Content Type: Working Paper / Publication Year: within 5 Years and within 25 Years / Topic: Development

1. The Implications of Financial Development for Economic Growth in CEMAC

Author:: Jean-Cedric Kouam
Publication Date:: 02-2023
Content Type:: Working Paper
Institution:: The Nkafu Policy Institute
Abstract:: In recent years, the Economic and Monetary Community of Central Africa (CEMAC) has experienced sluggish economic growth. This has fallen from 4.86% in 2010 to 0.04% in 2021 (World Bank, 2021), a drop of 4.82 percentage points in a decade. In addition to the high vulnerability of economies to exogenous shocks, several economists such as Asteriou & Spanos (2019) attribute the slowdown in growth to the underdevelopment of the financial sector. In CEMAC, the access of populations to mobile money or commercial bank deposit services has undoubtedly become insufficient to keep economies on a sustainable and inclusive growth path. This article reviews the evolution of financial development indicators in the CEMAC zone since 2013, and its impact on the performance of states in terms of economic growth. We use secondary data collected from the World Bank and the Bank of Central African States (BEAC), between 2013 and 2021. The analysis provides public authorities in CEMAC with arguments to promote financial development in the sub-region to boost economic growth, and better take advantage of the opportunities of the African Continental Free Trade Area (AfCFTA). The paper is structured in two sections. Section 1 presents the evolution of financial development indicators in CEMAC and section 2, the implications for economic growth and sustainable development.
Topic:: Development, Regional Cooperation, Finance, Economic Growth, and CEMAC (Central African Economic and Monetary Community)
Political Geography:: Africa and Central Africa

2. Financial Autonomy of Decentralized Local Authorities and Local Development

Author:: Herve Ondoua, Bin Meh, Boris Andzanga Ndzana, and Jean-Cedric Kouam
Publication Date:: 02-2023
Content Type:: Working Paper
Institution:: The Nkafu Policy Institute
Abstract:: The financial autonomy of Decentralized Territorial Collectivities (DTCs) is today considered as the foundation of local governance. It confers decision-making power in financial matters to municipalities and regions, as well as a certain level of independence in the management of the resources at their disposal. In Cameroon, the general principles of financial autonomy are defined in the law on the General Code of DTCs, in particular in the Fifth Book, which repeals the law establishing the financial regime of local authorities and that on the financial regime of the State. Thus, financial autonomy should enable DTCs to develop by using their own resources in improving the living conditions of their populations. Despite these powers, DTCs still depend for the most part on income from municipal taxes and income transferred by the State. However, DTCs in Cameroon have real economic and financial potential but not a degree of financial autonomy that would allow them to accelerate the development of their locality. This reflection is aimed at local elected officials, political authorities, government authorities and civil society, with the aim of examining the effectiveness of financial autonomy in the face of the economic and financial potential of DTCs and their ability to implement their own local development projects. This article relates financial autonomy and local governance, on the one hand, and shows how financial autonomy is a factor of valorization of local resources, on the other hand.
Topic:: Development, Government, Finance, Local, Decentralization, and Autonomy
Political Geography:: Africa and Cameroon

3. Localising the SDGs in India: The Role of Government and Private Training Institutes

Author:: Sreerupa Sengupta and Avik Sinha
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: German Institute of Development and Sustainability (IDOS)
Abstract:: The Sustainable Development Goals (SDGs) present a new and coherent way of thinking about diverse facets of development. Implicit in the framework of the SDGs is that the goals are interconnected and interdependent. To translate such critical ideas into reality, countries need new skills, perspectives and approaches to the implementation of policies and programmes. Capacity-building, in particular for the public sector, is therefore at the core of achieving the 2030 Agenda. Although all countries have designed their respective capacity-building strategies and undertaken various interventions for knowledge dissemination among government officials and other stakeholders on the SDGs, there are wide variations between countries regarding the progress on capacity-building initiatives. In many developing countries, the heterogeneity of the political, societal and economic structures poses one of the biggest challenges to capacity-building for the localisation of the SDGs. This discussion paper explores and maps the SDG training landscape for government officials in India. As a particularly heterogeneous country in political, economic and cultural terms, India is an interesting example to explore the challenges of capacity-building in many developing countries towards the achievement of the SDGs. Against this background, the study aims to achieve the following: a) to understand the role of government and private actors in building the capacity of government officials to respond to the 2030 Agenda b) to understand the resources required for capacity-building on the SDGs c) to identify the current shortcomings in capacity-building efforts d) to develop recommendations for a more coordinated and effective strategy that will strengthen the capacity-building initiatives of India This paper highlights the relevance of the evidence for creating better processes, even in the sphere of sensitisation, capacity-building and advocacy. A major contribution of the paper is to help India develop an evidence-based policy on SDG trainings. This paper will also assist other countries that are currently tackling similar kinds of challenges in the realm of capacity-building for the SDGs in designing a comprehensive capacity-building strategy for effective implementation of the SDGs.
Topic:: Development, Government, Sustainable Development Goals, and Capacity
Political Geography:: South Asia and India

4. The Opportunities and Challenges of Industry 4.0 for Industrial Development: A Case Study of Morocco’s Automotive and Garment Sectors

Author:: Georgeta Vidican Auktor
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: German Institute of Development and Sustainability (IDOS)
Abstract:: The development and application of advanced manufacturing technologies (known as Industry 4.0) have been enabled by the fast-paced process of digital transformation. These transformations are expected to have major implications on the reorganisation of global value chains as well as on labour markets. For late-industrialising countries, Industry 4.0 brings both opportunities and challenges. On the one hand, it opens opportunities in terms of improving competitiveness, learning and export markets. On the other hand, however, it may devalue the traditional competitive advantage based on low labour costs, creating difficult-to-tackle challenges on labour markets related to unemployment and new demands for reskilling and upskilling. This paper explores these aspects through the lens of one country, Morocco, and two very different sectors: automotive and apparel. Morocco is a lower-middle-income country that has capitalised on its proximity to Europe and succeeded in developing a dynamic export-oriented automotive industry. The garment sector, which is critical for employment, has been generally neglected by the industrial development strategies. However, Industry 4.0 and its implications on global value chains are likely to affect both sectors, although in different ways. Our analysis clearly shows that interventions must be tailored to the different degrees of technological readiness. The automotive sector is driven more by the needs of major original equipment manufacturers. Therefore, industrial policy should focus on setting the framework conditions, enabling upgrading by investing in research and development, and shifting incentives towards facilitating local suppliers to better integrate with higher-tier suppliers. In the garment sector, policy interventions need to be more comprehensive, from developing a long-term vision to building awareness on technological upgrading and new business models enabled by digitalisation and automation. Moreover, there is extensive scope for industrial policy to contribute to building basic technological and knowledge capabilities all along the garment supply chain and to attracting investment.
Topic:: Development, Manufacturing, Industry, and Global Value Chains
Political Geography:: North Africa and Morocco

5. New Rules, Same Practice? Analysing UN Development System Reform Effects at the Country Level

Author:: Silke Weinlich, Max Otto Baumann, Maria Cassens-Sasse, Rebecca Hadank-Rauch, Franziska Leibbrandt, Marie Pardey, Manuel Simon, and Anina Strey
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: German Institute of Development and Sustainability (IDOS)
Abstract:: With its unique multilateral assets, the United Nations Development System (UNDS) should be playing a key role in assisting governments and other stakeholders with their implementation of the 2030 Agenda for Sustainable Development. But this requires change. Despite improvements in recent decades, too often the UNDS has continued to act as a loose assemblage of competing entities, undermining its effective support for Sustainable Development Goal (SDG) implementation. It is against that backdrop that the UNDS has been undergoing an extensive reform – that was decided on in 2018 and has been implemented since 2019 – to provide more coherent, integrated support in line with requirements of the 2030 Agenda to United Nations (UN) programme countries. What effects have the reforms yielded at the country level? This paper presents the main findings, conclusions and recommendations from our research on UNDS reform implementation. It does so with a focus on reform-induced changes towards what we call a strengthened, collective offer at the country level. Overall, our research shows that reform implementation is moving the needle on the quality of the collective offer. In particular, with regard to its institutional element, we observed that the reform has fostered change in how UN country teams work together that is in line with what the 2030 Agenda demands. Institutional changes allow for increased cross-organisational and cross-sectoral coordination, which could potentially lead to increased policy coherence. But while we see substantial progress, it remains incomplete, fragile and subject to structural limitations. A more critical picture emerges with regard to change in the substantive component of the collective offer in the areas of SDG integration, cross-border work and normative approaches. While there were positive examples, we found little evidence of a systematic repositioning in these areas. The adjustment of the UNDS to the 2030 Agenda does not (yet) meet the expectations derived from the UN’s own reform ambition.
Topic:: Development, United Nations, Reform, and Sustainable Development Goals
Political Geography:: Global Focus

