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Begin New Search Political Geography Global Focus Content Type Policy Brief Publication Year within 5 Years

61. Shift to renewable energy could be a mixed blessing for mineral exporters

Author:
Cullen S. Hendrix
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The world’s transition to sustainable energy systems has suddenly become a boon to countries rich in critical minerals used in clean energy technologies like rechargeable batteries, solar panels, wind turbines, and electric vehicles. Among these critical minerals are aluminum, coltan, copper, aluminum, zinc, tin, rare earths, lithium, tantalum, and cobalt. Given that these minerals are key to building sustainable energy systems, vital for ensuring military might, and often extremely valuable, will countries with large, exportable endowments of these minerals fall prey to the resource curse? Hendrix says these countries may find their newfound wealth to be a mixed blessing. The size of the markets for these resources and their marginal production costs suggest that they do not have the potential to generate massive rents the way that oil and gas production have. Given that these rents are the source of many ills—authoritarianism, reduced investment in human capital, poor human rights records—this is good news. But because several of these minerals can be mined artisanally, they may lead to governance challenges related to armed conflict. Their status as strategic resources will invite major power meddling and interventions—but only if mineral-rich economies are forced to align themselves and access to their resources with a major power, like the United States or China. The 20th century’s scramble to secure oil resources led to cursed dynamics in oil-rich societies, but historical precedent is not destiny. Mineral-rich countries may avoid the resource curse, especially if they develop diverse investment and trading relationships to balance major power interests in their mineral wealth and embrace industry- and civil society–led good governance initiatives around mineral resources.
Topic:
Economy, Exports, Renewable Energy, Sustainability, and Minerals
Political Geography:
Global Focus

62. Processing Trade and Global Supply Chains: Towards a Resilient “GVC 2.0” Approach

Author:
Lucian Cernat
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
In the current global context marked by economic fragility, growing uncertainty and geopolitical conflicts, ensuring the smooth functioning of global supply chains becomes more important than ever. Supply shortages, higher freight costs, higher commodity prices and strong demand increase will trigger inflationary pressures for all economic sectors dependent on global value chains (GVCs). As part of global efforts to enhance the resilience of GVCs, this paper makes the case for a broader discussion about the untapped potential of processing trade, a relatively unknown trade facilitation option available in many countries around the world. Processing trade has been credited with stimulating China’s participation in GVCs, in combination with foreign direct investment (FDI) attraction and industrial upgrading. However, processing trade is not just a Chinese phenomenon. In the EU, significant trade flows (over 200 billion euros in 2021 alone) benefitted from a double-digit trade cost reduction, thanks to the EU processing trade provisions. Different types of processing trade arrangements exist in over 70 countries worldwide (including in the EU), as a way to facilitate the integration of developing countries in global production chains. However, these unilateral schemes have different requirements and co-exist without any attempt to facilitate their inter-operability along complex global supply chains. This paper argues that there is a pressing need for a global reflection on how best to promote a better integration between these national processing trade schemes. One option is to promote a “GVC 2.0” approach that offers key recommendations and best practices for processing trade along GVCs. Such a coordinated “GVC 2.0” trade facilitation initiative would not only make GVCs more resilient for countries that depend on global sourcing for their critical economic activities, but it will also reduce the inflationary effect generated by the unnecessary trade costs associated with GVC activities.
Topic:
Political Economy, European Union, Trade, Resilience, and Supply Chains
Political Geography:
Europe, Asia, and Global Focus

