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Begin New Search Political Geography Global Focus Publishing Institution German Institute of Development and Sustainability (IDOS) Publication Year within 3 Years

1. Transnational Cooperation -- An Explorative Collection

Author:
Stephan Klingebiel and Sven Grimm
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The present collection of short papers is an experimental, explorative and introspective German Institute of Development and Sustainability (IDOS) project on international and transnational cooperation for development and sustainability. It is the product of internal brainstorming discussions at IDOS in mid-2022 that aspired to conduct a preliminary, exemplary mapping of the use of “transnational lenses” and their understandings across various work strands at the institute. This might lead to new questions in our work, or it might simply be an attempt to look at our topics of interest with a different perspective.
Topic:
Development, International Cooperation, Transnational Actors, and Sustainability
Political Geography:
Global Focus

2. How Does Globalisation Affect Social Cohesion?

Author:
Kasper Vrolijk
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This paper explores the effects of globalisation on social cohesion outcomes and the underlying mechanisms. A framework for reviewing the literature is offered, in which labour earnings, household expenditures and firm productivity are identified as the main channels through which economic globalisation affects cohesion, trust and pro-social behaviour. Evidence points towards substantial losses in cohesion following negative globalisation changes, altering cohesion through absolute and relative changes in employment and expenditure (and people’s perception thereof). However, evidence is thin and inconsistent; studies are limited to effects of trade (and not foreign direct investment), cover some dimensions of cohesion but not others, and often evaluate the effect of negative trade events on cohesion (while trade and foreign direct investment may offer gains to workers, households and firms, which boosts cohesion). From the available evidence, it is determined that when setting policy, it is important to address relative losses from globalisation (between groups), incorporate economic costs of social repercussions, and take on market distortions and underlying cyclical or secular trends that may amplify the effects of globalisation on cohesion.
Topic:
Globalization, Economy, Trade, and Social Cohesion
Political Geography:
Global Focus

3. (R)evolution? Exploring the Potential of Post-Development Approaches for Reforming Development Cooperation

Author:
Patrick Köllner
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The concept and mainstream approaches of development cooperation (DC) have been criticised since the early beginning of their existence. Post-development (PD) scholars have been criticising international DC since 1990 for both its Western perspective and the lack of reflection on asymmetrical power structures. Since also today DC has to face a variety of criticisms, we perceive PD approaches as a starting point for efforts towards change. We asked (1) to what extent and how elements of post-development approaches are reflected in the current policy initiatives of international DC, and (2) what potential do PD approaches have to reform DC. We analysed three examples: German feminist development policy (FemDP) as a relatively new idea of transformation, the locally led development approach as a long-standing concept and Global Public Investment (GPI) as an approach towards a new concept of international cooperation. By means of a content analysis, four commonly used PD elements were selected and slightly adapted to examine whether and how the three policy initiatives acknowledge PD aspects in order to reform DC: (1) the concept of alternatives to development, (2) pluralism of knowledge and power dynamics, (3) user-centred approaches and a critical stance towards the established scientific discourse and (4) the promotion of grassroots movements and local ownership. We discovered a variation in the use of the different PD elements. Although aspects related to power relations, post-colonial structures and knowledge management are prominent in all three initiatives, elements such as grassroots movements are given less consideration in all three cases. Even though FemDP does not focus on an alternative to development, as defined by PD approaches, it puts a strong emphasis on a transformative approach when it comes to its user-centred empowerment and tackles power imbalances by approaching decolonisation. Subsequently, the efforts of German Development Minister Svenja Schulze do not just describe a rhetorical reorientation but involve actual transformative efforts. However, further implementation efforts need to be analysed. The locally led development approach seems to be a suitable springboard for the inclusion of local knowledge and grassroots movements. Whereas the approach mostly uses descriptions of change as a means to reach its objectives, the GPI concept in particular uses PD elements as a reformative approach, as per the PD definition, putting the objective of the transformation of international public finance in international cooperation at its centre. Valuing PD approaches, we conclude that they do influence public initiatives in one way or another. In the future, if inner-systemic change should become an option, we see the greatest added value when PD scholars succeed in underpinning their approaches with instruments that can be used as tools in DC practice.
Topic:
Development, Public Investment, and Cooperation
Political Geography:
Germany and Global Focus

