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301. The Russian Economy Is Muddling Through the Sanctions War

Author:
Oleg Buklemishev
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The transatlantic campaign of sanctions against Russia after its aggression of Ukraine is unprecedented in scale and scope, involving not only dozens of democratic states but also many non-state actors. It imposes considerable barriers and additional cost to the functioning of the Russian economy, which is bound to undertake deep restructuring with far-reaching consequences for production and consumption processes. The current appreciation of the rouble and inflationary slowdown are not signs of improvement but rather the direct effects of the stabilisation measures undertaken and, in fact, bode ill for further economic development. Numerous problems have started to surface this summer and optimistic assessments on the basis of initial resilience of the Russian economy look premature. Russia currently lacks a strategic plan of economic restructuring under the new environment. The future course of events will depend on whether the private sector leads this restructuring with minimal losses or the government imposes its normative prospective, tilting the result farther from economic equilibrium.
Topic:
Sanctions, European Union, Economy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

302. The Geopolitics of Clean Hydrogen – Opportunities and Challenges for Italy

Author:
Marco Giuli
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The emergence of clean hydrogen as an energy carrier promises to shape the future geography of the energy trade. Under growing contestation of interdependence, such a geography should be read through political lenses alongside commercial and technological ones. Generally, hydrogen is likely to reduce the geopolitical sensitivity of energy trade with respect to a fossil-fuel-based energy order by increasing the share of energy produced domestically, shifting geostrategic competition from a focus on grabbing resources to a focus on mastering technology and setting standards, and offering petrostates opportunities for economic diversification. Italy can exploit the opportunities offered by a hydrogen economy for enhancing its energy security and positioning in the regional energy trade. However, it should be careful with monitoring how geopolitical barriers such as regional instability may affect its hydrogen ambitions.
Topic:
Geopolitics, Trade, Hydrogen, Pipeline, and Energy
Political Geography:
Europe and Italy

303. A Scramble for Gas: Qatari LNG and EU Diversification Plans

Author:
Pier Paolo Raimondi
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Amidst a worsening geopolitical and energy crisis in Europe, the EU is scrambling to increase liquefied natural gas (LNG) imports as one component of its larger objective to reduce its overdependence on Russian gas. In 2021, the EU imported 155 billion cubic metres (bcm) of natural gas from Russia (140 bcm via pipeline and 15 bcm of LNG). Under its REPowerEU initiative, the European Commission aims to increase LNG imports to replace 50 bcm of Russian gas by the end of 2022.
Topic:
European Union, Geopolitics, Gas, Diversification, and Energy
Political Geography:
Europe and Qatar

304. The Implications of the Ukraine War for Israel

Author:
Efraim Inbar
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
For Israel, this is evidence that its self-reliance doctrine must be nourished with no illusions about foreign support in times of crisis. Moreover, Turkey probably sees NATO more positively since it borders Russia, pushing Ankara toward the West.
Topic:
Defense Policy, NATO, Diplomacy, Military Strategy, and Russia-Ukraine War
Political Geography:
Russia, Europe, Turkey, Ukraine, Middle East, and Israel

305. The “New Uzbekistan”: Turkey’s New Partner in the Pan-Turkist Organization of Turkic States

Author:
Hay Eytan Cohan Yanaroack
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Tashkent’s increasingly critical approach toward Russia and its deepening role in the Organization of Turkic States has positioned the country as Ankara’s most important bridgehead in Central Asia.
Topic:
Security, Diplomacy, Military Strategy, and Conflict
Political Geography:
Russia, Europe, Central Asia, and Turkey

306. The differences between Western and non-Western US allies in the Ukraine war

Author:
Jonathan Spyer
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
For mid-level regional powers, avoiding non-essential friction with a major power like Russia is seen as an imperative, particularly in a situation where consistent support from their US patron is by no means a given.
Topic:
International Relations, Security, Diplomacy, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, North America, and United States of America

307. Japan and the War in Ukraine

Author:
Eyal Ben-Ari
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Two weeks after the war began, Japan announced that its new National Security Strategy scheduled to be published this year would recategorize Russia from “partner” to “security challenge,” thus placing it alongside China and North Korea.
Topic:
Security, Defense Policy, Military Strategy, and Conflict
Political Geography:
Russia, Japan, China, Europe, and Asia

308. What is the agenda for the Eastern Mediterranean?

Author:
Efraim Inbar
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
A more coherent common foreign policy agenda is needed to enhance the strategic significance of the Athens-Jerusalem-Nicosia partnership.
Topic:
Security, Foreign Policy, Diplomacy, International Cooperation, and Peace
Political Geography:
Europe, Middle East, Israel, Greece, Cyprus, and Mediterranean

309. British Pugwash Note on the Absence of Sole Purpose in NATO’s 2022 Strategic Concept

Author:
Pugwash Conferences on Science and World Affairs
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Pugwash Conferences on Science and World Affairs
Abstract:
In June 2022 NATO members adopted an updated Strategic Concept (the preceding Concept having been adopted in 2010). There was reason to hope that in the updated Concept NATO members would envisage using nuclear weapons only in response to their first use by a nuclear-armed adversary. That reason lay in remarks made by President Biden when he was Barack Obama’s Vice-President. Notably in January 2017 he said: “Given our non-nuclear capacities and the nature of today´s threats, it is hard to envision a plausible scenario in which the first use of nuclear weapons by the United States would be necessary or would make sense; deterring, and, if necessary, retaliating against a nuclear attack should be the sole purpose of the US nuclear arsenal”. The adoption of Sole Purpose would be a useful nuclear risk reduction measure. Leaving open the option of using nuclear weapons in response to a non-nuclear attack on NATO entails the risk of nuclear escalation if the attacker is nuclear armed; and nuclear escalation entails the risk of global nuclear annihilation.
Topic:
Security, Defense Policy, NATO, Regional Cooperation, and Military Strategy
Political Geography:
Europe and North America

310. Russia’s threat against the Jewish Agency is a Bargaining Measure

Author:
Daniel Rakov
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Israel should prepare for a prolonged crisis. The Russians might want to delay or accelerate the legal process to exploit the elections period. The verdict will not constitute the final word. The government is advised to navigate the crisis behind the scenes: publicity might accelerate escalation.
Topic:
Security, Defense Policy, Military Strategy, Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, Israel, and North America

311. Ukraine War Distracts US from China, Legitimizes Nuclear Bombs

Author:
Efraim Inbar
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Russia’s invasion of Ukraine is distracting the US from the Chinese threat and erodes the nuclear taboo.
Topic:
Security, Defense Policy, Conflict, Rivalry, and Russia-Ukraine War
Political Geography:
Russia, China, Europe, Ukraine, Asia, North America, and United States of America

312. The Libyan EEZ Challenge: Israel Should Reject Turkey’s Claims in the Eastern Mediterranean

Author:
Eran Lerman
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
The delineation of the Libyan and Turkish Exclusive Economic Zones was and remains essential not only for Israel and Egypt but also for others in the region who seek to curtail Erdogan’s ambitions and shore up Egypt’s economic and political stability.
Topic:
Security, Diplomacy, Territorial Disputes, and Conflict
Political Geography:
Europe, Turkey, Middle East, Israel, and Mediterranean

313. It is in America’s Interest to End the War in Ukraine

Author:
Efraim Inbar
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Continuing the war harms the West and endangers its battle to attain other critical strategic objectives.
Topic:
Defense Policy, Military Strategy, Hegemony, and Strategic Interests
Political Geography:
Russia, Europe, Ukraine, North America, and United States of America

314. Ten Recommendations for Germany’s Feminist Development Policy

Author:
Ina Friesen and Alma Wisskirchen
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
In early 2022, Germany’s development minister Svenja Schulze announced the adoption of a feminist development policy. With this announcement, Germany joins a growing group of governments that have adopted or declared the adoption of an explicitly feminist perspective in their external policies. Drawing on these governments’ policies and the observations and recommendations by civil society and researchers, this Discussion Paper outlines ten key recommendations for Germany’s first feminist development policy. The first three recommendations focus on the conceptual foundation of the policy and lay out the importance of 1) an inclusive definition of gender, 2) a clarification of the feminist approach and the policy’s overall goal as well as 3) the need for an intersectional approach. The second set of recommendations concerns the implementation of the policy and stresses the importance of 4) a permanent cooperation with gender-focused and feminist organisations and 5) the necessity to increase funding for gender-related objectives in general and 6) for feminist organisations in particular. Further recommendations include 7) widening the range of sectors that target gender equality through a transformative approach and context-sensitive programming and by providing mechanisms to monitor and evaluate the implementation of the strategy’s goals, objectives and activities. The last three recommendations emphasise institutional aspects and the importance of 8) creating an institutional environment that best supports gender equality within the development ministry and its main implementing organisations, 9) the necessity of a coherent feminist approach between the different ministries, and 10) the importance of addressing possible challenges the ministry might face in the implementation of its feminist development policy.
Topic:
Development, Inequality, Feminism, and Gender
Political Geography:
Europe and Germany

315. The EU-CEAP Impacts on Developing Countries: An Analysis of the Plastic Packaging, Electric Vehicles and Batteries Sectors

Author:
Jenny To
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The European Union Circular Economy Action Plan (EU-CEAP) is key to transitioning to a circular economy and climate neutrality under the EU Green Deal – and developing and emerging countries (DECs) play important roles. They are essential for primary material chains, for example, for electric vehicle batteries. DECs are also part of secondary material chains, and Europe relies on them to recycle its plastic packaging. Despite the crucial roles that DECs play in Europe’s transition to a circular economy, literature and policy discourses have not yet examined the EU-CEAP’s impact. This discussion paper fills this gap by outlining the EU-CEAP’s challenges and opportunities for DECs and presents recommendations for development cooperation.
Topic:
Climate Change, Development, European Union, Batteries, Electric Vehicles, and Plastic
Political Geography:
Europe

316. Just Transitions: A Review of How to Decarbonise Energy Systems While Addressing Poverty and Inequality Reduction

Author:
Daniele Malerba
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Germany promotes “just transition” as a guiding principle for the global transition to a socially and environmentally sustainable economy that incorporates the necessary climate, environmental and energy policy measures. This includes the urgent transformation of economies to become emission neutral while ensuring a process whereby poverty and inequality are reduced, and no one is left behind. The German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), the World Bank and the German Federal Ministry for Economic Cooperation and Development (BMZ) worked together to explore ways to implement the concept of just transition in German development cooperation. The two papers that have resulted from this process outline approaches to a “just transition for all” and highlight its potential to reduce poverty and inequality (SDG 1 and SDG 10). In recent decades, the interdependencies between social and ecological development have become clear: negative effects of climate change particularly affect vulnerable and marginalised groups living in poverty. At the same time, social inequalities contribute to an exacerbation of climate change. A just transition must effectively address the consequences at the international, national, regional and local levels. Both papers provide an overview of existing approaches and challenges to foster a “just transition for all”. They offer different but complementary perspectives on an increasingly important complex of topics. This first paper, by DIE, takes a broad perspective by considering the decarbonisation of the energy sector as a whole, outlining the connections between just transition, poverty and inequality, and exploring how to ensure a just transition (for both workers and consumers) through the use of different social protection mechanisms. It argues that it is possible to make energy transitions just, but that properly designed combinations of socio-economic and climate policies are needed. A second paper, by the World Bank, zooms in on the transition away from coal. It lays out key social and community impacts resulting from the decommissioning of coal assets, based on experience gained from World Bank operations and from industrialised countries, and articulates an enhanced approach to supporting the coal transition. Both provide practical recommendations for international development cooperation in general, and for German development cooperation in particular.
Topic:
Development, Poverty, Inequality, Economy, and Decarbonization
Political Geography:
Europe and Germany

317. Mine Action as a Confidence- and Security-building Measure in the OSCE Region

Author:
Claudia Ditel
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
Mine action has the potential to incentivise confidence- and security-building measures (CSBMs), because it could contribute to development and reconciliation through the creation of communities of practice among individuals from civil society and at the grassroots level as part of post-conflict reconstruction. Although many Organization for Security and Cooperation in Europe (OSCE) participating States are contaminated by mines, mine action as a CSBM has scarcely been included in peace negotiations, because it is thought that it might hinder the peace process. Yet mine action, if “depoliticised”, could be implemented independently of peace negotiations through the creation of spaces for cooperation in demining projects of common interest to rival communities. The OSCE is well placed to propose these strategies, especially in Eastern Ukraine, Georgia, and Nagorno-Karabakh, which are not only affected by protracted conflicts with limited engagement of the population in the peace process but are also highly contaminated by mines.
Topic:
Security, Military Strategy, Violence, and Landmines
Political Geography:
Europe

318. Blockchain Technology: An Innovative Policy Tool for Enhancing Conventional Arms Control and Verification

Author:
Nicolo Miotto
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
Blockchain represents an unprecedented opportunity for enhancing conventional arms control (CAC) and verification. Based on the principles of transparency, verifiability, and predictability, this state-of-the-art technology could build confidence and facilitate the implementation of arms control mechanisms. Blockchain-based so-called “smart contracts” have advantageous practical implications for CAC. They could improve the verification of countries’ compliance with their CAC obligations by enhancing monitoring procedures and could strengthen arms export controls by improving treaty signatories’ ability to monitor weapons and ammunition supply chains. Reinforcing the Organization for Security and Cooperation in Europe (OSCE) framework for conventional ammunition control with a permissioned blockchain would provide greater confidentiality and improve monitoring and data verifiability, thus strengthening the OSCE’s CAC regimes.
Topic:
Security, Arms Control and Proliferation, Science and Technology, Innovation, and Blockchain
Political Geography:
Europe

319. Commitment to Control Weaponised Artificial Intelligence: A Step Forward for the OSCE and European Security

Author:
Anna Nadibaidze
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
The global debate on weaponised artificial intelligence (AI) often focuses on futuristic “killer robots”, which risks overlooking the fact that these technologies are already part of the security landscape. Diminishing human control over the use of force and the differences in states’ discourse pose a considerable risk for European security and stability. The impact of AI is not inevitable, and states should address this issue through political means, such as a political declaration with a commitment to ensuring human control over the use of force. With its inclusive membership, the Organization for Security and Cooperation in Europe (OSCE) can and should become the platform through which its participating States can take a step forward in the global debate on weaponised AI.
Topic:
Security, Regional Cooperation, Military Strategy, Artificial Intelligence, and OSCE
Political Geography:
Europe

320. “Open” Telecom Networks (Open RAN): Towards a Reconfiguration of International Competition in 5G?

