Political Geography: / Publication Year: within 25 Years / Topic: Economics

201. Social Credit System in the People’s Republic of China. Theoretical Assumption and Implementation

Author:: Maciej Walkowski
Publication Date:: 09-2022
Content Type:: Journal Article
Journal:: Polish Political Science Yearbook
Institution:: Polish Political Science Association (PPSA)
Abstract:: In the European Union, the United States and other countries of the so-called Western world, the perception of the functionalities of AI, and other instruments of Industrial Revolution 4.0 significantly differs from its perception by the PRC’s authorities, which – for a few years – have been implementing solutions aimed at comprehensive scrutiny and social supervision rather than facilitating life and work. This idea has been reflected in the so-called Social Credit System since at least 2014 and has given rise to plenty of controversies and disputes, unfortunately based on emotions and imprecise interpretation of the characteristics, aims, and implementation of the project rather than knowledge. While the new, digital model of social management in China is extensively discussed in the literature, it is rarely addressed in Polish studies, which results in the scarcity of publications on this subject. This paper attempts to fill this gap by presenting the essence of the system and the progress of its implementation.
Topic:: Economics, Hegemony, Artificial Intelligence, and Credit
Political Geography:: China and Asia

202. Turkish Influence in Sub-Saharan Africa

Author:: Soner Cagaptay, Spencer Cook, and Amal Soukkarieh
Publication Date:: 06-2022
Content Type:: Special Report
Institution:: The Washington Institute for Near East Policy
Abstract:: Trade volume has soared and projects like the development of Sudan’s Suakin Port have drawn notice, but Ankara faces economic headwinds in its bid to keep the momentum going. Atraveler through today’s Africa might be surprised by frequent markers of a distant power: Turkey. Consider that in Somalia, “Istanbul” is now one of the most popular girls’ names and that Turkey’s largest embassy in the world is located in Mogadishu. In the tiny coastal nation of Guinea-Bissau, Ankara has announced a new embassy, its forty-fourth on the continent. Meanwhile, state-owned Turkish Airlines now flies to sixty-one African destinations, compared to just a handful when Recep Tayyip Erdogan’s Justice and Development Party (AKP) government began its Africa outreach two decades ago. Trade volume has soared as well, with projects like Turkey’s proposed $4 billion development of Sudan’s Suakin Port drawing headlines—and consternation from rivals in the Gulf. In this illuminating Policy Note, Soner Cagaptay, Spencer Cook, and Amal Soukkarieh survey Ankara’s robust activity in sub-Saharan Africa, where dynamics are shifting, and not always to Turkey’s advantage. Amid an economic swoon at home, Ankara is seeking improved ties with Middle East states and could be receptive to cooperating with Washington in Africa as part of the competition against other great powers, namely, China.
Topic:: Foreign Policy, Economics, Trade, and Competition
Political Geography:: Africa, Turkey, and Sub-Saharan Africa

203. Biden Sees Oil as Key to His Visit, but Does Riyadh Agree?

Author:: Simon Henderson
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: The Washington Institute for Near East Policy
Abstract:: The administration has signaled its intentions for the trip well in advance, but the realities of Saudi oil capacity and global energy forecasts should temper any U.S. expectations of a quick fix. The centrality of energy security to America’s historical relationship with Saudi Arabia is under strain. When Saddam Hussein invaded Kuwait thirty-two years ago and threatened nearby Saudi oil fields, King Fahd ignored the pleas of cautious senior princes who wanted a delay to discuss the issue and instead requested Washington’s immediate help—which he quickly received in the form of half a million U.S. troops and a multinational force. It was a perfect illustration of the longstanding strategic understanding between the two governments: Saudi Arabia will supply the world with oil, and the United States will defend the House of Saud.
Topic:: Economics, Oil, Joe Biden, and Energy
Political Geography:: Middle East, Saudi Arabia, North America, and United States of America

204. How to Respond to China’s Growing Influence in the Gulf

Author:: Louis Dugit-Gros
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: The Washington Institute for Near East Policy
Abstract:: Beijing’s use of intertwined civil and military tools in the Gulf mirrors its activity closer to home, but the West can readily counter this influence by capitalizing on the region’s desire for diversified partnerships. While the Biden administration works to repair ties with Persian Gulf partners in the wake of Russia’s Ukraine invasion, China is getting more attention for its expanding influence in the Indo-Pacific region, including recent reports of naval deals and military activity in the Solomon Islands and Cambodia. Some commentators have even criticized the White House for letting its resolve against Moscow supposedly delay the long-awaited “pivot to Asia” sought by three successive U.S. administrations. Yet talk of the “pivot” often oversimplifies the geopolitical situation, in particular by ignoring China’s progress in the Gulf. The pivot theory relies on the assumption that Beijing is mainly ramping up its influence in its own neighborhood. In reality, the Chinese strategy is global, and the methods it applies in the Indo-Pacific are being used in similar fashion elsewhere, including the Gulf. Such activities merit closer attention from the West even if they are not the number-one priority at the moment.
Topic:: Security, Economics, Strategic Competition, Military, and Energy
Political Geography:: China, Asia, and Gulf Nations

205. Snapback Sanctions on Iran: More Bark Than Bite?

Author:: Henry Rome and Louis Dugit-Gros
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: The Washington Institute for Near East Policy
Abstract:: Threatening to reimpose old UN sanctions would likely have little practical effect on Tehran’s ability to trade oil and export drones, while the plethora of other potential complications suggest that it should be treated as a tool of last resort. In recent weeks, the United States, Britain, France, and Germany have argued that Iran’s sale of drones to Russia for use against Ukraine violates UN Security Council Resolution 2231, the backbone of the Joint Comprehensive Plan of Action (JCPOA). These allegations, combined with ongoing diplomatic deadlock over reviving that 2015 nuclear agreement, have led some to suggest pursuing “snapback,” a provision that would reimpose terminated UN resolutions on Iran and essentially scrub the JCPOA from the books. How would snapback work, and what political, economic, and security consequences would it have?
Topic:: Security, Economics, Nuclear Weapons, United Nations, Sanctions, Nonproliferation, and JCPOA
Political Geography:: Iran and Middle East

206. Changing Population Patterns Will Reshape the Middle East

Author:: Patrick Clawson
Publication Date:: 11-2022
Content Type:: Policy Brief
Institution:: The Washington Institute for Near East Policy
Abstract:: Several of the region’s demographic heavyweights will be surpassed, and major shifts at the global level may affect how great powers vie for influence there as well. The demographers in the UN’s Department of Economic and Social Affairs are widely regarded for their first-rate work, and their recently released World Population Prospects report is no exception. Alongside detailed demographic information on every UN member state, the twenty-seventh edition includes projections on how each of their populations will change through the year 2100. These forecasts suggest that demographic realities—and, presumably, power relationships—will shift considerably in many regions, including the Middle East. Forecasting is often an inexact art—think of the challenges facing pollsters, for instance. Yet demography is one discipline where practitioners and consumers can have substantial confidence in forecasts made even decades out. For instance, barring some catastrophe, observers have quite a good idea of what the population of fifty-year-olds will be forty-five years from now; after all, they have already been born.
Topic:: Foreign Policy, Demographics, Economics, and Population
Political Geography:: Middle East and North Africa

207. Hamas at 35

Author:: Devorah Margolin
Publication Date:: 12-2022
Content Type:: Special Report
Institution:: The Washington Institute for Near East Policy
Abstract:: A look back at the group’s track record and unchanging core ideology shows why its gestures toward democracy and inclusivity should not be mistaken for true moderation. On December 14, Hamas celebrated the thirty-fifth anniversary of its founding. In addition to unveiling a new logo, the group held a rally in Gaza City, where it showed off the gun of slain Israeli soldier Hadar Goldin, released numerous statements reiterating its goals, and hinted at future conflicts with Israel. Such hostile displays are no surprise given the course of the group’s ideological and political development over the past four decades.
Topic:: Economics, Terrorism, Reform, Democracy, Hamas, and Energy
Political Geography:: Middle East, Israel, and Palestine

208. Inequality and the Decline of Small Business

Author:: Sebastian Doerr, Thomas Drechsel, and Donggyu Lee
Publication Date:: 09-2022
Content Type:: Policy Brief
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: The share of income that goes to top earners has reached levels not seen in over half a century, and addressing inequality has become a central issue for policymakers. Designing policies to alleviate income disparities requires a thorough understanding of how inequality affects the economy. Somewhat surprisingly, while several studies investigate the consequences of rising income inequality for households (Auclert and Rognlie 2017, 2020; Mian et al. 2020), much less is known about how inequality affects firms. In a recent study (Doerr et al. 2022), we examine the important link between income inequality and firms’ job creation. Our analysis of US data reveals that a larger top income share hurts small firms, while benefiting larger firms. The reason is that households’ savings portfolios change with their income level. Higher income inequality leads to more household savings flowing into stocks and bonds – which are mostly used for financing by larger firms – rather than into bank deposits. In turn, as small businesses depend on banks for financing, their funding becomes more costly and they create fewer jobs. Complementing our analysis with a theoretical model, we show that by altering the allocation of household savings, rising income inequality not only hurts small firms, but suppresses overall employment. Income inequality has thereby contributed to two important macroeconomic trends: the decline in small business and the fall in the labor share, i.e., the share of total income that accrues to workers (Decker et al. 2016; Autor et al. 2020).
Topic:: Economics, Inequality, Business, and Business Management
Political Geography:: North America and United States of America

209. Algeria’s social support policy: Economic costs and the need for reform

Author:: Hami Hassan
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: Arab Reform Initiative (ARI)
Abstract:: With the ratification of the 2022 budget in Algeria, the issue of budget allocations for social support and social benefits has resurfaced once again. This paper attempts to understand the repercussions of state intervention in economic affairs, and the historical and ideological underpinnings of the welfare state in Algeria as a rentier state based on the nationalization of all economic relations in crisis political contexts, the effects of which extended to the state’s relationship with society and the relations of production within it.
Topic:: Economics, Reform, Finance, and Social Order
Political Geography:: Africa and Algeria

210. Origins and prospects of climate change activism in the Arab region: Rethinking the development and market economy model

Author:: Habib Maalouf
Publication Date:: 04-2022
Content Type:: Policy Brief
Institution:: Arab Reform Initiative (ARI)
Abstract:: The 1992 Rio de Janeiro Earth Summit triggered interest in climate change globally as well as in the Arab region. This paper traces the development of environmental activism in the MENA region since then and puts forward proposals for what Arab civil society, media and governments can do ahead of the forthcoming COP summits in Egypt and the UAE.
Topic:: Climate Change, Development, Economics, Environment, and Activism
Political Geography:: Arab Countries

211. Pak-China Geostrategic Interdependence: Impact on Rising Economies of Asia

Author:: Ameena Nasim
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: South Asian Studies
Institution:: Department of Political Science, University of the Punjab
Abstract:: China and Pakistan have enjoyed a close and mutually beneficial relationship during the last seven decades. Both the nations‘ leadership pronounced the bilateral relationship between China and Pakistan as the ―All-Weather Strategic Cooperative Partnership‖ and ―Iron Brother.‖ The strategic partnership between China and Pakistan has a significant impact on the Asian strategic environment in particular and global politics. The Indian strategic enclave regards China-Pakistan‘s multifaceted relationship as a substantial obstacle for India‘s rise as a Great Power within the regional context. The study‘s primary objective is to critically examine impact on Asia‘s main actors such as India and Russia. So that one can profess about the dynamics of this relationship and implications of China and Pakistan‘s geo-strategic relations on the rising economies. A qualitative study with qualitative interviews and thematic analysis was applied to conduct this study. The analysis reveals that South Asian RSC has no change in the patterns of amity and enmity. The region continues to be conflictive, where their enduring rivalry and continued distrust shape enmity patterns between Pakistan and India. On the contrary, Pakistan and China‘s amity patterns can be seen growing in the longstanding strategic relationship and deep-rooted cooperation. The investigation discovers that on a bilateral level, several new factors in the post-9/11 era have molded Pakistan-China Strategic relations, which have intricate linkages with the regional and global security complexion.
Topic:: Economics, Bilateral Relations, Strategic Interests, Interdependence, and Regional Politics
Political Geography:: Pakistan, Russia, China, South Asia, and Asia

212. China-Pakistan Economic Corridor: News Framing in Political, Strategic, and Economic Perspectives in Print Media of Pakistan

Author:: Hammad Naseer, Muhammad Raza Majid, and Malik Adnan
Publication Date:: 01-2022
Content Type:: Journal Article
Journal:: South Asian Studies
Institution:: Department of Political Science, University of the Punjab
Abstract:: The treatment, image, and issues related to CPEC become significant when this venture is considered a game-changer for the Pakistani economy. This study analyzes the CPEC coverage in Pakistan's highly circulated English newspaper, Daily Dawn, and The News. The quantitative content analysis technique is employed for this study from April 2015 to December 2019. This study aims to explore how news contents of selected newspapers portray the image of CPEC and the treatment of selected newspapers toward this project. The theoretical foundation of this study work under the Grunig models of Public Relations. The findings of this study reveal that both newspapers portray a positive image of CPEC. The primary focus of the news content of selected newspapers is information regarding the economic and political aspects of this project, while inadequate significance is given to strategic, social, and legal aspects. Moreover, from Grunig’s models' perspective, major public relations practices worked under the public information and press agent model.
Topic:: Economics, Politics, Media, and CPEC
Political Geography:: Pakistan, China, and South Asia

