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  • Author: Huma Saeed
  • Publication Date: 02-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Afghanistan’s presidential election took place on September 28, 2019, with less than 2 million people participating out of 9.7 million registered voters. Taking into consideration Afghanistan’s total population of 35 million, the turnout was a historic low—a problem further amplified by the fact that the government poured a huge amount of financial and human resources into election preparation. The main explanation for such low turnout is twofold. On the one hand, security threats such as suicide attacks or gun violence—which reached their peak during the presidential election campaigns—deterred many people from going to polling stations. On the other hand, Afghans have become wary about determining their own political fate because, for decades, regional and international powers have steered the political wheel in Afghanistan, rather the people. After four months, election results have still not been announced, leading to further speculation and anxiety among a population which has already been the victim of four decades of violent conflict in the country. This anxiety is further exacerbated by the ongoing “peace” negotiations with the Taliban. Afghan people have learned from experience that, even in the best-case scenario of the election results or peace negotiations, they cannot hope for new justice measures to heal their wounds. As demonstrated by the experience of Afghanistan and other countries, peace and security will not last without addressing the people’s demands for justice.
  • Topic: Development, Human Rights, Politics, Elections, Taliban, Justice
  • Political Geography: Afghanistan, Central Asia, Middle East
  • Author: Jeff Bachman
  • Publication Date: 02-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Transnational solidarity movements have typically flowed from a central point located in the West, particularly in the United States, to the East and the Global South. Shadi Mokhtari describes this phenomenon as the “traditional West-to-East flow of human rights mobilizations and discourses.” Viewed individually, this phenomenon is not problematic in all cases. However, as Mokhtari argues, this one-directional flow of human rights politics precludes non-Western non-governmental organizations (NGOs) from weighing in on human rights violations committed in the United States. Human rights violations in the United States are typically experienced by marginalized communities, from the mass incarceration and disenfranchisement of African-Americans to the detention and ill-treatment of immigrants, migrants, and refugees. For a truly global human rights movement to emerge—one that is not grounded in Western paternalism and perceived moral superiority—this must change.
  • Topic: Development, Human Rights, Post Colonialism, Immigration, Refugees, NGOs, transnationalism
  • Political Geography: Global Focus, United States of America
  • Author: Daniele Fattibene
  • Publication Date: 04-2020
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: The United Nations’ 2030 Agenda for Sustainable Development stands at a crossroads. While Sustainable Development Goals (SDGs) have progressively entered the political discourse and agendas of numerous states, without long-term financial investments, building a more just and sustainable future will remain little more than a rhetorical embellishment.
  • Topic: Climate Change, Development, United Nations, Sustainable Development Goals
  • Political Geography: Europe, European Union
  • Author: Ana González, Euijin Jung
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: By refusing to fill vacancies in the World Trade Organization’s (WTO) Appellate Body—the top body that hears appeals and rules on trade disputes—the Trump administration has paralyzed the key component of the dispute settlement system. No nation or group of nations has more at stake in salvaging this system than the world’s big emerging-market economies: Brazil, China, India, Indonesia, Korea, Mexico, and Thailand, among others. These countries have actively and successfully used the dispute settlement system to defend their commercial interests abroad and resolve inevitable trade conflicts. The authors suggest that even though the developing countries did not create the Appellate Body crisis, they may hold a key to unlock it. The Trump administration has also focused its ire on a longstanding WTO practice of giving these economies latitude to seek “special and differential treatment” in trade negotiations because of their developing-country status. The largest developing economies, which have a significant stake in preserving a two-step, rules-based mechanism for resolving trade disputes, could play a role in driving a potential bargain to save the appeals mechanism. They could unite to give up that special status in return for a US commitment to end its boycott of the nomination of Appellate Body members.
  • Topic: Development, Government, World Trade Organization, Developing World, Donald Trump
  • Political Geography: China, Indonesia, India, South Korea, Brazil, North America, Mexico, Thailand, United States of America
  • Author: Priscilla Clapp
  • Publication Date: 02-2020
  • Content Type: Special Report
  • Institution: United States Institute of Peace
  • Abstract: Developing countries throughout Asia, Africa, and Latin America are grappling with how to deal with China's rising economic influence—particularly the multibillion-dollar development projects financed through China’s Belt and Road Initiative. Myanmar, however, appears to be approaching foreign investment proposals with considerable caution. This report examines the framework the country is developing to promote transparency and accountability and to reserve for itself the authority to weigh the economic, social, and environmental impacts of major projects proposed by international investors, including China.
  • Topic: Development, Infrastructure, Economy, Conflict, Investment, Peace
  • Political Geography: China, Southeast Asia, Myanmar
  • Author: Sadaf Lakhani, Rahmatullah Amiri
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: United States Institute of Peace
  • Abstract: Forced displacement affects over 70 million people worldwide and is among the most pressing humanitarian and development challenges today. This report attempts to ascertain whether a relationship exists between displacement in Afghanistan and vulnerability to recruitment to violence by militant organizations. The report leverages an understanding of this relationship to provide recommendations to government, international donors, and others working with Afghanistan’s displaced populations to formulate more effective policies and programs.
  • Topic: Development, Taliban, Violent Extremism, Radicalization, Displacement, Violence, Mobility
  • Political Geography: Afghanistan, South Asia, Central Asia
  • Author: Diego Sánchez-Ancochea
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This paper studies the determinants of income inequality in Latin America over the long run, comparing them with explanations of why the whole region is unequal. I first show how land inequality can account for differences between Latin America and other parts of the world but how it does not explain within-region differences. Using qualitative comparative analysis, I then consider how political institution and actors interact with the economic structure (i.e., type of export specialization) and with the ethnic composition of the population. The paper has several findings. A low indigenous/afrodescendant population is a necessary condition for relatively low inequality. I identify two sufficient-condition paths, both of which include the role of democracy, political equality, and a small indigenous and afrodescendant population. The first path also includes a favorable export specialization, while the second one includes the presence of leftist presidents instead. The paper calls for more explicit comparisons between our analytical models for the whole region and our explanations of between-country differences. Hopefully, the paper can also trigger more research on how the interactions between ethnicity, politics, and the export structure shape inequality in Latin America.
  • Topic: Civil Society, Development, Political Economy, Poverty, Race, Social Movement, Democracy, Inequality, Ethnicity
  • Political Geography: Latin America
  • Author: Tijan L. Bah, Catia Batista
  • Publication Date: 06-2020
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: Irregular migration to Europe by sea, though risky, remains one of the most popular migration options for many sub-Saharan Africans. This study examines the determinants of irregular migration from West Africa to Europe. We implemented an incentivized lab-in-thefield experiment in rural Gambia, the country with the region’s highest rate of irregular migration to Europe. Male youths aged 15 to 25 were given hypothetical scenarios regarding the probability of dying en route to Europe and of gaining legal residence status after successful arrival. According to the data we collected, potential migrants overestimate both the risk of dying en route to Europe and the probability of obtaining legal residency status. In this context, our experimental results show that providing potential migrants with official numbers on the probability of getting a legal residence permit decreases their likelihood of migration by 2.88 percentage points (pp), while information on the death risk of migrating increases their likelihood of migration by 2.29 pp—although the official numbers should be regarded as a lower bound to actual mortality. Follow-up data collected one year after the experiment show that the migration decisions reported in the lab experiment correlate well with actual migration decisions and intentions. Overall, our study indicates that the migration decisions of potential migrants are likely to respond to relevant information.
