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21. Getting global development back on track: Focus and start at home

Author:
Erwin van Veen
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Since 2019, realisation of the Sustainable Development Goals (SDGs) has gone from patchy to off-track as a result of Covid-19, global price shocks caused by the war in Ukraine and accelerating climate change. About 100 million people were thrown back into extreme poverty and hundreds of millions more face reduced health, livelihood and income prospects for the rest of their lives. The climate change agenda also took a backseat. Long-term global effects will be profound in terms of growing migration flows, further climate degradation and, likely, more conflict, authoritarianism and populism. Putting global development back on track requires focusing on fewer priorities rather than the entire SDG agenda, namely those with the highest negative impact on developing countries: conflict, climate change and inequality. Addressing these problems primarily requires middle- and high-income countries to reduce their contribution to climate deterioration and inequality at home, and to increase their support for conflict resolution efforts elsewhere at a faster rate. While it may seem counterintuitive, the greatest development contributions that developed countries can make lie at home.
Topic:
Climate Change, Development, and Sustainable Development Goals
Political Geography:
Global Focus

22. Al-Sudani’s first 100 days – Or how to keep everyone happy

Author:
Erwin van Veen
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The job of an Iraqi Prime Minister is a complex balancing act on both the domestic and international fronts. To begin with, there is the challenge of managing competition between the country’s factitious elites. Then there is the unresolved tension between self-interested elites and a citizenry that has largely lost faith in its political leaders. Finally, there is the foreign policy dilemma of balancing political and economic dependence on both the US and Iran. By these standards, Prime Minister Mohammed Shiya al-Sudani’s first 100 days in office have provided a crash course on how to please all sides. He has allocated government positions to his supporters with gusto, provisionally left most Sadrist bastions of power in the state untouched (even though Sadrists are excluded from the government) and offered extensive ‘bread and games’ for the population by promising jobs and social security. Al-Sudani has furthermore sought to reassure opposing foreign actors through a hitherto fairly balanced foreign policy. His approach has been enabled by the broad coalition of Iraqi political elites that brought him to the premiership, along with record oil revenues that help grease the wheels of patronage politics. While structural reforms in politics, administration and economics are overdue, they will not happen because Iraq’s political leaders have no need for them in the immediate term. However, unresolved elite contention, a lack of public investment and the absence of reform mean that Iraq is likely heading for tougher times within the space of a couple of years.
Topic:
Foreign Policy, Domestic Politics, Elites, and Public Investment
Political Geography:
Iraq and Middle East

23. Trading short-term gains for long-term costs: the Egyptian political economy under al-Sisi

Author:
Matteo Colombo
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Egypt’s political economy has been operating on the basis of three core principles over the last few decades. First, the country’s political authorities set strategic economic objectives in a top-down manner. Second, the power elite supports the political authorities and, in exchange, tightly supervises homegrown and foreign investment to generate revenues and job opportunities, as well as private benefits. Third, Egyptian citizens acquiesce, willingly or unwillingly, in this division of power that mostly benefits the political authorities and power elites in exchange for improvements in their livelihoods. Since 2014, President al-Sisi has held closely to these principles but relied increasingly on Egypt’s military networks (part of the power elite) to boost economic growth. This strategy has produced short-term gains – informal jobs and an array of consumer goods – at the expense of long-term economic prospects. In particular, the military’s economic influence has deepened some of Egypt’s structural problems: low productivity, inequality, informal unemployment and a suppressed private sector. This limits the future sustainability of the current economic model. Improving Egypt’s economic prospects requires reducing the role of the state – especially the military – in the economy in terms of decreasing the number of associated enterprises and lightening the regulatory framework. However, this is nearly impossible to realise in sectors in which the military already has a dominant profile, such as construction and extractives, because its support is essential for al-Sisi to maintain power. A more promising alternative for European policy makers to consider is influencing the Egyptian government to limit military influence in sectors with growth potential where the military is largely absent, such as manufacturing and Information and Communications Technology (ICT). A government strategy that prevents further military involvement in these sectors, crafts a regulatory framework conducive to private investment and invites foreign funding, can help Egypt realise greater economic growth and higher fiscal revenues.
Topic:
Development, Political Economy, Economy, and Abdel Fattah el-Sisi
Political Geography:
Middle East and Egypt