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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: Isabella M. Pesavento
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: Adoption, particularly adoption out of foster care, has not been well studied within the field of economics. Researchers may avoid this topic because the adoption market greatly deviates from a typical market, and the system and data collection are highly fragmented, with relatively little federal coordination. Rubin et al. (2007) and Thornberry et al. (1999) show that instability in foster care placements produces negative welfare outcomes, and Hansen (2006), Barth et al. (2006), and Zill (2011) demonstrate that adoption out of foster care is socially and financially beneficial. Yet, children waiting to be adopted out of foster care are in excess supply, which has been exacerbated in recent years. I hypothesize that this is, in part, due to misaligned incentives of government officials and the contracted foster care agencies. I show that earnings are prioritized over ensuring permanent child placement, which hinders the potential for adoption, and government oversight fails to correct such iniquities because of career interests.
  • Topic: Economics, Government, Markets, Children, Incentives, Foster Care, Adoption
  • Political Geography: North America, United States of America
  • Author: Tanner Corley, Marcus M. Witcher
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: In Arkansas, the barber profession has been regulated and licensed for more than 80 years, and until recently, the issue was mostly absent from the political debate. During a regular session of Arkansas’s 92nd General Assembly in 2019, however, state Sen. John Cooper presented a bill to “repeal the [1937] Arkansas Barber Law” and to “abolish the State Board of Barber Examiners” (Briggs 2019). The average Arkansan probably was not aware of the bill, but occupational licensing reformers saw this as a great opportunity for Arkansas to pave the way for other states to reform their own license laws. If Cooper’s bill had passed, Arkansas’s economy would have likely benefited (Timmons and Thornton 2010, 2018). By removing restrictive requirements to becoming a barber, the bill would have allowed more Arkansans to enter the profession. This reform would have ­provided people with more economic opportunities, increased competition, and benefited consumers.
  • Topic: Regulation, Business , Public Health, Licensing
  • Political Geography: North America, United States of America
  • Author: Scott Lincicome
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: Labor market and cultural disruptions in the United States are real and important, as is China’s current and unfortunate turn toward illiberalism and empire. But pretending today that there was a better trade policy choice in 2000—when Congress granted China “permanent normal trade relations” (PNTR) status and paved the way for broader engagement—is misguided. It assumes too much, ignores too much, and demands too much. Worse, it could lead to truly bad governance: increasing U.S. protectionism; forgiving the real and important failures of our policymakers, CEOs, and unions over the last two decades; and preventing a political consensus for real policy solutions. Indeed, that is happening now.
  • Topic: International Relations, Economics, Markets, Bilateral Relations, Trade, Protectionism
  • Political Geography: China, Asia, North America, United States of America
  • Author: John A. Allison
  • Publication Date: 06-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: The Covid‐​19 pandemic greatly increased the scope and power of the Federal Reserve. The Fed created a number of new emergency lending facilities, which allowed it to make off‐​balance sheet loans and buy the debt of corporations and municipalities through special purpose vehicles backstopped by the Treasury under the CARES Act. Meanwhile, the Fed’s large‐​scale asset purchase program, known as quantitative easing (QE), was put on steroids after the pandemic struck in March 2020. The Fed has been purchasing longer‐​term Treasuries and mortgage‐​backed securities amounting to $120 billion per month, pushing the size of its balance sheet to an astonishing $7 trillion.
  • Topic: Economics, Monetary Policy, Federal Reserve, Pandemic, COVID-19
  • Political Geography: North America, United States of America
  • Author: Michael J. Casey
  • Publication Date: 06-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: For all the upheaval of 2020, it’s perhaps not surprising that the 50‐​year anniversary of a major piece of financial legislation came and went with little fanfare. But the 1970 U.S. Bank Secrecy Act (BSA) deserves much scrutiny.1 In mandating that financial institutions maintain customer identity records and report illicit activity to government agencies, the BSA was a landmark statute by any measure. It paved the way to an ever‐​expanding system of international surveillance that’s a cornerstone of U.S. economic power.
  • Topic: Economics, Government, Finance, Surveillance
  • Political Geography: North America, United States of America
  • Author: Caitlin Long
  • Publication Date: 06-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: Stablecoins are financial obligations issued on a blockchain. They are generally fully collateralized with either fiat currency deposits at a bank, or with short‐​term government bonds held at a custodian. They’re issued only by nonbanks, although FINMA in Switzerland does allow Swiss banks to issue Swiss franc–denominated stablecoins. Usually stablecoins do not pay interest, and they are designed to trade at par with the fiat currency. Because they are issued on a blockchain, they usually settle in minutes, with irreversibility, and — critically — they are “programmable,” which means users can build their own software applications to interact with them.
  • Topic: Monetary Policy, Banks, Digital Currency
  • Political Geography: Global Focus, United States of America
  • Author: Jeb Hensarling, Phil Gramm, John B. Taylor
  • Publication Date: 06-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: The Fed’s huge balance sheet allows it to engage in credit policy (the composition of the balance sheet is by definition credit policy), which inherently auto‐​resides in fiscal policy — but should auto‐​reside with Congress. This discussion, moderated by John B. Taylor, took place at the Cato Institute’s 38th Annual Monetary Conference on November 19, 2020. The transcript has been edited for publication.
  • Topic: Economics, Monetary Policy, Federal Reserve, Credit
  • Political Geography: North America, United States of America
  • Author: A. Trevor Thrall, Erik Goepner
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: The Cato Institute
  • Abstract: Observers of American foreign policy have been worried for years about eroding public support for international engagement, especially in light of increasing public discontent after nearly two decades of military conflict since 9/11. Low support for international engagement and military intervention among younger Americans, in particular, has led some to worry that the age of American internationalism has passed. There is little agreement, however, about how serious the erosion of public support is and what its causes are. Relying on an analysis of seven decades of polling data, we argue that generational effects have slowly reshaped patterns of American foreign policy preferences. Since World War II, Americans have come of age during periods increasingly less conducive to support of military intervention, leading them to adopt worldviews increasingly at odds with those carried by older Americans. As a result, the United States is undergoing a slow motion changing of the guard, as older and more hawkish Americans die and are replaced by younger, less hawkish ones. These findings have important implications for the debate about the state of public support for American leadership of the liberal international order and the evolution of American foreign policy.
