Topic: Economics - CIAO Search Results

401. The state of economic convergence in the Eurozone: Two decades of monetary union and economic governance

Author:: Adriaan Schout
Publication Date:: 01-2023
Content Type:: Special Report
Institution:: Clingendael Netherlands Institute of International Relations
Abstract:: What is the state of economic convergence in the euro area? And will the redefinition of the Stability and Growth Pact result in a more effective policy for achieving convergence? A common currency, together with the four freedoms, was assumed to lead to economic convergence. This Clingendael Report reviews the state of convergence in the euro area by focusing on nominal, real and institutional convergence. Despite a range of policy initiatives and monitoring systems, convergence has not been achieved neither in terms of monetary and economic performance nor of the quality of governance at the national level. Despite some major successes in convergence, welfare has continued to diverge in some countries and differences in debt levels have increased up to the point of threatening the - economic and political - coherence of the euro area. Public spending also varies considerably while higher public spending does not ensure higher growth levels. The paradoxical situation has arisen in which countries that (drastically) reduced debt levels performed better in terms of growth and reduction in unemployment.
Topic:: Economics, Governance, European Union, Economic Growth, and Economic Stability
Political Geography:: Europe

402. 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

403. 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

404. 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

405. 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

406. 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

407. 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

408. 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

409. 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

410. 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

411. The Future of the Digital Asset Space

Author:: Christian Catalini and Nicholas Sanzi
Publication Date:: 03-2023
Content Type:: Journal Article
Journal:: Brown Journal of World Affairs
Institution:: Brown Journal of World Affairs
Abstract:: Christian Catalini is founder of the MIT Cryptoeconomics Lab, and Research Scientist at MIT. He is also the Co-Founder and Chief Strategy Officer of Lightspark. Previously, he was a co-creator of Diem (formerly Libra), Chief Economist of the Diem Association, and Head Economist of Meta FinTech. While a Professor at MIT, Christian designed the MIT Digital Currency Research Study. In 2018, Christian was appointed as a Faculty Research Fellow in the Productivity, Innovation and Entrepreneurship Program at the National Bureau of Economic Research. He holds a PhD from the University of Toronto (Rotman School of Management), and MSc (summa cum laude) in Economics and Management of New Technologies from Bocconi University, Milan.
Topic:: Economics, Cryptocurrencies, Interview, Digital Currency, and Stablecoins
Political Geography:: Global Focus

412. Accounting for Non Economic Loss & Damage changes perspective of L&D as a whole

Author:: International Centre for Climate Change and Development (ICCCAD)
Publication Date:: 11-2023
Content Type:: Policy Brief
Institution:: International Centre for Climate Change and Development (ICCCAD)
Abstract:: Adverse impacts induced by climate change is already occurring and manifesting in the form of losses and damages which are expected to accelerate as climate change worsens and tipping points in eccological systems are reached. Failure to address climate-driven loss can trap populations in a state of vulnerability. Such kinds of losses and damages can be either economic or non-economic in nature. Economic losses and damages can be measured using market prices. In contrast, non-economic loss and damage (or ‘NELD’) refers to a broad range of harmful impacts that are not so easily quantified, especially in financial terms. This makes it difficult to evaluate the non economic nature and the intensity of the losses and damages faced by frontline communities.
Topic:: Climate Change, Economics, Vulnerability, and Loss and Damage (L&D)
Political Geography:: Global Focus

413. Does Gravity Matter for Trade in Intermediate Services?

Author:: Anmol Kaur Grewal
Publication Date:: 10-2023
Content Type:: Working Paper
Institution:: Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:: This paper makes a twofold contribution to the literature on trade in services. First, I construct a novel bilateral dataset of trade in services differentiating between final consumption and intermediate consumption following the most recent classification of UN’s Broad Economic Categories (BEC Rev. 5). Second, I use this dataset to estimate a gravity model of trade in intermediate and final services for a sample of 48 economies for the time period 2010-2019. Using a robust model specification consistent with the recent advancements in the gravity literature, I find that trade in services exhibits a sensitivity to bilateral distance between trading partners, similar to trade in goods. Intermediate services tend to be more sensitive to distance relative to final services due to the distinct nature of these services (B2B versus B2C). Common language and common borders are important determinants of both trade in intermediate and final services. I also find evidence of non-linear effects of time zone differences on trade in services.
Topic:: Economics, Services, Trade, Consumption, and Intermediate Services
Political Geography:: Global Focus

414. Foreign Linkages, Innovation & Productivity: Evidence from Enterprise Surveys

Author:: Anmol Kaur Grewal
Publication Date:: 04-2023
Content Type:: Working Paper
Institution:: Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:: This paper estimates a three-stage structural model of how foreign linkages affect innovation which in turn affects firm productivity. Using harmonized firm-level data from the World Bank Enterprise Surveys, I construct a panel dataset for 47 developing countries spanning 2003 to 2019. I distinguish between four types of foreign linkages (exports, imports, inward foreign direct investment (FDI) and the use of foreign-licensed technology), and two types of innovation (product innovation and process innovation). To mitigate concerns regarding sample selection and endogeneity biases, I employ advanced panel data methods. In the first stage, I find that being an exporter, using foreign inputs, and using foreign-licensed technology makes firms more likely to invest in R&D, relative to other firms. I also find evidence of sample selection bias which is corrected by using a two-step Heckman selection model. In the second stage, I find that while increases in the R&D intensity increase the probability of product innovation, they have no statistically significant effect on the likelihood of process innovation. In the third stage, I find that product or process innovation is associated with increases in firm-level productivity. These results remain robust across alternative measures of innovation and firm productivity.
Topic:: Economics, Innovation, Trade, and Productivity
Political Geography:: Global Focus

415. Two Peripheries: The Ukraine War's Effect on North Korea-Russia Relations

Author:: Anthony V. Rinna
Publication Date:: 03-2023
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Spanning the Eurasian landmass, Russia’s actions in adjacent Ukraine invariably affect the geopolitical state of play on the similarly adjacent Korean Peninsula. Although ties between the Democratic People's Republic of Korea (DPRK) and Russia have been of largely secondary importance for both countries since their veritable rupture in the early- and mid-1990s, Moscow-Pyongyang relations became more mutually beneficial in 2022. Whereas most countries have outright condemned Russia’s invasion of Ukraine or taken up an ambiguous position, the DPRK has been vocal in its support for Russia. From the DPRK perspective, the Kremlin’s post-2022 diplomatic and economic estrangement from much of the world has provided Pyongyang with an opening to leverage ties with Russia to push for an easing of its own diplomatic and economic isolation. Meanwhile, strengthening its DPRK ties allows Russia to undermine US influence on its Asian periphery. In supporting Russia’s full-scale invasion of Ukraine, North Korea appears to be aiming toward obtaining economic benefits from closer ties with Russia, a country whose economy has managed to stay afloat despite heavy Western sanctions. Russia’s full-scale invasion of Ukraine has provided the impetus for Pyongyang’s outreach to Moscow. However, the roots of the current upswing in Moscow-Pyongyang relations go back to the April 2019 summit between Kim Jong Un and Vladimir Putin. Kim received an invitation to meet with Putin in May 2018 yet waited eleven months to meet with the Russian leader, even as Kim regularly met with the leaders of other major players on the Korean Peninsula. Kim may have decided after the February 2019 Hanoi summit yielded few results that strengthening ties with Russia, which was more reluctant than China to support UN sanctions against Pyongyang in 2017, was a more viable option for sanctions relief. Aside from the fact that Russia has demonstrated a clear unwillingness to impose new sanctions against the DPRK, North Korean citizens are reported to still be working in Russia in contravention of UN Resolution 2397. North Korean workers’ earnings are said to have suffered because of Russia’s reduced access to hard currency. Yet, the ruble’s continued resilience may mean that earning currency in Russia is still worthwhile for laborers dispatched at Pyongyang’s behest.
Topic:: International Relations, Foreign Policy, Economics, and Politics
Political Geography:: Russia, Europe, Ukraine, Asia, and North Korea

416. Iran’s New Budget Perpetuates Economic Challenges

Author:: Henry Rome
Publication Date:: 01-2023
Content Type:: Policy Brief
Institution:: The Washington Institute for Near East Policy
Abstract:: The president is proposing de facto cuts to salaries and subsidies as well as more money for the military, while avoiding the tough reforms Iran’s economy needs. On January 11, President Ebrahim Raisi submitted his budget proposal to the Majlis for the Iranian year 2023/24. Drafted amid the most severe protests the Islamic Republic has faced since its establishment in 1979, the proposal includes no economic olive branches to the people and avoids structural reforms that could help rein in inflation and fuel growth.
Topic:: Economics, Reform, Budget, Democracy, and Energy
Political Geography:: Iran and Middle East

417. Egypt: The Price of Inaction on Tax Reform

Author:: Omar Ghannam
Publication Date:: 01-2023
Content Type:: Research Paper
Institution:: Arab Reform Initiative (ARI)
Abstract:: Like public finances elsewhere, the public finances of the Egyptian state suffer from a semi-permanent deficit. Although a limited deficit in state budgets is acceptable for most prevailing economic theories, the persistent and worsening deficit in public budgets leads to severe phases during which the economy suffers. During periods of economic prosperity, soft loans are easily accessible, which encourages states to rely on borrowing as a secondary source of financing for extended periods until it becomes a permanent source of financing. The financial market eventually puts an end to every period of easy borrowing, forcing the government to face the reality it has tried to avoid. Under such circumstances, governments have three tools at their disposal: borrowing at the highest interest rate, austerity and disabling services and social protection programs, and raising taxes and customs duties. Borrowing at the highest interest rate is every government's first choice because it does not require a reformulation of the social, economic, and political contract between the state and its citizens. But the price of such a policy is a worsened deficit. Borrowing, before or after a crisis, is not a solution but merely a postponement of the crisis, in the hope that the market recovers. When it is no longer possible to borrow amid the worsening economic conditions of a crisis, the government resorts to other tools with varying degrees of risk. Austerity is a recipe for widespread social outcry and has catastrophic effects on the poor and middle classes as well as the overall economy due to decreased purchasing power. To overcome the crisis with the least social tension, the state can also resort to taxation to generate possible revenues whether from the economy as a whole or the sectors and classes with concentrated surpluses of value. The more severe the crisis, the more the government is forced to use additional tools and impose strict measures. Debts are nothing but deferred taxes, and taxes remain key in every economic crisis. When a global economic crisis looms, questions abound. Could the crisis be approached with fewer social and economic burdens and with more room for maneuver? In this context, this paper will discuss the tax policies adopted in the past few years in Egypt and how they could have been more effective. The primary role of taxes is to meet the government's financial needs to implement its role under the social contract, whether formal or informal. Therefore, taxes are a convenient introduction to understanding the political economy of any state. Tax policies are an essential tool for achieving macroeconomic goals, and they directly reflect the political and socioeconomic considerations driving a country’s economy. This paper will address the main role of taxes in financing the requirements of the social contract from the perspective of the adequacy and effectiveness of tax collection.
Topic:: Economics, Governance, Reform, Finance, and Tax Systems
Political Geography:: Africa and Egypt

418. Entrepreneurship, Youths, and Women Economic Inclusion in Cameroon

Author:: Laurent Brice Nsengue, Bin Joachem Meh, and Jean-Cedric Kouam
Publication Date:: 01-2023
Content Type:: Working Paper
Institution:: The Nkafu Policy Institute
Abstract:: Bentham’s theory of utilitarian morality leads us to know that the purpose of economic activity is to ensure social progress for the happiness of the greatest number. Thus, excluding people from an economic system without considering their interests is considered a destruction of the common good. According to the United Nations (1962), population is one of the most important factors of economic productivity, as it influences the rate of development of a country. Women represent 49.6% of the world’s population and young people aged 10 to 24 represent 15.5% of the world’s population (UN World Youth Report, 2020; World Bank, 2020). In Cameroon, youth and women represent more than 60% of the population, but remain the most economically excluded (BUCREP, 2005). This reality appears to be a challenge for a country that wants to be an emerging country by 2035. The main objective of this paper is to show the role that entrepreneurial development could play in promoting the economic inclusion of youth and women in Cameroon. It is expected to raise awareness among public authorities as well as the private sector of the importance of economic inclusion of youth and women through entrepreneurship development. Based on studies carried out by credible international and local institutions, we focus on the challenges of entrepreneurship in the context of the economic inclusion of youth and women and the opportunity of entrepreneurship for the economic inclusion of young people and women in Cameroon.
Topic:: Economics, Women, Entrepreneurship, Discrimination, Youth, Equality, and Inclusion
Political Geography:: Africa and Cameroon

419. Russia's Influence in MENA After a Year of War in Ukraine

Author:: Matthew Czekaj, Iulia-sabina Joja, Alex Vatanka, Yörük Işık, Charles Lister, and Roger Kangas
Publication Date:: 02-2023
Content Type:: Video
Institution:: Middle East Institute (MEI)
Abstract:: MEI Managing Editor Matthew Czekaj speaks with scholars Iulia-Sabina Joja, Alex Vatanka, Yörük Işık, Charles Lister, and Roger Kangas on Russia's current standing in the Middle East a year since re-invading Ukraine. How has Russian aggression in Ukraine redrawn Moscow’s relationships in the MENA region? And as the Middle East increasingly becomes a key area of global great power competition, is Russia still a meaningful player there, politically, economically, militarily, and diplomatically?
Topic:: Foreign Policy, Diplomacy, Economics, Politics, Military, and Russia-Ukraine War
Political Geography:: Russia, Ukraine, Middle East, Eastern Europe, and North Africa

420. China’s Infrastructure Projects in the Middle East: Lessons from China’s Engagement Elsewhere

Author:: Dominika Urhová
Publication Date:: 12-2022
Content Type:: Working Paper
Institution:: Moshe Dayan Center for Middle Eastern and African Studies
Abstract:: In our latest issue of Iqtisadi, Ms. Dominika Urhova discusses the economic strategy and role of China in the Middle East, and analyzes the implications of China's growing influence in the region.
Topic:: Foreign Policy, Development, Economics, Belt and Road Initiative (BRI), and Strategic Engagement
Political Geography:: China, Middle East, and Asia

