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  • Author: Benjamin Powell, Alex Nowrasteh, J. R. Clark, Robert A. Lawson, Ryan H. Murphy
  • Publication Date: 05-2014
  • Content Type: Working Paper
  • Institution: The Cato Institute
  • Abstract: The economics literature generally finds a positive, but small, gain in income to native-born populations from immigrants and potentially large gains in world incomes. But immigrants can also impact a recipient nation's institutions. A growing empirical literature supports the importance of strong private property rights, a rule of law, and an environment of economic freedom for promoting long run prosperity. Although the literature on the impact of economic freedom on various social and economic outcomes is quite large, comparatively little work has tried to explain economic freedom as a dependent variable. This paper empirically examines how immigration impacts a region's policies and institutions. We find small but positive increases in institutional quality as a result of immigration.
  • Topic: Economics, Human Welfare, International Trade and Finance, Immigration
  • Author: Tang Xiaoyang
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Asian investors' impact on Africa's cotton, textile, and apparel sectors may have profound consequences for the continent's industrialization and development. As southeast African countries seek to industrialize and build indigenous cotton-textile-apparel value chains, the interactions between Asian—particularly Chinese—investors and African companies become more and more complex. Indeed, Asian investors present both a challenge to and an opportunity for local industries, and southeast African countries need a clear vision and tailored policies to make the most of the opportunities. Asian investors' impact on Africa's cotton, textile, and apparel sectors may have profound consequences for the continent's industrialization and development. As southeast African countries seek to industrialize and build indigenous cotton-textile-apparel value chains, the interactions between Asian-particularly Chinese-investors and African companies become more and more complex. Indeed, Asian investors present both a challenge to and an opportunity for local industries, and southeast African countries need a clear vision and tailored policies to make the most of the opportunities.
  • Topic: Economics, International Trade and Finance
  • Political Geography: Africa, Asia
  • Author: Edwin M. Truman
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper traces the evolution of the Federal Reserve and its engagement with the global economy over the last three decades of the 20th century: 1970 to 2000. The paper examines the Federal Reserve's role in international economic and financial policy and analysis covering four areas: the emergence and taming of the great inflation, developments in US external accounts, foreign exchange analysis and activities, and external financial crises. It concludes that during this period the US central bank emerged to become the closest the world has to a global central bank.
  • Topic: Economics, Foreign Exchange, Financial Crisis
  • Political Geography: United States
  • Author: William R. Cline, Jared Nolan
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper applies time series analysis to distinguish between cyclical and demographic causes of the decline of the labor force participation rate. Some public discussions suggest that the decline of US unemployment from its 2009 peak of 10 percent to about 6 percent by mid-2014 grossly exaggerates recovery because most of the decline reflects the exit of discouraged workers from the labor force. This study finds instead that one-half to two-thirds of the decline in labor force participation by about 3 percentage points from late 2007 to early 2014 is attributable to aging of the population. Although about one-third is found attributable to the lagged influence of high, and especially long-term, unemployment, going forward the potential rebound in the participation rate from recovery is projected to be approximately offset by further aging of the population.
  • Topic: Demographics, Economics, Labor Issues, Population
  • Political Geography: United States
  • Author: Marigold Norman, Smita Nakhooda
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: This paper presents a thorough synthesis of available data to illuminate the current global state of finance for reducing emissions from deforestation and degradation (REDD+). It adds to a growing body of work that seeks to understand the size and composition of finance for REDD+ initiatives, as well as the delivery of climate finance more generally. The analysis shows that aggregate pledges of both public and private finance are significant, at more than US $8.7 billion for the period between 2006 and March 2014, but the pace of new pledges slowed after 2010. The public sector contributes nearly 90% of reported REDD+ finance, with the preponderance of funding concentrated among a relatively small number of donors and recipient countries. The paper analyzes early experience with performance-based finance, although such finance represents less than two-fifths of pledges to date. The extent to which new institutions in the climate finance architecture such as the Green Climate Fund will provide a new and effective channel for increasing support for REDD+ remains to be seen.
  • Topic: Economics, Environment, International Cooperation, Politics
  • Author: Dean Karlan, Bram Thuysbaert, Christopher Udry, Lori Beaman
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: We partnered with a micro-lender in Mali to randomize credit offers at the village level. Then, in no-loan control villages, we gave cash grants to randomly selected households. These grants led to higher agricultural investments and profits, thus showing that liquidity constraints bind with respect to agricultural investment. In loan-villages, we gave grants to a random subset of farmers who (endogenously) did not borrow. These farmers have lower – in fact zero – marginal returns to the grants. Thus we find important heterogeneity in returns to investment and strong evidence that farmers with higher marginal returns to investment self-select into lending programs.
