium-sized enterprises (SMEs). They play a crucial role in providing a livelihood and income for diverse segments of the labour force, in creating new jobs, fostering valued added and economic growth. In addition, SMEs are associated with innovation, productivity enhancement as well as economic diversification and inclusiveness. However, almost half of the formal enterprises in low and middle-income countries (LMICs) are financially constrained, meaning that SMEs’ financing needs are unserved or underserved. Digitalisation is often seen as game changer that overcomes the challenges of SME finance by capitalising on the reduced transaction costs, the broader access to more and alternative data and the new customer experience shaped by convenience and simplicity. This paper aims to answer the question what the role of digital financial instruments in SME finance in Sub-Saharan Africa is. It reviews and discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity. It contrasts the hype around digital finance with actual market developments and trends in Africa. Main findings indicate that even though digital advances have led to impressive growth of certain digital finance instruments, it has not triggered a remake of the financial system. Digitalisation of the financial system is less disruptive than many expected, but does gradually change the financing landscapes. Some markets have added innovative and dynamic niches shaped by digital financial services, but new digital players have in general not replaced the incumbents. Furthermore, the contributions of digital instruments to finance in general and SME finance in particular are still very limited on the African continent compared to either the portfolio of outstanding SME finance by banks or the capital raised by similar innovative instruments elsewhere in the world. Many uncertainties remain, most importantly the response of regulators and responsible authorities. They need to provide a suitable legal framework to strike a balance between the innovation and growth aspiration of the digital finance industry and the integrity and stability of markets and the financial system at large. Also regulators have to safeguard data privacy and cybersecurity and prevent illicit financial flows, bad practices around excessive data collection, intransparency and poor reporting as well as exploitation of vulnerable groups with limited financial literacy. Governments also have to address the increasing gap towards those left behind by digital finance due to issues with ownership of a digital device, mobile network coverage and the internet connection or issues of basic digital and financial literacy.
  • Topic: Development, Science and Technology, Digital Economy, Business , Economic Growth, Diversification
  • Political Geography: Africa
  • Author: Axel Berger, Sören Hilbrich, Gabriele Köhler
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: In recent years, the Group of Seven (G7) and Group of Twenty (G20) have placed increasing emphasis on gender equality. As part of this focus, the member states of both institutions have set out a series of objectives aimed at advancing gender equality. This report examines the degree to which these goals have been implemented in Germany. First, the gender equality goals that both institutions have set out since 2009 are presented and systematised. The report then investigates the current state of progress in Germany and describes measures that have already been undertaken to implement the goals.
  • Topic: Development, Gender Issues, G20, Women, Inequality, G7
  • Political Geography: Europe, Germany
  • Author: Frederik Stender, Axel Berger, Clara Brandi, Jakob Schwab
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This study provides early ex-post empirical evidence on the effects of provisionally applied Economic Partnership Agreements (EPAs) on two-way trade flows between the European Union (EU) and the African, Caribbean and Pacific Group of States (ACP). Employing the gravity model of trade, we do not find a general EPA effect on total exports from ACP countries to the EU nor on total exports from the EU to ACP countries. We do, however, find heterogeneous effects when focusing on specific agreements and economic sectors. While the agreement between the EU and the Caribbean Forum (CARIFORUM), which concluded several years ahead of the other EPAs in 2008, if anything, reduced imports from the EU overall, the provisional application of the other EPAs seems to have at least partly led to increased imports from the EU to some partner countries. More specifically, the estimation results suggest an increase in the total imports from the EU only in the Southern Africa Development Community (SADC) EPA partner countries. On the sectoral level, by comparison, we find increases in the EU’s agricultural exports to SADC, Eastern and Southern Africa (ESA) and the Pacific. Lastly, in the area of manufactures trade, we find decreases of exports of the ESA and SADC countries to the EU, but increases in imports from the EU into SADC countries. While this early assessment of the EPA effects merits attention given the importance of monitoring future implications of these agreements, it is still too early for a final verdict on the EPAs’ effects and future research is needed to investigate the mid- and long-term consequences of these agreements.
