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  • Author: Richard Youngs
  • Publication Date: 02-2020
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: As the European Union (EU) debates its new post-2020 funding instruments, EU civil society support faces a pivotal moment. The union has been fine-tuning this support in recent years and is now contemplating further reforms. Civil society around the world is undergoing far-reaching changes as new types of informal activism emerge, governments try to constrict civic activity, and digital technology has major political implications. Against this backdrop, this analysis proposes ten practical ideas for how EU civil society assistance needs to evolve. It focuses on the countries that fall under the EU’s Instrument for Pre-Accession Assistance (IPA)—Turkey and the countries of the Western Balkans—and the six states of the EU’s Eastern Partnership (EaP): Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine. This research examines how EU funding mechanisms need to change and assesses whether current financing proposals are likely to be beneficial or damaging. It suggests how the EU can overcome the main challenges of supporting newer forms of activism. And it explores how the EU can best help civil society to resist the heightened repression it faces in most IPA and EaP states. To improve its civil society assistance, the EU should: 1. tie critical measures to civil society support; 2. set minimum thresholds for mainstreaming; 3. engage with unfamiliar civil society partners; 4. define clearer rules on government-organized nongovernmental organizations (GONGOs); 5. focus on systemic resilience; 6. help local fund raising; 7. widen support networks; 8. better connect civil society to politics; 9. assess the civil society impacts of other EU policies; and 10. link civil society to foreign policy. This publication does not attempt to give a comprehensive or detailed account of all aspects of EU civil society support—something Carnegie has covered elsewhere.1 Rather, it offers a snapshot of the current state of play in this area of policy at a moment when the EU is debating significant changes and is set to make decisions that will affect the future course of its civil society support.
  • Topic: Civil Society, Social Movement, Political Activism
  • Political Geography: Turkey, Eastern Europe, Balkans, European Union
  • Author: James Pamment
  • Publication Date: 03-2020
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The EU Code of Practice on Disinformation (COP) produced mixed results. Self-regulation was a logical and necessary first step, but one year on, few of the stakeholders seem fully satisfied with the process or outcome. Strong trust has not been built between industry, governments, academia, and civil society. Most importantly, there is more to be done to better protect the public from the potential harms caused by disinformation. As with most new EU instruments, the first year of COP implementation has been difficult, and all indications are that the next year will be every bit as challenging. This working paper offers a nonpartisan briefing on key issues for developing EU policy on disinformation. It is aimed at the incoming European Commission (EC), representatives of member states, stakeholders in the COP, and the broader community that works on identifying and countering disinformation. PCIO is an initiative of the Carnegie Endowment for International Peace and does not speak on behalf of industry or any government.
  • Topic: Civil Society, International Cooperation, Disinformation
  • Political Geography: Europe, European Union
  • Author: Mahdi Ghodsi, Hüseyin Karamelikli
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: The Vienna Institute for International Economic Studies (WIIW)
  • Abstract: Economic sanctions are intensively used by international institutions to enforce political objectives. Since 2006 the EU has been implementing general sanctions against the whole economy of Iran, affecting their trade relations. Since 2007, and following the imposition of sanctions by the UN Security Council, the EU has also implemented smart sanctions targeting Iranian entities and natural persons associated with its military activities. In a non-linear autoregressive distributed lag (NARDL), this paper investigates the impact of general and targeted EU sanctions against Iran on quarterly bilateral trade values between the 19 members of the euro area (EA19) and Iran between the first quarter of 1999 and the fourth quarter of 2018. The results indicate that general sanctions have strongly hampered trade flows between the two trading partners. The impact of general sanctions on the total imports of the EA19 from Iran is more than four times stronger than on the total exports of the EA19 to Iran. Moreover, the EU’s general sanctions have hampered trade in almost all sectors, except for the primary sectors. Furthermore, our study finds that the impact of smart sanctions targeting Iranian entities and natural persons is much smaller than the impact of general sanctions on total trade values and the trade values of many sectors. Smart sanctions affect the exports of most sectors from the EA19 to Iran, while they are statistically insignificant for the imports of many sectors from Iran. Thus, this paper provides evidence on the motivations behind smart sanctions, which target specific individuals and entities rather than the whole economy, unlike general sanctions, which have a negative impact on ordinary people.
  • Topic: United Nations, Sanctions, Trade, Trade Policy
  • Political Geography: Europe, Iran, United Nations, European Union
  • Author: Ken Godfrey, Richard Youngs
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Ten years ago, the European Union’s (EU’s) member governments agreed on important council conclusions designed to raise the profile of the union’s support for democracy across the world. In late 2019, EU member states are likely to agree on new democracy conclusions and then, in 2020, on an updated and more operational action plan. They recognize that the strategic context has changed dramatically in the last decade, and the union needs to take on board many lessons about what has worked and not worked in its policies since 2009. Many policymakers hope that the change in leadership of the EU institutions in late 2019 might rejuvenate the bloc’s commitment to international democratic norms, after a period in which the priority has shifted to security issues. This working paper assesses the evolution of EU democracy support policies in recent years and proposes a number of improvements that a new policy framework might offer. The union has focused on improving microlevel tactics, but it most urgently needs a rethink at the macrolevel of its democracy strategies. Ironically, in the last ten years EU approaches to democracy have slowly become more sophisticated and sensitive at the implementation level yet have lost traction because they have failed to keep up with larger political and strategic changes within and beyond Europe. The paper proposes ten action points built around the need for the EU to be more proactive and flexible in supporting democracy and to link democracy support to the union’s changing approach to geopolitical challenges.
  • Topic: Governance, Democracy, Geopolitics
  • Political Geography: Europe, European Union
  • Author: Richard Youngs, Stephen Boucher, Israel Butler, Maarten De Groot, Elisa Lironi, Sophia Russack, Corina Stratulat, Anthony Zacharzewski
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: n recent years some European states have suffered dramatic regression, while others have experienced more subtle forms of democratic erosion. Several EU governments have constricted civic liberties. There has been lively debate about how much European citizens are losing faith in core democratic values. In general, the demand for democratic participation is outstripping its supply at both the national and EU levels. In recent years some European states have suffered dramatic regression, while others have experienced more subtle forms of democratic erosion. Several EU governments have constricted civic liberties. There has been lively debate about how much European citizens are losing faith in core democratic values. In general, the demand for democratic participation is outstripping its supply at both the national and EU levels.
  • Topic: Politics, Governance, Reform, Democracy
  • Political Geography: Europe, European Union
  • Author: Erik Brattberg, Tomáš Valášek
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: European defense cooperation has made unprecedented strides since 2014 and further progress is expected under the new European Commission. Driving these developments are a combination of internal and external factors. Among them is a more challenging security environment in Europe, the disruptive impact of the Brexit negotiations and the election of U.S. President Donald Trump, demands for deeper European Union (EU) integration in the wake of the 2009 eurozone debt crisis, and defense industrial rationales. As the 2016 European Global Strategy makes clear, the EU’s ambition is to become a more strategically autonomous security player capable of taking more independent action, especially in its own neighborhood. But this will require the decisionmaking structures that can act swiftly and autonomously in crises, the necessary civilian and operational capabilities to carry out these decisions, and the means to produce the necessary capabilities through a competitive high-tech European defense industrial base. The evolving EU defense cooperation goes far beyond crisis management operations. At its core, it has the goal of leveraging EU tools to strengthen European security. In particular, new EU defense initiatives such as Permanent Structured Cooperation (PESCO) and the European Defense Fund (EDF), though still nascent, are potential game changers in this regard. PESCO operates as a platform for groups of member states to cooperate on defense capability projects. The EDF, as an internal market instrument backed up by European Commission co-funding, has the potential to spur and incentivize collaboration on the development and acquisition of new capabilities between member states. These initiatives lay a framework upon which stronger cooperation can gradually be structured. Nevertheless, these new European defense schemes will have to have the right level of ambition, be successfully implemented, and contribute to strengthening both European and transatlantic security.
