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Begin New Search Content Type Working Paper Publication Year within 25 Years

401. Chaos in the Palestinian Authority: From Counter-Terrorism to Reconstruction

Author:
Orit Perlov and Udi Dekel
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Recent months have seen a steep rise in the use of live fire in the Palestinian cities in the West Bank against IDF forces, as well as in the number of shooting incidents and other attacks. Behind the shootings are primarily young Palestinians, including Fatah operatives, and this phenomenon reflects the chaos within the Palestinian Authority. The Israeli security response, which focuses on counter-terrorism and widespread arrests of suspects, generates a self-sustaining cycle of escalation and heightens the motivation among young Palestinians to enlist in the fight against the Israeli security forces. The danger is that as a result of the chaos, the PA will cease to function as a responsible, stable, and effective entity that encourages calm and is an authoritative address for communication with Israel. To curb this trend and give the PA an opportunity (perhaps its last) to regain control of the northern West Bank and stop the deterioration, reconstruction measures should be pursued vis-à-vis the Palestinian Authority, and external collaboration and support should be recruited for the effort, primarily from Jordan and the Gulf states.
Topic:
Governance, Leadership, and Palestinian Authority
Political Geography:
Middle East, Israel, and Palestine

402. Difficulties in the Negotiations with Iran: Implications for Israel

Author:
Eldad Shavit and Sima Shine
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The negotiations between the United States and Iran on renewing the nuclear agreement have run into serious difficulties following the opposition by the United States and the European partners to Iran's demand that the IAEA close the open files on the Iranian nuclear program before the implementation of the agreement (120 days after signing). At the same time, Iran continues to accelerate the program, including the enrichment of uranium using cascades of advanced centrifuges. Three scenarios are possible: a resolution of the crisis and achievement of an agreement; continued stagnation, i.e., lowintensity talks; or the collapse of the negotiations. The worst scenario for Israel is a continuation of the current situation, in which Iran could in a short time accumulate enough fissile material for weapons-grade enrichment for several nuclear facilities, while the temptation of a nuclear breakout increases. Thus, Israel should immediately formulate a new strategy regarding Iran. The government should conduct a discreet dialogue with the US administration and focus on proposals that seek to advance Israel’s military and strategic needs, including consolidating covert and effective cooperation with the countries of the region under the auspices of the United States.
Topic:
Security, Diplomacy, Nuclear Weapons, Negotiation, and Strategic Interests
Political Geography:
Iran, Middle East, and Israel

403. The Bus Attack in the Jordan Valley: The Ethos of Resistance Increasingly Shapes the Palestinian Campaign

Author:
Kobi Michael
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Israel's current mode of operation against the escalation of attacks in the West Bank provides fertile ground for the intensification of the Palestinian ethos of resistance. From the perspective of the armed Palestinian operatives, the cost of the violent friction with IDF forces is not overly high. Symbols of national struggle are born each day and the sense of capability and expectations of the armed struggle are intensifying in the hearts and collective consciousness of the younger generation and provide motivation to join the struggle. But Israel's management of the conflict in the format of "mowing the grass” is reaching the limit of its effectiveness and could even lead to a largescale violent outbreak while it addresses isolated trees and not the forest, which is the real strategic challenge before it.
Topic:
Military Strategy, Conflict, Violence, and Resistance
Political Geography:
Middle East, Israel, and Palestine

404. War or Peace? Turkish Moves in Syria

Author:
Gallia Lindenstrauss and Carmit Valensi
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Recent increased attacks on Kurdish targets in northern Syria by Turkey and the Syrian rebel groups its supports raise the question whether Turkey’s President Recep Tayyip Erdogan intends to carry out his threat of May 2022 to begin another major ground operation against the Kurds. On the other hand, conciliatory statements regarding the Assad regime have been sounded recently in Turkey, and there has been discussion of the possibility of normalizing relations between the two countries after over a decade of hostility and competition. These two processes appear to be contradictory, given that the Syrian regime opposes existing Turkish control of Syrian territories, and does not wish to see this control broadened. On the other hand, this may be a calculated Turkish move that aims to show the Turkish public a concerted multi-faceted effort to confront both the Kurdish underground and the issue of Syrian refugees in Turkey. Discussion of events in northern Syria and the web of Syrian and Turkish interests can be used to assess the question, which trend will prevail in Turkish-Syrian relations: normalization or escalation?
Topic:
War, Military Strategy, Homeland Security, Peace, and Strategic Interests
Political Geography:
Europe, Turkey, Middle East, and Syria

405. The American Withdrawal from Afghanistan, One Year Later

Author:
Yoram Schweitzer and Eldad Shavit
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Global considerations prompted the United States’ decision to withdraw from Afghanistan, not military pressure from the Taliban. This is evident one year after the withdrawal, despite the difficult scenes of the first few days after the Taliban takeover of the capital, Kabul, and the victory celebrations of the Taliban and al-Qaeda. Furthermore, at this stage the danger of an international wave of terrorism in the West led by al-Qaeda does not appear to be a concrete and immediate threat. The killing by the United States via an armed UAV of al-Qaeda leader Ayman al-Zawahiri, who was hiding in Kabul, has also contributed to the organization's weakness and put it on the defensive. For the US administration and from a long-term perspective, the withdrawal was the right step, which did not harm the United States' superpower standing and even enabled greater attention and resources for coping with the main challenges currently posed by China and Russia.
Topic:
Security, Military Strategy, Military Intervention, and Conflict
Political Geography:
Afghanistan, Middle East, North America, and United States of America

406. The Israeli Economy in an Uncertain Global Environment

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

407. Normalization between Turkey and Israel: Will it Last?

Author:
Gallia Lindenstrauss and Remi Daniel
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The decision by Turkey and Israel to normalize their relations stems from several processes that brought the Turkish side to push for normalization and the Israeli side to respond affirmatively. Yet alongside the serious motivations of the two sides to continue this process, there are issues that could become obstacles. Among them are the developments between Israel and the Palestinians, Turkey-US relations, the dynamics of Turkey's integration in processes related to the Abraham Accords, and the nature of future Israeli plans regarding gas exports. Nonetheless, coping with challenges related to these issues will be easier with senior diplomatic representation present in both countries.
Topic:
Diplomacy, Bilateral Relations, Normalization, and Strategic Interests
Political Geography:
Europe, Turkey, Middle East, Israel, and Asia

408. To What Extent is Israel Prepared for the Growing Threat of UAVs?

Author:
Eden Kaduri, Liran Antebi, and Meir Elran
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The threat of unmanned aerial vehicles (UAVs) has recently figured in the headlines, following UAVs launched by Hezbollah in July 2022 aimed at the Israel natural gas platform in the Karish field, reports of a Hamas project to develop UAVs, a UAV attack against the American al-Tanf base in Syria, and reports that Russia has purchased Iranian UAVs. Such an arsenal in hostile hands constitutes a mounting threat to Israel. Assuming that UAVs, especially offensive ones, will join any high-trajectory fire against Israel, new thinking about the ways of dealing with the threat in the spheres of doctrine, development, and operations is needed. Technological and operational solutions for both the more conventional threat and a scenario of massive UAV attacks in combination with high-trajectory barrages are required. Inter alia, there should be greater reliance on lasers as a cheap solution with much higher output than the current solutions. In addition, preparations should be made for handling extreme scenarios, however unlikely.
Topic:
Security, Defense Policy, Military Strategy, and Drones
Political Geography:
Middle East and Israel