63. Are Gender Inclusive Militaries Better at Integrating Disruptive Technologies?

Author:
Shira Eini Pindyck
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
University of California Institute on Global Conflict and Cooperation (IGCC)
Abstract:
Recent advances in big data and analytics, cyber security, automation, and artificial intelligence can make critical contributions to the demonstration of power on the international stage. New technologies not only offer militaries the ability to conduct operations with greater effectiveness but also reduce the potential human cost of operations. In an increasingly digitized world, organizations that do not adopt and leverage these advances can become inefficient and even fall by the wayside. Yet, despite the immense promise of emerging technologies, many organizations struggle to integrate and utilize them. This is true in both the military and business sectors. For business organizations, a failure to adopt and use novel technologies may threaten profits and even their survival. For militaries, where soldiers’ lives are on the line, the consequences can be even more severe. Why is the integration of new technologies often so difficult? This policy brief highlights an important and overlooked reason, namely how gender policy can affect resistance to organizational change. Gender policy reform requires organizations to invest resources in the recruitment and retainment of an inclusive workforce, and therefore demands that organizations be flexible and resilient. Flexibility and resilience are also required to integrate disruptive innovations. Rather than trying to chain a new technology to old systems of ascension and reward, organizations that want to advance technologically must rethink their incentive systems and work hard to restructure entrenched hierarchies.
Topic:
Defense Policy, National Security, Science and Technology, International Security, Military Affairs, Innovation, and Geoeconomics
Political Geography:
Global Focus

64. Inequality Kills: The unparalleled action needed to combat unprecedented inequality in the wake of COVID-19

Author:
Oxfam Publishing
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
The wealth of the world’s 10 richest men has doubled since the pandemic began. The incomes of 99% of humanity are worse off because of COVID-19. Widening economic, gender, and racial inequalities—as well as the inequality that exists between countries—are tearing our world apart. This is not by chance, but choice: “economic violence” is perpetrated when structural policy choices are made for the richest and most powerful people. This causes direct harm to us all, and to the poorest people, women and girls, and racialized groups most. Inequality contributes to the death of at least one person every four seconds. But we can radically redesign our economies to be centered on equality. We can claw back extreme wealth through progressive taxation; invest in powerful, proven inequality-busting public measures; and boldly shift power in the economy and society. If we are courageous, and listen to the movements demanding change, we can create an economy in which nobody lives in poverty, nor with unimaginable billionaire wealth—in which inequality no longer kills.
Topic:
Health, Inequality, Pandemic, and COVID-19
Political Geography:
Global Focus

65. UN, EU, and NATO Approaches to the Protection of Civilians: Policies, Implementation, and Comparative Advantages

Author:
Joachim A. Koops and Christian Patz
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
The protection of civilians (POC) in armed conflict has become a core strategic objective for the United Nations system and for UN peace operations in particular. The UN, however, is not the sole actor engaged in POC. The European Union (EU) and North Atlantic Treaty Organization (NATO), among other regional actors, have been developing their own policies and approaches to POC. While the significant overlap in these organizations’ member states and interorganizational developments create an opportunity to coordinate and synergize their POC policies, their approaches to POC differ—in some cases substantially. As the EU and NATO are both in the process of reassessing their strategic direction against the backdrop of new conflict scenarios, there is a need to reflect on the differences and similarities between these three organizations’ approaches to POC, their comparative advantages, and the future direction of the POC agenda. At a time when international peace operations and protection efforts are under intense political and operational pressure, such an understanding could also lay the foundation for more informed and effective interorganizational cooperation on POC. Toward this end, this paper examines the conceptualization of POC in the UN, the EU, and NATO, lays out the core POC policies and approaches of the three organizations and examines their approaches to implementing these policies in the field. The paper concludes with policy recommendations for the UN, the EU, and NATO to strengthen POC efforts within and between the three organizations: Adapt POC to new operational realities; Revitalize discussion on POC within and between the organizations; Improve POC training, preparedness, and institutionalization; and Focus on both passive (harm mitigation) and active approaches to POC.
Topic:
NATO, United Nations, European Union, Conflict, Civilians, Protection, and Regional Organizations
Political Geography:
Global Focus

