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1471. 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

1472. Lawfare as part of hybrid wars: The experience of Ukraine in conflict with Russian Federation

Author:
Zakhar Tropin
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
War Studies University
Abstract:
The main objective of the article is to prove the need for the state to have a centralised legal strategy to ensure the protection of state interests on an international level during a hybrid conflict. Centralisation of control and the planning and implementation of legal actions on an international level are core elements of such a strategy, especially for actions under the jurisdiction of international institutions. This article provides an analysis of treaties and of the practice of adjudication in Ukraine during the conflict with the Russian Federation. The findings of the study show that the legal dimension of hybrid conflict has some sub-levels: legal actions of states in hybrid conflicts taken at interstate level; the level of enterprises controlled by the state; and the private level. The practice of Ukraine shows that the exercising of a multilevel legal encounter during a hybrid war faces a number of problems including the intersection of actions (sometimes even direct conflict), even among authorities involved in the legal protection of state interests; and problems with collecting and analysing the information necessary to protect state interests in the legal dimension; state authorities that are not directly involved in a legal encounter may exercise actions which will complicate the legal position of the state. One of the first steps taken by the state in a hybrid conflict is, therefore, to create special authority or entrust an existing one with the coordination of the functions of lawfare. The next step of such an authority is the strategic “programming” of the opponent’s legal actions with the aim of achieving an advantage in the legal dimension of a hybrid conflict.
Topic:
Conflict, Hybrid Warfare, and Lawfare
Political Geography:
Russia, Ukraine, and Eastern Europe

1473. Bottom-up Accountability in Uganda: Learning from People-centered, Multi-level Health Advocacy Campaigns

Author:
Angela Bailey, Vincent Mujune, and Prima Kazoora
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Accountability Research Center (ARC), American University
Abstract:
Uganda’s laws, policies and health sector strategies codify openings for citizen participation in planning and monitoring government services, yet these spaces are often inaccessible in practice. In response to this, a consortium of civil society organizations led by GOAL designed and implemented the Accountability Can Transform Health (ACT Health) program in Uganda from 2012 to 2018. This paper draws on program monitoring data, empirical evidence, and supplementary interviews to analyze how and the extent to which the ACT Health multi-level, people-centered advocacy campaigns strengthened accountability for health from the bottom up.
Topic:
Government, Accountability, Advocacy, and Public Health
Political Geography:
Uganda and Africa

1474. How Do World Bank Staff Perceive the Institutional Environment for Building Citizen Engagement into Projects?

Author:
Rachel Nadelman
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Accountability Research Center (ARC), American University
Abstract:
How do World Bank staff perceive institutional opportunities and bottlenecks for undertaking citizen engagement (CE) as part of projects? The Accountability Research Center (ARC) at American University sought to answer this question by going beyond formal institutional directives and asking the staff themselves. ARC interviewed 30 World Bank staff involved with stakeholder and civic engagement in different capacities. Respondents represented the World Bank’s six administrative regions and a range of Global Practices, as well as operational, analytic, advisory, and managerial roles. The Open Society Foundations funded this independent research, which took place in consultation with senior World Bank management, without their direct involvement in the research or writing. During the February–August 2019 research period, the World Bank initiated an internal restructuring process which included changes to the leadership of the citizen engagement agenda. This report offers important insights that continue to be relevant for the Bank’s crucial CE work, particularly for its Citizen Engagement and Social Accountability Global Solutions Group in the new Social Sustainability and Inclusion Global Practice. The findings can also contribute to the efforts of public interest groups interested in strengthening the World Bank’s work in this area. The main findings resulting from this qualitative survey of World Bank staff perceptions include: Staff overwhelmingly credited the World Bank’s mainstreaming commitments for having increased the prominence of CE across the institution and expanding its visibility in projects. However, most viewed incentives as geared toward meeting minimum standards rather than achieving maximal impact; The primary internal promoters of the CE agenda, Regional and Global Practice Focal Points, are hampered by significant time and financial constraints. The institutional emphasis on compliance with minimum project design standards has meant that most do not know if or how the design commitments are carried out in practice; Staff consistently cited a lack of reliable, dedicated funding for CE monitoring and follow-up support for why advancements in design would not translate into improved CE in practice; Staff perceived that those World Bank regions and sectors that pursued CE most ambitiously and consistently were those whose management actively sought visibility for the agenda and proactively advocated for and secured dedicated funding; There is limited strategic coordination between the Bank’s CE agenda and its new Environmental and Social Framework (ESF), which establishes standards for stakeholder engagement and information disclosure. Unlike the CE agenda, the ESF introduces policy reforms supported by strict guidelines, dedicated staff, and uniquely robust monitoring and enforcement apparatus. More consistent attention to finding synergy would allow the CE program to leverage the ESF’s strengths while bolstering the unique aspects of CE that the ESF does not cover.
Topic:
World Bank, Institutions, Workforce, and Civic Engagement
Political Geography:
Global Focus

1475. The (Im-)Possibility of Rational Socialism: Mises in China’s Market Reform Debate

Author:
Isabella Weber
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Investigate the long first decade of reform in China (1978-1992) to show that Mises, in particular his initiating contribution to the Socialist Calculation Debate, became relevant to the reconfiguration of China’s political economy when the reformers gave up on the late Maoist primacy of continuous revolution and adhered instead to an imperative of development and catching up. During the Cultural Revolution, Mao had rejected the notions of efficiency and rational economic management. In the late 1970s, the reformers under Deng Xiaoping’s leadership elevated these notions to highest principle. As a result, Mises’ critique that socialism could not achieve a rational economic order came to be debated throughout the 1980s and Chinese economists developed their own reading of Mises and the Socialist Calculation Debate. When Deng Xiaoping reinstated market reforms in the early 1990s after the Tiananmen crackdown, a history of thought review of the possibility of rational socialism and socialist markets helped to justify the Socialist Market Economy with Chinese Characteristics the official designation of China’s economic system to this day.
Topic:
Markets, History, Reform, Economy, and Socialism
Political Geography:
China and Asia