  • Topic: Development, Globalization, Migration, Internet, Economic growth, Borders, Violence
  • Political Geography: Africa, Gambia
  • Author: Christian Lara, Gabriel Delsol
  • Publication Date: 05-2020
  • Content Type: Policy Brief
  • Institution: International Peace Institute
  • Abstract: In 2017, the UN launched a system-wide effort to support the implementation of the sustaining peace agenda in Burkina Faso. Since then, a rapidly deteriorating security situation and an imminent humanitarian crisis have forced the UN, the Burkinabe government, and their partners to recalibrate their efforts. This ongoing recalibration, together with the changes resulting from the UN development system reforms, makes this an opportune moment to assess the state of efforts to sustain peace in Burkina Faso. This paper examines the implementation of the UN’s peacebuilding and sustaining peace framework in Burkina Faso, looking at what has been done and what is still needed. It focuses on the four issue areas highlighted in the secretary-general’s 2018 report on peacebuilding and sustaining peace: operational and policy coherence; leadership at the UN country level; partnerships with local and regional actors; and international support. Burkina Faso provides lessons for how the UN’s sustaining peace efforts can respond to growing needs without a change in mandate. Continued support for the UN resident coordinator in Burkina Faso is necessary to ensure that these efforts are part of a holistic approach to the crisis, together with local, national, and regional partners. Such support could underpin Burkina Faso’s status as a buffer against spreading insecurity in the Sahel and make the country a model for the implementation of the sustaining peace agenda in conflict-prone settings without UN missions.
  • Topic: Development, United Nations, Peacekeeping, Peace, Sustainability, Humanitarian Crisis
  • Political Geography: Africa, Burkina Faso
  • Author: Lesley Connolly, Jimena Leiva Roesch
  • Publication Date: 07-2020
  • Content Type: Policy Brief
  • Institution: International Peace Institute
  • Abstract: On January 1, 2019, a far-reaching reform of the UN development system went into effect. This was referred to by the deputy secretary-general as “the most ambitious reform of the United Nations development system in decades.” While this reform has only briefly been in place, questions have already arisen about its implementation and implications. This issue brief aims to contribute to the understanding of this ongoing reform and its significance. It provides a detailed overview of the UN development system reform at the headquarters, regional, and country levels, highlighting why it was undertaken and identifying some of the political and bureaucratic complexities it entails. The report concludes that more than a year into the reform of the UN development system, significant progress has been made, but it is too early to assess the reform’s long-term impact. What is clear, however, is that bringing about change of this scope will require the UN to adapt not only its structure but also its way of working.
  • Topic: Development, United Nations, Sustainability
  • Political Geography: Global Focus
  • Author: Monika Chansoria
  • Publication Date: 06-2020
  • Content Type: Policy Brief
  • Institution: Japan Institute Of International Affairs (JIIA)
  • Abstract: The prospects for exploring seabed minerals, specifically rare earth elements (REEs) have risen courtesy technological innovations in the field of deep-sea exploration. REEs are identified as a group of 17 chemical elements in the periodic table, found relatively in abundance in the Earth’s crust. They share similar chemical and physical properties and are of vital use in a variety of sectors, including by military manufacturers and technology firms. The largest subgroup within the REEs are the 15 lanthanides. The two other elements being scandium and yttrium. Based on quantity, the lanthanides, cerium, lanthanum, and neodymium are the most produced rare earths elements. These elements earn the distinction of being ‘rare’ for their availability in quantities which are significant enough to support viable economic mineral development of the deposits. However, from a cost-effective point of view, they are not consumable. It is not economically viable to extract these elements for consumption purposes since they are not concentrated enough and remain thinly dispersed as deep as 6.4 kilometers underwater
  • Topic: Development, Bilateral Relations, Partnerships, Research, Mining, Trade
  • Political Geography: Japan, India, Asia
  • Author: Monika Chansoria
  • Publication Date: 04-2020
  • Content Type: Policy Brief
  • Institution: Japan Institute Of International Affairs (JIIA)
  • Abstract: The 20th and 21st centuries will be remembered for many things, including primacy of the vast and seemingly endless seas and oceans. In this setting, the Indian Ocean Region (IOR) finds itself at the heart of the world map connecting distant nations through limitless waters. As a Northeast Asian island nation, Japan’s involvement with the Indian Ocean is heavily defined by virtue of its trade, investment and supplies from this region. Japan’s story in this reference dates back to the 17th century when a prominent Japanese adventurer, merchant, and trader, Tenjiku Tokubei sailed to Siam (Thailand) and subsequently to India in 1626 aboard a Red Seal ship via China, Vietnam and Malacca. Often referred to as the ‘Marco Polo of Japan’, Tokubei’s adventurous journey and account of his travels to India gained distinction also because he became perhaps the first Japanese to visit Magadh (which was an Indian kingdom in southern Bihar during the ancient Indian era).
  • Topic: Security, Development, Regional Cooperation, History, Capacity
  • Political Geography: Japan, Asia, Indian Ocean
  • Author: Yessengali Oskenbayev
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This article investigates the potential direction of the Kazakh-Korean economic relationship. The two countries have become major partners in their economic relationship. It is important for Kazakhstan to establish economic relations with South Korea, to diversify its economy. Kazakhstan’s economy is strongly dominated by mineral resources extractive sectors, and the country’s rapid economic growth during the period from 2000 to 2007, and afterward due to oil price increases, was not well translated into substantial growth of non-extractive sectors. Kazakhstan could employ strategies applied by Korean policymakers to sustain business and entrepreneurship development.
  • Topic: Development, Bilateral Relations, Economic growth, Economic Policy, Diversification, Trade, Economic Cooperation
  • Political Geography: Central Asia, Kazakhstan, Asia, South Korea
  • Author: Mao Ruipeng
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: As China deepens its engagement in global governance and development, its strategic motivation and rising influence within the UN and on international rules and norms are attracting the world’s attention. This paper focuses on China’s engagement with the UNDS, specifically Chinese funding and allocation decisions. China’s UNDS funding has risen rapidly since 2008 and even accelerated in 2013. Between 2013 and 2017, Chinese funding (excluding local resources) grew at an annual average rate of 33.8 per cent. In 2017, its total contribution reached USD 325.869 million. China’s shares of core funding and assessed contribution in its total UNDS funding are much higher than traditional donor countries. However, the share of non-core funding has also jumped. While China tends to mostly provide funds for UNDS development projects, in recent years it has also been hiking funding for humanitarian assistance. This paper also examines three cases of China’s earmarked funding – to the UNDP and the WFP, which receive the largest share of its UNDS funds, as well as for UNPDF operations, which count as a voluntary contribution. There are several reasons for China’s growing engagement with the UNDS, from evolving perception of foreign aid and appreciating the UN’s multilateral assets to fostering the reputation of “responsible great nation” and pushing forward the Belt and Road Initiative (BRI) through cooperation with the UNDS. In general, China continues to integrate into the global development system, and can be expected to maintain its support for the UN and continue to contribute to the UNDS.
