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Begin New Search Topic Governance Content Type Working Paper

1. Tracing the Roots of China’s AI Regulations

Author:
Matt Sheehan
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In 2021 and 2022, China became the first country to implement detailed, binding regulations on some of the most common applications of artificial intelligence (AI). These rules formed the foundation of China’s emerging AI governance regime, an evolving policy architecture that will affect everything from frontier AI research to the functioning of the world’s second-largest economy, from large language models in Africa to autonomous vehicles in Europe. U.S. political leaders often warn against letting China “write the rules of the road” in AI governance. But if the United States is serious about competing for global leadership in AI governance, then it needs to actually understand what it is competing against. That requires examining the nuts and bolts of both China’s AI regulations and the policy process that shaped them. This paper is the second in a series breaking down China’s AI regulations and pulling back the curtain on the policymaking process shaping them. The Chinese Communist Party (CCP) and the Chinese government started that process with the 2021 rules on recommendation algorithms, an omnipresent use of the technology that is often overlooked in international AI governance discourse. Those rules imposed new obligations on companies to intervene in content recommendations, granted new rights to users being recommended content, and offered protections to gig workers subject to algorithmic scheduling. The Chinese party-state quickly followed up with a new regulation on “deep synthesis,” the use of AI to generate synthetic media such as deepfakes. Those rules required AI providers to watermark AI-generated content and ensure that content does not violate people’s “likeness rights” or harm the “nation’s image.” Together, these two regulations also created and amended China’s algorithm registry, a regulatory tool that would evolve into a cornerstone of the country’s AI governance regime. Contrary to popular conception in the rest of the world, China’s AI governance regime has not been created by top-down edicts from CCP leadership. President Xi Jinping and other top CCP leaders will sometimes give high-level guidance on policy priorities, but they have not been the key players when it comes to shaping China’s AI regulations. Instead, those regulations have been the product of a dynamic and iterative policymaking process driven by a mix of actors from both inside and outside the Chinese party-state. Those actors include mid-level bureaucrats, academics, technologists, journalists, and policy researchers at platform tech companies. Through a mix of public advocacy, intellectual debate, technical workshopping, and bureaucratic wrangling, these actors laid the foundations for China’s present and future AI regulations. This paper traces the progression of these regulations through the “policy funnel” (see figure 1) of Chinese AI governance. For both recommendation algorithms and deep synthesis rules, the initial spark for the regulation came from long-standing CCP concerns about the creation and dissemination of online content. For the former, the rise of the algorithmically driven news app Toutiao threatened the CCP’s ability to set a unified narrative and choose which stories are pushed to readers. In the case of deep synthesis, online face swap videos grabbed the attention of the Chinese public and led government regulators to consider the threat of deepfakes. Over the course of 2017–2020, these concerns made their way through China’s bureaucracy. Regulators took a series of stopgap measures in specific applications, while also tasking policy analysts and government-adjacent technical organizations with exploring different regulatory interventions.
Topic:
Science and Technology, Governance, Regulation, and Artificial Intelligence
Political Geography:
China, East Asia, and Asia

2. Institutions and governance in Mozambique :A bird’s eye view based on existing databases

Author:
Ines A. Ferreira
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Using publicly available databases and drawing on a wide range of indicators, this paper reviews the institutional performance of Mozambique across seven broad categories: rule of law and judicial independence; voice and freedom of expression/association; political participation; accountability and transparency; political instability and violence, and external relations; state legitimacy and political leadership; and governance and state capacity. Overall, the selected indicators point to similar trends within each dimension and suggest limited progress during the last decades. Still, it is fundamental that these insights and the scores presented by the indicators are put into context, and that we understand the historical path of Mozambique, the internal and external factors at play, and the fact that it takes time for progress achieved to be reflected in this type of data.
Topic:
Governance, Leadership, Freedom of Expression, Rule of Law, Accountability, Institutions, Judiciary, Instability, and Political Participation
Political Geography:
Africa and Mozambique

