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  • Author: Alexander De Juan
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Does extraction increase the likelihood of antistate violence in the early phases of state building processes? While much research has focused on the impacts of war on state building, the potential “war‐making effects” of extraction have largely been neglected. The paper provides the first quantitative analysis of these effects in the context of colonial state‐building. It focuses on the Maji Maji rebellion against the German colonial state (1905–1907), the most substantial rebellion in colonial Eastern Africa. Analyses based on a newly collected historical data set confirm the correlation between extraction and resistance. More importantly, they reveal that distinct strategies of extraction produced distinct outcomes. While the intensification of extraction in state‐held areas created substantial grievances among the population, it did not drive the rebellion. Rather, the empirical results indicate that the expansion of extractive authority threatened the political and economic interests of local elites and thus provoked effective resistance. This finding provides additional insights into the mechanisms driving the “extraction–coercion cycle” of state building.
  • Topic: Economics, War
  • Political Geography: Africa, Germany
  • Author: Daniel Flemes, Alcides Costa Vaz
  • Publication Date: 02-2011
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: In the course of the last decade, the IBSA states (India, Brazil, South Africa) have increased their weight in the shifting global order, particularly in economic affairs. Can the same be said about the IBSA states' position in the international security hierarchy? After locating the IBSA coalition in the shifting world order, we analyze its member states' willingness and capacity to coordinate their security policies and build a common global security agenda. In addition, we explore the state of and perspectives on bi- and trilateral collaboration initiatives on defense and armaments between India, Brazil and South Africa. A key reason for the mostly modest results of global security agenda coordination and cross-regional defense collaboration is that the prevailing security concerns of each country are located at the regional level. Therefore, the starting point of an assessment of the prospects of IBSA's security cooperation and its potential impact on the strategic global landscape has to be a comparative evaluation of the regional security environments, focusing on overlaps and potential synergies between the national security policies of the three state actors.
  • Topic: Security, Defense Policy, Economics
  • Political Geography: Africa, India, Brazil
  • Author: Laurence Marfaing, Alena Thiel
  • Publication Date: 11-2011
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Since the beginning of the twenty‐first century, Africa has seen the arrival of a new form of Chinese migration. Largely independent from big Chinese players, these “new entrepreneurial migrants” come to Africa not as workers in the highly prestigious state projects, but rather to follow their own economic interests. Engaging in business activities as diverse as petty manufacturing, printing, pharmaceutical and medical services, restaurants, beauty salons and last but not least, general trade, these independent Chinese migrants are often acknowledged for bringing affordable new commercial services and goods to low‐income households on the African continent. On the other hand, the high visibility of the Chinese entrepreneurial activities has also sparked anti‐Chinese sentiments among many African entrepreneurs.
  • Topic: Economics, Imperialism, International Trade and Finance, Markets
  • Political Geography: Africa, China, Ghana
  • Author: Nicole Hirt
  • Publication Date: 01-2010
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This article analyzes contemporary Eritrea's acute crisis within the framework of the theory of anomie. It is based on the hypothesis that militarization, forced labor, mass exodus, and family disintegration can be interpreted as the consequences of two incompatible norm and value systems: the collectivist, nationalistic, and militaristic worldview of the former liberation front and ruling party People's Front for Democracy and Justice (PFDJ), and the traditional cultural system of Eritrea's society. In 2002 the regime introduced an unlimited "development campaign," thereby forcing large parts of the society to live as conscripts and perform unpaid labor. This has caused a mass exodus of young people and a rapid process of family disintegration. The article is based on empirical fieldwork and evaluates the ongoing developments, which have led to rapid economic decline and the destabilization of the entire fabric of society.