  • Topic: Foreign Policy, Engagement , International Order, Generation
  • Political Geography: North America, United States of America
  • Author: Scott Lincicome, Huan Zhu
  • Publication Date: 06-2021
  • Content Type: Working Paper
  • Institution: The Cato Institute
  • Abstract: In the wake of the COVID-19 pandemic and rising U.S.-China tensions, American policymakers have again embraced “industrial policy.” Both President Biden and his predecessor, as well as legislators from both parties, have advocated a range of federal support for American manufacturers to fix perceived weaknesses in the U.S. economy and to counter China’s growing economic clout. These and other industrial policy advocates, however, routinely leave unanswered important questions about U.S. industrial policy’s efficacy and necessity: What is “Industrial Policy”? Advocates of “industrial policy” often fail to define the term, thus permitting them to ignore past failures and embrace false successes while preventing a legitimate assessment of industrial policies’ costs and benefits. Yet U.S. industrial policy’s history of debate and implementation establishes several requisite elements – elements that reveal most “industrial policy successes” not to be “industrial policy” at all. What are the common obstacles to effective U.S. industrial policy? Several obstacles have prevented U.S. industrial policies from generating better outcomes than the market. This includes legislators’ and bureaucrats’ inability to “pick winners” and efficiently allocate public resources (Hayek’s “Knowledge Problem”); factors inherent in the U.S. political system (Public Choice Theory); lack of discipline regarding scope, duration, and budgetary costs; interaction with other government policies that distort the market at issue; and substantial unseen costs. What “problem” will industrial policy solve? The most common problems purportedly solved by industrial policy proposals are less serious than advocates claim or unfixable via industrial policy. This includes allegations of widespread U.S. “deindustrialization” and a broader decline in American innovation; the disappearance of “good jobs”; the erosion of middle‐​class living standards; and the destruction of American communities. Do other countries’ industrial policies demand U.S. industrial policy? The experiences of other countries generally cannot justify U.S. industrial policy because countries have different economic and political systems. Regardless, industrial policy successes abroad – for example, in Japan, Korea and Taiwan – are exaggerated. Also, China’s economic growth and industrial policies do not justify similar U.S. policies, considering the market‐​based reasons for China’s rise, the Chinese policies’ immense costs, and the systemic challenges that could derail China’s future growth and geopolitical influence. These answers argue strongly against a new U.S. embrace of industrial policy. The United States undoubtedly faces economic and geopolitical challenges, including ones related to China, but the solution lies not in copying China’s top‐​down economic planning. Reality, in fact, argues much the opposite.
  • Topic: Government, Industrial Policy, Manufacturing, COVID-19
  • Political Geography: China, Asia, North America, United States of America
  • Author: Scott Lincicome
  • Publication Date: 01-2021
  • Content Type: Commentary and Analysis
  • Institution: The Cato Institute
  • Abstract: Both the American left and right often use “national security” to justify sweeping proposals for new U.S. protectionism and industrial policy. “Free markets” and a lack of government support for the manufacturing sector are alleged to have crippled the U.S. defense industrial base’s ability to supply “essential” goods during war or other emergencies, thus imperiling national security and demanding a fundamental rethink of U.S. trade and manufacturing policy. The COVID-19 crisis and U.S.-China tensions have amplified these claims. This resurgent “security nationalism,” however, extends far beyond the limited theoretical scenarios in which national security might justify government action, and it suffers from several flaws. First, reports of the demise of the U.S. manufacturing sector are exaggerated. Although U.S. manufacturing sector employment and share of national economic output (gross domestic product) have declined, these data are mostly irrelevant to national security and reflect macroeconomic trends affecting many other countries. By contrast, the most relevant data—on the U.S. manufacturing sector’s output, exports, financial performance, and investment—show that the nation’s total productive capacity and most of the industries typically associated with “national security” are still expanding. Second, “security nationalism” assumes a need for broad and novel U.S. government interventions while ignoring the targeted federal policies intended to support the defense industrial base. In fact, many U.S. laws already authorize the federal government to support or protect discrete U.S. industries on national security grounds. Third, several of these laws and policies provide a cautionary tale regarding the inefficacy of certain core “security nationalist” priorities. Case studies of past government support for steel, shipbuilding, semiconductors, and machine tools show that security‐​related protectionism and industrial policy in the United States often undermines national security. Fourth, although the United States is not nearly as open (and thus allegedly “vulnerable”) to external shocks as claimed, global integration and trade openness often bolster U.S. national security by encouraging peace among trading nations or mitigating the impact of domestic shocks. Together, these points rebut the most common claims in support of “security nationalism” and show why skepticism of such initiatives is necessary when national security is involved. They also reveal market‐​oriented trade, immigration, tax, and regulatory policies that would generally benefit the U.S. economy while also supporting the defense industrial base and national security.
  • Topic: Defense Policy, National Security, COVID-19, Free Market, Deindustrialization
  • Political Geography: China, North America, United States of America
  • Author: Alex Nowrasteh
  • Publication Date: 02-2021
  • Content Type: Commentary and Analysis
  • Institution: The Cato Institute
  • Abstract: A cost‐​benefit analysis finds that the hazards posed by foreign‐​born spies are not large enough to warrant broad and costly actions such as a ban on travel and immigration from China, but they do warrant the continued exclusion of potential spies under current laws. Espionage poses a threat to national security and the private property rights of Americans. The government should address the threat of espionage in a manner whereby the benefits of government actions taken to reduce it outweigh the costs of those actions. To aid in that goal, this policy analysis presents the first combined database of all identified spies who targeted both the U.S. government and private organizations on U.S. soil. This analysis identifies 1,485 spies on American soil who, from 1990 through the end of 2019, conducted state or commercial espionage. Of those, 890 were foreign‐​born, 583 were native‐​born Americans, and 12 had unknown origins. The scale and scope of espionage have major implications for immigration policy, as a disproportionate number of the identified spies were foreign‐​born. Native‐​born Americans accounted for 39.3 percent of all spies, foreign‐​born spies accounted for 59.9 percent, and spies of unknown origins accounted for 0.8 percent. Spies who were born in China, Mexico, Iran, Taiwan, and Russia account for 34.7 percent of all spies. The chance that a native‐​born American committed espionage or an espionage‐​related crime and was identified was about 1 in 13.1 million per year from 1990 to 2019. The annual chance that a foreign‐​born person in the United States committed an espionage‐​related crime and was discovered doing so was about 1 in 2.2 million during that time. The government was the victim in 83.3 percent of espionage cases, firms were the victims of commercial espionage in 16.3 percent of the cases, and hospitals and universities were the victims of espionage in 0.1 percent and 0.3 percent of the cases, respectively. The federal government should continue to exclude foreign‐​born individuals from entering the United States if they pose a threat to the national security and private property rights of Americans through espionage. A cost‐​benefit analysis finds that the hazards posed by foreign‐​born spies are not large enough to warrant broad and costly actions such as a ban on travel and immigration from China, but they do warrant the continued exclusion of potential spies under current laws.
