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101. Spring 2020 edition of Strategic Visions

Author:
Alan McPherson
Publication Date:
03-2020
Content Type:
Journal Article
Journal:
Strategic Visions
Institution:
Center for the Study of Force and Diplomacy, Temple University
Abstract:
Contents News from the Director Spring 2020 Colloquium …………………2 Spring 2020 Prizes……………………......3 Diplomatic History ……………………….3 Non-Resident Fellow, 2020-2021………...4 Funding the Immerman Fund……………..4 Thanks to the Davis Fellow ………………4 News from the Community …………………... 5 Note from the Davis Fellow ………………….. 9 Spring 2020 Interviews Timothy Sayle ……………………….…..10 Sarah Snyder ………………………….…13 Book Reviews Lincoln, Seward, and US Foreign Relations in the Civil War Review by Alexandre F. Caillot …15 How to Hide an Empire: A History of the Greater United States Review by Graydon Dennison …..17 Enduring Alliance: A History of NATO and the Postwar Global Order Review by Stanley Schwartz ……19
Topic:
International Relations, Foreign Policy, NATO, Empire, and Diplomatic History
Political Geography:
United States, Europe, and Global Focus

102. Work for Others, not Yourself: Globalization, Protectionism and Europe’s Quest for Strategic Autonomy

Author:
Fredrik Erixon
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Protectionism and mercantilism are yet again at the centre of global economic policy. “America First” is the guiding ethos in a good part of US international economic policy. Beijing is taking a larger stake in China’s economy and hand out privileges to domestic firms. Europe is increasingly occupied by achieving “strategic autonomy” and to create European champions at the expense of competition. Old and disreputed economic doctrines are getting a new lease on life. Behind this new orientation in international economic policy stands the old idea that a strong economy is an economy not dependent on others. Human prosperity – our story of rags to riches – tells a very different story. Prosperity is generated when people collaborate and improve our collective intelligence. Open economies are much better at creating wealth because they operate by the principle that people should work for others, not themselves. They specialize – and in the process, they get far more dependent on others. Dependency is a factor of success; economic sovereignty is a sure way of depriving people of opportunity and prosperity.
Topic:
International Political Economy, International Trade and Finance, Global Markets, and Strategic Competition
Political Geography:
United States, China, and Europe

103. The Tragedy of International Organizations in a World Order in Turmoil

Author:
Jean-Jacques Hallaert
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
China’s rise and the U.S. response to the perceived threat it represents to its predominance jeopardize the world order and affect international institutions. The paralysis of the WTO and the U.S. withdrawal from the WHO are the most visible examples, but not the only ones. This article presents the case of the International Monetary Fund. Quotas are the cornerstone of IMF governance. They determine each member’s contribution to the institution’s resources and their voting power. As the world evolves, the quota distribution needs to be adjusted. Adjustments in quota shares and thus voting powers have always been politically difficult. However, they were possible. In the early 1990s, members agreed to an increase in the representation of Japan. In the 2000s, they agreed to increase substantially the voting power of emerging economies. In contrast, the 15th General Review of Quotas concluded early 2020, failed to increase and realign quotas. The proximate cause for this was the opposition of the United States to a change in quotas. This paper argues that the U.S. decision was in large part motivated to prevent an increased influence of China. The failure to increase and realign voting powers may have long-lasting consequences. In the absence of a quota increase, the IMF will need to continue to rely on borrowed resources to avoid a drop in its lending capacity. This extension of the “temporary” recourse to borrowed resources undermines the governance of the Fund as voting powers (which are not linked to borrowed resources but only to quotas) are disconnected from member’s total contributions to the Fund and to their economic weight. This may trigger a new legitimacy crisis and provide incentives for countries like China to support the development of new and competing institutions which would better represent their interests and economic weight. Such a development would undermine the complex and fragile international financial architecture.
Topic:
International Organization, International Political Economy, Governance, IMF, and WTO
Political Geography:
United States, China, and Global Focus

104. Learning to Love Trade Again

Author:
Frank Lavin and Oscar Guinea
Publication Date:
06-2020
Content Type:
Research Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
We are at the moment, the first in seventy-five years, where there is no international consensus in support of trade. Indeed, trade is unloved, unsupported, and even unwanted. There is no shortage of topics in the rhetoric of trade complaints: from the rapid rise of China to Coronavirus as a metaphor for the evils of greater connectivity. Regardless of the validity of these complaints, none of them negate the central truth of trade: countries that engage in trade move ahead, and those that do not, stagnate. Our political leaders disagree. Anti-trade positions are held by leaders across the political spectrum, from Donald Trump to Bernie Sanders. And yet, the public is increasingly warm to the idea of trade. When Gallup asks Americans, “Do you see foreign trade more as an opportunity for economic growth through increased U.S. exports or a threat to the economy from foreign imports?” a record high of 79% see trade as an opportunity, with 18% viewing it as a threat. How did the world arrive at this moment where the benefits of trade are clearly evidenced while trade has become politically toxic? We identify four main factors: (i) U.S. absenteeism from the leadership role; (ii) detachment between trade and security architecture; (iii) no alternative leadership in Europe or elsewhere; and (iv) the cumbersome WTO process. Against this background we put forward five initiatives that will be big enough to count but unobjectionable enough to be adopted. The Big Three. The U.S., EU, and Japan, should establish a consultative body on trade to forge a new approach that allows trade to move ahead in the absence of universal consensus. No harm, no foul. Each of the Big Three should commit to zero tariffs on any item not produced in each particular market. A de minimis strategy. Tariffs should be eliminated on all products where the current tariff is less than 2%. At that level tariffs are simply a nuisance fee. Mind the social costs. Expand the Nairobi Protocols to include health products and green tech. Scrapping import tariffs on medical and green goods would not only encourage additional trade but will also provide health and environmental benefits. Harmonize down. The Big Three should commit that on every tariff line each of the three will be no worse than the next worse. In other words, each of the Big Three will agree to reduce its tariff on every product where it has the highest tariff of the three. These actions will spur the WTO, not undermine it. The measures we propose can be set up on a plurilateral basis that would allow other trading powers to participate. By breaking away from the tyranny of universal consensus, these actions will encourage the trading community – including the WTO – to get back in forward motion. In some respect, convergence between the Big Three is already happening. The EU and Japan signed an FTA that lowers import tariffs between these two economies, while the U.S. and Japan agreed to negotiate a comprehensive FTA. And if China is willing to step up? China should be welcomed into this group if it supports the four initiatives, changing the Big Three to the Big Four.
Topic:
International Political Economy, International Trade and Finance, Global Markets, Trade, and WTO
Political Geography:
United States, Japan, China, Europe, and Global Focus

105. Europe’s Quest for Technology Sovereignty: Opportunities and Pitfalls

Author:
Fredrik Erixon and Matthias Bauer
Publication Date:
05-2020
Content Type:
Research Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Covid-19 and its broader implications have highlighted the importance of Europe’s digital transformation to ensure Europeans’ social and economic well-being. It provides important new learnings about Europe’s quest for “technology sovereignty”. While the debate about technology sovereignty is timely, the precise meaning of sovereignty or autonomy in the realm of technologies remains ambiguous. It should be noted that the political discussions about European technology sovereignty emerged far before the outbreak of the Coronavirus. The European Commission’s recently updated industrial and digital policy strategies “institutionalised” different notions of sovereignty, reflecting perceptions that more EU action is needed to defend perceived European values and to secure Europe’s industrial competitiveness. Often the political rhetoric reflected perceptions that Europe is losing global economic clout and geopolitical influence. It was said that dependency on technological solutions, often originating abroad, would require a European industrial and regulatory response. Against this background, the Corona crisis provides two important lessons for EU technology policymaking. Firstly, during the crisis digital technologies and solutions made European citizens stronger. Technology kept Europe open for business despite the lock-down by enabling Europeans to work from home, receive essential home deliveries, home schooling, online deliveries and to use online payments, etc. In addition, Europe’s citizens became more sovereign with respect to accessing information and data that helped track and contain the spread of the virus. Secondly, the crisis tested Europe’s resilience and perceived dependency on (foreign) technology solutions. Early developments indicate that Member States’ homemade solutions did not fare better than existing European and international solutions. A few national and EU IT solutions failed while existing European and global solutions, from cloud infrastructure to communications, payments to streaming services, all continued to work well. Politically, however, the crisis could be used to justify more EU or national government interference in Europe’s digital transformation. Indeed, for some the debate about European technology sovereignty is largely about designing prescriptive policies, which paradoxically risk reducing Europeans’ access to the innovative technologies, products and services that helped Europe through the crisis. Policies taken into consideration include new subsidies to politically picked companies, or new rules and obligations for certain online business models. Policy-makers advocating for such policies tend to ignore critical insights from the Covid-19 crisis and failed industrial policy initiatives, including sunk public investments and protracted subsidies for industrial laggards. In a time of economic hardship, the EU and national governments should be wary of spending even more taxpayer money to replicate existing world-class technology solutions, that in most cases are used in combination with local technologies, with “Made in EU” services of inferior quality and reliability. Moreover, due to different levels of economic development and differences in regulatory cultures, prescriptive technology policies would exclude many Member States from utilising existing and new opportunities that arise from digitalisation, slowing down economic renewal and convergence. The EU cannot be considered a monolithic block that thrives on a unique set of prescriptive technology policies. Before the Corona pandemic, initiatives towards European technology sovereignty were mainly pushed by France and Germany, fed by concerns over their companies’ industrial strength in times of growing economic and geopolitical competition. Industrial and technology policies favoured by the EU’s two largest countries will have a disproportionately negative impact on Europe’s smaller open economies, whose companies and citizens could be deprived from cutting-edge technologies, new economic opportunities and partnerships on global markets, undermining these economies’ development and international competitiveness. Any EU-imposed technology protectionism along the lines suggested by some policy-makers in large EU Member States would leave the entire EU worse off. It would disproportionately hurt countries in Europe’s northern, eastern and southern countries more than the large countries whose economies are generally more diverse than Europe’s smaller Member States. It would, however, make sense for the EU to agree on a shared definition of “technology sovereignty”. Different interpretations could cause serious policy inconsistencies, undermining the effectiveness of EU and national economic policies. Anchored in technological openness, technology sovereignty can indeed be a useful ambition to let Europe’s highly diverse economies leapfrog by using existing technologies. To become more sovereign in a global economy, Europeans need to focus on becoming global leaders in economic innovation – not just in regulation. If anchored in mercantilist or protectionist ideas, technological sovereignty would make it harder for many Member States to access modern technologies, adopt new business models and attract foreign investment – with adverse implications on future global competitiveness, economic renewal and economic convergence. Policymaking towards a European technology sovereignty that benefits the greatest number of Europeans – not just a few politically selected “winners” – should aim for a regulatory environment in which technology companies and technology adopters can thrive across EU Member States’ national borders. The European Single Market has deteriorated in recent years and significantly during the crisis. The new von der Leyen Commission has now repeatedly called for a strengthening of the Single Market. Becoming a world leader in innovation requires a real Single Market in which companies can scale up, with as few hurdles as possible, and then compete globally. It should be supplemented by pro-competitive policies and incentives for research and investment. Brussels cannot set the global standards in technology policymaking alone. Europe’s policy-makers should aim for closer market integration and regulatory cooperation with trustworthy international partners such as the G7 or the larger group of the OECD countries. It is in the EU’s self-interest to advocate for a rules-based international order with open markets. International cooperation should be extended beyond trade to include cooperation on technology policies, e.g. artificial intelligence. Regulatory cooperation with allies such as the USA is essential to jointly set global standards that are based on shared values. Both the EU and the US have much more to gain if they prioritise such alignment, to advance a shared vision for a revamped open international trading system, in a world increasingly influenced by regimes with fundamentally different views on state intervention and human rights. Anchored in technological openness, the EU and the US can promote technology sovereignty that allows for development and renewal elsewhere in the world.
Topic:
Industrial Policy, International Political Economy, Science and Technology, Sovereignty, European Union, and COVID-19
Political Geography:
United States, Europe, and Global Focus