1476. The Nature of Money and the Theory of International Trade: Thornton and Ricardo

Author:
Isabella Weber
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
A rich recent literature reinvestigates the nature of money, but little attention has been paid to the ramifications of the ways in which we theorize money for the theory of international trade. This paper examines the logical relationship between the neutrality of money and self-balancing trade based on Henry Thornton and David Ricardo as two foundational contributions to credit and commodity money theories respectively. I show that both authors theorize trade as self-balancing whenever money is conceptualized as neutral. I distinguish two notions of the neutrality of money: ex ante and ex post neutrality. In Thornton’s Paper Credit money is not neutral ex ante: there can be temporary trade imbalances. But in the long-run money is neutral ex post and international trade boils down to self-balancing barter. In Ricardo money is neutral both ex ante and ex post and international trade is always balanced unless central bank policy undermines monetary neutrality.
Topic:
International Trade and Finance, Economy, Money, and Trade
Political Geography:
Global Focus

1477. The Impact of Environmental Regulations on Manufacturing Outsourcing: Re-examining the Pollution Haven Effect in Global Value Chain

Author:
An Li
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
As countries worldwide attempt to address a series of global and domestic environmental challenges, the pollution haven effect remains an ongoing concern among trade and environment researchers and policymakers. This paper examines the pollution haven effect in the context of global value chains using inter-country input-output data at the manufacturing industry level from 1995-2009. This paper pays special attention to the issue of “doublecounting” caused by intermediate trade. The analysis utilizes two outsourcing measures and two revealed comparative advantage measures appropriate for analyzing global value chains. I propose women’s political power as a novel instrumental variable to address the endogeneity of environmental regulation. Regression results show that more stringent environmental policies are not a significant determinant of manufacturing outsourcing and competitiveness in global value chains. At the same time, women’s political power is associated with more stringent environmental policies.
Topic:
Environment, Women, Economy, Trade, Pollution, and Global Value Chains
Political Geography:
Global Focus

1478. Regulated Market, Trapped Workers: The Impacts of the "Tolerant and Prudent" Policy on Labour Precarity in China’s Online Ridehailing Sector

Author:
Wei Zhang, Hao Qi, and Zhongjin Li
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Since 2017, China has adopted the "tolerant and prudent" policy in regulating emerging digital platform industries. The impacts of this policy on labour precarity have been rarely studied. Drawing on an original survey of over 600 ridehailing drivers in two Chinese cities, Nanjing and Beijing, we conduct a political economy analysis for a three-party framework involving the municipal government, capital, and labour. We find that, in accordance with the "tolerant and prudent" principle, municipal governments stipulated regulations regarding the qualifications of ridehailing vehicles and drivers. These regulations, although they can help reduce labour precarity in the marketplace for licensed drivers, have exacerbated precarity in the workplace. Specifically, in response to the regulations, the ridehailing platforms aligned with thirdparty rental companies that provided licensed vehicles. This arrangement has effectively trapped many ridehailing drivers in the industry: our quantitative analysis shows that drivers bounded by a rental or rent-toown agreement worked significantly longer hours than counterparts who steered their own vehicles.
Topic:
Markets, Labor Issues, Regulation, Digital Economy, and Precarity
Political Geography:
China and Asia

1479. Does Project-Level Foreign Aid Increase Access to Improved Water Sources? Evidence from Household Panel Data in Uganda

Author:
Lynda Pickbourn, Raymond Caraher, and Léonce Ndikumana
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper combines geocoded subnational data on the location of water, sanitation and hygiene (WASH) aid projects in Uganda with nationally representative household-level panel survey data to evaluate the impact of WASH aid on access to water and on the burden of water collection. Specifically, it examines whether proximity to aid-funded WASH projects improves household access to improved water sources and reduces the time burden of water collection. Our results suggest that while aid-funded WASH projects increase household access to improved sources of water, households may also see the time burden of water collection increase, as they may need to travel longer distances and also experience longer wait times due to congestion at water service points. This is an indication that the supply of improved water sources is still insufficient relative to demand as measured by the population density.
Topic:
Foreign Aid, Water, Data, and WASH Projects
Political Geography:
Uganda and Africa

1480. U.S. Monetary Policy and the Decline in the Interest Rates (1990-2007)

Author:
Santiago Capraro, Carlo Panico, and Luis Daniel Torres-Gonzalez
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Interest rates in the U.S. and in other countries have experienced persistent and generalised declines since the 1980s. The main interpretations of this phenomenon ignore the role of monetary factors, such as financial and monetary policy. The essay proposes an alternative interpretation based on the choice of the Federal Reserve (FED) to conduct monetary policy by attributing high priority to financial stability. The interaction between changes in financial regulation, the transformation of "specialized" into "universal” banking, and the concern with financial instability have led the central bank to add to the role of "lender of last resort" that of "lender of first resort," which systematically provides liquidity at a low cost to financial firms. This new conduct of monetary policy has produced the downward trend in interest rates.
Topic:
Monetary Policy, Federal Reserve, Economy, and Interest Rates
Political Geography:
United States of America