Political Geography: / Publication Year: within 10 Years and within 5 Years / Topic: Economy

1201. China-Lithuania Tensions Boil Over Taiwan

Author:: William Yuen Yee
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: China Brief
Institution:: The Jamestown Foundation
Abstract:: After Lithuania decided to open a Taiwanese Representative Office in July 2021, China responded with an all-out diplomatic and economic pressure campaign against the Baltic nation of 2.8 million people. The Chinese government expelled the Lithuanian ambassador, recalled its own ambassador from Vilnius in August, and downgraded Lithuania’s overall diplomatic status in China (Xinhua, August 10, 2021). In response, Lithuania announced a diplomatic boycott of the upcoming Beijing Winter Olympics in protest of China’s human rights abuses, even before the United States, Australia, Canada, and Britain announced their own Olympic boycotts (LRT, December 2, 2021). “Anyone who would choose Lithuania as an enemy has also made an enemy of the United States of America,” former U.S. President George W. Bush told a crowd of thousands gathered in the capital city of Vilnius in 2002 (Radio Free Europe/ Radio Liberty, November 25, 2002). Back then, Bush lauded Lithuania’s entry into NATO and pledged that its people would no longer stand alone against external aggression. Two decades later, rapidly intensifying tensions between Lithuania and China are putting Bush’s famous words to the test. As Lithuania looks to its democratic partners in the EU and U.S. for support amid a firestorm of Chinese sanctions, the response has been mixed and somewhat uncertain.
Topic:: Foreign Policy, Diplomacy, Economy, and Trade
Political Geography:: China, Eastern Europe, Taiwan, Asia, and Lithuania

1202. Why Should Turkey Comply With The Global Climate Regime?

Author:: Ahmet Atıl Aşıcı
Publication Date:: 04-2022
Content Type:: Policy Brief
Institution:: Turkish Economic and Social Studies Foundation (TESEV)
Abstract:: It is clear that Turkish economy is in need of a new trajectory. Under the current circumstances, it is not possible to offer jobs and hope to young people, and a secure future to the society. Therefore, it is necessary to reverse this vicious circle with a well-designed transformation program in an attempt to establish a durable and promising economic structure.
Topic:: Climate Change, Governance, Economy, and Sustainability
Political Geography:: Turkey and Middle East

1203. Stolen decades: the unfulfilled expectations of the Belarusian economic miracle

Author:: Aleś Alachnovič and Julia Korosteleva
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: Center for Social and Economic Research - CASE
Abstract:: The case of the Belarusian economy has puzzled many academic scholars for years. Belarus has often been referred to as a transition outlier, given its relatively fast recovery in 1996 and spectacular growth prior to the global financial crisis without much transformation of its economy. Three decades after gaining its independence, the state control of the economy still remains considerably high. Subsidized financing of state-owned enterprises allowed to preserve production capabilities over the first decade, to achieve some productivity gains in the late 1990s–early 2000s, and to avoid social destabilization. However, with a delay in structural reforms, this economic model, also heavily dependent on the Russian subsidies and foreign debt, has become fatigue, driving the economy into stagnation in the 2010s. The Covid-19 pandemic, the 2020 post-presidential political crisis and Russia’s war in Ukraine in 2022 put further strains on the economy, calling for change. This working paper gives an overview of the Belarusian economic developments before the presidential elections to have a better understanding of how various rigidities of the Belarusian economic model have amplified the detrimental effect of the political unrest for the economy and the Belarusian society overall, and discusses the anticrisis and mid-term economic reforms Belarus will have to undergo.
Topic:: Demographics, Labor Issues, Economy, Social Policy, and Trade
Political Geography:: Eastern Europe and Belarus

1204. Critical Event Analysis to Terrorism in an Emerging Economy of Pakistan

Author:: Shumaila Umer, Kausar Yasmeen, and Kashifa Yasmeen
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: South Asian Studies
Institution:: Department of Political Science, University of the Punjab
Abstract:: The widespread suffering caused by terrorism has been discussed at length in the media. Unfortunately, there is a relative paucity of empirical research on the nature and causes of terrorism. The present study examines the issue of terrorism quite modestly, but nonetheless significantly. It finds the root cause that generates numerous other causes which increase the incidence of terrorism. This study is unique in terms of its step-by-step implementation of analysis. In the first phase, the study applies thematic analysis and reveals the general causes of terrorism. In the second phase scrutiny of general causes is done to find the root cause of terrorism and finally, multinomial logistic regression is applied to ensure consistency between the results. Multinomial logistic regression reveals that coefficients of all interaction terms are significant, indicating that the effect of religion, geographic location, international players, and communications technology on terrorism depends on legislation and its strategic implementation. Like Ukraine, Pakistan is geographically significant for international players with respect to the containment of China and trade. Weak legislation in Pakistan facilitates international players not only to change the regime of the country but also to create terror groups that misuse religious schools. This study suggests that legislation must be implemented gradually through strategies; otherwise, policy implementation may have an adverse impact. Legislation helps to protect a country from terrorism in two ways. Firstly, it reduces the likelihood of terrorism entering, and secondly, it helps to combat existing terrorism. Based on the findings, this study also recommends counterterrorism, security officials have to work covertly in the media and other sectors which can impact the severity of terrorism in the country; this entails adopting mimicking factors. We expect that the present study will contribute to social and political improvements and have beneficial effects on the economy.
Topic:: Security, Terrorism, Economy, and Legislation
Political Geography:: Pakistan and South Asia

1205. Impact of CPEC on Pakistan’s Economic Outlook

Author:: Sajid Mehmood Shahzad
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: South Asian Studies
Institution:: Department of Political Science, University of the Punjab
Abstract:: Pakistan‟s vital geopolitical position is an advantage for this South Asian nation. It is located at the apex of the Arabian Peninsula. Thus, the People‟s Republic of China has setup the Belt and Road Initiative (BRI) with a futuristic strategy to gain long-term benefits. This planning is not random at all. It is a cohesive plan to revitalize the financial system of its long-standing collaborator and ally through the China-Pakistan Economic Corridor (CPEC) which is currently the talk of the town. The present study analyzes how Pakistan‟s conventional economic outlook can be transformed through the CPEC. While harnessing the power of Pakistan as a „trade route‟, the CPEC has the potential to reshape transport & security options, increase the cost-effectiveness of goods, and widen the scope for new and existing businesses. it will develop a networking coherence among agricultural & industrial hubs and connect special economic zones (SEZs) with the rest of the country and beyond. This paper evaluates the CPEC‟s fiscal footprint on Pakistan‟s economy and examines the correlation between overcoming economic shortcomings and increasing future gains through a cause-and-effect relationship.
Topic:: Geopolitics, Economy, and Belt and Road Initiative (BRI)
Political Geography:: Pakistan, China, South Asia, and Asia

1206. Blue Economy of Maritime Nations in South Asia: Challenges and Prospects

Author:: Fatima Faraan and Khushboo Ejaz
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: South Asian Studies
Institution:: Department of Political Science, University of the Punjab
Abstract:: The blue economy is the development of sustainable economic growth preserving the marine ecosystem. The concept of a blue economy emerged after the UN Rio+20 conference held in Rio de Janeiro in 2012. South Asian maritime nations are facing serious economic problems. They all have excessive oceanic resources and different maritime economy sectors like shipping, coastal tourism, fishing, etc. This research explores the challenges which are associated with these maritime economy sectors of South Asian littoral states. This study also intends to find out the possible options available to earn more through the maritime sectors to improve their current social and economic conditions. A case study design has been used in this research. Interviews have been conducted from maritime experts for this case study. India is the largest South Asian country in terms of population and technological advancements. It is investing a lot in the tourism and shipping sector to become a strong blue nation. Pakistan’s blue economy sectors have vast potential, but there is a need to formulate favorable policies and considerable investments to utilize all these resources. Bangladesh is putting positive efforts toward sustainable development in the coastal tourism, fishing, and shipping sectors. Maldives is famous for the best beaches and tourist destinations. Sri Lanka’s maritime economy sectors have faced many ups and downs, which affected her blue economy growth. This research concludes that the future of maritime South Asian states is related to the development of the blue economy. All these littoral states should work together and find out strategies for regional development.
Topic:: Economy, Economic Growth, Maritime, Sustainability, and Regional Development
Political Geography:: Pakistan, Bangladesh, South Asia, and India

1207. Central and South Asia Economic Corridor in the Evolving Central Asian Geo-Political Circumstances

Author:: Shabir Amhad Khan and Imrana Begum
Publication Date:: 07-2022
Content Type:: Journal Article
Journal:: South Asian Studies
Institution:: Department of Political Science, University of the Punjab
Abstract:: The US withdrawal from Central Asia, Russia-Ukraine conflict and diverted great-powers’ competition from the region necessitate and drive the Central Asian region to revive historical links and open up in southern direction. The circumstances also induce Russia to open up trade routes to South via Central Asia. Central Asia with prudent regional approach may move from a “shatter belt” status (a region torn by internal strife and external intervention) to strengthened regionalism in the absence of direct great powers’ competition. The changed geo-political and geo-economic situation presents new opportunities to Central Asia, Afghanistan and South Asia for developing the Central-South Asia economic corridor, though accompanied with challenges within Afghanistan. The paper argues that the recent changes in the situation of the region provide additional space to the Central Asian countries for political maneuver to address the issues of security and development by materializing Central-South Asia economic corridor.
Topic:: Security, Development, Geopolitics, and Economy
Political Geography:: Pakistan, Afghanistan, South Asia, and Central Asia

1208. Pakistan's Climate, Economic, and Political Crises

Author:: Syed Mohammed Ali, Elizabeth Threlkeld, and Arif Rafiq
Publication Date:: 10-2022
Content Type:: Video
Institution:: Middle East Institute (MEI)
Abstract:: Relentless floods in Pakistan have resulted in thousands of deaths, widespread displacement, and economic devastation. Today, we discuss these impacts as well as Pakistan's broader economic and climate change challenges, the ongoing political crisis, and developments on the foreign policy front. Joining us today are Syed Mohammad Ali, Elizabeth Threlkeld, and Arif Rafiq. Mohammed Ali is a non-resident scholar with MEI’s Afghanistan and Pakistan Program and a weekly columnist for Pakistan’s Express Tribune. Elizabeth is a Senior Fellow and Director of the South Asia Program at the Stimson Center. She previously served as a Foreign Service Officer with the U.S. Department of State in Pakistan in Islamabad and Peshawar. Arif is the president of Vizier Consulting, a political risk advisory company focused on the Middle East and South Asia. He’s also a non-resident scholar with MEI’s Afghanistan and Pakistan Program.
Topic:: Foreign Policy, Climate Change, Natural Disasters, Economy, Displacement, and Flood
Political Geography:: Pakistan and South Asia

1209. The Russian Economy Is Muddling Through the Sanctions War

Author:: Oleg Buklemishev
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Istituto Affari Internazionali
Abstract:: The transatlantic campaign of sanctions against Russia after its aggression of Ukraine is unprecedented in scale and scope, involving not only dozens of democratic states but also many non-state actors. It imposes considerable barriers and additional cost to the functioning of the Russian economy, which is bound to undertake deep restructuring with far-reaching consequences for production and consumption processes. The current appreciation of the rouble and inflationary slowdown are not signs of improvement but rather the direct effects of the stabilisation measures undertaken and, in fact, bode ill for further economic development. Numerous problems have started to surface this summer and optimistic assessments on the basis of initial resilience of the Russian economy look premature. Russia currently lacks a strategic plan of economic restructuring under the new environment. The future course of events will depend on whether the private sector leads this restructuring with minimal losses or the government imposes its normative prospective, tilting the result farther from economic equilibrium.
Topic:: Sanctions, European Union, Economy, and Russia-Ukraine War
Political Geography:: Russia, Europe, and Ukraine