3. Community Governance During COVID-19: Case Studies from Rural Areas of Bangladesh

Author:
Tanvir Shatil, Md. Rohmotul Islam, Huraera Jabeen, and Shahaduz Zaman
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
BRAC Institute of Governance and Development (BIGD), Brac University
Abstract:
This working paper investigates community-driven initiatives in rural Bangladesh that emerged in response to the COVID-19 pandemic and persisted beyond the crisis. Focusing on the sustainability of these initiatives, the study explores the preconditions for collective actions, the development of community-level governance during the crisis, and the mobilization and longevity of these efforts. Supported by the Institute of Development Studies, the research aims to contribute valuable insights into community governance mechanisms in low-resource areas, offering potential solutions for designing resilient emergency interventions and addressing long-term development challenges.
Topic:
Development, Governance, Rural, COVID-19, and Community Initiatives
Political Geography:
Bangladesh and South Asia

4. A conceptual framework for the identification and governance of European public goods

Author:
Gregory Claeys and Armin Steinbach
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The challenging current policy environment has raised the question of which policy decisions should be taken at national level and which at European Union level. As a general rule, the EU should be responsible only for the provision of European public goods (EPGs), while countries are better placed to provide national public goods. However, in practice, the situation is rarely that simple. We offer a framework for identification of EPGs with three main insights. First, a decision to provide a public good at national level, EU level or a combination of both depends on the degree of heterogeneity of preferences across countries and the efficiency case for EU-level provision. When preferences vary and the efficiency case is weak, goods should be provided at national level. When preferences are similar and the efficiency case is strong, goods should be provided at the EU level. When preferences differ but there is a strong efficiency case, a trade-off arises. Second, institutional and legal instruments exist already to manage this trade-off. These include: competence transfers, decision-making modalities, variable participation of countries, centralisation of delivery and funding, and compensating negatively affected countries to achieve greater alignment of preferences. Third, both the efficiency case for EPGs and the distribution of preferences over their provision may change over time. This could be because the world around the EU changes (for example, giving greater weight to an efficiency case, eg in areas related to defence) or because preferences change, for example, as result of a pandemic, or because a particular institutional or compensation practice convinces dissenters that they can be better off inside than outside a multi-country arrangement governing the provision of a public good. An implication is that the question ‘should public goods be provided at the national or European level?’ may be the wrong question to ask. The right question is how to find institutional arrangements for public-good provision, to maximise the benefits of public goods for EU members.
Topic:
Governance, European Union, Institutions, and Public Goods
Political Geography:
Europe

5. The State of EU-US Digital and Energy Cooperation

Author:
Federica Marconi, Wolfgang Münchau, and Irene Paviotti
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In a time of rapid technological advancements and changing energy paradigms, the European Union and the United States are trying to coordinate their efforts to navigate the complexities of an ever-evolving landscape. Transatlantic dialogues and cooperative endeavours are key mechanisms for mitigating tensions and fostering a common assessment of the opportunities and risks arising from these advancements. Critical in this regard are the problems of governance emanating from technological development and its consequences in the digital sphere as well as the delicate balance between security, competitiveness and environmental targets in the energy dimension.
Topic:
Climate Change, International Cooperation, Political Economy, Governance, European Union, Transatlantic Relations, Digital Policy, and Energy
Political Geography:
Europe, North America, and United States of America

6. Transatlantic Tech Bridge: Digital Infrastructure and Subsea Cables, a US Perspective

Author:
Julia Tréhu and Megan Roberts
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The importance of digital infrastructure for global communication and connectivity is only growing. Within this varied sector, subsea cables play a central role in ensuring seamless internet traffic globally. What are the US’s strategic and economic interests in digital infrastructure, particularly subsea cables? Within the context of larger economic and geopolitical competition, US policy is multifaceted, from aiming to secure the physical security of infrastructure and guarding against espionage and technology leakage, to boosting economic competitiveness and supporting domestic firms. Overall, digital infrastructure, and undersea cables in particular, are a key element of a larger US strategy of outcompeting China. Although evaluations among allies of the relative threat posed by China and Chinese-owned digital infrastructure vary, broadly shared goals of resiliency, security, and increased connectivity mean there are potential areas for deeper EU-US cooperation, including partnerships with third countries, that align with their respective strategic visions and represent a solid base for further transatlantic coordination.
Topic:
International Political Economy, Infrastructure, Governance, Transatlantic Relations, and Digital Policy
Political Geography:
North America and United States of America