Author:
Mathilde Velliet
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
In line with the anti-Huawei diplomatic campaign of the Trump and Biden administrations, the United States has promoted an alternative: Open RAN, a concept defined by "open" network architectures. At the intersection of 5G geopolitics and standards, what risks and opportunities does Open RAN present for European technological sovereignty? The Radio Access Network (RAN) is the radio part of a mobile telecommunications system that enables the connection between a mobile device (such as a phone or computer) and the core network. While traditionally a single vendor (such as Huawei, Ericsson, or Nokia) provides a “proprietary” or “closed” solution for this part of the network, Open RAN (Open Radio Access Network) is a concept describing disaggregated architectures that divide the RAN into several bricks connected by open interfaces. The objective is to allow the operator to buy these hardware and software bricks from various suppliers, and to choose freely the most suitable option for each part. In the current context of a concentrated 5G market, dominated by three major manufacturers and even facing the risk of an Ericsson-Nokia duopoly with the exclusion of Huawei from many countries, telecom operators emphasize the flexibility and diversification of suppliers allowed by Open RAN, which would allow both more innovation and cost reduction. In line with its diplomatic campaign against “unreliable” Chinese suppliers, the United States has actively promoted Open RAN as an alternative. However, Open RAN seems far from being a panacea for Europe: in addition to the difficulties that remain in terms of maturity, security, performance and transparency of the specification process, it risks increasing European dependence on foreign suppliers. Although Huawei is not part of the international bodies working on Open RAN (such as the Telecom Infra Project or the O-RAN Alliance), many companies close to the Chinese political and military authorities are. Beyond the question of supplier security, American lobbying is linked to the commercial opportunity that Open RAN represents for American companies, currently leaders in the cloud, software and generic hardware components…even though they do not have a major 5G champion. Open RAN is therefore an issue at the crossroads of the geopolitics of 5G and standards, to which the European Union is beginning to provide a common political and analytical response, despite the diversity of positions among member states.
Topic:
5G, Telecommunications, and International Competition
Political Geography:
China, Europe, Asia, and United States of America

321. The European Union Industrial Strategy: Reconciling Competition and Geoeconomic Challenges

Author:
Marie Krpata
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
The EU’s basic assumptions, on which it grounds its economic and trade power, are being steadily cast into doubt. The EU’s main trade partners, the US and China, increasingly set their sights on securing their supply chains, which may further a potential decoupling. This shift is likely to be accelerated in the context of growing geopolitical instability. Multilateralism and international trade principles are increasingly challenged by a weakening of international institutions and the recourse to asymmetric market practices, while technological leadership will be key in the struggle for global leadership. Being fundamentally built on economic openness, the EU is comparatively ill-equipped to respond to these developments. Its biggest economy, Germany, is prompted to assert itself if it does not want to lose in competitiveness. While the EU is developing strategies, policies, and instruments to adapt to this change of circumstances and increase its resilience, a shift in mentalities, leaving behind political and economic short-term interests, will be necessary.
Topic:
European Union, Trade Policy, Industry, Supply Chains, Geoeconomics, and Competition
Political Geography:
Europe and Germany

322. Closing the Gap Between Citizen Participation and Mainstream Politics

Author:
Richard Youngs
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Over the last several years, citizen assemblies, juries, and panels have spread across Europe. Most of these have been run at the local or subnational level, a few at the national or even transnational level. Most have been called by public authorities, a smaller number created in more bottom-up fashion by civic groups. They all share a distinguishing feature: citizens are randomly selected to participate in debates about specific policies. In aggregate, these initiatives can be referred to as selection- or sortition-based participation. As this wave of sortition-based participation consolidates, attention has turned to its wider political effects. While there is generally much to celebrate about this rise in participation, there remains a widespread feeling that the practice is not yet strongly enough embedded in mainstream politics to move the needle on overall democratic quality. Indeed, experiences suggest that standard channels of decisionmaking and political debate often undercut the influence of sortition initiatives. This paper examines how sortition-based deliberation might be embedded more firmly and effectively within other democratic arenas. Its focus is not on the design and process of sortition forums themselves—many other publications have offered this level of evaluation in recent years.1 Rather, it explores options for building sortition-based forms of participation more fully into longer-standing channels of mainstream politics. If selection-based citizen participation is to have wider relevance to democratic renewal, it is important to identify the political factors that can either stifle or oxygenate its potential. This paper assesses what steps might be taken better to prevent politics from pushing sortition-based participation to the margins and what can be done to infuse politics more widely with the benefits of such participation. The first section of this paper distinguishes between two levels of embedding sortition-based participation. One relates to a relatively focused agenda of so-called institutionalization; the other to more general shifts in political dynamics. The paper then considers progress and obstacles to embedding sortition-based participation at each of these two levels—while suggesting that it is the second, wider political understanding that is especially important. The final section offers five guidelines for assessing how the gap between sortition-based participation and other sites of political activity might in the future be narrowed.
Topic:
Politics, Citizenship, and Participation
Political Geography:
Europe

323. Russia’s Wartime Cyber Operations in Ukraine: Military Impacts, Influences, and Implications

Author:
Jon Bateman
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
This paper examines the military effectiveness of Russia’s wartime cyber operations in Ukraine,1 the reasons why these operations have not had greater strategic impact, and the lessons applicable to other countries’ military cyber efforts. It builds on previous analyses by taking a more systematic and detailed approach that incorporates a wider range of publicly available data. A major purpose of this paper is to help bridge the divide between cyber-specific and general military analysis of the Russia-Ukraine war. Most analysis of Russian cyber operations in Ukraine has been produced by cyber specialists writing for their own field, with limited integration of non-cyber military sources and concepts. Conversely, leading accounts of the war as a whole include virtually no mention of cyber operations.2 To begin filling the gap, this paper places Russian cyber operations in Ukraine within the larger frame of Moscow’s military objectives, campaigns, and kinetic activities.
Topic:
Cybersecurity, Military, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

324. Will France’s Africa Policy Hold Up?

Author:
Corentin Cohen
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
During his first term, French President Emmanuel Macron sought to revitalize his country’s diplomatic outreach to countries throughout Africa. Some aspects of this pivot were designed to more directly address the legacy of French colonialism in Francophone countries. He also sensed that the growing stature of non-Western powers like China has given African counterparts greater latitude to pursue ties amid heightened diplomatic competition among a host of other countries both in Europe and elsewhere. In pursuing this strategy, Macron has sought to promote a vision of French diplomacy with Africa through greater foreign aid and more robust people-to-people ties grounded in a spirit of partnerships between equals. While Macron’s efforts have created an opening for renewed relationships, this pivot has not been as seamless as he had hoped. Bureaucratic inertia and stovepiping in French foreign policy circles have at times meant that implementation of these policies has lagged. In certain cases, Macron’s own nationalistic appeals during his recent reelection bid have appeared to undercut his attempts to make amends for France’s troubling colonial history. Meanwhile the French president’s attempts to deepen economic, people-to-people, and security ties in more equitable ways have fallen short of lofty expectations, with past practices proving harder than expected to jettison. For Macron’s ambitions for French relations with African countries to keep their momentum, the president and his team must take an earnest look at what has worked well and what can still be improved.
Topic:
Foreign Policy, Agriculture, Diplomacy, Partnerships, Emmanuel Macron, and Degrowth
Political Geography:
Africa, Europe, and France

325. My Country, Right or Wrong: Russian Public Opinion on Ukraine

Author:
Denis Volkov and Andrei Kolesnikov
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
When Russia launched its invasion of Ukraine on February 24, Western governments, including the United States, immediately condemned what they described as “Vladimir Putin’s war.”1 Surely, this formulation was no accident. It was aimed, first and foremost, at drawing a distinction between the actions of the Kremlin and the attitudes of ordinary Russians. There was optimism that ordinary Russians would not countenance a war against a neighboring country.2 But hopes of Russian grassroots opposition to the war were swiftly dashed. Indeed, public opinion polls have consistently shown overwhelming support (70 percent or higher) for what Moscow calls its “special military operation” in Ukraine. Contrary to expectations, Putin’s popularity has also seen a boost, similar to what happened in the immediate wake of the 2014 annexation of Crimea. Partly in response to these indicators, figures like Ukrainian President Volodymyr Zelenskyy have called for a visa ban for all Russian passport holders, with an exception for people whose safety is at risk or who are vulnerable to political persecution.3 According to Zelenskyy, “[T]he most important sanctions are to close the borders—because the Russians are taking away someone else’s land” and Russians should “live in their own world until they change their philosophy.” He added, “The population picked this government and they’re not fighting it, not arguing with it, not shouting at it.” Such sentiments are echoed in calls by some European politicians, such as Finnish Prime Minister Sanna Marin, for an EU ban on tourist visas. “It’s not right that at the same time as Russia is waging an aggressive, brutal war of aggression in Europe, Russians can live a normal life, travel in Europe, be tourists. It’s not right,” Marin said in mid-August.4 At the same time, a careful reading of popular Russian attitudes toward the war reveals important nuances that all too often are overlooked. First and foremost is the fact that rather than consolidating Russian society, the conflict has exacerbated existing divisions on a diverse array of issues, including support for the regime. Put another way, the impression that Putin now has the full support of the Russian public is simply incorrect. A more careful reading of sociological data, including conversations with focus group participants and quantitative research, presents a far more complex picture of Russian society.
Topic:
Public Opinion, Conflict, Vladimir Putin, Society, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

326. Iranian Public Opinion on the War in Ukraine and Nuclear Options

Author:
Nancy Gallagher, Ebrahim Mohseni, and Clay Ramsay
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Center for International and Security Studies at Maryland (CISSM)
Abstract:
The current survey is an Update, rather than a comprehensive check on Iranian public attitudes. This interim report covers findings on two unfolding security challenges – Iran’s nuclear program and the war in Ukraine – and their potential interconnections.
Topic:
Nuclear Weapons, Military Strategy, Public Opinion, and Conflict
Political Geography:
Europe, Iran, Ukraine, and Middle East

327. So close and yet so far: the ability of mandatory disclosure rules to crack down on offshore tax evasion

Author:
Elisa Casi, Mohammed Mardan, and Rohit Reddy Muddasani
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We study the short-term effect of the introduction of the mandatory disclosure programme for aggressive tax arrangements by focusing on the one introduced in May 2018 under Council Directive 2018/288/EU (or DAC6). Employing bilateral data on cross-border deposits, we study the effect of this new disclosure requirement on cross-border tax evasion. Our results show a reduction of cross-border deposits in EU countries with strong enforcement, captured by large monetary penalties for misreporting. At the same time, we document a relocation of income and wealth to countries with limited intermediary reporting obligations. Finally, we detect a shortterm increase of US$14 billion in cross-border deposits held in countries offering citizenship/residence by investment programmes, suggesting the use of these schemes as regulatory arbitrage to circumvent the disclosure mandated under DAC6. We provide timely and relevant evidence contributing to the debate on international administrative cooperation to reduce cross-border tax evasion.
Topic:
European Union, Finance, Banking, Tax Evasion, and Administrative Cooperation
Political Geography:
Europe and Global Focus