1210. North Korea’s Covid-19 Outbreak: An Opening for Engagement?

Author:: Lorenzo Mariani and Leonardo Bruni
Publication Date:: 06-2022
Content Type:: Commentary and Analysis
Institution:: Istituto Affari Internazionali
Abstract:: In January 2020, in response to the novel coronavirus, the Democratic People’s Republic of Korea (DPRK; North Korea) closed its borders and for the next two years claimed it had not experienced a single case of Covid-19. However, on 12 May 2022, North Korea disclosed a severe domestic outbreak and in the following weeks began reporting millions of cases of “fevers” and several deaths.[1] Pyongyang’s admission was initially interpreted as a veiled request for international assistance as the country is particularly vulnerable due to its zero per cent vaccination rate, inadequate healthcare system and chronic food insecurity. However, as with previous attempts during the height of the pandemic, offers of aid and vaccines from the Republic of Korea (ROK; South Korea), the US, international organisations (IOs) and multilateral initiatives like COVAX received no response; most likely due to suspicion of the aid being politicised.[2]
Topic:: Health, Foreign Aid, European Union, Economy, and COVID-19
Political Geography:: Asia and North Korea

1211. COVID-19 Implications for China's National Security

Author:: Marta Gębska
Publication Date:: 03-2022
Content Type:: Journal Article
Journal:: Security and Defence Quarterly
Institution:: War Studies University
Abstract:: The COVID-19 pandemic began in March 2020 and China has since been under public scrutiny for neglecting the first signs of this global health challenge and for its lockdown strategy. Although lockdowns have not lasted for long, China needs to confront the political, social, and economic implications for its national security. The paper aims to fill a gap in the knowledge and investigate aspects of China’s national security in light of the pandemic. The study is based on desk research using secondary data and statistical and comparative analysis. It also employs an inductive method to build general theorems. The Chinese government can be seen as successful in dealing with the pandemic because of a low death toll and minimal economic losses. By early February 2022, only 106,863 Chinese had been diagnosed, and 4,636 had died from the virus. China also achieved enviable economic success and, its output grew by 18.3% year on year in the first quarter of 2021, the fastest rate since the 1990s, and it was the first major economy to withdraw its pandemic stimulus. China consolidated its position in low-income countries and improved its image as a global leader in trade by supplying vaccines, masks and ventilators, and strengthened its geopolitical standing. It will face threats from other countries working on a joint approach to the challenges posed by Beijing and while the aftereffects of the crisis can be seen, it also fears that they might further affect China's national security.
Topic:: National Security, International Security, Economy, COVID-19, and Economic Security
Political Geography:: China and Asia

1212. The role of local governance in achieving political stability: A joint public-private effort towards sustainable development

Author:: Pranish Desai
Publication Date:: 11-2022
Content Type:: Special Report
Institution:: Good Governance Africa (GGA)
Abstract:: Improving local governments' performance is vital because it is the governance sphere that is closest to local communities, local businesses, and local economic activities. It is in the best interest of companies operating in municipalities to play an active role in ensuring that their host municipalities can effectively deliver services, maintain infrastructure and plan for the future, thereby catalysing sustainable development. This will not only benefit municipalities and businesses but communities at large.
Topic:: Governance, Economy, Political stability, and Municipalities
Political Geography:: Africa

1213. A strategy to future-proof Zambia’s mining industry

Author:: Vincent Obisie-Orlu
Publication Date:: 11-2022
Content Type:: Policy Brief
Institution:: Good Governance Africa (GGA)
Abstract:: Zambia is in an opportune position to benefit from the growing demand for copper to support the global energy transition. Policymakers in President Hakainde Hichilema’s administration have an opportunity to build a resilient and high-performance Zambian economy to bring a true New Dawn. To realise this vision, Zambia must address key economic challenges such as the legacy effects of the previous instability of the mining regulatory system. Volatile changes have plagued the country until recently, with past governments changing mining taxes in response to the copper price. Resultantly, investment growth has diminished and the multiplier effect that would otherwise have been associated with mining has been foregone. Poor macroeconomic governance and mining growth retardation have also pushed Zambia’s national debt to unsustainable levels, as exports have been insufficient to fund debt repayment. The country is now seeking debt relief from its external creditors and has struck a deal with the International Monetary Fund. In this first of a two-part policy briefing series, we examine the key economic challenges associated with mining governance reform and provide recommendations that will help develop a resilient mining tax regime and a more streamlined regulatory environment. The second briefing will address the debt challenge. Considering the growing demand for copper to meet the global net-zero goal, and an impending global supply crunch, more copper will need to be produced and Zambia is in a prime position to do so. At the same time, Zambia has declining copper ore grades. Our primary recommendation, therefore, is that a profit-based Mineral Royalty Tax (MRT) framework be strongly considered. This will enable investment in the necessary capital and infrastructure needed to increase output and promote exploration. Though profit-based MRTs can be exploited by mining companies making claims of increased capital investment to increase outputs, when combined with the implementation of the Extractive Industries Transparency Initiative (EITI)’s reporting standards, the risk of exploitation is reduced.
Topic:: Natural Resources, Economy, Tax Systems, Mining, and Industry
Political Geography:: Africa and Zambia

1214. What Do We Really Know about Productivity Differentials across Countries?

Author:: Jayati Ghosh
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:: This paper examines and critiques the most widely used measure of productivity (output per worker employed) and argues that this is a flawed, inadequate and even misleading measure of economic progress. In terms of cross-country comparisons and assessing trends over time, both the numerator (GDP or value added) and the denominator (number of workers or hours worked) have significant conceptual and measurement problems. These issues are considered in general, and also with regard to how they affect analyses of productivity differentials in the U.S. and India in the recent period.
Topic:: Political Economy, GDP, Employment, Economy, and Productivity
Political Geography:: South Asia, India, North America, and United States of America

1215. Inflation Targeting in Open Economies: The Contradictions of Determinacy and Stability

Author:: Esteban Perez-Caldentey and Matias Vernengo
Publication Date:: 12-2022
Content Type:: Working Paper
Institution:: Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:: Since 1999, more than half of Latin American countries have put in practice inflation targeting regimes with the objective of maintaining price stability within a low inflation environment. Building on previous work, we argue that the adoption of this monetary regime was the result of a policy shift that began with the Washington Consensus, and which materialized sequentially in increased financial openness, greater exchange rate flexibility, leading eventually to the implementation of inflation targeting. We further sustain that in the case of an open economy, the use of inflation targeting leads to incoherent and contradictory results that severely question its alleged superiority over other monetary frameworks. Finally, we posit the need for comprehensive regulatory frameworks to deal with the complex dynamics and transmission mechanisms that characterize economies that have a high degree of financial openness, such as those of Latin America.
Topic:: Regulation, Economy, Inflation, and Economic Stability
Political Geography:: Latin America

1216. Lessons from the Inflation of 2021-202(?)

Author:: Asha Banerjee and Josh Bivens
Publication Date:: 12-2022
Content Type:: Working Paper
Institution:: Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:: Starting in mid-2021, inflation in the United States rose to levels not seen since the early 1980s. This inflation followed on the heels of the economic shock imposed by the global COVID-19 pandemic and the significant fiscal policy interventions meant to smooth the fallout of this shock. As of October 2022, inflation – both headline and core measures stripping out food and energy prices – remained at historically high levels, though there are significant signs of softening in the near-future. This episode has sparked furious debate over the proper policy response, and has exposed how little innovative thinking has been done on inflation by either macroeconomists or policy analysts since the 1980s price acceleration was ended by the Volcker shock. This paper identifies a number of key questions raised by the inflationary outbreak of the past 18 months and offers some answers. An extremely brief summary of these questions and answers is provided below, with the rest of the paper expanding on these points.
Topic:: Economy, Inflation, Macroeconomics, Fiscal Policy, and COVID-19
Political Geography:: North America and United States of America

1217. The Price of Speculation: Cryptocurrencies and Climate Change

Author:: Izaura Solipa and Gerald Epstein
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:: Cryptocurrencies are a form of digital currency whose popularity has rapidly increased over the past decade. What distinguishes them from other electronic currencies is their underlying technology known as the blockchain, a decentralized public ledger in which transactions among the network peers are accurately and securely recorded. The validation and mining process, where new coins are issued, is highly computationally intensive and thus requires vast amounts of energy. The literature estimates energy consumption levels of the cryptocurrency mining to be as high as those of countries such as Angola, Iceland or Cuba, and a corresponding emission of at least 3-15 million tons of CO2. We discuss these estimated impacts of Bitcoin and other cryptocurrencies on both energy levels and the environment, and then outline alternative applications that could promote climate change mitigation. We argue that despite the latter applications and the possible benefits from the technology, particularly in the energy sector, the financial uses of blockchain are creating significant environmental costs without any clear social or economic benefit stemming from this largely speculative activity.
Topic:: Climate Change, Science and Technology, Economy, Cryptocurrencies, Blockchain, Digital Currency, and Speculation
Political Geography:: Global Focus

1218. Measuring the intangible economy to address policy challenges

Author:: Marie Le Mouel
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Bruegel
Abstract:: European economies exhibit the so-called ‘productivity puzzle, whereby investments’ in digital technologies and intangible assets have not delivered the hoped-for productivity gains. Explanations for this puzzle lie in the unequal ability of companies to make use of these technologies, and resulting patterns of market concentration, productivity divergence and dampened business dynamism. Access to firm-level data is essential to properly understand these rich dynamics. The purpose of the first work package of the MICROPROD project was to improve the firm-level data infrastructure, expand the measurement of intangible assets and enable cross-country analyses of these productivity trends. The MICROPROD researchers developed the Micro Data Infrastructure (MDI), a centralised platform that harmonises access to the firm-level data gathered by national statistical institutes. The data infrastructure developed through this work package offers valuable insights into the evolution of productivity across the European Union and into the effects of digitalisation and globalisation. It can thus generate important evidence for designing policies to support the European Commission’s policy objectives, especially for achieving the digital and green transitions. In addition, the research enabled by this data infrastructure and carried out within the context of MICROPROD can provide valuable lessons about the response of European economies to the COVID-19 pandemic and its aftermath.
Topic:: Infrastructure, European Union, Digital Economy, Economy, and COVID-19
Political Geography:: Europe and Global Focus

1219. Measuring macroeconomic uncertainty during the euro’s lifetime

Author:: Monika Grzegorczyk and Francesco Papadia
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Bruegel
Abstract:: It is a cliché in official economic institutions’ publications and their leaders’ speeches to lament exceptional uncertainty. The complaint does, however, ring true currently. A solid empirical basis should be given to this view by properly measuring macroeconomic uncertainty. To measure macroeconomic uncertainty, we start from observable forecasts of macroeconomic variables, which are transformations of underlying economic conditions. By observing how forecasts change over time, we measure the flow of macroeconomic surprises. The more intense the flow of surprises, the greater uncertainty can be said to be. Greater differences among forecasts are also evidence of uncertainty. We draw out four indicators of macroeconomic uncertainty, measured over the lifetime of the euro: How the macroeconomic forecasts of a given institution for the same time period change over time; How the macroeconomic forecasts of a given institution deviate from realised outcomes; How the macroeconomic forecasts of different institutions deviate from one other; How dispersed the forecasts of different professionals are. We also measure whether the ‘stag-‘ or the ‘-flationary’ component is stronger in the overall stagflationary shock caused by the Russian invasion of Ukraine.
Topic:: Economy, Institutions, Macroeconomics, Uncertainty, and Euro
Political Geography:: Europe and Global Focus

