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81. Incomplete Exit: Central and Eastern Europe’s Corporate Decoupling From Russia

Author:
Michal Wyrebkowski
Publication Date:
11-2025
Content Type:
Special Report
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
Following the full-scale invasion of Ukraine in 2022, companies from Central and Eastern Europe (CEE) initially were trailblazers in voluntarily withdrawing from Russia, effectively self-sanctioning through voluntary overcompliance with sanctions by leaving, even though operating in the country is still legal. At the same time, CEE countries have enabled sanctions-evasion networks. The historical economic relationship between CEE countries and Russia created the conditions for this paradox. Decades of relying on Russian energy sources masked an asymmetric interdependence: Russia’s military-industrial complex relied heavily on CEE countries for the machine tools, industrial components, and dual-use technologies essential to weapons production. When EU sanctions targeted these critical supply chains, the geographic proximity and established trade relationships that motivated voluntary exit by some companies also enabled systematic sanctions circumvention by others. The EU’s Russia sanctions since 2014 have struggled to match the complexity of the economic networks involved. Early sanctions focused on financial restrictions and high-profile sectors but failed to address the technical vulnerabilities that enable large-scale evasion. Even as restrictions expanded to cover dual-use goods and Russia’s “shadow fleet”, fundamental gaps in classification systems and enforcement mechanisms persisted. The responses of CEE companies have varied across sectors and countries. While investor and consumer pressure drove rapid voluntary exits from Russia in consumer-facing industries, industrial manufacturers found numerous ways to keep supplying it through third-country intermediaries. The behavior of energy companies has reflected the strategic priorities of CEE governments, with some achieving complete diversification from Russia while others reinforced existing dependencies. The variety of corporate responses mirrored the uneven development of national sanctions-enforcement capabilities, ranging from understaffed sanctions departments to insufficiently robust regulatory frameworks; for example, regarding criminalization of violations. The persistence of sanctions evasion through CEE countries reflects systemic failures in the EU’s enforcement architecture. Technical classification systems designed for traditional trade cannot adequately distinguish between civilian and military applications of modern dual-use technologies. Customs officials lack access to the information systems necessary to verify complex ownership structures and end-use destinations. Legal frameworks optimized for territorial jurisdiction are inadequate for regulating globalized supply chains where goods, payments, and corporate structures span multiple jurisdictions. Banking institutions operating across Central and Eastern Europe have become critical actors, with a small number of financial institutions handling substantial portions of Russia’s foreign currency transactions. Their continued operations highlight the limits of EU territorial sanctions, which is confirmed by the extent to which US extraterritorial enforcement has become necessary to police sanctions violations in Europe. Addressing these challenges requires comprehensive reforms across multiple dimensions. Technical improvements must include supplementary classification systems that incorporate detailed specifications for dual-use goods, while institutional capacity-building demands substantial increases in staffing and expertise at the national and EU levels. Financial-sector monitoring needs real-time automated screening capabilities and dedicated compliance structures, while industrial-sector oversight requires specialized task forces with technical expertise in dual-use technologies.
Topic:
Economics, Trade, Russia-Ukraine War, and Decoupling
Political Geography:
Russia and Eastern Europe

82. Navigating Global Value Chains and Economics in 2025: US–Vietnam Relations in a Changing IndoPacific

Author:
Thanh Nha Nguyen
Publication Date:
08-2025
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
Vietnam has emerged as an indispensable link in Indo-Pacific manufacturing networks. The country’s strategic advantage lies in its ability to adapt to shifting policies while mitigating risks from trade frictions. To sustain these gains, Vietnam must invest strategically in long-term competitiveness by upgrading workforce skills, improving infrastructure, and climbing the value chain through enhanced design and innovation capabilities. Vietnam’s adaptability has made it a prime beneficiary of the ongoing realignment in global supply chains driven by US trade policy changes. Tariffs on Chinese goods and broader efforts to "de-risk" supply lines have prompted many manufacturers to expand operations in Vietnam, sharply boosting exports and investment. By 2023, Vietnam had vaulted from the 12th- to 7th-largest exporter to the United States, as US imports from Vietnam rose by nearly 35 percent year-on-year. High-profile firms, including Samsung, Apple contractors, and major textile producers, have accelerated investments in Vietnam, solidifying its role as a preferred “China+1” manufacturing base.
Topic:
Economics, Manufacturing, and Global Value Chains
Political Geography:
Vietnam, North America, United States of America, and Indo-Pacific