  • Topic: Development, Economics, Migration, Fragile/Failed State, Governance
  • Political Geography: Africa, Eritrea
  • Author: Annegret Mähler
  • Publication Date: 01-2010
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper studies the oil-violence link in the Niger Delta, systematically taking into consideration domestic and international contextual factors. The case study, which focuses on explaining the increase in violence since the second half of the 1990s, confirms the differentiated interplay of resource-specific and non-resource-specific causal factors. With regard to the key contextual conditions responsible for violence, the results underline the basic relevance of cultural cleavages and political-institutional and socioeconomic weakness that existed even before the beginning of the “oil era.” Oil has indirectly boosted the risk of violent conflicts through a further distortion of the national economy. Moreover, the transition to democratic rule in 1999 decisively increased the opportunities for violent struggle, in a twofold manner: firstly, through the easing of political repression and, secondly, through the spread of armed youth groups, which have been fostered by corrupt politicians. These incidents imply that violence in the Niger Delta is increasingly driven by the autonomous dynamics of an economy of violence: the involvement of security forces, politicians and (international) businessmen in illegal oil theft helps to explain the perpetuation of the violent conflicts at a low level of intensity.
  • Topic: Political Violence, Crime, Economics, Oil
  • Political Geography: Africa
  • Author: Dirk Kohnert
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: The remarkable influx of Chinese migrant entrepreneurs in West Africa has been met with growing resistance from established African entrepreneurs. Whether the former have a competitive edge over the latter because of distinctive sociocultural traits or whether the Chineseʹ s supposed effectiveness is just a characteristic feature of any trading diaspora is open to question. This comparative exploratory study of Chinese and Nigerian entrepreneurial migrants in Ghana and Benin provides initial answers to these questions. Apparently, the cultural stimuli for migrant drivers of change are not restricted to inherited value systems or religions, such as a Protestant ethic or Confucianism; rather, they are continually adapted and invented anew by transnational migration networks in a globalized world. There is no evidence of the supposed superiority of the innovative culture of Chinese entrepreneurial migrants versus that of African entrepreneurial migrants. Rather, there exist trading diasporas which have a generally enhanced innovative capacity vis‐à‐vis local entrepreneurs, regardless of the national culture in which they are embedded. In addition, the rivalry of Chinese and Nigerian migrant entrepreneurs in African markets does not necessarily lead to the often suspected cut‐throat competition. Often the actions of each group are complementary to those of the other. Under certain conditions they even contribute to poverty alleviation in the host country.
  • Topic: Economics, Markets, Migration
  • Political Geography: Africa, China
  • Author: Robert Kappel
  • Publication Date: 09-2010
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: As the conception of and debates on regional powers have been led by political science, this paper aims to contribute to the discussion from an economics perspective. Based on the discussion of different concepts of economic power—such as those of Schumpeter, Perroux, Predöhl, or Kindleberger—concepts of technological leadership, and the global value chain approaches, the paper develops a research framework for the economics of regional powers. This framework is then tested using descriptive statistics as well as regressions analysis, with a focus on the four regional powers Brazil, China, India, and South Africa. As economic power is relational, the relationship of regional powers to other nations in the region is analyzed.
  • Topic: Economics, International Trade and Finance
  • Political Geography: Africa, China, India, South Africa, Brazil, Latin America
  • Author: Lena Giesbert, Kati Schindler
  • Publication Date: 11-2010
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Using a micro-level approach to poverty traps, this paper explores welfare dynamics among households in post-war rural Mozambique. Conceptually, the paper builds on an asset-based approach to poverty and tests empirically, with household panel data, for the existence of a poverty trap. Findings indicate that there is little differentiation in productive asset endowments over time and that rural households gravitate towards a single equilibrium, which is at a surprisingly low level. The analysis shows that shocks and household coping behavior help to explain the observed poverty dynamics. The single low-level equilibrium points to an overall development trap in the rural farm-based economy. This is attributed to the long-term impact of the civil war, which has consolidated unfavorable economic conditions in rural areas and limited new economic opportunities outside of the agricultural sector.
  • Topic: Economics, Markets, Poverty
  • Political Geography: Africa
  • Author: Lena Giesbert, Susan Steiner, Mirko Bendig
  • Publication Date: 01-2009
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper argues that the study of the demand for financial services in developing countries leaves out part of the story, if it looks at only one of the three elements of the so called finance trinity, i.e. savings products, loans, or insurances, as is largely done in the literature. In contrast to previous research, it is assumed that households' choice for any of these services is strongly interconnected. Therefore, the paper simultaneously estimates the determinants of household demand for savings, loans and insurances by applying a multivariate probit model on household survey data from rural Ghana. On the one hand, the estimation results confirm the common finding that poorer households are less likely to participate in the formal financial sector than better off households. On the other hand, there is empirical evidence that the usage of savings products, loans and insurances does not only depend on the socio-economic status of households, but also on various other factors, such as households' risk assessment and the past exposure to shocks. In addition, trust in the providing institution and its products appear to play a key role.