  • Topic: Agriculture, Economics
  • Political Geography: Africa
  • Author: Frances Z. Brown
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: United States Institute of Peace
  • Abstract: The conclusion of the U.S.-led "surge" of 2009 onward and the closure of provincial recon¬struction teams and other local civil-military installations have affected how aid is delivered in Afghanistan's more remote and contested areas. The time is ripe for a recalibration of donor approaches to local governance and development in areas previously targeted by the surge. Specifically, foreign stakeholders should reexamine three central principles of their previous subnational governance strategy. First, donors should revise their conception of assisting service delivery from the previous approach, which often emphasized providing maximal inputs in a fragmented way, to a more restrained vision that stresses predictability and reliability and acknowledges the interlinked nature of politics, justice, and sectoral services in the eyes of the local population. Second, donors should reframe their goal of establishing linkages between the Afghan govern¬ment and population by acknowledging that the main obstacles to improving center-periph¬ery communication and execution are often political and structural rather than technical. Third, donors should revise the way they define, discuss, and measure local governance prog¬ress in contested areas, away from favoring snapshots of inputs and perceptions and toward capturing longer-term changes on the ground in processes, structures, and incentives. The coming political and development aid transition provides an overdue opportunity for Afghan governance priorities to come to the fore. At the same time, the ever growing chasm between Kabul's deliberations on the one hand and local governance as experienced in more remote, insurgency-wracked areas on the other presents renewed risks. In the short term, donors let the air out of the aid bubble carefully. In the long term, resolving Afghanistan's local governance challenges continues to demand sustained commitment and systematic execution.
  • Topic: International Relations, Economics, Foreign Aid
  • Political Geography: Afghanistan, United States
  • Author: Tania Zgajewski
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: EGMONT - The Royal Institute for International Relations
  • Abstract: Like other regions of the world, the EU is developing biofuels in the transport sector to reduce oil consumption and mitigate climate change. To promote them, it has adopted favourable legislation since the 2000s. In 2009 it even decided to oblige each Member State to ensure that by 2020 the share of energy coming from renewable sources reached at least 10% of their final consumption of energy in the transport sector. Biofuels are considered the main instrument to reach that percentage since the development of other alternatives (such as hydrogen and electricity) will take much longer than expected.
  • Topic: Climate Change, Economics, Energy Policy, Environment, Biofuels
  • Political Geography: Europe
  • Author: Xavier Vanden Bosch
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: EGMONT - The Royal Institute for International Relations
  • Abstract: Despite renewed interest in an EU industrial policy, the concept remains particularly elusive because it has no universal definition. This paper relies on a broad and inclusive definition of industrial policy proposed by Warwick (in an OECD working paper) to provide a clearer picture of what the concept encompasses when applied to the EU. It therefore includes an original visual taxonomy of the EU policies that constitute industrial policy. It can serve as a guiding framework for reflecting on industrial policy in the EU.
  • Topic: Economics, Industrial Policy, Political Economy, Governance
  • Political Geography: Europe
  • Author: Ansgar Belke, Timo Baas
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Member countries of the Economic and Monetary Union (EMU) initiated wide-ranging labour market reforms in the last decade. This process is ongoing as countries that are faced with serious labour market imbalances perceive reforms as the fastest way to restore competitiveness within a currency union. This fosters fears among observers about a beggar-thy-neighbour policy that leaves non-reforming countries with a loss in competitiveness and an increase in foreign debt. Using a two-country, two-sector search and matching DSGE model, we analyse the impact of labour market reforms on the transmission of macroeconomic shocks in both non-reforming and reforming countries. By analysing the impact of reforms on foreign debt, we contribute to the debate on whether labour market reforms increase or reduce current account imbalances.
  • Topic: Debt, Economics, Politics, Labor Issues, Reform
  • Author: Karsten Mau
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: The paper shows that the relationship between GDP per capita and levels of specialization can be predicted differently depending on whether the intensive or the extensive margin is considered. It shows that at the extensive margin countries continuously diversify their exports and that cross-sectional patterns can be captured well by a gravity equation. Prior studies documenting nonmonotone patterns with respecialization appear to have obtained their results from sample-selection bias, the omitted log-transformation of the income variable, and the neglect of control variables. Furthermore, results from dynamic panel analyses (system GMM) suggest that causality goes in both directions, with income having a contemporaneous impact on diversification, while the feedback effect of diversification on GDP per capita may be delayed. This pattern fits into theoretical rationales that view diversification as driven by technology or efficiency and where diversification generates additional revenues as it proves to be persistent.
  • Topic: Economics, International Political Economy, International Trade and Finance, Science and Technology
  • Author: Anthony H. Cordesman
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: It is unclear that the United States has any current assessments and strategy to deal with either these governance or economic issues. If it does, it has provided no transparency as to what these plans are, and has failed to develop any effective public measures of the effectiveness of its civil aid programs after more than 10 years of effort, and in spite of the fact that the civil dimension of counterinsurgency efforts is at least as important as the military efforts. It is also important to note that World Bank and UN reporting show the same lack of progress in governance, economics, and human development in Pakistan as in Afghanistan.
  • Topic: Economics, Politics, World Bank
  • Political Geography: Pakistan, Afghanistan, United States, India
  • Author: Sadika Hameed
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: Relations between the United States and Pakistan have begun to improve after several years of heightened tensions. Yet many challenges remain. Among them is how to improve Pakistan's economy. Its economic crisis is one of the main sources of its internal tensions, but multiple opportunities exist to improve its economic performance. The policy debate in the United States, however, is still dominated by a focus on terrorism and extremism. While Pakistan's stability is a natural concern for the United States, focusing primarily on security issues limits the options for improving stability.