328. Will economic statecraft threaten western currency dominance? Sanctions, geopolitics, and the global monetary order

Author:
Carla Norrlof
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Atlantic Council
Abstract:
The return of great power rivalry is stoking renewed fears of weakening Western currency dominance. Financial sanctions are becoming the preferred economic tool for accomplishing geopolitical goals. These instruments are especially popular with the United States and Europe. In response, rival great powers, notably China and Russia, are diversifying away from Western currencies and developing counterstrategies to maintain economic and foreign policy autonomy. As other countries are hit by increasingly punishing Western sanctions, the incentive to join Russia and China’s alternative international monetary order increases. New analysis, published in this report, shows early signs that some countries may be trying to diversify away from the dollar. A growing circle of countries attempting to evade the Western-centric financial and currency order may over time erode the dollar and the euro’s sizeable lead, though will likely fall well short of ending their global dominance. This report analyzes these trends and quantifies the extent of reserve diversification following Russia’s 2022 war on Ukraine. It also assesses the polarity of the international currency order since the onset of the euro in 2002. Reserve diversification out of the dollar, and into the euro, has been modest, though Chinese renminbi reserves grew after Russia’s February offensive in Ukraine. Dollar unipolarity declined acutely in 2017 as the number of countries sanctioned by the United States increased and the US President Donald J. Trump threatened to revoke alliance commitments. Using economic statecraft while retaining global economic influence will require the United States to keep its economic house in order and allies close, if the current unipolar currency order is to survive.
Topic:
Economics, Monetary Policy, Sanctions, and Geopolitics
Political Geography:
China, Europe, and Asia

329. Privacy in cross-border digital currency: A transatlantic approach

Author:
Giulia Fanti and Nadia Pocher
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Atlantic Council
Abstract:
As a growing number of countries explore Central Bank Digital Currencies (CBDCs) for the domestic context, multi-country cross-border CBDCs pilots are also proliferating. Cross-border CBDCs could make cross-border payments faster, cheaper, and simpler. However, for any cross-border CBDC to unlock these benefits and be widely adopted, it must address key concerns, chief among them risks around privacy and transparency of data. This article illustrates how various technical design choices can affect the privacy and transparency of cross-border CBDCs. For instance, architectural choices about the structure of a cross-border CBDC and representational choices about how transactions are encoded in the underlying software can have far-reaching implications for privacy and transparency—both in a domestic context and for cross-border transactions. Many of the cross-border CBDC pilot studies to date have (understandably) adopted the technical designs provided by enterprise distributed ledger platforms. However, some of these designs make tradeoffs regarding privacy, efficiency, and/or security. Whether these tradeoffs are acceptable is a matter of policy, and requires coordination between different regulators and central banks. In view of these implications—and some of the corresponding tensions that arise—we argue that the US and the EU should work together alongside other partners to create the technological and regulatory environment to enable privacy-preserving cross-border CBDCs. The US and the EU should seize the emergence of CBDCs as an opportunity to finally establish a transatlantic privacy framework, and clarify its interplay with the prevention of money laundering and financing of terrorism (AML/CFT/CPF). More broadly, both should harness the clout of their combined financial systems to develop digital asset regulation and standards with a global reach and democratic values. These regulatory developments would not only streamline regulatory guidelines, but they could also directly impact and ease the technical development of a cross-border CBDC.
Topic:
Privacy, Currency, Transatlantic Relations, and Digital Currency
Political Geography:
Europe, Canada, North America, and United States of America

330. Europol-Israel Police Operational Agreement: Enhanced cooperation with EU in combatting crime and terrorism

Author:
Maya Sion-Tzidkiyahu
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Mitvim: The Israeli Institute for Regional Foreign Policies
Abstract:
The Israeli Police and Europol, the European Union’s police agency, have been conducting negotiations over an operational agreement for several years. In September there was signing of end of negotiations, but in December the Council of the European Union decided to re-open the talks. In a global world where crime and terrorism cross borders, countries need to strengthen cooperation among themselves. Such inter-police cooperation takes on a unique form in the EU. The operational agreement between Israel’s Police and Europol can have considerable importance in contributing to the parties’ ability to deal with terror and crime. This paper will review Europol, its cooperation with Israel’s police and other enforcement agencies, including the negotiated agreement, the motivations for upgrading relations with Israel and the benefits and challenges of doing so.
Topic:
Crime, International Cooperation, Terrorism, Treaties and Agreements, European Union, Police, and Europol
Political Geography:
Europe, Middle East, Israel, and Palestine

331. Leadership in European Digital Policy: Future Role and Direction for the D9+ Group

Author:
Fredrik Philipp, Philipp Lamprecht, Erik van der Marel, Vanika Sharma, and Elena Sisto
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
In this paper, we will discuss how Europe makes digital policy and how its digital economic performance can be improved. The focus is on the D9+ initiative. Launched in 2016 on the initiative of former Swedish trade minister, Ann Linde, nine countries with a particular interest in matters of the digital economy met to learn from each other and seek common ground on policy issues. On occasions, the D9+ Group has issued joint statements relating to regulatory initiatives in the EU. Since its founding, the group has expanded, and now also includes “guest countries”, but it remains fundamentally an initiative of small and mid-sized open-oriented economies with a strong interest to exploit the economic power of digitalisation and new emerging technologies. The D9+ initiative is important and this paper argues that its work should expand and focus on expanding the scale and scope of digital technological change in the European economy while addressing risks that an over-powering regulatory approach to digital policies in Europe reduces the benefits of the digital transformation. Importantly, the D9+ Group has a special interest to promote digital openness and avoid the agenda for technology sovereignty and strategic autonomy sliding into digital protectionism. Finding the right direction of policy is of fundamental importance for Europe’s long-run economic growth, and the D9+ Group should take a leadership role.
Topic:
Digital Economy, Leadership, Economic Growth, and Digital Policy
Political Geography:
Europe

332. A Compass to Guide EU Policy in Support of Business Competitiveness

Author:
Fredrik Erixon, Oscar Guinea, Philipp Lamprecht, Vanika Sharma, Elena Sisto, and Erik van der Marel
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The EU agenda for improving competitiveness is missing in action. Economic competitiveness has been a central plank in the development of the European Union – a relentless quest for policies that lead to more prosperity and that make European companies in world markets more successful. However, since the end of the Lisbon Agenda in 2010, economic competitiveness seems to have fallen off the EU map. This Agenda had its flaws, but it rightly sought to make Europe “the most competitive and dynamic knowledge-economy in the world”. The impression now is that Europe is on the retreat and the current European Commission is the first without a strategy to strengthen competitiveness at the EU level since the early 1990s. Hopefully, a course correction may now be on its way. Ursula von der Leyen has promised a “competitiveness check” on new EU policy. With the strong economic headwinds facing Europe and the world, the EU needs to pursue structural economic reforms that raise productivity and growth.
Topic:
European Union, Business, Regional Economy, and Competition
Political Geography:
Europe

333. The Business Case for the Sustainable Development Goals: An Empirical Analysis of 21 Danish Companies' Engagement with the SDGs

Author:
Michael W. Hansen, Henrik Gundelach, and Erik Johnson
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
This paper explores why business engage with the SDG agenda, with a view to understanding the business case for the SDGs. Building on and extending the responsibility literature’s discussion of the business case for responsibility, the paper develops a conceptual framework for analyzing why business engage with the SDGs. This framework is employed to analyze why a sample of 21 Danish companies decided to engage with the SDG agenda. The analysis finds that most companies view the SDGs as a platform for achieving rather conventional business goals such as mitigating risk, saving costs, and differentiating products and services. However, in a few cases, companies use the SDGs as a lever for carving out uncontested positions in future markets. The paper concludes that companies overwhelmingly view the SDGs as a business opportunity rather than as a business responsibility, something that fundamentally may distinguish the SDG agenda from previous responsibility agendas. The paper fills a gap in the extant literature on business responsibility by developing and validating a classification of the business case for the SDGs based on economic value drivers, and by deepening the empirical understanding of, what precisely this business case may be.
Topic:
Development, Economics, Sustainable Development Goals, Business, and Social Responsibility
Political Geography:
Europe and Denmark

334. Cyberattacks Integral to Russia's Political and Military Strategies

Author:
Aleksandra Kozioł
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
To destabilise democratic countries that support Ukraine, Russia employs cyberattacks on the target state’s public institutions and critical infrastructure. These activities have clearly intensified since the full-scale invasion began in February 2022 and is in line with the implementation of Russian military strategy. In this context, it would be beneficial within the EU and NATO to develop joint action plans to respond to future threats in cyberspace.
Topic:
NATO, Infrastructure, European Union, Cybersecurity, Cyberspace, Military, and Russia-Ukraine War
Political Geography:
Russia and Europe

335. The Schengen Zone: While Croatia Joins, Further Enlargement Faces Challenges

Author:
Jolanta Szymańska
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
In December, EU interior ministers unanimously supported the expansion of the Schengen zone to include Croatia. At the same time, the Council did not agree on the membership of Romania and Bulgaria. The former was opposed by Austria, and the latter by both Austria and the Netherlands. Although Croatia’s smooth integration into Schengen may weaken the arguments of sceptics of further enlargement, without deep reforms of the entire system and the EU’s migration policy, it will be very difficult to obtain consent for membership of other candidates.
Topic:
Reform, European Union, Regional Integration, Schengen, and Regional Politics
Political Geography:
Europe and Croatia

336. Russian Attacks May Prompt Increased Refugee Flows from Ukraine

Author:
Maria Piechowska
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
Russia is continuing its intensive attacks on critical infrastructure in Ukraine. These are deliberate actions that violate international humanitarian law and are aimed at breaking the morale of Ukrainian society. Power outages mean that many towns and villages are not only without heating but also without water. Further devastation and the difficulty of repairs could trigger a humanitarian catastrophe. Most of the population will try to survive the winter in their current residences or by resettling in smaller towns. Increased refugee movement across borders, especially to Poland, is also possible.
Topic:
Refugees, Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

337. Cooperation and Peril: Germany Attempts a Policy Balance with China

Author:
Łukasz Jasiński
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
The COVID-19 pandemic, the Russian aggression against Ukraine, and the resulting disruption of supply chains have intensified the ongoing debate in Germany over the preferred shape of German-Chinese relations. Chancellor Olaf Scholz’s government sees China as both a partner and rival. Reducing dependence on China is challenging due to its scale and the strength of the pro-China business lobby. This unsteady position will cause tensions in relations with partners, including the U.S., and conflicts within the governing coalition. Germany will continue to develop trade relations with China while blocking Chinese investment in critical sectors.
Topic:
Foreign Policy, International Cooperation, Trade, and Supply Chains
Political Geography:
China, Europe, and Germany

338. GCC Countries, Seeking Food Security, Eye Agricultural Investments

Author:
Sara Nowacka
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
The growing consumption of food in the Gulf states is leading to the acquisition of foreign farmlands. This practice increases the Gulf states’ influence in African countries and the European neighbourhood. The competitiveness of their agricultural sector is also growing in relation to the less innovative European agriculture thanks to the development of technologies responding to difficult climatic conditions.
Topic:
Agriculture, Food Security, Investment, Innovation, and Gulf Cooperation Council
Political Geography:
Europe, Middle East, and Gulf Nations

339. Sub-Saharan Africa May Be a New Source of Gas for the EU

Author:
Jędrzej Czerep
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
In order to become independent from supplies of energy resources from Russia, EU countries are intensively looking for alternative gas import opportunities, including from Sub-Saharan Africa. This direction may become an important element of European diversification, but its development requires external investments and improvement and expansion of the existing infrastructure. European companies and the EU itself can play a key role in this regard.
Topic:
Energy Policy, European Union, Gas, and Diversification
Political Geography:
Africa, Europe, and Sub-Saharan Africa

340. What Next after the Death of Queen Elizabeth II?

Author:
Przemysław Biskup
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
The death of Elizabeth II on 8 September closed her 70-year reign. In that time, the United Kingdom underwent deep transformation, including losing its colonial empire, as well as joining and later leaving European integration structures. The succession to the throne may contribute to a further weakening of the UK’s personal union with the 14 Commonwealth monarchies and the British role in this structure. The queen’s passing has also increased the risk of strengthening of separatist movements in Northern Ireland, Wales, and Scotland.
Topic:
Domestic Politics, Separatism, and Monarchy
Political Geography:
United Kingdom, Europe, and British Commonwealth