  • Topic: Development, Economics, International Trade and Finance, Poverty, Third World
  • Political Geography: Africa
  • Author: Esther K. Ishengoma, Robert Kappel
  • Publication Date: 05-2008
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Ugandan micro- and small enterprises (MSEs) still perform poorly. The paper utilizes data collected in Uganda in March and April 2003 to analyze the business constraints faced by these MSEs. Using a stratified random sampling, a sample of 265 MSEs were interviewed. The study focuses on the 105 manufacturing firms that responded to all questions. It examines the extent to which the growth of MSEs is associated with business constraints, while also controlling for owners' attributes and firms' characteristics. The results reveal that MSEs' growth potential is negatively affected by limited access to productive resources (finance and business services), by high taxes, and by lack of market access.
  • Topic: Economics, Emerging Markets, Political Economy
  • Political Geography: Uganda, Africa
  • Author: Thomas Richter, Christian Steiner
  • Publication Date: 11-2007
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This article challenges claims that liberalising state regulated markets in developing countries may induce lasting economic development. The analysis of the rise of tourism in Egypt during the last three decades suggests that the effects of liberalisation and structural adjustment are constrained by the neo-patrimonial character of the Egyptian political system. Since the decline of oil rent revenues during the 1980s tourism development was the optimal strategy to compensate for the resulting fiscal losses. Increasing tourism revenues have helped in coping with macroeconomic imbalances and in avoiding more costly adjustment of traditional economic sectors. Additionally, they provided the private elite with opportunities to generate large profits. Therefore, sectoral transformations due to economic liberalisation in neo-patrimonial Rentier states should be described as a process, which has led to the diversification of external rent revenues, rather than to a general downsizing of the Rentier character of the economy.
  • Topic: Development, Economics
  • Political Geography: Africa, United States, Middle East, Egypt
  • Author: Lena Giesbert
  • Publication Date: 09-2007
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Migration and remittances are widely seen as major components of diversification strategies aimed at coping with risky environments in developing countries. The debate in the literature mainly concentrates on effects of and access to the strategy of migration. Against this background, the paper investigates patterns, determinants and the impact of internal migration on households based on data from a densely populated rural area in Western Kenya. The motivation behind migration is largely economic in kind. Accordingly, remittances account for a substantial share of household incomes. Results derived from a probit model estimation indicate that the likelihood of migration is independent from the wealth position of households. Instead, demographic household factors, education-related variables and migrant networks are of central importance. Migration and remittances are obviously more easily accessible than other opportunities of income diversification beyond farming for households across all levels of wealth, including the poorest households. JEL classification:
  • Topic: Economics, Migration, Regional Cooperation
  • Political Geography: Kenya, Africa
  • Author: Jorge Gordin
  • Publication Date: 06-2007
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper builds on institutional analysis to generate new conclusions about the economic viability of federalism. It does so by suggesting that Weingast´s seminal model of marketpreserving federalism falls short of accounting for the poor fiscal performance of multitiered systems in the developing world. This theoretical deficiency stems to a large extent from the insufficient attention paid by this model to the institutional complexity of federal systems, particularly the public policy effects of legislative malapportionment. Subsequent to an analytical discussion of the potential public spending and distributive politics distortions resulting from overrepresentation, we offer preliminary empirical evidence from Argentina, a federation exhibiting one of the most decentralized fiscal systems in the world and severe imbalances in the territorial distribution of legislative and economic resources. The findings show not only that said imbalances lead to sub‐optimal fiscal results but also that they have a mutually‐reinforcing relationship with regionalized patronage.