  • Topic: Crime, Immigration, Risk, Espionage
  • Political Geography: North America, United States of America
  • Author: Scott Lincicome, Inu Manak
  • Publication Date: 03-2021
  • Content Type: Commentary and Analysis
  • Institution: The Cato Institute
  • Abstract: With several Section 232 tariffs still in place, and the status of other investigations unclear, the law presents an early test for the Biden administration and a signal about its future trade policy plans. President Biden took office at the height of modern American protectionism. The trade policy legacy he inherited from the Trump administration puts the United States at a crossroads. Will Biden go down the problematic path of executive overreach like his predecessor, or will he forge a new path? We may not need to wait long to find out. In his first trade action, President Biden reinstated tariffs on aluminum from the United Arab Emirates under Section 232 of the Trade Expansion Act of 1962, which authorizes the president to impose tariffs when a certain product is “being imported into the United States in such quantities or under such circumstances as to threaten to impair national security.” Though infrequently used in the past, Section 232 was a favored trade tool of the Trump administration, which was responsible for nearly a quarter of all Section 232 investigations initiated since 1962. While Congress has constitutional authority over trade policy, Section 232 gives the president broad discretion to enact protectionist measures in the name of national security. Why is this law a problem? First, the statute’s lack of an objective definition of “national security” permits essentially anything to be considered a threat, regardless of the merits. Second, the law’s lack of detailed procedural requirements encouraged the Trump administration to cut corners in applying the law, thus breeding cronyism and confusion. Third, President Trump took advantage of the law’s ambiguity to shield key Section 232 findings from Congress and the public, undermining both transparency and accountability. The Trump administration’s abuse of the rarely used Section 232 has allowed the statute to become an excuse for blatant commercial protectionism, harming American companies and consumers and our security interests. It’s unclear whether the Biden administration will continue this troubling trend or seek reform. The best course of action would be the latter: Biden should avoid using Section 232 and support congressional efforts to rein in presidential power, thus ensuring an end to the calamitous episodes that were common during the Trump era.
  • Topic: National Security, Trade Policy, Protectionism
  • Political Geography: North America, United States of America
  • Author: Neal McCluskey
  • Publication Date: 04-2021
  • Content Type: Commentary and Analysis
  • Institution: The Cato Institute
  • Abstract: In one year, COVID-19 contributed to the permanent closure of at least 132 mainly low‐​cost private schools. But that was better than some feared. As COVID-19 struck the United States in March 2020, sending the nation into lockdown, worry about the fate of private schools was high. These schools, which only survive if people can pay for them, seemed to face deep trouble. Many private schools have thin financial margins even in good economic times and rely not only on tuition but also on fundraisers, such as in‐​person auctions, to make ends meet. When the pandemic hit, many such events were canceled, and churches no longer met in person, threatening contributions that help support some private schools. Simultaneously, many private schooling families faced tighter finances, making private schooling less affordable. Finally, families that could still afford private schooling might have concluded that continuing to pay for education that was going to be online‐​only made little sense.
  • Topic: Education, COVID-19, Private Schools
  • Political Geography: North America, United States of America
  • Author: John Mueller
  • Publication Date: 05-2021
  • Content Type: Commentary and Analysis
  • Institution: The Cato Institute
  • Abstract: China, even if it rises, does not present much of a security threat to the United States. Policymakers increasingly view China’s rapidly growing wealth as a threat. China currently ranks second, or perhaps even first, in the world in gross domestic product (although 78th in per capita GDP), and the fear is that China will acquire military prowess commensurate with its wealth and feel impelled to carry out undesirable military adventures. However, even if it continues to rise, China does not present much of a security threat to the United States. China does not harbor Hitler‐​style ambitions of extensive conquest, and the Chinese government depends on the world economy for development and the consequent acquiescence of the Chinese people. Armed conflict would be extremely—even overwhelmingly—costly to the country and, in particular, to the regime in charge. Indeed, there is a danger of making China into a threat by treating it as such and by engaging in so‐​called balancing efforts against it. Rather than rising to anything that could be conceived to be “dominance,” China could decline into substantial economic stagnation. It faces many problems, including endemic (and perhaps intractable) corruption, environmental devastation, slowing growth, a rapidly aging population, enormous overproduction, increasing debt, and restive minorities in its west and in Hong Kong. At a time when it should be liberalizing its economy, Xi Jinping’s China increasingly restricts speech and privileges control by the antiquated and kleptocratic Communist Party over economic growth. And entrenched elites are well placed to block reform. That said, China’s standard of living is now the highest in its history, and it’s very easy to envision conditions that are a great deal worse than life under a stable, if increasingly authoritarian, kleptocracy. As a result, the Chinese people may be willing to ride with, and ride out, economic stagnation should that come about—although this might be accompanied by increasing dismay and disgruntlement. In either case—rise or demise—there is little the United States or other countries can or should do to affect China’s economically foolish authoritarian drive except to issue declarations of disapproval and to deal more warily. As former ambassador Chas Freeman puts it, “There is no military answer to a grand strategy built on a non‐​violent expansion of commerce and navigation.” And Chinese leaders have plenty of problems to consume their attention. They scarcely need war or foreign military adventurism to enhance the mix. The problem is not so much that China is a threat but that it is deeply insecure. Policies of threat, balance, sanction, boycott, and critique are more likely to reinforce that condition than change it. The alternative is to wait, and to profit from China’s economic size to the degree possible, until someday China feels secure enough to reform itself.
  • Topic: Government, GDP, Geopolitics, Economic Growth
  • Political Geography: China, Asia, United States of America
  • Author: George Perkovich, Pranay Vaddi
  • Publication Date: 01-2021
  • Content Type: Special Report
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Ever since the election of Bill Clinton in 1992, every U.S. presidential administration has published a Nuclear Posture Review (NPR) that explains the rationales behind its nuclear strategy, doctrine, and requested forces. These reviews have helped inform U.S. government personnel, citizens, allies, and adversaries of the country’s intentions and planned capabilities for conducting nuclear deterrence and, if necessary, war. The administration that takes office in January 2021 may or may not conduct a new NPR, but it will assess and update nuclear policies as part of its overall recalibration of national security strategy and policies. Nongovernmental analysts can contribute to sound policymaking by being less constrained than officials often are in exploring the difficulties of achieving nuclear deterrence with prudently tolerable risks. Accordingly, the review envisioned and summarized here explicitly elucidates the dilemmas, uncertainties, and tradeoffs that come with current and possible alternative nuclear policies and forces. In the body of this review, we analyze extant declaratory policy, unclassified employment policy, and plans for offensive and defensive force postures, and then propose changes to several of them. We also will emphasize the need for innovative approaches to arms control.