6. Sign of the Times: How the United Kingdom’s Integrated Review Affects Relations with Africa

Author:: Zainab Usman and Jonathan Glennie
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: In March 2021, the British government published a vision document: “Global Britain in a Competitive Age: The Integrated Review of Security, Defence, Development and Foreign Policy.”1 Previously, the government had issued documents on security, defense, development, or foreign policy, but this integrated review bundled together all aspects of policy related to a vision of a so-called Global Britain. This newly integrated approach to policymaking mirrors a strategic consolidation within the UK government, specifically the merger of the Department for International Development (DFID) with the Foreign and Commonwealth Office to become a new Foreign, Commonwealth and Development Office (FCDO). While the review is framed as a necessary response to a changing global landscape, domestic political considerations around the British exit from the European Union (Brexit) weigh heavily. The review also points to the current UK government’s inclination to prize geopolitical competition over a previous emphasis on global cooperation. Steep cuts to the UK’s generous foreign aid budget as well as the abolition of DFID have already drawn significant academic, policy, and media attention. Yet these actions are part of a broader UK strategy to redefine the country’s relations to the rest of the world, with significant implications beyond the controversial foreign aid cuts for poor countries, including those in Africa. The review will shape relations with a continent that has deep historical ties from the colonial era, a large diasporic presence, and long-standing economic relations with the UK. This analysis draws out the implications of the UK’s 2021 integrated review for African countries and recommends next steps for African and other international stakeholders to navigate the UK’s overhauled external relations strategy.
Topic:: Security, Foreign Policy, Defense Policy, Development, and Integration
Political Geography:: Africa and United Kingdom

7. Negotiating Local Business Practices With China in Benin

Author:: Folashade Soule
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Commercial negotiations between Benin and China demonstrate how both sides navigate the dynamics of Africa-China business-to-business relationships. In Benin, Chinese and local Beninese officials engaged in drawn-out negotiations on a deal to construct a business center aimed at deepening business links between Chinese and Beninese merchants. Strategically located in Cotonou, Benin’s principal economic city, the center aims to promote investment and wholesale businesses by serving as a hub for China’s business-to-business relations not just in Benin but regionally in West Africa, especially in the large and growing neighboring market of Nigeria. This paper relies on original research and fieldwork conducted in Benin from 2015 to 2021 and the author’s access to draft and final contracts from the negotiations, which allow for a side-by-side comparative textual analysis, as well as initial field interviews and follow-up interviews with key negotiators, Beninese businessmen, and former Beninese students in China. The paper shows how Chinese and Beninese authorities negotiated the establishment of the center and, above all, how Beninese authorities made Chinese negotiators adapt to local Beninese labor, construction, and legal norms and put pressure on their Chinese counterparts. This strategy meant that negotiations took longer than usual to complete. China-Africa cooperation is often characterized by speedy negotiations, an approach that in some cases turns out to be harmful—since this can allow vague and unfair clauses to be featured in final contracts. The negotiations over the Chinese business center in Benin is a good example of how well-coordinated negotiators that take their time and work in coordination with various counterparts throughout the government can help facilitate better outcomes in terms of high-quality infrastructure and compliance with prevailing construction, labor, environmental, and business norms, while also preserving a good bilateral relationship with China.
Topic:: Foreign Policy, Development, Bilateral Relations, and Business
Political Geography:: Africa, China, Asia, and Benin

8. How Huawei’s Localization in North Africa Delivered Mixed Returns

Author:: Tin Hinane El Kadi
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Trade between China and North Africa has increased significantly since the early 2000s, but it has largely reproduced patterns of unequal exchange. Since they were unveiled, the Belt and Road Initiative (BRI) and the Chinese government’s 2016 Arab Policy Paper have signaled the promise of a qualitative shift in China’s engagement with the region. China has committed to increase investments in high-value-added sectors and to boost cooperation in science and technology with countries across North Africa. The digital space is a notable aspect of recent China–North African partnerships. Chinese tech firms are becoming ever more important actors in North Africa through the Digital Silk Road, the digital component of the BRI. North African governments see the Digital Silk Road as an opportunity to help bridge the digital divide and bolster their own national efforts to build digital economies and create high-quality jobs for the millions of unemployed university graduates across the region. In recent years, the region has become home to notable Digital Silk Road projects such as smart cities, satellite navigation centers, data centers, and network infrastructure. Huawei’s localization strategies in Algeria and Egypt show that, far from imposing a one-size-fits-all blueprint on other countries, as Beijing is often depicted as doing in U.S. and European media and policy discussions, Chinese tech players adapt their engagement depending on local development agendas. Flexibility, customization, and services tailored to local demand have been cornerstones of Huawei’s localization strategies in North Africa. Accommodating local development priorities is central to Huawei’s success in globalizing its business ventures. The Chinese firm has responded favorably to Algeria’s and Egypt’s attempts to leverage foreign companies for conducting more value-added activities within their respective economies. Among other things, Huawei opened its first African factory in Algeria, employing Algerians to assemble products for and beyond the Algerian market. It also launched an OpenLab for conducting research and development (R&D) activities in Egypt and established partnerships with several universities in the region to train local students. However, closer scrutiny of Huawei’s localization in both Algeria and Egypt indicates that the company improved its brand image without engaging in meaningful capacity building. For all its success at winning the hearts of government officials across the region, Huawei has engaged in training, manufacturing, and R&D in a way designed to maintain the firm’s technological edge. The Chinese tech giant has managed to localize seemingly developmental activities in North Africa without contributing much to technological upgrading. North African governments should take lessons from China’s playbook of how it became a technological superpower. This means adopting policies that could maximize the benefits of Chinese and non-Chinese investments by ensuring positives spillovers and protecting potential local tech champions. Increasing economic integration across North African countries and moving beyond fragmented bilateral commercial negotiations with China are two steps that may help level the playing field with the Asian giant.
Topic:: Development, Science and Technology, Telecommunications, Huawei, and Digital Space
Political Geography:: China, Asia, Algeria, North Africa, and Egypt

9. Wartime governance and state-building trajectories in post-conflict societies

Author:: Patricia Justino
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: To date, there is limited understanding about the consequences of wartime dynamics for post-war state-building processes. This paper explores one such dynamics—the forms of governance exercised by armed groups during wartime—and proposes a theoretical framework outlining how forms of wartime governance affect trajectories of state-building in the aftermath of civil wars. Six possible trajectories are mapped out: stable democracy, weak democracy, stable autocracy, fragmented rule, contested autocracy, and durable disorder. Each trajectory is shaped by the interaction between two dimensions of wartime governance: how armed groups build institutional capacity in wartime and the characteristics of wartime civilian rule by armed groups. The core argument is that civil wars generate within themselves bureaucratic and institutional capacity—through how armed groups govern territories and civilians within them—that under certain circumstances may be harnessed in the post-war period to build states capable of governing. The characteristics and durability of those forms of wartime governance shape the type of statebuilding and political regime trajectories that emerge in the post-war period.
Topic:: Political Violence, Development, War, Conflict, Peace, and State Building
Political Geography:: Global Focus

