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11. Fiscal dependence on extractive revenues: Measurement and concepts

Author:
Kyle McNabb
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The aims of this paper are twofold. It firstly identifies and discusses the extent to which public revenues from natural resources are adequately captured in existing cross-country revenue databases, before exploring the extent to which such data can be used to estimate countries’ fiscal dependence on extractives. I first discuss key conceptual, definitional and measurement issues, before comparing the coverage of key existing databases, notably the UNU-WIDER Government Revenue Dataset (GRD). I then propose a new measure of fiscal dependence on extractive revenues (FDE). Whilst a number of existing studies have attempted to better quantify countries’ resource dependence, to the best of my knowledge none has yet proposed an indicator that ties the idea of dependence to any outcomes. The FDE simply calculates the extent to which extractive-producing countries can fund day-to-day government spending with non-extractive revenues. I find that the FDE is strongly correlated with existing measures of extractive dependence but can ultimately tell us more about countries’ fiscal positions and resulting vulnerability to shocks to revenue or government spending.
Topic:
Natural Resources, Tax Systems, Extractive Industries, and Economic Dependence
Political Geography:
Africa, South Asia, and India

12. Absolute or relative: perceptions of inequality among young adults in Mozambique

Author:
Giulia Barletta, Ines A. Ferreira, and Vincenzo Salvucci
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Different concepts of inequality lead to different positions in discussions about whether economic growth leads to increasing inequality. This study investigates how over 1,100 young adults in Mozambique perceive inequality and whether their perceptions are based on relative or absolute terms. It follows the line of work which examines attitudes (perceptions and preferences) towards different distributional axioms, and focuses on scale and translation invariance. Most of our respondents believe that inequality in their neighbourhood is too high and that circumstances beyond their control explain why some people are poor. We conclude that, while some respondents think in absolute terms, many do not agree with either the scale-invariance or the translation-invariance axioms, and there is great variation depending on the scenario presented to the respondents. We find some correlation between their way of thinking and gender, but no clear link with level of education and type of employment.
Topic:
Education, Inequality, Economic Growth, Youth, and Gender
Political Geography:
Africa and Mozambique

13. Migration out of poverty: The case of post-war migration in Mozambique

Author:
Maimuna Ibraimo and Eva-Maria Egger
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Internal migration plays an important role in the economic development of individuals, their families, and their country. This study describes Mozambique’s most common migration patterns from 1992 until 2017 using data from three population censuses. We focus on the most important moves between regions, provinces, and rural and urban areas. Further, we document the characteristics of migrants to assess selection patterns. In the final step, we estimate the relationship between migration and multidimensional poverty by applying inverse probability weighted regression adjustment (IPWRA). We find that migration in Mozambique was very high, especially between rural areas, after the war ended as people returned from displacement. Still, it is very low in the most recent period. Recently, migration has been the main contributor to the urbanization of the greater Maputo area (capital city). Migrants appear to be positively selected on education, and are, on average, less likely to be poor.
Topic:
Migration, Poverty, Displacement, Rural, Economic Development, and Post-Conflict
Political Geography:
Africa and Mozambique

14. Armed groups’ modes of local engagement and post-conflict (in)stability: Insights from the Ethiopian and Somali civil wars

Author:
Marine Gassier
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
What distinguishes post-war governments that succeed in establishing a stable political order and prevent recurring conflict from those that do not? This comparative study considers the specific threats that typically lead to the collapse of the post-conflict political order to offer new hypotheses on the conditions that affect post-war governments’ ability to sustainably restore stability. The threats considered include (i) fragmentation of the main actors in the conflict, (ii) inadequate demobilization, and (iii) enduring dependence of the post-war government on local brokers. Post-war regimes are more vulnerable to such risks after wars in which the dominant armed groups have established themselves by co-opting local power structures and drawing on existing socio-political networks, as this process redistributes power from the central to the local level. Empirically, this paper uses a novel dataset documenting the practices through which rebel groups may alter local power structures to highlight the connection between this wartime process of transformation and patterns of conflict recurrence. In addition, it contrasts the transition of the Tigray People’s Liberation Front from rebellion to government in Ethiopia in the 1990s with the trajectory of the armed movements in Somalia that also overthrew the incumbent military regime but then failed to establish a viable state.
Topic:
Conflict Prevention, Armed Forces, Conflict, Post-Conflict, and Instability
Political Geography:
Africa, Ethiopia, and Somalia

15. Ending the War in Sudan will be Difficult

Author:
Jędrzej Czerep
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
Fighting in Sudan between the regular army and the paramilitary Rapid Support Forces (RSF) has been ongoing since 15 April. The clashes are mainly taking place in the capital, Khartoum, and in the Darfur region, causing the destruction of infrastructure, a humanitarian disaster, and the displacement of the population. Although neither side has achieved military superiority or the support of the population, they are determined to continue fighting until the opponent is eliminated, which makes efforts to achieve a permanent ceasefire difficult. In the longer term, international support for a political solution to the crisis should aim to restore civilian control of the state.
Topic:
Conflict Resolution, War, Armed Forces, and Humanitarian Crisis
Political Geography:
Africa and Sudan