421. EU-Azerbaijan Economic Relations: New Perspectives and Targets

Author:: CESD Research Team
Publication Date:: 12-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: The study is an example of the series on issues analyzing the EU-Azerbaijan economic relations which can be considered a step forward to empower economic approach in the policy-making process aiming to provide an alternative view in addressing current challenges and developments in Azerbaijan. The European Union’s relations with Azerbaijan have been formulated based on the EU-Azerbaijan Partnership and Cooperation Agreement which entered into force since 1999. In February 2017, the EU and Azerbaijan began negotiations on a new framework agreement designed to enhance the political dialogue, trade and mutually beneficial cooperation covering a wide range of economic aspects. One of the most important strategies of EU in the energy policy is to ensure energy security through diversification of energy routes. Azerbaijan is a strategically important energy partner for the EU and plays a significant role in bringing Caspian energy resources to the EU market. In 2018, the EU and Azerbaijan endorsed joint Partnership Priorities, along the four Eastern Partnership priorities that accompany the political dialogue and economic cooperation….
Topic:: International Relations, Economics, European Union, and Partnerships
Political Geography:: Europe, Caucasus, and Azerbaijan

422. 2022 Retrospective and Trends for 2023

Author:: Sarah Cliffe, Marta Bautista Forcada, Symphony Chau, and Hanny Megally
Publication Date:: 12-2022
Content Type:: Commentary and Analysis
Institution:: Center on International Cooperation (CIC)
Abstract:: One year ago, we started our analysis of trends in 2022 on a pessimistic note, including the long-lasting effects of the COVID-19 pandemic; macro-economic volatility; the risk of a war in Ukraine and escalating tensions over Iran and Taiwan; and increasing divisions between North and South and between China and the West. At the end of 2022, looking ahead to next year, we see some surprising grounds for optimism, even though many of the risks that we pointed to have come to pass. These trends include how multilateralism played a surprisingly successful role in Ukraine, as we consider the Black Sea Grain Initiative and the UN resolutions that passed relating to the conflict, along with agreements during the G20 summit in Bali. Other positive notes pertain to potentially transformative global agreements on damage and loss and international tax cooperation, and the absorption of longer-term lessons on inter-state aggression. However, on the negative end, we close the year facing multiple crises chasing the same (declining) pot of money—whether conflict, humanitarian, socio-economic or climate. For our team’s analysis of trends for 2023, there is a focus on nine areas where politics and economics are closely interlinked, and we expect this to be a dominant theme of 2023.
Topic:: Economics, Politics, United Nations, Multilateralism, and Russia-Ukraine War
Political Geography:: Global Focus

423. Global Peace Index 2022

Author:: Institute for Economics and Peace (IEP)
Publication Date:: 07-2022
Content Type:: Special Report
Institution:: Institute for Economics & Peace (IEP)
Abstract:: This is the 16th edition of the Global Peace Index (GPI), which ranks 163 independent states and territories according to their level of peacefulness. Produced by the Institute for Economics and Peace (IEP), the GPI is the world’s leading measure of global peacefulness. This report presents the most comprehensive data-driven analysis to-date on trends in peace, its economic value, and how to develop peaceful societies. The GPI covers 163 countries comprising 99.7 per cent of the world’s population, using 23 qualitative and quantitative indicators from highly respected sources, and measures the state of peace across three domains: the level of societal Safety and Security; the extent of Ongoing Domestic and International Conflict; and the degree of Militarisation. In addition to discussing the findings from the 2022 GPI, the report includes an analysis of the military conflict in Ukraine. It covers likely increases in military spending, new and emerging uses of technology in the war, its impact on food prices and global shipping routes. The report also contains a deeper analysis on violent demonstrations around the world. This year’s results found that the average level of global peacefulness deteriorated by 0.3 per cent. Although slight, this is the eleventh deterioration in peacefulness in the last fourteen years, with 90 countries improving, 71 deteriorating and two remaining stable in peacefulness, highlighting that countries tend to deteriorate much faster than they improve.
Topic:: Security, Economics, Peace, and Russia-Ukraine War
Political Geography:: Global Focus

424. German Economy Winter 2022: Inching through the energy crisis

Author:: Jens Boysen-Hogrefe, Dominik Groll, Nils Sonnenberg, Nils Jannsen, Stefan Kooths, Vincent Stamer, and Timo Hoffmann
Publication Date:: 12-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: Wholesale prices for gas and electricity have fallen significantly in recent months - even though they are still at a high level. In addition, the burdens on private households and companies caused by high energy costs are to be cushioned by so-called price brakes. Overall, inflation in 2023 will be much lower at 5.4 percent than we had expected in our autumn forecast (8.7 percent). Although real disposable income and, as a result, private consumption are likely to decrease next year, the decline will be much smaller than had been expected a few months ago. As a result, we now expect a slight increase in GDP of 0.3 percent for 2023 (autumn: -0.7 percent). In 2024, GDP is expected to grow somewhat more strongly again at 1.3 percent (autumn: 1.7 percent). The labour market is robust despite the economic slowdown, partly because companies are still desperately seeking skilled workers. The public fiscal balance is likely to deteriorate significantly in 2023 due to the aid packages in response to the energy crisis and displays a deficit of around 4 percent relative to GDP. With the expiry of the aid packages, the deficit will decrease again in 2024.
Topic:: Economics, Monetary Policy, Budget, Business, Labor Market, Energy Crisis, Emerging Economies, and Advanced Economies
Political Geography:: Europe and Germany

425. Economic Zones and Local Income Inequality: Evidence from Indonesia

Author:: Cecília Hornok and Sidan Raeskyesa
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: Economic zones can be powerful drivers of economic growth in developing countries. However, less is known about their distributional impact on the local society. This paper provides empirical evidence from Indonesian provinces on the relationship between economic zones and within-province income inequality. Estimates from panel regressions and synthetic control case studies suggest that this relationship is positive overall. The estimated rise in income inequality after a zone opens is relatively small on average and may be short-lived. However, the average estimate masks large regional differences, which suggests that the inequality implications of economic zone policies depend on local conditions. One explanation for the rise in inequality is that the unskilled population benefits disproportionately less from the policy. As a remedy, we propose education and training programs that target the poor and unskilled and in which companies also actively participate.
Topic:: Economics, Emerging Markets, Globalization, Economic Growth, and Income Distribution
Political Geography:: Indonesia, Asia, and Southeast Asia

426. International Managerial Skill and Big Colombian Exporting Firms’ Performance, 2006-2014

Author:: Federico Merchan
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: This paper uses a sample of the biggest private Colombian exporting firms to propose and estimate a two-step methodology for measuring international managerial skill and calculating its impact on firm performance. The first step quantifies the manager’s organizational capital contribution to improvements in Bloom et al.’s (2021) production efficiency (ability to assemble inputs into final goods) and/or quality capacity (skill to make high quality goods) mechanisms, through the median of export unit value regression residuals at firm-year level (multiplying by -1 the price competition products’ residuals). The second step is regression analysis of firm performance. Results indicate that: i) international managerial quality has a significant and robust positive effect on total export value via the intensive margin, ii) exported value elasticity relative to international managerial quality is around 3 times larger than exported value elasticity relative to exogenous global demand shocks, and iii) better managers in the international market do not necessarily upgrade export quality.
Topic:: Economics, Emerging Markets, International Trade and Finance, Exports, Management, and Labor Market
Political Geography:: Colombia and South America

427. Does ethnic heterogeneity decrease workers’ effort in the presence of income redistribution? An experimental analysis

Author:: Christoph Schütt, David Pipke, Lena Detlefsen, and Gianluca Grimalda
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: Ethnic discrimination is ubiquitous, and it has been shown to exert adverse effects on income redistribution. The reason is that a country’s ethnic majority, if richer than the average, may be unwilling to transfer resources to the country’s ethnic minorities if poorer than the average. A yet untested mechanism is that a country’s ethnic majority may reduce their work effort knowing that their income will finance redistribution to ethnic minorities. We test for this mechanism experimentally in triadic interactions. A German citizen acting as a worker is randomly matched with a recipient who can be another German, an economic migrant, or an asylum seeker in Germany. Workers know that another German citizen may transfer part of their earnings to the recipient. The recipient does not exert any work effort. Even if the recipient’s identity does not affect effort in the aggregate, social identity strongly moderates this relationship. Participants with a strong German identity, i.e., who report feeling close to other Germans, exert significantly less effort than other participants if the recipient is an asylum seeker. They also exert more effort when matched with a German recipient than an asylum seeker, while participants with a less strong German identity do the opposite. Moreover, participants with a strong German identity exert slightly more effort when matched with economic migrants than with asylum seekers, while others tend to do the opposite, albeit statistically insignificantly. Workers’ beliefs over the third party’s redistribution rate do not mediate such results and are generally inaccurate.
Topic:: Economics, Discrimination, Tax Systems, Labor Market, Redistribution, and Welfare State
Political Geography:: Global Focus

428. Capital markets: where we are and what can be done

Author:: Emani Torres
Publication Date:: 11-2022
Content Type:: Case Study
Institution:: Brazilian Center for International Relations (CEBRI)
Abstract:: This text analyzes some of the recent dynamic changes in the Brazilian capital market, with an emphasis on the changes on long-term corporate credit offer, and makes suggestions on public policies. Issuance of debentures by financial institutions, that is, long-term corporate bonds, took a leading role in 2021, which was possible due to a highly favorable institutional framework, such as the existence of a broad and organized public debt market, the sustained fall in domestic interest rates observed in the same year, as well as the shrinkage of BNDES' relevance, historically the main supplier of term credit in Brazil. The text also explores some particularities of the Brazilian capital market in the light of international experiences. Finally, it presents suggestions for public policies to encourage the launch of corporate bonds to a wider audience, as well as to expand BNDES' participation in this segment.
Topic:: Economics, Markets, Political Economy, and Capital
Political Geography:: Brazil and South America

429. A Survey of Importers: Results of a Survey Conducted in Collaboration with the Ethiopian Economics Association

Author:: Ricardo Hausmann, Tim O'Brien, Tim Cheston, Nikita Taniparti, and Ibrahim Worku Hassen
Publication Date:: 11-2022
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: Ethiopia suffers from a chronic shortage of foreign exchange (forex).[1] The resulting lack of access to imports prevents firms from accessing imported inputs required for production. This creates a vicious cycle as exporters are constrained by this same problem, which further reduces overall supply of foreign exchange in the Ethiopian economy. The inability to reliably access foreign exchange for imports affects firm decisions on sourcing, capacity, and output. While the cost of this constraint is known to be high on the Ethiopian economy and firms are known to use a range of measures to attempt to bypass this constraint, quantitative assessments of the problem and response actions by firms are limited. It is in this context that an importer survey was conducted with the goal of informing policy decisions. A total of 202 firms with an active importing license were interviewed in March-April 2022. These firms were randomly sampled from firms registered with an importer license. All firms interviewed reported that they were operating below capacity, often well below capacity. Foreign exchange shortages were the main reason respondent firms cited for not operating at full capacity (63% of firms reporting this as their biggest constraint). Forex shortages far surpass the second and third reasons cited for not operating at full capacity — constraints due to the conflict (13%) and COVID-19 restrictions (11%). Firms operating below capacity cited forex shortages as the main constraint, regardless of whether they imported or not in the previous year. This was the most pressing constraint reported by firms of all sizes and sectors surveyed. It was the most pressing constraint faced by exporters and by foreign-owned firms as well as non-exporters and domestic firms. Amongst the total sample of firms with a renewed importer license, more than one-third of respondent firms (37%) had not imported in FY2020-21. Overall, 74% of firms reported experiencing challenges in accessing forex. Access to forex was reported as most challenging for manufacturing firms and smaller firms but impacted all sectors and firm sizes. The losses attributed to forex scarcity at the firm level were largest for agricultural firms, for micro-firms, and for firms that did not import at all in the previous year. In general, the larger the firm sales, the higher the likelihood that they were able import. The survey found different types of imports for different sectors. Manufacturing firms imported a large share semi-finished goods as imports as compared to agricultural firms that primarily imported finished goods. The survey results find that foreign exchange shortages and an inability to import are most severe for the manufacturing and agriculture sectors, small and micro-sized firms, and all non-exporters. However, the constraint is also the top problem facing all firm types in the survey, including exporters and foreign-owned firms. The primary means of accessing foreign exchange where it did occur was through specialized forex accounts or ‘diaspora’ accounts. The second most common means of accessing foreign exchange was through retention accounts available to exporters. The black market featured in many responses, but questions across the survey suggest that self-reported use of the black market by survey participants is underreported versus actual usage. The ability to source foreign exchange differed significantly by firm size. Exporting firms primarily used retention account earnings, as compared to non-exporters, which relied more on forex accounts. For faster access to forex, most firms reported that they approach banks, followed by turning to the black market. Friends and family abroad also served as a source of forex for one-quarter of firm respondents, and that foreign exchange was often used immediately. Foreign exchange access from banks is nevertheless a major pain point for firms. Most firms (55%) requested forex from a bank in the past year. On average, fulfilled forex requests took three months to be processed when they were fulfilled, but many firms reported that they have an unfulfilled request that has been in the system for more than a year. These firms are especially likely to report foreign exchange access as their top challenge. The survey finds that individual firms do not tend to use both official and black-market foreign exchange sources but rather tend to access all their forex at the (lower) official rate or all at the (higher) black-market. Large firms import most of their products at the official rate. By contrast, most small and micro firms import through other means. Manufacturing firms are also more likely to import all their production through other means and outside of the banking system. Non-exporting firms tended to import through other means than the official rate and outside of the banking system at a higher prevalence than exporting firms. The survey gleaned new insights on the implicit exchange rate that firms face as they navigate official and black-market channels of foreign exchange access. The survey does not allow for a precise estimate of the transaction-weighted exchange rate facing the economy but finds firm-level estimates align with previous macro-level estimates. The implicit exchange rate was higher for non-exporting firms, which show a greater willingness to pay a higher exchange rate to access imports. This signals the importance of the retention account for exporters to guarantee an import price closer to the official exchange rate. When asked about the maximum rate firms would pay to guarantee access to forex, some groups of firms were willing to pay higher amounts, including all non-exporters, firms that imported in the past year, and those that declared forex access a challenge. When compared to the implied rate they paid in the past year, many firms are willing to pay more than the implied rate to guarantee access to forex. Firm perspectives on policy changes to the exchange rate underscored challenges faced by policymakers. Current policy has been one of a crawling peg, with changes within the last several years to increase the rate of devaluation. The survey asked respondents about their support for faster devaluation, for a one-off movement to unify the official rate with the black-market rate, or about alternative exchange rate systems such as a floating exchange rate. Most respondents (71%) opposed maintaining the current regime, yet no option received majority support. Most firms appear to want both a stronger exchange rate and easier access to foreign exchange despite a tradeoff between these two priorities. The largest share of support for policy change was to adjust the exchange rate such that the official rate matches the black-market rate.
Topic:: Development, Economics, Imports, and Collaboration
Political Geography:: Africa and Ethiopia