213. Analysis of Cameroon – Nigeria Trade and Prospects for the African Continental Free Trade Area

Author:: Henri Kouam and Vera Kum
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: The Nkafu Policy Institute
Abstract:: Free trade between Cameroon and Nigeria is about reducing barriers to cross-border trade between the two countries by allowing traders on both sides of the spectrum to explore a larger market and private sector producers to expand their business. This policy brief examines the nature of Cameroon and Nigeria’s trade whilst illustrating the benefits of free trade on living standards, employment, and income inequality. It recommends that Cameroon and Nigeria cooperate on trade facilitation measures to increase the benefits of the African Continental Free Trade Area.
Topic:: Economics, International Trade and Finance, Regional Cooperation, Bilateral Relations, and Free Trade
Political Geography:: Africa, Nigeria, and Cameroon

214. Trade Liberalization and Economic Development: Lessons for Africa

Author:: Henri Kouam and Fabien Sundjo
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: The Nkafu Policy Institute
Abstract:: What happens when countries lower their tariff & import duties and open up their economy to other countries? This policy brief looks at the impact of trade liberalization on economic development, drawing from broad-based international literature. It shows how free trade can positively impact economic development, boost incomes, and improve standards of living. The African Continental Free Trade Area will stimulate intra-regional trade and help countries like Cameroon address acute development challenges. However, the expected positive results will depend on its successful implementation.
Topic:: Development, Economics, Regional Cooperation, Trade Liberalization, Trade, Economic Development, and Liberalism
Political Geography:: Africa

215. Pakistan's Political Crisis

Author:: Marvin G. Weinbaum, Madiha Afzal, and Syed Mohammed Ali
Publication Date:: 05-2022
Content Type:: Video
Institution:: Middle East Institute (MEI)
Abstract:: Marvin Weinbaum, Madiha Afzal, and Syed Mohammad Ali discuss the recent political upheaval in Pakistan, which comes against the backdrop of mounting economic problems.
Topic:: Economics, Domestic Politics, and Political Crisis
Political Geography:: Pakistan and South Asia

216. MEI-NAPI Roundtable on the Environment in Tunisia: A Youth Perspective On Challenges & Opportunities

Author:: Intissar Fakir, Fatine Ezbakhe, Marouen Taleb, Abir Ben Romdhane, and Mohamed Walid Jomni
Publication Date:: 06-2022
Content Type:: Video
Institution:: Middle East Institute (MEI)
Abstract:: The Middle East Institute (MEI) and the North African Policy Initiative (NAPI) are pleased to announce the sixth in a series of roundtable discussions inviting engaged youth to share their perspectives on the key issues facing their country’s future. This policy-oriented discussion will feature young Tunisian researchers offering their views on the current environmental challenges in their country and the opportunities ahead. Tunisia is already facing the reality of climate change. From the degradation of natural resources and water scarcity to desertification and coastal erosion, the country has to cope with complex and interconnected environmental challenges. While Tunisia has put the environment on top of its political and economic agenda (with Article 45 of its Constitution acknowledging the “right to a healthy and balanced environment and the right to participate in the protection of the climate”), there is still room to do more.
Topic:: Climate Change, Economics, Environment, Politics, Natural Resources, Water, and Desertification
Political Geography:: Middle East, North Africa, and Tunisia

217. Tunisia's Economy

Author:: Intissar Fakir, Marwa Haddar, and Fadil Aliriza
Publication Date:: 07-2022
Content Type:: Video
Institution:: Middle East Institute (MEI)
Abstract:: Intissar Fakir is joined by Marwa Haddar and Fadil Aliriza to discuss the economic issues Tunisia is facing, international financial institutions' role in the crisis, and the government's actions, or lack thereof, to help the country.
Topic:: Economics, Government, Finance, International Institutions, and Economic Crisis
Political Geography:: North Africa and Tunisia

218. Expert Voices: Wayne Ackerman

Author:: Wayne Ackerman
Publication Date:: 02-2022
Content Type:: Video
Institution:: Middle East Institute (MEI)
Abstract:: Interview series featuring experts and advisors from MEI's Economics and Energy Program.
Topic:: Economics and Energy Policy
Political Geography:: Middle East

219. Sustainable Financing in MENA

Author:: Lama Kiyasseh, Lina Osman, and Karen E. Young
Publication Date:: 02-2022
Content Type:: Video
Institution:: Middle East Institute (MEI)
Abstract:: Lama Kiyasseh and Lina Osman join Karen Young, director of MEI's Economics and Energy program, to discuss how sustainable financing is changing the region by channeling financial resources toward addressing environmental and social challenges.
Topic:: Economics, Environment, Finance, Sustainability, and Society
Political Geography:: Middle East and North Africa

220. Unfair Trade or Unfair Protection? The Evolution and Abuse of Section 301

Author:: Scott Lincicome, Inu Manak, and Alfredo Carrillo Obregon
Publication Date:: 06-2022
Content Type:: Policy Brief
Institution:: The Cato Institute
Abstract:: Section 301 of the Trade Act of 1974 gives the U.S. trade representative (USTR) broad authority to investigate “unfair” foreign trade policies allegedly harming American companies and to impose tariffs or other trade restrictions to achieve the removal of those policies. The statute was a common tool of U.S. trade policy from the 1980s to the 1990s, authorizing the USTR to conduct almost 100 different investigations during that period. Since the World Trade Organization (WTO) was established in 1995, however, the USTR has used Section 301 infrequently and almost exclusively to initiate or implement WTO dispute settlement actions—actions that, per WTO rules, were supposed to supplant the kinds of unilateral trade actions once applied under the law. The Trump administration departed from this long‐standing U.S. practice and took advantage of Section 301’s flaws to circumvent the WTO and enact unilateral tariffs against multiple U.S. trading partners, imposing significant economic and geopolitical costs along the way. This paper examines the Trump administration’s actions in historical context, evaluates how the law was stretched beyond its intended purpose in direct contravention of the United States’ WTO obligations, and offers practical reforms to prevent future abuse.
Topic:: Economics, Legislation, Trade, Protectionism, and WTO
Political Geography:: North America and United States of America

221. Assessing the economic, societal and cultural impact of YouTube in India

Author:: Oxford Economics
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Oxford Economics
Abstract:: Recent research by Oxford Economics suggests YouTube contributed 6,800 Cr to the Indian economy in 2020 and supported 6,83,900 jobs. But its impact goes further, bringing a rich array of economic, cultural and societal benefits to India. YouTube generates substantial revenue for creators, artists, and media companies, who in turn support a broad ecosystem of employees and businesses in India. Creators deliver a wealth of educational tools and materials, which are valued by students, parents, and teachers alike.
Topic:: Economics, Mass Media, Social Media, and YouTube
Political Geography:: India and Asia

222. The State of the Creator Economy – Assessing the economic, societal, and cultural impact of YouTube in the US in 2021

Author:: Oxford Economics
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: Oxford Economics
Abstract:: This study presents an updated assessment of YouTube’s contribution to US GDP and employment, and its broader impact on society and culture.
Topic:: Economics, Mass Media, Employment, Social Media, and YouTube
Political Geography:: North America and United States of America

223. Cumulative climate shocks and migratory flows: evidence from Sub-Saharan Africa

Author:: Salvatore Di Falco, Anna B. Kis, and Martina Viarengo
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:: We re-examine the effects of negative weather anomalies during the growing season on the decision to migrate in rural households in five sub-Saharan African countries. To this end we combine a multi-country household panel dataset with high-resolution gridded precipitation data. We find that while the effect of recent adverse weather shocks is on average modest, the cumulative effect of a persistent exposure to droughts over several years leads to a significant increase in the probability to migrate. The results show that more frequent adverse shocks can have more significant and long-lasting consequences in challenging economic environments.
Topic:: Climate Change, Economics, Migration, and Drought
Political Geography:: Sub-Saharan Africa

224. The Instability of Preferences: Uncertain Futures and the Incommensurable and Intersubjective Nature of Value(s

Author:: Richard Bronk and Jens Beckert
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Max Planck Institute for the Study of Societies
Abstract:: The default assumption of standard economics is to treat preferences as exogenously ‘given’, consistent with one another, ‘revealed’ by past choices, and context independent. There has been increased interest recently (within behavioural economics) in the impact of inconsis- tent or irrational preferences and (more broadly) in dynamic and endogenous preferences. This paper builds on these challenges to standard assumptions by analysing the pivotal role of three aspects of preference formation in explaining capitalist dynamics and market insta- bility. These are the constant creation of new preferences and the indeterminacy of choice sets in the context of widespread product innovation; the moral indeterminacy implied by conflicting and incommensurable social norms attaching to market goods where there is no single scale of value and hence no unique set of rational trade-offs; and, lastly, the con- tingent social and market construction of the product differentiation, quality attribution, and value assessments central to preference formation. The paper concludes by considering implications for economics as a discipline.
Topic:: Economics, Capitalism, Norms, and Social Order
Political Geography:: Global Focus

225. Land Grabbing and International Political Economy: Towards a Critical Neo-Gramscian Theoretical Model of Land Governance in Latin America

Author:: Sol Mora
Publication Date:: 04-2022
Content Type:: Journal Article
Journal:: Contexto Internacional
Institution:: Institute of International Relations, Pontifical Catholic University of Rio de Janeiro
Abstract:: The vigorous debate on global land grabbing within Critical Agrarian Studies contrasts with the incipient analyses from International Political Economy (IPE). This divergence has overshadowed the multi-scalar nature of the power relations that shape land governance, and consequently its effects on land grabbing. For this reason, this paper provides a critical theoretical model of land governance based on Robert Cox’s historical structures approach to understand the causes of land grabbing in Latin American countries. It is argued that this model renders visible the articulation of local and global processes driving land grabbing because it foregrounds the power relations at multiple scales that shape decisions on land access, use and control, as well as the conflicts inherent to them. This demonstrates that, on the one hand, land governance structures in Latin America play a hegemonic role since they express and develop the global agricultural model that promotes land grabbing. On the other hand, social resistance highlights that land governance simultaneously possesses a potential for change. As a result, knowledge about land grabbing is enhanced through a dialogue between the two fields of study.
Topic:: Economics, Political Economy, Governance, International Relations Theory, and Models
Political Geography:: South America, Latin America, and North America

226. Economic Consequences of 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 intervention in Ukraine, coupled with Western political support for Ukraine, was followed by a tough economic response through an unprecedented package of sanctions against Russia set forth by the West. Their decision to do so seeks to make Russia pay an economic price for its military aggression, aiming to reduce its economic and martial capabilities, which are currently costing the lives of thousands of innocent people. The sanctions have already had quite severe economic consequences for Russia, but it is interesting to see whether they will achieve the West’s political goals and push President Putin to suspend the military aggression. Generally, a medium- to long-term period is required to see the effects of sanctions, and, currently, despite heavy economic losses, Russia is managing to coexist with the restrictions. Today, Russia is experiencing its biggest economic downturn since the end of the Cold War. The World Bank estimates that gross domestic product in Russia will reduce by 11% in 2022 (World Bank, 2022), while the International Monetary Fund forecasts this figure to be 8.5% (IMF, 2022). According to some estimates, the economic scale of the reduction may even reach 15% (IIF, 2022). Clearly, this largely depends on the potential consequences of the sanctions already imposed and the possibility of enacting new sanctions, including in terms of energy embargoes. As a result of the global economic crisis of 2008, the Russian economy shrank by about 8%, and now this figure is almost twice as high. Consequently, we can get some idea of its scale. The losses caused by sanctions will become more visible and tangible over time, resulting in much more severe social and economic effects in the coming years. According to the International Finance Institute, Russia will have lost the wealth it generated over the last 15 years by the end of 2023 (IIF, 2022). One of the main reasons for this will be reduced domestic demand, and if the trade-related sanction package is expanded, exports will fall further than expected, which in turn will lead to a sharp decline in budget revenues. Clearly, the Russian military aggression has also caused global economic consequences, such as rising prices for basic consumer goods, disruption of supply chains, and delays in international trade. However, since invading Ukraine, Russia’s financial losses have been high. It is interesting to take a look at what actual consequences the Russian Federation has faced in terms of sanctions, and how the country will be able to continue coexistence with the restrictions and expand its own aggressive foreign policy.
Topic:: Economics, Sanctions, and Russia-Ukraine War
Political Geography:: Russia, Ukraine, and Eastern Europe

