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  • Author: Zainab Usman, David Landry
  • Publication Date: 04-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Many African countries have placed economic diversification high on the policy agenda, yet they first need to define what it means in their specific structural and socioeconomic contexts. For decades, economic diversification has been a policy priority for low- and middle-income economies. In the words of former managing director of the International Monetary Fund (IMF), Christine Lagarde, “We know that economic diversification is good for growth. Diversification is also tremendously important for resilience.” Unfortunately, this goal continues to elude many African countries. In fact, the continent is home to eight of the world’s fifteen least economically diversified countries. This reality weakens the foundation of their economic transfomation and slows their pace of progress. It also makes these countries particularly vulnerable to sudden external shocks, as the pandemic-induced disruption of tourism and oil-dependent economies has illustrated. Given the importance of diversifying African economies, it is critical to recognize how various dimensions of diversification can have different implications for the menu of policy options. Closely associated with the process of structural transformation from lower to higher productivity sectors, economic diversification has three evident dimensions. The first relates to the expansion of economic sectors that contribute to employment and production or gross domestic product (GDP) diversification, and the second is associated with international trade or exports diversification. This paper, however, focuses on a third dimension that the economics literature pays scant attention to: fiscal diversification. This fiscal element involves expanding government revenue sources and public expenditure targets and can therefore play a central role in helping to catalyze broader economic transformation through the expansion of activity in specific industries and sectors. It is also critical that policymakers effectively measure the extent to which this objective is being achieved. Both the expansion of existing economic sectors and the creation of new ones may diversify an economy. But these processes are vastly different in practice and will garner distinct outcomes. Of the main tools used by economists to measure diversification, the Theil Index differentiates between the respective contributions of new economic sectors and existing ones to overall diversification. Another tool widely used by development practitioners—the Public Expenditure and Financial Accountability (PEFA) framework—has significant potential for evaluating fiscal diversification but would need to capture more information on government revenue collection and spending and link them to policy objectives.
  • Topic: Economics, Governance, Diversification, Trade
  • Political Geography: Africa
  • Author: Vijay Singh Chauhan, Sruti Vijayakumar
  • Publication Date: 05-2021
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The World Trade Organization’s Trade Facilitation Agreement has placed trade facilitation initiatives high on the agenda of international governments. This case study of India studies what trade facilitation may mean for a fast-paced economy. In this paper the authors use the trigger presented by the World Trade Organization’s (WTO’s) Trade Facilitation Agreement (TFA) to undertake a comprehensive review of various publicly available studies for India relating to performance measurement of the ecosystem that handles the cross-border movement of goods, focusing on the period since 2015. The paper summarizes the results of six key composite performance indicators—namely, (1) the Organisation for Economic Co-operation and Development’s (OECD’s) trade facilitation indicators (TFIs); (2) the World Bank’s Ease of Doing Business (EODB) Index; (3) the World Bank’s Logistics Performance Index (LPI); (4) the World Economic Forum’s (WEF’s) Global Competitiveness Index (GCI); (5) the World Bank’s World Governance Indicators (WGIs); and (6) the United Nations’ Global Survey on Trade Facilitation and Paperless Trade Implementation (GSTF-PTI). This paper, by examining these composite survey-based indicators and the intertemporal trends they exhibit for India, reveals that they have not been moving in agreement with each other and that some of the trends are evidently counterintuitive. A comparison between delineated subindicators of select composite indicators sometimes indicates surprising trends. Import cargo release times (a performance measurement prescribed by the TFA) for the largest containerized port in the country, the Jawaharlal Nehru Port Trust (JNPT), have been extracted from various studies that have relied on the data from the customs automation system; the container tracking system, which employs radio-frequency identification (RFID); and survey-based studies, including the Trading Across Borders (TAB) component of the World Bank’s EODB Index. These import cargo release time studies present a consistent trend of improvement since 2017. The paper, therefore, highlights the greater robustness of cargo release time trends, based particularly on technology-enabled data-driven studies as a more meaningful metric for measurement of performance of border management agencies and practices vis-à-vis survey or perception-based indicators representing “enablers” of trade facilitation.
  • Topic: Economics, Trade, WTO
  • Political Geography: South Asia, India
  • Author: Mehdi Lahlou
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The coronavirus pandemic has turned into a global economic crisis with severe social effects in the least developed countries, particularly in Africa. Pre-existing challenges related to widespread poverty, demographic growth, food insecurity and governance issues have been exacerbated by the pandemic. While migration remains one of the key elements of the partnership agenda between Africa and the European Union, the aggravating socioeconomic situation in the African continent due to the impact of COVID-19 and its implications for migration dynamics requires going beyond business-as-usual approaches. The renewed scenario calls for a more comprehensive and development-oriented approach to migration, requiring new policy initiatives addressing the wider set of conditions that, beyond constituting developmental challenges in their own right, also drive migration in North Africa as well as in Sub-Saharan African countries.
  • Topic: Economics, Migration, European Union, Mobility, Asylum, COVID-19
  • Political Geography: Africa, Europe, North Africa
  • Author: Luke Patey, Elizabeth Wishnick
  • Publication Date: 03-2021
  • Content Type: Video
  • Institution: Weatherhead East Asian Institute, Columbia University
  • Abstract: From its Belt and Road Initiative linking Asia and Europe, to its "Made in China 2025" strategy to dominate high-tech industries, to its significant economic reach into Africa and Latin America, China is rapidly expanding its influence around the globe. Many fear that China's economic clout, tech innovations, and military power will allow it to remake the world in its own authoritarian image. But despite all these strengths, a future with China in charge is far from certain. Rich and poor, big and small, countries around the world are recognizing that engaging China produces new strategic vulnerabilities to their independence and competitiveness. Researching the book took Dr. Patey to East Africa, Latin America, Europe, and East Asia over the past five years and he will discuss how countries in these parts of the world are responding to China’s rise and assertiveness. This event was cosponsored by the Weatherhead East Asian Institute, the APEC Study Center and the Columbia Harvard China and the World Program at Columbia University.
  • Topic: Diplomacy, Economics, Geopolitics, Soft Power, Belt and Road Initiative (BRI)
  • Political Geography: China, Asia
  • Author: Bayram Gungor
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: The Rest: Journal of Politics and Development
  • Institution: Centre for Strategic Research and Analysis (CESRAN)
  • Abstract: The relationship among the FDI, GDP and Export has gained vast attention among the researchers and policy-makers. There are many studies on the interaction of these variables using various econometric approaches in the literature. However, it has seen that the findings have been different from country by country. Therefore, this study's main problematic is to estimate the coefficients that show the interaction among the FDI, GDP and Export covering 1980-2019 in Turkey. The ARDL Bounds Model and Granger Causality approach were selected to measure the coefficients statistically. Three models were executed to calculate the short-run and long-run coefficients. While the Model 1 and Model 3 were found statistically significant to explain the dependent variables, the Model 2 was found statistically insignificant. Because of this, the Model 2 was excluded from the study. The short- run coefficients were also found statistically significant to explain the dependent variables of the Model 1 and Model 3. While GDP affects the FDI positively in Model 1, GDP affects the Export negatively in Model 2. The ECT was found statistically significant at 0.01. The speeds of adjustment of the Model 1 and Model 3 were calculated as approximately 93% and 16% levels, respectively. Unlike the ARDL Bounds Model, the Granger Causality test was implemented to measure the variables' causal relationship. It was seen that there is only a unidirectional Granger causal relationship running from GDP to FDI in the Model 1 and from GDP to Export in the Model 2.
  • Topic: Economics, Foreign Direct Investment, GDP, Exports
  • Political Geography: Europe, Turkey, Asia
  • Author: Katrin Klöble
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: German Development Institute (DIE)
  • Abstract: This paper addresses the self-selection of potential migrants. In particular, the study examines whether risk and time preferences explain a significant proportion in the movement heterogeneity of individuals. It is further intended to shed light on the role of social preferences (trust, altruism, reciprocity) as potential migratory determinants. By making use of a unique cross-sectional data set on migration intentions (Gallup World Poll) and experimentally-validated preferences (the Global Preference Survey) covering 70 countries worldwide, a probit model is estimated. The empirical results provide evidence that potential migrants exhibit higher levels of risk-taking and patience than their counterparts who stay at home (the stayers). This holds true across differing countries with various cultural backgrounds and income levels. Trust and negative reciprocity are found to be significantly related to migration aspirations as well. Yet conclusive clarifications still remain necessary, providing impetuses for future research.
  • Topic: Economics, Migration, Risk, Polls
  • Political Geography: Global Focus
  • Author: Silvia Crescimbeni, Vahakn Kabakian, Jessica Obeid
  • Publication Date: 04-2021
  • Content Type: Video
  • Institution: Middle East Institute (MEI)
  • Abstract: Amid converging political, economic, and humanitarian crises, Lebanon has recently doubled down on its climate ambition for the next ten years. In its Nationally Determined Contributions (NDC) submission to the United Nations Framework Convention on Climate Change (UNFCCC), the country has revised both its GHG emission reduction targets and renewable-energy-sourced power generation targets upwards. Does climate change bear national security implications for Lebanon today? How can climate-proofed infrastructure projects and low-carbon technologies attract investments, create jobs and support Lebanon’s economic revival post-collapse? How will immediate policy choices and renewable energy integration ensure economic growth and shape the future of critical sectors such as energy, water, food, and transportation? What is the role of climate diplomacy and partnerships in achieving Lebanon's climate ambitions? How can Lebanon ensure that its climate policy does not fall through the cracks?
  • Topic: Climate Change, Economics, National Security, Politics, United Nations
  • Political Geography: Middle East, Lebanon
  • Author: Benjamin Crost
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Empirical Studies of Conflict Project (ESOC)
  • Abstract: This paper provides evidence that adverse economic conditions contributed to the rise of anti-democratic extremism in the United States. A state-level analysis shows that increases in the unemployment rate during the Great Recession led to a large increase in the number of anti democratic extremist groups. The effect is concentrated in states with high pre-existing racial resentment, as proxied by racist web searches, and strongest for the male unemployment rate and the white unemployment rate. If unemployment had remained at its pre-recession level, the increase in anti-democratic groups between 2007 and 2010 could have been reduced by more than 60%.
  • Topic: Economics, Democracy, Inequality, Far Right, Economic Inequality, Political Extremism
  • Political Geography: United States
  • Author: Nada El Abdi
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: Journal of Liberty and International Affairs
  • Institution: Institute for Research and European Studies (IRES)
  • Abstract: Since September 2015 and the Russian military intervention in the country, the interests in Syria have been numerous and of great importance for the actors involved in this conflict. The interests in Syria are numerous and of great importance for the actors involved in this conflict. Russia, like the Allies and opponents of the Bashar Al-Assad regime, is fighting for geopolitical, geo-economic, or ideological reasons. The Middle East region finds itself shaken by the sharp resurgence of a confrontation between actors allied to the United States, other allies of Russia, and this Syrian crisis thus impacts the geopolitical configuration of the region. This paper presents an analysis of the Russian intervention strategy in Syria. We argue that Russia intervened in Syria to strengthen the already existing Russian-Syrian alliance, to curb extremist proliferation, and to take advantage of Syria's strategic position. The objective is to determine the reasons for the Russian military intervention in Syria related to energy and geo-economic interests. The Russian intervention in Syria was an ideal opportunity to draw closer to several powerful states in the region and a way to benefit from positive spin-offs on its arms market and hydrocarbon road plans. Despite the risks and costs associated with defending the Syrian regime, Moscow has secured its political and economic power in the Middle East.
  • Topic: Economics, Energy Policy, Geopolitics, Military Intervention, Syrian War
  • Political Geography: Russia, Eurasia, Middle East, Syria
  • Author: Björn Brey
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
  • Abstract: Did recent technological change, in the form of automation, affect immigration policy in the United States? I argue that as automation shifted employment from routine to manual occupations at the bottom end of the skill distribution, it increased competition between natives and immigrants, consequently leading to increased support for restricting low-skill immigration. I formalise this hypothesis theoretically in a partial equilibrium model with constant elasticity of substitution in which technology leads to employment polarization, and policy makers can vote on immigration legislation. I empirically evaluate these predictions by analysing voting on low-skill immigration bills in the House of Representatives during the period 1973-2014. First, I find evidence that policy makers who represent congressional districts with a higher share of manual employment are more likely to support restricting low-skill immigration. Second, I provide empirical evidence that representatives of districts which experienced more manual-biased technological change are more likely to support restricting low-skill immigration. Finally, I provide evidence that this did not affect trade policy, which is in line with automation having increased employment in occupations exposed to low-skill immigration, but not those exposed to international trade.