  • Topic: Economics, Government
  • Political Geography: Africa, Argentina, South America
  • Author: Jann Lay, George Michuki M'Mukaria,  Toman Omar Mahmoud
  • Publication Date: 04-2007
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Engagement in non-agricultural activities in rural areas can be classified into survival-led or opportunity-led. Survival-led diversification would decrease inequality by increasing the incomes of poorer households and thus reduce poverty. By contrast, opportunity-led diversification would increase inequality and have a minor effect on poverty, as it tends to be confined to non-poor households. Using data from Western Kenya, we confirm the existence of the differently motivated diversification strategies. Yet, the poverty and inequality implications differ somewhat from our expectations. Our findings indicate that in addition to asset constraints, rural households also face limited or relatively risky high-return opportunities outside agriculture.
  • Topic: Agriculture, Economics, Poverty
  • Political Geography: Kenya, Africa
  • Author: Henriette Dose
  • Publication Date: 02-2007
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: In the debate of sustainable rural livelihoods, diversification is seen as a way to secure incomes and to increase food security. On the basis of a data set on income security, this paper analyses to what extent this applies to small-scale farmers in Kakamega District, Kenya. Using the sustainable rural livelihoods approach, this paper draws the conclusion, that (1) diversification in agricultural production is not sufficient for securing rural livelihoods in Kakamega District; (2) a sufficient income diversification depends heavily on requirements like access to education, infrastructure, as well as investment capital; and (3) small-scale farmers in Kakamega District in most cases lack these requirements, therefore not being able to achieve secure household incomes or increased food security.
  • Topic: Security, Agriculture, Economics
  • Political Geography: Kenya, Africa
  • Author: Christian von Soest
  • Publication Date: 12-2006
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: The worldwide diffusion of the good governance agenda and new public management has triggered a renewed focus on state capability and, more specifically, on the capability to raise revenue in developing countries. However, the analytical tools for a comprehensive understanding of the capability to raise revenue remain underdeveloped. This article aims at filling this gap and presents a model consisting of the three process dimensions 'information collection and processing', 'merit orientation' and 'administrative accountability'. 'Revenue performance' constitutes the fourth capability dimension which assesses tax administration's output. This model is applied to the case of the Zambia Revenue Authority. The dimensions prove to be valuable not only for assessing the how much but also the how of collecting taxes. Theycan be a useful tool for future comparative analyses of tax administrations' capabilities in developing countries.
  • Topic: Development, Economics, Third World
  • Political Geography: Africa, Zambia, Holland
  • Author: Christian von Soest
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: Following the neopatrimonialism paradigm, it can be hypothesised that in African states informal politics of the rulers infringe on the collection of taxes and in turn reduce state revenues. This article tests this proposition for the case of Zambia. The main finding is that there is no linear correlation between a neopatrimonial system and the collection of taxes. Neopatrimonial continuity in the country is evidenced by three factors; the concentration of political power, the award of personal favours and the misuse of state resources. Despite this continuity, the revenue performance has increased considerably with the creation of the semi-autonomous Zambia Revenue Authority. This demonstrates that the effect of neopatrimonialism on public policy in the African state is highly context-specific and dependent on the interaction with additional variables. Donor pressure has been the most important in the Zambian case. In order to apply neopatrimonialism for further empirical work on public policy in the African state, these additional variables have to be incorporated into the analysis.
  • Topic: Civil Society, Economics, Politics
  • Political Geography: Africa, Zambia, Holland
  • Author: Susan Steiner
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: It is often claimed that decentralisation is effective for the reduction of poverty due to inherent opportunities for higher popular participation and increased efficiency in public service delivery. This paper is a qualitative assessment of the potential of the Ugandan decentralisation reform for poverty alleviation. The Ugandan government initiated an ambitious decentralisation reform in 1992, which represents an example of full-fledged devolution with the transfer of far-reaching responsibilities to local governments. However, several shortcomings, such as low levels of accountability, insufficient human and financial resources, corruption, patronage, and central resistance to decentralisation, constrain the proper implementation of the reform, putting improvements in participation and efficiency at risk and ultimately jeopardising the intended impact on poverty.
  • Topic: Economics, Humanitarian Aid, Poverty
  • Political Geography: Uganda, Africa