Search

Begin New Search Content Type Working Paper Publication Year within 5 Years Publication Year within 10 Years

1851. Moscow’s Hopes to Use Water as ‘New Oil’ Outraging Siberians

Author:
Paul A. Goble
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Jamestown Foundation
Abstract:
Given the Vladimir Putin regime’s past reliance on oil exports, it is perhaps no surprise that Moscow has been casting about for some other raw material it can sell abroad now that hydrocarbon prices have fallen and Russian government revenues along with them. But its apparent selection of water as “the new oil” that it can sell to water-short China is again outraging Russians. Indeed, the policy may soon lead to the repetition of protests against such projects that roiled the country east of the Urals in 2019 and 2020. And this could complicate Russia’s relations not just with China but with Mongolia and Central Asian countries as well. By focusing exclusively on the possibility of foreign profits rather than the concerns of its own population, the Putin regime—wittingly or not—is recapitulating some of the steps the Communist leaders fatefully took in the years preceding the disintegration of the Soviet Union.
Topic:
Natural Resources, Water, and Domestic Policy
Political Geography:
Russia and Eurasia

1852. Ukraine’s Sanctions Against Pro-Russian Oligarch Medvedchuk—All About Oil and Coal

Author:
Alla Hurska
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Jamestown Foundation
Abstract:
On February 19, the National Security and Defense Council of Ukraine (NSDC) imposed sanctions on Ukrainian tycoon and politician Viktor Medvedchuk and his wife, Oksana Marchenko (Pravda.com.ua, February 19). Medvedchuk is a leader and people’s deputy of the pro-Russian party Opposition Platform–For Life, the largest opposition faction in the Ukrainian parliament. Moreover, he is a close acquaintance of Russian President Vladimir Putin. The NSDC sanctions list also includes five Russian nationals and Ukrainian national Nataliya Lavreniuk. The latter is Marchenko’s friend and the common-law spouse of Taras Kozak (already under sanctions), a people’s deputy from the same political party and Medvedchuk’s business partner. Apart from targeting those eight individuals, sanctions were imposed on nineteen associated businesses, including firms that own aircraft and operate direct flights from Kyiv to Moscow as well as a number of joint stock companies registered in Russia, Moldova and Portugal (Pravda.com.ua, February 20). These measures came two weeks after Ukrainian President Volodymyr Zelenskyy ordered the shutdown of several television channels—ZIK, NewsOne and 112—connected to Kozak. The move was described by Zelenskyy as a necessary step to fight Russian propaganda. But according to the Security Service of Ukraine (SSU) and the NSDC, these actions were motivated by more complex issues. Specifically, the three aforementioned TV channels were being financed by limited liability company trading house Don Coal (Rostov, Russia), which receives revenue from smuggling coal out of the Luhansk and Donetsk “people’s republics” (LPR/DPR) (Pravda.com.ua, February 4).
Topic:
Foreign Policy, Oil, Sanctions, and Coal
Political Geography:
Russia, Ukraine, and Eastern Europe

1853. Russia’s Iskander Missiles Fail in Karabakh but Cause Crisis in Armenia

Author:
Pavel Felgenhauer
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Jamestown Foundation
Abstract:
The Second Karabakh War, between Armenia and Azerbaijan, began on September 27, 2020, and ended on November 9, 2020, with a Russian-brokered and guaranteed agreement. The conflict claimed the lives of thousands of Armenian and Azerbaijani soldiers. But after 44 days of fierce fighting, it concluded with Yerevan soundly defeated: Armenia lost territory occupied during the First Karabakh War in 1992–1994 as well as over 30 percent of prewar Nagorno-Karabakh Autonomous Oblast—a region of Soviet Azerbaijan majority populated by ethnic Armenians. Today, the rump self-proclaimed Nagorno-Karabakh Republic (NKR or “Artsakh”)—still controlled by Armenians and not recognized by anyone—is fully surrounded by Azerbaijani troops and territory. The rump Karabakh “republic’s” perimeter is guarded by some 2,000 Russian “peacekeepers” who also control the so-called Lachin corridor, the only highway left open from Armenia proper to Karabakh through the city of Lachin. The future of the rump NKR and its Armenian population is unclear. Baku refuses to discuss any special administrative status for the territory, insisting Armenians born in the Nagorno-Karabakh Autonomous Oblast or their descendants must disarm and apply for Azerbaijani citizenships to stay as a minority inside Azerbaijan. In turn, the NKR leadership has declared Russian an official language alongside Armenian to avoid use of Azerbaijani Turkish (Izvestia, February 17). Officials in Stepanakert (Khankendi in Azerbaijani) apparently hope this may tempt Moscow to keep its peacekeepers in Karabakh permanently and maybe eventually agree to annex the NKR outright.
Topic:
Weapons, Conflict, and Crisis Management
Political Geography:
Russia, Eurasia, Eastern Europe, and Nagorno-Karabakh

