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  • Author: Diego Sánchez-Ancochea
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This paper studies the determinants of income inequality in Latin America over the long run, comparing them with explanations of why the whole region is unequal. I first show how land inequality can account for differences between Latin America and other parts of the world but how it does not explain within-region differences. Using qualitative comparative analysis, I then consider how political institution and actors interact with the economic structure (i.e., type of export specialization) and with the ethnic composition of the population. The paper has several findings. A low indigenous/afrodescendant population is a necessary condition for relatively low inequality. I identify two sufficient-condition paths, both of which include the role of democracy, political equality, and a small indigenous and afrodescendant population. The first path also includes a favorable export specialization, while the second one includes the presence of leftist presidents instead. The paper calls for more explicit comparisons between our analytical models for the whole region and our explanations of between-country differences. Hopefully, the paper can also trigger more research on how the interactions between ethnicity, politics, and the export structure shape inequality in Latin America.
  • Topic: Civil Society, Development, Political Economy, Poverty, Race, Social Movement, Democracy, Inequality, Ethnicity
  • Political Geography: Latin America
  • Author: Tijan L. Bah, Catia Batista
  • Publication Date: 06-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: Irregular migration to Europe by sea, though risky, remains one of the most popular migration options for many sub-Saharan Africans. This study examines the determinants of irregular migration from West Africa to Europe. We implemented an incentivized lab-in-thefield experiment in rural Gambia, the country with the region’s highest rate of irregular migration to Europe. Male youths aged 15 to 25 were given hypothetical scenarios regarding the probability of dying en route to Europe and of gaining legal residence status after successful arrival. According to the data we collected, potential migrants overestimate both the risk of dying en route to Europe and the probability of obtaining legal residency status. In this context, our experimental results show that providing potential migrants with official numbers on the probability of getting a legal residence permit decreases their likelihood of migration by 2.88 percentage points (pp), while information on the death risk of migrating increases their likelihood of migration by 2.29 pp—although the official numbers should be regarded as a lower bound to actual mortality. Follow-up data collected one year after the experiment show that the migration decisions reported in the lab experiment correlate well with actual migration decisions and intentions. Overall, our study indicates that the migration decisions of potential migrants are likely to respond to relevant information.
  • Topic: Development, Globalization, Migration, Internet, Economic growth, Borders, Violence
  • Political Geography: Africa, Gambia
  • Author: Kelesego Mmolainyane
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: In her quest to further graduate to the high-income status, Botswana seeks to invest more in infrastructure development for both productive and social use. An efficient and effective infrastructure provision is fundamental to excellent public service delivery and access. Sadly, Botswana, like many other world economies, has a challenge of having an infrastructure financing gap. One of the innovative ways to fill this gap is through public private partnerships (PPPs) with the capital market that has excess liquidity. Infrastructure PPPs are complex and capital intensive projects that require project finance experts to advise parties involved regarding returns and risks associated with each project. Various project-financing models can be designed to suit project specifications and they cannot be over-generalised for all PPP projects. Nevertheless, given the tight fiscal space, Botswana now, more than ever, should consider issuing PPP bonds and applying user changes model to finance economic PPP infrastructure for sustainable and inclusive economic growth.
  • Topic: Development, Economics, Infrastructure, Finance, Public Sector, Economic Development , Private Sector
  • Political Geography: Africa, Botswana
  • Author: Johanne Motsatsi, Goitseone Khanie
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
  • Topic: Development, Economics, Economic growth, Manufacturing, Economic Development , Industrialization
  • Political Geography: Africa, Botswana
  • Author: Marumo Omotoye
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: The construction industry (CI) is considered one of the most corrupt both internationally and regionally. Therefore, this study examined the views and attitudes of professionals in Botswana’s CI towards the role whistleblowing (or protected disclosure) can play in curbing corruption in the sector. A convergent mixed methods approach was adopted. Semi-structured interviews were conducted with key stakeholders from the construction industry. Furthermore, a self-administered survey was utilised to collect quantitative data from 117 construction firms. Data revealed that there was little awareness of whistleblowing legislation. Fear of retaliation or punishment and job loss, and a lack of education on whistleblowing were identified as some of the most substantial barriers to effective whistleblowing in the industry. From a public policy perspective, it is recommended that an emphasis be placed on improving levels of education and awareness on whistleblowing in the construction sector. In addition, there should be consideration to amend the Whistleblowing Act 2016 to include construction industry regulators, the Public Procurement and Asset Disposal Board, and private media amongst the list of institutions authorised to receive reports of impropriety in order to extend the scope of legal protection to whistleblowers in the sector. Recommendations for further research are provided.
  • Topic: Corruption, Development, Economics, Public Sector, Manufacturing, Economic Development , Private Sector, Industry, Whistle Blowing
  • Political Geography: Africa, Botswana
  • Author: Mark H. Moore
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This is one of a series of working papers from “RISE"—the large-scale education systems research programme supported by the UK’s Department for International Development (DFID), Australia’s Department of Foreign Affairs and Trade (DFAT), and the Bill and Melinda Gates Foundation.
  • Topic: Development, Education, Governance, Developing World
  • Political Geography: Global Focus
  • Author: Michael Woolcock
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Many development agencies and governments now seek to engage directly with local communities, whether as a means to the realization of more familiar goals (infrastructure, healthcare, education) or as an end in itself (promoting greater inclusion, participation, well-being). These same agencies and governments, however, are also under increasing pressure to formally demonstrate that their actions ‘work’ and achieve their goals within relatively short timeframes – expectations which are, for the most part, necessary and desirable. But adequately assessing ‘community-driven’ approaches to development requires the deployment of theory and methods that accommodate their distinctive characteristics: building bridges is a qualitatively different task to building the rule of law and empowering minorities. Moreover, the ‘lessons’ inferred from average treatment effects derived from even the most rigorous assessments of community-driven interventions are likely to translate poorly to different contexts and scales of operation. Some guidance for anticipating and managing these conundrums are provided.
  • Topic: Development, Government, Infrastructure, International Development
  • Political Geography: Global Focus, United States of America
  • Author: Eduardo Fernández-Arias, Ricardo Hausmann, Ugo Panizza
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: The conventional paradigm about development banks is that these institutions exist to target well-identified market failures. However, market failures are not directly observable and can only be ascertained with a suitable learning process. Hence, the question is how do the policymakers know what activities should be promoted, how do they learn about the obstacles to the creation of new activities? Rather than assuming that the government has arrived at the right list of market failures and uses development banks to close some well-identified market gaps, we suggest that development banks can be in charge of identifying these market failures through their loan-screening and lending activities to guide their operations and provide critical inputs for the design of productive development policies. In fact, they can also identify government failures that stand in the way of development and call for needed public inputs. This intelligence role of development banks is similar to the role that modern theories of financial intermediation assign to banks as institutions with a comparative advantage in producing and processing information. However, while private banks focus on information on private returns, development banks would potentially produce and organize information about social returns.