  • Topic: Security, Defense Policy, Transatlantic Relations
  • Political Geography: Europe, European Union
  • Author: Heather Grabbe, Stefan Lehne
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Europe’s “‘man on the moon’ moment” was how European Commission President Ursula von der Leyen spoke on December 11, 2019, of the European Green Deal, a comprehensive program for a fair transition to a low-carbon economy.1 Rarely has the EU undertaken such an ambitious project requiring such a massive mobilization of resources and fundamental changes to most of its policies. The political momentum behind the transition is strong because the vast majority of Europeans, especially young ones, feel a sense of urgency to take action to prevent catastrophe. But political obstacles will rise again as the EU starts to implement practical measures. The union already has a long track record of climate change policy, both as a leader of international climate diplomacy and through the creation of laws and innovative policies such as the Emissions Trading Scheme. However, its efforts have suffered from significant deficits. Clashing interests of member states, some of which still heavily depend on coal, and industrial lobbies raising concerns about international competitiveness and jobs have constrained the EU’s ambitions. Insufficient mechanisms for monitoring and compliance have handicapped the implementation of these policies. The ongoing fragmentation of Europe’s political scene poses additional hurdles. Divisions between Eastern and Western Europe and Northern and Southern Europe hinder efficient decisionmaking. Populist parties already are mobilizing resistance to the necessary policies. Under these circumstances, the EU’s traditional method of depoliticizing difficult issues and submitting them to long technocratic discussions is unlikely to deliver results. To sustain democratic consent, there is no alternative to building public support for a fair climate transition and to deepening democratic engagement.
  • Topic: Climate Change, Environment, Politics, Democracy
  • Political Geography: Europe, European Union
  • Author: Sandra Lavenex, Ivo Križić
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: In light of rising internal cleavages and centrifugal tendencies, differentiated integration (DI) has (re)arisen as a major topic in debates on the future of the European Union. As new forms of participation below the threshold of full membership are needed, this paper provides a conceptualisation of effective and legitimate DI. Going beyond existing scholarship’s focus on the legal dimension of DI, the paper emphasises its organisational component, meaning the variegated participation of EU member states, sub-state entities and third-country actors in the panoply of EU policy-making institutions, such as regulatory agencies and transgovernmental networks. The paper subsequently discusses how to measure effectiveness of such differentiated arrangements in terms of their output, outcome and impact, before theorising under what conditions we are likely to see effective DI. Finally, the paper turns to the question of legitimacy of DI, discussing its meaning, measurement and determinants.
  • Topic: Governance, Democracy, Regional Integration, Accountability, Legitimacy
  • Political Geography: Europe, European Union
  • Author: Sinan Ülgen
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The evolving external threat environment is impacting the internal political dynamics of NATO nations and is accentuating a series of already existing trends – differences in threat perceptions, burden-sharing difficulties, challenges to respond to sub-threshold threats and the rise of populism – which altogether affect the cohesiveness and potentially the effectiveness of NATO as a political and military alliance. NATO’s operational future over the next decades will be shaped by the ingenuity of the transatlantic leadership in developing new arrangements of institutional cooperation between the Alliance and the burgeoning forms of the “coalition of the willing”. The Alliance should nonetheless remain the main transatlantic political forum, given Brexit as well as the rising need for a common political response to the many challenges ranging from migration to failed states. NATO has been relatively successful in adapting to the changing security environment. Its military capabilities remain unparalleled and unrivalled. The more interesting question is however the political one. Namely how the politics of sustaining this Alliance are being shaped by the underlying dynamics that are transforming the global political, economic and military context. The paper is divided in three chapters.
  • Topic: Defense Policy, NATO, Politics, Institutions, Transatlantic Relations
  • Political Geography: Europe, United States of America, European Union
  • Author: Nathalie Tocci
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Much is being said about European power these days. From the new European Commission President von der Leyen and new High Representative Borrell to French President Macron, the idea that Europe must exert power on the global scene is gaining traction. The political intuition behind these statements is absolutely correct. The 21st century rationale for the European project is a profoundly global one. However, to turn it into a practical reality, it’s worth delving into the detail of European power, what it meant, how it has transformed, and what should be done to exercise it in future.
  • Topic: International Relations, Power Politics, Transatlantic Relations
  • Political Geography: Europe, European Union
  • Author: Funda Tekin, Vittoria Meissner, Nils Fabian Müller
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Heterogeneity among countries in the European Union has continuously grown through enlargement processes or the outbreak of specific crises. After reaching important outcomes such as the European Monetary Union or the Schengen Agreement, in the face of the “big bang” enlargement of 2004 both national and European Union representatives subsequently committed to the motto “united in diversity”, confident that the European project would progress and deepen. Nevertheless, the crises in the euro area posed a number of new internal and external challenges to the overall European integration process as well as the EU’s political unity in terms of member states sharing the same rights and obligations, making permanent forms of differentiated integration more likely. Against this background, the paper presents a new collected dataset to outline how the EU narrative of political unity changes during times of increasing political differentiation and consequent differentiated integration. As such, it conducts a narrative analysis in two selected cases, the period between 2000 and 2004 preceding the big bang enlargement as well as the years of the crises in the euro area between 2010 and 2014. Although the existing narrative of political unity in the EU has changed in response to the crises under the more sceptical phrase “divided in unity”, our analysis shows that differentiation is not a threat to political unity.
  • Topic: Foreign Policy, Politics, Regional Integration, Institutions, Integration
  • Political Geography: Europe, France, Poland, Germany, Italy, European Union
  • Author: Chad P. Bown, Jennifer A. Hillman
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: The United States, the European Union, and Japan have begun a trilateral process to confront the Chinese economic model, including its use of industrial subsidies and deployment of state-owned enterprises. This paper seeks to identify the main areas of tension and to assess the legal-economic challenges to constructing new rules to address the underlying conflict. It first provides a brief history of subsidy disciplines in the General Agreement on Tariffs and Trade and the World Trade Organization (WTO) predating any concerns introduced by China. It then describes contemporary economic problems with China’s approach to subsidies, their impact, and the apparent ineffectiveness of the WTO’s Agreement on Subsidies and Countervailing Measures to address them. Finally, it calls for increased efforts to measure and pinpoint the source of the problems—in a manner analogous to how the Organization for Economic Cooperation and Development took on agricultural subsidies in the 1980s—before providing a legal-economic assessment of proposals for reforms to notifications, evidence, remedies, enforcement, and the definition of a subsidy.