  • Topic: International Relations, Security, Economics
  • Political Geography: Pakistan, United States
  • Author: Medin Hege
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: This paper presents a simple new trade theory model with results that contradict those from standard model. A home market effect in domestic sales of manufactured goods is found to co-exist with a reversed home market effect in exports of manufactured goods. In consequence, for a small country the number of manufacturing firms that sell in the domestic market is lower than proportional whereas the number of exporters is higher than proportional to country size. The proportion of firms that export, decreases with relative size of the home market. Empirical support for the latter prediction is found in a cross-sectional dataset on firm level exports for 116 countries.
  • Topic: International Relations, Economics, International Political Economy, International Trade and Finance
  • Author: Innwon Park
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: Both intra - and inter-regional trade agreements are proliferating in East Asia. Deepening regional interdependence through trade and investment, and the necessity for stability and revitalization of the regional economy since the East Asian financial crisis in the late 1990s led the East Asian countries to adopt discriminatory RTAs. Accordingly, East Asian commercial policy stance has shifted from unilateral to bilateral to mega-lateral liberalization. This report attempts to assess the East Asian countries' efforts to liberalize the regional market by cooperating with each other. We investigate (i) why RTAs have been proliferating in East Asia, (ii) what the main characteristics of East Asian RTAs are, (iii) whether the East Asian countries are natural trading partners for each other to enhance welfare gains from RTAs, and (iv) whither East Asian RTAs. From our analysis, we recommend following policy options. First, East Asian RTAs should follow an expansionary RTA path (for example, AFTA and five ASEAN+1 FTAs → RCEP and/or TPP → FTAAP). Second, as we consider the high dependence on external economies through global trade and investment, East Asia needs to cooperate with major external trading partners by forming cross-regional RTAs with the EU and US. Third, in order to enable East Asian economies to take the more desirable expansionary RTA path, harmonizing or simplifying ROO, the cumulation of value contents among the RTA members in East Asia, and enhancing trade facilitation should be a prerequisite considering the complicated web of RTAs, regional production networks, and the consolidation of the FTAAP.
  • Topic: Economics, International Trade and Finance, Regional Cooperation
  • Political Geography: East Asia, Asia
  • Author: Rich Karl, Magda Rich, P.G. Chengappa
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: Despite estimates that the global butterfly trade generates over US$100 million annually in sales of pupae for exhibitions and deadstock for a range of collector and artisanal uses, almost no research has been conducted that unpacks the dynamics of these value chains. This paper remedies this gap by highlighting the governance structure of the value chain, with important implications on the benefits for chain participants, upgrading strategies, sectoral sustainability, and the potential for new market entrants. This research on live butterfly chains reveals the fragility of current modes of economic organization that promote overproduction as threatening the long-term viability for the industry as a whole. The authors propose an alternative governance model based on the use of individually transferrable quotas, or ITQs, as a means of improving the performance of certain butterfly value chains.
  • Topic: Economics, Government, International Trade and Finance, Governance
  • Author: Rich Karl, Magda Rich, Ganga Changappa, Babu Raghavan
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: In many parts of the developing world, those with physical or mental handicaps are often considered to be a burden on society, with limited to no remunerative activities available in the workforce. Activities such as butterfly farming, which require precision and attention to detail, are potentially relevant for disadvantaged groups as a source of livelihoods. At the same time, such activities can be integrated with community-led conservation efforts as well. We provide a case study of the development of a butterfly garden at the Swastha Centre for Special Education and Rehabilitation in the Kodagu area of Coorg, a region in the state of Karnataka in India through which conservation-based activities are integrated with special education in a manner than builds skills, improves livelihoods, and serves as an important resource for environmental education. Our case demonstrates a scalable means by which butterflies can be used to educate, improve the environment, and offer livelihoods to the disadvantaged in a country where such opportunities are greatly needed.
  • Topic: Economics, Education, Environment, Governance
  • Political Geography: India, Karnataka
  • Author: Rich Karl, Magda Rich, P.G. Chengappa, Arun Muniyappa, Yadava C.G, Ganashruthi M.K., Pradeepa Babu B.N., Shubha Y.C.
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: Certification programs has been employed in many agricultural products as a means to encourage and communicate compliance with standards associated with various attributes, such as organic, fair-trade, GMO free, and eco-friendly, among others. Such programs further seek to provide added value, through a price premium, to producers and supply chain actors associated with the label. In this paper, we review a number of global labeling and certification programs that could add value for coffee farms in India through the promotion of conservation and environmental protection. We provide results from a survey conducted on a sample of coffee farms in Coorg district, India to assess their awareness and perceptions related towards certified coffee and environmental conservation in general. Survey results illustrate strong positive associations with the environment by coffee planters, particularly among certified and organic producers. However, price premiums for certified and organic coffee are relatively small. While the potential of conservation-oriented certification for coffee in Coorg could be relatively limited outside of a few individual-level niches, branding Coorg more generally as a conservation-oriented region could hold promise, leveraging and personalizing the uniqueness of the natural offerings from Coorg and tapping into burgeoning associations with place and region in India.
  • Topic: Agriculture, Economics, Environment, International Trade and Finance
  • Political Geography: India
  • Author: Magda Rich, P.G. Chengappa, Arun Muniyappa, Pradeepa Babu B.N., Karl M. Rich, Yadava C.G.