  • Topic: Development, Industrial Policy, Markets, Banks
  • Political Geography: Global Focus, Global Markets
  • Author: Michael Woolcock
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: A defining task of development is enhancing a state’s capability for policy implementation. In most low- income countries, alas, such capabilities seem to be stagnant or declining, in no small part because dominant reform strategies are ill-suited to addressing complex non-technical aspects. This has been recognized for at least six decades – indeed, it was a centerpiece of Albert Hirschman’s understanding of the development process – yet this critique, and the significance of its implications, remain on the margins of scholarship and policy. Why? I consider three options, concluding that, paradoxically, followers of Hirschman’s approach inadequately appreciated that gaining more operational traction for their approach was itself a type of problem requiring their ideas to embark on ‘a long voyage of discovery’, a task best accomplished, in this instance, by building – and tapping into the distinctive insights of – a diverse community of development practitioners.
  • Topic: Development, Political Economy, Developing World, International Development
  • Political Geography: North America, United States of America
  • Author: Julius Caesar Trajano
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: S. Rajaratnam School of International Studies
  • Abstract: The Philippines and China signed a Memorandum of Understanding (MoU) in Cooperation on Oil and Gas Development, demonstrating their willingness to explore joint development as a pathway to collaboration, notwithstanding their territorial disputes. Recent commentaries on joint development are mostly framed on legal challenges, South China Sea (SCS) rows, geopolitics, and state-centric security issues. However, there have been no extensive discussions on the potential contributions from non-state stakeholders that can make joint development agreements environmentally sound, sustainable, and less political. These stakeholders are the oil companies, fishermen and coastal communities. In this regard, this NTS Insight explores potential roles of these stakeholders in promoting joint initiatives to share and develop resources in the SCS. It argues that the engagement and participation of non-state stakeholders in resource sharing and joint management must be pursued to address key non-traditional security challenges in the SCS. It also examines mechanisms to integrate marine environmental protection and sustainable fishing management into joint development agreements.
  • Topic: Security, Development, Treaties and Agreements, Bilateral Relations, Territorial Disputes
  • Political Geography: China, Philippines, Southeast Asia, South China Sea
  • Author: Honzhi Yu, Hongying Wang
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: In contrast to the growing profile of the Chinese government in global governance, the engagement of Chinese industrial actors in global rule making is quite limited and uneven. Some Chinese industrial leaders have shown an ambition to participate in global rule making in their respective realms; most of the others still lack interest or capacity. This policy brief identifies three plausible sources of variation among the Chinese industrial actors. It offers suggestions to Chinese industrial actors and to those concerned about China’s role in global governance, with the purpose of reducing misunderstanding and building trust between Chinese industrial actors and businesses, regulators, non-governmental organizations and stakeholders from other parts of the world in developing global standards for good governance.
  • Topic: Development, Industrial Policy, Governance
  • Political Geography: China, Asia
  • Author: Géraud de Lassus Saint-Genliês
  • Publication Date: 05-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The Global Pact for the Environment (GPE) is a draft treaty prepared in 2017 by a French think tank, Le Club des Juristes, which aims at strengthening the effectiveness of international environmental law (IEL) by combining its most fundamental principles into a single overarching, legally binding instrument. In May 2018, the United Nations General Assembly (UNGA) adopted Towards a Global Pact for the Environment, a resolution that established an intergovernmental working group to discuss the necessity and feasibility of adopting an instrument such as the GPE, with a view to making recommendations to the UNGA. As the working group nears its final session, scheduled for May 20–22, 2019, this paper discusses the extent to which codifying the fundamental principles of IEL into a treaty could increase the problem-solving effectiveness of environmental governance. The analysis suggests that the added value of the proposed GPE (or any such instrument) may not be as evident as what its proponents argue. The paper also highlights the fact that the adoption of such an instrument could generate unintended consequences that would hinder the development of more effective environmental standards in the future.
  • Topic: Climate Change, Development, Environment, United Nations
  • Political Geography: Global Focus
  • Author: Sarah Burch
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Canada cannot deliver on its international obligations under the Paris Agreement without meaningfully engaging its small business sector. Small businesses are more than simple profit-maximizers: they are social and political actors. Policies and incentives to foster sustainability should be carefully tailored to respond to the variety of drivers at each size of firm, rather than employing the same approach across the spectrum. Government can accelerate small business sustainability innovation by providing information, cases and success stories; technical skills and expertise; financial support and incentives; and legitimation.
  • Topic: Climate Change, Development, Environment, Innovation, Sustainability
  • Political Geography: Canada, North America
  • Author: Susan Ariel Aaronson
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Many wealthy states are transitioning to a new economy built on data. Individuals and firms in these states have expertise in using data to create new goods and services as well as in how to use data to solve complex problems. Other states may be rich in data but do not yet see their citizens’ personal data or their public data as an asset. Most states are learning how to govern and maintain trust in the data-driven economy; however, many developing countries are not well positioned to govern data in a way that encourages development. Meanwhile, some 76 countries are developing rules and exceptions to the rules governing cross-border data flows as part of new negotiations on e-commerce. This paper uses a wide range of metrics to show that most developing and middle-income countries are not ready or able to provide an environment where their citizens’ personal data is protected and where public data is open and readily accessible. Not surprisingly, greater wealth is associated with better scores on all the metrics. Yet, many industrialized countries are also struggling to govern the many different types and uses of data. The paper argues that data governance will be essential to development, and that donor nations have a responsibility to work with developing countries to improve their data governance.
  • Topic: Development, Economics, Governance, Data
  • Political Geography: Global Focus
  • Author: Alex He
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: This paper argues that with more objectives added since its inception in 2013, China’s Belt and Road Initiative (BRI) has evolved into a much more expansive grand strategy that includes a package of themes and goals. It examines the policy-making process of the BRI by exploring the motivations behind the plan President Xi Jinping proposed and how the initial Silk Road projects have developed into China’s package of strategies over the past few years. The priorities and performance of China’s investments in the BRI are discussed from the angle of geographical distribution, routes and projects, priority sectors and the connection between the BRI and the previous “going out” strategy China started at the beginning of the twenty-first century. The model and the specific ways China finances and invests in BRI projects, to a great extent, decided the nature of the China-led global infrastructure investment plan. BRI financing is reviewed in detail. Based on the geopolitical and geo-economic analysis of the BRI in the previous parts, the implications of the BRI for global governance as it goes beyond the ambitious infrastructure investment plan are revealed. The risks and problems facing the BRI and the controversy and criticism it has encountered are also addressed. Finally, the paper summarizes the BRI’s ever-expanding themes and the problems and risks it faces, and their implications for the future of the BRI.
