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Begin New Search Topic Economics Political Geography United States Content Type Policy Brief Publication Year within 25 Years Publication Year within 10 Years

1. The Divide between Economic History and History: From Ideology to Methodology

Author:
Gavin Wright
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
I attended grad school at Yale in the late 1960s, when the New Economic History was on the ascendancy. Although the NEH was mainly in economics, the broader field of economic history clearly included members of both parent disciplines. At Yale, history grad students like Jan de Vries and Fred Carstensen could do an economic history track by taking a few core econ courses. There was also fair amount of common cause with a movement called the New Social History, interested in pursuing quantification to write “history from the bottom up.” Membership and presidents of the Economic History Association were about equally divided between the two disciplines. When I started at Michigan in 1972, there were two card-carrying economic historians in the history department (Sylvia Thrupp and Jacob Price), and similar lineups were not unusual elsewhere. The era of coexistence came to an abrupt end with the publication of Time on the Cross by Fogel and Engerman in 1974. The book was controversial not just because of its claims about slavery in the United States — that slavery was efficient, productive, and not all bad for the slaves — but because these claims were presented as a summation of research by cliometric economic historians over the previous decade or more. Even though some of the most robust critiques came from within economic history — consolidated in Reckoning with Slavery, published in 1976 — many historians felt that any discipline that could generate such an offensive brand of history did not deserve respectful intellectual status. In truth, History was probably going its own way towards the “cultural turn” anyway. To the extent that economic history had something to do with this move, it would have been a reaction to the observation that much of the new work seemed drawn moth-like to the discovery of markets and market processes in history, concluding that “markets worked.” Bill Parker remarked on this tendency in his presidential address to the EHA: “From Old to New to Old in Economic History” (JEH 1971), describing the NEH as “a gigantic test of the hypothesis of economic rationality of a system and of the behavior of individuals within it.” Robert Lucas wrote: “The central lesson of research in economic history is that neoclassical economics applies anytime, anywhere.” This now seems like something of a caricature, but for the NEH roughly through the 1970s, Lucas was largely correct. A case in point that mattered to many historians was the agricultural regime of the postbellum South. Works published in the 1970s by Joseph Reid, Stephen DeCanio and Robert Higgs all concluded that sharecropping was not an exploitive economic form, and that any racial oppression that did occur was rooted in politics rather than markets. Small wonder that historians found little to attract them to this style of research.
Topic:
Economics, Education, History, Slavery, Ideology, and Macroeconomics
Political Geography:
United States

2. A Policy Matrix for Inclusive Prosperity

Author:
Dani Rodrik and Stefanie Stantcheva
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
One of the biggest challenges that countries face today is the very unequal distributions of opportunities, resources, income and wealth across people. Inclusive prosperity – whereby many people from different backgrounds can benefit from economic growth, new technologies, and the fruits of globalization – remains elusive. To address these issues, societies face choices among many different policies and institutional arrangements to try to ensure a proper supply of productive jobs and activities, as well as access to education, financial means, and other endowments that prepare individuals for their participation in the economy. In this paper we offer a simple, organizing framework to think about policies for inclusive prosperity. We provide a comprehensive taxonomy of policies, distinguishing among the types of inequality they address and the stages of the economy where the intervention takes place. The taxonomy clarifies the differences among contending approaches to equity and inclusion and can help analysts assess the impacts and implications of different policies and identify potential gaps.
Topic:
Economics, Labor Issues, Economic Inequality, Macroeconomics, Job Creation, Polarization, Productivity, Inclusion, Workforce, and Production
Political Geography:
United States

3. Majoritarian versus Proportional Representation Voting

Author:
Ethan Kaplan
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
What kind of voting system should countries have? This policy brief discusses the two main electoral systems in modern political democracies. It makes an argument that majoritarian systems such as what exists in the United States fail to properly represent voters. It suggests replacing the U.S. majoritarian political system with a proportional representation system and shows how this could be done within the context of current U.S. law. Both economists and political scientists have worked on the impact of electoral systems. Empirical methods from economics as well as economic analysis of the incentives created by different political systems have contributed to our understanding of the consequences of electoral systems on representation. Additionally, economists have estimated the impact of electoral system on fiscal expenditures, something we will discuss towards the end of the policy brief. There are two main voting systems in modern democratic societies: majoritarian systems and proportional representation systems. Federal voting in the United States is majoritarian though some states such as Maryland have proportional representation at the state level. In a majoritarian system, also known as a winner-take-all system or a first-past-the-post system, the country is divided up into districts. Politicians then compete for individual district seats. The candidate who receives the highest vote share wins the election and represents the district.
Topic:
Economics, Democracy, Representation, Macroeconomics, Voting, and Electoral Systems
Political Geography:
United States

4. EfIP Online Panel: A New Macroeconomics?

Author:
Jón Steinsson
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
There is a narrative within our field that macroeconomics has lost its way. While I have some sympathy with this narrative, I think it is a better description of the field 10 years ago than of the field today. Today, macroeconomics is in the process of regaining its footing. Because of this, in my view, the state of macroeconomics is actually better than it has been for quite some time. The most important problem with macro over the past few decades has been that it has been too theoretical. When I say this, I don‘t at all mean to say that theory is useless. To the contrary, theory is an essential element of a healthy science. But a healthy science needs a balance between theory and empirical work. Macro lost this balance in the 1980s and is only regaining it now. Most narratives about the evolution of macro focus on the evolution of macroeconomic theory and the rational expectations revolution in particular. An under-appreciated part of this story is that the rational expectations revolution shifted the field away from empirical work. This was partly because building models that met the higher standards of rigor set by Lucas and his co-revolutionaries was a challenging and therefore highly absorbing task. But that isn’t the only reason. For reasons that are not entirely clear to me, a very substantial fraction of macroeconomists came to believe that the Lucas critique implied that quasi-experimental empirical methods could not be used in macro. The idea that changes in policy could radically alter empirical regularities (i.e., the Lucas critique) somehow came to be interpreted to mean that the only way to do empirical work in macro was to write down fully specified general equilibrium models of the whole economy and evaluate the entire model (either by full-information inference methods or moment matching). Sargent, for example, placed enormous emphasis on the idea of “cross-equation restrictions.“ It seems that this line of thinking led large numbers of macroeconomists astray in terms of how to think about empirical work in macro for several decades.
Topic:
Economics, Political Economy, and Macroeconomics
Political Geography:
United States