83. Tariff Wars: Strategies to Prevent Economic Marginalizationof Africa

Author:
Stephane Atangana
Publication Date:
06-2025
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The global economy is showing signs of structural slowdown. Global inflation is declining (from6.8% in 2023 to an expected 4.5% in 2025), and medium-term growth has plateaued around3.1%, a historically low level . Concurrently, « geoeconomic fragmentation » is intensifying—definedby the IMF as a policy-driven reversal of global economic integration. Protectionist measures aremultiplying at an unprecedented rate: nearly 3,000 new trade barriers were imposed in 2023, triplethe number in 2019. This surge in restrictions jeopardizes the economic architecture thatpreviously lifted 1.5 billion people out of poverty over recent decades . For low- and middle-incomeAfrican countries, these trends pose a dual challenge: firstly, their economies remain heavilyreliant on commodity prices (accounting for approximately 76% of exports in 2023) and strugglewith diversification; secondly, they face growing pressures on public finances due to mountingdebt. Specifically, external refinancing needs have tripled in a decade, reaching nearly USD 60 billion annually , while debt servicing now consumes over 12% of public revenue on average in sub-Saharan Africa. These constrained fiscal resources severely limit capacities for productiveinvestment and social policies. Thus, the critical question is: How can these vulnerable economiesmaintain access to international markets while fostering sustainable development?
Topic:
Economics, Tariffs, Inflation, Marginalization, Geoeconomics, and Global Economy
Political Geography:
Africa

84. Addressing Policy Issues to Support Women’s EconomicEmpowerment in the Care Economy in Cameroon

Author:
Nkafu Policy Institute
Publication Date:
06-2025
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Cameroon is a middle-income country with a population of more than 29.4 million [1] . It ranked117 out of 146 in the World Economic Forum’s Global Gender Gap Index in 2021 [2], indicating asignificant gender gap. With an increasing global focus on women’s empowerment, Cameroonhas made strong policy commitments and developed sound policy measures to support Women’sEconomic Empowerment (WEE), backed by changes in macroeconomic frameworks to enable aninclusive approach to economic growth [3]. Nevertheless, gender equality cannot be taken forgranted and needs sustained attention in policy formulation and implementation. More womenhave been moving into paid work and increasingly leadership positions, yet globally, societalexpectations, employer policies, the legal environment and the availability of care continue to playan important role in the choice of educational tracks and career paths for these women. Womenremain disadvantaged at all levels of economic empowerment, especially in access to decentlivelihoods, resource ownership, infrastructure, and services to meet their productive, reproductive, and household needs. This article seeks to address various policy issues required tosupport women’s economic empowerment within the care economy in Cameroon. Thesubsequent sections consist of the Care Economy and Women’s Economic Empowerment, somechallenges and barriers women encounter in terms of economic empowerment, and policychallenges affecting WEE and the care economy. This is followed by a variety of policyrecommendations and future directions.
Topic:
Economics, Women, Empowerment, and Care Economy
Political Geography:
Africa and Cameroon

85. Labor in the Green and Digital Jobs of the Future: What Kind of ‘Future’ Will Arrive and Under Which Conditions?

Author:
Aslı Aydın
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Turkish Economic and Social Studies Foundation (TESEV)
Abstract:
Sustainable development goals, increasing environmental threats and global competition are forcing countries to take steps towards green transition and digital transformation based on artificial intelligence (AI) technologies. In this so-called “twin transformation”, low-carbon and smart technology-oriented jobs are expected to increase rapidly and future jobs are expected to be shaped around these new trends. In this policy brief, the potential opportunities and risks in the twin transformation, including the gender equality dimension, are examined together, and discussion topics that are expected to benefit policymaking are put forward.
Topic:
Climate Change, Economics, Digital Economy, Artificial Intelligence, Labor Market, Sustainable Development, and Gender Equality
Political Geography:
Global Focus