  • Topic: Economics, World Trade Organization, Tariffs, Trade
  • Political Geography: Japan, Europe, Asia, North America, United States of America, European Union
  • Author: Ana González, Nicolas Véron
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: China's rapid rise and unique economic system and the increasingly aggressive and disruptive US trade policy are posing an unprecedented threat to the global rules-based trading and economic system. The European Union has critical interests at stake in the current escalation, even as it has so far been comparatively spared from US trade policy belligerence and China's reactions. In this context, the European Union should adopt an independent and proactive stance, building on recent efforts and going beyond them. The European Union, even more than the United States or China, has a strategic interest in the preservation of the global rules-based order embodied by the World Trade Organization (WTO). It must play a leading role in steering WTO reform and modernization, working closely with broadly aligned third countries such as Japan and other players. It should expand its outreach beyond its immediate negotiating counterparts in both the United States and China, and leading European officials at both the EU and member state levels should work at better understanding China. While strengthening its domestic policy instruments to address new challenges, such as the screening of foreign direct investment for security purposes, the European Union must also resist its own temptations of protectionism and economic nationalism. In support of these objectives, the European Union should prepare itself for difficult decisions, which may involve revising some of its current red lines in international trade negotiations. Conversely, the European Union should stand firm on principles such as refusing one-sided agreements and rejecting abusive recourse to national security arguments in trade policies. The European Parliament, in working with the European Council and the European Commission, will have a critical role to play in steering the European Union through these challenging times.
  • Topic: Bilateral Relations, Economy, Trade Wars, Trade Policy
  • Political Geography: China, Asia, North America, United States of America, European Union
  • Author: Maria C. Latorre, Zoryana Olekseyuk, Hidemichi Yonezawa, Sherman Robinson
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper examines 12 economic simulation models that estimate the impact of Brexit (Britain’s exit from the European Union). Most of the studies find adverse effects for the United Kingdom (UK) and the EU-27. The UK’s GDP losses from a hard Brexit (reversion to World Trade Organization rules due to a lack of UK-EU agreement) range from –1.2 to –4.5 percent in most of the models analyzed. A soft Brexit (e.g., Norway arrangement, which seems in line with the nonbinding text of the political declaration of November 14, 2018, on the future EU-UK relationship) has about half the negative impact of a hard Brexit. Only two of the models derive gains for the UK after Brexit because they are based on unrealistic assumptions. The authors analyze more deeply a computable general equilibrium model that includes productivity and firm selection effects within manufacturing sectors and operations of foreign multinationals in services. Based on this latest model, they explain the likely economic impact of Brexit on a wide range of macroeconomic variables, namely GDP, wages, private consumption, capital remuneration, aggregate exports, aggregate imports, and the consumer price index.
  • Topic: Economics, World Trade Organization, Brexit, Multinational Corporations
  • Political Geography: Britain, Europe, European Union
  • Author: Felipe González, Nicolas Véron
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: China's rapid rise and unique economic system and the increasingly aggressive and disruptive US trade policy are posing an unprecedented threat to the global rules-based trading and economic system. The European Union has critical interests at stake in the current escalation, even as it has so far been comparatively spared from US trade policy belligerence and China's reactions. In this context, the European Union should adopt an independent and proactive stance, building on recent efforts and going beyond them. The European Union, even more than the United States or China, has a strategic interest in the preservation of the global rules-based order embodied by the World Trade Organization (WTO). It must play a leading role in steering WTO reform and modernization, working closely with broadly aligned third countries such as Japan and other players. It should expand its outreach beyond its immediate negotiating counterparts in both the United States and China, and leading European officials at both the EU and member state levels should work at better understanding China. While strengthening its domestic policy instruments to address new challenges, such as the screening of foreign direct investment for security purposes, the European Union must also resist its own temptations of protectionism and economic nationalism. In support of these objectives, the European Union should prepare itself for difficult decisions, which may involve revising some of its current red lines in international trade negotiations. Conversely, the European Union should stand firm on principles such as refusing one-sided agreements and rejecting abusive recourse to national security arguments in trade policies. The European Parliament, in working with the European Council and the European Commission, will have a critical role to play in steering the European Union through these challenging times.
  • Topic: International Relations, Economics, Trade Wars, Trade Policy
  • Political Geography: China, Europe, Asia, North America, United States of America, European Union
  • Author: Samuel B. H. Faure
  • Publication Date: 05-2019
  • Content Type: Working Paper
  • Institution: Centre d'Etudes et de Recherches Internationales
  • Abstract: Published in the context of Brexit, this research paper analyses the ‘double relationship’ between Britain and Europe: being ‘in’ by taking part in co-operation with other European states, and at the same time being ‘out’ by staying away from or even leaving multilateral programmes in Europe. This dilemma is worked on from the case of defence procurement policy. How does the British government decide to be both ‘in’ and ‘out’ of Europe by participating in the A400M military transport aircraft programme and withdrawing from the EuroMale UAV programme? Based on exclusive data, the decision in favour of the A400M (‘in’) is explained by the action of political, administrative and industrial actors who perceive the A400M as a ‘truck’ rather than a ‘race car’. As for the British State’s decision not to participate in the EuroMale programme (‘out’), it is conditioned by a weakening of the political will of political actors, and at the same time by a strengthening of conflicting relations between French and British administrations and industries. In doing so, this research contributes to the literature on the acquisition of armaments in strategic studies, and to the literature on differentiated integration in European studies.
  • Topic: Security, Defense Policy, Political Economy, European Union, Brexit, Conflict, Europeanization
  • Political Geography: United Kingdom, France, Western Europe, European Union
  • Author: Nimrod Goren, Nitzan Horowitz, Ronen Hoffman, Yohanan Plesner, Zehava Galon, Nadav Tamir, Ofer Shelah, Maya Sion-Tzidkiyahu, Zouheir Bahloul, Elie Podeh, Einat Levi, Merav Michaeli
  • Publication Date: 01-2019
  • Content Type: Working Paper
  • Institution: Mitvim: The Israeli Institute for Regional Foreign Policies
  • Abstract: The Mitvim Institute’s second annual conference took place in Tel Aviv on December 30, 2018. The conference explored alternative directions for Israeli foreign policy towards the April 2019 general elections. In recent years, Mitvim has formulated a series of guiding principles for a new Israeli foreign policy paradigm – a pro-peace, multi-regional, internationalist, modern and inclusive foreign policy. The conference sought to translate these principles into concrete policy directions, which will enable Israel to improve its foreign policy, increase its regional belonging in the Middle East and Europe, and make progress towards peace with the Palestinians. The conference featured Members of Knesset (MKs) Ofer Shelah and Merav Michaeli, Dr. Nimrod Goren, Dr. Ronen Hoffman, Zehava Galon, Nadav Tamir, Yohanan Plesner, Dr. Maya Sion-Tzidkiyahu, Zouheir Bahloul, Prof. Elie Podeh, and Einat Levi. It was moderated by Nitzan Horowitz and Merav Kahana-Dagan of Mitvim. The conference was held in cooperation with Friedrich-Ebert-Stiftung, and can be watched (in Hebrew) on Mitvim’s YouTube channel.
  • Topic: Foreign Policy, Diplomacy, Government, National Security, Diaspora, Democracy, Resilience
  • Political Geography: Middle East, Israel, Palestine, European Union
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: Mitvim: The Israeli Institute for Regional Foreign Policies
  • Abstract: Ties with the EU are a strategic asset for the State of Israel. Europe is Israel’s largest trading partner, a source of political and defense support (despite disagreements), an anchor of shared norms and values, a partner in cultural creation, and a central collaborator in research and development. The importance of these ties obliges Israel to invest attention and resources in preserving and even deepening and expanding them. Done right, Israel could leverage the tremendous potential of its ties with Europe for the improved wellbeing of its citizens and for its international standing. However, in recent years, the Israeli government has been leading a negative campaign against the EU. It has been criticizing the EU for being anti-Israel, while making efforts to increase divisions between EU Member States in order to limit the EU’s capacity to play a role in the Israeli-Palestinian issue. Toward the formation of a new Israeli government in late 2019, this article presents ten guiding principles for an improved Israeli foreign policy toward the EU, based on the work of a Mitvim Institute task team.