  • Topic: Foreign Policy, Nuclear Weapons, Hybrid Threats
  • Political Geography: North America, United States of America
  • Author: Rachel Kleinfeld, Thomas Carothers, Steven Feldstein, Richard Youngs
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Middle-power democracies—countries which regardless of their geopolitical weight have made democracy support a sustained component of their foreign policy—will be crucial to reimagining democracy support strategies and policies to better meet the moment. Some of these states have crafted new initiatives and wielded diplomatic tools to deepen their impact in recent years. However, these states have on the whole punched below their collective weight. This paper suggests that middle-power democracies can maximize their impact on global democracy in the following ways: Enhancing solidarity: when a country acts courageously in defense of democracy, it needs to know that others will stand alongside it. Sharpening their focus: middle-power democracies should target policy areas aligned with democratic values on issues both at the top of the geopolitical agenda and at the top-of-mind for citizens around the world—for example, economic recovery, injustice and discrimination, corruption, digital repression, and climate change. Improving diplomatic cooperation: pursuing flexible and focused multilateral partnerships allows for collaboration on key policy interests and amplifies middle-power actions.
  • Topic: Foreign Policy, Diplomacy, Democracy, Solidarity, COVID-19
  • Political Geography: Global Focus, United States of America
  • Author: Sumitra Badrinathan, Devesh Kapur, Milan Vaishnav
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Indian Americans are now the second-largest immigrant group in the United States. Their growing political influence and the role the diaspora plays in Indian foreign policy therefore raises important questions—about how Indian Americans view India, the political changes underway there, and the course of U.S.-India relations. Since coming to power in 2014, Indian Prime Minister Narendra Modi has made outreach to the far-flung Indian diaspora a signature element of his government’s foreign policy. Modi’s courtship of the diaspora has been especially notable in the United States, where the Indian American population has swelled to more than 4 million and has become the second-largest immigrant group in the United States.1 In two separate, large rallies on U.S. soil—in 2014 and 2019—Modi sought to highlight the achievements of the diaspora, outlining the many ways in which they can support India’s interests from afar while underscoring their increasingly substantial economic, political, and social influence in the United States. These high-octane gatherings, however, naturally lead to a series of questions: How do Indians in America regard India, and how do they remain connected to developments there? What are their attitudes toward Indian politics and changes underway in their ancestral homeland? And what role, if any, do they envision for the United States in engaging with India?
  • Topic: Foreign Policy, Bilateral Relations, Immigration, Public Opinion, Survey
  • Political Geography: South Asia, India, North America, United States of America
  • Author: Eugene Rumer, Richard Sokolsky, Paul Stronski
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Russia has big Arctic plans, but how they will be realized is uncertain. For the United States this will likely mean the return to a Cold War–like environment rather than a new chapter in great-power competition in the Arctic. Russia’s Arctic ambitions have attracted increasing attention in the West over the past decade as climate change opens up new opportunities in the region for navigation and exploration of its riches. For its part, Moscow casts a wary eye on what it sees as a challenge from the United States and the North Atlantic Treaty Organization (NATO) to its position and ambitions there. The Kremlin’s rhetoric about Western encroachment has become more strident, in sync with its enhanced military posture and ambitious economic and infrastructure projects.
  • Topic: NATO, Cold War, Infrastructure, Geopolitics, Economy
  • Political Geography: Russia, Eurasia, North America, Arctic, United States of America
  • Author: Zaha Hassan, Daniel Levy, Hallaamal Keir, Marwan Muasher
  • Publication Date: 04-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: A new U.S. approach should prioritize protecting the rights and human security of Palestinians and Israelis over maintaining a peace process and attempting short-term fixes. The authors of this paper identified four overarching areas of focus: (1) prioritize rights and protect people, (2) roll back the Trump administration’s actions and reassert international law, (3) clarify expectations for Palestinians and Israelis, and (4) support new multilateral approaches and accountability.
  • Topic: Security, Diplomacy, Territorial Disputes, Peace
  • Political Geography: Middle East, Israel, Palestine, United States of America
  • Author: Melissa Dalton, Hijab Shah
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The UAE has an opportunity to professionalize the military by building its strategic planning and force development capabilities and by committing to international principles of professional military conduct and greater transparency and accountability. After two decades of concerted investment and operational experience, the United Arab Emirates (UAE) armed forces, dubbed “Little Sparta,” are now one of the leading militaries in the region. With approximately 63,000 active uniformed personnel for a population of 9.9 million (only 1.2 million of which are Emirati), allegedly augmented by foreign auxiliary and mercenary forces, the UAE has gained global attention for its role in countering Iran and violent extremist networks and for interventions in Yemen and Libya. It is one of the United States’ closest military partners in the Middle East. American scholar Kenneth Pollack assesses that, taken as a whole, the UAE’s military is the most capable among the Arab states, while there may be variance across the force.
  • Topic: Security, International Cooperation, Military Affairs, Alliance
  • Political Geography: United Arab Emirates, United States of America, Gulf Nations
  • Author: Alan Yang
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: Alan Yang examines how ordinary U.S. Latinos of different national origin ancestries have become an increasingly cohesive panethnic political group since the time of the 1990 Latino National Political Survey. He argues that this trend towards increasing convergence across national origin has been both reinforced and disrupted on questions related to politically relevant sentiments and perceptions two years into the Trump presidency.
  • Topic: Politics, History, Ethnicity, Political Science, Donald Trump
  • Political Geography: North America, United States of America
  • Author: Peter Liberman
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: By showing that mass vengefulness helps democratic leaders bring their nations to war, this wonderful book significantly advances our understanding of how cultural values affect international politics. Its most important contribution is demonstrating that democracies that retain death penalty laws were significant more likely to initiate the use of force than non-death-penalty democracies in the 1945–2001 period. The finding is robust to a variety of control variables and specifications, although skeptics may wonder whether it might be inflated by ethnocentrism, beliefs about the utility of violence, or other unmeasured potential covariates. Rachel Stein attributes the belligerence of death penalty states to cross-national differences in vengeful cultures, on the grounds that citizens’ vengefulness predicts both cross-sectional support for the death penalty and cross-national differences in the penalty’s retention. Her rigorous analysis greatly strengthens the case that the unusual bellicosity of retributivists, observed by Stein and other researchers, affects actual interstate conflict.