106. The Millennials' Transition from School-to-Work

Author:
Yuet-Yee Linda Wong and Audra J. Bowlus
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
We present the first study of the high school-to-work transition for American Millennial males and females. Using data from the PSID Transition to Adulthood from 2005-2011, we estimate the Burdett and Mortensen (1998) model and study changes between Generation X and Millennials. We find convergence in racial differences in transition patterns across the generations and in gender earnings by the Great Recession. These patterns are driven by a large decline in search efficiencies for white males. Finally, we show the labor market deteriorated for high school graduates prior to, with a further decline during, the Great Recession.
Topic:
Economics, Education, Global Recession, Human Capital, Labor Market, and Productivity
Political Geography:
United States

107. Optimal Contracting with Altruistic Agents: A Structural Model of Medicare Payments for Dialysis Drugs

Author:
Martin Gaynor, Nirav Mehta, and Seth Richards-Shubik
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
We study physician agency and optimal payment policy in the context of an expensive medication used in dialysis care. Using Medicare claims data we estimate a structural model of treatment decisions, in which physicians differ in their altruism and marginal costs, and this heterogeneity is unobservable to the government. In a novel application of nonlinear pricing methods, we theoretically characterize the optimal unrestricted contract in this screening environment with multidimensional heterogeneity. We combine these results with the estimated model to construct the optimal contract and simulate counterfactual outcomes. The optimal contract is a flexible fee-for-service contract, which pays for reported treatments but uses variable marginal payments instead of constant reimbursement rates, resulting in substantial health improvements and reductions in costs. Our structural approach also yields important qualitative findings, such as rejecting the optimality of any linear contract, and may be employed more broadly to analyze a variety of applications.
Topic:
Economics, Government, Health, Health Care Policy, Human Capital, Productivity, and Medicare
Political Geography:
United States

108. The EITC and Maternal Time Use: More Time Working and Less Time with Kids?

Author:
Jacob Bastian and Lance Lochner
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
Parents spend considerable time and resources investing in their children's development. Given evidence that the Earned Income Tax Credit (EITC) aects maternal labor supply, we investigate how the EITC aects a broad array of time-use activities, focusing on the amount and nature of time spent with children. Using 2003-2018 time-use data, we nd that federal and state EITC expansions increase maternal work time, which reduces time devoted to home production, leisure, and time with children. However, for children of all ages, almost none of the reduction comes from time devoted to investment activities, such as active learning and development activities.
Topic:
Economics, Labor Issues, Children, Women, Income Inequality, Tax Systems, Human Capital, Family, and Productivity
Political Geography:
United States

109. Global giants and local stars: How changes in brand ownership affect competition

Author:
Vanessa Alviarez, Keith Head, and Thierry Mayer
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
We assess the consequences for consumers in 76 countries of multinational acquisitions in beer and spirits. Outcomes depend on how changes in ownership affect markups versus efficiency. We find that owner fixed effects contribute very little to the performance of brands. On average, foreign ownership tends to raise costs and lower appeal. Using the estimated model, we simulate the consequences of counterfactual national merger regulation. The US beer price index would have been 4-7% higher without divestitures. Up to 30% savings could have been obtained in Latin America by emulating the pro-competition policies of the US and EU.
Topic:
Economics, International Political Economy, and Multinational Corporations
Political Geography:
United States, United Kingdom, Latin America, and Global Focus

110. Corporate tax avoidance and industry concentration

Author:
Farid Toubal, Mathieu Parenti, and Julien Martin
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper argues that tax avoidance by large corporations has contributed to the 25% increase in concentration among U.S. firms since the mid-1990s. Corporate tax avoidance gives large firms a competitive edge, which translates into larger market shares and an increase in the granularity of the economy. We develop IV and difference-in-differences strategies that show the causal impact of tax avoidance on firm-level sales. Had firms not resorted to tax avoidance in 2017, our results imply that the average industry concentration would have been 8.3% lower, which is around its early 2000 level.
Topic:
Economics, International Political Economy, Markets, Tax Systems, Corporations, Tax Evasion, and Corporate Tax
Political Geography:
United States and Global Focus

111. Far, Far More Than Meets the Eye: Extended Deterrence in Complex Crises in Northeast Asia

Author:
Brad Glosserman
Publication Date:
06-2020
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
The Pacific Forum, with support from the Defense Threat Reduction Agency (DTRA), brought 41 officials and experts from the United States, Japan, and the Republic of Korea (ROK), along with eight Pacific Forum Young Leaders, all attending in their private capacity, to Maui, Hawaii, Sept. 5-6, 2019 to explore the three countries’ thinking about extended deterrence and prospects for and obstacles to strengthened trilateral security cooperation. A two-move tabletop exercise (TTX) was focused on concerted and coordinated efforts by China and North Korea to revise the status quo in Northeast Asia. Key findings include: Despite political difficulties, there was little difference among participants regarding assessments of the situation and dynamics in Northeast Asia. They were generally aligned and this was evident in responses to the TTX: they sought to prevent opportunism, provide off-ramps for adversaries, and didn’t rush to connect the incidents. Official statements notwithstanding, there is rising anxiety in Seoul and Tokyo for a variety of reasons. In the ROK, some concerns focus on the role of nuclear solutions to national security problems. In Japan, the issue is often the US-China balance of power. Tokyo and Seoul remain committed to their alliances with the US, however. Participants acknowledged that conventional strength among allies and the ability to coordinate more seamlessly strengthened extended deterrence.
Topic:
Deterrence
Political Geography:
United States, Japan, Northeast Asia, Korean Peninsula, and Pacific Ocean

112. On the Value of Nuclear Dialogue with China

Author:
David Santoro and Robert Gromoll
Publication Date:
11-2020
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
This material is based on research sponsored by DTRA and managed by the US Air Force Academy (USAFA), and Pacific Forum International under agreement number FA7000-19-2- 0012. The US Government is authorized to reproduce and distribute reprints for Governmental purposes notwithstanding any copyright notation thereon. The opinions, findings, views, conclusions or recommendations contained herein are those of the authors and should not be interpreted as necessarily representing the official policies or endorsements, either expressed or implied, of the USAFA, DTRA, or the US Government. This paper was written by Dr. David Santoro, Vice President and Director for Nuclear Policy at the Pacific Forum, and Dr. Robert Gromoll, former Director of the Office of Regional Affairs at the US Department of State’s Bureau of International Security and Nonproliferation; Dr. Gromoll is now retired. Both Drs. Santoro and Gromoll participated in numerous dialogue rounds, and Dr. Santoro was a co-organizer. The paper is based primarily on the contents of the dialogue’s written reports, several of which were authored or co-authored by Dr. Santoro. By and large, the paper draws directly from these reports and reviews how the topics addressed in the dialogue were approached and discussed by the US and Chinese sides over time. (A list of these reports is included at the end of the paper; some have been published, others have not.) The paper is also based on the authors’ broader experience in participating in the Track-1.5 dialogue; the conversations they have had with US and Chinese participants on these issues over the years, both during the dialogue and on the margins; and their own personal research. This paper represents the views of the authors and not those of Pacific Forum or the US State Department.
Topic:
Arms Control and Proliferation, International Cooperation, Nuclear Weapons, Treaties and Agreements, Nonproliferation, and Denuclearization
Political Geography:
United States and China

