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  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Transparency International
  • Abstract: As available resources for official development assistance have come under strain in the past ten years, blended finance has been hailed as a means to finance development in low- and middle-income countries. Governments and international organisations are increasingly advocating the use of blended finance to fill the “financing gap” between current commitments and target levels of investment needed to achieve the Sustainable Development Goals (SDGs). Little consideration has been given to potential corruption risks in blended finance mechanisms. As a result, integrity issues in blended finance projects are understudied and poorly appreciated by many development practitioners, investors and regulators. As blended finance becomes an increasingly common instrument in development assistance, a richer understanding of the cause and impact of corrupt practices in this form of development finance is essential.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Transparency International
  • Abstract: One of the oldest weapons in Transparency International’s anti-corruption arsenal is the Integrity Pact, designed specifically to tackle corruption in public procurement – one of the biggest areas of corruption risk for governments.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Publication Date: 10-2018
  • Content Type: Working Paper
  • Institution: Transparency International
  • Abstract: Social audit is a powerful social accountability tool. It has led to the conviction of public officials for violating the right to information law in Guatemala, a 50 per cent reduction in the costs of public construction works in Peru, and cancelling an illegal education fee in Ghana. Social audit scrutinises public officials’ decisions and/or actions, looking for administrative or financial irregularities. It seeks to uncover discrepancies by comparing public documents, processes or services with how they should be. It can take many names and forms, ranging from social audits in Guatemala and anti-corruption brigades in Peru, to social auditing clubs in Ghana. This report extracts lessons from the social audits implemented by Acción Ciudadana in Guatemala, Proética in Peru and Ghana Integrity Initiative in Ghana. The report examines the social audit outcome reports and other records shared by the three Transparency International chapters, and includes an extensive review of the wider literature on social audits. Based on these experiences, the report outlines 20 key steps to implement an effective social audit.
  • Topic: International Cooperation, International Affairs
  • Political Geography: Global Focus
  • Author: Marina Nistotskaya, Michelle D'Arcy
  • Publication Date: 10-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: The institutional literature on development has emphasized the need to check abuse of power, but overlooked whether the state has power in the first place. Bridging the state capacity and collective action literatures, we argue that since public goods critical for development, such as public health provision, constitute collective action problems (CAPs), and solving CAPs in groups the size of countries requires state high infrastructural power that makes individual behaviour observable/legible, so that it can be monitored and compliance enforced. It is only when democracy is institutionalized within such a state that it can have a positive effect on public goods provision. We test this argument using a novel measure of accumulated infrastructural power – the age, extent and quality of cadastral records – for over 1,000 years for 155 countries. Our analysis shows that this variable has an independent positive effect on infant and child mortality, and it also conditions the effect of democracy. This research has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No 339571) and the Swedish Research Council (grant agreement D0112101). The authors thank Robert Ellisa for excellent research assistance.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Anna Khakhunova, Marina Nistotskaya
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: New Public Management (NPM) reforms have been adopted worldwide since the mid-1970s to improve government effectiveness and efficiency. The basic premise of NPM reforms is that market orientation and management focus in the public sector will enhance effectiveness and efficiency of service delivery (Christensen and Lægreid 2010). Although NPM reforms have existed for a quarter century, we still have limited understanding of whether NPM reforms fulfill their expectations. Most importantly, very few empirical studies have been conducted that actually assess the impact of NPM reforms on performance (Alonso, Clifton, and Díaz-Fuentes 2015, Dahlström, Nistotskaya, and Tyrberg 2016, Hammerschmid and Van de Walle 2011). This study helps fill this gap by examining the effect of different NPM-type reforms on municipal performance. In particular, we assess the impact of NPM reforms on three dimensions of municipal performance – gender equity, efficiency and effectiveness – by using a data set of 810 city-level Japanese municipalities. Findings show that municipalities’ overall effort to create NPM reforms is not associated with gender equity and effectiveness in revenue expansion. However, findings suggest that municipalities with a higher commitment to various NPM- type reforms are likely to operate with lower administrative overhead costs. Results also suggest that municipalities’ efforts supporting individual reform, including outsourcing and municipal assets and debt management reform, are associated with higher efficiency in overhead costs and increased revenues from selling municipal assets. This study tests the impacts of NPM-type reforms on municipal performance in an understudied Asian developed setting.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Sofia B. Vera