  • Topic: Development, International Law, United Nations, Belt and Road Initiative (BRI), Norms
  • Political Geography: China, Global
  • Author: Elvis Melia
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This study asks what impact the Fourth Industrial Revolution will have on job creation and catchup development in Sub-Saharan Africa over the coming decade. Can light manufacturing export sectors still serve African development the way they served East Asian development in the past? If factory floor automation reduces the need for low-cost labour in global value chains, can IT-enabled services exports become an alternative driver of African catch-up development? I present case study evidence from Kenya to show that online freelancing has become an interesting sector, both in terms of its growth trajectory, and in terms of worker upward mobility in the global knowledge economy. As life everywhere moves further into the digital realm, and global internet connectivity between Africa and the rest of the world grows, more and more young Africans who stream onto the labour market may find work in the world of global online freelancing. I discuss the building blocks needed to make online work a sustainable vehicle for African catch-up development in the years ahead.
  • Topic: Development, Science and Technology, Labor Issues, Internet, Exports, Manufacturing, Industry
  • Political Geography: Kenya, Africa
  • Author: Sabrina Disse, Christoph Sommer
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: The vast majority of enterprises worldwide can be categorized as small and medium-sized enterprises (SMEs). They play a crucial role in providing a livelihood and income for diverse segments of the labour force, in creating new jobs, fostering valued added and economic growth. In addition, SMEs are associated with innovation, productivity enhancement as well as economic diversification and inclusiveness. However, almost half of the formal enterprises in low and middle-income countries (LMICs) are financially constrained, meaning that SMEs’ financing needs are unserved or underserved. Digitalisation is often seen as game changer that overcomes the challenges of SME finance by capitalising on the reduced transaction costs, the broader access to more and alternative data and the new customer experience shaped by convenience and simplicity. This paper aims to answer the question what the role of digital financial instruments in SME finance in Sub-Saharan Africa is. It reviews and discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity. It contrasts the hype around digital finance with actual market developments and trends in Africa. Main findings indicate that even though digital advances have led to impressive growth of certain digital finance instruments, it has not triggered a remake of the financial system. Digitalisation of the financial system is less disruptive than many expected, but does gradually change the financing landscapes. Some markets have added innovative and dynamic niches shaped by digital financial services, but new digital players have in general not replaced the incumbents. Furthermore, the contributions of digital instruments to finance in general and SME finance in particular are still very limited on the African continent compared to either the portfolio of outstanding SME finance by banks or the capital raised by similar innovative instruments elsewhere in the world. Many uncertainties remain, most importantly the response of regulators and responsible authorities. They need to provide a suitable legal framework to strike a balance between the innovation and growth aspiration of the digital finance industry and the integrity and stability of markets and the financial system at large. Also regulators have to safeguard data privacy and cybersecurity and prevent illicit financial flows, bad practices around excessive data collection, intransparency and poor reporting as well as exploitation of vulnerable groups with limited financial literacy. Governments also have to address the increasing gap towards those left behind by digital finance due to issues with ownership of a digital device, mobile network coverage and the internet connection or issues of basic digital and financial literacy.
  • Topic: Development, Science and Technology, Digital Economy, Business , Economic growth, Diversification
  • Political Geography: Africa
  • Author: Axel Berger, Sören Hilbrich, Gabriele Köhler
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: In recent years, the Group of Seven (G7) and Group of Twenty (G20) have placed increasing emphasis on gender equality. As part of this focus, the member states of both institutions have set out a series of objectives aimed at advancing gender equality. This report examines the degree to which these goals have been implemented in Germany. First, the gender equality goals that both institutions have set out since 2009 are presented and systematised. The report then investigates the current state of progress in Germany and describes measures that have already been undertaken to implement the goals.
  • Topic: Development, Gender Issues, G20, Women, Inequality, G7
  • Political Geography: Europe, Germany
  • Author: Frederik Stender, Axel Berger, Clara Brandi, Jakob Schwab
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This study provides early ex-post empirical evidence on the effects of provisionally applied Economic Partnership Agreements (EPAs) on two-way trade flows between the European Union (EU) and the African, Caribbean and Pacific Group of States (ACP). Employing the gravity model of trade, we do not find a general EPA effect on total exports from ACP countries to the EU nor on total exports from the EU to ACP countries. We do, however, find heterogeneous effects when focusing on specific agreements and economic sectors. While the agreement between the EU and the Caribbean Forum (CARIFORUM), which concluded several years ahead of the other EPAs in 2008, if anything, reduced imports from the EU overall, the provisional application of the other EPAs seems to have at least partly led to increased imports from the EU to some partner countries. More specifically, the estimation results suggest an increase in the total imports from the EU only in the Southern Africa Development Community (SADC) EPA partner countries. On the sectoral level, by comparison, we find increases in the EU’s agricultural exports to SADC, Eastern and Southern Africa (ESA) and the Pacific. Lastly, in the area of manufactures trade, we find decreases of exports of the ESA and SADC countries to the EU, but increases in imports from the EU into SADC countries. While this early assessment of the EPA effects merits attention given the importance of monitoring future implications of these agreements, it is still too early for a final verdict on the EPAs’ effects and future research is needed to investigate the mid- and long-term consequences of these agreements.
  • Topic: International Relations, Development, International Cooperation, Regional Cooperation, Treaties and Agreements, Manufacturing, Trade
  • Political Geography: Africa, Europe, South Africa, Caribbean, Asia-Pacific, European Union
  • Author: Tim Stoffel
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: Public Procurement is a highly regulated process ruled by a complex legal framework. It comprises not only national but also, increasingly, sub- and supranational regulations, giving rise to a multi-level regulatory governance of public procurement. The integration of sustainability aspects into public procurement, as called for in goal 12.7 of the Sustainable Development Goals (SDGs) of the Agenda 2030, needs to take this multi-level character into account. This reports focuses on social considerations, which are a central part of sustainable procurement – whether with a domestic focus or along international value chains. Social considerations have been somewhat neglected in Europe, whereas they feature prominently in procurement regulations in many countries of the Global South, especially in Sub-Saharan Africa (SSA). The advanced process of regional integration in the European Union (EU) and the progress made towards integration in some regional economic communities in Sub-Saharan Africa call for deeper analyses of the influence of the higher levels of the regulatory framework on the lower levels. The question is whether public entities, from the national down to the local level, are required or at least have the option to integrate socially responsible public procurement (SRPP) into their procurement processes and tenders, or at least have the option to do so. This report is conducted as part of the project “Municipalities Promoting and Shaping Sustainable Value Creation (MUPASS) - Public Procurement for Fair and Sustainable Production”, implemented by DIE in cooperation with Service Agency Municipalities in One World (SKEW) with funds from the Federal Ministry of Economic Cooperation and Development (BMZ) and compares public procurement in Germany and Kenya. In both countries, the multi-level regulatory frameworks allow for SRPP regulations and practices ar the national and sub-national levels of government. There is, however, an implementation gap for SRPP in Germany and Kenya that appears to be independent from the specifics of the respective regulatory framework. To tackle this, supportive measures, such as capacity building, are key. Furthermore, Regional economic communities, such as the EU and the Common Market for Eastern and Southern Africa (COMESA), can play a role in promoting SRPP, even without introducing mandatory provisions. At the other end of the multi-level regulatory spectrum, municipalities in the EU had and have an important role in SRPP implementation, that might be replicable by sub-national public entities in Kenya and other contexts.