113. Reset Overdue: Remaking U.S.—Saudi Relations

Author:
Annelle Sheline and Steven Simon
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
• The U.S.–Saudi relationship is long overdue for a reset: The U.S. should push Saudi Arabia to engage productively with the region rather than tolerating policies that undermine stability. • Specifically, the U.S. should pressure Saudi Arabia to end the war on Yemen, end the blockade of Qatar, participate in the development of an inclusive regional security architecture, and respect the sovereignty of other countries and the human rights of Saudi citizens. • To encourage Saudi Arabia to adopt these policies, the U.S. should be prepared to support and invest in Saudi economic diversification and support the development of Saudi nuclear energy. If Saudi Arabia does not respond to these incentives, the U.S. should end all weapons sales to Saudi Arabia and seek other regional partners.
Topic:
Diplomacy, Human Rights, International Cooperation, Sovereignty, Political stability, Diversification, and Economic Development
Political Geography:
United States and Saudi Arabia

114. Ending the Self-Fulfilling Prophecy: Realigning Our Engagement with Our Interests in Somalia

Author:
Elizabeth Shackelford
Publication Date:
11-2020
Content Type:
Research Paper
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
In U.S. foreign policy circles today, the bar to justify ending a military intervention is higher than it is to keep one going. Small wars have become routine foreign policy tools, executed with minimal oversight or scrutiny. Somalia offers a clear example of how this approach leads to high accumulated costs for the American people with little to show in gains for the U.S. national interest. The current military-led strategy promises no end to lethal interventions, and the costs and risks associated with it exceed the threats it is meant to address. Expanding U.S. military activity over the past five years has done little to impede the Somali terrorist insurgency group al–Shabaab, but it has continued to overshadow and undermine diplomatic and development efforts to address Somalia’s political and governance problems. At the same time, military intervention has propped up an ineffective government, disincentivizing Somali political leaders from taking the hard steps necessary to reach a sustainable peace and build a functioning state. The U.S. military cannot be expected to stay indefinitely in Somalia to maintain a messy stalemate. Rather than reflexively increase U.S. military activity when it falls short of stated objectives, the United States should reassess its overall strategy in Somalia by returning to basic questions: Why is the U.S. military fighting a war there? What U.S. national interest is the war serving? And are America’s actions in Somalia and the region furthering that national interest?
Topic:
Diplomacy, War, Military Strategy, Governance, Military Affairs, Military Intervention, and Peace
Political Geography:
United States and Somalia

115. Reflections On The U.S.–Mexico Relationship

Publication Date:
06-2020
Content Type:
Commentary and Analysis
Institution:
Brown Journal of World Affairs
Abstract:
Gerónimo Gutiérrez Fernández served as Mexico’s Ambassador to the United States (2017-2018). He played a prominent role in the negotiation of the United States of America, Mexico and Canada Agreement (USMCA). Currently, he is managing partner of BEEL Infrastructure, a specialized advisory & asset management firm focused on the infrastructure sector in Latin America. He also provides strategic advice to businesses and governments on political risk, public affairs and communications and business development; and serves in the Board of Directors of U.S. – Mexico Business Association (AEM) and the Advisory Board of the Woodrow Wilson Center’s Mexico Institute. Brown Journal of World Affairs: During your time as ambassador, the U.S.– Mexico relationship was highly politicized due to President Trump’s rhetoric. How did you navigate balancing between building a relationship with the U.S. government and standing up for your country?
Topic:
Diplomacy, Regional Cooperation, Immigration, NAFTA, and USMCA
Political Geography:
United States, Latin America, and Mexico

116. In The Era Of U.S. Energy Abundance: The Role Of The Caspian Region In U.S. Policy

Author:
Brenda Shaffer
Publication Date:
06-2020
Content Type:
Research Paper
Institution:
Brown Journal of World Affairs
Abstract:
For most of the last fifty years, international energy policy has been a major focus of U.S. foreign and national security policy. Washington has viewed ensuring the energy security of its allies—especially in Europe, Japan, and South Korea—as part of its own national security. In this approach to energy policy, the United States was unique and contrasted with most Western countries, which generally treated energy policy as part of their economic and/or environmental policies. Washington has engaged in international energy policy on the highest executive levels in the White House and established influential units within cabinet departments and agencies to promote international energy policies and to integrate them with U.S. national security and foreign policies. Within the Department of State, successive special ambassadors were appointed to promote various international and regional energy policies and, in 2011, a full Bureau of Energy Resources was established.
Topic:
Foreign Policy, Energy Policy, Environment, Oil, and Natural Resources
Political Geography:
United States, Caspian Sea, and Global Focus

117. Protecting Stateless Refugees In The United States

Author:
David Baluarte
Publication Date:
06-2020
Content Type:
Research Paper
Institution:
Brown Journal of World Affairs
Abstract:
Miliyon is a stateless, failed asylum seeker residing in the United States. He initially sought refugee protection after he fled Ethiopia, where he had faced serious abuse because of his Eritrean ethnicity. Immigration authorities denied him asylum after concluding that the Ethiopian government’s deportation of his Eritrean father, the seizure of his family’s land and business, and the detention and torture of Miliyon himself constituted a property dispute not protected under U.S. refugee law. Miliyon fought this denial of protection over the next decade through various appeals processes but ultimately failed. At that point, he applied for a passport at the Ethiopian embassy in Washington, D.C. and resigned himself to return home and face whatever fate awaited him. Consular officials, however, refused to issue him a passport. Despite never having set foot in Eritrea or having any other connection to the country, Miliyon was told that he was Eritrean, not Ethiopian. He was informed that he had no right to return to Ethiopia, his country of birth and the only place he had ever lived. This led the United Nations High Commissioner for Refugees (UNHCR) to declare Miliyon stateless. As a victim of discriminatory denationalization, Miliyon tried to renew his application for refugee protection. Notwithstanding the fact that Miliyon had endured this persecutory treatment, U.S. authorities once again denied his claim.
Topic:
Refugee Issues, Immigrants, Deportation, Protected People, and Stateless Population
Political Geography:
Africa, United States, and Ethiopia

118. Money, Cattle Hides and William A Leidesdorff: California before the Gold Rush

Author:
Jonathan Tiemann, Oenone Kubie, and Christopher McKenna
Publication Date:
08-2020
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
The discovery of gold in January 1848, at Nueva Helvetia, John Sutter’s property in the Sacramento Valley, changed the course of Californian history. By the end of March, San Francisco had emptied as its population swarmed to the gold fields that had opened up around Sutter’s lumbermills and by August, the East Coast newspapers were reporting the discovery of Californian gold. In December of that year, President James K Polk confirmed the find in front of Congress and in 1849, one of America’s largest migrations ever took place as hundreds of thousands of gold prospectors, the ‘Forty-niners’, descended on ‘Gold Country’.
Topic:
Agriculture, Economics, History, Natural Resources, Capitalism, Economic Development, Cattle, and Farming
Political Geography:
United States

119. Brothers in Arms and Faith? The Emerging US-Central and Eastern Europe ‘Special Relationship’

Author:
Vibeke Schou Tjalve and Minda Holm
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Norwegian Institute of International Affairs
Abstract:
In this policy note, we explore the nature, strength and tensions of the contemporary US-Central Eastern Europe relationship. We describe the expanding US-CEE ‘brotherhood in arms’: growing trade relations, intensified military cooperation, and rekindled diplomatic ties. Further, we unpack the striking and largely ignored dimensions of the US-CEE ‘brotherhood in faith’: the many ways in which the United States and Central and Eastern Europe are tied together by overlapping ideologies of national conservatism and a particular version of Christian ‘family values’. This involves addressing the complexities of an increasingly influential and ambitious Visegrád Group, whose key players – Poland and Hungary – may be brothers, but are by no means twins. It also means raising some broader, burning discussions about the future of NATO and the meaning of ‘Europe’. Universalist, multicultural and postnational? Or conservative, Christian and sovereigntist?
Topic:
Diplomacy, International Cooperation, Conservatism, Alliance, Ideology, Christianity, and Trade Policy
Political Geography:
United States, Eastern Europe, and Central Europe

120. Terrorism in Afghanistan: A Joint Threat Assessment

Author:
Teresa Val
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
Terrorism in Afghanistan: A Joint Threat Assessment is intended to serve as an analytical tool for policymakers and an impetus for joint U.S.-Russia action. The report provides an overview of the security situation and peace process in Afghanistan, taking into account U.S. and Russian policies, priorities and interests; surveys the militant terrorist groups in and connected to Afghanistan and explores the security interests of various regional stakeholders vis-à-vis Afghanistan. Challenges relating to border management, arms trafficking and terrorist financing in Afghanistan are also briefly addressed.
Topic:
Security, Diplomacy, Military Strategy, Counter-terrorism, and Peace
Political Geography:
Afghanistan, Russia, United States, Europe, Middle East, and North America

121. 11th U.S.-China High-Level Political Party Leaders Dialogue

Author:
Joshua Cavanaugh
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
A select delegation of leaders from the U.S. Democratic and Republican Parties and the global business community traveled to Beijing, China to meet with senior officials from the Communist Party of China (CPC) on November 18-21, 2019. The discussions were part of the 11th U.S.-China High-Level Political Party Leaders Dialogue organized by the EastWest Institute (EWI) in partnership with the International Department of the Central Committee of the Communist Party of China (IDCPC). Launched in 2010, the U.S.-China High-Level Political Party Leaders Dialogue seeks to build understanding and trust between political elites from the U.S. and China through candid exchanges of views on topics ranging from local governance to foreign policy concerns. The dialogue process consistently involves sitting officers from the CPC and the U.S. Democratic and Republican National Committees. In the 11th iteration of the dialogue, the CPC delegation was led by Song Tao, minister of IDCPC. Gary Locke, former secretary of the United States Department of Commerce, former governor for the state of Washington and former United States Ambassador of China; and Alphonso Jackson, former secretary of the United States Department of Housing and Urban Development; lead the U.S. Democratic and Republican delegations, respectively. Throughout the dialogue, members of both delegations spoke freely on relevant topics including foriegn policy trends, trade disputes and emerging areas of economic cooperation. EWI facilitated a series of meetings for the U.S. delegation, which included a productive meeting with Wang Qishan, vice president of the People’s Republic of China at the Great Hall of the People. The delegates also met with Yang Jiechi, director of the Office of the Central Commission for Foreign Affairs; Dai Bingguo, former state councilor of the People’s Republic of China; and Lu Kang, director of the Department of North American and Oceanian Affairs at the Ministry of Foreign Affairs. The U.S. delegates visited the Asian Infrastructure Investment Bank and met with their president, Jin Liqun, as well as the Schwarzman College at Tsinghua University to engage prominent scholars on the future of the U.S.-China relationship.
Topic:
Foreign Policy, Diplomacy, International Trade and Finance, and Economic Cooperation
Political Geography:
United States, China, Asia, and North America