227. Economic Equidistance is Not an Option: Germany and the US-Chinese Geo-Economic Conflict

Author:: Markus Jaeger
Publication Date:: 01-2022
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: Intensifying US-Chinese rivalry will increase pressure on Germany to support a more hawkish US geo-economic policy. The new German government should give Washington support in as far as US policies seek to create an economic level playing field vis-à-vis China. Given its dependence on international trade and investment, Germany should seek to resist a broader politicization of international economic relations.
Topic:: Economics, International Trade and Finance, Geopolitics, and Rivalry
Political Geography:: China, Germany, and United States of America

228. Japan's "Economic Security" Measures

Author:: Didi Kirsten Tatlow and Afra Herr
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: Japan and Germany face an acute dilemma. China, a key trading partner for both nations, uses political warfare and economic statecraft to advance its interests. Like Germany, Japan has a strong SME economy and auto industry, and has dependencies on China. Yet Japan faces more risk due to its geographical proximity to China and territorial disputes. As global tensions grow, Japan is responding robustly by building economic security. Germany, together with the EU and other like-minded partners, should do the same.
Topic:: Security, Economics, Politics, and Trade
Political Geography:: Japan, China, Asia, and Germany

229. Promoting the Euro – Countering Secondary Sanctions: Germany Should Push to Complete Monetary Union

Author:: Markus Jaeger
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: US-Chinese rivalry will increasingly play out in the geo-economic realm. The use of secondary sanctions – especially secondary dollar sanctions – negatively affects German economic interests. The new German government should therefore intensify efforts to promote the euro as an international currency coequal to the dollar in addition to lending its qualified support to EU anti-coercion policies.
Topic:: Economics, Sanctions, European Union, Rivalry, and Geoeconomics
Political Geography:: China, Asia, and United States of America

230. India and the Indo-Pacific Economic Framework

Author:: Surupa Gupta
Publication Date:: 07-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Surupa Gupta, Professor of Political Science and International Affairs at University of Mary Washington, explains that "[e]ven though India has emerged as an active and engaged member of the Quad, its decision to join IPEF—a US-led framework for economic cooperation in the Indo Pacific—was not a foregone conclusion. "
Topic:: Economics, Partnerships, and Quad Alliance
Political Geography:: South Asia, India, and Indo-Pacific

231. China’s Dilemmas in Bailing Out Debt-Ridden Sri Lanka

Author:: Ganeshan Wignaraja
Publication Date:: 01-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Ganeshan Wignaraja, a Non-Resident Senior Fellow at the Institute of South Asian Studies (ISAS) of the National University of Singapore and a Senior Research Associate at the Overseas Development Institute (ODI) in London, explains that "Sri Lanka is now stuck in a ‘debt trap’. However, the debt trap is not wholly Chinese."
Topic:: Debt, Development, Diplomacy, and Economics
Political Geography:: China, Asia, and Sri Lanka

232. US Southeast Asia Policy: Towards A Balance of Commitment Approach

Author:: Prashanth Parameswaran
Publication Date:: 03-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Dr. Prashanth Parameswaran, a Fellow at the Woodrow Wilson International Center for Scholars and a Senior Columnist at The Diplomat Magazine, explains that "A balance of commitment approach in U.S. Southeast Asia policy can help policymakers be attentive to both the interrelationships between power, threats and resources shaping decisions in the U.S. domestic political system and the careful calibration of components in commitment level and distribution in the Southeast Asia required to sustain an expanded, balanced approach that serves U.S. interests and meets regional needs."
Topic:: Security, Foreign Policy, Economics, Domestic Politics, and Strategic Interests
Political Geography:: North America, Southeast Asia, and United States of America

233. 75 Years of Philippines-US Relations: From Strategic Partnership to Multifaceted Relationship

Author:: Maria Elissa J. Lao and Severo Madrona Jr.
Publication Date:: 06-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Maria Elissa J. Lao, Assistant Professor, Department of Political Science, Ateneo de Manila University, and Severo Madrona Jr., Lecturer, Department of History, Ateneo de Manila University, explain how US-Philippine Relations evolved "from a strategic military and economic partnership into a multifaceted relationship encompassing cultural, social, and governance cooperation."
Topic:: Economics, Bilateral Relations, Partnerships, Strategic Interests, and Military
Political Geography:: Philippines, North America, Asia-Pacific, and United States of America

234. Philippine-United States Trade Relations: Looking Back and a Way Forward

Author:: Marissa Maricosa A. Paderon
Publication Date:: 06-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Dr. Marissa Maricosa A. Paderon, Associate Professor of the Department of Economics at the Ateneo de Manila University and current Commissioner at the Philippine Tariff Commission, explains how the two nations have forged relationships across many sectors of trade, especially electronics and agriculture, and discusses the importance of the Trade and Investment Framework Agreement (TIFA) and US Generalized System of Preferences (GSP) in Philippine-US economic relations.
Topic:: International Relations, Agriculture, Economics, and Trade
Political Geography:: Philippines, North America, Asia-Pacific, and United States of America

235. No Time to Lose: Renew the Compacts of Free Association

Author:: Emil Friberg
Publication Date:: 06-2022
Content Type:: Special Report
Institution:: East-West Center
Abstract:: Emil Friberg, PhD., Adjunct Professor at Georgetown University, former Assistant Director/Senior Economist at US GAO, explains that "[a]nnual US Compact assistance is a strategic bilateral connection at a time of mounting security concerns."
Topic:: Security, Economics, Bilateral Relations, and Foreign Assistance
Political Geography:: North America, Asia-Pacific, United States of America, and Micronesia

236. Labor and Politics in the Middle East and North Africa

Author:: Dina Bishara, Ian Hartshorn, Marc Lynch, Samar Abdelmageed, and Ashley Anderson
Publication Date:: 01-2022
Content Type:: Research Paper
Institution:: Project on Middle East Political Science (POMEPS)
Abstract:: Economic grievances were at the heart of the Arab uprisings which erupted a decade ago. The centrality of those grievances and the workers articulating them has led to a growing research community focused on organized labor in the Middle East and North Africa. In April 2021, Dina Bishara and Ian Hartshorn convened a virtual workshop through Cornell University’s School of Industrial and Labor Relations bringing together a wide range of scholars writing in the area. POMEPS then invited those participants, as well as others who had not presented papers, to participate in a follow-on workshop to continue the discussion in September 2021. The papers in this collection are one of the fruits of this increasingly robust scholarly network.
Topic:: Economics, Politics, Labor Issues, Employment, Regulation, Arab Spring, Youth, Protests, Unions, Higher Education, COVID-19, Gulf Cooperation Council, and Activism
Political Geography:: Turkey, Middle East, Algeria, Saudi Arabia, North Africa, Egypt, Jordan, Tunisia, and Gulf Nations

237. China’s increased presence in Latin America: Win-win relations or a new dependency? A state of the art

Author:: Daniel Agramont Lechín
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
Abstract:: The rise of the Popular Republic of China (PRC) is one of the most significant events in contemporary international relations. However, at the global level, the “reemergence of China as a major global power has led to a considerable debate over the likely consequences for the rest of the world” (Jenkins, 2010: 810). China’s growing power raises questions as to the meaning of its superpower status as a nation, and the impact of its newfound influence in not only the Asia-Pacific region, but also the Global South (Dessein, 2015). In the specific case of Latin America and the Caribbean (LAC), the debate centers on the potential disadvantages that China’s vast supply of financial resources might bring for the region. Accordingly, the current paper is intended to examine the debate that has arisen in recent literature around the impact of China’s increased economic presence on Latin America –with win-win relations on the one hand and new dependency on the other.
Topic:: International Relations, Economics, Investment, and Dependency
Political Geography:: China, Asia, and Latin America

238. The Israeli Economy in an Uncertain Global Environment

Author:: Tomer Fadlon and Esteban F. Klor
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Institute for National Security Studies (INSS)
Abstract:: Economic uncertainty has increased in recent months following the macroeconomic figures published by the major economies. The return of inflation, the supply chain crisis, and the war in Ukraine are leaving their mark on the global economy and arouse concern among both politicians and central banks. In contrast to most of the world's countries, Israel seems like an island of economic stability: inflation is relatively low, and while Western countries are posting negative growth, second-quarter growth in Israel exceeded the expectations. Yet despite the positive data, the slowdown among Israel's main trading partners is expected to affect the local economy, which will have to contend with a challenging economic environment in the coming months.
Topic:: Economics, Globalization, International Trade and Finance, Inflation, and Supply Chains
Political Geography:: Middle East and Israel

239. Improving the Palestinian Authority’s Fiscal Outlook

Author:: Haggy Erkes and Esteban F. Klor
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Institute for National Security Studies (INSS)
Abstract:: Recent reports by the IMF and the World Bank emphasized the dismal fiscal situation of the Palestinian Authority, and recommended boosting foreign aid and implementing structural spending reforms. This article proposes an additional policy: a tax on work permits for Palestinians working in the Israeli econony. This measure stands to reduce the Palestinian deficit by one third, and offset some of the adverse effects of employment in Israel.
Topic:: Economics, Leadership, Fiscal Policy, and Palestinian Authority
Political Geography:: Middle East, Israel, and Palestine

240. A Gateway to Africa? Economic Opportunities in Israel-Morocco Relations

Author:: Morr Link
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: Institute for National Security Studies (INSS)
Abstract:: Since renewing diplomatic relations between Jerusalem and Rabat, the scope of trade indeed has grown between the two countries, but the full potential still has not been realized. How can the economic cooperation be improved, which also entails many policy opportunities for both Israel and Morocco?
Topic:: Economics, International Cooperation, International Trade and Finance, Bilateral Relations, and Economic Cooperation
Political Geography:: Africa, Middle East, Israel, and Morocco

241. Demonstrations in Iran in Protest of the Sharp Rise in Prices of Basic Goods

Author:: Raz Zimmt
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: Institute for National Security Studies (INSS)
Abstract:: At least three people were killed and dozens were injured and arrested in protests that erupted in southwestern Iran due to a controversial move by the government in Tehran. Until now, the scope of the protest is very limited and does not threaten the regime’s stability, but it is additional evidence of the severe economic crisis, which can be added to the long list of challenges facing President Raisi
Topic:: Economics, Protests, Demonstrations, and Standard of Living
Political Geography:: Iran and Middle East

242. Iraq-Gulf Relations: An Anchor for Stability and Restraining Iranian Involvement in the Region?

Author:: Yoel Guzansky and Yaron Schneider
Publication Date:: 05-2022
Content Type:: Working Paper
Institution:: Institute for National Security Studies (INSS)
Abstract:: While weathering a political crisis, Iraq is now at a crossroads regarding the future of the state. In tandem, neighboring Sunni states, led by Saudi Arabia, are moving closer to Baghdad. What are the reasons for this development, and how is it likely to affect the Middle East, Iran’s expansion in the area, and Israel?
Topic:: Economics, International Cooperation, Economic Stability, and Regional Power
Political Geography:: Iraq, Iran, Middle East, and Gulf Nations

243. MF Dollars for Dictators? The Allocation of SDR to Moderate and Isolated Countries

Author:: Haggy Etkes
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Institute for National Security Studies (INSS)
Abstract:: “The International Monetary Fund assisted radical regimes, including the Russian government and the Taliban in Afghanistan”: This claim was made given the allocation of Special Drawing Rights (SDR) by the IMF to states in the region. Is there truth to this charge?
Topic:: Economics, International Cooperation, Finance, and IMF
Political Geography:: Afghanistan, Russia, Europe, and Middle East

244. World Economy Autumn 2022: Global growth falters

Author:: Klaus-Jurgen Gern, Ulrich Stolzenburg, Nils Sonnenberg, Stefan Kooths, and Jan Reents
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: In spring 2022, world economic growth came to a standstill amid high inflation, persistent supply bottlenecks and elevated uncertainty. In many countries real wages are declining significantly dampening private consumption even though extra savings accumulated during the pandemic are still available to mitigate the adverse impact to some extent. At the same time financial conditions have also deteriorated as central banks tightened their policies. In China, the strict zero-covid policy and problems in the real estate sector are slowing economic activity. Against this backdrop, the outlook for the global economy has deteriorated further. We have, again, lowered our forecast and are now expecting global output to increase by only 2.9 percent this year and 2.2 percent next year (calculated on a purchasing power parity basis). The forecast assumes that commodity prices will gradually decline in line with forward prices, which will over time reduce the upward pressure on prices and provides the foundations for an economic upturn in 2024. However, the pass-through of higher commodity prices into consumer prices is probably not yet complete and wage increases are likely to intensify in many countries. Consequently, underlying inflation is likely to remain higher than in the years before the Covid crisis and remain above central bank targets over the forecast horizon
Topic:: Economics, Globalization, Economic Growth, and COVID-19
Political Geography:: Global Focus

