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  • Author: Alan Reynolds
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: Estimates of the elasticity of taxable income (ETI) investigate how high‐​income taxpayers faced with changes in marginal tax rates respond in ways that reduce expected revenue from higher tax rates, or raise more than expected from lower tax rates. Diamond and Saez (2011) pioneered the use of a statistical formula, which Saez developed, to convert an ETI estimate into a revenue‐​maximizing (“socially optimal”) top tax rate. For the United States, they found that the optimal top rate was about 73 percent when combining the marginal tax rates on income, payrolls, and sales at the federal, state, and local levels. A related paper by Piketty, Saez, and Stantcheva (2014) concluded that, at the highest income levels, the ETI was so small that comparable top tax rates as high as 83 percent could maximize short‐​term revenues, supposedly without suppressing long‐​term economic growth. Such studies could be viewed as part of a larger effort to minimize any efficiency costs of distortive taxation while maximizing assumed revenue gains and redistributive benefits.
  • Topic: Economics, History, Tax Systems, High-Income People
  • Political Geography: North America, Global Focus, United States of America
  • Author: Andrew Preston, Darren Dochuk, Christopher Cannon Jones, Kelly J. Shannon, Vanessa Walker, Lauren F. Turek
  • Publication Date: 01-2021
  • Content Type: Commentary and Analysis
  • Institution: The Society for Historians of American Foreign Relations (SHAFR)
  • Abstract: Historians of the United States and the world are getting religion, and our understanding of American foreign relations is becoming more rounded and more comprehensive as a result. Religion provides much of the ideological fuel that drives America forward in the world, which is the usual approach historians have taken in examining the religious influence on diplomacy; it has also sometimes provided the actual nuts-and-bolts of diplomacy, intelligence, and military strategy.1 But historians have not always been able to blend these two approaches. Lauren Turek’s To Bring the Good News to All Nations is thus a landmark because it is both a study of cultural ideology and foreign policy. In tying the two together in clear and compelling ways, based on extensive digging in various archives, Turek sheds a huge amount of new light on America’s mission in the last two decades of the Cold War and beyond. Turek uses the concept of “evangelical internationalism” to explore the worldview of American Protestants who were both theologically and politically conservative, and how they came to wield enough power that they were able to help shape U.S. foreign policy from the 1970s into the twenty-first century. As the formerly dominant liberal Protestants faded in numbers and authority, and as the nation was gripped by the cultural revolutions of the 1960s, evangelicals became the vanguard of a new era in American Christianity. Evangelicals replaced liberal Protestants abroad, too, as the mainline churches mostly abandoned the mission field. The effects on U.S. foreign relations were lasting and profound.
  • Topic: International Relations, Religion, International Affairs, History, Culture, Book Review, Christianity, Diplomatic History
  • Political Geography: United States, Global Focus
  • Author: Thomas W. Zeiler, Grant Madsen, Lauren F. Turek, Christopher Dietrich
  • Publication Date: 04-2021
  • Content Type: Commentary and Analysis
  • Institution: The Society for Historians of American Foreign Relations (SHAFR)
  • Abstract: When David Anderson, acting as a conduit for editors at the Journal of American History, approached me at a SHAFR meeting in 2007 to write a state-of- the-field essay, I accepted, in part because we were sitting in a bar where I was happily consuming. The offer came with a responsibility to the field. I was serving as an editor of our journal, Diplomatic History, as well as the editor of the digitized version of our bibliography, American Foreign Relations Since 1600: A Guide to the Literature. Because these positions allowed me to survey our vibrant field, accepting the offer seemed natural. And I was honored to be asked to represent us. Did I mention we were drinking? I’m sure that Chris Dietrich accepted the invitation to oversee this next-gen pioneering Companion volume from Peter Coveney, a long-time editorial guru and booster of our field at Wiley-Blackwell, for similar reasons. This, even though there were times when, surrounded by books and articles and reviews that piled up to my shoulders in my office (yes, I read in paper, mostly), I whined, cursed, and, on occasion, wept about the amount of sources. What kept me going was not only how much I learned about the field, including an appreciation for great scholarship written through traditional and new approaches, but both the constancy and transformations over the years, much of it due to pressure from beyond SHAFR that prompted internal reflections. Vigorous debate, searing critiques, sensitive adaptation, and bold adoption of theory and methods had wrought a revolution in the field of U.S. diplomatic history, a moniker itself deemed outmoded.