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: The literature studying citizen responses to exposed political corruption is rapidly growing. While some studies explore how information credibility and group identities can reduce the electoral impact of the exposure of corruption, this article addresses different mechanisms for weak electoral accountability for corruption: public works provision and corruption prevalence. It uses a vignette experiment embedded in a national survey in Peru to isolate the causal effect of political corruption on electoral support. The results suggest that even types of corruption with side benefits would be harshly punished when attributed to incompetent politicians. They also indicate that while voters punish corruption more leniently when a candidate is competent, they respond negatively to corruption regardless of the prevalence of corruption, which casts doubt on the idea that voters in highly corrupt environments are tolerant of corruption
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Lena Wängnerud
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: There are a growing number of studies with the ambition to present causal reasoning linking the presence of women in political organizations to reductions in levels of corruption. The theoretical mechanisms proposed are however seldom directly tested, instead scholars tend to use designs where a large number of control variables are introduced in order to “rule out” rivalry hypotheses. These designs leave us with a number of loose ends that needs to be more carefully dealt with. The aim of this paper is to introduce a new and comparatively simple way of measuring degrees of femininity and masculinity and discuss whether this approach could add to the understanding of gender effects found in research on corruption. The analysis show that femininity is linked to pro-social values and the suggestion is for future research to focus more on indirect effects on corruption from the inclusion of women in political organizations. Exposure-based theories highlight mechanisms such as changed group norms that may pave the ground for an increased focus on the public good. The data used draws on a large-scale survey among Swedish citizens in 2013.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Rasmus Broms, Carl Dahlström, Marina Nistotskaya
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: Against a backdrop of increased levels of marketization of welfare services in OECD countries, this article aims to shed light on the separate effects of private ownership and competition on service quality. Using residential elderly care in Sweden as our case, we leverage unique panel data of ownership and competition against a set of indicators, pertaining to the structure, process and outcome dimensions of care quality. The main finding of our analyses is that competition does surprisingly little for quality: private entrepreneurs perform neither better nor worse under stiff competition and the quality of care is approximately the same in those nursing homes that are exposed to competition from private actors as in those that are not.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Gabriella R. Montinola, Sarah Prince
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: The longstanding debate on whether foreign aid promotes development suggests that aid’s efficacy depends on conditions in recipient states. Advocates of gender equality argue that empowering women is desirable not only in its own right but also as a means to other sought-after outcomes. We bring together these issues and argue that women’s empowerment in aid-receiving countries should enhance the effect of foreign aid on child development outcomes. We find support for this argument in analyses of up to 107 developing countries from 1986-2010. Our results indicate that aid is associated with greater reductions in infant mortality where women are more empowered. Furthermore, we find that among the different dimensions of empowerment—political, economic and social—political participation has the strongest and most consistent mediating effect on foreign aid. Our work has implications for research on aid effectiveness, the consequences of gender equality, and the politics of presence
  • Topic: Gender Issues, International Affairs
  • Political Geography: Global Focus
  • Author: Gissur Ólafur Erlingsson, Gunnar Helgi Kristinsson
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: The longstanding debate on whether foreign aid promotes development suggests that aid’s efficacy depends on conditions in recipient states. Advocates of gender equality argue that empowering women is desirable not only in its own right but also as a means to other sought-after outcomes. We bring together these issues and argue that women’s empowerment in aid-receiving countries should enhance the effect of foreign aid on child development outcomes. We find support for this argument in analyses of up to 107 developing countries from 1986-2010. Our results indicate that aid is associated with greater reductions in infant mortality where women are more empowered. Furthermore, we find that among the different dimensions of empowerment—political, economic and social—political participation has the strongest and most consistent mediating effect on foreign aid. Our work has implications for research on aid effectiveness, the consequences of gender equality, and the politics of presence
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Dragana Davidovic
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: Environmental taxes are argued to be the key to more effective environmental protection in developing countries. This paper investigates whether such taxes have the necessary public support to be successfully implemented in different contexts, including countries outside the Western and European spheres. Applying a multilevel analysis approach, using data from the World Values Survey and International Social Survey Programme, interaction effects between values, political and social trust, and perceived quality of government (QoG) are explored. It is hypothesized that if people lack trust in public authorities to implement green taxes in an efficient, fair and uncorrupt manner, they will be less likely to support such taxes despite their strong pro-environmental values or trust in other people. The results show that people holding green values are more likely to support environmental taxes if they live in countries with high levels of QoG. Moreover, the effect of social trust on support for green taxes appears to be contingent on individual-level political trust rather than the quality of government institutions. These interactions need further exploration since they vary across countries and datasets. While support for environmental taxes is found to be relatively high in some developing countries, public aversion towards higher taxes for environmental protection is still relatively high internationally.