5. New Directions in Macroeconomics

Author:
Gillian Brunet
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
Without being overly prescriptive, macro research must meet two standards to keep the field moving in a productive direction: models must be tested empirically and researchers must think carefully about how underlying assumptions restrict the set of questions that can be answered with a given model. Models move knowledge forward through rigorous empirical testing. Matching moments in model calibration is not enough—nor should it be considered true empirics. When economics is done well, theory and empirics are complements: empirical research disciplines models and theory disciplines empirical research. In recent decades, macro research has tilted very heavily towards theory, forgoing the feedback generated by rigorous empirical testing and, as a consequence, dramatically reducing the ratio of insight to effort. Macro as a field must value empirical contributions to flourish fully. There has been significant progress in the last decade, but the balance still tilts heavily towards theory. Macroeconomists must stop dismissing empirical contributions as trivial for macro theory to reach its potential. It’s not an accident that many of today’s best macroeconomists stand out for their work in both theory and empirics: empirical work disciplines their theoretical research. Over the past 40-50 years, research in short-run macroeconomics has focused on the goal of creating unified, internally consistent models of the macroeconomy. While this is a worthy goal, it has perhaps become too dominant—and imposes hidden costs on research. The emphasis on developing a central baseline model to which idiosyncratic features are added for addressing a specific problem discourages many researchers from considering the suitability of the underlying model to the specific question being asked. As economists we are taught that every model is a simplification, so that the relevant question is not whether a model is good or bad but whether it is good or bad for answering a specific question. Yet choosing a single baseline model of the macroeconomy tends to obscure the closeness of the relationship between the model and the question it is used to answer. Often macroeconomists think carefully about the relationship between their question and the idiosyncratic features they add to the baseline model, but many of the assumptions underlying the baseline model become invisible and thus unquestioned. This is understandable given the complexity of modern macro models, but it has high costs. More careful consideration of the assumptions underlying baseline models and their appropriateness to individual research questions can help move the field forward.
Topic:
Economics, Political Economy, Macroeconomics, and Models
Political Geography:
United States

6. Restraining Ourselves: Helping by Not Hurting

Author:
Nathan Nunn
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
In this brief, I discuss the current state of economic development policy, which tends to focus on interventions, usually funded with foreign aid, that are aimed at fixing deficiencies in developing countries. The general perception is that there are inherent problems with less-developed countries that can be fixed by with the help of the Western world. I discuss evidence that shows that the effects of such ‘help’ can be mixed. While foreign aid can improve things, it can also make things worse. In addition, at the same time that this ‘help’ is being offered, the developed West regularly undertakes actions that are harmful to developing countries. Examples include tariffs, antidumping duties, restrictions on international labor mobility, the use of international power and coercion, and tied-aid used for export promotion. Overall, it is unclear whether interactions with the West are, on the whole, helpful or detrimental to developing countries. We may have our largest and most positive effects on alleviating global poverty if we focus on restraining ourselves from actively harming less-developed countries rather than focusing our efforts on fixing them.
Topic:
Development, Economics, International Political Economy, Developing World, and Economic Development
Political Geography:
United States and Global Focus

7. Flattening the Pandemic and Recession Curves

Author:
Pierre-Olivier Gourinchas
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
In the short run, the capacity of any country’s health system is finite (capacity of Intensive Care Units, number of hospital beds, number of skilled health professionals, ventilators….). This puts an upper bound on the number of patients that can be properly treated, at any given point in time and is represented by the flat line in the Figure. Unchecked, and given what we know of the transmission rate of the coronavirus, the pandemic would quickly overwhelm any health system, leaving many infected patients with deteriorating pulmonary conditions without any treatment. The fatality rate would surge. The threat is almost beyond comprehension. With a 2% case fatality rate baseline for overwhelmed health systems, and 50% of the world population infected, 1% of the world population -76 million people- would die. This scenario corresponds to the red curve in Figure 1. The part of the curve above the capacity of the health care system faces a sharply higher mortality risk (shaded red area).
Topic:
Economics, International Political Economy, Health Care Policy, Economic Growth, Macroeconomics, Pandemic, COVID-19, and Global Health
Political Geography:
United States

8. Coronavirus and Managing Your Organization’s Response

Author:
Anton Korinek
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
Organizations around the world are working through how to respond to the novel coronavirus, posing one of the greatest challenges to leaders in a long time. Do they restrict travel? Doing so would have substantial financial implication, make months of preparation worthless and lower the morale of many stakeholders who enjoy travel. However, travel is what brought the coronavirus to the country in the first place — and what continues to spread it to new communities within the country. What about instituting remote work procedures? In-person meetings and events may be a critical part of an organization’s activities and an important part of the value it offers. Perhaps there are no known cases of the virus in a given community. However, once it does gain a foothold, social distancing is the only way to slow the spread. Carriers of the virus may unwittingly spread it for days before symptoms manifest themselves. Above all, one of the greatest challenges is to balance an organization’s economic concerns with the question of what is ethically the best course of action.
Topic:
Economics, International Political Economy, Pandemic, and COVID-19
Political Geography:
United States and Global Focus