16. China Becoming Globally More Active in the Security Sphere

Author:
Marcin Przychodniak
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
China is expanding its potential to project power abroad. It includes legal changes, expansion of military infrastructure in other countries, and cooperation with partners in the Pacific. An example of their activity in the field of security is the operations of Chinese security companies, mainly in the Middle East and Africa. This should encourage NATO to further deepen cooperation with its members and partners, including with Pacific countries, as well as to strengthen the coordination of EU and U.S. policy towards developing countries.
Topic:
Security, NATO, Infrastructure, and Partnerships
Political Geography:
Africa, China, Middle East, Asia, and Asia-Pacific

17. South Africa-Russia Maintain Special Relations

Author:
Jędrzej Czerep
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
Although South Africa declares it is neutral regarding the war in Ukraine and offers mediation, it remains a de facto ally of Russia. This is due to the strong sentiment among the ruling elites for the period of cooperation with the USSR, its successor Russia and its activity and influence in this country, and the perception that BRICS will help elevate South Africa’s international importance. If Vladimir Putin visits Johannesburg as scheduled in August, the authorities of the state, which is party to the Rome Statute, will not be willing to fulfil their obligation to arrest him or may even leave the International Criminal Court.
Topic:
International Relations, Foreign Policy, BRICS, and Russia-Ukraine War
Political Geography:
Africa, Russia, Europe, Ukraine, and South Africa

18. An Overview of the African Peacebuilding Network’s (APN’s) Contribution to African Peacebuilding Literature

Author:
Godwin Onuoha
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Social Science Research Council
Abstract:
This working paper surveys, documents, and analyzes the contributions of APN scholars to the knowledge and practice of peacebuilding in Africa against the background of the 10th year anniversary of the APN program. It takes stock of the contributions and impact of the literature produced by APN scholars, particularly how these have brought different interdisciplinary perspectives and novel methodological approaches to bear on African peacebuilding. The paper systematically analyzes African perspectives on peacebuilding, debates between different schools of thought, provides an overview of different publications by APN scholars, and synthesizes the significance of these contributions to discourses on African and global literature on peacebuilding. As part of a broader intellectual project, the publications demonstrate how APN scholars have forged a nexus at which one can explore conflict, peacebuilding, media, gender, youth, boundaries and borderlands, land grabs, migration and refugees, faith-based initiatives, local/ communal cultures, identities, and COVID-19, among other topics. The publications under review transcend the narrow confines of the literature to engage in the complexities and multidimensional nature and contexts of African peacebuilding. In this regard, the publications mainstream African agency and views, particularly in the production of African knowledge in the field of peacebuilding.
Topic:
Conflict, Literature, Peacebuilding, and Transdisciplinarity
Political Geography:
Africa

19. Regional Development and Internal Migration Aspects of Structural Transformation: A Case Study of Senegal

Author:
Askar Mukashov
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This study investigates regional development and internal migration dynamics within the context of modern structural transformation in Sub-Saharan Africa. We develop a regionalized Computable General Equilibrium model that incorporates regionalized production, endogenous interregional migration, and distinct migrant households. Using this model, we simulate the structural transformation of Senegal as a case study. Our findings demonstrate that agricultural stagnation, exacerbated by global climate change, underlies the economic underperformance of rural regions and amplifies regional income disparities. Furthermore, our analysis shows that outmigration from stagnating rural provinces to a more developed capital region positively influences overall economic growth and mitigates regional income inequality. Nevertheless, these effects are limited, and a proactive approach to addressing income inequality across the nation's regions would require supporting agriculture, as it represents a more equitable policy than promoting nonagricultural sectors in both rural and capital regions.
Topic:
Climate Change, Migration, Economic Growth, Labor Market, and Regional Development
Political Geography:
Africa

20. China as an International Lender of Last Resort

Author:
Sebastian Horn, Bradley C. Parks, Carmen M. Reinhart, and Christoph Trebesch
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper shows that China has launched a new global system for cross-border rescue lending to countries in debt distress. We build the first comprehensive dataset on China’s overseas bailouts between 2000 and 2021 and provide new insights into China’s growing role in the global financial system. A key finding is that the global swap line network put in place by the People’s Bank of China is increasingly used as a financial rescue mechanism, with more than USD 170 billion in liquidity support extended to crisis countries, including repeated rollovers of swaps coming due. The swaps bolster gross reserves and are mostly drawn by distressed countries with low liquidity ratios. In addition, we show that Chinese state-owned banks and enterprises have given out an additional USD 70 billion in rescue loans for balance of payments support. Taken together, China’s overseas bailouts correspond to more than 20 percent of total IMF lending over the past decade and bailout amounts are growing fast. However, China’s rescue loans differ from those of established international lenders of last resort in that they (i) are opaque, (ii) carry relatively high interest rates, and (iii) are almost exclusively targeted to debtors of China's Belt and Road Initiative. These findings have implications for the international financial and monetary architecture, which is becoming more multipolar, less institutionalized, and less transparent.
Topic:
Debt, Emerging Markets, International Trade and Finance, Financial Crisis, Belt and Road Initiative (BRI), and Sovereign Debt
Political Geography:
Africa, China, and Asia