245. German Economy Summer 2022: Slowly progressing recovery

Author:: Jens Boysen-Hogrefe, Nils Jannsen, Saskia Meuchelbock, Dominik Groll, Stefan Kooths, and Nils Sonnenberg
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: The German economy navigates troubled waters. The catch-up process in the contact-intensive service industries is continuing at a fast pace and companies in the manufacturing sector are sitting on well-filled order books. However, high inflation is reducing the purchasing power of disposable incomes and thus dampening the recovery in consumption. In addition, supply bottlenecks have recently worsened again due to the war in Ukraine. As a result, the recovery will regain strength only in the second half of the year, when prices will no longer rise as rapidly and supply bottlenecks will begin to ease. Overall, we expect GDP to increase by 2.1 percent this year, as in our spring forecast. In 2023, GDP will grow by 3.3 percent (spring forecast: 3.5 percent). At 7.4 percent, inflation in the current year will be higher than ever before in reunified Germany. Next year, inflation will probably remain high with 4.2 percent. The recovery in employment continues. Effective earnings will rise strongly, also because labor shortages have reached an all-time high. In the current year, however, the increase of about 5 percent will lag behind the rate of inflation. Public budget deficits will decline as revenues increase strongly and pandemic-related expenditures are reduced. In 2023, public debt in relation to GDP is expected to be slightly above 60 percent.
Topic:: Economics, GDP, Inflation, and Russia-Ukraine War
Political Geography:: Europe and Germany

246. World economy in summer 2022: Inflation is curbing global growth

Author:: Klaus-Jurgen Gern, Ulrich Stolzenburg, Nils Sonnenberg, Stefan Kooths, and Jan Reents
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: In a situation with already elevated inflation, the war in Ukraine and the zero-covid policy in China have led to additional upward pressures on prices and reinforced the global supply chain problems. Real wages are declining in many countries, dampening personal consumption expenditures even though households are often able to draw from a substantial amount of extra savings accumulated during the pandemic. Given the widespread inflationary pressures, central banks have shifted towards a more restrictive monetary policy stance. Against this backdrop, the outlook for global growth has weakened. We forecast global growth of 3.0 percent in 2022 and 3.2 percent in 2023 (measured in terms of purchasing-power parities), representing a reduction by 0.5 and 0.4 percentage points for 2022 and 2023, respectively. The forecast is based on the assumption that commodity prices have peaked, which would reduce inflationary pressures considerably going forward. However, there is the risk that inflation proves to be more persistent than central banks expect. In such a case, central banks would need to step on the brakes more than assumed, with the risk of a recession in advanced economies and a pronounced deterioration in financial conditions in emerging markets
Topic:: Security, Economics, Inflation, COVID-19, and Russia-Ukraine War
Political Geography:: Global Focus

247. German Economy Spring 2022: Recovery at risk – Soaring Inflation

Author:: Jens Boysen-Hogrefe, Nils Jannsen, Saskia Meuchelbock, Jan Reents, Dominik Groll, Stefan Kooths, Martin Ademmer, and Nils Sonnenberg
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: The German economy is once again facing strong headwinds. The war in Ukraine is leading to rising commodity prices, new supply bottlenecks and dwindling sales opportunities. These factors will affect the German economy in different ways. Higher commodity prices reduce the purchasing power of disposable incomes and thus dampen private consumption. Moreover, new supply bottlenecks will dampen industrial production in the coming months. Finally, sales opportunities will deteriorate at least temporarily due to the sanctions and the increased uncertainty caused by the war. All this is hitting the economy in a phase in which the dampening effects of the pandemic are fading out and a strong recovery has begun to emerge. The dampening factors are cushioned because private households have accumulated large amounts of extra savings since the beginning of the pandemic, so that high inflation does not fully impact private consumption. In addition, industrial firms have an unusually high stock of orders, which will cushion the temporarily lower sales opportunities. As a result, the recovery is likely to continue this year, albeit at a noticeably slower pace than expected in winter. Overall, we now expect GDP to rise by 2.1 percent in this year (winter forecast: 4 percent) and by 3.5 percent in 2023 (winter forecast: 3.3 percent). With 5.8 percent inflation is likely to be higher this year than ever before in reunified Germany. Even if commodity prices stop rising and supply bottlenecks gradually ease, inflation is still likely to be unusually high at 3.4 percent next year, also because recent producer price increases are only gradually being passed through to consumers. The labor market is expected to remain robust. Public spending will rise in response to the war and its economic consequences, so that budget deficits will remain at elevated levels for a longer period.
Topic:: Economics, GDP, Inflation, and Purchasing Power
Political Geography:: Europe and Germany

248. Social Capital And Its Changes In Armenia: Challenges and Expectations

Author:: Albert Hayrapetyan and Liana Isayan
Publication Date:: 02-2022
Content Type:: Journal Article
Journal:: Journal of Liberty and International Affairs
Institution:: Institute for Research and European Studies (IRES)
Abstract:: Social capital was the Achilles’ heel of the economic competitiveness of Armenia. In the meantime, the country made significant progress in solidifying it since the Velvet Revolution. In this article, we tried to present and analyze those elements of social capital which demonstrated significant progress in post-revolutionary Armenia, as well as the changes thereof. For that purpose, we have formulated the following research questions: What factors led to this growth, and what factors still lag? What hidden challenges can be observed through factual indicators which probably resulted from the slight decrease in the updated scores? What changes can be expected from the turbulent world and in the post-war society? The applied methodology is quantitative. In particular, to answer the research questions we used index analysis, graphic analysis, and comparison, correlation analysis techniques, pared t-test of the mathematical-statistical significance of changes, and Principal Component Analysis. The results of the analysis showed that a significant increase in the level of social capital was recorded in post-revolutionary Armenia, which was mainly due to the progress in institutional trust. Nevertheless, some revealed anomalies and encountered challenges undermined the archived progress in the growth of trust. Therefore, we put forward several recommendations.
Topic:: Economics, Pandemic, Social Capital, and COVID-19
Political Geography:: Europe and Armenia

249. The Impact of Demographic Factors in Consumer Purchasing Preferences in Developing Countries: Empirical Evidence From Kosovo

Author:: Faruk Ahmeti
Publication Date:: 02-2022
Content Type:: Journal Article
Journal:: Journal of Liberty and International Affairs
Institution:: Institute for Research and European Studies (IRES)
Abstract:: This paper analyses the role and the level of impact that different demographic factors have on buying preferences during the selection process between local and imported goods in developing and emerging economies, with a specific focus on the Kosovo region. A total of 630 questionnaires were distributed, from which 536 valid responses and an empirical study is applied to test the hypothesis. A probability sample (randomly selected), which was stratified by seven regions throughout the country was applied, by covering all levels of the society, cultural background, different locations (urban and rural), different levels of education, and income. Some of the respondents have shown a preference for imported goods and were willing to pay a price premium for it based on the quality offered by top producers (around 41.79%). Whereas, 58.21% of respondents prefer local products. It is proven that there is a correlation between demographic factors and buying preferences process when deciding between local and imported products. Whereas, price is considered as the main factor in the buying process in developing countries, due to the low income, whereas the level of imported products depends on the country’s ability to fulfill the local needs with local products.
Topic:: Demographics, Economics, Local, and Consumerism
Political Geography:: Europe and Serbia

250. Afghanistan Under Taliban: A new Regime Poses a Threat to International Stability

Author:: Valeri Modebadze
Publication Date:: 02-2022
Content Type:: Journal Article
Journal:: Journal of Liberty and International Affairs
Institution:: Institute for Research and European Studies (IRES)
Abstract:: The purpose of this study was to see whether the Taliban regime poses a threat to the international community. The research primarily examined the threats that the formation of a theocratic regime in Afghanistan poses to neighboring countries and the international community. With regards to research methods, a document analysis method was used to obtain valid information and to analyze and describe the complex situation in Afghanistan. A wide array of documents and scholarly articles were analyzed to obtain reliable and objective information. This research revealed that the Taliban has not changed at all and still rules Afghanistan with medieval methods and strategies. Since the Taliban takeover of Afghanistan, the economic situation has deteriorated considerably and people face severe hardship. Therefore, hundreds of thousands of Afghans want to leave their homeland and migrate to the West. The Taliban violates constantly human rights and discriminates against women, ethnic and religious minorities. The Taliban has transformed Afghanistan into a narco-state. Neighboring countries fear that Afghanistan might become a hotbed of terrorism and extremism again.
Topic:: Security, Economics, International Cooperation, Governance, Taliban, and Political stability
Political Geography:: Afghanistan and Middle East

251. Evaluating Macroeconomic Factors And Their Influence on Economic Growth: Empirical Evidence From Western Balkan Economies

Author:: Ereza A. Arifi
Publication Date:: 06-2022
Content Type:: Journal Article
Journal:: Journal of Liberty and International Affairs
Institution:: Institute for Research and European Studies (IRES)
Abstract:: This research aimed to identify and evaluate the impact of some macroeconomic components on economic growth performance. The data applied in the analysis were secondary data, including six countries from 2005 to 2020. The econometric approach applied was the fixed effect regression approach to economic growth as a dependent variable. The study also applied several diagnostic tests and the Hausman test to select between fixed and random effects. The data provided after the analysis show that inflation and foreign direct investment have a significant positive impact, while public debt has a significant negative impact. Moreover, unemployment and population growth have shown statistically insignificant results. The study from the aspect of the original contribution provides arguments and applies two variables that are very little addressed in the context of economic growth. The study results provide critical information for policymakers, economists, and researchers and provide arguments for a sound and proactive debate on these variables.
Topic:: Economics, Economic Growth, Banks, and Macroeconomics
Political Geography:: Europe and Balkans

252. Assessing the Effects of Trade Liberalization With Third Countries: The Case of the Eurasian Economic Union

Author:: Simon Sngryan
Publication Date:: 06-2022
Content Type:: Journal Article
Journal:: Journal of Liberty and International Affairs
Institution:: Institute for Research and European Studies (IRES)
Abstract:: The processes of objectively conditioned integration in the economic, political, legal, and institutional spheres of the Eurasian Economic Union (EEU) Member States took place step by step, starting from preferential trade agreements, passing to the customs union, the common market and other stages of integration. This process is accompanied by the gradual deepening of trade liberalization with potential partners. The selection of potential partners should be carried out through a comprehensive and detailed analysis of the structure and volumes of foreign trade of the EEU Member States (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia) with third parties, their markets structure, existing customs regulation, trade barriers, and possible export potential. The research evaluated the EEU's possible enlargement effects on the Member States' economic indicators. The research aimed to assess the possible consequences of EEU expansion and signing free trade agreements, considering Pakistan, Korea, and Malaysia as potential trade partners. Modeling the effect of an FTA assumes horizontal zeroing of tariffs between partners. Then, using the GTAP model, a new state of general equilibrium was calculated corresponding to the changed parameters of customs and tariff regulation. In this case, most variables, such as change in GDP, production output, and export-import volumes, were estimated, manifesting the economic effect of trade liberalization.
Topic:: Economics, International Trade and Finance, Regional Cooperation, and Trade Liberalization
Political Geography:: Europe, Eurasia, and Asia

253. The Factors Influence Gross Domestic Product

Author:: Muhamet J. Spahiu and Betim J. Spahiu
Publication Date:: 06-2022
Content Type:: Journal Article
Journal:: Journal of Liberty and International Affairs
Institution:: Institute for Research and European Studies (IRES)
Abstract:: This paper examined the factors that influenced the Gross Domestic Product growth (GDP) in the post-Covid-19 period in Kosovo. This paper explored the impact of consumption, remittances, exports, imports, and inflation on Kosovo's GDP growth using fixed effects regression analysis with data from various secondary sources to analyze their impact from Kosovo's perspective. The results demonstrated that consumption, remittances, and exports had a statistically significant influence on GDP growth during the post-pandemic economic lockdown stage, whereby imports and inflation had a little inverse relation. Further, the Hausman test statistics on the adequacy of the fixed-effect model selection represent a superior performance compared to the random effect model. The paper is the first that extensively explores the impact of these factors that drove GDP growth in the post-pandemic period in Kosovo's economy. The novelty of this paper is that it recognizes the response of governments to the pandemic and accurately identifies the macroeconomic factors that influenced GDP growth.
Topic:: Economics, GDP, Pandemic, and COVID-19
Political Geography:: Europe and Kosovo

254. Place-based policies and agglomeration economies: Firm-level evidence from Special Economic Zones in India

Author:: Holger Görg and Alina Mulyukova
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct and spillover effects of the program. We combine geocoded firm-level data and geocoded SEZs using a concentric ring approach, thus creating a novel dataset of firms with their assigned SEZ status. To overcome the selection bias we employ inverse probability weighting with time-varying covariates in a difference-in-differences framework. Our analysis yields that conditional on controlling for initial selection, SEZs induced no further productivity gains for within SEZ firms, on average. This effect is predominantly driven by relatively less productive firms, whereas more productive firms experienced significant productivity gains. However, SEZs created negative externalities for firms in the vicinity which attenuate with distance. Neighbouring domestic firms, large firms, manufacturing firms and non-importer firms are the main losers of the program. Evidence points at the diversion of inputs from non-SEZ to SEZ-firms as a potential mechanism.
Topic:: Economics, Business, Special Economic Zones, and Geography
Political Geography:: India and Asia