1220. Mapping banking centres globally since 1970

Author:: Emmanuel Mourlon-Druol
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Bruegel
Abstract:: Brexit and the rise of China as a leading international economic power have revived discussions about the geography of banking centres. This paper analyses the geographical evolution of banking centres since the 1970s, based on a database constructed from a ranking of the top banks in the world created by The Banker magazine, a UK-based monthly publication specialised in international financial affairs. We describe both how the database was created and the ways in which it can be used to inform policy on money and capital markets. We address why the data can be used to proxy the size of International Financial Centres (IFCs) and the methodological limitations it may present. We find that banking consolidations and the evolution of the legal framework are more central to the changing geography of banking centres than economic and financial crises. We also highlight that, despite major shifts in global economic power, leading banking centres are hard to replace.
Topic:: Economy, Brexit, History, Fiscal Policy, and Banking
Political Geography:: Global Focus

1221. COVID-19 in the European Union: health impacts and effects on economic activity

Author:: Leonardo Cadamuro, Scott Marcus, and Francesco Papadia
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Bruegel
Abstract:: This paper quantitatively describes different aspects of the COVID-19 pandemics: new cases, hospitalisations, intensive-care admissions and deaths, while illustrating their changing relationships over time. It then assesses how the different variables have affected relevant sectoral and macroeconomic indicators. Finally, it concludes that, from an economic perspective, what matters when it comes to managing the pandemic is to prevent intensive-care admissions and deaths arising from COVID-19. The success of vaccination should be measured in terms of its ability to prevent the most serious consequences, rather than its ability to prevent infections and hospitalisations.
Topic:: Health, European Union, Economy, Macroeconomics, and COVID-19
Political Geography:: Global Focus

1222. The (Updated) Case for Free Trade

Author:: Scott Lincicome and Alfredo Carrillo Obregon
Publication Date:: 04-2022
Content Type:: Policy Brief
Institution:: The Cato Institute
Abstract:: The long‐standing bipartisan consensus in favor of free trade in the United States has unraveled as the nation’s commitment to the multilateral trading system is increasingly subordinated to inward‐looking ideological priorities. Like all forms of market competition, trade can be disruptive for some companies and workers, and various trade agreements may require updating to address both an increasingly authoritarian China and the 21st‐century global economy. Nevertheless, both the seen and unseen economic benefits that free trade has delivered to countless individuals, businesses, and communities in America are undeniable and irreplaceable. Furthermore, the lone alternative to free trade, protectionism, has repeatedly proven to impose high costs for minimal benefits. In short, the case for free trade is an economic no‐brainer.
Topic:: Geopolitics, Economy, Free Trade, and Protectionism
Political Geography:: North America and United States of America

1223. Opening Up Military Innovation: Effects of Bottom‐Up Reforms to U.S. Defense Research

Author:: Sabrina Howell, Jason Rathje, John Van Reenen, and Jun Wong
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: The Cato Institute
Abstract:: The U.S. economy’s productivity growth has slowed down in recent decades. This slowdown appears due in part to declining innovation, especially among high‐growth new firms, making the design of innovation incentives particularly important. One overlooked but crucial decision a government or private‐sector research funder must consider is whether to take a centralized top‐down approach, tightly specifying the desired innovation, or a more open bottom‐up approach, giving more latitude to firms to define their research proposals. The bottom‐up approach may be useful if the research funder is uncertain about what opportunities exist. We compare these two strategies by studying a major reform to the Small Business Innovation Research (SBIR) program at the U.S. Air Force.
Topic:: Reform, Economy, Research, Innovation, Defense Industry, and Military
Political Geography:: North America and United States of America

1224. Real Effects of Climate Policy: Financial Constraints and Spillovers

Author:: Söhnke M. Bartram
Publication Date:: 04-2022
Content Type:: Policy Brief
Institution:: The Cato Institute
Abstract:: Climate change is among the most intensely debated socioeconomic issues of current times. As a response to potential catastrophic risks from climate change, governments around the world are pushing for various regulations to curb greenhouse gas emissions. However, there is far from a consensus on optimal policy approaches, and as a result, climate policies are highly fragmented across the jurisdictions in which they are designed and implemented. More importantly, it is unknown whether such localized yet uncoordinated policies are able to internalize potential externalities that may impede efforts to address climate change as a global phenomenon or simply distort allocations in the economy. For example, at the beginning of 2013, California became the first and only state to put a comprehensive mandatory carbon regulation in place in the form of a cap‐and‐trade system that applies universally to all industrial greenhouse gas emissions. Exploiting the introduction of the California cap‐and‐trade rule, we investigate the internal resource‐allocation responses by firms and the real but unintended spillover effects of localized climate policies that arise from the importance of financial constraints. Our study analyzes the interplay between climate policy and firm behavior, and it informs policymakers regarding the effectiveness of climate regulation.
Topic:: Climate Change, Regulation, Economy, Business, and Carbon Emissions
Political Geography:: Global Focus

1225. How to make Indonesia’s sovereign wealth fund work

Author:: Kyunghun Kim
Publication Date:: 07-2022
Content Type:: Commentary and Analysis
Institution:: Lowy Institute for International Policy
Abstract:: The Indonesian government has established a sovereign wealth fund: the Indonesia Investment Authority (INA). Unlike many other sovereign wealth funds that manage large national savings, INA seeks to attract foreign co-investors to help fund economic development. INA’s near-term role is to purchase assets from heavily-indebted infrastructure-related state enterprises to improve their financial health and allow them to carry out further development projects. INA’s corporate governance arrangements are reasonable on paper. Much will depend on implementation. INA has attracted interest from a variety of international financiers, including state-backed investors from the United States, Japan, United Arab Emirates, and China. Clarifying INA’s investment goals and strengthening external monitoring mechanisms could help attract greater interest.
Topic:: Sovereign Wealth Funds, Economy, Investment, and Corporate Governance
Political Geography:: Indonesia and Southeast Asia

1226. Revising down the rise of China

Author:: Roland Rajah and Alyssa Leng
Publication Date:: 03-2022
Content Type:: Commentary and Analysis
Institution:: Lowy Institute for International Policy
Abstract:: China will likely experience a substantial long-term growth slowdown owing to demographic decline, the limits of capital-intensive growth, and a gradual deceleration in productivity growth. Even with continued broad policy success, our baseline projections suggest annual economic growth will slow to about 3% by 2030 and 2% by 2040, while averaging 2–3% overall from now until 2050. China would still become the world’s largest economy, but it would never enjoy a meaningful lead over the US and would remain far less prosperous and productive per person even by mid-century.
Topic:: Demographics, Economy, Economic Growth, and Strategic Competition
Political Geography:: China, Asia, and United States of America

1227. Organizational Hierarchies and Export Destinations

Author:: Irene Brambilla, Andres Cesar, Guillermo Falcone, and Guido Porto
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:: This paper proposes a new link relating export destinations and the organization of the firm. We claim that the production of higher-quality varieties exported to rich destinations induces firms to re-structure their production processes, becoming organizationally more complex. We introduce a theoretical model with these features and we explore the mechanisms using a panel of Chilean manufacturing plants. Our identification strategy relies on falling tariffs on Chilean products across destinations caused by the signature of Free Trade Agreements with high-income countries (the European Union, the United States, and South Korea). We find that Chilean plants that were induced by these tariff reductions to start exporting to high-income destinations increased the number of hierarchical layers and upgraded the quality of their products. This involved the addition of qualified supervisors that facilitated the provision of higher product quality. These effects took place at new high-income exporting firms.
Topic:: Economy, Free Trade, Exports, Hierarchy, and Quality
Political Geography:: Latin America and Chile

1228. Increasing Salience and Strategic Engagement for Women Economic Empowerment, Women Empowerment Collectives, and Gender Integration in Uganda

Author:: Susan Namirembe Kavuma, Florence Kuteesa, Emmanuel Keith Kisaame, Richard Ayesigwa, Phoebe Atukunda, and Philemon Okillong
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Advocates Coalition for Development and Environment (ACODE)
Abstract:: This study assessed the salience and strategic engagement for women economic empowerment, women empowerment collectives, and gender integration in Uganda. It delivers the roadmap for effective engagement of Women Economic Empowerment, Women Empowerment Collectives, and Gender Integration to refocus strategies for women economic empowerment, reflecting on effective stakeholders' engagement and pursuing commitment to leverage the synergies for WEE in a systematic and coordinated manner.
Topic:: Gender Issues, Women, Economy, Empowerment, and Strategic Engagement
Political Geography:: Uganda and Africa

1229. Swaziland: Basic data

Publication Date:: 07-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Swaziland

1230. War in Ukraine will weaken east European economies

Publication Date:: 07-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Economy, Outlook, Forecast, and Country outlook
Political Geography:: Turkey, Moldova, Kazakhstan, Tajikistan, Uzbekistan, Poland, Lithuania, Estonia, Armenia, Azerbaijan, Serbia, Bulgaria, Romania, Hungary, Turkmenistan, Georgia, Albania, Croatia, Latvia, Montenegro, Czech Republic, Slovenia, Slovakia, Bosnia and Hercegovina, Kyrgyz Republic, and North Macedonia

1231. Eswatini: Country outlook

Publication Date:: 07-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Economy, Outlook, Forecast, and Overview
Political Geography:: Swaziland

1232. Eswatini: Basic data

Publication Date:: 07-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Swaziland

1233. China: An Economic and Political Outlook for 2022

Author:: Kevin Rudd
Publication Date:: 01-2022
Content Type:: Policy Brief
Institution:: Asia Society
Abstract:: In recent years, Xi Jinping has taken China to the “left” politically and economically, but to the “right” with his deeply nationalist narratives at home and a more assertive foreign and security policy abroad. More recently, this has contributed to a slowdown in the Chinese economy and an increase in the level of political and policy reaction against Xi’s anti-market measures. Now, with last month’s Central Economic Work Conference, the Communist Party appears to have now acknowledged a number of Xi’s measures have indeed gone too far, especially as Xi himself seeks to maximize economic stability ahead of his bid for reappointment to another term in office at the 20th Party Congress this November. But whether these corrective measures will be enough to restore economic growth in the short term given the Chinese private sector is now “once bitten, twice shy” is another question altogether. In China: An Economic and Political Outlook for 2022 – Domestic Political Reaction to China’s Economic Slowdown ASPI President and CEO Kevin Rudd tackles these questions and provides an analysis of how China’s economic challenges are likely to shape its politics and policies in the year ahead.
Topic:: Foreign Policy, Politics, Economy, and Xi Jinping
Political Geography:: China and Asia

1234. 2022, Xi Jinping’s Annus Horribilis: Or is it?