  • Topic: Foreign Policy, Politics, International Affairs, Bilateral Relations
  • Political Geography: Middle East, Israel, Arab Countries, European Union
  • Author: Maciej Bałtowski, Piotr Kozarzewski
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: The paper discusses the role of the state in shaping an economic system which is, in line with the welfare economics approach, capable of performing socially important functions and achieving socially desirable results. We describe this system through a set of indexes: the IHDI, the World Happiness Index, and the Satisfaction of Life index. The characteris-tics of the state are analyzed using a set of variables which describe both the quantitative (government size, various types of governmental expenditures, and regulatory burden) and qualitative (institutional setup and property rights protection) aspects of its functioning. The study examines the “old” and “new” member states of the European Union, the post-communist countries of Eastern Europe and Asia, and the economies of Latin America. The main conclusion of the research is that the institutional quality of the state seems to be the most important for creation of a socially effective economic system, while the level of state interventionism plays, at most, a secondary and often negligible role. Geographical differentiation is also discovered, as well as the lack of a direct correlation between the characteristics of an economic system and the subjective feeling of well-being. These re-sults may corroborate the neo-institutionalist hypothesis that noneconomic factors, such as historical, institutional, cultural, and even genetic factors, may play an important role in making the economic system capable to perform its tasks; this remains an area for future research.
  • Topic: Demographics, Economy, Economic growth, State, Economic Policy, Institutions, Trade, Welfare
  • Political Geography: Europe, Eastern Europe, Asia, Latin America, European Union
  • Author: Tarek A. Hassan, Laurence van Lent, Stephan Hollander, Ahmed Tahoun
  • Publication Date: 01-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: Using tools from computational linguistics, we construct new measures of the impact of Brexit on listed firms in the United States and around the world: the share of discussions in quarterly earnings conference calls on costs, benefits, and risks associated with the UK’s intention to leave the EU. Using this approach, we identify which firms expect to gain or lose from Brexit and which are most affected by Brexit uncertainty. We then estimate the effects of these different kinds of Brexit exposure on firm-level outcomes. We find that concerns about Brexit-related uncertainty extend far beyond British or even European firms. US and international firms most exposed to Brexit uncertainty have lost a substantial fraction of their market value and have reduced hiring and investment. In addition to Brexit uncertainty (the second moment), we find that international firms overwhelmingly expect negative direct effects of Brexit (the first moment), should it come to pass. Most prominently, firms expect difficulties resulting from regulatory divergence, reduced labor mobility, trade access, and the costs of adjusting their operations post-Brexit. Consistent with the predictions of canonical theory, this negative sentiment is recognized and priced in stock markets but has not yet had significant effects on firm actions.
  • Topic: Economics, Political Economy, Regional Cooperation, Brexit, Global Political Economy, Economic Policy
  • Political Geography: Britain, United States, United Kingdom, Europe, European Union
  • Author: Cornelius Adebahr
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Europe and Iran had begun to invest in a closer commercial relationship just when the United States withdrew from the nuclear deal in May 2018. Since then, Washington has re-imposed its stringent economic sanctions, targeting Iran’s oil exports as a major source of government revenue but also banning financial transactions with the country. This poses an enormous challenge for the EU, which had intended to use the 2015 agreement as a stepping stone to promote regional cooperation and, ultimately, a more comprehensive relationship with Iran. Paper produced in the framework of the IAI-FEPS project entitled “Europe and Iran in a fast-changing Middle East: Confidence-building measures, security dialogue and regional cooperation”, December 2018.
  • Topic: Foreign Policy, International Trade and Finance, Bilateral Relations, Sanctions, Transatlantic Relations
  • Political Geography: Europe, Iran, Middle East, North America, United States of America, European Union
  • Author: Karim Makdisi
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Refugee movements are not a new phenomenon in the Middle East and North Africa. The history of the region has been shaped by waves of displacement and refugee crises, and the most recent, the dramatic case of Syria, is still in process. This paper investigates refugee movements in the region and their impact on regional dynamics by focusing on two important case studies: Lebanon and Turkey. It explores each country’s response to the Syrian refugee crisis in detail, while addressing the role of relevant stakeholders, such as international organizations, civil society and government, in humanitarian relief efforts as well as in refugee protection and management.
  • Topic: Humanitarian Aid, Migration, Refugees, Syrian War, Mobility
  • Political Geography: Europe, Turkey, Middle East, Lebanon, Syria, European Union
  • Author: Vincenza Scherrer, Alba Bescos Pou
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Geneva Centre for Security Sector Governance (DCAF)
  • Abstract: Multilateral organizations are playing an important role in shaping the SSR agenda through the development of policy and guidance and by engaging in the provision of a wide range of SSR support on the ground. However, despite their significant engagement in this area, there is no predictability in terms of the type of support that multilateral organizations will take on. While policy frameworks concur that international support should be well coordinated, the support provided by these organizations tends to be compartmentalized in practice. As a result, considerable time is often lost while each organization separately assesses a conflict, maps what others are doing, and agrees on a division of labour. The report presents the findings of a multi-year research project on the approaches of the United Nations (UN), the African Union (AU), the European Union (EU), and the Organization for Security and Co-operation in Europe (OSCE) to supporting nationally-led SSR processes. The study aims at developing an empirically-based understanding of the roles and potential comparative advantages of these organizations in SSR support, as well as avenues for enhanced cooperation. For this purpose, the study examines the following three categories related to the role of multilateral organizations in SSR support: normative frameworks, institutional capacities, and operational practices. This report was commissioned from DCAF by the Security Sector Reform Unit (SSRU) of the United Nations Department of Peacekeeping Operations (DPKO).
  • Topic: Security, Human Rights, Peacekeeping, Reform, Multilateralism
  • Political Geography: Geneva, Africa, Europe, United Nations, European Union, African Union
  • Author: Roee Kibrik, Nimrod Goren
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: Mitvim: The Israeli Institute for Regional Foreign Policies
  • Abstract: This document briefly outlines major trends in Israel’s regional foreign policies over the past six months. It is based on the Mitvim Institute’s monthly reports that cover ongoing developments in the Israeli-Palestinian peace process/conflict, Israel’s relations with the Middle East, Europe and the Mediterranean, and the conduct of Israel’s Foreign Service.