10. Aid’s impact on democracy

Author:: Miguel Niño-Zarazúa, Ana Horigoshi, and Rachel M. Gisselquist
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: This paper investigates the impact of foreign aid on democratic outcomes using a panel of countries for the period between 1995 and 2018. In so doing, it speaks to a major critique of foreign aid, which is that it negatively impacts democratic governance. The analysis distinguishes between developmental aid and democracy aid, and examines democracy aid to specific sectors, in order to explore variation across different aid types. It draws on the Organisation for Economic Co-operation and Development’s (OECD) Creditor Reporting System (CRS) data on foreign aid and indices of democracy from the Varieties of Democracy project, employing a combination of a maximum likelihood estimation and structural equation modelling (ML-SEM) model and fixed effects models. Overall, using a more extensive set of data and methods than previous analyses, we offer comprehensive evidence pointing to aid having a positive if modest impact on democratic outcomes. Our analysis suggests this effect is more significant for democracy aid than developmental aid, but there is no evidence of negative impact for either. These results are robust to multiple specifications.
Topic:: Development, Foreign Aid, and Democracy
Political Geography:: Global Focus

11. Does the adoption of peer-to-government mobile payments improve tax revenue mobilization in developing countries?

Author:: Abdoul-Akim Wandaogo, Fayçal Sawadogo, and Jesse Lastunen
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: Developing countries need to raise sufficient tax revenue to finance development. Revenue mobilization is often hampered by limited tax compliance, weak institutions, and technical problems with tax collection. One solution to these challenges is person-to-government (P2G) mobile phone payments, adopted in a number of developing countries since the early 2000s. This study assesses the causal effect of P2G adoption on tax revenue using propensity score matching. According to the matching estimates, countries that adopt P2G services experience a 1.2–1.3 percentage point boost in direct tax revenue as a share of GDP. P2G adoption increases revenue from both corporate and personal income taxes, with larger effects on the latter. The results remain robust to matching quality tests and alternative estimation methods, including function control, two-stage least squares, and system generalized method of moments. The average treatment effects are largest among lower-middle-income countries and countries characterized by limited tax compliance and corruption control, and by low levels of urbanization and domestic credit to the private sector. The findings suggest that developing countries, particularly those with poor institutions and low levels of financial inclusion, should promote the adoption and use of mobile money services for tax transactions.
Topic:: Development, Government, Finance, Economy, and Tax Systems
Political Geography:: Global Focus

12. Exploring social policy trajectories in Mainland Tanzania: Driving for gender-inclusive development?

Author:: Roosa Lambin and Milla Nyyssölä
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: In July 2020, the United Republic of Tanzania gained the status of a lower-middleincome country. This came after two decades of significant social policy reforms and transformations in the country’s economic structures. This paper explores social policy trajectories in Mainland Tanzania with a gender lens, to better understand the contributions of these developments to inclusive development. More precisely, we examine past and current policy developments across the areas of health policy, social protection, and employment policy, and the level, reach, and quality of government social policy delivery to working-age women. The paper draws on a scoping review of diverse secondary materials, including academic publications, government policy documents, relevant statistics, and other types of literature. The findings indicate that despite significant advancements in the legal frameworks and increasingly gender-responsive government policy plans, Tanzanian social policy delivery remains two-tiered, with differences in provisions for women in the formal and informal sectors. Additionally, women continue to be largely overlooked in the broader industrialization and development strategy, which hinders the achievement of inclusive development in Tanzania.
Topic:: Development, Social Policy, Inclusion, and Gender
Political Geography:: Africa and Tanzania

13. Hidden Defaults

Author:: Sebastian Horn, Carmen M. Reinhart, and Christoph Trebesch
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: China’s lending boom to developing countries is morphing into defaults and debt distress. Given the secrecy surrounding China’s loans, also the associated defaults remain “hidden”, as missed payments and restructuring details are not disclosed. We construct an encompassing dataset of sovereign debt restructurings with Chinese lenders and find that these credit events are surprisingly frequent, exceeding the number of sovereign bond or Paris Club restructurings. Chinese lenders follow a resolution approach reminiscent of 1980s Western lenders; they seldom provide deep debt relief with face value reduction. If history is any guide, multi-year debt workouts with serial restructurings lie in store.
Topic:: Development, International Cooperation, Finance, Bonds, and Influence
Political Geography:: China and Asia

14. Do various innovation linkages enhance innovation? International evidence

Author:: Rajeev K. Goel
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different innovation linkages to innovation deserves more attention. Are the different innovation linkages equally complementary to research inputs in fostering innovation? This paper addresses the contributions of different innovation linkages to innovation, across two different measures of innovation. We find that a broader index of innovation linkages shows positive and significant spillovers on innovation, while joint ventures and university-industry collaborations fail to exert a significant influence. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases, while more FDI boosts one type of innovation output. These findings are uniquely shown to be sensitive across least- and most innovative nations when a quantile regression is employed. Implications for technology policy are discussed.
Topic:: Development, Science and Technology, Innovation, and Research and Development
Political Geography:: Global Focus

15. Can Aid Buy Foreign Public Support? Evidence from Chinese Development Finance

Author:: Lukas Wellner, Brad Parks, Axel Dreher, Andreas Fuchs, and Austin M. Strange
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: Bilateral donors use foreign aid to pursue soft power. We test the effectiveness of aid in reaching this goal by leveraging a new dataset on the precise commitment, implementation, and completion dates of Chinese development projects. We use data from the Gallup World Poll for 126 countries over the 2006–2017 period and identify causal effects with (i) an event-study model that includes high-dimensional fixed effects, and (ii) instrumental-variables regressions that rely on exogenous variation in the supply of Chinese government financing over time. Our results are nuanced and depend on whether we focus on subnational jurisdictions, countries, or groupings of countries.
Topic:: Development, Bilateral Relations, Foreign Aid, and Influence
Political Geography:: China and Asia

16. The Azerbaijani economy in the first four months of 2022: İndependent View

Author:: CESD Research Team
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: CESD – the Center for Economic and Social Development – concluded its macro-economic survey results for the first four months of 2022. According to the State Statistic Committee of Azerbaijan, Gross Domestic Product (GDP) increased by 7.2 % in January-April 2022 compared with the same period of previous year: The CESD’s figure for the same period was 6.5 %.
Topic:: Development, GDP, Economy, and Macroeconomics
Political Geography:: Azerbaijan

17. Lessons from the COVID-19 Crisis: 6 Opportunities to Strengthen Conflict Sensitivity across the HumanitarianDevelopment-Peacebuilding Nexus

Author:: Céline Monnier and Leah Zamore
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: Center on International Cooperation
Abstract:: The COVID-19 pandemic, and efforts to control its spread—including lockdowns, social distancing measures, and border closures—have led to unprecedented health, humanitarian, and socioeconomic shocks worldwide. These shocks, in turn, are raising the likelihood that risks for many forms of violent conflict—crime, armed conflict, violent extremism—may increase. It is crucial for the United Nations (UN) to adopt a conflict-sensitive lens in all relevant operations across the humanitarian, development, and peacebuilding (HDP) nexus to prevent an increasingly volatile situation from deteriorating further.
Topic:: Development, United Nations, Conflict, COVID-19, and Peacebuilding
Political Geography:: Global Focus

