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301. The EU’s approach to climate mobility: Which way forward?

Author:
Helena Hahn and Melanie Fessler
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Climate mobility as a global issue needs strategic thinking about how people adapt, and the role mobility can play in alleviating the adverse effects of climate change. This Discussion Paper analyses what the EU is doing to deal with climate mobility. It addresses the complicated relationship between climate change, mobilities, and related challenges in modelling and projecting future scenarios. It also shows the multilateral policy developments relating to climate and migration and the EU’s actions on climate mobility, with a focus on two interrelated challenges: 1. Policy (in)coherence and counterproductive narratives. 2. Weak institutional coordination. The EU’s funding landscape is also addressed, focusing on the challenges of mainstreaming and monitoring when assessing the funds dedicated to this cause. It concludes with recommendations on impacts, multilateral engagement, policy, and funding, which outline practical steps to be taken in the short and long-term.
Topic:
Climate Change, European Union, and Mobility
Political Geography:
Europe

302. Towards common accord? The European Union contemplates treaty change

Author:
Andrew Duff
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Numerous events have conspired to tempt the European Union to reform the way it is governed. Present constitutional arrangements were laid down in the Treaty of Lisbon in 2007 and are long overdue for revision. In recent months, parallel efforts have been made by the European Parliament and European Commission to articulate a prospectus for treaty amendment. The Council remains fearful and inarticulate, divided over the content and timing of any such reform. Andrew Duff returns to the current debate with a Discussion Paper analysing the EU treaty change. He previews emerging proposals from the European Parliament and European Commission, referring to the recent report of the Franco-German experts as well as other relevant contributions.
Topic:
Treaties and Agreements, European Union, Regional Integration, European Parliament, and European Commission
Political Geography:
Europe

303. Ending the HIV epidemic in Europe: Moving toward the 2030 sustainable development goals

Author:
Elizabeth Kuiper and Danielle Brady
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Despite significant progress, the human immunodeficiency virus (HIV) epidemic continues to pose a public health threat in Europe. The COVID-19 pandemic has exacerbated challenges by disrupting healthcare services and diverting attention and resources away from HIV prevention and treatment. Stigma and discrimination against those affected by HIV persist and are additional obstacles, slowing down progress to end the HIV epidemic. This Discussion Paper explores the current HIV prevalence in Europe, identifies barriers and challenges, and offers policy recommendations to overcome these obstacles and meet the sustainable development goals targets in Europe. The Paper emphasises the need for renewed political commitment and cooperation among the EU and its member states to prioritise HIV as well as for strong partnership and collaboration between authorities and stakeholders concerned, ultimately striving for success in ending the epidemic.
Topic:
HIV/AIDS, European Union, Public Health, and COVID-19
Political Geography:
Europe

304. Violence against women: A public health crisis

Author:
Victoria Pedjasaar
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
In the EU, a third of women over the age of 15 have experienced physical or sexual violence and over half have been sexually harassed. Although often overlooked, the majority of (workplace) violence takes place in the healthcare sector as healthcare professionals are 16 times more at risk of violence in comparison to other occupations. Violence does not only manifest in abusive behaviour toward workers on duty but can also be perpetrated on women as receivers of healthcare. High rates of violence in healthcare, brought on and exacerbated by gender stereotypes and inequality, point to dysfunctional health systems. This Discussion Paper provides policy recommendations on the way forward for the EU member states, taking a closer look at: Gender-based violence against healthcare workers. Obstetric and gynaecological violence against women. Gender-based violence as a story of gender inequality. Legislation and policies that protect women.
Topic:
European Union, Women, Inequality, Gender Based Violence, and Legislation
Political Geography:
Europe

305. Digitalisation: An enabler for the clean energy transition

Author:
Simon Dekeyrel and Melanie Fessler
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Russia’s invasion of Ukraine and the resulting energy crisis are a painful reminder that Europe must reduce its dependence on fossil fuels. To build a sustainable, secure and affordable energy future, the coming years will require a massive scale-up of renewable energy across the EU and a tremendous effort by European businesses and households to cut their energy consumption. To wrap up the "Digitalisation for a Clean Energy Transition" project undertaken by the EPC and the Vodafone Institute for Society and Communications, this Discussion Paper examines how digitalisation can act as a catalyst for the clean energy transition in Europe. The study considers the regulatory framework necessary to coordinate and promote synergies between energy and digital policies and support the twin green and digital transformation of the European energy system. To fully unlock the potential of digitalisation in the transition towards smart and sustainable energy systems, the EU and its member states need to: Accelerate work on a common European energy data space, characterised by interoperable data standards, adequate incentives for data sharing, data protection and privacy safeguards for consumers. Ensure that citizens possess the necessary digital skills and information to reap the full benefits of the twin transition in terms of consumer empowerment and access to affordable and clean energy. Put in place the necessary safeguards regarding the cybersecurity of energy networks to ensure that the digital transformation does not jeopardise the resilience of EU energy systems. Use financial tools to accelerate the deployment of digital solutions in the energy sector and equip existing networks with the necessary digital infrastructure. For digitalisation to deliver, it needs to be steered in the right direction. For this, we need an adequate policy and financing framework to make sure that the twin transition not only empowers people and businesses to play an active role in accelerating the transition to clean energy sources but also contributes to greening the digital and ICT sector.
Topic:
Cybersecurity, Fossil Fuels, Digitalization, Energy, Russia-Ukraine War, and Energy Transition
Political Geography:
Europe

306. Resetting the EU’s business model after the watershed

Author:
Marco Buti and Marcello Messori
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The EU’s response to the COVID-19 pandemic raised hopes of an acceleration towards deeper economic and political integration. Most optimists saw Next Generation EU as a paradigm shift that would result in the establishment of a permanent central fiscal capacity. Such hopes were reinforced by the Russian aggression against Ukraine; if not now, when? While the EU displayed remarkable unity in sanctioning Russia, the hopes for another leap forward in integration have not yet materialised. This Discussion Paper argues that the current crisis is more existential than the pandemic, as it questions Europe’s business model: an energy-intensive, mercantilist production setup is not sustainable going forward, for domestic and global reasons. It also argues that the EU’s reaction to the US Inflation Reduction Act may be a break: preserving the single market prohibits a go-it-alone policy constituted of exclusively national reactions. Going forward, the authors believe there needs to be an effective centralised strategy based on three overarching considerations: (i) The EU needs a new industrial policy to reinforce value chains, close technology gaps with the US and China, and improve its economic model's competitive advantages; (ii) The implementation of this policy requires the EU's member states to be less risk averse and more open to common solutions; (iii) A necessary, though not sufficient, condition for a cooperative game is an effective implementation of the national Recovery and Resilience Plans that give access to the Recovery and Resilience Facility’s funds. Achieving those goals is key to rebuilding political trust, reviving the ‘Next Generation EU spirit’, and mitigating the impact of the war in Ukraine on the European economy.
Topic:
Industrial Policy, European Union, Business, Regional Integration, and Value Chains
Political Geography:
Europe

