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8802. Climate and Environmental Security in the Democratic Republic of Congo
- Author:
- Kira Vinke, Loyle Campbell, Dana Schirwon, Katongo Seyuba, Florian Krampe, Hafsa Maalim, and Guélor Isulu Mbungwal
- Publication Date:
- 04-2023
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Climate change is compounding the Democratic Republic of Congo’s tangle of problems – a long-running civil war, weak governance, and deeply entrenched poverty and inequality. The country’s future is of global significance: its vast Congo-basin rainforest is a crucial carbon sink and a haven of biodiversity. DRC’s hydropower potential and its deposits of copper and cobalt could enable the energy transition, but a green resource looms over development prospects. Germany will need flexible and well-aligned national strategies to effectively support peace, human progress, and environmental protection in the DRC while putting the focus on the needs of marginalized populations.
- Topic:
- Security, Foreign Policy, Climate Change, Poverty, Inequality, and Hydropower
- Political Geography:
- Africa and Democratic Republic of Congo
8803. Migration in the Context of Climate Foreign Policy
- Author:
- Kira Vinke, Hannes Einsporn, Dana Schirwon, and Mahalia Thomas
- Publication Date:
- 04-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Migration, displacement and resettlement in the context of climate change are not distant scenarios of the future, but are now materializing along increasingly severe extreme events and slow-onset degradation. In view of accelerating global warming and the danger of crossing tipping points in the Earth system, forward-looking climate foreign policy and development policy should increasingly focus on severe climate impacts.
- Topic:
- Foreign Policy, Climate Change, Development, and Migration
- Political Geography:
- Germany and Global Focus
8804. Double-Edged Sword: How to Engage Returnee Networks in Migrant Reintegration
- Author:
- Victoria Rietig and Sophie Meiners
- Publication Date:
- 04-2023
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Migrants increasingly have a say in migration policies. Diaspora and migrant associations rightfully step into the spotlight to bring their much-needed perspectives to policy development. But the work of associations of returned migrants has stayed in the shadows despite their having firsthand experiences that can guide the design of reintegration policies.
- Topic:
- Migration, Networks, Reintegration, and Immigration Policy
- Political Geography:
- Africa, Middle East, and Eastern Europe
8805. After Ostpolitik: A New Russia and Eastern Europe Policy Based on Lessons from the Past
- Author:
- Stefan Meister and Wilfried Jilge
- Publication Date:
- 04-2023
- Content Type:
- Commentary and Analysis
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The large-scale Russian war of aggression against Ukraine that began in February 2022 demonstrates both the failure of Germany’s cooperative Ostpolitik of the last 30 years and the need for energy policy disentanglement. Russia has become the greatest security risk in Europe. To safeguard national and European security, Germany’s ruling coalition must learn lessons from the past, initiate a radical new beginning in Germany’s policy on Russia and Eastern Europe, and assume a leadership role in Europe.
- Topic:
- Security, Foreign Policy, Governance, International Order, and Russia-Ukraine War
- Political Geography:
- Russia, Central Asia, and Ukraine
8806. Leveraging Islam and Internal Conflict: Strategies and Consequences in Russia’s War Against Ukraine
- Author:
- Miriam Katherine Heß
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Assessment of the president of Chechnya, Ramzan Kadyrov; the inner-Chechen conflict; and Chechen fighters on both sides in Russia’s war against Ukraine reveals how internal conflicts become crucial for international structures and how transnational dynamics – such as foreign fighter flows – pose challenges to the interplay of national and international law. By anticipating the effects of the Russian invasion of Ukraine beyond the Zeitenwende in Germany and Europe, policy-makers will increase readiness and preparedness for the ongoing but also post-war period.
- Topic:
- Islam, Conflict, Foreign Fighters, and Russia-Ukraine War
- Political Geography:
- Russia and Central Asia
8807. Toughening Financial Sanctions on Russia: Enforcing Energy Sanctions and Reducing Shadow Reserves Effectively
- Author:
- Guntram Wolff, Benjamin Hilgenstock, and Elina Ribakova
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Financial sanctions are key in enforcing restrictions on Russian energy exports – in particular the G7/EU oil price cap regime –, due to financial institutions’ critical role in cross-border transactions. While the energy sanctions regime is having an impact on export earnings and budget revenues, evidence for potentially widespread violations is also emerging. Moreover, favorable external dynamics have allowed Russia to accumulate substantial assets abroad – “shadow reserves” –, which need to be kept out of reach of the regime.
- Topic:
- Governance, Sanctions, European Union, International Order, Energy, Geoeconomics, and Russia-Ukraine War
- Political Geography:
- Russia and Eurasia
8808. Mobilizing Social Media Influencers: A European Approach to Oversight and Accountability
- Author:
- Paloma Muñoz Quick
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- To build a robust information space that is resilient toward the dangers of mis- and disinformation, European policy-makers must recognize the role of influencers and their messages. The EU’s Digital Services Act aims to establish accountability and transparency in online platforms. It includes civil society as an essential component of achieving that goal. Through collaborating with independent platform councils and promoting radical transparency, influencers can contribute to combating disinformation and ensuring that public values are upheld in online governance.
- Topic:
- Science and Technology, Social Media, Accountability, and Oversight
- Political Geography:
- Europe
8809. Coping with Technology Sanctions in the Russian Financial Sector
- Author:
- Alexandra Prokopenko
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The Russian financial sector has taken a double hit from sanctions – both in infrastructure (affecting financial transactions) and in technology (affecting the hardware and software). Infrastructural sanctions imposed by Western countries in reponse to the war on Ukraine (de-SWIFTing, overcompliance, and breaking of correspondent relationships) affected their operational activity. Moreover, the Russian government banned the use of foreign software and equipment imports, which has been a drag on business development. The financial sector was able to withstand the first shock. However, the most recent restrictions on access to advanced technologies, especially from the US and the EU, will lead to import substitution based on technologies of yesterday.
- Topic:
- Science and Technology, Governance, Sanctions, European Union, International Order, and Russia-Ukraine War
- Political Geography:
- Russia and Eurasia
8810. Tech Sanctions Against Russia: Turning the West’s Assumptions Into Lessons
- Author:
- Alena Epifanova
- Publication Date:
- 06-2023
- Content Type:
- Commentary and Analysis
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The West assumed that its unprecedented tech sanctions would be the response to Russia’s full-scale invasion of Ukraine that would hurt the country most. While their impact took different routes than expected, Russia has been forced to scale back its goals for technological advancement and become more dependent on third countries than ever. As Russia is preparing to wage a protracted war, the EU must make unity and coordination on tech among its member states and partners its ongoing priority. Implementing the restrictive measures and closing loopholes is essential.