9. Racial Inequality

Author:
Lisa D. Cook and Trevon Logan
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
The origins of American capitalism in the institutions of slavery continues to cast a long shadow. As the economist William Darity Jr. has written, the dead hand of history weighs heavily on us because the dead hand of history remains fitfully alive. Contemporary racial inequality can be thought of as the product of a long historical process with at least two reinforcing sets of policies. The first would be policies governing the spatial distribution of the black population. The second would be policies that had a disparate impact on black individuals because of their locations. Understanding current black-white gaps in income, wealth and education require understanding the complex relationship between regional inequality, race and policies at the local, state, and national levels. In this article, we outline the ways that the spatial distribution of the black population has evolved over time and the ways that spatial distribution has interacted with policy to, at times, reduce and exacerbate levels of inequality. Recognizing the ways that past policies explicitly stymied black economic mobility and how current policies have explicitly or inadvertently done the same provides a basis for understanding how to craft future policies to reduce racial inequalities. Furthermore, recognizing the interconnection of discrimination and the spatial distribution of the black population is important for understanding certain components of regional and spatial inequality. The difference in location within regions makes it inevitable that policies that differentially affect urban and rural areas will have disparate effects by race. A recent example of this is the proposed Medicaid work requirement in Michigan. The original version of Michigan Senate Bill 897 exempted individuals from this work requirement conditional on residing in a county with an unemployment rate above 8.5 percent. The spatial distribution of the white and black populations of Michigan meant that this exemption would have racially disparate impacts; given that poor white individuals disproportionately live in rural areas and black individuals live in urban areas, the higher unemployment rates in rural counties would disproportionately exempt white Medicaid recipients from the work requirement within the bill. Although—after considerable negative press—the exemption was dropped from the final version of the work requirement bill, this incident reveals the complex interplay between policy, inequality across space, and inequality between races. Even if a policy like the unemployment rate exemption in the Michigan bill is crafted without discriminatory intent, it can nonetheless increase racial inequality. In the following sections we explore the how policy has shaped the geographic and economic mobility of the black population over the past century and a half, drawing from the large literatures on regional inequality and racial discrimination that have all too often been treated in isolation from one another.
Topic:
Economics, Race, Capitalism, Inequality, Slavery, Macroeconomics, Reparations, Racism, and Systemic Racism
Political Geography:
United States

10. Why, When, and How to Teach the Fundamentals of Inequality in Principles

Author:
Can Erbil and Geoffrey Sanzenbacher
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
The continued rise of economic inequality in the U.S. has been on the radar of economists and policymakers for the last few years. New initiatives and platforms like EfIP (Economics for Inclusive Prosperity) have emerged, where economists work on creating fresh and useful policy ideas to promote more “inclusive” models of generating prosperity. Yet, students still face a lot of confusion, “noise,” and disagreement when it comes to the topic of inequality.[1] Especially in the age of easy access to information online, students not fully literate in economics struggle to sift through the literature and separate rigorous scientifically based research from opinion pieces. This article discusses a way to introduce some recent trends in U.S. inequality to students, and then delve into a specific topic (e.g., racial inequality) in a two-lecture module at the end of an introductory economics course. After all, it is not that the students are not interested in this topic. But, left alone, many of them become confused. Students do not make distinctions between different broad types of inequalities, such as income inequality, wealth inequality, or inequality of opportunity. They do not understand differences in the underlying causes of inequality, which vary depending on whether the topic is inequality across educational groups, gender-based groups, or racial/ethnic groups. And, they make basic mistakes in reading articles or viewing data, such as mixing-up correlation with causation or looking at graphs with different scales. Fortunately, introductory economics courses have a chance to reach students early in their careers, and correct many of these deficiencies. Indeed, recent events in the US compel us to cover inequality and its consequences in our introductory classes. The economic impact of the COVID-19 epidemic falls significantly more on minorities, women, people with lower income levels and people of color.[2] And, the disparities in poverty and opportunity rates between black and non-black populations is at the root of racial discrimination which re-ignited the BLM movement.[3] Indeed, economic inequality is also related to other disciplines in Social Sciences, such as Sociology, Political Science and even Liberal Arts courses such as History and English. However, Economics faculty are well-equipped to cover the empirical outcomes and the underlying economic models – and lay out their strengths as well as short-comings. Given that teaching about economic inequality is an important task, this article will first discuss when it makes sense to teach it. The article will then spend the majority of its time providing some tips for covering the material, as well as some suggested assignments.
Topic:
Economics, Education, Inequality, Economic Inequality, Macroeconomics, and Models
Political Geography:
United States

11. Economics for Inclusive Prosperity: An Introduction

Author:
Suresh Naidu, Dani Rodrik, and Gabriel Zucman
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
We live in an age of astonishing inequality. Income and wealth disparities between the rich and the poor in the United States have risen to heights not seen since the gilded age in the early part of the 20th century, and are among the highest in the developed world. Median wages for American workers remain at 1970s levels. Fewer and fewer among newer generations can expect to do better than their parents. Organizational and technological changes and globalization have fueled great wealth accumulation among those able to take advantage of them, but have left large segments of the population behind. U.S. life expectancy has declined for the third year in a row in 2017, and the allocation of healthcare looks both inefficient and unfair. Advances in automation and digitization threaten even greater labor market disruptions in the years ahead. Climate change fueled disasters increasingly disrupt everyday life. Greater prosperity and inclusion both seem attainable, yet the joint target recedes ever further.
Topic:
Economics, Capitalism, Inequality, Economic Policy, and Economic Theory
Political Geography:
United States

12. Towards a Better Financial System

Author:
Anat R. Admati
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
The financial system is fragile and distorted because current rules fail to counter the distorted incentives by banking institutions to borrow excessively and to remain opaque. Better-designed rules to reduce the reliance on debt and ensure that institutions use significantly more equity would enable the financial system to serve society better. Revising counterproductive tax and bankruptcy codes that, together with the extensive safety net offered to the financial system currently encourage dangerous conduct, would also be beneficial.
Topic:
Economics, International Trade and Finance, Finance, Economic Policy, Economic Theory, and Macroeconomics
Political Geography:
United States