  • Topic: Economics, Immigration, Economic Policy, Automation, Technocracy, Skilled Labor
  • Political Geography: United States
  • Author: Samer Matta, Michael Bleaney, Simon Appleton
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
  • Abstract: An extensive literature has examined the economic effects of non-violent political instability events. Nonetheless, the issue of whether economies react differently over time to such events remains largely unexplored. Using synthetic control methodology, which constructs a counterfactual in the absence of political instability, we estimate the output effect of 38 regime crises in the period 1970-2011. A crucial factor is whether crises are accompanied by mass civil protest. In the crises accompanied by mass civil protest, there is typically an immediate fall in output which is never recovered in the subsequent five years. In crises unaccompanied by protest, there are usually no significant effects. Furthermore, this paper provides new evidence that regime crises (with and without mass civil protest) have heterogeneous (country-specific) effects on output per capita.
  • Topic: Economics, Political Economy, Regime Change, Political stability, Economic Growth, Protests, Economic Policy, Civil Unrest
  • Political Geography: Global Focus
  • Author: Sonali Chowdhry, Gabriel Felbermayr
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Kiel Institute for the World Economy (IfW)
  • Abstract: In 2011, the EU-South Korea Free Trade Agreement (EUKFTA) entered into force. With its focus on non-tariff barriers (NTBs), it is a leading example of a deep new generation agreement. Using detailed French customs data for the period 2000 to 2016, we investigate how exporters of different size have gained from the agreement. Applying a diff-in-diff strategy that makes use of the rich dimensionality of the data, we find that firms with larger pre-FTA sizes benefit more from the FTA than firms at the lower end of the size distribution, both at the extensive (product) and the intensive margins of trade. The latter finding is in surprising contrast to leading theories of firm-level behavior. Moreover, we find that our main result is driven by NTB reductions rather than tariff cuts. In shedding light on the distributional effects of trade agreements within exporters, our findings highlight the need for effective SME-chapters in FTAs.
  • Topic: Economics, International Political Economy, Treaties and Agreements, Tariffs, Trade
  • Political Geography: Europe, South Korea, European Union
  • Author: Vincent Stamer
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: Kiel Institute for the World Economy (IfW)
  • Abstract: Global container ship movements may reliably predict global trade flows. Aggregating both movements at sea and port call events produces a wealth of explanatory variables. The machine learning algorithm partial least squares can map these explanatory time series to unilateral imports and exports, as well as bilateral trade flows. Applying out-of-sample and time series methods on monthly trade data of 75 countries, this paper shows that the new shipping indicator outperforms benchmark models for the vast majority of countries. This holds true for predictions for the current and subsequent month even if one limits the analysis to data during the first half of the month. This makes the indicator available at least as early as other leading indicators.
  • Topic: Economics, Science and Technology, Trade, Shipping, Machine Learning
  • Political Geography: Global Focus
  • Author: Chuck Fang, Julian Schumacher, Christoph Trebesch
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: Kiel Institute for the World Economy (IfW)
  • Abstract: Sovereign debt crises are difficult to solve. This paper studies the “holdout problem”, meaning the risk that creditors refuse to participate in a debt restructuring. We document a large variation in holdout rates, based on a comprehensive new dataset of 23 bond restructurings with external creditors since 1994. We then study the determinants of holdouts and find that the size of creditor losses (haircuts) is among the best predictors at the bond level. In a restructuring, bonds with higher haircuts see higher holdout rates, and the same is true for small bonds and those issued under foreign law. Collective action clauses (CACs) are effective in reducing holdout risks. However, classic CACs, with bond-by-bond voting, are not sufficient to assure high participation rates. Only the strongest form of CACs, with single-limb aggregate voting, minimizes the holdout problem according to our simulations. The results help to inform theory as well as current policy initiatives on reforming sovereign bond markets.
  • Topic: Debt, Economics, International Political Economy, Law, Credit
  • Political Geography: Global Focus
  • Author: Rafał Lisiakiewicz
  • Publication Date: 03-2021
  • Content Type: Journal Article
  • Journal: Nowa Polityka Wschodnia
  • Institution: Faculty of Political Science and International Studies, Nicolaus Copernicus University in Toruń
  • Abstract: Th e article presents an idea of the possible Russian - Chinese strategic economic partnership at the beginning of the 21st century. Th e author indicates the main factors infl uencing Russian Federation foreign policy towards China from the perspective of a neoclassical realism.Th e author stands that according to J. Rosenau, the main factors determining the Russian foreign policy are idiosyncratic and role. Th en he analyses the Russian documents of foreign policy, economic data and geopolitical ideas. On that ground, he makes a simple analyse using the neoclassical realism model, that’s integrates Foreign Policy Analyse and International Relations Th eory, joining independent and intervening variables, to support the article’s hypotheses. Th at hypotheses say that, fi rstly, Th e Peoples Republic of China (PRC) plays a role of diversifi cation of Russia’s international economic ties; and secondly, Th e PRC status as a Russia’s strategic partner is at issue, despite the official declarations of both sides.
  • Topic: Foreign Policy, Economics, Partnerships, Geopolitics
  • Political Geography: Russia, China, Eurasia, Asia
  • Author: George J. Borjas, Anthony Edo
  • Publication Date: 04-2021
  • Content Type: Working Paper
  • Institution: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
  • Abstract: Immigrant supply shocks are typically expected to reduce the wage of comparable workers. Natives may respond to the lower wage by moving to markets that were not directly targeted by immigrants and where presumably the wage did not drop. This paper argues that the wage change observed in the targeted market depends not only on the size of the native response, but also on which natives choose to respond. A non-random response alters the composition of the sample of native workers, mechanically changing the average native wage in affected markets and biasing the estimated wage impact of immigration. We document the importance of this selection bias in the French labor market, where women accounted for a rapidly increasing share of the foreign-born workforce since 1976. The raw correlations suggest that the immigrant supply shock did not change the wage of French women, but led to a sizable decline in their employment rate. In contrast, immigration had little impact on the employment rate of men, but led to a sizable drop in the male wage. We show that the near-zero correlation between immigration and female wages arises partly because the native women who left the labor force had relatively low wages. Adjusting for the selection bias results in a similar wage elasticity for both French men and women (between -0.8 and -1.0).
  • Topic: Economics, Gender Issues, Political Economy, Labor Issues, Immigration, Workforce
  • Political Geography: France
  • Author: Thomas Brand, Fabien Tripier
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
  • Abstract: Highly synchronized during the Great Recession of 2008-2009, the Euro area and the US have diverged in the period that followed. To explain this divergence, we provide a structural interpretation of these episodes through the estimation for both economies of a business cycle model with financial frictions and risk shocks, measured as the volatility of idiosyncratic uncertainty in the financial sector. Our results show that risk shocks have stimulated US growth in the aftermath of the Great Recession and have been the main driver of the double-dip recession in the Euro area. They play a positive role in the Euro area only after 2015. Risk shocks therefore seem well suited to account for the consequences of the sovereign debt crisis in Europe and the subsequent positive effects of unconventional monetary policies, notably the ECB’s Asset Purchase Programme (APP).
  • Topic: Debt, Economics, International Political Economy, Global Recession, Finance, Europe Union, Economic Growth, Risk
  • Political Geography: United States, Europe, Global Focus
  • Author: Cécile Couharde, Carl Grekou, Valérie Mignon
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
  • Abstract: In this paper, we investigate from a policy coordination viewpoint the desirability of the West African monetary union project, ECO. Our approach is built around the inclusion of national objectives in the regional integration perspective. Thanks to cluster analysis, we identify two groups of countries with relatively homogenous sustainable exchange rate paths in West Africa. We also find that no single currency peg nor a freely floating exchange rate regime would be preferable for any of the countries or groups of economies. Overall, our findings argue in favor of two ECOs —at least in a first step, i.e., one for each of the two identified zones. Each ECO would serve as a virtual anchor —with some flexibility— for the considered group, and would be determined by a basket of currencies mainly composed of euro and US dollar.
  • Topic: Economics, International Political Economy, Monetary Policy, Currency
  • Political Geography: West Africa
  • Author: Pierre Cotterlaz, Etienne Fize
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
  • Abstract: This paper documents the effect of information frictions on trade using a historical large-scale improvement in the transmission of news: the emergence of global news agencies. The information available to potential traders became more abundant, was delivered faster and at a cheaper price between countries covered by a news agency. Exploiting differences in the timing of telegraph openings and news agency coverage across pairs of countries, we are able to disentangle the pure effect of information from the effect of a reduction in communication costs. Panel gravity estimates reveal that bilateral trade increased by 30\% more for pairs of countries covered by a news agency and connected by a telegraph than for pairs of countries simply connected by a telegraph.
  • Topic: Economics, International Political Economy, Partnerships, Media, News Analysis, Trade
  • Political Geography: Global Focus
  • Author: Vincent Bodart, François Courtoy, Erica Perego
  • Publication Date: 01-2021
  • Content Type: Working Paper
  • Institution: Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
  • Abstract: With commodities becoming international financial securities, commodity prices are affected by the international financial cycle. With this evidence in mind, this paper reconsiders the macroeconomic adjustment of developing commodity-exporting countries to changes in world interest rates. We proceed by building a model of a small open economy that produces a non-tradable good and a storable tradable commodity. The difference with standard models of small open economies lies in the endogenous response of commodity prices which -due to commodity storage- adjust to variations in international interest rates. We find that the endogenous response of commodity prices amplifies the reaction of commodity exporting countries to international monetary shocks. This suggests that commodity exporting countries are more vulnerable to unfavourable international monetary disturbances than other small open economies. In particular, because of the existence of the commodity price channel, even those small open commodity-exporting economies that are disconnected from international financial markets can be affected by the international financial cycle.
  • Topic: Economics, International Political Economy, Monetary Policy, Finance, Commodities, Interest Rates, Exports, Price
  • Political Geography: Global Focus
  • Author: Simon Lester, Huan Zhu
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: Donald Trump was a trade “hawk” long before he became president. In the late 1980s, he went on the Oprah Winfrey show and complained about Japan “beating the hell out of this country” on trade (Real Clear Politics 2019). As president, he has continued with the same rhetoric, using it against a wide range of U.S. trading partners, and he has followed it up with action (often in the form of tariffs). While many countries have found themselves threatened by Trump’s aggressive trade policy, his main focus has been China. As a result, the United States and China have been engaged in an escalating tariff, trade, and national security conflict since July 2018, when the first set of U.S. tariffs on China went into effect and China retaliated with tariffs of its own. In this article, we explore the U.S.-China economic conflict, from its origins to the trade war as it stands today. We then offer our thoughts on where this conflict is heading and when it might end.
  • Topic: Economics, International Trade and Finance, Tariffs, Trade Wars, Donald Trump
  • Political Geography: China, Asia, North America, United States of America
  • Author: Marek Steedman, Iliyan Iliev, Marcus Coleman, Allan McBride
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: Marek Steedman, Iliyan Iliev, Marcus Coleman, and Allan McBride analyze the 2010 New Orleans mayoral election. They find that racial, economic, and partisan context affected voting behavior. They argue that analytical approaches that account for the effects of social context on political behavior are important to understanding urban politics.
  • Topic: Economics, Race, Elections, Political Science, Urban
  • Political Geography: North America, United States of America
  • Author: David Szakonyi
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: As the 2020 presidential campaign heats up, the issue of billionaires ascendant within American politics will once again take center stage. The country could see another billionaire candidate challenge the incumbent billionaire president, whose many informal advisers and cabinet members run in similar circles. Several ultrarich elites will inevitably break new records with their individual campaign contributions. A voter could be forgiven for thinking that billionaires have publicly co-opted the political system. In a much-needed new book Billionaires and Stealth Politics, Benjamin I. Page, Jason Seawright, and Matthew J. Lacombe argue that these public actions are just the tip of the iceberg. For all the money billionaires invest in campaigns, parties, and issues, only rarely do they say anything in public to explain their preferences or reasons for pursuing specific aims. Billionaires engage in what the authors term stealth politics: they are extremely active in politics but remain intentionally quiet about the extent of their activities and influence. That silence is even more deafening with regard to issues where billionaires diverge from their less affluent fellow citizens, such as tax rates and redistributive policies.
