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

51. The Opportunities and Challenges of Industry 4.0 for Industrial Development: A Case Study of Morocco’s Automotive and Garment Sectors

Author:
Georgeta Vidican Auktor
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The development and application of advanced manufacturing technologies (known as Industry 4.0) have been enabled by the fast-paced process of digital transformation. These transformations are expected to have major implications on the reorganisation of global value chains as well as on labour markets. For late-industrialising countries, Industry 4.0 brings both opportunities and challenges. On the one hand, it opens opportunities in terms of improving competitiveness, learning and export markets. On the other hand, however, it may devalue the traditional competitive advantage based on low labour costs, creating difficult-to-tackle challenges on labour markets related to unemployment and new demands for reskilling and upskilling. This paper explores these aspects through the lens of one country, Morocco, and two very different sectors: automotive and apparel. Morocco is a lower-middle-income country that has capitalised on its proximity to Europe and succeeded in developing a dynamic export-oriented automotive industry. The garment sector, which is critical for employment, has been generally neglected by the industrial development strategies. However, Industry 4.0 and its implications on global value chains are likely to affect both sectors, although in different ways. Our analysis clearly shows that interventions must be tailored to the different degrees of technological readiness. The automotive sector is driven more by the needs of major original equipment manufacturers. Therefore, industrial policy should focus on setting the framework conditions, enabling upgrading by investing in research and development, and shifting incentives towards facilitating local suppliers to better integrate with higher-tier suppliers. In the garment sector, policy interventions need to be more comprehensive, from developing a long-term vision to building awareness on technological upgrading and new business models enabled by digitalisation and automation. Moreover, there is extensive scope for industrial policy to contribute to building basic technological and knowledge capabilities all along the garment supply chain and to attracting investment.
Topic:
Development, Manufacturing, Industry, and Global Value Chains
Political Geography:
North Africa and Morocco

52. New Rules, Same Practice? Analysing UN Development System Reform Effects at the Country Level

Author:
Silke Weinlich, Max Otto Baumann, Maria Cassens-Sasse, Rebecca Hadank-Rauch, Franziska Leibbrandt, Marie Pardey, Manuel Simon, and Anina Strey
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
With its unique multilateral assets, the United Nations Development System (UNDS) should be playing a key role in assisting governments and other stakeholders with their implementation of the 2030 Agenda for Sustainable Development. But this requires change. Despite improvements in recent decades, too often the UNDS has continued to act as a loose assemblage of competing entities, undermining its effective support for Sustainable Development Goal (SDG) implementation. It is against that backdrop that the UNDS has been undergoing an extensive reform – that was decided on in 2018 and has been implemented since 2019 – to provide more coherent, integrated support in line with requirements of the 2030 Agenda to United Nations (UN) programme countries. What effects have the reforms yielded at the country level? This paper presents the main findings, conclusions and recommendations from our research on UNDS reform implementation. It does so with a focus on reform-induced changes towards what we call a strengthened, collective offer at the country level. Overall, our research shows that reform implementation is moving the needle on the quality of the collective offer. In particular, with regard to its institutional element, we observed that the reform has fostered change in how UN country teams work together that is in line with what the 2030 Agenda demands. Institutional changes allow for increased cross-organisational and cross-sectoral coordination, which could potentially lead to increased policy coherence. But while we see substantial progress, it remains incomplete, fragile and subject to structural limitations. A more critical picture emerges with regard to change in the substantive component of the collective offer in the areas of SDG integration, cross-border work and normative approaches. While there were positive examples, we found little evidence of a systematic repositioning in these areas. The adjustment of the UNDS to the 2030 Agenda does not (yet) meet the expectations derived from the UN’s own reform ambition.
Topic:
Development, United Nations, Reform, and Sustainable Development Goals
Political Geography:
Global Focus