409. Two are Better than One: The Role of Qatar and Egypt in Gaza

Author:
Yoel Guansky and Ofir Winter
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The cooperation between Cairo and Doha has grown stronger – a development that until recently seemed nearly impossible. What lies behind the surprising rapprochement, how did it contribute to the swift conclusion of the recent campaign in Gaza, and what are the challenges and opportunities for Israel in light of the new situation?
Topic:
Diplomacy, Military Strategy, Bilateral Relations, and Strategic Interests
Political Geography:
Africa, Middle East, Israel, Gaza, Egypt, and Qatar

410. The State Comptroller’s Report on Cities with Mixed Jewish and Arab Populations in May 2021

Author:
Meir Elran
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
In May 2021, 520 sites were damaged when tensions peaked between the Jewish and Arab populations in Israel. The State Comptroller issued a special report on these events, focusing on the Police, the Border Police, and the country’s municipal systems. Based on the report, this article proposes policy recommendations to reduce the possibility of a revived conflagration
Topic:
Urban, Cities, Pluralism, and Identity
Political Geography:
Middle East and Israel

411. Non-Enforcement of the Law on Appropriate Representation in Israel: Implications for Social Resilience

Author:
Itzik Izhak Dessie and Shlomo Black
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Diversity in the public sector that reflects the diversity of a national population is a moral, ethical, social, and legal obligation. However, not one of the target groups in Israel is appropriately represented in the civil service, and in some government ministries and auxiliary units these populations are not represented at all. Israel must change its approach and increase its enforcement of measures to achieve the required diversity, in order to enable equal opportunity for all.
Topic:
Law Enforcement, Police, Resilience, and Social Control
Political Geography:
Middle East and Israel

412. Putin and Erdogan Meet in Sochi: Another Challenge to the Western Bloc

Author:
Bat Chen Druyan Feldman, Gallia Lindenstrauss, and Arkady Mil-Man
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The Presidents of Russia and Turkey held a four-hour meeting recently in Sochi, along the shores of the Black Sea, and discussed a range of subjects, from trade and energy to involvement in different combat arenas. What are the two leaders’ respective interests in their dialogue – and what should Israel conclude from the deepening cooperation between Ankara and Moscow?
Topic:
Diplomacy, Bilateral Relations, Hegemony, Conflict, and Strategic Interests
Political Geography:
Russia, Europe, and Turkey

413. The Abraham Accords, Two Years On: Impressive Progress, Multiple Challenges, and Promising Potential

Author:
Meir Ben-Shabbat and David Aaronson
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Broad economic relations, high-level policy meetings, and developing tourism ties: two years after the historic Abraham Accords were signed, the relations between Israel and the four states have flowered. At the same time, the potential of these relations is far from realized, the challenges remain, and Jerusalem should commit itself to strengthen the Accords – and even to expand them
Topic:
Diplomacy, Regional Cooperation, Treaties and Agreements, and Peace
Political Geography:
Middle East, Israel, Bahrain, United Arab Emirates, and Gulf Nations

414. Saudi Arabia and Israel: Normalization at a Snail’s Pace

Author:
Yoel Guzansky
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Since the Abraham Accords were signed, and particularly with Biden’s visit to the region, some have argued that Saudi Arabia will be the next country to normalize relations with Israel. However, complete normalization is far from imminent. What are the reasons for this, and how should Israel act toward the Saudi kingdom?
Topic:
Diplomacy, Bilateral Relations, Normalization, and Strategic Interests
Political Geography:
Middle East, Israel, and Saudi Arabia

415. The Rift in Fatah, which Threatens Security Stability, is a Challenge – and Not Only for Israel

Author:
Ali Al-Awar and Yohanan Tzoreff
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Charges of corruption, inadequate public support, and the lack of central control – the Fatah organization, led by Abu Mazen, suffers from difficult and unprecedented problems that threaten security stability in the West Bank and might lead to a scenario in which Hamas takes control of the Palestinian Authority. Israel should act to balance the precarious situation in the territories and strengthen the status of the Chairman of the PA
Topic:
Security, Leadership, Strategic Stability, and Palestinian Authority
Political Geography:
Middle East, Israel, and Palestine

416. Gazan Workers in Israel: Implications for Employment Regulations

Author:
Haggy Etkes and Wifag Adnan
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
New arrangements for the employment of Gazan workers in Israel in construction and agriculture began on August 1. This article presents the findings of a study on employment of Gazans in Israel: it demonstrates the rise in income among Gazans who work in Israel, while showing the difficulty related to regulation for workers employed in the manufacturing and service industries, which did not receive permits to employ Gazans
Topic:
Labor Issues, Regulation, COVID-19, and Migrant Workers
Political Geography:
Middle East, Israel, Palestine, and Gaza

417. Operation Breaking Dawn: Following the Successful Entry, an Exit Strategy is Required

Author:
Udi Dekel
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
After two days of successful fighting by Israel against Islamic Jihad, with a string of impressive achievements, the principal risk now is that Hamas will decide to emerge from the sidelines and join the campaign. This turn of events would necessarily lengthen the campaign and widen its scope. Therefore, Israel should try to end the operation, while it retains the upper hand
Topic:
Security, Military Strategy, Conflict, Violence, and Hamas
Political Geography:
Middle East, Israel, and Palestine

418. The Tenth NPT Review Conference: In the Shadow of Russian Aggression in Ukraine

Author:
Shimon Stein and Ephraim Asculai
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The 10th Non-Proliferation Treaty (NPT) Review Conference is underway in New York, against the background of the Russian invasion of Ukraine, in itself a gross violation of the treaty; Putin’s threat to resort to nuclear weapons; the deadlock in negotiations with Iran; and more. In these difficult circumstances, the participants will hopefully be able at the very least to issue a joint statement affirming the norms underlying the NPT
Topic:
Security, International Cooperation, Military Strategy, and Nonproliferation Treaty (NPT)
Political Geography:
Global Focus

419. Stateliness, IDF style

Author:
Meir Elran and Asa Kasher
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
“The Spirt of the IDF,” the IDF ethical code formulated twenty years ago, was updated recently with a new fundamental value: “stateliness” (mamlachtiyut, in Hebrew). What did Chief of Staff Kochavi intend with his addition of the term, and how can this value be best instilled among IDF soldiers and the general public?
Topic:
Military Strategy, Ethics, and Israel Defense Forces (IDF)
Political Geography:
Middle East and Israel

420. China below the Radar: Israel-US Strategic Dialogue on Technology

Author:
Assaf Orion and Shira Efron
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The statements issued by President Biden during his visit to the Middle East include little mention of China. However, close reading reveals that between the lines, China is quite present in the agreements reached by the President and Israel and Saudi Arabia. The dialogue on technology cooperation announced by Jerusalem and Washington, which is related directly to the Great Power competition, signals a new stage in partnership between the countries: Israel alongside the United States, even if not against China
Topic:
Diplomacy, Science and Technology, Bilateral Relations, and Rivalry
Political Geography:
China, Middle East, Israel, Asia, North America, and United States of America

421. The Iranian-Russian-Turkish Summit in Tehran

Author:
Raz Zimmt, Gallia Lindenstrauss, Bat Chen Druyan Feldman, and Arkady Mil-Man
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The three-way summit between Presidents Raisi, Putin, and Erdogan intended to present a unified front against the Western axis, which imposes various levels of sanctions on the three states. But despite the cordial photos and warm handshakes, there are serious disputes between Tehran, Moscow, and Ankara. They are rivals no less than they are partners, and it is doubtful whether their meeting will lead to any substantive gains
Topic:
Diplomacy, International Cooperation, Hegemony, and Strategic Interests
Political Geography:
Russia, Europe, Iran, Turkey, and Middle East