  • Topic: Development, Imperialism, Infrastructure, Belt and Road Initiative (BRI), Strategic Competition
  • Political Geography: China, Asia
  • Author: Marsha Cadogan
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: IP rights are often presented as a contentious issue in the development discourse. Some view strong IP rights as an obstacle to domestic development by creating barriers to the use of intangible resources on favourable terms. Others view IP rights as a means to foster growth in domestic industries, encourage innovation and protect foreign firms in high-infringement jurisdictions. These differing global perspectives on whether and, if so, how, IP rights promote development in domestic and global economies often result in policies that are either conducive to development or are challenging as development aids. The SDGs make no explicit reference to IP. However, IP is implicit in either the achievement of the SDGs as a whole, or as an aspect of specific goals, such as innovation. This policy brief deals with the relevance of the SDGs to the creation, use, protection and management of IP in developed economies.
  • Topic: Development, Foreign Direct Investment, Sustainable Development Goals, Innovation, Industry
  • Political Geography: Global Focus
  • Author: Chidi Oguamanam
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The focus of the last two decades (1994–2015) on the world’s Indigenous peoples has highlighted a number of critical issues that are central to Indigenous empowerment and resurgence in the quest for decolonization. The key issues include Indigenous peoples’ full and effective participation in decision making in matters that affect them, the pursuit of culturally sensitive development policies, or what is now termed self-determined development, and effective monitoring or stock-taking mechanisms and processes, not only for planning but also for measuring progress. A combination of factors, including access to information and communications technology amid current Indigenous resurgence and rapidly intensifying Indigenous interest in data sovereignty, places Indigenous peoples in a strong position to further their ongoing investment not only in self-repositioning but also for practical realization of their rights to self-determination.
  • Topic: Development, Decolonization, Indigenous
  • Political Geography: Canada, North America
  • Author: Asnake Kefale
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Social Science Research Council
  • Abstract: This policy brief explores the prospects of deploying federalism as an instrument of peacebuilding in the context of emerging political reforms in Ethiopia. The ap- pointment of Abiy Ahmed as prime minister in April 2018 by the ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF) marks a watershed moment in Ethiopia’s political history. The agenda of political reform adopted by EPRDF was largely due to two interrelated factors. First, the need to overcome the ap- parent fissures and constant power struggles within the party, especially since the death of Prime Minister Meles Zenawi in 2012. Second, as a response to the youth-led mass anti-government protests which started in 2015, primarily in the two most populous regions of the country, Oromia and Amhara. While the ongoing reforms are generating some optimism, there are also wor- risome developments in parts of the country. More than 1.4 million people have been displaced from their homes. The causes of their displacement are inter- ethnic tensions and identity-based communal conflicts over issues such as the ownership of natural resources linked to people’s livelihoods and the location of territorial borders. Those hit hardest by internal displacement are communities living in Gedeo and West Guji in southern Ethiopia and in the border areas of the Oromia and Somali regions. There are also tensions between the Amhara and Tigray regions over the identity of Wolqait and Raya communities. Similarly, the Sidama ethnic group’s demand for regional status in southern Ethiopia has cre- ated tension in the area. Moreover, there are reports of a breakdown of law and order in parts of the Amhara and Oromia regions. A key issue in Ethiopia’s political reform is the future of federalism, in particu- lar, the strong emphasis placed on ethnicity and whether it will continue to be relevant. On the one hand, there are political forces (centrists) that see ethnic federalism as a root cause of the current crisis, while others contend that theproblems are due to non-adherence to the principles of true federalism. However, it is important to note that the federal system is crucial to Ethiopia’s stability, peace, and develop- ment. With the opening of political space, the future direc- tion of Ethiopian federalism is being hotly contested. There are political forces that aspire to remove the ethnic element from the federal system or change the system altogether from ethnic to geographic federalism. Such a course of ac- tion is fraught with danger. The reactions to the removal of the federal status of Eritrea in 1960 and the autonomy of South Sudan in 1983 demonstrate the inadvisability of re- versing regional or ethnic autonomy. In both countries, the rolling back of autonomous arrangements by central au- thorities was a key factor in the long-running conflicts that culminated in the secession of Eritrea and South Sudan, re- spectively. The government of Ethiopia (GoE) should, there- fore, consider the following policy recommendations.
  • Topic: Development, Reform, Political stability, Peace, Federalism
  • Political Geography: Africa, Ethiopia
  • Author: Jennifer R. Dresden, Thomas E. Flores, Irfan Nooruddin
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Institute of International Education
  • Abstract: The notion that robust democracy and violent conflict are linked is commonplace. Many observers of international politics attribute violent conflict in contexts as diverse as Myanmar and Syria to failures of democracy. Conversely, most agree that continuing political violence undermines any effort to build strong democratic institutions in Libya or South Sudan. As a matter of policy, democratization has often been promoted not only as an end in itself but as a means toward building peace in societies scarred by violence. Development professionals tackle these challenges daily, confronting vicious cycles of political violence and weak democratic institutions. At the same time, scholars have dedicated intense scrutiny to these questions, often finding that the interrelationships between conflict and democracy belie easy categorization. This report, the third in a series on democratic theories of change, critically engages with this literature to ask three questions: Under what circumstances do democratic practice or movement toward democracy quell (or exacerbate) the risk of different kinds of violent conflict? Under what circumstances do the risk and experience of violent conflict undermine democratic practice? How can external interventions mitigate risks and capitalize on opportunities inherent in transitions to democracy and peace? To answer these questions, a research team at George Mason University and Georgetown University spent eight months compiling, organizing, and evaluating the academic literature connecting democratic practice and violent conflict, which spans the fields of political science, economics, peace studies, anthropology, sociology, and psychology. This work was funded by USAID’s Center of Excellence on Democracy, Human Rights, and Governance (the DRG Center), under the Institute of International Education’s (IIE’s) Democracy Fellows and Grants Program. Beginning in May 2018, the authors organized a team of three research assistants, who read and summarized more than 600 journal articles, books, reports, and newspaper articles. The resulting White Paper was the subject of an August 2018 workshop with representatives from USAID and an interdisciplinary group of eight scholars with expertise in conflict and democracy. Based on their feedback, the authors developed a new Theories of Change Matrix and White Paper in October 2018. This draft received further written feedback from USAID and another three scholars. The core team then revised the report again to produce this final draft. This report’s approach to the literature differs from past phases of the Theories of Democratic Change project. While past reports detailed the hypothesized causes of democratic backsliding (Phase I) and democratic transitions (Phase II), this report focuses on the reciprocal relationship between democratic practice and conflict. The report therefore organizes hypotheses into two questions and then sub-categories within each question.