  • Topic: International Relations, Development, International Cooperation, Regional Cooperation, Treaties and Agreements, Manufacturing, Trade
  • Political Geography: Africa, Europe, South Africa, Caribbean, Asia-Pacific, European Union
  • Author: Tim Stoffel
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: Public Procurement is a highly regulated process ruled by a complex legal framework. It comprises not only national but also, increasingly, sub- and supranational regulations, giving rise to a multi-level regulatory governance of public procurement. The integration of sustainability aspects into public procurement, as called for in goal 12.7 of the Sustainable Development Goals (SDGs) of the Agenda 2030, needs to take this multi-level character into account. This reports focuses on social considerations, which are a central part of sustainable procurement – whether with a domestic focus or along international value chains. Social considerations have been somewhat neglected in Europe, whereas they feature prominently in procurement regulations in many countries of the Global South, especially in Sub-Saharan Africa (SSA). The advanced process of regional integration in the European Union (EU) and the progress made towards integration in some regional economic communities in Sub-Saharan Africa call for deeper analyses of the influence of the higher levels of the regulatory framework on the lower levels. The question is whether public entities, from the national down to the local level, are required or at least have the option to integrate socially responsible public procurement (SRPP) into their procurement processes and tenders, or at least have the option to do so. This report is conducted as part of the project “Municipalities Promoting and Shaping Sustainable Value Creation (MUPASS) - Public Procurement for Fair and Sustainable Production”, implemented by DIE in cooperation with Service Agency Municipalities in One World (SKEW) with funds from the Federal Ministry of Economic Cooperation and Development (BMZ) and compares public procurement in Germany and Kenya. In both countries, the multi-level regulatory frameworks allow for SRPP regulations and practices ar the national and sub-national levels of government. There is, however, an implementation gap for SRPP in Germany and Kenya that appears to be independent from the specifics of the respective regulatory framework. To tackle this, supportive measures, such as capacity building, are key. Furthermore, Regional economic communities, such as the EU and the Common Market for Eastern and Southern Africa (COMESA), can play a role in promoting SRPP, even without introducing mandatory provisions. At the other end of the multi-level regulatory spectrum, municipalities in the EU had and have an important role in SRPP implementation, that might be replicable by sub-national public entities in Kenya and other contexts.
  • Topic: Development, Governance, Regulation, Sustainable Development Goals
  • Political Geography: Kenya, Africa, Europe, Germany
  • Author: Elvis Melia
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: In the past two decades, Africa has experienced a wave of mobile telephony and the early stages of internet connectivity. This paper summarises recent empirical research findings on the impact that information and communication technologies (ICTs) have had on jobs in Africa, be it in creating new jobs, destroying old jobs, or changing the quality of existing jobs in levels of productivity, incomes, or working conditions. The paper discusses various channels in which ICTs can impact jobs: In theory, they have the potential to allow for text-based services platforms that can help farmers and small and medium-sized enterprises (SMEs) become more productive or receive better access to market information; mobile money has the potential to allow the most vulnerable workers more independence and security; and the internet could allow women, in particular, to increase their incomes and independence. This literature review examines what rigorous empirical evidence actually exists to corroborate these claims. Most of the studies reviewed do indeed find positive effects of ICTs on jobs (or related variables) in Africa. On the basis of these findings, the paper reviews policy options for those interested in job creation in Sub-Saharan Africa. The paper concludes by highlighting that these positive findings may exist in parallel with negative structural dynamics that are more difficult to measure. Also, the review’s findings - while positive across the board - should be seen as distinct for ICTs in the period of the 2000s and 2010s, and cannot easily be transferred to expect similarly positive effects of the much newer, Fourth Industrial Revolution Technologies (such as machine learning, blockchain technologies, big data analytics, platform economies), which may produce entirely different dynamics.
  • Topic: Development, Science and Technology, Labor Issues, Women, Internet, Economic Growth, Political Science, Literature Review
  • Political Geography: Africa
  • Author: Irene Schöfberger
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: The European Union (EU) has been struggling to find a shared course on African migration since the entry into force of the Schengen Agreement (1995). It has done so through two interrelated processes of negotiation. Firstly, parties have negotiated narrative frames about migration and, in particular, whether migration should be interpreted in terms of security or in terms of development. Secondly, they have negotiated internal and external migration policies, that is, how migration should be managed respectively inside the EU (based on cooperation between EU member states) and outside it (based on cooperation with third states). In times in which narrative frames increasingly shape policy negotiations, it becomes very important to analyse how policymakers negotiate narrative frames on migration and how these shape policy responses. However, such an analysis is still missing. This discussion paper investigates how European states and institutions have negotiated the relation between EU borders and African mobility between 1999 and the beginning of 2019. It focusses in particular on how the process of negotiation of migration policies has been interrelated with a process of negotiation of narrative frames on migration. It does so based on an analysis of EU policy documents from 1999 to 2019 and on interviews with representatives of European and African states and regional organisations. Two major trends have characterised related EU negotiation processes: migration-security narrative frames have strengthened national-oriented and solid borders-oriented approaches (and vice versa), and migration-development narrative frames have strengthened transnational-oriented and liquid borders-oriented approaches (and vice versa). Since 1999, the European Council has mostly represented security- and national-oriented approaches, and the European Commission has mostly represented development- and transnational-oriented approaches. The two competing approaches have always been interlinked and influenced each other. However, in the last years, security-oriented national and solid border approaches have gained prominence over development-oriented transnational and liquid border approaches. In particular, the Commission has progressively mainstreamed national objectives in its transnational actions and security concerns in its development measures. Prioritising security over transnational development has augmented inequalities, in particular at the expenses of actors with scarce political representation in Africa and the EU. Such inequalities include increasing migrant selectivity and wage dumping.