122. Is the Most Unproductive Firm the Foundation of the Most Efficient Economy? Penrosian Learning Confronts the Neoclassical Fallacy

Author:
William Lazonick
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Edith Penrose’s 1959 book The Theory of the Growth of the Firm [TGF] provides intellectual foundations for a theory of innovative enterprise, which is essential to any attempt to explain productivity growth, employment opportunity, and income distribution. Properly understood, Penrose’s theory of the firm is also an antidote to the deception that is foundational to neoclassical economics: The theory, taught by PhD economists to millions upon millions of college students for over seven decades, that the most unproductive firm is the foundation of the most efficient economy. The dissemination of this “neoclassical fallacy” to a mass audience of college students began with Paul A. Samuelson’s textbook, Economics: An Introductory Analysis, first published in 1948. Over the decades, the neoclassical fallacy has persisted through 18 revisions of Samuelson, Economics and in its countless “economics principles” clones. This essay challenges the intellectual hegemony of neoclassical economics by exposing the illogic of its foundational assumptions about how a modern economy functions and performs. The neoclassical fallacy gained popularity in the 1950s, during which decade Samuelson revised Economics three times. Meanwhile, Penrose derived the logic of organizational learning that she lays out in TGF from the facts of firm growth, absorbing what was known in the 1950s about the large corporations that had come to dominate the U.S. economy. Also, during that decade, the knowledge base on the growth of firms on which economists could subsequently draw was undergoing an intellectual revolution, led by the business historian, Alfred D. Chandler, Jr. He was engaged in the first stage of a career that would span more than a half century, during which Chandler documented and analyzed the centrality to U.S economic development of what he would come to call “the managerial revolution in American business.” In combination, the works of Penrose and Chandler form intellectual foundations for my own work on the Theory of Innovative Enterprise—an endeavor that has enabled me, as an economist, to recognize not only the profound importance of organizational learning for economic theory but also the illogic of the neoclassical theory of the firm for our understanding of the central institution of a modern economy, the business corporation. In this essay, I argue that the key characteristic of the innovative enterprise is fixed-cost investment in the productive capabilities of the company’s employees to engage in organizational learning. The purpose of this investment in organizational learning is to develop a higher-quality product than was previously available. When successful, the development of the higher-quality product enables the firm to capture a large extent of the market, transforming high fixed cost into low unit cost. The result is sustainable competitive advantage that enables the growth of the firm, contributing to the growth of the economy as a whole. I argue that to get beyond the neoclassical fallacy, economists have to stop relying on constrained-optimization methodology. Rather, they need to be trained in a “historical transformation” methodology that integrates history and theory. It is a methodology in which theory serves as both a distillation of what we have learned from the study of history and a guide to what we need to learn about reality as the “present as history” unfolds.
Topic:
Economics, Political Economy, Macroeconomics, and Neoclassical Economics
Political Geography:
United States

123. Payment vs. Funding: The Law of Reflux for Today

Author:
Perry Mehrling
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The analytical tension in post-Keynesian thought between the theory of endogenous (credit) money and the theory of liquidity preference, brought to our attention by Dow and Dow (1989), can be viewed through the lens of the money view (Mehrling 2013) as a particular case of the balance between the elasticity of payment and the discipline of funding. Further, updating Fullarton’s 1844 “law of reflux” for the modern condition of financial globalization and market- based credit, the same money view lens offers a critical entry point into Tobin’s fateful 1963 intervention “Commercial Banks as Creators of ‘Money’” which established post-war orthodoxy, and also to the challenge offered by so-called Modern Money Theory.
Topic:
Economics, Globalization, Monetary Policy, Economic Theory, Macroeconomics, Keynes, and Credit
Political Geography:
United States

124. Private Equity Buyouts in Healthcare: Who Wins, Who Loses?

Author:
Eileen Appelbaum and Rosemary Batt
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Private equity firms have become major players in the healthcare industry. How has this happened and what are the results? What is private equity’s ‘value proposition’ to the industry and to the American people -- at a time when healthcare is under constant pressure to cut costs and prices? How can PE firms use their classic leveraged buyout model to ‘save healthcare’ while delivering ‘outsized returns’ to investors? In this paper, we bring together a wide range of sources and empirical evidence to answer these questions. Given the complexity of the sector, we focus on four segments where private equity firms have been particularly active: hospitals, outpatient care (urgent care and ambulatory surgery centers), physician staffing and emergency room services (surprise medical billing), and revenue cycle management (medical debt collecting). In each of these segments, private equity has taken the lead in consolidating small providers, loading them with debt, and rolling them up into large powerhouses with substantial market power before exiting with handsome returns.
Topic:
Economics, Privatization, Health Care Policy, Health Insurance, and Private Equity
Political Geography:
United States

125. How Much Can the U.S. Congress Resist Political Money? A Quantitative Assessment

Author:
Thomas Ferguson, Paul Jorgensen, and Jie Chen
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The extent to which governments can resist pressures from organized interest groups, and especially from finance, is a perennial source of controversy. This paper tackles this classic question by analyzing votes in the U.S. House of Representatives on measures to weaken the Dodd-Frank financial reform bill in the years following its passage. To control as many factors as possible that could influence floor voting by individual legislators, the analysis focuses on representatives who originally cast votes in favor of the bill but then subsequently voted to dismantle key provisions of it. This design rules out from the start most factors normally advanced by skeptics to explain vote shifts, since these are the same representatives, belonging to the same political party, representing substantially the same districts. Our panel analysis, which also controls for spatial influences, highlights the importance of time-varying factors, especially political money, in moving representatives to shift their positions on amendments such as the “swaps push out” provision. Our results suggest that the links between campaign contributions from the financial sector and switches to a pro-bank vote were direct and substantial: For every $100,000 that Democratic representatives received from finance, the odds they would break with their party’s majority support for the Dodd-Frank legislation increased by 13.9 percent. Democratic representatives who voted in favor of finance often received $200,000–$300,000 from that sector, which raised the odds of switching by 25–40 percent.
Topic:
Economics, Political Economy, Elections, Democracy, Finance, Legislation, and Money
Political Geography:
United States

126. Profits, Innovation and Financialization in the Insulin Industry

Author:
Rosie Collington
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The list prices of analogue insulin medicines in the United States have soared during the past decade. In the wake of high-profile cases of prescription medicine “price-gouging”, such as Mylan’s EpiPen and Turing-acquired Daraprim, actors across the insulin supply chain are today facing growing scrutiny from US lawmakers and the wider public. For the most part, however, the role of shareholders in the insulin supply chain has been overlooked. This paper considers the relationship between profits realized from higher insulin list prices, pharmaceutical innovation, and the financial structures of the three dominant insulin manufacturing companies, which set list prices. It shows that despite claims to the contrary, insulin manufacturers extracted vast profits from the sale of insulin products in the period 2009-2018, as insulin list prices rose. Distributions to the company shareholders in the form of cash dividends and share repurchases totaled $122 billion over this period. The paper also considers the role of other actors in the insulin supply chain, such as pharmacy benefits managers (PBMs), in the determination of list prices. The data and analysis presented in the paper indicates that financialization could be considered in tension with not only the development of new drugs that will be available to patients in the future, but also the affordability of products that already exist today.
Topic:
Economics, Health, Health Care Policy, Finance, and Price
Political Geography:
United States

127. Payroll Share, Real Wage and Labor Productivity across US States

Author:
Ivan Mendieta-Muñoz, Codrina Rada, Ansel Schiavone, and Rudi von Arnim
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper analyzes regional contributions to the US payroll share from 1977 to 2017 and the four major business cycles throughout this period. We implement two empirical exercises. First, we decompose the US payroll share across states. Utilizing a Divisia index decomposition technique yields exact contributions of real wages, employment structure, labor productivity and relative prices across the states to the aggregate change in the payroll share. Key findings are that the decline in the aggregate (i) is driven by decoupling between real wage and labor productivity; and (ii) is initially driven by the rust belt states, but subsequently dominated by relatively large states. Second, we employ mixture models on real wages and labor productivity across US states to discern whether distinct mechanisms appear to generate these distributions. Univariate models (iii) indicate the possibility that two distinct mechanisms generate state labor productivities, raising the question of whether regional dualism has taken hold. Lastly, we use bivariate mixture models to investigate whether such dualism and decoupling manifest in the joint distributions of payroll shares and labor productivity, too. Results (iv) are affirmative, and further suggest a tendency for high performing states to have relatively high payroll shares initially, and low payroll shares more recently.
Topic:
Economics, Political Economy, Labor Issues, Productivity, and Workforce
Political Geography:
United States