4. Tax Expenditures in OECD Countries: Findings from the Global Tax Expenditures Database

Author:
Martin Beznoska
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The Global Tax Expenditures Database (https://GTED.net/) collects national reports on tax expenditures for 101 countries for the period from 1990 to the present. Based on these data, the development of tax expenditures in the 38 OECD countries between 1999 and today is examined. A look at the data shows that even in countries with high GDP and comprehensive tax coverage, reporting is often incomplete. For a subset of 16 OECD countries for which (relatively) continuous reporting over the period is available, we look at the development of tax benefits for households and firms. We can show that data availability improves over time. For the development of business tax expenditures, a weakly significant positive trend can be identified in terms of tax revenues foregone, driven mainly by the Netherlands and Ireland. Both countries are known for wanting to strengthen their business location through generous tax expenditures for businesses. Tax expenditures for private households, which are on average higher than the level of tax expenditures for businesses in the countries under review, do not show any significant time trend, even though they were increasingly used to relieve the burden on private households and businesses during the financial crisis of 2008/09. In order to compare tax expenditures between countries and to better assess their effectiveness, regular reporting at the national level, transparent definitions and ideally uniform standards would be helpful. Regular monitoring by a commission of experts could contribute to the consistency and comparability.
Topic:
Development, Business, Tax Systems, and OECD
Political Geography:
Global Focus

5. What Role for Aid for Trade in (Deep) PTA Relations? Empirical Evidence from Gravity Model Estimations

Author:
Frederik Stender and Tim Vogel
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
While recent preferential trade agreements (PTAs) cover an increasingly broad range of policy areas beyond their traditional competence for reducing bilateral tariffs, little is known about the implications of this new emphasis on interactions with other trade-related policy measures. We approach this gap by examining the effectiveness of bilateral aid for trade (AfT) in deep North–South PTA relations. To this end, we use a structural gravity model for bilateral panel data of 29 OECD DAC countries and 144 developing countries from 2002–2015 and find that the marginal effect of AfT decreases as the policy areas of a PTA expand. Further investigation of the underlying mechanisms suggests that the observed trade-off between PTA depth and AfT effectiveness may be due to compliance with the non-tariff provisions contained in deep PTAs. We find two lines of reasoning plausible. First, compliance efforts appear to consume large fractions of AfT and thus reduce AfT available for potentially more effective projects, as we do not observe an alignment of AfT in deep PTAs. Second, since we also observe heterogeneity in interactions across donors, depending on their specific project portfolios, AfT provided by high-income PTA partners could well be used to redirect exports to third countries with comparatively fewer bilateral obligations. Donor countries should therefore carefully weigh compliance costs to developing countries against the non-trade benefits of common deep PTAs, and accurately identify financial and technical assistance needs together with their PTA partners.
Topic:
Development, Donors, Bilateral Aid, and Preferential Trade Agreements
Political Geography:
Global Focus