422. Cyber Challenges and Foreign Influence in the Upcoming Knesset Elections

Author:
David Siman-Tov, Tamir Hayman, and Amos Hervitz
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
In advance of the forthcoming Knesset elections, there are heightened efforts to obstruct foreign interference. Yet while most preventive activity focuses on technological attacks on the voting process and information systems relevant to the campaign, the efforts to grapple with malign influence on internal political discourse through the spread of fake news, verbal incitement, and more are insufficient. What should Israel do to confront the threat in the most effective fashion?
Topic:
Security, Elections, Cybersecurity, and Foreign Interference
Political Geography:
Middle East and Israel

423. Tehran Heightens the Pressure as it Strives to Thwart a Regional Air Defense System

Author:
Tamir Hayman and Sima Shine
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The heightened discussion of a “regional air defense alliance” was met by increased Iranian activity to block any such measure, including explicit threats that in turn prompted rejection of the idea by senior Gulf figures. It appears that at this stage, relations between Israel and the Gulf states that remain below the radar are preferable to grandiose public statements that do match the reality on the ground
Topic:
Defense Policy, Military Strategy, Missile Defense, Air Force, and Strategic Interests
Political Geography:
Iran and Middle East

424. Resolving the Gas Dispute with Lebanon: First Exhaust Diplomatic Efforts

Author:
Orna Mizrahi and Yoram Schweitzer
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Hezbollah’s launch of UAVs at the Karish gas field was a cognitive action directed at Israel and the Lebanese, and sparked much public criticism in the Lebanese political establishment, which is eager to reach an arrangement on the gas issue. At this stage, Israel is right not to react to the UAVs militarily, and should continue to try to exhaust the diplomatic route with its northern neighbor to demarcate the maritime border, while recognizing that the Shiite organization will attempt again to challenge the balance of deterrence
Topic:
Security, Defense Policy, Diplomacy, Military Strategy, and Hezbollah
Political Geography:
Middle East, Israel, and Lebanon

425. Transportation and National Security

Author:
Yossi Daskal
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Congestion on the roads, traffic accidents, and rising levels of air pollution – transportation affects the health, economy, and well-being of the residents of Israeli Therefore, discussions of national security must include deliberations on improving transportation in Israel
Topic:
Security, Infrastructure, Public Policy, and Transportation
Political Geography:
Global Focus

426. Five Good Years for the Campaign between Wars in Syria: What Comes Next?

Author:
Carmit Velensi and Eden Kaduri
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Israeli Air Force jets, according to foreign sources, have struck targets in Syria for over five years, in order to reduce Iran’s entrenchment in the theater. Despite their impressive achievements, these attacks are not enough to curtail the threat from the northern border to any significant degree. Israel would do well to formulate a new strategy vis-à-vis Syria, tailored to the changing reality – and the sooner this begins, the better
Topic:
Military Strategy, Strategic Interests, and Regional Power
Political Geography:
Middle East, Israel, and Syria

427. Hezbollah Challenges Israel: Time to Rethink the Policy of Restraint

Author:
Udi Dekel
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Israel is deterred, and as long as it does not respond to Hezbollah’s launch of UAVS at the drilling rig in the Karish gas field, Nasrallah, backed by Iran, will continue to test the limits of Israel’s restraint. Sometimes it is necessary to play different, surprising cards in order to return to previous rules of the game. Therefore, Israel should respond in the air campaign and attack the Hezbollah-operated air defense systems in Lebanon, even at the risk of escalation, which at the present time is likely to be limited
Topic:
Defense Policy, Military Strategy, Violence, and Hezbollah
Political Geography:
Middle East and Israel

428. An Israeli National Guard?

Author:
Meir Elran
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The establishment of the Israeli Guard was announced recently, based on lessons learned from the May 2021 clashes between Arab and Jewish Israelis. Comprising police officers and volunteers, the new body’s main purpose will be to provide the Border Police with much-needed reinforcement. This is an essential, welcome measure, no less important than the quantitative and qualitative additions to the regular police. Yet no less essential is the establishment of a genuine National Guard, which will be able to provide effective assistance in all emergency situations and mass disasters
Topic:
Security, Military Strategy, Governance, and Military Affairs
Political Geography:
Middle East and Israel

429. President Biden's Visit to the Middle East: Recommendations for Israel

Author:
Tamir Hayman and Eldad Shavit
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
President Biden’s forthcoming trip to Israel, intended to emphasize the US commitment to Israel’s security, brings with it a golden opportunity for Jerusalem on issues such as Iran, the campaign between wars, and Saudi Arabia – also on the Biden itinerary, where the President will attempt to achieve immediate economic gains
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, and Leadership
Political Geography:
Middle East, Israel, North America, and United States of America

430. Macron Put Down, France in Crisis: Implications for Israel

Author:
Remi Daniel
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
As a result of the recent elections in France, President Macron no longer enjoys a majority in parliament, and it remains unclear how he will be able to continue to lead his country. This unusual situation points to a severe political crisis that will require the various actors to adopt or devise new political methods. Beyond the internal significance for France, what are the implications for Israel?
Topic:
Foreign Policy, Elections, Leadership, and Foreign Interference
Political Geography:
Europe, Middle East, Israel, and France

431. The Race to Electric Vehicles: Technology, US-China Rivalry, and Big Money

Author:
Ariel Sobelman
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
In recent years Israel has become a leading player in auto tech, and China is interested in Israeli developments in a field that is expected to assume a significant role in the rivalry between Washington and Beijing. Therefore, it is important for Israel to define a national strategy on the issue, in order to avoid unnecessary involvement in the inter-bloc clash
Topic:
Green Technology, Innovation, Rivalry, and Electric Vehicles
Political Geography:
China, Asia, North America, and United States of America

432. Hezbollah’s Political Challenges following the Elections in Lebanon

Author:
Orna Mizrahi
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Although the Hezbollah camp was weakened in last month’s Lebanese parliamentary elections, the opposition is weak and divided. Meantime, Hezbollah maintains its status and influence, seeking to play a significant role in the next government. Nasrallah, determined to retain the organization’s independent military power, continues to try to strengthen Hezbollah’s image as a responsible national actor whose main concern is to ease Lebanon’s plight – and defend Lebanon against Israel
Topic:
Politics, Governance, Elections, and Hezbollah
Political Geography:
Middle East and Lebanon

433. The Iranian Nuclear Program Advances, with only a Slim Chance of Restoring Nuclear Agreement

Author:
Sima Shine and Ephraim Asculai
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Although the nuclear talks in Vienna were renewed over a year ago, a return to the deal is not on the horizon, and the regime of the ayatollahs has increased the pace of its violations of the deal, which will make it even harder for the parties to reach understandings. The coming weeks will be critical, and at this point the world powers, as well as Israel, must prepare for a reality where there is no agreement, accompanied by troubling Iranian progress on its nuclear program
Topic:
Diplomacy, Nuclear Weapons, Nuclear Power, Peace, and Strategic Interests
Political Geography:
Iran, Middle East, North America, and United States of America

434. Improving the Palestinian Authority’s Fiscal Outlook

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

435. Between Erdogan, Mitsotakis, and Biden: The Evolving Ankara-Athens-Washington Triangle

Author:
Gallia Lindenstrauss, Christoph Becker, and Remi Daniel
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
“The Prime Minister of Greece no longer exists for me,” declared Turkey’s President, reflecting a break in the rapprochement seen over the past year between Ankara and Athens. What lies behind this change of approach, and how does this affect Israel’s relations with Eastern Mediterranean states?
Topic:
Diplomacy, International Cooperation, Regional Cooperation, and Leadership
Political Geography:
Europe, Turkey, Greece, North America, United States of America, and Mediterranean