430. An Integrated Epidemiological and Economic Model of COVID-19 NPIs in Argentina

Author:: Adolfo Rubinstein, Eduardo Levy-Yeyati, Alejandro López Osornio, Federico Filippini, and Adrian Santoro
Publication Date:: 11-2022
Content Type:: Working Paper
Institution:: The John F. Kennedy School of Government at Harvard University
Abstract:: We added a multi-sectoral economic framework to a SVEIR epidemiological model, combining the economic rationale of the DAEDALUS model with a detailed treatment of lockdown fatigue and declining compliance with Public Health and Social Measures reported in recent empirical work, to quantify the epidemic and economic benefits and costs of alternative lockdown and PHSM policies, both in terms of intensity and length. Our calibration replicates key features of the case and death-curves and economic cost for Argentina in 2021. The model allows us to quantify the short-term policy trade-off between lives and livelihoods and show that it can be significantly improved with targeted pharmaceutical policies such as vaccine rollout to reduce mainly severe disease and the death toll from COVID-19, as has been highlighted by previous studies.
Topic:: Economics, COVID-19, and Epidemiology
Political Geography:: Argentina, South America, and Latin America

431. Gendering the Indo-Pacific Dialogue: Opportunities for India and Australia

Author:: Priyanka Bhide and Aditi Mukund
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: International Women's Development Agency (IWDA)
Abstract:: Viewing the confluence of the Indian Ocean and Pacific Ocean as a distinctive and interdependent strategic and economic space is fundamentally changing the way both India and Australia think about and examine their relationship with the broader region.i The Indo-Pacific as a strategic construct has grown in prominence in global geopolitical discourse, especially over the last five years. The EU, USA, and several countries in Europe have in place or are developing their own strategies for engagement in the Indo-Pacific region. The European Union collectively advocates for a ‘Free and Open IndoPacific’, designed to foster a ‘rules-based international order, a level playing field, as well as an open and fair environment for trade and investment, tackling climate change and supporting connectivity.’ii For France, the Indo-Pacific is at the heart of its vision for a stable multipolar order, and the Indo-Pacific is listed as a ‘priority and essential partner’.iii Germany too is making an active contribution to shaping the international order in the Indo-Pacific, so that it is ‘based on rules and international cooperation, not on the law of the strong.’iv The significance of the construct is varied for countries that are part of the region. The scope of the conversation in the Indo-Pacific is widening, with more diverse and varied perspectives being brought to the forefront. In this paper, against the backdrop of global Feminist Foreign Policy conversations, we focus on how Australia and India view the Indo-Pacific; marking the shifts in both countries’ approaches, along with bringing in important aspects of their bilateral relationship, highlighting how the Indo-Pacific has grown in significance to become a foreign policy priority, how both India and Australia have incorporated a gender lens in their actions, and what could be the avenues for Australia and India to apply such a lens in their collaborations.
Topic:: Foreign Policy, Economics, Geopolitics, Multipolarity, Dialogue, and Gender
Political Geography:: India, Australia, and Indo-Pacific

432. Defying United Nations Sanctions: Three Reasons for African Engagement with North Korea

Author:: Tycho van der Hoog
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The United Nations (UN) sanctions against North Korea are weakened by structural evasion techniques and weak enforcement. The African continent is a crucial node in the global illicit networks of North Korea. This paper examines three motives for African states to cooperate with North Korea, with a particular focus on the context of southern Africa: historical affinity (reciprocity), the practical issue of maintenance dependency (necessity), and the presence of weak enforcement regimes (opportunity). Based on a deep reading of UN Panel of Experts reports, academic literature and policy papers, novel archival material, and an interview with a defected North Korean diplomat, this paper argues that solutions to strengthen the sanctions regime can be successful only if they are grounded in African initiatives.
Topic:: Security, Economics, United Nations, Sanctions, Engagement, and Dependency
Political Geography:: Africa and North Korea

433. The Instability of Preferences: Uncertain Futures and the Incommensurable and Intersubjective Nature of Value(s)

Author:: Richard Bronk and Jens Beckert
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:: The default assumption of standard economics is to treat preferences as exogenously ‘given’, consistent with one another, ‘revealed’ by past choices, and context independent. There has been increased interest recently (within behavioural economics) in the impact of inconsistent or irrational preferences and (more broadly) in dynamic and endogenous preferences. This paper builds on these challenges to standard assumptions by analysing the pivotal role of three aspects of preference formation in explaining capitalist dynamics and market instability. These are the constant creation of new preferences and the indeterminacy of choice sets in the context of widespread product innovation; the moral indeterminacy implied by conflicting and incommensurable social norms attaching to market goods where there is no single scale of value and hence no unique set of rational trade-offs; and, lastly, the contingent social and market construction of the product differentiation, quality attribution, and value assessments central to preference formation. The paper concludes by considering implications for economics as a discipline.
Topic:: Economics, Values, Endogenous Factors, and Preference Formation
Political Geography:: Global Focus

434. Analyzing DPRK's Food Supply and Demand Condition with Food Culture

Author:: Jangho Choi and Bum Hwan Kim
Publication Date:: 12-2022
Content Type:: Working Paper
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Estimation of food supply and demand in North Korea follows the FAO/WFP calorie standard at least 1,640 kcal per person per day. This method is useful in that it can estimate the minimum amount of food shortage for survival, but has a limitation in that it does not accurately reflect real life in that it ignores the food culture of North Korean residents. In this study, the amount of food supply and demand in North Korea was estimated by considering the food culture. The amount of food shortage was calculated by the difference between food consumption and supply. For food consumption, South Korea’s food supply and demand tables (1970 and 1990) and North Korean population were used to consider food culture. The amount of food supply considered North Korean food production, imports, and exports. As a result of the estimation, first, when the food shortage in North Korea in 2014 was estimated by reflecting South Korea’s food supply table in 1970, 2,388.4 thousand tons were oversupplied, resulting in a food supply and demand rate of 1.26. Second, assuming that North Korea’s food culture changes similarly to that of South Korea in 1990 due to the spread of marketplaces or the unification of South and North Korea, total food consumption increased by 33.3%, and the food supply and demand rate fell from 1.26 to 0.95. The results of this study have two implications. First, it is possible that the cereals shortage estimated by FAO/WFP based on the minimum calorie required for survival was overestimated. Second, North Korea’s carbohydrate-oriented food aid does not take North Korea’s food culture into account, so it is necessary to increase support for fish, meat, fruits and vegetables.
Topic:: Economics, Culture, Food Security, Consumption, and Supply and Demand
Political Geography:: Asia and North Korea

435. You May not be Interested in COVID, but COVID is Interested in You

Author:: James F. Keeley
Publication Date:: 02-2022
Content Type:: Journal Article
Journal:: Journal of Military and Strategic Studies
Institution:: Centre for Military, Security and Strategic Studies
Abstract:: The COVID-19 pandemic has presented a clear threat to the lives of individual Albertans; together with the measures taken in response, it has posed a clear threat to their economic circumstances while uncovering existing social fissures in terms of the variable vulnerability of sub-populations to both the virus and those response measures. It qualifies as a significant security threat on these levels. In responding to this threat, the Alberta government marshalled its institutional resources and had to adapt them to circumstances of a scale and type last seen one hundred years ago. It had to do so under economic and political conditions that already presented significant challenges, and that were in some cases strongly exacerbated by its policy choices and their consequences. Finally, it had to do so in the face of strong, yet often contradictory, public pressures. These challenges and difficulties found in the microcosm of a single Canadian province in confronting a specific sort of problem may be of interest and use in considering the prospect, particularly of future, especially non-traditional, security challenges.
Topic:: Security, Economics, Government, Public Health, and COVID-19
Political Geography:: Canada and North America

436. An Impact Analysis of California’s State-County Assessors’ Partnership Agreement Program

Author:: Geoffrey Propheter
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: California Journal of Politics and Policy
Institution:: Institute of Governmental Studies, UC Berkeley
Abstract:: California’s State-County Assessors’ Partnership Agreement Program (SCAPAP) provided select counties with a dollar-for-dollar matching grant from the state for assessment administration over a three-year period from fiscal year 2015 through 2017. One of the policy goals for the grant was to finance administrative activities that would lead to an increase in the property tax base, thereby increasing property tax revenue. This study evaluates how well the grant accomplished this goal. Using the synthetic control method on data from 2007 through 2018, I find little evidence SCAPAP funds increased participating counties’ property tax base. Since the purpose of the program is based on sound economic theory, I caution interpreting this conclusion as a reason to discontinue policy experimentation.
Topic:: Economics, Governance, Tax Systems, and Fiscal Policy
Political Geography:: California, North America, and United States of America

437. Colorado’s Political Climate, Economy, and Budget during COVID-19

Author:: Michael Berry
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: California Journal of Politics and Policy
Institution:: Institute of Governmental Studies, UC Berkeley
Abstract:: The COVID-19 pandemic was a monumental exogeneous shock to the Colorado economy. Prior to the pandemic’s onset the state reported historically low unemployment alongside robust growth in personal income levels and state revenue. While the negative economic effects of the pandemic were sharp, the state’s economic recovery is outpacing what many economists previously projected. The General Assembly was compelled to impose major cuts to last year’s budget, many of which were restored with the enactment of the budget for the 2021–2022 fiscal year. The General Fund budget of $13.6 billion proposed by Democratic Governor Jared Polis represented a substantial spending increase of 20 percent from the prior year. The enacted $13.1 billion General Fund budget received nearly unanimous approval among Democrats and modest Republican support. Policymakers ultimately sought to balance competing priorities across many issue areas, while also preparing for the future with a major investment of $1.5 billion to the state’s reserve fund.
Topic:: Economics, Governance, Budget, Pandemic, and COVID-19
Political Geography:: North America, Colorado, and United States of America

438. Time for a Significant Reimagining of Government in Wyoming?

Author:: Robert Schumann and Jeffrey Jensen
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: California Journal of Politics and Policy
Institution:: Institute of Governmental Studies, UC Berkeley
Abstract:: Despite $430 million in spending reductions and the loss of 324 state positions, Wyoming’s 2021 supplemental budget reflected an improved pandemic-driven economic climate. Recent budgetary optimism was attributed to increased performance in energy production and pricing, pent up demand for tourism and travel, and higher than expected sales tax revenues. Continued reliance on Wyoming’s Permanent Mineral Trust Fund, and the state’s attachment to the remainder of its boom-and-bust revenue structure, left surprisingly little appetite for discussions of revenue diversificatioan. Instead, “right-sizing” state government to fit the current revenue stream seems more consistent with the spirit of the times.
Topic:: Economics, Budget, Fiscal Policy, Pandemic, and COVID-19
Political Geography:: North America, United States of America, and Wyoming

439. International Currency Instability and Food Security: Time to Rebuild “Real Food Economies”?

Author:: Jose M. L. Montesclaros
Publication Date:: 10-2022
Content Type:: Commentary and Analysis
Institution:: Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:: Debt-distressed countries are handicapped in riding the rising costs of imported food and farming inputs amidst monetary policy shifts internationally. It is timely to rebuild “real food economies” to improve food availability and affordability, hence averting food crises and ensuing political and social instability.
Topic:: Economics, Monetary Policy, Food, and Food Security
Political Geography:: Global Focus

440. Is Doughnut Economics a Means Towards Achieving Planetary Health?

Author:: Jonathan Ramakrishna
Publication Date:: 11-2022
Content Type:: Working Paper
Institution:: Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:: With the advent of climate change, the global focus is no longer lingering alone on climate change mitigation and has shifted towards climate adaptation as well. The 2015 Paris Agreement’s target of restricting the average temperature rise in the 21st century to well below two degrees Celsius compared to pre-industrial levels is increasing unlikely, given the inaction of states and the global lack of progress in meeting Paris Agreement goals. As nations scramble to meet Nationally Determined Contributions (NDCs) and effectively design climate policies, the global crisis has given rise to a new domain, Planetary Health. Planetary Health, an interdisciplinary field, is described as a solutions-focused discipline which aims to analyse, mitigate, and resolve human disruption to Earth’s natural systems in the new Anthropocene epoch. The Anthropocene epoch, on the other hand, is established as a geological climate where human activity is drastically altering earth’s systems to an extent that will be reflected in fossil records. Planetary Health inextricably links human health to the health of the planet and illustrates the interdependency of the two, and this relationship has been substantiated by findings which concur that countries with higher ecological threats concurrently experience greater social vulnerability. When climate-induced disasters occur due to human action, there are subsequent consequences on food, water, energy, and human security. The consequences are disproportionately felt by vulnerable communities in states that lack resources and capabilities to address the consequent impacts on human security, and climate instability is a driving force behind political instability. Thus, there is cause for concern not only for the planet’s health but also for human health as the environment’s health continues to dwindle in the Anthropocene Epoch. As such, the concept of Planetary Health is a response to threatened climate security and human security.
Topic:: Economics, Health, International Cooperation, and Strategic Stability
Political Geography:: Global Focus