128. The dynamic impact of FX interventions on financial markets

Author:
Lukas Menkhoff, Malte Rieth, and Tobias Stöhr
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Evidence on the effectiveness of FX interventions in the prevailing higher frequency approaches leaves a gap at horizons going beyond a few days. This is addressed by identifying a structural vector autoregressive model for the daily frequency with an external instrument. Using Japanese data, we find that FX interventions significantly affect exchange rates, although the effect is smaller than in emerging markets, and this impact persists for up to a year. There is no major effect on interest rates, but stock prices increase in line with currency devaluation, in particular those of large (exporting) firms. The results qualitatively hold for US and UK interventions.
Topic:
International Political Economy, Exports, Data, and Models
Political Geography:
United States, Japan, and United Kingdom

129. The US–China trade deal and its impact on China’s key trading partners

Author:
Sonali Chowdhry and Gabriel Felbermayr
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
The US–China Economic and Trade Agreement (ETA) entered into force on 14th February 2020, marking a new phase in their protracted trade and geopolitical rivalry. The ETA includes specific targets for increased Chinese imports of US goods and services, amounting to 200 bn USD over 2020 and 2021. The authors show that these purchase commitments can generate substantial trade diversion effects and market share shifts for China’s top trading partners. In manufacturing, Germany is likely to experience the greatest trade diversion effects in a number of industries such as vehicles (-1.28 bn USD), aircraft (-1.59 bn USD) and industrial machinery (-0.72 bn USD). Moreover, developing countries will be hit if China re-directs its imports towards US suppliers. E.g. Brazil could experience a reduction of 4.95 bn USD in soybeans exports to China in 2021 as a result of the ETA.
Topic:
International Political Economy, International Trade and Finance, Exports, Trade, Trade Policy, and Imports
Political Geography:
United States and China

130. Against ‘the Blob’: America’s Foreign Policy in Eurasia’s Heartland is Becoming its Own Greatest Enemy

Author:
Michael A. Reynolds
Publication Date:
09-2020
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
As this article goes to press, America and the world are in the midst of the coronavirus pandemic. The pandemic’s end remains invisible, yet it has already wreaked extraordinary economic disruption around the globe. Inevitably, political upheaval will follow. Indeed, the strain of the pandemic has now catalyzed social and political unrest throughout the United States on a level not seen in half a century.
Topic:
Foreign Policy and Grand Strategy
Political Geography:
United States and Eurasia

131. Eurasia, the Hegemon, and the Three Sovereigns

Author:
Pepe Escobar
Publication Date:
09-2020
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
I t is my contention that there are essentially four truly sovereign states in the world today, at least amongst the major powers: the United States, the Russian Federation, the People’s Republic of China, and the Islamic Republic of Iran. These four sovereigns—I call them the Hegemon and the Three Sovereigns—stand at the vanguard of the ultra-postmodern world, characterized by the supremacy of data algorithms and techno-financialization ruling over politics.
Topic:
Foreign Policy, Sovereignty, Power Politics, Geopolitics, Emerging Powers, and Regional Power
Political Geography:
United States, China, Iran, Global Focus, and Russian Federation

132. Reassessing U.S.-Azerbaijani Relations: A Shared Imperative to Look Ahead

Author:
Robert F. Cekuta
Publication Date:
12-2020
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
The U.S.-Azerbaijan relationship remains important to both countries, but it is time to reevaluate and update how they engage with each other. The Second Karabakh War is the most visible of the reasons for such a reassessment, given Azerbaijan’s military successes, Russia’s headline role in securing the November 2020 agreement that halted the fighting, and the need to undertake the extremely difficult work of avoiding a new war and building a peace. But China’s high profile economic, diplomatic, and security activities across Eurasia, coupled with the results of the November 2020 election in the United States, have also significantly altered the diplomatic environment. Lastly, multinational challenges—such as the economic, social, and other ramifications of the COVID-19 pandemic or the realities of climate change—make the need for revaluation, dialogue, and mapping out new directions in the two countries’ relations even more apparent.
Topic:
International Relations, Foreign Policy, and Diplomacy
Political Geography:
United States, China, Eurasia, and Azerbaijan

133. Oil Powers: A History of the U.S.-Saudi Alliance

Author:
Victor Mcfarland
Publication Date:
07-2020
Content Type:
Book
Institution:
Columbia University Press
Abstract:
Since the mid-twentieth century, the United States and Saudi Arabia have built a close but often troubled alliance. In this critical history, Victor McFarland reveals the deep ties binding the leaders of the two nations. Connecting foreign relations and domestic politics, McFarland challenges the view that the U.S.-Saudi alliance is the inevitable consequence of American energy demand and Saudi Arabia’s huge oil reserves. Oil Powers traces the growth of the alliance through a dense web of political, economic, and social connections that bolstered royal and executive power and the national-security state. McFarland shows how U.S. and Saudi elites collaborated to advance their shared interests against rivals at home and abroad. During the 1970s, as higher oil prices enriched the Saudi government, destabilized the American economy, and changed the balance of power in the Middle East, leaders of both countries responded by consolidating their alliance. Facing objections from their own people, Washington and Riyadh chose to shield their partnership from public oversight and accountability. While American support empowered the Saudi royal family and helped the kingdom expand its influence across the Middle East, Saudi elites also encouraged a rightward shift in U.S. foreign and economic policy—with profound long-term effects. Oil Powers reveals the role of the U.S.-Saudi alliance in laying the groundwork for American military involvement in the Middle East and the entrenchment of a global order fueled by oil.
Topic:
Oil
Political Geography:
United States, Middle East, and Saudi Arabia
Publication Identifier:
9780231552073
Publication Identifier Type:
ISBN

134. Flattening the Pandemic and Recession Curves

Author:
Pierre-Olivier Gourinchas
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
In the short run, the capacity of any country’s health system is finite (capacity of Intensive Care Units, number of hospital beds, number of skilled health professionals, ventilators….). This puts an upper bound on the number of patients that can be properly treated, at any given point in time and is represented by the flat line in the Figure. Unchecked, and given what we know of the transmission rate of the coronavirus, the pandemic would quickly overwhelm any health system, leaving many infected patients with deteriorating pulmonary conditions without any treatment. The fatality rate would surge. The threat is almost beyond comprehension. With a 2% case fatality rate baseline for overwhelmed health systems, and 50% of the world population infected, 1% of the world population -76 million people- would die. This scenario corresponds to the red curve in Figure 1. The part of the curve above the capacity of the health care system faces a sharply higher mortality risk (shaded red area).
Topic:
Economics, International Political Economy, Health Care Policy, Economic Growth, Macroeconomics, Pandemic, COVID-19, and Global Health
Political Geography:
United States

135. Coronavirus and Managing Your Organization’s Response

Author:
Anton Korinek
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
Organizations around the world are working through how to respond to the novel coronavirus, posing one of the greatest challenges to leaders in a long time. Do they restrict travel? Doing so would have substantial financial implication, make months of preparation worthless and lower the morale of many stakeholders who enjoy travel. However, travel is what brought the coronavirus to the country in the first place — and what continues to spread it to new communities within the country. What about instituting remote work procedures? In-person meetings and events may be a critical part of an organization’s activities and an important part of the value it offers. Perhaps there are no known cases of the virus in a given community. However, once it does gain a foothold, social distancing is the only way to slow the spread. Carriers of the virus may unwittingly spread it for days before symptoms manifest themselves. Above all, one of the greatest challenges is to balance an organization’s economic concerns with the question of what is ethically the best course of action.
Topic:
Economics, International Political Economy, Pandemic, and COVID-19
Political Geography:
United States and Global Focus

136. Racial Inequality

Author:
Lisa D. Cook and Trevon Logan
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
The origins of American capitalism in the institutions of slavery continues to cast a long shadow. As the economist William Darity Jr. has written, the dead hand of history weighs heavily on us because the dead hand of history remains fitfully alive. Contemporary racial inequality can be thought of as the product of a long historical process with at least two reinforcing sets of policies. The first would be policies governing the spatial distribution of the black population. The second would be policies that had a disparate impact on black individuals because of their locations. Understanding current black-white gaps in income, wealth and education require understanding the complex relationship between regional inequality, race and policies at the local, state, and national levels. In this article, we outline the ways that the spatial distribution of the black population has evolved over time and the ways that spatial distribution has interacted with policy to, at times, reduce and exacerbate levels of inequality. Recognizing the ways that past policies explicitly stymied black economic mobility and how current policies have explicitly or inadvertently done the same provides a basis for understanding how to craft future policies to reduce racial inequalities. Furthermore, recognizing the interconnection of discrimination and the spatial distribution of the black population is important for understanding certain components of regional and spatial inequality. The difference in location within regions makes it inevitable that policies that differentially affect urban and rural areas will have disparate effects by race. A recent example of this is the proposed Medicaid work requirement in Michigan. The original version of Michigan Senate Bill 897 exempted individuals from this work requirement conditional on residing in a county with an unemployment rate above 8.5 percent. The spatial distribution of the white and black populations of Michigan meant that this exemption would have racially disparate impacts; given that poor white individuals disproportionately live in rural areas and black individuals live in urban areas, the higher unemployment rates in rural counties would disproportionately exempt white Medicaid recipients from the work requirement within the bill. Although—after considerable negative press—the exemption was dropped from the final version of the work requirement bill, this incident reveals the complex interplay between policy, inequality across space, and inequality between races. Even if a policy like the unemployment rate exemption in the Michigan bill is crafted without discriminatory intent, it can nonetheless increase racial inequality. In the following sections we explore the how policy has shaped the geographic and economic mobility of the black population over the past century and a half, drawing from the large literatures on regional inequality and racial discrimination that have all too often been treated in isolation from one another.
Topic:
Economics, Race, Capitalism, Inequality, Slavery, Macroeconomics, Reparations, Racism, and Systemic Racism
Political Geography:
United States