- Topic:
- Science and Technology, Sanctions, European Union, and Russia-Ukraine War
- Political Geography:
- Russia
8811. From “Forward Presence” to “Forward Defense”: Germany Must Strengthen NATO’s Northeastern Flank in Lithuania
- Author:
- Aylin Matlé
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Issues of deterrence and defense along NATO’s northeastern flank have been a greater focus of NATO members since the Russian attack on Ukraine began. Particularly in the Baltic States, there is a determination to protect every inch of the Alliance’s territory against a possible Russian attack. To prevent such a scenario, NATO is making military adjustments to which Germany will have to increase its contribution.
- Topic:
- Security, Defense Policy, NATO, and Deterrence
- Political Geography:
- Europe, Lithuania, and Germany
8812. China “De-risking”: A Long Way from Political Statements to Corporate Action
- Author:
- Ole Spillner and Guntram Wolff
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Major Western leaders have been calling for “de-risking” from China, rather than “decoupling.” But what exactly de-risking means and how it differs from decoupling, remains unclear. It is ultimately firms, not governments, driving trade and investment relations. But firms cannot account for unidentified risks by themselves. National security risks are for governments to define. Complex supply chain externalities might entail risks to production that are also difficult for firms to account for. Furthermore, firms may bet that governments will rescue them if a worst-case scenario happens, effectively socializing risks. In the EU, Germany is particularly exposed to China risk in terms of security, macroeconomic, and political exposure.
- Topic:
- Security, European Union, Macroeconomics, Supply Chains, and Geoeconomics
- Political Geography:
- China, Europe, and Asia
8813. German Defense Spending: A Repeat of the Past Instead of a New Era
- Author:
- Christian Mölling, Torben Schütz, and Sören Hellmonds
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The historic aspiration of Germany’s Zeitenwende – the new era in its foreign and security policy – will fail without the proposed funding. The growing tension between its demands for the Bundeswehr and missing resources is already driving Germany back to the old and shortsighted approach of cutting and stretching budgets and fragile procurement plans. The country needs a security decade: a ten-year systematic spending effort that closes its substantial security gap. Without sustainable funding for military security and other existential government tasks, Germany will continue to pose a risk to itself and others.
- Topic:
- Security, Defense Policy, Budget, and Defense Spending
- Political Geography:
- Europe and Germany
8814. Whose Zeitenwende? Germany Cannot Meet Everyone’s Expectations
- Author:
- Kristi Raik and Martin Quencez
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Russia’s full-scale of invasion of Ukraine pushed Germany to fundamentally revise its foreign and security policy, including its assumptions about European security, its relations with major powers, and its role as a mediator of intra-European disputes. The Zeitenwende’s level of ambition entails a profound reckoning of the failure of past policies, and has to be both European and global. Germany bears a special responsibility for strengthening European defense vis à vis Russia, reducing Europe’s vulnerabilities vis à vis China, maintaining a strong transatlantic alliance while also preparing Europe for a possible reduced US commitment in the future, and ensuring a coherent EU.
- Topic:
- Security, Foreign Policy, Diplomacy, Regional Politics, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Germany
8815. European Defense in A New Age (#EDINA)
- Author:
- Christian Mölling, Sören Hellmonds, and Theresa Caroline Winter
- Publication Date:
- 06-2023
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Delve into the transformation of Europe's defense landscape following Russia's Ukraine invasion in 2022 with our comprehensive report. Part of the long-term project on European Defense In a New Age (EDINA), this report provides expert insights on shifts in Europe's military order, defense cooperation, and geopolitical landscape, with a focus on Europe's evolving Defense Technological and Industrial Base (DTIB). Explore key findings on political change, potential divisions, and China's role and discover the seismic shifts reshaping European defense.
- Topic:
- Security, Defense Policy, and Russia-Ukraine War
- Political Geography:
- Europe
8816. Security Guarantees for Ukraine: Until NATO Membership, Extending the Joint Expeditionary Force Is the Best Option
- Author:
- Benjamin Tallis
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- There are no security “guarantees,” but NATO membership is as close as it gets – and has long proven its effectiveness in deterring Russian aggression. It is thus the only real option for Ukraine – and for wider European security. Addressing the lack of political will to recognize this, especially in Washington and Berlin, means finding an interim solution that provides credible, collective security in the meantime and fosters more durable, fairly delivered European security in the long term.
- Topic:
- Security, Foreign Policy, NATO, and Russia-Ukraine War
- Political Geography:
- Europe, Ukraine, and Eastern Europe
8817. Decisive but Forgotten: Germany’s Missing Technological Zeitenwende
- Author:
- Tim Rühlig and Bjorn Fägersten
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The digital technology transformation is a largely overlooked dimension of Zeitenwende. However, preserving national security, safeguarding core values enshrined in technology, ensuring access to critical technologies, and maintaining competitiveness need to be a policy priorities for Germany and Europe. All of these are integral elements of autonomy and sovereignty in a world increasingly characterized by great power rivalry. The looming policy decisions, however, will have divergent outcomes depending on the prevailing political paradigms.
- Topic:
- National Security, Politics, Science and Technology, and Strategic Autonomy
- Political Geography:
- Europe and Germany
8818. Conditionality in Migration Cooperation: Five Ideas for Future Use Beyond Carrots, Sticks, and Delusions
- Author:
- Victoria Rietig and Marie Walter-Franke
- Publication Date:
- 07-2023
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Effective migration partnerships with third countries are a declared goal of the European Union. But views diverge on what good migration cooperation looks like. Using carrots and sticks, also known as conditionality, is a controversial strategy to reach the EU’s migration goals. Politicians and experts either frame it as necessary and legitimate, or as post-colonial and counterproductive. Whether one supports conditionality or not, positive and negative incentives have shaped the different types of migration agreements the EU and its Member States have struck in the last decade. Some are formal agreements binding under international law, but most are soft law or handshake deals. They may cover just one specific issue within migration policy, or tie migration to other policy areas. Some are public, others confidential. All these agreements reflect the interests and the leverage which the EU, Member States, and partner countries bring to the table. The three most discussed levers the EU uses to nudge partner countries toward joint migration management are visas, development aid, and trade – the holy trinity of migration conditionality. But the exclusive focus on these three levers is artificial. Europe also uses other levers, such as police or military cooperation and training, diplomatic attention and high level visits, legal migration opportunities, and others. When these levers are used, they generate three kinds of effects: the conclusion of an agreement, common document, or statement (paper), procedural or technical changes (process), and migratory movements (people). But they also bring unintended side effects, such as backlash from the citizens of third countries, or the phenomenon of reverse conditionality, when a third country reacts to threats by reducing border patrols or by supporting irregular onward migration. Lever use of one EU country can also worsen the migration relationship of its EU neighbors with that third country. Despite these high stakes, Europe uses conditionality remarkably inconsistently. Its strategy to create coordination mechanisms to make Member States’ approaches more coherent is hobbled by entrenched realities: The cost of coordination is often disproportionate to its benefits, and turf demarcation hinders cooperation. Thus, the chase for coherent conditionality usage in the EU is at best an uphill battle and at worst a delusion. This report puts forward five recommendations to improve Europe’s migration conditionality use and debate in the future. It draws on case studies that trace the EU’s use of incentives and threats toward Bangladesh, The Gambia, Afghanistan, Iraq, and Nigeria, and distills lessons from them.