  • Topic: Conflict Prevention, Foreign Policy, Diplomacy, Regional Cooperation, International Affairs, Peace
  • Political Geography: Russia, Turkey, Middle East, Israel, Greece, Jerusalem, Gaza, Syria, Egypt, Jordan, Cyprus, European Union
  • Author: Marek Gora
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: The end of 2018 will mark the 20th anniversary of the introduction of Poland’s current pension system. It has been subjected to constant modifications, in general dictated by either ideological or ad hoc goals, but it has resisted destruction, and in essence is working as it was designed. The need for its introduction, misleadingly called a reform, was dictated by a long-term shift in the age structure of the population. In essence, the earlier system was replaced by the current one. The essence of this switch is a shift from the quasi-tax financing suited to the population structure by age of the past, to quasi-savings financing suited to the structure in the 21st century. This text is not an overview of the 20-year history of the current system; it is a critical examination of the functioning of Poland’s pension system against the backdrop of the universal challenges that pension systems are facing in the 21st century. The text barely touches on many fundamental questions. A full discussion of them would require a longer discourse, for which there is no space here. The purpose of introducing the current system was to balance the interests of the working generation and the generation of retirees. The previous system worked only for the interests of retirees, while those of the working generation, expressed in the level of its net income, was treated as an afterthought. This kind of system could operate in the 20th century. But in the 21st, it turned out to be not so much immediately impossible, as socially harmful. A change of system was thus essential. The current system is now quite well suited to the current population structure. The biggest problem in its functioning is citizens’ negligible awareness of how it is actually structured and what that implies – both on the macro level and on the level of individual behaviors. Pension issues are counterintuitive. This results both from their combination of macro- and microeconomic issues and from the fact that their time horizon exceeds any other undertaking. For a pension system to work well, it has to be understood by its participants; meanwhile, pension education practically does not exist. What’s worse, the public debate concerning pensions tends to frighten people rather than helping them. Instead of knowledge, there are chaotic assumptions, often far removed from reality. They are adopted as axiomatic, or as a result of inertia in thinking, or unrealistic expectations. In the first case, the current system is perceived as if it were the previous one. Meanwhile, in reality they are fundamental opposites. In the second case, people expect that the system will miraculously multiply the funds available for pensions. But in reality each system can only divide up what has been created. Discussions partly concern side issues, partly consist of misunderstandings and partly are derivations of general views. Much harm was done by the discussion on changing the proportions of the division of contributions in the universal system (the so-called OFE discussion). Debate on pension questions requires that the issues be laid out in an orderly fashion; we need a critical view of basic concepts and how they are understood. Without that there is no chance to solve the problems of pensions systems, or even to understand what they’re about.
  • Topic: Demographics, Labor Issues, Finance, Social Policy
  • Political Geography: Europe, Poland, European Union
  • Author: Vandana Gyanchandani
  • Publication Date: 08-2018
  • Content Type: Working Paper
  • Institution: Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
  • Abstract: Three methodologies are used to enforce labour and environmental commitments in the US and EU trade agreements: cooperative, sanctions and composite. In-depth analysis of the scope of commitments, level of protection, institutional framework as well as types of informal and formal dispute processes elucidates the pros and cons of such methodologies. Sanctions approach weakens cooperation by misjudging the complexity of domestic policy adjustments through transnational governance. Cooperative mechanism within the NAAEC's composite design emerges as the best approach: Submission on Enforcement Matters (SEM). As it provides for an independent secretariat supported by civil society group and factual records as a sunshine remedy to review citizen submissions. However, the process is constrained by political clout, lack of managerial capacity and legal dilemmas around informal lawmaking (IN-LAW) procedures.
  • Topic: Economics, Environment, International Cooperation, International Trade and Finance, Labor Issues, Sustainable Development Goals, Global Political Economy
  • Political Geography: United States, Europe, Global Focus, European Union
  • Author: Mikhail Krutikhin
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Russia and the West: Reality Check." The nature and shape of the Russian oil and gas industry is not just Moscow’s concern. The ups and downs of Russia’s energy production and exports are factors that affect the global political environment. The influx of revenues from hydrocarbon sales determines the way the Kremlin behaves in the world arena, and the notorious unpredictability of the Russian political leadership becomes even more pronounced when oil prices show an appetite for instability.
  • Topic: International Relations, Energy Policy, International Trade and Finance, Oil, Natural Resources, Gas
  • Political Geography: Russia, United States of America, European Union
  • Author: Nikolay Kozhanov
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Russia and the West: Reality Check." The current level of Russian presence in the Middle East is unprecedented for the region since the fall of the Soviet Union. Records of diplomatic and political contacts show increased exchange of multilevel delegations between Russia and the main regional countries. After 2012, Moscow has attempted to cultivate deeper involvement in regional issues and to establish contacts with forces in the Middle East which it considers as legitimate. Moreover, on September 30, 2015, Russia launched air strikes against Syrian groupings fighting against the regime of Bashar al-Assad. Before that time, Russia had tried to avoid any fully-fledged involvement in the military conflicts in the region. It was also the first time when it adopted an American military strategy by putting the main accent on the use of air power instead of ground forces. Under these circumstances, the turmoil in the Middle East, which poses a political and security challenge to the EU and United States, makes it crucial to know whether Russia could be a reliable partner in helping the West to stabilize the region or whether, on the contrary, Moscow will play the role of a troublemaker.
  • Topic: Foreign Policy, Diplomacy, Military Strategy, Military Intervention, Syrian War
  • Political Geography: Russia, Iran, Middle East, Israel, Libya, Palestine, Syria, Egypt, United States of America, European Union, Gulf Cooperation Council
  • Author: Dzianis Melyantsou
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Eastern Voices: Europe's East Faces an Unsettled West." The new geopolitical environment formed after the annexation of Crimea and the war in the Donbas, together with emerging threats and challenges, are pressing both Belarus and the West to revise their policies in the region as well as their relations with each other. In this new context, Belarus is seeking a more balanced foreign policy and, at least towards the Ukrainian crisis, a more neutral stance.
  • Topic: International Relations, Diplomacy, International Trade and Finance, War, Territorial Disputes, Foreign Aid, Sanctions, Geopolitics
  • Political Geography: Russia, Europe, Ukraine, Belarus, Crimea, United States of America, European Union
  • Author: Stepan Grigoryan, Hasmik Grigoryan
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Eastern Voices: Europe's East Faces an Unsettled West." With the growing tension between East and West, and with the rejection by Russia of common international rules, the question how the post-Soviet states should construct their foreign relations remains of utmost importance. Armenia, a landlocked country in the South Caucasus, has yet to accomplish its transition from socialism to democracy and market economy. Moreover, efforts along these lines have regressed, and the authorities do little to implement reforms or to establish a healthy system of checks and balances. In recent months the country has been overwhelmed by protests. The authorities neither address domestic problems nor satisfy protestor demands. Instead the Armenian government frequently resorts to disproportionate use of police forces against peaceful protestors. With political prisoners and hundreds of detained civil activists, journalists and politicians, it will be impossible to build an independent and prosperous country. Armenia has a rich history and culture, but at the same time it has experienced dark historical periods. The Armenian Genocide of 1915 and the unresolved Nagorno-Karabakh conflict shape Armenian identity. However, such historical issues have been instrumentalized by the Armenian government. Instead of building the future, Armenian authorities emphasize the past. Policies based on past grievances lead the Armenian government to become more and more dependent on Russia. Armenia needs to tackle corruption, falsified elections, a corrupt judiciary and many other problems -- and Western partners whose efforts are based on democratic values, free and fair elections, and respect towards human rights have a crucial role to play. This chapter offers background on Armenia's relations with various actors, historical matters that shape Armenian identity, and the failure and lack of will to improve the country's current situation. It then discusses the role of the West and its importance for Armenia. We seek to answer why Armenia slowed down its reform efforts, what the West needs to do to improve the situation in Armenia.