53. Sign of the Times: How the United Kingdom’s Integrated Review Affects Relations with Africa

Author:
Zainab Usman and Jonathan Glennie
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In March 2021, the British government published a vision document: “Global Britain in a Competitive Age: The Integrated Review of Security, Defence, Development and Foreign Policy.”1 Previously, the government had issued documents on security, defense, development, or foreign policy, but this integrated review bundled together all aspects of policy related to a vision of a so-called Global Britain. This newly integrated approach to policymaking mirrors a strategic consolidation within the UK government, specifically the merger of the Department for International Development (DFID) with the Foreign and Commonwealth Office to become a new Foreign, Commonwealth and Development Office (FCDO). While the review is framed as a necessary response to a changing global landscape, domestic political considerations around the British exit from the European Union (Brexit) weigh heavily. The review also points to the current UK government’s inclination to prize geopolitical competition over a previous emphasis on global cooperation. Steep cuts to the UK’s generous foreign aid budget as well as the abolition of DFID have already drawn significant academic, policy, and media attention. Yet these actions are part of a broader UK strategy to redefine the country’s relations to the rest of the world, with significant implications beyond the controversial foreign aid cuts for poor countries, including those in Africa. The review will shape relations with a continent that has deep historical ties from the colonial era, a large diasporic presence, and long-standing economic relations with the UK. This analysis draws out the implications of the UK’s 2021 integrated review for African countries and recommends next steps for African and other international stakeholders to navigate the UK’s overhauled external relations strategy.
Topic:
Security, Foreign Policy, Defense Policy, Development, and Integration
Political Geography:
Africa and United Kingdom

54. Negotiating Local Business Practices With China in Benin

Author:
Folashade Soule
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Commercial negotiations between Benin and China demonstrate how both sides navigate the dynamics of Africa-China business-to-business relationships. In Benin, Chinese and local Beninese officials engaged in drawn-out negotiations on a deal to construct a business center aimed at deepening business links between Chinese and Beninese merchants. Strategically located in Cotonou, Benin’s principal economic city, the center aims to promote investment and wholesale businesses by serving as a hub for China’s business-to-business relations not just in Benin but regionally in West Africa, especially in the large and growing neighboring market of Nigeria. This paper relies on original research and fieldwork conducted in Benin from 2015 to 2021 and the author’s access to draft and final contracts from the negotiations, which allow for a side-by-side comparative textual analysis, as well as initial field interviews and follow-up interviews with key negotiators, Beninese businessmen, and former Beninese students in China. The paper shows how Chinese and Beninese authorities negotiated the establishment of the center and, above all, how Beninese authorities made Chinese negotiators adapt to local Beninese labor, construction, and legal norms and put pressure on their Chinese counterparts. This strategy meant that negotiations took longer than usual to complete. China-Africa cooperation is often characterized by speedy negotiations, an approach that in some cases turns out to be harmful—since this can allow vague and unfair clauses to be featured in final contracts. The negotiations over the Chinese business center in Benin is a good example of how well-coordinated negotiators that take their time and work in coordination with various counterparts throughout the government can help facilitate better outcomes in terms of high-quality infrastructure and compliance with prevailing construction, labor, environmental, and business norms, while also preserving a good bilateral relationship with China.
Topic:
Foreign Policy, Development, Bilateral Relations, and Business
Political Geography:
Africa, China, Asia, and Benin