- Topic:
- Migration, European Union, Cooperation, and Conditionality
- Political Geography:
- Europe
8819. Protecting the EU’s Submarine Cable Infrastructure: Germany’s Opportunity to Transform Vulnerability into Mutual Resilience
- Author:
- Jannik Hartmann
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Submarine cables handle over 95 percent of the world’s internet traffic, making them essential for everything from finance to foreign affairs. The September 2022 attack on the Nord Stream pipelines and increased Russian naval activity brought greater awareness of how European – and German – interconnectedness also brings vulnerability. The urgency of tackling this threat offers Germany an opportunity to take a structural and joined-up approach that shows it can act as a “team power.”
- Topic:
- Security, Infrastructure, European Union, and Resilience
- Political Geography:
- Europe and Germany
8820. Evaluating Public Support for Chinese Vendors in Europe’s 5G Infrastructure
- Author:
- Tim Rühlig and Richard Q. Turcsányi
- Publication Date:
- 08-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Germany is considering banning equipment made by Chinese companies like tech giant Huawei – in its 5G mobile infrastructure. A revised 2021 IT Security Act failed to reduce China’s 59 percent market share. A representative opinion poll, shows only 30.8 percent of Germans want 5G cooperation with China. Across 11 European countries, skepticism is equal, with only 31.8 percent approval – though this varies greatly from country to country.
- Topic:
- Science and Technology, Infrastructure, European Union, and 5G
- Political Geography:
- Europe and Asia
8821. Russia’s War in Ukraine: Rethinking the EU’s Eastern Enlargement and Neighborhood Policy
- Author:
- Guntram Wolff, Alexandra Gritz, Stefan Meister, and Milan Nič
- Publication Date:
- 01-2023
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The stagnating EU accession process needs political will and procedural changes allowing eastern candidates to advance. In the meantime, they should be more supported to use the full potential of existing opportunities for gradual economic and sectoral integration with the EU. An upgraded Eastern Partnership needs a comprehensive security dimension linking resilience, connectivity, and defense policy, as well as cooperation in the area of the Common Security and Defence Policy. The protracted regional conflicts (in Moldova and the South Caucasus) require a more active EU engagement as existing OSCE formats continue to be blocked, and Russia’s role and military presence weaken. New openings for conflict resolution mean higher demand for the EU’s diplomatic, monitoring, and peacekeeping capacities. A new eastern Neighborhood Policy should be designed for the wider region, connecting the Black Sea and the South Caucasus with Central Asia and thus creating viable alternatives to the competing geoeconomic and governance “offers” of China, Russia, and Turkey.
- Topic:
- Foreign Policy, Governance, European Union, International Order, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, Central Asia, Ukraine, and Eastern Europe
8822. A More Strategic Approach to Foreign Direct Investment Policy
- Author:
- Markus Jaeger
- Publication Date:
- 02-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Cross-border investment and trade give rise to both economic gains and economic vulnerabilities. As geopolitical competition is intensifying, governments increasingly resort to restricting cross-border investment and trade. Policies are informed by a desire to limit security risks and secure technological advantages rather than pursue efficiency gains.
- Topic:
- Science and Technology, Foreign Direct Investment, Strategic Competition, and Geoeconomics
- Political Geography:
- Europe, Asia, and Americas
8823. The Disruption of Arctic Exceptionalism: Managing Environmental Change in Light of Russian Aggression
- Author:
- Kai Kornhuber, Kira Vinke, Evan T. Bloom, Loyle Campbell, Volker Rachold, Sara Olsvig, and Dana Schirwon
- Publication Date:
- 02-2023
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The Arctic is directly affected by the interaction of two ongoing global crises: climate change and Russia’s war of aggression against Ukraine. With its temperatures rising four times faster than the global average, the Arctic is facing dramatic environmental consequences. Meanwhile, retreating sea ice has led to increased economic interest in the Arctic and its growing geopolitical importance. Thus, understanding and managing the global and local implications of environmental change in this region requires urgent scientific and diplomatic collaboration.
- Topic:
- Climate Change, Environment, International Cooperation, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, Central Asia, Arctic, and Americas
8824. How Authoritarian Regimes Counter International Sanctions Pressure
- Author:
- Christian von Soest
- Publication Date:
- 09-2023
- Content Type:
- Working Paper
- Institution:
- German Institute of Global and Area Studies
- Abstract:
- Based on current literature, this paper analyses the nature and effects of external pressure imposed on authoritarian regimes. Around three-quarters of all countries under United Nations, United States, and European Union sanctions are authoritarian, and “democracy sanctions” that aim at improving democratic and human rights in targeted countries constitute the biggest sanctions category. Yet, authoritarian regimes represent particularly problematic targets as they can more easily shield themselves from external pressure than their democratic counterparts can. Authoritarians have a tighter grip on the public discourse and the struggle over the meaning of sanctions. They often even use them to their own advantage, denouncing sanction senders as “imperialist” and blaming them for their economic woes. The paper presents trends in the application of sanctions pressure against authoritarian regimes, reviews mechanisms of how economic and diplomatic restrictions work, and examines authoritarian targets’ attempts to engage in pressure proofing.
- Topic:
- Diplomacy, International Cooperation, Sanctions, and Authoritarianism
- Political Geography:
- Global Focus
8825. US Trade Policy Options for Pacific Islands States Require Washington’s Political Commitment
- Author:
- Marcus Noland
- Publication Date:
- 07-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- The Pacific Islands have emerged as a zone of contestation in the ongoing rivalry between China and the United States. While the US has long been the dominant military power in the region, China is raising its profile through activities like port visits, military exercises, and establishing diplomatic and security ties with regional states like Kiribati and the Solomon Islands. In 2018, Chinese leader Xi Jinping visited Papua New Guinea for the Asia Pacific Economic Cooperation (APEC) summit. President Biden was supposed to visit PNG in May 2023, in the first ever visit of a sitting US president to the Pacific Islands, but that trip was scuttled due to the debt ceiling fiasco in Washington. In the economics sphere, the US has attempted to counter China’s Belt and Road Initiative (BRI) together with Japan and Australia through the Blue Dot Network and the Indo-Pacific Infrastructure Trilateral to promote high-quality, transparent, and sustainable infrastructure development. The region contains considerable natural resources, and the US has been working with Pacific Island nations to promote sustainable resource management, in contrast to China’s alleged illegal, unreported, and unregulated fishing in the Pacific. What has been missing, however, is a trade policy component to the US strategy to counterbalance China’s exploration of a free trade agreement with the Pacific Islands Forum (PIF).