307. Addressing Cohesion Policy’s identity crisis in a changing European Union

Author:
Alison Hunter
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Since the late 1980s Cohesion Policy has been one of the cornerstone policies of the European Union. However, nowadays, a different, bolder Cohesion Policy debate is needed, reflecting a radically changed global environment. This Discussion Paper focuses on the upcoming review of the post-2027 Multi Annual Financial Framework and the debate concerning the future EU Cohesion Policy. It argues that Cohesion Policy’s purpose requires reinvention, not an incremental upgrade. Four overarching themes are analysed, reframing Cohesion Policy with a strategic, long-term investment perspective: EU resilience, security, strategic autonomy, and reforms. The author then proposes five recommendations which weave together these themes with the policy’s long-standing core features: Acknowledge the need to review the Cohesion Policy’s purpose. The EU should breathe new life into the Cohesion Policy debate. Revitalise Cohesion Policy’s long-term value by defending its pillars. The EU should re-confirm Cohesion Policy’s role as a structural policy. Position Cohesion Policy as the ‘guardian’ of EU place-based policymaking. Cohesion Policy should champion the “future-proofing” of regional resilience. Articulate Cohesion Policy’s role in the evolving EU governance and reform agenda. The EU should reach beyond the Recovery and Resilience Facility to reclaim Cohesion Policy’s role in structural reform. Improve Cohesion Policy’s convening power to catalyse deeper EU innovation cooperation. The future Cohesion Policy must deliver a more coordinated approach to the EU’s innovation agenda. The Paper concludes that the future Cohesion Policy should evolve in lockstep with citizens’ needs. This will not be easy. As discussions on the EU’s future have been sidelined in this crisis-prone area, the challenges ahead require strong leadership and coordination. The post-2027 EU Cohesion Policy will have much to contribute to rebuilding the EU’s future vision.
Topic:
Security, Governance, Reform, European Union, Regional Integration, Social Cohesion, Resilience, and Strategic Autonomy
Political Geography:
Europe

308. Raising the stakes on constitutional reform: The European Parliament triggers treaty change

Author:
Andrew Duff
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The European Parliament, for the first time, has used its powers to trigger a revision of the EU treaties. Its central demand is to change the decision-making procedure behind the passerelle clause from unanimity to qualified majority voting. However, the EU Council has so far refused to submit Parliament’s request to the European Council — in breach of its treaty obligations. At the same time, MEPs continue to develop wider reform proposals to make the government of the EU more robust, decisive, and democratic. With the European Parliamentary elections taking place next year, now is a good time for parliamentarians to take stock of their own performance, review their place in the governing system of the Union, and, other things being equal, prepare for future reform. In this Discussion Paper, Andrew Duff explains that, in an ideal world, more could be achieved under the existing treaties, and the EU could avoid the always complex, often unpopular, and usually protracted task of revising them. With another treaty change on the cards, the Paper analyses the current state of affairs and suggests that the heads of government need the assistance of a reflection group to prepare for a new Convention.
Topic:
Treaties and Agreements, Reform, European Union, Constitution, and European Parliament
Political Geography:
Europe

309. Quantum technologies and value chains: Why and how Europe must act now

Author:
Georg Riekeles
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
As next-generation foundational technologies, quantum computing, communication, and sensing carry significant economic and security implications that go to the core of today’s strategic competition. In contrast with the US, where Big Tech actors dominate, Europe’s strengths lie in a vibrant ecosystem of research organisations and start-ups. This growing ecosystem is now at a critical juncture to develop into an internationally competitive European industry. This paper is based on research and a series of workshops conducted with European policymakers, stakeholders and industry actors looking into Europe’s technological position in contested international value chains. It proposes ten recommendations for the EU’s industrial policy mix under the following headings: KNOW – Embrace tech forecasting at the EU level COOPERATE – Combine European efforts in an EU Quantum Industrial Alliance INVEST – Mobilise European public-private capital for industrial scale-up PROTECT – Deploy Europe’s defensive toolbox prudently In a year that will see the launch of the EU Sovereignty Fund and adoption of the European Chips Act, quantum stands as a test case for the EU’s technological competitiveness and industrial policy agenda.
Topic:
Security, Economics, European Union, Industry, Quantum Computers, and Value Chains
Political Geography:
Europe

310. Funding the EU’s external migration policy: ‘Same old’ or potential for sustainable collaboration?

Author:
Evangelia (Lilian) Tsourdi, Nasrat Sayed, and Federica Zardo
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
In this Discussion Paper, the authors examine changes in the EU funding landscape relating to migration policy and provide recommendations on how to maximise the benefits of cooperation. Since 2015, when the EU was first exposed to a significant rise in irregular arrivals from neighbouring countries, funding has acquired increasing salience, leading to the mobilisation of €7 billion through Trust Funds and the creation of a specific heading devoted to migration and border management in the EU’s Multiannual Financial Framework 2021-2027. The authors look closely at the funding dimension of Talent Partnerships, the latest initiative to support legal migration to the EU, and the contradictions. Given funding’s ability to enhance cooperation with third countries, the Paper focuses on how the EU could take several steps toward ensuring sustainable collaboration. These include moving towards long-term planning, embedding transparency guarantees in the operationalisation of its initiatives, scaling up Talent Partnerships for more impactful and mutually beneficial cooperation, and striving for third-country ownership. Furthermore, in the context of growing political and economic instability around the world, financial resources should equally be used to address the different components of migration processes, such as local development, legal migration, circular migration, integration, but also displacement and forced (im)mobilities. At the same time, long-standing issues of accountability and transparency should be addressed through new instruments. The conditions through which funding can act as a catalyst for sustainability and co-development are also analysed, and recommendations are provided on the next steps for EU action.
Topic:
Migration, European Union, Borders, and Transparency
Political Geography:
Europe

311. The US-EU Trade and Technology Council: Assessing the record on data and technology issues

Author:
Juan Carlos Fernández-Rodríguez and Frances G. Burwell
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Since its creation, the Trade and Technology Council (TTC) has endorsed a Declaration for the Future of the Internet (DFI), designed a Joint Roadmap for transatlantic cooperation on artificial intelligence (AI) and identified quantum technology as a high priority. While these achievements can be considered success stories, this Discussion Paper argues that the TTC is now facing a dilemma. Different approaches to technology and digital governance and the lack of regulatory autonomy make the TTC best suited to address emerging issues that do not require changes in legislation. Yet, this is precisely what stakeholders want it to address. So, how can the TTC ensure its continuity without regulatory authority? The Paper offers five key recommendations: Make AI a test case and build from the lessons of the Joint AI Roadmap; Engage in issues where there is an initial strong value alignment and no regulation; Work on moonshot ideas such as the “metaverse” or low-earth orbit governance; Take oversight over the special task forces it has created to tackle critical issues such as the US Inflation Reduction Act (IRA); Think more actively about how to push its efforts into multilateral forums with like-minded partners.
Topic:
Science and Technology, European Union, Trade, and Data
Political Geography:
Europe, North America, and United States of America

312. Regulating platform work: How will this impact migrant workers?

Author:
Tommaso Grossi and Andreina De Leo
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Migrant workers in the platform labour market are vulnerable to double exploitation. First, as platform workers, they cannot enjoy the protections that employment law provides. Second, they can be subject to exploitation due to their migration and residence status, especially if undocumented. This Discussion Paper analyses the impact of the European Commission’s proposed Directive on improving the working conditions and rights of platform migrant workers. The proposed Directive's positive impact will likely be restricted by migrant employees' bargaining strength and non-EU platform workers' well-founded fears of reprisal. Therefore, targeted improvements to the proposed framework are needed to remove the structural barriers faced by migrant workers when accessing the labour market. This Paper offers six recommendations on how to move forward: Strike the right balance between retaining flexibility for genuine self-employed platform workers and enhancing protection through reclassification. Guarantee transparency and ensure non-discrimination in algorithmic management. Introduce effective measures against the risk of subcontracting and ensure the liability of subcontracting chains. Facilitate the involvement of civil society organisations with specific expertise on migrants’ rights as well as trade unions involved in defending the rights of platform workers to enhance the enforcement of rights and protections. Put in place binding measures to establish ‘firewalls’ for platform migrant workers who lodge complaints in the context of inspections by the labour authorities. Promote better access to the labour market for migrant workers and consider regularisation channels for undocumented migrants as the most effective way to prevent or fight exploitation.
Topic:
Employment, Labor Market, Migrant Workers, and Exploitation
Political Geography:
Europe