255. Who Lends to Africa and How? Introducing the Africa Debt Database

Author:: David Mihalyi and Christoph Trebesch
Publication Date:: 03-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: Africa’s sovereign debt markets are not well understood, partly due to a lack of data. This paper introduces the Africa Debt Database (ADD), the most granular and comprehensive dataset on external borrowing by African governments thus far. Our project moves beyond existing aggregate datasets and instead releases information on individual loans and bonds, in particular on the financial terms of each instrument. Taken together, we cover nearly 7000 loans and bonds between 2000 and 2020, with a total volume of 644 billion USD. Using this data, we study Africa’s record lending boom of the 2010s in detail. The debt boom was mainly driven by large sovereign bond issuances in London and New York, as well as growing lending by Chinese state-owned banks. The micro data also reveal a large variation in lending terms across countries, time, and creditors. Sovereign external bonds have interest rates of 6 percent, on average, Chinese banks charge 2-4 percent, and multilateral organizations just 1 percent. Strikingly, many governments in Africa simultaneously borrow large amounts from both private and official creditors, at vastly different rates. The large differences in debt servicing costs are indicative of a cross-creditor subsidy, as cheap concessional loans can be used to pay the high interest to private or Chinese creditors.
Topic:: Economics, Foreign Aid, Credit, and Influence
Political Geography:: Africa, China, and Asia

256. Exchanging Money for Love? A Regional Analysis of EU Cohesion Policy on Euroscepticism

Author:: Michael Bayerlein and Matthias Diermeier
Publication Date:: 04-2022
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: In the past, the European Union seems to have been able to tame Euroscepticism through regional 'convergence' funding. After the Eastern enlargement of the Union, however, this relationship needs to be put to the test. Not only have the new member states become the main recipients of EU funding, Eastern Europe has also changed from once being the most integration-friendly region to displaying the most integration-hostile attitudes in the EU. Motivated by this empirical puzzle, we revisit the relationship between structural 'convergence' funding and Euroscepticism and ask where - if at all - is the EU's convergence spending still able to tame Euroscepticism. Most surprisingly, correlation analyses reveal that between 2006 and 2018 larger regional subsidies go along with increasing opposition to EU integration. We can rebut this counterintuitive finding by a Diff-in-Diff approach that reveals an increasing Euroscepticism in Eastern European regions between 2006 and 2014. Nevertheless, also these more advanced models fail to establish a positive relationship between regional funding eligibility and pro-integrationist attitudes. Finally, fuzzy RDD models exploit the funding assignment rule and corroborate that the EU is no longer able to pacify integration-critical regions by their simply increasing 'convergence' funding. Nevertheless, the EU has won support in Eastern Europe where EU investments are perceived (positively). In designing a strategy to win back support for EU integration, Brussels does not need more fiscal capacity but rather has to design 'convergence' funding that is visible as well as clearly attributable to its donor.
Topic:: Economics, Regional Cooperation, Foreign Aid, European Union, and Eurocentrism
Political Geography:: Europe

257. New Global Progress Survey Highlights the Major Challenges of Global Inflation

Author:: John Halpin
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Center for American Progress - CAP
Abstract:: The rising cost of living is hitting citizens everywhere.
Topic:: Economics, Globalization, International Cooperation, and Inflation
Political Geography:: Global Focus

258. The Sky is the Limit: The Azerbaijan-Israel-Türkiye Trio and the Greater Middle East

Author:: Rusif Huseynov
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Moshe Dayan Center for Middle Eastern and African Studies
Abstract:: In our latest issue of Turkeyscope, the director of Azerbaijan's Topchubashov Center, Rusif Huseynov writes on the existing and potential security and economic cooperation between Israel and Azerbaijan, as well as the strategic link both countries share with Turkey.
Topic:: Security, Economics, Bilateral Relations, and Cooperation
Political Geography:: Turkey, Middle East, Israel, and Azerbaijan

259. Peace treaty between Azerbaijan and Armenia: Who will economically win?

Author:: Emin Mammadov and Nigar Islamli
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: Following the recent September escalations along the Azerbaijan and Armenian border, in a way towards achieving a sustainable peace deal and long-lasting security in the Caucasus, the quadrilateral meeting in pragmatic terms is deemed to play a significant role in this vein putting an end to hostilities. The President of Azerbaijan and the Prime Minister of Armenia met in Prague on 6 October 2022 in the margins of the first European Political Community at the invitation of the President of the French Republic and the President of the European Council. Both sides reiterated their commitment to the Charter of the United Nations and the Alma Ata 1991 Declaration through which both recognize each other’s territorial integrity and sovereignty which will act as a legal basis for the work of the border delimitation commissions.
Topic:: Security, Economics, Sovereignty, Treaties and Agreements, Territorial Disputes, and Borders
Political Geography:: Caucasus, Armenia, and Azerbaijan

260. Eighth sanctions package: Which side will be the economic loser?

Author:: Nigar Islamli
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: Since February 24, 2022, Russia's invasion policy towards Ukraine has been tried to be prevented by several series of sanctions by the European Union. These sanctions include trade, travel, asset freezes, oil, transport, and SWIFT bans. Since the start of the war, 7 sanctions packages have been presented and many of them are being implemented. In response to Russia's invasion policy against Ukraine, the European Commission presented the eighth package of sanctions covering visa issues and asset freezes.
Topic:: Economics, Sanctions, European Union, and Russia-Ukraine War
Political Geography:: Russia, Europe, and Ukraine

261. The economic impact of COVID-19 on Turkish-Azeri bilateral relations

Author:: Duncan Labadie
Publication Date:: 02-2022
Content Type:: Working Paper
Institution:: Center for Economic and Social Development (CESD)
Abstract:: While the economic instability of the international system resurrected debates about the future of the World Order, diving against the current and studying in a destabilizing pandemic context a bilateralism touted for its durability and solidity seemed academically attractive. Thus, the purpose of this research paper is to verify whether COVID-19 is causing fatal economic disruptions among the iron alliances, or if on the contrary one is witnessing an "unnatural" strengthening. By reconciling empirical data (reports of the Central Bank, the OSCE, press articles) and academic papers, this study analyzes the surprising Turkish-Azeri economic consolidation before questioning its still-perceptible limitsin the short and long term. This work concludes that through the neorealist prism, Ankara and Baku managed to transform Covidian negativity into an element of strategic economic cooperation aimed at repairing financial loopholes on a national scale.
Topic:: Economics, War, Bilateral Relations, Natural Resources, COVID-19, Liberalization, and Asymmetric Relations
Political Geography:: Turkey and Azerbaijan

262. Mexico Peace Index 2022: Identifying and measuring the factors that drive peace

Author:: Institute for Economics and Peace (IEP)
Publication Date:: 01-2022
Content Type:: Special Report
Institution:: Institute for Economics & Peace (IEP)
Abstract:: This is the ninth edition of the Mexico Peace Index (MPI), produced by the Institute for Economics & Peace (IEP). It provides a comprehensive measure of peacefulness in Mexico, including trends, analysis and estimates of the economic impact of violence in the country. The MPI is based on the Global Peace Index, the world’s leading measure of global peacefulness, produced by IEP every year since 2007. The MPI consists of 12 sub-indicators aggregated into five broader indicators.
Topic:: Corruption, Crime, Economics, Trafficking, Peace, Drugs, Data, and Organized Crime
Political Geography:: North America and Mexico

263. Positive Peace Report 2022

Author:: Institute for Economics and Peace (IEP)
Publication Date:: 01-2022
Content Type:: Special Report
Institution:: Institute for Economics & Peace (IEP)
Abstract:: This report showcases the findings of the Institute for Economics and Peace’s (IEP) research, including its latest results on Positive Peace and systems thinking. Positive Peace is defined as the attitudes, institutions and structures that create and sustain peaceful societies. It is conceptually and empirically related to many constructive aspects of social development and can be used in multiple contexts. It can also be used to compile an index – the Positive Peace Index (PPI). This allows for the comparison and tracking of the factors that create flourishing societies. These and other concepts related to Positive Peace are covered in the first section of this report, as well as general PPI results, including rankings and changes over time. Positive Peace is closely associated with system concepts to the extent that it is difficult to separate the two. IEP has further deepened its unique understanding of how societal systems function and has developed a framework called Halo which provides a comprehensive approach to analysing societal systems.
Topic:: Economics, Business, Institutions, Peace, Resilience, COVID-19, and Positive Peace
Political Geography:: Global Focus

264. Global Peace Index 2022

Author:: Institute for Economics and Peace (IEP)
Publication Date:: 01-2022
Content Type:: Special Report
Institution:: Institute for Economics & Peace (IEP)
Abstract:: This is the 16th edition of the Global Peace Index (GPI), which ranks 163 independent states and territories according to their level of peacefulness. Produced by the Institute for Economics and Peace (IEP), the GPI is the world’s leading measure of global peacefulness. This report presents the most comprehensive data-driven analysis to-date on trends in peace, its economic value, and how to develop peaceful societies. The GPI covers 163 countries comprising 99.7 per cent of the world’s population, using 23 qualitative and quantitative indicators from highly respected sources, and measures the state of peace across three domains: the level of societal Safety and Security; the extent of Ongoing Domestic and International Conflict; and the degree of Militarisation. In addition to discussing the findings from the 2022 GPI, the report includes an analysis of the military conflict in Ukraine. It covers likely increases in military spending, new and emerging uses of technology in the war, its impact on food prices and global shipping routes. The report also contains a deeper analysis on violent demonstrations around the world.
Topic:: Foreign Policy, Political Violence, Economics, Terrorism, Military Spending, Conflict, Peace, and Instability
Political Geography:: Global Focus

265. Crisis in Kazakhstan: Protests, Regime Stability, and Regional Security

Publication Date:: 01-2022
Content Type:: Video
Institution:: The Harriman Institute
Abstract:: How did the protests erupt and how will recent events influence government policy? Who is in charge? Will Kazakhstan’s foreign policy orientation change? And what is the significance of the CSTO’s intervention? Our expert panelists will address these and other questions, as well as ponder what the future holds for the country widely considered as Central Asia’s economic engine.
Topic:: Foreign Policy, Economics, Governance, and Protests
Political Geography:: Central Asia, Kazakhstan, and Asia

266. Sanctioning Russia: Implications and Expectation

Publication Date:: 03-2022
Content Type:: Video
Institution:: The Harriman Institute
Abstract:: Following Russia’s invasion of Ukraine, the West rapidly adopted unprecedented sanctions on Russia. These included a series of export controls and the sanctioning of the Russian Central Bank, major institutions in the financial sector as well as individual “oligarchs” who live and conduct business outside of the country. In addition to these government actions by the United States, the European Union and the UK, hundreds of Western private companies have withdrawn from the Russian market or suspended operations, further exacerbating Russian economic uncertainty. How likely are the sanctions to pressure Russia to halt its campaign in Ukraine, what is their purpose and logic, and what additional measures could be imposed?
Topic:: Economics, Hegemony, Sanctions, Conflict, and Russia-Ukraine War
Political Geography:: Russia, Europe, and Ukraine

267. How Central Asia Became Part of the Developing World

Publication Date:: 04-2022
Content Type:: Video
Institution:: The Harriman Institute
Abstract:: During the Soviet period, official narratives presented Central Asia as a former colony that had been integrated on equal terms into the USSR while overcoming economic backwardness. This ambiguity was useful for Moscow’s Cold War politics and also shaped how Central Asian actors maneuvered within the Soviet system. In the late Soviet period, this ambiguity was largely abandoned. Some Central Asians began to insist on the region’s colonial status, while economists and sociologists in Moscow argued that Soviet development efforts had failed and that the region was culturally too different to fit into socialist economic schemes. In this talk, Kalinovsky will trace how different groups within the USSR can the late Soviet period came to reimagine Central Asia as a part of the Third World, discarding the ambiguity of earlier decades. These views also had profound implications for the region’s post-independence transformation: Western development professionals who came to Central Asia after 1991 found the region much more developed than other places they had worked. That also changed over the course of the 1990s, in part because of the continuing influence of Russian scholars, and in part as a result of the development community's evolving understanding of regional challenges (informed, to a large extent, by local scholars), a change that was solidified with the post 9-11 turn to the Global War on Terror. Artemy Kalinovsky is Professor of Russian, Soviet, and post-Soviet Studies at Temple University. He earned his BA from the George Washington University and his MA and PhD from the London School of Economics, after which he spent a decade teaching at the University of Amsterdam. His first book was A Long Goodbye: The Soviet Withdrawal from Afghanistan (Harvard University Press, 2011). His second book, Laboratory of Socialist Development: Cold War Politics and Decolonization in Soviet Tajikistan (Cornell University Press, 2018), won the Davis and Hewett prizes from the Association of Slavic, East European, and Eurasian Studies. He is currently working on a project that studies the legacies of socialist development in contemporary Central Asia to examine entanglements between socialist and capitalist development approaches in the late 20th century.
Topic:: Development, Economics, Capitalism, and Decolonization
Political Geography:: Central Asia and Asia

