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1. The Political Economy of India’s Transition to Goods and Services Tax

Author:
Chanchal Kumar Sharma
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
What kept the Goods and Services Tax (GST) from becoming a reality in India for a quarter of a century after the adoption of the structural adjustment programme in 1991? What made it possible in 2016? To what extent the Indian model of GST reflects a compromise between the need to keep fiscal federalism intact and to respond to a more global economic imperative? To what extent India’s transition to a concurrent dual GST has brought about a change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions? This paper investigates these issues and shows that the shifts in the indirect tax regime in India since independence have taken place within the structural context of constitutional rules, the economic policy paradigm and political dynamics. Party congruence after 2014 helped to facilitate the introduction of the GST, but the shape thereof was strongly marked by path-dependent logics and the role of state governments as institutional veto players. In addition, the paper examines the ways in which India’s transition to a concurrent dual GST has brought about a fundamental change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions.
Topic:
Development, Political Economy, Governance, Tax Systems, Institutions, and Services
Political Geography:
India and Asia

2. SMARTer Indicators for Decent Work in a Post-2015 Development Agenda: A Discussion and a Proposal

Author:
Jann Lay, Sarah Lindemann-Komarova, Sebastian Prediger, and Martin Ostermeier
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The aim of this paper is to contribute to the ongoing discussion about the design of a post-2015 development framework by proposing indicators to monitor employment outcomes. Our analysis of the current MDG employment indicators shows that measurement problems, the inappropriate use of aggregate statistics, ambiguous interpretability, and assumptions that often do not hold true in the context of developing countries are major shortcomings of the current indicators. Based on this critique, we develop a new set of indicators for productive employment and decent work. We propose four indicators: (i) the growth of labor value added per worker, (ii) the working poverty rate, (iii) (a) the share of workers receiving less than an absolute labor income and (b) the share of workers receiving less than 60 percent of the median labor income. We demonstrate the empirical application of these indicators using the country cases of Uganda and Peru.
Topic:
Development
Political Geography:
Uganda and Peru

3. Sino-African Encounters in Ghana and Nigeria: From Conflict to Conviviality and Mutual Benefit

Author:
Ben Lampert and Giles Mohan
Publication Date:
03-2014
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
China's renewed engagement with Africa is often framed as a form of imperialism, with the growing number of Chinese migrants on the continent seen as an exploitative presence. Such claims have generally been based on little evidence, and where more detailed empirical studies have emerged, they tend to emphasise the tensions and conflicts that have arisen. Our research on Chinese migrants in Ghana and Nigeria suggests that while there are concerns about Chinese competition in the informal retail sector and the treatment of local labour in Chinese enterprises, narratives of apparent tension and conflict are often much more nuanced than is generally recognised. Furthermore, more convivial and cooperative relations have also emerged and these have facilitated important opportunities for Africans to benefit from the Chinese presence. However, while the presence of Chinese migrants in African socio-economic life can be more integrated and mutually beneficial than is often assumed, the ability of African actors to benefit from this presence is highly uneven, placing the politics of class at the centre of any understanding of Sino-African encounters.
Topic:
Development and Migration
Political Geography:
Africa, China, and Nigeria

4. Contingent Democrats in Action: Organized Labor and Regime Change in the Republic of Niger

Author:
Sebastian Elischer
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The effects of organized labor on regime change in developing countries are not clear‐cut. Optimists argue that union agitation is conducive to both democratic transition and consolidation processes. Pessimists hold that unions will support any regime that is conducive to their demands. Accordingly, unions may support regime transitions; however, once their economic interests are under threat, they will jeopardize the subsequent consolidation process. Systematic studies on the effects of organized labor on regime change in sub‐ Saharan Africa are sparse and largely confined to the (pre)transition phase. This article examines the role of organized labor in Niger between 1990 and 2010. Given the high number of regime breakdowns during the period, a longitudinal study of Nigerien labor enables a critical examination of motives and actions of organized labor toward different regime types. In contrast to other recent findings on African unionism, the article confirms the pessimistic view.
Topic:
Civil Society, Democratization, Development, Regime Change, and Labor Issues
Political Geography:
Africa

5. Online Consultation and Citizen Feedback in Chinese Policymaking

Author:
Steven J. Balla and Zhou Liao
Publication Date:
11-2013
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
In recent years, the Chinese government has increasingly utilised online consultation as a means of providing citizens with opportunities to offer feedback on draft laws and regulations. As little is known about the operation of online consultation, this article analyses the content of citizen feedback submitted on a revision to China's health system proposed by the National Development and Reform Commission. Citizen engagement with the political and substantive issues under consideration is crucial if online consultation is to impact government decision-making and enhance the performance of laws and regulations. This paper's main findings are that it was common for comments to address substantive issues in great depth, as well as express negative assessments of government decisions. This suggests that online consultation holds promise as an instrument of governance reform, which the Chinese Communist Party has embraced as a means of cultivating popular support.
Topic:
Development, Government, Law, and Reform
Political Geography:
China