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Monika Bauhr, Nicholas Charron
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: The Quality of Government Institute. University of Gothenburg.
  • Abstract: What factors explain public support for international redistribution? While the European Union has sent billions of taxpayers’ money to over indebted euro countries in an attempt to avoid an economic collapse, these transfers have encountered fierce resistance among both donor and recipient constituents. However, we know surprisingly little about why citizens support or oppose redistribution within the EU. This paper suggests that domestic levels of corruption and institutional quality may be one of the most important explanations for the great variation in public support for financial assistance and aid. Using recent European Elections Survey data merged with data on regional level quality of government, we show that the effects of institutional quality are consistently stronger than macro-economic factors, including economic development, inequality or levels of public debt. We find strong evidence that citizens’ in low corrupt contexts are more likely to support financial assistance to fellow member states. The results have implications for future challenges in securing public support for EU economic integration as well as for our understanding of how and why corruption undermines society’s collective action capacity
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Kamil Frymark
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Europeum Institute for European Policy
  • Abstract: Germany’s collaboration with Central European countries, and especially the Visegrad Group (V4) is often perceived through the prism of political differences that have arisen from divergent visions of the future EU migration policy and debates on the rule of law. Simultaneously, new opportunities to deepen the already existing cooperation may appear due to the turmoil in Germany’s domestic politics as well as the international environment..
  • Topic: International Affairs
  • Political Geography: Global Focus
  • Author: Stephen L. Magiera
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: Foreign investors can lodge a complaint against a host country for alleged treaty violations under the Investor-State Dispute Settlement (ISDS) provisions of bilateral investment treaties (BITs). The complaints are arbitrated internationally outside the host country's domestic court, sometimes involve claims exceeding US$1 billion, and give rise to significant financial risk of international arbitration for host countries. Because of this, Indonesia has recently cancelled many of its BITs. But at the same time, Indonesia has agreed to ISDS under the ASEAN Comprehensive Investment Agreement (ACIA) and ASEAN's five agreements with Dialogue Partners. Furthermore, President Joko Widodo has expressed strong interest in joining the Trans-Pacific Partnership (TPP), which contains provisions for ISDS. ASEAN's Regional Comprehensive Economic Partnership (RCEP) will also provide for ISDS. This note reviews the status of Indonesia's international obligations with respect to ISDS, evaluates some of the benefits and costs of ISDS, and reviews the extent to which Indonesia would be undertaking new ISDS obligations under TPP. The note concludes with a discussion of ways that Indonesia can reduce the risk of international arbitration through domestic regulatory reforms.
  • Topic: Economics, International Political Economy
  • Political Geography: Southeast Asia
  • Author: William Chislett
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Elcano Royal Institute
  • Abstract: Although some Spaniards joke that the country has got along fine with a caretaker government for 315 days, this year has been a lost one. There are some pressing issues that need to be tackled now that there is finally a functioning government. But the new Popular Party (PP) government no longer has an absolute majority. As a minority administration it will have to negotiate its laws and reforms in a deeply fragmented parliament, the result of the upending of the PP and the Socialist Party (PSOE) by two new parties, the far left Unidos Podemos (UP) and the centrist Ciudadanos (C’s). The government has a lot on its plate, including the following: (a) belatedly approving the budget for 2017 and meeting the EU’s threshold for the deficit (3% of GDP) in 2018 (a target imposed by Brussels that the PP persistently missed); (b) deciding what to do about the push for independence in Catalonia (the region’s government says it will hold a referendum on the issue in September 2017 regardless of whether the central government approves it or not); (c) cleaning up corruption in the political class; (d) making the judiciary more independent; (e) possibly deepening the labour market reforms in a bid to reduce the still very high unemployment rate (18.9%); (f) reforming an education system whose early school-leaving rate of 20% is close to double the EU average; (g) bolstering the ailing pension system hit by a sharp fall in the number of social security contributors and a rapidly ageing population; and (h) making its voice heard more in the post-Brexit debate.
