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  • Author: Alice Evans
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This paper re-examines why global collective action problems persist, and how to overcome them. Drawing on 140 interviews with campaigners, politicians, and businesses in 10 European countries, it suggests that many activists are stuck in a despondency trap. Never seeing radical reform, they lower their ambitions, and invest in more feasible but sub-optimal alternatives. This creates a negative feedback loop, in which the dearth of radical reform becomes self-fulfilling. But if reformists see advances at home and abroad, they may become more optimistic about collective mobilisation and break out of their despondency trap. This is shown by tracing the drivers of ground-breaking legislation. From 2018, large French firms must mitigate risks of environmental and human rights abuses in their global supply chains, or else be liable. This bill – the world’s first of its kind – was vociferously contested by businesses. But French campaigners and politicians persisted for four years, because they saw reasons for optimism. These include growing international support; public outcry; the French political culture (state intervention, and distrust of multinationals); together with a Centre-Left Government. Optimism galvanised relentless mobilisation. Legislative success in France then delivered a positive shock to activists across Europe, who were emboldened to launch similar campaigns and escape their despondency trap.
  • Topic: Political Activism, Reform, Business , State, Multinational Corporations, Legislation, Accountability
  • Political Geography: Europe, France
  • Author: Timothy Besley, Anders Jensen, Torsten Persson
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This paper studies individual and social motives in tax evasion. We build a simple dynamic model that incorporates these motives and their interaction. The social motives underpin the role of norms and is the source of the dynamics that we study. Our empirical analysis exploits the adoption in 1990 of a poll tax to fund local government in the UK, which led to widespread evasion. The evidence is consistent with the model’s main predictions on the dynamics of evasion.
  • Topic: Political Economy, Economy, Financial Crimes, Tax Systems
  • Political Geography: United Kingdom, Europe, Global Focus
  • Author: Hans Binnendijk, Daniel S. Hamilton, Charles L. Barry
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: The NATO Alliance faces simultaneous dangers to its east, to its south, and from a series of security challenges unbounded by geography, at a time when disparate allied responses to a host of challenges are tearing the seams of European unity and American political figures have even questioned the need for NATO. Europe risks turning from an exporter of stability to an importer of instability. The vision of a Europe whole, free and at peace is challenged by a Europe fractured and anxious. The Alliance must be revitalized for the new world rising before us. An overarching Alliance strategy must rely on NATO’s ability to provide a full spectrum of deterrent and defense tools to provide collective defense for all of its members, together with an ability to project stability and resilience beyond its borders using an array of tools for crisis management.
  • Topic: Defense Policy, NATO, International Cooperation, Nuclear Weapons, Partnerships, Alliance
  • Political Geography: Russia, Europe, North America
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Africa Center for Strategic Studies
  • Abstract: The dynamism of clandestine African migration flows continues to present criminal and violent extremist groups opportunities for exploitation.
  • Topic: Migration, United Nations, Diaspora, Violent Extremism, European Union
  • Political Geography: Africa, Europe, Southern Europe
  • Author: Maciej Bałtowski, Piotr Kozarzewski
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: The paper discusses the role of the state in shaping an economic system which is, in line with the welfare economics approach, capable of performing socially important functions and achieving socially desirable results. We describe this system through a set of indexes: the IHDI, the World Happiness Index, and the Satisfaction of Life index. The characteris-tics of the state are analyzed using a set of variables which describe both the quantitative (government size, various types of governmental expenditures, and regulatory burden) and qualitative (institutional setup and property rights protection) aspects of its functioning. The study examines the “old” and “new” member states of the European Union, the post-communist countries of Eastern Europe and Asia, and the economies of Latin America. The main conclusion of the research is that the institutional quality of the state seems to be the most important for creation of a socially effective economic system, while the level of state interventionism plays, at most, a secondary and often negligible role. Geographical differentiation is also discovered, as well as the lack of a direct correlation between the characteristics of an economic system and the subjective feeling of well-being. These re-sults may corroborate the neo-institutionalist hypothesis that noneconomic factors, such as historical, institutional, cultural, and even genetic factors, may play an important role in making the economic system capable to perform its tasks; this remains an area for future research.
