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1. The state of economic convergence in the Eurozone: Two decades of monetary union and economic governance

Author:
Adriaan Schout
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
What is the state of economic convergence in the euro area? And will the redefinition of the Stability and Growth Pact result in a more effective policy for achieving convergence? A common currency, together with the four freedoms, was assumed to lead to economic convergence. This Clingendael Report reviews the state of convergence in the euro area by focusing on nominal, real and institutional convergence. Despite a range of policy initiatives and monitoring systems, convergence has not been achieved neither in terms of monetary and economic performance nor of the quality of governance at the national level. Despite some major successes in convergence, welfare has continued to diverge in some countries and differences in debt levels have increased up to the point of threatening the - economic and political - coherence of the euro area. Public spending also varies considerably while higher public spending does not ensure higher growth levels. The paradoxical situation has arisen in which countries that (drastically) reduced debt levels performed better in terms of growth and reduction in unemployment.
Topic:
Economics, Governance, European Union, Economic Growth, and Economic Stability
Political Geography:
Europe

2. Making Sense of Pakistani Youth How Youth in Pakistan View State, Society, Religion, and Politics

Author:
Ahmed Alili and Fizza Batool
Publication Date:
04-2022
Content Type:
Special Report
Institution:
Pak Institute for Peace Studies (PIPS)
Abstract:
In view of the growing radicalization among educated youth and its adverse effects on Pakistan’s social, political, and economic stability, the study was conducted by Pak Institute for Peace Studies. The research was driven by the necessity and urge to understand youths’ internal thinking processes that shape their behaviours and actions. It is an attempt to make sense of how educated young men and women make sense of themselves and the world around them. To answer this question, the study sought to gain insights into various dimensions of youths’ thinking through a mixed-method approach to data collection, using survey questionnaires, interviews, observations as well as literature review. The findings present an interesting overall picture of an ordinary youths’ thinking and shed light on how youths situate themselves within their in-groups and the larger society. The study also aimed at appraising the overall quality of thoughts among youth and their tolerance/acceptance level for diversity and inclusion. Questions were designed to gauge youths’ cognitive skills, and their ability to think clearly and argue rationally etc. Likewise, another objective was to observe the impact of education on their outlook and general behaviour. The findings also provide a peek into worldviews commonly held by the youth, and whether they identify themselves as members of the larger human fraternity.
Topic:
Radicalization, Political stability, Youth, and Economic Stability
Political Geography:
Pakistan and Middle East

3. Egypt Faces Severe Economic Problems

Author:
Sara Nowacka
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
In August, a year before the end of his term of office, Tarek Amer, head of the Egyptian Central Bank, resigned. This was a consequence of the deepening economic crisis caused by a decline in the country’s currency reserves and the impact of global problems on Egypt, which is dependent on food imports. Capital-intensive investments, mainly in the energy and real estate sectors, will exacerbate Egypt’s situation. Given the size of its population, economic collapse would have a significant destabilising impact on the EU’s southern neighbourhood.
Topic:
Economics, Currency, Economic Stability, and Economic Crisis
Political Geography:
Middle East and Egypt

4. Istanbul Journal of Economics: Volume 72 Issue 2

Author:
Gökhan Karabulut
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Economics, Islam, Religion, Communications, Natural Resources, Finance, Internet, Economic Growth, Macroeconomics, Currency, Unemployment, Sustainability, COVID-19, BRICS, Labor Market, Economic Stability, Consumer Behavior, Rent-seeking, Energy, and Wages
Political Geography:
Europe, Turkey, and Asia

5. Inflation Targeting in Open Economies: The Contradictions of Determinacy and Stability

Author:
Esteban Perez-Caldentey and Matias Vernengo
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Since 1999, more than half of Latin American countries have put in practice inflation targeting regimes with the objective of maintaining price stability within a low inflation environment. Building on previous work, we argue that the adoption of this monetary regime was the result of a policy shift that began with the Washington Consensus, and which materialized sequentially in increased financial openness, greater exchange rate flexibility, leading eventually to the implementation of inflation targeting. We further sustain that in the case of an open economy, the use of inflation targeting leads to incoherent and contradictory results that severely question its alleged superiority over other monetary frameworks. Finally, we posit the need for comprehensive regulatory frameworks to deal with the complex dynamics and transmission mechanisms that characterize economies that have a high degree of financial openness, such as those of Latin America.
Topic:
Regulation, Economy, Inflation, and Economic Stability
Political Geography:
Latin America