268. Early warning: How Iraq can adapt to climate change

Author:: Nussaibah Younis
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: European Council on Foreign Relations (ECFR)
Abstract:: Iraq is at high risk of suffering the worst effects of the climate crisis, including soaring temperatures and acute water scarcity. As land suitable for farming shrinks and rural jobs disappear, ordinary Iraqis are moving to cities in search of work. This increases pressure on services, pushes up food prices, and exacerbates social tensions, leading to protests and even violence. Iraq’s weak internal governance prevents it from improving water management, managing inter-provincial and inter-tribal conflict, and attracting investment and expertise to create new green-economy jobs and adapt to the changing climate. Public awareness of climate risks is growing, but too few political leaders prioritise the issue. Iraq has long struggled to reach agreement on water issues with upstream states Turkey and Iran, which are building dams that affect supply to Iraq; they also believe that Iraq manages water badly. Similar issues complicate relations between Baghdad and the Kurdistan region. Iraqis and Europeans should work together to improve Iraq’s poor governance and consider measures such as establishing an ‘early warning’ system about potential conflict arising from climate effects.
Topic:: Climate Change, Economics, Politics, and Governance
Political Geography:: Iraq, Europe, and Middle East

269. Survive and thrive: A European plan to support Ukraine in the long war against Russia

Author:: Piotr Buras, Marie Dumoulin, Gustav Gressel, and Jeremy Shapiro
Publication Date:: 09-2022
Content Type:: Policy Brief
Institution:: European Council on Foreign Relations (ECFR)
Abstract:: Russia’s war on Ukraine is likely to last many years, even if the violence may subside at times. To sustain Ukraine during this conflict, Europeans should draw up a four-part ‘long-war plan’. This plan would comprise military assistance to Ukraine in the form of a ‘security compact’; security assurances that respond to scenarios of Russian escalation; economic support, giving Ukraine access to the EU’s single market; and help to secure Ukraine’s energy supply. Besides its practical impact, this plan will signal Europeans’ commitment to assisting Ukraine, showing Kyiv, Moscow, and the wider global community that the EU is in it for the long haul. The long-war plan will also provide clarity to anxious publics in member states. Together, these proposals would protect Ukraine’s sovereignty and territorial integrity and help create the long-term conditions for a resolution to the war – if and when a more constructive attitude emerges in the Kremlin.
Topic:: Security, Economics, Conflict, Military, Energy, and Russia-Ukraine War
Political Geography:: Russia, Europe, and Ukraine

270. Tough trade: The hidden costs of economic coercion

Author:: Jonathan Hackenbroich, Filip Medunic, and Pawel Zerka
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: European Council on Foreign Relations (ECFR)
Abstract:: Chinese economic coercion against Europe is on a deeply worrying trajectory. Having moved from threats in 2020 to punishment of European companies in 2021, China is now interfering with the EU market as part of a diplomatic dispute with Lithuania. If Beijing pressures European companies to stop trading with Lithuania, businesses could face pressure to stop dealing with Taiwan, Slovenia, or other places when tensions rise. The threat of Russian energy coercion is real, too. The EU needs to develop an Anti-Coercion Instrument that acts as a powerful economic deterrent, but this alone will not sufficiently protect Europe against economic coercion. The EU also requires a comprehensive resilience architecture, including a strong agenda for improving economic strength and trade links, a Resilience Office, and a reformed Blocking Statute that can counter secondary sanctions with Chinese characteristics. A Resilience Office could provide strategic coordination of the EU’s response and evaluate the costs of economic coercion, while the Blocking Statute could allow for targeted countermeasures against companies based in third countries.
Topic:: Security, Economics, European Union, Trade, and Coercion
Political Geography:: Europe

271. Quo Vadis, Belarus?

Author:: Zoran Meter
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: Institute for Development and International Relations (IRMO)
Abstract:: Year 2021 was one of the most turbulent for Belarus since its independence after the collapse of the USSR. In the West Belarus is sometimes called the “European North the global economic crisis in 2008 without too many problems and internal turmoil. Belarus has also successfully overcome problems with its neighbor the Russian Federation caused by Korea” and its longtime president Alexander Lukashenko, whom the West no longer recognizes, is dubbed “Europe’s Last Dictator.” Although this country is still to a large extent dug in its communist past, it has overcome disputes related to the content and dynamics of the implementation of the establishment of a Federal State between Belarus and Russia to which they previously committed.
Topic:: Economics, Governance, Leadership, Dictatorship, Pandemic, and COVID-19
Political Geography:: Europe and Belarus

272. Digitalization of Special Economic Zones in China

Author:: Jie (Jeanne) Huang
Publication Date:: 01-2022
Content Type:: Working Paper
Institution:: China Studies Centre, The University of Sydney
Abstract:: Special Economic Zones (SEZ) have become the forefront in China to test legal and technological reforms for digital trade. This chapter explores three cutting-edge case studies in China’s SEZs: the Beijing blockchain-based Single Window deposit box; newly established big data exchanges in Beijing, Tianjin, and Shanghai SEZs; and pilot projects in financial, medical care and automobile industries to flow data across the border in the Shanghai SEZ. It scrutinizes China's experiments in the context of its applications to join CPTPP and DEPA. It argues that the development of Chinese domestic law for digital trade is shifting away from the traditional paradigm that uses international commitments to push domestic reform or make domestic law according to international law. The development of Chinese domestic law for digital trade relies much more on China’s domestic needs than what FTAs negotiations require. FTAs are increasingly becoming a tool for China to shape international law rather than a benchmark for legislating domestic Chinese law.
Topic:: Development, Economics, International Trade and Finance, Hegemony, and Digitalization
Political Geography:: China and Asia

273. Beijing Winter Olympics 2022: Sports, Law, and Policies

Author:: Tim Harcourt, Deborah Healey, Keiji Kawai, and Yang Pei
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: China Studies Centre, The University of Sydney
Abstract:: The 2022 Beijing Winter Olympics were hosted amid the Covid-19 pandemic and surrounded by concerns and controversies. This Understanding China Brief results from a roundtable discussion organized by the China Studies Centre and the Centre for Asia and Pacific Law of Sydney University on 3 February 2022 to examine four aspects of the Beijing Olympics: boycotts, COVID- 19 control, law reform, and the economics of the Olympics.
Topic:: Economics, Reform, Sports, Conflict, Olympics, Pandemic, and COVID-19
Political Geography:: China and Asia

274. Comparing Older Adults’ Mental Health Needs and Access to Treatment in the U.S. and Other High-Income Countries

Author:: Munira Z. Gunja, Arnav Shah, and Reginald D. Williams II
Publication Date:: 01-2022
Content Type:: Policy Brief
Institution:: Commonwealth Fund
Abstract:: Nearly all U.S. adults over 65 have some mental health coverage through Medicare. Whether that coverage is sufficient is in question. Comparing mental health care access and affordability for U.S. Medicare beneficiaries with that for older adults in peer nations could highlight coverage gaps and point to opportunities for improvement.
Topic:: Economics, Health Care Policy, Social Policy, and Medicare
Political Geography:: North America and United States of America

275. Sanctions and the Economic Consequences of Higher Oil Prices

Author:: Christof Ruhl
Publication Date:: 04-2022
Content Type:: Commentary and Analysis
Institution:: Center on Global Energy Policy (CGEP), Columbia University
Abstract:: Sanctions against the Russian Federation are developing so fast that it is hard to keep track of them and even harder to see a consistent narrative as events unfold. But there is one. Russia is the world’s largest exporter of energy and commodities. A persistent balance of payment surplus is the source of its financial strength, in terms of both current income and the financial assets previously accumulated by “fortress Russia.” Oil, gas, and coal exports constitute the most valuable revenue streams and are therefore prime targets of sanctions policy.[1] The problem is that energy sanctions will backfire badly if they lead to price increases large enough to derail the economic performance of sanctioning countries.
Topic:: Economics, Energy Policy, Oil, Natural Resources, and Sanctions
Political Geography:: Global Focus

276. Interfaith Relations in Pakistan Perspectives and Worldview of Youth in Punjab

Author:: Ahmed Ali
Publication Date:: 02-2022
Content Type:: Special Report
Institution:: Pak Institute for Peace Studies (PIPS)
Abstract:: In the present day where concerns are gradually shifting from overpopulation to decreasing youth population in many countries, Pakistan’s youth population makes it a young nation. On a theoretical level, a large youth population with energy and capacity for work should help boost the national economy and contribute to GDP growth. However, in practice, lack of focus on youth in policymaking has drastically checked Pakistan’s ability to capitalize on its youth bulge and channelize the youth’s energies for economic growth. Still more worrisome, youth engagement is usually overlooked in policy discourse and formulation concerning peace and security, even though youth are integral to Pakistan’s security issues including violent extremism and terrorism. In recent past, the scale of religious extremism and violence witnessed in Pakistan could not have been possible without the formidable role of the youth who were indoctrinated in violent ideologies and used as weapons of war by militant groups. The Amnesty International has documented the using of youth in conflicts and hostilities around the world. In Pakistan, a Taliban commander Qari Hussain called the children “the tools to achieve God’s will”.1 The strategy of using young people in acts of violence was demonstrated by terror outfits, and children and teenagers were deployed as human bombs. However, despite Pakistan’s bitter experiences with faith-based extremism and terrorism, the youth continue to be discounted in policy. There is no effective or functional youth policy to speak of, though leaders do quite often cite the youth bulge as a source of national strength and promise uplift of youth. But rhetoric is barely followed by befitting policy measures. Resultantly, the youth are left largely rudderless and disenchanted which make them vulnerable to exploitation. There is already enough evidence to suggest that the current generation of Pakistani youth harbor anger inside which is often manifested in violent ways including in the forms of vigilantism and lynching.
Topic:: Security, Economics, Leadership, and Youth
Political Geography:: Pakistan and Middle East

277. Untapped Innovation? The Racial and Gender Divides That Hinder the U.S. Knowledge Economy

Author:: Alexander Kersten and Gabrielle Athanasia
Publication Date:: 05-2022
Content Type:: Special Report
Institution:: Center for Strategic and International Studies
Abstract:: The United States’ innovative spirit rests on a complex network of economic rules favoring market-based competition, predictable legal arrangements for patenting and securing intellectual property, and incentives for investors. It also relies on a robust university system that provides the requisite educational training and facilities to carry out research and development (R&D). Maintaining this network fundamentally requires a focus on early education, especially in science, technology, engineering, and mathematics (STEM). A more inclusive innovation economy also demands greater attention to communities of color, who are often poorly connected to the innovation economy; women, who are underrepresented in the innovation economy; and those in regions that do not yet share in the prosperity of the United States’ innovation clusters. To build a more inclusive innovation-based economy, policymakers should foster equitable access to early childhood STEM education. They should encourage the expansion of technology transfer programs across universities and colleges, including historically Black colleges and universities (HBCUs), and connect them to their regions’ economic growth. Policymakers, academia, and industry leaders should also encourage minorities and women to participate in the patenting and venture systems that support the innovation economy. Renewing American innovation means making opportunity as universal as the talent that seeks it.
Topic:: Economics, Gender Issues, Race, Labor Issues, Discrimination, and Innovation
Political Geography:: North America and United States of America

278. Red Ink: Estimating Chinese Industrial Policy Spending in Comparative Perspective

Author:: Gerard Dipippo, Ilaria Mazzocco, and Scott Kennedy
Publication Date:: 05-2022
Content Type:: Special Report
Institution:: Center for Strategic and International Studies
Abstract:: A new report by the CSIS Economics Program and the Trustee Chair in Chinese Business and Economics quantifies the size of total industrial policy spending by China and compares it to seven other major economies: Brazil, France, Germany, Japan, South Korea, Taiwan, and the United States. Much of the existing research on industrial policy focuses on its effects, but there are few, if any, published studies that attempt a systematic comparison and quantification of overall industrial policy spending. The heart of the report is the careful calculation of total industrial policy spending by China and the other economies, combining estimates from multiple tools, among them direct subsidies, tax breaks, below-market credit, and state investment funds. The report provides additional context by examining the historical trajectory of industrial policy of these economies and the evolution of industrial policy across these economies for three industries—aluminum, semiconductors, and electric vehicles. The historical and sectoral analyses point to some similarities across economies, but they also demonstrate how distinctive China has been in terms of both quantifiable spending and non-quantifiable policy tools. Finally, this report discusses several important policy implications, including greater transparency and more harmonized reporting about industrial policy spending and the potential ways in which policymakers could employ these data to more effectively limit industrial policy spending by China and other economies.
Topic:: Economics, Industrial Policy, Industry, and Labor Market
Political Geography:: China and Asia