  • Topic: International Relations, Development, International Cooperation, Migration, History, Negotiation
  • Political Geography: Africa, European Union
  • Author: Elizabeth Sidiropoulos
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: South Africa’s engagement in global development structures has evolved since 1994, when the country re-entered the international community. The historical philosophical underpinnings of the African National Congress, the governing party, aimed to reaffirm the country’s place in the Global South and African firmament after the end of apartheid. This understanding is necessary in the context of South Africa’s priorities over the past 25 years, not least in the development debates. The last two decades have seen significant attempts to develop global norms that tackle the serious developmental challenges faced by developing countries. The paper explores these initiatives and divides them into three streams – those undertaken by the United Nations, those begun by the Development Assistance Committee of the Organisation for Economic Co-operation and Development (OECD-DAC), and those that may be understood as part of club governance processes (such as the G20, the BRICS (Brazil, Russia, India, China, South Africa), and the India-Brazil-South Africa Dialogue Forum (IBSA). South Africa’s engagement in these global development structures is analysed, along with its contribution to the evolution of African agency on the issues of global development. South Africa has strongly criticised existing power relations while undertaking strategic engagements with the North, centred on the vision of an African renaissance and the New Partnership for Africa’s Development initiative. The country has consistently argued that Northern aid cannot be put on the same platform as South-South Cooperation as they have different origins. Other African states and continental institutions have also ramped up their engagement on global development and development cooperation in recent years, which the paper also explores. While South Africa has always identified Africa as a core pillar of its foreign policy, its interests have not always cohered with those of the rest of the continent. Lastly, the paper explores possible avenues that South Africa might pursue in the current polarised multilateral environment. Its biggest challenge is the tension regarding its Global South identity, which has to balance its commitment to African issues and institutional processes, and its positioning via its membership of the BRICS as an emerging power that seeks to contest the current global power configurations.
  • Topic: Development, United Nations, Multilateralism, Economic Development
  • Political Geography: Africa, South Africa
  • Author: Victoria Gonsior, Stephan Klingebiel
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This paper uses the development policy system as an entry point assuming that various fundamental changes along three dimensions – narratives (why?), strategies (what?) and operational approaches (how?) – can be observed over recent years. Changes are diverse, ranging from new narratives translated to the development policy context (such as the migration narrative) to strategic considerations (for instance, developing countries’ graduation implications), new instruments (in form of development finance at the interface with the private sector), and concepts for project implementation (including frontier technology). We discuss the implications and effects of these trends in terms of holistic changes to the wider development policy system itself. Do these changes go hand-in-hand with and ultimately build on and re-inform each other? Or are we actually observing a disconnect between the narratives that frame the engagement of actors in development policy, their strategies for delivery, and operational approaches in partner countries? Based on a consultation of the appropriate literature and information gathered during a number of expert interviews and brainstorming sessions, this paper sheds light on these questions by exploring current trends and by highlighting continuing disconnections between the “why”, “what” and “how” in the development policy system. Further, we argue that the importance of such disconnections is increasing. In particular, the persistent or even increasing disconnections in the development policy system can be more problematic in the face of a universal agenda and the need to upscale delivery to achieve the Sustainable Development Goals (SDGs)
  • Topic: Development, Science and Technology, United Nations, Sustainable Development Goals, Public Policy
  • Political Geography: Germany, Global Focus
  • Author: Laura-Theresa Krüger, Julie Vaillé
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: On 22 January 2019, France and Germany signed the Treaty of Aachen, which – among other things – foresees a stronger coordination and cooperation in the field of development policy. Against the backdrop of the Agenda 2030, the need for collective action has rarely been higher. Yet, although formal agreements on Franco-German cooperation were initially made in the 1963 Élysée Treaty, preliminary research insights point to the fact that cooperation has so far been driven more by opportunity than by strategy. That is why this study seeks to analyse the main obstacles to Franco-German cooperation in global development and how these play out in practice. To this end, it provides an assessment of Franco-German cooperation in support of global sustainable development in general, as well as in two particular cases. These are the Sahel Alliance, founded on a French initiative and confirmed by France, Germany and the European Union in 2017 with a view to increasing coordination and effectiveness to the benefit of development and security in five Sahel countries; and a second initiative providing assistance to developing and emerging countries in conceiving and implementing their nationally determined contributions (NDCs), the NDC Partnership. The NDC Partnership was launched at the 22nd Conference of the Parties of the United Nations Framework Convention on Climate Change (COP22) in Marrakesh in 2016 on an initiative by Germany, Morocco and the World Resources Institute (WRI). Against this backdrop, the study formulates policy recommendations as to how Franco-German cooperation could be enhanced to the benefit of global development.