436. The Gulf States and the Palestinian Authority: On the Brink of Change?

Author:
Yoel Guzansky and Kobi Michael
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The Palestinian Authority leadership seeks to ease the tensions between the PA and the UAE and Bahrain – tensions that escalated after the Abraham Accords were signed. Should Israel be concerned about the expected rapprochement, or should it rather try to take advantage of the opportunities that might ensue?
Topic:
Diplomacy, Governance, Leadership, and Palestinian Authority
Political Geography:
Middle East, Palestine, and Gulf Nations

437. The Unavoidable Campaign to Destroy the Jenin Terrorist Hub

Author:
Kobi Michael and Ori Wertman
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Since the beginning of the current wave of terror, the IDF has focused its efforts specifically on the old-new terror capital of Jenin, which, while having had some success in thwarting attacks, has not eradicated the extensive terrorist system in the city and has contributed to the erosion of Israeli deterrence. Is it time to reconsider the course?
Topic:
Terrorism, Military Strategy, Counter-terrorism, and Strategic Interests
Political Geography:
Middle East and Israel

438. Growing Disagreements between President Raisi and his Conservative Rivals

Author:
Raz Zimmt
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
“Lacking knowledge and experience”: recent weeks have seen growing criticism of Iranian President Raisi, primarily regarding his failure to deal with the country’s severe economic crisis. Political criticism is neither new nor rare in the Islamic Republic, but it is now emerging from within Raisi’s conservative camp, less than a year after his government was formed
Topic:
Politics, Governance, Leadership, and Rivalry
Political Geography:
Iran and Middle East

439. US Relations with Arab Gulf States: A Passing Crisis?

Author:
Yoel Guzansky and Eldad Shavit
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
After US–Saudi relations deteriorated when Biden entered the White House, relations between the two countries have recently improved, with reports of a possible visit by the US president to Riyadh. What are the reasons for the rapprochement trend, and how can it affect Israel?
Topic:
Foreign Policy, Diplomacy, International Cooperation, and Leadership
Political Geography:
Middle East, North America, United States of America, and Gulf Nations

440. The Cognitive War between Israel and Hamas: Implications and Recommendations

Author:
Yoram Schweitzer and David Siman-Tov
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Hamas has been working for the past year, and more specifically in the current wave of terrorism, to present itself as a powerful organization that succeeds in defeating Israel – even when things do not correspond to the situation on the ground. Israel repeatedly falls into the pit that Hamas has dug, failing to reflect the relations of the military forces before both the Palestinian and Israeli public. How can we win the game of cognition?
Topic:
War, Military Strategy, Conflict, and Hamas
Political Geography:
Middle East and Israel

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

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

442. High-Power Laser Applications on the Future Battlefield

Author:
Yehoshua Kalisky
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
“Within a year we will operate a laser interception system” – Thus the Prime Minister Bennett declared at the yearly conference of the INSS. What are the differences between the various laser systems and what are the advantages and disadvantages of these types of air defense systems?
Topic:
Science and Technology, Military Strategy, Innovation, and Laser Technology
Political Geography:
Global Focus

443. Undocumented Palestinian workers in Israel: Did the Israeli COVID-19 Policy Boost their Employment?

Author:
Haggy Etkes and Wifag Adnan
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Three of the terrorist attacks that occurred in recent weeks in Israel were carried out by undocumented workers – a phenomenon that has grown due to the COVID-19 pandemic. How did the pandemic lead to a rise in the number of undocumented workers and how can the phenomenon be reduced?
Topic:
Labor Issues, Pandemic, COVID-19, Migrant Workers, and Undocumented Population
Political Geography:
Middle East, Israel, and Palestine

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

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

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

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

446. The Struggle for De Facto Sovereignty over the Temple Mount

Author:
Udi Dekel
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
19 Israelis were murdered in the terrorist attacks that occurred around the month of Ramadan, and once again al-Aqsa and the Temple Mount were the cause inciting the terrorists. Israel has yet to internalize that a campaign is underway for sovereignty over al-Aqsa. How should Israel act in advance of what are expected to be highly charged weeks ahead?
Topic:
Religion, Sovereignty, and Conflict
Political Geography:
Middle East, Israel, Palestine, and Jerusalem

447. The Upcoming Elections in Lebanon: Dubious Possibilities for Change

Author:
Orna Mizrahi and Orit Perlov
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
For the first time since the public protests and collapse of the economy, Lebanon will hold elections for its 128 parliamentary seats. Yet despite the desire for change in the political system and the concerns of Hezbollah and its allies as to their standing, it is doubtful whether the elections will lead to significant change in the Land of the Cedars
Topic:
Politics, Elections, Leadership, and State Building
Political Geography:
Middle East and Lebanon

448. One Month after the Start of the Escalation: The Fog Dissipates

Author:
Yohanan Tzoreff
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The escalation that began even before Ramadan has exacted a painful toll in Israel, and Hamas has indeed earned some achievements and improved its status. However, thus far events have not led to the organization’s desired outcome: mass demonstrations on several fronts, with the participation of Arabs from Israel, East Jerusalem, and the West Bank. Does Israel recognize the new challenges that Hamas attempts to pose? And what can be done now so that next year, when once again Passover and Ramadan coincide, this escalation does not recur?
Topic:
Territorial Disputes, Conflict, Hamas, and Escalation
Political Geography:
Middle East, Israel, and Palestine

449. The War in Ukraine: More Western Aid and Fear of Escalation

Author:
Eldad Shavit and Shimon Stein
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The United States and other NATO countries have thus far not deviated from their policy regarding the war in Eastern Europe – military and economic assistance, with no boots on the ground. Yet the more the war continues, and while there is a chance of significant escalation, does this policy stand to change?
Topic:
Military Strategy, Conflict, Escalation, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

450. The Gulf Countries and Turkey: (Re-)Drawing the Map of Alliances in the Middle East

Author:
Yoel Guzansky and Gallia Lindenstrauss
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
After a decade of hostility, and against the background of Turkey’s weak economic situation and Iran’s expanded regional presence, there is a significant improvement in the relations between Ankara and Abu Dhabi and Riyadh. What opportunities might this change bring for the region, and how might this affect Israel’s relations with Turkey and with the Gulf countries?
Topic:
International Cooperation, Alliance, Strategic Interests, and Regional Power
Political Geography:
Europe, Turkey, Middle East, and Gulf Nations

451. The Russia-Ukraine War: Where Do We Go from Here?

Author:
Zvi Magen and Sophie Kobzantsev
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Two months after the start of Russia’s invasion of Ukraine, the goal of a short campaign has clearly not been achieved. Russia now seeks to achieve gains while suspending the negotiations with Kyiv – both to improve its position in advance of future negotiations, and to deliver the message to the West that “you cannot stop us.”
Topic:
Military Strategy, Hegemony, Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

452. Between ISIS and Arab Citizens of Israel

Author:
Yoram Schweitzer, Ephraim Lavie, and Meir Elran
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Although the three Israeli citizens who committed the terrorist attacks in Beersheba and Hadera were identified with ISIS, the organization has not gained a foothold within Israel’s Arab society. In general, the Arab sector objects to the ISIS ideology and violent measures. Israel must try to preserve this norm, building on the public denunciation of terror by Arab leaders and the further social and economic integration of the Arab society in the state
Topic:
Security, Terrorism, ISIS, and Conflict
Political Geography:
Middle East and Israel

453. Seven Years Later: Is the War in Yemen Nearly Over?

Author:
Yoel Guzansky and Inbal Nissim-Louvton
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
After seven years of war in Yemen and more than 400,000 people killed, there are signs of dramatic developments that might lead to a turning point, with important implications for the region – and for Israel
Topic:
Security, War, Military Strategy, and Conflict
Political Geography:
Middle East and Yemen