  • Topic: Civil Society, Corruption, Genocide, International Cooperation, Reform, Political Prisoners, Conflict
  • Political Geography: Russia, Europe, Eastern Europe, Armenia, European Union
  • Author: Anar Valiyev
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Eastern Voices: Europe's East Faces an Unsettled West." Since gaining independence twenty-five years ago, Azerbaijan has pursued three major foreign policy goals: resolution of the Karabakh conflict based on the territorial integrity of the country; preservation of its own independence and security; and finally becoming the major regional player by using its energy and geographical positions. Azerbaijan’s foreign policy actions may be considered a kind of “silent diplomacy,” which Baku is using to gradually develop Azerbaijan’s role in the region, playing off of contradictions among other powers. During this time, Baku has taken some bold actions that indicate its policy is not dependent on regional powers and that its interests are to be taken into account. Today, looking at the fast-changing situation in the region, we can conclude that none of these goals have been fulfilled completely. In fact, the country is perhaps facing more challenges than before. The Karabakh conflict remains one of the most problematic issues. In terms of security and trade, Azerbaijan is still struggling to find its place in the mosaic of such institutions as the EU and the Eurasian Economic Union. In addition, the sudden drop in oil prices and the inability of the country to create a diverse economy has become another headache for the political establishment. Moreover, the lack of needed investments decreases the chances that the country will become a regional hub. This chapter reviews current problems challenging the country and recommends ways the transatlantic community can deal with Baku on pressuring issues.
  • Topic: Foreign Policy, Diplomacy, Oil, Territorial Disputes, Economic structure
  • Political Geography: Eastern Europe, Azerbaijan, South Caucasus, European Union
  • Author: Olexiy Haran, Petro Burkovskiy
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Eastern Voices: Europe's East Faces an Unsettled West." In this chapter, Haran and Burkovskiy begin with a general analysis of mutual perceptions from both sides, then proceed to identify key interests and concerns regarding the war in Donbas, and analyze whether the political aspects of the Minsk agreements can be implemented. They then suggest some recommendations on the way ahead. The authors argue that Putin’s success in attacking Ukraine, which is impossible to achieve without undermining unity among Western powers, could embolden him to exert his power and influence in wider Europe. Moreover, as U.S.-EU ties are likely to undergo some stress after elections on each side of the Atlantic in 2016 and 2017, Russia will to be tempted to take advantage of such turbulence by pressing forward with its goals in Ukraine and pushing the so-called “grey zone” of insecurity westward before a new equilibrium is found within the Euro-Atlantic area.
  • Topic: International Relations, NATO, Treaties and Agreements, Territorial Disputes, Grand Strategy, Conflict
  • Political Geography: Russia, Ukraine, Crimea, United States of America, European Union
  • Author: Hans Martin Sieg
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Eastern Voices: Europe's East Faces an Unsettled West." Since Moldova's November 2014 election, the country's image has changed drastically from the “success story” of the EU´s Eastern Partnership to that of a “captured state.” Moldova's politics continue to be defined by corruption and vested interests, which take advantage of weak state institutions and public administration, an ineffective judiciary and law enforcement agencies. This environment has enabled hostile takeovers of financial companies, often through concealed offshore operations, for criminal purposes, money-laundering schemes and a spectacular banking fraud, which was uncovered in autumn 2014. Low incomes have prompted hundreds of thousands of Moldovans to leave the country in search of a better life. Rivalries for political power, control over institutions, and economic assets have generated growing crises within different ruling coalitions, resulting in rapid changeover in governments, the break-up of major political parties and the formation of new parliamentary majorities with precarious democratic legitimacy. All of these factors have subjected Moldova to an unrelenting series of governmental, economic, financial and social crises since early 2015. The deeper causes of these crises can be traced to much earlier developments, however, and are deeply rooted in local structures.
  • Topic: International Relations, Corruption, Development, Economics, Reform, Elections, Geopolitics
  • Political Geography: Russia, Europe, Moldova, European Union
  • Author: Alexander Van der Bellen
  • Publication Date: 09-2017
  • Content Type: Working Paper
  • Institution: Columbia University World Leaders Forum
  • Abstract: His Excellency Dr. Alexander Van der Bellen, Federal President of the Republic of Austria, addresses the Columbia University World Leaders Forum in Low Library.
  • Topic: Climate Change, Human Rights, International Cooperation, International Affairs, European Union
  • Political Geography: New York, Europe, Austria, European Union
  • Author: William Chislett
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Elcano Royal Institute
  • Abstract: Although some Spaniards joke that the country has got along fine with a caretaker government for 315 days, this year has been a lost one. There are some pressing issues that need to be tackled now that there is finally a functioning government. But the new Popular Party (PP) government no longer has an absolute majority. As a minority administration it will have to negotiate its laws and reforms in a deeply fragmented parliament, the result of the upending of the PP and the Socialist Party (PSOE) by two new parties, the far left Unidos Podemos (UP) and the centrist Ciudadanos (C’s). The government has a lot on its plate, including the following: (a) belatedly approving the budget for 2017 and meeting the EU’s threshold for the deficit (3% of GDP) in 2018 (a target imposed by Brussels that the PP persistently missed); (b) deciding what to do about the push for independence in Catalonia (the region’s government says it will hold a referendum on the issue in September 2017 regardless of whether the central government approves it or not); (c) cleaning up corruption in the political class; (d) making the judiciary more independent; (e) possibly deepening the labour market reforms in a bid to reduce the still very high unemployment rate (18.9%); (f) reforming an education system whose early school-leaving rate of 20% is close to double the EU average; (g) bolstering the ailing pension system hit by a sharp fall in the number of social security contributors and a rapidly ageing population; and (h) making its voice heard more in the post-Brexit debate.
  • Topic: International Relations, Brexit
  • Political Geography: Spain, European Union
  • Author: Zbigniew Polański
  • Publication Date: 12-2017
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: This paper contrasts the impact of the 1929 and 2008 world crises on the Polish economy. Her much better performance during the recent crisis can be explained by two groups of factors: first, by very different stabilization policies and second, by distinct structural developments (resulting both from authorities' structural policies and spontaneous processes). It is emphasized that several factors responsible for Poland's superior performance during the 2008 crisis also contributed to her economic success vis-à-vis other European Union countries.
  • Topic: Financial Crisis, Economic structure, Economic growth, Global Financial Crisis, Trade
  • Political Geography: Europe, Poland, European Union
  • Author: Robert Stehrer, Roman Stöllinger, Sandra Leitner
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: Global trade patterns are changing rapidly. Emerging economies are increasing their share of exports overall and intensifying competition in nearly all sectors. Using a gravity-based approach, this report examines the future profile of European Union (EU) world market shares at the aggregate and sectoral level. It further points towards the changing patterns of trade within the EU. Based on the results, some conclusions on EU industrial policy are drawn.
  • Topic: Industrial Policy, International Trade and Finance, Global Markets, Economic growth, Trade
  • Political Geography: Europe, Global Focus, European Union
  • Author: Renata Karkowska
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: The goal of this study is to identify empirically how country-level development, taking into account the financial and macroeconomic environment, affect the risk profiles of the banking sector in Europe. Through a dataset that covers 3,399 European banks spanning the period 1996-2011, and the methodology of panel regression, the empirical findings document the heterogeneity of banking risk determinants. I examine the implications of bank leverage that manifest itself as spreading and growing instability. The study contributes to and combines the different strands of literature and understanding of the importance of the links between the variables. It also contributes to the literature by focusing on a group of countries from Central and Eastern Europe and the Commonwealth of Independent States that have not been studied before. The extended model provides a causal link between risk in the banking sector and the growth of the financial market and macroeconomy. I apply four measures of country-level development that are available in previous studies: share of foreign ownership in the banking sector; the financial freedom index; the real growth rate; and stock market capitalization. Using these measures, I obtain different results which highlight the fact that the effect of macroeconomic and financial development on banking sector risk-taking is ambiguous.
