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1. Making Sure the Lebanese Revolution Does Not Devour Its Own Children

Author:
Christophe Abi Nassif
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
When protests broke out across Lebanon on 17 October 2019, very few people anticipated the political, economic, and financial consequences that the country finds itself facing today. In an unprecedented buildup of events, a government resigned, a monetary crisis sharply accelerated, and uncertainty about the future of a nation spiked. And while the first few weeks have been particularly raging, a relative status quo between protesters and the government seems to have prevailed. This article makes the case for four essential changes that the Lebanese revolution may want to consider to avoid stagnation and potential decay and ultimately achieve results and a significant breakthrough in political representation.
Topic:
Government, Social Movement, Crisis Management, and Revolution
Political Geography:
Middle East and Lebanon

2. Horrible Trade-offs in a Pandemic: Lockdowns, Transfers, Fiscal Space, and Compliance

Author:
Ricardo Hausmann and Ulrich Schetter
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
In this paper, we develop a heterogeneous agent general equilibrium framework to analyze optimal joint policies of a lockdown and transfer payments in times of a pandemic. In our model, the effectiveness of a lockdown in mitigating the pandemic depends on endogenous compliance. A more stringent lockdown deepens the recession which implies that poorer parts of society find it harder to subsist. This reduces their compliance with the lockdown, and may cause deprivation of the very poor, giving rise to an excruciating trade-off between saving lives from the pandemic and from deprivation. Lump-sum transfers help mitigate this trade-off. We identify and discuss key trade-offs involved and provide comparative statics for optimal policy. We show that, ceteris paribus, the optimal lockdown is stricter for more severe pandemics and in richer countries. We then consider a government borrowing constraint and show that limited fiscal space lowers the optimal lockdown and welfare, and increases the aggregate death burden during the pandemic. We finally discuss distributional consequences and the political economy of fighting a pandemic.
Topic:
Development, Government, Political Economy, Inequality, Economic growth, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
Global Focus

3. A Roadmap for Investment Promotion and Export Diversification: The Case for Jordan

Author:
Ricardo Hausmann, Patricio Goldstein, Ana Grisanti, Tim O'Brien, Jorge Tapia, and Miguel Ajgel Santos
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Jordan faces a number of pressing economic challenges: low growth, high unemployment, rising debt levels, and continued vulnerability to regional shocks. After a decade of fast economic growth, the economy decelerated with the Global Financial Crisis of 2008-09. From then onwards, various external shocks have thrown its economy out of balance and prolonged the slowdown for over a decade now. Conflicts in neighboring countries have led to reduced demand from key export markets and cut off important trade routes. Foreign direct investment, which averaged 12.7% of gross domestic product (GDP) between 2003-2009, fell to 5.1% of GDP over the 2010-2017. Regional conflicts have interrupted the supply of gas from Egypt – forcing Jordan to import oil at a time of record prices, had a negative impact on tourism, and also provoked a massive influx of migrants and refugees. Failure to cope with 50.4% population growth between led to nine consecutive years (2008-2017) of negative growth rates in GDP per capita, resulting in a cumulative loss of 14.0% over the past decade (2009-2018). Debt to GDP ratios, which were at 55% by the end of 2009, have skyrocketed to 94%. Over the previous five years Jordan has undertaken a significant process of fiscal consolidation. The resulting reduction in fiscal impulse is among the largest registered in the aftermath of the Financial Crises, third only to Greece and Jamaica, and above Portugal and Spain. Higher taxes, lower subsidies, and sharp reductions in public investment have in turn furthered the recession. Within a context of lower aggregate demand, more consolidation is needed to bring debt-to-GDP ratios back to normal. The only way to break that vicious cycle and restart inclusive growth is by leveraging on foreign markets, developing new exports and attracting investments aimed at increasing competitiveness and strengthening the external sector. The theory of economic complexity provides a solid base to identify opportunities with high potential for export diversification. It allows to identify the existing set of knowhow, skills and capacities as signaled by the products and services that Jordan is able to make, and to define existing and latent areas of comparative advantage that can be developed by redeploying them. Service sectors have been growing in importance within the Jordanian economy and will surely play an important role in export diversification. In order to account for that, we have developed an adjusted framework that allows to identify the most attractive export sectors including services. Based on that adjusted framework, this report identifies export themes with a high potential to drive growth in Jordan while supporting increasing wage levels and delivering positive spillovers to the non-tradable economy. The general goal is to provide a roadmap with key elements of a strategy for Jordan to return to a high economic growth path that is consistent with its emerging comparative advantages.
Topic:
Government, International Trade and Finance, Finance, and Economy
Political Geography:
Middle East and Jordan