66. The UN Agenda for Protection: Policy, Strategic, and Operational Priorities

Author:
Damian Lilly
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
In his 2020 Call to Action on Human Rights, UN Secretary-General António Guterres committed to developing an “Agenda for Protection.” The agenda provides an opportunity for the UN to reaffirm that the protection of crisis-affected populations is fundamental to its purpose and values. To be effective it should address the lessons learned from previous efforts to bring about a system-wide approach to protection, particularly the Human Rights up Front initiative. Critically, it should address the systemic and structural shortcomings of the UN to effectively respond to protection crises by providing strategic coherence to the fragmented ways in which the different UN entities contribute to protection. This policy paper analyzes the policy, strategic, and operational priorities for the forthcoming Agenda for Protection. It focuses on how the UN system can reform the way it addresses protection crises while remaining mindful that its role is heavily influenced by member states. It argues that without a transformative and comprehensive approach that brings together the fragmented ways the different UN entities contribute to protection, the Agenda for Protection is likely to suffer the same fate as previous unsuccessful efforts, further undermining the organization’s credibility. The paper concludes by providing several recommendations for the UN to consider as it drafts the Agenda for Protection: Establishing a clear vision statement and a commitment to protect; Setting out a common framework of protection measures to be implemented; Designating and resourcing a system-wide lead entity on protection; Outlining procedures to scale up the response in the event of a protection crisis; Developing an implementation plan and accountability framework; and Consolidating the reporting of protection results.
Topic:
Human Rights, United Nations, Sustainable Development Goals, Civilians, Humanitarian Response, and Protection
Political Geography:
Global Focus

67. An Unfinished Agenda: Carving Out Space for Humanitarian Action in the UN Security Council’s Counterterrorism Resolutions and Related Sanctions

Author:
Agathe Sarfati
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
Since the terrorist attacks of September 11th, 2001, the UN Security Council has developed two main streams of work related to counterterrorism: the sanctions regime established by Resolution 1267 and measures under Resolution 1373. However, these resolutions and related sanctions regimes have been criticized for failing to safeguard and facilitate impartial humanitarian action. In response, the council has progressively incorporated language that better considers international humanitarian law (IHL) and humanitarian principles. Despite these efforts, humanitarian organizations have continued to criticize counterterrorism resolutions and related sanctions regimes for inhibiting humanitarian activities. This policy paper considers how the Security Council’s counterterrorism resolutions and related sanctions regimes can continue making progress to better protect humanitarian action. It begins by describing the council’s main streams of work on counterterrorism as well as their subsidiary organs. The second section discusses the impact of these counterterrorism measures on impartial humanitarian activities. The third section then reviews the incremental steps taken by the Security Council to incorporate language relevant to IHL and humanitarian affairs into these measures. The fourth section analyzes the four most recent counterterrorism-related resolutions adopted by the Security Council. The paper concludes with policy recommendations for entities both within and outside of the UN to better safeguard humanitarian action within counterterrorism resolutions and related sanctions regimes: For humanitarian organizations, relevant civil society groups and UN entities, and independent experts: Advocate to keep humanitarian action high on the Security Council agenda; Monitor the implementation of the humanitarian exception for Afghanistan; and Issue independent opinions on advisable forms of humanitarian carve-outs. For the UN Security Council and other UN member states: Reinforce implementation and monitoring of provisions in Security Council resolutions pertaining to IHL and humanitarian action; Provide adequate resources to monitor the impact of UN counterterrorism measures and related sanctions on humanitarian action; Amend language in UN counterterrorism resolutions and related sanctions regimes to facilitate humanitarian action; and Empower elected members of the Security Council to be agents of change.
Topic:
Sanctions, Counter-terrorism, UN Security Council, and Humanitarian Response
Political Geography:
Afghanistan and Global Focus

68. Blue on Blue: Investigating Sexual Abuse of Peacekeepers

Author:
Phoebe Donnelly, Dyan Mazurana, and Evyn Papworth
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
It is commonly assumed that the main threats to uniformed peacekeepers originate from outside of peacekeeping missions. However, many women (and some men) deployed as military or police peacekeepers are subjected to sexual abuse by other members of the organizations they serve. Until now, there has been little research specifically focused on this sexual abuse by uniformed peacekeepers against their peacekeeping colleagues. This paper helps fill that gap, drawing on a survey of peacekeepers as well as data from interviews and a closed-door workshop. It presents findings related to the extent, frequency, and type of abuse peacekeepers have experienced and witnessed; the perpetrators of this abuse; the organizational cultures that enable it; and peacekeepers’ perceptions of the UN’s response. These findings reveal that while sexual abuse is a major threat to uniformed peacekeepers, especially women, the UN and troop- and police-contributing countries (T/PCCs) have not adequately responded to the issue. This lack of attention is in contrast to the relatively robust architecture for reporting on and investigating sexual exploitation and abuse of host communities in peacekeeping environments. To successfully prevent and respond to sexual abuse within peacekeeping missions as well as increase women’s meaningful participation in peace operations, the report concludes by providing several recommendations across four broad areas for the UN and T/PCCs: Transform the organizational cultures that enable sexual abuse of peacekeepers; Mandate robust training to prevent sexual abuse of peacekeepers; Require T/PCCs to address sexual abuse of peacekeepers within their contingents; and Create a robust, confidential, and victim-centric reporting and investigation infrastructure.
Topic:
United Nations, Peacekeeping, and Sexual Violence
Political Geography:
Global Focus