279. Sanctions, SWIFT, and China’s Cross-Border Interbank Payments System

Author:: Barry Eichengreen
Publication Date:: 05-2022
Content Type:: Policy Brief
Institution:: Center for Strategic and International Studies
Abstract:: In response to Russia’s attack on Ukraine, the United States and a coalition of cooperating countries imposed harsh financial sanctions on the Russian government, corporations, and individuals.1 These sanctions bar Russian banks from using SWIFT (the Society for Worldwide Interbank Financial Telecommunications) to facilitate cross-border payments, prohibit banks from doing most forms of business with Russian entities, and freeze assets held abroad by the Central Bank of Russia in the form of treasury securities and bank deposits. These developments have led Russia, as well as other countries contemplating whether they might find themselves in the same position, to explore alternatives. Such options could include building a substitute for SWIFT to send instructions regarding cross-border interbank transactions; identifying financial counterparties other than Western banks with which to do international business and platforms other than Western clearinghouses through which to make payment; and finding a vehicle other than the dollar for denominating and executing transactions. Specifically, countries are looking to China, which has large internationally active banks, has created its own clearinghouse for cross-border transactions and is embarked on a campaign to encourage broader international use of its currency, the renminbi.2 This note investigates how far China has gone in creating alternatives to SWIFT, Western banks, and the dollar. It explores whether Russia and other countries might be drawn toward this parallel international financial universe and what economic and political implications this has—for the United States, for its geopolitical rivals, and for global economics and politics. China is making strides in fostering cross-border use of the renminbi and building a renminbi-based interbank payments system that can serve as an alternative to SWIFT and Western clearinghouses. However, these remain somewhat limited alternatives—for the moment. The situation could change faster if lent additional impetus by Western sanctions. Thus, countries such as the United States that employ financial sanctions should prepare for the development of alternative financial arrangements in China and possibly elsewhere. This may mean relying more heavily on nonfinancial measures insofar as financial sanctions eventually become less effective.
Topic:: Economics, Sanctions, Finance, Borders, and Banks
Political Geography:: China and Asia

280. Economic Security in Emerging Markets: A Look at India, Vietnam, and Indonesia

Author:: Matthew Goodman, Matthew Reynolds, and Julianne Fittipaldi
Publication Date:: 05-2022
Content Type:: Policy Brief
Institution:: Center for Strategic and International Studies
Abstract:: With the outbreak of the Covid-19 pandemic, supply chain resilience has emerged as a policy priority of the United States and its allies. The issue of supply chains has also raised the profile of emerging economies that offer possible alternatives to China as production platforms for multinational firms. This report surveys economic security policy developments in three major emerging economies: India, Vietnam, and Indonesia. It finds that all are attempting to take advantage of this new focus on supply chain resilience, while (to varying degrees) balancing the economic security risks posed by China’s rise. The United States and its allies have an opportunity to work with these emerging economies to shape their decisions about trade, investment, and technology policies in ways that promote mutual economic security and enhance international economic rules and norms.
Topic:: Security, Economics, Emerging Markets, International Trade and Finance, and Markets
Political Geography:: Indonesia, India, Asia, Vietnam, and Asia-Pacific

281. How China’s Human Capital Impacts Its National Competitiveness

Author:: Briana Boland, Kevin Dong, Jude Blanchette, and Ryan Haas
Publication Date:: 05-2022
Content Type:: Policy Brief
Institution:: Center for Strategic and International Studies
Abstract:: How will the strengths and weaknesses of China’s human capital impact national competitiveness? China’s efforts to maintain economic growth, strengthen supply chains, develop strategic science, technology, engineering, and mathematics (STEM) sectors, and secure a modern military edge hinges on the ability to cultivate and utilize human capital. As the United States and other countries increasingly engage in multidomain competition with China, it is critical to start from a clear-eyed understanding of China’s human capital and Beijing’s strategy for nurturing national talent. Investments in higher education, strategic STEM sectors, and military talent demonstrate key areas in which Beijing is focusing on cultivating human capital. However, China must overcome significant obstacles to innovate as it faces substantial demographic pressures, socio-economic inequalities, and challenges to attracting and retaining top talent both domestically and internationally.
Topic:: Economics, Labor Issues, Human Capital, and Strategic Competition
Political Geography:: China and Asia

282. An Analysis on India's Foreign Economic Relations and Its Implications for Korea-India Cooperation

Author:: Jeeyon Janet Kim, Hyoungmin Han, Hyeyoon Keum, and Jonghun Pek
Publication Date:: 03-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Economic exchanges between Korea and India have been expanding since the signing of the Korea-India CEPA, which took effect in 2010, and the promotion of the New Southern Policy (NSP) by Korea, but the level of exchange still remains insufficient considering the potential of the two countries. We aim to contribute to deepening Korea-India trade cooperation by analyzing India's foreign trade investment relations. Part II and III examine India's recent trade and investment structure with major countries including Korea, and Part IV analyzes India's status on the global production networks. In conclusion, Part V presents various implications for Korea-India trade cooperation.
Topic:: Foreign Policy, Economics, International Cooperation, Bilateral Relations, and Trade
Political Geography:: South Asia, India, Asia, and South Korea

283. Impacts of New International Tax System on Multinational Firms’ FDI

Author:: Sangjun Yea
Publication Date:: 04-2022
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: In this study, I present a theoretical model to quantitatively assess the economics impact of Pillar 1 and Pillar 2, especially focusing on the changes in the FDI patterns of multinational enterprises (MNEs). Pillar 1 offsets the incentives of MNEs' profits-shifting for tax-planning purposes, thereby reducing the inbound FDI into the countries with low corporate income tax rates. Pillar 2 burdens MNEs with 'top-up' taxes attributed from the subsidiaries in low tax countries. As the profits after tax (PAT) of MNEs shrink at the global level, innovation and R&D investment for new products will decrease, and as a result, global FDI flows will hamper.
Topic:: Economics, Foreign Direct Investment, Multinational Corporations, and Tax Systems
Political Geography:: Global Focus

284. How to save the WTO with more flexible trading rules

Author:: Robert Z. Lawrence
Publication Date:: 12-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The clash between the Western and Chinese economic systems is threatening the world trading system, with countries increasingly using trade as a tool to coerce other countries. It is imperative to return to an inclusive, rules-based international trading order before the problems in trade spill over into the other geopolitical frictions that plague the world. This Policy Brief argues for a system that steers between two extremes that have emerged: “deep integration,” a single undertaking in which all members of the World Trade Organization (WTO) are expected to adhere to all rules regardless of their preferences and circumstances, and “decoupling,” in which groups of countries centered on the United States or China limit trade with each other. Instead, Lawrence says, the world trading system should have a “variable geometry” that allows open plurilateral agreements among self-selected members that desire deeper integration on particular issues while allowing members that prefer to implement distinctive domestic policies to remain outside some of these agreements and follow a set of more limited rules. The universal rules would permit diversity but still promote trade between all countries through measures such as safeguards that would deal mainly with the most harmful systemic frictions. If the multilateral system is not up to the task of creating such an approach, it is likely to lose its relevance as differentiated regional or topic groupings become increasingly dominant.
Topic:: Economics, International Trade and Finance, World Trade Organization, Reform, and Trade
Political Geography:: Global Focus

285. EU carbon border adjustment mechanism faces many challenges

Author:: Gary Clyde Hufbauer, Jeffrey J. Schott, Megan Hogan, and Jisun Kim
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: This Policy Brief assesses the evolving EU Emissions Trading System and EU carbon border adjustment mechanism (CBAM) and explains objections within Europe and from major trading countries likely to be affected by the proposed CBAM import levies. While EU officials have sought to ensure that the CBAM is consistent with obligations under the World Trade Organization (WTO), key aspects of the CBAM could violate WTO rules and are likely to be contested, taking years to play out. Meanwhile, several other countries will adopt new carbon-inspired border restrictions, adding to global trade frictions. Major carbon-emitting countries, therefore, need to act cooperatively instead of unilaterally to both advance the fight against climate change and update the rules-based global trading system. Two-thirds of greenhouse gas emissions result from nontraded activities, such as road transport, electricity generation, and home and office heating. Countries can curb emissions in these activities, while developing guidelines for carbon abatement in traded sectors.
Topic:: Climate Change, Economics, International Trade and Finance, World Trade Organization, European Union, and Carbon Emissions
Political Geography:: Europe

286. CHIPS Act will spur US production but not foreclose China

Author:: Gary Clyde Hufbauer and Megan Hogan
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The CHIPS and Science Act, export controls, and agreements with allied countries will accomplish many of their multiple objectives. More US semiconductor fabrication plants will be built, US R&D will be accelerated, and advanced chips and chip-making machines will be denied to China, Russia, and other adversaries. However, the Act will not make a material difference to US chip supplies in the next two or three years. Slower economic growth has already tipped the chips market in favor of ample supplies. While collective measures have inflicted considerable short-term pain on China, causing a sharp drop in the fortunes of its high-tech firms, China will respond by redoubling its self-sufficiency programs. The United States, however, should not mimic China in pursuing self-sufficiency, as US self-sufficiency is an illusion. The United States currently exports high-value chips and imports low-value chips, so increasing self-sufficiency would require the United States to prioritize basic chip production at the same time it is supposed to be competing with China in advanced chip production. Continuing to prioritize advanced chip production—where the United States has a clear advantage—is the most efficient course of action.
Topic:: Economics, Legislation, Exports, Production, and Semiconductors
Political Geography:: China, Asia, and United States of America

287. Soaring demand is driving double-digit import price inflation in the United States

Author:: Caroline Freund
Publication Date:: 10-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: At a time of soaring price increases in the United States, inflation in the US import sector has been soaring the most. Import price inflation in the first half of 2022 was in the double digits, above US consumer price index and personal consumption expenditures inflation. Excess demand for certain imported goods is playing a big role, but so are supply shortages caused by temporary business closures overseas and shipping delays associated with the COVID-19 pandemic. Correctly identifying the culprit for misaligned demand and supply, and hence rising prices, is central to understanding the type and extent of policy intervention needed. Using movements in prices and quantities of specific goods, the analysis presented in this Policy Brief shows that the increase in import price inflation has been driven to the same or a greater extent by demand compared with supply constraints. The results have important implications for policies to help reduce the supply and demand imbalance and thus tame inflation.
Topic:: Economics, Inflation, COVID-19, Imports, and Supply and Demand
Political Geography:: North America and United States of America

288. Is South Korea vulnerable to EU and US carbon border restrictions?

Author:: Jeffrey J. Schott and Megan Hogan
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: South Korean exports, especially carbon-intensive products like steel, are increasingly vulnerable to both the European Union’s proposed carbon border adjustment mechanism (CBAM)—set to begin on January 1, 2023—and the proposed Clean Competition Act (CCA) before the US Congress. Schott and Hogan caution that Korean exporters should not count on Korea’s decade-old EU and US free trade agreements (FTAs), nor on the multilateral trading rules of the World Trade Organization (WTO), to protect them from new carbon-based import barriers in key foreign markets. The WTO and the FTAs have broad and loosely defined exemptions for environmental protection. Nor is Korea likely to be shielded by its own cap-and-trade emissions trading system (the K-ETS), because of extensive use of free allowances and large differences between EU and Korean carbon prices. While the threat the EU CBAM poses to Korean exports is imminent, passage of the CCA faces major legislative obstacles. But US imports of Korean steel and other carbon-intensive goods are still subject to climate-related duties at the US border under US unfair trade statutes. The US Department of Commerce has ruled that free allowances issued under the K-ETS (and EU ETS) are implicit subsidies that can be offset by countervailing duties. These charges are in addition to the harsh tariff-rate quotas on imported Korean steel applied under the “national security” authority of Section 232 of US trade law, which are more restrictive than measures imposed against European and other steel exporters. The authors suggest relaxing these US barriers, as they have been for shipments from Europe, in return for Korean participation in the nascent US-EU talks to establish a “Global Arrangement on Sustainable Steel and Aluminum.”
Topic:: Economics, International Trade and Finance, European Union, Exports, and Carbon Emissions
Political Geography:: Europe, Asia, South Korea, and United States of America

289. The online gig economy’s impact is not as big as many thought

Author:: Lee G. Branstetter
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The explosive global growth of online ride-hailing platforms raised concern (and, in some quarters, optimism) that similar growth in other platforms could rapidly disrupt traditional labor arrangements on a large scale in advanced economies. But the evidence to date suggests no significant changes in the overall importance of “gig” work in the US labor market nor a significant decline in the importance of traditional employment relationships. Online platforms may play a growing role (relative to traditional “brick-and-mortar” intermediaries) in connecting gig workers to their customers, but that alone does not guarantee a large increase in the importance of gig work. Branstetter reviews this evidence, noting the gaps in labor market data series that make the measurement of this phenomenon so difficult. Even if traditional employment relationships are not likely to decline significantly in the near future, the rise of online gig work nevertheless highlights longstanding inadequacies of labor market regulations, which recognize employees and truly independent contractors but struggle with the intermediate kinds of worker-firm relationships the online platforms enable. Branstetter summarizes proposals for regulating gig economy work and the lessons policymakers in South Korea and other economies can learn from the literature he reviews in this Policy Brief.
Topic:: Economics, Employment, Labor Market, and Gig Economy
Political Geography:: Global Focus