  • Topic: Demographics, Economy, Economic growth, State, Economic Policy, Institutions, Trade, Welfare
  • Political Geography: Europe, Eastern Europe, Asia, Latin America, European Union
  • Author: Saliha Metinsoy
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Centre for Global Political Economy, University of Sussex
  • Abstract: Why does the International Monetary Fund (IMF) assign more stringent labor conditions in some cases and not others? This paper argues that the Fund’s bureaucratic organizational culture and neoliberal economic beliefs dictate its interpretation of international economics and predict the stringency of labor conditions in its programs. Particularly, the Fund staff envisage that lower unit labor costs would indirectly increase competitiveness, boost exports, and contribute to the balance of payments in fixed exchange rate regimes, where currency depreciation is not possible. To this end, the Fund assigns more stringent labor conditions in fixed regimes compared to floating ones. To test this theory, the paper uses a mixed method. It firstly demonstrates the association between exchange rate regimes and the stringency of labor conditions in Fund programs in a global sample. It then complements this analysis by showing particular organizational habits and beliefs at work in two cases, namely in Latvia and Hungary in 2008 under their respective IMF programs. Furthermore, the paper shows that distribution of income away from labor groups (i.e. lowered wages) is in fact by design in IMF programs in an attempt to increase competitiveness in fixed regimes.
  • Topic: Economics, International Monetary Fund, International Development, Neoliberalism
  • Political Geography: Europe, Eastern Europe, Hungary, Latvia
  • 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: Tarek A. Hassan, Laurence van Lent, Stephan Hollander, Ahmed Tahoun
  • Publication Date: 01-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: Using tools from computational linguistics, we construct new measures of the impact of Brexit on listed firms in the United States and around the world: the share of discussions in quarterly earnings conference calls on costs, benefits, and risks associated with the UK’s intention to leave the EU. Using this approach, we identify which firms expect to gain or lose from Brexit and which are most affected by Brexit uncertainty. We then estimate the effects of these different kinds of Brexit exposure on firm-level outcomes. We find that concerns about Brexit-related uncertainty extend far beyond British or even European firms. US and international firms most exposed to Brexit uncertainty have lost a substantial fraction of their market value and have reduced hiring and investment. In addition to Brexit uncertainty (the second moment), we find that international firms overwhelmingly expect negative direct effects of Brexit (the first moment), should it come to pass. Most prominently, firms expect difficulties resulting from regulatory divergence, reduced labor mobility, trade access, and the costs of adjusting their operations post-Brexit. Consistent with the predictions of canonical theory, this negative sentiment is recognized and priced in stock markets but has not yet had significant effects on firm actions.
  • Topic: Economics, Political Economy, Regional Cooperation, Brexit, Global Political Economy, Economic Policy
  • Political Geography: Britain, United States, United Kingdom, Europe, European Union
  • Author: Joseph Halevi
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: This paper analyzes the early stages of the formation of the Common Market. The period covered runs from the end of WW2 to 1959, which is the year in which the European Payments Union ceased to operate. The essay begins by highlighting the differences between the prewar political economy of Europe and the new dimensions and institutions brought in by the United States after 1945. It focuses on the marginalization of Britain and on the relaunching of French great power ambitions and how the latter determined, in a very problematical way, the European complexion of France. Because of France’s imperial aspirations, France, not West Germany, emerged as the politically crisis prone country of Europe acting as a factor of instability thereby jeopardizing the process of European integration, Among the large European nations, Germany and Italy appear, for opposite economic reasons, as the countries most focused on furthering integration. Germany expressed the strongest form of neomercantilism while Italy the weakest.