  • Topic: Democratization, Development, Education, Democracy, Conflict, Political Science, USAID
  • Political Geography: Libya, Syria, North America, Myanmar, South Sudan, Global Focus, United States of America
  • Author: Bill Orme
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: National Endowment for Democracy
  • Abstract: The United Nations made a promise in Article 19 of the Universal Declaration of Human Rights to promote free and independent media around the world. Citizens cannot “seek, receive and impart information and ideas, through any medium, regardless of frontiers” without access to a vibrant media sphere, including a free and open internet. But how does the UN interpret and act upon this obligation? How is that changing? And how can the UN help create a more effective response to the profound challenges confronting independent media? This report examines the myriad ways that the agencies and bodies of the United Nations support the development of healthy media systems. Author Bill Orme highlights the role of four UN organizations in particular—UNESCO, UNDP, UNICEF, and DPO—and makes recommendations targeted to these agencies, as well as to UN member states and donors.
  • Topic: Development, United Nations, Journalism, The Press, Freedom of Press
  • Political Geography: Global
  • Author: Jayathma Wickramanayake
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Columbia University World Leaders Forum
  • Abstract: This World Leaders Forum program features an address by Jayathma Wickramanayake, the UN Secretary-General's Envoy on Youth, followed by a question and answer session with the audience.
  • Topic: Development, Gender Issues, United Nations, Multilateral Relatons, Youth
  • Political Geography: New York, United Nations, Global Focus
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Munk School of Global Affairs at the University of Toronto
  • Abstract: The Reach Project is a research initiative based in the Munk School of Global Affairs and Public Policy and supported by the Mastercard Center for Inclusive Growth. They examine the successful delivery of social services to those who are hardest to reach. This case study examines how the Ministry of Social Development in Palestine designed, implemented, and continues to refine the Palestinian National Cash Transfer Program (PNCTP) to specifically reach those who are hard to reach.
  • Topic: Civil Society, Development, Poverty, Inequality, Social Services
  • Political Geography: Middle East, Israel, Palestine
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Middle East Research Institute (MERI)
  • Abstract: This timely session was dedicated to a debate with the President of Kurdistan Region of Iraq (KRI) to discuss central geo-political and domestic developments, including the protests and the crisis of governance in Baghdad; the Turkish invasion of Northern Syria (particularly Rojava); and finally, the effects of internal political fissures within the KRI.
  • Topic: Development, Governance, Geopolitics
  • Political Geography: Iraq, Europe, Turkey, Middle East, Asia, Baghdad, Syria, Kurdistan
  • Author: Yusri Khaizran
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Moshe Dayan Center for Middle Eastern and African Studies
  • Abstract: Yusri Khaizran sheds light on recent civil and political developments in Israel's Arab society, against the backdrop of the significant events that took place within the larger Arab world at the beginning of this decade.
  • Topic: Civil Society, Development, Minorities, Arab Spring
  • Political Geography: Middle East, Israel, Palestine
  • Author: Yume Tamiya
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Centre for Global Political Economy, University of Sussex
  • Abstract: In 2018/2019 the CGPE launched an annual Gender & Global Political Economy Undergraduate Essay Prize competition, open to all undergraduate students within the School of Global Studies. The winner of the 2018/2019 competition is Isabella Garcia for the essay “How do global supply chains exacerbate gender-based violence against women in the Global South?” Isabella graduated with a BA in International Relations and Development in July and will join the MA cohort in our Global Political Economy programme for 2019/2020. Given the very strong field of submissions, the award committee further decided to award a second-place prize to Yume Tamiya for the essay “Does the rise of the middle class disguise existing inequalities in Brazil?”. Yume graduated with a BA in International Development with International Education and Development. We are delighted to publish both of these excellent essays in the CGPE Working Paper series.
  • Topic: Development, Economics, Inequality, Economic growth
  • Political Geography: Brazil, Latin America
  • Author: Manju Menon
  • Publication Date: 05-2019
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: In 2000, the central government declared Northeast India as India’s hydropower hub. Over 165 large dam projects were proposed to come up in the region. These projects were held as crucial to India’s energy and environmental security as well as the economic development of the country’s marginalised northeastern borderlands.However, nearly two decades on, this proposal to regulate the region's water resources remains unimplemented. In addition, the projects have generated a lot of public opposition in Arunachal Pradesh where most of these dams are supposed to be situated, and in the downstream Brahmaputra valley of Assam. This article will look into the government's hype and failure to construct hydropower dams in the Northeast region. It points to the need for a reflexive political decision on water resource management from the BJP-led governments in Assam, Arunachal Pradesh and at the Centre.
  • Topic: Development, Energy Policy, Government, Natural Resources, Infrastructure
  • Political Geography: South Asia, India, Asia
  • Author: Michael Kende1, Nivedita Sen
  • Publication Date: 01-2019
  • Content Type: Working Paper
  • Institution: Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
  • Abstract: E-commerce has long been recognized as a driver of growth of the digital economy, with the potential to promote economic development. The benefits come from lower transaction costs online, increased efficiency, and access to new markets. The smallest of vendors can join online marketplaces to increase their sales, while larger companies can use the Internet to join global value chains (GVCs), and the largest e-commerce providers are now among the most valuable companies in the world.
  • Topic: Development, Economics, Science and Technology, World Trade Organization, Digital Economy, Economic growth, Free Trade
  • Political Geography: United States, Europe, Switzerland, Global Focus
  • Author: Maxim Ananyev, Michael Poyker
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: We demonstrate that civil conflict erodes self-identification with a nation-state even among non- rebellious ethnic groups in non-conflict areas. We perform a difference-in-difference estimation using Afrobarometer data. Using the onset of Tuareg-led insurgency in Mali caused by the demise of the Libyan leader Muammar al-Gaddafi as an exogenous shock to state capacity, we find that residents living closer to the border with the conflict zone experienced a larger decrease in national identification. The effect was greater on people who were more exposed to local media. We hypothesize about the mechanism and show that civil conflict erodes national identity through the peoples’ perception of a state weakness.