69. Enhancing the Protection of Civilians through Conventional Arms Control

Author:
Damian Lilly and Barbara Morais Figueiredo
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
Conventional arms control and disarmament efforts have historically been framed as a humanitarian cause to limit human suffering. However, activities with an arms control component have only featured to a limited extent within the protection of civilians (POC) mandates of United Nations peace operations. Both issues feature on the agenda of the UN Security Council, which mandates missions, but the linkages between the two have not been well explored at the policy, strategic, and operational levels. Produced in conjunction with the United Nations Institute for Disarmament Research, this brief provides an analysis of the actual, and potential, contribution of conventional arms control and related activities to POC within the context of UN peace operations—both peacekeeping operations and special political missions. There has been limited research conducted on this topic, and it has been addressed in only a cursory manner in relevant policies, guidelines, and strategies. This paper therefore attempts to demonstrate the existing linkages between these two mandated tasks, as well as to pinpoint some of the barriers and challenges to why arms control has not featured more fully within the POC efforts of missions. It then identifies relevant entry points based on concrete examples of how arms control-related activities can be better leveraged by UN peace operations to ensure the more effective protection of civilians.
Topic:
Arms Control and Proliferation, Civilians, UN Security Council, and Protection
Political Geography:
Global Focus

70. Gender-Responsive Leadership in UN Peace Operations: The Path to a Transformative Approach?

Author:
Sarah Smith
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
Initiatives to increase gender equality or implement the women, peace, and security agenda in peace operations routinely fail when they lack support from leadership. Gender-responsive leadership is thus essential to the UN’s efforts to promote gender equality in UN missions and the countries where these missions are deployed. While the phrase “gender-responsive leadership” is not yet widely used by the UN, its fundamental principles have been integrated across several peacekeeping priority areas and policy frameworks, including training and mentoring programs, accountability frameworks, and data collection and monitoring. Yet significant shortcomings remain. This issue brief examines the concept and practice of gender-responsive leadership and assesses its potential to contribute to UN peace operations. It begins by examining the concept of gender-responsive leadership, the approaches and strategies envisioned by policymakers, and what outcomes it can achieve. It then outlines why gender-responsive leadership is important to UN peace operations and how it could bring about new approaches and challenge barriers to gender equality. It also considers the steps the UN has taken to implement gender-responsive leadership at both the mission and headquarters levels. The paper argues that gender-responsive leadership has the potential to change gender-unequal outcomes in peacekeeping if it is supported through training, mentoring, online resources, and assessment frameworks. Ultimately, the paper recommends a more inclusive, intersectional view of gender-responsive leadership—one that pays attention to issues such as race, ability, and sexual orientation—to ensure that leaders do not operate according to homogenized or essentialized understandings of women’s experiences.
Topic:
Security, United Nations, Peacekeeping, Women, Leadership, and Peace
Political Geography:
Global Focus

71. Vaccine Equity in ConflictAffected Areas: The Challenges of Development, Production, Procurement, and Distribution

Author:
Katherine DeLand
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
While the wide-ranging impacts of COVID-19 are being felt in all countries and communities, the pandemic is having a disproportionately large impact on vulnerable populations, such as people living in areas affected by fragility, conflict, and violence. Vaccines hold enormous promise to mitigate these impacts, but the complications inherent to armed conflict make accessing vaccines especially challenging. Even when countries do receive vaccines, they often face challenges in rolling out vaccination programs, whether because they lack adequate capacity or because the doses are set to expire or are not acceptable to the communities set to receive them. This issue brief focuses on the challenges of equitably distributing COVID-19 vaccines to populations in conflict-affected areas. It begins by looking at general issues related to the development, approval, production, procurement, and distribution of vaccines. It then examines the particular challenges to distributing vaccines in conflict-affected areas both before and during the vaccine rollout. The report concludes with several recommendations for stakeholders and policymakers to improve the delivery of vaccines in conflict-affected areas: Redistribute global resources to increase the supply of vaccines to conflict-affected countries; Increase the transparency and predictability of global vaccine supplies; Enhance cooperation and coordination at the national and local levels to deliver vaccines to conflict-affected areas through existing humanitarian response mechanisms; and Ensure that vaccination campaigns in conflict-affected areas adhere to humanitarian principles.
Topic:
Health, Conflict, Vaccine, COVID-19, and Humanitarian Response
Political Geography:
Global Focus