86. The Arctic as an Arena for Strategic Competition:​ Rivalry with Traditional and Irregular Levers of Power on NATO’s Northern Flank

Author:
Njord Wegge
Publication Date:
12-2025
Content Type:
Journal Article
Journal:
Journal of Advanced Military Studies
Institution:
Marine Corps University Press, National Defense University
Abstract:
This article investigates to what degree and through which fields and mechanisms strategic competition today plays out in the Arctic as well as how these questions align with international relations (IR) theory. Using rationalist approaches to the study of IR and the DIME model (diplomatic, informational, military, and economic) to structure the empirical investigation, this article finds that the strategic competition matches perspectives found in realism as well as liberalism. The article points out how states develop strategies to maximize security, wealth, power, and prosperity at the cost of others, while at the same time also identifies empirical evidence supporting liberal perspectives that stresses how unintended consequences of competition can be harnessed through institutions and international law. The competitive environment experienced in today’s Arctic increasingly reflects an international society characterized by zero-sum thinking and a dynamic where the constraining role of institutions has diminished.
Topic:
International Relations, NATO, Diplomacy, Economics, Strategic Competition, Military, and Information
Political Geography:
Arctic

87. Investing in Power: Unequal Exchange in Global Value Chains

Author:
James Heitz and William Milberg
Publication Date:
10-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The question of how value is distributed within global value chains (GVCs) is one of the central questions in contemporary research on trade and development and an analysis of power is central to understanding this issue. This paper extends existing research on distribution within global value chains by focusing on the issue of power in both product markets and supplier markets. We present a formal model in which lead firms capture a larger share of value-added, either through higher mark-ups – monopoly power – or lower unit costs goods purchased from suppliers – monopsony power. Maintaining or expanding this market power involves costly investments in intangible assets, with the nature of that investment depending on the characteristics of the GVC. This framework provides new insights into the distributive dynamics of value chains, including reputation effects tied to corporate social responsibility. In this way, the paper presents an innovative way of theorizing international trade, inspired by the unequal exchange tradition, that can be extended in future research.
Topic:
Economics, Human Rights, Finance, Macroeconomics, Global Value Chains, and Labor Market
Political Geography:
Global Focus

88. Anchored Inflation With Differential Inflation Benchmarks

Author:
Thomas R. Michl
Publication Date:
09-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper presents a model of inflation and distribution that features a structural difference between the wage Phillips curve and the price Phillips curve. The wage Phillips curve revolves around conditions in the labor market represented by the employment rate while the price Phillips curve revolves around conditions in the product market represented by capacity utilization. Differences in the relative bargaining power of workers and capitalist firms give rise to stabilizing real wage dynamics that lead to normal capacity utilization. Wage and price setting are each benchmarked to a different reference rate of price inflation, and both are anchored by the central bank’s inflation target. Price-setting by capitalist firms requires accurate projections (inflation expectations) of their competitors’ prices while the wage-setting reference rate reflects the delay in keeping up with past inflation that firms impose on workers, so that more anchoring represents the loss of working class bargaining power. Greater anchoring of the wage-setting reference rate relative to the price-setting rate makes real wages vulnerable to erosion from inflation. Capacity constraints also generate inflation that erodes wages. The model sheds some light on the recent post-Covid inflation through these channels.
Topic:
Economics, Employment, Inflation, and Labor Market
Political Geography:
Global Focus

89. Inequality of Opportunity and Stratification Economics: Different Paths, Shared Concerns

Author:
Luis Monroy-Gómez-Franco
Publication Date:
09-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper compares two approaches to the study of inequality that have recently consolidated as distinct fields: the economics of inequality of opportunity (IOp) and stratification economics (SE). IOp examines how circumstances beyond individual control shape inequalities, while SE emphasizes how institutions and group identities reproduce intergroup hierarchies. I argue that, despite distinct origins, the two frameworks can be viewed as complementary. To support this claim, I outline the main features of each theoretical framework and contrast them along several dimensions: their equalisandum, the role of social groups, primary unit of analysis, and their conception of how structural factors influence inequality. The analysis shows that the distance between the two approaches is less significant than often assumed. Their differences enhance their complementarity, positioning SE and IOp not as competitors but as mutually reinforcing frameworks for understanding inequality.
Topic:
Economics, Inequality, Equality of Opportunity, and Stratification Economics
Political Geography:
Global Focus