  • Topic: Economics, Political Economy, Global Political Economy, World War II, Common Market
  • Political Geography: United States, Europe, Germany, Global Focus
  • Author: Joseph Halevi
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: This essay deals with the contradictory dynamics that engulfed Europe from 1959 to 1979, the year of the launching of the European Monetary System. It focuses on how the macroeconomic frame- work of stop-go policies in the 1960s ended up privileging external – intra-European - exports at the expense of domestic demand. The paper offers a very tentative explanation as to why stop-go policies, by weakening domestic demand, did not put an end to the to the ‘long boom’ earlier as they should have. The French crisis of 1968-69 leading to the demise of De Gaulle is discussed at length, as is the renewal of the German export drive in the wake of a nominal revaluation of the D-Mark in 1969. Finally, the revival of labor struggles in Italy in the same year is put in the context of the structural weaknesses of the Italian economy as analyzed by the late Marcello de Cecco. The conclusion is that European countries had neither the political culture nor the institutional mechanisms to coordinate mutually advantageous policies. Their so-called cooperation was an exercise in establishing hegemony while defending the interests specific to the dominant economic groups of each country. The essay then deals with the formation of the EMS as an expression of efforts to establish and enforce economic dominance.
  • Topic: Economics, Markets, History, Monetary Policy, Capitalism, Common Market, Macroeconomics
  • Political Geography: Europe
  • Author: Joseph Halevi
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: The paper highlights the position of German authorities, showing that they were quite lucid about the fundamental weaknesses inherent in a process that separated monetary from fiscal policies by giving priority to the centralization of the former. Instead of repeating the well known critiques levelled against the EMU – for which readers are referred to the unsurpassed treatment by Stiglitz, the essay highlights the splintering of Europe in the way in which it has unfolded during the 1990s and in the first decade of the present millennium. In particular the early economic and political origins of the terminal crisis of Italy are located between the late 1980s and the 1990s. France is shown to belong increasingly to the so-called European periphery by virtue of a weakening industrial structure and persistent balance of payments deficits. The paper argues that France regains its central role by political means and through its weight as an active nuclear military power centered on maintaining its imperial interests and posture especially in Africa. The first decade of the present millennium is portrayed as the period in which a distinct German economic area had been formed in the midst of Europe with a strong drive to the east with an increasingly powerful gravitational pull towards the People’s Republic of China.
  • Topic: Economics, International Political Economy, Political Economy, History, Macroeconomics
  • Political Geography: Africa, China, Europe, Asia, Germany, Global Focus
  • Author: Servaas Storm
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: Using macroeconomic data for 1960-2018, this paper analyzes the origins of the crisis of the ‘post-Maastricht Treaty order of Italian capitalism’. After 1992, Italy did more than most other Eurozone members to satisfy EMU conditions in terms of self-imposed fiscal consolidation, structural reform and real wage restraint—and the country was undeniably successful in bringing down inflation, moderating wages, running primary fiscal surpluses, reducing unemployment and raising the profit share. But its adherence to the EMU rulebook asphyxiated Italy’s domestic demand and exports—and resulted not just in economic stagnation and a generalized productivity slowdown, but in relative and absolute decline in many major dimensions of economic activity. Italy’s chronic shortage of demand has clear sources: (a) perpetual fiscal austerity; (b) permanent real wage restraint; and (c) a lack of technological competitiveness which, in combination with an overvalued euro, weakens the ability of Italian firms to maintain their global market shares in the face of increasing competition of low-wage countries. These three causes lower capacity utilization, reduce firm profitability and hurt investment, innovation and diversification. The EMU rulebook thus locks the Italian economy into economic decline and impoverishment. The analysis points to the need to end austerity and devise public investment and industrial policies to improve Italy’s ‘technological competitiveness’ and stop the structural divergence between the Italian economy and France/Germany. The issue is not just to revive demand in the short run (which is easy), but to create a self-reinforcing process of investment-led and innovation-driven process of long-run growth (which is difficult).
  • Topic: Economics, Capitalism, Global Political Economy, Macroeconomics, Eurozone
  • Political Geography: Europe, Italy
  • Author: Vincenza Scherrer, Alba Bescos Pou
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Geneva Centre for Security Sector Governance (DCAF)
  • Abstract: Multilateral organizations are playing an important role in shaping the SSR agenda through the development of policy and guidance and by engaging in the provision of a wide range of SSR support on the ground. However, despite their significant engagement in this area, there is no predictability in terms of the type of support that multilateral organizations will take on. While policy frameworks concur that international support should be well coordinated, the support provided by these organizations tends to be compartmentalized in practice. As a result, considerable time is often lost while each organization separately assesses a conflict, maps what others are doing, and agrees on a division of labour. The report presents the findings of a multi-year research project on the approaches of the United Nations (UN), the African Union (AU), the European Union (EU), and the Organization for Security and Co-operation in Europe (OSCE) to supporting nationally-led SSR processes. The study aims at developing an empirically-based understanding of the roles and potential comparative advantages of these organizations in SSR support, as well as avenues for enhanced cooperation. For this purpose, the study examines the following three categories related to the role of multilateral organizations in SSR support: normative frameworks, institutional capacities, and operational practices. This report was commissioned from DCAF by the Security Sector Reform Unit (SSRU) of the United Nations Department of Peacekeeping Operations (DPKO).