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: The Indian coffee sector is at an important transition point, increasingly stuck in the middle between quality and value segments of the market. A potential niche for India is in the development of eco-friendly (green) coffees, leveraging the natural environment and biodiversity present in many regions. In this study, we conducted a value chain assessment of the coffee sector in Coorg, a major production area in India, to identify the potential entry points and constraints to a conservation-oriented strategy of upgrading. The results highlight that coffee value chains in Coorg are fragmented and largely uncoordinated, with innovative upgrading efforts largely individually motivated. This suggests that integrating conservation principles in a broad-based branding strategy could be difficult at the level of the chain without institutional support or the entry of chain champions. On the other hand, integrating conservation as a diversification activity e.g. through the development of butterfly gardens for tourism, could provide a low-cost way of adding value for farmers while promoting good environmental stewardship.
  • Topic: Economics, Environment, Biosecurity
  • Political Geography: India
  • Author: Medin Hege
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: The new trade theory, which emerged in the early 1980s, emphasised economies of scale and market failures as driving forces behind international trade. As opposed to the earlier theory, which mainly assumed perfect competition, the new trade theory provided a rationale for industrial policy. This article shows how industrial policy targeting specific firms or industries may be socially desirable within the new trade theory framework. Models from new economic geography and the more recent 'new' new trade theory with heterogeneous firms are also discussed. The main focus is put on models with pecuniary externalities.
  • Topic: Economics, International Cooperation, International Trade and Finance, Political Economy, Politics
  • Author: Tiberius Barasa, Andvig Jens Chr
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: The starting point of the paper is the spatial characteristics of slums when it seeks to explain why rulers tend to neglect the welfare of their dwellers: they don't have to. Their economies are fairly closed. While located close to the centers of power, their high population density implies that they cover small space and are easy to cordon off in case of danger. The ease of control from the outside allows rulers to spend less attention to the control of their complex inside. Particularly when a slum is based on shack architecture, the high degree of mutual monitoring among dwellers may cause sharp shifts in the control regime of crime. The emphasis on spatial configurations motivates the focus on one specific slum: Mathare Valley. Paths back to colonial rule are outlined. The paper is stylistically unkempt.
  • Topic: Economics, Human Rights, Human Welfare, Politics
  • Political Geography: Europe, Eastern Europe
  • Author: Leonard Seabrooke, Duncan Wigan
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Norwegian Institute of International Affairs
  • Abstract: This working paper creates a theoretical framework to explain how Global Wealth Chains are created, maintained, and governed. We draw upon different strands of literature, including scholarship in international political economy and economic geography on Global Value Chains, literature on finance and law in institutional economics, and work from economic sociology on network dynamics within markets. This scholarship assists us in highlighting three variables in how Global Wealth Chains are articulated and change according to: (1) the complexity of transactions, (2) regulatory liability and (3) innovation capacities among suppliers of products used in wealth chains. We then differentiate five types of global value chain governance - market, modular, relational, captive, and hierarchy - which range from simple 'off shelf' products shielded from regulators by advantageous international tax laws to highly complex and flexible innovative financial products produced by large financial institutions and corporations. This paper highlights how Global Wealth Chains intersect with value chains and real economies, and provides three brief case studies on offshore shell companies, family property trusts, and global-scale corporate tax avoidance.
  • Topic: Economics, International Cooperation, Politics, Governance
  • Author: Shannon K. O'Neil
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: North America was once called the New World. The people, their ideas, and the resources of the continent shaped the histories of the Old World—East and West. Today, North America is home to almost five hundred million people living in three vibrant democracies. If the three North American countries deepen their integration and cooperation, they have the potential to again shape world affairs for gen-erations to come.
  • Topic: Security, Economics, Energy Policy, International Trade and Finance
  • Political Geography: United States, America
  • Author: Bowman Kimberly
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Oxfam Publishing
  • Abstract: This report summarizes an internal review of Women‟s Economic Leadership (WEL) programming in Asia. Conducted by an internal MEL advisor in 2013–2014, the review draws upon project documentation, evaluation reports, site visits and staff and partner interviews to try and reflect how WEL programming is being implemented by Oxfam and partners in Asia. Part of a formative evaluation activity, the report aims to help gather and consolidate good practice, based on what Oxfam project teams and partners have learned through recent experience and evaluation. There are at least four distinct topics covered in this report that may be of specific interest to readers.
  • Topic: Economics, Gender Issues, Sociology
  • Political Geography: Asia
  • Author: Paul Kriews
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: Institute for Development and Peace
  • Abstract: Natural resources play a significant role for a country's development: The beneficial dynamics of a prosperous commodity sector have therefore long been considered as a key factor for a country's positive economic development. Paradoxically, however, one can observe frequently in resource-rich countries that the commodity sector has no positive effect, but rather fatal implications for a country's development. The assumption that resource-rich countries use their wealth for the advancement of sustainable development appears to be incomplete. This paper identifies the basic problems and dangers associated with resource wealth; possible options for action are identified and traced, using the example of Mongolia. The central question is whether Mongolia can escape the so-called resource curse. In this paper, a set of criteria is used, to elaborate whether the necessary conditions for a responsible use of the existing resource wealth in Mongolia are given.