72. Expanding Conceptions of Conflict-Related Sexual Violence among Military Peacekeepers

Author:
Gretchen Baldwin
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
UN peacekeeping missions tend to frame conflict-related sexual violence (CRSV) narrowly both in terms of who its victims are and who is best placed to address it. The victims of CRSV are usually assumed to be women and girls, and there is often an expectation that women peacekeepers will be better able to address CRSV than men. These assumptions reflect the frequent conflation of CRSV with “violence against women and girls,” as well as with “sexual and gender-based violence.” They also reflect the broader conflation of “women” and “gender” throughout UN policy documents and training resources for military peacekeepers. This issue brief explores how the UN system currently understands CRSV and SGBV, how this understanding affects the responsibilities, roles, and perceptions of military peacekeepers, and how UN policies—especially those focused on military women’s participation in peacekeeping—might be more inclusive. It draws on desk research as well as interviews with practitioners, UN personnel, and academic gender experts, as well as insights shared in several closed-door, expert-level workshops. The paper concludes that the current narrow understanding of CRSV harms victims of sexual violence who are not women and girls, including men and boys as well as sexual and gender minorities. Beyond the victims, narrow understandings of CRSV also harm women peacekeepers. Those pushing to increase the number of uniformed women peacekeepers often emphasize their added value in preventing and responding to CRSV. This assumption can perpetuate the idea that women peacekeepers’ primary added value is their gender identity and saddles them with additional responsibilities, often without adequate training, resources, or authority.
Topic:
Security, United Nations, Peacekeeping, Women, Conflict, Sexual Violence, and Peace
Political Geography:
Global Focus

73. The failure of global public health governance: a forensic analysis

Author:
Jean Pisani-Ferry, Anne Bucher, and George Papaconstantinou
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
COVID-19 has underlined that in a context of recurring pandemics, public health is a basic global public good, the provision of which presupposes effective and timely collective action at global level. It has exposed the limitations of the prevailing framework. This Policy Contribution positions global public health governance in the wider debate on the reform of international governance arrangements. It distinguishes between the ‘before’ phase of pandemic preparedness, characterised by ‘denial and neglect’; the first phase (‘addressing the outbreak’), with scientific cooperation and an uncoordinated response to the outbreak; the second phase (‘responding and containing’), with a scaling up of testing, but also competition for scarce equipment and slow development of tests; the third ‘protecting’ phase, with the exceptional development of new vaccines but also rival vaccine diplomacy; and the final ‘exit’ phase, with ramping up of vaccine distribution, but also a glaring failure to vaccinate poor countries. In the evolution of global governance arrangements in different policy areas, six ingredients have been important, and two were clearly present in public health: joint identification of the problem, and shared expertise, as demonstrated especially in the scientific and institutional response. This was much less the case with two others: common action principles, and transparent reporting mechanisms. Finally, there have been significant problems with the last two ingredients: there is no accepted outcome-evaluation process to assess results and adapt instruments, while trust issues continue to hamper the work of the World Health Organisation. The decision to work towards a new pandemic treaty should be assessed against the reform agenda of global health security governance. Four proposals can be made. The WHO should be turned it into a strong and independent standard-setting and surveillance authority for preparedness, prevention, and response, while existing institutions and initiatives should be streamlined and consolidated to better provide essential medical supplies globally. Meanwhile, a G20-type body should be established to provide leadership and ensure a whole-of-government approach that repositions global health governance in the world order and puts it on par with economic interdependence or financial stability in terms of governance, institutional backing and resources. Adequate funding should be provided through a self-standing fund to address the shortfalls COVID-19 has revealed in preparedness of national health systems, detection and containment, and shortages and misallocations of critical medical supplies.
Topic:
Governance, Public Health, COVID-19, and Forensic Science
Political Geography:
Global Focus