  • Topic: International Relations, Foreign Policy, History, Diplomatic History
  • Political Geography: United States, Global Focus
  • Author: Clifford F. Thies, Christopher F. Baum
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: With the collapse of the Soviet Union, it was thought that major wars had become obsolete (Mueller 1989) and perhaps regional conflicts might be brought under control (Cederman, Gleditsch, and Wucherpfennig 2017). But, while the level of violence declined, the number of wars in the world appears to have reached a new steady state. A world that was once organized by East-West rivalry is now characterized by ethno-religious conflicts, as well as by spontaneously arising transnational terrorist organizations and criminal gangs. For various reasons, economists have become interested in investigating the causes and effects of war and other armed conflict (e.g., Coyne and Mathers 2011). This article uses a consistent measurement of these forms of violence across space and time to conduct a rigorous quantitative analysis of the effect of war on economic growth.
  • Topic: Cold War, War, History, Economic Growth, Conflict
  • Political Geography: Global Focus
  • Author: Christopher Way
  • Publication Date: 07-2020
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: In a climate of concern about the future of capitalism and democracy, this book provides a robust defense of both. Capitalism and democracy, Torben Iversen and David Soskice argue, are mutually reinforcing, and the combination has been remarkably successful over the past century. In what will probably be the most discussed part of the book, they anticipate that the symbiotic pair will continue to thrive, overcoming the challenges posed by populism and inequality. Democracy and Prosperity provides a challenge to those who believe that capitalism is increasingly unable to fulfill the needs of broad swaths of society and that democracy is creaking under the strains of populism.
  • Topic: History, Democracy, Capitalism, Book Review
  • Political Geography: Global Focus
  • Author: Edwin M. Truman
  • Publication Date: 10-2020
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: The coronavirus pandemic and an unprecedented global recession have triggered fears of a debt crisis requiring massive intervention by international financial institutions as well as debt restructuring by private and official creditors. Truman draws two lessons for the current crisis, based on his ring-side experience during the debt crises of the 1980s. First, the initiation of debt relief will require a broad consensus among four groups: the borrowing countries, their foreign creditors, the authorities of the countries in which those creditors are located, and international institutions. Reaching consensus takes time. Second, implementation of the consensus framework will be case by case, because of differences in the political and economic circumstances of each country, which will militate against simple replication for different countries and against implementation all at the same time. Any framework will not be self-implementing. While the call for rapid action is understandable, applying a one-size-fits-all approach will not be possible.
  • Topic: Debt, Emerging Markets, History, International Monetary Fund, Financial Crisis, World Bank, COVID-19
  • Political Geography: Global Focus
  • Author: Linwood DeLong
  • Publication Date: 01-2020
  • Content Type: Book
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: Much has changed since A Guide to Canadian Diplomatic Relations 1925-1983 was first published in 1985. The Soviet Union and Yugoslavia no longer exist. New states have emerged not only in Europe, but also in Africa. Canada quickly established diplomatic relations with the member states of the former Soviet Union and Yugoslavia after their respective dissolutions. In 2003, Canada recognized Eritrea as a separate state and in July 2011, Canada recognized the new state of South Sudan. Finding the date of Canadian diplomatic recognition of a given country or state, the date when diplomatic relations were established with Canada and the date when the first Canadian ambassador or high commissioner took office continues to be a challenge. The print publication, Canadian Heads of Post Abroad 1880-1989, issued by External Affairs and International Trade Canada in 1991, is an excellent source of information, but it is limited by its publication date. A similar online source, Canadian Heads of Posts Abroad Since 1880 (http://w03.international.gc.ca/headsofpost/searchhp-recherchecm.aspx) provides some information specifically pertaining to heads of posts for Canadian diplomatic missions abroad, but it does not always provide information about the date of diplomatic recognition of any given state. In many cases, only the recent information, rather than the historical information concerning the first diplomatic recognition or the date of establishment of diplomatic relations, is provided. Other important sources of information include Canadian Representatives Abroad, the annual reports or annual reviews of the Department of External Affairs (now known as Global Affairs Canada), the External Affairs communiqués and press releases, the publication called External Affairs (which was issued from 1949-1971) and its successor, International Perspectives (published from 1980 to 1991). In this most recent edition of A Guide to Canadian Diplomatic Relations, the following information (if it could be determined) is included for each country: the date of diplomatic recognition, the date that diplomatic relations were first established and the date when the first diplomatic mission was opened (frequently, a legation staffed by a diplomatic representative of lower rank than an ambassador or high commissioner). It also includes the date when the Canadian ambassador or high commissioner first presented his/her credentials and the diplomatic mission officially became an embassy or a high commission. In those few instances where diplomatic relations between Canada and another state were severed, this date, as well as the date when diplomatic relations were re-established, is also provided.