18. Putting Development at the Centre of G20 Policy Agenda: Lessons for the T20

Author:: Daniele Fattibene and Alice Fill
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Istituto Affari Internazionali
Abstract:: The G20 Development Working Group has gradually evolved throughout the years, following a haphazard and contradictory path. On the one hand, it has been progressively overshadowed by a sectoralisation of G20 activities, with several action tracks (i.e., the Finance Track) taking a more prominent role in the definition of the leaders’ priorities. On the other hand, its (unexploited) potential has increased due to the emergence of several global crises that have shown the importance of rekindling multilateral solutions at the G20 level. The T20 has a strong potential to boost G20 legitimacy on development cooperation worldwide, by drafting evidence-based and pragmatic policy proposals for the decision-makers. However, although often advocating for similar solutions, the Development Working Group and T20 have not necessarily fed into each other’s policy agendas, leading to misalignment and reducing their chances to influence other G20 tracks on crucial development issues such as development finance, food security or the global climate agenda.
Topic:: Development, Political Economy, Governance, G20, and Sustainability
Political Geography:: Global Focus

19. Digitalization of Special Economic Zones in China

Author:: Jie (Jeanne) Huang
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: China Studies Centre, The University of Sydney
Abstract:: Special Economic Zones (SEZ) have become the forefront in China to test legal and technological reforms for digital trade. This chapter explores three cutting-edge case studies in China’s SEZs: the Beijing blockchain-based Single Window deposit box; newly established big data exchanges in Beijing, Tianjin, and Shanghai SEZs; and pilot projects in financial, medical care and automobile industries to flow data across the border in the Shanghai SEZ. It scrutinizes China's experiments in the context of its applications to join CPTPP and DEPA. It argues that the development of Chinese domestic law for digital trade is shifting away from the traditional paradigm that uses international commitments to push domestic reform or make domestic law according to international law. The development of Chinese domestic law for digital trade relies much more on China’s domestic needs than what FTAs negotiations require. FTAs are increasingly becoming a tool for China to shape international law rather than a benchmark for legislating domestic Chinese law.
Topic:: Development, Economics, International Trade and Finance, Hegemony, and Digitalization
Political Geography:: China and Asia

20. Chronic Crisis Financing? Fifty Years of Humanitarian Aid and Future Prospects

Author:: Gary Milante and Jannie Lilja
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Stockholm International Peace Research Institute
Abstract:: This study maps trends of humanitarian funding in the context of total aid at the country level between 1969 and 2019 and estimates how these trends will change in the future. Historical trends show that the composition of aid has changed significantly in the last two decades: the humanitarian share of total aid to countries has increased from approximately 5 per cent in the 1990s to 23 per cent in 2019. Humanitarian aid was originally intended to respond to short-term emergencies, however, most of today’s humanitarian financing goes to protracted situations. Today many countries receive high levels of humanitarian assistance for a decade or longer, referred to in this paper as ‘chronic’ crises. More than half of total global humanitarian assistance (59 per cent) in the decade 2010–19 went to chronic crises, typically synonymous with conflict-affected, fragile and refugee-hosting settings. These chronic crises have become more prevalent since 1995. Conservative forecasts suggest that 71 per cent of humanitarian assistance over the next decade will continue to go to countries receiving high levels of assistance today. The study concludes with open questions to policymakers regarding the use of the humanitarian financing instrument. In chronic crisis settings, the strategic balance between humanitarian, development and peacebuilding financing and the interplay between these financing streams deserves attention.
Topic:: Development, Humanitarian Aid, Finance, Resilience, and Peacebuilding
Political Geography:: Global Focus

21. Climate Change and Violent Conflict in West Africa: Assessing the Evidence

Author:: Kheira Tarif
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: Stockholm International Peace Research Institute
Abstract:: West Africa is widely cited as a hotspot of climate change and insecurity. This SIPRI Insights uses a systematic literature review of academic research to build a better understanding of the relationship between climate change and violent conflict in the region. Its findings are structured around four established ‘pathways’ of climate insecurity: (a) worsening livelihood conditions; (b) increasing migration and changing pastoral mobility patterns; (c) tactical considerations by armed groups; and (d) elite exploitation of local grievances. The literature review highlights a number of important variables in the relationship between climate change and violent conflict in West Africa: maladaptation to livelihood insecurity; migration away from climate-exposed areas; escalating farmer–herder conflicts; and sometimes weak, sometimes divisive, sometimes exploitative governance. Despite these findings, the literature review reveals current research and policy discussions on climate change and violent conflict in West Africa are informed by a very limited amount of academic research.
Topic:: Security, Climate Change, Development, Conflict, Violence, Risk, and Peace
Political Geography:: Africa and West Africa

22. China’s Development Path: Government, Business, and Globalization in an Innovating Economy

Author:: Yin Yi and William Lazonick
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Institute for New Economic Thinking (INET)
Abstract:: We employ the “social conditions of innovative enterprise” framework to analyze the key determinants of China’s development path from the economic reforms of 1978 to the present. First, we focus on how government investments in human capabilities and physical infrastructure provided foundational support for the emergence of Chinese enterprises capable of technological learning. Second, we delve into the main modes by which Chinese firms engaged in technological learning from abroad—joint ventures with foreign multinationals, global value chains, and experienced high-tech returnees—that have contributed to industrial development in China. Third, we provide evidence on achievements in indigenous innovation—by which we mean improvements in national productive capabilities that build on learning from abroad and enable the innovating firms to engage in global competition—in the computer, automobile, communication-technology, and semiconductor-fabrication industries. Finally, we sketch out the implications of our approach for current debates on the role of innovation in China’s development path as it continues to unfold.
Topic:: Development, Economics, Globalization, Infrastructure, Hegemony, and Innovation
Political Geography:: China and Asia

23. Cooperation against the odds: Getting small firms to work together in unfavourable circumstances

Author:: Kira Gartzou-Katsouyanni
Publication Date:: 11-2022
Content Type:: Working Paper
Institution:: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:: How can we get small firms to work together in order to achieve mutually beneficial outcomes, despite adverse circumstances? This policy paper provides an answer to this question that could be useful both to policymakers and to local stakeholders seeking to undertake innovative, cooperative economic activities in their area. Based on evidence from eight case studies within the Greek agri-food and tourism sectors, I argue that a small group of local actors, whom I call ‘institutional entrepreneurs’, usually play a key role in catalysing the emergence of cooperation at the local level. Their strategies and experiences carry valuable insights. I also outline the characteristics that macro-level institutional frameworks need to have if they are to facilitate local cooperation. These characteristics can inform the design of institutions at both the domestic and the EU level. The paper’s findings could be relevant to people interested in local development, but also to those concerned with boosting the productivity and export orientation of the Greek economy as a whole. After all, cooperation can improve the performance of small firms, and it is thus an important ingredient for inclusive growth in countries with a lot of small firms, such as Greece.
Topic:: Development, Economy, Business, and Production
Political Geography:: Europe and Greece

24. The Second Phase of the EU Southern Gas Corridor: Which role for Azerbaijan?

Author:: Marika Karagianni
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:: The operation of the Southern Gas Corridor marks the first attempt of the EU to diversify its pipeline gas supplies and routes beyond Russia. The 2nd Phase of the Corridor, which involves the operation of several gas interconnectors in South Eastern Europe, is being promoted, while the EU is looking for additional supply sources, namely LNG. The Russian invasion of Ukraine, coupled with the intense energy crisis in Europe, has reinforced these trends. Field development in Azerbaijan and future prospects for LNG exports, primarily from the US, are discussed in this article as realistic options for alternative supply sources for Europe.
Topic:: Development, European Union, Gas, Exports, and Pipeline
Political Geography:: Europe, Central Asia, and Azerbaijan

25. EU-Africa relations ahead of the EU-AU Summit: Taking stock, looking forward

Author:: Pavlos Petidis
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:: The European Union’s (EU) development policy is a broad field of activity that has undergone multiple significant modifications in both its definitions and its goals. The external relations of the European Union have long included development policy, resulting in an asymmetrical relationship with Africa. Since the turn of the century, the scope of the EU-Africa relationship has expanded to cover new challenges including climate change, terrorism, trade liberalization, and migration. EU development policies reveal a long-term shift in EU development priorities away from fundamental development goals and toward a wider array of ambitions, actors, and methodologies. Identifying and prioritizing the International Organizations on which it and its member states should best focus their diplomatic and political capital is a challenge. Given the political clout and relevance of the African Continental Free Trade Area (AfCFTA) for the continent’s economic development, the EU can concentrate its efforts on encouraging its implementation by deepening its Economic Partnership Agreements (EPAs). Working together to strengthen multilateralism and support the implementation of the European Green Deal and the AfCFTA form the axis of a new articulated African agency.
Topic:: Climate Change, Development, Diplomacy, Migration, Terrorism, European Union, Partnerships, and African Union
Political Geography:: Africa and Europe