454. Stalemate in Talks with Iran on a Return to the Nuclear Agreement

Author:
Sima Shine and Eldad Shavit
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The talks in Vienna between the United States and Iran ended with the text of the agreement almost complete. Conclusion of the deal rests on political decisions in Washington and Tehran, mostly concerning the Iranian demand to remove the Revolutionary Guards from the State Department’s list of terror organizations. At this stage the chances of finalizing the deal are equal to the chances of the talks collapsing. How should Israel act at this sensitive time?
Topic:
Security, Arms Control and Proliferation, Diplomacy, and Nuclear Weapons
Political Geography:
Iran and Middle East

455. Investigation of Russia's Crimes in Ukraine: A Turning Point for the International Criminal Court?

Author:
Ori Beeri and Pnina Sharvit Baruch
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The Chief Prosecutor at The Hague has already begun to investigate actions taken by Russia in the Ukrainian arena, while accelerating judicial proceedings and bureaucracy. This reflects a change of approach, which includes the prioritization of recent events, as part of an effort to strengthen the status of the Court. How will this affect the investigation of the war in Eastern Europe – and the investigation concerning Israel?
Topic:
Military Strategy, Conflict, International Crime, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and Global Focus

456. A Multi-Front Terror Campaign: How Should Israel Respond?

Author:
Kobi Michael and Udi Dekel
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
There is a tendency to see the recent terror attacks in Israel as a new wave of terror, destined, like any wave, to ebb following its limited duration. Alternatively, recent events might challenge this paradigm and reflect a multi-theater campaign led by Hamas, in cooperation with Islamic Jihad and with Iranian support. How should Israel act in face of the current situation?
Topic:
Security, Terrorism, Military Strategy, and Counter-terrorism
Political Geography:
Middle East and Israel

457. Walking a Fine Line: Turkey’s Mediation between Russia and Ukraine, and Relations with the West

Author:
Remi Daniel and Gallia Lindenstrauss
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Turkey’s reaction to the Russian aggression in Ukraine was among the more moderate responses heard from NATO members. With an eye to the post-war situation, Ankara is trying to walk a tightrope and not overly provoke either side. What lies behind this Turkish policy, and is it viable?
Topic:
Security, Diplomacy, Conflict, and Mediation
Political Geography:
Russia, Europe, Turkey, and Ukraine

458. The Ukrainian Civil Front – An Interim Assessment

Author:
Meir Elran, Uri Bar-Yosef, and Zvi Magen
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Most of Ukraine’s civilian population demonstrates a high degree of steadfastness during the war, rallying around the flag – and around the president. Nonetheless, the challenge to Ukrainian national resilience remains high, given the huge waves of migration, the losses in the hinterland, and the severe damage to national infrastructure and the local economy – which could have decisive effects on Ukraine’s ability to recover from the war
Topic:
Defense Policy, War, Military Strategy, and Conflict
Political Geography:
Russia, Europe, and Ukraine

459. Nonetheless, We Need to Maneuver

Author:
Gal Perl Finkel
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
“Defeat the enemy, defeat it quickly, in such a way that at the end of the day no one will ask who won and who lost.” These words of the former chief of staff continue to resonate today, and when voices emerge, arguing that the ground option should be a last resort, it is important to emphasize – only a combination of firepower, a defense system, and smart ground maneuvering can achieve a clear victory, one that we have not seen in a long time ago
Topic:
Security, Military Strategy, Conflict, and Israel Defense Forces (IDF)
Political Geography:
Middle East and Israel

460. After the Russian “Ruse,” China Looks for New Friends

Author:
Galia Lavi
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
With the Russian invasion of Ukraine, it would seem that Beijing and Moscow should be a united front against the West. But in actuality, China has been surprised by the scale of the Russian aggression and is now rethinking its position in the geopolitical arena. How will this affect the Middle East?
Topic:
Foreign Policy, Military Strategy, Conflict, and Strategic Interests
Political Geography:
Russia, China, Europe, and Asia

461. With Ramadan Approaching, the Fear of Escalation

Author:
Yohanan Tzoreff
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The recent terrorist attacks are a tangible illustration of the growing concern in the security establishment and among the public of possible escalation approaching and during Ramadan. Israel has a few possible ways to act to lower the flames, including political and security moves that can be taken by virtue of improved ties with states in the region
Topic:
Religion, Terrorism, ISIS, Conflict, and Escalation
Political Geography:
Middle East and Israel

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

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

463. The Russian Bear and the Molotov Cocktail: The Palestinians and the Crisis in Ukraine

Author:
Noa Shusterman
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Since the Russian invasion of Ukraine began, the Palestinians – unlike most of the world – have remained silent and not demonstrated any solidarity with the Ukrainian people. What lies behind this posture, and how might the focus on the war in Eastern Europe influence the Palestinian issue?
Topic:
Foreign Policy, Conflict, Palestinian Authority, Strategic Interests, and Russia-Ukraine War
Political Geography:
Middle East and Palestine

464. Intelligence and the War in Ukraine: The Limited Power of Public Disclosure

Author:
Ofek Reimer
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Months before the Russian invasion of Ukraine, the West began to disclose intelligence material on Putin’s plans – thereby using a policy tool that brings with it both advantages and risks. What did the intelligence disclosures achieve, and what might Israel learn from this experience?
Topic:
Defense Policy, Intelligence, Military Strategy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

465. Will Russia Use Nuclear Weapons in Ukraine?

Author:
Helit Barel
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
One month into the war in Ukraine, the nuclear threat remains. Will Russia’s President decide to use nuclear weapons on the battlefield, and thereby shatter the 77 years of nuclear deterrence? From a rational perspective, there is little likelihood of this occurring, but thus far Putin has not succeeded in realizing his goals in the Ukrainian theater – and Russia has a large arsenal of tactical nuclear weapons
Topic:
Arms Control and Proliferation, Nuclear Weapons, Military Strategy, and Strategic Interests
Political Geography:
Russia, Europe, and Ukraine

466. The United States and the Ukrainian Crisis: Implications for the Internal Arena and the Great Power Competition

Author:
Eldad Shavit
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
With the crisis in Eastern Europe continuing, Washington is maintaining a steady policy: military assistance to Ukraine and economic isolation of Russia, without “boots on the ground.” How is this policy perceived in the United States, particularly in advance of the midterm elections this coming November? How does the war influence the administration’s priorities that were outlined at the outset of its tenure?
Topic:
Foreign Policy, Hegemony, Leadership, and Strategic Interests
Political Geography:
North America and United States of America

467. The War in Ukraine and Strategic Hedging by Arab Countries

Author:
Yoel Guzansky
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The war in Ukraine has accelerated the strategic hedging by Arab states, even at the risk of (temporarily?) harming their relations with the United States. Does this policy overreach its mark, and will the United States ultimately want to settle the score with these states? How does this foreign policy redesign the Arab sphere?
Topic:
Foreign Policy, International Cooperation, Conflict, and Strategic Interests
Political Geography:
Middle East

468. Underreporting of Russian Investments Abroad: Are the Sanctions Undermined?

Author:
Haggy Etkes
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
There are indications of underreporting to Western authorities of Russian investments worth about 90 billion dollars, when Russian reports of investments abroad are compared with Western data. If correct, this undermines the effectiveness of the asset freezing that is part of the sanctions imposed by the West following Russia’s invasion of Ukraine
Topic:
Foreign Policy, International Cooperation, Sanctions, and Conflict
Political Geography:
Russia and Europe