  • Topic: Foreign Policy, Diplomacy, Government, History
  • Political Geography: Canada, North America, Global Focus
  • Author: Andreas Antoniades, Ugo Panizza
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Centre for Global Political Economy, University of Sussex
  • Abstract: The recurrence of ever more destructive economic crises and patterns of pervasive indebtedness and inequality threaten the social fabric of our societies. Our main responses to these trends have been partial, focusing on symptoms rather than causes, often exacerbating rather than improving the underlying socio-economic dynamics. To reflect on these conditions and on ‘what needs to be done’ this paper turns to a similar socio-economic malaise faced by the city-state of Athens in the 6th century BC. Most historical studies dealing with this crisis focus on the comprehensive debt relief policy (seisachteia) implemented by Solon. We argue that this debt relief, although necessary, was the least important of Solon’s reforms. Solon read the problem of debt as a problem of money so he went on to reform the monetary and exchange system. But he did not think that these reforms alone could restore socioeconomic sustainability. For this, a redefinition of what was counted as valuable economic activity and as income had also to take place. And for all these to work, citizens had to be involved more in the commons. Far from only achieving socioeconomic sustainability, these reforms gave rise gradually to the demos that we meet in the golden age of Democracy. It is indeed interesting that Democracy, in its ideal type of the 5th century BC, finds its origin in the way in which a society responded to a major socioeconomic crisis, characterised by pervasive indebtedness and destabilising inequalities. Such a broader historical horizon may help us grasp better the problems, stakes and challenges of our times.
  • Topic: Debt, Political Economy, History, Democracy, Global Political Economy
  • Political Geography: Greece, Global Focus
  • Author: Charles Ray
  • Publication Date: 08-2020
  • Content Type: Commentary and Analysis
  • Institution: American Diplomacy
  • Abstract: The issue of militarization of American foreign policy is one that has simmered for decades. The American preference for employment of economic pressure and/or military force as a ‘quick-fix’ to deal with international problems instead of a more nuanced diplomatic approach is not a phenomenon of the 20th or 21st century. The increased militarization of U.S. foreign policy of the last decade is a continuation of a trend that has existed in one form or another for most of the nation’s history. The over-reliance on military power in foreign affairs, the militarization of U.S. foreign policy, dramatically increased with the dissolution of the Soviet Union and the end of the Cold War, and the 9/11 terrorist attacks. However, almost from the beginning of the founding of the republic, under pressure from business interests concerned with maintaining or increasing their prosperity or groups interested in maintaining their positions of influence or power, American political leaders have often resorted to use of force for a short-term solution.
  • Topic: Foreign Policy, Diplomacy, International Affairs, History, Militarization
  • Political Geography: Global Focus, United States of America
  • Author: Trevon Logan, Peter Temin
  • Publication Date: 01-2020
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: This paper records the path by which African Americans were transformed from enslaved persons in the American economy to partial participants in the progress of the economy. The path was not monotonic, and we organize our tale by periods in which inclusiveness rose and fell. The history we recount demonstrates the staying power of the myth of black inferiority held by a changing white majority as the economy expanded dramatically. Slavery was outlawed after the Civil War, and blacks began to participate in American politics en masse for the first time during Reconstruction. This process met with white resistance, and black inclusion in the growing economy fell as the Gilded Age followed and white political will for black political participation faded. The Second World War also was followed by prosperity in which blacks were included more fully into the white economy, but still not completely. The Civil Rights Movement proved no more durable than Reconstruction, and blacks lost ground as the 20th century ended in the growth of a New Gilded Age. Resources that could be used to improve the welfare of whites and blacks continue to be spent on the continued repressions of blacks.
  • Topic: Economics, Race, History, Capitalism, Slavery
  • Political Geography: United States, Global Focus