  • Topic: Economics, Politics, Book Review, Political Science
  • Political Geography: North America, United States of America
  • Author: Jennifer Brown, Tara Flint, Jessca LaMay
  • Publication Date: 05-2020
  • Content Type: Journal Article
  • Journal: Journal of Public and International Affairs (JPIA)
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: The Global North’s growing demand for fresh pineapple has created a system that is disproportionately profitable for companies and consumers in those countries to the detriment of people living and working in the Global South. Since the mid-1980s the Pineapple Development Corporation (PINDECO), a subsidiary of U.S.-based Del Monte, has established a monopoly over fresh pineapple exports in southern Costa Rica. We conducted pilot research in the municipalities of Buenos Aires and San Isidro del General in 2019, where the majority of PINDECO’s production takes place. PINDECO and the Costa Rican state claim pineapple production is beneficial to national development through its contribution to Costa Rican gross domestic product and employment opportunities, but our research and recent data reveal that in pineapple producing areas in the southwest, poverty levels remain high with worsening water and food security despite PINDECO’s large profit margins. There are numerous human and environmental health concerns linked to pineapple monocropping. Intensive pesticide use often utilizes chemicals that are banned or restricted in the countries they are imported from. PINDECO has been able to evade responsibility for environmental damages and social welfare obligations to employees while maintaining a largely positive public image through a lax regulatory environment and extensive subcontracting structure. This article connects regional socioeconomic issues to the intricate power dynamics and collusion between industry and state. The findings suggest that Costa Rica is not as environmentally conscious and sustainable as its public image portrays, with pockets of profit-driven industries taking precedence over community well-being and environmental sustainability.
  • Topic: Agriculture, Economics, International Trade and Finance, International Development
  • Political Geography: South America, Central America, Costa Rica
  • Author: Yehuda Shaffer, Stefan D. Cassella
  • Publication Date: 02-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: In the past few years, a number of European banks have been implicated in money laundering scandals in countries such as Cyprus, Malta, Latvia, and, most recently, Scandinavia. Although European and international voices are putting pressure to take further action by all including the banks against this, the issue continues to emerge in the continent. In this short article, we attempt to explain this trend and how might it be resolved.
  • Topic: Crime, Economics, Finance, Business , Financial Crimes, Banks, Currency
  • Political Geography: Russia, Soviet Union, Latvia, Scandinavia, Cyprus, Malta
  • Author: David Smith
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Civilian governance in Pakistan has never lasted longer than eleven years. 2019 is the eleventh year since General Pervez Musharraf resigned the presidency and fears of a coup may exist, but one is not probable—at least not in the near-term future. In fact, two recent Chiefs of Army Staff (COAS)—Generals Kayani and Raheel in 2009 and 2014, respectively—considered taking, but decided not to take, direct control of the government. These decisions demonstrate that military rule is no longer necessary because the Army has already attained its major goals of de facto control of the country’s nuclear and missile programs, key foreign relationships, the military budget, and national security decision-making. In effect, the military has achieved what I have previously termed a “coup-less coup.” Instead of the traditionally fraught civil-military relationship, it seems that, for the first time in Pakistan’s turbulent history, the government and military agree on the three major issues facing Pakistan: domestic politics, the economy, and India. However, key variables, such as economic stability, could quickly change the course of this relationship.
  • Topic: Security, Economics, Governance, Conflict, Civilians, Military Government
  • Political Geography: Pakistan, South Asia, India
  • Author: Michael A. Carrier
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Big Tech is in the news. At the center of our political and economic dialogue is the effect that Amazon, Apple, Facebook, and Google have on our lives and what, if anything, governments should do about it. In this article, I explain how Big Tech has come under scrutiny, the antitrust implications of the industry’s behavior, and the potential remedy of breaking up the companies.
  • Topic: Economics, Government, Science and Technology, Regulation, Internet, Social Media, Business
  • Political Geography: Global Focus, United States of America
  • Author: Sergio Martinez, Mauricio Garita
  • Publication Date: 12-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Central America is a region in the Americas with potential for higher economic growth. For the regional economy to grow in a sustainable manner in the years ahead, policymakers must act on three fronts: economic diversification, workforce upskilling, and intra-regional cooperation.
  • Topic: Development, Economics, Poverty, Income Inequality, Economic Growth, Multilateralism
  • Political Geography: Latin America, Central America
  • Author: Reza Hasmath
  • Publication Date: 10-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: China’s implementation of new ESG practices suggests a serious shift towards meeting global standards and domestic-level sustainable development objectives. The new ESG regime also has the potential to be a tool for Chinese foreign policy in the 2020s.
  • Topic: Economics, Environment, Governance, Business , Sustainability
  • Political Geography: China, Asia
  • Author: Maya Mirchandani
  • Publication Date: 06-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: The cauldron of conflict in South Asia has been bubbling since August 5, 2019 when the Hindu nationalist Bharatiya Janata Party (BJP)-led Indian government diluted the provisions of Article 370 of the Constitution of India, giving special status to the disputed state of Jammu and Kashmir, control over which remains at the core of the international dispute between India and Pakistan. Three of the four wars fought between India and Pakistan have been over Kashmir, and the separatist movement (backed by Pakistan) demanding independence has spawned the growth of both insurgent and terrorist groups waging war against the Indian state. India’s sudden, unilateral decision to withdraw Kashmir’s special provisions drew sharp reactions at home and abroad. The Indian government subsequently trifurcated the state, shut down the internet in Kashmir, and detained much of Kashmir’s political leadership without charges in the interest of “public safety.” Muscular action in Kashmir, against a backdrop of what many economists are now calling a structural economic decline in India have led to strong disruptions in India’s diplomatic ties, especially with the United States.
  • Topic: Economics, Human Rights, Business , Trade
  • Political Geography: South Asia, India, Kashmir, North America, United States of America
  • Author: Julia Grauvogel, Hana Attia
  • Publication Date: 01-2020
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Research on sanctions has hitherto focused on their implementation and effectiveness, whereas the termination of such measures has received only little attention. The traditional model, which looks at sanctions and their removal in terms of rational, interstate bargaining, focuses on how cost–benefit calculations affect the duration and termination of such measures. Yet, this research insufficiently captures the back and forth between easing sanctions, stagnation, and renewed intensification. It also fails to account for the multifaceted social relations between senders, targets, and third actors that shape these termination processes, as well as for the signalling dimension of ending sanctions – not least because existing datasets tend to operationalise sanctions as a single event. To help fill these gaps, the paper proposes a process-oriented and relational understanding that also recognises how sanctions termination conveys the message of ending the visible disapproval of the target, which may be heavily contested. Case studies on Zimbabwe and Iran illustrate how such an approach sheds light on the different logics of action that shape processes of sanctions termination, and thereby contributes to a more holistic understanding of sanctions in general.
  • Topic: Foreign Policy, Economics, Sanctions
  • Political Geography: Africa, Iran, Middle East, Zimbabwe
  • Author: Dina H. Sherif, Salma El Sayeh
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: Harvard Journal of Middle Eastern Politics and Policy
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: In 2010, the Arab region was regarded as having very little potential for serious political transformation. The outside world perceived “stable” authoritarian regimes with iron-fist control over citizens who would surely never demand drastic change. Amal Ghadour described the regional landscape best: “These are the lifeless landscapes you are sure to behold if you were standing and peering down. Crouch and you begin to brush against the faint gusts of wind delicately working their way through them.”1 Engagement comes in many forms besides political, and in 2010, countries like Egypt, Tunisia, Jordan, and Syria were seeing significant increases in the number of NGOs, private sector engagement in social development, philanthropy, and youth volunteerism. None of these was viewed as a threat to the existing regimes at the time, but they represented a new coalescence of power amid increasing human rights abuses, youth exclusion, unemployment rates, and social inequity. The ingredients for change were there and finally ignited by the self-immolation of street vendor Mohamed Bouazizi on 17 December 2010 in Tunisia, which launched the cycle of mass uprisings and the falling of dictators in Tunisia, Egypt, and Libya in 2011.
  • Topic: Economics, Labor Issues, Business , Youth, Innovation
  • Political Geography: Middle East, North Africa, Syria, Egypt, Jordan, Tunisia
  • Author: Rabah Arezki
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: Harvard Journal of Middle Eastern Politics and Policy
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: However unsurmountable geopolitical crises may seem today, it will be domestic protests that determine the social and economic landscape in the Middle East in the coming years. The Middle East has been plunged into turmoil. The killing of Iranian Major General Qassem Soleimani by the United States on 3 January 2020 created a tense military and political situation in the region. In response, Tehran said it would abandon the 2015 accord under which it agreed to restrictions on its nuclear program and fired rockets at bases housing the US military in Iraq. Washington has sent more troops to the region and imposed new economic sanctions on Iran. However, further escalation seems to have been avoided—at least so far.
  • Topic: Conflict Prevention, Economics, Geopolitics, Protests, Society
  • Political Geography: Middle East
  • Author: Ricardo Hausmann, Miguel Angel Santos
  • Publication Date: 10-2020
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: El Laboratorio de Crecimiento de la Universidad de Harvard, bajo el auspicio de la Fundación Gordon and Betty Moore, ha desarrollado esta investigación para identificar las capacidades productivas existentes en Loreto y las actividades económicas con potencial para liderar la transformación estructural de su economía. Este reporte forma parte de una investigación más amplia – Transformación estructural y restricciones limitantes a la prosperidad en Loreto, Perú – que busca aportar insumos para el desarrollo de políticas públicas a escala nacional y regional que contribuyan a promover el desarrollo productivo y la prosperidad de la región, tomando en cuenta sus características particulares.
  • Topic: Development, Economics, Diversification, Economic Complexity
  • Political Geography: Central America, Mexico
  • Author: Adam Moe Fejerskov, Meron Zeleke
  • Publication Date: 03-2020
  • Content Type: Special Report
  • Institution: Danish Institute for International Studies
  • Abstract: Every year, hundreds of thousands of migrants return to Ethiopia from abroad, many of them forced. The arduous irregular journeys that many Ethiopian migrants take, particularly men, expose them to extreme levels of physical, psychological and sexual violence. Building on interviews with Ethiopian male returnees, this new DIIS Report documents both the inhuman conditions of migration that most of these men are faced with during their travels, but also the difficulties of returning to a place that may not be felt as ‘home’ anymore. The report shows how processes of returning are neither easy or pleasant as most returnees are faced with social stigma, economic hardship and traumas from their migration journeys. The report questions the very notion of re-integration. The life-altering and irreparable effects of migration for Ethiopian men, seldom for the better, means that what was before will never be again. As such, there are no processes of development, forms of treatment or possibilities of employment that can bring one back to how things were. That does not mean that support in adjusting to a new life after migration journeys is not possible, it simply means that the objective can never be to reinstate migrants ‘back’ into their communities with any expectation that they can resume social relations or positions like things were before. The report is financed by the Danish Red Cross.
  • Topic: Economics, Gender Issues, Migration, Men
  • Political Geography: Africa, Ethiopia
  • Author: Julia Coronado, Simon Potter
  • Publication Date: 03-2020
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: The US monetary system faces significant challenges from advances in technology and changes in the macroeconomy that, left unaddressed, will threaten the stability of the US economy and financial system. At the same time, low interest rates mean that central banks will not have the policy ammunition they had in the past during the next recession. The Federal Reserve needs new tools to meet its mandates of price stability and maximum employment. It also needs to preserve the safety and soundness of the financial system in a rapidly digitizing world. The authors propose a Fed-backed digital currency to solve both problems. Their proposal creates a regulated system of digital currency accounts for consumers managed by digital payment providers and fully backed by reserves at the Fed. The system would be limited in size, to preserve the functions and stability of the existing banking system. Fed backing would mean low capital requirements, which would in turn facilitate competition. Low fees and no minimum balance requirements in the new system would also help financial institutions reach the roughly 25 percent of the US population that is currently either unbanked or underbanked. Digital accounts for consumers could also provide a powerful new stabilization tool for both monetary and fiscal policies. For fiscal policy, it could facilitate new automatic stabilizers while also allowing the Fed to provide quantitative easing directly to consumers. This tool could be used in a timely manner with broad reach to all Americans.
  • Topic: Economics, Government, Monetary Policy, Banks, Macroeconomics
  • Political Geography: North America, United States of America
  • Author: Kristin Forbes, Joseph E. Gagnon, Christopher G. Collins
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper models inflation by combining the multicountry framework of one of its authors (Forbes) with the nonlinear specification proposed by the other two (Gagnon and Collins). The results find strong support for a Phillips curve that becomes nonlinear when inflation is low, in which case excess economic slack has little effect on inflation. This finding is consistent with evidence of downward nominal wage and price rigidity. The estimates also show a significant and economically meaningful Phillips curve relationship between slack and inflation when slack is negative (i.e., when output is above long-run potential). In this nonlinear model, international factors play a large role in explaining headline inflation, a role that has increased over time, supporting the results of Forbes’ linear model.