6. Hooray for Global Justice? Emerging Democracies in a Multipolar World

Author:
Julian Culp and Johannes Plagemann
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Rising powers are fundamentally shifting the relations of power in the global economic and political landscape. International political theory, however, has so far failed to evaluate this nascent multipolarity. This article fills this lacuna by synthesizing empirical and normative modes of inquiry. It examines the transformation of sovereignty exercised by emerging democracies and shows that – in stark contrast to emerging democracies' foreign policy rhetoric – the "softening" of sovereignty has become the norm. The present paper assesses this softening of sovereignty on the basis of a "democratic-internationalist" conception of global justice. This conception holds that global justice demands the establishment of reasonably democratic transnational relations that enable people themselves to determine what else justice requires. Because we find that the exercise of soft sovereignty by emerging democracies contributes to the realization of reasonably democratic transnational relations, we conclude that this nascent multipolarity ought to be welcomed from the democratic-internationalist view of global justice.
Topic:
Democratization, Development, Economics, Emerging Markets, Globalization, and Sovereignty
Political Geography:
Brazil

7. Iran and the Arab Spring: Between Expectations and Disillusion

Author:
Henner Fürtig
Publication Date:
11-2013
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The 1979 Iranian Revolution undoubtedly belongs to the "great" revolutions of modern times – all of which were characterized by universalistic efforts and the claim to have set new social, political and cultural norms with global validity. In this sense, the Iranian revolutionaries felt the obligation to actively reintroduce Islam as a revelation for the whole world, not only for Muslims. Yet, they soon became aware that most Muslims viewed their export strategy as either an attempt to enforce Shiism, or – even worse – to conceal mere national megalomania. Therefore, the current leadership argues that the revolution should no longer be exported actively, but that Iran should serve as an example. Consequently, Supreme Leader Khamenei called the events of the Arab Spring a "natural enlargement of Iran's Islamic revolution of 1979" and credited his country for being the catalyst of this "Islamic awakening." The present article will analyze selected regional reactions to the Islamic awakening concept, which did not altogether meet Iranian expectations.
Topic:
Arms Control and Proliferation, Development, Islam, Weapons of Mass Destruction, and Armed Struggle
Political Geography:
Iran and Middle East

8. India's Turn in Climate Policy: Assessing the Interplay of Domestic and International Policy Change

Author:
Joachim Betz
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
India has long been regarded as a deal-breaker in international climate negotiations; it was at the summit in Copenhagen that India first abandoned its old strategic line and made a commitment to reduce carbon emissions voluntarily. This shift was accompanied by a proliferation of domestic initiatives to save energy, to develop regenerative energies, etc. Traditional IR approaches remain insufficient to explain this policy shift – which is the aim of this paper – insofar as they fail to adequately take into account the fact that climate policies have to confront two audiences: a domestic and an international one, each presenting different tactical necessities for official reaction. On the international front, we argue that globally, India intended to be perceived as a responsible actor, one deserving of a greater say in global governance matters. On the domestic level, shrinking national energy reserves and mounting import dependence made the co-benefit of energy saving in reducing greenhouse gas emissions evident. The shift was made easier because important business associations aligned with a more eco-friendly development perspective and because the reduction commitments made by the Indian government on an international stage did not demand very stringent domestic emission reductions.
Topic:
Climate Change, Development, Energy Policy, and Globalization
Political Geography:
India

9. Credit-constrained in Risky Activities? The Determinants of the Capital Stocks of Micro and Small Firms in Western Africa

Author:
Jann Lay, Michael Grimm, and Simon Lange
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Micro and small enterprises (MSEs) in developing countries are typically considered to be severely credit constrained. Additionally, high business risks may partly explain why the capital stocks of MSEs remain low. This article analyzes the determinants of the capital stocks of MSEs in poor economies focusing on credit constraints and risk. The analysis is based on a unique, albeit cross-sectional but backward-looking, micro data set on MSEs covering the economic capitals of seven West-African countries. The main result is that capital market imperfections indeed seem to explain an important part of the variation in capital stocks in the early lifetime of MSEs. Furthermore, the analyses show that risk plays a key role in capital accumulation. Risk-averse individuals seem to adjust their initially low capital stocks upwards when enterprises grow older. MSEs in risky activities owned by wealthy individuals even seem to over-invest when they start their business and subsequently adjust capital stocks downwards. As other firms simultaneously suffer from capital shortages, such behaviour may imply large inefficiencies.
Topic:
Development, Economics, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
West Africa

10. What Friends Are Made Of: Bilateral Linkages and Domestic Drivers of Foreign Policy Alignment with China

Author:
Georg Strüver
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
With China's emergence as a global economic and political power, it is commonly assumed that its leadership's influence in international politics has increased considerably. However, systematic studies of China's impact on the foreign policy behavior of other states are rare and generally limited to questions regarding economic capabilities and the use of coercive power. This paper seeks to contribute to the literature on China's global political rise by taking a broader perspective. Drawing on voting data from the UN General Assembly for the last two decades, it explores the plausibility of different explanations for foreign policy similarity: economic, diplomatic and military linkages; domestic institutional similarities; and parallel problem‐solving processes. The logistic regression analyses find that high similarity levels correlate with shared regime characteristics and comparable patterns of sociopolitical globalization. The results further indicate that foreign aid and arms trading seem to help buy support in global politics.
Topic:
Foreign Policy, Arms Control and Proliferation, Development, Emerging Markets, Bilateral Relations, and Foreign Aid
Political Geography:
China and Israel