  • Topic: International Relations, Brexit
  • Political Geography: Spain, European Union
  • Author: Zsolt Darvas, Dirk Schoenmaker
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: Integrated capital markets facilitate risk sharing across countries. Lower home bias in financial investments is an indicator of risk sharing. We highlight that existing indicators of equity home bias in the literature suffer from incomplete coverage because they consider only listed equities. We also consider unlisted equites and show that equity home bias is much higher than previous studies perceived. We also analyse home bias in debt securities holdings, and euro-area bias. We conclude that European Union membership may foster financial integration and reduce information barriers, which sometimes limit cross-country diversification. We calculate home bias indicators for the aggregate of the euro area as if the euro area was a single country and report remarkable similarity between the euro area and the United States in terms of equity home bias, while there is a higher level of debt home bias in the United States than in the euro area as a whole. We develop a new pension fund foreign investment restrictions index to control for the impact of prudential regulations on the ability of institutional investors to diversify geographically across borders. Our panel regression estimates for 25 advanced and emerging countries in 2001-14 provide strong support for the hypothesis that the larger the assets managed by institutional investors (defined as pension funds, insurance companies and investment funds), the smaller the home bias and thereby the greater the scope for risk sharing.
  • Topic: International Political Economy, International Trade and Finance, Economic structure, Europe Union
  • Political Geography: Europe
  • Author: Yakov Ben-Haim, Maria Demertzis, Jan Willem Van Den End
  • Publication Date: 02-2017
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: This paper applies the info-gap approach to the unconventional monetary policy of the Eurosystem and so takes into account the fundamental uncertainty on inflation shocks and the transmission mechanism. The outcomes show that a more demanding monetary strategy, in terms of lower tolerance for output and inflation gaps, entails less robustness against uncertainty, particularly if financial variables are taken into account. Augmenting the Taylor rule with a financial variable leads to a smaller loss of robustness than taking into account the effect of financial imbalances on the economy. However, in some situations, the augmented model is more robust than the baseline model. A conclusion from our framework is that including financial imbalances in the monetary policy objective does not necessarily increase policy robustness, and may even decrease it
  • Topic: Economics, International Political Economy, International Trade and Finance
  • Political Geography: Europe
  • Author: Georgios Petropoulos
  • Publication Date: 02-2017
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: This Policy Contribution tackles the definition and benefits of collaborative economy, as well as the distinction between professional and non-professional services, recommendations on safety and transparency for users, and the way to approach regulatory concerns.
  • Topic: Development, Economics
  • Political Geography: Global Focus
  • Author: David Schenker
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: The Washington Institute for Near East Policy
  • Abstract: The Middle at ha een engulfed in chao. Longtanding authoritarian regime have een toppled; till other dictator have killed hundred of thouand and diplaced million in an effort to retain power. Iran’ hiite prox militia have pread throughout the region, fueling ectarianim and roadening the appeal of nihilitic unni Ilamit jihadit group. Meanwhile, audi Araia and gpt—two longtanding pillar of Wahington’ trategic architecture in the Middle at—have een haken  economic troule.
  • Topic: International Security
  • Political Geography: Jordan
  • Author: Milos Popovic, Sonja Stojanovic Gajic
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Belgrade Centre for Security Policy
  • Abstract: The latest Belgrade Centre for Security Policy (BCSP) working study summarizes the key findings of a survey on relations towards major powers and their influence on Serbia and Serbia’s foreign policy. The research was conducted from 26 December 2016 until 14 January 2017 on reprezentative sample of 1,403 adult citizens of Serbia (excluding Kosovo).
  • Topic: International Relations, Foreign Policy, International Affairs
  • Political Geography: Serbia