13. An Expanded View of Government’s Role in Providing Social Insurance and Investing in Children

Author:
Sandra E. Black and Jesse Rothstein
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
While private provision of goods often yields the efficient outcome, there are a number of goods that are not efficiently provided in the private market. Here, we outline two such situations: investments in child care and education, and insurance against risks created by business cycles, poor health, and old age. Because private markets work poorly for these goods, and the costs of market failure are large, standard economic reasoning implies a significant role for government provision. The reduction in economic insecurity that this would bring could help to improve political stability as well, by reducing the stakes that people perceive in discussions of trade, immigration, technological change, and countercyclical policy (Inglehart and Norris, 2016). Many observers (e.g, Hacker, 2018) have pointed to economic anxiety as a potential contributor to populist reactions in the U.S. and many European countries; a public sector that acts to reduce the risk that households face could ameliorate this, generating political spillovers and improving the state of the country more broadly.
Topic:
Economics, Education, Health, Health Care Policy, Children, Economic Policy, and Economic Theory
Political Geography:
United States and Europe

14. Election Law and Political Economy

Author:
Ethan Kaplan
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
In sum, political institutions in the United States favor higher income individuals over lower income individuals and ethnic majorities over ethnic minorities. This is accomplished through a myriad of policies which impact who votes, allow for differential influence and access by the wealthy, structure voting districts to dilute the impacts of under-represented voters, and allow for oversized influence of pro-business owner ideas through media and membership organizations.
Topic:
Economics, Law, Elections, Democracy, Economic Policy, and Voting
Political Geography:
United States

15. Labor in the Age of Automation and Artificial Intelligence

Author:
Anton Korinek
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
As technology advanced in recent decades, it increasingly left workers behind and led to sharp increases in inequality. The current wave of progress in artificial intelligence is likely to accelerate these trends. This note lays out three complementary approaches to countering these developments. Firstly, since technological progress generates net gains for society as a whole, the winners could in principle compensate the losers and still be better off. Secondly, progress should be steered to minimize the losses of workers. Thirdly, there is an important role for government intervention in information technology to thwart the rise of monopolies that extract rents from society. The note concludes with some speculations on the impact of artificial intelligence increasingly rivaling human labor.
Topic:
Economics, Science and Technology, Labor Issues, Economic Policy, Macroeconomics, and Artificial Intelligence
Political Geography:
United States

16. How to think about finance?

Author:
Atif Mian
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
There has been a major structural shift in financial markets since the 1980s. The world is awash in credit, and credit is cheaper than ever before. I discuss how increasing financial surpluses within parts of the economy have resulted in an expansion in the supply of credit, which has largely financed the demand-side of the real economy. This increasing reliance on “credit as demand” raises some serious policy questions going forward. I discuss the importance of equitable and inclusive growth, fair taxation system and risk-sharing in creating a financial system that promotes prosperity and stability.
Topic:
Economics, International Trade and Finance, Finance, Economic Policy, and Economic Theory
Political Geography:
United States

17. Worker Collective Action in the 21st Century Labor Market

Author:
Suresh Naidu
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
Private sector union density in the United States has fallen below 7%, but new historical evidence shows high union density played an important role in compressing the US income distribution at mid-century and lowering intergenerational income persistence. Other recent evidence on pervasive labor market power suggests that unions may be able raise wages without severe dis-employment effects, and may alleviate inefficient contracting problems. Despite substantial survey evidence indicating latent demand for unions, employers have successfully fought unionization efforts in rising service sectors, and a combination of legal restrictions and economic transformations have impaired the ability of US unions to solve collective action problems at the appropriate scale – an issue that economics may be able to help ameliorate.
Topic:
Economics, Labor Issues, Income Inequality, and Labor Policies
Political Geography:
United States

18. Confronting Rising Market Power

Author:
Jonathan B. Baker and Fiona Scott Morton
Publication Date:
05-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
Rising market power in the U.S. economy is not just a microeconomic problem, as the textbook analysis shows, creating allocative efficiency losses and transferring wealth away from victimized participants in the affected markets. Rising market power also undermines inclusive prosperity by contributing to inequality and slowed economic growth. Modern economic research points to multiple ways to attack market power and enhance competition, including ways of strengthening antitrust enforcement, improving antitrust rules and institutions, and deploying regulation to enhance competition.
Topic:
Economics, Economic Policy, Economic Theory, Macroeconomics, and Microeconomics
Political Geography:
United States

19. Antitrust and Labor Market Power

Author:
José Azar, Ioana Marinescu, and Marshall Steinbaum
Publication Date:
05-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
Starting with the Chicago School’s influence in the late 1970s and 1980s, antitrust enforcement has been weakened under the assumption that market power is justified by economic efficiency. While consumers are the main focus of antitrust enforcement, the weakening of antitrust enforcement has likely also adversely impacted workers, thus contributing to increasing inequality.
Topic:
Economics, Labor Issues, Economic Policy, Economic Theory, and Antitrust Law
Political Geography:
United States

20. It’s Good Jobs, Stupid

Author:
Daron Acemoglu
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
Progressive policy proposals that would have appeared radical just a few years ago, including high marginal tax rates, wealth taxes, universal basic income, single-payer health insurance, and free college for all, are now on the agenda. The recognition that we can do more to create shared prosperity — that is, economic growth benefiting society at large, not just corporations and the very well-educated — is a welcome development. But are we targeting the right policies? We are at a critical juncture both economically and politically. We do not have much time left to reverse the trend towards greater inequality and worsening economic prospects for less educated Americans before its social consequences become more deeply ingrained. And the 2020 presidential election may provide a unique opportunity to adopt fundamentally different economic policies. Failing to identify the right policy priorities would not only squander this critical juncture; it could also deepen the rift between the different wings of US politics.
Topic:
Economics, Labor Issues, Employment, Labor Policies, Economic Policy, and Economic Theory
Political Geography:
United States

21. Thoughts on Medicare for All

Author:
Ilyana Kuziemko
Publication Date:
07-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
My read of the evidence (and my own social welfare weights, which place great weight on the un- and under-insured as well as middle-class workers who are implicitly taxed via expensive health plans) lead me to conclude that Medicare for All would increase welfare in the US. However, I also want to highlight what I consider the biggest risks of such a policy.
Topic:
Economics, Health, Health Care Policy, and Economic Policy
Political Geography:
United States

22. The Economics of Free College

Author:
David Deming
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
Despite growing public concern about the cost of college, higher education is still the best investment a young person can make. The American public understands that college is both increasingly necessary and increasingly unaffordable. This dynamic explains the growing public conversation around the idea of “free college”.
Topic:
Economics, Education, Economic Policy, and Higher Education
Political Geography:
United States