Author:: Christopher K Johnson
Publication Date:: 08-2022
Content Type:: Policy Brief
Institution:: Asia Society
Abstract:: The year 2022 is proving to be a difficult one for China and for President Xi Jinping. Choices like Xi’s embrace of Russia and the zero-COVID policy have prompted sporadic outbursts from the Chinese public and a backlash abroad. Unsurprisingly, this has spawned speculation that Xi is facing political difficulties at home that could hamstring or even disrupt his plan to remain China’s top leader after the 20th Party Congress later this year. Despite the real challenges Xi and the party have faced in 2022, however, this paper will argue that such narratives rest on a series of faulty assumptions about the impetus for Xi’s consolidation of power, the presence of powerful opposition voices within the Chinese Communist Party (CCP) system, and the judgment that Xi’s policy approach amounts to a series of blunders that may help his critics as they try to diminish him at the party congress.
Topic:: Economy, Domestic Politics, Olympics, Xi Jinping, and COVID-19
Political Geography:: Russia, China, and Asia

1235. Australian views on the Indo-Pacific Economic Framework

Author:: Huon Curtis, Samantha Hoffman, and Gatra Priyandita
Publication Date:: 07-2022
Content Type:: Special Report
Institution:: Australian Strategic Policy Institute (ASPI)
Abstract:: Australian officials surveyed for this research view the Indo-Pacific Economic Framework (IPEF) as an opportunity to bring more investment into the Indo-Pacific region, shape standards setting, form collective solutions to supply-chain risks, and influence the direction of clean energy infrastructure. The IPEF is viewed as a potentially innovative way to boost regional investment rather than as a mechanism to strengthen the usual substance of trade agreements, such as market access into the US. While we note that the officials interviewed aren’t the ultimate decision-makers and that there’s a new government in Canberra with its own emerging priorities, this report offers insight into the potential opportunities for Australia to shape the framework.
Topic:: Defense Policy, National Security, Cybersecurity, and Economy
Political Geography:: Australia, Asia-Pacific, and United States of America

1236. Agenda for change 2022: Shaping a different future for our nation

Author:: Gill Savage, Peter Jennings, John Coyne, Malcolm Davis, and Robert Glasser
Publication Date:: 02-2022
Content Type:: Special Report
Institution:: Australian Strategic Policy Institute (ASPI)
Abstract:: In line with previous Agenda for Change publications from 2016 and 2019, this piece is being released in anticipation of a federal election as a guide for the next government within its first months and over the full term. Our 2022 agenda acknowledges that an economically prosperous and socially cohesive Australia is a secure and resilient Australia. ASPI’s Agenda for change 2019: strategic choices for the next government did, to a great extent, imagine a number of those challenges, including in Peter Jennings’ chapter on ‘The big strategic issues’. But a lot has changed since 2019. It was hard to imagine the dislocating impacts of the Black Summer fires, Covid-19 in 2020 and then the Delta and Omicron strains in 2021, trade coercion from an increasingly hostile China, or the increasingly uncertain security environment. Fast forward to today and that also applies to the policies and programs we need to position us in a more uncertain and increasingly dangerous world. Our Agenda for change 2022 acknowledges that what might have served us well in the past won’t serve us well in this world of disruption. In response, our authors propose a smaller number of big ideas to address the big challenges of today and the future. Under the themes of getting our house in order and Australia looking outward, Agenda for change 2022 focuses on addressing the strategic issues from 2021 and beyond.
Topic:: Foreign Policy, Defense Policy, Climate Change, National Security, Cybersecurity, Economy, Space, and Defense Industry
Political Geography:: Australia

1237. Shifting Supply Chains from China into India as an Effective Grand Strategy in the Indo-Pacific Region

Author:: Akhil Ramesh
Publication Date:: 03-2022
Content Type:: Special Report
Institution:: Pacific Forum
Abstract:: Between 2016 and 2020, nations of the Quadrilateral Security Dialogue (Quad) became patently aware of the risks posed by an authoritarian state such as China controlling much of global value chains. This realization among leaders of the Quad nations can be attributed to a general rise in populism around the globe—which ignited a debate on globalization—to the COVID-19 pandemic, China’s acts of economic coercion against Australia and aggression against India in the Galwan Valley. To prevent China from weaponizing interdependence, nations of the grouping have launched several supply chain diversification and economic security initiatives such as the Supply Chain Resilience Initiative (SCRI) and Economic Prosperity Network (EPN). While these initiatives are a step in the right direction, a larger reformatory initiative is needed to prevent diversification projects from becoming a flash in the pan. Shifting supply chains out of China and into India has the potential to be that much needed reformative initiative. This exploratory study of the challenges and opportunities associated with shifting supply chains into India tests this hypothesis by examining the domestic political economy in India and the complexities of the US-India relationship. This study observes major impediments to a supply chain diversification project. One, trade protectionism is a common feature among Indian administrations. India’s diverse political landscape has warranted coalition governments, which has prevented administrations from taking reformative action on liberalizing the economy. Two, the US-India relationship historically had ups and downs. The two democracies even came to the brink of war in 1971, and 20 years later, the US unleashed economic sanctions on India for their nuclear tests. A concerted recalibration of the US-India relationship is required to solidify any form of economic partnership, short of an alliance. To summarize, the Indian government should continue liberalizing its economy through the land, labor, and corporate governance reforms. The US should adopt a more conciliatory approach to India’s domestic issues to avoid fissures in the relationship. Subsequently, the US, Australia, and Japan will be able to capitalize on the opportunities the Indian economy and the Indo-Pacific economy at large present for supply chain diversification. These opportunities can be capitalized through creating a trade bloc exclusive for the Quad and establishing a wealth fund to fund investments in the wider region.
Topic:: Security, Economy, Grand Strategy, and Supply Chains
Political Geography:: China, India, Asia, and Indo-Pacific

1238. The Russian invasion to Ukraine: An agribusiness perspective

Author:: Hugo Krajnc
Publication Date:: 03-2022
Content Type:: Commentary and Analysis
Institution:: Argentine Council for International Relations (CARI)
Abstract:: It is quite relevant that the arguments used to justify the Russian invasion to Ukraine do not highlight economic components. Although it may be difficult to assert that such decision was also driven by economic issues, it is quite hard as well to deny that those were not involved, given the traditional Russian geopolitical perspective.
Topic:: War, Economy, Conflict, and Agribusiness
Political Geography:: Russia, Ukraine, and Eastern Europe

1239. Military Effects Of Economic Sanctions On Russia

Author:: Davit Shatakishvili
Publication Date:: 01-2022
Content Type:: Commentary and Analysis
Institution:: Georgian Foundation for Strategic International Studies -GFSIS
Abstract:: Russia’s military industry is a fundamental factor of its national power. The enterprises operating in its defense sector are largely state-owned. Consequently, Russia’s sizeable military corporations and their subsidiary organizations operate not on the principles of a competitive domestic market, which is one of the key foundations of technological progress, but their main goal is to pursue Moscow’s political interests and ensure the stability of the regime. Accordingly, along with military capabilities, having a powerful economic leverage in the form of energy resources, encourages Russia not only to pursue its own economic interests but also intimidate neighboring countries and extort their territories to satisfy its imperialist intentions. The responsibility of the defense industry in Moscow’s current governing model is exactly on what the Russian government itself has based its legitimacy - military modernization, restoring Russia’s strength and greatness. One of its ill-favored manifestations is the military aggression in Ukraine which is claiming the lives of thousands of innocent people. The unprecedented scale of sanctions imposed by the West will clearly affect Moscow’s defense capabilities but the only questions are - when and to what extent? Russian military production, on the one hand, helps the country to pursue an aggressive foreign policy and, on the other hand, arms exports are an important source of country’s budgetary revenues. At the same time, this allows it to exert political influence over the purchasing states. The collapse of the Russian attack on Ukraine may not only sacrifice the hegemonic goals of the latter but also lead to the loss of existing and potential customers of its military weapons. There is no doubt that Russia is experiencing colossal military losses as a result of the war and, at the same time, questions are being raised about the quality of its arms and heavy equipment. Until now, there has been a consensus that Russian armaments were a viable and affordable alternative to Western weapons, although this statement could also be another victim of the war. As a result of the sanctions, Russia faced not only financial but also technical problems. In addition to Western countries, Asia’s leading technology powers have restricted Russia’s access to critical components needed for military production. Existing restrictions apply to advanced technologies such as semiconductors, telecommunications equipment, software and encryption, microelectronics, aviation systems, oil extraction equipment and other manufacturing components. In this context, it is important to discuss the impact that economic sanctions may have on Russia’s military capabilities, its recovery prospects and its aggressive foreign policy in the future.
Topic:: Sanctions, Military Affairs, Economy, and Russia-Ukraine War
Political Geography:: Russia, Ukraine, and Eastern Europe

1240. China’s Global Vision Vacuum: An Opportunity and Challenge for Europe

Author:: Tim Rühlig
Publication Date:: 08-2022
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: China seems to strive to redefine the global order around sovereignty and a strong state. Yet is China engaging in a constitutive process shaped by the global economy; or is it an imperial power pursuing national sovereignty at any cost? In the West, there are very different answers to this question. This ambiguity is not by design but rather indicates that China lacks a coherent vision for the world. If the EU is to exploit this, it needs to understand why.
Topic:: Sovereignty, Economy, and International Order
Political Geography:: China, Europe, and Asia

1241. Resilient Industry Ecochains for the US-Taiwan Partnership

Author:: Stephen Su
Publication Date:: 07-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Stephen Su, Senior Vice President and General Director of the Industrial Technology Research Institute (ITRI) of Taiwan, explains that the "United States and Taiwan can work closely together to develop resilient industry ecochains for key industries such as semiconductors, telecommunications, automotive, biotech, machinery, etc."
Topic:: Partnerships, Economy, Industry, Resilience, COVID-19, and Supply Chains
Political Geography:: China, Taiwan, Asia, North America, and United States of America

1242. Clean Energy Transitions in the Pacific Islands Present Opportunities for Strategic US Economic Partnerships

Author:: Kalim U. Shah
Publication Date:: 06-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Dr. Kalim U. Shah, Professor of Energy and Environmental Policy and Director of the Island Policy Lab, Joseph R. Biden Jr. School of Public Policy and Administration, University of Delaware, explains that with some locales "targeting as much as 100% renewables for their energy mix… [t]he modernization of the Pacific Islands’ energy sector promises to strengthen local economies and enhance the quality of life for residents"
Topic:: Partnerships, Economy, Renewable Energy, and Energy
Political Geography:: Asia-Pacific and Oceania

1243. A New Horizon for Korea-US Economic Relations under the Yoon Suk-yeol Administration

Author:: Jin Kyo Suh
Publication Date:: 07-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Dr. Jin Kyo Suh, Senior Research Fellow at the Korea Institute for International Economic Policy, explains that "Korea-US relations are entering a new era with the inauguration of the Yoon Seok-yeol government.." as "President Yoon Seok-yeol himself is well aware of the importance of universal values, such as freedom, democracy and human rights."
Topic:: Foreign Policy, Bilateral Relations, and Economy
Political Geography:: Asia, South Korea, North America, and United States of America

1244. COVID-19 in the MENA: Two Years On

Author:: Marc Lynch, Vahid Abedini, Yasmina Abouzzohour, Meliha Benli Altunisik, and Mona Ali
Publication Date:: 06-2022
Content Type:: Research Paper
Institution:: Project on Middle East Political Science (POMEPS)
Abstract:: Early in the pandemic, POMEPS convened an online workshop with a diverse group of scholars working across the MENA region to discuss the initial impacts and to think through possible trajectories. That workshop resulted in POMEPS Studies 39, which included twenty-one essays ranging across the MENA region. Several major themes ran across those essays. We collectively expected regimes to securitize the pandemic, using the excuse of lockdowns to crack down on a protest wave that had reached multiple countries in 2019 and to further entrench authoritarian rule. We expected variation in state capacity to be a critical variable in terms of the ability of states to effectively respond to the pandemic. And several essays anticipated soft power international competition, as great powers used vaccine diplomacy to sway public attitudes their way. Two years on, how did those predictions hold up? In April 2022, POMEPS convened a follow-up workshop with some of the same scholars and a number of new contributors to assess how well those early projections panned out, and to assess the actual impacts of COVID on the region after two years. We are delighted to now publish the results of that workshop and ongoing conversations among a diverse group of scholars of the region.
Topic:: Civil Society, Health, Politics, Sectarianism, Authoritarianism, Economy, Solidarity, Soft Power, Violence, Public Health, Students, COVID-19, Securitization, Gender, and Regional Politics
Political Geography:: Iran, Middle East, Israel, Palestine, North Africa, Lebanon, Egypt, Morocco, Tunisia, and United Arab Emirates