  • Topic: Development, Governance, Regulation, Sustainable Development Goals
  • Political Geography: Kenya, Africa, Europe, Germany
  • Author: Francesco Burchi, Christoph Strupat, Armin von Schiller
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: German Development Institute (DIE)
  • Abstract: Social cohesion is an important precondition for peaceful and economically successful societies. The question of how societies hold together and which policies enhance social cohesion has become a relevant topic on both national and international agendas. This Briefing Paper stresses the contribution of revenue collection and social policies, and in particular the interlinkages between the two. It is evident that revenue mobilisation and social policies are intrinsically intertwined. It is impossible to think carefully about either independently of the other. In particular, revenue is needed to finance more ambitious social policies and allow countries to reach goals, such as those included in the 2030 Agenda for Sustainable Development. Similarly, better social policies can increase the acceptance of higher taxes and fees. Furthermore, and often underestimated, a better understanding of the interlinkages between revenue generation and social policies can provide a significant contribution to strengthening social cohesion – in particular, concerning state–citizen relationships. In order to shed light on these interlinkages, it is useful to have a closer look at the concept of the “fiscal contract”, which is based on the core idea that governments exchange public services for revenue. Fiscal contracts can be characterised along two dimensions: (i) level of endorsement, that is, the number of actors and groups that at least accept, and ideally proactively support, the fiscal contract, and (ii) level of involvement, that is, the share of the population that is involved as taxpayer, as beneficiary of social policies or both. In many developing countries, either because of incapacity or biased state action towards elite groups, the level of involvement is rather low. Given the common perception that policies are unjust and inefficient, in many developing countries the level of endorsement is also low. It is precisely in these contexts that interventions on either side of the public budget are crucial and can have a significant societal effect beyond the fiscal realm. We argue that development programmes need to be especially aware of the potential impacts (negative and positive) that work on revenue collection and social policies can have on the fiscal contract and beyond, and we call on donors and policy-makers alike to recognise these areas as relevant for social cohesion. We specifically identify three key mechanisms connecting social policies and revenue collection through which policy-makers could strengthen the fiscal contract and, thereby, enhance social cohesion: 1. Increasing the effectiveness and/or coverage of public social policies. These interventions could improve the perceptions that people – and not only the direct beneficiaries – have of the state, raising their willingness to pay taxes and, with that, improving revenues. 2. Broadening the tax base. This is likely to generate new revenue that can finance new policies, but more importantly it will increase the level of involvement, which will have other effects, such as increasing government responsiveness and accountability in the use of public resources. 3. Enhancing transparency. This can stimulate public debate and affect people’s perceptions of the fiscal system. In order to obtain this result, government campaigns aimed at diffusing information about the main features of policies realised are particularly useful, as are interventions to improve the monitoring and evaluation system.
  • Topic: Development, Finance, Economic growth, Tax Systems, Transparency, Social Cohesion
  • Political Geography: Germany, Global Focus
  • Author: Lennart C. Kaplan, Sascha Kuhn, Jana Kuhnt
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: German Development Institute (DIE)
  • Abstract: Successful programmes and policies require supportive behaviour from their targeted populations. Understanding what drives human reactions is crucial for the design and implementation of development programmes. Research has shown that people are not rational agents and that providing them with financial or material incentives is often not enough to foster long-term behavioural change. For this reason, the consideration of behavioural aspects that influence an individual’s actions, including the local context, has moved into the focus of development programmes. Disregarding these factors endangers the success of programmes. The World Bank brought this point forward forcefully with its 2015 World Development Report, “Mind, Society and Behavior”, herewith supporting the focus on behavioural insights within development policies. While agencies may intuitively consider behavioural aspects during programme design and implementation, a systematic approach would improve programme effectiveness at a relatively small financial cost. For this reason, we present a framework – the Theory of Planned Behaviour (TPB) (Ajzen, 1991) – that aids practitioners and researchers alike in considering important determinants of human behaviour during the design and implementation of development programmes The TPB suggests considering important determinants of human behaviour, such as the individual’s attitude towards the intervention (influenced by previous knowledge, information or learning); subjective norms (influenced by important people, such as family members or superiors); and the individual’s sense of behavioural control (influenced by a subjective assessment of barriers and enablers). The theory should be used early on in the programme design to perform a structured assessment of behavioural aspects in the appropriate context. Components of the TPB can often be addressed through cost-effective, easy changes to existing programmes. Simple guiding questions (see Box 1) can help integrate the theory into the programme design. An iterative and inclusive process, particularly in exchange with the targeted population and other stakeholders, increases success.
  • Topic: Development, Norms, Behavior
  • Political Geography: Germany, Global Focus
  • Author: Laura-Theresa Krüger, Julie Vaillé
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: German Development Institute (DIE)
  • Abstract: On 22 January 2019, France and Germany signed the Aachen Treaty. Therein, 56 years after the Elysée Treaty, re-emphasising their support for multilateralism, sustainable development and development cooperation. Despite the ambitions expressed in this document, the signing of the Treaty calls for reflection: to what extent does this type of agreement indeed lead to joint operational approaches and have a real impact on French–German cooperation? To answer this question, this Briefing Paper analyses the obstacles to a closer French–German cooperation in the field of sustainable international development. It focuses on how these commitments are put into practice at the level of political coordination and project implementation. The analysis is based on about 20 interviews with representatives of French and German ministries, development agencies and think tanks. It finds that things get most complicated at the level of political coordination. Three main obstacles are identified: slightly diverging strategic visions; an incompatibility between institutional structures concerning the degree of specialisation and the mandates of the ministries responsible for steering aid, as well as the degree to which development agencies are involved in strategic decision-making; and cultural particularities regarding communication and time management. Five recommendations are proposed: 1. Protect what has been achieved: the alignment between France and Germany at the political and project implementation levels is an asset in an international context where the focus on national interests is increasing. Such cooperation should thus continue to be supported and reinforced. 2. Channel the political momentum to the working level: in order to reinforce their coordination, the two countries could establish a solid and regular follow-up mechanism for each commitment, detailing joint actions, shared objectives and milestones. 3. Promote mutual knowledge and trust: personnel exchange between the departments, as well as deep dive sessions on the two countries’ activities and strategies would allow increased understanding of each other. 4. Share best practices: a balanced and respectful French–German collaboration could be encouraged by the sharing of practices for which one country is more advanced or better positioned than the other (such as the French interministerial coordination or the German project evaluation and monitoring procedures). 5. Act jointly or divide the work: in the run-up to each joint Franco-German action, make a deliberate and conscious decision whether the two countries have an interest to act jointly or to divide the work. This decision would allow maximisation of the impact, either by specialising or by working together.