  • Topic: Security, Human Rights, Peacekeeping, Reform, Multilateralism
  • Political Geography: Geneva, Africa, Europe, United Nations, European Union, African Union
  • 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: Niklas Bremberg
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Stockholm International Peace Research Institute
  • Abstract: Research suggests that states and societies around the world are increasingly confronted by climate-related security risks. These risks are unavoidably transnational in character, and intergovernmental organizations (IGOs) are instrumental in developing policy solutions and enhancing international cooperation. However, previous research highlights that knowledge about the conditions under which IGOs address climate security risks, and when they do so effectively, is incomplete. There is a need for further in-depth analysis of relevant IGOs in the field of climate security.
  • Topic: International Affairs
  • Political Geography: Europe
  • Author: Alessandro Colombo, Paola Magri
  • Publication Date: 03-2018
  • Content Type: Working Paper
  • Institution: Italian Institute for International Political Studies (ISPI)
  • Abstract: Under the pressure of the new US administration’s aggressive rhetoric, 2017 has revealed that traditional dynamics among great powers are back in the international context of the XXI century. Contrary to the most optimistic predictions and discourses of the early post-Cold War period, the “game of big powers” is regaining centre stage. This is mainly due to three intertwined processes: the growth and renewed assertiveness of potential United States’ global competitors such as Russia and China; the enduring crisis of multilateralism and global co-existence; and even more, the breakdown of the regional order into increasingly autonomous arenas, where regional powers are on the rise. The ISPI 2018 Report reflects upon this change, only partly offset by positive news coming from the global economy over the past year. The first part of the volume focuses on the global context; the second investigates the role Europe can play in a “world of big powers”; the last part addresses Italian foreign policy.
  • Topic: Geopolitics
  • Political Geography: Europe
  • Author: Maria Demertzis, Stavros Zenios
  • Publication Date: 04-2018
  • Content Type: Working Paper
  • Institution: Bruegel
  • Abstract: Since the financial crisis, EU countries' economies have recovered to the point that they are exiting their adjustment programmes. Institutional stability mechanisms have been improved at the European level, with the promotion of the banking union and the establishment of a European Monetary Fund, for instance. However, the authors argue that such crisis contingencies should include markets in their risk-sharing, which would require better coordination with institutions.
  • Topic: International Political Economy
  • Political Geography: Europe
  • Author: Alimar Lazkani
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: The Syrian Army has inherited a few of the norms and customs the French used for running army affairs following the French occupation. These did not include any provisions on regulating the army. After the Baa’th Party came to power, particularly after Hafez Assad had assumed office, the norms and customs guaranteeing minimum rights for army soldiers, non-commissioned officers, and officers faded gradually, leaving room for cronyism and allegiance to individuals and to the regime as the sole guarantor for the military to gain their rights. Leaders of military units became almost governors of their own units where nothing could take place without their blessings The Russians became fully in charge of the Syrian Army and started to instil rules and regulations that would ensure discipline and transform the army to a professional force capable of actual missions on the ground. Such rules included entrenching among Syrian soldiers, non-commissioned officers, and officers’ allegiance to Russian military officers and meant to subdue and prevent them from exercising their authority. This has established the Russians as the de facto leaders in the minds of members of the Syrian army. This has mainly shifted the responsibility for all the atrocities committed by the Assad forces under the Russian leadership to the Russians together with the regime’s officers and leaders. Despite their inability to make decisions, they are responsible, in terms of political structure and posturing, for all cases of genocide, chemical attacks, displacement, starvation and other violations. It has therefore become difficult in the Syrian context to separate between the Russian leadership and the Syrian Army, except in terms of differentiating between the leader and the follower, a divide that Russia has been working on consolidating in the media and in its diplomacy as an entity “assisting to achieve peace and combat terrorism”, while it undoubtedly deserves the description of “occupier” with its ability to run a lot of important issues on Syrian soil.
