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  • Author: Gary Clyde Hufbauer
  • Publication Date: 03-2021
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: Open Sub-navigation BackOpen Sub-navigation Publications Back Policy Briefs Working Papers Books PIIE Briefings Open Sub-navigation Commentary Back Op-Eds Testimonies Speeches and Papers Topics & Regions PIIE Charts What Is Globalization? Educational Resources Open Sub-navigation Back Senior Research Staff Research Analysts Trade Talks Open Sub-navigation Back RealTime Economic Issues Watch Trade & Investment Policy Watch China Economic Watch North Korea: Witness to Transformation 中文 Open Sub-navigation Back All Events Financial Statements Global Connections Global Economic Prospects Stavros Niarchos Foundation Lectures Trade Winds Open Sub-navigation Back News Releases Multimedia Media Center Open Sub-navigation Back Board of Directors Staff Employment Contact Annual Report Transparency Policy POLICY BRIEF VIEW SHARING OPTIONS Will industrial and agricultural subsidies ever be reformed? Gary Clyde Hufbauer (PIIE) Policy Brief21-5 March 2021 Photo Credit: REUTERS/Denis Balibouse One economic argument for government subsidies is that they are necessary to compensate firms and industries for benefits they provide to society at large but cannot capture in the prices they charge for goods or services. For example, subsidies to renewable energy are defended because renewable energy limits carbon emissions. When a major economy subsidizes extensively, however, its trading partners are drawn into the game, with losses all around. As the prisoner’s dilemma suggests, a better outcome would entail mutual restraint. But the goal of mutual restraint is no less difficult in international trade than it is in international arms control. Both the European Union and the US federal system try, in different ways, to regulate industrial subsidies. Hufbauer examines efforts to contain unjustifiable subsidies and proposes modest improvements, bearing in mind that as countries struggle to overcome the global economic downturn resulting from the COVID-19 pandemic, there is little appetite for restoring a free market economy—one in which firms compete with minimum government assistance or regulation. Selective upgrading of the rulebook may nevertheless be possible.
  • Topic: Agriculture, Government, Reform, European Union, Regulation, Manufacturing, Industry, COVID-19, Subsidies
  • Political Geography: Europe, North America, United States of America
  • Author: Olivier Marty, Damien Ientile
  • Publication Date: 03-2021
  • Content Type: Policy Brief
  • Institution: Robert Schuman Foundation (RSF)
  • Abstract: Despite the European Union's ambitious response, the current crisis is a stark reminder of a nagging problem: the challenge, in practice, to the principles and concepts governing major European economic policies. This situation can be seen in monetary policy, budgetary rules, trade policy, competition, the European budget and the structure of the euro zone. It fuels resentment between Member States and populations and, paradoxically, it encourages economic divergence. It is also undermining the legibility and credibility of European action in the eyes of the public. It therefore would seem advisable to reform the European economic framework in a pragmatic rather than radical way.
  • Topic: Reform, Budget, Economic Policy, Trade Policy
  • Political Geography: Europe
  • Author: Danièle Hervieu-Léger
  • Publication Date: 01-2021
  • Content Type: Policy Brief
  • Institution: Robert Schuman Foundation (RSF)
  • Abstract: Crises reveal the state of a policy, reveal its ambiguities, strengths and shortcomings, and sometimes force a redefinition or clarification of its guiding principles to ensure its sustainability, if not its survival. Although at the height of the crisis, there is a reflex to completely overhaul what already exists, the constants and structuring considerations quickly tend to dampen the ardour for reform.
  • Topic: Reform, European Union, Trade, COVID-19, Adaptation
  • Political Geography: Europe
  • Author: Asli Selin Okyay, Luca Barana
  • Publication Date: 09-2020
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Europe’s institutional landscape and political context have evolved considerably over the past year, with implications spanning numerous policy domains, including migration. The formation of the new European Commission, its commitment to deliver a New Pact on Migration and Asylum and the negotiations for the next Multi-Annual Financial Framework (MFF) have set the stage for much needed reforms in the migration field, a policy area still largely driven by the emergency mindset inherited from the 2015–16 “crisis”.
  • Topic: Migration, Reform, European Union, Refugees, Coronavirus
  • Political Geography: Europe
  • Author: Arkady Moshes, Ryhor Nizhnikau
  • Publication Date: 08-2020
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: Alexander Lukashenko’s “victory” in the election cannot bridge the gap between the president and the modern part of Belarusian society. Turbulent times may lie ahead for Belarus. This will require the West to revise its current approach and invest more in supporting forces that want reforms and the country’s Europeanization.