290. South Korea should prepare for its exposure to US-China technology tensions

Author:: Mary Lovely and Abigail Dahlman
Publication Date:: 07-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The stated goal of the US-led Indo-Pacific Economic Framework for Prosperity (IPEF) is to create standards that enhance and elevate regional trade and investment flows, but it is clearly aimed at reducing the role of China in global supply chains. As China is Korea’s largest trading partner, US policy discouraging Chinese participation in supply chains has immediate detrimental implications for Korean manufacturers. The United States is the second-most important destination for Korean exports. Given the values of these triangular trade flows, Lovely and Dahlman assess South Korea’s exposure to US demands to remove or reduce Chinese participation in the manufacture of exports destined for the US market. The reliance of the proposed framework on certain standards will likely reduce Chinese participation in IPEF trade networks. Korea may benefit from this trend, but IPEF could also increase production costs for Korean companies, especially in the electronics sector, a problem that would worsen if China retaliates against these companies. To reduce these risks, Korea might find it prudent to reduce its reliance on intermediate goods from China for products it produces for export to the United States. The Korean government should also seek to better understand its exposure to US–China trade tensions and diversify its trade relations. Korean firms should start preparing for supply chain disruptions, perhaps by making investments at home. Korea could also help other IPEF members reduce supply chain disruptions while addressing security concerns over China.
Topic:: Economics, Science and Technology, Supply Chains, and Competition
Political Geography:: China, Asia, South Korea, North America, and United States of America

291. China's CPTPP bid spurs South Korea to act on Asia-Pacific trade pacts

Author:: Jeffrey J. Schott
Publication Date:: 06-2022
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: China’s sudden application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in September 2021 has broad implications for South Korea’s economic relations with China, Japan, and the United States. In the past, Korea frequently debated but invariably postponed deciding whether to participate in negotiations on the CPTPP, despite the substantial benefits to be gained from doing so. However, China’s application has prompted Korean officials to get off the fence and apply as well. As China moves to deepen its ties to regional partners, Korea needs to follow suit, complementing the ongoing implementation of the Regional Comprehensive Economic Partnership (RCEP) with expedited negotiations to join the CPTPP and participation in the US-led Indo-Pacific Economic Framework for Prosperity (IPEF). Korean participation in the RCEP, CPTPP, and IPEF is desirable and mutually reinforcing and should allow Korea to sustain its strong commercial interests in both the US and Chinese markets.
Topic:: Economics, International Trade and Finance, Treaties and Agreements, and Trade
Political Geography:: China, South Korea, and Asia-Pacific

292. Public responses to foreign protectionism: Evidence from the US-China trade war

Author:: David Steinberg and Yeling Tan
Publication Date:: 06-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: America's recent turn toward protectionism has raised concerns about the future viability of the liberal international trading system. This study examines how and why public attitudes toward international trade change when one's country is targeted by protectionist measures from abroad. To address this question, the authors fielded three original survey experiments in the country most affected by US protectionism: China. First, they find consistent evidence that US protectionism reduces Chinese citizens' support for trade. This finding is replicated in parallel experiments on technology cooperation, and further validated outside of the China context with a survey experiment in Argentina. Second, they show that responses to US protectionism reflect both a "direct reciprocity" logic—citizens want to retaliate against the United States specifically—and a "generalized reciprocity" logic that reduces support for trade on a broader, systemic basis.
Topic:: Economics, International Trade and Finance, Protectionism, and Competition
Political Geography:: China, Asia, North America, and United States of America

293. 25 years of excess unemployment in advanced economies: Lessons for monetary policy

Author:: Joseph E. Gagnon and Madi Sarsenbayev
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: For about 25 years before the COVID-19 pandemic, inflation was very low and stable in most advanced economies. A little noticed dark side of this impressive achievement is that unemployment rates were almost always higher than needed to keep inflation low. This widespread and persistent policy error arose because of a major flaw in standard macroeconomic models—the use of a linear Phillips curve. This flaw would have been far less costly if central banks had not chosen such a low target for inflation. This paper thus adds to the arguments in favor of a moderately higher inflation target. Even without a higher target, central banks need to use a broader range of economic models and should verify their estimates of the natural rate of unemployment by running the economy hot from time to time in order to see nascent inflationary pressure before throttling back.
Topic:: Economics, Monetary Policy, Unemployment, and COVID-19
Political Geography:: Global Focus

294. How carbon tariffs and climate clubs can slow global warming

Author:: Shantayanan Devarajan, Delfin S. Go, Sherman Robinson, and Karen Thierfelder
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: Slowing global warming requires countries to reduce carbon emissions, which imposes costs on their economies. To be effective, most countries must agree collectively to participate (e.g., the Paris Agreement, COP26). However, every country has an incentive not to comply and still reap the benefits of other countries’ actions—a classic free-rider problem. This paper evaluates recent recommendations to use trade policy to solve the free-rider problem associated with climate mitigation strategies. It shows that the European Union’s carbon border adjustment mechanism (CBAM tariffs) are effective at offsetting the unfair competitive advantage of noncompliant countries in the markets of compliant countries but have little effect on the trade of noncompliant countries, who can divert trade to other noncompliers. CBAM tariffs alone have little impact on global CO2 emissions. The paper also examines “climate clubs” (coalitions of countries that agree to impose carbon taxes or other equivalent policies and impose punitive tariffs on non-club members to induce them to join the club). It finds that punitive climate club tariffs can be effective in inflicting significant damage on the economies of nonmembers, providing a strong incentive for them to join the club. The paper identifies trade dependence between club and non-club members as an important consideration for the success of a climate club. Club members that are strongly linked to non-club members suffer losses when the club punishes non-club members, which would make them hesitant to impose punitive tariffs on a major nonmember trading partner.
Topic:: Climate Change, Economics, Tariffs, and Carbon Emissions
Political Geography:: Global Focus

295. A reform strategy to transform energy: From piecemeal to systemwide change

Author:: Steven Fries
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report on Climate Change Mitigation highlights the vast gap between climate change mitigation actions and climate stabilization goals. But its broad policy prescriptions are likely to leave policymakers pondering what specific actions to take. Informed by accumulating evidence on transforming aspects of energy systems like power generation from solar and wind resources and battery electric cars, this paper develops a more pointed energy reform strategy than that of the IPCC to deliver the necessary systemwide changes. It makes the case for two unorthodox policies. One is for governments to provide, in addition to R&D supports, market-creating supports for early deployment of low-carbon technologies in initial markets. The second is to sequence emissions pricing after innovation and market-creating supports and differentiate this pricing across key energy sectors rather than imposing one economywide price. Compared with a single price, targeting higher emissions pricing on sectors that are costlier to decarbonize still promotes cost-effective emission cuts but limits adverse distributional impacts. The paper also considers nonprice barriers to change and ways to coordinate domestic reforms across countries.
Topic:: Climate Change, Economics, Reform, Carbon Emissions, and Energy
Political Geography:: Global Focus

296. Green energy depends on critical minerals. Who controls the supply chains?

Author:: Luc Leruth, Adnan Mazarei, Pierre Régibeau, and Luc Renneboog
Publication Date:: 08-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: In light of the transition away from fossil fuel–based energy, this paper highlights the importance of understanding who controls vital parts of the global supply chains of critical minerals and rare earth elements (REEs). Analysis of direct ownership does not reveal the real sources of control over the decisions of the company. To identify those sources, the authors use an index that measures the degree to which important shareholders can affect voting decisions. This analysis is not straightforward, because companies along the supply chain are not necessarily incorporated in the countries in which mining and production activities take place, and shareholders can exert influence through multiple layers of subsidiaries. The analysis reveals that China’s control over the global value chains involving critical minerals and REEs extends beyond what is commonly assumed. It also sheds light on environmental, social, and governance issues in the countries in which mining and/or production take place. The paper advocates increasing transparency regarding the sources of control to better assess and manage economic and geopolitical risks; enhancing recycling, to reduce dependency on foreign supply; avoiding protectionist and trade-reducing reactions; and encouraging research and development in order to speed up the adoption of technologies of substitution.
Topic:: Economics, Geopolitics, Supply Chains, Minerals, Energy, and Green Transition
Political Geography:: Global Focus

297. Why gender disparities persist in South Korea’s labor market

Author:: Karen Dynan, Jacob Funk Kirkegaard, and Anna Stansbury
Publication Date:: 07-2022
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: Although the South Korean economy fared relatively well on the whole during the pandemic, the labor market consequences were uneven, with women experiencing worse outcomes than men. These gender disparities have reinforced and highlighted important longer-term gender-related challenges in the South Korean labor market. Despite an above-average level of female tertiary education, the gender pay gap in South Korea is at the top of the range among OECD countries. The labor force participation rate is 20 percentage points lower for women than for men, a difference that is about one-quarter larger than the average for high-income countries. These disparities—as well as fertility that is the lowest of any advanced economy country in the world—reduce South Korea's future economic prospects and will contribute to fiscal challenges as the population rapidly ages. The analysis in this paper suggests that the combination of low female employment and low fertility in South Korea reflects features of the traditional nature of work that create a particularly stark tradeoff for women between work and family and put pressure on women to choose one or the other. This tradeoff has increased in recent years because the opportunity cost of having a child has risen with the rapid growth in the tertiary education rate of South Korean women. Regressions based on individual-level data from the Korean Labor and Income Panel Study (KLIPS) show that the entire gap in female labor force participation is driven by married women, particularly women with children. Unmarried women with no children are just as likely to be employed as men. A sizable "child earnings penalty" for South Korean women is fully explained by women dropping out of the labor force after the birth of their first child rather than reducing hours or hourly wages. Although South Korea has made strides toward making work more family friendly, there is scope to do better.
Topic:: Economics, Inequality, Labor Market, Fertility, and Gender
Political Geography:: Asia and South Korea

298. “That’s a bridge too far!” The imperative for a feminist lens on infrastructure investment.

Author:: Mia Urbano and Beth Elson
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: International Women's Development Agency (IWDA)
Abstract:: International development cooperation is increasingly focused on infrastructure again. However, to achieve economic and social transformation these investments must recognise that infrastructure is not gender neutral. User priorities differ, and infrastructure choices can either bridge or deepen divides.
Topic:: Civil Society, Economics, Infrastructure, and Feminism
Political Geography:: Australia

299. Unravelling Africa’s raw material footprints and their drivers

Author:: Albert Kwame Osei-Owusu, Michael Danquah, and Edgar Towa
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: This paper applies an environmentally extended input–output analysis, leveraging the Eora database, to estimate the global raw material footprints of 51 African nations from 1995 to 2015. It employs least absolute shrinkage and selection operator and panel regression models to quantify the effects of diverse variables on Africa’s raw material footprints. The findings show that the raw material footprints of Africa’s production and consumption soared by 41 per cent and 38 per cent, respectively, from 1995 to 2015, mainly driven by biomass and construction materials. They show that Africa outsources 25 per cent of its raw material footprints from consumption, while over 60 per cent of its footprints from production arise from its exports. Our findings beckon African governments to reduce the excessive focus on exploitation and concentrate on combatting corruption and extreme rent-seeking while decoupling Africa’s raw material footprints from rising public debt, carbon emissions, income levels, and population.
Topic:: Economics, Carbon Emissions, Public Debt, Income, Raw Materials, and Input-Output Analysis
Political Geography:: Africa

300. Gender preference at birth: A new measure for son preference based on stated preferences and observed measures of parents’ fertility decisions

Author:: Mehwish Ali, Ashton de Silva, Sarah Sinclair, and Ankita Mishra
Publication Date:: 09-2022
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: Investigating preference for sons is a continuing focal area of development economics and demographic research. Son preference presents a challenge in achieving the United Nations Sustainable Development Goals of ‘no poverty’, ‘good health and wellbeing’, and ‘gender equality’ by 2030. It is thus important to investigate son preference to inform policy-makers of the potential challenges in achieving these goals. Inaccurate interpretation of the mechanisms of son preference could misinform policy analysis and result in unintended consequences. Existing measures including sex ratios and gender composition of children do not reflect the true extent of son preference in high fertility countries such as Pakistan, where the success of policy action is limited and significant barriers to sex-selective technologies exist. Given the likely impact of son preference on fertility behaviour in Pakistan, accurate measurement of the forms this gender bias can take is necessary to appropriately gauge the influence of son preference on the fertility outcomes. The limited capacity of existing measures to accurately depict son preference in countries with high fertility combined with limited demarcation between pre- and post-birth son preference warrants development of a new measure for son preference to evaluate its effects. In this paper, a new measure of son preference called ‘gender preferences at birth’ (GPB) is presented. GPB combines stated fertility preferences and observed fertility outcomes to acknowledge that households in countries with high fertility and low contraception usage have less control over their fertility decisions.
Topic:: Economics, Sustainable Development Goals, Welfare, Family Planning, Fertility, and Gender
Political Geography:: Pakistan, South Asia, and Global Focus

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COLUMBIA UNIVERSITY PRESS