1245. Functional Specialisation in EU Value Chains: Methods for Identifying EU Countries’ Roles in International Production Networks

Author:: Aleksandra Kordalska, Magdalena Olczyk, Roman Stöllinger, and Zuzana Zavarská
Publication Date:: 08-2022
Content Type:: Special Report
Institution:: The Vienna Institute for International Economic Studies (WIIW)
Abstract:: Geographically dispersed production networks have allowed countries to specialise in different functions of the value chain. By making use of two methodologies for quantifying the magnitude of functional specialisation – one based on trade flows and one based on FDI flows – detailed profiles of the functional specialisations of EU member states are identified. The analyses are conducted at the country, industry and regional level. In line with the existing literature, they reveal that EU-CEE countries are predominantly specialised in the fabrication stage, that is, they serve as ‘factory economies’, while the Western EU countries are mainly performing knowledge-intensive pre-fabrication activities – a characteristic of ‘headquarter economies’. This dualism within the EU is confirmed by a cluster analysis. While functional specialisation patterns tend to be persistent, especially in the fabrication stage, there are also some signs of functional diversification in EU-CEE countries in more recent years. Still, these functional changes remain limited to a few industries. The dichotomy of factory and headquarter economies is also clearly discernible at the regional level. However, the fact that in most EU countries – mainly in the capital regions – there are some headquarter-type regions implies that a complete functional ‘lock-in’ in fabrication is less likely than suggested by the country-level patterns. Hence, while the results point towards major difficulties of functional diversification beyond the fabrication stage in the EU-CEE countries and regions, there are also several promising elements and trends discernible, in particular at the industry and the regional level.
Topic:: International Trade and Finance, European Union, Economy, Value Chains, Specialization, and Competition
Political Geography:: Europe

1246. FDI Spillover Effects on Innovation Activities of Knowledge-using and Knowledge-creating Firms: Evidence from an Emerging Economy

Author:: Iraj Hashi, Mehtap Hisarciklilar, Slavo Radošević, Nebojša Stojčić, and Nina Vujanović
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: The Vienna Institute for International Economic Studies (WIIW)
Abstract:: The beneficial effects of innovation for firms’ performance and competitiveness are well documented, but it has been suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely on knowledge generation, their emerging counterparts follow mainly a knowledge-use regime through the application of existing knowledge and technology. Climbing up the technological ladder can be helped through spillovers from foreign investors to local firms. We investigate whether FDI spillovers influence different phases of the innovation process (from decision to innovate to productivity) among knowledge-using and knowledge-creating firms in an emerging European economy. The results show that the innovation process in emerging economies is closer to the imitation than the creation of novel products. Local firms benefit from foreign counterparts in the early phase of the innovation process. Stronger FDI effects are found among firms that undertake innovation through knowledge use rather than through knowledge generation.
Topic:: Emerging Markets, International Trade and Finance, Foreign Direct Investment, Economy, Investment, and Knowledge Systems
Political Geography:: Europe

1247. Inequality Can Only Be Fixed By Structural Economic Reform

Author:: Graeme Maxton
Publication Date:: 03-2022
Content Type:: Journal Article
Journal:: Brown Journal of World Affairs
Institution:: Brown Journal of World Affairs
Abstract:: Inequality is like a slippery eel: it is easy to see but very hard to grasp. It has endured for centuries and has worsened recently.1 As a result of climate change, it is likely to become more of a problem in the future, bringing the risk of widespread instability. Although inequality has been a problem for a very long time, economists, social scientists, and political thinkers have failed to devise any lasting solutions. This is because the responses so far have been tepid-hearted, torn between three competing ideas.
Topic:: Reform, Inequality, and Economy
Political Geography:: Global Focus

1248. The New Global Context for Development: The Unravelling of Progress in the LDCs

Author:: J. Brian Atwood
Publication Date:: 03-2022
Content Type:: Journal Article
Journal:: Brown Journal of World Affairs
Institution:: Brown Journal of World Affairs
Abstract:: Development professionals follow a few overriding admonitions. Two important ones are “do no harm” and “understand the local context.” A third traditional injunction has recently gained even more relevance: “Think globally and act locally.” Yet today, there is a growing need to “think globally and act globally.” Bilateral and multilateral donor agencies like USAID and the World Bank have appropriately focused their work at the national and subnational levels. Local ownership is still a valid principle of development. However, transna- tional issues and the global economic outlook are now overwhelming local development progress. Particularly in the Least Developed Countries (LDCs), climate-related disasters, the COVID-19 pandemic, and the consequences of the war in Ukraine are quickly erasing development gains and exposing global inequality even more dramatically.
Topic:: Development, Foreign Aid, Inequality, Economy, and USAID
Political Geography:: Global Focus

1249. Overcoming Barriers to Poverty Alleviation in the Arab Region

Author:: Khalid Abu-Ismail and Vladimir Hlasny
Publication Date:: 03-2022
Content Type:: Journal Article
Journal:: Brown Journal of World Affairs
Institution:: Brown Journal of World Affairs
Abstract:: Many Arab countries have been living beyond their means. Following years of high spending without developing a solid revenue base or adequate emergency reserves, public debt levels have skyrocketed, and governments’ balance sheets have struggled to cope with waves of crises and their required responses. Private debt levels have also grown amid chronic economic stagnation, worsening cur- rent account deficits, and absent effective public assistance during recent crises.
Topic:: Poverty, Inequality, Economy, Protection, and Income
Political Geography:: Middle East, Arab Countries, and North Africa

1250. Does environmental policy uncertainty hinder investments towards a low-carbon economy?

Author:: Joëlle Noailly, Laura Nowzohour, and Matthias Van Den Heuvel
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:: We use machine learning algorithms to construct a novel news-based index of US environmental and climate policy uncertainty (EnvPU) available on a monthly basis over the 1990-2019 period. We find that the EnvPU index spikes during the environmental spending disputes of the 1995-1996 government shutdown, in the early 2010s due the failure of the national cap-and-trade climate bill and during the Trump presidency. We examine how elevated levels of environmental policy uncertainty relate to investments in the low-carbon economy. In firm-level estimations, we find that a rise in the EnvPU index is associated with a reduced probability for cleantech startups to receive venture capital (VC) funding. In financial markets, a rise in our EnvPU index is associated with higher stock volatility for firms with above-average green revenue shares. At the macro level, shocks in our index lead to declines in the number of cleantech VC deals and higher volatility of the main benchmark clean energy exchange-traded fund. Overall, our results are consistent with the notion that policy uncertainty has adverse effects on investments for the low-carbon economy hindering progress to address the urgency of climate action.
Topic:: Environment, Finance, Economy, Investment, Institutions, and Decarbonization
Political Geography:: Global Focus

1251. Bolivia, Plurinational State of: Basic data

Publication Date:: 09-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Bolivia and Plurinational State of

1252. Iran, Islamic Republic of: Basic data

Publication Date:: 09-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Iran and Islamic Republic of

1253. Tanzania, United Republic of: Basic data

Publication Date:: 09-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Tanzania and United Republic of

1254. Venezuela, Bolivarian Republic of: Basic data

Publication Date:: 09-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Venezuela and Bolivarian Republic of

1255. Virgin Islands, British: Basic data

Publication Date:: 09-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Virgin Islands and British

1256. Viet Nam: Basic data

Publication Date:: 09-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Viet Nam

1257. Virgin Islands (British): Basic data

Publication Date:: 09-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Virgin Islands and British

1258. A Saudi-Pakistani Reset: Business as Usual?

Author:: Joshua Albin Cheyaden
Publication Date:: 01-2022
Content Type:: Commentary and Analysis
Institution:: Moshe Dayan Center for Middle Eastern and African Studies
Abstract:: “Saudi Arabia and Pakistan are back on track,” declared ʿAli ʿAwadh ʿAsseri, a former Saudi ambassador to Pakistan, following Pakistani Prime Minister Imran Khan’s state visit to Riyadh in May 2021.[1] Khan’s visit ended a two-year diplomatic rift that had marred a close relationship spanning seven decades.[2] The Pakistani Prime Minister’s visit reopened vital channels of communication that had been shut for almost a year and signaled a “reset” in Saudi-Pakistani relations.[3] The rift between Pakistan and Saudi Arabia began in 2019 and peaked in 2020, while the year 2021 was marked by calls for a reset in their relations.[4] Saudi Arabia’s deepening ties with India remain at the heart of the Saudi-Pakistani split, and they are unlikely to change despite any presumptive diplomatic reset between Pakistan and Saudi Arabia. Saudi Arabia’s increasing engagement with India as a key energy client is just one aspect of a broader transformation the Kingdom is experiencing under Saudi Crown Prince Mohammed bin Salman.[5] At the same time, Pakistan is in a deep economic crisis and is looking for foreign investment in major infrastructure projects to generate employment in the country.[6] In 2021, Pakistan declared its intention to pursue a foreign policy guided by its focus on economic security over its geopolitical interests.[7] Therefore, the long-term prospects for the Saudi-Pakistani reset depends on Pakistan’s ability to accept Saudi Arabia’s more even-handed India-Pakistan policy and the Saudis’ willingness to invest in an economic partnership with Pakistan.
Topic:: Diplomacy, Bilateral Relations, and Economy
Political Geography:: Pakistan, South Asia, Middle East, India, and Saudi Arabia

1259. Zero-Sum versus Win-Win in the Middle East

Author:: Paul Rivlin
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: Moshe Dayan Center for Middle Eastern and African Studies
Abstract:: In our latest issue of Iqtisadi: The Middle East Economy, Paul Rivlin analyses the economic effects of having a zero-sum versus a win-win approach to problems. Increased bilateral trade since the Abraham Accords offer an example of a win-win scenario while the current Lebanese crisis shows how difficult it can be to escape a zero-sum game.
Topic:: Economy, Normalization, Abraham Accords, and Israeli–Palestinian Conflict
Political Geography:: Middle East, Saudi Arabia, Lebanon, Jordan, and United Arab Emirates

1260. Russia invades Ukraine: The economic fall-out and consequences for energy markets

Author:: Paul Rivlin
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Moshe Dayan Center for Middle Eastern and African Studies
Abstract:: In our latest issue of Iqtisadi Paul Rivlin analyses the effects of the Russian invasion of Ukraine on the Middle East and global energy markets.
Topic:: Energy Policy, Economy, COVID-19, and Russia-Ukraine War
Political Geography:: Turkey, Middle East, Saudi Arabia, and Egypt

1261. The Ukraine War and the Middle East: The Rich Get Richer and the Poor Get Poorer

Author:: Paul Rivlin
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Moshe Dayan Center for Middle Eastern and African Studies
Abstract:: In our latest issue of Iqtisadi, Paul Rivlin examines several economic issues occurring simultaneously in the Middle East and North Africa region mainly as a result of the Ukraine-Russia war. Higher oil prices are good for some countries and bad for others.
Topic:: Energy Policy, Oil, Economy, and Russia-Ukraine War
Political Geography:: Russia, Ukraine, and Middle East