23. Carbon Pricing for Inclusive Prosperity: The Role of Public Support

Author:
David Klenert and Linus Mattauch
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
It is common knowledge among economists that the most efficient instrument to mitigate climate change is a price on carbon. However, current carbon prices around the world are too low to reach global climate targets. This essay assesses the difficulties in designing successful carbon pricing reforms. It discusses how to overcome these difficulties by combining traditional public economics lessons with findings from behavioral and political science. We stress insights from public finance about the “second-best” nature of pricing carbon reforms. Further, we highlight how framing a carbon tax reform around tangible benefits can enhance political support. Finally, we explain how certain countries were successful at introducing high carbon prices and what can be learned from these cases for making progress with climate change mitigation.
Topic:
Climate Change, Economics, Science and Technology, Natural Resources, Global Warming, Green Technology, and Economic Policy
Political Geography:
United States

24. Should We Worry About Corporate Leverage?

Author:
Şebnem Kalemli-Özcan
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
There has been a large increase in corporate leverage in many countries since the early 2000s. Figure 1 plots corporate debt to GDP since 2002 for different groups of countries. With the exception of the U.S., both advanced economies and emerging markets have corporate debt exceeding GDP since 2005. U.S. corporate debt is also on an increasing trend. The fastest growth in corporate debt has been observed in emerging markets. A closer look will reveal that China and other fast growing emerging countries in Asia drive most of the increase in corporate debt for the emerging markets.
Topic:
Debt, Economics, Markets, Regulation, Multinational Corporations, and Economic Policy
Political Geography:
United States and Global Focus

25. Counting the Cost of Financial Warfare: Recalibrating Sanctions Policy to Preserve U.S. Financial Hegemony

Author:
Enea Gjoza
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
Defense Priorities
Abstract:
The American economy, dollar, and banking system create unparalleled power for the U.S. in the global financial system. This power provides disproportionate influence over the world’s key economic and financial institutions, regulatory authority over major foreign companies and banks, and allows borrowing on favorable terms and in dollars, enabling long-term deficit spending.
Topic:
Economics, International Trade and Finance, Hegemony, Sanctions, Finance, and Global Political Economy
Political Geography:
United States

26. Using wage boards to raise pay

Author:
Arindrajit Dube
Publication Date:
12-2018
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
During the past 40 years, the United States has experienced a sharp and sustained rise in wage and income inequality. The high level of inequality in the United States reflects both a disconnect between (1) average wages and productivity, and (2) top and bottom wages.
Topic:
Economics, Labor Issues, Income Inequality, Labor Policies, Wage Subsidies, Economic Policy, and Economic Theory
Political Geography:
United States

27. Recent Department of Labor Rules Open the Door for States to Move Forward with Retirement Initiatives

Author:
David S. Mitchell and Jeremy Smith
Publication Date:
01-2016
Content Type:
Policy Brief
Institution:
Aspen Institute
Abstract:
On November 18, 2015, the Obama Administration's Department of Labor (DOL) published two important legal opinions that propose to give states new options for expanding retirement coverage for private-sector workers. These opinions open the door for states to move forward along one of two distinct paths: a payroll deduction plan that avoids ERISA, or a more traditional model that would fall under ERISA. This issue brief summarizes these rules and highlights the tradeoffs state policymakers will face when deciding which of these new avenues to pursue. The brief will be updated once the proposals are finalized.
Topic:
Economics, Human Welfare, Labor Issues, Governance, and Social Movement
Political Geography:
United States

28. EU Pressure Insufficient to Gain U.S. Visa Waiver for Poles

Author:
Marek Wasinski
Publication Date:
04-2016
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
In a communication of 12 April, the European Commission assessed the potential political and economic consequences of suspending visa exemption for U.S. citizens. Lacking pressure from individual EU Member States, the Commission discouraged such a move and gave the EU Council and European Parliament three months to take an official position. It seems almost certain that the measure of applying pressure on a non-EU country will not be used to help Poland and four other Member States obtain visa-free travel to the United States or other countries with a similar restriction. However, if current trends continue, Poland should join the U.S. Visa Waiver Programme in five years.
Topic:
Economics, Politics, European Union, and Citizenship
Political Geography:
United States and Europe

29. The Future of Work for Low-Income Workers and Families

Author:
Vickie Choltz and Maureen Conway
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Aspen Institute
Abstract:
The Future of Work for Low-Income Workers and Families is a policy brief aimed at state policy advocates and policymakers seeking to help low-income workers and their families secure healthy economic livelihoods as the nature of work evolves in the United States. Published by the Working Poor Families Project in December 2015, the brief was written by Vickie Choitz, associate director of the Economic Opportunities Program, with Maureen Conway, vice president at the Aspen Institute and executive director of the Economic Opportunities Program. This brief reviews the major forces shaping the future of work, including changes in labor and employment practices, business models, access to income and benefits, worker rights and voice, education and training, and technology. Across these areas, we are seeing disruptive change in our economy and society resulting in increasing risk and challenges for low-income workers, in particular.
Topic:
Security, Economics, Human Welfare, Social Stratification, and Employment
Political Geography:
United States

30. Reimagining Financial Security: Managing Risk and Building Wealth in an Era of Inequality

Author:
Annie Kim
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Aspen Institute
Abstract:
The 2015 Financial Security Summit, titled Reimagining Financial Security: Managing Risk and Building Wealth in an Era of Inequality, took place July 15–17 in Aspen, Colorado. The Summit agenda built on FSP's core themes of expanding retirement security and children’s savings accounts for low- and moderate-income families, and began to explore a broader vision of how to improve short- and long-term dimensions of financial wellbeing in a rapidly changing economy. Participant contributions helped shape new areas of focus for FSP going forward. This report incorporates those insights and provides an outline for future policy dialogue and directions.
Topic:
Security, Economics, Human Welfare, Social Stratification, and Employment
Political Geography:
United States