6. 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

7. Rethinking EU economic governance: The Stability and Growth Pact

Author:
Francesco De Angelis and Frederico Mollet
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
It is time to reimagine the EU’s economic governance. In early 2021, the EPC set out to do just that in its Rethinking EU Economic Governance Task Force. Drawing on insights from participating experts, academics and policymakers, this first Policy Brief in a series of EPC publications outlines how the debate on the Stability and Growth Pact (SGP), the EU’s framework for fiscal and macroeconomic surveillance, has evolved and the reform options that have surfaced. There is broad dissatisfaction with the SGP and how it has fared in an environment of prolonged low-interest rates, missed inflation targets and low growth. In February 2020, the European Commission launched a review of the SGP in an attempt to address its shortcomings, but it was quickly put on hold by COVID-19, when the fiscal rules were suspended. Half a year later, the Commission is finishing what it started. We are in a drastically different world since the European Commission launched the review. Not only has government debt increased significantly, but regional, economic and social divides have worsened, policymakers face inflationary pressures for the first time in decades, and the Recovery and Resilience Facility and accompanying EU-level bond issuance fundamentally changed the EU’s economic architecture. In parallel, there is a widespread acknowledgement that averting, as well as adapting to, the climate crisis requires a steep increase in public investment. Thanks to the EPC Task Force’s ongoing work, Francesco De Angelis and Frederico Mollet can pinpoint the SGP’s major flaws, post-COVID-19 challenges, and five broad categories of reform options: Interpretative flexibility to smooth fiscal adjustment paths and potentially place less emphasis on problematic indicators. Moderate non-treaty reforms to reduce complexity and procyclicality and increase enforceability. The ‘golden rule’ to exempt some public investments from the fiscal rules. Central fiscal capacity for macroeconomic stabilisation. Off-balance-sheet investments to increase public investment.
Topic:
Political Economy, Governance, European Union, Economic Growth, COVID-19, Economic Stability, and European Commission
Political Geography:
Europe

8. The Biggest Problem in Post-Communist Transition: The Privatization of Large Enterprises

Author:
Anders Åslund
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
Thirty years after the collapse of the Soviet Union, it is rather clear what transition policies have worked. Almost all the post-communist countries have become market economies and have achieved macroeconomic stability. Privatization was economically necessary, and its economic outcomes have been very positive. Alas, politically, these successes have often been unsustainable because of strong popular sentiments against the private ownership of big enterprises. Substantial renationalization has occurred. What went wrong? How could privatization be done better, or be defended? What should be done to defend private enterprise in the future? This paper argues that the nature of privatization is far less important than the establishment of good rule of law so that private property rights can be defended.
Topic:
Privatization, Economic Growth, Macroeconomics, Trade, Transition, Soviet Union, and Economic Stability
Political Geography:
Post-Soviet Europe

9. After the Fall: Lebanon’s Path towards Monetary Stabilization

Author:
Jean Tawile
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
Lebanon is suffering the worst economic crisis in its history, caused by an economic model that produced a rentier economy feeding off a corruption-ridden state and preventing any economic growth and social justice. This model is not redeemable. This paper argues that stabilizing the currency is a first step to getting Lebanon’s economy back on the right track and explores possible pathways for doing so.
Topic:
Economics, Monetary Policy, Fiscal Policy, Strategic Stability, and Economic Stability
Political Geography:
Middle East and Lebanon

10. ‘A careful foot can step anywhere’: The UAE and China in the Horn of Africa: Implications for EU engagement

Author:
Jos Meester and Guido Lanfranchi
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Over the last decade, the UAE and China have vastly expanded their economic, political and military footprint in the Horn of Africa, and their actions now have the potential to shape developments in the region. Room for cooperation between Abu Dhabi and Beijing exists on issues such as maritime security, regional stability, and economic development. Moreover, the two countries’ interaction could lead to improvements in the Horn’s underdeveloped infrastructure by triggering a race to investment. Yet, development and stability in the region might suffer if the strategic interests of external players take precedence over local ones, or if local elites (mis)use external support for narrow domestic political calculations. The EU and its member states have high stakes in the Horn’s stability. To optimise their engagement, European policymakers should be aware of the implications of the Emirati and Chinese presence, and they should strive to improve cooperation among the wide range of external players active in the Horn.
Topic:
Economics, International Cooperation, Politics, Military Affairs, Economic Development, and Economic Stability
Political Geography:
Africa, China, Asia, and Horn of Africa