  • Topic: Economics, Inflation, Data
  • Political Geography: Global Focus
  • Author: Julia Coronado, Simon Potter
  • Publication Date: 04-2020
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: In the second part of their Policy Brief, Coronado and Potter discuss how the system of digital payment providers (DPPs) proposed in their first Policy Brief on this topic adds a new weapon to the monetary toolkit that could be implemented in a timely, effective, and inclusive manner. They describe how a digital currency backed by the Federal Reserve could augment automatic fiscal stabilizers and—more importantly—harness the power of “helicopter” money or quantitative easing directly to consumers in a disciplined manner. To implement QE directly to consumers, Coronado and Potter propose the creation of recession insurance bonds (RIBs)—zero-coupon bonds authorized by Congress and calibrated as a percentage of GDP sufficient to provide meaningful support in a downturn. Congress would create these contingent securities; Treasury would credit households’ digital accounts with them. The Fed could purchase them from households in a downturn after its policy rate hits zero. The Fed’s balance sheet would grow by the value of RIBs purchased; the initial matching liability would be deposits into the DPP system. The mechanism is easy for consumers to understand and could boost inflation expectations more than a debt-financed fiscal stimulus could.
  • Topic: Economics, Government, Monetary Policy, Insurance
  • Political Geography: North America, United States of America
  • Author: Soyoung Han, Marcus Noland
  • Publication Date: 04-2020
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: The Summer Olympic Games are the most globalized sporting event on earth. Until now, the Summer Games had been postponed only three times—in 1916, 1940, and 1944—all because of world wars. So, the announcement that in response to the COVID-19 pandemic, the 2020 Tokyo Games would be postponed by a year is significant, implicit testimony to the destructiveness of the pandemic. The Tokyo Games were expected to continue the evolution of the Games away from the aristocratic European milieu where the modern Olympic movement began. As poverty has declined and incomes across the global economy have converged, participation in the Games has broadened and the pattern of medaling has become more pluralistic, particularly in sports with low barriers to entry in terms of facilities and equipment. This Policy Brief presents forecasts of medal counts at the 2020 Tokyo Summer Games had they had gone on as scheduled, setting aside possible complications arising from the coronavirus pandemic. The forecasts are not just a depiction of what might have been. They establish a benchmark that can be used when the Games are eventually held, to examine the impact of the uneven incidence of the pandemic globally.
  • Topic: Economics, Globalization, Sports, Olympics
  • Political Geography: Japan, Asia, Global Focus
  • Author: Maurice Obstfeld, Adam S. Posen, Olivier Blanchard, Chad P. Bown, Cullen S. Hendrix, Ana González, Simeon Djankov, Anne-Laure Kiechel, Anna Gelpern, Sean Hagan, Adnan Mazarei, Christopher G. Collins, Simon Potter, Edwin M. Truman, Joseph E. Gagnon
  • Publication Date: 04-2020
  • Content Type: Special Report
  • Institution: Peterson Institute for International Economics
  • Abstract: The world's leading economic powers must cooperate more to combat the health and economic shocks resulting from the COVID-19 pandemic. In a new PIIE Briefing, Peterson Institute experts outline how collective action by the Group of Twenty (G20) nations can make a difference. The PIIE agenda includes removal of trade barriers impeding the flow of medical supplies and food, and more money for research, testing, and disease control, especially for debt-burdened low-income countries. The World Bank and the World Health Organization need more resources to relieve suffering, and the International Monetary Fund must step up to stabilize the world financial system.
  • Topic: Economics, Health, World Health Organization, International Monetary Fund, World Bank, G20, Coronavirus
  • Political Geography: Global Focus
  • Author: Chad P. Bown
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: While the public was transfixed by the Trump administration’s policies alleging that imports were a threat to America’s national security during 2017–20, there was a concomitant and more quiet US policy shift on the export side. Addressing the national security threat presented by exports posed different economic and institutional challenges from those associated with import policy, including the acknowledgment that export controls for legitimate national security reasons can be the first-best policy to confront the problem at its source. Yet, export controls could also be misused as a beggar-thy-neighbor policy to redistribute economic well-being across countries, even from one ally to another. This paper describes how US export control policy evolved over 2017–20, as well as the international institutions—first the Coordinating Committee for Multilateral Export Controls (COCOM), then the Wassenaar Arrangement—historically tasked with multilateralizing US export restrictions used to protect national security. With the potential for US export control policy to brush up more frequently against WTO rules designed to limit the use of export restrictions, the paper also highlights new challenges for the WTO’s system of resolving trade disputes. Overall, a US failure to strike the right balance for its export control policy would result in it being ineffective at addressing national security risks, costly for the economy, and problematic for trade and diplomatic relations.
  • Topic: Economics, Government, National Security, Exports, Trade
  • Political Geography: North America, United States of America
  • Author: Olivier Blanchard, Thomas Philippon, Jean Pisani-Ferry
  • Publication Date: 06-2020
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: The measures that most governments took in response to the sudden collapse in economic activity during the COVID-19 lockdowns nearly exclusively focused on protecting vulnerable workers and firms. These measures included unemployment benefits, grants, transfers, loans at low rates, and tax deferrals. As lockdowns are lifted, governments must shift policies toward supporting the recovery and design measures that will limit the pain of adjustment while preserving productive jobs and firms. This Policy Brief explores how such measures can be designed, with particular emphasis on Europe and the United States. The authors propose a combination of unemployment benefits to help workers, wage subsidies and partially guaranteed loans to help firms, and debt restructuring procedures for small and medium-sized companies handicapped by excessive legacy debt from the crisis.
  • Topic: Debt, Economics, Government, Labor Issues, Unemployment, Coronavirus
  • Political Geography: Europe, North America, United States of America
  • Author: Olivier Jeanne
  • Publication Date: 01-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: In theory, tariffs are partially offset by a currency appreciation in the tariff-imposing country or by a depreciation in the country on which the tariff is imposed. Based on a calibrated model, this paper finds that US tariffs imposed in 2018 should not have had a large impact on the dollar but may have significantly depreciated the renminbi. This prediction is consistent with a high-frequency event analysis looking at the impact of tariff-related news on the dollar and the renminbi. Tariff-related news explains about one-third of the renminbi depreciation observed in 2018.
  • Topic: Economics, Tariffs, Exchange Rate Policy, Currency
  • Political Geography: North America, United States of America
  • Author: Joseph E. Gagnon, Olivier Jeanne
  • Publication Date: 01-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper shows that the scope for bond yields to fall below zero is strictly limited by market expectations about how far below zero central banks are willing to set their short-term policy rates. If a central bank communicates a credible commitment to keeping its policy rate above a given level under all circumstances, then bond yields must be higher than that level. This result holds true even in a model in which central banks are able to depress the term premium in bond yields below zero via large-scale purchases of long-term bonds, also known as quantitative easing (QE). QE becomes less effective as bond yields approach their lower bound.
  • Topic: Economics, Finance, Central Bank, Global Bond Market
  • Political Geography: Global Focus
  • Author: Olivier Blanchard, Lawrence H. Summers
  • Publication Date: 02-2020
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: With interest rates persistently low or even negative in advanced countries, policymakers have barely any room to ease monetary policy when the next recession hits. Fiscal policy will have to play a major and likely dominant role in stimulating the economy, requiring policymakers to fundamentally reconsider fiscal policy. Blanchard and Summers argue for the introduction of what they call “semiautomatic” stabilizers. Unlike purely automatic stabilizers (mechanisms built into government budgets that automatically—without discretionary government action or explicit triggers—increase spending or decrease taxes when the economy slows or enters a recession), semiautomatic stabilizers are targeted tax or spending measures that are triggered if, say, the output growth rate declines or the unemployment rate increases beyond a specified threshold. The authors argue that the trigger should be changes in unemployment rather than changes in output, and the design of semiautomatic stabilizers, whether they focus on mechanisms that rely primarily on income or on intertemporal substitution effects (changing the timing of consumption), depends crucially on the design of discretionary policy.
  • Topic: Economics, Government, Monetary Policy, Finance
  • Political Geography: Global Focus, United States of America
  • Author: Chad P. Bown, Aksel Erbahar, Maurizio Zanardi
  • Publication Date: 02-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper examines how trade protection is affected by changes in the value-added content of production arising through global value chains (GVCs). Exploiting a new set of World Trade Organization (WTO) rules adopted in 1995 that impose an exogenously timed requirement for countries to reevaluate their previously imposed trade protection, the authors adopt an instrumental variables strategy and identify the causal effect of GVC integration on the likelihood that a trade barrier is removed. Using a newly constructed dataset of protection removal decisions involving 10 countries, 41 trading partners, and 18 industries over 1995–2013, they find that bilateral industry-specific domestic value-added growth in foreign production significantly raises the probability of removing a duty. The results are not limited to imports from China but are only found for the protection decisions of high-income countries. Back-of-the-envelope calculations indicate that rapid GVC growth in the 2000s freed almost a third of the trade flows subject to the most common temporary restrictions (i.e., antidumping) applied by high-income countries in 2006.
  • Topic: Economics, International Trade and Finance, Global Markets, Finance, Trade
  • Political Geography: Global Focus
  • Author: David Reifschneider, David Wilcox
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: If the Federal Reserve does not decisively change the way it conducts monetary policy, it will probably not be capable of fighting recessions in the future as effectively as it fought them in the past. This reality helped motivate the Fed to undertake the policy framework review in which it is currently engaged. Researchers have suggested many steps the Fed could take to improve its recession-fighting ability; however, no consensus has emerged as to which of these steps would be both practical and maximally effective. This paper aims to fill that gap. It recommends that the Fed commit as soon as possible to a new approach for fighting recessions, involving two key elements. First, the Fed should commit that whenever it runs out of room to cut the federal funds rate further, it will leave the rate at its minimum level until the labor market recovers and inflation returns to 2 percent. Second, the Fed should commit that under the same circumstances, it will begin to purchase longer-term assets in volume and will continue such purchases until the labor market recovers. If the forces driving the next recession are not unusually severe, this framework might allow the Fed to be as effective at fighting that recession as it was in the past. If the next recession is more severe, however, the Fed will probably run out of ammunition even if it takes the two steps recommended here. Therefore, both monetary and fiscal policymakers should consider yet other steps they could take to enhance their ability to fight future recessions.
  • Topic: Economics, Monetary Policy, Federal Reserve
  • Political Geography: North America, Global Focus, United States of America
  • Author: Chad P. Bown, Soumaya Keynes
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: On December 10, 2019, the World Trade Organization’s (WTO) 25-year-old system of resolving disputes broke down. This paper explains why. It describes the dysfunctional system that preceded the WTO, when the United States dealt with politically troublesome imports by using voluntary export restraints and increasingly resorted to the “aggressively unilateral” Section 301 policy to resolve trade concerns. The WTO was a compromise between the rest of the world and the United States, whereby the latter accepted some constraints with the expectation that the new system of binding dispute settlement would serve its interests. But although the creation of the WTO resolved some concerns about American unilateralism in the short term, its system of handling disputes turned out to be politically unsustainable.
  • Topic: Economics, World Trade Organization, Trade, Donald Trump
  • Political Geography: North America, United States of America
  • Author: Okko-Pekka Salmimies
  • Publication Date: 09-2020
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: Finland is preparing a Strategic Programme for the Circular Economy this autumn. It offers an opportunity to strengthen policy coherence between domestic policies and different aspects of foreign policy relevant when promoting a circular economy.
  • Topic: Foreign Policy, Economics, Domestic politics
  • Political Geography: Europe, Finland, Scandinavia
  • Author: Jens Beckert, Timur Ergen
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Max Planck Institute for the Study of Societies
  • Abstract: This paper discusses sociological analyses of the formation and role of expectations in the economy. Recognition of the social constitution of expectations advances the understand- ing of economic action under conditions of uncertainty and helps to explain core features of modern capitalist societies. The range of applications of the analytical perspective is il- lustrated by closer examination of three core spheres of capitalist societies: consumption, investment, and innovation. To provide an idea of core challenges of the approach, three major research questions for the sociological analysis of expectations are presented.
  • Topic: Economics, Markets, Sociology, Capitalism, Innovation
  • Political Geography: Global Focus
  • Author: Oula A. Alrifai
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: The Washington Institute for Near East Policy
  • Abstract: Besides highlighting Assad’s financial mismanagement, the recent unrest gives the international community a genuine opportunity to push for transition while bolstering the more prosperous local administration in the northeast. Since mid-January, shop owners, government employees, students, and even children have been gathering in the streets of various Syrian communities to express their frustration with the Assad regime’s economic policies and untruths. Although the protests remain small for now, the fact that they have persistently carried on in the middle of regime-controlled territory highlights Bashar al-Assad’s potential vulnerability on these issues. In Suwayda, a Druze-majority province in the south, residents have protested the sharp drop in the value of the Syrian pound/lira and the deteriorating economic situation in general. In the central-western town of Salamiya, protestors were seen chanting “we want to live.” And in the Suwayda town of Shahba, demonstrators raised loaves of bread in the air while openly criticizing Bouthaina Shaaban, Assad’s political and media advisor. The latter protest was partly spurred by a recent interview on the pro-Assad television network al-Mayadeen, where Shaaban not only claimed that the country’s current economy is “fifty times better than what it was in 2011,” but also declared that “Syrians are self-sufficient in everything.” In response, protestors sarcastically noted that her comments referred to her own household’s economy, not Syria’s. Elsewhere, former agriculture minister Nour al-Din Manna described Shaaban’s remarks about the war-torn country as “hard to believe,” and a closer look at the country’s finances supports this disbelief.