4. The Challenges of Universal Health Insurance in Developing Countries: Evidence from a Large-scale Randomized Experiment in Indonesia

Author:
Abhijit Banerjee, Amy Finkelstein, Rema Hanna, Benjamin A. Olken, Arianna Ornaghi, and Sudarno Sumarto
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
To assess ways to achieve widespread health insurance coverage with financial solvency in developing countries, we designed a randomized experiment involving almost 6,000 households in Indonesia who are subject to a nationally mandated government health insurance program. We assessed several interventions that simple theory and prior evidence suggest could increase coverage and reduce adverse selection: substantial temporary price subsidies (which had to be activated within a limited time window and lasted for only a year), assisted registration, and information. Both temporary subsidies and assisted registration increased initial enrollment. Temporary subsidies attracted lower-cost enrollees, in part by eliminating the practice observed in the no subsidy group of strategically timing coverage for a few months during health emergencies. As a result, while subsidies were in effect, they increased coverage more than eightfold, at no higher unit cost; even after the subsidies ended, coverage remained twice as high, again at no higher unit cost. However, the most intensive (and effective) intervention – assisted registration and a full one-year subsidy – resulted in only a 30 percent initial enrollment rate, underscoring the challenges to achieving widespread coverage.
Topic:
Government, Health, Health Care Policy, and Economy
Political Geography:
Indonesia and Southeast Asia

5. When Do Development Projects Enhance Community Well-Being?

Author:
Michael Woolcock
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Many development agencies and governments now seek to engage directly with local communities, whether as a means to the realization of more familiar goals (infrastructure, healthcare, education) or as an end in itself (promoting greater inclusion, participation, well-being). These same agencies and governments, however, are also under increasing pressure to formally demonstrate that their actions ‘work’ and achieve their goals within relatively short timeframes – expectations which are, for the most part, necessary and desirable. But adequately assessing ‘community-driven’ approaches to development requires the deployment of theory and methods that accommodate their distinctive characteristics: building bridges is a qualitatively different task to building the rule of law and empowering minorities. Moreover, the ‘lessons’ inferred from average treatment effects derived from even the most rigorous assessments of community-driven interventions are likely to translate poorly to different contexts and scales of operation. Some guidance for anticipating and managing these conundrums are provided.
Topic:
Development, Government, Infrastructure, and International Development
Political Geography:
Global Focus and United States of America

6. The politics of hope: a nation’s patience tested

Author:
Ali Tehrani and Azadeh Pourzand
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Winter 2019 marked the 40th anniversary of the 1979 Islamic Revolution in Iran. The anniversary celebrations occurred in the midst of a difficult era of socio-economic turmoil, the return ofَ U.S. sanctions, and deepening political infighting in the Islamic Republic. Tensions between the government and the people are especially high. The tectonic plates of social change have been shifting below the surface in Iran over the past two decades, with major discontent erupting in the past year. While the country’s political facade appears largely unchanged, tensions and fragmentations among the ruling elite have deepened. Economic conditions are fast deteriorating for the average citizen, while political repression remains a harsh reality. Iran’s citizens, who have clung to hope and the possibility for change through decades of domestic repression and isolation from the global economy, struggle to remain hopeful. Collective fatigue stemming from years of isolation from the global economy, as well as domestic economic hardship, compounds the disappointment Iranians feel from unfulfilled political promises. The Iranian government has repeatedly failed to carry out promised reforms; in recent years alone, President Hassan Rouhani has proven unable to carry out his promises to “open up Iran politically, ease rigid social restrictions and address human rights abuses.” As this situation continues, Iran risks despair and chaos.
Topic:
Government, Politics, Social Movement, Sanctions, Nuclear Power, Reform, Economy, and Memory
Political Geography:
Iran and Middle East

7. Current law constraining the President: a series on Congress’s options to limit arms sales and aid to Saudi Arabia, part 2

Author:
Jacques Singer-Emery
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This is the second of a three-part essay series on the different paths the U.S. Congress might take to limit Washington’s support for the Saudi-led coalition in Yemen. As explained in Part 1 of this series, the Trump administration’s continued support for the Saudi coalition’s war in Yemen has triggered a range of Congressional responses. Although Congress faces challenges in passing new legislation to denounce Saudi Arabia’s actions in Yemen and its killing of Jamal Khashoggi, the White House’s Saudi policy implicates at least four pieces of existing legislation: the Arms Export Control Act (AECA), the War Powers Resolution, the Foreign Assistance Control Act (FAA), and the Leahy Laws. These laws were all passed during the Cold War to curtail the executive’s increasing ability to unilaterally sell arms, supply military aid, and order U.S. troops to assist allies in a theater of war. The executive must abide by these laws. If the President refuses or cuts corners, Congress can bring him to heel directly via impeachment, or indirectly through court orders that force executive branch agencies to halt the restricted activity.
Topic:
Government, War, Law, Courts, and Legislation
Political Geography:
Yemen, Saudi Arabia, North America, United States of America, and Gulf Nations