- Topic:
- Foreign Policy, Economics, Politics, and Trade Policy
- Political Geography:
- China, North America, United States of America, and Pacific Islands
8826. Climate Change in the Federated States of Micronesia: Indicators and Considerations for Key Sectors
- Author:
- Zena Grecni, Chelsey Bryson, and Elaine Chugen
- Publication Date:
- 07-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- Stronger typhoons, growing challenges for populations on low-lying atolls, ecosystem declines, and human health issues are among the major risks detailed in a new report on climate change in the Federated States of Micronesia (FSM). Threatened resources include culturally significant coastal infrastructure and the tens of millions of dollars that fisheries inject into the FSM’s economy annually, according to the report by the Pacific Islands Regional Climate Assessment (PIRCA), a consortium of several government, NGO, and research entities. Climate Change in the Federated States of Micronesia: Indicators and Considerations for Key Sectors is a report developed by PIRCA. It is one in a series of reports aimed at assessing the state of knowledge about climate change indicators, impacts, and adaptive capacity of the US-Affiliated Pacific Islands (USAPI) and the Hawaiian archipelago. Authors from the East-West Center, Arizona State University, and the University of Hawaiʻi—along with 30 technical contributors from local government, NGOs, and research—collaboratively developed the FSM PIRCA report. Climate change is expected to disrupt many aspects of life in the FSM. Specific groups—including children, older adults, women, and those living in remote communities—are likely to be disproportionately affected. This report provides guidance for decision-makers seeking to better understand the implications of climate variability and change for the FSM and its communities. It also identifies the additional information and research needed to support responses that enhance resilience and enable the FSM to withstand the changes to come.
- Topic:
- Climate Change, Environment, Infrastructure, and Threat Assessment
- Political Geography:
- Micronesia and Pacific Islands
8827. Sustaining Congressional Engagement with Southeast Asia
- Author:
- Erik Ashida
- Publication Date:
- 06-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- As a representative institution whose members can outlast presidential administrations, Congress plays a vital role in sustaining long-term US foreign policy commitments. The perception of long-term commitment is particularly important in Southeast Asia, where most states seek to maximize their strategic autonomy by balancing relations among great powers. Thus, expectations about the future behavior of great powers can significantly affect foreign policy choices. Congress speaks through the exercise of its formal powers but also in more subtle ways. Congressional actions on foreign relations operate along three channels. The first channel is support for policies initiated by the executive branch, e.g., passing appropriations, making requested statutory changes, or, at the very least, not obstructing what an administration seeks to do. The second channel is symbolic support for a relationship, such as meetings with foreign officials or public statements of support. Though these actions are generally nonbinding, they can be a more meaningful gauge of support than the first channel because legislators must seek them out and can define the terms of their engagement—something not always possible when voting on legislation. The third channel is policy advanced independently from the executive branch, such as standalone bills, conditions placed on funding, or rigorous oversight. Each of these tools is available to individual legislators, groups of legislators such as caucuses or committees, or the entire legislative branch acting collectively.
- Topic:
- International Relations, Foreign Policy, Politics, and Governance
- Political Geography:
- Asia, Southeast Asia, and United States of America
8828. What the Compact Impact Fairness Act Means for Compact Host Governments and Migrants
- Author:
- Angelo Paule and Alec Weiker
- Publication Date:
- 06-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- The Biden-Harris Administration’s 2024 Department of the Interior (DOI) budget proposal supports passing the Compact Impact Fairness Act (CIFA). CIFA would restore federal benefits to migrants from three Pacific countries: Palau, the Federated States of Micronesia (FSM), and the Republic of the Marshall Islands (RMI). Support for CIFA is a welcome development for Compacts of Free Association (COFA) migrants and the US states and territories that host them. Yet, the budget proposal’s omission of funding support for host governments and uncertainty on implementation and prioritization for COFA migrants present acute issues that may linger for years ahead.
- Topic:
- International Relations, Politics, Governance, and Public Health
- Political Geography:
- Samoa, Marshall Islands, Palau, Guam, Micronesia, and Pacific Islands
8829. Korea Matters for America/America Matters for Korea (2023)
- Author:
- East-West Center
- Publication Date:
- 04-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- The 4th edition of Korea Matters for America/America Matters for Korea, part of the Asia Matters for America initiative, maps the trade, investment, employment, business, diplomacy, security, education, tourism, and people-to-people connections between the United States and South Korea at the national, state, and local levels. This publication and the AsiaMattersforAmerica.org website are resources for understanding the robust and dynamic US-Indo-Pacific relationship.
- Topic:
- International Relations, Climate Change, Economics, Education, Environment, Politics, Science and Technology, Governance, Population, Public Health, and Travel
- Political Geography:
- Asia, South Korea, North Korea, North America, and United States of America
8830. Valuing Longer, Healthier Lives: Assessing the Productivity of Health Spending in South Korea
- Author:
- Karen Eggleston
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- This research studies the link between medical spending and health outcomes in South Korea, providing evidence on the productivity of medical spending over recent decades. The author advocates for the Korean government to develop a “satellite account for health” to complement national income and product accounts. Current measures do not account for changing quality nor give providers any incentive for cost-effective substitution between forms of treatment for a given condition. By leveraging existing strengths of Korea’s National Health Insurance and health outcome data, Korea can develop an accurate measure of medical productivity and a more accurate measure of overall economic productivity, while becoming a global pioneer of “health satellite accounts” for overall populations. Such a productivity metric built on condition-specific net value can help Korea increase the “bang for the buck” from medical spending, mitigate wasteful spending, and promote high-value innovations for longer, healthier lives.