  • Topic: Economics, Environment, Natural Resources, Governance
  • Author: Robert Nalbandov
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: This monograph analyzes the interconnections between the democratic institutionalization of the newly independent states of Ukraine, Georgia, and Belarus, their political (in)stability, and economic development and prosperity. By introducing the concept of regime mimicry into the field of public administration, this monograph extends the epistemological frameworks of the democratization school to the phenomenon of political culture. Successes and failures of the democratic institutionalization processes in these countries largely depend on the ways their institutional actors reacted to internal and external disturbances of their domestic political, econmic, and cultural environments. While Georgia's political culture revealed the highest degree of flexibility in accepting the externally-proposed institutional frameworks and practices, the bifurcate political culture in Ukraine impeded its democratic institutionalization, while the rigid political culture in Belarus completely stalled the process of institutional transformations.
  • Topic: Democratization, Development, Economics
  • Political Geography: Ukraine, Asia, Georgia, Belarus
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: International Crisis Group
  • Abstract: Pakistan's relations with Afghanistan have been largely characterised by mutual mistrust and devised through a narrow security prism. While it will require considerable effort to end deep-seated animosity, both countries share close ethnic, linguistic, religious and economic ties. Longstanding Afghan migration to the territories that now compose Pakistan makes them an integral part of Pakistani society. Yet, military-devised interventionist policies, based on perceived national security interests, including support for Afghan, mainly Pashtun, proxies, have marred the relationship. The incoming Afghan President Ashraf Ghani Ahmadzai has offered to expand bilateral ties, providing Islamabad fresh opportunities to improve the relationship. Prime Minister Nawaz Sharif has responded positively, but the Pakistani military and civilian leadership's preferences toward Kabul are diverging further as Afghanistan's transition draws closer. By recalibrating relations toward economic ties and seeking solutions to the presence of millions of Afghan refugees on its soil, Pakistan could engage more constructively with its neighbour.
  • Topic: Conflict Resolution, Economics, Islam, Bilateral Relations
  • Political Geography: Pakistan, Afghanistan, South Asia, Central Asia
  • Author: Emma Seery, Ana Arendar
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Oxfam Publishing
  • Abstract: Nthabiseng was born to a poor black family in Limpopo, a rural area in South Africa. On the same day, Pieter was born nearby in a rich suburb of Cape Town. Nthabiseng's mother had no formal schooling and her father is unemployed, whereas Pieter's parents both completed university education at Stellenbosch University and have well-paid jobs.
  • Topic: Corruption, Economics, Gender Issues, Social Stratification
  • Political Geography: South Africa
  • Author: Arvind Subramanian, Kevin Stahler
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: Prima facie, competitiveness adjustments in the eurozone, based on unit labor cost developments, appear sensible and in line with what the economic analyst might have predicted and the economic doctor might have ordered. But a broader and arguably better—Balassa-Samuelson-Penn (BSP)—framework for analyzing these adjustments paints a very different picture. Taking advantage of the newly released PPP-based estimates of the International Comparison Program (2011), we identify a causal BSP relationship. We apply this framework to computing more appropriate measures of real competitiveness changes in Europe and other advanced economies in the aftermath of the recent global crises. There has been a deterioration, not improvement, in competitiveness in the periphery countries between 2007 and 2013. Second, the pattern of adjustment within the eurozone has been dramatically perverse, with Germany having improved competitiveness by 9 percent and with Greece's having deteriorated by 9 percent. Third, real competitiveness changes are strongly correlated with nominal exchange rate changes, which suggests the importance of having a flexible (and preferably independent) currency for effecting external adjustments. Fourth, internal devaluation—defined as real competitiveness improvements in excess of nominal exchange rate changes—is possible but seems limited in scope and magnitude. Our results are robust to adjusting the BSP framework to take account of the special circumstances of countries experiencing unemployment. Even if we ignore the BSP effect, the broad pattern of limited and lopsided adjustment in the eurozone remains.
  • Topic: Economics, Industrial Policy, International Trade and Finance, Monetary Policy, Financial Crisis
  • Political Geography: Europe
  • Author: Joseph E. Gagnon, Tamim Bayoumi, Christian Saborowski
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: We use a cross-country panel framework to analyze the effect of net official flows (chiefly foreign exchange intervention) on current accounts. We find that net official flows have a large but plausible effect on current account balances. The estimated effects are larger with instrumental variables (42 cents to the dollar on average compared with 24 without instruments), reflecting a possible downward bias in regressions without instruments owing to an endogenous response of net official flows to private financial flows. We consistently find larger impacts of net official flows when international capital flows are restricted and smaller impacts when capital is highly mobile. A further result is that there is an important positive effect of lagged net official flows on current accounts that we believe operates through the portfolio balance channel.
  • Topic: Economics, Foreign Exchange, Monetary Policy
  • Author: Adam S. Posen, David G. Blanchflower
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Oxfam Publishing
  • Abstract: In this paper we examine the impact of rises in inactivity on wages in the US economy and find evidence of a statistically significant negative effect. These nonparticipants exert additional downward pressure on wages over and above the impact of the unemployment rate itself. This pattern holds across recent decades in the US data, and the relationship strengthens in recent years when variation in participation increases. We also examine the impact of long-term unemployment on wages and find it has no different effect from that of short-term unemployment. Our analysis provides strong empirical support, we argue, for the assessment that continuing labor market slack is a key reason for the persistent shortfall in inflation relative to the Federal Open Market Committee's (FOMC) 2 percent inflation goal. Further, we suggest our results point towards using wage inflation as an additional intermediate target for monetary policy by the FOMC.