74. Is the post-war trading system ending?

Author:
Uri Dadush
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The world trading system is reeling from the trade war between China and the United States, the disabling of the World Trade Organisation Dispute Settlement Understanding and repeated rule-breaking by WTO members. This does not mean the end of the post-war system, but it is being transformed into a more complex, politicised and contentious set of trade relationships. The new framework is likely to evolve around a WTO in maintenance mode with weak and largely unenforceable rules, and three blocs built by regional hegemons. Trade within the blocs will be relatively free and predictable, but the blocs are far from cohesive, contributing to the politicisation of the system. Trade relations between the blocs, especially among the regional hegemons, will be tense and potentially unstable. Countries across the world need to rethink their trade and foreign policies to reflect the new reality. They need to continue to lend support to the WTO but also to accelerate work on regional and bilateral deals, while entering plurilateral agreements on specific issues – within the WTO if possible, or outside it if not. Beyond these general prescriptions, the priorities of different economies vary greatly. The trade hegemons of China, the European Union and the US face vastly different challenges. Middle powers on the periphery of the regional blocs, or outside them, such as Brazil, India and the United Kingdom, face an especially arduous struggle to adjust to a less predictable system. Small nations will be forced into asymmetrical deals with the hegemons or will play them off against each other, adding to the politicisation of trade relations.
Topic:
Foreign Policy, Economy, Trade, and WTO
Political Geography:
Global Focus

75. COVID-19 and the shift to remote work

Author:
Scott Marcus
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
COVID-19 has accelerated the shift to remote work. Enabling knowledge workers to do their jobs from home or elsewhere brings benefits by increasing labour participation, avoiding unproductive commuting time (thus reducing the carbon footprint), and reducing the gender gap by enabling single parents or partners with domestic-care responsibilities to work. Not all jobs are suitable for remote work, but far more remote work is feasible than was typical prior to the pandemic. The post-pandemic new normal is sure to differ both from the pre-pandemic normal and from current arrangements. Hybrid arrangements in which part of the week is spent at the office, and part at home, are likely to become the norm. Employers, workers, educators, trade unions and governments will need to adapt to the new normal. For employers and managers, the change emphasises the need to manage based on results rather than hours worked, and likely implies many changes in how they manage their employees. Workers will need to be flexible in order to capitalise on the new opportunities in the evolving world of work, and to ensure they have suitable skills for remote work. Educators will need to further emphasise digital skills, and to accelerate the shift from traditional education to lifelong learning. Trade unions will need to re-think how they recruit workers who do not see each other every day, and how they can respond to evolving social protection needs. Policymakers will need to deal with distributional effects driven by the shift to remote work, to protect the work-life balance that remote work potentially erodes, and to seek to ensure that the shift to remote work does not erode social protection.
Topic:
Employment, Work Culture, COVID-19, and Remote Work
Political Geography:
Global Focus

76. An analysis of central bank decision-making

Author:
Maria Demertzis, Catarina Martina, and Nicola Viegi
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The process by which central banks take decisions has evolved over the years, with a tendency towards independence and decisions taken by committees rather than individuals. Monetary policy committees can be set up formally in different ways, traditionally falling into one of two categories: individualistic or collegial. Individualistic committees reach decisions by voting and publish the votes of each of their members, while in collegial committees, decisions are typically reached collectively. The European Central Bank is an example of the latter, while the Bank of England follows an individualistic approach. Focusing on decision-making, a relevant question is whether the formal set-up in practice leads to different ways of deliberating and reaching monetary policy decisions. We look at decisions taken by the Bank of England, the Federal Reserve and the European Central Bank over more than 20 years to evaluate how different the decision-making process is in these three central banks. The results indicate that, irrespective of the committee type, their approach to consensus building when they take decisions is similar. The three central banks seem to value reaching decisions by unanimity, both on interest rates – the prime monetary policy instrument by definition – and on asset purchases. Decisions to tighten monetary policy are more often taken unanimously than decisions to ease monetary policy. When maintaining policy unchanged, decisions are usually backed by most committee members.
Topic:
Federal Reserve, Finance, Central Bank, European Central Bank, Decision-Making, and Bank of England
Political Geography:
United Kingdom, Europe, Global Focus, and United States of America