  • Topic: Foreign Policy, Economics, Syrian War, Currency
  • Political Geography: Middle East, Lebanon, Syria, United States of America
  • Author: Allison Jacobs Anderson
  • Publication Date: 12-2020
  • Content Type: Policy Brief
  • Institution: The Washington Institute for Near East Policy
  • Abstract: Low women's employment in Jordan is perplexing given the kingdom's middle-class attributes. Creativity in U.S. development initiatives could deliver lasting gains. In Jordan, a mere 14 percent of women are formally employed, compared to the global average of 51 percent. This outcome is somewhat perplexing given the Hashemite Kingdom’s relatively high education levels for women, declining fertility rates, high average marriage age, and other attributes of a middle-class society. Jordan watchers have therefore searched for a cause. One common explanation centers on cultural constraints, including pressure to stay home, families disapproving of vocational jobs, and concerns about women working in mixed-gender environments. But an alternative view suggests these concerns may be overstated, in part owing to recognition of the essential role women can play in a fragile economy. In this new Policy Note, Dr. Allison Jacobs Anderson, an expert on gender and development, makes the case for encouraging greater women’s economic participation in Jordan. She outlines the many associated personal and societal benefits, and shows how a creative approach by U.S. development entities could deliver lasting gains.
  • Topic: Economics, Labor Issues, Women, Participation
  • Political Geography: Middle East, Jordan
  • Author: Yonho Kim
  • Publication Date: 09-2020
  • Content Type: Special Report
  • Institution: United States Institute of Peace
  • Abstract: More than one in five North Koreans have cell phones, and increasingly rely on them to conduct financial transactions. Many of these transactions involve trading cell phone airtime, or “phone money,” for goods and services, and even for offering bribes. This report examines the potential for airtime trading to evolve into a formal mobile money system, which could enhance market activity and stability while providing opportunities for the country to engage with the international community.
  • Topic: Economics, Environment, Science and Technology, Communications
  • Political Geography: Asia, North Korea
  • Publication Date: 04-2020
  • Content Type: Special Report
  • Institution: United States Institute of Peace
  • Abstract: The Red Sea arena—which this report defines as the eastern and western shores of the Red Sea, from the Arabian Peninsula to Egypt and the Horn of Africa, and the strategic waterways that run between, including the Red Sea, the Bab el-Mandeb Strait, and the Suez Canal—has long been a center of political turbulence, regional rivalries, and geopolitical interest. Historic political transitions currently underway in Sudan and Ethiopia, burgeoning economic investments amid fragility and debt in the Horn, continued conflict and humanitarian crisis in Yemen, Middle Eastern rivalries and their impact on regional conflict dynamics, and the growing presence of China have further heightened geopolitical interest in this arena. This report focuses on China’s influence and activities in the region and its relationships with twelve Red Sea arena states: Djibouti, Egypt, Eritrea, Ethiopia, Oman, Qatar, Saudi Arabia, Somalia, South Sudan, Sudan, the United Arab Emirates (UAE), and Yemen.
  • Topic: Foreign Policy, Economics, Environment, Geopolitics, Conflict
  • Political Geography: China, Asia, Red Sea
  • Author: Jason Tower, Priscilla Clapp
  • Publication Date: 07-2020
  • Content Type: Special Report
  • Institution: United States Institute of Peace
  • Abstract: Seeking to profit from China's lucrative but illegal gambling market, a shady web of actors has begun building resort cities in Myanmar’s Karen State to cater to Chinese gamblers. This report casts light on the actors behind Myanmar’s illegal gambling sector, their linkages to Chinese government entities and to Myanmar's armed groups and military, and how their actions could upend Myanmar’s prospects for peace.
  • Topic: Crime, Economics, Transnational Actors, Gambling, Peace
  • Political Geography: China, Asia, Southeast Asia, Myanmar
  • Author: David Michel
  • Publication Date: 08-2020
  • Content Type: Special Report
  • Institution: United States Institute of Peace
  • Abstract: No modern states have ever declared war over water. In fact, nations dependent on shared water sources have collaborated far more frequently than they have clashed. Nevertheless, global surveys have counted over forty hostile, militarized international actions over water—from riots to border skirmishes to larger battles—in the first six decades after World War II. This report reviews the pathways that link water resource pressures to conflict risks and describes how peacebuilding strategies such as water diplomacy can help mitigate these risks.
  • Topic: Economics, Environment, Natural Resources, Water, Peace
  • Political Geography: Global Focus
  • Author: Adedeji Adeniran, Idris Ademuyiwa
  • Publication Date: 07-2020
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The growth of digitalization and digital technology adoption in Africa holds the key to strengthening and diversifying economies across the continent. Although these developments offer potentially life-changing benefits for consumers, businesses and governments, the inherent flaws in the digital market mean these benefits are not guaranteed. As most gains from the digital economy are largely concentrated in the United States and China, the digital divide may widen the gap between the Global North and the Global South.
  • Topic: Economics, Governance, Digital Economy, Digitalization
  • Political Geography: Africa, Global South
  • Author: Judit Fabian
  • Publication Date: 03-2020
  • Content Type: Policy Brief
  • Institution: Urban Institute
  • Abstract: International trade is often framed in starkly divergent terms: either countries choose multilateral trade agreements (MTAs) and advance the cause of global economic liberalization, or they choose preferred trade agreements (PTAs) and put the entire system at risk. Canada has a long track record of pursuing PTAs and with the Trump administration’s opposition to multilateralism, and longstanding opposition in elements of the Republican and Democratic parties, this trend will likely continue. The question is whether progress will come at the expense of the global trade system. Some economists believe PTAs to be trade-diverting, reducing trade with more efficient producers outside the agreement. Others insist that PTAs can create trade by shifting production to lower-cost producers in one of the participating countries. One prominent contrary argument holds that PTAs lead to discontinuities in tariff regimes between countries and regions, increasing transaction costs, disrupting supply chains, creating opportunities for corruption and harming global welfare, especially in developing nations. While debate continues about the effects of PTAs, a closer examination suggests that worries are overblown about their negative impacts on global trade flows. Evidence indicates that they support rather than harm the international trading system. Countries shut out of PTAs are more motivated to seek out agreements in new markets, increasing liberalization overall. They may also seek a reduction in most-favoured nation (MFN) tariffs, which would deprive PTAs of their major tariff benefits. Studies have found complementarity between preferential and MFN tariffs, revealing that PTAs promote external trade liberalization. Even if a PTA reduces a given country’s incentive to push for multilateral liberalization, it raises the odds of that country liberalizing its trade to avoid getting left behind. PTAs are a response to the difficulties of securing sweeping multilateral agreements. The World Trade Organization (WTO) Agreements authorize them under GATT Article XXIV, GATS Article V, and the enabling clause, and the WTO facilitates a degree of governance over PTAs through its dispute settlement process. Over the past 25 years, countries have adopted these deals at a rapid pace. Between 1994 and 2005, the number of PTAs increased from 50 to 200. By April 2018, 336 were in effect. At the same time, global trade has increased significantly. Between 1994 and 2010, the volume of world merchandise exports more than doubled. The proliferation of PTAs has resulted in a rise in international trade governance, because the countries involved shape their relationships in line with the WTO agreements. This juridification makes PTAs subordinate to the international system rather than giving them room to dissolve it. Canada should therefore have no fear of pursuing PTAs within the larger framework of the effort to achieve multilateral trade liberalization.
  • Topic: Economics, International Trade and Finance, Governance, Trade, Donald Trump
  • Political Geography: Canada, North America, United States of America
  • Author: Matthew Eldridge
  • Publication Date: 04-2020
  • Content Type: Commentary and Analysis
  • Institution: Urban Institute
  • Abstract: Even as many developing countries are confronting the health impacts of the COVID-19 pandemic, they are already bracing for the widespread, global recession that will follow. These countries already struggle to provide many services and supports to their citizens, and although the emergency assistance packages of international financial institutions are a start, they alone won’t be enough to mitigate the economic impact of COVID-19 and enable a strong recovery. Although most developing countries escaped the 2007–08 financial crisis with limited damage, for many, this economic downturn is expected to be much worse because of the direct health effects, the sharp decline in global economic activity, the structural composition of their economies, and constrained policy options.
  • Topic: Development, Economics, Pandemic, COVID-19
  • Political Geography: Global Focus
  • Author: Rudolf Furst
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Institute of International Relations Prague
  • Abstract: The Euro-Japanese rapprochement stimulates the Japanese interest in the new EU member states, which are then matched with Japanese investments and Japan’s global trade strategy. The V4 countries benefit from their geographical position, existing infrastructure and political stability, industrial tradition, and low labour costs, emphasizes Rudolf Fürst.
  • Topic: Economics, Bilateral Relations, Labor Issues, European Union, Political stability, Industry
  • Political Geography: Japan, Europe, Asia
  • Author: Sujata Ashwarya
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: Georgetown University Press
  • Abstract: Despite substantial efforts and investments in rebuilding Iraq’s infrastructure since the overthrow of Saddam Hussein in 2003, the country is still struggling to deliver on public services. Years of destruction in conflict, as well as alleged mismanagement and neglect, have taken a heavy toll on the country’s power infrastructure. Severe power cuts and rolling blackouts are endemic in Iraq today. Between 2014 and 2018, Islamic State terrorism inflicted billions of dollars in damage on the already dilapidated electricity infrastructure, causing a cumulative potential and actual loss of a whopping 7GW in generation and transmission capacities.
  • Topic: Economics, Energy Policy, Infrastructure, Business , Conflict, Services, Electricity
  • Political Geography: Iraq, Iran, Middle East
  • Author: Marcin Terlikowski
  • Publication Date: 03-2020
  • Content Type: Special Report
  • Institution: The Polish Institute of International Affairs
  • Abstract: The European Defence Fund (EDF) is the EU’s newly established defence-industrial policy tool. It will enable co-financing from the Union’s budget collaborative research on defence technologies and joint-capability development programmes. Its goal is to strengthen the EU’s defence industry and, thereby, its military capacity. Implemented since 2017 only in a limited form, the EDF is planned to go full-fledged in 2021–2027. Yet, it will not bring the expected results if its budget remains limited and no consensus is found on the issue of the access of non-EU NATO states to the fund.
  • Topic: Defense Policy, Economics, Politics, Military Strategy
  • Political Geography: Europe
  • Author: Marek Wąsiński, Mateusz Piotrowski
  • Publication Date: 03-2020
  • Content Type: Special Report
  • Institution: The Polish Institute of International Affairs
  • Abstract: The coronavirus outbreak is spreading throughout the United States. After its initial underestimation of the threat, the Trump administration has acted to fight against the pandemic, including the introduction of a national emergency. The effectiveness of these actions will be an important factor in whether Trump is re-elected. The limits on social life despite the enormous financial support from the government and the Federal Reserve have dramatically slowed the economy, heading into a recession. Public debt will increase much more rapidly, which may force budget cuts in the coming years.
  • Topic: Economics, Government, Health, Financial Crisis, Health Care Policy, Crisis Management, Donald Trump, Coronavirus
  • Political Geography: North America, United States of America
  • Author: Marcin Andrzej Piotrowski
  • Publication Date: 04-2020
  • Content Type: Special Report
  • Institution: The Polish Institute of International Affairs
  • Abstract: Iran’s official figures on cases and deaths from COVID-19 (the disease resulting from coronavirus, SARS-CoV-2) do not reflect the real scale of the pandemic in that country, which might be among the hardest hit in the world. The pandemic will deepen the economic crisis and disfunction of the state, becoming a challenge to Iran’s ruling elite. The regime might survive thanks to the security apparatus and, in parallel, continue its support of Shia militias in Lebanon, Iraq, and Yemen, and the Syrian government. Only the succession of power after Ali Khamenei will be the real test of the coherence of the Iranian elite, and in case of disruption, it might result in the collapse of Iran’s theocracy.
  • Topic: Security, Foreign Policy, Economics, Government, Health, Coronavirus, Pandemic, Elites
  • Political Geography: Iraq, Iran, Middle East, Yemen, Lebanon, Syrian Arab Republic
  • Author: Michał Wojnarowicz
  • Publication Date: 05-2020
  • Content Type: Special Report
  • Institution: The Polish Institute of International Affairs
  • Abstract: Israel took early preventive measures against the COVID-19 pandemic that contributed to low infection and mortality rates. This allowed lifting the restrictions and restarting the economy at the end of April. The cooperation undertaken with the Palestinian Authority helped limit the spread of COVID-19 across the Palestinian territories. The successful fight against the spread of the coronavirus in Israel has strengthened Prime Minister Benjamin Netanyahu, but the newly earned support may be halted by the impending economic slowdown.