  • Topic: Financial Markets, Economic growth, Banks, Trade Liberalization, Macroeconomics, Trade
  • Political Geography: Europe, Eastern Europe, Central Europe, European Union
  • Author: Daniel Daianu
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Center for Social and Economic Research - CASE
  • Abstract: The financial crisis and its ensuing effects have brought back into the limelight the issue of cycles and of policies which fuel or mitigate crises. Cognitive and operational models in economics and business are questioned. There is a specter of much lower economic growth in the industrialized world. Central banks are over-burdened. This makes central bankers’ lives much more complicated and obfuscates the boundaries between monetary policy and fiscal policy, especially when financial stability gets to center stage. New systemic risks show up in capital markets. The eurozone has escaped collapse owing to the European Central Bank’s extraordinary operations and large macro-imbalance corrections in its periphery, but major threats persist. This paper focuses on economic cycles and policies in an international (European) context. Attention is paid to linkages between domestic cycles and the European financial cycle, drivers of financial cycles, finance deregulation and systemic risks, ultra-low interest rates, the international policy regime, and global stability. The experience of European emerging economies is taken into account.
  • Topic: Debt, Monetary Policy, Financial Crisis, Economies, Economic growth, Interest Rates, Fiscal Policy
  • Political Geography: Europe, European Union
  • Author: Stuart Russell, Carla Tokman, Douglas Barrios, Matt Andrews
  • Publication Date: 07-2016
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: As described in Russell, Barrios & Andrews (2016), past attempts to understand the sports economy have been constrained by a number of data limitations. For instance, many of these accounts use revenues when value added measures would be more appropriate. Similarly, many accounts use top-down definitions that result in double counting and an inflated estimate of the size of the sports economy. More importantly, past accounts have focused most of their efforts estimating the overarching size of the sports economy. Constrained by aggregated data that groups a wide range of sports-related economic activities together, they primarily discuss the size of the sports-related economic activity. Their focus on answering the question of "How big?" conceals substantial differences between activities. Core sports activities, such as professional sports teams, behave very differently than activities, like sporting goods manufacturing that are closer to the periphery of the sports economy. Likewise, there are even important differences amongst core sports activities. Professional sports teams are very different than fitness facilities, and they might differ in different respects. Guerra (2016) demonstrates that, when detailed, disaggregated data are available, the possibilities to analyze and understand the sports are greatly increased. For instance, Guerra (2016) were able to conduct skills-based analyses, magnitude analyses, employment characterizations, geographic distribution analyses, and calculations of the intensity of sports activities. The sector disaggregation, spatial disaggregation, and database complementarity present in the Mexico data used in that paper therefore enables a more detailed and nuanced understanding of sports and sports-related economic activity. Data with characteristics similar to those found in Mexico are few and far between. We have, unfortunately, been unable to completely escape such data limitations. However, we have compiled and analyzed a large array of employment data on sports-related economic activities in Europe. In the paper that follows, we describe our analyses of these data and the findings produced. Section 1 begins with a discussion of employment in sports and an explanation of why we chose this variable for our analyses. Section 2 provides an overview of the data used in this paper particularly focusing on the differences between it and the Mexico data discussed in Guerra (2016). It also describes the methodology we use. We analyze these data using one of two related measures to understand the intensity of sports-related activities across different geographic areas in countries. We also construct measures at the level of a single country in order to compare across entire economies. At the international level, we adopt the revealed comparative advantage (RCA) measure that Balassa (1965) first developed to analyze international trade. Within specific countries, however, we use a population-adjusted version of the RCA measure known as RPOP. Section 3 presents the most relevant findings and Section 4 discusses their limitations. Section 5 concludes with the lessons learned and avenues for future research. While there are limitations on these analyses, they can give policymakers a better understanding of the distribution and concentration of sports across space. Such information can serve as an important input for sports-related investment decisions and other sports-related policies.
  • Topic: Employment, Sports, Economy, International Development
  • Political Geography: Europe, Central America, European Union
  • Author: Stuart Russell, Douglas Barrios, Matt Andrews
  • Publication Date: 07-2016
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Data on the sports economy is often difficult to interpret, far from transparent, or simply unavailable. Data fraught with weaknesses causes observers of the sports economy to account for the sector differently, rendering their analyses difficult to compare or causing them to simply disagree. Such disagreement means that claims regarding the economic spillovers of the industry can be easily manipulated or exaggerated. Thoroughly accounting for the industry is therefore an important initial step in assessing the economic importance of sports-related activities. For instance, what do policymakers mean when they discuss sports-related economic activities? What activities are considered part of the "sports economy?" What are the difficulties associated with accounting for these activities? Answering these basic questions allows governments to improve their policies. The paper below assesses existing attempts to understand the sports economy and proposes a more nuanced way to consider the industry. Section 1 provides a brief overview of existing accounts of the sports economy. We first differentiate between three types of assessments: market research accounts conducted by consulting groups, academic accounts written by scholars, and structural accounts initiated primarily by national statistical agencies. We then discuss the European Union’s (EU) recent work to better account for and understand the sports economy. Section 2 describes the challenges constraining existing accounts of the sports economy. We describe two major constraints - measurement challenges and definition challenges - and highlight how the EU's work has attempted to address them. We conclude that, although the Vilnius Definition improves upon previous accounts, it still features areas for improvement. Section 3 therefore proposes a paradigm shift with respect to how we understand the sports economy. Instead of primarily inquiring about the size of the sports economy, the approach recognizes the diversity of sports-related economic activities and of relevant dimensions of analysis. It therefore warns against attempts at aggregation before there are better data and more widely agreed upon definitions of the sports economy. It asks the following questions: How different are sports-related sectors? Are fitness facilities, for instance, comparable to professional sports clubs in terms of their production scheme and type of employment? Should they be understood together or treated separately? We briefly explore difference in sports-related industry classifications using data from the Netherlands, Mexico, and the United States. Finally, in a short conclusion, we discuss how these differences could be more fully explored in the future, especially if improvements are made with respect to data disaggregation and standardization.
  • Topic: Development, Sports, Economy, Economic Policy
  • Political Geography: Europe, European Union
  • Author: Matt Andrews, Peter Harrington
  • Publication Date: 01-2016
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Men’s professional football is the biggest sport in the world, producing (by our estimate) US $33 billion a year. All is not well in the sector, however, with regular scandals raising questions about the role of money in the sport. The 2015 turmoil around FIFA is obviously the most well known example, creating a crisis in confidence in the sector. This study examines these questions, and the financial integrity weaknesses they reveal; it also offers ideas to strengthen the weaknesses. The study argues that football’s financial integrity weaknesses extend far beyond FIFA. These weaknesses have emerged largely because the sector is dominated by a small elite of clubs, players and owners centered in Europe’s top leagues. The thousands of clubs beyond this elite have very little resources, constituting a vast base of ‘have-nots’ in football’s financial pyramid. This pyramid developed in recent decades, fuelled by concentrated growth in new revenue sources (like sponsorships, and broadcasting). The growth has also led to increasingly complex transactions—in player transfers, club ownership and financing (and more)—and an expansion in opportunities for illicit practices like match-fixing, money laundering and human trafficking. We argue that football’s governing bodies – including FIFA – helped establish this pyramid. We explore the structural weaknesses of this pyramid by looking at five pillars of financial integrity (using data drawn from UEFA, FIFA, clubs, primary research, and interviews). In the first pillar of Financial Transparency and Literacy we find that a vast majority of the world’s clubs and governing bodies publish no financial data, leaving a vast dark space with no transparency. In the second pillar of Financial Sustainability we estimate that a majority of global clubs and governing bodies are at ‘medium to high risk’ of financial failure. We find, additionally, that European tax debts have grown despite Financial Fair Play, and confederations and FIFA contribute to a pattern of weak Fiscal Responsibility. We then create a new metric of Financial Concentration and find that the football sector is at ‘high risk’ of over-concentration, which poses existential questions for many clubs and even leagues. In the final pillar of Social Responsibility and Moral Reputation, we find that football’s governing bodies face a crisis of legitimacy stemming from a failure to tackle moral turpitude, set standards and regulate effectively. We suggest a set of reforms to re-structure FIFA in particular, separating its functions and stressing its regulatory role.