341. India Emerges as a Key Power and Important Partner for the EU in the Indo-Pacific

Author:
Patryk Kugiel
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
India’s commissioning of its second aircraft carrier, the INS Vikrant, in September this year reaffirms the country’s aim to play a leading role in the Indo-Pacific. The country’s importance in the region will depend mainly on the course of the India-China rivalry, an increase in its economic potential, and the support provided to it by foreign partners. The convergence of goals in the Indo-Pacific strengthens India’s partnership with the U.S. and opens up opportunities for intensifying cooperation with the EU, especially in terms of connectivity, climate change, and the development of capacity in maritime domain awareness.
Topic:
International Cooperation, European Union, Partnerships, Geopolitics, and Economy
Political Geography:
Europe, South Asia, India, and Indo-Pacific

342. Right-Wing Coalition Wins Parliamentary Elections in Italy

Author:
Łukasz Maślanka
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
The elections to Italy’s Chamber of Deputies and Senate on 25 September were won by the Centre-Right coalition led by the Brothers of Italy (FdI) party headed by Giorgia Meloni. The winning party’s won over voters by its decision to remain in opposition to the government of Mario Draghi, which was supported by all other parties. The right-wing’s victory was also facilitated by the inability of the Democratic Party (PD) and the 5 Star Movement (M5S) to form a coalition, which split the votes of left-wing voters. The biggest challenge for the FdI-led coalition will be to simultaneously maintain the support of the voters, good relations with the EU, and the confidence of the financial markets.
Topic:
European Union, Domestic Politics, Political Parties, Right-Wing Politics, and Regional Politics
Political Geography:
Europe and Italy

343. Space Technologies Key to the EU's Fight Against Climate Change

Author:
Aleksandra Kozioł
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
Launched in March 2022, the Destination Earth initiative to create a digital model of the Earth confirms the importance of space technologies in the EU’s green and digital transformations. The consequences of climate change, such as droughts, fires, and floods, reduce the security of citizens and cause economic losses. The dissemination of applications using satellite data will increase the effectiveness of climate action and sustainable development in the EU.
Topic:
Climate Change, Development, Science and Technology, and European Union
Political Geography:
Europe

344. Digitalisation for Sustainable Infrastructure: The Road Ahead

Author:
Carlo Secchi and Alessandro Gili
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
In today’s tumultuous and fast-changing times, digitalisation and technology are game changers in a wide range of sectors and have a tremendous impact on infrastructure. Roads, railways, electricity grids, aviation, and maritime transport are deeply affected by the digital and technological transition, with gains in terms of competitiveness, cost-reduction, and safety. Digitalisation is also a key tool for fostering global commitment towards sustainability, but the race for digital infrastructure is also a geopolitical one. As the world’s largest economies are starting to adopt competitive strategies, a level playing field appears far from being agreed upon. Why are digitalisation and technology the core domains of global geopolitical competition? How are they changing the way infrastructure is built, operated, and maintained? To what extent will road, rail, air, and maritime transport change by virtue of digitalisation, artificial intelligence, and the Internet of Things? How to enhance cyber protection for critical infrastructure? What are the EU’s, US’ and China's digital strategies?
Topic:
Science and Technology, Infrastructure, European Union, Sustainability, and Digitalization
Political Geography:
China, Europe, Asia, North America, and United States of America

345. The impact of the Ukraine crisis on international trade

Author:
Zsolt Darvas and Catarina Martins
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
We study the economic implications of Russia’s invasion of Ukraine, by scrutinising global trade volumes and commodity prices, trade balances and bilateral trade flows between major economic powers and Russia. We find that energy prices increased more in 2021 than in 2022, suggesting that the war and the sanctions were not the most important drivers. Nevertheless, International Monetary Fund forecast revisions from October 2021 to October 2022 suggest that the volume of global trade in goods and services declined by 3.4 percent, energy prices increased by about 100 percent, and the prices of non-energy commodities by 8 percent. The war could be an important driver of these forecast revisions, though other factors were also at play. While forecasts for important industrial production input costs were not revised, soaring energy prices deteriorated the trade balance of countries importing energy. Only half of the increase in Russia’s trade surplus was related to soaring energy prices. The other half resulted from the collapse of Russian imports, which will likely undermine the Russian economy’s productive capacity over time. Falling Russian exports of goods other than mineral fuels suggest Russia’s productive capacity has already weakened. Russia’s trade has been reoriented from advanced economies to China, India and Turkey, but this has only partially compensated for the decline in trade with advanced countries. We find that sanctions had an impact on trade. There is no evidence of European and US companies circumventing sanctions by re-routing sanctioned goods to Russia via China and Turkey. The UK and the US have already stopped importing fossil fuels from Russia, and such imports by the EU have declined. With the EU’s Russian seaborne crude petroleum import ban taking effect in December 2022 and the refined petroleum ban coming to effect in February 2023, Russia’s revenues from fossil fuel exports to the EU are set to shrink significantly, with limited options for redirecting exports to other countries. The three main policy-relevant implications from our research are: The war and the sanctions are not the most important drivers of energy price; The direct aim of sanctions seems to have been achieved; The capacity of the Russian state to finance the war from fossil fuel revenues is bound to shrink. The dataset used for most charts of this working paper is regularly updated and is available in the Russian foreign trade tracker
Topic:
International Trade and Finance, Sanctions, Fossil Fuels, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

346. You’ll never talk alone: what media narratives on European reforms reveal about a polity in the making

Author:
Emmanuel Mourion-Druol, Henrik Müller, Giuseppe Porcaro, and Tobias Schmidt
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This paper analyses the discourse since 2001 in three leading national business newspapers about reforms in the European Union: Handelsblatt (Germany), Il Sole (Italy) and Les Echos (France). We collected and organised a large dataset of articles published in these three newspapers. We used topic modelling to identify latent topics across articles. Based on this database, we then addressed four research questions and found: a relative degree of synchronisation of reform debates across the three countries; comparable reporting patterns, especially around the main crises; a greater degree of direction of the debate towards European issues over national issues in Germany than in France and Italy; and the tentative emergence of a shared narrative about crises. Finally, we highlight that bringing conflict and contestation back into European discussions may help stimulate wider interest in European matters.
Topic:
Reform, European Union, Media, and News Analysis
Political Geography:
Europe

347. Risks to job quality from digital technologies: are industrial relations in Europe ready for the challenge?

Author:
Janine Berg, Francis Green, Laura Nurski, and David Spencer
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
We examine the job quality effects of new digital technologies in Europe, using the framework of seven job quality ‘domains’: pay, working time quality, prospects, skills and discretion, work intensity, social environment and physical environment. The theoretical effects from new technology are ambivalent for all domains. Data on robot shocks matched to the European Working Conditions Surveys for 2010 and 2015 is used to generate empirical estimates, which show significant aggregate negative effects in three domains, and a positive effect in one. Some negative effects are enhanced where there is below-median collective bargaining. In light of these analyses, and in order to think through the challenge of regulating the development and implementation of all forms of digital technologies, we review regulations in several European countries. Drawing on the principles of human-centred design, we advance the general hypothesis that worker participation is important for securing good job quality outcomes, at both the innovation and adoption stages. We also consider the application to the regulation of job quality of national and supra-national data protection legislation. In these ways, the paper extends the debate about the future of work beyond employment and pay, to a consideration of job quality more broadly.
Topic:
Industrial Policy, Science and Technology, Employment, and Work
Political Geography:
Europe

348. The EU’s Proposed Carbon Border Adjustment Mechanism and Its Implications for Asia

Author:
Hubert Fallmann, Alistair Ritchie, and Yi Chen
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
To achieve a climate-neutral European Union (EU) by 2050 in line with the Paris Agreement, the EU needs to more ambitiously reduce greenhouse gas (GHG) emissions in the coming decade and update its climate and energy policy framework. The recently adopted European Climate Law sets a new EU target for 2030 of reducing GHG emissions by at least 55 percent compared to 1990 levels. To deliver this, the European Commission has proposed a “Fit for 55” package containing, among other initiatives, legislative proposals for a revision of the EU Emissions Trading System (EU ETS) with a more stringent emissions cap and a Carbon Border Adjustment Mechanism (CBAM). The CBAM will put a carbon price on imports of a targeted selection of goods with the aim of 1). ensuring that ambitious climate action in the EU does not lead to carbon leakage, and 2). encouraging partner countries to implement similar carbon-pricing policies. This policy, even at its proposal stage, has created a significant impact worldwide in supporting the uptake of carbon-pricing policies and in encouraging consideration of similar carbon border adjustment policies. The EU’s Proposed Carbon Border Adjustment Mechanism (CBAM) and Its Implications for Asia investigates the details of the EU’s proposed CBAM and its specific implications for companies and governments in Asia.
Topic:
Climate Change, Energy Policy, European Union, and Carbon Emissions
Political Geography:
Europe and Asia

349. Characterisation of Danish agricultural investments in Tanzania and Uganda

Author:
Rikke Broegaard, Helle Monk Ravnborg, Evelyne Lazaro, Teddy Nakanwagi, and David Tumusiime
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This DIIS Working Paper presents key characteristics of each of the six cases including main crop focus, size and business model, as well as types of investors, their investment approach and the factors that motivate them. It also presents the different objectives that the investors have expressed wanting to achieve. As most of the investments involve private funds, it is reasonable to expect that one important goal is to ensure a viable economy in the investment. However, in addition to an economically sound investment, all of the investors behind these six cases have ambitions regarding ways in which they see themselves - through the investment - as contributors towards a positive societal development in the area of the investment. Thus, the paper presents the different ways the investors see their investments contributing to development in the area. The paper is based on interviews with the investors and field work in the areas of investments.
Topic:
Agriculture, Development, Environment, Poverty, Natural Resources, Food, Inequality, Investment, and Land Rights
Political Geography:
Europe, Denmark, Tanzania, and Africa

350. The Cyclical Behaviour of Fiscal Policy During the Covid-19 Crisis

Author:
Philipp Heimberger
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the cyclicality of fiscal policy (discretionary versus automatic) for 28 advanced economies over 1995-2021 by paying special attention to the Covid-19 crisis. We find evidence that discretionary fiscal policy during the Covid-19 crisis (2020-2021) was significantly more countercyclical than before – in particular in the Eurozone. We do not find comparable evidence for more counter-cyclicality during the financial crisis or Euro crisis, which lends support to the argument that discretionary fiscal policy responded especially forceful to stabilise the economy during the Covid-19 crisis. Furthermore, automatic fiscal stabilisers contributed significantly to counter-cyclical stabilisation, although their performance over 2020-2021 was more in line with the past than for discretionary fiscal policy. Overall, fiscal policy in non-Eurozone advanced countries is more countercyclical than in the Eurozone. However, the cyclicality varies markedly across countries. Our findings shed light on how the cyclical behaviour of fiscal policy varies across countries and time.
Topic:
Financial Crisis, Crisis Management, Fiscal Policy, COVID-19, and Euro
Political Geography:
Europe

351. Determinants and Effects of Foreign Direct Investment in Austria: Spillovers to Novel Innovative Environmental Technologies

Author:
Mahdi Ghodsi and Branimir Jovanovic
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This study investigates the determinants of FDI in Austria, as well as their spillovers to innovating technologies, productivity, and employment, using firm-level data, for the period 2008-2018. The findings point out that a decrease in the costs of trade increases investment in foreign-owned subsidiaries in Austria, and that FDI is pre-dominantly carried out in industries characterised by greater capital-intensity, higher wages, more agglomeration and regional concentration. Furthermore, FDI is higher in regions with a larger GDP and with a larger share of the population with upper secondary and post-secondary non-tertiary education. The study also finds that there are positive spillovers of FDI to the domestic economy, which are strongest and most positive for innovative activities in environmental technologies. In other words, FDI helps Austrian firms to become more innovative in major environmental technologies. Such innovative efforts are best supported at the firm-level by supporting the total assets and investment of domestic firms, and at the regional level by increasing the share of the population with higher levels of education and employing more R&D personnel. The active presence of innovative foreign MNEs that enjoy extensive technological capacities, high-skilled labour, experienced management, and large-scale resources are also conducive to innovative activities.
Topic:
Environment, Science and Technology, Foreign Direct Investment, Innovation, and Trade
Political Geography:
Europe and Austria

352. Demography, Capital Accumulation and Growth

Author:
Robert Stehrer and Maryna Tverdostup
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Europe will be challenged by demographic changes over the next few decades, even under favourable assumptions about fertility and migration, but the economic effects are not yet fully understood. This paper studies the effects of population ageing on economic growth, capital deepening and robotisation in 27 European Union (EU) labour markets. First, we econometrically assess the effects of ageing and potential labour market shortages on growth. Second, we test the hypothesis of whether ageing leads to faster adoption of new technologies. We distinguish between various capital asset types, including non-ICT and ICT capital, tangible and intangible capital and the adoption of robots. The analysis is based on Eurostat, the European Labour Force Survey (EU-LFS) and International Federation of Robotics (IFR) data. Results indicate that ageing and demographic changes might contribute to secular stagnation, which decelerates the adoption of new technologies.
Topic:
Science and Technology, European Union, Economic Growth, Macroeconomics, Aging, Labor Market, and Capital Accumulation
Political Geography:
Europe