90. Pan-African-Foreign Policy Theory: A Conceptual Significance of Foreign Policy Analysis Within Policy Agenda Setting for Africa

Author:
Chris Landsberg, Sandile Moloi, and Oscar Van Heerden
Publication Date:
10-2025
Content Type:
Journal Article
Journal:
Brazilian Journal of African Studies
Institution:
Brazilian Journal of African Studies
Abstract:
This article claims that Pan-Africanism Foreign Policy Theory is about Africa’s states’ foreign policy. This claim and theory have not been developed before. The closest argument to our Pan-Africanism Foreign Policy Theory is the writing in 2009 by McDougal (2009), which contends that, as the continental states and its premier integration bodies seek to craft a new-Pan-Africanism, African foreign policies should be based on three aspects: cultural and political unity; Afro-centric development, and the Afri-can conceptualisation of Ubuntu. We lay further claim that Pan-Africanism is rarely analysed by reviewing the goals pursued by states, specifically those of security, prosperity, and world reorganisation. This paper aims to make a constructive contribution to the overall literature by examining Pan-Africanism as African foreign policy, given that little has been written about it from this viewpoint.
Topic:
Security, Foreign Policy, Economics, Pan-Africanism, and Regional Politics
Political Geography:
Africa

91. Getting Off the Back Foot: Guiding Principles for a Proactive Western Strategy on Belarus

Author:
Artyom Shraibman
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
For decades, the West has been unable to build an effective strategy on Belarus due to the country’s limited geopolitical importance, an inexorably deeper dependence on Moscow, and the glaring absence of leverage over Minsk’s strategic decisionmaking. This paper proposes a different paradigm for approaching the issue. Instead of passively reacting to Minsk’s actions, the West should broaden its planning horizon and create more specific incentives for Belarus to follow a different trajectory in the future. The overriding goal of a more proactive Western strategy should be the eventual emergence of a democratic Belarus that is no longer fully dominated by Moscow in the military and political realms. Such an ambitious goal would have tangible and lasting benefits for the new European security landscape amid the prospect of a long war in Ukraine. Skepticism in Western policy circles about the viability of such a scenario is entirely understandable. Yet it is not entirely clear whether Western policymakers have registered the significant differences between Russia and Belarus at the societal level and divergent strategic interests of the Russian and Belarusian regimes. At the same time, it is essential for Western policymakers to keep their expectations in check and to avoid an overestimation of their capabilities. The Belarusian crisis cannot be resolved in the foreseeable future by Western efforts alone. Moreover, there should be no illusions about the fact that Belarus, much like Ukraine, holds a special place in the worldview of the Russian ruling elite and President Vladimir Putin personally. The Kremlin’s long-standing obsession with keeping the North Atlantic Treaty Organization (NATO) away from Russia’s borders plays into the same attachment to keeping the Belarusian regime in as tight an embrace as possible. Therefore, until Moscow either changes its foreign policy priorities under a new leadership or simply becomes unable to keep Minsk under its control, it would be naïve to expect that the Russian leadership will simply offer any Belarusian government greater leeway to shift its geopolitical orientation. At the same time, it is conceivable that a qualitative increase in military assistance to Ukraine and a more effective economic pressure campaign against Russia could disrupt Belarus’s trajectory and make Minsk more amenable to the incentives that the West can already offer. But an overnight breakthrough seems highly unlikely. This paper, therefore, focuses on more realistic recommendations with longer-term effects.
Topic:
Foreign Policy, Economics, Geopolitics, and Russia-Ukraine War
Political Geography:
Russia, Eastern Europe, and Belarus

92. Farmer Protests Across Europe

Author:
Nichita Gurcov, Nicola Audibert, and Cristian Vlas
Publication Date:
02-2024
Content Type:
Commentary and Analysis
Institution:
Armed Conflict Location & Event Data Project (ACLED)
Abstract:
Farmer demands for more economic protection and less regulation have led to a surge in protests across Europe in the past thre emonths, and especially in the past three weeks. It is the largest wave since the Dutch farmers' protests against their government's plan to cut nitrogen pollution in July 2022.
Topic:
Climate Change, Economics, Protests, Political Movements, and Farmers
Political Geography:
Europe