26. The Indo-Pacific Partnership and Digital Trade Rule Setting: Policy Proposals

Author:: Lurong Cheh
Publication Date:: 12-2022
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: The idea of the Indo-Pacific was borne from a global trend that has (re)oriented the centre of the world’s economic gravity to the East. Accelerating digital transformation to harness gains from technology are in countries’ common interests. The launch of the Indo-Pacific Economic Framework for Prosperity tends to supplement economic benefits to the Indo-Pacific. Becoming more deeply involved in the digital economy will require Indo-Pacific members to commit to new international norms on digital trade, of which trade liberalisation of electronic transmissions, free flow of data with trust, cybersecurity, and intellectual property rights protection must be prioritised.
Topic:: Development, International Trade and Finance, Regional Cooperation, and Digital Economy
Political Geography:: Asia and Indo-Pacific

27. Japan and the Regional Comprehensive Economic Partnership (RCEP)

Author:: Mie Oba
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: This paper aims to clarify the role of Japan in the process leading up to the establishment of the Regional Comprehensive Economic Partnership (RCEP). While emphasising that respect for the centrality of the Association of Southeast Asian Nations (ASEAN) was a principle of RCEP, Japan played a leading role in the process of RCEP negotiations. For Japan, RCEP is one of the fruits of its strategy in East Asia/Asia-Pacific that began the mid-1990s to protect and increase the interests and advantages of Japanese business and retain Japan’s political leverage in the region. When substantial negotiations for RCEP began in 2013, its importance for Japan was secondary to other free trade agreements (FTAs) including the Trans-Pacific Partnership, China–Japan–Korea FTA, and Japan–European Union FTA. However, the Government of Japan and the business community had set a lot of economic and strategic goals in promoting RCEP. After the withdrawal of the United States (US) from the Trans-Pacific Partnership, RCEP was seen as an essential framework for establishing a rules-based regional order in the Indo-Pacific region. Although it was after India’s withdrawal from the RCEP negotiations, Japan further emphasised the importance of RCEP as the measure to sustain and foster the rule-based regional order and simultaneously pursued the conclusion of negotiations and the establishment of high-level rules, achieving some success. Ultimately, the havoc brought about by the coronavirus disease (COVID-19) pandemic and the sense of crisis in the traditional liberal international order caused by the intensifying strategic competition between the US and China, drove the conclusion of RCEP. RCEP will be increasingly important for economic order in Japan and Asia in the coming years. Ironically, as the strategic competition between the US and China escalates and leads to a surge in protectionism, the economic and strategic importance of RCEP – an FTA that incorporates China – is becoming more significant as a measure to counter unilateralism and protectionism. In addition, RCEP needs elements that address globalisation’s adverse effects and pitfalls, in areas such as the environment, labour rights, and a reduction in the disparity between the rich and poor.
Topic:: Development, Economics, International Trade and Finance, and Regional Cooperation
Political Geography:: Japan and Asia

28. Projecting Infrastructure Needs and the Financing Mechanism: A Review of Estimations by ADB, McKinsey, and the OECD

Author:: Fauziah Zen and Michael Regan
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: How much does a country, a region, and the world need to spend on infrastructure development to fulfil demand? This question has been asked frequently because governments try to see it as a reference for budget allocation and evaluation of development progress. Since infrastructure consists of a wide range of types, qualities, and sizes, it is difficult to come up with a number that represents these variants. Several widely cited attempts have been made to provide estimations of infrastructure needs. This paper aims to assess the features, scope, methods, and suggested financing mechanism of the projections made by the Asian Development Bank (2017), the Organisation for Economic Co-operation and Development (2017), and the McKinsey Global Institute (2016). It is not meant to focus on the limitations of these projections, but to understand the process used to put these estimates together and the extent to which they provide comparative information.
Topic:: Development, Economics, Emerging Markets, and Infrastructure
Political Geography:: Asia and ASEAN

29. Implicit Subsidies for Infrastructure and Their Implications for Contingent Liabilities in Selected East Asian Countries

Author:: Astrid Dita and Sandy Maulana
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: A government's investment decision for infrastructure development is a form of budget commitment which results in direct liabilities and possible contingent liabilities. The latter is often overlooked when the project preparation is weak where potential risks are insufficiently identified and mitigated and its impact on budget sustainability may worsen in the absence of sound surveillance. Infrastructure projects may thus lead to unmitigated fiscal risk without proper investment decision-making and monitoring framework particularly in the presence of less-than-mature fiscal systems and low public investment management capacity (e.g. as demonstrated by the inability to develop sound project business cases or distinguish project financing from funding issues).
Topic:: Development, Infrastructure, Governance, and Investment
Political Geography:: Asia and ASEAN

30. A Global Development Paradigm for a World in Crisis

Author:: Rachael Calleja, Beata Cichocka, Mikaela Gavas, and Samuel Pleeck
Publication Date:: 11-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: This paper explores how and whether responses to COVID-19, particularly from non-DAC actors, have deepened the transition from an “international” to a “global” development paradigm, and it considers implications for the future of development cooperation. To do so, we map international responses to COVID-19—financial and beyond—to understand the changing nature of development challenges and cooperation as well as the growing role of non-DAC actors as part of this shift. Our analysis shows that while a diversity of actors contributed to international COVID-19 responses, the transition towards a global development paradigm has yet to materialize. Instead, responses to COVID-19 demonstrated clear tensions between the imperative for collaboration and the national interest, with the latter trumping the former.
Topic:: Development, International Cooperation, Pandemic, and COVID-19
Political Geography:: Global Focus

31. Building a Portfolio of Pull Financing Mechanisms for Climate and Development

Author:: Ranil Dissanayake and Bernat Camps Adrogue
Publication Date:: 11-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: Pull financing is a powerful but underused mechanism for incentivising progress on hard-to-tackle social problems for which innovation or the take-up of innovation may be part of the solution. It should become part of the ongoing landscape for climate and development work. This paper sets out the specific design features for a portfolio of pull financing mechanisms to support the accelerated development of socially valuable innovations with both climate and development implications. It considers the institutional structure required to manage such a novel mechanism, a process for finding and developing a potential application, and the objectives pull financing should pursue. It then looks in detail at seven applications of pull financing in the climate and development space, each selected to illustrate the potential and challenges of the approach. We conclude by setting out how to construct a high-ambition portfolio of pull financing projects that is both tractable and attractive to potential funders.
Topic:: Climate Change, Development, Environment, and Finance
Political Geography:: Global Focus

32. The Next Game Changers: A Priority Innovation Agenda for Global Health

Author:: Cordelia Kenney and Rachel Silverman
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: Over the last century, scientific and technological innovation has led to unprecedented improvements in health outcomes—yet research and development (R&D) investments and progress to address health threats has been uneven. Commercial R&D has focused where investors can expect substantial financial returns: rich countries, the diseases that affect them, and high-tech solutions designed for the richest and most sophisticated systems. Despite supplemental funding from philanthropic and government grants, R&D to address many leading causes of death and disability—especially those that primarily affect low- and middle-income countries (LMICs) or insure against future risk—has been consistently underfunded relative to potential health gain. This implies that many untapped opportunities remain to dramatically improve global health and welfare via biomedical innovation. In this paper, we report the results of a horizon-scanning exercise to source opportunities for global health R&D investment—that is, high-value potential biomedical innovations which are currently underfunded but which could be transformative for health, quality of life, and health security in LMICs and around the world. Drawing from a literature review and expert interviews with researchers, economists, funders, advocates, and implementers, we lay out an expansive and high-promise (though non-comprehensive) biomedical innovation agenda for global health spanning the unfinished MDG agenda; non-communicable diseases; and global health security. We conclude with a discussion of implications for research, funding, and practice.
Topic:: Development, Health, Science and Technology, Innovation, and Emerging Technology
Political Geography:: Global Focus