77. Real Effects of Climate Policy: Financial Constraints and Spillovers

Author:
Söhnke M. Bartram
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Climate change is among the most intensely debated socioeconomic issues of current times. As a response to potential catastrophic risks from climate change, governments around the world are pushing for various regulations to curb greenhouse gas emissions. However, there is far from a consensus on optimal policy approaches, and as a result, climate policies are highly fragmented across the jurisdictions in which they are designed and implemented. More importantly, it is unknown whether such localized yet uncoordinated policies are able to internalize potential externalities that may impede efforts to address climate change as a global phenomenon or simply distort allocations in the economy. For example, at the beginning of 2013, California became the first and only state to put a comprehensive mandatory carbon regulation in place in the form of a cap‐​and‐​trade system that applies universally to all industrial greenhouse gas emissions. Exploiting the introduction of the California cap‐​and‐​trade rule, we investigate the internal resource‐​allocation responses by firms and the real but unintended spillover effects of localized climate policies that arise from the importance of financial constraints. Our study analyzes the interplay between climate policy and firm behavior, and it informs policymakers regarding the effectiveness of climate regulation.
Topic:
Climate Change, Regulation, Economy, Business, and Carbon Emissions
Political Geography:
Global Focus

78. Slippery Fish: Enforcing Regulation under Subversive Adaptation

Author:
Andres Gonzalez-Lira
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Correcting market failures and improving economic efficiency often require curbing undesirable behaviors of market agents who act to maximize their private benefits. Examples include actions that affect ecosystems, such as deforestation, pollution, and overexploitation of natural resources; actions that affect community health, such as drunk driving and open defecation; or actions that undermine government performance, such as corruption and tax evasion. Enacting and enforcing regulations is the most direct strategy to deter such behaviors. Implementing this strategy requires strong institutions to enforce laws, plus sophisticated policing to track agents’ reactions to enforcement so that rules are robust enough to curb the undesirable behavior even when regulated agents try to game the new system.
Topic:
Environment, Government, Markets, Regulation, and Adaptation
Political Geography:
Global Focus

79. The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time

Author:
Joan Costa-i-Font, Sarah Fleche, and Ricardo Pagan
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
More than 70 countries around the world currently observe daylight saving time (DST) to reduce energy demand. However, recent studies have shown that DST does not save energy and may actually increase electricity consumption. Furthermore, opponents of DST argue that even a one‐​hour time change can have long‐​term consequences for individuals. DST transition has been linked to increased risks of car accidents, heart attacks, and depressive symptoms in studies. According to our findings, the spring DST transition has a negative impact on individuals’ welfare, specifically a decrease in life satisfaction. Investigating a broad range of outcomes, we show that this decline in life satisfaction can be explained by a decrease in sleep following the transition and an increase in time pressure, which significantly affect individuals’ physical and emotional health in subsequent days.
Topic:
Economic Policy, Time, Well-Being, and Daylight Saving Time
Political Geography:
Global Focus

80. Technological Innovation and the Future of Energy Value Chains

Author:
Nicola De Blasio
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The transition from energy systems dominated by fossil fuels1 to ones based on renewable electricity and carbon-free molecules will significantly impact existing value chains2 and forge new pathways and transformation steps from production to consumption. This transition will bring not only substantial cost challenges but also promises to dramatically alter stakeholders’ interactions along value chains. Technological innovation is driving dynamics not seen in the energy sector since the Industrial Revolution, and it will be key to accelerating the transition to a low-carbon economy while sustaining growth and achieving prosperity for all. But as new technologies develop to meet growing energy needs, understanding how these technologies will impact existing energy value chains is crucial for navigating the energy transition successfully. To elucidate these dynamics, we must first identify the key technologies3 driving disruptive change and then understand how their deployment at scale might impact existing value chains or cause new ones to emerge.
Topic:
Environment, Natural Resources, Innovation, Renewable Energy, Value Chains, Hydrogen, and Energy
Political Geography:
Global Focus