313. One step closer to getting the EU Migration Pact done. One step closer to ambitious change?

Author:
Alberto-Horst Neidhardt
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
On 8 June, the Swedish Presidency put to the vote compromise texts on two vital elements of the EU asylum system: the rules governing the processing of asylum applications and those determining the state responsible for applicants, including a corresponding solidarity mechanism. A turning point was Italy getting on board after some concessions were made on how to apply the notion of safe third countries, making it easier to carry out returns to transit countries. Poland and Hungary voted against the proposals, and four other countries abstained – Malta, Bulgaria, Lithuania, and Slovakia – paving the way for the “historic” agreement. This Discussion Paper asks: What factors shaped the vote? What will future negotiations focus on, and what will be the impact of the reforms on the ground? Finally, what should come after the New Migration Pact? Trialogue negotiations are about to start, and the stakes have never been this high in EU asylum and migration policies. If the negotiations do not deliver reforms that can improve the European asylum system, it will undermine trust between member states, citizens’ confidence in the EU and its capacity to manage the migration phenomenon.
Topic:
Migration, European Union, and Asylum
Political Geography:
Europe

314. Leaving Dayton for Brussels: Reviving Bosnia’s constitutional reform

Author:
Berta López Domènech
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
In December 2022, the European Council granted Bosnia and Herzegovina candidate status. However, to make EU membership a reality, Bosnia needs to address several conditions and implement major reforms. Almost three decades since the end of the Bosnian war, the country continues to be governed along sectarian lines and is overseen by an internationally appointed authority, the High Representative. Moreover, the ethnic provisions of the Dayton constitution discriminate against parts of its citizenry. This Discussion Paper stresses the need to reopen the debate on Bosnia’s constitutional reform, arguing that the EU should accompany the country’s efforts to become a fully functional and democratic state. A new constitution is vital to improving institutional functionality, streamlining decision-making, and guaranteeing equality for all citizens – all of which would ultimately allow for the closure of the Office of the High Representative. The EU should use the granting of candidate status to Bosnia as an opportunity to advance the conversation on reforming Bosnia's constitution per European democratic norms.
Topic:
Democratization, Reform, Constitution, and European Council
Political Geography:
Bosnia and Eastern Europe

315. Towards a cleaner air in Europe: Time for a stronger vision and more action

Author:
Annika Hedberg, Stefan Sipka, Simon Dekeyrel, Melanie Fessler, and Danielle Brady
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
As scientific evidence on the impact of air pollution on human life continues to grow, accepting air pollution as a given side product of our economies and activities can no longer be tolerated. This Discussion Paper highlights what the EU needs to do to recognise clean air for what it is: a necessary component for healthy societies, people and long-term economic prosperity and social well-being in Europe. A stronger vision and framework for action is needed, and this paper recommends what the EU needs to do next. Have a stronger vision and framework for action by: Adopting an ambitious and comprehensive clean air agenda; Making cleaner air an integral part of the EU’s vision and framework for greater well-being; Improving enforcement of the air quality standards and monitoring; Raising awareness about the causes of air pollution, benefits of action and measures to be taken. Provide concrete measures to address air pollution by: Ensuring all key sectors, including agri-food, industry, energy and mobility, play their role; Encouraging, empowering and enabling regional, local and citizen action.
Topic:
European Union, Public Health, and Air Pollution
Political Geography:
Europe

316. A quantum cybersecurity agenda for Europe

Author:
Andrea García Rodríguez
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Cybersecurity plays an important role in Europe’s economic security. However, advances in quantum computing create a new set of challenges that compromise the level of security of everything happening online. Actors like the United States and some — but not all — EU member states are already taking action to counter current and emerging threats. Yet, European coordination will be necessary to ensure a harmonised and effective response. This Discussion Paper provides recommendations on how the EU could enhance its efforts to navigate cybersecurity risks. These include: 1. Establishing an EU Coordinated Action Plan on the quantum transition. 2. Establishing a new expert group within the European Union Agency for Cybersecurity with seconded national experts to exchange good practices and identify obstacles to the transition to post-quantum encryption. 3. Assisting in setting priorities for the transition to post-quantum encryption and pushing for cryptographic agility to respond to emerging vulnerabilities. 4. Facilitating political coordination between the European Commission, member states, national security agencies and ENISA to determine technological priorities and identify use cases for quantum-safe technologies. 5. Facilitating technical coordination at the EU level to address research gaps in quantum-safe technologies. 6. Exploring the use of sandboxes to accelerate the development of near-term applications of quantum information technologies.
Topic:
European Union, Cybersecurity, and Economic Security
Political Geography:
Europe

317. Soldiers out, civilians left behind: EU lessons from the evacuation of Kabul

Author:
Mihai Sebastian Chihaia and Georg Riekeles
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
This is the introduction to a three-part Report that reviews the evacuation of Kabul, and the combined failures of NATO and the EU, amid the war in Ukraine. Even if Europe’s security debate has moved on to this bigger and more pressing challenge, the EU must heed the lessons from Kabul as it reviews its crisis management architecture and implements the Strategic Compass. The exact conditions of the Afghanistan evacuation might not be seen again for many years. Still, the EU must consider a range of other scenarios: European soldiers or citizens in danger needing evacuation from failing states or war zones, military support for humanitarian assistance and disaster relief, or even short-term stability support to governments and initial entry missions. This requires a commitment to, and building of, EU rapid deployment capacities that are effectively ready to be used, associated with appropriate crisis management structures for EU decision-making. These are the questions that have interested this project, whose examination is structured in three parts: A description of the central decision moments leading up to and during the evacuation from Afghanistan. An assessment of the main factors contributing to failure in anticipation, planning and execution. Recommendations regarding the EU’s crisis management architecture and capacity in the context of the implementation of the Strategic Compass.
Topic:
Security, NATO, and European Union
Political Geography:
Afghanistan, Europe, and South Asia

318. EU-Ukraine wartime trade: Overcoming difficulties, forging a European path

Author:
Svitlana Taran
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
During the first year of Russia’s war in Ukraine, EU trade-liberalisation measures and EU-Ukraine Solidarity Lanes provided Ukraine with alternative export routes and allowed the country to reorient part of its exports to the EU market. However, the insufficient logistics capacity and lack of adequate coordination and cooperation during the operation of Solidarity Lanes led to tensions between Ukraine and its Eastern European neighbours. While a compromise between the European Commission and the Eastern European countries allowed the extension of temporary trade-liberalisation measures for a further year, resolving the immediate crisis, more is needed to ensure their smooth operation. This Discussion Paper provides recommendations on how the EU can further intensify efforts to facilitate Ukraine’s trade flows and prevent sudden trade disruptions and restrictions. These include: Enhance the strategic alignment and connectivity between Ukraine and the EU; Ensure security guarantees and increase the capacity of seaport corridors; Enhance coordination and unity between the Commission, EU member states and Ukraine; Avoid sudden and unjustified Solidarity Lanes' disruptions; Protect critical port and export infrastructure from Russia’s attacks; Facilitate EU-Ukraine trade liberalisation and Ukraine’s integration into the EU Single Market.
Topic:
Security, European Union, Trade Liberalization, Trade, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

319. Is the European Health Union ready for the challenges of the 21st century?

Author:
Elizabeth Kuiper and Danielle Brady
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The COVID-19 pandemic laid bare national health systems' unpreparedness and structural weaknesses. It also emphasised the disparities in national capabilities among European countries and the lack of a common European approach against cross-border health threats. As we enter a post-pandemic era, this Discussion Paper assesses the proposals under the European Health Union and sets out recommendations to address the identified shortcomings. These include: Adopting a more holistic approach by appointing a Vice President for Well-being. Strengthening crisis preparedness by elevating HERA to an agency. Promoting access and affordability by extending joint procurement. Strengthening the European health workforce by tackling shortages and addressing skills gaps. Mitigating the cost of inaction by increasing investment in health. Ensuring planetary health by promoting a Green European Health Union. Promoting Europe’s status as a global leader in health data by harmonising health data regulations with the European Health Data Space. Safeguarding the EU’s strategic autonomy by implementing the Versailles Declaration and strengthening supply chain resilience. Building on the EU’s Global Health Strategy by exploring global partnerships. This Paper builds on the findings of the European Policy Centre’s Task Force on the European Health Union. The multistakeholder Task Force was held under the auspices of the EPC's Social Europe and Well-being programme with the kind support of Amgen, MSD, Johnson&Johnson, SITRA and EIT Health.
Topic:
European Union, Public Health, COVID-19, and Strategic Autonomy
Political Geography:
Europe