  • Topic: Development, Economics, State Formation, State Actors, State, Institutions
  • Political Geography: Africa, Libya, Mali
  • Author: José Galdo, Bayarmaa Dalkhjavd, Altantsetseg Batchuluun, Soyolmaa Batbekh, Maria Laura Alzúa
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Center for Distributive, Labor and Social Studies (CEDLAS)
  • Abstract: Because of its high incidence and potential threat to social cohesion, youth unemployment is a global concern. This study uses a randomized controlled trial to analyze the effectiveness of a demand-driven vocational training program for disadvantaged youth in Mongolia. Mongolia, a transitional country whose economic structure shifted from a communist, centrally planned economy to a free-market economy over a relatively short period, offers a new setting in which to test the effectiveness of standard active labor market policies. This study reports positive and statistically significant short-term effects of vocational training on monthly earnings, skills matching, and self-employment. Substantial heterogeneity emerges as relatively older, richer, and better-educated individuals drive these positive effects. A second intervention that randomly assigns participants to receive repetitive weekly newsletters with information on market returns to vocational training shows positive impacts on the length of exposure to and successful completion of the program. These positive effects, however, are only observed at the intensive margin and do not lead to higher employment or earnings outcomes.
  • Topic: Development, Economics, Industrial Policy, Labor Issues, Employment, Youth, Labor Policies
  • Political Geography: Mongolia, Asia
  • Author: Kai Gehring, Lennart C. Kaplan, Melvin H.L. Wong
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: Empirical Studies of Conflict Project (ESOC)
  • Abstract: China’s development model challenges the approaches of traditional Western donors like the World Bank. We argue that both aim at stability, but differ in the norms propagated to achieve that. Using fixed effects and IV estimations, we analyze a broad range of subnational stability measures in Africa. Aid by both the WB and China does not increase outright conflict nor any type of citizen protest, on average. Both even reduce outright conflict by governments against civilians. Still, Chinese aid is associated with more government repression and an increased acceptance of authoritarian norms, while WB projects strengthen democratic values.
  • Topic: Development, International Political Economy, Political Economy, World Bank, Developing World
  • Political Geography: Africa, China
  • Author: Johanne Motsatsi
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: The objective of this study is to estimate the determinants of unemployment in the Southern African Development Community (SADC) region using annual data from 2000 to 2016. Given the characteristic of the data, the study adopts Fixed Effect (FE) estimation technique. For further analysis, the study also estimated the ARDL panel model to capture persistence effect of unemployment in the region. The FE results reveals that real GDP, foreign direct investment, consumer price index, credit to the private sector and interest rate are negatively related to unemployment. While trade openness, labour productivity and population have a positive sign. The results estimated with ARDL model are not very different from those of FE model, but we obtained a noticeably smaller estimates for ARDL model. Variables which have negative association with unemployment suggest that they are likely to reduce unemployment. Therefore, such indicators may be of interest to policy makers when formulating unemployment reduction strategies. In terms of policy advise, the study recommends the government of SADC member states to encourage the education system that can equip leaners with entrepreneurial skills and in-job practical skills, in order to promote high success rate of SMMEs as well as to provide skills needed in the labour market. It also recommended enforcement of free trade of goods and services in the region as a means of making the industrial sector an engine of economic growth in order to create much needed employment.
  • Topic: Development, Economics, Labor Issues, Employment, Labor Policies, Macroeconomics, Unemployment
  • Political Geography: Africa, Botswana
  • Author: Masedi K. Tshukudu
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Botswana Institute for Development Policy Analysis
  • Abstract: It is clear that technology has brought about significant changes in the livelihoods of people, creating new forms of employment and advancing the traditional forms of employment for individuals. Many countries continue to invest in Information and Communication Technologies (ICTs) with the view to tackling some of the economic challenges such as unemployment. Botswana like other African countries has made annual budgetary allocations towards ICT Infrastructure. Despite, the Government’s efforts to invest and improve access to ICT, the country still faces a high unemployment rate, particularly for the youth. This study therefore, investigates the impact that access to ICTs has on the employment of individuals in Botswana. In order to provide a detailed analysis of the impact of ICTs on employment we apply a probit model for binary choice responses to being employed or not being employed, using the data from the 2014 Botswana Household Access and Individual use of Information Communication Technology Survey carried out by the Statistics Botswana. The empirical results provide evidence that access to ICTs collectively has a positive impact on employment in Botswana. However, disaggregating the ICTs forms presents slightly different results, e-skill training and access to the internet in Botswana are not significant in explaining an individual’s employment status, this may be associated with low uptake of internet and ICTs skills by individuals in Botswana. The policy message from this study is that there is a need for aggressive implementation of collective ICT. [In addition, there is need to improve collective ICTs infrastructure to create more employment].
  • Topic: Development, Economics, Science and Technology, Communications, Information Age, Economic Development
  • Political Geography: Africa, Botswana
  • Author: Alejandro Herrera, Mariel Bedoya, Bruno Gonzaga, Karen Espinoza
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Institute for Advanced Development Studies (INESAD)
  • Abstract: In this paper we use a Multi-Cutoff Fuzzy Regression Discontinuity Design to evaluate spillover effects of students enrolled into Peruvian public magnet schools, Colegios de Alto Rendimiento (COAR), on educational outcomes of younger students in their schools of origin. Using administrative data from the Ministry of Education for 2016, we find that having at least one student admitted in a COAR school causes some negative spillover effects on math test scores of students from the following cohort. No evidence of statistically significant results is found for verbal and history test scores, nor for self-reported educational expectations. We discuss potential causes and reasons that may explain our results.
  • Topic: Development, Economics, Education
  • Political Geography: Latin America, Peru
  • Publication Date: 01-2019
  • Content Type: Working Paper
  • Institution: Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
  • Abstract: States face the challenge of developing institutions to govern the activities of social actors when an area under their control becomes the target of increased extractive activities. National and local public regulations safeguarding the environment, the assignment of extractive rights to individuals or companies, and handling of ensuing conflicts are developed in an institutional gray zone. This paper analyzes how informal institutions developed in early period become hybrid institutional entanglements that depend largely on configurations of power. It does so by looking at two cases in Peru: Water extraction in Ica, mostly by large companies and gold mining in Madre de Dios, mostly by small scale miners. Taken together, these cases show the institutions resulting from state governance of extractive activities depends heavily on the agency and political leverage of the state but also of other social actors.