441. The Effects of Online Export Promotion Policies for SMEs in Korea

Author:: Kyong Hyun Koo
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study explores the impact of participating in five major online export support programs currently being implemented by the Ministry of SMEs and Startups on online exports of SMEs in 2018-20. The main findings show that the online export support program appear to significantly have improved the online export-related performance of participating SMEs in a short period of time. In addition, the online export support program’s online export enhancement effect tend to be relatively greater when the participating SMEs have relatively little experience with online export and low sales volume. Manufacturers also appear to benefit from support programs more than resellers. In summary, the findings suggest that Korea's online export support policy has had a significant impact in providing incentives for SMEs to start/increase online exporting.
Topic:: Economics, Business, Exports, and Manufacturing
Political Geography:: Asia and South Korea

442. The Emergence of African Continental Free Trade Area Agreement and Lessons from the Asia-Pacific Trade Agreement

Author:: Samuel Igbatayo
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Africa’s regional integration agenda arrived at a cross roads in 2019, with the adoption of the African Continental Free Trade Area (AfCFTA) agreement. The AfCFTA framework came into force on 30th May, 2019, with its ratification by The Gambia, which brought the total number of African Union (AU) member state ratifications to twenty-two, the minimum threshold for AfCFTA implementation (Baker McKenzie 2019). As of May; 2022, forty-three of the 55 African countries have ratified the AfCFTA agreement (African Union 2018). The 12th Extraordinary Session of the Assembly of the African Union in Niamey on 7th July; 2019, witnessed the launching of AfCFTA’s operational phase, which is governed by five instruments, namely: the rules of origin, the online negotiating forum, the monitoring and elimination of non-tariff barriers; a digital payment system and the African Trade Observatory. In addition, the beginning of trade under the terms of the agreement was set for July 1, 2020 (TRALAC 2020). A free trade agreement (FTA) can be aptly described as a pact between two or more countries on areas in which they agree to lift most or all tariffs, and other barriers to imports and exports among them (Barone 2019). Under a free trade framework, goods and services can be traded across international borders, with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The theory of free trade Agreements is rooted in classical economics, dating back to the era of Adam Smith. During this period, David Ricardo (1772-1823), a British political economist, was acknowledged with pioneering thoughts on free trade as a key instrument for wealth accumulation. The evolution of preferential trade agreements is traceable to the rise of European countries after World War II, with the establishment of the European Coal and Steel Community in 1951, a development that eventually culminated in the creation of the European Union (EU) (Johnston 2019). Spurred by the success of regional bodies with free trade agreements and Africa’s poor trading performance; estimated at a paltry 3% of annual global trade, the African Union embarked upon the creation of the AfCFTA agreement as a tool for Intra-Africa trade and regional integration.
Topic:: Economics, Treaties and Agreements, Regional Integration, and Free Trade
Political Geography:: Africa and Asia-Pacific

443. Understanding Hainan Free Trade Port: China's Efforts to Explore High-level Opening-up

Author:: Wenfeng Wei
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: On 13 April 2018, upon the 30th anniversary of Hainan province, Chinese President Xi Jinping announced to build Hainan into a free trade port. According to the Master Plan for the Construction of the Hainan Free Trade Port released by the State Council on 1 June 2020, China aims to build this southern island province into a high-level free trade port with global influence by the middle of the century. As China's largest special economic zone, Hainan is expected to become the frontline of China's integration into the global economic system. Noting that the world is facing a new round of major development, changes and adjustment, with protectionism and unilateralism on the rise and economic globalization facing greater headwinds, it was also a strategic decision of Chinese authorities based on the domestic and international landscapes. As such, Hainan Free Trade Port (HNFTP) is more than a regional development initiative, and it has a much bigger role to play in China’s reform and opening endeavors.
Topic:: Development, Economics, Special Economic Zones, and Free Trade
Political Geography:: China and Asia

444. Digital Divide in Latin America and Opportunities for South Korea-Spain Cooperation

Author:: Angela Sagnella
Publication Date:: 09-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: The purpose of this brief report is to sketch the current characteristics of the digital divide in Latin America, especially following the effects generated by the spread of the Covid-19 pandemic, in an attempt to understand its crucial aspects and possible outlooks. In this regard, South Korea-Spain future cooperation on digitalization in Latin America will be discussed, as the two countries – by virtue of the long diplomatic tradition that unites them – are developing new horizons of cooperation to fill digital gaps in Latin America.
Topic:: Economics, Science and Technology, COVID-19, and Digital Cooperation
Political Geography:: South Korea, Latin America, and Spain

445. The Export Effect of Servitization of Manufacturing

Author:: Hyunsoo Kim, Jungu Kang, Hyeyoon Keum, and Jae Wook Jung
Publication Date:: 09-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study examines the status and characteristics of Korea’s servitization of manufacturing and its impact on business performance and exports. In particular, we focus on servitization in manufacturing, which can be seen as a part of servicification in manufacturing. It is the phenomenon of manufacturing firms producing more services as final goods and provide them to the market with their products. Looking at the status of servitization in the manufacturing sectors focusing on the service sales generated by manufacturing firms, the servitization in manufacturing in Korea has gradually increased. Sales in service sectors, which stood at 4.5% of the total sales of manufacturing firms in 2012, surged to 15.9% in 2017, and then decreased to 6.9% in 2019. Based on the stylized fact that servitization in manufacturing in Korea has gradually increased, we empirically analyze the effect of servitization in manufacturing on the business performances and exports. The result suggets that the servitization in manufacturing is progressing in the direction of improving firm’s productivity, profitability, and exports.
Topic:: Economics, Business, Manufacturing, and Services
Political Geography:: Asia and South Korea

446. Korea's Economic Presence in Iran under Trump and Its Prospects during the Biden Presidency

Author:: Shirzad Azad
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: On July 14, 2015, when Iran and the 5+1 group (the United States, Russia, China, France, Britain, and Germany) ultimately agreed over the Joint Comprehensive Plan of Action (JCPOA), the Republic of Korea (ROK) was practically one of the top three trade partners of the Persian Gulf country. In early May 2016 and only a few months after the nuclear deal was carried through, the then Korean President, Park Geun-hye, made an official visit to Iran where the two countries vowed to ratchet up their economic relations from roughly $6 billion to more than $18 billion in the years to come. Accompanied by “the largest business delegation in the history of Korean presidential trips,” Park’s high-profile trip to Iran persuaded many interested experts and observers to believe that the East Asian country was really determined to shore up its economic weight in Iran by drawing certain policies relevant to the long-term presence of Korean businesses in the Middle Eastern country (Choi 2016). Despite all those upbeat expectations about the ROK’s future economic and technological role in Iran, however, various data and statistics coming out indicate that over the past several years nearly all well-known Korean brands and products have increasingly lost their market share in the Mideast country to brands and goods supplied by other competitors. As a matter of fact, in the late 1990s and early 2000s the East Asian nation emerged as one of the Persian Gulf country’s top trading partners in the world, outstripping a number of Tehran’s traditional trading partners from the West. And while Korea managed to even expand its economic presence in Iran in the heydays of sundry international sanctions levied against the Middle Eastern country over its contentious nuclear program a couple of years before the JCPOA was eventually agreed in 2015, the ROK has been doing relatively poor in Iran during the past years (Azad 2018). Such lackadaisical performance, epitomized by abandoning the long-established pattern of significant trade in energy with Iran, has critically influenced a sharp decline in the total volume of two-way commerce between the two countries. While the plummeting share of Korean brands and goods in Iranian markets had indubitably something to do with certain policies pursued by the Moon Jae-in-led Korean government, however, the main culprit turned out to be the Trump administration’s unilateral withdrawal from the nuclear deal in May 2018. The crippling sanctions which Washington under Trump subsequently imposed on Iran played a pivotal role in reshaping the scope and size of Korean commercial connections to the Persian Gulf country, though some unprecedented diplomatic and political troubles involving Seoul and Tehran during the past years have also had a lot to do with those punitive economic and financial measures targeting the Iranians. How did then the Koreans respond to those unique circumstances rendered largely by Trump’s approach toward the Persian Gulf country? What are going to be the prospects of a Biden administration’s policy shift for Korea’s economic performance in Iran? This study seeks to shed some light on Trump’s Iran policy with regard to Korea, its repercussions for the East Asian nation’s economic relationship with the Middle Eastern country, and potential solutions to chip away at those impediments under a Democrat administration in Washington led by Joe Biden.
Topic:: Foreign Policy, Economics, Donald Trump, JCPOA, and Joe Biden
Political Geography:: Iran, Asia, South Korea, and United States of America

447. Recent Marriage and Labor Supply Pattern of Young Chinese Women

Author:: Yoon Jae Ro and Jeonghwan Yun
Publication Date:: 09-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: In this paper, we examine the impact of a sibling gender on educational attainment, earnings, family formation for a recent cohort of women in China. Family characteristics such as number of siblings, sibling gender composition, and parents’ characteristics may play an important role in children’s life as the presence of a sibling can affect parents’ treatment of the remaining children. Especially male siblings can affect children’s outcome through various pathways as male sibling may pull parental investment of resources away from girls, because boys may be seen as the “higher return” investment (Becker, 1991). We investigate the effect of having a (male) sibling on a daughter by exploiting the change in fertility trend in China induced by the One Child Policy (OCP).
Topic:: Economics, Labor Issues, Women, Marriage, Supply, and Gender
Political Geography:: China and Asia

448. Exchange Rate Predictability Based on Market Sentiments

Author:: Hyo Sang Kim, Eunjung Kang, Yuri Kim, Seongman Moon, and Huisu Jang
Publication Date:: 09-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: It is well-known that exchange rates are difficult to forecast using observed macro-fundamental variables. This discrepancy between economic theory and empirical results is called the Meese and Rogoff puzzle. The purpose of this study is to address this puzzle from a new approach. Rather than pursuing a linkage between macro-fundamentals and exchange rates, we focus on the market sentiment index as a factor that could possibly enhance exchange rate predictability. The analysis folds into three phases. First, we conducted an assessment of the traditional exchange rate predictability model, as well as the augmented traditional model incorporating the market sentiment index. Second, we predicted the exchange rate by applying the market sentiment index, based on the contrarian opinion investment strategy commonly used by foreign exchange dealers. Finally, we analyzed if the machine learning model incorporating both economic fundamentals and market sentiment index could enhance the predictability of the exchange rate.
Topic:: Economics, Markets, and Exchange Rates
Political Geography:: Global Focus

449. Development of the IT Industry and Structural Transformation: Focused on IT Cooperation with Russia, Kazakhstan and Uzbekistan

Author:: Minhyeon Jeong, Jiyoung Min, and Dongyeon Jeong
Publication Date:: 06-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study was designed as a primary study to analyze the economic significance and potential of cooperation with Russia, Kazakhstan and Uzbekistan in the IT sector, and to derive implications for new directions between Korea and the three countries with the advent of the fourth industrial revolution era. The goal of the study is to discuss what the development of the IT industry means for the three economies, examine the characteristics of each country, and gain policy implications on how cooperation with Korea should proceed in the future. To this end, this study is consisted of the following four components. First, the economic significance of IT technology cooperation with Russia, Kazakhstan, and Uzbekistan is viewed from the perspective of structural transformation. Second, the effect of IT cooperation between Korea and Russia on the Russian economy is quantitatively estimated through the analytical framework of structural transformation. Third, to supplement the limitations of theoretical discussions and derive customized cooperation directions for each country, the current status and policies of the IT industry in the three countries are examined in detail. Fourth, IT technology subsectors promising for cooperation between Korea and Russia are identified, from the patent citation analysis and network analysis.
Topic:: Development, Economics, Science and Technology, Industry, and Information Technology
Political Geography:: Russia, Central Asia, Eurasia, Kazakhstan, and Uzbekistan

450. Korea’s Regional Cooperation and ODA Policy in Asia: Performance and Challenges

Author:: Aila Yoo and Yul Kwon
Publication Date:: 08-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: The COVID-19 pandemic and ongoing geopolitical conflicts have deteriorated socio-economic conditions all around the world. As developing countries in Asia have made enormous progress in economic and social development based on the stable ground for growth, the development gap within the region has also been expanded. In addition, the region’s socio-economic conditions have become worse after the pandemic. Along with the pandemic crisis, there are several issues that have negatively influenced the region’s sustainable growth, such as climate change and climate-related natural disasters, and conflicts. These multiple crises change the development needs in the region, and cannot be solved through the efforts of any sole country but must be tackled through regional cooperation. While Korea strengthens its strategic approach for regional economic cooperation to expand its partnership with emerging countries and its Official Development Assistance (ODA) volume is highly concentrated in Asia region, Korea still focuses on cooperation with each country based on priority countries’ Country Partnership Strategy (CPS) without any integrated regional cooperation strategy. Strengthening inclusive partnerships would be a key to reduce the development gap in the region, by supporting regional programs such as the ASEAN Connectivity and Mekong Subregion development projects. To improve policy coherence and tackle the region-wide problems, Korea should adopt an integrated regional cooperation approach by reflecting the characteristics of Asia. This study analyzes changes in the socio-economic conditions and development environment in the Asia region and provides policy implications for preparing regional cooperation strategy for Asia.
Topic:: Economics, Regional Cooperation, Partnerships, Economic Cooperation, and COVID-19
Political Geography:: Asia and South Korea