6. The Role of Social Protection in Environmental Fiscal Reforms

Author:
Daniele Malerba
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Socio-ecological transitions need to address the pressing challenges of our time, namely climate change mitigation and social development – including poverty and inequality reduction – in a complementary manner. The importance of achieving resilient and sustainable societies has been made more evident by recent shocks such as the Covid-19 pandemic and the war in Ukraine. As a consequence, national and international development policies need to foster links between social and environmental goals and policies. One way to achieve such synergies is through environmental fiscal reforms, defined as the combination of carbon-pricing mechanisms and consequent revenue spending for environmental and socio-economic goals. Even though carbon pricing is just one of the instruments needed to achieve climate goals, it provides the complementary benefit of expanding revenues while incentivising a reduction in emissions though market signals. This paper discusses environmental fiscal reforms from the perspective of low- and middle-income countries and development cooperation, with a focus on how to improve the social outcomes of such reforms. While revenues can be recycled for different purposes – including compensating industries with high adaptation costs, further investments in environmental projects and research, and use for the general budget – the paper focusses on social spending. The revenue can be used to decrease poverty and inequality levels and to compensate the poorest for increases in prices by utilising social protection mechanisms. This is particularly important to garner broad societal support and to make environmental fiscal reforms and carbon pricing more socially acceptable and implementable at sufficient levels in more countries. The paper first presents the key features of different carbon-pricing policies and the revenues they can generate, especially for low- and middle-income countries that have limited fiscal space. It then shows how the revenue can be used to fund social protection mechanisms that can compensate the poorest and address distributional concerns. It underlines the gaps and limitations of current social protection programmes, especially in terms of low coverage of vulnerable populations. This also constrained the response to the war in Ukraine, as lower-income countries had to use price stabilisation mechanisms – which ultimately generated negative fiscal and environmental effects – to avoid inflicting greater burdens on the poor instead of providing targeted programmes. The paper also offers some design principles to best address distributional concerns, including sequencing and sectoral coverage. It then discusses the role that development cooperation can have in implementing environmental fiscal reforms in low- and middle-income countries. Overall, the paper suggests that environmental fiscal reforms can be used to achieve resilient societies and accelerate the fight against climate change, with the goal of building a more inclusive and sustainable future. Such reforms should become a priority of German development cooperation and a key lever for its strategic goals, instead of occupying a peripheral role, as it currently does. Most importantly, the analysis strongly underlines the case for environmental fiscal reforms rather than the current use of subsidies and price controls; this is true when considering both climate goals (as keeping prices low does not incentivise shifts in production and consumption) as well as social goals (e.g. cash transfers result in significantly greater levels of poverty and inequality reduction when compared to untargeted subsidies). Therefore, social protection investments are urgently needed, also in lower-income countries. The current energy crisis due to the war in Ukraine and the Covid-19 pandemic has made this clearer.
Topic:
Climate Change, Development, Environment, Reform, and Protection
Political Geography:
Global Focus

7. Development Finance at a Turning Point: Effects and Policy Recommendations

Author:
Kathrin Berensmann, Sabine Laudage Teles, Christoph Sommer, and Yabibal M. Walle
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Development finance is at a turning point, as the macroeconomic environment has changed profoundly and the financing gap for low- and middle-income countries has widened. The events that led to this new situation are the multiple crises that the global economy is facing, such as the climate crisis, the COVID-19 crisis and the war in Ukraine. As a result, interest rates have risen sharply over the past year and are not expected to decline anytime soon. High interest rates further restrict low- and middle-income countries’ access to international financial markets by making borrowing more expensive. At the same time, debt levels in several countries are rising to levels that are almost impossible to repay. Poorer countries find themselves in a trap where financing the Sustainable Development Goals (SDGs) becomes a distant goal for them. To “get back on track” in financing the 2030 Agenda and the SDGs, a number of reform proposals have been put forward within several processes and initiatives, including the Financing for Development (FfD) process, the Bridgetown Initiative and the Macron-led Paris Summit. Despite being initiated by different actors, these proposals all highlight the importance of reforming the international financial architecture in view of the changed macroeconomic environment. The Hamburg Sustainability Conference in June 2024, the United Nation’s Summit of the Future in 2024 and the next FfD Conference in 2025 should be used to strengthen and accelerate ongoing reform processes and come up with new, innovative and bold proposals to reshape development finance in these challenging times. Against the background of the multiple crises and its effects, our key recommendations for the reform of development finance are as follows.
Topic:
Debt, Development, Reform, Finance, Sustainable Development Goals, and Multilateral Development Banks (MDBs)
Political Geography:
Germany and Global Focus

