China has developed increasingly close economic relations with Africa in its quest for oil and minerals through investment and aid. The World Ban k recently called upon China to transplant labor-intensive factories onto the continent. A question arises as to whether such an industrial relocation will be done in such a fashion to jump-start local economic development—as previously seen across East Asia and as described in the flying-geese (FG) paradigm of FD.
Many of the risks covered by bilateral investment treaties (BITs) are also covered by political risk insurance (PRI). Although there are important differences between PRI and BITs, both in terms of coverage and underlying purpose, the considerable overlap between the two instruments suggest that PRI providers should take BITs into account when assessing the risk of investment projects. But while the relationship between BITs and PRI has often been alleged to be considerable, in practice there is practically no publicly available evidence to sustain this assumption. This Perspective reviews evidence from a recent survey of officials in private and public (or mixed private/public) PRI providers.
Topic:
Economics, International Political Economy, International Trade and Finance, Treaties and Agreements, and Bilateral Relations
Despite broad skepticism about the benefits of globalization, the majority of U.S. states have offered lucrative tax incentives to attract investment. The size of these incentives is generally considered too large to be welfare enhancing, and many economists are skeptical of the effectiveness of these policies. Yet despite the mounting evidence to the contrary, the incentives offered by U.S. states (and foreign countries) continue and have actually increased in their generosity over time.
Topic:
Economics, Political Economy, Politics, and Foreign Direct Investment
In March 2009, Columbia FDI Perspectives carried an early analysis of investment policies in response to the financial crisis that began in early 2008. At that time, the authors, Anne van Aaken and Jürgen Kuntz, found “clear evidence of widespread discrimination directed at foreign actors” in the emergency response to the crisis.
Topic:
Economics, Global Recession, Monetary Policy, Foreign Direct Investment, and Financial Crisis
There was considerable public scrutiny of the Obama Administration's performance in its inaugural year, but comparatively little focus on one of the Administration's key processes governing the flow of investment into the United States — namely, the Committee on Foreign Investment in the United States (CFIUS). Yet, this is a frequent question we receive from foreign investors -- has the change in the administration affected CFIUS?
Topic:
Economics, International Trade and Finance, Monetary Policy, Foreign Direct Investment, and Financial Crisis
Hitherto, political risk has worried developed country multinational enterprises (MNEs) investing in developing country markets. But as more emerging market firms invest overseas, they too must grapple with this subject. World Investment and Political Risk 2009 looks at this issue for the first time and finds that Brazilian, Russian, Indian, and Chinese (BRIC) firms appear to worry more about political risk than global counterparts. Though these results are based on as mall sample of 90 of the largest BRIC investors, they are thought-provoking nonetheless.
Topic:
International Political Economy, International Trade and Finance, and Foreign Direct Investment
Eight years after independence, Timor-Leste is still with- out a legal basis for determining ownership of land. In its absence, the challenges of enforcing property rights have grown more complex and increased the potential for conflict. The politically charged task of sifting through over- lapping claims inherited from the country's two colonial administrations has been complicated by widespread illegal occupation of property after the displacement of over half the population that followed the 1999 referendum. The legal and social uncertainties this created magnified the effects of the country's 2006 crisis, causing further mass displacement in the capital and beyond. Resolution of these uncertainties through new laws, regulations and policies is necessary to reduce conflict, diminish the risk of further instability and to provide a clear way to resolve past and future disputes.
Myanmar's 2010 elections present challenges and opportunities for China's relationship with its south-western neighbour. Despite widespread international opinion that elections will be neither free nor fair, China is likely to accept any poll result that does not involve major instability. Beijing was caught off-guard by the Myanmar military's offensive into Kokang in August 2009 that sent more than 30,000 refugees into Yunnan province. Since then it has used pressure and mediation to push Naypyidaw and the ethnic groups that live close to China's border to the negotiating table. Beyond border stability, Beijing feels its interests in Myanmar are being challenged by a changing bilateral balance of power due to the Obama administration's engagement policy and China's increasing energy stakes in the country. Beijing is seeking to consolidate political and economic ties by stepping up visits from top leaders, investment, loans and trade. But China faces limits to its influence, including growing popular opposition to the exploitation of Myanmar's natural resources by Chinese firms, and divergent interests and policy implementation between Beijing and local governments in Yunnan.
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
Aside from the threat of political violence, most Central Asian states are faced with internal, as well as external threats from terrorism and organized crime. All states must work and cooperate amongst themselves and with their neighbors to come up with a sustainable response to these threats and ensure the stability of the region.
Topic:
Conflict Resolution, Political Violence, Crime, Armed Struggle, and Counterinsurgency