7. Chips: EU’s Ambition in a Transatlantic Technology Bridge

Author:
Nicola Bilotta
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Semiconductors are vital building blocks of digital technologies. In line with its aspiration for strategic autonomy, the EU has recognised vulnerabilities in its chip supply chain, which heavily relies on foreign firms. The intricate relationship between economic security and open trade underlies the EU’s quest to bolster its domestic capacity while enhancing connections with key global partners. Despite the challenges of finding a policy balance, fostering transatlantic cooperation in the semiconductor domains remains a key ambition. To cultivate a more balanced and effective partnership with the US, the EU should capitalise on its comparative advantages to amplify and fortify its strategic positioning in the global supply chain.
Topic:
International Political Economy, Science and Technology, Governance, European Union, Transatlantic Relations, and Industry
Political Geography:
Europe

8. Disentangling Government Responses: How Do We Know When Accountability Work Is Gaining Traction?

Author:
Jonathan Fox, Brendan Halloran, Alta Fölscher, and Rosie McGee
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Accountability Research Center (ARC), American University
Abstract:
Advocacy for public accountability aims to produce certain reactions from government officials or service providers. However, the reactions can be many and diverse, and it is not always clear to advocates how to interpret them and decide on next steps—whether to intensify efforts or back off; continue the same strategy or make adjustments. This paper presents a framework to help accountability advocates and practitioners interpret government reactions to their efforts and move forward appropriately. The framework arises from learning and reflection in the context of the International Budget Partnership (IBP)’s Strengthening Public Accountability with Results and Knowledge (SPARK) program. SPARK seeks to bolster the collective agency of marginalized communities and coalitions to advance democratic and equitable fiscal governance systems that channel public resources to services that address the priority needs of these historically excluded groups.
Topic:
Government, Governance, Accountability, and Financial Management
Political Geography:
Global Focus

9. Conceptualizing Global Governance of AI

Author:
Maral Niazi
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Merging artificial intelligence (AI) and global governance, global AI governance focuses on defining terms to deepen understanding, promote collaboration and create informed policies. It emphasizes multi-stakeholder and multi-level cooperation in managing AI’s global impacts. AI’s societal impacts are broad, offering exceptional benefits while carrying unintended risks. Its rise poses geopolitical challenges, affecting transparency, privacy and power dynamics in both democratic and non-democratic states. Empirical and normative research is essential in forming global AI governance, guiding ethical values and legal practices for ethical data use and unbiased algorithm development. Empirical research provides verifiable knowledge through data and experiences, highlighting regime complexities in an anarchic system of global governance, meaning a system with no central authority. Normative research examines values and norms, assessing AI systems’ trustworthiness and ethical compliance. Multilateral cooperation in global AI governance involves collaborative efforts among numerous actors to establish universally accepted norms and policies for AI. An institutional framework for global AI governance should incorporate lessons from international organizations such as the International Atomic Energy Agency and the European Organization for Nuclear Research/Conseil européen pour la recherche nucléaire to guide AI’s ethical development and deployment within and beyond national borders. ABOUT THE AUTHOR
Topic:
International Cooperation, Governance, Multilateral Relations, Artificial Intelligence, and Emerging Technology
Political Geography:
Global Focus