  • Topic: Development, Treaties and Agreements, Sustainable Development Goals
  • Political Geography: Europe, France, Germany
  • Author: Mark Furness, Annabelle Houdret
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: German Development Institute (DIE)
  • Abstract: State–society relations are in flux across the Middle East and North Africa (MENA), nearly a decade after the Arab uprisings. The protests and revolts that swept the region in 2011 arose from widespread rejection of the post-independence Arab social contracts. These were based on redistribution of rents from natural resources and other forms of transfers and subsidies, as “compensation” for acquiescence to political and economic authoritarianism. In several MENA countries, including Iraq, Libya, Syria and Yemen, but also in Algeria, Lebanon and Palestine, the old social contracts have been destroyed by civil conflicts and internationally sponsored wars, which in some cases predated the 2011 uprisings. Since broken social contracts are at the root of conflict in the MENA region, supporting new social contracts should be the core objective of development cooperation with the region’s most conflict-affected countries. But “post-conflict reconstruction” often ignores the fact that conflicts do not end with peace agreements, and conflict-affected societies need more than reconstructed infrastructure, institutional capacity and private sector investment if they are to avoid violence in the future. Development agencies term this kind of cooperation “resilience”: promoting political, economic, social and environmental stability, rather than risking uncontrollable, revolutionary transformation. However, resilience has often provided cover for short-term measures aimed at preserving the position of particular actors and systems. Development cooperation needs to get beyond reconstruction and resilience approaches that often fail to foster the long-term stability they promise. By focussing on the social contract, development cooperation with conflict-affected countries can provide a crucial link between peacebuilding, reconstruction and longer-term socioeconomic and political development. It can thereby contribute not only to short-term, but also to long-term, sustainable stability. Using the social contract as an analytical lens can increase understanding not only of what donors should avoid doing, but also where they should concentrate their engagement during transitions from civil war. Practical examples from challenging contexts in the MENA region suggest that donors can make positive contributions in support of new social contracts when backing (a) stakeholder dialogues, (b) governance and reforms, and (c) socioeconomic inclusion. In Libya, the socioeconomic dialogue process has brought stakeholders together to outline a new economic vision for the country. The Municipal Development Programme in Palestine focusses on improving the accountability and delivery of local institutions. The Moroccan Economic, Social and Environmental Council provides an example of a process that engages previously marginalised groups. These programmes are all examples of targeted efforts to build cooperation among the groups that make up MENA societies. They aim to broaden decision-making processes, and to increase the impact of specific measures with the ultimate objective of improving state–society relations. They could be adapted for other fragile contexts, with external support. In backing more of these kinds of activities, donors could make stronger contributions to sustainable, long-term peace- and state-building processes in conflict-affected MENA countries.
  • Topic: Development, Natural Resources, Conflict, Peace, Social Contract
  • Political Geography: Iraq, Middle East, Libya, Yemen, Palestine, Algeria, North Africa, Lebanon, Syria
  • Author: Avani Kapur, Vastav Irava
  • Publication Date: 02-2020
  • Content Type: Policy Brief
  • Institution: Centre for Policy Research, India
  • Abstract: In Financial Year (FY) 2019-20, the National Rural Drinking Water Mission (NRDWM) was restructured and subsumed into Jal Jeevan Mission (JJM). It is Government of India’s (GoI’s) flagship rural drinking water programme to provide functional tap connections to every household for drinking, cooking, and other domestic needs on a sustainable basis. Using government data, this brief reports on: Overall GoI allocations; Trends in releases and expenditures; Component-wise trends; and Progress on coverage.
  • Topic: Development, Government, Water, Infrastructure, Budget, Finance, Rural
  • Political Geography: South Asia, India
  • Author: Tchinda Kamdem Eric Joel, Kamdem Cyrille Bergaly
  • Publication Date: 01-2020
  • Content Type: Research Paper
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Cameroonian farmers face two tenure systems: a modern regime and a customary regime. These two regimes are perpetually confronting each other, putting farmers in a total uncertainty as to the regime to adopt to ensure the sustainability of their ventures. This study aims to assess the influence of land tenure security on agricultural productivity through credit access. To achieve this goal, a two-stage sampling technique was applied to data from the third Cameroon Household Survey (ECAM 3). The number of farmers selected for the analysis was 602. These data were analysed using descriptive and three-step recursive regression models. The results of the analysis reveal that land tenure security improves agricultural productivity through the credit access it allows. A proof of the robustness of this result has been provided through discussion of the effects of land tenure security in different agro-ecological zones and through a distinction between cash crops and food crops. The overall results confirm that land tenure security positively and significantly influences agricultural productivity. The regression has also shown that the size of the farm defined in one way or another, the perception of farmers on their level of land tenure security and therefore indicates the intensity with which land tenure security influences agricultural productivity. The recorded productivity differential indicates that smallholder farmers, because they keep small farms, feel safer and produce more than those who keep medium-sized farms. The results also show that land tenure security significantly improves the value of production per hectare of food products that are globally imported into Cameroon. Therefore, we recommend that the public authorities promote land tenure security by reinforcing the unassailable and irrevocable nature of land title, but also by easing the conditions of access to it.
  • Topic: Agriculture, Development, Economics, International Political Economy, Economic structure, Economic Policy
  • Political Geography: Africa, Cameroon
  • Publication Date: 01-2020
  • Content Type: Research Paper
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: This study sets out to estimate the determinants of household economic wellbeing and to evaluate the relative contributions of regressed-income sources in explaining measured inequality. In particular, a regression-based decomposition approach informed by the Shapley value, the instrumental variables econometric method, and the 2007 Cameroon household consumption survey, was used. This approach provides a flexible way to accommodate variables in a multivariate context. The results indicate that the household stock of education, age, credit, being bilingual, radio and electricity influence wellbeing positively, while rural, land and dependency had a negative impact on wellbeing. Results also show that rural, credit, bilingualism, education, age, dependency and land, in that order, are the main contributors to measured income inequality, meanwhile, the constant term, media and electricity are inequality reducing. These findings have policy implications for the ongoing drive to scale down both inequality and poverty in Cameroon.
  • Topic: Development, Economics, Poverty, Inequality, Economic Inequality, Economic Policy
  • Political Geography: Africa, Cameroon
  • Author: Ebaidalla M. Ebaidalla
  • Publication Date: 01-2020
  • Content Type: Research Paper
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Despite the importance of non-farm income in the livelihood of the rural population in Sudan, information available on its size and determinants is scanty. This study examined the patterns and determinants of decisions to participate in non-farm activities in rural Sudan. It also investigates whether the determinants of participation in non-farm activities vary across agriculture sub-sectors and income groups as well as among males and females. The data for this study was sourced from the Sudanese National Baseline Household Survey (NBHS) conducted by Sudan’s Central Bureau of Statistics in 2009. The results show that non-farm income is a crucial source of livelihood, contributing about 43% to household income in rural Sudan. The results of multinomial logit and probit estimation methods indicate that educational level, mean of transportation, lack of land and lack of access to formal credit are the most significant factors that push rural farmers to participate in non-farm activities. Surprisingly, the effect of household income was positive and significant, implying that individuals from rich households have higher opportunity to engage in non-farm activities compared to their poor counterparts. Moreover, the analysis revealed some symptoms of gender and location disparities in the effect of factors that influence participation in non-farm activities. The study concluded with some recommendations that aim to enhance the engagement in non-farm activities as an important diversification strategy to complement the role of the agriculture sector in improving rural economy in Sudan.
  • Topic: Agriculture, Development, Economics, Rural
  • Political Geography: Sudan
  • Author: Reuben Adeolu Alabi, Oshobugie Ojor Adams
  • Publication Date: 01-2020
  • Content Type: Research Paper
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: This study examined the impacts of the e-wallet fertilizer subsidy scheme on quantity of fertilizer use, crop output and yield in Nigeria. The study made use of the Nigeria General Household Survey (GHS)-Panel Datasets of 2010/2011 and 2012/2013 which contain 5,000 farming households in each of the panel. We applied relevant evaluation techniques to analyse the data. The results of the impact analysis demonstrate that the scheme has generally increased the yield, crop output and quantity of fertilizer purchase of the participating farmers by 38%, 47%, and 16%, respectively. The study concludes that increased productivity, which the scheme engenders, can help to reduce food insecurity in Nigeria. Provision of rural infrastructure, such as good road network, accessibility to mobile phones, radio, etc., will increase accessibility of the small-scale farmers to the scheme or any other similar agricultural schemes in Nigeria.