1262. The Turkish Economy in Flames

Author:: Hay Ertan Cohen Yanarocak
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Moshe Dayan Center for Middle Eastern and African Studies
Abstract:: This issue of Turkeyscope focuses on the deteriorating Turkish economy and Lira's devaluation. By analyzing the Turkish government's policies at various critical junctions Dr. Hay Eytan Cohen Yanarocak's article highlights the negative impact of the current crisis on Turkish society.
Topic:: Economy, Currency, Society, and Economic Crisis
Political Geography:: Turkey and Middle East

1263. Assessment of Initial Impacts of Western Sanctions against Russia: Effects for Azerbaijani Economy

Author:: Emin Mammadov
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: Repercussions of the western sanctions on the Russian economy increasingly arise that negatively affect the total economic structure. National GDP shrank by 4.3% in the first quarter of the current year. As forecasted by the Russian Central Bank following the exposure to sanctions, a 7 percent reduction in the GDP could be expected in the third quarter. Russian ruble lost its value by 7 percent against the dollar in less than a month which even resulted in an inevitable devaluation in the official exchange rate.
Topic:: Sanctions, Economy, and Russia-Ukraine War
Political Geography:: Russia and Azerbaijan

1264. Assessment of Impact of COVID-19 on SMEs in Azerbaijan: Consequences and Perspectives

Author:: Narmina Gasimova
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: COVID-19 had a considerable negative impact on the economy of Azerbaijan, with SMEs being one of the major victims from the economic perspective. Economic sectors were affected to a different extent by the pandemic and lockdown measures. As a result of lockdown measures, many SMEs closed their operations with their employers not being paid or left without pay. Although the government provided essential support to small and medium-sized businesses, the share of closed businesses was high. Over two years since the beginning of the pandemic, a measures toward the improvement of the business environment was done. The share of operating and newly created SMEs increased along with legislative incentives adopted for their development.
Topic:: Economy, Public Health, COVID-19, and Lockdown Policies
Political Geography:: Azerbaijan and Caspian Sea

1265. Amendments in the 2022 State Budget of Azerbaijan: Impacts and Perspectives

Author:: Nigar Islamli
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: After the global pandemic, rising global demand, as well as the impact of geopolitical and military tensions, have led to a significant rise in the prices of major energy carriers in recent years. In the context of this pandemic, the recession in the country's economy in 2020 was replaced by the process of rapid economic recovery in 2021. The significant increase in oil prices in Azerbaijan had a positive effect on the nominal amount of GDP, although the increase in nominal GDP was mainly due to the oil sector, the real growth was possible almost due to non-oil sectors. The economic situation for the past period of the current year, the medium-term socio-economic forecast indicators, and the performance of budget revenues more than expected made it necessary to revise the state budget for 2022.
Topic:: Oil, Budget, GDP, Economy, and COVID-19
Political Geography:: Azerbaijan

1266. The Azerbaijani economy in the first four months of 2022: İndependent View

Author:: CESD Research Team
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: CESD – the Center for Economic and Social Development – concluded its macro-economic survey results for the first four months of 2022. According to the State Statistic Committee of Azerbaijan, Gross Domestic Product (GDP) increased by 7.2 % in January-April 2022 compared with the same period of previous year: The CESD’s figure for the same period was 6.5 %.
Topic:: Development, GDP, Economy, and Macroeconomics
Political Geography:: Azerbaijan

1267. FDI in Azerbaijan in 2021: Developments and Challenges

Author:: CESD Research Team
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: Attracting foreign direct investment is now more important for Azerbaijan than ever before. Against the background of global uncertainty, the development of the non-oil sector and the diversification of the economy have become even more priority. On the other hand, there has been a decline in oil production in recent years, and even though high oil prices, the country's revenue from energy sales is lower than compared to the period before 2014.
Topic:: Oil, Foreign Direct Investment, Economy, and Diversification
Political Geography:: Azerbaijan

1268. How Will Coal Sanctions Impact on Russian Economy?

Author:: CESD Research Team
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: The Western Alliance has approved a new package of sanctions against Russia. The most notable of the sanctions is the suspension of coal exports from Russia. What does this mean for Russia, and how can the European Union compensate for this ban? Yesterday, the European Commission posted a decision on sanctions on its website, which means that the ban will come into force. This means that from today, European companies will not be able to conclude contracts to buy coal from Russia. The contracts signed in the previous period must be completed by August.
Topic:: Sanctions, European Union, Economy, Exports, Coal, and Russia-Ukraine War
Political Geography:: Russia and Europe

1269. The Economic Consequences of Russia-Ukraine War for Azerbaijan

Author:: Emin Mammadov
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: The past three decades of independence demonstrate that Russia remains a strategically economic and political partner, and multidirectional relations between two parties historically were of crucial importance. In the year 2021, total trade turnover between Russia and Azerbaijan accounted for 2.295 bln USD with a 12% upsurge recovering to pre-pandemic levels. Russia ranked as the 3hd largest trade partner of Azerbaijan in 2021 following Italy and Turkey and the share of trade with Russia alone made up 8.83% of the total in this period.
Topic:: Politics, Economy, Trade, and Russia-Ukraine War
Political Geography:: Russia, Ukraine, and Azerbaijan

1270. The Economic Consequences of Russia-Ukraine War for Azerbaijan

Author:: Emin Mammadov
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: The year 2020 posed an unprecedented challenge to the World economy with the outbreak of the Covid-19 pandemic shrinking the global GDP by 6,7 % and bringing worldwide severe economic repercussions. Economic recovery is in continuation process in which the non-hydrocarbon sector acts as the main driver with a strong contribution of the oil and gas sector as well coupled with the rising demand for, and price of, oil that can further strengthen overall economic performance, however risks in the scenario are vivid.
Topic:: Economy, Risk, COVID-19, and Economic Recovery
Political Geography:: Azerbaijan

1271. Memo on an "Economic Article 5" to Counter Authoritarian Coercion

Author:: Ivo H. Daalder and Anders Fogh Rasmussen
Publication Date:: 06-2022
Content Type:: Policy Brief
Institution:: Chicago Council on Global Affairs
Abstract:: The world's democracies need a way to fight back against coercive economic actions by authoritarian governments, argue Ivo Daalder and Anders Fogh Rasmussen. Increasingly, authoritarian countries are using economic coercion against democracies. In recent years, China’s economic coercion of Lithuania and Australia stands out as a prominent example. Russia uses economic levers to achieve geopolitical aims, notably by weaponizing its natural resources. The aim of such coercion is to bend the will of democratic countries. This is a test for the free world. In response, we propose an Economic Article 5 among democracies to counter authoritarian coercion.
Topic:: Foreign Policy, Authoritarianism, Economy, Business, and Trade
Political Geography:: Russia, China, Asia, North America, and United States of America

1272. Democratic Republic of Congo: Basic data

Publication Date:: 10-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Democratic Republic of Congo

1273. UK: Basic data

Publication Date:: 10-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: UK

1274. Russian Federation: Basic data

Publication Date:: 10-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Russian Federation

1275. Syrian Arab Republic: Basic data

Publication Date:: 10-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Syrian Arab Republic

1276. Taiwan, Province of China: Basic data

Publication Date:: 10-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Taiwan and Province of China

1277. Eswatini: Country outlook

Publication Date:: 10-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Economy, Outlook, Forecast, and Overview
Political Geography:: Swaziland

1278. Eswatini: Basic data

Publication Date:: 10-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Swaziland

1279. Clear and president danger: Democracy and the constitution in Tunisia

Author:: Anthony Dworkin
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: European Council on Foreign Relations (ECFR)
Abstract:: The new constitution that Tunisia will soon put to a referendum is a fundamental departure from the democratic model the country established after 2011. The process of drafting the constitution excluded any significant political participation or public debate. The new constitution would create an unaccountable presidency and leave other branches of the state without any power. Tunisia’s president has failed to address the country’s serious economic problems. An agreement with the International Monetary Fund will only provide a short-term solution to these problems. European policymakers should make clear that they do not see the constitution as genuinely democratic, while continuing to support Tunisia economically.
Topic:: Democracy, Constitution, Economy, Referendum, and IMF
Political Geography:: Europe, North Africa, and Tunisia

1280. Gateway to growth: How the European Green Deal can strengthen Africa’s and Europe’s economies

Author:: Michaël Tanchum
Publication Date:: 01-2022
Content Type:: Policy Brief
Institution:: European Council on Foreign Relations (ECFR)
Abstract:: In much of Africa, growth is being driven by “green energy innovation ecosystems”, which combine telecoms, digital platforms, solar power, and the internet of things. European companies and states risk losing out on business opportunities and political influence if they fail to integrate their services and infrastructure into these emerging ecosystems. China and other economic and geopolitical rivals will become African states’ main partner if Europeans stand aside from this key growth trajectory. The EU can: assist on offering world-class data regulation and supporting the construction of data centres; support the construction of other infrastructure, such as for 5G; and help roll out off-grid solar power generation and electric vehicle manufacturing. Europeans should work in joint ventures with African firms as this model is proven to create value added that China’s investments often fail to produce. The EU should merge its nascent Global Gateway international connectivity programme with the European Green Deal. The objectives of both require similar levels of investment in African infrastructure and they can unlock the investment potential of European public-private partnerships.
Topic:: Foreign Policy, European Union, Economy, Innovation, and Green Deal
Political Geography:: Africa, Europe, and Sub-Saharan Africa

1281. EU – Pacific Talks: Japan – V4 Relations – More Central but Still European

Author:: Jana Záhořová
Publication Date:: 01-2022
Content Type:: Special Report
Institution:: Europeum Institute for European Policy
Abstract:: In the last few years, there have been a number of articles written about the revitalization of relations between Japan and the EU following the signing of the Strategic and Economic Partnership. However, Japan’s rapprochement with the EU does not end in Brussels. On the contrary, Japan has drawn increasing attention to another European platform, the Visegrad Four. The V4+Japan regional cooperative framework started in 2004 by a series of meetings between the countries’ representatives, who discussed several domains of cooperation such as strengthening economic relations, political dialogue, promoting research and development in science and technology or providing development assistance to third countries. However, despite the noticeable expansion of relations, it remains far from becoming an institutionalized framework and is currently facing many challenges including Chinese rising global influence and strategic geo-economic shifts.
Topic:: International Relations, European Union, Partnerships, and Economy
Political Geography:: Japan and Europe

1282. EU – Pacific Talks: H2 – Hydrogen Hype

Author:: David Plhák
Publication Date:: 03-2022
Content Type:: Special Report
Institution:: Europeum Institute for European Policy
Abstract:: Czechia is in many respects similar to Japan in its limited ability to rely fully on renewables. It is therefore in the interest of Czechia to increase hydrogen imports and its use in the energy mix. In order to ensure a steady supply of hydrogen the gas system operators of Czechia, Slovakia, Ukraine, and Germany launched in 2021 joined initiative to create a Central European Hydrogen corridor in an effort to create a supply of hydrogen from Ukraine. Unfortunately, given the Russian aggression on Ukraine, this project must be stopped, until Ukraine will be free of war again.
Topic:: Climate Change, Energy Policy, European Union, Economy, and Hydrogen
Political Geography:: Japan, Ukraine, Germany, Asia-Pacific, Slovakia, European Union, and Czechia