469. The War in Ukraine: The Challenge of Shaping an Endgame

Author:
Udi Dekel
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Although nearly three weeks have passed since Putin invaded Ukraine, there is no framework for an endgame on the horizon. While the United States and the West would like to bring Putin to his knees as he sinks deeper in the Ukrainian mud, Washington must recognize that the longer the war continues, the chances increase for escalation to new levels that neither side wants. Therefore, before the situation is completely out of control, there must be a dialogue with Russia that can lead to an end to the war.
Topic:
Diplomacy, Military Strategy, Conflict, Peace, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

470. The Second Republic of Iran: Is Iran Moving toward a Constitutional Change?

Author:
Raz Zimmt
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
An initiative to replace the presidential system with a parliamentary system is once again on the agenda of the Islamic Republic, and this time enjoys support among conservatives as well as in the reformist-pragmatic camp – all for their respective reasons. Is there any viable possibility of this constitutional change in Iran?
Topic:
Governance, Constitution, Leadership, Transition, and Theocracy
Political Geography:
Iran and Middle East

471. Is Ukraine Poised to Join NATO and the European Union?

Author:
Oden Eran and Shimon Stein
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Following the Russian invasion of Ukraine, there are more and more voices in the West calling for Kiev’s acceptance into NATO and the European Union. However, this is not the time for rapid measures. Now that Putin has backed himself int a corner, the United States and Europe, in parallel with the harsh sanctions imposed on Russia and the assistance to Ukraine, must leave Moscow a way out
Topic:
Defense Policy, NATO, International Cooperation, and European Union
Political Geography:
Europe, Ukraine, and North America

472. Putin’s Dilemma

Author:
Ofer Shelah
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
After more than two weeks of war in Ukraine, initial conclusions can already be drawn. Chief among these is the realization that force application in complicated conditions can confront a decision maker with a serious dilemma, in which precisely a military achievement may destroy any possibility of scoring a political achievement
Topic:
Military Strategy, Leadership, Conflict, and Russia-Ukraine War
Political Geography:
Russia and Europe

473. Egypt and Israel: Renewable Energies for Peace

Author:
Ofir Winter
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Egypt’s intense preparations for the international climate conference that it will host in Sharm el-Sheikh were evident at the World Youth Forum that met there this past January. Many of the conference sessions were devoted to the climate issue, which is currently challenging the international system in general, and Egypt in particular. Cairo’s goal to serve as a regional hub for gas and renewable energies presents an opportunity for increased cooperation between Egypt and Israel – particularly at a time that Europe is confronted with the ramifications of the Russian invasion of Ukraine
Topic:
Diplomacy, Regional Cooperation, Bilateral Relations, and Peace
Political Geography:
Africa, Middle East, Israel, and Egypt

474. Germany and the Ukraine Crisis: End of the Age of Illusions

Author:
Shimon Stein
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Russia’s invasion of Ukraine has sent shockwaves through Germany’s political-security approach of the last decades, and recent speeches in the Bundestag reflect the government’s intention to make system-wide changes in security orientation. Germany must also understand how it missed warning signs from Russia over the years, and formulate a clear policy that addresses the emerging worrisome trends
Topic:
Security, Conflict, Strategic Interests, and Russia-Ukraine War
Political Geography:
Europe, Ukraine, and Germany

475. A Rising and Falling Alarm: A Strategy for a Joint Exercise in the Home Front Command

Author:
Liron Donnell
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The incoming chief of staff of the Home Front Command responds to an article by INSS researcher Meir Elran. She contends that contrary to the claim that the national home front exercise held this past November realized only part of its potential, the exercise in fact met all of its goals and saw many solid achievements. Moreover, the criticism of the event addressed issues that cannot be resolved in a single exercise
Topic:
Security, Defense Policy, Military Strategy, and Military Affairs
Political Geography:
Middle East and Israel

476. The Russian Invasion of Ukraine: Legal Aspects

Author:
Pnina Sharvit Baruch and Ori Beeri
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Since Russia invaded Ukraine, it has been the object of significant legal pressure. While the various legal measures have no power to stop the bloody war, they deliver a powerful, unequivocal message: any state that flagrantly violates international world and undermines the world order will suffer isolation, condemnation, sanction, and criminal investigations. Israel, which has seemed to lean to sitting on the fence, must join the international efforts against Russia, Otherwise it is liable to find itself on the wrong side of history
Topic:
Military Strategy, Law, Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

477. Hezbollah's Efforts to Restore its Domestic Standing: The Israeli Card

Author:
Orna Mizrahi and Yoram Schweitzer
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
The launch of a drone into Israeli territory this past February was yet another offensive cognitive activity by Hezbollah, intended to mask its deteriorating situation – in the domestic arena, stemming from the growing criticism of the organization in advance of the coming elections, scheduled for May, and vis-à-vis Israel, given its difficulty to maintain the “deterrence equation” that it defined. Jerusalem should expect additional acts of this sort, while preparing for a future situation in which the attacks become a security threat
Topic:
Defense Policy, Military Strategy, Conflict, and Hezbollah
Political Geography:
Middle East, Israel, and Palestine

478. Qatar’s Regional and International Standing is on the Rise

Author:
Yoel Guzansky
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
With the war in Ukraine and the possible energy shortage, Qatar’s international status as the world’s largest exporter of liquified natural gas (LNG) has risen. What opportunities now lie before Doha, and how might this situation affect Israel?
Topic:
International Cooperation, Military Strategy, Hegemony, and Regional Power
Political Geography:
Qatar and Gulf Nations

479. The Ukraine Crisis: An Interim Analysis

Author:
Eldad Shavit, Zvi Magen, and Shimon Stein
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Although Russia’s invasion of Ukraine began only days ago, it is already clear that with this belligerence Putin has upset the world order that has existed since the Second World War. The Western bloc has already begun to realign and is presenting a unified and forceful stance vis-à-vis Moscow. Israel can no longer avoid taking a clear stand and siding fully with the countries opposing Russia
Topic:
Military Strategy, Conflict, Strategic Interests, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

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

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

481. What Drives Credit Risk? Empirical Evidence from Southeast Europe

Author:
Nikola Fabris and Nina Vujanović
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Bank stability is an important aspect of financial stability, especially in bank-centric systems such as those in Southeast Europe. The financial crisis has shown that there is a particular need to monitor credit and other similar risks. Hence, it is important to analyse risks affecting the stability of both the banking sector and the financial system as a whole. To that end, central banks have developed macroprudential policies aiming to safeguard financial stability. However, little is known about the drivers of some financial risks. In that context, this study analyses the determinants of credit risk, which is the most prominent risk in the banking sectors of three selected Southeast European economies – Montenegro, Kosovo* and Bosnia and Herzegovina. Dynamic panel data techniques were applied to 48 banks, which represent almost the entire banking sectors in the respective countries. The empirical evidence has shown that both macroeconomic and bank-specific determinants represent influential factors driving credit risk in Southeast Europe. Particularly important macroeconomic factors affecting credit risk are business cycle and sovereign debt. On the other hand, bank size, capital levels, credit activity and profitability are the most prominent factors influencing credit risk in the region.
Topic:
Risk, Credit, Financial Stability, and Banking
Political Geography:
Eastern Europe, Kosovo, Montenegro, and Bosnia and Herzegovina