  • Topic: Agriculture, Development, Economics, Income Inequality, Economic growth, Rural
  • Political Geography: Africa, Niger
  • Author: Dongue Ndongo Patrick Revelli
  • Publication Date: 01-2020
  • Content Type: Research Paper
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Understanding how domestic prices adjust to the exchange rate enables us to anticipate the effects on inflation and monetary policy responses. This study examines the extent of the exchange rate pass-through to the Consumer Price Index in Cameroon and Kenya over the 1991-2013 period. The results of its econometric analysis shows that the degree of the exchange rate pass-through is incomplete and varied between 0.18 and 0.58 over one year in Kenya, while it varied between 0.53 and 0.89 over the same period in Cameroon. For the long term, it was found to be equal to 1.06 in Kenya and to 0.28 in Cameroon. A structural VAR analysis using impulse-response functions supported the results for the short term but found a lower degree of pass-through for the exchange rate shocks: 0.3125 for Kenya and 0.4510 for Cameroon. It follows from these results that the exchange rate movements remain a potentially important source of inflation in the two countries. Variance decomposition shows that the contribution of the exchange rate shocks is modest in the case of Kenya but significant in that of Cameroon.
  • Topic: Development, Economics, Monetary Policy, Exchange Rate Policy, Economic Policy, Inflation
  • Political Geography: Kenya, Africa, Cameroon
  • Author: Albert Makochekanwa
  • Publication Date: 01-2020
  • Content Type: Research Paper
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: The main objective of the study was to investigate the impact of policy regulations on investments in mobile telecommunications network infrastructure in all the 15 member countries of the Southern African Development Community (SADC) region. The research employed panel data econometrics to achieve its stated objective. Estimated results shows that the coefficient of gross domestic product (GDP) per capita is positive and statistically significant, implying that an increase in this variable results in increase in demand and this in turn motivates infrastructure investment in mobile telephone. The coefficient on the previous level of mobile telephone infrastructure investment variable (Invkt-1) was found to be positive and statistically significant. This means that there is a systematic positive association between the previous level of mobile telephone infrastructure investment and the current. The coefficient of the main variable of interest representing mandatory unbundling (Regkt) was found to be positive and statistically significant. This implies that, overall, mandatory unbundling access regulation boost infrastructure investment in mobile telecommunication. Regression estimates shows that the coefficient on one of the variable of interest, political constraint (POLCON) has a negative and statistically significant impact on determining the level of mobile telephone infrastructure investment in SADC countries. Whilst this result is against expectations, one possible explanation may be presence of high level of rent seeking behaviour.
  • Topic: Development, Economics, Regulation, Economic growth, Economic Policy
  • Political Geography: Africa, South Africa
  • Author: Nathan Nunn
  • Publication Date: 01-2020
  • Content Type: Policy Brief
  • Institution: Economics for Inclusive Prosperity (EfIP)
  • Abstract: In this brief, I discuss the current state of economic development policy, which tends to focus on interventions, usually funded with foreign aid, that are aimed at fixing deficiencies in developing countries. The general perception is that there are inherent problems with less-developed countries that can be fixed by with the help of the Western world. I discuss evidence that shows that the effects of such ‘help’ can be mixed. While foreign aid can improve things, it can also make things worse. In addition, at the same time that this ‘help’ is being offered, the developed West regularly undertakes actions that are harmful to developing countries. Examples include tariffs, antidumping duties, restrictions on international labor mobility, the use of international power and coercion, and tied-aid used for export promotion. Overall, it is unclear whether interactions with the West are, on the whole, helpful or detrimental to developing countries. We may have our largest and most positive effects on alleviating global poverty if we focus on restraining ourselves from actively harming less-developed countries rather than focusing our efforts on fixing them.
  • Topic: Development, Economics, International Political Economy, Developing World, Economic Development
  • Political Geography: United States, Global Focus
  • Author: Augusto Leal Rinaldi, Laerte Apolinário Júnior
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: Conjuntura Austral: Journal of the Global South
  • Institution: Conjuntura Austral: Journal of the Global South
  • Abstract: The first decade of the 21st century gave way to a series of international political-economic dynamics with the potential to reorganize global power (IKENBERRY, 2018; KITCHEN; COX, 2019; MAHBUBANI, 2009; MEARSHEIMER, 2018, 2019). Among the changes, one common reference is the rise of the BRICS –Brazil, Russia, India, China, and South Africa –and, consequently, their performance for demanding reforms of the global governance system (COOPER, 2016; HURRELL, 2018; ROBERTS; ARMIJO; KATADA, 2018; STUENKEL, 2017). The emerging economies have invested in consolidating their new status by acting in different branches of global governance, demanding changes and policies to see a reasonable parity between their economic weight and ability to participate as real decision-makers. In this context, international regimes are a crucial dimension to consider.
  • Topic: Development, International Cooperation, International Political Economy, Geopolitics, International Development, Economic Development , Economic Cooperation
  • Political Geography: Russia, China, India, South Africa, Brazil
  • Author: James A. Dorn
  • Publication Date: 01-2019
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: 1978 has been erratic, with many interruptions along the way. The end result, however, has been eye opening: the Middle Kingdom has become the world’s largest trading nation, the second largest economy, and more than 500 million people have lifted themselves out of poverty as economic liberalization removed barriers to trade. One of the enduring lessons from China’s rise as an economic giant is that once people are given greater economic freedom, more autonomy, and stronger property rights, they will have a better chance of creating a harmonious and prosperous society (see Dorn 2019). Nevertheless, China faces major challenges to its future development. There is still no genuine rule of law that effectively limits the power of government, no independent judiciary to enforce the rights promised in the nation’s constitution, no free market for ideas that is essential for innovation and for avoiding major policy errors, no competitive political system that fosters a diversity of views, and a large state sector that stifles private initiative and breeds corruption. China’s slowing growth rate, its increasing debt burden, environmental problems, and the increasing tension in U.S.-China relations compound the challenges facing Beijing.
  • Topic: Development, Economics, History, Trade Liberalization
  • Political Geography: China, Asia
  • Author: Jacqueline M. Klopp, Abdullahi Boru Halakhe
  • Publication Date: 10-2019
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Carbon politics is playing out in oil-producing African countries with lethal consequences. Countries like Nigeria, Angola, Sudan, and South Sudan are conflict-ridden and economically unequal, and, as climate change concerns clash with new fossil fuel-driven development efforts, carbon politics is taking on ever-greater significance. While the scramble for fossil fuels could increase authoritarianism as it spreads in East Africa, an ecologically-driven imperative to address climate change could reinforce stronger democratic institutions.