1854. Inside Duterte’s Failed Response to the Philippines’ Communist Insurgency and the Appeal of New People’s Army among Indigenous Peoples

Author:
Jack Broome
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
The Jamestown Foundation
Abstract:
On December 7, 2020, following speculation in the news, the Philippines President Rodrigo Duterte finally announced that the government would not offer a holiday ceasefire—as is tradition for this time of year—to the New People’s Army (NPA), the armed wing of the Communist Party of the Philippines (CPP). Duterte’s announcement came during his weekly address to the nation on the government’s response to the COVID-19 pandemic, but Duterte went one step further by declaring that peace talks are “dead” and there would no longer be any ceasefires for the remainder of his presidency (abs-cbn.com, December 8, 2020).
Topic:
Communism, Terrorism, Insurgency, Non State Actors, and Indigenous
Political Geography:
Philippines and Asia-Pacific

1855. Iranian Public Opinion at the Start of the Biden Administration: Report

Author:
Nancy Gallagher, Clay Ramsay, and Ebrahim Mohseni
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Center for International and Security Studies at Maryland (CISSM)
Abstract:
This report covers findings from two surveys fielded in September and early October 2020 and late January through early February 2021 to assess how Iranians were faring as the covid-19 pandemic intensified the challenges their country was already facing, what they thought about the parliamentary election in Iran and the presidential election in the United States, and how the inauguration of Joe Biden impacted their attitudes towards nuclear diplomacy and regional security. Iran was one of the earliest countries to be hard-hit by the novel coronavirus, with the country’s first cases confirmed on February 13, 2020, two days before the parliamentary election, senior officials among those soon infected, and high death rates reported. Western reporting depicted widespread government incompetence and cover-ups exacerbating the pandemic’s toll. As in other countries, Iranian officials struggled to decide whether to close schools, curtail economic activities, and restrict religious observances in hopes of slowing the virus’ spread, but cases and deaths remained high through 2020. When we fielded the first survey wave, the daily number of new confirmed covid-19 cases in Iran was starting to climb sharply again after having been relatively flat since May. Some world leaders, including the U.N. Secretary General, called for an easing of sanctions on Iran as part of global efforts to fight the pandemic. The United States, which had withdrawn from the Joint Comprehensive Plan of Action (JCPOA) in May 2018, maintained that medicine, personal protective equipment, and other humanitarian supplies were exempt from the steadily increasing sanctions applied as part of its “maximum pressure” campaign. But, the United States’ designation in September 2019 of the Central Bank of Iran as a terrorist organization made most foreign suppliers of humanitarian goods reluctant to sell to Iran. A decision in October 2020 to also designate the few Iranian banks that were not previously subject to secondary sanctions further impeded humanitarian trade, caused another sharp drop in the value of Iran’s currency, and had other negative economic effects. The Trump administration’s stated objective was to keep imposing more sanctions until Iran acquiesced to a long list of U.S. demands articulated by Secretary of State Mike Pompeo. The original twelve points include the types of restrictions on Iran’s nuclear program that the government rejected during previous negotiations and that the Iranian public has consistently opposed. It also included stopping development of nuclear-capable missiles and ending support for various groups throughout the Middle East.
Topic:
Foreign Policy, Diplomacy, Public Opinion, and International Community
Political Geography:
Iran, Middle East, North America, and United States of America