451. What Ukraine Taught NATO about Hybrid Warfare

Author:: Sarah J. Lohmann, Chuck Benson, Vytautas Butrimas, Georgios Giannoulis, and Gabriel Raicu
Publication Date:: 11-2022
Content Type:: Special Report
Institution:: The Strategic Studies Institute of the U.S. Army War College
Abstract:: Russia’s invasion of Ukraine in 2022 forced the United States and its NATO partners to be confronted with the impact of hybrid warfare far beyond the battlefield. Targeting Europe’s energy security, Russia’s malign influence campaigns and malicious cyber intrusions are affecting global gas prices, driving up food costs, disrupting supply chains and grids, and testing US and Allied military mobility. This study examines how hybrid warfare is being used by NATO’s adversaries, what vulnerabilities in energy security exist across the Alliance, and what mitigation strategies are available to the member states. Cyberattacks targeting the renewable energy landscape during Europe’s green transition are increasing, making it urgent that new tools are developed to protect these emerging technologies. No less significant are the cyber and information operations targeting energy security in Eastern Europe as it seeks to become independent from Russia. Economic coercion is being used against Western and Central Europe to stop gas from flowing. China’s malign investments in Southern and Mediterranean Europe are enabling Beijing to control several NATO member states’ critical energy infrastructure at a critical moment in the global balance of power. What Ukraine Taught NATO about Hybrid Warfare will be an important reference for NATO officials and US installations operating in the European theater.
Topic:: Security, NATO, Economics, Infrastructure, Cybersecurity, Renewable Energy, and Hybrid Warfare
Political Geography:: Russia, Ukraine, Eastern Europe, Central Europe, Western Europe, and Southeast Europe

452. Engines of Prosperity: The Promise of the Zones for Employment and Economic Development (ZEDEs) in Honduras Image

Author:: Ryan C. Berg and Matthew Carusi
Publication Date:: 10-2022
Content Type:: Special Report
Institution:: Center for Strategic and International Studies (CSIS)
Abstract:: Special economic zones (SEZs) are autonomous zones designed to facilitate free-trade operations. SEZs can be broken down into the following types of zones: free-trade zones, which are duty-free areas to warehouse and transit goods; enterprise zones, which provide tax benefits to underperforming industries; specialized zones, which include technology parks; and freeports—the largest type of economic zones, combining work and residential spaces. A 2008 World Bank report defined SEZs as having the following characteristics: a geographically secured area, a single management system, eligibility for benefits based on the location within the zone, and a separate customs area. Advocates of SEZs argue that they can improve a country’s economic standing by making it more competitive on the global stage. One way to achieve this goal is by improving a country’s infrastructure. Building out more extensive road networks or port systems is beneficial not only for businesses operating inside the SEZ, but also for the entire country’s future economic trajectory. Another argument in favor of SEZs is that they strengthen a country’s institutional framework. In developing countries, this narrative can be particularly relevant because weak institutions often constrain foreign investors from making large-scale commitments. SEZs attempt to fill this gap by increasing the efficiency of the regulatory frameworks, property rights, and investment flows. Since a wealth of SEZs are awarded a certain level of legal autonomy, establishing these unique governance structures can be arranged. SEZs offer similar advantages for streamlining efficiency in the labor market. Wages can be more flexible and the process of hiring and firing employees can become easier. Workers can further be attracted by the availability of better healthcare and education systems, as well as by the availability of internet or phone services. All these factors are crucial in attracting the best possible talent, both domestically and internationally, giving them reasons to set up operations inside an SEZ. The intended results of these characteristics are that GDP per capita within the SEZ would increase substantially and that surrounding areas would be able to reap these rewards. These are known as spillover effects, wherein new influxes of foreign and intellectual capital would spill over into the surrounding communities. However, the verdict on this subject is less clear. According to a 2017 World Bank study, the literature on SEZs does not confirm a clear link between achieving widespread spillovers and increasing regional employment levels. There is more evidence to support the claim that limited spillover effects exist in surrounding areas up to 50 kilometers outside the SEZ.
Topic:: Development, Economics, Employment, and Special Economic Zones
Political Geography:: Central America, North America, and Honduras

453. How Innovative Financing Models Can Support the Scaling of Supply Chain Innovations

Author:: Allie Dichiara and John Simon
Publication Date:: 10-2022
Content Type:: Special Report
Institution:: Center for Strategic and International Studies (CSIS)
Abstract:: Substantial progress has been made toward achieving Sustainable Development Goal (SDG) 3: Health and Well-Being for All. However, progress is plateauing as global health development funding decelerates, and much of the remaining gaps are among the hardest to address, especially for the most vulnerable and hardest-to-reach communities. A key element to reigniting progress toward SDG 3 is significantly improving the effectiveness of the current fragmented health commodity supply chain, through which billions in spending—approximately $6 billion in donor funds in 2015 and $50 billion in overall spending in 2017—flow each year to low- and lower-middle-income countries (LMICs). Fortunately, there is a growing number of innovative supply chain solutions available across sub-Saharan Africa that could have the potential to dramatically improve the underperforming status quo.
Topic:: Economics, Science and Technology, Innovation, and Supply Chains
Political Geography:: Africa

454. A Model Comprehensive MSME Policy for Indian States

Author:: Richard M. Rossow
Publication Date:: 11-2022
Content Type:: Special Report
Institution:: Center for Strategic and International Studies (CSIS)
Abstract:: Small businesses are the job-creating engines of any healthy economy. Having a supportive policy environment can help high-potential businesses accelerate. Creating such an environment is a shared responsibility of both the central government and India’s 28 states. Many state governments in India have piecemeal policies and programs to support micro, small, and medium enterprises (MSMEs). About one-third of India’s states have worked to craft multifaceted and supportive policies and practices to encourage MSME growth. This paper reviews the ideas already enacted in different Indian states, as well as in national and subnational governments around the world. Developing a single comprehensive MSME policy is an effective approach for a state-level government to consider. It allows small firms to find policy incentives and programs in a single place, and perhaps most importantly, it allows a state to directly consider a range of intertwined incentives that can work together. This will maximize the positive impact to small firms that are poised for growth. Facilitating the growth of MSMEs will have a much wider impact on India’s job growth overall. The large multinational manufacturers that India hopes to lure to invest through programs like Make in India require a diverse and efficient network of suppliers. Supporting MSME growth can create a multiplier effect—driving new investment and employment generation by larger firms. The central government has affirmed a 25 percent target of gross domestic product (GDP) for manufacturing, up from around 14 percent today. This white paper provides leading international examples in the promotion of small businesses, while also enumerating best practices from Indian states’ MSME policies. The final section lays out the 30 elements commonly utilized by Indian states to offer targeted assistance to MSMEs as a roadmap for other states that want to provide best-in-class policy interventions.
Topic:: Development, Economics, Business, and Job Creation
Political Geography:: India and Asia

455. A Future Built on Data: Data Strategies, Competitive Advantage and Trust

Author:: Susal Ariel Aarsonson
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: In the twenty-first century, data became the subject of national strategy. This paper examines these visions and strategies to better understand what policy makers hope to achieve. Data is different from other inputs: it is plentiful, easy to use and can be utilized and shared by many different people without being used up. Moreover, data can be simultaneously a commercial asset and a public good. Various types of data can be analyzed to create new products and services or to mitigate complex “wicked” problems that transcend generations and nations (a public good function). However, an economy built on data analysis also brings problems — firms and governments can manipulate or misuse personal data, and in so doing undermine human autonomy and human rights. Given the complicated nature of data and its various types (for example, personal, proprietary, public, and so on), a growing number of governments have decided to outline how they see data’s role in the economy and polity. While it is too early to evaluate the effectiveness of these strategies, policy makers increasingly recognize that if they want to build their country’s future on data, they must also focus on trust.
Topic:: Economics, Governance, Data, and Competition
Political Geography:: Global Focus

456. Merger Policy for a Dynamic and Digital Canadian Economy

Author:: Keldon Bester
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: As an element of competition and antitrust law frameworks, merger policy plays an important role in preventing acquisitions that would otherwise allow incumbent firms to extinguish competitive threats and entrench their dominance. But evidence suggests that current approaches to merger law in Canada and abroad have underestimated the harms these transactions can pose to competition and overestimated the effectiveness of the remedies intended to mitigate those harms. Although relevant across the Canadian economy, this permissive treatment of mergers is particularly pronounced in digital markets, where platform business models, the importance of potential competitors and the role of intangible assets such as data as a barrier to entry test the assumptions underlying the country’s merger law. Canada’s current law and jurisprudence mean the Competition Bureau, Canada’s sole competition authority, is limited in its ability to detect potentially harmful transactions, faces material barriers to intervening and fully remedying the harms of those transactions, and is unable to assess the outcome of previous action or inaction. This paper provides recommendations for Canada to ensure its merger law is calibrated for a modern economy.
Topic:: Economics, Regulation, Digital Economy, and Digitalization
Political Geography:: Canada and North America

457. A Digital Loonie among Many Digital Currencies: Prospects and Outlook

Author:: Pierre L. Siklos
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: Global interest in digitalization is growing in response to the COVID-19 pandemic and driving central banks to introduce retail central bank digital currencies (CBDCs). The successful rollout of retail CBDCs will depend on each country’s institutional capacity and the scope of international cooperation and regulation. Retail CBDCs are unlikely to replace domestic currencies but instead complement notes and coins in circulation, offering greater convenience and lower transactions costs.
Topic:: Economics, Science and Technology, Digital Economy, Currency, and Digitalization
Political Geography:: Global Focus

458. Lending to Defaulters: The IMF Updates Its Lending into Arrears Policy

Author:: Gregory Makoff
Publication Date:: 08-2022
Content Type:: Policy Brief
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: The International Monetary Fund’s (IMF’s) “lending into arrears” policy outlines the criteria used by the IMF in deciding whether to loan to a country in default. This policy brief focuses on one of the conditions a country must meet when seeking debt relief from the IMF: it must engage in good faith negotiations with its creditors (known as the good faith criterion). The country must also implement significant financial reforms and provide assurances that it will be able to meet its financial obligations. This policy brief looks at the history of the lending into arrears policy, the controversy surrounding its use during Argentina’s 2005 debt restructuring and the May 2022 update to the policy.
Topic:: Economics, International Cooperation, Finance, and IMF
Political Geography:: Argentina and South America

459. Russian economic nationalism and the vectors of Russian foreign policy

Author:: Rafał Lisiakiewicz
Publication Date:: 06-2022
Content Type:: Journal Article
Journal:: Nowa Polityka Wschodnia
Institution:: Faculty of Political Science and International Studies, Nicolaus Copernicus University in Toruń
Abstract:: In this article, the author wants to test the impact of economic nationalism on the change in Russia’s foreign policy. The author will refer to neoclassical realism, which shows how to combine the issues of power distribution in international relations with the influence of the domestic level of the state on the process of creation of the foreign policy. In terms of neoclassical realism, economic nationalism is a variable that shapes the perception of the economic challenges facing Russia. The author also points out that economic nationalism is also related to the protectionist policy of the Russian Federation. Thus, it influences the shaping of processes within and outside the country. The author recognizes that in the process of creating the Russian foreign policy decisions, economic nationalism should be linked to other factors, especially security issues and Russia’s general strategic culture, in order to obtain the final set of premises that will determine Russia’s shifts in foreign policy. The tensions related to the role of the EU and NATO in the countries of Eastern Europe clearly influenced the level of cooperation between Russia and the West. Nevertheless, economic issues in this regard were also extremely important. Russia’s power position was based on the economic potential.
Topic:: Foreign Policy, NATO, Economics, Nationalism, and European Union
Political Geography:: Russia and Eurasia

460. The Russia-Ukraine Conflict: Economic Consequences on Europe and the World

Author:: Philip Fwaldin Kasuwa
Publication Date:: 09-2022
Content Type:: Journal Article
Journal:: Nowa Polityka Wschodnia
Institution:: Faculty of Political Science and International Studies, Nicolaus Copernicus University in Toruń
Abstract:: A number of international sanctions have been placed on Russia since it launched an attack on Ukraine on February 24, 2022, in order to persuade the country to de-escalate the conflict. The sanctions imposed on Russia, while designed to harm the Russian economy, had unintended consequences on the world economy, primarily through the disruption of global supply chains. Energy supply shocks, commodities and trade supply shocks were all caused by the conflict. In many nations, this resulted in an increase in worldwide inflation. Despite the fact that Israel and Turkey were instrumental in mediating a peaceful end of the conflict between Russia and Ukraine, the economic fallout from the crisis continued to reverberate throughout Europe and beyond.
Topic:: Economics, Sanctions, Commodities, Trade, Supply Chains, and Russia-Ukraine War
Political Geography:: Russia, Ukraine, and Eastern Europe

461. Istanbul Journal of Economics: Volume 72 Issue 1

Author:: Gökhan Karabulut
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: Istanbul Journal of Economics
Institution:: Istanbul University Faculty of Economics
Abstract:: Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:: Debt, Development, Economics, Budget, Finance, Investment, Trade, Unemployment, and COVID-19
Political Geography:: Europe, Turkey, and Asia

462. Istanbul Journal of Economics: Volume 72 Issue 2

Author:: Gökhan Karabulut
Publication Date:: 06-2022
Content Type:: Journal Article
Journal:: Istanbul Journal of Economics
Institution:: Istanbul University Faculty of Economics
Abstract:: Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:: Economics, Islam, Religion, Communications, Natural Resources, Finance, Internet, Economic Growth, Macroeconomics, Currency, Unemployment, Sustainability, COVID-19, BRICS, Labor Market, Economic Stability, Consumer Behavior, Rent-seeking, Energy, and Wages
Political Geography:: Europe, Turkey, and Asia