353. EU-Azerbaijan Economic Relations: New Perspectives and Targets

Author:
CESD Research Team
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
The study is an example of the series on issues analyzing the EU-Azerbaijan economic relations which can be considered a step forward to empower economic approach in the policy-making process aiming to provide an alternative view in addressing current challenges and developments in Azerbaijan. The European Union’s relations with Azerbaijan have been formulated based on the EU-Azerbaijan Partnership and Cooperation Agreement which entered into force since 1999. In February 2017, the EU and Azerbaijan began negotiations on a new framework agreement designed to enhance the political dialogue, trade and mutually beneficial cooperation covering a wide range of economic aspects. One of the most important strategies of EU in the energy policy is to ensure energy security through diversification of energy routes. Azerbaijan is a strategically important energy partner for the EU and plays a significant role in bringing Caspian energy resources to the EU market. In 2018, the EU and Azerbaijan endorsed joint Partnership Priorities, along the four Eastern Partnership priorities that accompany the political dialogue and economic cooperation….
Topic:
International Relations, Economics, European Union, and Partnerships
Political Geography:
Europe, Caucasus, and Azerbaijan

354. World Economy Winter 2022: Strong headwinds for global economic activity

Author:
Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Global growth has decelerated over the course of the year under the impact of high energy prices and great uncertainty. Monetary policy, which is being tightened very quickly in view of high inflationary pressure across the board, is now also putting a drag on economic activity. Overall, production remained on an upward trend into the fall, with impetus coming from easing supply bottlenecks and the continuing normalization of activity in those sectors of the economy particularly affected by the Covid-19 pandemic. Towards the end of the year, however, economic momentum weakened noticeably further. The major advanced economies in particular are currently facing a period of weak economic activity despite considerable fiscal support measures. At the same time, the problems for the Chinese economy remain significant. While global output (measured on a purchasing power parity basis) at 3.2 percent is expected to grow by 0.3 percentage points more this year than expected in September, we continue to forecast an increase of only 2.2 percent next year. For 2024, our expectation has even been reduced slightly to 3.2 percent, mainly because we do expect the US economy to recover slowly. Inflation is likely to have peaked and is expected to slow significantly over the forecast horizon thanks to lower commodity prices and easing economic tensions. However, underlying inflation is not likely to return to target levels until the end of the forecast period.
Topic:
Monetary Policy, Economy, Business, COVID-19, and Emerging Economies
Political Geography:
China, Europe, Asia, North America, and United States of America

355. German Economy Winter 2022: Inching through the energy crisis

Author:
Jens Boysen-Hogrefe, Dominik Groll, Nils Sonnenberg, Nils Jannsen, Stefan Kooths, Vincent Stamer, and Timo Hoffmann
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Wholesale prices for gas and electricity have fallen significantly in recent months - even though they are still at a high level. In addition, the burdens on private households and companies caused by high energy costs are to be cushioned by so-called price brakes. Overall, inflation in 2023 will be much lower at 5.4 percent than we had expected in our autumn forecast (8.7 percent). Although real disposable income and, as a result, private consumption are likely to decrease next year, the decline will be much smaller than had been expected a few months ago. As a result, we now expect a slight increase in GDP of 0.3 percent for 2023 (autumn: -0.7 percent). In 2024, GDP is expected to grow somewhat more strongly again at 1.3 percent (autumn: 1.7 percent). The labour market is robust despite the economic slowdown, partly because companies are still desperately seeking skilled workers. The public fiscal balance is likely to deteriorate significantly in 2023 due to the aid packages in response to the energy crisis and displays a deficit of around 4 percent relative to GDP. With the expiry of the aid packages, the deficit will decrease again in 2024.
Topic:
Economics, Monetary Policy, Budget, Business, Labor Market, Energy Crisis, Emerging Economies, and Advanced Economies
Political Geography:
Europe and Germany

356. World Economy Autumn 2022: Global growth falters

Author:
Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In spring 2022, world economic growth came to a standstill amid high inflation, persistent supply bottlenecks and elevated uncertainty. In many countries real wages are declining significantly dampening private consumption even though extra savings accumulated during the pandemic are still available to mitigate the adverse impact to some extent. At the same time financial conditions have also deteriorated as central banks tightened their policies. In China, the strict zero-covid policy and problems in the real estate sector are slowing economic activity. Against this backdrop, the outlook for the global economy has deteriorated further. We have, again, lowered our forecast and are now expecting global output to increase by only 2.9 percent this year and 2.2 percent next year (calculated on a purchasing power parity basis). The forecast assumes that commodity prices will gradually decline in line with forward prices, which will over time reduce the upward pressure on prices and provides the foundations for an economic upturn in 2024. However, the pass-through of higher commodity prices into consumer prices is probably not yet complete and wage increases are likely to intensify in many countries. Consequently, underlying inflation is likely to remain higher than in the years before the Covid crisis and remain above central bank targets over the forecast horizon.
Topic:
Monetary Policy, Business, COVID-19, Zero-COVID, Emerging Economies, and Advanced Economies
Political Geography:
China, Europe, Asia, North America, and United States of America

357. Why do Preferences for Redistribution Differ Across Countries?

Author:
Gianluca Grimalda, Francesco Farina, Anna Conte, and Ulrich Schmidt
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
We test for different theories purporting to explain cross-country differences in income redistribution through standardized experimental choices. US Americans and Italians demand less redistribution than Norwegians and Germans, regardless of whether self-interest is relevant. Those earning (or expecting to earn) below-median incomes behave as "libertarians" more frequently in the US and Italy than in Germany and Norway. Above-the-median earners behave similarly across countries. Higher overconfidence by US Americans and Italians further reduces their demand for redistribution under uncertainty. The "Prospect of Upward Mobility" hypothesis holds similarly in all countries. US Americans do not reward individual merit more than others.
Topic:
Economic Mobility, Redistribution, Income Distribution, and Behavioral Economics
Political Geography:
Europe, Italy, North America, and United States of America

358. Regional Deprivation and Populism - Evidence from Germany and the U.S.

Author:
Michael Bayerlein
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
A widely held view is that increasing globalisation and inequality are fostering support for populist actors. Surprisingly, when focusing on Germany and the U.S., populist voting is highest in less globalised regions with rather equal income distributions. Addressing this puzzle, I ask how the regional variance in populist voting can be explained. In my answer, I introduce the concept of spatial inequality, which describes the regional inequality within countries, and construct a measure of public goods scarcity. I argue that the spatial inequality induced feeling of being left behind is positively correlated with populist voting and that this effect is mitigated by public goods provision. Using county level data to develop spatial inequality and public good scarcity indices, I can provide empirical support for these arguments. The findings have important implications for understanding the sub-national variance in populist voting and the role of relative economic deprivation as well as public goods provision.
Topic:
Globalization, Inequality, Populism, Voting, Regional Economy, and Public Goods
Political Geography:
Europe, Germany, North America, and United States of America

359. Brothers in arms: The value of coalitions in sanctions regimes

Author:
Sonali Chowdhry, Julian Hinz, Katrin Kamin, and Joschka Wanner
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper examines the impact of coalitions on the economic costs of the 2012 Iran and 2014 Russia sanctions. By estimating and simulating a quantitative general equilibrium trade model under different coalition set-ups, we (i) dissect welfare losses for sanction-senders and target; (ii) compare prospective coalition partners and; (iii) provide bounds for the sanctions potential — the maximum welfare change attainable — when sanctions are scaled vertically, i.e. across sectors up to an embargo, or horizontally, i.e. across countries up to a global regime. To gauge the significance of simulation outcomes, we implement a Bayesian bootstrap procedure that generates confidence bands. We find that the implemented measures against Iran and Russia inflicted considerable economic harm, yielding 32 – 37% of the vertical sanctions potential. Our key finding is that coalitions lower the average welfare loss incurred from sanctions relative to unilateral implementation. They also increase the welfare loss imposed on Iran and Russia. Adding China to the coalition further amplifies the welfare loss by 79% for Iran and 22% for Russia. Finally, we quantify transfers that would equalize losses across coalition members. These hypothetical transfers can be seen as a sanctions-equivalent of NATO spending goals and provide a measure of the relative burden borne by coalition countries.
Topic:
Globalization, International Trade and Finance, Markets, Sanctions, Alliance, and Embargo
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

360. How to make I.T. in Greek Manufacturing: Evidence and Policy Recommendations

Author:
Sofia Anyfantaki
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Greece has so far failed to shift its production structure towards more complex, high value-added activities, incorporating knowledge-intensive practices. Given the country’s low performance in innovation and knowledge diffusion relative to EU peers, we focus on two specific problem areas of Greek industry: skills and management practices. First, we provide an in-depth look at skills indicators to identify the scope for action, particularly in addressing mismatch. Second, we use firm-level data from the World Management Survey to give an overview of management practices in Greek industry and explore the quality of these practices and their association with productivity. We have two novel findings: first, we document that Greece has the highest overskilling for professional occupations in the OECD; second, we show that Greek firms do best in areas requiring unitary decision making, and worst in areas requiring teamwork and synergies. We complement our analysis with data from a new survey and examine structural characteristics of innovation and technology adoption. The collection of our empirical findings provides valuable input into concrete policy proposals to increase productivity in Greek manufacturing.
Topic:
Science and Technology, Manufacturing, Innovation, Industry, and Information Technology
Political Geography:
Europe and Greece

361. From Media-Party Linkages to Ownership Concentration Causes of Cross-National Variation in Media Outlets’ Economic Positioning

Author:
Erik Neimanns and Nils Blossey
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
A sizable literature on media bias suggests that media coverage is frequently biased towards certain political and economic positions. However, we know little about what drives variation in political and ideological bias in news coverage across countries. In this paper, we argue that increasingly commercialized and concentrated media markets are likely to be associated with media coverage leaning more favorably towards economically more rightwing positions. Media bias should reflect the preferences of media owners and should be a result of a reduced diversity of news media content. In contrast, where media outlets continue to be oriented more closely along partisan lines, often referred to as political parallelism, bias on economic issues should be more likely to cancel out at the aggregate level. To test these claims, we combine expert survey data on partisan attachments of media outlets, party ideologies, and media ownership concentration for twenty-four European countries. Results from multilevel regression models support our theoretical expectations. With media framing potentially affecting individual-level preferences and perceptions, high and rising levels of media ownership concentration may help to explain why governments in the affluent Western democracies often do remarkably little to counter trends of rising income inequality.
Topic:
Politics, Media, News Analysis, and Bias
Political Geography:
Europe

362. Operationalizing Growth Models

Author:
Lucio Baccaro and Sinisa Hadziabdic
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
We present a new methodology for operationalizing growth models based on importadjusted demand components. Applying the methodology to the latest release of OECD Input-Output Tables, we calculate the growth contributions of consumption, investment, government expenditures, and exports for sixty-six countries in the periods 1995 to 2007 and 2009 to 2018 and identify the respective growth models. We find that most countries are export-led or domestic demand-led and that other forms of growth are rare. Our results corroborate previous classifications in comparative political economy but also differ from them in significant respects. Importantly, our classification improves on previous ones by covering not just the advanced capitalist economies but also Central and Eastern European and South-East Asian and Latin American countries. In a further step, we illustrate how the new indicators can be used to analyze the “drivers” of different types of growth. This examination reveals that there is a clear trade-off between consumption- and export-led growth in advanced Western economies in the period 1995 to 2007 and a dependence of export-led growth in these countries on real exchange rate devaluation in the same period, while export complexity is not a significant predictor of export-led growth.
Topic:
Political Economy, Economy, Economic Growth, Exports, and Emerging Economies
Political Geography:
Europe, Latin America, and Southeast Asia

363. The Rise and Fall of Social Housing? Housing Decommodification in Long-Run Perspective

Author:
Konstantin A. Kholodilin, Sebastian Kohl, and Sarah Hellmüller
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
The comparative study of housing decommodification lags behind classical welfare state research, while housing research itself is rich in homeownership studies but lacks comparative accounts of private and social rentals due to missing comparative data. Building on existing works and various primary sources, this study presents a new collection of up to forty-eight countries’ social housing shares in stock and new construction since the first housing laws around 1900. The interpolated benchmark time series generally describe the rise and fall of social housing across a residual, a socialist, and a Northern-European housing group. The decline was steeper than for the classical welfare state, but the degree of erosion was surprisingly small in some countries where public housing associations remained resilient. Within the broader housing welfare state, social housing correlates positively with rent regulation and allowances, but negatively with homeownership subsidies and liberal mortgage regulation. A multivariate analysis shows that social housing is rather explained by housing shortages and complementarities with rental and welfare policies than by typical welfare state theories (GDP, political parties). Generally, the paper shows that conventional housing typologies are difficult to defend over time and argues more generally for including housing decommodification in welfare state research.
Topic:
Public Policy, Housing, and Welfare State
Political Geography:
Europe and Global Focus