93. What works for working couples? Work arrangements, maternal labour supply, and the division of home production

Author:
Ludovica Ciasullo and Martina Uccioli
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
We document how a change to work arrangements reduces the child penalty in labor supply for women, and that the consequent more equal distribution of household income does not translate into a more equal division of home production between mothers and fathers. The Australian 2009 Fair Work Act explicitly entitled parents of young children to request a (reasonable) change in work arrangements. Leveraging variation in the timing of the law, timing of childbirth, and the bite of the law across different occupations and industries, we establish three main results. First, the Fair Work Act was used by new mothers to reduce their weekly working hours without renouncing their permanent contract, hence maintaining a regular schedule. Second, with this work arrangement, working mothers’ child penalty declined from a 47 percent drop in hours worked to a 38 percent drop. Third, while this implies a significant shift towards equality in the female- and male-shares of household income, we do not observe any changes in the female (disproportionate) share of home production.
Topic:
Economics, Labor Issues, Women, Work, and Home Production
Political Geography:
United Kingdom and Europe

94. Sanctions have become a tool of first resort. But enforcement needs upgraded and updated resources.

Author:
David Mortlock and Alex Zerden
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Enforcement remains a critical but underresourced element of economic sanctions. The US Congress and the Department of the Treasury should consider updates to its resources, public guidance, and policies to ensure the efficacy of sanctions enforcement as the use of the sanctions policy tool continues to expand. Economic sanctions are often described as the foreign policy tool of first resort. The Department of the Treasury acknowledged this reality in its “2021 Sanctions Review.” Through its Office of Foreign Assets Control (OFAC), the Treasury Department administers thirty-eight different, albeit overlapping, economic sanctions programs. With only a few hundred employees, OFAC has a nearly unparalleled national security mandate with oversight of the US economy and many other facets of global economic activities. OFAC develops policies for the use of sanctions, designates sanctions targets like individuals, entities, and jurisdictions, engages with the private sector to promote compliance, and civilly enforces apparent violations by US persons and others. This latter enforcement role represents a critical but often overlooked capability. For instance, the same “2021 Sanctions Review” does not even mention the enforcement function in its assessment. (However, it did seek to ensure that sanctions are “enforceable” in the context of sanctions implementation.) Resource constraints, a lack of attention, and the prioritization of policy crises hamper this enforcement function. In 2023, OFAC only undertook seventeen public enforcement actions, including its largest settlement to date with Binance, a global cryptocurrency exchange. For perspective, the Department of Justice terminated 63,419 civil cases in fiscal year 2022, according to the most recent public data. As the wider interagency continues to rely on sanctions as a critical tool and the United States seeks to expand partner sanctions capacity, US policymakers must fully support the sanctions enforcement function. Strengthening the internal controls for OFAC enforcement improves the rule of law through improved due process and protects OFAC from legal challenges that could existentially undermine its national security mission. OFAC enforcement urgently requires increased budgetary resources and an upskilled workforce from Congress, stronger internal procedures to avoid litigation risks, improved public guidance, and revised enforcement guidelines to promote consistency and improve compliance by industry.
Topic:
Foreign Policy, Economics, Sanctions, Transparency, and Enforcement
Political Geography:
North America and United States of America