463. How to save the WTO with more flexible trading rules

Author:: Robert Z. Lawrence
Publication Date:: 12-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: The clash between the Western and Chinese economic systems is threatening the world trading system, with countries increasingly using trade as a tool to coerce other countries. It is imperative to return to an inclusive, rules-based international trading order before the problems in trade spill over into the other geopolitical frictions that plague the world. This Policy Brief argues for a system that steers between two extremes that have emerged: “deep integration,” a single undertaking in which all members of the World Trade Organization (WTO) are expected to adhere to all rules regardless of their preferences and circumstances, and “decoupling,” in which groups of countries centered on the United States or China limit trade with each other. Instead, Lawrence says, the world trading system should have a “variable geometry” that allows open plurilateral agreements among self-selected members that desire deeper integration on particular issues while allowing members that prefer to implement distinctive domestic policies to remain outside some of these agreements and follow a set of more limited rules. The universal rules would permit diversity but still promote trade between all countries through measures such as safeguards that would deal mainly with the most harmful systemic frictions. If the multilateral system is not up to the task of creating such an approach, it is likely to lose its relevance as differentiated regional or topic groupings become increasingly dominant.
Topic:: Economics, International Trade and Finance, World Trade Organization, Reform, and Trade
Political Geography:: Global Focus

464. EU carbon border adjustment mechanism faces many challenges

Author:: Gary Clyde Hufbauer, Jeffrey J. Schott, Megan Hogan, and Jisun Kim
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: This Policy Brief assesses the evolving EU Emissions Trading System and EU carbon border adjustment mechanism (CBAM) and explains objections within Europe and from major trading countries likely to be affected by the proposed CBAM import levies. While EU officials have sought to ensure that the CBAM is consistent with obligations under the World Trade Organization (WTO), key aspects of the CBAM could violate WTO rules and are likely to be contested, taking years to play out. Meanwhile, several other countries will adopt new carbon-inspired border restrictions, adding to global trade frictions. Major carbon-emitting countries, therefore, need to act cooperatively instead of unilaterally to both advance the fight against climate change and update the rules-based global trading system. Two-thirds of greenhouse gas emissions result from nontraded activities, such as road transport, electricity generation, and home and office heating. Countries can curb emissions in these activities, while developing guidelines for carbon abatement in traded sectors.
Topic:: Climate Change, Economics, International Trade and Finance, World Trade Organization, European Union, and Carbon Emissions
Political Geography:: Europe

465. CHIPS Act will spur US production but not foreclose China

Author:: Gary Clyde Hufbauer and Megan Hogan
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: The CHIPS and Science Act, export controls, and agreements with allied countries will accomplish many of their multiple objectives. More US semiconductor fabrication plants will be built, US R&D will be accelerated, and advanced chips and chip-making machines will be denied to China, Russia, and other adversaries. However, the Act will not make a material difference to US chip supplies in the next two or three years. Slower economic growth has already tipped the chips market in favor of ample supplies. While collective measures have inflicted considerable short-term pain on China, causing a sharp drop in the fortunes of its high-tech firms, China will respond by redoubling its self-sufficiency programs. The United States, however, should not mimic China in pursuing self-sufficiency, as US self-sufficiency is an illusion. The United States currently exports high-value chips and imports low-value chips, so increasing self-sufficiency would require the United States to prioritize basic chip production at the same time it is supposed to be competing with China in advanced chip production. Continuing to prioritize advanced chip production—where the United States has a clear advantage—is the most efficient course of action.
Topic:: Economics, Legislation, Exports, Production, and Semiconductors
Political Geography:: China, Asia, and United States of America

466. Soaring demand is driving double-digit import price inflation in the United States

Author:: Caroline Freund
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: At a time of soaring price increases in the United States, inflation in the US import sector has been soaring the most. Import price inflation in the first half of 2022 was in the double digits, above US consumer price index and personal consumption expenditures inflation. Excess demand for certain imported goods is playing a big role, but so are supply shortages caused by temporary business closures overseas and shipping delays associated with the COVID-19 pandemic. Correctly identifying the culprit for misaligned demand and supply, and hence rising prices, is central to understanding the type and extent of policy intervention needed. Using movements in prices and quantities of specific goods, the analysis presented in this Policy Brief shows that the increase in import price inflation has been driven to the same or a greater extent by demand compared with supply constraints. The results have important implications for policies to help reduce the supply and demand imbalance and thus tame inflation.
Topic:: Economics, Inflation, COVID-19, Imports, and Supply and Demand
Political Geography:: North America and United States of America

467. Is South Korea vulnerable to EU and US carbon border restrictions?

Author:: Jeffrey J. Schott and Megan Hogan
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: South Korean exports, especially carbon-intensive products like steel, are increasingly vulnerable to both the European Union’s proposed carbon border adjustment mechanism (CBAM)—set to begin on January 1, 2023—and the proposed Clean Competition Act (CCA) before the US Congress. Schott and Hogan caution that Korean exporters should not count on Korea’s decade-old EU and US free trade agreements (FTAs), nor on the multilateral trading rules of the World Trade Organization (WTO), to protect them from new carbon-based import barriers in key foreign markets. The WTO and the FTAs have broad and loosely defined exemptions for environmental protection. Nor is Korea likely to be shielded by its own cap-and-trade emissions trading system (the K-ETS), because of extensive use of free allowances and large differences between EU and Korean carbon prices. While the threat the EU CBAM poses to Korean exports is imminent, passage of the CCA faces major legislative obstacles. But US imports of Korean steel and other carbon-intensive goods are still subject to climate-related duties at the US border under US unfair trade statutes. The US Department of Commerce has ruled that free allowances issued under the K-ETS (and EU ETS) are implicit subsidies that can be offset by countervailing duties. These charges are in addition to the harsh tariff-rate quotas on imported Korean steel applied under the “national security” authority of Section 232 of US trade law, which are more restrictive than measures imposed against European and other steel exporters. The authors suggest relaxing these US barriers, as they have been for shipments from Europe, in return for Korean participation in the nascent US-EU talks to establish a “Global Arrangement on Sustainable Steel and Aluminum.”
Topic:: Economics, International Trade and Finance, European Union, Exports, and Carbon Emissions
Political Geography:: Europe, Asia, South Korea, and United States of America

468. The online gig economy’s impact is not as big as many thought

Author:: Lee G. Branstetter
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: The explosive global growth of online ride-hailing platforms raised concern (and, in some quarters, optimism) that similar growth in other platforms could rapidly disrupt traditional labor arrangements on a large scale in advanced economies. But the evidence to date suggests no significant changes in the overall importance of “gig” work in the US labor market nor a significant decline in the importance of traditional employment relationships. Online platforms may play a growing role (relative to traditional “brick-and-mortar” intermediaries) in connecting gig workers to their customers, but that alone does not guarantee a large increase in the importance of gig work. Branstetter reviews this evidence, noting the gaps in labor market data series that make the measurement of this phenomenon so difficult. Even if traditional employment relationships are not likely to decline significantly in the near future, the rise of online gig work nevertheless highlights longstanding inadequacies of labor market regulations, which recognize employees and truly independent contractors but struggle with the intermediate kinds of worker-firm relationships the online platforms enable. Branstetter summarizes proposals for regulating gig economy work and the lessons policymakers in South Korea and other economies can learn from the literature he reviews in this Policy Brief.
Topic:: Economics, Employment, Labor Market, and Gig Economy
Political Geography:: Global Focus

469. South Korea should prepare for its exposure to US-China technology tensions

Author:: Mary Lovely and Abigail Dahlman
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: The stated goal of the US-led Indo-Pacific Economic Framework for Prosperity (IPEF) is to create standards that enhance and elevate regional trade and investment flows, but it is clearly aimed at reducing the role of China in global supply chains. As China is Korea’s largest trading partner, US policy discouraging Chinese participation in supply chains has immediate detrimental implications for Korean manufacturers. The United States is the second-most important destination for Korean exports. Given the values of these triangular trade flows, Lovely and Dahlman assess South Korea’s exposure to US demands to remove or reduce Chinese participation in the manufacture of exports destined for the US market. The reliance of the proposed framework on certain standards will likely reduce Chinese participation in IPEF trade networks. Korea may benefit from this trend, but IPEF could also increase production costs for Korean companies, especially in the electronics sector, a problem that would worsen if China retaliates against these companies. To reduce these risks, Korea might find it prudent to reduce its reliance on intermediate goods from China for products it produces for export to the United States. The Korean government should also seek to better understand its exposure to US–China trade tensions and diversify its trade relations. Korean firms should start preparing for supply chain disruptions, perhaps by making investments at home. Korea could also help other IPEF members reduce supply chain disruptions while addressing security concerns over China.
Topic:: Economics, Science and Technology, Supply Chains, and Competition
Political Geography:: China, Asia, South Korea, North America, and United States of America

470. China's CPTPP bid spurs South Korea to act on Asia-Pacific trade pacts

Author:: Jeffrey J. Schott
Publication Date:: 06-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: China’s sudden application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in September 2021 has broad implications for South Korea’s economic relations with China, Japan, and the United States. In the past, Korea frequently debated but invariably postponed deciding whether to participate in negotiations on the CPTPP, despite the substantial benefits to be gained from doing so. However, China’s application has prompted Korean officials to get off the fence and apply as well. As China moves to deepen its ties to regional partners, Korea needs to follow suit, complementing the ongoing implementation of the Regional Comprehensive Economic Partnership (RCEP) with expedited negotiations to join the CPTPP and participation in the US-led Indo-Pacific Economic Framework for Prosperity (IPEF). Korean participation in the RCEP, CPTPP, and IPEF is desirable and mutually reinforcing and should allow Korea to sustain its strong commercial interests in both the US and Chinese markets.
Topic:: Economics, International Trade and Finance, Treaties and Agreements, and Trade
Political Geography:: China, South Korea, and Asia-Pacific

471. Public responses to foreign protectionism: Evidence from the US-China trade war

Author:: David Steinberg and Yeling Tan
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: America's recent turn toward protectionism has raised concerns about the future viability of the liberal international trading system. This study examines how and why public attitudes toward international trade change when one's country is targeted by protectionist measures from abroad. To address this question, the authors fielded three original survey experiments in the country most affected by US protectionism: China. First, they find consistent evidence that US protectionism reduces Chinese citizens' support for trade. This finding is replicated in parallel experiments on technology cooperation, and further validated outside of the China context with a survey experiment in Argentina. Second, they show that responses to US protectionism reflect both a "direct reciprocity" logic—citizens want to retaliate against the United States specifically—and a "generalized reciprocity" logic that reduces support for trade on a broader, systemic basis.
Topic:: Economics, International Trade and Finance, Protectionism, and Competition
Political Geography:: China, Asia, North America, and United States of America

472. 25 years of excess unemployment in advanced economies: Lessons for monetary policy

Author:: Joseph E. Gagnon and Madi Sarsenbayev
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: For about 25 years before the COVID-19 pandemic, inflation was very low and stable in most advanced economies. A little noticed dark side of this impressive achievement is that unemployment rates were almost always higher than needed to keep inflation low. This widespread and persistent policy error arose because of a major flaw in standard macroeconomic models—the use of a linear Phillips curve. This flaw would have been far less costly if central banks had not chosen such a low target for inflation. This paper thus adds to the arguments in favor of a moderately higher inflation target. Even without a higher target, central banks need to use a broader range of economic models and should verify their estimates of the natural rate of unemployment by running the economy hot from time to time in order to see nascent inflationary pressure before throttling back.
Topic:: Economics, Monetary Policy, Unemployment, and COVID-19
Political Geography:: Global Focus

473. How carbon tariffs and climate clubs can slow global warming

Author:: Shantayanan Devarajan, Delfin S. Go, Sherman Robinson, and Karen Thierfelder
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: Slowing global warming requires countries to reduce carbon emissions, which imposes costs on their economies. To be effective, most countries must agree collectively to participate (e.g., the Paris Agreement, COP26). However, every country has an incentive not to comply and still reap the benefits of other countries’ actions—a classic free-rider problem. This paper evaluates recent recommendations to use trade policy to solve the free-rider problem associated with climate mitigation strategies. It shows that the European Union’s carbon border adjustment mechanism (CBAM tariffs) are effective at offsetting the unfair competitive advantage of noncompliant countries in the markets of compliant countries but have little effect on the trade of noncompliant countries, who can divert trade to other noncompliers. CBAM tariffs alone have little impact on global CO2 emissions. The paper also examines “climate clubs” (coalitions of countries that agree to impose carbon taxes or other equivalent policies and impose punitive tariffs on non-club members to induce them to join the club). It finds that punitive climate club tariffs can be effective in inflicting significant damage on the economies of nonmembers, providing a strong incentive for them to join the club. The paper identifies trade dependence between club and non-club members as an important consideration for the success of a climate club. Club members that are strongly linked to non-club members suffer losses when the club punishes non-club members, which would make them hesitant to impose punitive tariffs on a major nonmember trading partner.
Topic:: Climate Change, Economics, Tariffs, and Carbon Emissions
Political Geography:: Global Focus

474. A reform strategy to transform energy: From piecemeal to systemwide change

Author:: Steven Fries
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report on Climate Change Mitigation highlights the vast gap between climate change mitigation actions and climate stabilization goals. But its broad policy prescriptions are likely to leave policymakers pondering what specific actions to take. Informed by accumulating evidence on transforming aspects of energy systems like power generation from solar and wind resources and battery electric cars, this paper develops a more pointed energy reform strategy than that of the IPCC to deliver the necessary systemwide changes. It makes the case for two unorthodox policies. One is for governments to provide, in addition to R&D supports, market-creating supports for early deployment of low-carbon technologies in initial markets. The second is to sequence emissions pricing after innovation and market-creating supports and differentiate this pricing across key energy sectors rather than imposing one economywide price. Compared with a single price, targeting higher emissions pricing on sectors that are costlier to decarbonize still promotes cost-effective emission cuts but limits adverse distributional impacts. The paper also considers nonprice barriers to change and ways to coordinate domestic reforms across countries.
Topic:: Climate Change, Economics, Reform, Carbon Emissions, and Energy
Political Geography:: Global Focus