364. Factsheet: Karl Nehammer

Author:
Karl Nehammer
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
The Bridge Initiative, Georgetown University
Abstract:
Karl Nehammer is the current Chancellor of Austria. Three days prior to being sworn in as Chancellor on December 6, 2021, he became the managing chairman of the Austrian People’s Party (ÖVP). Previously, he served as the Minister of the Interior from 2020 to 2021, General Secretary of the ÖVP from 2018 to 2020, and a member of the National Council from 2017 to 2020. He has been a key figure in supporting anti-Muslim policies.
Topic:
Politics, Domestic Politics, Islamophobia, Muslims, and Karl Nehammer
Political Geography:
Europe and Austria

365. Factsheet: Susanne Raab

Author:
Bridge Initiative Team
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
The Bridge Initiative, Georgetown University
Abstract:
Susanne Raab is the current Minister of Women and Integration of Austria. She joined the government of Sebastian Kurz of the Austrian People’s Party, which was responsible for many anti-Muslim legislations that have meanwhile been rescinded by various courts. Raab has been a key figure in supporting anti-Muslim policies in Austria.
Topic:
Domestic Politics, Islamophobia, Muslims, and Susanne Raab
Political Geography:
Europe and Austria

366. Factsheet: Ednan Aslan

Author:
Bridge Initiative Team
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
The Bridge Initiative, Georgetown University
Abstract:
Ednan Aslan is a Turkish-German Professor of Islamic Religious Education at the University of Vienna in Austria. Aslan is frequently interviewed by mainstream media as an expert on Islam and a critical voice on Muslims. He has been a vocal supporter of the Austrian Chancellor Sebastian Kurz’s anti-Muslim policies, and also served in the Documentation Center Political Islam, a federally funded center that monitors, surveils, and maps Muslims in Austria.
Topic:
Surveillance, Islamophobia, Political Islam, and Ednan Aslan
Political Geography:
Europe and Austria

367. Trade Liberalization along the Firm Size Distribution: The Case of the EU-South Korea FTA

Author:
Sonali Chowdhry and Gabriel Felbermayr
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In 2011, the EU-South Korea Free Trade Agreement (EUKFTA) entered into force. With its focus on non-tariff barriers (NTBs), it is a leading example of a deep new generation agreement. Using detailed French customs data for the period 2000 to 2016, we investigate how exporters of different size have gained from the agreement. Applying a diff-in-diff strategy that makes use of the rich dimensionality of the data, we find that firms with larger pre-FTA sizes benefit more from the FTA than firms at the lower end of the size distribution, both at the extensive (product) and the intensive margins of trade. The latter finding is in surprising contrast to leading theories of firm-level behavior. Moreover, we find that our main result is driven by NTB reductions rather than tariff cuts. In shedding light on the distributional effects of trade agreements within exporters, our findings highlight the need for effective SME-chapters in FTAs.
Topic:
Economics, International Political Economy, Treaties and Agreements, Tariffs, and Trade
Political Geography:
Europe, South Korea, and European Union

368. Montenegro after the General Elections: A New Chapter in Transition or Preservation of Status Quo?

Author:
Krševan Antun Dujmović
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The general elections held in Montenegro on 30 August 2020 has once again drawn the attention of the Western Balkans to the smallest, measured by population, among seven nations that emerged after the breakup of the Socialist Federal Republic of Yugoslavia. This attention is due to a number of factors. Back in May of 2018 Montenegro has opened the last of the thirty-three chapters in the negotiation process with the European Union, making it a harbinger among Western Balkans nations on the path to Euro-Atlantic integrations, especially as the country had joined the North Atlantic Alliance in June 2017. Other countries in the region linger behind Montenegro – Albania and North Macedonia, both NATO members, are still waiting for the opening of the negotiations with the EU. Serbia has no intention to join NATO, and in spite of EU negotiations and ambitions, sees itself in balance between the West on one side, and Russia and China on the other. Kosovo and Bosnia and Herzegovina are far from NATO membership and have merely the status of potential candidates for EU membership. This is why all eyes of the region and of the advocates of continuation of EU enragement policy are on Montenegro. The second factor are strong historical ties of this country on the Adriatic coast with its northern neighbor Serbia. Serbian minority makes up to one third of Montenegro’s population, and the Serbian Orthodox Church (SPC- Srpska Pravoslavna Crkva) plays a vital role in Montenegrin society, as this country does not have its own autocephalous Church recognized by other Orthodox Churches in Eastern Christendom. This gives Serbia and the SPC a significant clout within borders of its southern neighbor. The third factor is the involvement of global players in this country. The United Sates has advocated strongly to include Montenegro in NATO in order to stretch the line of NATO’s southern flank in the Northern Mediterranean from the Iberian Peninsula to the west to Greece and Turkey in the east. On the other hand, Montenegro’s authorities accused Russia of meddling in the general elections held in October 2016 when the alleged coup d’état occurred on the election day. Many feared a similar scenario on the eve of 30 August 2020 election, fathoming the outbreak of riots and violence that could ignite the powder keg in the Balkans. Although none of these happened, Montenegro is not ceasing to be the subject of the geopolitical chessboard. Considering these factors, the attention of neighbors to the events in this Balkan country is understandable. The unfolding situation after the elections in which the government of Montenegro is backed by a very thin majority in the Parliament (Skupština Crne Gore) and with no clear vision nor strategy for further political and economic development of the country, is only fueling the wariness of its neighbors and of Brussels about Montenegro as a success story.
Topic:
NATO, Regional Cooperation, Military Strategy, Elections, European Union, and Transition
Political Geography:
Europe, Balkans, and Montenegro

369. The Mediterranean Region: A Hotspot of Inequalities in the Aftermath of COVID-19

Author:
Farah Al Shami
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
The COVID-19 pandemic, which broke out in China in late 2019, reached the Mediterranean region by late winter 2020. While the impact of this crisis has been notorious on a global scale, it was remarkably more pronounced in the Mediterranean region as a result of economic fragility, exposure and transmissibility, and more importantly the quality of state and non-state responses which had a multidimensional multiplier effect on wealth distribution, access to health and education as well as other essential services, regional disparities and gender inequality, among others. Ever since its outbreak, COVID-19 has significantly exacerbated existing inequalities and has created new ones. It has also exacerbated vulnerabilities and created new forms of vulnerability, thus increasing the gaps on various levels between different social groups. These consequences were also more concentrated in the Mediterranean region as compared to the rest of the world, as the region had already been witnessing rising trends of inequality in the last decade, and especially before the pandemic hit, due to political instability, economic decay and inefficient public policies. While this reality has been experienced by both the northern and southern sides of the Mediterranean, it has been more intense in the latter. However, this is not to deny that constantly increasing inequalities in recent history has made both poles of the Basin much more susceptible to an enigmatic and acute shock such as COVID-19. The impact of COVID-19 on multifaceted inequality in the Mediterranean is neither consistent nor linear. The region has witnessed declines in several forms of inequality and surges in several others. Yet, the overall impact in terms of the number and magnitude of increased inequalities versus reduced ones is negative, making the Mediterranean a hotspot of inequality in the aftermath of the sanitary crisis. Moreover, amplified inequalities have manifested in the Mediterranean Basin in the form of inter-country inequalities and intra-country inequalities – the former being mostly part driven by inter-sectoral imbalances. Inter-country inequalities have likely further cemented the north-south divide in the Basin. This paper examines the different forms and faces of inequality in the region by trying to conceptualize the situations of different countries, despite their dissimilar and divergent contexts. It proves that COVID-19 has massively increased multidimensional inequality through various channels and at a relatively higher rate with respect to other regions. The paper also demonstrates that the Mediterranean is the microcosm of the north-south cleavage, as it is the closest place where the South meets the North, which makes it a natural starting point for dialogue concerning the north-south dichotomy and inequalities. As such, this paper highlights the need for tangible cooperation across borders, between sectors, and among citizens and their representatives, both within the region – between the North and the South – and with other regions, to advance reforms that address the factors of inequity and inequality in an already fragile and shaky regional context.
Topic:
Inequality, Public Health, Pandemic, COVID-19, and Health Crisis
Political Geography:
Africa, Europe, Middle East, and Mediterranean

370. Implications of the COVID-19 Pandemic for Africa–EU Partnership on Migration and Mobility: A Developmental Perspective from West Africa

Author:
Aderanti Adepoju
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The far-ranging effects of COVID-19, and subsequent impacts on migration drivers, trends and governance, have already produced significant implications for the Africa–EU partnership on migration and mobility. The socio-economic consequences of the pandemic have been particularly deep in West Africa, with Nigeria being one of the most affected countries. The region is also one of the most relevant African contexts in terms of cross-border human mobility, with well-established migratory patterns both at a regional and inter-regional level. As COVID-19-induced restrictions and the related economic consequences continue to unfold, the partnership between the EU and the countries in Western Africa will have to recalibrate the balance between improving the livelihoods of local populations, fighting irregular migration and facilitating regular channels, so as to tap into the developmental potential of migration. While the current crisis presents new challenges for both Africa and Europe, the two parties would benefit from focusing their efforts on making migration part of the post-pandemic economic recovery and longer-term socioeconomic development. Paper prepared in the framework of the project “A New European Consensus on Asylum & Migration”.
Topic:
Migration, European Union, Refugees, Coronavirus, and COVID-19
Political Geography:
Africa, Europe, and Nigeria

371. One Belt One Voice: Chinese Media in Italy

Author:
Francesca Ghiretti and Lorenzo Mariani
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Chinese media are the voice of the Chinese Communist Party at home and abroad. It is no surprise therefore that collaborations between Chinese and foreign media have been attracting more international attention. One issue that has not been yet explored is the nature and implications of the inclusion of two important Italian media actors such as Rai (the state-run broadcasting company) and Ansa (Italy’s main press agency) in the Memorandum of Understanding signed by Italy in support of the Belt and Road Initiative in 2019. These deals fit in a broader picture of an Italian media environment that is being increasingly targeted by Chinese media. However, the impact that such an effort has had on the Italian public opinion has been very limited so far and the Italian media landscape keeps offering free and varied information. Paper prepared in the framework of the IAI project “When Italy Embraces the BRI”.
Topic:
Foreign Policy, Mass Media, Public Opinion, and Belt and Road Initiative (BRI)
Political Geography:
China, Europe, Asia, and Italy

372. Silk Road Academic Connections: China–Italy Cooperation in Higher Education and Its Implications for the West

Author:
Nicola Casarini
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Cooperation in higher education and research is a positive aspect of the broader Italy–China relationship as it contributes to the advancement of the scientific and cultural environment in both countries. China has invested considerable sums to promote cooperation and exchanges with the Italian academy, including through the establishment of a dozen Confucius Institutes and a number of Confucius Classrooms. Italian universities have set up academic partnerships with Chinese entities on almost every subject. These have improved Italy’s research outlook, but have also posed inevitable risks of self-censorship and kowtowing to Chinese wishes. Moreover, there has been a surge of academic sponsorships by Chinese firms, in particular ICT companies such as ZTE and Huawei, which raise further concerns for Italy’s security interests and cooperation with its Western allies.
Topic:
Foreign Policy, Education, Science and Technology, Higher Education, and Research and Development
Political Geography:
China, Europe, Asia, and Italy

373. China in Italy: Risk Assessment and Preventive Solutions

Author:
Beatrice Gallelli and Lorenzo Mariani
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Italy’s 2019 decision to sign a Memorandum of Understanding with China in support of the Belt and Road Initiative sparked a heated debate at home and abroad. The possibility of Italy upgrading its trade and investment relations with China through the shortcut of a political endorsement of President Xi Jinping’s flagship foreign-policy initiative was framed as either a heaven-sent opportunity or a serious strategic threat. Two years on, most of the concerns pointed out in the debate, especially regarding infrastructures, have proven unsubstantiated (although the economic opportunities for which the Italian Government wished have also failed to materialise). However, cooperation initiatives between Italian and Chinese entities in sectors often overlooked in the mainstream debate, such as media and academic partnerships, do present risks. The creation of an interagency China Information and Coordination Unit would help to prevent – or, at least, to minimise – such risks. Paper prepared in the framework of the IAI project “When Italy Embraces the BRI”.
Topic:
Foreign Policy, Education, Science and Technology, Mass Media, Foreign Direct Investment, and Trade
Political Geography:
China, Europe, Asia, and Italy