  • Topic: Climate Change, Development, Oil, Natural Resources, Democracy
  • Political Geography: Africa, Sudan, Nigeria, Angola, East Africa, South Sudan
  • Author: Bradley O. Babson
  • Publication Date: 04-2019
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Since his first-annual New Year’s speech in 2012 setting North Korea’s policy priorities, Kim Jong Un has emphasized his commitment to economic development, notably promising his people that they will never have to tighten their belts again. The Byunjin policy of equally prioritizing economic development and security through nuclear and missile programs reflects Kim’s desire to assure regime stability by delivering broad-based economic development while establishing a security environment that deters external threats and potential domestic unrest. While United States policy has used sanctions and other pressures to stymie Kim’s ambitions, the Kim regime has nonetheless modestly furthered economic development and significantly advanced security through its nuclear and missile testing programs.
  • Topic: Security, Development, Economics, Human Rights, Sanctions
  • Political Geography: Asia, North Korea, North America, United States of America
  • Author: Andriy Tyushka
  • Publication Date: 06-2019
  • Content Type: Journal Article
  • Journal: International Issues: Slovak Foreign Policy Affairs
  • Institution: Slovak Foreign Policy Association
  • Abstract: The Eastern Partnership’s tenth-anniversary celebration in May 2019 by the European Union and its Eastern neighbors was anything but grandiose and festive. Internal EU developments, the overall political dynamics in the region and the indeterminacies of the Eastern Partnership project were the main cause. As the EU’s flagship policy initiative towards its Eastern European neighborhood is currently undergoing auditing and revision, this article seeks to cast a look back at how the Eastern Partnership has functioned over the past decade – and to think forward to its future(s) with regard to design and deliverables in face of the enduring and imminent policy dilemmas in this highly contested region.
  • Topic: Development, International Cooperation, Regional Cooperation, Treaties and Agreements, Public Policy
  • Political Geography: Europe, Ukraine, Moldova, Armenia, Azerbaijan, Georgia, Belarus
  • Author: Roland Rajah, Alexandre Dayant, Jonathan Pryke
  • Publication Date: 10-2019
  • Content Type: Commentary and Analysis
  • Institution: Lowy Institute for International Policy
  • Abstract: China has not been engaged in debt trap diplomacy — at least not yet. China has not been the primary driver behind rising debt risks in the Pacific, although a continuation of business as usual would risk future debt problems in several countries. There is scope for a new Australian infrastructure financing facility to provide loans to the Pacific without causing debt problems, particularly as it has adopted key sustainable lending rules. Pacific nations have an opportunity to obtain more favourable financing from official development partners but care must be taken to avoid overly geopolitical aid.
  • Topic: Debt, Development, Infrastructure, Geopolitics, Soft Power, Belt and Road Initiative (BRI)
  • Political Geography: China, Australia, Asia-Pacific
  • Author: Mark H. Moore
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This is one of a series of working papers from “RISE"—the large-scale education systems research programme supported by the UK’s Department for International Development (DFID), Australia’s Department of Foreign Affairs and Trade (DFAT), and the Bill and Melinda Gates Foundation.
  • Topic: Development, Education, Governance, Developing World
  • Political Geography: Global Focus
  • Author: Michael Woolcock
  • Publication Date: 06-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Many development agencies and governments now seek to engage directly with local communities, whether as a means to the realization of more familiar goals (infrastructure, healthcare, education) or as an end in itself (promoting greater inclusion, participation, well-being). These same agencies and governments, however, are also under increasing pressure to formally demonstrate that their actions ‘work’ and achieve their goals within relatively short timeframes – expectations which are, for the most part, necessary and desirable. But adequately assessing ‘community-driven’ approaches to development requires the deployment of theory and methods that accommodate their distinctive characteristics: building bridges is a qualitatively different task to building the rule of law and empowering minorities. Moreover, the ‘lessons’ inferred from average treatment effects derived from even the most rigorous assessments of community-driven interventions are likely to translate poorly to different contexts and scales of operation. Some guidance for anticipating and managing these conundrums are provided.
  • Topic: Development, Government, Infrastructure, International Development
  • Political Geography: Global Focus, United States of America
  • Author: Eduardo Fernández-Arias, Ricardo Hausmann, Ugo Panizza
  • Publication Date: 04-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: The conventional paradigm about development banks is that these institutions exist to target well-identified market failures. However, market failures are not directly observable and can only be ascertained with a suitable learning process. Hence, the question is how do the policymakers know what activities should be promoted, how do they learn about the obstacles to the creation of new activities? Rather than assuming that the government has arrived at the right list of market failures and uses development banks to close some well-identified market gaps, we suggest that development banks can be in charge of identifying these market failures through their loan-screening and lending activities to guide their operations and provide critical inputs for the design of productive development policies. In fact, they can also identify government failures that stand in the way of development and call for needed public inputs. This intelligence role of development banks is similar to the role that modern theories of financial intermediation assign to banks as institutions with a comparative advantage in producing and processing information. However, while private banks focus on information on private returns, development banks would potentially produce and organize information about social returns.
  • Topic: Development, Industrial Policy, Markets, Banks
  • Political Geography: Global Focus, Global Markets
  • Author: Michael Woolcock
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: A defining task of development is enhancing a state’s capability for policy implementation. In most low- income countries, alas, such capabilities seem to be stagnant or declining, in no small part because dominant reform strategies are ill-suited to addressing complex non-technical aspects. This has been recognized for at least six decades – indeed, it was a centerpiece of Albert Hirschman’s understanding of the development process – yet this critique, and the significance of its implications, remain on the margins of scholarship and policy. Why? I consider three options, concluding that, paradoxically, followers of Hirschman’s approach inadequately appreciated that gaining more operational traction for their approach was itself a type of problem requiring their ideas to embark on ‘a long voyage of discovery’, a task best accomplished, in this instance, by building – and tapping into the distinctive insights of – a diverse community of development practitioners.
  • Topic: Development, Political Economy, Developing World, International Development
  • Political Geography: North America, United States of America
  • Author: James Aird
  • Publication Date: 01-2019
  • Content Type: Journal Article
  • Journal: Harvard Journal of Middle Eastern Politics and Policy
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: As Egypt’s ‘Year of Education’ begins, the government pushes much needed reform in pre-university education across the country. Supported by a $500 million World Bank loan, the government is accelerating efforts to train teachers, build schools, and implement tablet technology in primary and secondary education. The reforms include one ambitious project that is especially deserving of more attention: the expansion of a pilot program adapting Japanese educational techniques to the Egyptian context. At a meeting in Tokyo on February 29th, 2016, Japan’s Prime Minister Shinzo Abe and Egyptian President Abdel Fattah al-Sisi announced a joint partnership that sought to link Egypt to Japan through educational development, in part thanks to al Sisi’s personal admiration for Japan’s education system. As part of the joint partnership, Japanese and Egyptian administrators and policymakers set out to reshape Egyptian pedagogy. Modeled on Japan’s Tokkatsu education system, which refers to a program of “whole child development,” Egypt aims to build schools that place great emphasis on teaching students to be responsible, disciplined, and clean, as opposed to the more traditional model prioritizing higher standardized testing scores. A Tokkatsu-inspired curriculum is already being used at over forty schools that accepted more than 13,000 students in September 2018. While President al Sisi plans to personally monitor the new education system, other MENA states should also watch closely. If it successfully contributes to building Egypt’s human capital and improving students’ competitiveness, other states in the region might consider implementing similar educational policies.