1283. Does Station Name Matter?: Rent Seeking Behavior and Its Impact on Housing Prices

Author:: Hwiwon Seo and Minsik Choi
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:: The purpose of this study is to investigate the effect of rent-seeking behavior for public goods on housing prices. To do so, we analyzed the case of renaming the Sinchoeon station to Jamsilsaenae station for the Seoul Metro Green line by applying the rent seeking theory and estimated the effect of the event on the housing prices of the affected neighborhood. The hedonic pricing model adopted by related studies does not produce unbiased estimates due to the endogeneity resulted from omitted variables including compounding macroeconomic variables. By developing a new dataset, we used the difference in differences regression method that produces more precise and unbiased estimates. Our results show that the housing prices affected by the renaming event increased by around 5% compared to those of non-affected neighborhood. Our analytical results can shed light on understanding related rent seeking behaviors for public goods provision.
Topic:: Economy, Macroeconomics, Housing, and Rent-seeking
Political Geography:: Asia and Korea

1284. Retain, Restructure, or Divest? Policy Options for Egypt’s Military Economy

Author:: Yezid Sayigh
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: The Egyptian military has been on a dramatic expansionary trajectory since seizing power in July 2013. Having previously been an economic backwater, the Egyptian Armed Forces (EAF) and other military agencies have spearheaded the enormous state-led investment strategy that President Abdel Fattah el-Sisi has pursued since he came to office in 2014. The military controls a vast economic portfolio. It manages a significant share of the overall volume of publicly contracted infrastructure and housing. It builds industrial zones and produces capital goods, consumer durables, transport and heavy goods vehicles and parts, and information technology equipment. It undertakes associated retail, owns commercial media companies and hotels, and is rapidly increasing its stake in agriculture, fisheries, and mineral extraction. As of September 2021, the military even has a monopoly on the production of school meals. The Ministry of Defense (MOD) has formally controlled the use of state land by any civilian individual or entity, whether private or public, since 2001. The Ministry of Military Production (MOMP) is now one of two bodies that approves the import of foreign goods or services by government agencies. Military representatives sit on national boards, including for planning and sustainable development; feed into policy direction in several sectors, including the manufacturing industry, telecommunications, digital transformation, market development for electric vehicles, and rural development; and head major presidential initiatives, including the Long Live Egypt (Tahya Misr) development fund and the company responsible for constructing Egypt’s new administrative capital. Plans are underway to increase the capitalization of military companies by inviting private investment through the Egyptian sovereign wealth fund. What I have called an “officers’ republic”—comprising thousands of senior EAF retirees embedded in government ministries and agencies, regulatory and operational economic authorities, local government, and state-owned enterprises—complements the formal military economy. Military agencies and companies provide significant economic benefits. Military-managed public investment in transport infrastructure, for example, facilitates the movement of people and goods and expands access to external markets and investment opportunities. The construction of social housing for low-income groups addresses a serious shortage and assists government efforts to regenerate the informal settlements and slums where approximately one in seven Egyptians live. New industrial zones and extensive agricultural greenhouse projects attract investors, both domestic and foreign, contributing to economic growth and employment. And lower middle–class customers benefit from the expanding range of locally made consumer goods at affordable prices, alongside cheap meat and poultry imports, subsidized health services, and free food baskets for the poor. Why, then, should Egypt reconsider the military’s role in the economy?
Topic:: Armed Forces, Economy, Business, and Military
Political Geography:: Middle East, North Africa, and Egypt

1285. Throwing Down the Gauntlet: What the IMF Can Do About Egypt’s Military Companies

Author:: Yezid Sayigh
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Until recently, both the International Monetary Fund (IMF) and the World Bank were wholly reticent to say anything about the involvement of the Egyptian Armed Forces (EAF) and other military agencies in Egypt’s civilian economy. This is a longstanding problem. By turning a blind eye to the diversion of resources to the military sector and to the increasingly significant impacts on the economy and public finances, these international financial institutions (IFIs) have undermined the effectiveness of their own programs and allowed their resources to be invested in support of suboptimal policies by the Egyptian government. There is a question of propriety when international assistance allows distorted policy incentives to continue or even intensify and disregards the fact that much of the hype about global growth in the Egyptian economy obscures the very real constraints imposed on private sector development. It is high time to throw down the gauntlet: IFIs and their governmental sponsors should tackle the reality of military involvement systematically in their programs and policy recommendations, and they should confront the issue head on in their dealings with Egypt’s authorities. Reticence persists but is starting to dissipate. A report released by the World Bank in December 2020 noted that military agencies account for an appreciable proportion of all state-owned enterprises producing capital goods; consumer durables and apparel; materials; food, beverages, and tobacco; automobiles and components; retailing; media and entertainment; semiconductors and intelligent transportation system equipment; and technology hardware and equipment.1 The IMF went further in a July 2021 review of its loan agreement with Egypt, in which it referred to the presence and role of Egyptian military companies for the first time ever.2 Significantly, it included them explicitly in its assessment of state-owned enterprises in general—many of which, the report noted, are “registering weak financial performance while some are benefiting from an uneven playing field”—and implied that military companies should come under the same broad reform policies that the IMF proposes for the public sector as a whole. Now that the IMF, in particular, has broken its former silence, it should refine its approach so as to tackle the Egyptian military’s economic role in a more targeted and consistent manner—hence making its approach more effective and sustainable. This requires a mix of measures. The first set involves bringing military agencies and companies within the scope of recommendations proposed by the IMF for Egypt’s civilian public sector and state-owned enterprises as a whole. These first measures therefore engage with IMF recommendations and Egyptian government policy initiatives relating to broad questions of ownership, regulation, and financing strategy. The second set of measures tackles the specific aspects of the legal, regulatory, and judicial frameworks that enable the military’s activities in the civilian domain. Unless they are revised, these enabling frameworks will impede wider reforms, but the Egyptian government and IMF have, for the most part, neither reviewed nor addressed them to date.
Topic:: Regulation, Economy, Business, IMF, Civil-Military Relations, and Military
Political Geography:: Middle East, North America, and Egypt

1286. U.S. Strategy and Economic Statecraft: Understanding the Tradeoffs

Author:: Christopher S. Chivvis and Ethan Kapstein
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Carnegie Endowment for International Peace
Abstract:: Few would dispute that U.S. economic policy has enormous consequences for America’s national security and role in the world. But economic policy is too often made without a clear picture of the strategic tradeoffs it entails. The purpose of this paper is to help clarify some of these tradeoffs by considering three alternative models of U.S. economic statecraft. The first model examined here, America First, has several national security and economic disadvantages. It would not only antagonize some of Washington’s key military allies but probably also undermine U.S. international competitiveness. It might even induce countries to turn their economic attention toward China, reducing the United States’ global influence accordingly. A better approach would be a blend of two other models, namely alliance economics and globalization 2.0. Together these approaches could help orient the United States for the geopolitical challenges of the next decade. By emphasizing commercial relations with U.S. military allies, such a blend would recall Article 2 of the North Atlantic Treaty, which calls for international economic cooperation among NATO member states. And by leading a reformed multilateral system, the United States would again put itself at the center of the rules-based global economic order that brought prosperity to millions.
Topic:: Foreign Policy, NATO, Geopolitics, Economy, Economic Cooperation, and Strategy
Political Geography:: North America and United States of America

1287. U.S.-China Technological “Decoupling”: A Strategy and Policy Framework

Author:: Jon Bateman
Publication Date:: 04-2022
Content Type:: Special Report
Institution:: Carnegie Endowment for International Peace
Abstract:: A partial “decoupling”2 of U.S. and Chinese technology ecosystems is well underway. Beijing plays an active role in this process, as do other governments and private actors around the world. But the U.S. government has been a primary driver in recent years with its increased use of technology restrictions: export controls, divestment orders, licensing denials, visa bans, sanctions, tariffs, and the like. There is bipartisan support for at least some bolstering of U.S. tech controls, particularly for so-called strategic technologies, where Chinese advancement or influence could most threaten America’s national security and economic interests. But what exactly are these strategic technologies, and how hard should the U.S. government push to control them? Where is the responsible stopping point—the line beyond which technology restrictions aimed at China do more harm than good to America? These are vexing questions with few, if any, clear answers. Yet the United States cannot afford simply to muddle through technological decoupling, one of the most consequential global trends of the early twenty-first century. The U.S. technology base—foundational to national well-being and power—is thoroughly enmeshed with China in a larger, globe-spanning technological web. Cutting many strands of this web to reweave them into new patterns will be daunting and dangerous. Without a clear strategy, the U.S. government risks doing too little or—more likely—too much to curb technological interdependence with China. In particular, Washington may accidentally set in motion a chaotic, runaway decoupling that it cannot predict or control. Sharper thinking and more informed debates are needed to develop a coherent, durable strategy. Today, disparate U.S. objectives are frequently lumped together into amorphous constructs like “technology competition.” Familiar terms like “supply chain security” often fail to clarify such basic matters as which U.S. interests must be secured and why. Important decisions are siloed within opaque forums (like the Committee on Foreign Investment in the United States [CFIUS]), narrow specialties (like export control law), or individual industries (like semiconductors), concealing the bigger picture. The traditional concerns of “tech policy” and “China policy” receive outsized attention, while second-order implications in other areas (such as climate policy) get short shrift. And as China discourse in the United States becomes more politically charged, arguments for preserving technology ties are increasingly muted or not voiced at all. This report aims to address these gaps and show how American leaders can navigate the vast, perilous, largely unmapped terrain of technological decoupling. First, it gives an overview of U.S. thinking and policy—describing how U.S. views on Chinese technology have evolved in recent years and explaining the many tools that Washington uses to curb U.S.- China technological interdependence. Second, it frames the major strategic choices facing U.S. leaders—summarizing three proposed strategies for technological decoupling and advocating a middle path that preserves and expands America’s options. Third, it translates this strategy into implementable policies and processes—proposing specific objectives for U.S. federal agencies and identifying the technology areas where government controls are (or are not) warranted. The report also highlights many domestic investments and other self-improvement measures that must go hand in hand with restrictive action.
Topic:: National Security, Science and Technology, Intellectual Property/Copyright, Authoritarianism, Economy, Espionage, Military, and Interdependence
Political Geography:: China, Asia, North America, and United States of America

1288. Virgin Islands (British): Basic data

Publication Date:: 03-2022
Content Type:: Country Data and Maps
Institution:: Economist Intelligence Unit
Abstract:: No abstract is available.
Topic:: Summary, Basic Data, Economy, and Background
Political Geography:: Virgin Islands and British

1289. Argentina 20 Years After La Crisis del 2001

Author:: María Félix Herrera and María Félix Herrera
Publication Date:: 04-2022
Content Type:: Commentary and Analysis
Institution:: The North American Congress on Latin America (NACLA)
Abstract:: As the government closed a new agreement with the International Monetary Fund, Argentine societyrevisited painful memories from its biggest financial crisis in recent history.
Topic:: Financial Crisis, Economy, and IMF
Political Geography:: Argentina and South America

1290. Boom-bust Cycles Revisited: The Role of Credit Supply

Author:: Hyo Sang Kim, Sangyup Choi, and Yuri Kim
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study investigates the impacts of credit supply on economic growth and financial crisis. Excess credit supply can make the economy and financial markets more vulnerable. While credit supply can drive economic growth by reallocating resources, it can also make the economy and financial markets more fragile. Asset prices sharply fall when deleveraging occurs in the case of a negative shock to the financial or real sector in a system where credit is excessively supplied. Furthermore, economic activity might be substantially reduced, extending the length and breadth of the recession.
Topic:: Markets, Financial Crisis, Economy, Economic Growth, and Credit
Political Geography:: Global Focus