320. Planetary health: A holistic vision for people and the planet

Author:
Danielle Brady
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The nexus between health and the environment has been underscored by crises such as COVID-19 and the climate crisis. As awareness of policy interlinkages grows, so does the need for more coordinated EU and national policymaking. Calls for a more holistic approach have long been recognised, but the pandemic has further emphasised the importance of dismantling existing barriers in policymaking to improve the health status of people, animals, and the planet. This Discussion Paper, funded by Sitra, the Finnish Innovation Fund, advocates for implementing a planetary health approach across all levels of governance to encourage transdisciplinary action and puts forward ten recommendations: Pursue coordinated policymaking by breaking down silos. Appoint an Executive Vice President for the Well-being Economy. Plan and implement national roadmaps and establish common indicators. Create best practices platforms. Adopt planetary health for health systems. Promote education on planetary health. Adopt a European-wide communication campaign. Invest in research and innovation. Foster the integration of the European Health Data Space with future data spaces. Work with international partners to adopt a global planetary health approach. Planetary health offers many benefits for health and the environment. However, without concentrated efforts to move beyond the traditional siloed approach to policymaking, the benefits may never be realised.
Topic:
Climate Change, Health, European Union, and COVID-19
Political Geography:
Global Focus

321. The Nexus Approach: Bringing together climate, human security, and demographic change in times of permacrisis

Author:
Eleonora Milazzo
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The start of a new institutional cycle and the development of the European Council's Strategic Agenda will raise concerns about the EU's ability to respond to multiple problems in a more systemic and conscious style. Therefore, a holistic nexus approach that combines greater inter- and intra-institutional collaboration with strategic vision and principled leadership will be essential if the EU is to deliver on complex challenges. It will play a vital role in the EU’s ability to deal with today’s permacrisis with regard to climate change, human security, and demographic transformations. This Discussion Paper retraces the genesis of the nexus approach in humanitarian and development cooperation to draw lessons learned for the EU’s strategic thinking around systemic and deeply interconnected problems. It shows how a conscious strategic vision, more coherence, and principled leadership will be crucial if the EU is to tackle complex challenges effectively.
Topic:
Climate Change, Demographics, European Union, Crisis Management, and Human Security
Political Geography:
Europe

322. Peninsula Plus: Enhancing U.S.–South Korea Alliance Cooperation on China, Multilateralism, and Military and Security Technologies

Author:
Jacob Stokes and Joshua Fitt
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Center for a New American Security (CNAS)
Abstract:
The United States–Republic of Korea (ROK or South Korea) alliance has entered a critical phase. In 2023, the two countries will commemorate the 70th anniversary of signing their bilateral mutual defense treaty. This year also marks the first full year under national leaders President Joe Biden and President Yoon Suk Yeol. After several challenging years in the two countries’ relationship, ties are improving. Better alliance relations have, unfortunately, coincided with a deterioration in the regional and global security environment, specifically due to threats from North Korea, China, and Russia. This report examines the U.S.-ROK alliance as it adapts to the new regional context by exploring how the United States and South Korea can sustain and deepen their relationship in three vital policy areas: coordination on China, alignment in minilateral and multilateral settings, and defense technology collaboration. Perhaps the biggest shift in alliance priorities in recent years has been the growing importance of the China challenge. During Chinese Communist Party General Secretary Xi Jinping’s decade in power, Beijing has adopted a more muscular foreign policy. Both the United States and South Korea have reshaped their approaches toward China in response. ROK concerns about China have grown as Beijing shields Pyongyang and acts aggressively elsewhere in the region, including toward Taiwan. But South Korea’s approach to China will continue to differ from that of the United States. The allies have divergent preferences regarding the speed, manner, and degree of partial decoupling with China. Moreover, South Korea’s deep trade ties with China will continue to make it vulnerable to Chinese political and economic coercion.
Topic:
Security, Science and Technology, Alliance, Multilateralism, Cooperation, and Military
Political Geography:
China, Asia, South Korea, and United States of America

323. Buying Time: Logistics for a New American Way of War

Author:
Chris Dougherty
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Center for a New American Security (CNAS)
Abstract:
Discussions about defense strategy that focus on combat units and fail to account for logistics are irrelevant when it comes to understanding how well the United States can deter or defeat aggression by China or Russia. Planes, ships, and tanks are just weapons systems; making them combat capabilities requires getting them and their crews into the fight; supplying them with fuel, food, water, medical care, and munitions; and keeping them maintained. Logistics, more than the quantity of forces or the quality of technology, will determine the potential combat power available to the United States in future conflict scenarios with China or Russia. It will influence Chinese and Russian decisions about going to war, and when, where, and how to fight. It will bound the military courses of action available to U.S. commanders and delineate the strategic options available to presidents. Despite this critical role, the Department of Defense has systemically underinvested in logistics in terms of money, mental energy, physical assets, and personnel. Neglect of logistics arguably became most severe in the post–Cold War era. Pressure to save money through efficiency and misguided attempts to run the department like a “lean” business disproportionately impacted logistics. Maximizing the ratio of combat “tooth” to logistical “tail” saved money, but at the cost of leaving U.S. armed forces with a logistical system that is stretched thin supporting peacetime operations and wholly unsuited to the demands of warfare with China or Russia. Recognizing U.S. dependence on strained logistics networks, China and Russia have developed means to attack these networks, including long-range missiles and cyberattacks. Barring changes to U.S. logistics and sustainment concepts, such attacks present a grave threat to the department’s ability to uphold U.S. security commitments in East Asia or eastern Europe.
Topic:
Security, Defense Policy, Military Strategy, and Logistics
Political Geography:
North America and United States of America

324. Charting a Transatlantic Approach to Russia: A Working Paper of the Transatlantic Forum on Russia

Author:
Andrea Kendall-Taylor
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Center for a New American Security (CNAS)
Abstract:
Although the United States and Europe are not directly engaged in the war with Russia in Ukraine, Moscow clearly sees itself as being at war with the West. The United States and Europe, therefore, must be prepared for a period of what is likely to be prolonged confrontation with Russia, with the war for Ukraine at the center of that confrontation. Successfully navigating this period of sustained confrontation requires continued cohesion and coordination between the United States and Europe to ensure they share a common picture of the challenge that Russia poses and the necessary response. Russia’s war in Ukraine has precipitated rapid and major changes in Europe and broader ripple effects that are altering political dynamics much farther afield. Because of the war in Ukraine, Russia itself is changing in still unknowable ways. Russian President Vladimir Putin is taking the country in a more authoritarian direction, Russian society is shifting, and the Russian military’s degradation in Ukraine means that the nature of the Russian threat is evolving. Russia’s war, therefore, requires the allies to re-examine long-held assumptions and understandings about Russia and its intentions and capacity, and it is those updated assessments that should guide the transatlantic partners’ future policy approach toward Moscow. There is no going back to the way things were with Russia prior to its invasion of Ukraine. Instead, Western allies must build on ongoing efforts to constrict and constrain the Kremlin’s ability to sustain aggression in Ukraine and more broadly beyond Russia’s borders. It also will require the development of a long-term and sustainable approach to restoring peace and stability to Europe, increasing resilience to the Kremlin’s tools and tactics, and planting the seeds for a less confrontational relationship with a future Russia. In many ways, such an approach will resemble the containment strategy first set out in the 1940s, a strategy designed to apply steady and forceful counterpressure to a regime whose paranoia and insecurities represented a clear danger to the West, just as the Putin regime does today. Each of the transatlantic allies’ preferred policy approaches will reflect their own proximity to and history with Russia, as well as current political realities within their own borders. Nonetheless, there is broad consensus within the alliance that the unprecedented cohesion and coordination among allies in the wake of Russia’s invasion must hold. To that end, this working paper provides a starting point for the development of a transatlantic approach to Russia. It articulates expectations for relations with Russia that should guide the allies’ approach, outlines the broad objectives that a transatlantic Russia policy should seek to accomplish, and in some cases more specific near-term actions the allies can take. The analysis reflects two years of dialogue that CNAS has conducted through its Transatlantic Forum on Russia (TFR). It brings together and builds on previous work facilitated by the Forum, including policy papers, op-eds, articles, a Senate Foreign Relations Committee testimony, “What Comes Next for U.S. Policy Toward Russia,” and other cited publications.1 The paper aims to provide fodder for policymakers and experts on both side of the Atlantic to debate and refine through continued dialogue, including through the future work of the TFR.
Topic:
Security, Defense Policy, Transatlantic Relations, Dialogue, and Russia-Ukraine War
Political Geography:
Russia and Europe