95. The EU Tobacco Tax Structure: Impact on Prices, Revenues, and Smoking Patterns

Author:
Oxford Economics
Publication Date:
05-2024
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
Multilateral organisations such as the World Bank and the IMF have made the argument that specific excise taxes for cigarette taxation can provide significant benefits over ad valorem excise taxes. Chief among the benefits they identify are: more stable and predictable government excise tax receipts; a lower administrative burden for tax management and collection; and internalising the externalities produced by cigarette consumption. Across the EU, Member States have been restructuring their excise tax systems to create an increasingly prominent role for specific excise taxes. Between 2010 and 2023, authorities in the EU opted to rebalance towards specific excise and away from ad valorem excise, with the average ad valorem rate across Member States falling from 36.7% to 27.0% of retail selling price (RSP). As a result, in this period the average specific excise burden across the EU increased from 30.9% to 44.5% of total taxation. However, this shift has not been uniform across Member States and the approach to cigarette taxation has diverged. Countries like Denmark and Sweden have moved to an almost total reliance on specific excise taxes. Meanwhile in some Member States such as Italy and Spain, the share of specific excise tax in total taxation has remained very low. In this study, we examine the experience of eight EU Member States that have all taken differing approaches to cigarette excise policy in recent years. In four countries that have rebalanced to achieve a higher proportional use of specific excise taxes since 2010, we found excise tax receipts to have remained stable or increased, despite flat or falling rates of legal consumption. In four countries that have not significantly rebalanced towards specific excise taxes, the results were more mixed. Italy and Spain, notably, have seen a decline in their cigarette excise tax receipts over the period, despite below-average declines in cigarette consumption. Ad valorem-based excise tax systems do not provide as strong an incentive for manufacturers to raise prices as a specific excise-based system would. In addition, ad valorem dominated excise tax systems can encourage downward substitution from consumers for cheaper alternatives, exacerbating the decline in excise tax receipts.
Topic:
Economics, European Union, Tax Systems, Tobacco, Price, and Revenue
Political Geography:
Europe

96. The Environmental Impact of Digital Over Cash Payments in Europe

Author:
Jan Sun, Hannah Zick, and Johanna Neuhoff
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
On behalf of the European Digital Payment Industry Alliance (EDPIA), our report on “The Environmental Impact of Digital over Cash Payments in Europe” seeks to evaluate carbon emissions across payment systems at point of sales. Businesses and governments are becoming more and more focused on mitigating the effects of climate change through processes and policies, and the payment sector is no exception. As digital payments become more prevalent—with the number of non-cash payments doubling from 21% in 2016 to 41% in 2022 in the euro-area alone according to the European Central Bank—there has been a growing need to understand the environmental effects of these shifting preferences. Although some evidence indicates that digital payments have a smaller environmental footprint than cash payments, there has not been a comparative lifecycle assessment done between the two of them. In addition, given large differences across geographies, the actual impacts of payment methods at points of sales (POS) can differ widely from country to country. To examine this issue, this study utilises a Life-Cycle Assessment (LCA) following the International Organization for Standardization (ISO) guidelines. A method Oxford Economics has added to its toolkit, the LCA is a holistic approach that appraises environmental impacts across stages of a product lifecycle on a variety of categories. Which, in this case, includes a total of different 18 categories including for example, global warming potential, mineral resource scarcity, and ionizing radiation. This cradle-to-grave approach is used for three purposes: Firstly, to consider the separate processes of cash and non-cash payments in order to isolate the environmental “hotspots” and their respective impacts. Secondly, to understand the processes in three countries with different rates of payment adoption—Italy, Germany, and Finland—for comprehensive results. Thirdly, to compare the environmental impact of cash and non-cash payments at point of sales in the different impact categories.
Topic:
Climate Change, Economics, Carbon Emissions, Radiation, and Digital Payments
Political Geography:
Europe, Finland, Germany, and Italy

97. Decoding China’s Technology and Industrial Policy: Seven Terms You Need to Know

Author:
Barry Naughton, Siwen Xiao, and Yaosheng Xu
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
University of California Institute on Global Conflict and Cooperation (IGCC)
Abstract:
China’s technology and industrial policy programs have grown in scope and intensity since 2020, but the vocabulary used to describe them is vague and often misleading. This policy brief decodes seven essential terms and shows that they have concrete and complementary meanings. When understood in concert, they reveal the establishment of a large-scale, government-directed program of mission-oriented research, development, and application. Together these terms outline a substantial expansion of the Chinese government’s direct role in organizing economic activity, and hint at some of the limits of that expansion.
Topic:
Economics, Industrial Policy, Science and Technology, Research and Development, and Terminology
Political Geography:
China and Asia