  • Topic: Development, Education, Reform, Children, Partnerships, Youth
  • Political Geography: Japan, Middle East, North Africa, Egypt
  • Author: Julius Caesar Trajano
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: S. Rajaratnam School of International Studies
  • Abstract: The Philippines and China signed a Memorandum of Understanding (MoU) in Cooperation on Oil and Gas Development, demonstrating their willingness to explore joint development as a pathway to collaboration, notwithstanding their territorial disputes. Recent commentaries on joint development are mostly framed on legal challenges, South China Sea (SCS) rows, geopolitics, and state-centric security issues. However, there have been no extensive discussions on the potential contributions from non-state stakeholders that can make joint development agreements environmentally sound, sustainable, and less political. These stakeholders are the oil companies, fishermen and coastal communities. In this regard, this NTS Insight explores potential roles of these stakeholders in promoting joint initiatives to share and develop resources in the SCS. It argues that the engagement and participation of non-state stakeholders in resource sharing and joint management must be pursued to address key non-traditional security challenges in the SCS. It also examines mechanisms to integrate marine environmental protection and sustainable fishing management into joint development agreements.
  • Topic: Security, Development, Treaties and Agreements, Bilateral Relations, Territorial Disputes
  • Political Geography: China, Philippines, Southeast Asia, South China Sea
  • Author: Honzhi Yu, Hongying Wang
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: In contrast to the growing profile of the Chinese government in global governance, the engagement of Chinese industrial actors in global rule making is quite limited and uneven. Some Chinese industrial leaders have shown an ambition to participate in global rule making in their respective realms; most of the others still lack interest or capacity. This policy brief identifies three plausible sources of variation among the Chinese industrial actors. It offers suggestions to Chinese industrial actors and to those concerned about China’s role in global governance, with the purpose of reducing misunderstanding and building trust between Chinese industrial actors and businesses, regulators, non-governmental organizations and stakeholders from other parts of the world in developing global standards for good governance.
  • Topic: Development, Industrial Policy, Governance
  • Political Geography: China, Asia
  • Author: Géraud de Lassus Saint-Genliês
  • Publication Date: 05-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The Global Pact for the Environment (GPE) is a draft treaty prepared in 2017 by a French think tank, Le Club des Juristes, which aims at strengthening the effectiveness of international environmental law (IEL) by combining its most fundamental principles into a single overarching, legally binding instrument. In May 2018, the United Nations General Assembly (UNGA) adopted Towards a Global Pact for the Environment, a resolution that established an intergovernmental working group to discuss the necessity and feasibility of adopting an instrument such as the GPE, with a view to making recommendations to the UNGA. As the working group nears its final session, scheduled for May 20–22, 2019, this paper discusses the extent to which codifying the fundamental principles of IEL into a treaty could increase the problem-solving effectiveness of environmental governance. The analysis suggests that the added value of the proposed GPE (or any such instrument) may not be as evident as what its proponents argue. The paper also highlights the fact that the adoption of such an instrument could generate unintended consequences that would hinder the development of more effective environmental standards in the future.
  • Topic: Climate Change, Development, Environment, United Nations
  • Political Geography: Global Focus
  • Author: Sarah Burch
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Canada cannot deliver on its international obligations under the Paris Agreement without meaningfully engaging its small business sector. Small businesses are more than simple profit-maximizers: they are social and political actors. Policies and incentives to foster sustainability should be carefully tailored to respond to the variety of drivers at each size of firm, rather than employing the same approach across the spectrum. Government can accelerate small business sustainability innovation by providing information, cases and success stories; technical skills and expertise; financial support and incentives; and legitimation.
  • Topic: Climate Change, Development, Environment, Innovation, Sustainability
  • Political Geography: Canada, North America
  • Author: Susan Ariel Aaronson
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Many wealthy states are transitioning to a new economy built on data. Individuals and firms in these states have expertise in using data to create new goods and services as well as in how to use data to solve complex problems. Other states may be rich in data but do not yet see their citizens’ personal data or their public data as an asset. Most states are learning how to govern and maintain trust in the data-driven economy; however, many developing countries are not well positioned to govern data in a way that encourages development. Meanwhile, some 76 countries are developing rules and exceptions to the rules governing cross-border data flows as part of new negotiations on e-commerce. This paper uses a wide range of metrics to show that most developing and middle-income countries are not ready or able to provide an environment where their citizens’ personal data is protected and where public data is open and readily accessible. Not surprisingly, greater wealth is associated with better scores on all the metrics. Yet, many industrialized countries are also struggling to govern the many different types and uses of data. The paper argues that data governance will be essential to development, and that donor nations have a responsibility to work with developing countries to improve their data governance.
  • Topic: Development, Economics, Governance, Data
  • Political Geography: Global Focus
  • Author: Alex He
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: This paper argues that with more objectives added since its inception in 2013, China’s Belt and Road Initiative (BRI) has evolved into a much more expansive grand strategy that includes a package of themes and goals. It examines the policy-making process of the BRI by exploring the motivations behind the plan President Xi Jinping proposed and how the initial Silk Road projects have developed into China’s package of strategies over the past few years. The priorities and performance of China’s investments in the BRI are discussed from the angle of geographical distribution, routes and projects, priority sectors and the connection between the BRI and the previous “going out” strategy China started at the beginning of the twenty-first century. The model and the specific ways China finances and invests in BRI projects, to a great extent, decided the nature of the China-led global infrastructure investment plan. BRI financing is reviewed in detail. Based on the geopolitical and geo-economic analysis of the BRI in the previous parts, the implications of the BRI for global governance as it goes beyond the ambitious infrastructure investment plan are revealed. The risks and problems facing the BRI and the controversy and criticism it has encountered are also addressed. Finally, the paper summarizes the BRI’s ever-expanding themes and the problems and risks it faces, and their implications for the future of the BRI.
  • Topic: Development, Imperialism, Infrastructure, Belt and Road Initiative (BRI), Strategic Competition
  • Political Geography: China, Asia
  • Author: Marsha Cadogan
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: IP rights are often presented as a contentious issue in the development discourse. Some view strong IP rights as an obstacle to domestic development by creating barriers to the use of intangible resources on favourable terms. Others view IP rights as a means to foster growth in domestic industries, encourage innovation and protect foreign firms in high-infringement jurisdictions. These differing global perspectives on whether and, if so, how, IP rights promote development in domestic and global economies often result in policies that are either conducive to development or are challenging as development aids. The SDGs make no explicit reference to IP. However, IP is implicit in either the achievement of the SDGs as a whole, or as an aspect of specific goals, such as innovation. This policy brief deals with the relevance of the SDGs to the creation, use, protection and management of IP in developed economies.
  • Topic: Development, Foreign Direct Investment, Sustainable Development Goals, Innovation, Industry
  • Political Geography: Global Focus
  • Author: Chidi Oguamanam
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The focus of the last two decades (1994–2015) on the world’s Indigenous peoples has highlighted a number of critical issues that are central to Indigenous empowerment and resurgence in the quest for decolonization. The key issues include Indigenous peoples’ full and effective participation in decision making in matters that affect them, the pursuit of culturally sensitive development policies, or what is now termed self-determined development, and effective monitoring or stock-taking mechanisms and processes, not only for planning but also for measuring progress. A combination of factors, including access to information and communications technology amid current Indigenous resurgence and rapidly intensifying Indigenous interest in data sovereignty, places Indigenous peoples in a strong position to further their ongoing investment not only in self-repositioning but also for practical realization of their rights to self-determination.
  • Topic: Development, Decolonization, Indigenous
  • Political Geography: Canada, North America