33. Is There a Better Way to Use Global Reserves?

Author:: Mark Plant
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: Global reserves can serve as a global public good, facilitating the short-term global recovery from the economic impacts of the pandemic and Russian invasion of Ukraine, as well as the longer-term global transition to a sustainable and equitable economic future. Strategic allocation of Special Drawing Rights (SDRs) could facilitate sharing of global reserves with low- and middle-income countries to the mutual benefit of advanced and developing countries. This will require the development of new SDR sharing mechanisms, in which multilateral development banks could be instrumental. Other SDR reforms should also be pursued.
Topic:: Development, Multilateralism, Sustainability, and Banking
Political Geography:: Global Focus

34. What’s the Best Way to Bolster the IMF’s Capacity to Lend to Low-Income Countries?

Author:: David Andrews
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: The IMF’s concessional lending to low-income countries through its Poverty Reduction and Growth Trust (PRGT) has risen dramatically since the start of the pandemic and demand for the PRGT resources is expected to remain above pre-pandemic levels for quite some time. But the surge in lending has strained the PRGT's finances—loan resources have dwindled, subsidy costs have risen sharply, and reserves need bolstering. Projections show the risks to PRGT financing are accentuated given the Russian invasion of Ukraine and rising global interest rates. A multi-pronged decade-long effort is needed to ensure sound PRGT financing: (1) reinforce current fundraising efforts for loan and subsidy resources; (2) promote the use of the PRGT's deposit investment account; (3) terminate the reimbursement of PRGT administrative resources to the IMF's General Resources Account and (4) begin a discussion on IMF gold sales to take place in the out years. Each prong of the effort should start immediately, given the time lags involved in reaching consensus and implementation.
Topic:: Development, International Cooperation, Finance, and IMF
Political Geography:: Global Focus

35. Why and How Development Agencies Facilitate Labor Migration

Author:: Helen Dempster and Beza Tesfaye
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: Development agencies in high-income countries spend a large amount of both official development assistance (ODA) and other forms of financing on migration programming. While most of this spending is aimed at deterring migration, increasingly more is being focused on facilitating migration: to the high-income country itself; within and between low- and middle-income countries; and supporting people on the move and the diaspora. This paper, written by the Center for Global Development and Mercy Corps, aims to explore why and how development agencies in high-income countries facilitate labor, or economic, migration, and how they have been able to justify and expand their mandate in this area. Based on interviews with nine development agencies, we find that development agencies use a range of arguments to justify their work in this area, including supporting economic development and poverty reduction in partner countries while also meeting labor market demands at home or other countries. Yet expanding a mandate in this area requires substantial cross-government coordination and political buy-in, both of which are difficult to achieve. It also requires the ability to be able to use ODA to facilitate labor migration, which is currently up for debate. As development agencies seek to expand their work on labor migration, it will be necessary to define shared goals and start with pilot projects that focus on low-hanging fruit, while maintaining a focus on development and poverty reduction.
Topic:: Development, Migration, Diaspora, and Labor Issues
Political Geography:: Global Focus

36. Assessment of Expenditure Choices by Low- and Low- Middle-Income Countries During the Pandemic and Their Impact on SDGs

Author:: Sanjeev Gupta and Lucas Sala
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: Until the COVID pandemic, public spending in low- and low-middle-income countries had been growing modestly. As a result, governments expanded service provision, including in social sectors, and enlarged welfare programs. This was made possible in part by domestic revenue growth. However, the pandemic has significantly lowered revenue receipts of these countries, while creating pressures to spend more on shielding the population and providing support to the economy. Unfortunately, health outlays did not increase as a share of total output during 2000-2018. The preliminary evidence compiled in this paper shows that health spending in relation to GDP increased virtually in all low and low-middle income countries in 2020, though not by as much as in advanced economies. However, higher health spending in low and low-middle income countries is unlikely to be sustained because of the pandemic’s adverse impact on revenues and other spending pressures. Furthermore, COVID has critically scarred the future productivity of these countries. Before the pandemic, the achievement of the Sustainable Development Goals (SDGs) by 2030 was doubtful in part because of the slow pace in generating additional revenues from domestic sources. As the financing needs have increased, the achievement of these goals will be delayed beyond 2030, unless additional financing sources can be found. This means that policy actions will need to be taken by these countries to create additional fiscal space going forward. There is potential to raise more revenues from domestic sources by implementing politically difficult policy measures and generating savings by improving the quality of public spending, including on health.
Topic:: Development, Sustainable Development Goals, Sustainability, Pandemic, and COVID-19
Political Geography:: Global Focus

37. Understanding the Cost-Effectiveness of COVID-19 Vaccination in Nigeria

Author:: Helen Dempster, Jennifer Dew, Samuel Huckstep, Martina Castigliono, and Cassandra Zimmer
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: The Global Compact for Safe, Orderly, and Regular Migration (GCM) calls on countries of destination to both expand regular migration pathways and take steps to increase the development impact of these pathways. Migration can have a positive impact on the economic development of migrants themselves, their families, their countries of origin, and their country of destination, if aspects such as integration, remittances, and skill transfers are prioritized. This paper, produced by the Center for Global Development (CGD) and the UK office of the International Organization for Migration (IOM), outlines lessons for the UK Government to implement if they are to increase the development potential of both their existing and new immigration pathways, particularly in the agriculture, nursing, and green technology sectors
Topic:: Development, Migration, Immigration, and Reform
Political Geography:: United Kingdom and Europe

38. Development Effectiveness in the “New Normal”: What Do the Changing Roles and Purposes of ODA Mean for the Effectiveness Agenda?

Author:: Rachael Calleja and Beata Cichocka
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: This paper explores how the roles and purposes of official development assistance (ODA) are changing and what these shifts mean for the future of the development effectiveness agenda. Using data obtained through a survey of officials working in development agencies and partner countries, this paper maps perspectives on the changing role and purposes of ODA as well as perceptions of the continued relevance of the effectiveness agenda and the Busan principles in this changing development landscape. Our results show that providers are increasingly prioritizing global challenges and private sector development as main purposes of ODA, and that the catalytic role of ODA is becoming increasingly important. In spite of substantive changes to the development landscape, survey respondents overwhelmingly thought that the current effectiveness agenda remains relevant – however, they also expressed the need to revise or renew the effectiveness principles to keep pace with changing demands. Working from our survey responses, we propose a basic framework for considering options for the future of the effectiveness agenda and conclude by proposing four possible paths forward.
Topic:: Security, Development, International Cooperation, and Development Assistance
Political Geography:: Global Focus

39. East Asian Cities: Past Development and Onrushing Challenges

Author:: Shahid Yusuf
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: The East Asian export-led development model has served as a beacon for decades. For the many urbanized and rapidly urbanizing countries, the East Asian experience with and response to emerging challenges can be equally instructive. High-income East Asian economies are at or approaching peak urbanization. China is likely to catch up within the next three decades. Since the 1950s, urbanization was accelerated by industrialization, which provided a plenitude of jobs directly and indirectly. It generated the resources that helped build urban infrastructure and housing, financed essential services, and created modern, urban livability. However, East Asian cities, like cities in other high- and middle-income countries, face new challenges. Services are displacing manufacturing as growth drivers and providers of jobs; the absorption of digital technologies, urban greening, and control of pollution/carbon emissions is more urgent; climate change is necessitating the upgrading of services and infrastructure to enhance resilience; climate change will also compel a managed withdrawal from some urban locations; and both services and physical facilities must adapt to meet the needs of aging populations. Responding to these challenges calls for strategic long-range planning, technological advances, implementation capacity, and resource mobilization. By 2050, 70 percent of the global population will live in cities. Therefore, how East Asians tackle these challenges can inform and guide policymakers in developed and developing countries alike.
Topic:: Development, Infrastructure, Urbanization, and Urban
Political Geography:: East Asia and Asia