325. RCEP and Indonesia: Economic Reform and Prospects for Implementation

Author:
Yose Rizal Damuri and Deni Friawan
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The conclusion of the Regional Comprehensive Economic Partnership (RCEP) is very important for Indonesia as it may bring many benefits to the country. This paper is an attempt to see the role of domestic political-economy dynamics in facilitating and constraining Indonesia’s decision to join, ratify, and implement a free trade agreement (FTA). It also seeks some understanding on whether an FTA can bring significant market liberalisation. This paper focuses on two areas of observation. First, it discusses the current progress of the legislative process and public acceptance of the RCEP agreement in Indonesia and how the process is influenced by the political-economy dynamics of the country. Second, the paper also looks at the potential impacts of the agreement on Indonesia’s current reform agenda, especially the recently passed Jobs Creation Law (Law No. 11/2020). For these observations, we conduct a content analysis on RCEP-related news published in two newspapers in Indonesia, namely Kompas and the Jakarta Post. In addition to content analysis, we also conducted interviews with stakeholders, including parliament members and government officials from the Ministry of Trade who have been actively involved in RCEP negotiations and the ratification process. The paper provides some remarks and recommendations for the future agenda of RCEP ratification and implementation in Indonesia.
Topic:
Economics, Reform, Policy Implementation, Free Trade, and Trade
Political Geography:
Indonesia and Southeast Asia

326. Impacts of FDI Presence and Product Sophistication on the Demand for Skilled and Unskilled Labour: Evidence from SMEs in Viet Nam

Author:
Quang Hoan Truong and Van Chung Dong
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study employs data from the Viet Nam Enterprise Survey (VES) for 2007 and 2011) to examine the effect of foreign direct investment (FDI) and product sophistication as well as the interaction between these two factors on the skilled and unskilled labour demand on Viet Nam’s small and medium-sized enterprises (SMEs). It finds that the FDI presence in the same industry but different regions – and FDI in the same region but different industries – has a positive effect on the skilled labour demand and a negative impact on the unskilled labour demand. FDI in the same industry has a negative effect on the skilled labour demand and an advantageous impact on the unskilled labour demand. The product sophistication index is found to positively affect the skilled labour demand but decreases the demand for unskilled labour. When interacting with product sophistication, FDI presence in the same industry and region positively affects the skilled labour demand. The study also finds the opposite impacts of different types of FDI presence as well as the interaction between FDI presence and product sophistication on the demand for highly, medium-, and basic-skilled labour. Thus, it is important to consider the opposite effects of different types of FDI and the interaction between FDI presence and product sophistication on SME labour demand by skills level.
Topic:
Foreign Direct Investment, Skilled Labor, Small Industries, and Unskilled Labor
Political Geography:
Vietnam and Southeast Asia

327. Adoption of Sustainable Practices for Improving Agricultural Productivity in Viet Nam

Author:
Huong-Giang Pham, Tuong-Anh T. Nguyen, and Hoang-Nam Vu
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Conventional agricultural methods are putting considerable strain on developing countries’ environments. This problem can be ameliorated through the adoption of Sustainable Agricultural Practices (SAPs), which can bring economic, ecological and social benefits for farmers, consumers and the overall economy. However, the adoption rates of SAPs remain low in many developing countries. It is therefore vital to provide empirical evidence on the improvement of agricultural productivity as it may assist policymakers in designing suitable policy as well as encourage farmers to adopt SAPs on their farms. This study analyses the impacts of different SAP adoption packages on land productivity and labour productivity in Viet Nam. This is the first attempt in the context of Viet Nam to investigate the economic effects of adopting different SAP packages including crop diversification (CD), conservation agriculture practices (CA) and a combination of those. Using panel Viet Nam Access to Resources Household Survey (VARHS) data with multinomial endogenous switching regressions and an instrumental variable helps reduce potential biases in impact evaluation that previous studies have not fully addressed. Results confirm that if a farmer adopts SAPs, it may raise his net profit per hectare by about 4 million Vietnamese Dong (D)/ha/year, whereas the agricultural income per hectare increases by about 4–6 million D/ha/year. Moreover, the joint adoption of multiple SAPs brings higher benefits (of about 2–4 more million D/ha/year) than single SAP adoption. These findings suggest that policymakers and related stakeholders should focus on promoting the adoption of a combination of crop diversification and conservation practices.
Topic:
Agriculture, Sustainability, and Productivity
Political Geography:
Vietnam and Southeast Asia

328. Productivity Effects of Viet Nam’s Rice Land Restrictions

Author:
Peter Warr and Huy Quynh Nguyen
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam’s 1986 programme of market-oriented economic reforms did not include the freedom of farmers to choose their crops independently. Large areas of land remain restricted to rice production. This paper studies the effects of this policy on agricultural productivity, using panel data from the Viet Nam Access to Resources Household Survey (VARHS), covering the years 2008 to 2016. The econometrics uses fixed effects methods with and without the additional use of instrumental variable methods to allow for the possible statistical endogeneity of the restrictions. The findings are that the crop choice restrictions reduced the overall productivity of annual crop land by about 5%, reduced the overall productivity of farm labour by about 8% and reduced the mean incomes of farm households by 5%–6%, implying increased levels of rural poverty. Moreover, rice output would have been no lower if the restrictions were removed.
Topic:
Agriculture, Development, Governance, Regulation, Land, and Productivity
Political Geography:
Vietnam and Southeast Asia

329. Foreign Direct Investment, Agglomeration, and Production Networks in Indonesian Manufacturing

Author:
Dionisius Narjoko
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the importance of globalisation – defined by international production networks – in determining foreign direct investment (FDI) flows into Indonesian manufacturing since 2000. It is motivated by the fact that the extent of connection between the Indonesian and the global economy had increased after the 1997–98 Asian financial crisis. Models of FDI are estimated by utilising plant-level data and various trade and tariff data. Production networks or agglomeration are found to play an important role in driving FDI in Indonesia’s manufacturing sector, at least for the period 2000–2015. This study provides the insight that agglomeration could be utilised to increase FDI in Indonesia. This not only improves the productivity of the sector targeted by the investment but also promotes productivity growth. Creating more agglomeration areas could therefore be a policy direction taken by Indonesia to help increase FDI.
Topic:
Foreign Direct Investment, Investment, Manufacturing, and Production
Political Geography:
Indonesia and Southeast Asia

