Search

Begin New Search Publishing Institution Urban Institute

1. Preferential Trade Agreements vs. Multilateralism: In the New Trump-World, Does Canada Face an Impossible Choice?

Author:
Judit Fabian
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Urban Institute
Abstract:
International trade is often framed in starkly divergent terms: either countries choose multilateral trade agreements (MTAs) and advance the cause of global economic liberalization, or they choose preferred trade agreements (PTAs) and put the entire system at risk. Canada has a long track record of pursuing PTAs and with the Trump administration’s opposition to multilateralism, and longstanding opposition in elements of the Republican and Democratic parties, this trend will likely continue. The question is whether progress will come at the expense of the global trade system. Some economists believe PTAs to be trade-diverting, reducing trade with more efficient producers outside the agreement. Others insist that PTAs can create trade by shifting production to lower-cost producers in one of the participating countries. One prominent contrary argument holds that PTAs lead to discontinuities in tariff regimes between countries and regions, increasing transaction costs, disrupting supply chains, creating opportunities for corruption and harming global welfare, especially in developing nations. While debate continues about the effects of PTAs, a closer examination suggests that worries are overblown about their negative impacts on global trade flows. Evidence indicates that they support rather than harm the international trading system. Countries shut out of PTAs are more motivated to seek out agreements in new markets, increasing liberalization overall. They may also seek a reduction in most-favoured nation (MFN) tariffs, which would deprive PTAs of their major tariff benefits. Studies have found complementarity between preferential and MFN tariffs, revealing that PTAs promote external trade liberalization. Even if a PTA reduces a given country’s incentive to push for multilateral liberalization, it raises the odds of that country liberalizing its trade to avoid getting left behind. PTAs are a response to the difficulties of securing sweeping multilateral agreements. The World Trade Organization (WTO) Agreements authorize them under GATT Article XXIV, GATS Article V, and the enabling clause, and the WTO facilitates a degree of governance over PTAs through its dispute settlement process. Over the past 25 years, countries have adopted these deals at a rapid pace. Between 1994 and 2005, the number of PTAs increased from 50 to 200. By April 2018, 336 were in effect. At the same time, global trade has increased significantly. Between 1994 and 2010, the volume of world merchandise exports more than doubled. The proliferation of PTAs has resulted in a rise in international trade governance, because the countries involved shape their relationships in line with the WTO agreements. This juridification makes PTAs subordinate to the international system rather than giving them room to dissolve it. Canada should therefore have no fear of pursuing PTAs within the larger framework of the effort to achieve multilateral trade liberalization.
Topic:
Economics, International Trade and Finance, Governance, Trade, and Donald Trump
Political Geography:
Canada, North America, and United States of America

2. COVID-19 in Kenya: Indices on County Healthcare Capacity and Populations at Risk

Author:
Harvey Galper and Reehana Raza
Publication Date:
11-2020
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
On March 13, Kenya reported its first case of COVID-19, and an additional 649 cases were reported in the following two months. As the pandemic spreads, Kenya’s policymakers are facing the first significant challenge to the country’s nascent intergovernmental system and will have to prioritize how to spend the country’s scarce resources amid existing fiscal constraints. Established in 2013, Kenya’s decentralized government structure gives the country’s 47 counties the primary responsibility of delivering health care services to their citizens. But historical and geographical factors have led to substantial variation across counties in both health care capacity and risk of contracting the coronavirus. To make critical decisions to control the pandemic, Kenya’s policymakers will need not only accurate data on the spread of the coronavirus but also county-specific data and analyses on health care capacity and population risk. With such county-level data, the national government can flatten the curve and better allocate the country’s limited resources in line with individual counties' circumstances.
Topic:
Health, Population, Pandemic, and COVID-19
Political Geography:
Kenya and Africa