31. Economic Statecraft: American Economic Power and the New Face of Financial Warfare

Author:
Elizabeth Rosenberg and Zachary K. Goldman
Publication Date:
06-2015
Content Type:
Policy Brief
Institution:
Center for a New American Security (CNAS)
Abstract:
The United States has long relied on its economic power to protect and advance its interests abroad. In an increasingly integrated international financial system, the U.S. economy and capital markets remain the largest in the world by almost every measure. This status affords the United States an important global leadership position and the ability to shape foreign policy outcomes with economic tools. The structure of the international trade and financial system, in which many significant banking and energy transactions as well as currency reserves are denominated in U.S. dollars, reinforces the central role of the United States.
Topic:
Foreign Policy, Economics, Globalization, International Trade and Finance, Markets, and Power Politics
Political Geography:
United States

32. Quantity Theory of Money Redux? Will Inflation Be the Legacy of Quantitative Easing?

Author:
William R. Cline
Publication Date:
05-2015
Content Type:
Policy Brief
Abstract:
Since the onset of the Federal Reserve's unconventional program of large scale asset purchases, known as quantitative easing (QE), some economists and financial practitioners have feared that the consequent buildup of the Fed's balance sheet could lead to a large expansion of the money supply, and that such an increase could cause a sharp rise in inflation. So far fears about induced inflation have not been validated. This Policy Brief examines the basis for the original concerns about inflation in terms of the classic quantity theory of money, which holds that inflation occurs when the money supply expands more rapidly than warranted by increases in real production. The Brief first reviews the US experience and shows that whereas rapid money growth might have been a plausible explanation of inflation in the 1960s through the early 1980s, subsequent data have not supported such an explanation. It then shows that the quantity theory of money has not really been put to the test after the Great Recession, because a sharp increase in banks' excess reserves and corresponding sharp decline in the "money multiplier" has meant that the rise in the Federal Reserve's balance sheet has not translated into increased money available to the public in the usual fashion. The most likely aftermath of quantitative easing remains one of benign price behavior. However, if nascent inflationary conditions materialize, the Federal Reserve will need to manage adroitly the large amounts of banks' excess reserves that have accumulated as a consequence of QE in order to limit inflationary pressures.
Topic:
Economics, International Political Economy, International Trade and Finance, and Federal Reserve
Political Geography:
United States

33. Reshoring by US Firms: What Do the Data Say?

Author:
Lindsay Oldenski
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Reshoring—when firms shift manufacturing production back to the United States—has been getting a great deal of publicity lately. Oldenski examines the most recent data on the global operations of US firms and concludes that although some companies have reversed their previous offshoring decisions, there is no evidence of a widespread reshoring trend. But this should not be considered a defeat for US competitiveness. US multinationals continue to move operations offshore, but they also continue to grow stronger, producing more in their US operations and adding more to total US exports. The structure of US manufacturing has changed, but the ability to adapt to the changing nature of global business has been and will continue to be crucial to the continued growth of US manufacturing.
Topic:
Economics and International Trade and Finance
Political Geography:
United States

34. Chinese Investment and CFIUS: Time for an Updated (and Revised) Perspective

Author:
Theodore Moran
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
For more than a decade, China has complained about what it maintains has been a pattern of erratic and politicized treatment of Chinese investors when they attempt to acquire US companies. The Chinese want the Committee on Foreign Investment in the United States (CFIUS) to be more open and transparent in its rulings and to not discriminate against Chinese firms. The United States is not likely to accede to these demands in any formal or legal manner. Moran proposes practical steps to address the concerns of Chinese investors without diluting CFIUS procedures. He provides a national security threat assessment filter, which allows Chinese investors—like investors of all nationalities—to determine when their proposed acquisitions might pose a genuine threat and when any such threat is simply not plausible. He also suggests that first-time Chinese investors seek expert counsel to overcome the secrecy surrounding CFIUS objections to figure out how to proceed with problematic acquisitions.
Topic:
Economics, Markets, and Foreign Direct Investment
Political Geography:
United States

35. An Assessment of the Korea-China Free Trade Agreement

Author:
Jeffrey Schott, Eujiin Jung, and Cathleen Cimino-Isaacs
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Of all the free trade agreements (FTAs) concluded by Korea with its major trading partners since the turn of the century, the Korea-China FTA may be the largest in trade terms. It is, however, far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment policies. Korea and China agreed to liberalize a large share of bilateral trade within 20 years, but both sides incorporated extensive exceptions to basic tariff reforms and deferred important market access negotiations on services and investment for several years. Political interests trumped economic objectives, and the negotiated outcome cut too many corners to achieve such a comprehensive result. The limited outcome in the Korea-China talks has two clear implications for economic integration among the northeast Asian countries. First, prospects for the ongoing China-Japan-Korea talks will be limited and unlikely to exceed the Korea-China outcome. Second, Korea and Japan need to strengthen their bilateral leg of the northeast Asian trilateral and the best way is by negotiating a deal in the context of the Trans-Pacific Partnership.
Topic:
Economics, International Trade and Finance, Politics, and Bilateral Relations
Political Geography:
United States, China, Asia, and Korea

36. Estimates of Fundamental Equilibrium Exchange Rates, November 2015

Author:
William R. Cline
Publication Date:
11-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The latest semiannual fundamental equilibrium exchange rate (FEER) estimates find that the US dollar is now overvalued by about 10 percent, comparable to levels in 2008 through early 2010 and again in 2011. Unlike then, the current strong dollar does not reflect a weak renminbi kept undervalued by major exchange rate intervention by China. Instead, China's current account surplus has fallen sharply relative to GDP, and its recent intervention has been to prevent excessive depreciation rather than to prevent appreciation. Additionally, declines in the real effective exchange rates (REERs) for major emerging-market economies and resource-based advanced economies, driven by falling commodity prices in recent months, have strengthened the dollar. Recent increases in the REERs for the euro area and Japan have removed their modest undervaluation identified in the last FEERs estimates in May, and the Chinese renminbi remains consistent with its FEER. The dollar's rise by nearly 15 percent in real effective terms over the past two years could impose a drag of nearly one-half percent annually on US demand growth over the next five years. As the Federal Reserve moves to normalize US monetary policy, it may need to consider a gentler rise in interest rates than it might otherwise have pursued, both to temper possible further strengthening of the dollar in response to higher interest rates and to help offset the demand compression from falling net export
Topic:
Economics, International Trade and Finance, Monetary Policy, and GDP
Political Geography:
United States and China