  • Topic: Economics, Markets, Labor Issues
  • Political Geography: United States, Middle East
  • Author: Yukon Huang, Canyon Bosler
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Much of the media coverage of China's economy suggests that the country is headed for a financial crisis. China's mountain of debt is decried, local government finances are labeled menacing, and a property bubble is called disastrous. But this picture is misleading. While China has serious debt problems, with prudent macroeconomic policies and productivity-enhancing structural reforms, the challenges should be manageable if underlying fiscal issues and growth-related reforms are addressed.
  • Topic: Debt, Economics, Reform
  • Political Geography: China, East Asia
  • Author: Jeronim Capaldo
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Global Development and Environment Institute at Tufts University
  • Abstract: According to its proponents, the Trans-Atlantic Trade and Investment Partnership will stimulate growth in Europe and in the US. Projections endorsed by the European Commission point to positive, although negligible, gains in terms of GDP and personal incomes. In a paradox, these projections also show that any gains in Trans-Atlantic trade would happen at the expense of intra-EU trade reversing the process of European economic integration. Furthermore, recent literature has pointed out several problems in the most influential assessment of the TTIP's effects. Projections by different institutions have been shown to rely on the same Computable General Equilibrium model that has proven inadequate as a tool for trade policy analysis. In this paper we assess the effects of TTIP using the United Nations Global Policy Model, which incorporates more sensible assumptions on macroeconomic adjustment, employment dynamics, and global trade. We project that TTIP will lead to a contraction of GDP, personal incomes and employment. We also project an increase in financial instability and a continuing downward trend in the labor share of GDP. Evaluated with the United Nations model, TTIP appears to favor economic dis-integration, rather than integration, in Europe. At a minimum, this shows that official studies do not offer a solid basis for an informed decision on TTIP.
  • Topic: Economics, Globalization, International Trade and Finance, Labor Issues
  • Political Geography: United States, Europe, United Nations
  • Author: Solomon Dersso
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: International Peace Institute
  • Abstract: The Intergovernmental Authority on Development (IGAD), composed of Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan, and Uganda with its secretariat headquartered in Djibouti, covers northeast Africa, a region continuing to experience major changes, arguably more than any other part of the continent. This is the only region of Africa where colonially drawn borders have been redrawn. In contrast to other regions of Africa, this is also where the prospect of further redrawing of borders—with Somaliland seeking international recognition as a separate state—remains a real possibility.
  • Topic: Conflict Prevention, Security, Development, Economics, Environment, Regional Cooperation, Governance
  • Political Geography: Uganda, Kenya, Africa, Sudan, Ethiopia, Somalia, South Sudan
  • Author: Daniel H. Rosen
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: PRESIDENT XI JINPING ANNOUNCED a sweeping overhaul for China's economy in November 2013, with pledges to make market forces decisive, treat homegrown and foreign investors with the same laws and regulations, and change the mission statement of the government. The reform program, known as the Decisions plan and presented at the Communist Party leadership's Third Plenum meeting, is comprehensive and marks a turning point in China's modern history. The degree of boldness also indicates that after 35 years of world-beating economic performance, China's development model is obsolete and in need of urgent, not gradual, replacement. To justify the risks, President Xi quoted an impassioned plea for policy modernization by his predecessor Deng Xiaoping: the only way to avoid a dead end – a blind alley – is to deepen reform and opening both at home and with the world.
  • Topic: Economics, International Trade and Finance, Political Economy, Reform
  • Political Geography: China
  • Author: Jamal Ibrahim Haidar, Takeo Hoshi
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: Improving the environment for business is an important part of the growth strategy of Abenomics. As the KPI (Key Performance Indicator) for this effort, the Abe Administration aims to improve Japan's rank in the World Bank Doing Business Ranking from the current #15 among high-income OECD countries to one of the top three. This paper clarifies what it takes for Japan to be among top three countries in terms of ease of doing business. By looking at details of the World Bank Doing Business ranking, we identify various reforms that Japan could implement to improve the ranking. Then, we classify the reforms into four groups depending on whether the reform requires legal changes and whether the reform is likely to face strong political resistance. By just doing the reforms that do not require legal changes and are not likely to face strong political opposition, Japan can improve the ranking to 9th. To be in the top 3, Japan would need to implement all the reforms except for those that require changing the laws and are likely to face strong political resistance, even under the unrealistic assumption that the other countries do not reduce the cost of doing business. Thus, in order to be one of the top three countries among OECD countries in terms of ease of doing business, Japan would most likely need to carry out all the reforms identified in this paper.
  • Topic: Economics, International Trade and Finance, Reform
  • Political Geography: Japan
  • Author: Colby Farber
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Aspen Institute
  • Abstract: The 2014 Financial Security Summit examined how policymakers, the financial services industry, advocates, and academics can advance new policies and products to make it easier for households to build financial security and to reinvigorate the American Dream.
  • Topic: Debt, Economics, Governance, Reform
  • Political Geography: United States
  • Author: Richard P. Adler
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Aspen Institute
  • Abstract: In 1987, back at the dawn of the Internet age, two studies were published that provided perceptive looks at the evolution of electronic networks and the impact that they would likely have on the way business is conducted in the U.S. and globally. Both studies concluded that rapidly evolving information technologies were helping to break down old hierarchical business structures in favor of new, more decentralized models of economic activity.