137. Why, When, and How to Teach the Fundamentals of Inequality in Principles

Author:
Can Erbil and Geoffrey Sanzenbacher
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
The continued rise of economic inequality in the U.S. has been on the radar of economists and policymakers for the last few years. New initiatives and platforms like EfIP (Economics for Inclusive Prosperity) have emerged, where economists work on creating fresh and useful policy ideas to promote more “inclusive” models of generating prosperity. Yet, students still face a lot of confusion, “noise,” and disagreement when it comes to the topic of inequality.[1] Especially in the age of easy access to information online, students not fully literate in economics struggle to sift through the literature and separate rigorous scientifically based research from opinion pieces. This article discusses a way to introduce some recent trends in U.S. inequality to students, and then delve into a specific topic (e.g., racial inequality) in a two-lecture module at the end of an introductory economics course. After all, it is not that the students are not interested in this topic. But, left alone, many of them become confused. Students do not make distinctions between different broad types of inequalities, such as income inequality, wealth inequality, or inequality of opportunity. They do not understand differences in the underlying causes of inequality, which vary depending on whether the topic is inequality across educational groups, gender-based groups, or racial/ethnic groups. And, they make basic mistakes in reading articles or viewing data, such as mixing-up correlation with causation or looking at graphs with different scales. Fortunately, introductory economics courses have a chance to reach students early in their careers, and correct many of these deficiencies. Indeed, recent events in the US compel us to cover inequality and its consequences in our introductory classes. The economic impact of the COVID-19 epidemic falls significantly more on minorities, women, people with lower income levels and people of color.[2] And, the disparities in poverty and opportunity rates between black and non-black populations is at the root of racial discrimination which re-ignited the BLM movement.[3] Indeed, economic inequality is also related to other disciplines in Social Sciences, such as Sociology, Political Science and even Liberal Arts courses such as History and English. However, Economics faculty are well-equipped to cover the empirical outcomes and the underlying economic models – and lay out their strengths as well as short-comings. Given that teaching about economic inequality is an important task, this article will first discuss when it makes sense to teach it. The article will then spend the majority of its time providing some tips for covering the material, as well as some suggested assignments.
Topic:
Economics, Education, Inequality, Economic Inequality, Macroeconomics, and Models
Political Geography:
United States

138. How Market Sentiment Drives Forecasts of Stock Returns

Author:
Roman Frydman, Nicholas Mangee, and Josh Stillwagon
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
We reveal a novel channel through which market participants’ sentiment influences how they forecast stock returns: their optimism (pessimism) affects the weights they assign to fundamentals. Our analysis yields four main findings. First, if good (bad) “news” about dividends and interest rates coincides with participants’ optimism (pessimism), the news about these fundamentals has a significant effect on participants’ forecasts of future returns and has the expected signs (positive for dividends and negative for interest rates). Second, in models without interactions, or when market sentiment is neutral or conflicts with news about dividends and/or interest rates, this news often does not have a significant effect on ex ante or ex post returns. Third, market sentiment is largely unrelated to the state of economic activity, indicating that it is driven by non-fundamental considerations. Moreover, market sentiment influences stock returns highly irregularly, in terms of both timing and magnitude. This finding supports recent theoretical approaches recognizing that economists and market participants alike face Knightian uncertainty about the correct model driving stock returns.
Topic:
Economics, Markets, and Stock Markets
Political Geography:
United States

139. Modigliani Meets Minsky: Inequality, Debt, and Financial Fragility in America, 1950-2016

Author:
Alina K. Bartscher, Moritz Kuhn, Moritz Schularick, and Ulrike I. Steins
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper studies the secular increase in U.S. household debt and its relation to growing income inequality and financial fragility. We exploit a new household-level dataset that covers the joint distributions of debt, income, and wealth in the United States over the past seven decades. The data show that increased borrowing by middle-class families with low income growth played a central role in rising indebtedness. Debt-to-income ratios have risen most dramatically for households between the 50th and 90th percentiles of the income distribution. While their income growth was low, middle-class families borrowed against the sizable housing wealth gains from rising home prices. Home equity borrowing accounts for about half of the increase in U.S. household debt between the 1970s and 2007. The resulting debt increase made balance sheets more sensitive to income and house price fluctuations and turned the American middle class into the epicenter of growing financial fragility.
Topic:
Debt, Finance, Income Inequality, and Economic Growth
Political Geography:
United States

140. How the Disappearance of Unionized Jobs Obliterated an Emergent Black Middle Class

Author:
William Lazonick, Philip Moss, and Joshua Weitz
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
During the 1960s and 1970s, blacks with no more than high-school educations gained significant access to well-paid unionized employment opportunities, epitomized by semi-skilled operative jobs in the automobile industry, to which they previously had limited access. Anti-discrimination laws under Title VII of the 1964 Civil Rights Act with oversight by the Equal Employment Opportunity Commission supported this upward mobility for blacks in the context of a growing demand for blue-collar labor. From the late 1970s, however, the impact of global competition and the offshoring of manufacturing combined with the financialization of the corporation to decimate these stable and well-paid blue-collar jobs. Under the seniority provisions of the now beleaguered industrial unions, blacks tended to be last hired and first fired. As U.S.-based blue-collar jobs were permanently lost, U.S. business corporations and government agencies failed to make sufficient investments in the education and skills of the U.S. labor force to usher in a new era of upward socioeconomic mobility. This organizational failure left blacks most vulnerable to downward mobility. Instead of retaining corporate profits and reinvesting in the productive capabilities of employees, major business corporations became increasingly focused on downsizing their labor forces and distributing profits to shareholders in the form of cash dividends and stock buybacks. Legitimizing massive distributions to shareholders was the flawed and pernicious ideology that a company should be run to “maximize shareholder value.” As the U.S. economy transitioned from the Old Economy business model, characterized by a career with one company, to the New Economy business model, characterized by interfirm labor mobility, advanced education and social networks became increasingly important for building careers in well-paid white-collar occupations. Along with non-white Hispanics, blacks found themselves at a distinct disadvantage relative to whites and Asians in accessing these New Economy middle-class employment opportunities. Eventually, the downward socioeconomic mobility experienced by blacks would also extend to devastating loss of well-paid and stable employment for whites who lacked the higher education now needed to enter the American middle class. By the twenty-first century, general downward mobility had become a defining characteristic of American society, irrespective of race, ethnicity, or gender. Since the 1980s, the enemy of equal employment opportunity through upward socioeconomic mobility has been the pervasive and entrenched corporate-governance ideology and practice of maximizing shareholder value (MSV). For most Americans, of whatever race, ethnicity, and gender, MSV is the not-so-invisible hand that has a chokehold on the emergence of the stable and well-paid employment opportunities that are essential for sustainable prosperity.
Topic:
Labor Issues, Civil Rights, Unions, Black Politics, African American Studies, and Workforce
Political Geography:
United States

141. Immaculate Deception: How (and Why) Bankers Still Enjoy a Global Rescue Network

Author:
Edward J. Kane
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Dodd-Frank is an example of counterfeit reform. It is designed principally to benefit very big banks and it has helped these banks to increase their market share greatly during the last 10 years. The Act provides lesser and contradictory forms of costs and comfort to smaller US bankers and taxpayers, foreign bankers (especially the managers of Deutsche Bank), and foreign governments. Small bankers and taxpayers are encouraged to believe that the 2007-2009 US rescue of the world’s biggest banks was a one-time maneuver. But an opposite message is sent through the press as (with great fanfare) the industry absolves and congratulates ex-officeholders: (1) for having transferred massive amounts of subsidized support not just to stakeholders in US megabanks, but also to European bankers and governments, and (2) for keeping the subsidies flowing long past the panic’s expiry date. Genuine reform will require changes in fraud laws and an effort to post on a continuing basis the value of the safety-net subsidies individual megabanks enjoy.
Topic:
Government, Reform, Regulation, Finance, Global Financial Crisis, and Banking
Political Geography:
United States

142. Seventy years of NATO: Is the Alliance still needed?

Author:
Krševan Antun Dujmović
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
This year the North Atlantic Treaty Origination (NATO) marks seventieth anniversary of its creation. Back in 1949, the founding nations gathered around the United States as the leader of Western liberal democracies, establishing NATO as a military and political alliance that was to serve as a barrier against the Soviet Union, ‘’’’ serve as a counterbalance to NATO and the era of the Cold War gained full sway, with clearly established division in Europe between the capitalist West and communist East, and with only a handful of European countries opting for neutrality. Thus, a bipolar system of world order was established, with defined territories and its export of communism throughout the continent. Just six years later, Moscow assembled the Warsaw Pact together with other Eastern European communist countries, excluding Yugoslavia. The Warsaw Pact was to and frontiers of the two global adversaries, and the Cold War pertained until the collapse of the USSR in 1991. From 1991 onwards, fifteen new independent states emerged from the disintegrated Soviet Union, with the newly founded Russian Federation as its legal successor and a permanent member of the United Nations Security Council. Subsequently the Warsaw Pact had collapsed, and Eastern European countries used a transition period that was to bring them closer to the West, ultimately to NATO and the European Union. The collapse of the Soviet Union was the single most important event in history after the World War II and the world entered into a new era. Back in early nineties, it seemed that Russia and the West have buried the tomahawk of war for an indefinite time, and many political theorists and politicians, in both NATO member states and in Russia, have stated that without its archrival NATO no longer had raison d’etre.
Topic:
Foreign Policy, NATO, International Cooperation, and Military Strategy
Political Geography:
United States, Europe, North Atlantic, and North America