37. Creating Korea's Future Economy: Innovation, Growth, and Korea-US Economic Relations

Author:
Sean P. Connell
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
The Korean government's "creative economy" agenda reflects growing consensus that Korea's future growth and prosperity depends on its ability to become a global leader in developing and commercializing innovative new products, services, and business models. To succeed, the Korean government must address regulatory, structural, educational, and cultural obstacles that have constrained Korea's ability to fully utilize its innovative capacities. This new emphasis on innovation brings Korea into closer alignment with the United States, which has long focused on innovation in its growth strategies. Moreover, it comes during the early stages of implementation of the US-Korea Free Trade Agreement (KORUS), which intersects with important areas of Korea's innovation framework policies. Policymakers, businesses, and researchers in both countries should examine potential new opportunities to increase cooperation around initiatives aimed at fostering innovation and growth, both within the bilateral context and at a global level.
Topic:
Economics, Industrial Policy, International Trade and Finance, Treaties and Agreements, and Bilateral Relations
Political Geography:
United States

38. Rethinking the National Export Initiative

Author:
Caroline Freund
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
As the United States struggled with unemployment and other effects of the Great Recession in January 2010, President Barack Obama set the goal of doubling exports within five years and creating 2 million new export-related jobs. Four years later, however, exports are less than halfway toward that goal and the rate of export growth is slowing. More worrisome, the administration's strategy failed to boost average export growth from historical levels, despite the robust recovery in international trade after the collapse of 2009. The National Export Initiative (NEI) has come up short.
Topic:
Economics, Industrial Policy, International Trade and Finance, Markets, and Maritime Commerce
Political Geography:
United States

39. Monetary Policy with Abundant Liquidity: A New Operating Framework for the Federal Reserve

Author:
Joseph E. Gagnon and Brian Sack
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The dramatic increase in the Federal Reserve's balance sheet since 2009 has attracted the attention of economists, pundits, and ordinary citizens. The amount of assets held by the Fed recently crossed $4 trillion and will likely continue to rise to a peak of about $4.5 trillion. This run-up in asset holdings has resulted from the Fed's large-scale asset purchase programs, which were intended to support economic growth. However, a side-effect of these asset purchases is the creation of unprecedented amounts of liquidity in the financial system.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
United States

40. Income Inequality Developments in the Great Recession

Author:
Tomas Hellebrandt
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The Great Recession, which cost tens of millions of jobs, a collapse of asset values around the world, and threatened the global financial system, has generated renewed concern over the long-standing issue of the fairness of the distribution of wealth and income in many societies. Economic inequality has increased in the United States and many other advanced economies over the past 20 to 30 years. This trend generated less worry in the boom years, when unemployment rates were low and cheap credit enabled consumers to borrow and maintain higher standards of living, masking the impact of growing income disparity on consumption patterns and perceptions of well-being.
Topic:
Debt, Economics, International Trade and Finance, Poverty, Social Stratification, and Financial Crisis
Political Geography:
United States, United Kingdom, Germany, Spain, Italy, and Ireland

41. Addressing Currency Manipulation Through Trade Agreements

Author:
C. Fred Bergsten
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
A bipartisan majority in both Houses of Congress is insisting that the United States include a provision in future trade agreements that would bar currency manipulation. A letter from 60 senators to Secretary of the Treasury Jacob Lew and United States Trade Representative (USTR) Michael From an on September 23, 2013, called for "strong and enforceable foreign currency manipulation disciplines" in the Trans-Pacific Partnership (TPP) while 230 members of the House of Representatives told President Barack Obama on June 6, 2013, that "it is imperative that (the TPP) address currency manipulation.to create a level playing field for American businesses and prevent more US jobs from being shipped overseas." The trade promotion authority (TPA) legislation proposed by congressional trade leaders on January 9, 2014, establishes the avoidance of currency manipulation as a "principal US negotiating objective" in its future trade agreements.
Topic:
Economics, Emerging Markets, International Trade and Finance, and Monetary Policy
Political Geography:
United States

42. Making Labor Market Reforms Work for Everyone: Lessons from Germany

Author:
Jacob Funk Kirkegaard
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Mark Twain once wrote an essay about the difficulties of learning what he called "The Awful German Language." Similar barriers to comprehension seem to plague those trying to explain recent German economic performance. By most measures, Germany has the best functioning labor market among large economies in the West, with levels of employment reaching those in the United States at the end of the turbo-charged 1990s. A debate has stirred, however, about whether this success has come with a price—specifically, whether Germany's domestic structural reforms have lowered living standards for Germany's low income workers and worsened income inequality and whether Germany is fortuitously and perhaps selfishly riding a wave of strong foreign demand for German exports.
Topic:
Economics, Industrial Policy, International Trade and Finance, Markets, and Labor Issues
Political Geography:
United States, Europe, and Germany

43. ASEAN Centrality and the ASEAN-US Economic Relationship

Author:
Peter A. Petri and Michael G. Plummer
Publication Date:
03-2014
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
ASEAN has become a focal point of the rapidly changing economic architecture of the Asia-Pacific region. ASEAN members are increasingly stable and politically confident, and constitute an emerging economic powerhouse. The region is dynamic, with 600 million citizens and a gross domestic product (GDP) that exceeds $2 trillion and is expected to grow 6 percent annually for the next two decades. (The Appendix at the end of this paper reports detailed output and trade projections to 2025.) Through deeper internal integration via the ASEAN Economic Community (AEC) and external initiatives such as the Regional Comprehensive Economic Partnership (RCEP), ASEAN is becoming a driving force in regional cooperation and a much-courted economic partner. The AEC and the RCEP projects are globally significant: the AEC could generate powerful demonstration effects for other developing regions, and the RCEP could become an important building bloc of the multilateral trading system.
Topic:
Security, Economics, International Trade and Finance, and Markets
Political Geography:
United States, East Asia, Asia, and Asia-Pacific