40. Greening the US Sovereign Bond Guarantee Program: A Proposal to Boost Climate-Directed Sovereign Finance in Developing Countries

Author:: Scott Morris, Rowan Rockafellow, and Alan Cameron
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: Sovereign bond guarantees (SBGs) are an effective but underutilized instrument available to the US government in support of developing country partners. By protecting bond purchasers in the event of a foreign issuer country’s default, SBGs substantially reduce borrowing costs for developing country governments. In this CGD policy paper, we estimate the costs and benefits of historical US sovereign bond guarantees in order to model the use of SBGs for climate finance purposes. We demonstrate that the US government-provided SBG has the effect of conferring the US government’s cost of borrowing on the partner government. On that basis, it represents substantial savings for these countries. Based on this analysis, we propose a $20 billion “Green” SBG program aimed at financing climate change mitigation efforts in 28 emerging market economies. We estimate that the US government could support $20 billion in bond issuances through a subsidy outlay of $2 billion, resulting in a 22 percent reduction in borrowing cost of the target countries, which represents $4 billion in budgetary saving for their governments. We propose that the subsidy appropriations in support of the guarantees be retained and recycled within the Green SBG program, which would substantially improve the financial leverage of the program over time. We also suggest that the program could be used for climate adaptation purposes by targeting a different group of developing countries
Topic:: Climate Change, Development, Finance, Sustainability, and Green Transition
Political Geography:: North America and United States of America

41. What is public policy success, especially in development?

Author:: Matt Andrews
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: Public policy work is hard, especially when one works in developing countries. It is even difficult to define what success looks like, and thus how to manage towards success. Literature helps manage such difficulty, providing studies that define the concept and show how it can be achieved. A core message from such is that success is multi-dimensional, and practitioner need to focus on multiple criteria when doing their policy work. But what dimensions and criteria matter? And do development practitioners really adopt this multi-dimensional view? Tackling such questions, the current paper reviews 45 applied studies from the public policy, project management and development evaluation literatures to see what they identify as key success criteria and if the practical studies (about development evaluation) are in sync with the more academic messages. Reading across all three literatures, I identify 30 potential success criteria in 6 categories or dimensions (program, impact and endurance, capability, political, stakeholder, and process). I find that the development evaluation literature focuses on a narrow set of 7 criteria, mostly in one dimension (program success) as compared to broader perspectives in the other literatures. This suggests that development practitioners have a narrow view on success, which is out of step with academic views on the topic. A conclusion proposes a broader approach for these practitioners.
Topic:: Development, Public Policy, and Project Management
Political Geography:: Global Focus

42. The Economic Complexity of Namibia: A Roadmap for Productive Diversification

Author:: Ricardo Hausmann, Miguel Angel Santos, Douglas Barrios, Nikita Taniparti, Jorge Tudela Pye, and Jessie Lu
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: After a large growth acceleration within the context of the commodity super cycle (2000- 2015), Namibia has been grappling with three interrelated challenges: economic growth, fiscal sustainability, and inclusion. Accelerating technological progress and enhancing Namibia’s knowhow agglomeration is crucial to the process of fostering new engines of growth that will deliver progress across the three targets. Using net exports data at the four-digit level, we estimate the economic complexity of Namibia – a measure of knowhow agglomeration – vis-à-vis its peers. Our results suggest that Namibia’s economy is relatively less complex and attractive opportunities to diversify tend to be more distant. Based on economic complexity metrics, we define a place-specific path for productive diversification, identifying industries with high potential and providing inputs – related to their feasibility and attractiveness in Namibia – for further prioritization. Namibia’s path to structural transformation will likely be steeper than for most peers, calling for a more active policy stance geared towards progressive accumulation of productive capacities, well-targeted “long jumps”, and strengthening state capacity to sort out market failures associated with the process of self-discovery.
Topic:: Development, Economy, Economic Complexity, and Industry
Political Geography:: Africa and Namibia

43. Managing for Motivation as Public Performance Improvement Strategy in Education & Far Beyond

Author:: Dan Honig
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: People management has an important role to play in improving public agency performance. This paper argues that a ‘Route Y’ managerial approach focused on supporting the empowered exercise of employee judgment will in many circumstances prove superior to conventional reform approaches steeped in ‘Route X’ monitoring and incentives. Returns to Route Y are greater when employees are or can become more “mission motivated” – that is, aligned with the goals of the agency in the absence of monitoring and extrinsic incentives. Returns to Route Y are also greater when monitoring is incomplete or otherwise likely to unproductively distort effort, thus lowering the returns to using performance-linked rewards and penalties. I argue that education systems are one (but far from the only) setting where Route Y is a lever worth focusing on in efforts to improve public performance in the developed and developing world alike.
Topic:: Development, Education, Public Policy, Performance Evaluation, and Project Management
Political Geography:: Global Focus

44. A Growth Diagnostic of Namibia

Author:: Ricardo Hausmann, Miguel Angel Santos, Douglas Barrios, Nikita Taniparti, Jorge Tudela Pye, Jose Francisco Muci, and Jessie Lu
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: In the thirty years that have passed since independence, Namibia has been characterized by its over-reliance on its mineral resource wealth, procyclicality of macroeconomic policy, and large income disparities. After an initial decade marked by nation building and slow growth (1990-2000), the Namibian economy embarked on a rapid growth acceleration that lasted 15 years, within the context of the global commodity super cycle. Favorable terms of trade translated into an investment and export boom in the mining sector, which was amplified to the non-tradable sector of the economy through a significant public expenditure spree from 2008 onwards. Between 2000 and 2015 income and consumption per capita expanded at an average annual rate of 3.1%, poverty rates halved, and access to essential public goods expanded rapidly. As the commodity super cycle came to an end and the fiscal space was exhausted, Namibia experienced a significant reversal. Investment and exports plummeted, bringing GDP per capita to contract by 2.1% between 2015-2019. With debt-to-GDP ratios 3.5 times higher than those in 2008, the country embarked on a fiscal consolidation effort which brought the primary fiscal deficit from 6.8% of GDP in 2016 to 0.6% by March 2020. Along all these years, inequality has been endemic and is reflected across demographic characteristics and employment status. At present, a large majority of Namibians are unable to access well-paying formal sector jobs, as these tend to be particularly scarce outside of the public sector. Looking forward, the road to sustained inclusive growth and broad prosperity entails expanding the formal private labor market by diversifying the Namibian economy, while at the same time removing the barriers preventing Namibians from accessing these opportunities inherited from the apartheid.
Topic:: Development, Economy, Economic Growth, Inclusion, and Skills
Political Geography:: Africa and Namibia

45. Trade Liberalization and Economic Development: Lessons for Africa

Author:: Henri Kouam and Fabien Sundjo
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: The Nkafu Policy Institute
Abstract:: What happens when countries lower their tariff & import duties and open up their economy to other countries? This policy brief looks at the impact of trade liberalization on economic development, drawing from broad-based international literature. It shows how free trade can positively impact economic development, boost incomes, and improve standards of living. The African Continental Free Trade Area will stimulate intra-regional trade and help countries like Cameroon address acute development challenges. However, the expected positive results will depend on its successful implementation.
Topic:: Development, Economics, Regional Cooperation, Trade Liberalization, Trade, Economic Development, and Liberalism
Political Geography:: Africa