330. Divergence in Non-Tariff Measures and the Quality of Traded Products

Author:
Doan Thi Thanh Ha, Kunhyui Kim, and Mahdi Ghodsi
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Non-tariff measures (NTMs) constitute a grey area where trade policy meets public policy goals. NTMs comprise a diverse set of regulatory policy measures, including testing and certification, rather than traditional international trade policy measures such as tariffs or tariff-rate quotas. Regulatory NTMs protect plants, animals, humans, and consumers from imported harmful products containing diseases; regulate the use of hazardous substances in production; ensure conformity with common standards; and protect the environment. Trade literature has focused on the impact of NTMs on trade flows, whereas few studies address the potential welfare-improving effects of these measures. This paper fills this gap by examining the relationship between NTM applications and the quality of traded products. Two questions are addressed. First, do more or additional burdens of NTMs in the foreign market incur a higher quality of exported products? Second, is the quality impact of NTMs in different sectors different between food and other manufacturing goods? We adopt a recently developed indicator to capture the additional requirements for exporters stemming from importers’ imposition of NTMs, and a quality estimator that controls for price. Our empirical results indicate that, overall, divergence in sanitary and phytosanitary (SPS) measures between the two trading partners reduces the quality of traded goods. Furthermore, while the divergence in SPS measures reduces the quality of traded goods in the manufacturing sector, the divergence in technical barriers to trade shows no statistically significant impact on the quality of traded goods between the two trading partners. The results imply that additional costs from technical barriers to trade are negligible compared with those from SPS measures in the manufacturing sector.
Topic:
Regulation, Tariffs, Public Policy, and Trade
Political Geography:
Global Focus

331. Does the Skill Premium Influence Educational Decisions? Evidence from Viet Nam

Author:
Ian Coxhead and Nguyen Vuong
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam’s economy has grown and changed in dramatic ways since WTO accession in 2007. Much of the growth and change is due to expanded international trade and FDI. These in turn have greatly increased domestic labour demand. However, growth that exploits the country’s abundant supply of low-skill labour may depress the relative demand for skills. In this paper we ask whether the skill premium – the relative price of skills, which also measures the gross economic benefit to schooling at high school and beyond – plays an influential role in schooling decisions amongst teenagers for whom wage-work is an alternative to continued education. We first use event study methods to clarify trends in wages and skill premia. We then decompose influences on upper secondary school enrolments from income growth, demographic change, and skill premia. We find that the college skill premium has a positive influence on enrolments, whereas the premium from upper secondary completion has no significant effect. Our conclusions explore implications for future productivity growth as well as economic and educational policies.
Topic:
Education, Labor Issues, Human Capital, Productivity, Skills, and Competition
Political Geography:
Vietnam and Southeast Asia

332. Technological Innovation and the Development of the Fuel Cell Electric Vehicle Industry Based on Patent Value Analysis

Author:
Yanfei Li, Jia Zhao, and Jianjun Yan
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Currently, major economies are competing on the technological and industrial development of fuel cell electric vehicles (FCEVs). This paper discusses the relationship between the patent value of FCEVs and the commercialisation of this technology. First, the patent data of FCEVs are analysed, focusing on data of China, Germany, Japan, the Republic of Korea, and the United States. Then, the paper constructs the FCEV patent value index framework based on the technological value and economic value of patents. Finally, this paper conducts an empirical study to analyse the influence of patent value on the development of the FCEV industry. It is found that, under the current situation, individual patent value can significantly promote the development of the FCEV industry, whilst the gross patent value of a certain country even has a negative impact. In addition, the increase of hydrogen infrastructure, research and development expenditure, and market demand will significantly promote the development of the FCEV industry. The development level of related industries such as the battery electric vehicle industry and the reduction of environmental pollution are also significant drivers of the development of FCEVs.
Topic:
Development, Science and Technology, Innovation, Industry, and Electric Vehicles
Political Geography:
Asia

333. Structural Changes and the Impact of FDI on Singapore’s Manufacturing Activities

Author:
Shandre Mugan Thangavelu
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This chapter examines the investment and foreign direct investment (FDI) policy of Singapore’s economy in terms of the structural transformation of the economy from 1998 to 2018. The study also examines the impact of FDI on the productivity of the Singapore manufacturing industries in a panel framework from 2017 to 2019. The results indicate that FDI activities have a positive impact on labour productivity. The export activities of multinational businesses have a positive impact on labour productivity. We also observe agglomeration effects from FDI activities (average FDI activities over 3 years) in Singapore’s manufacturing industries. However, we observe a negative impact of outsourcing labour productivity. The study also derives policy implications for forward-looking policies in terms of the position of Singapore in the global production value chain.
Topic:
Foreign Direct Investment, Manufacturing, and Industry
Political Geography:
Singapore and Southeast Asia

334. Investment Facilitation and Promotion in Cambodia: Impact of Provincial-level Characteristics on Multinational Activities

Author:
Shandre Mugan Thangavelu, Leng Soklong, Vutha Hing, and Ratha Kong
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the foreign direct investment policy of Cambodia in terms of investment promotion and facilitation. The study examines the key factors affecting the location of foreign firms (with more than 10% ownership) in Cambodia accounting for key provincial-level (18 provinces) characteristics, such as infrastructure (roads), population density (young population), special economic zones (SEZs), the number of establishments, poverty rate, rainfall, water supply, electricity supply, sharing of an international border, sharing a coastal area, and consumption per capita. The paper uses administrative data from the Council for Development of Cambodia, which manages foreign direct investment and the special economic zones in Cambodia. The study consists of nearly 500 foreign firms that have been approved to invest in Cambodia from 2017 to 2020. The results indicate a positive impact of road infrastructure (national and provincial roads) on foreign investment activities as it improves the movement of people and goods, reduces transaction costs, increases market access, and increases the service linkages within the domestic economy. At the provincial level, we observe that electricity supply, rainfall (water supply), land area, and a young working population have a positive impact on the investment decisions of foreign investors in the provinces of Cambodia. We also observe a negative impact of SEZs on foreign investment in Cambodia. The results indicate an urgent need for structural transformation of the Cambodian economy in terms of investment in soft and hard infrastructure and the development of the critical skills and human capital of the labour force. It is important to improve and upgrade the SEZs with key technologies and innovation to be more competitive in attracting foreign investment activities, which will be critical for increasing the competitiveness of Cambodian industries in global value chain activities.
Topic:
Multinational Corporations, Investment, Trade, and Global Value Chains
Political Geography:
Cambodia and Southeast Asia

335. What Japanese Tourism Amenities are Influenced in Terms of Affecting Inbound Tourist Demand?

Author:
Yoko Konishi and Takashi Saito
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Since 2012, the number of inbound tourists to Japan has increased every year, and new records of tourism-related economic indicators are being updated. On the other hand, the sudden inbound boom has led to a concentration of travel destinations, and over-tourism has become a problem. In this paper, we first statistically observe the concentration of tourists by accommodation type for each country of origin. Second, by identifying tourism amenities that contribute to inbound demand, we gain the knowledge necessary to shift demand from facilities with a high concentration of inbound tourists to facilities with lower occupancy. For the analysis, we utilised establishment data from the Online Travel Agency ‘Accommodation Travel Statistics Survey’ and data on tourism resources by region. The results show that the number of rooms, average price, membership of the hotel in a chain, internet availability, room type, number of World Heritage sites, and number of direct flights positively affect inbound demand. In particular, for ryokan (Japanese-style inns) with low occupancy rates and inbound guest ratios, their independence, internet availability, Western-style room availability, number of World Heritage sites, and hot spring facilities are effective in capturing demand.
Topic:
Economics, Tourism, Hospitality, and Travel
Political Geography:
Japan and Asia

336. The COVID-19 Pandemic and World Machinery Trade Network

Author:
Kozo Kiyota
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
In light of the importance of the machinery trade in global trade, this study examines whether the patterns of machinery exports changed significantly after the COVID-19 pandemic. Frameworks of network analysis and structural break analysis are applied to monthly level bilateral export data from January 2016 to March 2022. The main findings are threefold. First, positive structural change is found in exports in major machinery-exporting countries. Second, negative structural change in centrality is found in Japan and some ASEAN Member States (AMS), which implies a decline in the relative importance of these countries in the global machinery network. Third, the decline in Japanese centrality was not caused by the decline in export values or number of destination countries. Rather, it is attributable to the decline in the centrality of Japan’s export destination countries such as AMS. Noting that Japan has a relatively strong trade relationship with AMS, these results together suggest that the negative shock of the pandemic spread throughout the supply chain, which led to the decline in the relative importance of some countries – such as Japan – in the global machinery trade network.
Topic:
Exports, Trade, ASEAN, and COVID-19
Political Geography:
Japan, Asia, and Southeast Asia