  • Topic: War, Prisons/Penal Systems, Leadership, Book Review, Elites, Capital Punishment
  • Political Geography: Europe, Middle East, United States of America
  • Author: Mark Paul
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: America is in the midst of a housing crisis. For millions of Americans, stable housing is simply out of reach. A full-time worker earning minimum wage cannot afford a two-bedroom apartment in any county in the United States. Twenty-one million households, nearly half of all renters, are rent-burdened, with rent claiming more than a quarter of their income. There are a number of contributing factors to the crisis, including pervasive economic inequality and the lack of rising wages over an entire generation for nonmanagerial workers, but many economists, political scientists, and housing experts point the finger at a lack of housing supply. Specifically, much ink has been spilled over the “not in my back yard” (NIMBY) phenomenon, whereby local residents support more housing in theory, just not in their own neighborhoods. But do local residents really have the power necessary to slow new and denser development in ways that curtail housing supply and contribute to rising house prices? In their timely and important book, Katherine Levine Einstein, David M. Glick, and Maxwell Palmer provide an excellent analysis of the political institutions that empower certain local residents to resist change in their neighborhoods. While the NIMBY sentiment is worthy of consideration regarding the housing crisis, without the right institutions, the movement would not have legs. Neighborhood Defenders provides an in-depth study of how institutions initially designed to democratize local zoning and development decisions have resulted in unintended consequences. Specifically, they document how participatory institutions that could, in theory, keep developers accountable to the people have instead backfired, leading to a shortage of housing supply and a precipitous rise in prices.
  • Topic: Book Review, Political Science, Crisis Management, Housing
  • Political Geography: North America, United States of America
  • Author: Natalie Masuoka
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: Explanations for American voting behavior and attitudes have taken on a curious frame since the election of Barack Obama in 2008, such that there have been growing claims that race is no longer central to American politics. Obama’s election was labeled evidence of a new “post-racial” America. Then, when Donald Trump was elected in 2016, public narratives emphasized the role of social class by pointing to the voting bloc of white, working-class, and rural voters who had helped decide the outcome of the election. Zoltan L. Hajnal’s Dangerously Divided joins an important collection of recent academic work that directly challenges the argument about the reduced role of race in American politics. Hajnal does not sugarcoat his position: “A key aspect of this story is not just that race matters but also that it eclipses the other important dividing lines in American society” (p. 13). Race has always been a core feature of American politics, and it is present even in the constitutional Framers’ debates over the structure of government. The interpretation that recent events indicate a reduced role of race discounts the historical centrality that race has always played in American government. Hajnal offers empirical evidence and an unambiguous argument that race continues to direct most patterns in American politics.
  • Topic: Politics, Race, Elections, Book Review, Political Science, Class
  • Political Geography: North America, United States of America
  • Author: Gary Wasserman
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: Coming to terms with Donald Trump, his causes and consequences, is a lively cottage industry. When packaged as predictions of his political demise by two distinguished scholars, the stakes are raised for the authors and, since this review was written before the electoral reckoning, for the reviewer as well. Perhaps Trump’s reckless disregard for traditional boundaries extends to everyone who touches the subject. Both Thomas E. Patterson and Andrew Hacker should be commended for writing obituaries before the body has actually stopped quivering. Given that both books were completed before the unique year of 2020 had struck with all its terrible unpredictable forces, these writers are brave indeed, especially because they are so self-assured in prophesizing a Republican Party decline (Patterson) and Trump’s immediate electoral demise, taking most of his party with him (Hacker). After all, they wrote when the incumbent president could boast of a roaring stock market and economy as well as unquestioned control of a party with a majority of national offices (presidency, Senate, Judiciary), state legislatures (29), and governors (26).
  • Topic: Book Review, Political Science, Donald Trump, Political Parties
  • Political Geography: North America, United States of America
  • Author: Wendy Gomez
  • Publication Date: 05-2021
  • Content Type: Journal Article
  • Journal: Journal of Public and International Affairs (JPIA)
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: This paper explores the potential of abolishing school resource officers (SROs), their history in education, and their role in exacerbating the effects of the school-to-prison pipeline and racial injustice. In the midst of calls to defund the police, policies to abolish police in schools are a vital first step. This paper argues that there is an interconnected history between SROs and surveilling youth-led civil rights movements. Today, we see the results—SROs have negatively impacted Black and brown youth subjugating them to higher rates of school-related arrests. Using historical case studies of Oakland and Los Angeles, this research draws on the potential to enact policies that end police in schools. Additionally, this paper places organizers as key actors in policy change. The analysis situates the movement to eliminate SROs as an extension of the civil rights struggle and as a microcosm of the modern-day struggle for abolition.
  • Topic: Education, History, Police, Domestic Policy, Black Lives Matter (BLM), Case Study
  • Political Geography: North America, United States of America
  • Author: Lane Burdette
  • Publication Date: 05-2021
  • Content Type: Journal Article
  • Journal: Journal of Public and International Affairs (JPIA)
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: Submarine cables are critical infrastructure that carry nearly all internet traffic. However, unclear international governance does not always guarantee their protection, leaving global information networks vulnerable to sabotage and espionage. China’s access to submarine cables for strategic manipulation is greatly expanded through the Digital Silk Road and territorial claims in the South China Sea, posing a clear threat that requires a U.S. response. Current U.S. policy is uncoordinated and can be sorted into the isolationist, cooperative, competitive, and militaristic responses, which each present unique frameworks for future action. The isolationist response would disconnect the United States from insecure cable networks, limiting China’s influence over U.S. assets but reducing international connectivity. The cooperative response emphasizes international norms-setting processes to achieve multilateral agreements protecting cables from state influences. The competitive response advocates U.S. competition with China in the submarine cable market through alternate assistance programs, which would increase the redundancy of a secure network. Finally, the militaristic response explores the role of America’s military in defending submarine cables from foreign exploitation. This article recommends that future policy emphasize a combination of the competitive and militaristic responses in order to most immediately and effectively address China’s threat to information security along submarine cables while minimizing U.S. risk.
  • Topic: International Relations, Politics, Governance, Military Affairs
  • Political Geography: China, North America, Asia-Pacific, United States of America
  • Author: Melissa Tier
  • Publication Date: 05-2021
  • Content Type: Journal Article
  • Journal: Journal of Public and International Affairs (JPIA)
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: Managing and adapting to flood risk is an increasing concern of policymakers globally, as anthropogenic climate change contributes to sea level rise and the rising intensity and frequency of coastal storms. Moreover, it is critically important that policymakers design and implement equitable adaptation processes that are based in environmental justice principles. In the United States, the primary instrument for flood risk management is the National Flood Insurance Program (NFIP)—but the program already suffers from debt, low participation rates, outdated flood risk assessments, and myriad other structural issues. By integrating several models of policy development, this analysis offers explanations for why NFIP reform attempts of the past decade have repeatedly failed and offers the present moment (in the early months of the Biden Administration and as the pandemic crisis continues) as a potential policy window for realigning reform efforts. Achieving true NFIP reform remains crucial to ensuring that all coastal residents have affordable options for low-risk housing, despite the expected growth in high-risk flood zones.