  • Topic: Reform, Elections, Europeanization, Transition
  • Political Geography: Europe, Eastern Europe, Belarus
  • Author: Kristiina Silvan
  • Publication Date: 11-2020
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: Under the leadership of President Shavkat Mirziyoyev, Uzbekistan has embarked on a moderate reform programme that aims to achieve socio-economic growth without undoing the country’s authoritarian political system. The programme has implications beyond Uzbekistan’s borders because it has changed the way Uzbekistani foreign policy is formulated and implemented. Uzbekistan’s former isolationist stance has shifted to a foreign policy opening, which is most noticeable in the improvement of its relations with its neighbours. This Working Paper analyzes “good neighbourliness”, the key concept of Uzbekistan’s new Central Asia policy. It details the amendment of Uzbekistan’s bilateral relations with its neighbours and points to the positive reception of Uzbekistan’s new regional policy in Russia, China, and the West. The paper argues that while “good neighbourliness” is a pragmatic strategy rooted in economic rationality, the policy’s regional implications are substantial. It is laying the necessary foundation for sustainable Central Asian co-operation from within in a way that is acceptable to the Central Asian states and big non-regional actors alike.
  • Topic: Regional Cooperation, Bilateral Relations, Authoritarianism, Reform, Leadership
  • Political Geography: Russia, China, Europe, Central Asia, Asia, Uzbekistan
  • Author: Dan Ciuriak, Maria Piashkina
  • Publication Date: 04-2020
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The rapid digital transformation occurring worldwide poses significant challenges for policy makers working within a governance framework that evolved over centuries. Domestic policy space needs to be redefined for the digital age, and the interface with international trade governance recalibrated. In this paper, Dan Ciuriak and Maria Ptashkina organize the issues facing policy makers under the broad pillars of “economic value capture,” “sovereignty” in public choice and “national security,” and outline a conceptual framework with which policy makers can start to think about a coherent integration of the many reform efforts now under way, considering how policies adopted in these areas can be reconciled with commitments under a multilateral framework adapted for the digital age.
  • Topic: International Trade and Finance, Reform, Digital Economy, Multilateralism, Digitization
  • Political Geography: United States, China, Europe, Asia, North America
  • Author: Marek Dabrowski, Marta Dominguez-Jimenez, Georg Zachmann
  • Publication Date: 06-2020
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: Since the Euromaidan protests (2013-2014), Ukraine has had two presidents and four governments. In a difficult environment of external aggression, they have initiated various reforms aimed at bringing the country closer to the European Union and boosting growth. Progress has been partial and relies on international backing, with limited domestic appetite for reform.
  • Topic: Corruption, Privatization, Foreign Aid, Governance, Reform, European Union, Finance, Macroeconomics
  • Political Geography: Europe, Ukraine
  • Author: Jana Juzová
  • Publication Date: 05-2020
  • Content Type: Commentary and Analysis
  • Institution: Europeum Institute for European Policy
  • Abstract: Wednesday’s Summit of EU and Western Balkans leaders was long-anticipated following the efforts aimed at reviving the EU enlargement process. The Summit was originally planned to be organized in Zagreb, under the Croatian EU presidency, however, due to the coronavirus pandemic, it was held as a videoconference. Nevertheless, the fact that the Summit was realized despite the current global situation, even on the scheduled date, demonstrates that the Western Balkan region represents a priority for Croatia as well as the rest of the EU, and that the EU genuinely wants to revitalize the enlargement process. It was expected that the Summit in Zagreb would follow up on the positive developments in the past months, those being the positive decision of the European Council on opening the accession negotiations with Albania and North Macedonia, and the adoption of a new enlargement methodology (i.e. set of rules leading the accession process). However, the Summit’s agenda was naturally influenced by the current COVID-19 pandemic and the central topic was eventually the assistance provided by the EU to the Western Balkan countries and a larger plan for their economic recovery.
  • Topic: Reform, European Union, Democracy
  • Political Geography: Europe, Balkans
  • Author: Dimitra Tsigkou
  • Publication Date: 12-2020
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: The bilateral cooperation between France and Germany has historically played a crucial role in the European integration process. The negotiations between the two most potent European economies have profoundly influenced both the structural arrangements of the European Monetary Union (EMU) as well as the debate on its potential reform, in light of the European sovereign debt crisis. Nonetheless, these two member states have radically different stances when it comes to the strengthening of the euro area, which are related to their divergent economic philosophies. This paper draws on insights from comparative political economy literature in order to explain how the institutional features of different varieties of capitalism have led these member states to adopt divergent growth strategies while participating in the same monetary union. In this respect, it is argued that France and Germany have put forward proposals regarding the Eurozone reform effort, which reflect their endeavor to preserve their comparative institutional advantages and, ultimately, promote their own vision on the deepening of the EMU. The original contribution of this working paper is that it presents and codifies the aforementioned proposals submitted by the European Commission as well as the political views expressed by France and Germany.
  • Topic: Regional Cooperation, Bilateral Relations, Reform, European Union
  • Political Geography: Europe, France, Germany