44. Global Trends of Multi-Factor Productivity

Author:
Jeong Yeon Lee
Publication Date:
03-2014
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
Multi-factor productivity (MFP) compares the growth of gross domestic product with the growth of combined capital and labor inputs. The growth rate of MFP assumes theoretical significance because it represents the slope of the steady-state growth path, and hence is a major determinant of the long-term growth trend. This paper offers the balanced panel of the estimated growth rates of MFP for 24 OECD countries over 1986-2011. Based on the estimates of MFP growth, a number of notable trends in productivity growth are identified for the entire OECD area as well as three major economies – the United States, the Eurozone and Japan – within the OECD.
Topic:
Economics, Industrial Policy, International Trade and Finance, and Labor Issues
Political Geography:
United States, Japan, and Europe

45. The China-United States BIT negotiations: A Chinese perspective

Author:
Sheng Zhang
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The China-US bilateral investment treaty (BIT) negotiations have attracted attention due to the relative size and weight of both economies. Despite broad consensus about the importance of such a treaty, there is considerable debate about its shape and content. The debate is reflected in two recent Columbia FDI Perspectives. Donnelly argued that a China-US BIT should be modeled on the US Model BIT without "splitting the difference between Chinese and US positions", and that the possibility of meaningful BIT negotiations are "really up to China at this point".
Topic:
Economics, Globalization, International Trade and Finance, Bilateral Relations, Foreign Direct Investment, and Governance
Political Geography:
United States, China, Europe, and Colombia

46. IMF Reform Is Waiting on the United States

Author:
Edwin M. Truman
Publication Date:
03-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The vital role played by the International Monetary Fund (IMF) in stabilizing the world economy and financial system is in serious jeopardy. The failure in mid-January by the US Congress to approve IMF reform legislation that had been pending for more than three years did not simply bring to a screeching halt a decade of slow progress reforming the governance of the Fund to make it more representative, legitimate, and therefore effective. Congress's balking on this issue also did substantial, actual damage to the US reputation around the world, as the leaders of many countries called into question Washington's ability to deliver on promises made in international economic agreements.
Topic:
Economics, International Trade and Finance, International Monetary Fund, and Reform
Political Geography:
United States

47. Curtailing the Subsidy War Within the United States

Author:
Edward Alden and Rebecca Strauss
Publication Date:
05-2014
Content Type:
Policy Brief
Institution:
Council on Foreign Relations
Abstract:
Each year, U.S. state and local governments spend tens of billions of dollars to lure or retain business investment. The subsidies waste scarce taxpayer dollars that could better be used to strengthen public services such as education and infrastructure, or to lower overall tax burdens to create a more favorable investment climate. No state wants to dole out such subsidies, but most fear losing jobs to competing states if they refuse. States should take steps to curb subsidies, beginning with greater disclosure and cost-benefit analyses, and building up to a multistate agreement that creates strong disincentives for continuing subsidies. Existing international arrangements provide models and tools for achieving this.
Topic:
Economics, International Trade and Finance, Governance, and Reform
Political Geography:
United States and North America

48. Maximizing the Impact of Aid to Pakistan: Leverage Reform and Local Capacity

Author:
Richard Albright
Publication Date:
07-2014
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
The effectiveness of U.S. civilian assistance to Pakistan depends on sustained funding commitments from the United States and sustained commitment to economic and institutional reform from Pakistan. Weak public institutions and poor governance have greatly impeded Pakistan's development. U.S. assistance should focus on strengthening institutions systemically. Direct assistance to the Pakistani government—through financing that supports specific reform programs and policy initiatives and cash-on-delivery mechanisms that offer assistance after agreed performance criteria are met—could incentivize Pakistani public institutions to improve service delivery. Pakistan's devolution of authority to the provinces offers an opportunity for well-targeted and cost-effective initiatives to incentivize improvements in provincial public service delivery in such areas as basic education, health and policing.
Topic:
International Relations, Economics, Foreign Aid, and Reform
Political Geography:
Pakistan and United States

49. South Korea and China: A Strategic Partnership in the Making

Author:
Alain Guidetti
Publication Date:
04-2014
Content Type:
Policy Brief
Institution:
The Geneva Centre for Security Policy
Abstract:
The visit of Chinese President Xi Jinping to Seoul in July 2014 shows how the relations between China and South Korea have taken center stage in North- East Asia. Both countries are building up a growing strategic partnership, as a result of emerging cross-interests in the region and robust trade relations. This dynamic underlines the dilemma Seoul faces in maintaining a strong military alliance with the United States, while turning increasingly toward China as its core partner for both its economic development and its North Korea policy.
Topic:
International Relations and Economics
Political Geography:
United States, China, Asia, South Korea, North Korea, and Northeast Asia

50. TSG IntelBrief: The U.S.-India Relationship Reinvigorated

Publication Date:
10-2014
Content Type:
Policy Brief
Institution:
The Soufan Group
Abstract:
Indian Prime Minister Narendra Modi's September visit to the United States allowed for the "soft reset" of a strategic partnership that has been in search of greater focus in recent years The smiles and handshakes served to ease the anxieties that had been building on both sides and had contributed to increased squabbling in the bilateral relationship Mutual frustrations are likely to continue in areas such as intellectual property rights and multilateral trade negotiations, where there has been no reconciliation in the two countries' largely incompatible points of view The U.S. and India share clearly convergent interests in both combating Islamist militancy and in balancing against a rising China Although the partnership's full potential is far from realized, these two geostrategic issues are sufficient to keep the trajectory positive and to sustain widely-held hopes that ties between the world's two largest democracies will continue to deepen.
Topic:
Foreign Policy, Diplomacy, Economics, International Trade and Finance, Markets, and Bilateral Relations
Political Geography:
United States, South Asia, and India