- Topic:
- Health, Public Spending, and Productivity
- Political Geography:
- Asia and South Korea
8831. What North Korea Has Been Learning From Russia’s Invasion of Ukraine
- Author:
- Tereza Novotná
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- A year ago, in February 2022, Russia invaded its neighbor, Ukraine. Russian aggression has upended the post-war security mechanisms in Europe and made the international multilateral system, including the UN Security Council, more fragile and ineffective than ever. Even though the war in Ukraine has implications for security in Northeast Asia, many Asian nations consider it a distant issue for Europeans to solve. However, this perspective mirrors what Europe’s Asian counterparts, especially the Koreans, have faced for decades. It serves as an apt analogy for explaining the dangers of North Korea to Europe. North Korea is also watching the war closely to discern what lessons or leverage can be extracted from the unfolding conflict. This short article reflects on two lessons and three opportunities that the War in Ukraine presents to Kim Jong Un and concludes with recommendations on what the Europeans could do in the near future.
- Topic:
- Security, Foreign Policy, Conflict, Russia-Ukraine War, and Invasion
- Political Geography:
- Russia, Ukraine, Asia, and North Korea
8832. United Kingdom Engagement with North Korea
- Author:
- Alastair Morgan
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- As one of the Allied Powers, The United Kingdom was involved in Post-World War II planning for the Korean peninsula, including the November 1943 Cairo Conference declaration that “… in due course, Korea shall become free and independent.” However, US President Roosevelt’s proposal at the February 1945 Yalta Conference did not establish a formal role for the UK in the trusteeship of Korea. Subsequently, the United States and the Soviet Union agreed to divide the peninsula at the 38th parallel in August 1945, and direct British involvement in the peninsula was limited prior to the Korean War. The United Kingdom’s Korean War contribution to the United Nations Command was second only to the United States, with significant deployments of maritime and air assets in addition to the provision of ground troops. Almost 60,000 British troops saw action, with nearly 5,000 killed, wounded, missing in action, or taken prisoner. Following the armistice, the United Kingdom has continued to send representation to the United Nations Command. The armistice agreement includes an obligation on so-called “Sending States” to respond to renewed hostility. Although there is no automatic UK commitment to send forces, the armistice agreement remains a consideration in engagement with North Korea.
- Topic:
- International Relations, Foreign Policy, Economics, Education, Politics, and Strategic Engagement
- Political Geography:
- United Kingdom, Europe, Asia, and North Korea
8833. North Korea-Germany Relations: An Ambassador's Perspective of Diplomacy with Pyongyang
- Author:
- Armin Schäfer
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- Germany established diplomatic relations with North Korea, also known as the Democratic People's Republic of Korea (DPRK), in 2001 at the request of the South Korean government, which hoped that Germany and the European Union (EU) would play a more active role in supporting the “Sunshine Policy.” Since then, Germany, together with the other EU states, has sought to moderate North Korea through a “Policy of Critical Engagement” to convince it of the benefits of international cooperation, respect for the rule of law, and improving the political and economic situation of its people. In doing so, Germany could build on the long relationship between North Korea and the former East Germany. “Critical engagement” means being willing to talk and get involved, but without holding back on criticism—and, if need be, imposing sanctions. It also implies that comprehensive engagement is not (yet) possible because of the circumstances. There is ample cause for a constrained approach from North Korea’s aggressive foreign policy and systematic human rights violations to the absence of suitable economic and fiscal conditions for business and development cooperation. Moreover, the lack of will on the part of considerable segments of the North Korean regime to engage with other countries also hampers broader engagement.
- Topic:
- Foreign Policy, Diplomacy, Economics, Education, and Bilateral Relations
- Political Geography:
- Europe, Asia, North Korea, and Germany
8834. From Coy to Cold Shoulder - The European Union and North Korea
- Author:
- Glyn Ford
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- The European Union (EU)—then 15 member states prior to its 2004 enlargement to 25—formally established diplomatic relations with Pyongyang in 2001 after a high-level visit to Pyongyang by Göran Persson, Swedish Prime Minister and then President in office of the European Council of Ministers. There, accompanied by EU security affairs chief Javier Solana and EU foreign affairs commissioner Chris Patten, he met with Kim Jong Il. Less than five years before, Commission officials were under orders not to even speak to officials from North Korea, officially the Democratic People's Republic of Korea (DPRK). However, at this meeting, the two parties agreed to establish both Political and Human Rights Dialogues; the latter modeled on the EU’s ongoing Human Rights Dialogue with Beijing. This move by the EU followed pressure from President Kim Dae-Jung in Seoul for allies to normalize relations as part of his ‘Sunshine’ policy. Some of the EU’s peripheral member states had long-standing relations with Pyongyang, in some cases dating back to before they had even joined the EU, with Finland, Sweden, and Denmark establishing relations in 1973, Austria in 1974, and Portugal in 1975. However, only Sweden had chosen to establish an Embassy, with the rest represented from Beijing. At the turn of the century, that pressure from Seoul resulted into most of the remaining dominoes falling in place. Italy and the UK jumped the gun in 2000, with Tony Blair and UK Foreign Minister Robin Cook agreeing to extend diplomatic recognition and establish an embassy en route to the Seoul Asia-Europe Summit.
- Topic:
- International Relations, Economics, Politics, and European Union
- Political Geography:
- Europe, Asia, and North Korea
8835. From Close Allies to Distant Comrades: The Ups and Downs of the Vietnam-North Korea Relationship
- Author:
- Khang X. Vu
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- In 2019, more than five decades after North Korean President Kim Il-sung’s last official trip to Vietnam in 1964, Kim’s grandson, North Korean Chairman Kim Jong-un, visited the country at the invitation of the Communist Party of Vietnam General Secretary Nguyen Phu Trong. In a welcoming speech, Trong described the relationship, “although the road is long, our hearts are close.” Kim responded to Vietnamese hospitality, saying North Korea would “staunchly preserve and forever honor the North Korea-Vietnam friendship from generation to generation.” Vietnam and North Korea are among the world’s last five communist party states, along with China, Laos, and Cuba. As such, it is no surprise that the two leaders emphasized common communist values and a shared history of struggle against US imperialism in their speeches. Still, despite the amicable words extolling the longevity of the traditional friendship, both leaders avoided mention of Vietnam’s conflict with the North Korea-backed Khmer Rouge and subsequent occupation of Cambodia from 1978 to 1989. Vietnam’s war with Cambodia was a facet of intra-communist bloc conflicts that spanned the whole of East Asia. Despite Hanoi and Pyongyang’s shared communist ideology, intra-bloc tensions eroded the friendship between the two nations. What were the reasons behind this dramatic shift in bilateral relations?