  • Topic: Crime, Sports, Economy, World Cup
  • Political Geography: Europe, Global Focus, European Union
  • Author: Ricardo Hausmann, Frank Neffke
  • Publication Date: 01-2016
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Is labor mobility important in technological diffusion? We address this question by asking how plants assemble their workforce if they are industry pioneers in a location. By definition, these plants cannot hire local workers with industry experience. Using German social-security data, we find that such plants recruit workers from related industries from more distant regions and local workers from less-related industries. We also show that pioneers leverage a low-cost advantage in unskilled labor to compete with plants that are located in areas where the industry is more prevalent. Finally, whereas research on German reunification has often focused on the effects of east-west migration, we show that the opposite migration facilitated the industrial diversification of eastern Germany by giving access to experienced workers from western Germany.
  • Topic: Science and Technology, Labor Issues, Labor Policies, Human Capital, Diversification, Mobility
  • Political Geography: Europe, Germany, European Union
  • Author: Guillaume Van der Loo
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: In an advisory referendum held in the Netherlands on April 6th, over 61% of the voters rejected the ratification of the Association Agreement (AA) between the EU and Ukraine. If the Dutch government were to act on the outcome of the referendum, which had a low turnout of 32%, an unprecedented situation would emerge in which an EU international agreement cannot enter into force because a member state is not in a position to ratify it. Although the political character of this referendum and the Dutch Advisory Referendum Act (DRA) and the geopolitical implications of the AA itself have already been the subject of heated discussions in the Netherlands and beyond, the legal implications of this referendum remain unclear.
  • Topic: Diplomacy, Geopolitics
  • Political Geography: Ukraine, Netherlands, European Union
  • Author: Patricia Goff
  • Publication Date: 02-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) is noteworthy for the expanded role that Canadian provinces and territories played in the negotiation. In this particular instance, these sub-federal actors had a seat at the negotiating table at the request of their European Union partners. However, this paper argues that CETA is exceptional in this regard. Despite the fact that regional trade agreements increasingly contain provisions that relate to areas of provincial and territorial jurisdiction, each trade negotiation is distinct. The CETA experience should not create the expectation that provinces and territories will always participate in the same capacity. Any enhanced role will depend on the federal government’s strategic assessment of any specific trade negotiation.
  • Topic: International Trade and Finance, Markets, Political Economy, Treaties and Agreements, Regulation
  • Political Geography: Canada, European Union
  • Author: Patrick Leblond
  • Publication Date: 02-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) is possibly the most ambitious regional free trade agreement that Canada and the European Union have negotiated so far. One of its main components is a chapter that seeks to liberalize trade and investment in financial services between Canada and the European Union, while ensuring that markets and their agents will be properly regulated and protected through prudential regulation. However, this chapter is unlikely to have a significant impact on the financial services sector in Canada and the European Union in the short and medium term. Although some observers fear that CETA might undermine the high quality of financial regulations in Canada or the European Union, this paper’s analysis demonstrates that such concerns are unfounded.
  • Topic: International Trade and Finance, Markets, Treaties and Agreements, Regulation
  • Political Geography: Canada, European Union
  • Author: August Reinisch
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Since the transfer of foreign direct investment powers from the European Union member states to the European Union itself in the 2009 Treaty of Lisbon, the European Commission, the main external trade actor for the European Union, has started to negotiate international investment agreements as well as investment chapters in enlarged free trade agreements (FTAs). Both contain substantive protection standards and enforcement mechanisms in case of disputes, usually both state–state and investor–state arbitration (ISA). With regard to the latter, it was unclear whether the European Commission, the European Union’s experienced World Trade Organization (WTO) litigator, would continue to use the interstate template of trade disputes or venture into ISA. After an initial orientation period, the European Commission rmly endorsed ISA, as demonstrated by the negotiations with Canada on the Comprehensive Economic and Trade Agreement (CETA) and with the United States on the Transatlantic Trade and Investment Partnership (TTIP). Meanwhile, however, public opposition to the TTIP, and to ISA in particular, has formed in unexpected dimensions. It even led the European Commission to partially interrupt its trade negotiations with the United States in order to conduct a public consultation on the investment aspects of the TTIP. Ever since, ISA has remained one of the most controversial parts of the planned trade agreements. Most recently, the European Commission tabled a TTIP proposal to set up a permanent investment court that would replace the system of ad hoc ISA. This paper analyzes in detail the development of the European Union’s position toward the use of ISA as a means for settling investor-state disputes.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: European Union
  • Author: Anthony Luzzatto Gardner
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: The Ambassadors Review
  • Abstract: Four years ago the European Union won the Nobel Peace Prize for the “over six decades [in which it has] contributed to the advancement of peace and reconciliation, democracy, and human rights in Europe.” How quickly the mood has changed. While it has become fashionable to charge that the European Union is on the verge of collapse in the face of dire current challenges, rumors of the European Union’s demise would appear premature. The successes achieved in 2015, as well as the potential future areas of good news, are frequently underappreciated. The United States is firmly committed to investing in its relationship with the European Union. This is a partnership that delivers, as it will bring dividends to both the United States and the European Union for the long term.
  • Topic: Peacekeeping, Democracy, Europe , Europe Union
  • Political Geography: Europe, United States of America, European Union
  • Author: Volodymyr Dubovyk
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Arnold A. Saltzman Institute of War and Peace Studies
  • Abstract: Since the beginning of Euromaidan (Maidan II), Ukraine finds itself entangled in a deep crisis, which, while not necessarily existential, dramatically alters the country’s internal dynamics and international positioning vis-à-vis its neighbors and other significant regional and global players. To handle this crisis, Ukraine must find the right method of dealing with international players, especially the Russian Federation, the European Union and the United States of America. Ukraine should take certain actions against the new super-assertive and aggressive Russia. The European Union unquestionably has provided significant aid to Ukraine during these turbulent times. However, there remains great potential for cooperation, and questions linger regarding whether the EU is prepared to foot the bill for pulling Ukraine’s economy away from the brink indefinitely. Finally, the United States should by all means continue doing its good work in bringing attention to the situation in and around Ukraine in a variety of ways, including multilateral venues, unilateral initiatives, and bilateral frameworks. The fact that Ukraine is located in Europe does not make this crisis a mere European problem but a conflict with global repercussions.
  • Topic: International Relations, International Political Economy, International Security, Geopolitics
  • Political Geography: Russia, Ukraine, European Union
  • Author: Grigoriy Shamborovskyi
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Arnold A. Saltzman Institute of War and Peace Studies
  • Abstract: This paper explores topics related to Ukraine’s Relations with Russia, the EU, and the US. These relationships are explored in terms of international trade, security issues and institution building. Finally, the existence of internal political and socioeconomic divisions is discussed.
  • Topic: International Political Economy, International Trade and Finance, International Security, Political and institutional effectiveness
  • Political Geography: Russia, America, Ukraine, European Union