3. How Developing Countries Can Manage the COVID-19 Economic Impact

Author:
Matthew Eldridge
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
Even as many developing countries are confronting the health impacts of the COVID-19 pandemic, they are already bracing for the widespread, global recession that will follow. These countries already struggle to provide many services and supports to their citizens, and although the emergency assistance packages of international financial institutions are a start, they alone won’t be enough to mitigate the economic impact of COVID-19 and enable a strong recovery. Although most developing countries escaped the 2007–08 financial crisis with limited damage, for many, this economic downturn is expected to be much worse because of the direct health effects, the sharp decline in global economic activity, the structural composition of their economies, and constrained policy options.
Topic:
Development, Economics, Pandemic, and COVID-19
Political Geography:
Global Focus

4. Why Are Women Opting Out of India’s Growing Economy?

Author:
Alex Tammaro and Alex Katz
Publication Date:
01-2020
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
Despite India’s strong economic growth, women’s labor force participation in India has decreased—from 33 percent in 2005, to 27 percent in 2010, to 24 percent in 2019. Even with increased investment in women’s access to education and professional opportunity, women are leaving the labor market, dampening economic productivity and innovation. So why are women opting out? Bhavani Arabandi offered answers in a presentation to Urban Institute staff titled Karma and the Myth of the Indian Superwoman. Arabandi spoke to highly skilled, highly educated Indian women as part of an ethnographic study to determine why they step away from lucrative, fulfilling careers. She examined how structural barriers—the disadvantages, constraints, and discouragement women face—are “treated as normal by society and often internalized.”
Topic:
Gender Issues, Labor Issues, Women, Economic Growth, and Participation
Political Geography:
South Asia and India

5. Kenya’s Optimistic Revenue Forecasts Are Causing Problems, but Better Tools Can Help

Author:
Cade McCurdy, Harvey Galper, and Reehana Raza
Publication Date:
11-2019
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
For national governments around the world, effective budgeting depends on accurate revenue forecasts. Revenue forecasts are estimates of what governments will collect from various sources, such as income taxes, value-added taxes, corporate taxes, and excises, which together determine the funds available to allocate to various public programs. If revenues are significantly overestimated in the budgetary process, the results can be unexpected borrowing, high debt-service costs, and cutbacks in these important governmental services. Under Kenya’s newly decentralized government structure, accurate revenue forecasting has become more important than ever. Kenya’s new constitution, approved in 2010, decentralized the country’s government structure and created 47 county governments, each responsible for a broad range of programs and services. Counties’ execution of these programs depends heavily on funds from the national government.
Topic:
Government, Budget, Economic Growth, and Revenue Management
Political Geography:
Kenya and Africa

6. Creative Financing Could Help Cities Like Portland, Maine, Integrate Asylum Seekers and Tackle Other Challenges

Author:
Matthew Eldridge and Charles Cadwell
Publication Date:
09-2019
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
This summer, several hundred asylum seekers—most fleeing violence in Angola and the Democratic Republic of the Congo—arrived in Portland, Maine, igniting a debate on how to support these new arrivals, most of whom have immediate housing and service needs, as well as issues related to trauma and navigating a new country, and whether to encourage more immigration to bridge local labor shortages. The responsibility of providing services for asylum seekers—unlike refugees, who have access to some supports—falls into a gray area without clearly delineated roles for local, state, and federal government agencies. If granted asylum, these individuals would be eligible for federal supports, but that process could take months or years. Capacity constraints among local service providers are limiting their ability to expand services to meet these new needs. Although there may be long-term, quantifiable benefits for integrating these new, mostly younger residents into communities with workforce needs, the short-to-medium-term integration and support costs, coupled with unclear funding responsibilities and tight budgets, present barriers to action.
Topic:
Refugees, Asylum, and Integration
Political Geography:
Africa, North America, Angola, United States of America, and Congo