337. The Effects of the United States-China Trade War During the COVID-19 Pandemic on Global Supply Chains: Evidence from Viet Nam

Author:
Duc Anh Dang and Ngoc Anh Tran
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The trade war between the United States (US) and China has affected their bilateral trade as well as that with other countries. This study investigates how Vietnamese firms performed during the COVID-19 pandemic under the shadow of this trade war. The change in the log of Vietnamese exports to the US from 2017 to 2020 is used to measure the impact of the trade war, and the change in the log of Chinese exports to the US is then used as an instrument for the Vietnamese export change during the same period. It is found that firms that faced more trade war exposure increased their investment, profit, and value added, which may be due to the market exit of unproductive firms. Moreover, the trade war impact is more pronounced for large firms. Foreign-invested firms gained less from trade war exposure. The pandemic weakened the trade war effect on firm performances; however, it exacerbated the trade tension effect on foreign-trade firms.
Topic:
Bilateral Relations, Investment, Trade, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

338. The Role of Export Incentives and Bank Credit on the Export Survival of Firms in India During COVID-19

Author:
Radeef Chundakkadan, Subash Sasidharan, and Ketan Reddy
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The aim of this study is threefold. First, we analyse the relationship between export incentives on firm survival during the coronavirus disease (COVID-19) crisis; second, we explore the nexus between bank dependency and survival in the export market; and finally, we test the complementarity and substitutability effect of export incentives and bank dependency on export market survival. We use firm-level information on Indian firms from 2016 to 2022, covering 4 years of the pre-pandemic period and 2 years of the post-pandemic period. We find that both export incentives and bank dependency improve the probability of export market survival in the post-pandemic period. These results are applicable to both the manufacturing and services sector, stand-alone firms, and business group affiliates. Our results remain robust while employing alternative proxies for the primary variable of interest and different methodologies.
Topic:
Business, Banks, Exports, and COVID-19
Political Geography:
South Asia and India

339. Global Value Chain Disruptions and Firm Survival During COVID-19: An Empirical Investigation

Author:
Sasidaran Gopalan and Ketan Reddy
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Despite the rapid acceleration of countries participating in global value chains (GVCs) over the last three decades, global GVC participation rates have plateaued since the global financial crisis (GFC) and worsened with the onset of the coronavirus disease (COVID-19) pandemic. The massive supply chain disruptions induced by the pandemic not only appeared to expose the vulnerabilities of GVCs, largely because of concentration risks, but also contributed to a dramatic decline in trade flows globally. As countries around the world emerge from the shadows of the pandemic, there is growing academic and policy interest in deciphering how countries should build effective strategies that facilitate firm survival, especially viewed from the lens of resilience and robustness. Considering this background, in this paper, we propose to make a twofold contribution to this literature. First, we undertake a comprehensive firm-level investigation (in a cross-country setting) to ascertain whether firms engaged in GVCs relative to non-GVC firms exhibited better survival instincts during the COVID-19 pandemic. Second, we uncover the heterogeneity of the shock across sectors and industries, considering the varied sectoral/industrial exposure to the COVID-19 pandemic. We document that GVC firms showcased greater robustness and resilience during the pandemic phase compared with other firms. Our results also show that the degree of resilience and robustness varies significantly by industry.
Topic:
Financial Crisis, Trade, Global Value Chains, and COVID-19
Political Geography:
Global Focus

340. Industry Agglomeration, Urban Amenities, and Regional Development in India

Author:
Subash Sasidharan and Shandre Mugan Thangavelu
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Industrial agglomeration is an important component to create efficiency and externalities for industrial growth and competitiveness for the Indian economy. In this paper, we examine the spatial location of Indian firms and industry agglomeration at district and township level for the Indian economy. Particularly, we examine the impact of urban amenities in driving the industrial agglomeration in the Indian economy using firm-level data. We carefully control for township-level urban amenities, as well as firm level characteristics in affecting the industry agglomeration. As opposed to previous state- and district-level studies, we examine the impact of urban amenities at a more disaggregated township level for 2011. The study also examines the impact of urban amenities on manufacturing, as well as the services sector. The empirical analysis findings indicate a positive correlation between town-level disparities in industry agglomeration and various amenities, including education, healthcare, energy, transportation, finance, and cultural resources. These results remain consistent when considering alternative measures of agglomeration and conducting sub-sample analyses.
Topic:
Development, Manufacturing, Services, and Industry
Political Geography:
South Asia and India

341. ASEAN Digital Community 2045

Author:
Lili Yan Ing, Yessi Vadila, Ivana Markus, and Livia Feliciani Nazara
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Over the last decade, the Association of Southeast Asian Nations (ASEAN) has undergone significant development in digitalisation. The rapid digital transformation in ASEAN, however, has brought forth risks and challenges encompassing data security, cybersecurity, competition, and the digital divide. To effectively address these challenges and leverage the potential of the digital realm, ASEAN developed nine frameworks during 2016–2023. Yet, the focus is primarily on digital trade. We suggest that ASEAN embrace digital transformation by establishing the ASEAN Digital Community (ADC) 2045. This vision could provide guidance to Member States, enabling them to overcome regional challenges and unlock their digital potential. It is crucial for ASEAN to nurture digital development across the three key pillars: political-security, economic, and socio-cultural dimensions. The three pillars should be built on four fundamental elements: data governance, value-added enhancement, improved digital connectivity, and digital inclusivity. Through the establishment of ADC 2045, ASEAN could position itself as a significant player in the global digital economy while ensuring that digital transformation aligns with its sustainable and inclusive development agenda.
Topic:
Science and Technology, Investment, Innovation, Trade, ASEAN, Connectivity, and Competition
Political Geography:
East Asia, Asia, and Southeast Asia

342. Accelerating AI in ASEAN: Addressing Disparities, Challenges, and Regional Policy Imperatives

Author:
Ikumo Isono and Hilmy Prilliadi
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Artificial intelligence (AI) is attracting significant attention worldwide in 2023 because of its potential to transform economies and societies. The Association of Southeast Asian Nations (ASEAN) must accelerate the debate on AI for five compelling reasons. First, narrowing the gaps in AI readiness within ASEAN is essential to share the benefits of AI equitably. Second, there are concerns that rapid advances in AI could result in job loss, and retraining is needed. Third, AI systems must be developed from an ASEAN-centric perspective to overcome prejudice and align AI with ASEAN values. Fourth, as developed countries implement AI regulations, ASEAN needs to consider the need for its own regional policies. Finally, now is the perfect time to discuss the positioning of AI in the regional framework as ASEAN’s digital integration initiative progresses. The paper discusses the significance of AI in 2023, the challenges in ASEAN, the need for its own policies, and policy recommendations.
Topic:
Science and Technology, Regulation, Human Capital, Innovation, Artificial Intelligence, and ASEAN
Political Geography:
Southeast Asia