8. 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

9. Is Foreign Direct Investment Losing Clout in Development?

Author:
Axel Berger and Alexandros Ragoussis
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Over the last decade, only a single projection of foreign direct investment (FDI) flows by the United Nations influential “World Investment Report” has proposed a negative outlook in the medium term. Based partly on surveys of business executives, these forecasts reflect ex¬pecta¬tions of investment growth which, however, have repeated¬ly failed to materialise. In fact, FDI flows to develop¬ing countries have remained stagnant over the past decade. Such wishful thinking is nurtured by a long series of positive narratives and facts about foreign investment. FDI has been one of the pillars of international development efforts for over 70 years. Its promise has not been limited to critical finance, but extends to longer term competitiveness through access to better technology, managerial know-how and, above all, prosperity through more and better paid jobs in the formal sector. From the old prescriptions of the so-called Washington Consensus to the hopeful Addis Ababa Action Agenda, the dominant development narrative has therefore favoured a rather indiscriminate pursuit of investment volume. This brief calls for rethinking of narratives and policies that help to improve the impact of FDI, based on secular trends that challenge our expectations. Four such trends stand out: First, while other sources of finance for development have grown considerably over the last decades, foreign invest¬ment has not followed the trend. Second, the kind of investment that is associated with stronger gains and longer term commitment in host economies – greenfield FDI – has also been in consistent decline as a share of total invest¬ment, while mergers and acquisitions and project finance have gained in importance. Third, the top 100 multinational enterprises (MNEs), accounting for nearly a quarter of global FDI stock, rely less on employment today than they used to in order to grow their foreign presence. Job creation, knowledge transfer and spillovers are therefore less likely to materialise through the presence of mega-firms and their corresponding investment at scale. Fourth, the growth of Chinese outward FDI within a strategic expan¬sionary political agenda stands to change rules and attitudes towards foreign investment moving forwards. We argue that, collectively, these trends invite a renewed conversation around the kind of foreign investment we want and expectations of this source of finance for develop¬ment. These facts obscure neither the broad benefits of FDI to developing countries, nor the value proposition of FDI attraction. Rather, they raise questions about expectations, priorities and the alignment of investment policy with the realities experienced across develop¬ing countries. To that end, we propose four priorities that stand to make a difference in the current context. We call for policy-makers to: 1) Place additional emphasis on retention of investment and linkages with the domestic economy. 2) Try new approaches for FDI attraction that focus on improving domestic investment facilitation frameworks. 3) Be selective as to investment sources and activities in order to mitigate political risks and align inward investment better with sustainable development. 4) Add evidence to improve our understanding of invest¬ment and inform decision-making. Overall, it is critical to engage in a serious multi-stakeholder conversation around expectations, actors and solutions that respond to the investment reality of today.
Topic:
Development, United Nations, Foreign Direct Investment, and Economy
Political Geography:
Global Focus

10. International Democracy Promotion in Times of Autocratization: From Supporting to Protecting Democracy

Author:
Julia Leininger
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The worldwide wave of autocratization is doing away with many of the democratic achievements made since 1989. Scholarship on international democracy promotion is yet to theorise how democracy can be protected from autocratization. Such a theory must account for different democratic and autocratic trajectories as well as integrate theoretical approaches from international relations and comparative politics in the study of democracy promotion. However, such a combined perspective is still missing. One reason for this is that the field lacks a clear concept of “protection” and does not yet systematically integrate evidence from democratization research. This paper addresses this research gap. It is the first attempt to develop a concept theory of democracy promotion, which includes support and protection of democracy. Coupling this with a depiction of six phases of regime change, this paper makes a second contribution: based on the proposed conceptual and theoretical integration, it generates a series of testable anchor points for further empirical analysis on what strategies are most likely to be effective during the various phases of regime change.
Topic:
International Relations, Democratization, Regime Change, Democracy, and Autocracy
Political Geography:
Global Focus