  • Topic: Climate Change, Environment, Reform, Domestic Policy
  • Political Geography: North America, United States of America
  • Author: Zach Weinberg
  • Publication Date: 05-2021
  • Content Type: Journal Article
  • Journal: Journal of Public and International Affairs (JPIA)
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: Certain features of U.S. export controls fail to reflect the immediate threat from East Asia and the emerging threat from Europe as it relates to the theft of American defense and dual-use technologies. While both the Obama and Trump administrations made a concerted effort to better regulate the commercial sale and shipment of technologies deemed sensitive for reasons of national security, one critical component of the export controls regime—the U.S. Department of Commerce (USDOC) country-specific export control licensing requirements—has yet to be revised to account for European and East Asian industrial espionage. Imposing the most export licensing requirements on average to countries in Europe and East Asia would accurately account for the persistent attempts to illicitly acquire U.S. defense technologies. Instead, countries in the Near East and South and Central Asia are, on average, assigned the most reasons for control listed on the Bureau of Industry and Security (BIS) Commerce Country Chart (CCC)—likely a carry-on objective from the U.S. Global War on Terror (GWOT) when military operations were heavily focused on these regions. Furthermore, BIS imposes a blanket set of export controls on countries throughout Sub-Saharan Africa, failing to recognize the varying risk profiles posed by different African states. These misallocated export controls demonstrate how specific trade barriers fail to move beyond an outdated GWOT mentality and result in over-regulating the Near East, South and Central Asia, and Africa. The following paper proposes the need for a thorough review of the CCC to ensure that it accurately reflects a country’s current risk profile and takes into consideration the consistent industrial espionage threat from East Asia and the emerging threat from Europe. As a result of this type of export control reform, there would be a relaxation of licensing requirements levied on regions that show little interest in illicitly procuring American defense technologies.
  • Topic: Defense Policy, Science and Technology, Exports, Hybrid Threats
  • Political Geography: Europe, East Asia, North America, United States of America
  • Author: Nathan Babb
  • Publication Date: 05-2021
  • Content Type: Working Paper
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: This paper explores the ethnoracial segregation trends of New Orleans, Louisiana between the years 2000, 2010, and 2018. It studies the effect of Hurricane Katrina—which struck in August 2005—on population figures and racial composition within two geographic units of study in Orleans parish: neighborhoods and census tract block groups. Since Hurricane Katrina, White residents have returned in larger numbers than Black residents, and particularly so in neighborhoods that were predominantly Black before the storm. In 2019, New Orleans had 100,000 fewer people than before the storm—nearly the same as the number of Black residents who have not returned. Using a Gibbs-Martin index, which measures racial diversity, the paper finds that decreases in population at the census block group level are associated with racial “diversifying.” This trend invites a conversation on the normative interpretations of racial heterogenization, its causes, and its consequences: who bears the costs of increased “diversity” and what is the historical backdrop it operates under?
  • Topic: Race, Natural Disasters, Governance, Inequality, Domestic Policy, Disaster Management , Segregation
  • Political Geography: North America, United States of America
  • Author: Rachel Lastinger, Sandra Urquiza
  • Publication Date: 03-2021
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Election observers are a crucial mechanism for transparency in the electoral process and can play a key role in electoral reform. In the United States, election observers’ findings can be more efficiently utilized to catalyze needed reform. The Carter Center has observed over 113 elections and supported citizen observer efforts in various countries. Drawing from this international experience, we suggest that US election observers can monitor the electoral process beyond election day, from voter registration to election dispute resolution and have a similar impact on electoral reform and integrity.
  • Topic: Civil Society, Governance, Law, Elections
  • Political Geography: United States of America, North America
  • Author: Anna Borshchevskaya
  • Publication Date: 03-2021
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Moscow is in Syria for the long haul and will continue to undermine American efforts there. In recent months, Moscow intensified its activities in Syria against the backdrop of a changing US administration. The Kremlin sent additional military policy units to eastern Syria, and continued diplomatic engagement through the Astana format, a process that superficially has international backing but in practice excludes the United States and boosts Syrian dictator Bashar al-Assad. Moreover, Moscow also unveiled at its airbase in Syria a statue to the patron saint of the Russian army, Prince Alexander Nevsky. A growing Russian presence in Syria will further hurt Western interests.
  • Topic: Security, Defense Policy, Conflict, Syrian War
  • Political Geography: Russia, Middle East, Syria, United States of America
  • Author: Joshua Fitt
  • Publication Date: 02-2021
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Many of China’s technology companies perfect their products in the domestic market by facilitating the party-state’s oppression and data control, and subsequently seek to export the technology to fledgling authoritarian states or nations with fragile democracies. This is part of Beijing’s strategy to enhance its digital instruments of national power, normalize illiberal uses of technology, and equip foreign governments with the tools to replicate aspects of the CCP’s authoritarian governance model. If Washington wants to blunt this strategy, the US government needs to implement a comprehensive strategy of its own to address this.
  • Topic: Science and Technology, Governance, Law, Authoritarianism, Grand Strategy, Multilateralism
  • Political Geography: China, Asia, North America, United States of America
  • Author: Malcolm Cook
  • Publication Date: 05-2021
  • Content Type: Policy Brief
  • Institution: Lowy Institute for International Policy
  • Abstract: China will not agree to a South China Sea Code of Conduct (COC) that is consistent with the 2016 South China Sea arbitral tribunal ruling, and therefore any COC which China agrees with the Association of Southeast Asian Nations (ASEAN) will harm Australia’s interests. But a lack of Australian support for such a Code would aggravate relations with Southeast Asian states and ASEAN, and with China. Australia should use the time afforded by the drawn-out Code of Conduct negotiations to coordinate with the five littoral Southeast Asian states affected by China’s unlawful maritime claims. Australia should emphasise the need for consistency with international law, especially the 2016 arbitral ruling. The Biden administration is likely to increase pressure on Australia to conduct freedom of navigation operations (FONOPS) in the South China Sea. Such action may risk a significant Chinese response against Australia.
  • Topic: Foreign Policy, Territorial Disputes, Maritime, Alliance, Freedom of Movement
  • Political Geography: China, Australia, Southeast Asia, Asia-Pacific, United States of America, South China Sea
  • Author: Patrick Porter, Michael Mazarr
  • Publication Date: 05-2021
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: There is a growing bipartisan consensus in Washington on a tighter embrace of Taiwan, which may soon become a stronger implied US commitment to go to war in the event of a Chinese invasion. Taiwan matters to US security and the regional order, and the United States should continue to make clear that aggression is unacceptable. But those advocating a stronger US security commitment exaggerate the strategic consequences of a successful Chinese invasion. The stakes are not so high as to warrant an unqualified US pledge to go to war. American decision-makers, like their forebears confronting the seeming threat of communism in Indochina, may be trapping themselves into an unnecessarily stark conception of the consequences of a successful Chinese invasion of Taiwan. It would be irresponsible for the United States to leave itself no option in the event of Chinese aggression other than war. But nor should Washington abandon Taiwan. There is a prudent middle way: the United States should act as armourer, but not guarantor. It should help prepare Taiwan to defend itself, to raise costs against aggression, and develop means of punishing China with non-military tools.