46. The Belt and Road Initiative as Ten Policy Commandments: Review of Xi’s Kazakhstan and Indonesia Launch Speeches

Author:: Lauren A. Johnson
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: China Studies Centre, The University of Sydney
Abstract:: In 2019 Foreign Policy described China’s Belt and Road Initiative (BRI) as “the most talked about and least defined buzzword of this decade”. Given that confusion and the importance of leader political speeches in China, especially those of current President Xi Jinping, it is surprising that the BRI literature has little in-depth analysed the two launch speeches of 2013. This article seeks to fill that gap with study of those speeches and focus on the five cooperationoriented areas announced in each. In comparative context those ten pillars appear not to be descended from New Era Chinese heaven but rather demonstrate substantive thematic overlap with the ten pillars of what was once relatively mainstream macroeconomic development policy, the Washington Consensus. Yet, in the case of the BRI there is a relative implicit implementation emphasis also. In forward context of contemporary global political economy tensions, the need to recover from the COVID-19 pandemic, the G7’s Build Back Better and the European Union’s Global Gateway ambitions also, this article may offer a timely fresh and comparative lens on the BRI.
Topic:: Development, International Cooperation, Infrastructure, Hegemony, and Belt and Road Initiative (BRI)
Political Geography:: China, Asia, and Global Focus

47. Fintech for Good: Governance Mechanisms for Sustainable Development

Author:: Olaf Weber and Sep Pashang
Publication Date:: 09-2021
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: Financial technology (fintech) for good can help to achieve sustainable development through environmental, social and governance investing, and through financial inclusion initiatives to address the needs of underbanked and unbanked individuals. Although the COVID-19 pandemic has necessitated greater dependence on digital banking technologies, the lack of cohesive governance and regulatory mechanisms around fintech in Canada and abroad is an obstacle toward achieving the UN Sustainable Development Goals. The authors of this paper argue that better governance and regulatory frameworks are needed to minimize the risks associated with fintech for good while maximizing its benefits.
Topic:: Development, Science and Technology, United Nations, Governance, Sustainable Development Goals, Innovation, and Sustainability
Political Geography:: Canada and North America

48. What is Social Finance? Definitions by Market Participants, the EU Taxonomy for Sustainable Activities, and Implications for Development Policy

Author:: Sören Hilbrich
Publication Date:: 01-2021
Content Type:: Working Paper
Institution:: German Institute of Development and Sustainability (IDOS)
Abstract:: The market for social financial instruments is rapidly growing. The issuance of social bonds, for instance, reached $149.4 billion in 2020, showing an extraordinary growth of 720% compared to 2019 (ADB, 2021, p. 14). By providing capital for certain types of investments associated with positive social impacts, these instruments are intended to close funding gaps that hamper the realisation of social goals, as laid down, for instance, in the 2030 Agenda for Sustainable Development. In addition, social finance might set incentives for enterprises to engage in more sustainable business models that would give them access to social financial instruments potentially associated with a lower cost of capital. However, the magnitude of the potential contribution to society of social finance is a matter of debate. This paper focuses on an important challenge for social finance that concerns the plurality of existing definitions of social investments. The paper provides an overview of the definitions followed by market participants, describes the EU taxonomy for sustainable activities as a potential standard in this context, and discusses implications for development policy.
Topic:: Development, Markets, European Union, Sustainability, Bonds, and Social Finance
Political Geography:: Global Focus

49. Social Cohesion: A New Definition and a Proposal for its Measurement in Africa

Author:: Julia Leininger, Francesco Burchi, Charlotte Fiedler, Karina Mross, Daniel Nowack, Armin von Schiller, Christoph Sommer, Christoph Strupat, and Sebastian Ziaja
Publication Date:: 01-2021
Content Type:: Working Paper
Institution:: German Institute of Development and Sustainability (IDOS)
Abstract:: Social cohesion is key for sustainable development. While social cohesion has suffered in many societies from the consequences of the Covid-19 pandemic, high levels of social cohesion have helped to overcome critical situations during the pandemic in other societies. As a consequence, protecting and strengthening social cohesion has become an increasingly central goal for most countries and the international community. Despite the strong interest in the topic, the questions of how to define social cohesion and make it an observable phenomenon through proper measurement are still contested, in both academia and policy circles. To date, no consistent, temporally and geographically spread-out data on the different elements of social cohesion exists that would allow for a global analysis of social cohesion. This rather fragmented picture of analytical approaches calls for a more universal definition and measurement of social cohesion. This paper aims to provide a narrow and measurable definition of social cohesion that travels across regions and countries. Conceptually, it proposes a definition of social cohesion that incorporates the core elements of existing and widely used definitions of social cohesion across disciplines (trust, identity, cooperation for the common good). Our contribution is to offer a definition of social cohesion that is broad enough to cover the essentials holding societies together while at the same time keeping it lean enough to analyse the causes and consequences of social cohesion, for instance the relationship between social cohesion and inequalities or political institutions. Methodologically, we propose an application of our concept to the African context. It is not only a first step towards a more global and inter-regional measurement of social cohesion, but also the basis for further knowledge-creation, the identification of patterns of social cohesion and the analysis of its causes and consequences. From a policy-oriented perspective, a more unified definition of the core elements of social cohesion and its measurement can inform policies that aim at protecting and fostering social cohesion. In development cooperation, it will help not only to build indicators for designing programme objectives and for evaluation and monitoring, but also to advance evidence-based theories of change.
Topic:: Development, Sustainability, Social Cohesion, and COVID-19
Political Geography:: Africa

50. Does COVID-19 Change the Long-Term Prospects of Latecomer Industrialisation?

Author:: Tilman Altenburg, Clara Brandi, Anna Pegels, Andreas Stamm, Christiaan Vrolijk, and Tina Zintl
Publication Date:: 01-2021
Content Type:: Working Paper
Institution:: German Institute of Development and Sustainability (IDOS)
Abstract:: This study explores to what extent the COVID-19 crisis affects the long-term prospects for industrial development. The focus of the study is on latecomer economies – those facing an uphill battle because they joined global markets at a point in time when other economies had already established global production networks. In a first step, we analyse how the prospects for industrialisation are changing, mainly as a consequence of three global megatrends: digitalisation and automation of production; global economic power shifts; and the greening of economies. These trends create new opportunities for latecomer industrialisation, but they also raise entry barriers to markets, especially for country with weak innovation systems. We then explore COVID-19 effects through the analytical lens of the pre-COVID megatrends. While the pandemic has had a severe impact on the world economy, such impacts will not change the ongoing trends fundamentally. The ongoing recovery from COVID-19 is not showing much structural transformation – despite many voices demanding to “build back better”. Yet, the pandemic is accelerating or decelerating some of the previous trends. One is the trend towards online trading. The dominance of international trading platforms may lead to concentration in “upstream” activities such as manufacturing, crowding out weaker market actors. At the same time, platform economies are boosting delivery activities, such as courier services. Another trend that may be accelerated by the pandemic is towards the reshoring of previously offshored productive tasks, yet, evidence here is mixed, and we may see other risk-hedging strategies rather than large-scale reshoring. We may also see the gap between dynamic economies in East/Southeast Asia and other developing regions widening, because the former recovered faster due to vaccination programmes and fiscal stimulus packages. Regarding the greening of economies, some major economies initiated green fiscal stimulus packages, accelerating for example the development of global green hydrogen economy. Also, the trend towards tele-work is reducing emissions from the transport sector. Overall, however, the pandemic does not seem to alter the ongoing, but slow, progress towards greener economies. We conclude with police recommendations in five domains: i) Fostering economic resilience through economic diversification; ii) the need to develop pharmaceutical and medical supply industries in all countries; iii) increased investments in digital capabilities, including the ability to regulate platform economies; iv) strengthening domestic revenue generation to increase policy space and resilience, including pro-environmental fiscal reforms; and v) improving international governance e.g. in the domains of intellectual property rights and technology-sharing.
Topic:: Development, Economics, Governance, Industrialization, Resilience, and COVID-19
Political Geography:: Global Focus

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COLUMBIA UNIVERSITY PRESS