  • Topic: Security, Development, International Cooperation, Treaties and Agreements
  • Political Geography: Europe, France, Germany, North Africa
  • Author: Clare Castillejo
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: Establishing free movement regimes is an ambition for most African regional economic communities, and such regimes are widely understood as important for regional integration, growth and development. However, in recent years the EU’s migration policies and priorities in Africa - which are narrowly focused on stemming irregular migration to Europe – appear to be in tension with African ambitions for free movement. This paper examines how the EU’s current political engagement and programming on migration in Africa is impacting on African ambitions to establish free movement regimes. It focuses first on the continental level, and then looks in-depth at two regional economic communities: The Intergovernmental Authority on Development (IGAD) in the Horn of Africa, and the Economic Community of West African States (ECOWAS). The paper begins by examining how free movement has featured within both EU and African migration agendas in recent years, describing how this issue has been increasingly sidelined within the EU’s migration policy framework, while receiving growing attention by the African Union. The paper then discusses the impact of EU migration policies and programmes on progress towards regional free movement in the IGAD region. It finds that the EU is broadly supportive of efforts to establish an IGAD free movement regime, although in practice gives this little priority in comparison with other migration issues. The paper goes on to examine the EU’s engagement in the ECOWAS region, which is strongly focused on preventing irregular migration and returning irregular migrants. It asks whether there is an innate tension between this EU agenda and the ambitions of ECOWAS to fully realise its existing free movement regime, and argues that the EU’s current engagement in West Africa is actively undermining free movement. Finally, the paper discusses the differences between the EU’s approach to migration and free movement in these two regions. It offers recommendations regarding how the EU can strengthen its support for free movement in both these regions, as well as more broadly in Africa.
  • Topic: Development, Migration, Regional Cooperation, Economic Growth
  • Political Geography: Africa, Europe, European Union
  • Author: Anita Breuer, Julia Leininger, Jale Tosun
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: Implementing the 2030 Agenda in an integrated way poses new challenges to political institutions and processes. In order to exploit synergies and to mitigate trade-offs between the Sustainable Development Goals (SDGs), innovative governance approaches are needed. National bodies to coordinate SDG implementation were being created as of late 2015. As a basis for future analyses on effectiveness, it is important to know if, and which, institutional designs are in place to implement the SDGs and why they were chosen. Against this background, this Discussion Paper analyses how political factors influence institutional design choices when it comes to implementing the SDGs. The aim of this paper is twofold: First, it seeks to assess governments’ proposals for institutional designs for SDG implementation at the national level and to identify patterns of institutional designs. It does so by analysing and coding the Voluntary National Reviews from 2016 and 2017 of 62 signatory states, including OECD and none-OECD countries from all world regions and income groups. Second, it aims to explain which political and socio-economic factors shaped these institutional designs. The empirical analysis shows that the majority of countries have opted for a design that promotes political support at the highest level and cross-sectoral, horizontal integration, but has significant shortcomings in terms of social inclusiveness and vertical coordination across different levels of government. When asking which determinants shape these patterns, our findings reveal that horizontal integration becomes more likely with higher socio-economic development. Moreover, we find that vertical integration and societal integration are interdependent and mutually enforcing. Based on our findings, we formulate policy recommendations regarding the institutional requirements for integrated SDG implementation.