- Topic:
- International Relations, Economics, Politics, and Bilateral Relations
- Political Geography:
- Asia, North Korea, and Vietnam
8836. North Korea-Guyana Relations in the Burnham Era
- Author:
- Moe Taylor
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- During the reign of Forbes Burnham (1923-85), the South American republic of Guyana (formerly British Guiana) became one of North Korea’s greatest foreign policy success stories. Pyongyang not only acquired a new trading partner in the Americas but also gained a vocal advocate for its position on Korean unification on the international stage. These close ties grew in large part from Burnham’s admiration for North Korea, where he saw a highly disciplined citizenry united around the Great Leader, willing to work hard and sacrifice for the collective good. Guyana perhaps did more than any other single actor to help North Korea become viewed as an economic model for developing countries. First elected Premier of the colony of British Guiana in 1964, Burnham became Prime Minister upon independence in 1966 and ruled until his death in 1985. A lawyer and trade unionist from the capital’s Afro-Guyanese middle class, his rise to power was backed by the United States, which viewed him as the only realistic alternative to the communists. While Burnham veered to the Left once in power and frequently irritated Washington, he was more or less tolerated because his pro-Soviet opposition would almost certainly fill his absence.
- Topic:
- International Relations, Foreign Policy, Politics, and Bilateral Relations
- Political Geography:
- Asia, North Korea, South America, and Guyana
8837. A Monumental Relationship: North Korea and Namibia
- Author:
- Tycho van der Hoog
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- Visitors to Windhoek, the capital city of Namibia, will quickly learn a remarkable fact that is well-known among the local population—much of the capital’s architectural landscape is designed and constructed by North Korea. In recent years, North Korean nationals have built the official residence of the president of Namibia, the State House; the national cemetery for the fallen heroes of the liberation struggle, the National Heroes’ Acre; the national history museum, the Independence Memorial Museum; the Ministry of Defense headquarters and other buildings. The Namibian government thus uses North Korean aesthetics for some of the most important aspects of its power: the president, the history, and the army. This analysis explores the relationship between Namibia and North Korea by providing historical and political context to the aforementioned buildings. Today, Namibia often has the reputation of a quaint and sometimes sleepy destination, tucked away in the southwestern corner of the African continent. Yet, Namibia was at the center of geopolitical tensions for most of the twentieth century. The complicated decolonization process of Namibia, or “the Namibian question,” as it became known in the corridors of the United Nations (UN), had its roots in the aftermath of three decades of German occupation between 1884 and 1915. German South West Africa, the area that became modern Namibia, was transferred to South Africa as a League of Nations mandate territory and renamed “South West Africa.” South Africa viewed the territory as an unofficial fifth province and introduced brutal apartheid legislation. Internal opposition against the South African regime resulted in the formation of nationalist organizations, of which the South West Africa People’s Organization (SWAPO) became the most prominent.
- Topic:
- International Relations, Economics, Politics, Arts, and Culture
- Political Geography:
- Africa, Asia, North Korea, and Namibia
8838. Japan Matters for America/America Matters for Japan (2023)
- Author:
- East-West Center
- Publication Date:
- 02-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- The 4th edition of Japan Matters for America/America Matters for Japan, part of the Asia Matters for America initiative, maps the trade, investment, employment, business, diplomacy, security, education, tourism, and people-to-people connections between the United States and Japan at the national, state, and local levels. This publication and the AsiaMattersforAmerica.org website are resources for understanding the robust and dynamic US-Indo-Pacific relationship.
- Topic:
- International Relations, Climate Change, Economics, Education, Politics, Science and Technology, Governance, Population, Public Health, and Travel
- Political Geography:
- Japan, Asia, North America, and United States of America
8839. Abrogating the Visiting Forces Agreement: Its Effects on Philippines’ Security and Stability in Southeast Asia
- Author:
- Renato Acosta
- Publication Date:
- 02-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- During much of 2022, the defense and security alliance between the United States of America and the Philippines, anchored on and reinforced by the 1951 Mutual Defense Treaty (MDT, teetered on the brink of collapse. Former Philippine President Rodrigo Duterte brought relations to the brink through attempts to scuttle the Visiting Forces Agreement (VFA). This move would only embolden Chinese challenges to Manila’s territorial integrity and its aspirations to dominate Southeast Asia and the South China Sea. While the Duterte administration recited parochial reasons to terminate the VFA, pundits from the security and diplomatic sectors viewed Duterte’s attempts as a pretext to steer the Philippines towards China under his own brand and definition of an independent foreign policy. During his term, Duterte reiterated that President Xi Jinping and other Chinese officials were his friends. He also publicly declared that the Kalayaan Island Group (KIG), a northeastern section of the Spratly Islands, was already in physical control and possession of Beijing due to the unchallenged presence of its military and maritime militia vessels there. Given these statements, Duterte has constantly received criticism over his defeatist stance towards China.
- Topic:
- International Relations, Security, Politics, Armed Forces, and Instability
- Political Geography:
- China, Philippines, Southeast Asia, Asia-Pacific, and United States of America
8840. Understanding the Rohingya Crisis
- Author:
- Nasir Uddin
- Publication Date:
- 01-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- In consideration of their stateless status in Myanmar, prolonged refugeehood in Bangladesh, and their ongoing vulnerable position of the Rohingya, they are known as the world’s most persecuted minority. Despite living in Arakan/Rakhine state for centuries, Myanmar's Citizenship Law in 1982 rendered the Rohingya stateless as it conferred citizenship to 135 ethnic groups excluding the Rohingya. In 1978, Burmese security forces started Operation Nagamin, which produced the first Rohingya influx to Bangladesh (about 250,000). The second influx occurred in 1991-92 (about 200,000). Then, some 360,000 Rohingyas were repatriated to Bangladesh under an agreement brokered by the United Nations High Commissioner for Refugees (UNHCR). Even after the UN agreement, the third influx started in 2012 (125,000), and the fourth in 2016 (87,000). However, the Rohingya crisis reached a critical stage in 2017 when Burmese security forces launched the deadly Clearance Operation campaign as a ‘counter-insurgency’ measure against the Arakan Rohingya Salvation Army (ARSA). The Clearance Operation displaced 740,000 Rohingyas, killed 10,000, raped 1900 girls/women, and completely/partially burned 400 Rohingya villages in Rakhine state. Considering the intense brutality of the campaign, the UN Human Rights Commissioner termed it a “textbook example of ethnic cleansing,” and the US declared it a “genocide.”