  • Topic: Economics, Government, Coronavirus, Pandemic
  • Political Geography: Middle East, Israel, Palestine
  • Author: Anna Maria Dyner
  • Publication Date: 05-2020
  • Content Type: Special Report
  • Institution: The Polish Institute of International Affairs
  • Abstract: Outside its borders, Russia has military bases in the post-Soviet space and in Syria. The main goal is to increase Russian military security and political influence in countries in which these bases are located. Despite economic difficulties related to the drop in oil and gas prices and the costs of the COVID-19 pandemic, Russia will maintain its network of bases, which it considers an important element of influence.
  • Topic: Security, Foreign Policy, Economics, Military Strategy, Coronavirus
  • Political Geography: Russia, Eurasia
  • Author: Wang Feng
  • Publication Date: 11-2020
  • Content Type: Video
  • Institution: Weatherhead East Asian Institute, Columbia University
  • Abstract: On October 7, 2020, Wang Feng, Professor of Sociology at UC Irvine joined Columbia's Qin Gao, Professor of Social Policy and Social Work and director of the China Center for Social Policy for an event: "Public Transfers and Inequality in China." With expanded fiscal capacity and rising concerns over economic inequality, the Chinese government in the last decade and a half has vastly rebuilt and expanded its social welfare regime. Using the National Transfer Accounts (NTA) methodology and both micro-level survey data and macro-level government statistics, this study examines the distribution of public transfers in education, health care and pension across generations and income groups in 2014 and compare it with those in 2010. While per capita public transfers in absolute terms remained in favor of higher-income groups and the elderly in 2014, as in 2010, the gap in receiving public transfers between the rich and the poor was reduced notably in this short time period. Public transfers also became more progressive in relative terms, with the bottom income group receiving much higher public transfers relative to their per capita household income than the wealthier groups. These results reveal that although the unequal distribution of public transfers continues and it in part results from the fragmented program design and the legacies of socialist inequalities, China’s expanded social welfare programs have contributed to narrowing the vast income inequality in this country.
  • Topic: Economics, Government, Inequality, Welfare
  • Political Geography: China, Asia
  • Author: Ronald Schramm
  • Publication Date: 11-2020
  • Content Type: Video
  • Institution: Weatherhead East Asian Institute, Columbia University
  • Abstract: Ronald Schramm, Visiting Associate Professor of International and Public Affairs, Columbia University Moderated by: Shang-Jin Wei, N. T. Wang Professor of Chinese Business and Economy and Professor of Finance and Economics, Columbia Business School Professor Jin Wei will interview Ron Schramm about new and important developments in China’s financial and economic system since the first edition of Schramm's textbook in 2015 (Routledge/Taylor&Francis): China Macro Finance: A US Perspective. Both new reforms and retrenchments in the Chinese economy will be discussed as well as the fraught economic relationship with the United States. Students and scholars of China will benefit by putting their own research in the context of how far China has come and where it is going in terms of economic and financial reform.
  • Topic: Development, Diplomacy, Economics, Reform, Finance, Business
  • Political Geography: China, Asia, United States of America
  • Author: John Lee
  • Publication Date: 02-2020
  • Content Type: Special Report
  • Institution: Hudson Institute
  • Abstract: The first monograph in this series, China’s Economic Slowdown: Root Causes, Beijing’s Response and Strategic Implications for the US and Allies, examined the structural problems in the Chinese economy that have led to a recent permanent slowdown after three decades of double-digit growth rates. The monograph focused on the political and economic costs of the slowdown and efforts to stabilize an economy that has poured far too much national wealth into commercially unproductive areas. Yet the Communist Party is not passively awaiting an unhappy economic fate in connection with its mounting imbalances and domestic economic dysfunction. In many respects, its leaders have been highly creative in seeking solutions that do not entail a weakening of the party’s hold on economic power. On the contrary, the party has been busily shaping and pursuing grand strategic policies such as the Belt and Road Initiative (BRI) and Made in China 2025 (MIC 2025) to solve or alleviate many of its domestic political-economic problems. This monograph, part two in the series, examines how the US and its allies can confront and counter these Chinese strategies and initiatives. It will do so by taking seriously the challenge they present and suggesting responses that take into account Chinese vulnerabilities and the points of leverage available to the US and its allies. This linking of China’s vulnerabilities and weaknesses, on the one hand, and its ambition and purpose with respect to its outward-focused policies, is essential for effective policy responses. If the domestic is not linked with the external, US policies are much more likely to become complacent, counterproductive, or susceptible to overreaching. In linking analyses of Beijing’s domestic political economy with its external policies, the monograph will challenge some enduring but incorrect grand narratives that play into the hands of the CCP.
  • Topic: Foreign Policy, Economics, Science and Technology, Trade
  • Political Geography: China, Asia
  • Author: John Lee
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Hudson Institute
  • Abstract: Throughout the United States, it is becoming increasingly clear that the Chinese Communist Party (CCP) is exploiting COVID-19 in an effort to reshape the global order and enhance China’s international leadership at the expense of the US. A range of prominent commentators further assert that the Trump administration bears much of the blame for this turn of events. This argument tends to rest on twin assumptions:1 China is winning the battle of narratives when it comes to comparative national competence and its decisiveness in responding to its COVID-19 outbreak. The Trump administration is damaging America’s standing by getting off to a bad start in its response to the pandemic, exposing the underlying weaknesses of American institutions and preparedness for such a crisis. These arguments correctly acknowledge that the global pandemic is occurring within a context of US-China strategic, political, and economic competition and/or rivalry. This is the point of warnings to the administration that there is more at stake than containing and managing the virus, even if that is the immediate priority.
  • Topic: International Relations, Foreign Policy, Economics, Health, National Security, COVID-19
  • Political Geography: China, East Asia
  • Author: Eric B. Brown, Patrick M. Cronin, H.R. McMaster, Husain Haqqani, Aparna Pande, Satoru Nagao, John Lee, Seth Cropsey, Peter Rough, Liselotte Odgaard, Blaise Misztal, Douglas J. Feith, Michael Doran
  • Publication Date: 05-2020
  • Content Type: Special Report
  • Institution: Hudson Institute
  • Abstract: The outbreak of the novel coronavirus has introduced a series of new stresses and factors in the US-China relationship. While the world has struggled to contain the pandemic and its tragic repercussions, the People’s Republic of China has used the outbreak to launch a global campaign of misinformation, further its economic coercion through the Belt and Road Initiative, and continue military expansion efforts in the South China Sea. China’s attempt to exploit the pandemic for political, strategic, and economic gain is problematic in the current environment, yet it is consistent with, and a continuation of, China’s long-term strategy. This report offers a global survey and assessment of attempts by the Chinese Communist Party (CCP) to expand its influence, including by exploiting the pandemic. As the United States and its allies focus on combatting the virus and salvaging their economies, there is an opportunity to better understand China’s strategy and develop a unified response.
  • Topic: International Relations, Foreign Policy, Economics, Strategic Competition, COVID-19
  • Political Geography: China, South Asia, Asia, North America, United States of America
  • Author: Harold Furchtgott-Roth, Kirk R. Arner
  • Publication Date: 06-2020
  • Content Type: Working Paper
  • Institution: Hudson Institute
  • Abstract: American businesses and consumers have an unequal relationship. Consumers generally are and should be sovereign because a consumer—not a seller, nor a third party, nor even the government—usually decides what to purchase. Consumers must like a business to buy its product or service. If a business has poor service, sales will suffer. And if a business is tainted by scandal, customers will flee. As courtiers of purchasing power, businesses go on bended knee to pay homage to the consumer. Typically, a business need not like a consumer to sell products or services. In most lines of business, a seller must sell to anyone willing to pay. And although there are types of businesses where a seller can legally refuse a sale, most rational sellers seek as many customers as possible.
  • Topic: Economics, Government, Sovereignty, Regulation
  • Political Geography: Global Focus
  • Author: John Lee
  • Publication Date: 06-2020
  • Content Type: Special Report
  • Institution: Hudson Institute
  • Abstract: This report makes the following arguments: From Taiwan’s perspective, the greater its economic presence and importance to the world, the better positioned it is to reduce its dependency on China and maintain its autonomy. This also serves US interests. From the US perspective, deepening the economic relationship with Taiwan in strategic ways will assist it in achieving greater economic distance from China and reducing the extent to which China can capture and dominate global supply and value chains in the future. The US and Taiwanese economies are largely complementary, and this can become even more so. Thus, a deeper bilateral economic relationship will be generally consistent with domestic economic objectives, such as prioritizing high-value job creation and preventing high-value supply chains from remaining in China or leaving the United States. The report offers recommendations to: help prevent the hollowing out of Taiwan’s competitive strengths; help Taiwan broaden and deepen its participation in the regional and international economic space, which is currently being narrowed by China; assist with Taiwan’s desire to lower dependency on China-based supply chains, especially with respect to high-value-added processes; encourage more bilateral investment, intra-industry relations and firm-to-firm activity between the United States and Taiwan.
  • Topic: International Relations, Foreign Policy, Economics, Domestic Policy
  • Political Geography: China, Taiwan, Asia
  • Author: Thomas J. Duesterberg
  • Publication Date: 07-2020
  • Content Type: Special Report
  • Institution: Hudson Institute
  • Abstract: The imperative to return supply chains to the United States for products important to national defense, medical security, and competitiveness in key industrial and technology sectors is not new. The explosive growth of the Chinese manufacturing sector, its mercantilist challenge to the world trading system, and its impact on jobs and industrial leadership in the United States is well known and well documented. This challenge has prompted new research and policies to help reverse the erosion of US supply chains. US technology leadership has been undermined by China’s forced technology transfer, theft of intellectual property, and subsidization of traditional and new higher technology sectors. In turn, the loss of global markets and US manufacturing jobs have resulted in social problems of increasing devastation to communities in industrial areas. China’s economic growth depends, in a historically unprecedented way, on its export model and the suppression of domestic consumption. This results in a cycle of overproduction, expansion of external spheres of economic influence, and dumping of products abroad. In recent years, the United States has begun to challenge the Chinese model. However, much work remains to be done to accomplish the goal of ending mercantilist practices, establishing a level playing field for US producers, and reinvigorating domestic production. Critical supply chains for US national defense and high technology leadership have become overly dependent on China and other foreign sources. The vulnerability of supply chains has been demonstrated by interruptions in supply of key materials by both natural disasters and political decisions such as Beijing’s cutoff of rare earth metals a decade ago. More recently, in July 2020, the production of critical personal protective equipment was interrupted by massive flooding in the interior of China. Beyond Beijing’s unfair practices, China is a continental economy with the ambition to displace the United States as the leader in the global economy of the 21st century and has the economies of scale to represent a serious, long term threat to US leadership and markets. The COVID-19 pandemic has accelerated these preexisting trends and underscores the importance of bringing industrial supply chains, including medical products, back to the United States. First, the cut-off of medical supplies, not just from China but from Europe and other allies, brought the vulnerabilities of relying on outside sourcing into clearer and more immediate focus. Ninety countries blocked the exports of medical products during the early months of the pandemic. Second, border closures around the world, even within the European Union (EU), added to the worries about supply chain interruptions, including for workers and logistics. Seventy percent of the world’s points of entry restricted foreign travelers at some point as the pandemic grew. Third, border closures and supply chain interruptions increased tensions between nations, especially between the United States and China, which was criticized for its suppression of information at the start of the pandemic. Beijing’s brazen imposition of a new security law in Hong Kong while the world was preoccupied by the pandemic further eroded its global standing, especially in Europe. Fourth, the economic collapse due to the pandemic response again focused attention on the need to create more domestic jobs, including those in the hard-hit industrial sector. Finally, all these developments led allies such as the United Kingdom, Japan, and the EU to advance new policies meant to bring production back to home territories. These trends support initiatives to increase the resiliency of domestic production, even beyond the parameters of defense and medical security.
  • Topic: Economics, Science and Technology, Manufacturing, Trade, COVID-19, Supply Chains
  • Political Geography: China, Asia, North America, United States of America
  • Author: Liselotte Odgaard
  • Publication Date: 03-2020
  • Content Type: Special Report
  • Institution: Hudson Institute
  • Abstract: This report addresses China’s approach to development in Central Asia, Southeast Asia, East Africa, and the Arctic. China has worked through the Shanghai Cooperation Organization to meet Russian demands for continued regional primacy in Central Asia, helping Beijing foster economic and social dominance, access strategic energy resources, and treat the Uyghur minorities as a problem of terrorism rather than a development issue. In Southeast Asia, China has worked through the Association of South-East Asian Nations (ASEAN) to meet regional demands for soft and hard infrastructure to legitimize China’s growing strategic presence. China is therefore able to undermine the regional economic and security foothold of the US alliance system and challenge the interpretations of the Law of the Sea that legitimizes the military presence and activities of extra regional powers. In East Africa, China has cooperated with the African Union (AU) and the East African Intergovernmental Authority on Development (IGAD) to address regional demands for hard and soft infrastructure without political conditions, to link antipiracy problems to problems of poverty, and to mediate local civil wars. This has helped China establish an economic and strategic foothold at the intersection of the Indian Ocean and Middle East, projecting power far from its shores. In the Arctic, China has established research stations that function as both environmental research laboratories and military surveillance stations.