  • Topic: Development, Sustainable Development Goals, Institutions
  • Political Geography: Germany, Global Focus
  • Author: Axel Berger, Sebastian Gsell, Zoryana Olekseyuk
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: While global investment needs are enormous in order to bolster the implementation of the 2030 Agenda for Sustainable Development, developing countries are often excluded from global foreign direct investment (FDI) flows. Beyond economic fundamentals like market size, infra¬structure and labour, the impediments to FDI in developing countries relate to the predictability, transparency and ease of the regulatory environment. In contrast, tax incentives and international investment agreements (IIAs) have been found to be less important (World Bank, 2018). To harness the advantages of FDI, it is critical that governments have policies and regulations in place that help to attract and retain FDI and enhance its contribution to sustainable development. The 2030 Agenda and the Addis Ababa Action Agenda, thus, call for appropriate international frameworks to support investments in developing countries. In this context, the Joint Ministerial Statement on Investment Facilitation for Development adopted at the 11th Ministerial Conference of the World Trade Organization (WTO) in December 2017 called for the start of “structured discussions with the aim of developing a multilateral framework on investment facilitation”. Investment facilitation refers to a set of practical measures concerned with improving the transparency and predict¬ability of investment frameworks, streamlining procedures related to foreign investors, and enhancing coordination and cooperation between stakeholders, such as host and home country government, foreign investors and domestic corporations, as well as societal actors. Despite the deadlock in the WTO’s 17-year-old Doha Round negotiations, the structured discussions on investment facilitation, which have been under way since March 2018, show that the members of the WTO take a strong interest in using the WTO as a platform to negotiate new international rules at the interface of trade and investment. In contrast to previous attempts by developed countries to establish multilateral rules for investment, the structured discussions are mainly driven by emerging and developing countries. Most of them have evolved over the past years into FDI host and home countries reflecting the changing geography of economic power in the world. Their increased role has led to a shift of policy agendas, focusing on practical measures to promote FDI in developing countries while excluding contentious issues such as investment liberali¬sation and protection, and investor–state dispute settlement (ISDS). This policy brief provides an overview of the emerging policy debate about investment facilitation. We highlight that four key challenges need to be tackled in order to negotiate an investment facilitation framework (IFF) in the WTO that supports sustainable development.
  • Topic: Development, World Trade Organization, Sustainable Development Goals, Investment
  • Political Geography: Germany, Global Focus
  • Author: Amirah El-Haddad
  • Publication Date: 01-2018
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This discussion paper is available below in both Arabic (2019) and English (2018). The structural transformation of countries moves them towards more sophisticated, higher-value products. Network analysis, using the Product Space Methodology (PSM), guides countries towards leading export sectors. The identification process rests on two pillars: (1) available opportunities, that is, products in the product space that the country does not yet export which are more sophisticated than its current exports; and (2) the stock of a country’s accumulated productive knowledge and the technical capabilities that, through spillovers, enable it to produce slightly more sophisticated products. The PSM points to a tradeoff between capabilities and complexity. The methodology identifies very basic future products that match the two countries’ equally basic capabilities. Top products are simple animal products, cream and yogurt, modestly sophisticated plastics, metals and minerals such as salt and sulphur for Egypt; and slightly more sophisticated products such as containers and bobbins (plastics) and broom handles and wooden products for Tunisia, which is the more advanced of the two countries. A more interventionist approach steers the economy towards maximum sophistication, thus identifying highly complex manufactured metals, machinery, equipment, electronics and chemicals. Despite pushing for economic growth and diversification, these sectors push urban job creation and require high-skill workers, with the implication that low-skilled labour may be pushed into unemployment or into low-value informal jobs. A middle ground is a forward-looking strategy that takes sectors’ shares in world trade into account. This approach identifies medicaments in the chemicals sector; seats (e.g. car and aeroplane seats) in the “other highly manufactured” sector; inflated rubber tyres in the chemicals community (plastics and rubber); containers, bobbins and packages of plastics also in the plastics and rubber section; and articles of iron and steel in the metals sector for Egypt. The top product for Tunisia is furniture in the highly manufactured and special purpose goods community, followed by three products in plastics and rubber in the chemicals community, and finally three machinery sectors.