343. Restoring Competitive Politics: Electoral Contestation and the Future in Turkey and India, and Iran and Russia

Author:
Hugh Sandeman
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The institutions and practices necessary for open and fair competition for political power are eroding across the world. In some countries, such as Turkey and India, the democratic dividend of electoral competition has been steadily undermined by majoritarian autocrats who have proved adept in campaigning for office and winning elections. In others, such as Russia and Iran, political leaders have marginalised or suppressed electoral processes, reducing them to closely managed performances that seek to demonstrate public consent. At least some traces of the mechanisms of electoral competition often remain in place, however, even where genuine public consent has been almost extinguished. This leaves open the possibility that the trend away from competitive electoral politics could be at least partially reversed in future, in the context of political succession or the electoral defeat of incumbents. In June 2023, LSE IDEAS brought together experts from the London School of Economics and Political Science (LSE) and other institutions to examine the potential for restoring the democratic dividend of competitive politics in four major countries. Turkey and India were selected for their timeliness—national parliamentary and presidential elections were held in Turkey in May 2023, and national parliamentary elections are due in India in April 2024—and for their similarities: both political systems are characterised by powerful elected leaders with a strong record of performance in national elections, each backed by large political parties based on an appeal to national and religious identity. Iran and Russia were chosen as examples of two states where competitive electoral politics had been temporarily enabled by significant political change—respectively, an impasse in Iran’s theocracy in the 1990s, and the end of the Soviet Union—only to be undermined by the reassertion of autocratic power. Two assumptions underlay the planning of this discussion on ‘Restoring Competitive Politics: Electoral Contestation and the Future’. The first is that the characterisation of political systems as either democratic or autocratic provides an insufficient basis for explaining many differences in the workings of political institutions, or for guiding policy. The second assumption is that while certain institutions and practices appear to be essential to maintaining open competition for political power—including for example, freedom and diversity of comment in major channels of communication like broadcast television, radio, newspapers, and social media—there is no useful empirical example or theoretical formulation of an ideal or perfect democratic political system. The exclusion from the discussion of countries with longer established forms of competitive politics, such as the United States or the United Kingdom, was not intended to suggest an implicit comparison with ideal types of functioning democracies. On the contrary, there are grounds for concern about the maintenance of open competition for political power in every country professing to be a democracy. As David Runciman has said of the future of democratic practices: ‘The question for the twenty-first century is how long we can persist with institutional arrangements we have grown so used to trusting, that we no longer notice when they have ceased to work.’ He warns that ‘democracy could fail while remaining intact’.
Topic:
Elections, Political stability, Autocracy, and Competition
Political Geography:
Russia, Iran, Eurasia, Turkey, Middle East, India, and Asia

344. China-US Competition in the Balkans Impact, regional responses, and larger implications

Author:
Ivan Lidarev
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
This strategic update from Sotirov Visiting Fellow Dr Ivan Lidarev analyses the competition between China and the US in the Balkans, striving to answer three broad research questions about its impact on the region. The paper analyses how the China-US competition has shaped the strategic framework in which Balkan states operate; how Balkan nations have responded strategically to this competition; and what the long-term implications of the regional US-China competition are.
Topic:
Foreign Policy, Strategic Competition, and Strategic Interests
Political Geography:
China, Eastern Europe, Balkans, and United States of America

345. China’s Semiconductors Reflections on Sources and Solutions to an Expensive Problem

Author:
Jonathan Liebenau
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The semiconductor industry has been a renewed topic of political debate for over three years. Due to recent US sanctions on the most advanced semiconductors, the industry has quickly become another flashpoint in the competition between the US and China to dominate the 21st century’s strategic technologies. In this Strategic Update, Dr Jonathan Liebenau explains the development of the semiconductor industry in the context of China’s rise to become an increasingly capable technology power. China’s sustained efforts in industrial policy to cultivate a domestic innovation system coincided with Western firms’ offshoring strategies since the 1990s, transforming China into a large producer and consumer of semiconductors. While Taiwan and the West retained cutting edge chip design capabilities, Chinese firms such as Huawei and Hikvision have become competitive providers of mobile phones, surveillance equipment and related infrastructure services. Despite Washington and its partners’ conviction to constrain in China’s technological prowess, industrial policy initiatives such as the CHIPS Act will face an uphill battle when it comes to bringing manufacturing capacity back to Western economies. In this context, the UK must combine short term incentives with a longer-term strategic vision to remain competitive in one of the 21st century’s key strategic arenas.
Topic:
Science and Technology, Sanctions, Strategic Competition, Production, and Semiconductors
Political Geography:
China, Asia, North America, and United States of America

346. Is Feminist Foreign Policy driving progress for women’s representation in diplomacy?

Author:
Caroline Green, Marta Kozielska, and Karen E. Smith
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
Building on an October 2022 Women in Diplomacy online event, this Strategic Update assesses the implications of feminist foreign policy (FFP) adoption for driving progress on improving women’s representation in diplomacy. Tracking the spread of FFPs globally and the ministers responsible for implementation, this paper focuses on their potential for improving or strengthening the role of women in diplomacy – including in ambassadorial and cabinet foreign-policy roles.
Topic:
Foreign Policy, Diplomacy, Women, Feminism, and Representation
Political Geography:
Global Focus

347. NATO’s 2022 Strategic Concept: One Year On

Author:
LSE Ideas
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
This Strategic Update summarises a roundtable discussion held at LSE IDEAS in July 2023. Contributors to the discussion were: General Sir James Everard, Stuart Austin, Professor Gordon Barrass, Professor Christopher Coker, Tom McKane, Hugh Sandeman, Susan Scholefield, and Peter Watkins. None of the content of the Strategic Update is attributable to any one individual. One year on from NATO’s Madrid 2022 summit, this Strategic Update address the 2022 NATO Strategic Concept and its implications for the future, especially regarding Russia’s war on Ukraine. The paper addresses the misalignment between preparations for defence and the real state of its armed forces, the UK’s symbolic support for Ukraine versus its capability, the concepts of resilience and deterrence, and finally the future of NATO’s relationship with Russia.
Topic:
Defense Policy, NATO, Armed Forces, Deterrence, Resilience, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and United States of America

348. China’s smart cities and the future of geopolitics

Author:
Valentin Weber
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
In this latest Strategic Update, Valentin Weber explores Chinese scientific research and industry application of smart cities, with ‘city brains’. The geostrategic implications for these complex Chinese smart city construction projects outside of China – particularly surrounding surveillance and artificial intelligence – and a potential future ‘world digital brain’ must be considered by policymakers, even if we are far away from an eventual bifurcation of the global internet.
Topic:
Science and Technology, Geopolitics, Surveillance, Artificial Intelligence, and Smart Cities
Political Geography:
China and Asia

349. Countering United Front Work: Taiwan’s Political Warfare System

Author:
Mariah Thornton
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
This strategic update introduces the challenges posed by China’s united front work, which has significantly expanded due to unprecedented institutional elevation and support under Xi Jinping. Mariah argues that Taiwan—a country that has effectively resisted China’s united front activities for several decades—can serve as an instructive case for other democratic countries in institutionalising counter-interference operations. The briefing initially explores the origins of Taiwan’s political warfare system, its evolution from the martial law era to democratisation in the 1990s, and how this history informs the institution’s modern structure and operations. The information presented in this report was compiled during a period of fieldwork in Taiwan from late September to early November 2022, in which she interviewed dozens of political warfare officers as well as Taiwanese defence and security experts–a majority of whom have chosen to remain anonymous. In the conclusion, Mariah offers broad policy recommendations based on these findings that may be applicable to other countries experiencing united front work activities and or seeking to institutionalise counter-interference operations.
Topic:
Security, Defense Policy, Politics, Public Opinion, Propaganda, and Regional Security
Political Geography:
China, Taiwan, and Asia

350. The Energy Crisis Requires a Military Solution that Compels NATO to Spend like Estonia

Author:
Leon Hartwell and Guillemette Guicherd
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
In this LSE IDEAS Strategic Update, the authors focus on the intimate relationship between the Russia-Ukraine war and the energy crisis, both for Ukraine and the rest of Europe. It is argued that although Western sanctions against Russia’s energy sector have been a welcome political statement, they have so far been inadequate. Moreover, in the absence of expanding Ukraine’s defence systems, supplying the country with critical equipment to rebuild its energy sector while it is under constant Russian bombardment has limited impacts. Consequently, the authors argue that to solve the energy crisis, both for Ukraine and the rest of Europe, NATO and its allies need to “spend like Estonia.” Spending like Estonia would, among others, entail ramping up support for Ukraine to 1.1% of each member state’s GDP. Such an approach could help Ukraine to decisively win the war in 2023, and it would help to avert a potential energy crisis during the next winter. 
Topic:
NATO, Crisis Management, Energy, and Russia-Ukraine War
Political Geography:
Europe, Ukraine, and Estonia