  • Topic: International Relations, Economics, Health, Foreign Aid, Regulation, Trade
  • Political Geography: China, Asia
  • Author: Husain Haqqani, Aparna Pande
  • Publication Date: 05-2020
  • Content Type: Special Report
  • Institution: Hudson Institute
  • Abstract: The world’s most populous region, South Asia, with almost 1.9 billion people living in eight countries, has so far had fewer reported infections and fatalities per capita from the novel coronavirus than projected in early models. However, the region is unlikely to escape the widespread disruption and damage felt across the globe, and its worst health-care crisis may be yet to come. In South Asia, as in other regions, the COVID-19 pandemic is testing the capacities of states to provide security and effective healthcare and to maintain essential services. It is also having an impact on fragile democratic institutions and societal bonds, in addition to putting considerable strains on the economy. [...] Following is a country-by-country report, with inputs from experts on the ground, on the coronavirus pandemic’s impact in South Asia and its human, economic, and political consequences.
  • Topic: Economics, Health, Crisis Management, COVID-19
  • Political Geography: Pakistan, China, South Asia, India, Asia, Sri Lanka
  • Author: Brendan Brown
  • Publication Date: 10-2020
  • Content Type: Policy Brief
  • Institution: Hudson Institute
  • Abstract: This policy study is based on the newly released book, Europe’s Century of Crises under Dollar Hegemony: A Dialogue on the Global Tyranny of Unsound Money, by Brendan Brown and Philippe Simonnot, published by Palgrave Macmillan. One hundred years ago, the United States emerged from the First World War and its immediate aftermath, including the Spanish flu pandemic, as the global monetary hegemon, exercising immense power over the Old Continent. This new power quickly became the source of huge instability in Europe, culminating in the collapse of the Weimar Republic. After World War II, the Bretton Woods system set new contours for US monetary hegemony, ultimately resulting in the great economic crisis of 1973–75. This woeful history continues to the present day: Dollar hegemony has not been a force for good. It could have been different. The United States and Europe would both have gained from a US hegemony based on sound money principle. Instead, the guiding characteristic of US monetary power has been inflation, especially around election time. According to the doctrine made notorious by Treasury Secretary John Connally, who served under President Nixon, “the dollar is our currency but your problem.” The US monetary regime’s further lurch toward fundamental unsoundness during the COVID-19 pandemic is not getting the new century of US monetary hegemony off to a new start. The “known unknown” is whether forces will emerge in Europe that will again challenge US inflationary dominance, as occurred under Germany’s leadership in the 1970s. Could high inflation in the post-pandemic US economy cause US monetary hegemony over Europe to crumble?
  • Topic: Economics, International Trade and Finance, History, Monetary Policy, Hegemony, Transatlantic Relations, COVID-19
  • Political Geography: Europe, United States of America
  • Author: Fabio Figiaconi
  • Publication Date: 04-2020
  • Content Type: Commentary and Analysis
  • Institution: Italian Institute for International Political Studies (ISPI)
  • Abstract: In the last decade, the Mekong Region (MR) — that is, the area crossed by the Mekong River and encompassing Myanmar, Thailand, Laos, Cambodia and Vietnam — has become central to the strategies of major global powers due to a series of economic and geopolitical factors. The most prominent are the region’s growing importance in global trade routes, its geographical proximity to major hotspots (such as the South China Sea and the Malacca Strait) and China’s growing regional activism. The growing importance of the MR in global dynamics spurred several actors to develop specific strategies. While liberal democracies such as the United States (US) and Japan both created regional fora for policy discussions as well as development funds, China increased its presence by offering loans, constructing infrastructures and creating a specific regional institution. Due to the mounting competition, the MR is set to become a major geopolitical hotspot in the Indo-Pacific region.
  • Topic: Economics, Geopolitics, Strategic Competition
  • Political Geography: Vietnam, Cambodia, Thailand, Laos, Myanmar, Indo-Pacific
  • Author: Fabio Figiaconi, Claudia Adele Lodetti
  • Publication Date: 07-2020
  • Content Type: Commentary and Analysis
  • Institution: Italian Institute for International Political Studies (ISPI)
  • Abstract: According to the latest World Bank’s “Global Economic Prospects” publication, Covid-19 pandemic will have a negative impact on East Asia causing a -1,2% GDP’s reduction in 2020, that is the region’s first recession since 1998’s Asian financial crisis, while China is expected to slow to 1% this year. Among the various consequences that may materialise, the report highlights the disruption of the global and regional value chains. In addition, as stated by UNCTAD World Investment Report 2020 Foreign Direct Investments’ (FDIs) flows are expected to decrease globally by 40% in 2020 and are projected to decrease by a further 5 to 10% in 2021. This scenario would be detrimental for East Asia’s economies and especially for the network of Special Economic Zones (SEZs) located there, which have had and continue to play a fundamental part in the region’s growth. SEZs are intended as delimited areas within a country’s national borders where businesses enjoy a more favourable regulatory and fiscal regime than that of the national territory, with the aim to draw in FDIs, boost exports, increase trade balance and alleviate unemployment.
  • Topic: Economics, Geopolitics, Special Economic Zones
  • Political Geography: Asia, Southeast Asia
  • Author: Alessia Melcangi
  • Publication Date: 07-2020
  • Content Type: Commentary and Analysis
  • Institution: Italian Institute for International Political Studies (ISPI)
  • Abstract: After an uncertain political transition following the 2011 revolts, Egypt seems ready to reshape its geopolitical role in the Mediterranean area and fulfil its geostrategic goals, always maintaining their national security principle to be an essential objective of its domestic and foreign policy. The two main closely and interconnected scenarios, where the country’s strategic ambitions are projected, move from Libya to the contested waters of the Eastern Mediterranean. In particular the latter represents an area that, in recent years, has become a hotspot for the global energy market due to huge gas-field discoveries. It is enough to imagine how the fight for the control of these resources are shaping the region, elevating it to a potential geostrategic game-changer for the coastal countries such as Egypt.
  • Topic: Economics, Natural Resources, Geopolitics, Exports
  • Political Geography: Middle East, Egypt, Mediterranean
  • Author: Ehud Eiran, Aviad Rubin
  • Publication Date: 07-2020
  • Content Type: Commentary and Analysis
  • Institution: Italian Institute for International Political Studies (ISPI)
  • Abstract: Although the Mediterranean was traditionally an afterthought in Israeli geopolitical thinking, the 2000s recorded a shift: Israel is turning to the sea. The Mediterranean is capturing a growing role in Israeli geostrategic thinking. This is in large part the result of the discovery and development of gas in the Mediterranean Sea beginning in the late 1990s. Developed rather quickly, these gas reserves made Israel energy self-sufficient, a significant geo-strategic transformation. Prior to these discoveries, energy was a serious concern. The state had no energy resources, and for decades found it challenging to secure supply in the face of Arab hostility. With the gas discoveries, Israel gained not only energy independence, but also an economic and political tool. Israeli agreements to export gas to Egypt, Jordan and the Palestinian Authority gave Israel important leverage. The gas discoveries in the Mediterranean further offered the possibility for export to Europe if indeed Israeli-Greek–Cypriote designs to build an undersea pipe will materialize. The new maritime energy source contributed to the expansion of the Israeli navy. Once a junior player in the Israeli armed forces, in 2013 the navy was entrusted by the government to protect the gas depots, despite the fact that they are held in private hands (including by non-Israeli corporations) and are outside of Israel’s territorial waters. The new task, alongside the expansion of the submarine flotilla (probably as part of a future nuclear deterrent against Iran), awarded the fleet a more important role in Israel’s national security establishment and resource allocation. It also allowed Israel to use the force for international cooperation and military diplomacy in the region. This turn to the sea also contributed to an emerging quasi-alliance with Cyprus and Greece, which includes, among many other areas, the possible joint gas export project, military exercises, and bi-annual trilateral summits between these countries’ leaders. Like its regional allies, Israel is affected by growing Chinese interest in the Mediterranean. Chinese corporations contracted the expansion of Israel’s two largest ports, Ashdod and Haifa. The latter was substantial enough to irk the US, whose navy used the Haifa port in the past for re-supply. Israeli and Chinese actors are in early phases of developing a Chinese funded, or owned, high speed train from Israel’s Red Sea port in Eilat to the Mediterranean port of Ashdod, that will serve as an alternate route for the Suez Canal portion of Beijing’s Belt and Road Initiative (BRI).
  • Topic: Economics, Energy Policy, Geopolitics, Refugees
  • Political Geography: Middle East, Israel, Palestine, Mediterranean
  • Author: Nael Shama
  • Publication Date: 07-2020
  • Content Type: Commentary and Analysis
  • Institution: Italian Institute for International Political Studies (ISPI)
  • Abstract: After many years of being the Middle East’s backyard, the Mediterranean has over the past decade become its flashpoint, hosting a toxic mishmash ofmilitarized conflicts, border disputes and energy competitions. If these divisions are not contained using constructive diplomacy and viable multiparty agreements, regional instability will continue to pose a threat to all Mediterranean littoral states.
  • Topic: Economics, Natural Resources, Maritime, Conflict, Geography
  • Political Geography: Middle East, Mediterranean
  • Author: Dirk Schoenmaker
  • Publication Date: 07-2020
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: Governments and companies can reinforce each other in their pursuit of sustainable development, which is based on three pillars: economic, social and environmental. An impact economy, in which governments and companies balance profit and impact, is best placed to achieve the United Nations sustainable development goals.
  • Topic: Economics, Environment, United Nations, Governance, Sustainable Development Goals, Business , Private Sector
  • Political Geography: Global Focus
  • Author: Zsolt Darvas, Zoltan Schepp
  • Publication Date: 04-2020
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: This paper presents unprecedented exchange rate forecasting results based upon a new model which approximates the gap between the fundamental equilibrium exchange rate and the actual exchange rate with the long-maturity forward exchange rate.
  • Topic: Economics, Governance, Global Political Economy, Exchange Rate Policy
  • Political Geography: Global Focus
  • Author: Marta Dominguez-Jimenez, Niclas Poitiers
  • Publication Date: 02-2020
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: Most foreign direct investment into Russia originates in the European Union: European investors own between 55 percent and 75 percent of Russian FDI stock. This points to a Russian dependence on European investment, making the EU paramount for Russian medium-term growth. Even if we consider ‘phantom’ FDI that transits through Europe, the EU remains the primary investor in Russia. Most phantom FDI into Russia is believed to originate from Russia itself and thus is by construction not foreign.
  • Topic: Economics, Energy Policy, Foreign Direct Investment, Governance, Sanctions, European Union, Global Political Economy
  • Political Geography: Russia, Europe
  • Author: Moosa Elayah
  • Publication Date: 07-2020
  • Content Type: Special Report
  • Institution: Al Jazeera Center for Studies
  • Abstract: The longer the pandemic lasts, with its detrimental financial and social effects, the higher the chances for terrorist groups to increase their influence in Yemen, Iraq, and Syria and spread this to neighbouring countries.
  • Topic: Economics, Conflict, Pandemic, COVID-19
  • Political Geography: Iraq, Middle East, Yemen, Syria
  • Publication Date: 06-2020
  • Content Type: Commentary and Analysis
  • Institution: Future for Advanced Research and Studies (FARAS)
  • Abstract: Sales of medical masks, gloves, adhesive tapes and other protective equipment have soared in the Middle East after the spread of COVID-19 and especially after the WHO raised the virus global threat assessment to its “highest level” on February 29. This led to an increase in demand for masks to a degree of “obsession" at times, raising regional concerns after the increase in its price along with risking its supply and the formation of a parallel market. Although the subject of medical masks may fall under public health matters, measures taken to address its economic use actually have to do with the adopted governmental policies to deal with fighting the pandemic on state levels. These policies include, but are not limited to, enhancing healthcare infrastructure, monopoly prevention, consumer protection, relaunching inactive factories specifically after the disruption of imports from China as one of the largest global masks suppliers.