  • Topic: Economics, Science and Technology, Communications, Mass Media
  • Political Geography: United States
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: Aspen Institute
  • Abstract: Americans have fallen out of the saving habit. According to the Bureau of Economic Analysis, the household saving rate, which fell to low single digits in the run-up to the 2007–08 financial crisis, is just 3.8% today, and over 75% of Americans do not have enough saved to cover six months' expenses, whether the need arises because of job loss or an unexpected life event. Projecting the current rate forward, and adjusting only for the aging of the population, we found that the saving rate will fall to an extremely low 3% in the 2030s.
  • Topic: Debt, Economics, Governance, Reform
  • Political Geography: America
  • Publication Date: 05-2014
  • Content Type: Working Paper
  • Institution: Aspen Institute
  • Abstract: This report is based on the themes and messages discussed during the Business Opportunities in Housing for the Base of the Pyramid event held in São Paulo, Brazil on 2 September 2013. The event brought together between key actors developing housing solutions for low-income communities in Brazil. More than 70 members from the United Nations Development Programme in Brazil, city government, civil society, real estate developers, private-sector companies and investors attended this invite-only event, a collaborative effort between Business Call to Action (BCtA) and Aspen Network of Development Entrepreneurs (ANDE) Brazil Chapter which enabled participating stakeholders to discuss challenges and solutions.
  • Topic: Civil Society, Economics, Human Welfare, Poverty
  • Political Geography: Brazil, South America, Latin America
  • Author: Jefferson Fox, Duong Nong, Miguel Castrence, Tomoaki Miura, James Spencer, Qi Chen
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: Vietnam is experiencing one of the greatest urban transitions over the last two decades after the embankment of "Doi Moi" policy in 1986. The urban transition is vividly manifested in social, economic and physical aspects. While the urbanization can boost the industrialization and modernization goals of the country, it can cause adverse impact on natural environment as well as society and economy. To support a sound urban development plan, it is important that data and analysis on urban built-up areas are accurate and timely available. In this study, the Support Vector Machine Classification Algorithm (SVM) was applied to the multi-temporal image stacks of Landsat Thematic Mapper (TM) and Enhanced Thematic Mapper (ETM) from 1993 to 2010 to quantify the changes of built-up areas over three time periods, 1993-2001, 2001-2006, and 2006-2010 and across twelve buffer zones. Our SVM classification algorithm has produced a highly accurate map of land use/land cover change with the overall accuracy of 95%. The study showed that most of the urban expansion occurred in the periods 2001-2006 and 2006–2010. The analysis was strengthened by the analysis of population census and other socio-economic figures. Through out this study, an implicit correlation between the urban growth, the trend of spatial expansion and other relevant geographic and socio-economic factors can be proposed. Result of this study would allow urban planners and decision makers to timely evaluate and adjust accordingly the urban growth and be aware of the sustainable usage of the invaluable natural lands and other environmental, social and economical problems.
  • Topic: Economics
  • Political Geography: Vietnam
  • Author: Chinh C. Tran, John F. Yanagida
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: Occurrence of the Highly Pathogenic Avian Influenza subtype H5N1 usually results in the complete loss of the producer's entire flock due to high mortality rate and stamping out conducted to contain the virus. This study explores the expected economic impacts of HPAI H5N1 on smallholder duck producers in the Red River Delta of Vietnam. A conceptual model is developed to describe how a producer responds at each week of duck production to maximize profit and evaluate expected profits/losses of the producer in light of HPAI H5N1. The results suggests that in the case of no disease occurrence, the optimal time to sell ducks is at week 10 of the production cycle when ducks reach the age of 8 weeks. Maximum profit gained is US$805 for a producer with an average flock size of 794 ducks. However, the producer would suffer serious losses once the disease occurs. The expected investment loss is far higher than the maximum profit received at each production cycle and is estimated to be 3 times higher.
  • Topic: Economics, Health, Infectious Diseases, Food
  • Political Geography: Vietnam
  • Author: Dieter Ernst
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: China's new strategy to upgrade its semiconductor industry (outlined in the "Guidelines to Promote National Integrated Circuit Industry Development," June 24, 2014), seeks to move from catching-up to forging ahead in semiconductors, by strengthening simultaneously China's integrated circuit (IC) design industry and domestic IC foundry services.
  • Topic: Economics, Globalization, Industrial Policy, Markets, Science and Technology
  • Political Geography: China, Asia
  • Author: Amr Adly
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Egypt's big business community provided strong, early support for the military- backed government that came to power in June 2014. But despite that endorsement, the regime of President Abdel Fattah el-Sisi has made changes that are putting pressure on the private sector. Still, there are signs that some of those shifts are only temporary and that they have been taken out of necessity as the new political leadership attempts to repair a struggling economy. While elements of state-business relations may be reconfigured, big business remains essential to Egypt's long-term recovery.
  • Topic: Economics, Political Economy
  • Political Geography: Egypt
  • Author: Roberto Alvarez, José De Gregorio
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: Latin American performance during the global fi nancial crisis was unprecedented. Many developing and emerging countries successfully weathered the worst crisis since the Great Depression. Was it good luck? Was it good policies? In this paper we compare growth during the Asian and global fi nancial crises and fi nd that a looser monetary policy played an important role in mitigating crisis. We also fi nd that higher private credit, more fi nancial openness, less trade openness, and greater exchange rate intervention worsened economic performance. Our analysis of Latin American countries confi rms that eff ective macroeconomic management was key to good economic performance. Finally, we present evidence from a sample of 31 emerging markets that high terms of trade had a positive impact on resilience.