374. Unlocking European Defence. In Search of the Long Overdue Paradigm Shift

Author:
Arnout Molenaar
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The European Union’s range of new EU security and defence initiatives are ground-breaking, but they can only deliver on their potential if member states shift the paradigm towards truly thinking, acting and working together as Europeans, based on a strategic consensus regarding the future of European defence in the changing global context. The new Strategic Compass, to be adopted by the Council in early 2022, provides a framework to develop such a shared vision. It should help to operationalise the EU’s strategic autonomy in concrete terms, in mutual reinforcement and coherence with NATO, while seizing the opportunity to strike a new transatlantic bargain with the Biden Administration. In this context, the Union should agree on concrete steps forward to become a more active security provider abroad, reinforce its resilience and protection at home, enhance its operational readiness for different scenarios, and develop new capabilities through deeper cooperation while stepping up its cooperation with partners.
Topic:
Security, Defense Policy, NATO, Regional Cooperation, and European Union
Political Geography:
Europe

375. The EU One Year after the Covid-19 Outbreak: An Italian-German Perspective

Author:
Nicoletta Pirozzi, Luca Argenta, and Paweł Tokarski
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The spreading of the Covid-19 pandemic and its economic and social consequences have radically changed the reality of the 27 EU member states. After scattered reactions at the beginning of the crisis, the EU has taken an unprecedented step towards cohesion and solidarity with the Next Generation EU. However, in order to ensure recovery and resilience, the EU will need to act simultaneously on three levels: end the pandemic in the shortest time possible through mass vaccination, implement structural reforms and address the challenges of tomorrow, including also digitalisation and the fight against climate change. To realise these objectives, citizens’ engagement and mobilisation would be essential, thus giving new urgency to the Conference on the Future of Europe, which should be turned from a consultation process into a tool for the relaunch of the Union post-Covid. Paper published as a follow-up to the 2020 edition of the German-Italian Strategic Forum on Europe, jointly organised by IAI, FES and SWP on 27 November 2020.
Topic:
Politics, Public Opinion, European Union, Economy, Institutions, and COVID-19
Political Geography:
Europe, Germany, and Italy

376. Implications of COVID-19 on East Africa–EU Partnership on Migration and Forced Displacement

Author:
Tsio Tadesse Abebe and Ottilia Anna Maunganidze
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
he COVID-19 pandemic has significantly impacted the current state and prospects of partnership between the East African countries and the European Union on migration and forced displacement. The pandemic has exacerbated the root causes of migration and forced displacement. This is manifested by the continuation of irregular arrivals in Europe including from East Africa, after a brief decline in the initial phase of the COVID-19 response. The strong economic impact of the pandemic on the region has also disrupted the implementation of the Global Compact on Refugees that aspires to address forced displacement challenges through facilitating refugees’ self-reliance. These challenges require East African countries and the EU to work towards establishing a better migration governance system with a people-centred approach and with a view to addressing the root causes of migration. East African states should drive their migration and forced displacement policies in ways that benefit their citizens. This should include devising ways of engaging the EU in line with its proposed talent partnerships in its New Pact on Migration and Asylum. The EU should work towards easing the economic burden of countries in East Africa including through providing additional development support and debt cancellation. Paper prepared in the framework of the project “A New European Consensus on Asylum & Migration”.
Topic:
Migration, Politics, European Union, Refugees, Institutions, and COVID-19
Political Geography:
Africa and Europe

377. From Tectonic Shifts to Winds of Change in North Africa and the Middle East: Europe’s Role

Author:
Nathalie Tocci, Riccardo Alcaro, Francesca Caruso, Silvia Colombo, Dario Cristiani, Andrea Dessì, Flavio Fusco, and Daniela Huber
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Winds of change are blowing in North Africa and the Middle East. They originate from Washington, where the new Biden administration is expected to abandon its predecessor’s zero-sum, erratic approach and take steps towards supporting regional balances and cooperation. Effects are visible especially in the Gulf, with the US pondering its options to re-activate nuclear diplomacy with Iran and Saudi Arabia and the United Arab Emirates grudgingly agreeing to put their feud with Qatar on ice. One way or another, these winds of change are working their way through the Levant, the Eastern Mediterranean and Libya. Admittedly, they are still feeble and can easily fade out like a morning breeze. Were that to happen, Europeans would be amongst the most affected – aside, of course, from regional populations themselves. It is now high time for the EU and its member states to leave the backseat they have (un)comfortably been sitting in for years, seize the opportunity of a cooperative US administration and work to play a more proactive role in North Africa and the Middle East commensurate with their considerable financial, diplomatic and military resources.
Topic:
Foreign Policy, Politics, European Union, and Institutions
Political Geography:
Europe, Middle East, North Africa, United States of America, Mediterranean, and Gulf Nations

378. Europe's Quest for Digital Sovereignty: GAIA-X as a Case Study

Author:
Simona Autolitano and Agnieszka Pawlowska
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
There is currently much discussion about “digital sovereignty” in Europe. While the term encompasses very diverse connotations, it refers to a broad concept involving data, technological, regulatory and political elements. Cloud computing represents one example of the concrete materialisation of the European Union’s quest for “digital sovereignty” – especially through the development of its GAIA-X project. It is too early to assess whether or not GAIA-X will definitively help the Union to achieve this much-desired goal; however, some challenges have already emerged along the way. Looking to the future, if the EU wants to achieve “digital sovereignty”, a different strategy to the one currently under discussion will be needed. Study produced as part of the project “La geopolitica del digitale”, March 2021.
Topic:
Politics, European Union, Institutions, Digital Policy, and Digital Sovereignty
Political Geography:
Europe, France, and Germany

379. Technological Competition: Can the EU Compete with China?

Author:
Francesca Ghiretti
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The debate on technological development and the unfolding fourth technological revolution tends to neglect the role of the EU, relegating it to follower status. The leadership positions are occupied by the US and China, who compete with one another for technological supremacy. Yet, despite lagging behind in some areas, the EU is better placed than is often assumed and still stands a chance of guaranteeing the delivery of a technological revolution that is not only environmentally but also socially sustainable. This is critical in proposing a model of technological development alternative to that of China, in particular, and especially in such sectors as artificial intelligence, supercomputing and digital skills. Study produced as part of the project “La geopolitica del digitale”, March 2021.
Topic:
Politics, Science and Technology, European Union, Institutions, Strategic Competition, and Digital Policy
Political Geography:
China, Europe, and Asia

380. The Belt and Road Initiative in Italy: The Ports of Genoa and Trieste

Author:
Francesca Ghiretti
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In March 2019, Italy signed a Memorandum of Understanding (MoU) with the People’s Republic of China (PRC) in support of PRC President Xi Jinping’s flagship infrastructure and connectivity project, the Belt and Road Initiative. The MoU was accompanied by a series of commercial agreements, including two between the ports of Genoa and Trieste and the state-owned enterprise China Communications Construction Company (CCCC). The European Union and the United States expressed concerns about the agreements as they feared that CCCC would eventually obtain a controlling share of the ports, not unlike that recently secured by the China Ocean Shipping Company (COSCO) with Greece’s Port of Piraeus. However, existing legal constraints, an open international and national debate, and the vague nature of the agreements concerned have so far kept these fears from materialising. Paper prepared in the framework of the IAI project “When Italy embraces the BRI”.
Topic:
Foreign Policy, Infrastructure, Belt and Road Initiative (BRI), and Trade
Political Geography:
China, Europe, Asia, and Italy

381. China's Belt and Road Initiative in Italy: An Analysis of Financial Cooperation

Author:
Nicola Bilotta
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Financial cooperation is essential to boosting bilateral economic ties, providing firms with more effective instruments to operate in foreign markets. It should come as no surprise, then, that financial cooperation was a pillar of the 2019 Memorandum of Understanding (MoU) reached between Italy and China in support of the latter’s Belt and Road Initiative (BRI). However, a preliminary analysis of BRI-related commercial agreements between Italian financial institutions and their Chinese counterparts shows that they have not resulted in any ground-breaking development. These Memoranda have apparently just added a “BRI” badge to pre-existing trends of collaboration. The BRI-related MoUs in the field of financial cooperation do not, for the time being at least, justify concerns that China may gain an economic foothold in Italy large enough to win it much political influence. A more realistic risk is that these MoUs may undermine a common European approach to China, weakening the negotiating stance of the European Union’s. Paper prepared in the framework of the IAI project “When Italy embraces the BRI”.
Topic:
Foreign Policy, Political Economy, Governance, Finance, and Belt and Road Initiative (BRI)
Political Geography:
China, Europe, Asia, and Italy

382. CBDCs for Dummies: Everything You Need to Know about Central Bank Digital Currency (And Why You Shouldn’t Be Afraid of It)

Author:
Nicola Bilotta
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
“No cash accepted in this store”. What might seem to some like science fiction is on its way to becoming reality. The rise of non-cash payments is a global phenomenon, although moving at different speeds around the world. To keep up with the digitalisation of payments (and of the economy), many central banks are exploring the development of Central Bank Digital Currencies (CBDCs), a digital form of cash. Despite being confined to a technical discussion among experts, when (rather than if) launched, CBDCs concerns us all. Thus, raising awareness of what CBDCs are, and of their key economic and political dimensions, is crucial to ensure that citizens are not only passive spectators. This paper has the ambition to provide (non-expert) readers with straightforward and simple answers to some of the many questions they may have around CBDCs. It sets the ground to better understand what CBDCs are (and are not), their drivers and their possible design. It will explore the impact of CBDC systems on privacy, the geo-strategic drivers of CBDCs and the possible rivalry between public and private money. Paper prepared in the framework of a research effort on the risks and the opportunities related to Central Bank Digital Currencies (CBDCs) with the support of Intesa Sanpaolo and the Bank of Italy.
Topic:
Political Economy, Governance, European Union, Finance, Currency, and Digital Policy
Political Geography:
China, Europe, and United States of America

383. Deindustrialization and the Postsocialist Mortality Crisis

Author:
Gabor Scheiring, Aytalina Azarova, Darja Irdam, Katarzyna Doniec, and Martin McKee
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
An unprecedented mortality crisis struck Eastern Europe during the transition from socialism to capitalism. Working-class men without a college degree suffered the most. Some argue that economic dislocation caused stress and despair, leading to adverse health behavior and ill health (dislocation-despair approach). Others suggest that hazardous drinking inherited as part of a dysfunctional working-class culture and populist alcohol policy were the key determinants (supply-culture approach). We enter this debate by performing the first quantitative analysis of the association between economic dislocation in the form of industrial employment decline and mortality in postsocialist Eastern Europe. We rely on a novel multilevel dataset, fitting survival and panel models covering 52 towns and 42,800 people in 1989-1995 in Hungary and 514 medium-sized towns in the European part of Russia. The results show that deindustrialization was significantly associated with male mortality in both countries directly and indirectly mediated by adverse health behavior as a dysfunctional coping strategy. Both countries experienced severe deindustrialization, but social and economic policies seem to have offset Hungary’s more immense industrial employment loss. The policy implication is that social and economic policies addressing the underlying causes of stress and despair can improve health.
Topic:
Employment, Capitalism, Mortality, Alcohol, Socialism, and Deindustrialization
Political Geography:
Europe, Eastern Europe, and Hungary

384. Russia or the West – Which Should Jerusalem Choose?

Author:
Daniel Rakov
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
The Israeli government has not publicly expressed a position regarding the gathering of Russian forces on the Ukrainian border. Still, a renewed war between Russia and Ukraine could make it challenging to choose between its commitment to its Western allies and its important relationship with Russia.
Topic:
Security, International Cooperation, Military Strategy, and Military Affairs
Political Geography:
Russia, Europe, Ukraine, Middle East, and Israel

385. Israel and the New ‘Old Europe’

Author:
Emmanuel Navon
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
The new German government and the upcoming elections in France create challenges and opportunities for Israel’s foreign policy, which must adapt to Europe’s evolving political map.
Topic:
Diplomacy, International Cooperation, Governance, and Elections
Political Geography:
Europe, Middle East, and Israel

386. Realpolitik Should Guide Israeli-Russian Relations

Author:
Efraim Inbar
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
When Israeli Prime Minister Naftali Bennett this week meets Russian President Putin for the first time, Bennett must use a realpolitik language.
Topic:
Diplomacy, International Cooperation, Governance, and Leadership
Political Geography:
Russia, Europe, Middle East, and Israel

387. What does the Deraa surrender mean for Iran and Russia in Syria?

Author:
Jonathan Spyer
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
In the southwest, the outside powers of relevance are Iran and Russia. The arrangement in place from July 2018 until now was the product of an uneasy standoff between them.
Topic:
Security, Military Strategy, Conflict, Peace, and Ceasefire
Political Geography:
Russia, Europe, Iran, Middle East, and Syria

388. Fighting antisemitism should not be Israel’s primary concern

Author:
Efraim Inbar
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Fighting with Poland over Holocaust restitution is not in Israel’s national interest.
Topic:
Diplomacy, Holocaust, Conflict, Memory, and Reparations
Political Geography:
Europe, Middle East, Israel, and Poland