482. Industrial Robots, and Information and Communication Technology: The Employment Effects in EU Labour Markets

Author:
Stefan Jestl
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper explores the effects of industrial robots and information and communication technology (ICT) on regional employment in EU countries. The empirical analysis relies on a harmonised comprehensive regional dataset, which combines business statistics and national and regional accounts data. This rich dataset enables us to provide detailed insights into the employment effects of automation and computerisation in EU regions for the period 2001-2016. The results suggest relatively weak effects on regional total employment dynamics. However, employment effects differ between manufacturing and non-manufacturing industries. Industrial robots show negative employment effects in local manufacturing industries, but positive employment effects in local non-manufacturing industries. While the negative effect is concentrated in particular local manufacturing industries, the positive effect operates in local service industries. IT investments show positive employment effects only in local manufacturing industries, while CT investments are shown to be irrelevant for employment dynamics. In contrast, software and database investments have had a predominantly negative impact on local employment in both local manufacturing and non-manufacturing industries.
Topic:
Labor Issues, European Union, Employment, Industry, Robotics, and Labor Market
Political Geography:
Europe

483. Does my Computer Protect me from Burnout? Cross-country Evidence on the Impact of ICT use within the Job Demands-Resources Model

Author:
Sandra Leitner and Roman Stöllinger
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper uses a large sample of employees from 35 European countries to study the direct and indirect effects of ICT use on burnout and work engagement as two opposite poles of employee psychological health, where the former comprises the three dimensions of exhaustion, cynicism and professional efficacy. It applies the Job Demands-Resources (JD-R) model and analyses the mediating role of three job demands (work extensity, work intensity, social demands) and four job resources (social support from management or colleagues, job control, rewards) on workers’ psychological health. It accounts for the importance of the place of work for the effect of ICT use on workers’ psychological health by differentiating between four types of workers: home-based workers, highly mobile workers, occasionally mobile workers, and workers who always work at the employer’s premises. The results show that ICT use is associated with lower levels of exhaustion but is unrelated to work engagement. Furthermore, work intensity, work extensity, social demands and rewards mediate the effect of ICT use on exhaustion, while job control and rewards mediate the effect of ICT use on work engagement. Our multi-group analysis attributes the negative effect of ICT use on exhaustion mainly to occasionally mobile workers and to workers who always work at the employer’s premises and highlights that the factors that mediate the effect of ICT use on workers’ psychological health differ across the four types of workers. Home-based workers stand out in two important respects: first, ICT use per se is unrelated to burnout; second, only one factor – work intensity – mediates the effect of ICT use on burnout, but its effect is especially strong.
Topic:
Labor Issues, Work Culture, Engagement, Computers, and Burnout
Political Geography:
Europe

484. Comparative Advantages in the Digital Era – A Heckscher-Ohlin-Vanek Approach

Author:
Dario Guarascio and Roman Stöllinger
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper revisits the Heckscher-Ohlin-Vanek (HOV) theorem and investigates its fit for digital tasks and ICT capital, which both represent endowment factors that are expected to shape the digital transformation. We use a theory-consistent methodology for calculating the measured net factor content of trade (Trefler and Zhu, 2010) and apply it to a unique dataset on digital and non-digital tasks performed in detailed occupations, as well as recent data on ICT capital stocks. Equipped with these data we provide new evidence on the factor-based trade patterns for 25 EU countries and use it to test the HOV theorem. Overall, the performance of the sign test and the rank test is good if not impressive. In 83% of the cases countries are net exporters of those factors with which they are abundantly endowed, with a higher score achieved for digital tasks than for ICT capital. We conclude that the fit of the HOV theorem for highly relevant endowments of the digital era is as good as that of traditional endowment factors.
Topic:
European Union, Business, Trade, and Digital Transition
Political Geography:
Europe

485. The Impact of ICT and Intangible Capital Accumulation on Labour Demand Growth and Functional Income Shares

Author:
Robert Stehrer
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper investigates whether the diffusion of tangible IT and CT capital and intangible capital asset types has an impact on labour demand growth and the share of labour income in total income at the industry and country level. The econometric analysis is derived from a Cobb-Douglas production function taking empirical stylized facts into account. The effects of technical progress embodied in the various forms of capital impact along inter-industry and intercountry production linkages, which are considered by using global value chain indicators. The analysis is broken down to examine the influence on different types of labour, including the dimensions of gender, age, and educational attainment. Accumulation of ICT assets have generally insignificant and in some cases small positive effects on labour demand and income shares, though patterns differ across types of labour. Intangible assets show a positive relation with respect to labour demand growth.
Topic:
Labor Issues, European Union, Capital, Income, and Capital Accumulation
Political Geography:
Europe

486. Salmonella Program in the European Union and the Trade Dispute with Brazil at the World Trade Organisation: A Partial Equilibrium Framework

Author:
Mahdi Ghodsi
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This contribution provides a cost-benefit analysis in a partial equilibrium framework to investigate the welfare consequences of a prohibitive regulatory non-tariff measure (NTM) in the form of a sanitary and phytosanitary (SPS) measure aimed at a foreign product with perceived negative characteristics. Two groups of consumers are distinguished: one that is indifferent to the foreign product’s negative attributes, and another that is concerned about them. Different scenarios concerning the welfare gains from the introduction of an NTM are explored. The results depend on consumer awareness and information policies pursued by the government of the importing country or group of countries. The theoretical model is illustrated with data on the production and importation of prepared poultry in the EU. This paper focusses on the recent Dispute Settlement (DS) case 607 at the World Trade Organization (WTO) that was initiated by Brazil in November 2021 to consult with the EU on restrictive measures imposed on the importation of prepared and preserved poultry. These restrictions are in line with the comprehensive and restrictive programme legislated by the EU to combat salmonella spp. The findings suggest that the consumer surplus may be reduced after the imposition of prohibitive SPS measures because the market structure changes from a duopoly to a monopoly. However, when the perceived harm of the bad product increases and the portion of the concerned population in society regarding the bad product increases, the change in the consumer surplus also increases.
Topic:
World Trade Organization, European Union, Welfare, Trade Policy, and Disputes
Political Geography:
Europe, Brazil, and South America

487. The Cyclical Behaviour of Fiscal Policy During the Covid-19 Crisis

Author:
Philipp Heimberger
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the cyclicality of fiscal policy (discretionary versus automatic) for 28 advanced economies over 1995-2021 by paying special attention to the Covid-19 crisis. We find evidence that discretionary fiscal policy during the Covid-19 crisis (2020-2021) was significantly more countercyclical than before – in particular in the Eurozone. We do not find comparable evidence for more counter-cyclicality during the financial crisis or Euro crisis, which lends support to the argument that discretionary fiscal policy responded especially forceful to stabilise the economy during the Covid-19 crisis. Furthermore, automatic fiscal stabilisers contributed significantly to counter-cyclical stabilisation, although their performance over 2020-2021 was more in line with the past than for discretionary fiscal policy. Overall, fiscal policy in non-Eurozone advanced countries is more countercyclical than in the Eurozone. However, the cyclicality varies markedly across countries. Our findings shed light on how the cyclical behaviour of fiscal policy varies across countries and time.
Topic:
Financial Crisis, European Union, Fiscal Policy, and COVID-19
Political Geography:
Europe

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

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

489. Cumulative Climate Shocks and Migratory Flows: Evidence from Sub-Saharan Africa

Author:
Salvatore Di Falco, Anna B. Kis, and Martina Viarengo
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We re-examine the effects of negative weather anomalies during the growing season on the decision to migrate in rural households in five sub-Saharan African countries. To this end we combine a multi-country household panel dataset with high-resolution gridded precipitation data. We find that while the effect of recent adverse weather shocks is on average modest, the cumulative effect of a persistent exposure to droughts over several years leads to a significant increase in the probability to migrate. The results show that more frequent adverse shocks can have more significant and long-lasting consequences in challenging economic environments.
Topic:
Climate Change, Migration, Urban, Rural, and Economic Development
Political Geography:
Sub-Saharan Africa