10. The Climate Policy Crisis: Governing Disinformation in the Digital Age

Author:
Andrew Heffernan
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Climate change is the quintessential global challenge, while also perhaps the issue that has experienced the most polarization in recent years. Therefore, understanding the way broader global politics manifest through tools such as social media and consequently impact policy making, becomes integral to effectively fighting the climate crisis. While climate change must be countered through effective mitigation and adaptation approaches at the local, national and global levels, implementing effective policies to do so can only be accomplished through buy-in by a critical mass of citizens. Disinformation campaigns have, however, increasingly been targeted at issues that fall along partisan lines and climate change has been a particularly polarizing issue. Research presented in this paper demonstrates ways in which efforts to misinform and disinform the public are becoming both increasingly prevalent as well as effective. The polarization that is being stoked by misinformation campaigns on social media is the most serious threat to fighting climate change. New policies and approaches for policy development and implementation will be required to match the alacrity of the proliferating online flows of misinformation and disinformation.
Topic:
Climate Change, Governance, Disinformation, and Polarization
Political Geography:
Global Focus

11. Governance Practices in Turkey: A Comparative Perspective

Author:
Dimitris Tsarouhas
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Turkey’s latest National Development Plan seeks to attain economic and social development equal to that of the world’s most prosperous states. By structuring expectations and incentives for economic and political actors, institutions play a key role in achieving sustainable, long-term development. This paper provides a systematic longitudinal analysis of core governance indicators which shed light on Turkey’s evolution over time from a comparative perspective. The results point to a sharp decline in the institutional efficacy of the Turkish apparatus of state vis a vis core aspects of the country’s development agenda, especially with regard to the rule of law, public administration, regulatory capacity, and predictability. Turkey’s declining scores in recent years fly in the face of its political agenda and severely undermine welfare gains made in the early 21st century.
Topic:
Development, Economics, Governance, and Domestic Politics
Political Geography:
Turkey and Middle East

12. Drafting Greece’s “Internal Security Strategy” – Challenges and Prospects

Author:
Panayotis Tsakonas and Triandafyllos Karatrantos
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The radical change in the structure of the international system caused a scientific and political revolution in the definition and concept of security. Issues such as the climate crisis, forced displacements and extreme nationalism have led the interest and especially the debate on achieving security from external to internal threats. The focus is now on the main “object of reference” of security which is not the state or some sub-state groups, but “the individual”/”the citizen”. In the modern globalized environment, all the risks that threaten the daily life of citizens require dealing with the concept of security in a “holistic” and, at the same time, more “human-centered” way. Greece lacks an institutional document for the internal security strategy. There are structural reasons that make a comprehensive reform of the internal security sector necessary. In addition to the established weaknesses and inadequacies of specific agencies and/or services of the internal security system, the overall organic interconnection between crisis management services is still required. The first lesson from the effects of the pandemic is the need for the evolution of Greece into a “Modern National Security State”. Greece, due to its geographical position on the external borders of the EU, as well as the crises it has experienced in recent years, faces a series of internal security threats and challenges. Security and respect for fundamental rights are not mutually conflicting but coherent and complementary objectives. The Strategy will help build an internal security governance system and a central coordination process.
Topic:
Security, Governance, and European Union
Political Geography:
Europe and Greece