  • Topic: Conflict Prevention, Foreign Policy, Territorial Disputes, Crisis Management
  • Political Geography: China, Taiwan, Asia, United States of America
  • Author: Flavio Fusco
  • Publication Date: 03-2021
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: Located at the heart of the Middle East, connecting the Levant to the Persian Gulf, Iraq has always been at the centre of regional dynamics. Yet, the country is today reduced to a quasi-failed state fundamentally damaged in its political, social and economic fabric, with long-term consequences that trace a fil rouge from the 2003 US-led invasion to the emergence of the self-proclaimed Islamic State (IS) and the country’s current structural fragility.
  • Topic: Security, Foreign Policy, European Union
  • Political Geography: Iraq, Europe, Middle East, United States of America
  • Author: Nathalie Tocci, Riccardo Alcaro, Francesca Caruso, Silvia Colombo, Dario Cristiani, Andrea Dessì, Flavio Fusco, Daniela Huber
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Winds of change are blowing in North Africa and the Middle East. They originate from Washington, where the new Biden administration is expected to abandon its predecessor’s zerosum, erratic approach and take steps towards supporting regional balances and cooperation. Effects are visible especially in the Gulf, with the US pondering its options to re-activate nuclear diplomacy with Iran and Saudi Arabia and the United Arab Emirates grudgingly agreeing to put their feud with Qatar on ice. One way or another, these winds of change are working their way through the Levant, the Eastern Mediterranean and Libya. Admittedly, they are still feeble and can easily fade out like a morning breeze. Were that to happen, Europeans would be amongst the most affected – aside, of course, from regional populations themselves. It is now high time for the EU and its member states to leave the backseat they have (un)comfortably been sitting in for years, seize the opportunity of a cooperative US administration and work to play a more proactive role in North Africa and the Middle East commensurate with their considerable financial, diplomatic and military resources.
  • Topic: Foreign Policy, Diplomacy, Military Affairs, Finance
  • Political Geography: Europe, Middle East, North Africa, United States of America
  • Author: Nicola Bilotta
  • Publication Date: 12-2021
  • Content Type: Special Report
  • Institution: Istituto Affari Internazionali
  • Abstract: The last decade has witnessed a progressive change in what had long been considered global priorities for achieving growth. The global financial crisis of 2007–2008 and the following European sovereign debt crises of 2011–2012 have brought to light important pitfalls in the functioning of globalized financial markets. Trade and financial liberalization policies have at times caused severe strains in some communities, raising concerns over the effects of rapid increases in international integration. Environmental and social risks have come to the forefront of the policy debate. The COVID-19 pandemic has brought enormous challenges to what was the normal way of living. All these events have had far-reaching consequences on the global economy. Currently, the world is facing at least three major shocks that are affecting health (COVID-19), prosperity (the recession) and the planet (climate change). These have been chosen as the three keywords for Italy’s G20 Presidency. These shocks are different in nature and have very diverse effects across countries, regions and municipalities. This calls for differentiated and targeted responses that take into account the specific needs of individual communities.
  • Topic: Climate Change, Infrastructure, G20, Economic Growth, Investment, Integration, COVID-19
  • Political Geography: Europe, India, Vietnam, Philippines, United States of America, Congo
  • Author: Alessandro Marrone, Karolina Muti
  • Publication Date: 04-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Europe’s missile defence is structurally linked to NATO deterrence and defence architecture, and it has to face both a worsened international security environment and an accelerating, worldwide technological innovation. Russia and China are heavily investing in new hypersonic systems which dramatically decrease the time needed to reach the target by flying mostly within the atmosphere. The US remains a global leader in the development and deployment of missile defence capabilities, including the Aegis systems which represent the cornerstone of NATO integrate air and missile defence covering the Old Continent. European countries are increasingly collaborating within the EU framework on the related capability development, primarily via the TWISTER project under the Permanent Structured Cooperation (PeSCo). Being exposed to missile threats from Middle East and North Africa and participating to allied nuclear sharing, Italy has a primary interest in upgrading its military capabilities through PeSCo, maintaining them fully integrated within NATO, and involving the national defence industry in cutting-edge procurement programmes.
  • Topic: Defense Policy, NATO, Science and Technology, European Union
  • Political Geography: United Kingdom, Europe, Turkey, France, Poland, Germany, Italy, North America, United States of America
  • Author: Anahita Motazed Rad
  • Publication Date: 04-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: As the Biden and Rouhani administrations’ position to renew diplomatic efforts on the Iranian nuclear file with European support, they face more challenges than their predecessors did in 2015, when the Iranian nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), was originally signed. Today, domestic, regional and international confrontations have increased; hardliners and conservatives in Tehran and Washington, on the one hand, and in Israel, Saudi Arabia and the United Arab Emirates (UAE) on the other, are now more aligned and coordinated against a diplomatic success than they were in 2015.
  • Topic: Diplomacy, Nuclear Power, Negotiation
  • Political Geography: Iran, Middle East, North America, United States of America
  • Author: Flavio Fusco
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Building on emerging debates on the need to develop de-escalation mechanisms for the Middle East, the Istituto Affari Internazionali (IAI) and the Brussels-based Foundation for European Progressive Studies (FEPS), with support from the Italian Ministry of Foreign Affairs and International Cooperation, launched a one-year research and outreach project entitled “Fostering a New Security Architecture in the Middle East”. Connected to the research, an expert survey targeting European, US, Russian, Middle Eastern and Chinese experts and practitioners was conducted on key themes, principles and approaches associated with a potential new security architecture for the region. The results of the survey – first published in an edited book volume jointly published by IAI and FEPS in November 2020 – are analysed below, complete with tables and infographics on key themes associated with the research project and the search for new, inclusive mechanisms for dialogue and de-escalation in the Middle East.
  • Topic: Conflict Prevention, Security, Foreign Policy, Politics
  • Political Geography: Russia, China, Europe, Middle East, United States of America
  • Author: Alessandro Marrone, Ester Sabatino
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: In 2016 NATO recognised cyber as a domain comparable to the air, land and sea ones, in consideration of the growing number of cyberattacks and of their negative impact on the cyberspace, as well as on the “real world”. Both NATO and its member states have launched initiatives to better tackle the cyber challenge both operationally and in terms of capability development. Nevertheless, among major NATO’s members a common approach to cyber defence is still missing, thus generating a division among countries that pursue a more active defence – US, UK and France – and those that prefer a more defensive approach – Germany and Spain.