  • Topic: Economics, Health, COVID-19
  • Political Geography: Middle East, North Africa
  • Author: Clara Gillespie
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Korea Economic Institute of America (KEI)
  • Abstract: Under President Moon Jae-in, South Korea has set an ambitious target to move from being “first in the world” in the race to 5G to “first in global quality.” Yet, while a range of industry and government stakeholders are investing heavily in making this vision a reality, a number of factors are likely to weigh on whether or not these efforts yield significant results. These include uncertainties about how to further accelerate development in ways that lead to better returns on investments, and about how to navigate complex geopolitical considerations, including ongoing debates about Huawei’s involvement in 5G network infrastructure. Each of these areas will, in turn, require domestic stakeholders to make complex assessments about potential tradeoffs and risks. Thus, this paper assesses South Korea’s emerging 5G era at the one-year mark, and highlights key successes, setbacks, and ongoing challenges. Building on these findings, the paper concludes by offering several potential scenarios for future development, and suggestions for ways forward.
  • Topic: Economics, Science and Technology, 5G
  • Political Geography: Asia, South Korea
  • Author: Jai Chul Heo
  • Publication Date: 07-2020
  • Content Type: Policy Brief
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: China is actively building Network Power in economic and traditional security and non-traditional security areas, while in some cases maximizing its own interests by using the Network Power already formed. In particular, China is building Collective Power at a rapid pace in significant areas. China also actively participated in existing networks and established Positional Power by preoccupying important positions. However, China’s Network Power still seems to have a long way to go in terms of Programming Power to build new systems, unlike Collective or Positional Power. What is notable in the process of analyzing China’s Network Power is that competition between the U.S. and China is fierce over Network Power.
  • Topic: Security, Diplomacy, Economics, Power Politics
  • Political Geography: China, Asia, United States of America
  • Author: Bama Dev Sigdel
  • Publication Date: 04-2020
  • Content Type: Policy Brief
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: The main objective of this article is to assess the effect of the Belt and Road Initiative (BRI) in terms of economic interrelations between Asian countries mainly China, Korea, India and Nepal. China’s Belt and Road Initiative (BRI) is one of the most ambitious economic strategies in modern times that alters the economic, political and social relationship between Eastern and Western societies. It not only improves transport networks and facilitates trade, but also raises GDP of many economies. For China, BRI manifests its intention to become the next global power through bigger market access and economic opportunities. Although South Asia is less developed economically, it has high strategic utility for the BRI, which has drawn attention from China to deepen its relations in the region. On the other hand, South Korea has also emerged as a soft power in Asia. It has been playing a significant role in Asia by contributing the majority of its aid, i.e., 35 per cent in Asian economies and a major share of its FDI, i.e., 34.1 per cent. With the rapidly increasing growth of South Korea, it also has a growing relationship with ASEAN and other South Asian economies such as India to reduce its dependence on traditional trade allies. Moreover, for least developed economies like Nepal, the BRI can bring improved infrastructure, needed technology, managerial talents and greater connectivity to the world. South Korea can yield higher benefits through its relation with South Asia and especially Nepal through expansion of export and market access, access to cheap workable manpower to cope with its rising aging population, and less dependence on traditional allies through its investment in South Asian region.
  • Topic: International Relations, Economics, Economy, Belt and Road Initiative (BRI)
  • Political Geography: China, South Asia, Asia, South Korea, Nepal
  • Author: Nidal Othman
  • Publication Date: 07-2020
  • Content Type: Special Report
  • Institution: Moshe Dayan Center for Middle Eastern and African Studies
  • Abstract: 96% of the businesses in Arab society are small and miniature businesses, most of which are not defined as "essential enterprises". As a result, they were shut down during part of the Corona crisis. The model of distance working and working from home is not common in Arab society. Only a miniscule proportion of Arab businesses have the potential to operate in this mode and as a result the Corona crisis took a heavy toll on businesses in Arab society. The government made state-guaranteed loans available to small and medium-sized businesses; however, the conditions for eligibility were difficult to fulfil for Arab-owned businesses. Most of the loan applications were rejected, and businesses that managed to meet the conditions were awarded much smaller loans than they had requested. Their financial distress has led many business owners to take out gray market loans at exorbitant interest rates. It is recommended that an interministerial forum be created with representatives of the Ministry of Internal Security, the Ministry of Welfare and the Ministry of Economy in cooperation with the Committee of Arab Mayors, with the goal of keeping Arab business owners from entering a vicious circle of crime and violence as a result of the debt they have been forced to take on. Arab business owners need to become organized, whether at the national or local level.
  • Topic: Economics, Business , Coronavirus, COVID-19
  • Political Geography: Middle East, Israel, Palestine
  • Author: Rawi Abdelal, Aurélie Bros
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: Institut français des relations internationales (IFRI)
  • Abstract: Sanctions have become the dominant tool of statecraft of the United States and other Western states, especially the European Union, since the end of the Cold War. But the systematic use of this instrument may produce unintended and somewhat paradoxical geopolitical consequences. The sanctions imposed on the Islamic Republic of Iran and the Russian Federation in the field of energy are particularly illustrative of this phenomenon.
  • Topic: Economics, Energy Policy, Sanctions, Geopolitics, Secondary Sanctions, Transatlantic Relations
  • Political Geography: Russia, Iran, Middle East, North America, United States of America
  • Author: Jihad Yazigi
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: The already bleak prospects of the Syrian economy have worsened in recent months with the Lebanon crisis, the enactment of the Caesar Act and now the coronavirus pandemic. This paper examines their impact on the Syrian economy and the population at large. While the cumulative impact is hard to assess at this stage, Syria’s population will remain heavily dependent on the international humanitarian effort. The future of this effort will itself depend on major donor countries whose own economies are likely to emerge weakened from the coronavirus pandemic.
  • Topic: Economics, Public Health, Humanitarian Crisis, Pandemic, COVID-19
  • Political Geography: Middle East, Lebanon, Syria
  • Author: Sami Halabi
  • Publication Date: 06-2020
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: Facing an economy in free-fall, the Lebanese government has finally adopted a financial recovery plan that it has sent to the IMF and international donors. This paper argues that the plan fails to introduce strong accountability measures to address rampant corruption and mismanagement and does not tackle widespread inequality which could be done through a better distribution of losses and the introduction of more progressive taxation. Despite the government’s stated promise to “protect the poorest segments of the population from the dire consequences of the crisis”, the paper expects the plan to inevitably harm Lebanon’s poorest as well as its middle class.
  • Topic: Economics, Financial Crisis, Governance, Recovery
  • Political Geography: Middle East, Lebanon
  • Author: Ismael Sheikh Hassan
  • Publication Date: 09-2020
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: Lebanon is facing an unprecedented crisis with financial and economic collapse, lack of political trust, institutional deadlock, health crisis, and environmental degradation, to name a few. To face these challenges, the government should undertake a reform plan that addresses key priority areas to restore trust and salvage the country. We’ve asked experts to give their views about what they see as essential reforms in each area.
  • Topic: Economics, Financial Crisis, Reform
  • Political Geography: Middle East, Lebanon
  • Author: Joyce Karam, Sawsan Abdulrahim, Noof Assi
  • Publication Date: 08-2020
  • Content Type: Video
  • Institution: Middle East Institute (MEI)
  • Abstract: Protests in Iraq and Lebanon have drawn global attention as protestors advocate for political and economic reform and an end to corruption, especially in the wake of the Beirut blast and Lebanon’s disaster response. These countries also face economic crisis and socio-political challenges relating to the millions of refugees and IDPs within their borders and the lack of sustainable policies to address displaced people’s needs. In Lebanon and Iraq, refugees and IDPs face discrimination and lack of access to educational and public health resources in addition to the widespread economic pain and disenfranchisement that these countries protest movements aim to confront. How have refugees in these countries been active in or left out of these movements? How can access gaps and discrimination be overcome to integrate refugee rights into these protest movements? How do protest movements reflect a desire to integrate refugees and IDPs into the social fabric of these countries?
  • Topic: Economics, Politics, Reform, Refugees, Displacement, Protests
  • Political Geography: Iraq, Middle East, Lebanon
  • Author: Suzanne Maloney, Alex Vatanka, Aleksi Aleksishvili, Rauf Mammadov
  • Publication Date: 04-2020
  • Content Type: Video
  • Institution: Middle East Institute (MEI)
  • Abstract: The economic toll of COVID-19 around the world has been significant and the impact of this crisis will reverberate for the next few years. Iran is among the hardest hit economies but the fallout is also already felt among Iran’s immediate neighboring states, including the countries of South Caucasus and the Caspian Basin. With US sanctions severely limiting its international trade, Tehran has in recent years banked on trade with immediate neighbors as a stopgap remedy to its economic needs. This policy of prioritizing trade and other economic ties with immediate neighbors is now under even more pressure due to COVID-19. While Iran is expected to experience a sharp economic contraction in 2020, economic growth forecasts have also been cut in neighboring Caucasus states, requiring swift and decisive action from leaders and international partners. The Middle East Institute (MEI) will bring together a panel of experts to explore the economic impacts of COVID-19 on Iran, the South Caucasus and the question of regional economic cooperation and integration. Besides looking at what has driven Iran’s neighborhood policy in recent years, and how it is in danger of crumbling due to COVID-19 restrictions, the panel will focus on the specific case of the energy sector where regional integration was moving ahead, albeit slowly. Meanwhile, the role played by third-parties – including Russia and the US - will also be tackled by the panelists as they reflect on Iran-South Caucasus economic connections.
  • Topic: Economics, Sanctions, Trade, COVID-19
  • Political Geography: Iran, Caucasus, Caspian Sea
  • Author: Alex Vatanka, Amin Tarzi, Laila Bokhari, Madiha Afzai, Fatemeh Aman
  • Publication Date: 03-2020
  • Content Type: Video
  • Institution: Middle East Institute (MEI)
  • Abstract: As the United States continues to engage in peace talks with the Taliban, even as Washington considers its future military presence in Afghanistan, the country’s uncertain future provides an opportunity for regional power competition. Recent developments have laid the groundwork for coordination between Iran and Russia in this space, a cooperation which has implications for Iran’s rivalry with Pakistan. At stake in this interplay of regional interests are long-term geopolitical, military and economic interests that can be shaped for years to come. How might Iran approach the divergent and common interests of Iran, Russia and Pakistan in Afghanistan? What are Iran’s priorities, and where might opportunities emerge for cooperation or conflict? How might Iran balance these competing interests, and what will be the impact on the ground in Afghanistan? The Middle East Institute (MEI) is proud to host a group of experts to address these questions and more.
  • Topic: Diplomacy, Economics, Military Strategy, Geopolitics, Negotiation, Strategic Interests
  • Political Geography: Pakistan, Afghanistan, Russia, Iran, United States of America
  • Author: Marcus Hellyer
  • Publication Date: 06-2020
  • Content Type: Special Report
  • Institution: Australian Strategic Policy Institute
  • Abstract: This report proposes a way for the Australian Government to acquire maritime war-fighting capability quickly and affordably while promoting Australian industry and the continuous Naval Shipbuilding Program. It would deliver substantial new maritime capability in the next few years, in contrast to the current investment program, and it would introduce a transformative force structure for the price of one or two traditional large multi-role platforms. This would address key challenges faced by the ADF by enabling it to transition more quickly to a force structure that better supports operating concepts employing distributed lethality and greater use of autonomous systems and human–machine teaming.
  • Topic: Defense Policy, Economics, National Security, Military Strategy, Navy
  • Political Geography: Australia
  • Author: Aleś Alachnovič, Andrzej Raczko, Izabela Styczynska, Jarosław Neneman, Kateryna Karunska, Krzysztof Głowacki, Pawel Swianiewicz, Sierž Naŭrodski
  • Publication Date: 04-2020
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: Belarusian economy has been stagnating in 2011-2015 after 15 years of a high annual average growth rate. In 2015, after four years of stagnation, the Belarusian economy slid into a recession, its first since 1996, and experienced both cyclical and structural recessions. Since 2015, the Belarusian government and the National Bank of Belarus have been giving economic reforms a good chance thanks to gradual but consistent actions aimed at maintaining macroeconomic stability and economic liberalization. It seems that the economic authorities have sustained more transformation efforts during 2015-2018 than in the previous 24 years since 1991. As the relative welfare level in Belarus is currently 64% compared to the Central and Eastern Europe (CEE) countries average, Belarus needs to build stronger fundaments of sustainable growth by continuing and accelerating the implementation of institutional transformation, primarily by fostering elimination of existing administrative mechanisms of inefficient resource allocation. Based on the experience of the CEE countries’ economic transformation, we highlight five lessons for the purpose of the economic reforms that Belarus still faces today: keeping macroeconomic stability, restructuring and improving the governance of state-owned enterprises, developing the financial market, increasing taxation efficiency, and deepening fiscal decentralization.
  • Topic: Economics, Governance, Economic Growth, Trade
  • Political Geography: Eurasia, Belarus