1856. The effect of recent technological change on US immigration policy

Author:
Björn Brey
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
Did recent technological change, in the form of automation, affect immigration policy in the United States? I argue that as automation shifted employment from routine to manual occupations at the bottom end of the skill distribution, it increased competition between natives and immigrants, consequently leading to increased support for restricting low-skill immigration. I formalise this hypothesis theoretically in a partial equilibrium model with constant elasticity of substitution in which technology leads to employment polarization, and policy makers can vote on immigration legislation. I empirically evaluate these predictions by analysing voting on low-skill immigration bills in the House of Representatives during the period 1973-2014. First, I find evidence that policy makers who represent congressional districts with a higher share of manual employment are more likely to support restricting low-skill immigration. Second, I provide empirical evidence that representatives of districts which experienced more manual-biased technological change are more likely to support restricting low-skill immigration. Finally, I provide evidence that this did not affect trade policy, which is in line with automation having increased employment in occupations exposed to low-skill immigration, but not those exposed to international trade.
Topic:
Economics, Immigration, Economic Policy, Automation, Technocracy, and Skilled Labor
Political Geography:
United States

1857. The Economic Impact of Political Instability and Mass Civil Protest

Author:
Samer Matta, Michael Bleaney, and Simon Appleton
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
An extensive literature has examined the economic effects of non-violent political instability events. Nonetheless, the issue of whether economies react differently over time to such events remains largely unexplored. Using synthetic control methodology, which constructs a counterfactual in the absence of political instability, we estimate the output effect of 38 regime crises in the period 1970-2011. A crucial factor is whether crises are accompanied by mass civil protest. In the crises accompanied by mass civil protest, there is typically an immediate fall in output which is never recovered in the subsequent five years. In crises unaccompanied by protest, there are usually no significant effects. Furthermore, this paper provides new evidence that regime crises (with and without mass civil protest) have heterogeneous (country-specific) effects on output per capita.
Topic:
Economics, Political Economy, Regime Change, Political stability, Economic Growth, Protests, Economic Policy, and Civil Unrest
Political Geography:
Global Focus

1858. Trade Liberalization along the Firm Size Distribution: The Case of the EU-South Korea FTA

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

1859. Thinking Outside the Container: A Machine Learning Approach to Forecasting Trade Flows

Author:
Vincent Stamer
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Global container ship movements may reliably predict global trade flows. Aggregating both movements at sea and port call events produces a wealth of explanatory variables. The machine learning algorithm partial least squares can map these explanatory time series to unilateral imports and exports, as well as bilateral trade flows. Applying out-of-sample and time series methods on monthly trade data of 75 countries, this paper shows that the new shipping indicator outperforms benchmark models for the vast majority of countries. This holds true for predictions for the current and subsequent month even if one limits the analysis to data during the first half of the month. This makes the indicator available at least as early as other leading indicators.
Topic:
Economics, Science and Technology, Trade, Shipping, and Machine Learning
Political Geography:
Global Focus

1860. Restructuring Sovereign Bonds: Holdouts, Haircuts and the Effectiveness of CACs

Author:
Chuck Fang, Julian Schumacher, and Christoph Trebesch
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Sovereign debt crises are difficult to solve. This paper studies the “holdout problem”, meaning the risk that creditors refuse to participate in a debt restructuring. We document a large variation in holdout rates, based on a comprehensive new dataset of 23 bond restructurings with external creditors since 1994. We then study the determinants of holdouts and find that the size of creditor losses (haircuts) is among the best predictors at the bond level. In a restructuring, bonds with higher haircuts see higher holdout rates, and the same is true for small bonds and those issued under foreign law. Collective action clauses (CACs) are effective in reducing holdout risks. However, classic CACs, with bond-by-bond voting, are not sufficient to assure high participation rates. Only the strongest form of CACs, with single-limb aggregate voting, minimizes the holdout problem according to our simulations. The results help to inform theory as well as current policy initiatives on reforming sovereign bond markets.
Topic:
Debt, Economics, International Political Economy, Law, and Credit
Political Geography:
Global Focus