13. Addressing Cohesion Policy’s identity crisis in a changing European Union

Author:
Alison Hunter
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Since the late 1980s Cohesion Policy has been one of the cornerstone policies of the European Union. However, nowadays, a different, bolder Cohesion Policy debate is needed, reflecting a radically changed global environment. This Discussion Paper focuses on the upcoming review of the post-2027 Multi Annual Financial Framework and the debate concerning the future EU Cohesion Policy. It argues that Cohesion Policy’s purpose requires reinvention, not an incremental upgrade. Four overarching themes are analysed, reframing Cohesion Policy with a strategic, long-term investment perspective: EU resilience, security, strategic autonomy, and reforms. The author then proposes five recommendations which weave together these themes with the policy’s long-standing core features: Acknowledge the need to review the Cohesion Policy’s purpose. The EU should breathe new life into the Cohesion Policy debate. Revitalise Cohesion Policy’s long-term value by defending its pillars. The EU should re-confirm Cohesion Policy’s role as a structural policy. Position Cohesion Policy as the ‘guardian’ of EU place-based policymaking. Cohesion Policy should champion the “future-proofing” of regional resilience. Articulate Cohesion Policy’s role in the evolving EU governance and reform agenda. The EU should reach beyond the Recovery and Resilience Facility to reclaim Cohesion Policy’s role in structural reform. Improve Cohesion Policy’s convening power to catalyse deeper EU innovation cooperation. The future Cohesion Policy must deliver a more coordinated approach to the EU’s innovation agenda. The Paper concludes that the future Cohesion Policy should evolve in lockstep with citizens’ needs. This will not be easy. As discussions on the EU’s future have been sidelined in this crisis-prone area, the challenges ahead require strong leadership and coordination. The post-2027 EU Cohesion Policy will have much to contribute to rebuilding the EU’s future vision.
Topic:
Security, Governance, Reform, European Union, Regional Integration, Social Cohesion, Resilience, and Strategic Autonomy
Political Geography:
Europe

14. Productivity Effects of Viet Nam’s Rice Land Restrictions

Author:
Peter Warr and Huy Quynh Nguyen
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam’s 1986 programme of market-oriented economic reforms did not include the freedom of farmers to choose their crops independently. Large areas of land remain restricted to rice production. This paper studies the effects of this policy on agricultural productivity, using panel data from the Viet Nam Access to Resources Household Survey (VARHS), covering the years 2008 to 2016. The econometrics uses fixed effects methods with and without the additional use of instrumental variable methods to allow for the possible statistical endogeneity of the restrictions. The findings are that the crop choice restrictions reduced the overall productivity of annual crop land by about 5%, reduced the overall productivity of farm labour by about 8% and reduced the mean incomes of farm households by 5%–6%, implying increased levels of rural poverty. Moreover, rice output would have been no lower if the restrictions were removed.
Topic:
Agriculture, Development, Governance, Regulation, Land, and Productivity
Political Geography:
Vietnam and Southeast Asia

15. Climate Change in Egypt: Opportunities and Obstacles

Author:
Amr Hamzawy, Mohammad Al-Mailam, and Joy Arkeh
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Because of climate change, Egypt’s already arid climate will suffer from additional environmental stresses, including extreme temperatures, irregular precipitation, elevated sea levels and land subsidence, coastal flooding, shoreline erosion, deteriorating soil salinity, and persistent drought. These mutually reinforcing impacts will build on one another, worsening water scarcity, hindering food security, displacing exposed populations, and destabilizing the Egyptian economy. Climate change will therefore exert added pressures on already precarious populations and push still other groups to unprecedented levels of vulnerability. Efforts to adapt to a changing climate will also exact a steep price, exposing existing governance shortfalls and deepening deficits. As climate change escalates burdens on state capacity, it will become even more urgent for the country to take proactive measures. Egypt needs, therefore, to accelerate its climate governance efforts if it hopes to stabilize its economy and protect its vulnerable populations. Before evaluating the socioeconomic and political consequences of climate change, it is necessary to outline Egypt’s preexisting environmental challenges. This overview will establish a baseline for understanding the compounding impact of climate change, with a view to how climate change deepens existing vulnerabilities, aggravates governance challenges, and requires new public policy designs to address it.
Topic:
Climate Change, Politics, Governance, and Reform
Political Geography:
North Africa and Egypt