143. Venezuela: First episode of the new Cold War?

Author:
Slobodan Pajovic
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
Since the beginning of 2019, Venezuela has been in the focus of international politics because of its political and institutional crisis, together with its economic and social collapse generated in 2013, transformed into a regional and international crisis. The exit of some estimated three to four million emigrants mostly to neighboring countries of human rights and democratic values, the authoritarian regime of socialist orientation, the current American strategy of strengthening its political and strategic influence in Latin America, the presence of significant non- regional emerging global factors, as well as the cyclical changes of political parties in power in this part of the world. Accordingly, this crisis tests the hemispheric and global leadership of has additionally deepened the contexts of theUS, the influences of emerging global powers the regional crisis including also the security aspect. In short, the crisis can be described as oscillating between the issues of defense like China, Russia, India or Turkey, recently, and the potential of Latin American regionalism and political consensus.
Topic:
Imperialism, Migration, Regional Cooperation, and Financial Crisis
Political Geography:
United States, Latin America, Venezuela, and North America

144. Armenia’s Colourless Revolution

Author:
Jan Cingel
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
Armenia is a landlocked country situated in the South Caucasus region. History of the region was shaped by the clash of three major empires: Ottoman, Persian and Russian trying to win control over it. The modern history of Armenia began in 1991, when the country seceded from the crumbling Soviet Union. Those were difficult years as the fledgling country was in ongoing war with its new post-USSR neighbour – Azerbaijan. The war was waged over “Nagorno- Karabakh”, a region that was mostly populated by ethnic Armenians, however was formally part of the Azerbaijan Soviet Socialist Republic within the USSR. In the international arena, Armenia joined the UN in 1991, the Russia-led defence pact called the Collective Security Treaty Organisation (CSTO) in 1994, and also in that year, NATO’s Partnership for Peace (PfP). Armenia became part of the EU’s Eastern Partnership (EaP) in 2009 and until September 2013 had been negotiating the EU’s Association Agreement (AA), which included a free trade agreement. Two months before the intended completion of negotiations, and after a visit of then President Serzh Sargsyan to Moscow, Armenia announced that it would cancel negotiations with the EU on the AA and that it was going to join the emerging Russia-led Eurasian Economic Union (EAEU) instead. Armenia joined the EAEU in 2014.
Topic:
NATO, Post Colonialism, United Nations, and Revolution
Political Geography:
Russia, United States, Europe, Soviet Union, Armenia, Azerbaijan, and Ottoman Empire

145. Volodymyr Zelensky’s Sweeping Victories: Is Ukraine’s Turn Toward the West Definite?

Author:
Krševan Antun Dujmović
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
For more than half a decade Ukraine has been one of epicenters on the map of geopolitical crises in the world and consequently drawn a lot of international attention worldwide. Ever since it gained its independence form the crumbling Soviet Union in 1991, Ukraine was a of the country also changed. Ukraine has been dominated by Russia as the Russian Empire penetrated deep toward the Black Sea in the 17th century, and the position of inferiority towards Moscow was also the case in the USSR. The first upheaval dubbed the Orange Revolution sort of buffer zone between the West and East, between the United States and European allies on the one hand, and the Russian Federation on the other. With the change of political elites and their political preferences, the orientation in 2004, brought to power Viktor Yushchenko, who tried to conduct reforms and bring Ukraine closer to the West, but the effect of his Presidency were ephemeral. President Viktor Yanukovych turned Ukraine’s sight towards Russia again, but also kept the process of EU association alive before suddenly deciding not to sign the Association Agreement with the EU just days before the planned signing ceremony on 29th November 2013. This Yanukovych’s abrupt turn from EU in favor of stronger ties with Russia triggered the wave of massive public demonstrations which later become known as the Euromaidan and subsequently the Ukrainian revolution in February 2014. The Euromaidan Revolution toppled Yanukovych and the new pro-Western government was formed. Russia soon reacted to the change of tide in Ukraine by annexing the Crimean peninsula in March and soon the armed conflict between the pro- Western government in Kiev and Russia backed rebels in Donetsk and Luhansk Oblasts broke out. Ever since the spring of 2014, Ukraine has been engulfed in a brutal conflict in the east of the country that is hampering its efforts to reform and get closer to the EU. Nonetheless, Ukrainian leadership is under the new President Volodymir Zelensky is striving to forge stronger links with the West and the EU.
Topic:
Foreign Policy, Diplomacy, Military Strategy, European Union, and Geopolitics
Political Geography:
Russia, United States, Europe, Ukraine, Eastern Europe, and Crimea

146. US Undocumented Population Continued to Fall from 2016 to 2017 and Visa Overstays Significantly Exceeded Illegal Crossings for the Seventh Consecutive Year

Author:
Robert Warren
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
This article presents estimates of the US undocumented population for 2017 derived by the Center for Migration Studies of New York (CMS). It focuses on the steep decline in the undocumented population from Mexico since 2010. While the president has focused the nation’s attention on the border wall, half a million[1] US undocumented residents from Mexico left[2] the undocumented population in 2016 alone, more than three times the number that arrived that year, leading to an overall decrease of nearly 400,000 undocumented residents from Mexico from 2016 to 2017. From 2010 to 2017, the undocumented population from Mexico fell by a remarkable 1.3 million. For the past 10 years, the primary mode of entry for the undocumented population has been to overstay temporary visas. This article provides estimates of the number of noncitizens who overstayed temporary visas and those who entered without inspection (EWIs) in 2016 by the top five countries of origin. Summary of Findings The US undocumented population from Mexico fell by almost 400,000 in 2017. In 2017, for the first time, the population from Mexico constituted less than one half of the total undocumented population. Since 2010, the undocumented population from Mexico has declined by 1.3 million. In California, the undocumented population from Mexico has declined by 26 percent since 2010, falling from 2.0 to 1.5 million; it also dropped by 50 percent in Alabama, and by one third in Georgia, New York, and New Mexico. The undocumented population from Venezuela grew rapidly after 2013, increasing from 60,000 to 145,000 in just four years. Visa overstays have significantly exceeded illegal border crossings during each of the last seven years. Mexico was the leading country for overstays in 2017, with about twice as many as India or China. The estimates presented here were derived by CMS based on information collected in the Census Bureau’s annual American Community Survey (ACS). The procedures used to derive detailed estimates of the undocumented population are described in Warren (2014). CMS used its annual estimates of the undocumented population for 2010 to 2017 — by state of residence, country of origin, and year of entry — to compile the information described here. Additional methodological details appear as footnotes or as notes in the tables.
Topic:
Migration, Border Control, and Domestic Policy
Political Geography:
United States, Central America, and North America

147. Bodily Inertia and the Weaponization of the Sonoran Desert in US Boundary Enforcement: A GIS Modeling of Migration Routes through Arizona’s Altar Valley

Author:
Geoffrey Alan Boyce, Samuel Chambers, and Sarah Launius
Publication Date:
03-2019
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
Since 2000, 3,199 human remains of unauthorized migrants have been recovered from the Sonoran Desert of southern Arizona (Coalición de Derechos Humanos 2018). These recovered remains provide only one indicator of the scope of death and suffering affecting unauthorized migrants and their loved ones — something that also includes thousands of individuals whose whereabouts or remains are never encountered (and who therefore remain disappeared) (ibid.). Just as significantly, the number of human remains recovered in southern Arizona has remained consistently high despite a significant decline during the past decade in the number of apprehensions (a figure frequently used as a proxy for unauthorized migration) in the Border Patrol’s Tucson Sector. This condition has led scholars and commentators alike to observe an increase in the ratio of deaths to migration, even as unauthorized border crossing fluctuates (Martínez et al. 2014; Reineke and Martínez 2014; International Organization for Migration 2018). In 2012, the southern Arizona humanitarian organization No More Deaths began systematically tracking the use and vandalism of cached drinking water it supplies at 512 sites across an 800-square-mile area of southern Arizona’s Altar Valley, a high-traffic migration corridor bisected by the US–Mexico border (Ferguson, Price, and Parks 2010; Regan 2010; Boyce 2016; Chambers et al. 2019). On an almost daily basis, volunteers with No More Deaths travel this migration corridor to resupply caches of 5–20 gallons of clean drinking water, physically hauling this water by truck and by foot. Each cache site is tracked using a Global Positioning System (GPS) coordinate to make navigation of the remote desert borderlands and the location of dispersed and frequently hidden cache sites easier for new volunteers. In 2015, the authors began working with No More Deaths to digitize and conduct spatial and statistical analysis on the data entered into these desert aid logs, with the express aim of seeing what this archive can reveal about everyday activity related to boundary enforcement and migration, as well as the efficacy of the organization’s activities throughout time. In total, No More Deaths’ desert aid archive contains 4,847 unique entries from March 2012 to December 2015, logging the date when an individual cache site was visited, the number of new water gallons deposited during this visit, the number of water gallons encountered intact and unused from previous resupply visits, the conditions of any empty water bottles left behind (including telltale signs of human vandalism, as well as occasional animal damage), and any subjectively unusual conditions or noteworthy events that were observed at the site or during the visit. Combined, this archive provides remarkable and uncommon insight into subtle changes in migration routes and patterns within the Altar Valley desert corridor, as well as those quotidian forms of harassment and vandalism of water supplies that we believe are intended to amplify and maximize hardship for unauthorized border crossers. Indeed, scholars have long argued that the US Border Patrol’s enforcement strategy of “Prevention Through Deterrence” (PTD), first launched in 1994, is premised on instrumentalizing the difficult climate and terrain of the US–Mexico border by pushing migration routes away from traditional urban crossing areas and into increasingly rugged and remote desert areas (Andreas 2001; Cornelius 2001; Rubio-Goldsmith et al. 2006; Nevins 2008; Martínez et al. 2014; De León 2015; Slack et al. 2016). The Border Patrol’s own policy documents make this case. Observing that migrants “crossing through remote, uninhabited expanses of land and sea along the border can find themselves in mortal danger,” the Immigration and Naturalization Service (INS — at the time, the Border Patrol’s parent agency) argued that by channeling migration routes into “harsh terrain less suitable for crossing and more suitable for enforcement,” the Border Patrol would eventually obtain a “tactical advantage” over would-be border crossers (INS 1994, 7). Then–INS Commissioner Doris Meissner later reflected, “We did believe that geography would be an ally for us. It was our sense that the number of people crossing through the Arizona desert would go down to a trickle once people realized what [it’s] like” (quoted in Cornelius 2005). In this article, we conduct geospatial modeling and statistical analysis of No More Deaths’ desert aid archive. This involves measuring changes in the distribution of water use throughout time across the 62 cache sites consistently visited during all four calendar years included in the dataset, and then reading this measurement against a model of ruggedness that incorporates multiple variables including slope, vegetation, “jaggedness,” and ground temperature while controlling for Euclidian distance. Adjusting for seasonal variation and the overall volume of water use, we find a statistically meaningful increase in the cumulative ruggedness score of migration routes associated with cache sites during the four calendar years included in No More Deaths’ desert aid logs. These findings reveal a steady pressure toward more rugged and difficult crossing routes throughout time, an outcome that provides important context for the vandalism and harassment that target migrants and humanitarian aid workers alike (see No More Deaths and Coalición de Derechos Humanos 2018). In what follows, we first provide greater detail on the context of our study and of the authors’ collaboration with No More Deaths. Next, we discuss our research methodology, including the contours of the geographic information system (GIS) modeling through which we conduct our analysis. We then present our findings, and discuss and contextualize these, before turning to some of the limitations of our study and directions for future research. We conclude by considering some of the policy implications of our findings, as well as their implications for studies of mobility, border policing, and state violence, including in contexts when states are instrumentalizing environmental features and conditions for the purposes of boundary enforcement.
Topic:
Migration, Water, Border Control, and Humanitarian Crisis
Political Geography:
United States, Central America, and North America