  • Topic: Development, Economics, Environment, Natural Resources, Water, Institutions, Ecology
  • Political Geography: Latin America, Peru
  • Author: Santosh Mehrotra
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: Centre for Sustainable Employment, Azim Premji University
  • Abstract: Globally, research has shown that, there is a high correlation between the level of per capita income and the rate of female labour force participation. At the same time the agency and autonomy of women in a country improve with the level of female labour force participation. Sen (2000) has argued that the autonomy and agency of women in a society and their empowerment is enabled by four conditions in their lives. First the higher the education level of women, the more empowered they are likely to feel. Second, if they are working outside the home, they are likely to feel a sense of autonomy and empowerment. Third, they should also have an independent source of income from that of the significant other in their household. Finally, their empowerment can be usually enhanced if they own assets and have access to them. One can see from this analysis that the first three requirements for women’s’ empowerment are related to each other and to some extent co-dependent. We will keep these considerations in mind as we analyse labour markets and how women engaged with them in different parts of the world.
  • Topic: Development, Economics, Education, Gender Issues, Labor Issues, Women, Employment, Inequality
  • Political Geography: India
  • Author: Daniel F. Runde, Romina Bandura
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The U.S. Trade and Development Agency (USTDA) is a small independent federal agency whose mission is to help American “companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies.” USTDA links American businesses to export opportunities in emerging markets by funding activities such as project preparation and partnership building in sectors including transportation, energy, and telecommunications. Since it was established 25 years ago, the agency has generated a total of $61 billion in U.S. exports and supported over 500,000 American jobs. In connecting American business to such opportunities, USTDA also links American technology’s best practices and ingenuity with U.S. trade and development policy priorities. USTDA is an instrument to enable American-led infrastructure development in emerging economies and, therefore, frequently sees increasing competition from government-backed Chinese firms and the challenge they can pose to American commercial engagement under the flag of One Belt, One Road (OBOR). OBOR is paving the way for Chinese engineering, procurement, and construction companies to prepare and develop infrastructure projects in OBOR countries in a way that favors Chinese standards, thereby exerting significant pressure to select Chinese suppliers. This creates a potentially vicious cycle—the more China builds, the faster their standards become the international norm, and, ultimately, this cycle could foreclose export opportunities for U.S. businesses and harm American competitiveness in global infrastructure development. U.S. exporters are increasingly requesting USTDA intervention at the pivotal, early stages of a project’s development, to compete in markets, such as the OBOR countries, where they frequently face Chinese competition. Of note, 40 percent of USTDA’s activities in 2016 were in OBOR countries across South and Southeast Asia, Central Asia, the Middle East, and Africa. Although there are other agencies that may seem to do work similar to USTDA, there are various aspects that make it a unique agency. This paper provides a brief description of USTDA, its origin and evolution, the impact on the U.S. economy and its proactive collaboration across U.S agencies. Finally, it offers a set of recommendations for USTDA on how to improve its operations and strengthen its role in the developing world.
  • Topic: Development, Energy Policy, Communications, Infrastructure, Trade, Transportation
  • Political Geography: Africa, United States, Middle East, Asia, North America
  • Author: James Michel
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: “Fragility”—the combination of poor governance, limited institutional capability, low social cohesion, and weak legitimacy—leads to erosion of the social contract and diminished resilience, with significant implications for peace, security, and sustainable development. This study reviews how the international community has responded to this challenge and offers new ideas on how that response can be improved. Based on that examination, the author seeks to convey the importance of addressing this phenomenon as a high priority for the international community. Chapters explore the nature of these obstacles to sustainable development, peace, and security; how the international community has defined, measured, and responded to the phenomenon of fragility; how the international response might be made more effective; and implications for the United States.
  • Topic: Development, Governance, Fragile States, Social Cohesion
  • Political Geography: United States, Global Focus
  • Author: Reid Hamel
  • Publication Date: 02-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: Social protection programming, such as cash transfers and vouchers provided at the individual or household level, has become increasingly prominent as a tool to combat food insecurity worldwide. Advantages of a social protection approach include the ability to target and reach the most vulnerable segments of society and to provide direct support for basic needs without reliance on complex causal pathways.The U.S. Agency for International Development (USAID) invests relatively little in social protection despite its flagship initiative, Feed the Future, which seeks to mitigate food insecurity and to reduce the prevalence of stunting in 12 countries (formerly in 19). Ghana’s LEAP (Livelihood Empowerment Against Poverty) program represents an exception to the U.S. investment pattern. In partnership with UNICEF, USAID/Ghana has made noteworthy investments in the expansion of the LEAP cash transfer program to add a new eligible group of beneficiaries: pregnant women and children under one year old. The intention to intervene during pregnancy and the first year of life is motivated by a growing understanding that good nutrition during this window is critical to physical and cognitive health and human development outcomes that last a lifetime. This report explores the development of Ghana’s LEAP program since 2008; its current coverage, successes, and challenges; and opportunities for both the government of Ghana and donor partners to spearhead continuous improvements for program outcomes and resource efficiency.
  • Topic: Development, Poverty, Social Policy, Development Aid
  • Political Geography: Africa, United States, North America, Ghana
  • Author: Ricardo Hausmann, Carlo Pietrobelli, Miguel Angel Santos
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: The literature on income gaps between Chiapas and the rest of Mexico revolves around individual factors, such as education and ethnicity. Yet, twenty years after the Zapatista rebellion, the schooling gap between Chiapas and the other Mexican entities has shrunk while the income gap has widened, and we find no evidence indicating that Chiapas indigenes are worse-off than their likes elsewhere in Mexico. We explore a different hypothesis. Based on census data, we calculate the economic complexity index, a measure of the knowledge agglomeration embedded in the economic activities at a municipal level in Mexico. Economic complexity explains a larger fraction of the income gap than any individual factor. Our results suggest that chiapanecos are not the problem, the problem is Chiapas. These results hold when we extend our analysis to Mexico’s thirty-one federal entities, suggesting that place-specific determinants that have been overlooked in both the literature and policy, have a key role in the determination of income gaps.
  • Topic: Development, Economics, Migration, Political Economy, Economic Inequality
  • Political Geography: Central America, Mexico, Chiapas
  • Author: Séverine Deneulin
  • Publication Date: 04-2018
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: The concept of integral human development is central to the Catholic social tradition. Yet, it remains under-explored with regard to its integrating components and their implications. What does taking an integral human development perspective mean for social analysis and action? The paper seeks to answer this question on the basis of the four encyclicals in which the idea of integral human development is treated, and in combination with two other sources: 1) the literature on “human development” in the multidisciplinary social science field of international development studies and its conceptual foundations in Amartya Sen’s capability approach; and 2) the life of a faith community in a marginalized Latin American urban neighborhood. Based on a combination of these sources, the paper concludes by proposing an understanding of “integral human development” that it calls a spirituality-extended capability approach to the progress of peoples.