1291. Changes, Challenges and Implications of Fiscal and Monetary Policy Directions in the Post Pandemic Era

Author:: Sungbae An
Publication Date:: 05-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: COVID-19 has changed the way of our lives since it started emerging as a pandemic early 2020. The global experience leave a trauma, and eventually work as a main driver to reconsider and improve our system. The need for change becomes even bigger as the pandemic continues beyond initial expectations. With that, we are now entering the era of the great transformation. The brief focuses on examining the policy environment changed by the COVID-19 pandemic and analyzing the points to be considered when implementing future fiscal and monetary policies.
Topic:: Monetary Policy, Economy, Fiscal Policy, Pandemic, and COVID-19
Political Geography:: Global Focus

1292. Japan’s National Economic Security Strategy and Implications for Korea

Author:: Gyu-Pan Kim
Publication Date:: 03-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This paper defines the concept of economic security strategy as “acts that deviate from the rules of the market economy by using economic power as a source of power in the perception that the state or national economy is threatened.” The scope of Japan's economic security strategy is divided into five categories: first, economic statecraft; second, securing of safety and trust in “critical infra-structure”; third, reinforcement of supply chains in critical materials; fourth, public-private R&D cooperation of critical technologies; and fifthly, cooperation in strengthening global supply chains with “like-minded partners.”
Topic:: International Cooperation, Economy, Supply Chains, Economic Security, and Public-Private Partnership
Political Geography:: Japan, Asia, and South Korea

1293. Analysis of Chinese Response Patterns to Diplomatic Friction and Its Influencing Factors

Author:: Jai Chul Heo
Publication Date:: 03-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: As China grows into a global power, it is forming a closer relationship with the international community. In the process, the nation is experiencing increasing levels of diplomatic friction, such as confrontation and conflict with other countries, as well as cooperation. Accordingly, this study analyzes China's response to various forms of diplomatic friction, as Korea seeks an effective response to possible friction with China in the future. More specifically, China's response to diplomatic friction was examined through various cases, with the aim of categorizing China’s response measures based on these examples. In addition, this study aims to prepare for possible friction with China in the future by identifying factors that differ in China's response to diplomatic friction.
Topic:: International Relations, Diplomacy, Sovereignty, Territorial Disputes, and Economy
Political Geography:: China, Asia, and South Korea

1294. COVID-19 and Global Value Chain

Author:: Hyoungmin Han
Publication Date:: 03-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: The ongoing spread of COVID-19 has increased biological risks from infectious diseases and limits the movement of human and material resources. Various evidence supports that there is a significant correlation between COVID-19 and the globalized production network. This study aims to analyze the changes in the global value chain structure “before and after” the spread of COVID-19 and derive government-level countermeasures and policy tasks using quantitative data, empirical analysis, case study, and corporate survey.
Topic:: Economy, Global Value Chains, and COVID-19
Political Geography:: South Korea and Global Focus

1295. The Effects of Increased Trade with China and Vietnam on Workers’ Earnings and Job Security in Korea

Author:: Kyong Hyun Koo
Publication Date:: 04-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study empirically demonstrates that changes in trade structure caused by the rise of China and Vietnam over the last 20 years have had a significant impact on the widening of the income and employment stability gap for Korean workers. An important policy goal for Korea, which is heavily reliant on trade, is to ensure that the benefits of trade and openness are distributed evenly to all classes of society while minimizing the harm. In order to achieve the policy goal, the analysis results of this paper show that it is necessary to institutionalize a systematic process for monitoring changes in Korea's trade structure and preparing response policies from a mid- to long-term as well as a short-term perspective. Furthermore, the results indicate that policy efforts are required to identify blind spots where existing trade adjustment assistance policies, employment insurance systems, and vocational training policies do not adequately protect or support workers, and supplement and improve them. More follow-up research is needed to gain a better understanding of the mechanism by which external trade shocks are transmitted to the domestic labor market in order to develop more effective domestic supplementary measures for trade shocks.
Topic:: Labor Issues, Employment, Inequality, Economy, Trade, and Wage Income
Political Geography:: China, Asia, South Korea, Vietnam, and Southeast Asia

1296. Foreign Firms Investment in Inter-Korean Economic Cooperation

Author:: Jang Ho Choi, Jung Kyun Rhee, Yoojeong Choi, and Dae-Eun Lee
Publication Date:: 04-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This paper examines various channels and issues for foreign firms to invest in inter-Korean economic cooperation with the as-sumption that inter-Korean economic cooper-ation can be resumed after sanctions against North Korea have been lifted, and the same treatment is applied to foreign firms. Foreign firms' investment in inter-Korean economic cooperation will provide a new op-portunity for foreign firms to earn stable profits, while also playing a role in further solidifying the establishment of peace on the Korean Peninsula. Now, inter-Korean rela-tions have fallen into difficulties due to sanc-tions against North Korea and the coronavirus pandemic, making it difficult to resume inter-Korean economic cooperation or to expect foreign firms to invest in inter-Korean eco-nomic cooperation. However, if inter-Korean economic cooperation is resumed, foreign firms' investment in inter-Korean economic cooperation will be prioritized.
Topic:: Foreign Direct Investment, Sanctions, Economy, and Economic Cooperation
Political Geography:: Asia, South Korea, and North Korea

1297. Green New Deal for Carbon-neutrality and Open Trade Policy in Korea

Author:: Jukwan Lee, Jongduk Kim, Jinyoung Moon, Jyun-Hyun Eom, Ji Hyeon Kim, and Jungmin Suh
Publication Date:: 05-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: This study focuses on Korea’s Green New Deal policy and global response measures to climate change that affect international trade. A trade policy perspective and approach have been applied while reviewing the carbon-neutral policy pursued by the Green New Deal. We attempted through an empirical analysis to determine whether the expansion of openness helps reduce carbon emissions and simulate the impact of a carbon-neutral policy, such as the EU's carbon border adjustment, on the global economy under global production networks. In addition, the amount of financial support from Korea's Green New Deal needed to offset the negative economic effects of other countries’ independent carbon-neutral policies was derived. This study finally suggests that the effect of the Green New Deal can be expanded through the restoration of openness and global cooperation.
Topic:: Climate Change, International Trade and Finance, Economy, Trade, Carbon Emissions, and Green New Deal
Political Geography:: Asia and South Korea

1298. Four Years of Profound Change: Immigration Policy during the Trump Presidency

Author:: Jessica Bolter, Emma Israel, and Sarah Pierce
Publication Date:: 02-2022
Content Type:: Special Report
Institution:: Migration Policy Institute (MPI)
Abstract:: Over the course of four years, the Trump administration set an unprecedented pace for executive action on immigration, enacting 472 administrative changes that dismantled and reconstructed many elements of the U.S. immigration system. Humanitarian protections were severely diminished. The U.S.-Mexico border became more closed off. Immigration enforcement appeared more random. And legal immigration became out of reach for many. All of this was accomplished nearly exclusively by the executive branch, with sweeping presidential proclamations and executive orders, departmental policy guidance, and hundreds of small, technical adjustments. This report, which concludes a series of MPI reports providing an overview of policies at different points during the Trump administration, chronicles the immigration actions, large and small, that President Donald Trump and his administration took from January 20, 2017, through January 20, 2021. After an overview of the transformation of the U.S. immigration system during this historic period, the report breaks these hundreds of changes down by issue area: the administration’s response to the COVID-19 pandemic; border and interior enforcement; actions involving the Department of Justice and the immigration court system; the admission of refugees, asylum seekers, and other humanitarian migrants; changes to vetting and visa processes, which involve the State Department, U.S. Citizenship and Immigration Services, and the Department of Labor; and actions involving agencies usually less central to immigration policy discussions. As the authors write, “While it may be possible for subsequent administrations to rescind many of these changes, others cannot simply be unwound.” Many are likely to remain on the books for years to come, with a lasting impact on the U.S. immigration system.
Topic:: Law Enforcement, Border Control, Employment, Refugees, Citizenship, Economy, Resettlement, Donald Trump, Asylum, Integration, Deportation, COVID-19, Immigration Policy, Illegal Immigration, and DREAM Act
Political Geography:: United States of America

1299. Promoting the Inclusion of Europe’s Migrants and Minorities in Arts and Culture

Author:: Lucía Salgado and Liam Patuzzi
Publication Date:: 03-2022
Content Type:: Special Report
Institution:: Migration Policy Institute (MPI)
Abstract:: Decades of sustained immigration have transformed many European cities into mosaics of different cultures. Yet this diversity is not always mirrored in the art celebrated in museums, the plays produced in major theaters, and the music heard in concert halls. In addition, well-intended efforts to celebrate ethnic and cultural diversity through art and culture run the risk of overemphasizing differences, exoticizing minority groups rather than contributing to the normalization of diversity within society. But this status quo may be changing. Widespread anti-racism protests have prompted long-overdue conversations about mis- and under-representation of minorities as well as discrimination in the cultural scene. At the same time, pandemic-related restrictions have placed further financial strains on the already fragile cultural sector, challenging organizations to reach new audiences in new ways. This MPI Europe report, which draws on interviews with cultural professionals from 11 European countries, explores approaches to strengthening the participation of migrant and minority communities in arts and culture, with potential benefits for immigrant integration outcomes, social cohesion, and the vibrancy and sustainability of cultural institutions. It examines migrants’ and minorities’ inclusion on three levels: as visitors of cultural venues and consumers of art, as featured artists and performers, and as leaders and staff within cultural institutions. The research was conducted within the framework of the Urban Agenda Partnership on the Inclusion of Migrants and Refugees, co-led by the City of Amsterdam and the European Commission and funded by the European Commission's Directorate-General for Migration and Home Affairs.
Topic:: Arts, Culture, Employment, Citizenship, Economy, Integration, Identity, Inclusion, Civic Engagement, and Immigration Policy
Political Geography:: Europe

1300. China, Europe, and the Pandemic Recession: Beijing’s Investments and Transatlantic Security

Author:: John R. Deni, Chris Alden, Erik Brattberg, Roger Cliff, Mark Duckenfield, R. Evan Ellis, Nicholas Nelson, and Laura Speranza
Publication Date:: 05-2022
Content Type:: Special Report
Institution:: The Strategic Studies Institute of the U.S. Army War College
Abstract:: Given the depth and breadth of the pandemic-induced recession in Europe, private companies in need of capital and governments looking to shed state-owned enterprises may be tempted to sell shares, assets, or outright ownership to investors with liquidity to spare. Of greatest concern is the role that China might play in Europe, building Beijing’s soft power, weakening allied geopolitical solidarity, and potentially reprising the role it played in the 2010s, when its investments in Europe expanded dramatically. More specifically, there is concern over China’s investments in infrastructure and sensitive technologies relevant to American and allied military operations and capabilities. Whether Europe is prepared and able to parry Beijing’s economic statecraft is somewhat unclear, given varied attitudes toward China and the patchwork of investment screening mechanisms across the continent. Regardless, the outcomes will have significant implications for US security and for the Defense Department specifically. In support of US European Command (EUCOM) and the Department of Homeland Security (DHS), the U.S. Army War College’s Strategic Studies Institute (SSI) assembled an interdisciplinary team to examine these issues and offer actionable policy recommendations for military leaders and decisionmakers on both sides of the Atlantic.
Topic:: Security, Military Affairs, Economy, Investment, Transatlantic Relations, COVID-19, State-Owned Enterprises, and Recession
Political Geography:: China, Europe, Asia, and United States of America

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COLUMBIA UNIVERSITY PRESS