8. Constraining U.S. foreign policy by enforcing current law: a series on Congress’s options to limit arms sales and aid to Saudi Arabia, part 3

Author:
Jacques Singer-Emery
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This is the third of a three-part essay series on the different paths the U.S. Congress might take to limit Washington’s support for the Saudi-led coalition in Yemen. Credible allegations of Saudi war crimes and human rights abuses in Yemen should trigger the FAA and Leahy Laws to prevent U.S. aid from reaching the Saudi-led coalition, as discussed in part 2 of this series. However, the U.S. Constitution forbids Congress from unilaterally issuing orders to any executive agency, including the Defense and State Departments. Accordingly, both the Foreign Assistance Control Act (FAA) and the Leahy laws place the onus on the executive to identify and respond to gross violations of human rights. Thus far, the executive has turned a blind eye to the Saudi coalition’s actions. Congress could independently find that Saudi Arabia has engaged in a “consistent pattern of gross violations of internationally recognized human rights” by commissioning its own investigations. But if the executive remains unconvinced, Congress only has two options to enforce the FAA and the Leahy laws: impeach the President, or obtain a court order requiring the executive withhold aid and arms pursuant to these laws. The first action is unlikely to occur here, but the second is a viable option. To secure a court order, Congress must show that the executive’s refusal to follow the FAA and the Leahy laws uniquely injures the legislative branch in a way that only the courts can remedy.
Topic:
Government, International Law, Law, War Crimes, Weapons, Courts, and Legislation
Political Geography:
Yemen, Saudi Arabia, North America, United States of America, and Gulf Nations

9. Facing a President’s veto: a series on Congress’s options to limit arms sales and aid to Saudi Arabia, part 1

Author:
Jacques Singer-Emery
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This is the first of a three-part essay series on the different paths the U.S. Congress might take to limit Washington’s support for the Saudi-led coalition in Yemen. Congress is considering a range of options to express its displeasure with Riyadh after Saudi agents murdered prominent Saudi journalist and critic Jamal Khashoggi at the Saudi consulate in Istanbul in September 2018, and journalists and NGOs around the world continue to highlight human rights abuses perpetrated by Saudi-led coalition forces in Yemen. Of these options, the most notable is the Saudi Arabia Accountability and Yemen Act of 2019. Congress has already voted to condemn President Donald Trump’s unequivocal support for the Kingdom of Saudi Arabia: the Senate voted March 13th to end US support for the war in Yemen, echoing a measure that passed the House in mid-February. But, the Saudi Arabia Accountability and Yemen Act would go further still, sanctioning those in the Saudi government responsible for Khashoggi’s death and curtailing U.S. arms sales and military aid critical to the Saudi-led coalition’s war in Yemen. The White House vehemently opposes the bill. If it passes, President Trump is expected to veto it, just as he is expected to veto the Senate’s March and House’s February resolutions.
Topic:
Government, Law, Military Affairs, and Legislation
Political Geography:
Middle East, Yemen, North America, United States of America, and Gulf Nations

10. Public Policy Failure: ‘How Often?’ and ‘What is Failure, Anyway’?

Author:
Matt Andrews
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Observers claim that public policies fail ‘often’. This paper asks, ‘how often’? It is an important question, because public policies absorb resources to address major social issues. We should know if policies are proving bad social investments; routinely failing to solve focal problems at high costs. Unfortunately, it is not easy to assess this. Many public policy organizations—governments in particular—do not provide accessible views onto overall success or failure. The World Bank does, however, provide such view—and it supports policy interventions one finds in governments across the world. The paper thus examines World Bank failure rates. It finds that there are different answers to the ‘how often’ question, depending on responses to a second question, ‘what is failure anyway?’ In studying both questions, the paper identifies a bias in the World Bank—and probably all organizations adopting rational ‘plan and control’ policy processes—to measuring ‘project and product success’ rather than a broader view of success as ‘problems are solved with development impact’. This means that policy organizations like the Bank judge success based on whether planned products are delivered through an efficient process; not whether policies solve the problems that warranted intervention in the first place, or whether the policies promoted development outcomes. Is this how citizens would want their public policy organizations to conceptualize success?
Topic:
Foreign Policy, Government, World Bank, and International Development
Political Geography:
Global Focus and United States of America