  • Topic: Civil Society, Development, Education, Poverty, Religion, Inequality, Youth, Violence, Christianity, Catholic Church
  • Political Geography: Argentina, South America, Latin America
  • Author: Stuart Kirsch
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This article discusses two affidavits submitted to the Inter-American court system. The first is concerned with Suriname’s refusal to recognize indigenous land rights despite its international obligation to do so. The second addresses problems associated with indigenous land titles in Guyana. Comparing the two cases permits observations about ethnographic research conducted for expert witness reports, including the need to make affidavits legible to three different audiences, each with its own frame of reference: the legal system, communities seeking recognition of their rights, and anthropology (Paine 1996). I also consider the narrative choices in these affidavits, the political dilemmas of being an expert witness, and the compromises of short-term ethnography.
  • Topic: Development, Culture, Economic growth, Social Justice, Public Policy
  • Political Geography: South America, Amazon Basin, Suriname
  • Author: Sandra Polanía-Reyes
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This study tests an unintended benefit of a conditional cash transfer program in Colombia: the ability to overcome coordination failures. Participants interact with fellow beneficiaries, which gives rise to a coordination device. Beneficiaries participate in a minimum effort coordination game. Those enrolled in the program for over a year are exerting the highest level of effort. The improvement in coordination is not due to potential confounds such as willingness to cooperate or connectivity. A structural choice model illustrates that when beliefs about other’s behavior are sufficiently high the Pareto- dominant equilibrium holds. The findings support nascent initiatives to influence beliefs through policy interventions.
  • Topic: Civil Society, Development, Political Economy, Poverty, Communications, Governance, Inequality, Economic growth, Public Policy, Institutions
  • Political Geography: Colombia, South America, Latin America
  • Author: Anton Malkin
  • Publication Date: 08-2018
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: This paper provides a reassessment of Made in China 2025 (MIC 2025) — China’s industrial policy framework aimed at helping the country overcome the much-maligned middle-income trap — in the context of global trade governance. It suggests that China’s industrial policies have been viewed too narrowly — without sufficient attention to longer-term global governance issues — by a large segment of the global business and policy-making community. The paper argues that the general aims of MIC 2025 and the policies that underpin them are not unreasonable, given the increasingly prevalent dilemmas in global trade that China’s leaders are grappling with. These include problems of international development arising from growing global industrial concentration — driven by the growth of the intangible economy — and China’s shrinking access to importing and developing technological components (such as semiconductor chips) that are increasingly characterized as “dual-use” by China’s trading partners. This suggests that resolving the concerns of China’s trading partners regarding China’s industrial policies requires global trade governance reform to ensure an equitable, rules-based global trading order that addresses the legitimate needs of developing and middle-income economies in acquiring foreign-owned technological components and know-how, for the purposes of economic development. The paper concludes by outlining specific recommendations for Canada’s policy makers in improving their economic relationship with China in the context of MIC 2025.
  • Topic: Development, Industrial Policy, Science and Technology, Governance, Free Trade
  • Political Geography: China, Canada, Asia, North America
  • Author: Sarah Ferbach, Audrey Reeves, Callum Watson, Léa Lehouck
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Geneva Centre for Security Sector Governance (DCAF)
  • Abstract: Since 2007, the NATO Parliamentary Assembly has pursued an original and ground-breaking approach of mapping the distinctive contribution of its member parliaments to advancing the women, peace and security (WPS) agenda. Following on from previous reports in 2013 and in 2015, this study provides an up-to-date analysis of the 28 national responses to the NATO Parliamentary Assembly WPS survey in 2018. The main findings are as follows: 1. There was an increase in parliaments’ reported activity in the field of WPS, from 81% of respondents reporting some degree of involvement in 2015 to 100% in 2018. Countries with a National Action Plan (NAP) on Women, Peace and Security remain twice as active as countries without a NAP. 2. Of all participating delegations, 91% report that women recently occupied prominent functions related to peace and security in their parliament, thus contributing to enhancing women’s leadership in public debate on peace and security. 3. Parliamentary reports suggest that their engagement as legislative and oversight bodies has remained stable or slightly decreased in quantitative terms. Encouragingly, this engagement has nonetheless diversified in qualitative terms. Parliaments now report the development of legislation and resolutions on a greater variety of WPS themes and 36% mention using two or more monitoring mechanisms in overseeing the implementation of the WPS agenda, an increase from 24% in 2015. 4. Parliaments of NATO member countries have taken up NATO policy recommendations regarding dialogue with civil society organisations and cooperation with other NATO member states, with 17 delegations (61% of respondents) now reporting some activity in this area. The report includes full details and analysis of the survey responses as well as recommendations for parliaments in NATO member countries going forward.
  • Topic: Security, Defense Policy, Development, Gender Issues, Refugee Issues, Peacekeeping, Women, Gender Based Violence
  • Political Geography: Geneva, Europe, United Nations
  • Author: Jae Wook Jung, Kyunghun Kim
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: Benefits of financial market integration include cheaper and alternative op-tions of saving and borrowing for households and entrepreneurs. In the global financial market, asset choices for households widen so that individu-als can manage their idiosyncratic income risk more effectively. On the other hand, financial market integration makes investors who hold foreign assets more vulnerable to global financial shocks. In the recent financial crisis, finan-cial market distress which initially arose in the U.S. had an enormous impact on the peripheral countries. This example shows that the strong shock prop-agation occurs via integrated financial markets. The existing literature shows that financial market integration has a sizable impact not only on business cycles in the short run, but also on economic growth in the long run. However, there has been little attention to income distribution, specifically in related to the financial market integration. In this paper, we fill the void in the literature by focusing on the following two styl-ized facts: income inequality has been exacerbated in most countries over the past two decades, and the financial market has been integrated across coun-tries during the same period. In particular, we answer three research questions to investigate the relationship between the two facts. First, how does financial market integration affect income inequality? Second, how do financial market integration and financial market development interact to change income ine-quality? Third, what components do theoretical model need to explain the interaction effect of financial market development and integration on income inequality? We test hypotheses that the effect of financial market openness on inequality is conditional on the level of domestic financial market development when the financial market opens. An empirical study with panel data comprised of 174 countries for the period 1995-2017 finds that the overall effect of finan-cial integration on income inequality is nonlinear. Financial market integration creates the intensive and extensive margins of credit supply which may de-pend on the development level of financial market disproportionally. This paper uncovers a novel empirical evidence that financial market integration and financial market development interact to change income inequality. When other things are controlled, the effect of financial market integration on in-come inequality depends on financial market development. In a country with underdeveloped financial market, income inequality gets worse as financial market opens. On the other hand, when financial market is highly developed, the effect of financial market openness on income inequality is mostly insig-nificant in a statistical sense. The results are still valid with different measures of financial market development, integration, and income inequality. We check that the results are robust as an endogeneity issue among financial market development and integration is controlled. We also suggest some important structures for the conventional economic model to account for our empirical finding as theoretical implications. Based on these implications, extensions of the conventional small open economy model with financial constraints having suggested components such as het-erogeneous holdings of foreign assets across income and asset levels and entrepreneurial shocks will be necessary to understand an interaction of fi-nancial market openness and domestic market development on the distribu-tion of income in a country. Our finding also echoes that studying an eco-nomic mechanism in which economic growth, financial market outcomes, and inequality are endogenously determined.