490. Introducing Third Way’s US-China Digital World Order Initiative

Author:
Valerie Shen and Jayson Browder
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Third Way
Abstract:
If it wasn’t clear three months ago, it is clear now: the next global era will be defined by democracy versus autocracy. In this competition, a new and decisive divide pits America’s approach of “digital democracy” against China’s approach of “digital autocracy.” This great divide places the US and allies on one side and China's unfettered access to sensitive data on the other. China’s digital authoritarianism has been described as "one giant QAnon" and is ubiquitous among the 1.4 billion inhabitants of the country. Moreover, one of the greatest threats to American national security interests is if China prevails in exporting and normalizing its model of digital supremacy. China’s global network of surveillance systems is antithetical to liberal democratic values, as it monitors, punishes, and conditions citizens, as well as influences them through automated disinformation campaigns. China’s ambition for global digital supremacy is real and supported by aggressive diplomatic efforts and massive financial investments. The effort by the United States and like nations to maintain a peaceful and prosperous world order will require a level of sophistication and commitment unrivaled in our history. China is not only an adversary. It is sometimes a partner whose massive economy is deeply entwined with that of the US and other friendly nations. This is not the zero-sum game of the Cold War conflict, and the hope is that it never becomes so. Will liberal democracies strengthen and proliferate or weaken and dwindle in the 21st century? The Chinese state intends to shape the global digital order in its image by redrawing technological norms and standards. Ultimately, the US-China national security competition may hinge on who sets the digital world order.
Topic:
Science and Technology, Authoritarianism, Democracy, Digital Economy, Innovation, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

491. World Economy Autumn 2022: Global growth falters

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

492. German Economy Summer 2022: Slowly progressing recovery

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

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

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

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

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

495. Russia-Ukraine: Dangerous Stalemate

Author:
European Institute of Peace
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
European Institute of Peace (EIP)
Abstract:
Seven years have passed this month since the Package of Measures for implementation of the Minsk agreements called for an “immediate and comprehensive ceasefire in certain areas of the Donetsk and Luhansk regions of Ukraine and its strict implementation…”. Despite endorsement by the UN Security Council Resolution 2202 (February 2015), little or no progress was made in implementing the Minsk agreements, with continued conflict and violations of the ceasefire reported by the OSCE Special Monitoring Mission to Ukraine (SMM) on an almost daily basis. Almost 14.000 Ukrainians lost their lives, thousands more were injured, and millions displaced. With no effective ceasefire in place, this is not a “frozen conflict,” and violent escalation may happen by intent, misunderstanding or miscalculation. Today an even more dangerous stalemate has emerged. Deep international concerns have been raised about the reported Russian military build-up along the country’s borders with Ukraine. Further raising the stakes, broader security issues have re-surfaced with Moscow demanding inter alia guarantees from the US and NATO to refrain from any further enlargement of the alliance, including the accession of Ukraine and other states. Despite intensive and on-going international consultations at all levels, there are no signs yet of de-escalation of the crisis. This report has been prepared in consultation with a group of Ukrainian and Russian experts who have been conducting quiet discussions during the past two years on the Minsk peace process and, more broadly, relations between the Russian Federation and Ukraine. These talks are held under the auspices of the European Institute of Peace.[1] Out of deep concern with present developments, it was decided to share more widely the broad consensus among the participants about the urgent need for a sustainable and durable ceasefire as a prerequisite for implementing the Minsk agreements. In a recent encouraging development, the advisers to the Normandy Four (N4) heads of state and government have supported in a joint statement after their meeting in Paris “unconditional observance of the ceasefire of 22 July 2020 regardless of differences on other issues of the implementation of the Minsk agreements.”[2] Reportedly, a follow-up meeting in Berlin on 10 February 2022 yielded no tangible results yet. Even if the Minsk peace process has come to a ground halt at present, it should be realized that the same political and security issues will have to be addressed in any renewed peace efforts in whatever format to restore peace in east Ukraine. This report highlights that any attempt to overcome the current political stalemate needs to be supported by concrete steps to establish a sustainable ceasefire at the ground-level of the conflict. The report analyses the major reasons for why a sustainable ceasefire was not implemented thus far, and offers a ceasefire management tool referred to as a “Coordination and Verification Mechanism” (CVM).
Topic:
Military Strategy, Violence, Peace, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

496. Hidden Defaults

Author:
Sebastian Horn, Carmen M. Reinhart, and Christoph Trebesch
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
China’s lending boom to developing countries is morphing into defaults and debt distress. Given the secrecy surrounding China’s loans, also the associated defaults remain “hidden”, as missed payments and restructuring details are not disclosed. We construct an encompassing dataset of sovereign debt restructurings with Chinese lenders and find that these credit events are surprisingly frequent, exceeding the number of sovereign bond or Paris Club restructurings. Chinese lenders follow a resolution approach reminiscent of 1980s Western lenders; they seldom provide deep debt relief with face value reduction. If history is any guide, multi-year debt workouts with serial restructurings lie in store.
Topic:
Development, International Cooperation, Finance, Bonds, and Influence
Political Geography:
China and Asia

497. The politicized pandemic: Ideological polarization and the behavioral response to COVID-19*

Author:
Gianluca Grimalda, David Pipke, Fabrice Murtin, and Louis Putterman
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
We investigate the relationship between political attitudes and prosociality in a survey of a representative sample of the U.S. population during the first summer of the COVID-19 pandemic. We find that an experimental measure of prosociality correlates positively with adherence to protective behaviors. Liberal political ideology predicts higher levels of protective behavior than conservative ideology, independently of the differences in prosociality across the two groups. Differences between liberals and conservatives are up to 4.4 times smaller in their behavior than in judging the government’s crisis management. This result suggests that U.S. Americans are more polarized on ideological than behavioral grounds.
Topic:
Politics, Ideology, Pandemic, COVID-19, and Protection
Political Geography:
North America and United States of America

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

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

499. Cutting through the Value Chain: The Long-Run Effects of Decoupling the East from the West

Author:
Gabriel Felbermayr, Alexander Sandkamp, and Hendrik Mahlkow
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
With ever-increasing political tensions between China and Russia on one side and the EU and the US on the other, it only seems a matter of time until protectionist policies cause a decoupling of global value chains. This paper uses a computable general equilibrium trade model calibrated with the latest version of the GTAP database to simulate the effect of doubling non-tariff barriers - both unilateral and reciprocal - between the two blocks on trade and welfare. Imposing trade barriers almost completely eliminates bilateral imports. In addition, changes in price levels lead to higher imports and lower exports of the imposing country group from and to the rest of the world. The targeted country group increases exports to the rest of the world and reduces imports. Welfare falls in all countries involved, suggesting that governments should strive to cooperate rather than turning away from each other. By imposing a trade war on Russia, the political West could inflict severe damage on the Russian economy because of the latter’s smaller relative size.
Topic:
International Cooperation, International Trade and Finance, European Union, Conflict, Trade Wars, Protectionism, and Rivalry
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

500. Do various innovation linkages enhance innovation? International evidence

Author:
Rajeev K. Goel
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different innovation linkages to innovation deserves more attention. Are the different innovation linkages equally complementary to research inputs in fostering innovation? This paper addresses the contributions of different innovation linkages to innovation, across two different measures of innovation. We find that a broader index of innovation linkages shows positive and significant spillovers on innovation, while joint ventures and university-industry collaborations fail to exert a significant influence. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases, while more FDI boosts one type of innovation output. These findings are uniquely shown to be sensitive across least- and most innovative nations when a quantile regression is employed. Implications for technology policy are discussed.
Topic:
Development, Science and Technology, Innovation, and Research and Development
Political Geography:
Global Focus