55. How Huawei’s Localization in North Africa Delivered Mixed Returns

Author:
Tin Hinane El Kadi
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Trade between China and North Africa has increased significantly since the early 2000s, but it has largely reproduced patterns of unequal exchange. Since they were unveiled, the Belt and Road Initiative (BRI) and the Chinese government’s 2016 Arab Policy Paper have signaled the promise of a qualitative shift in China’s engagement with the region. China has committed to increase investments in high-value-added sectors and to boost cooperation in science and technology with countries across North Africa. The digital space is a notable aspect of recent China–North African partnerships. Chinese tech firms are becoming ever more important actors in North Africa through the Digital Silk Road, the digital component of the BRI. North African governments see the Digital Silk Road as an opportunity to help bridge the digital divide and bolster their own national efforts to build digital economies and create high-quality jobs for the millions of unemployed university graduates across the region. In recent years, the region has become home to notable Digital Silk Road projects such as smart cities, satellite navigation centers, data centers, and network infrastructure. Huawei’s localization strategies in Algeria and Egypt show that, far from imposing a one-size-fits-all blueprint on other countries, as Beijing is often depicted as doing in U.S. and European media and policy discussions, Chinese tech players adapt their engagement depending on local development agendas. Flexibility, customization, and services tailored to local demand have been cornerstones of Huawei’s localization strategies in North Africa. Accommodating local development priorities is central to Huawei’s success in globalizing its business ventures. The Chinese firm has responded favorably to Algeria’s and Egypt’s attempts to leverage foreign companies for conducting more value-added activities within their respective economies. Among other things, Huawei opened its first African factory in Algeria, employing Algerians to assemble products for and beyond the Algerian market. It also launched an OpenLab for conducting research and development (R&D) activities in Egypt and established partnerships with several universities in the region to train local students. However, closer scrutiny of Huawei’s localization in both Algeria and Egypt indicates that the company improved its brand image without engaging in meaningful capacity building. For all its success at winning the hearts of government officials across the region, Huawei has engaged in training, manufacturing, and R&D in a way designed to maintain the firm’s technological edge. The Chinese tech giant has managed to localize seemingly developmental activities in North Africa without contributing much to technological upgrading. North African governments should take lessons from China’s playbook of how it became a technological superpower. This means adopting policies that could maximize the benefits of Chinese and non-Chinese investments by ensuring positives spillovers and protecting potential local tech champions. Increasing economic integration across North African countries and moving beyond fragmented bilateral commercial negotiations with China are two steps that may help level the playing field with the Asian giant.
Topic:
Development, Science and Technology, Telecommunications, Huawei, and Digital Space
Political Geography:
China, Asia, Algeria, North Africa, and Egypt

56. The World Bank, the IMF, and the GATT/WTO: Which institution most supported trade reform in developing economies?

Author:
Douglas A. Irwin
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The 1980s and 1990s saw a policy revolution in developing countries in which many highly protected (if not closed) economies were opened to world trade. These reforms were largely undertaken unilaterally, but international economic institutions such as the World Bank, the International Monetary Fund, and the General Agreement on Tariffs and Trade/World Trade Organization supported these efforts. This paper examines the ways in which these institutions promoted, or failed to promote, trade policy reform during this pivotal period.
Topic:
Development, World Bank, Reform, Trade, IMF, and WTO
Political Geography:
Global Focus

57. A feminist approach to Australian Overseas Development Assistance?

Author:
Annabel Dulhunty
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
International Women's Development Agency (IWDA)
Abstract:
Over the past nine years, the Australian aid program has suffered extensive budget cuts, lost significant development expertise within the Department of Foreign Affairs and Trade (DFAT) after the integration of AusAID, and seen significant reprioritisation of its objectives due to the emergence of COVID-19. Despite these setbacks, however, gender equality and women’s empowerment seemingly remain important to the aid program. Why then is a feminist foreign policy needed for Australia and its aid program?
Topic:
Foreign Policy, Development, Feminism, and Development Assistance
Political Geography:
Australia

58. Does aid fragmentation affect tax revenue dynamics in developing countries? Observations with new tax data

Author:
Ali Compaoré and Abrams M. E. Tagem
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
There exists a burgeoning empirical literature on the impact of aid fragmentation on development outcomes in aid-receiving countries, with it being widely recognized that aid fragmentation is deleterious. This paper adds to the existing literature by estimating the impact of aid fragmentation on tax revenue mobilization in developing countries. Drawing on the popular system generalized method of moments technique to counter endogeneity issues, this study focuses on a sample of 90 developing countries covering the period from 2000 to 2020. We show that aid fragmentation, measured by the Herfindahl index, has a significant negative impact on recipient countries’ tax revenue ratios, an impact that is not mitigated by the level of institutional quality. The paper also explores the impact of aid fragmentation on tax structure and finds convincing evidence that direct taxes, particularly corporate income taxes, are the most affected. Value-added tax is the only indirect tax affected by aid fragmentation.
Topic:
Development, Tax Systems, Institutions, and Revenue
Political Geography:
Global Focus

59. Employer power and employment in developing countries

Author:
Nancy H. Chau, Ravi Kanbur, and Vidhya Soundararajan
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The issue of employer power is underemphasized in the development literature. The default model is usually one of competitive labour markets. This assumption matters for analysis and policy prescription. There is growing evidence that the competitive labour markets assumption is not valid for employment in developing countries. Our objective in this paper is to review this evidence, to present theoretical and policy perspectives that follow from it, and to highlight areas for further research.
Topic:
Development, Employment, and Labor Market
Political Geography:
Global Focus

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

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