16. Winding Up of State Enterprises in India: A Case Study of Five Enterprises Under the Department of Heavy Industry

Author:
Rajan Katoch and Sunil Bahri
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Why is it so easy to create a public sector enterprise but so difficult to wind one up, even when precious resources of the state with huge opportunity costs are regularly appropriated for entities that no longer serve any public purpose? Usually, it is due to a lack of political will arising out of a perhaps overblown fear of consequences of taking what are perceived to be “harsh” steps. It is also often due to an abundance of caution in the bureaucracy that has to implement these steps. There are reasons for this reluctance. Bureaucracy has learned from previous attempts at winding up state enterprises that such exercises tend to ruffle vested interests, attract political and judicial ire, and sometimes invite the unwelcome attention of investigative agencies. Closing down state enterprises has always been notoriously difficult. It requires the rare circumstance of all the stakeholders being in alignment with the objective at the same time for progress to be made. A great opportunity for overcoming these difficulties arose in 2014, when there was a rare and favorable confluence of circumstances and people in government, notably at the political level and in the Department of Heavy Industry (DHI), Government of India. A new government had assumed power with a reforming zeal, as new governments often have. In the department, we (Sunil Bahri as the financial adviser and Rajan Katoch as the secretary of the department) happened to be thrown together as a new leadership team. Both students of economics, we understood the administrative and economic rationale for closure of sick enterprises and appreciated the opportunity for us to make a signal contribution to better governance and public welfare. We intended to make all-out efforts to ensure that the opportunity was grasped and a sustainable outcome achieved within the brief tenure of two years that we had with the department. This is the story of those efforts.
Topic:
Governance, Economy, Economic Growth, Public Sector, and State-Owned Enterprises
Political Geography:
South Asia and India

17. Sustainability in the South African Wine Industry: Status, Opportunities and Challenges

Author:
Reena das Nair, Shingie Chisoro, and Stefano Ponte
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
South Africa has been a pioneer in developing a variety of sustainability programmes and initiatives from farm to bottle, placing it at the forefront of sustainability in the global wine industry. In addition to global sustainability standards, such as Fairtrade and organics, and standards applied by retailers in the Global North, domestic sustainability initiatives and regulations have also been developed since the late 1990s. The existence of sustainability initiatives however does not automatically entail that they are easing the local environmental impacts of viticulture and winemaking, that working conditions are necessarily improving, or that there has been more inclusive participation and ownership by historically disadvantaged persons (HDPs). In this working paper, we unpack whether, how and to what extent different demands and initiatives on sustainability are reshaping the functioning of the wine industry in South Africa and with what benefits for whom. We examine the various sustainability programmes and initiatives in South African wine and assess the implications for costs, investments and profitability of actors in the value chain. Furthermore, to provide a sense of how South Africa fares in the international arena, we also undertake a comparison with sustainability initiatives in the Italian wine industry. We frame sustainability initiatives in broad terms, covering environmental, social and economic sustainability. The growing effects of climate change globally demand that grape growers adapt from an environmental perspective. The pressure for social sustainability emanates from the highly skewed patterns of ownership by HDPs, legacies of racialised inequalities, and a tainted history of poor worker conditions on farms and cellars. We also cover economic sustainability, as it both affects and is affected by environmental and social sustainability initiatives and is critical for the future of commercial production. The research results presented here are part of a larger project funded by the Danish Independent Research Fund Denmark (Project #0133-00046B) on ‘Power and inequality in global production systems’ (PIPS) that also covers industrial fisheries in South Africa and the salmon and wine industries in Chile (with Stefano Ponte as the PI). This paper is focused on presenting the main empirical findings of this part of the project and is targeted at a broad audience. It is built on feedback we received on an earlier version that was discussed with South African industry actors at a webinar on 28 June 2023. More analytical and theoretical publications will follow in selected academic journals.
Topic:
Environment, Labor Issues, Governance, Business, Sustainability, Production, and Wine Industry
Political Geography:
Africa and South Africa