7. How Can We Minimize the Disruption of Political Transition in Developing Countries?

Author:
Reehana Raza, Karuti Kanyinga, and Akanshaka Ray
Publication Date:
08-2019
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
On August 8, 2017, Kenya held its first elections since creating 47 new county governments in 2013 under a constitution promulgated in 2010. The elections were intensely contested both at the national and local level. Disputes over presidential results, amid allegations of fraud, saw Kenya’s new apex court, the Supreme Court, annul the August 8 presidential election. The court ordered a fresh presidential poll, which was held on October 26, 2017. Meanwhile, more than 20 local governorship results were legally contested, with multiple cases being taken all the way to the Supreme Court. These elections and the violence that followed the disputed presidential election created long periods of uncertainty across Kenya’s national and local government. In Wajir county, the election result for governor was contested for almost 20 months, until the Supreme Court ruled last February that the election was valid. Political transition generally creates uncertainty for bureaucrats, but prolonged transition periods exacerbate uncertainty and paralyze government functions. An annual survey and a technical report by partners implementing a project funded by the US Agency for International Development and the UK Department for International Development, Agile Harmonized Assistance for Devolved Institutions (AHADI), assesses how 22 Kenyan counties are improving their capacity to efficiently provide services to citizens. The most recent 2018 assessment shows how the 2017 elections undermined counties’ ability to sustain and maintain capacity-building initiatives.
Topic:
Development, Government, Elections, and Transition
Political Geography:
Kenya and Africa

8. Gender Norms and Women’s Economic Empowerment in Low-Income Countries: What We Learned by Reviewing the Evidence

Author:
H. Elizabeth Peters, Shirley Adelstein, and Robert Abare
Publication Date:
04-2019
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
Women around the world face barriers to participating in the labor force, especially in traditionally male-dominated sectors. Addressing these barriers in low-income countries can improve both women’s well-being and the countries’ entire economies (PDF). Building on Urban’s prior research, we recently completed a systematic review (PDF) of qualitative studies of women’s labor force participation and upward mobility. We focused on studies of the higher-productivity, male-dominated sectors of commercial agriculture, mining, and trade and found studies from 18 low-income countries, mostly those in Sub-Saharan Africa, but also in East Asia, South Asia, and Latin America. Barriers to economic empowerment observed by the studies were far ranging, including gender-related laws, violence and sexual harassment, and limited access to land, technology, technology skills, credit and capital, and social and business networks. But one of the strongest and most consistent findings from our review was the influence of social norms about gender.
Topic:
Gender Issues, Women, and Economic Development
Political Geography:
Global Focus

9. Is there a right way to accommodate rapid urban growth in developing countries?

Author:
Matthew Eldridge
Publication Date:
02-2019
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
The United Nations projects that by 2050, urban areas will swell in size by 2.5 billion people, with 90 percent of that growth occurring in Asia and Africa. Urbanization presents significant development benefits—boosting innovation, human capital accumulation, and access to opportunities—but it also strains existing physical infrastructure, social services, and public health systems. To manage the challenges and maximize the benefits of rapid growth, national and municipal governments, civil society, and development partners (among others) must weigh interrelated financial, political, cultural, economic, and technical considerations. For many, the big question is whether cities should build anew in urban peripheries or retrofit and reinvest in urban cores. At a recent event hosted by the Urban Institute, in partnership with the World Bank, experts considered this question through the lens of one rapidly growing city: Dhaka, Bangladesh, examined in a new World Bank report, Toward Greater Dhaka.
Topic:
Development, Economic Growth, and Urban
Political Geography:
Bangladesh and Global Focus

10. Greater transparency is still possible for single-party democracies in Africa

Author:
Fenohasina Rakotondrazaka Maret and Jacques Lévesque
Publication Date:
01-2019
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
Across Africa, there is increasing public investment in strategies to promote government transparency and empower citizens to hold their leaders accountable. Achieving transparency, however, is a formidable challenge, especially given constraining political contexts in some sub-Saharan African countries, a third of which have been ruled by a single party for several decades.
Topic:
Government, Democracy, Accountability, Investment, and Transparency
Political Geography:
Africa and Tanzania