389. Israel Should Maintain its Mediterranean Alignment, Despite Signals from Ankara

Author:
Eran Lerman
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
It should be made clear to Israel’s partners in the eastern Mediterranean that any (unlikely) improvement in Israel’s relations with Turkey will not come at their expense. Despite some recent positive signals, Erdogan’s basic orientation as an Islamist is bound to remain hostile.
Topic:
Diplomacy, Regional Cooperation, Alliance, and Strategic Stability
Political Geography:
Europe, Turkey, Middle East, and Israel

390. Risk Shocks and Divergence between the Euro Area and the US in the aftermath of the Great Recession

Author:
Thomas Brand and Fabien Tripier
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
Highly synchronized during the Great Recession of 2008-2009, the Euro area and the US have diverged in the period that followed. To explain this divergence, we provide a structural interpretation of these episodes through the estimation for both economies of a business cycle model with financial frictions and risk shocks, measured as the volatility of idiosyncratic uncertainty in the financial sector. Our results show that risk shocks have stimulated US growth in the aftermath of the Great Recession and have been the main driver of the double-dip recession in the Euro area. They play a positive role in the Euro area only after 2015. Risk shocks therefore seem well suited to account for the consequences of the sovereign debt crisis in Europe and the subsequent positive effects of unconventional monetary policies, notably the ECB’s Asset Purchase Programme (APP).
Topic:
Debt, Economics, International Political Economy, Global Recession, Finance, Europe Union, Economic Growth, and Risk
Political Geography:
United States, Europe, and Global Focus

391. The Unpredictable Course of Naval Innovation – The Guns of HMS Thunderer

Author:
Ben Lombardi
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Centre for Military, Security and Strategic Studies
Abstract:
In January 1879, a muzzle-loading gun aboard HMS Thunderer, one of the Royal Navy’s most powerful warships, exploded. A parliamentary investigation determined that the accident occurred because of human error brought about by a highly innovative, but complicated, loading mechanism. Given earlier unsatisfactory experience with early breech-loading guns, contemporary naval engagements and expectations of the future nature of conflict at sea, retention of muzzle-loaders seemed a reasonable course of action. Vast sums were, therefore, spent in ensuring that Britain’s navy had the biggest and most powerful of that type of ordnance. But the explosion and other advances in gun design meant that muzzle-loaders were a dead end, and the incident on Thunderer became the impetus for the Royal Navy to adopt breech-loaders. This incident shines light upon the thinking within the Royal Navy at the time regarding advanced guns. But it also underscores the uncertainty and unpredictability that is inevitably attached to rapid innovation by a large military institution such as the Royal Navy was in the late-19th century. This story is highly relevant to force development considerations today because in any era of continuous technological change, mistakes are inevitable and their expectation should be accommodated within planning.
Topic:
Military Strategy, Military Affairs, Navy, and Maritime
Political Geography:
Britain and Europe

392. West African Elites’ Spending on UK Schools and Universities: A Closer Look

Author:
Matthew Page
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Political, business, and cultural elites from around the world have a strong affinity for the United Kingdom (UK) education system. Nowhere is this truer than in West Africa, where some families in Nigeria and Ghana have a long tradition of sending their children to private boarding schools and universities in the UK. These institutions are especially popular destinations for the offspring of prominent politically exposed persons (PEPs) from the region. Immigration officials, admissions staff, and UK law enforcement are not likely to scrutinize the conditions under which the children of PEPs enroll in British schools, even though the PEPs themselves may have modest legitimate earnings and opaque asset profiles that in other circumstances would raise serious financial concerns. This relative lack of review has allowed some West African PEPs to channel unexplained wealth into the UK education sector. It is not easy to estimate the overall value of this flow, yet it likely exceeds £30 million annually.1 Most of these funds emanate from Nigeria and, to a lesser extent, Ghana; compared with these two countries, only a handful of students from elsewhere in West Africa seek an education in British schools. Tackling this small but significant illicit financial flow should be a priority for UK policymakers. In doing so, they would be helping to realize the UK’s global anticorruption objectives, advance its International Education Strategy, and close a troublesome anti–money laundering (AML) loophole. Failing to do so would exacerbate existing corruption challenges both at home and abroad and increase the UK education sector’s reputational liabilities.
Topic:
Corruption, Education, Law Enforcement, Higher Education, and Elites
Political Geography:
Africa, United Kingdom, Europe, and West Africa

393. Redesigning EU fiscal rules: From rules to standards

Author:
Olivier Blanchard, Alvaro Leandro, and Jeromin Zettelmeyer
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The European Union’s fiscal rules have been suspended until at least the end of 2021. When they are reinstated, they will need to be modified, if only because of the high levels of debt. Proposals have been made—and more are to come—suggesting various changes and simplifications. Blanchard, Leandro, and Zettelmeyer take a step back and discuss how one should think about debt sustainability in the current and likely future EU economic environment. They argue that, given the complexity of the answer, it is an illusion to think that EU fiscal rules can be simple. But it is also an illusion to think that they can ever be complex enough to accommodate most relevant contingencies. Instead, the authors propose abandoning fiscal rules in favor of fiscal standards, i.e., qualitative prescriptions that leave room for judgment together with a process to decide whether the standards are met. Central to this process would be country-specific assessments using stochastic debt sustainability analysis, led by national independent fiscal councils and/or the European Commission. Disputes between member states and the European Commission on application of the standards should preferably be adjudicated by an independent institution, such as the European Court of Justice (or a specialized chamber), rather than by the Council of the European Union.
Topic:
European Union, Fiscal Policy, and Deficit
Political Geography:
Europe

394. Do gendered laws matter for women’s economic empowerment?

Author:
Marie Hyland, Simeon Djankov, and Pinelopi Koujianou Goldberg
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
reater legal equality between men and women is associated with a narrower gender gap in opportunities and outcomes, fewer female workers in positions of vulnerable employment, and greater political representation for women. While legal equality is on average associated with better outcomes for women, the experience of individual countries may differ significantly from this average trend, depending on the countries’ stage of development (as proxied by per capita GDP). Case studies from the Democratic Republic of the Congo, India, and Spain demonstrate this deviation. Especially in developing countries, legislative measures may not necessarily translate into actual empowerment, due mainly to deeply entrenched social norms, which render legal reforms ineffective. Women are more likely than men to be in vulnerable employment in low- and lower-middle-income economies but less likely than men to be in vulnerable employment in upper-middle- and high-income economies. Analysis of a 50-year panel of gendered laws in 190 countries reveals that country attributes that do not vary or change only slowly over time—such as a country’s legal origin, form of government, geographic characteristics, and dominant religion—explain a very large portion of the variation across countries. This finding suggests that the path to legal equality between men and women may be a long and arduous one. Nevertheless, the data also show that the past five decades have seen considerable progress toward legal gender equality. Gendered laws do evolve, suggesting a role for legal reforms in women’s economic empowerment.
Topic:
Gender Issues, Law, Women, Inequality, and Economy
Political Geography:
Africa, Europe, South Asia, India, Democratic Republic of the Congo, and Spain

395. COVID-19 credit support programs in Europe’s five largest economies

Author:
Julia Anderson, Francesco Papadia, and Nicolas Véron
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
n 2020, European governments mitigated the economic impact of COVID-19 lockdowns and other pandemic-fighting programs through a host of initiatives, including efforts to support credit, such as guarantees for bank loans, particularly to small and medium-sized enterprises. This paper presents detailed information about these national credit support programs in the largest national economies of the European Union (France, Germany, Italy, and Spain) and the United Kingdom. The information was collected through thorough examination of published material and extended exchanges with national authorities and financial sector participants. The analysis focuses on (1) how countries positioned themselves on the many tradeoffs that emerged in designing and implementing the programs; and (2) what explains differences in usage across countries and its leveling off everywhere in the second half of 2020.
Topic:
Government, European Union, Finance, Fiscal Policy, and COVID-19
Political Geography:
United Kingdom and Europe

396. Firm Profits and Government Activity: An Empirical Investigation

Author:
Petar Jolakoski, Branimir Jovanovic, Joana Madjoska, Viktor Stojkoski, and Dragan Tevdovski
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
If firm profits rise to a level far above than what would have been earned in a competitive economy, this might give the firms market power, which might in turn influence the activity of the government. In this paper, we perform a detailed empirical study on the potential effects of firm profits and markups on government size and effectiveness. Using data on 30 European countries for a period of 17 years and an instrumental variables approach, we find that there exists a robust relationship between firm gains and the activity of the state, in the sense that higher firm profits reduce government size and effectiveness. Even in a group of developed countries, such as the European countries, firm power may affect state activity.
Topic:
Development, Economics, Government, International Political Economy, and Profit
Political Geography:
Europe and Global Focus

397. Interrelationships between Human Capital, Migration and Labour Markets in the Western Balkans: An Econometric Investigation

Author:
Michael Landesmann and Isilda Mara
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The South-North migration corridor, i.e. migration flows to the EU from Africa, the Middle East and EU neighbouring countries in the East, have overtaken the East-West migration corridor, i.e. migration flows from Central and East European countries to the EU15 and the European Free Trade Association (EFTA). This is likely to dominate migration flows into the EU+EFTA over the coming decades. This paper applies a gravity modelling approach to analyse patterns and drivers of the South-North migration corridor over the period 1995-2020 and explores bilateral mobility patterns from 75 sending countries in Africa, the Middle East and other EU neighbours to the EU28 and EFTA countries. The study finds that income gaps, diverging demographic trends, institutional and governance features and persisting political instability, but also higher climate risks in the neighbouring regions of the EU, are fuelling migration flows along the South-North corridor and will most likely continue to do so.
Topic:
Economics, International Political Economy, Migration, Labor Issues, European Union, Human Capital, and Labor Market
Political Geography:
Europe

398. Talking about Europe: exploring 70 years of news archives

Author:
Enrico Bergamini and Emmanuel Mourlon-Druol
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This paper quantitatively explores news coverage on the subject of ‘Europe’ in three different countries and three newspapers: France (Le Monde), Italy (La Stampa) and Germany (Der Spiegel). We collected and organised large web-scraped datasets covering the period 1945 to 2019. After ensuring the quality of the archives, we identified articles referring to ‘European’ news while leaving aside national and other non-European news, based on a mix of keyword matching, large-scale natural language processing and topic identification on the full text of news articles. Once articles were classified and datasets labelled, we performed a time-series analysis, detecting salient events in European history, across France, Germany and Italy. We analysed these events in light of the evolution of European cooperation and integration since 1945. We found that the most important events in post-war European history are easily identifiable in the archives and that European issues have gathered substantially greater attention since the early 1990s.
Topic:
Governance, Public Opinion, European Union, Media, Populism, and Data
Political Geography:
Europe

399. Interest in European matters: a glass three-quarters full?

Author:
Francesco Papadia, Enrico Bergamini, Emmanuel Mourlon-Druol, and Giuseppe Porcaro
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
A disconnect between European Union integration and the level of interest of EU citizens in European matters is a potential weakness in the EU’s democratic foundations. The existence and possible size of this disconnect is a critical issue in assessing the potential for further integration of the EU and the risks to its stability. To move beyond qualitative assessments of this disconnect, we use three indicators to measure EU citizens’ interest in Europe: turnout in European Parliament elections relative to national elections, Eurobarometer surveys of interest in Europe, and the presence of European news in national newspapers, relative to all published news. We interpret our empirical results using three frameworks: Putnam’s social capital concept, the agenda-setting hypothesis and the no-demos hypothesis. All three indicators point to an increased interest in European matters, especially since the 1990s and the creation of the euro. However, this result does not settle the issue of whether the increased level of interest matches the actual state of integration of the EU’s member countries. Our results indicate the European construction maintains a technocratic character.
Topic:
Governance, European Union, Media, Populism, and Macroeconomics
Political Geography:
Europe

400. The unequal inequality impact of the COVID-19 pandemic

Author:
Zsolt Darvas
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
GDP contractions are typically associated with within-country income inequality increases. While official income inequality data for 2020 will not be available for about two years, the already available employment data for 2020 shows that the difference between highly-educated and low-educated people in terms of job losses is correlated with the economic shock from the COVID-19 pandemic, suggesting that the depth of the economic recession is related to the increase in within-country income inequality in 2020. Scenarios based on historical patterns of recessions and within-country income inequality increases suggest relatively small increases in global income inequality in 2020. Factors mitigating global inequality increases in 2020 include larger GDP per-capita declines in richer advanced countries than in poorer emerging and developing countries, and the positive GDP growth of China, which suggests that within-country inequality in the world’s most populous country might have not changed much in 2020. In contrast, it is quite likely there was a significant increase in European Union income inequality in 2020, partly reversing the decline during the previous decades.
Topic:
Poverty, European Union, Employment, Inequality, and COVID-19
Political Geography:
Europe