  • Topic: Defense Policy, NATO, National Security, Cybersecurity
  • Political Geography: United Kingdom, Europe, France, Germany, Spain, United States of America
  • Author: Lucía Ramírez Bolívar
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The incoming Biden-Harris administration has been welcomed by great expectations of impending changes in US policy after four years of the Trump presidency. Out of a wide range of issues, US foreign policy towards Latin America and the Caribbean is one domain where a shift in approach may be expected from the new administration.
  • Topic: Foreign Policy, Oil, Sanctions, Joe Biden
  • Political Geography: South America, Venezuela, North America, United States of America
  • Author: Amer Al-Hussein
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The Syrian conflict entered its eleventh year on 15 March 2021, bringing this “living nightmare” back to our minds.[1] This ominous anniversary should remind the world of the importance of addressing the bleak reality inside Syria. While the new US administration provides a glimmer of hope for a return to diplomacy, multilateralism and an end to the mercantilism of the past years, Europe would be wrong to simply wait for the US lead on Syria.
  • Topic: Foreign Policy, Politics, Sanctions, European Union, Institutions, Coronavirus
  • Political Geography: Middle East, Syria, United States of America, Mediterranean
  • Author: Chad P. Bown
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: The Trump administration changed US trade policy toward China in ways that will take years for researchers to sort out. This paper makes four specific contributions to that research agenda. First, it carefully marks the timing, definitions, and scale of the products subject to the tariff changes affecting US-China trade from January 20, 2017 through January 20, 2021. One result is that each country increased its average duty on imports from the other to rates of roughly 20 percent, with the new tariffs and counter-tariffs covering more than 50 percent of bilateral trade. Second, the paper highlights two additional channels through which bilateral tariffs changed during this period: product exclusions from tariffs and trade remedy policies of antidumping and countervailing duties. These two channels have received less research attention. Third, it explores why China fell more than 40 percent short of meeting the goods purchase commitments set out for 2020, the first year of the phase one agreement. Finally, the paper considers additional trade policy actions—involving forced labor, export controls for reasons of national security or human rights, and reclassification of trade with Hong Kong—likely to affect US-China trade beyond the Trump administration.
  • Topic: Education, Trade Wars, Trade Policy, Protectionism
  • Political Geography: China, Asia, North America, United States of America
  • Author: Marcus Noland, Eva (Yiwen) Zhang
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: By Election Day 2020, the COVID-19 pandemic had killed 234,244 Americans and caused the sharpest macroeconomic downturn in US history. Hypothetical calculations using county-level electoral data show that in a “no pandemic” scenario or a scenario in which the severity of the pandemic was mitigated by 30 percent, Donald Trump would have lost the popular vote but won the electoral vote. In the 20 percent mitigation scenario, the electoral vote would have been tied, giving Trump a presumptive victory in the House of Representatives. For the second time in a row (and the third time since 2000), the candidate who lost the popular vote would have been elected president of the United States.
  • Topic: Government, Politics, Elections, Donald Trump, COVID-19
  • Political Geography: North America, United States of America
  • Author: Jason Furman, Melissa Kearney, Wilson Powell III
  • Publication Date: 06-2021
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This working paper examines how much of the overall decline in employment between the beginning of 2020 and 2021 can be explained by excess job loss among parents of young children, and mothers specifically. Using data from the Current Population Survey (CPS), the authors confirm that, in general, mothers with young children have experienced a larger decline in employment, as compared (unconditionally) with other adults, including fathers. This excess job loss is driven by mothers without a four-year college degree. The main point of the paper is to build off this observation and examine how much of the aggregate employment deficit in early 2021 can be explained by parent-specific issues, such as childcare struggles. To examine this question, the authors construct counterfactual employment rates and labor force participation rates that assign to mothers of young children the percent change in employment and labor force participation rates experienced by comparable women without young children. The paper considers multiple definition, sample, and counterfactual specification alternatives. The analysis yields robust evidence that differential job loss among mothers of young children accounts for a negligible share of the ongoing aggregate employment deficit. The result is even stronger (and flips signs) if all parents are considered, since fathers with young children experienced less job loss than other men. The practical implication of these findings is that nearly all of the aggregate ongoing employment deficit is explained by factors that affect workers more broadly, as opposed to challenges specific to working parents.
  • Topic: Labor Issues, Children, Pandemic, COVID-19, Childcare
  • Political Geography: North America, United States of America
  • Author: Anna Stansbury
  • Publication Date: 06-2021
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: To what extent do US firms have an incentive to comply with the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA)? Stansbury examines this question through a simple comparison of the expected costs of noncompliance (in terms of legal sanctions) to the profits firms can earn through noncompliance. In the case of the FLSA minimum wage and overtime provisions, typical willful violators are required to pay back wages owed and in some cases additional penalties, if detected by the Department of Labor (DOL). Based on available data on the penalties levied, a typical firm would need to expect a chance of at least 78-88 percent that its violation would be detected in order to have an incentive to comply with the FLSA. In practice, the probability of detection many firms can expect to face is likely much lower than this. In the case of the NLRA, a firm that fires a worker illegally is required to reinstate the worker with back pay if the violation is detected. Based on empirical estimates of the effect of unionization on firm profits, a typical firm may have an incentive to fire a worker illegally for union activities if this illegal firing would reduce the likelihood of unionization at the firm by as little as 0.15-2 percent. These analyses illustrate that neither the FLSA nor the NLRA penalty and enforcement regimes create sufficient incentive to comply for many firms. In this context, the substantial evidence of minimum wage and overtime violations, and of illegal employer behavior toward unions, is not surprising.
  • Topic: Labor Issues, Regulation, Economy
  • Political Geography: North America, United States of America
  • Author: Jeffrey J. Schott
  • Publication Date: 01-2021
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: China’s policies in Xinjiang, Hong Kong, and the South China Sea and its ongoing support for Iran, North Korea, and Venezuela pose major challenges for the United States, where bipartisan pressure is growing to ramp up punitive sanctions against leading Chinese firms and financial institutions. Financial sanctions freeze the US assets or bar US entry of the targeted individuals and firms and prohibit US financial firms from doing business with them. Schott explains why US officials should carefully weigh the risks to international financial markets and US economic interests before imposing punitive sanctions on major financial institutions engaged with China. The collateral costs of such sanctions would be sizable, damaging US producers, financial institutions, and US alliances. By restricting access of major banks to international payments in US dollars and barring use of messaging systems like SWIFT, tougher US financial sanctions would effectively “weaponize” the dollar; friends and foes alike would be pushed to seek alternatives to dollar transactions that, over time, would weaken the international role of the dollar. Instead of doubling down on current unilateral financial sanctions, US policy should deploy sanctions in collaboration with allies and calibrate trade and financial controls to match the expected policy achievements.
  • Topic: Human Rights, Sanctions, Finance, Economy
  • Political Geography: China, Asia, North America, United States of America