475. Green energy depends on critical minerals. Who controls the supply chains?

Author:: Luc Leruth, Adnan Mazarei, Pierre Régibeau, and Luc Renneboog
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: In light of the transition away from fossil fuel–based energy, this paper highlights the importance of understanding who controls vital parts of the global supply chains of critical minerals and rare earth elements (REEs). Analysis of direct ownership does not reveal the real sources of control over the decisions of the company. To identify those sources, the authors use an index that measures the degree to which important shareholders can affect voting decisions. This analysis is not straightforward, because companies along the supply chain are not necessarily incorporated in the countries in which mining and production activities take place, and shareholders can exert influence through multiple layers of subsidiaries. The analysis reveals that China’s control over the global value chains involving critical minerals and REEs extends beyond what is commonly assumed. It also sheds light on environmental, social, and governance issues in the countries in which mining and/or production take place. The paper advocates increasing transparency regarding the sources of control to better assess and manage economic and geopolitical risks; enhancing recycling, to reduce dependency on foreign supply; avoiding protectionist and trade-reducing reactions; and encouraging research and development in order to speed up the adoption of technologies of substitution.
Topic:: Economics, Geopolitics, Supply Chains, Minerals, Energy, and Green Transition
Political Geography:: Global Focus

476. Why gender disparities persist in South Korea’s labor market

Author:: Karen Dynan, Jacob Funk Kirkegaard, and Anna Stansbury
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics (PIIE)
Abstract:: Although the South Korean economy fared relatively well on the whole during the pandemic, the labor market consequences were uneven, with women experiencing worse outcomes than men. These gender disparities have reinforced and highlighted important longer-term gender-related challenges in the South Korean labor market. Despite an above-average level of female tertiary education, the gender pay gap in South Korea is at the top of the range among OECD countries. The labor force participation rate is 20 percentage points lower for women than for men, a difference that is about one-quarter larger than the average for high-income countries. These disparities—as well as fertility that is the lowest of any advanced economy country in the world—reduce South Korea's future economic prospects and will contribute to fiscal challenges as the population rapidly ages. The analysis in this paper suggests that the combination of low female employment and low fertility in South Korea reflects features of the traditional nature of work that create a particularly stark tradeoff for women between work and family and put pressure on women to choose one or the other. This tradeoff has increased in recent years because the opportunity cost of having a child has risen with the rapid growth in the tertiary education rate of South Korean women. Regressions based on individual-level data from the Korean Labor and Income Panel Study (KLIPS) show that the entire gap in female labor force participation is driven by married women, particularly women with children. Unmarried women with no children are just as likely to be employed as men. A sizable "child earnings penalty" for South Korean women is fully explained by women dropping out of the labor force after the birth of their first child rather than reducing hours or hourly wages. Although South Korea has made strides toward making work more family friendly, there is scope to do better.
Topic:: Economics, Inequality, Labor Market, Fertility, and Gender
Political Geography:: Asia and South Korea

477. Unravelling Africa’s raw material footprints and their drivers

Author:: Albert Kwame Osei-Owusu, Michael Danquah, and Edgar Towa
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: This paper applies an environmentally extended input–output analysis, leveraging the Eora database, to estimate the global raw material footprints of 51 African nations from 1995 to 2015. It employs least absolute shrinkage and selection operator and panel regression models to quantify the effects of diverse variables on Africa’s raw material footprints. The findings show that the raw material footprints of Africa’s production and consumption soared by 41 per cent and 38 per cent, respectively, from 1995 to 2015, mainly driven by biomass and construction materials. They show that Africa outsources 25 per cent of its raw material footprints from consumption, while over 60 per cent of its footprints from production arise from its exports. Our findings beckon African governments to reduce the excessive focus on exploitation and concentrate on combatting corruption and extreme rent-seeking while decoupling Africa’s raw material footprints from rising public debt, carbon emissions, income levels, and population.
Topic:: Economics, Carbon Emissions, Public Debt, Income, Raw Materials, and Input-Output Analysis
Political Geography:: Africa

478. Gender preference at birth: A new measure for son preference based on stated preferences and observed measures of parents’ fertility decisions

Author:: Mehwish Ali, Ashton de Silva, Sarah Sinclair, and Ankita Mishra
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: Investigating preference for sons is a continuing focal area of development economics and demographic research. Son preference presents a challenge in achieving the United Nations Sustainable Development Goals of ‘no poverty’, ‘good health and wellbeing’, and ‘gender equality’ by 2030. It is thus important to investigate son preference to inform policy-makers of the potential challenges in achieving these goals. Inaccurate interpretation of the mechanisms of son preference could misinform policy analysis and result in unintended consequences. Existing measures including sex ratios and gender composition of children do not reflect the true extent of son preference in high fertility countries such as Pakistan, where the success of policy action is limited and significant barriers to sex-selective technologies exist. Given the likely impact of son preference on fertility behaviour in Pakistan, accurate measurement of the forms this gender bias can take is necessary to appropriately gauge the influence of son preference on the fertility outcomes. The limited capacity of existing measures to accurately depict son preference in countries with high fertility combined with limited demarcation between pre- and post-birth son preference warrants development of a new measure for son preference to evaluate its effects. In this paper, a new measure of son preference called ‘gender preferences at birth’ (GPB) is presented. GPB combines stated fertility preferences and observed fertility outcomes to acknowledge that households in countries with high fertility and low contraception usage have less control over their fertility decisions.
Topic:: Economics, Sustainable Development Goals, Welfare, Family Planning, Fertility, and Gender
Political Geography:: Pakistan, South Asia, and Global Focus

479. Determinants of corporate cash holdings in South Africa

Author:: Ewa Karwowski, Hanna Szymborska, Keagile Lesame, and Tlhologelo Thoka
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: Globally, corporate cash holdings have risen since the 1980s. In South Africa, some commentators have accused corporations of engaging in an ‘investment strike’, while others see corporate liquidity as a precaution against systemic uncertainty. We use the unique South African Revenue Service/National Treasury firm-level dataset to scrutinize corporate liquidity, using panel analysis. Relative to GDP, corporate cash and liquidity holdings have not increased between 2010 and 2017. However, corporate cash is high in international comparison and has grown at the firm level. We do not find evidence for the hypothesis that companies are engaging in an investment strike. Cash and liquidity are shaped by idiosyncratic and sectoral risk factors. In the short run, heightened uncertainty might reduce corporate cash and liquidity as firms struggle to adjust to an unexpected economic situation. In the medium run, we find a strong association between political uncertainty and corporate cash and liquidity holdings.
Topic:: Economics, Corporations, Liquidity, and Cash
Political Geography:: Africa, South Africa, and Global Focus

480. Illicit financial flows and country-by-country reporting in extractive industries

Author:: Saila Stausholm, Petr Janský, and Marek Šedivý
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: Economic data are important in governing the international political economy. Some of the most widely used macro statistics risk being undermined by systematic misalignment in reporting of economic activity due to illicit financial flows, as well as tax-minimizing financial transactions by multinational corporations. Measuring these misalignments may prove a way to correct old statistical standards, if adequate data can be obtained. We evaluate whether new transparency and reporting regimes that require country-by-country reporting by multinational corporations could prove a feasible way to appropriate the amount of tax avoidance and use these figures to correct macro statistics. We evaluate the existing data for two of the standards through previous literature and provide original analysis of a third standard that is applied to the extractive industries. We find that the standards lack coherence and workability, and that particularly the extractive industry standard falls short of enabling thorough research on profit reporting and taxmotivated misalignments by multinational corporations.
Topic:: Economics, Tax Evasion, Extractive Industries, and Illicit Financial Flows
Political Geography:: Global Focus

481. Will economic statecraft threaten western currency dominance? Sanctions, geopolitics, and the global monetary order

Author:: Carla Norrlof
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Atlantic Council
Abstract:: The return of great power rivalry is stoking renewed fears of weakening Western currency dominance. Financial sanctions are becoming the preferred economic tool for accomplishing geopolitical goals. These instruments are especially popular with the United States and Europe. In response, rival great powers, notably China and Russia, are diversifying away from Western currencies and developing counterstrategies to maintain economic and foreign policy autonomy. As other countries are hit by increasingly punishing Western sanctions, the incentive to join Russia and China’s alternative international monetary order increases. New analysis, published in this report, shows early signs that some countries may be trying to diversify away from the dollar. A growing circle of countries attempting to evade the Western-centric financial and currency order may over time erode the dollar and the euro’s sizeable lead, though will likely fall well short of ending their global dominance. This report analyzes these trends and quantifies the extent of reserve diversification following Russia’s 2022 war on Ukraine. It also assesses the polarity of the international currency order since the onset of the euro in 2002. Reserve diversification out of the dollar, and into the euro, has been modest, though Chinese renminbi reserves grew after Russia’s February offensive in Ukraine. Dollar unipolarity declined acutely in 2017 as the number of countries sanctioned by the United States increased and the US President Donald J. Trump threatened to revoke alliance commitments. Using economic statecraft while retaining global economic influence will require the United States to keep its economic house in order and allies close, if the current unipolar currency order is to survive.
Topic:: Economics, Monetary Policy, Sanctions, and Geopolitics
Political Geography:: China, Europe, and Asia

482. A Palestinian Outlet to the World, A Path toward Peace? Considerations and Options for a Gaza Seaport

Author:: Asaf Ashar and Joel Singer
Publication Date:: 09-2022
Content Type:: Journal Article
Journal:: Cairo Review of Global Affairs
Institution:: School of Global Affairs and Public Policy, American University in Cairo
Abstract:: Between economic considerations, intra-Palestinian divisions, and Israeli security concerns, there are a number of challenges facing the building of a seaport in Gaza, or in its alternatives. Nevertheless, it may be an opportunity to establish a tri-state free trade zone, and, ultimately, peace.
Topic:: Economics, Maritime Commerce, Maritime, and Peace
Political Geography:: Middle East and Palestine

483. Building a Seaport in Gaza: Prospects, Challenges, and Opportunities

Author:: Omar Shaban
Publication Date:: 09-2022
Content Type:: Journal Article
Journal:: Cairo Review of Global Affairs
Institution:: School of Global Affairs and Public Policy, American University in Cairo
Abstract:: A seaport in Gaza would not only be an important economic and developmental leap forward for Palestine, but also an expression of its unity and sovereignty. To achieve this, there are multiple options available, each with its own unique set of challenges and opportunitie.
Topic:: Development, Economics, Maritime, and Port
Political Geography:: Middle East and Palestine

484. Maritime Security in the Indo-Pacific Region" A View from the Geostrategic Position of the Malacca Strait

Author:: Tran Hoang Long, Tran Xuan Hiep, and Nguyen Tuan Binh
Publication Date:: 08-2022
Content Type:: Journal Article
Journal:: AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:: Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:: Maritime security has been in recent times emerged as a burning issue in the fields of international relations in general and in the Indo-Pacific region in particular. With topographical tectonics, this area includes numerous “choke points” on maritime routes that are strategically important to world trade, playing an important role in the transportation of oil, gas and cargo products from the Middle East to Australia and East Asia. Therefore, maritime security issues for the lifeline of the world economy are a matter of concern for the countries in the Indo-Pacific region, in which the important role of the sea route through the Straits of Malacca is increasingly emphasized. With a geostrategic position connecting the Andaman Sea (Indian Ocean) and the South China Sea (Pacific Ocean), the Straits of Malacca is the shortest route between the Middle East and Asia in general and Pacific Rim countries in particular. This is the location that accounts for a quarter of the world’s marine traffic annually. Energy security and trade economy of major powerful countries in the Indo-Pacific region depend heavily on the maritime security of the Straits of Malacca route. Through an analysis of the Malacca Strait’s geostrategic location, this paper elucidates the Indo-Pacific region’s importance in maritime security field in the first two decades of the twenty-first century.
Topic:: Security, Economics, Maritime, and Strategic Interests
Political Geography:: Indo-Pacific

485. The Business Case for the Sustainable Development Goals: An Empirical Analysis of 21 Danish Companies' Engagement with the SDGs

Author:: Michael W. Hansen, Henrik Gundelach, and Erik Johnson
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:: This paper explores why business engage with the SDG agenda, with a view to understanding the business case for the SDGs. Building on and extending the responsibility literature’s discussion of the business case for responsibility, the paper develops a conceptual framework for analyzing why business engage with the SDGs. This framework is employed to analyze why a sample of 21 Danish companies decided to engage with the SDG agenda. The analysis finds that most companies view the SDGs as a platform for achieving rather conventional business goals such as mitigating risk, saving costs, and differentiating products and services. However, in a few cases, companies use the SDGs as a lever for carving out uncontested positions in future markets. The paper concludes that companies overwhelmingly view the SDGs as a business opportunity rather than as a business responsibility, something that fundamentally may distinguish the SDG agenda from previous responsibility agendas. The paper fills a gap in the extant literature on business responsibility by developing and validating a classification of the business case for the SDGs based on economic value drivers, and by deepening the empirical understanding of, what precisely this business case may be.
Topic:: Development, Economics, Sustainable Development Goals, Business, and Social Responsibility
Political Geography:: Europe and Denmark

486. Egypt Faces Severe Economic Problems

Author:: Sara Nowacka
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: The Polish Institute of International Affairs
Abstract:: In August, a year before the end of his term of office, Tarek Amer, head of the Egyptian Central Bank, resigned. This was a consequence of the deepening economic crisis caused by a decline in the country’s currency reserves and the impact of global problems on Egypt, which is dependent on food imports. Capital-intensive investments, mainly in the energy and real estate sectors, will exacerbate Egypt’s situation. Given the size of its population, economic collapse would have a significant destabilising impact on the EU’s southern neighbourhood.
Topic:: Economics, Currency, Economic Stability, and Economic Crisis
Political Geography:: Middle East and Egypt