- Topic:
- International Relations, Politics, Refugees, Ethnic Cleansing, and Rohingya
- Political Geography:
- Bangladesh, North America, Southeast Asia, Myanmar, and United States of America
8841. Economic Sanctions During Humanitarian Emergencies: The Case of North Korea
- Author:
- Stephan Haggard and Marcus Noland
- Publication Date:
- 01-2023
- Content Type:
- Special Report
- Institution:
- East-West Center
- Abstract:
- North Korea is experiencing yet another cycle of humanitarian distress. While sanctions are not the primary cause, they are a contributing factor. This essay examines the channels through which sanctions affect the North Korean economy and reaches four conclusions: First, sanctions have contributed to a deterioration of economic performance. Second, the UNSC’s 1718 Sanctions Committee should consider a thorough review to identify goods that would warrant blanket humanitarian financial sanctions have raised the risk premium on all financial transactions with North Korea; the sanctioning authorities need to do a better job of clarifying transactions permissible under humanitarian exemptions. Finally, while the global community should reassess its policies, the government of North Korea bears responsibility as well. The benefits of sanctions relief will be diminished if North Korea refuses to engage constructively with the international community on a broader range of issues running from basic humanitarian relief to economic reform.
- Topic:
- International Relations, Economics, Politics, Sanctions, and Humanitarian Crisis
- Political Geography:
- Asia and North Korea
8842. Structural Change, Income Distribution and Unemployment Related to COVID-19: An Agent-based Model
- Author:
- Branimir Jovanovic, Michael Landesmann, Oliver Reiter, and Torben Schütz
- Publication Date:
- 02-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- We study the distributional consequences of COVID-19 by using a stock-flow consistent agent-based model that captures some of the aspects of pandemic-related lockdowns. In particular, the model distinguishes between ‘essential’ and ‘non-essential’ industries, between jobs that can be done from home and jobs that must be carried out on site, and takes into account that firms need to hire a certain amount of overhead labour. Allowing for government-financed short-time working schemes and loan guarantees, we find that these policies significantly reduce the rise in firm liquidations and income inequality (the ‘Keynesian’ result). However, we also find that the absence of government policies leads to higher levels of productivity and GDP in the aftermath of the crisis, as it means that more of the less productive firms face liquidation during lockdowns (the ‘Schumpeterian’ result). The last finding must be taken with adequate caution as our model is designed to describe the short run, while statements about the long run would require the inclusion of additional features such as technological progress and the entry of new firms.
- Topic:
- Income Inequality, Macroeconomics, Unemployment, and COVID-19
- Political Geography:
- Europe and Austria
8843. Who Learns More from Afar? Spatial Empirical Evidence on Manufacturing and Services
- Author:
- Nina Vujanović
- Publication Date:
- 02-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This paper investigates spatial dependence of FDI knowledge spillovers in manufacturing and services using spatial panel techniques applied to the 2006-2014 Bureau Van Dijk’s Amadeus firm-level dataset for Croatia and Slovenia. The paper finds diverse results across the two sectors. The distance between regions does not hinder the absorption of foreign knowledge in manufacturing despite the strong market-stealing effects operating within regions as well as spatially. On the other hand, FDI knowledge spillovers decrease service productivity within regions, because of market-stealing effects operating strongly across a smaller geographical scale. However, its impact is lost as knowledge spillovers from more distant neighbours are accounted for, because the poaching of local labour is impeded by distance due to rising costs of labour mobility. The research indicates that for knowledge absorption, geographic distance plays differing roles in manufacturing and services, due to the different nature of the production process.
- Topic:
- Development, International Trade and Finance, Foreign Direct Investment, Manufacturing, Econometrics, and Competition
- Political Geography:
- Europe, Croatia, and Slovenia
8844. Assessing Digital Leadership: Is the EU Losing out to the US?
- Author:
- Dario Guarascio and Roman Stöllinger
- Publication Date:
- 03-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- Since Leontief’s (1953) seminal work on the factor content of trade, the validity of the Heckscher-Ohlin-model has been judged not only on the basis of formal tests of the theory but also tested against prior expectation. In this vein, this paper uses the Heckscher-Ohlin-Vanek (HOV) approach to investigate whether supposed US leadership in the digital domain can be traced back to digital task endowments embodied in labour services. In a comparison between EU member states and the US, we find that the latter is more intensive in digital tasks than the EU and that this difference is explained by both an intensity-effect (US occupations being more digital-task intensive) and a structural component (relatively more digital-task intensive occupations). Viewed through the lens of the HOV theorem we find that the US is abundant in digital tasks relative to non-digital tasks, while the opposite is true for the EU. The standard tests for the predictive power of the HOV theorem are high and in line with the results for labour in previous literature.
- Topic:
- International Trade and Finance, Foreign Direct Investment, European Union, Digitalization, and Competition
- Political Geography:
- Europe and United States of America
8845. Employment Effects of Offshoring, Technological Change and Migration in a Group of Western European Economies: Impact on Different Occupations
- Author:
- Michael Landesmann and Sandra Leitner
- Publication Date:
- 03-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This paper estimates conditional demand models to examine the impact of offshoring, technological change, and migration on the labour demand of native workers differentiated by four different types of occupational groups: managers/professionals, clerical workers, craft (skilled) workers and manual workers. The analysis is conducted for an unbalanced panel of five economies Austria, Belgium, France, Spain, and Switzerland covering the period 2005-2018. Our results point to important and occupation-specific effects: offshoring seems to have beneficial employment effects for native craft workers in this set of economies, while negative effects for native manual workers across a wide set of industries (including manufacturing and services industries) and managers/professionals in manufacturing. Furthermore, there are important distinctions whether offshoring occurs in other advanced economies, in the EU13 or in developing countries. The analysis of the impact of technological change shows the strong positive impact which the additional IT equipment has on most occupational groups of native workers (with the exception of manual workers), while robotisation in manufacturing showed strongly negative impacts on the employment of all groups of workers and especially of craft workers. Increasing immigrant shares in the work forces showed strongly negative impacts on native workers – however, considering only the partial substitution effects and not including the potential for productivity and demand effects – and this is mostly accounted for by immigration from low- to medium-income source countries.
- Topic:
- International Trade and Finance, Migration, Labor Issues, Immigration, Foreign Direct Investment, Employment, Competition, Income Distribution, and Offshoring
- Political Geography:
- Europe, France, Belgium, Spain, Switzerland, and Austria
8846. Functional Specialisation and Working Conditions in Europe
- Author:
- Sandra Leitner, Roman Stöllinger, and Zuzana Zavarská
- Publication Date:
- 05-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- Specialisation in value-chain functions is one of the new phenomena introduced by global value chains (GVCs). This report investigates the effects of functional specialisation on labour markets in fabrication and R&D activities as the two polar cases of value-chain functions, whereby the former is associated with factory economies, while the latter is characteristic of headquarter economies. More precisely, a metric similar to revealed comparative advantage is used to study the effect of relative functional specialisation on wages and non-wage working conditions. In line with the GVC literature emphasising power relations and organisational aspects of production networks, we are able to identify differentiated effects for functional specialisation patterns on wages in EU member states at the industry level across time. While relative functional specialisation in fabrication tends to hold back wages, functional specialisation in R&D has a positive effect on wage progression, controlling for labour productivity, GVC participation and numerous labour supply- and labour demand-side factors. The use of a constructed ‘sharp’ instrument allows giving these results a causal interpretation. Conversely, both functional specialisation measures are found to improve some non-wage working conditions, namely workers’ physical environment and their work intensity, which is evidence against a potential ‘race to the bottom’ effect of functional specialisation along GVCs. The effect is stronger for relative specialisation in fabrication than for relative specialisation in R&D.