  • Topic: Diplomacy, Genocide, Political structure, Military Intervention
  • Political Geography: Russia, Europe, Middle East, Syria
  • Author: Bassma Kodmani
  • Publication Date: 10-2018
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: As long as military means prevailed in deciding the fate of Syria, the European Union could not alone induce any decisive change in the dynamics of the conflict, and Assad was vindictively seeking to prove that the European Union’s ability to influence the conflict was nil. Assad’s luck was that Putin was determined to prevent his fall and threw his full weight behind him to maintain his rule. When the guns finally fall silent, should the key countries of Europe and the EU itself simply accept as “a sad reality” the fact that the Syrian regime is back in full control of the country? Will they channel funds for humanitarian, post-emergency and early recovery purposes through the State’s financial system knowing full well that European tax payers’ money might be massively diverted to end in the pockets of Assad’s family and the kleptocracy around him,1 and serve to pursue his sectarian scheme of changing the demographics of Syria along religious and ethnic lines? Framing the discussion in terms of accepting Assad and rehabilitating him or not is disempowering for the EU. It assumes that military force alone is what determines the outcome of the conflict and the political fate of the country. If it follows this rationale, Europe would be annihilating everything it stands for; it would serve as a helping hand in Assad’s strategy to bury the civil society groups it helped organize and silence the democratic forces and all those within the different sectors of society who want a Syria that resembles Europe in terms of its values and its political system on the other side of the Mediterranean. The EU’s declared position that there will be no reconstruction without political transition in Syria is an honorable one, but this position still needs to be operationalized if the EU is to turn it into a policy and use its full clout to shape the resolution of the conflict.
  • Topic: Europe Union, Humanitarian Intervention, Military Intervention, Economic Policy
  • Political Geography: Africa, Russia, Europe, Syria
  • Author: Bassma Kodmani
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Arab Reform Initiative (ARI)
  • Abstract: Eight years of a high intensity conflict in Syria resulted in the forcible displacement of over half of the population of the country, some internally, while over six million others fled outside, causing the most severe refugee crisis the world has known since World War II. Little is written however on the estimated 18 million Syrians who have been living abroad for years, often decades. These Syrians emigrated in waves and settled in some 30 different countries worldwide, including in the most remote lands of South America and the Caribbean islands. Together with the refugees who fled as a consequence of the conflict, the number of Syrians outside the country is now three times higher than those living inside. This is not specific to Syrians. The number of Palestinians, Lebanese, Armenians and, of course, Jews scattered across continents is also three to four times higher than those inside Palestinian occupied territories, Lebanon, Armenia or Israel. But the Syrian conflict and its toll on civilians has undoubtedly triggered a new awareness of the existence of a strong Syrian diaspora which had, so far, kept a rather low profile. To the stories of suffering and misery about refugees, diaspora communities oppose inspiring stories of the successful integration of individuals and families in their host societies. The Syrian diaspora is no exception. Its story contrasts with the dire situation of desperate boat people and helpless refugees. In general, the Syrian diaspora is economically self-sufficient and composed of well-integrated communities spreading across the Americas, Europe, the Middle East and Africa. This report is the result of a collective effort to draw the first comprehensive picture of the de-territorialized Syrian people encompassing the old diaspora and the recent refugees. Co-authored by 13 experts, it describes the socio-economic and cultural features of the old diaspora communities (a subject largely under-researched by scholars) and captures the fast moving but very uneven process of transformation of recent refugees into a new component of the Syrian diaspora. Scholarly research and interviews with key members of the diaspora in their different living contexts reveal the considerable effort that the diaspora has mobilized to support Syrians during the conflict and its potential to be a major player in the reconstruction and development of Syria when the conflict ends.
  • Topic: Civil War, Diaspora, Immigration, Refugees, Revolution
  • Political Geography: Africa, Europe, Middle East, South America, Syria, North America