487. Legal Report – A Highlight on Political, Economic, and Social Rights in Palestine

Author:: Palthink
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Pal-Think For Strategic Studies
Abstract:: Within the activities of PalThink Academy for Human Rights and Democracy, PalThink produced a report titled A Highlight on Political, Economic, and Social Rights in Palestine. The report mainly provided a profound analysis of the current public situation in the Palestinian territories from 2019 to 2022. Furthermore, the report was anchored on six indicators including good governance, political participation, public freedom, education, health, and labour. In addition, it gave an in-depth insight into the root causes and consequences of ongoing violations of human rights. To conclude, the report proposed recommendations pertaining to the needed interventions to alleviate the challenges facing human rights in Palestine. This project is supported by the ifa’s zivik Funding Programme and implemented by PalThink for Strategic Studies.
Topic:: Civil Society, Economics, Human Rights, and Social Order
Political Geography:: Middle East and Palestine

488. “Re-imagining the Reality of Entrepreneurship in the Lens of Palestinian Youth”

Author:: Pal-Think for Strategic Studies
Publication Date:: 11-2022
Content Type:: Research Paper
Institution:: Pal-Think For Strategic Studies
Abstract:: As an independent think-tank that works to produce knowledge and spread it in Palestinian society, and in partnership with the Friedrich Naumann Foundation for Freedom, PalThink for Strategic Studies has implemented the “Re-imagining the Reality of Entrepreneurship in the Lens of Palestinian Youth” project, which aimed at promoting entrepreneurship in the Gaza Strip. It is one of PalThink’s core beliefs that entrepreneurship is an effective way to create job opportunities and that promoting it, by refining young people’s skills to design and plan their innovative entrepreneurial ideas, is a valiant attempt to reduce unemployment. The project aimed at enhancing the skills of 20 male and female students and graduates and raising their awareness about entrepreneurial projects, the reality of start-ups, and the economic barriers facing youth in the Gaza Strip. The project also included the production of three research papers discussing the challenges and opportunities of entrepreneurial projects in the Palestinian business environment. This booklet was published after the conclusion of three discussion sessions that presented and discussed the three papers with experts and researchers from Palestinian civil society institutions.
Topic:: Civil Society, Economics, Entrepreneurship, and Youth
Political Geography:: Middle East and Palestine

489. The Assault of Austerity: How prevailing economic policy choices are a form of gender-based violence

Author:: Dana Abed and Fatimah Kelleher
Publication Date:: 11-2022
Content Type:: Policy Brief
Institution:: Oxfam Publishing
Abstract:: This briefing paper argues that austerity measures are a form of gender-based violence against women, girls and non-binary people, and lays out clear examples of how fiscal consolidation affects them. Its core argument is that ending austerity must be a priority. The policies that deliver austerity’s deadly consequences can no longer be marketed as the ‘logical’ and ‘inevitable’ economic options that they have been for decades, and certainly not by any government that claims a commitment to gender equality or ending gender-based violence. Austerity takes away from those who need it most, while ignoring common-sense ways to improve both revenue and prosperity. The paper goes on to share feminist economic alternatives offer pathways that can protect the Majority World from completely avoidable suffering.
Topic:: Economics, Gender Based Violence, Identity, and Gender
Political Geography:: Global Focus

490. ‘Impactful projection’: long-range strike options for Australia

Author:: Marcus Hellyer and Andrew Nicholls
Publication Date:: 12-2022
Content Type:: Special Report
Institution:: Australian Strategic Policy Institute (ASPI)
Abstract:: The Australian Government has stated that the ADF requires greater long-range strike capability. This was first stated by the previous government in its 2020 Defence Strategic Update (DSU), which emphasised the need for ‘self-reliant deterrent effects’. The present government has endorsed that assessment: Deputy Prime Minister and Defence Minister Richard Marles has stated that ‘the ADF must augment its self-reliance to deploy and deliver combat power through impactful materiel and enhanced strike capability—including over longer distances.’ He’s coined the term ‘impactful projection’ to describe the intended effect of this capability, which is to place ‘a very large question mark in the adversary’s mind.’ The term may be new, but the concept is not. To us, it’s a restating of the concept of deterrence by denial; that is, having sufficiently robust capabilities to convince an adversary that the cost of acting militarily against us isn’t worth any gains that might be made. But the need for the ADF to have those kinds of capabilities has become much more urgent. As the 2020 DSU noted, we no longer have 10 years of warning time of conventional conflict involving Australia. Moreover, this is not just the prospect of conflict far from Australia’s shores. People’s Liberation Army (PLA) force-projection capabilities have grown dramatically in the past two decades and include long-range conventional ballistic missiles, bombers and advanced surface combatants that have already transited through Australian waters.
Topic:: Defense Policy, NATO, and Economics
Political Geography:: Russia, China, Europe, Australia, and Australia/Pacific

491. Comparative State Economic Interventions in the Carbon Capture and Storage Market

Author:: Dillon W. Smith, Umang Bhattarai, and Wake Smith
Publication Date:: 09-2022
Content Type:: Policy Brief
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: An essential element in the portfolio of climate solutions required to rapidly achieve net zero emissions is flue gas carbon capture and storage, whereby carbon can be sifted from emission streams before it enters the atmosphere and safely sequestered in geologic storage systems. Despite its importance in the climate tool portfolio, flue gas capture capacity is currently much less than reasonable estimates of its potential. States around the world are searching for policies by which to incentivize emitters to invest in carbon capture and storage (CCS) and hasten the technology’s rollout. We survey five leading polities (United Kingdom, Netherlands, Norway, United States, and California) in their efforts to kick-start the deployment of CCS and assess the strengths and weaknesses of each territory’s scheme.
Topic:: Climate Change, Economics, and Carbon Emissions
Political Geography:: Global Focus

492. The Price Cap on Russian Oil Exports, Explained

Author:: Catherine Wolfram, Simon Johnson, and Łukasz Rachel
Publication Date:: 12-2022
Content Type:: Policy Brief
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: If you’ve taken an introductory economics class, you were probably left with the strong impression that price caps are bad – they distort demand and discourage producers from supplying the market. So, why has Treasury Secretary Janet Yellen, the consummate economist, advocated so strongly for a price cap on Russian oil? The answer is that this price cap is different from the standard cap discussed in introductory economics classes. A standard price cap applies to all goods traded in a market. For example, in some countries there are price caps on bread for everyone or diesel for farmers or rent controls on housing. Such caps lead to excess demand for the good and insufficient supply, leading to shortages at the capped price. If prices are constrained, other non-price mechanisms, like first-come-first-served, are required to allocate the good. All too frequently, the result is empty bakery shelves or fuel shortages or difficulties finding housing. To understand why the cap on Russian oil is different, we first need to provide background on Russian oil trade and the proposed price cap.
Topic:: Economics, Markets, Oil, Exports, and Russia-Ukraine War
Political Geography:: Russia and Europe

493. Enclosing the English Commons: Property, Productivity and the Making of Modern Capitalism

Author:: Charlie Harris
Publication Date:: 11-2022
Content Type:: Case Study
Institution:: Oxford Centre for Global History
Abstract:: Legend has it that Alfred the Great awarded Oxford’s Port Meadow to the freemen of the city as a token of thanks for participating in the defence against Danish invaders. Historians dispute the account – but regardless, the Domesday Book indicates that the Oxford freemen have managed the meadow and used it as free pasture since the Saxon era. It still bears the evidence of thousands of years of community use, from Bronze Age burial mounds right up to regular horse racing in the 17th and 18th centuries. Port Meadow is one of Oxford’s few remaining “commons” – a parcel of land upon which local inhabitants retain their ancient common land rights. These include drawing water and fuel, rights of passage, fishing the River Thames and grazing animals. To this day, mingling amongst students and ramblers, horses and cattle roam freely. For millennia, most of England’s arable land fell under the category of “commons”; it was only a gradual process that created our modern arrangement of exclusive, unitary land ownership. This process was called enclosure. In a nutshell, enclosure was the legal mechanism which expropriated the commons (also known as common lands or waste lands) from England’s commoners, aggregated them and put them to new use. It revolutionised private property as a concept, largely introduced the concept of land as a commodity, and came to define the economic priorities of the last five hundred years. It catalysed the Industrial Revolution and English urbanisation. In terms of economic development, it was somewhat akin to the invention of the wheel, if rather more contentious.
Topic:: Economics, Capitalism, Enclosure, and Commons
Political Geography:: Europe and England

494. The 2023 Turkish elections: An unmarked road

Author:: Al Jazeera Center for Studies
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Al Jazeera Center for Studies
Abstract:: As the date of elections approaches, the political and economic landscape will undoubtedly come into clearer focus. But at this point, amid so many uncertainties, it is still too early to predict electoral outcomes with any confidence.
Topic:: Economics, Politics, Elections, and Recep Tayyip Erdoğan
Political Geography:: Turkey and Middle East

495. Germany’s Economic Security and Technology: Optimizing Export Control, Investment Screening and Market Access Instruments

Author:: Tyson Barker and David Hagebölling
Publication Date:: 11-2022
Content Type:: Special Report
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: Technological development and increasingly fraught US-China competition have geopolitical consequences for technology access. The erosion of post-Cold War multilateral dual-use technology export control regimes, such as the Wassenaar Arrangement, and investment and other control frameworks have led to na-tional, EU, and ad hoc measures, such as the restrictions on Russian semiconductor access following the invasion of Ukraine. The German government must integrate technology access and control instruments – export controls, FDI screening, critical infrastructure access, research protection, and outbound investment– in its Digital Strategy and National Security Strategy. The former currently neglects critical technology access and control; the latter must address it comprehensively. German – and EU – dual-use export and FDI screening reforms have been updated and are now in place. Capacity building and alignment with EU and NATO partners now deserves greater attention. Measures could include more robust, institutionalized information-sharing and consultations on dual-use technology export, import, investment, and research controls in a Multilateral Technology Control Committee born out of the G7 or TTC. The commit-tee should also establish the capacity to deny end-user access to German technology through its own Foreign-Direct Product Rules and Entity List.
Topic:: Security, Economics, Science and Technology, Investment, and Exports
Political Geography:: China, Europe, Asia, North America, and United States of America

496. A German Digital Grand Strategy: Integrating Digital Technology, Economic Competitiveness, and National Security in Times of Geopolitical Change

Author:: Tyson Barker and David Hagebölling
Publication Date:: 11-2022
Content Type:: Special Report
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: This report systematically outlines the state of play in digital policy and Berlin’s current policy approach. It provides 48 recommendations for strengthening Germany’s efforts to build a confident, high-performing European digital economy embedded in an open, democratic, and rules-based digital order.
Topic:: Economics, National Security, Science and Technology, Geopolitics, Grand Strategy, and Digital Policy
Political Geography:: Europe

497. Don’t Get Caught in the Middle: A Geo-Economic Strategy for Germany to Survive US-Chinese Rivalry

Author:: Markus Jaeger
Publication Date:: 12-2022
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: The economic fallout from the war in Ukraine has been very significant. The consequences of a war in East Asia involving the United States and China would be much worse. And even if a Sino-US military confrontation can be avoided, geo-economic conflict between the two powers is going to intensify. Washington will put increasing pressure on Germany and Europe to align their policies with Washington’s geo-economic strategy.
Topic:: Economics, Strategic Competition, Rivalry, and Geoeconomics
Political Geography:: China, Europe, Asia, Germany, North America, and United States of America

498. The Indian Farmer Makes Her Voice Heard

Author:: Sandeep Kandikuppa and Pallavi Gupta
Publication Date:: 12-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: In August 2020, thousands of farmers, mostly from Punjab, Haryana, and western Uttar Pradesh, gathered on the outskirts of India’s national capital, New Delhi, to protest the passage of three controversial “farm laws” perceived by these farmers as threats to their livelihoods and well-being. Though the farm laws would affect only a small percentage of India’s farmers, over the next 16 months the protests attracted participation from across the country, cutting across class, caste, gender, and religious identities. While the proximate driver seemed to be the farmers’ fear of losing legal protections against a collapse in the market price of their produce, broader economic, ecological, and social factors helped trigger the movement. The protestors employed several strategies that made their movement successful enough in pushing back against a hugely popular government to bring about a repeal of the laws the farmers objected to.
Topic:: Agriculture, Economics, Women, and Protests
Political Geography:: South Asia and India

499. Taiwan Matters for America/America Matters for Taiwan

Author:: East-West Center
Publication Date:: 09-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: The inaugural edition of Taiwan Matters for America/America Matters for Taiwan, 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 the Taiwan 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, Culture, Population, and Travel
Political Geography:: Taiwan and Asia

500. New Opportunities for the United States-Kingdom of Thailand Alliance in the Indo-Pacific

Author:: Lance D. Jackson
Publication Date:: 09-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: In March 2022, the East-West Center in Washington (EWCW), in collaboration with the Royal Thai Embassy, Washington, DC, convened a two-day seminar in which experts from Thailand and the United States discussed issues and opportunities for the US-Thailand alliance. The workshop included a diverse array of discussants hailing from government, military, academic, think tank, and private sector backgrounds. This report, which adheres to the “Chatham House Rule” under which observations referred to in the report are not attributed to any individual participant, is a summary of the group discussions and the key themes from the seminar. The recent signing of the United States-Thailand Communique on Strategic Alliance and Partnership and a memorandum of understanding (MOU) focused on promoting supply chain resilience on July 10, 2022, highlight the pertinence of this report and the associated seminar. The topics detailed in this report aligned with many of the pressing issues addressed in the Communique and MOU, including expanding law enforcement cooperation, deepening cybersecurity collaboration, supporting resilient transportation corridors, advancing military modernization, and catalyzing Thailand’s bio-circular-green (BCG) economy. The report also covered topics and key themes from a series of jointly produced public webinars and an Asia Pacific Bulletin series of policy briefs on US-Thai affairs.
Topic:: International Relations, Climate Change, Economics, Education, Environment, Politics, Science and Technology, Governance, Population, Leadership, Public Health, and Travel
Political Geography:: Asia, North America, Thailand, Southeast Asia, United States of America, and Indo-Pacific

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COLUMBIA UNIVERSITY PRESS