  • Topic: Economics, Global Recession, Monetary Policy, Financial Crisis
  • Political Geography: Asia, Latin America
  • Author: Alex He
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: As the largest emerging economy, China believes that the Group of Twenty (G20), instead of the Group of Eight (G8), is the ideal platform for its participation in global governance. This paper examines the reasons why China joined the G20 rather than the G8, and then focuses on a detailed review of China's participation in G20 summits since the enhanced forum began in 2008. China took a very active and cooperative attitude in dealing with the global financial crisis in 2008-2009. The paper observes that China also insisted on its own agenda for reforms to the international monetary system, through reforms to the international financial institutions that manage it — in particular, raising the number of voting shares and the representation of developing countries at the IMF and the World Bank. Based on the reviews of China's performance in the G20 summits since 2008, the paper explores China's policy making through its participation in the G20, determining that it is shaped by several major economic departments in addition to the Ministry of Foreign Affairs, and coordinated by a vice premier responsible for economic and financial affairs. The paper concludes that China has gained immensely from its participation in the G20. Most importantly, China entered the centre stage of global economic governance through the G20, which allowed the country to demonstrate that it is a responsible great power, and communicate and maintain relations with other major powers. The main challenges China has faced since joining the G20, from the perspective of some Chinese scholars, are a lack of capacity for agenda setting and shaping initiatives, as well as inadequate communication and coordination among different government departments and between the Sherpa and financial tracks of the G20.
  • Topic: Economics, International Political Economy, International Trade and Finance, International Monetary Fund, Global Recession, Financial Crisis, World Bank
  • Political Geography: China
  • Author: Bruce Muirhead
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Since its widespread settlement by Europeans in the 1840s, New Zealand (NZ) has been an agricultural economy. As has been pointed out “there [has been] no serious challenge to the fundamental precept that the country's economy rested on an agricultural foundation” (Macdonald and Thomson 1987, 231), and dairy has been a significant focus of that base. Dairy production was introduced to New Zealand with the clear intent to establish New Zealand as an adjunct to the economic needs of Britain (Hawke 1985). Indeed, the closeness of the relationship between “the Britain of the south” and the metropolitan centre is one of the fundamental characteristics of any environmental history of NZ agriculture (Pawson 2008). This would persist in a material sense for more than a century, until the United Kingdom joined the European Community (EC) in 1973.
  • Topic: Economics, Food
  • Political Geography: Britain, United Kingdom, Europe, New Zealand
  • Author: Alex He
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The G20 has emerged as the lynchpin of China's involvement in global economic governance. It remains the only economic institutional setting where the country can operate on par with major Western powers. China has a strong interest in maintaining the status of the G20 as the premier forum for economic cooperation, and a vested interest in ensuring that the G20 does not degrade into yet another “talk shop” of multilateral diplomacy. However, the Chinese leadership's current approach to the G20 is not driven by a desire to position the country as a leading agenda setter. Instead, China's main policy priority is ensuring that the country is treated as an equal and respected partner. China recognizes that in many ways it is still in a comparatively weak position and does not have the institutional capabilities and talents needed to operate in global financial and economic institutions such as the G20.
  • Topic: Economics, International Cooperation, International Trade and Finance
  • Political Geography: United States, China
  • Author: Domenico Lombardi, Skylar Brooks, Ezra Suruma
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: On August 7 and 8, 2014, CIGI's Global Economy Program co-hosted a conference with Uganda Debt Network to discuss African perspectives on sovereign debt restructuring. The proceedings, opened by the vice president of Uganda, took place in Kampala, and featured several distinguished participants — including current and former finance ministers and central bank governors, academics and practitioners, and civil society representatives — from Uganda, Liberia, Cameroon, Ghana, Nigeria, Zambia and Zimbabwe. Participants also came from civil society organizations and intergovernmental institutions representing broader groups of African countries or the continent as a whole.
  • Topic: Debt, Development, Economics
  • Political Geography: Uganda, Africa, Liberia, Zimbabwe, Nigeria, Ghana, Cameroon
  • Author: Victor D. Cha
  • Publication Date: 12-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: As a result of a speech delivered by Republic of Korea (ROK) president Park Geun- hye in Dresden, Germany, on March 28, 2014, the topic of unification of the Korean peninsula has been on the minds of many. This is, of course, not the first time that unification has been in the news. During the Cold War era, unification was defined as the absolute military victory of one side over the other. In Korean, this was known as “songgong t'ongil” or “p'ukch'in t'ongil” (“march north” or “unification by force”). In political science literature influenced by the European experience, it was defined as the perfect integration of the two countries. After the reunification of Germany on October 3, 1990, unification was seen as the economic and political absorption of one side by the other. And yet at other times, it was defined, by both North and South Korea, as the imperfect operation of one country, two systems. For a decade during the period of “sunshine” policy, 1997–2007, unification was defined as something to be avoided for generations. It was framed as an outcome that was too difficult to contemplate, too dangerous to suggest, and too expensive to afford.
  • Topic: Security, Economics, Bilateral Relations
  • Political Geography: South Korea, North Korea, Germany