  • Topic: Development, Income Inequality, Financial Markets, Economic growth, Integration
  • Political Geography: Global Focus
  • Author: Tamirace Fakhoury
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: Lebanon, a small republic of 6 million inhabitants, is both an ‘emigration prone’ country and a key destination for refugee movements and migrant workers. The presentation will specifically concentrate on Lebanon’s complex relationships with its diaspora communities. After reviewing Lebanon’s history of emigration, it will unpack the Lebanese diaspora’s complex interactions with war and post-war politics. While Lebanese diaspora communities are heavily engaged in their country’s development, economic, community and political activities, the presentation will show that their involvement does not challenge the nature of Lebanon’s sectarian-based model of governance. Rather the political fragmentation of Lebanese abroad replicates and perpetuates modes of sectarian mobilization. Understanding Lebanon’s fragmented “diasporic field” requires accounting for the state’s policy making towards its diaspora communities. The Lebanese state has so far not succeeded in developing an institutionalized policy making apparatus to channel Diasporas’ contributions nor has it extended substantial rights to its diaspora. It remains to be seen whether, and if so how, the recent extension of extraterritorial voting rights would augur a new era of diaspora involvement in Lebanese politics.
  • Topic: Development, Diaspora, Immigration, voting rights
  • Political Geography: Africa, Middle East, Asia, Lebanon, Beirut
  • Author: Felipe Antunes de Oliveira
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Centre for Global Political Economy, University of Sussex
  • Abstract: Latin America is once again passing through a crisis. After initially showing promising results, the neodevelopmentalist strategy adopted in Brazil and Argentina has reached its limits. The attempt at 21st century socialism in Venezuela derailed, tearing the country apart. Finally, the neoliberal path dutifully followed by Mexico, Chile, Colombia and smaller countries perpetuated social inequalities, and is now menaced by President Trump's protectionist turn. The current Latin American crisis goes much beyond the reversion of the so-called "Pink Tide". It affects all ideological colours, raising again an old theoretical-political question that stood in the core of dependency theory: is development even possible in Latin America? The key to answer this question – a concept of development that captures non-converging transformation – was not available to Frank, Marini, Bambirra and Dos Santos, among other dependency theorists. Too easily conflating development with catching-up, they reached a dead end. Indeed, as they could see, Latin America was constantly changing, but not in the expected ways. In this paper, I suggest that the concept of uneven and combined development allows for a renewed engagement with dependency theory's core problem, by representing mixed forms of development as the norm, not the exception.
  • Topic: Debt, Development, Economics, International Development, Economic growth
  • Political Geography: Brazil, Colombia, Latin America, Venezuela, Mexico, Chile
  • Author: Persis Taraporevala
  • Publication Date: 08-2018
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: The newly elected federal Government of India (GoI) launched the Smart Cities Mission (SCM) in 2015 with the stated purpose of improving the governance and infrastructural deficiencies that plague Indian cities. Missing, however, in the pageantry of the new programme is a cohesive understanding of a smart city. While the government documentation repeatedly implies infinite liberty for cities to self-define their understanding of ‘smartness’, the actions demonstrate that there is a larger idea of ‘smartness’ that the federal government seeks to implement. It is at this disjunction, between the rhetoric and practice of the Mission, that this paper finds its core research question – ‘What constitutes a smart city in India?’ Through a detailed reading of the government documentation of the top 99 cities, the paper argues that the there is a profound chasm between the professed objectives of the Mission and the strategies enacted to achieve these objectives.
  • Topic: Development, Government, Infrastructure, Social Policy, Urban
  • Political Geography: South Asia, India, Asia
  • Author: Shamindra Nath Roy, Jaya Prakash Pradhan
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: The surge in census towns (CTs) during Census 2011 has drawn a lot of attention to the ongoing and future dynamics of these in-situ urban settlements in India. Using the village level information from the previous and current censuses, the present study attempts to identify the villages that can be classified as a census town in 2021. While the prevailing dataset bears some obstacles for a neat identification of such settlements, it can be observed that a fairly high number of rural areas may be classified as CTs in future, which currently accommodates a population of 17.9 million. While the current nature of regional distribution of these areas may not vary much over the future, their areal characteristics over time portray multiple spatial processes undergirding India’s urban trajectory. A lot of these prospective CTs are also relatively prosperous than their current rural neighbourhoods, which reinforces the persistence of similar pattern of urban transformation in future.
  • Topic: Demographics, Development, Urbanization, Census, Rural
  • Political Geography: South Asia, India, Asia
  • Author: Partha Mukhopadhyay
  • Publication Date: 03-2018
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: It is now almost axiomatic that cities are the engines of growth. Historically, federal support programmes have focused on rural areas, but over the past fifteen years, the need to devise such programmes for urban local bodies has come to be recognised, with JNNURM in its various forms, being the most visible early manifestation. This trend has continued, even strengthened, in this government and among the menu of urban support programmes on offer from the Government of India, the vision of the city as the engine of growth is most clearly evident in the Smart City Mission, with its focus on area based development – like an engine within the city. Yet, even in the mainstream economics literature, while there is evidence for cities as places of higher productivity, there is less evidence for cities as drivers of growth – with learning being the primary driver and urban primacy being an important obstacle. The primary questions are whether cities are places of learning, whether there are identifiable mechanisms of such learning and the kind of city institutions – economic, social and political – that facilitate such learning. This paper will interrogate the empirical characteristics of such urban institutions in India in the context of the theoretical literature and learning mechanisms that emerge from international evidence. In particular, it will argue that the nature of the labour market, which is largely contractual, the transfer of rural fragmentation in social relations to cities and the absence of city-level political agency, all reduce the potential of the city as a location of learning economies. For cities to even have the possibility of being engines of growth, we need to ensure that drivers of these engines are in place and we have a mechanism to think about paths to follow.
  • Topic: Development, Government, Urbanization, Economic growth
  • Political Geography: South Asia, India, Asia