148. Fixing What’s Most Broken in the US Immigration System: A Profile of the Family Members of US Citizens and Lawful Permanent Residents Mired in Multiyear Backlogs

Author:
Donald Kerwin and Robert Warren
Publication Date:
05-2019
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
The US Department of State (DOS) reports that as of November 2018, nearly 3.7 million persons had been found by US Citizenship and Immigration Services (USCIS) to have a close family relationship to a US citizen or lawful permanent resident (LPR) that qualified them for a visa, but were on “the waiting list in the various numerically-limited immigrant categories” (DOS 2018). These backlogs in family-based “preference” (numerically capped) categories represent one of the most egregious examples of the dysfunction of the US immigration system. They consign family members of US citizens and LPRs that potentially qualify for a visa and that avail themselves of US legal procedures to years of insecurity, frustration, and (often) separation from their families. Often criticized in the public sphere for jumping the visa queue, it would be more accurate to say that this population, in large part, comprises the queue. While they wait for their visa priority date to become current, those without immigration status are subject to removal. In addition, most cannot adjust to LPR status in the United States, but must leave the country for consular processing and, when they do, face three- or 10-year bars on readmission, depending on the duration of their unlawful presence in the United States. This population will also be negatively affected by the Department of Homeland Security’s (DHS) proposed rule to expand the public charge ground of inadmissibility (Kerwin, Warren, and Nicholson 2018). In addition, persons languishing in backlogs enjoy few prospects in the short term for executive or legislative relief, given political gridlock over immigration reform and the Trump administration’s support for reduced family-based immigration. In this paper, the Center for Migration Studies (CMS) offers estimates and a profile based on 2017 American Community Survey (ACS) data of a strongly correlated population to the 3.7 million persons in family-based visa backlogs: i.e., the 1.55 million US residents potentially eligible for a visa in a family-based preference category based on a qualifying relationship to a household member. CMS data represents only part of the population in family-based backlogs. In particular, it captures only a small percentage of the 4th preference, brothers and sisters of US citizens.[1] However, everybody in CMS’s data could be petitioned for, if they have not been already. Among this population’s ties and contributions to the United States, the paper finds that: Fifty-nine percent has lived in the United States for 10 years or more, including 23 percent for at least 20 years. Nearly one million US-born children under age 21 live in these households, as well as 111,600 US-born adults (aged 21 and over) who have undocumented parents. 449,500 arrived in the United States at age 15 or younger. 139,100 qualify for the DREAM Act based their age at entry, continuous residence, and graduation from high school or receipt of a GED. Seventy-two percent aged 16 and older are in the labor force, and more than two-thirds (68 percent) are employed; these rates exceed those of the overall US population. Two-thirds of those aged 18 or older have at least a high school diploma or its equivalent, including 25 percent with a bachelor’s degree or higher, and 295,100 aged three and older are enrolled in school. The median income of their households is $63,000, slightly above the US median. More than two-thirds (68 percent) have health insurance, including 51 percent with private health insurance. Nearly one-third (32 percent) live in mortgaged homes, and 12 percent in homes owned free and clear. The paper provides several recommendations to reduce family-based backlogs. In particular, it proposes that Congress pass and the President sign into law legislation to legalize intending family-based immigrants who have been mired in backlogs for two years or more. In addition, this legislation should define the spouses and minor unmarried children of LPRs as immediate relatives (not subject to numerical limits), not count the derivative family members of the principal beneficiary against per country and annual quotas, and raise per country caps. The administration should also re-use the visas of legal immigrants who emigrate each year, particularly those who formally abandon LPR status. This practice would reduce backlogs without increasing visa numbers. Congress should also pass legislation to advance the entry date for eligibility for “registry,” an existing feature of US immigration law designed to legalize long-term residents. In particular, the legislation should move forward the registry cutoff date on an automatic basis to provide a pathway to status for noncitizens who have lived continuously in the United States for at least 15 years, have good moral character, and are not inadmissible on security and other grounds. In fact, Congress advanced the registry date on a regular basis during most of the 20th century, but has not updated this date, which now stands at January 1, 1972, for 33 years.
Topic:
Migration, Immigration, Border Control, and Domestic Politics
Political Geography:
United States, Central America, and North America

149. The Effects of Immigration Enforcement on Faith-Based Organizations: An Analysis of the FEER Survey

Author:
Donald Kerwin and Mike Nicholson
Publication Date:
06-2019
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
The effects of US immigration enforcement policies on immigrants, US families, and communities have been well-documented. However, less attention has been paid to their impact on faith-based organizations (FBOs). Faith communities provide a spiritual home, and extensive legal, resettlement, social service, health, and educational services for refugees and immigrants. This report presents the findings of the FEER (Federal Enforcement Effect Research) Survey, which explored the effects of US immigration enforcement policies on immigrant-serving Catholic institutions.[1] Many of these institutions arose in response to the needs of previous generations of immigrants and their children (Kerwin and George 2014, 14, 74-75). Most strongly identify with immigrants and have long served as crucial intermediaries between immigrant communities and the broader society (Campos 2014, 149-51).[2] Over its first two years, the Trump administration has consistently characterized immigrants as criminals, security risks, and an economic burden. Among its policy initiatives, the administration has supported major cuts in family-based immigration, attempted to terminate the Deferred Action for Childhood Arrivals (DACA) program, reduced refugee admissions to historic lows, instituted admission bars on Muslim-majority countries, attempted to strip Temporary Protection Status (TPS) from all but a fraction of its beneficiaries, erected major new barriers to asylum, and proposed new rules regarding the public charge grounds of inadmissibility that would make it more difficult for poor and working class persons to obtain permanent residence. US immigration enforcement policies have separated children from their parents, criminally prosecuted asylum-seekers, expanded detention, increased arrests of non-citizens without criminal records, and militarized the US-Mexico border. These policies have failed to stem the flow of migrants and asylum-seekers: instead these flows have increased dramatically in recent months. These policies have succeeded, however, in devastating children, instilling fear in immigrant communities, blocking access to the US asylum system, and undermining immigrant integration (Kerwin 2018).[3] The FEER survey points to a paradox. On one hand, US enforcement policies have increased the demand for services such as legal screening, representation, naturalization, assistance to unaccompanied minors, and support to the US families of detainees and deportees. Many Catholic institutions have expanded their services to accommodate the increased demand for their services. On the other hand, their work with immigrants has been impeded by federal immigration policies that effectively prevent immigrants from driving, attending gatherings, applying for benefits, and accessing services for fear that these activities might lead to their deportation or the deportation of a family member. Among other top-line findings, 59 percent of 133 FEER respondents reported that “fear of apprehension or deportation” negatively affected immigrants’ access to their services, and 57 percent of 127 respondents reported that immigrant enforcement very negatively or negatively affected the participation of immigrants in their programs and ministries.
Topic:
Migration, Religion, Border Control, Immigrants, and Catholic Church
Political Geography:
United States, Central America, and North America

150. Do Immigrants Threaten US Public Safety?

Author:
Pia Orrenius and Madeline Zavodny
Publication Date:
07-2019
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
Opponents of immigration often claim that immigrants, particularly those who are unauthorized, are more likely than US natives to commit crimes and that they pose a threat to public safety. There is little evidence to support these claims. In fact, research overwhelmingly indicates that immigrants are less likely than similar US natives to commit violent and property crimes, and that areas with more immigrants have similar or lower rates of violent and property crimes than areas with fewer immigrants. There are relatively few studies specifically of criminal behavior among unauthorized immigrants, but the limited research suggests that these immigrants also have a lower propensity to commit crime than their native-born peers, although possibly a higher propensity than legal immigrants. Evidence about legalization programs is consistent with these findings, indicating that a legalization program reduces crime rates. Meanwhile, increased border enforcement, which reduces unauthorized immigrant inflows, has mixed effects on crime rates. A legalization program or other similar initiatives not currently under serious consideration have more potential to improve public safety and security than several other policies that have recently been proposed or implemented.
Topic:
Crime, Migration, Immigration, and Border Control
Political Geography:
United States and North America