18. A quantitative evaluation of the European Commission’s fiscal governance proposal

Author:
Zsolt Darvas, Lennard Welslau, and Jeromin Zettelmeyer
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
In the new European Union fiscal framework proposed by the European Commission in April 2023, medium-term fiscal adjustment requirements would be determined by country-by-country debt sustainability analysis (DSA), the 3 percent deficit ceiling and simple rules requiring minimum deficit and debt adjustments (‘safeguards’). These elements are controversial, with some EU countries (and ourselves) preferring a DSA-based approach, while others prefer to stick to simple rules. This paper evaluates the proposal by replicating the DSA methodology and computing fiscal adjustment implications for all EU countries with debt above 60 percent or deficits above 3 percent of GDP. We find that the proposed framework would require ambitious fiscal adjustment: on average, more than 2 percent of GDP over the medium term, in addition to the adjustment that is already planned for 2023-24. However, for most high-debt countries, these requirements are below those implied by the current framework. We also find that for most countries with debt above 60 percent of GDP, these adjustment requirements are driven by the DSA rather than the safeguards, but with significant exceptions. The main exception is France, for which the ‘debt safeguard’ – which requires debt to fall within four years – imposes much higher fiscal adjustment than the DSA. If the adjustment period were to be extended from four to seven years (as is possible under the framework for countries that submit growth-enhancing reform and investment plans), the safeguards would also be binding for several other countries. In addition, a requirement to reduce the deficit by at least half a percent per year if it exceeds 3 percent of GDP could become binding ex post, in response to output shocks, even if countries implement the fiscal adjustment required ex ante. Finally, we find that while the Commission’s DSA methodology is reasonable, it would benefit from review. This should be done by an independent expert group in consultation with the Commission, member states and other stakeholders, and endorsed by the Council. We recommend the endorsement of the Commission’s proposal after ambiguous aspects are clarified, the debt safeguard and other safeguards are removed or modified, the excessive deficit procedure is reformed to avoid procyclical adjustment, and a process for reviewing the DSA methodology is put in place.
Topic:
Governance, Regulation, Fiscal Policy, and European Commission
Political Geography:
Europe

19. Cooperative Federalism in India: Statutory Regulatory Authorities and the Federal System in India

Author:
K. P. Krishnan, Amrita Pillai, and Karan Gulati
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
Since the 1990s, there has been a marked expansion of the regulatory state in India. Statutory Regulatory Authorities (SRAs) are empowered to create and enforce regulations in their respective fields and often have the authority to issue licenses, conduct inspections, and take enforcement action against individuals or organisations that violate their regulations. This essay recognises the twin-deficit issue with SRAs in India. It focuses on the federal deficit issue and resists exploring the more obvious democratic deficit in them. Our analysis shows that over the twenty-three-year period between 1999 and 2022, the Rajya Sabha (Council of States) has reviewed 4 regulations by SRAs. For context, the securities regulator has issued 661 regulations since its inception in 1992. Such a federal deficit of a lack of State representation disallows decentralisation and restricts means for individuals and communities to have a greater say in the decisions that affect their lives.
Topic:
Governance, Regulation, Deficit, Domestic Policy, and Cooperative Federalism
Political Geography:
South Asia and India

20. Cooperative Federalism in Indi: Federal Aspects of India's Emerging Internal Migration Governance Frameworks

Author:
Mukta Naik
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
The exodus of millions of migrants during the 2020 Covid lockdowns resulted in an uptick in migrant-inclusive policy initiatives. Leaning on concepts developed in migration studies and organizational theory, this paper analyses emergent policy responses with a focus on the role of government. Without a coherent and explicit approach to governing migration from the Centre, State governments have actively worked towards improving governance responses to migrants. The location of initiatives outside of the nodal State labour department, convergence between departments and bilateral arrangements between States demonstrate how horizontal and vertical boundaries within the governance system were bridged innovatively by temporary orders, enterprising bureaucrats, state-society collaborations and by leveraging hitherto under-utilized provisions in existing schemes. The paper highlights migration governance as an example where the rearrangement of federal relationships under crisis conditions has offered new policy imaginations. A nascent transition away from a centralist model of migration governance has emerged, which can be accelerated and sustained by institutionalizing successful initiatives, including boundary-spanning mechanisms.
Topic:
Migration, Labor Issues, Governance, and Cooperative Federalism
Political Geography:
South Asia and India