- Topic:
- International Trade and Finance, Labor Issues, Foreign Direct Investment, European Union, Labor Market, Value Chains, and Wages
- Political Geography:
- Europe
8847. Determinants of Functional Specialisation in EU Countries
- Author:
- Aleksandra Kordalska and Magdalena Olczyk
- Publication Date:
- 05-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This paper aims to identify factors that determine functional specialisation (FS) in global value chains (GVCs) in European Union countries. We focus on fabrication and R&D as two opposite business functions in terms of their character and their potential of creating value-added. To make our results robust two different approaches to measuring functional specialisation are used – an FDI-based approach and a trade-based approach. To assemble a relative functional specialisation index, for each approach we use the same metric – a revealed comparative advantages index. Our results suggest a positive effect of wages on specialisation in an R&D function, and a negative impact on FS in fabrication. Increasing labour productivity boosts both specialisation in fabrication and in R&D. The results are robust to different model specifications and different time intervals. The instrumental variables method allows us to interpret the results as causal relationships. Additionally, human capital and labour skills foster FS in R&D (only in FDI data), and growing employment makes FS in fabrication increase. The growth of GDP per capita positively affects functional specialisation in R&D activities. Among GVC participation measures, we confirm the importance of increasing backward linkages to explain the boost in fabrication activities. Dividing a full sample into a group of EU15 countries and a group of Central Eastern European countries we observe that patterns for the EU15 are similar to those for the full sample, while for CEE countries wages are insignificant and labour productivity affects FS in fabrication only.
- Topic:
- International Trade and Finance, Foreign Direct Investment, European Union, Economy, Value Chains, and Competition
- Political Geography:
- Europe
8848. Regulatory Convergence within Technical Barriers to Trade
- Author:
- Mahdi Ghodsi
- Publication Date:
- 09-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This paper analyses how regulatory convergence in different categories of technical barriers to trade (TBTs) imposed on imports of goods in information and communications technology (ICT) globally affected the values, volumes, and unit values of imported goods during the period 1996-2019. Keywords cited in TBTs that are notified to the World Trade Organization (WTO) give an indication of the regulatory objectives behind the imposition of TBTs. MAST also classifies TBTs based on their applicability, procedural and administrative uses, factors which will also be taken into consideration in the analysis. However, objectives of TBTs may provide better insights to policymakers. TBTs are non-discriminatory measures that are imposed unilaterally on all trading partners and on domestic producers. It is not feasible to analyse unilateral TBTs in a gravity setting, as they are excluded by the introduction of country-product-time fixed effects that control for multilateral resistances. However, regulatory convergence in TBT categories is a bilateral time-varying variable that is analysed in a gravity model in this paper. The empirical results suggest that regulatory convergence between trading partners in some TBT categories stimulates import values and volumes. However, the impact is very heterogeneous across TBT objectives and classes and across ICT product categories.
- Topic:
- International Trade and Finance, Communications, World Trade Organization, Foreign Direct Investment, Regulation, Information Technology, and Competition
- Political Geography:
- Global Focus
8849. The Emissions Reduction Potential for Freight Transport on a High-speed Rail Line Along the ‘European Silk Road’
- Author:
- Erica Angers, Aleksandr Arsenev, and Mario Holzner
- Publication Date:
- 09-2023
- Content Type:
- Special Report
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This report estimates the CO2 emissions of freight transport on a hypothetical high-speed rail (HSR) line along the northern route, from Lyon to Warsaw, of a ‘European Silk Road’ (ESR). Using a methodology consisting of predictions regarding the freight-carrying capacity of the future HSR, and the commodity-level switchover, our results indicate that a best-case scenario, at a project lifecycle of 60 years, in which all trains run with 257 tonnes of load, provides for a reduction of 176.2 Mt of net CO2 emissions compared with current levels. These lifespan savings are comparable to a reduction of net emissions by close to 24% of the overall EU transport sector emissions (excluding air transport) of one year (as measured by the net emissions in 2018). The net negative emissions in the optimistic full-capacity scenario will compensate for the construction costs in 13 years. Thus, the potential for emission reduction along the northern route of the ESR is quite substantial, given that this is just one line, with limited capacity. This hints at the importance that bold missions, such as the construction of a pan-European HSR network, could have for the definition of a European Green Industrial Policy that is capable of supporting the fulfilment of the goals of the Paris Agreement on climate change.
- Topic:
- Climate Change, Infrastructure, European Union, Economic Growth, Transportation, Logistics, Ecology, and Green Economy
- Political Geography:
- Europe
8850. Balancing Natural Resources and Human and Social Capital: Pathways to Economic Diversification in Mongolia
- Author:
- Thorvaldur Gylfason and Jean-Pascal N. Nganou
- Publication Date:
- 09-2023
- Content Type:
- Special Report
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- Economic diversification has gained significant attention as a crucial factor for sustainable development worldwide. This paper addresses the risks associated with extreme specialisation and explores the potential benefits of economic diversification for Mongolia. By comparing Mongolia with its designated aspirational and structural peers, the paper aims to shed light on strategies that can foster economic and societal diversification in the country. Although Mongolia possesses favourable levels of human capital compared with its peers, its unusually high ratio of natural capital to human capital highlights the necessity of reducing reliance on natural resources and promoting human capital-intensive economic activities. The paper examines the implications of declining demand for Mongolia's key minerals, primarily coal, resulting from climate change concerns and evolving investor preferences towards sustainability, China's coal consumption reduction goals, and the enduring impact of the COVID-19 pandemic. Through this analysis, the paper offers insights into pathways for Mongolia to diversify its economy and enhance the well-being of its people by striking a balance between natural resources and human and social capital.
- Topic:
- Natural Resources, Governance, Democracy, Economic Growth, Human Capital, Diversification, Macroeconomics, Social Capital, Transition, and ASEAN
- Political Geography:
- Russia, China, Malaysia, Canada, Mongolia, Kazakhstan, Colombia, Armenia, Australia, Qatar, Chile, Peru, United Arab Emirates, Ecuador, and Guyana