98. The Sky Is Not the Limit. Geopolitics and Economics of the New Space Race

Author:
Alessandro Gili
Publication Date:
01-2024
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Space is a contested domain for its very nature and today it is evidently becoming an increasingly important enabler of economic and military power. An increasing number of actors, infrastructures and technologies deployed in space also raises concerns for safety and security, especially in cyberspace. Many countries are striving to achieve space capabilities and autonomous access to space, and this is having a tremendous geopolitical impact, especially since space is emerging as an increasingly critical military and strategic domain. The development of the new space economy, which is increasingly involving the private sector and many industrial actors and services, will also be a game changer for the international economy. The space race likewise implies disruptive technologies that could contribute massively to the energy and digital transitions, accelerating solutions that could benefit humanity. A new international governance system for space is therefore needed urgently, considering that the current rules are no longer able to respond to a sector evolving at such a rapid pace. Which actors are leading the race? Which economic sectors could benefit the most and what could the new space economy mean for the world? How is space emerging as a military domain against a backdrop of increasing international tensions? What would a new system of global governance for space look like?
Topic:
Economics, Politics, Infrastructure, Geopolitics, Regulation, and Energy Security
Political Geography:
Russia, China, Europe, India, Italy, Global Focus, United States of America, and Space

99. Navigating the treacherous political economy of structural reform

Author:
Davide Furceri, Jonathan Ostry, and Chris Papageorgiou
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
We examine the economic and electoral effects of liberalisation measures using newly-constructed databases on structural economic reforms and the outcome of democratic elections since the 1970s. The data shows a remarkable slowdown in the pace of liberalisation in both advanced and emerging market and developing countries since the 1990s. A debate has emerged about the causes of this slowdown, including the possibility that reforms do not deliver the economic benefits that advocates, including the multilateral financial institutions, trumpeted. Some have pointed to the fact that the current and previous United States administrations have abandoned neoliberal policies in favour of more government intervention in the economy, and the effect has been globally contagious. Our empirical analysis suggests that the growth dividend from liberalisation is economically and statistically significant, but it emerges only slowly over time. Because of this delay, liberalising reforms are costly to democratic incumbents when they are implemented close to elections. Reforms may generate immediate concentrated losses, which elicit an electoral backlash, especially when the aggregate gains are only visible several years after the reform’s implementation. The electoral penalty is also sensitive to overall business-cycle conditions, being much larger when an economy is in recession. Electoral effects also differ depending on the type of reform. Notably, financial reforms generate more perceptible growth-equity trade-offs than real-economy reforms, especially when implemented during weak economic conditions. The political economy of reform is treacherous. To avoid adverse electoral effects, timing reform early in the electoral term and when business-cycle conditions are favourable is critical. So too is avoiding reforms that generate large distributional costs in the face of small aggregate gains (an adverse growth-equity trade-off). Focusing on these considerations is critical to reinvigorate support for structural reform.
Topic:
Economics, Political Economy, Reform, Elections, and Liberalization
Political Geography:
Global Focus

100. Who Governs? 50 years since the February 1974 election

Author:
Robert Saunders
Publication Date:
03-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
50 years ago this month, Prime Minister Edward Heath called a general election. With severe economic problems including the quadrupling of oil prices, a particularly fierce miners’ strike and the introduction of a three-day week, Heath addressed the nation, telling the electorate that they had to choose between ‘a strong Government which has clear authority for the future to take decisions which will be needed’ and one that ‘abandons the struggle against rising prices under pressure from one particularly powerful group of workers’. The result was a monumental moment in British political history – the first hung parliament since 1929 – and, arguably, as Alan Bancroft suggests, consigned the ‘post-war settlement’ to the ‘intensive care unit, ultimately leading to its demise in 1979’. To mark this significant anniversary, the Edward Heath Academic Forum – a new academic network to encourage study of the politics of the 1970s, and Heath’s contribution to British, European, and global politics – held its first public event at Queen Mary University of London. Dr Robert Saunders as well as Lord Butler (Private Secretary to the Prime Minister, 1972-74) and Lord McNally (Political Advisor to James Callaghan, 1974-76, and Head of Political Office at 10 Downing Street, 1976-79) revisit the campaign, the Conservatives’ struggle to sustain the focus on ‘Who Governs?’, Heath’s efforts to form a coalition with the Liberals, and the eventual formation of a minority Labour government.
Topic:
Economics, Elections, Domestic Politics, Prime Minister, and Edward Heath
Political Geography:
United Kingdom and North America