  • Topic: Development, Economic Growth, Exports, Economic Development
  • Political Geography: Middle East, North Africa, Egypt, Tunisia
  • Author: Clare Castillejo
  • Publication Date: 01-2017
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: The European Union’s (EU) Migration Partnership Framework (MPF) was established in June 2016 and seeks to mobilise the instruments, resources and influence of both the EU and member states to establish cooperation with partner countries in order to “sustainably manage migration flows” (European Commission, 2017a, p. 2). Its strong focus on EU interests and positive and negative incentives mark a departure from previous EU migration initiatives and have generated significant controversy. This Discussion Paper examines the politics, implementation and impact of the MPF more than one year on from its establishment, asking what lessons it offers for the future direction of EU migration policy. The paper begins by introducing the MPF and examining the different perspectives of EU actors on the framework. It finds that there is significant disagreement both among EU member states and within EU institutions over the MPF’s approach and priorities. The paper explores the political and ethical controversies that the MPF has generated, including regarding its ambition to subordinate other areas of external action to migration goals; its use of incentives; and its undermining of EU development and human rights principles. The paper assesses the implementation and impact of the MPF in its five priority countries – Ethiopia, Mali, Niger, Nigeria and Senegal. It argues that the concrete achievements of the migration partnerships have been limited; that the MPF has largely failed to incentivise the cooperation that the EU was seeking; and that the EU’s migration programming in MPF partner countries has suffered from serious flaws. The paper takes an in-depth look at the Ethiopia partnership, which has been the most challenging. It describes how the interests and goals of the EU and Ethiopia have not aligned themselves, how the issue of returns has come to entirely overshadow engagement, and how the relationship between the partners has been soured. The paper goes on to examine how the MPF relates to African interests and how it has affected EU-Africa relations, arguing that the MPF approach is seen by many African actors as imposing EU interests and undermining African unity and continental ambitions. Finally, it explores how the EU can develop engagement with Africa on migration issues that is more realistic, constructive, and sustainable, with the aim of fostering intra-African movement and economic opportunities; ensuring protection for refugees and vulnerable migrants; and allowing both continents to benefit from large-scale, safe and orderly African labour migration to Europe. However, it warns that any such shift will require a change in mindset by European leaders and populations.
  • Topic: Development, International Cooperation, Migration, Labor Issues, Refugees, Economy
  • Political Geography: Africa, Europe, Ethiopia, Senegal, Nigeria, Mali, Niger, European Union
  • Author: Giulio Regeni, Georgeta Vidican Auktor
  • Publication Date: 01-2017
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: The ‘developmental state’ is a highly debated notion in development literature, having evolved from the extraordinary experience of late industrialising countries in East Asia. In this Discussion Paper we join a growing number of scholars to argue that changing global conditions call for a revitalisation of the debate on the role of the state in social and economic transformation in the 21st century. We focus on three main global challenges for economic development in the 21st century: climate change and environmental degradation; increased digitalisation (the increasingly ‘bit-driven’ economy); and changed policy space for individual states as a result of globalisation. These evolve simultaneously and reinforce each other. We argue that the global context calls for a change in the social contract that underpins structural economic transformation, by placing a stronger emphasis on cultivating inclusive state-society relations oriented towards promoting economic growth within planetary boundaries. Such emphasis is, in our view, currently under-represented in the emerging literature on a developmental state in the 21st century. For this reason, we consider it relevant not only to elaborate on the historical conditions that shaped the role of the state in industrial policy in late industrialising countries, but also on current challenges that call for a changing perspective on the role of the state in emerging and developing countries.
  • Topic: Climate Change, Development, Environment, Globalization, State, Economic Development
  • Political Geography: Global Focus
  • Author: Benito Müller, Leigh Johnson, David Kreuer
  • Publication Date: 01-2017
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: Weather risk is an issue of extraordinary concern in the face of climate change, not least for rural agricultural households in developing countries. Governments and international donors currently promote ‘climate insurance’, financial mechanisms that make payouts following extreme weather events. Technologically innovative insurance programmes are heralded as promising strategies for decreasing poverty and improving resilience in countries that are heavily dependent on smallholder agriculture. New subsidies will amount to hundreds of millions of dollars, yet funders and advocates have thus far neglected the social and ecological ramifications of these policies. Reviews have focused largely on near-term economic effects and practical challenges. This briefing draws on an initial inventory of potential adverse effects of insurance programmes on local agricultural systems that we have recently assembled. Our review shows that farmers with insurance may alter their land-use strategies or their involvement in social networks previously used to mitigate climate risk. Both processes constitute crucial feedbacks on the environmental and the social systems respectively.
  • Topic: Agriculture, Climate Change, Development, Environment, Science and Technology
  • Political Geography: Germany, Global Focus