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1. Socially Responsible Public Procurement (SRPP) in Multi-Level Regulatory Frameworks: Assessment Report on Policy Space for SRPP Regulation and Implementation in Germany and Kenya

Author:
Tim Stoffel
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
Public Procurement is a highly regulated process ruled by a complex legal framework. It comprises not only national but also, increasingly, sub- and supranational regulations, giving rise to a multi-level regulatory governance of public procurement. The integration of sustainability aspects into public procurement, as called for in goal 12.7 of the Sustainable Development Goals (SDGs) of the Agenda 2030, needs to take this multi-level character into account. This reports focuses on social considerations, which are a central part of sustainable procurement – whether with a domestic focus or along international value chains. Social considerations have been somewhat neglected in Europe, whereas they feature prominently in procurement regulations in many countries of the Global South, especially in Sub-Saharan Africa (SSA). The advanced process of regional integration in the European Union (EU) and the progress made towards integration in some regional economic communities in Sub-Saharan Africa call for deeper analyses of the influence of the higher levels of the regulatory framework on the lower levels. The question is whether public entities, from the national down to the local level, are required or at least have the option to integrate socially responsible public procurement (SRPP) into their procurement processes and tenders, or at least have the option to do so. This report is conducted as part of the project “Municipalities Promoting and Shaping Sustainable Value Creation (MUPASS) - Public Procurement for Fair and Sustainable Production”, implemented by DIE in cooperation with Service Agency Municipalities in One World (SKEW) with funds from the Federal Ministry of Economic Cooperation and Development (BMZ) and compares public procurement in Germany and Kenya. In both countries, the multi-level regulatory frameworks allow for SRPP regulations and practices ar the national and sub-national levels of government. There is, however, an implementation gap for SRPP in Germany and Kenya that appears to be independent from the specifics of the respective regulatory framework. To tackle this, supportive measures, such as capacity building, are key. Furthermore, Regional economic communities, such as the EU and the Common Market for Eastern and Southern Africa (COMESA), can play a role in promoting SRPP, even without introducing mandatory provisions. At the other end of the multi-level regulatory spectrum, municipalities in the EU had and have an important role in SRPP implementation, that might be replicable by sub-national public entities in Kenya and other contexts.
Topic:
Development, Governance, Regulation, and Sustainable Development Goals
Political Geography:
Kenya, Africa, Europe, and Germany

2. The Impact of Regulations on Investment in Mobile Telephone Infrastructure in Southern African Development Community Countries

Author:
Albert Makochekanwa
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
The main objective of the study was to investigate the impact of policy regulations on investments in mobile telecommunications network infrastructure in all the 15 member countries of the Southern African Development Community (SADC) region. The research employed panel data econometrics to achieve its stated objective. Estimated results shows that the coefficient of gross domestic product (GDP) per capita is positive and statistically significant, implying that an increase in this variable results in increase in demand and this in turn motivates infrastructure investment in mobile telephone. The coefficient on the previous level of mobile telephone infrastructure investment variable (Invkt-1) was found to be positive and statistically significant. This means that there is a systematic positive association between the previous level of mobile telephone infrastructure investment and the current. The coefficient of the main variable of interest representing mandatory unbundling (Regkt) was found to be positive and statistically significant. This implies that, overall, mandatory unbundling access regulation boost infrastructure investment in mobile telecommunication. Regression estimates shows that the coefficient on one of the variable of interest, political constraint (POLCON) has a negative and statistically significant impact on determining the level of mobile telephone infrastructure investment in SADC countries. Whilst this result is against expectations, one possible explanation may be presence of high level of rent seeking behaviour.
Topic:
Development, Economics, Regulation, Economic growth, and Economic Policy
Political Geography:
Africa and South Africa

3. EUROPEAN INTERESTS AND EXTERNAL CLIMATE CHANGE POLICY OF THE EU TOWARD EGYPT

Author:
Defne Günay
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Department of International Relations, Abant Izzet Baysal University, Turkey
Abstract:
According to the International Panel on Climate Change, climate change will affect the rivers leading to the Mediterranean, desertification will increase, rise in sea level will affect coastal settlements, and crop productivity will decrease in the region. Therefore, climate change is an important issue for the Mediterranean region. The European Union (EU) is a frontrunner in climate change policy, committing itself to a decarbonized economy by 2050. The EU also promotes climate action in the world through its climate diplomacy. Such EU action in promoting the norm of climate action can be explained with reference to EU’s economic interests. In this paper, I analyse whether the EU serves its economic interests by promoting climate action in its neighbourhood policy towards Egypt. Based on documentary analysis, this paper argues that European companies benefitted from the market-based solutions adopted by the Kyoto Protocol in Egypt, exported renewable energy technologies to Egypt and face a level-playing field in terms of regulations promoted for them by the EU in Egypt.
Topic:
Climate Change, Environment, European Union, Regulation, Economy, and Renewable Energy
Political Geography:
Africa, Europe, Egypt, and Mediterranean

4. State of Financial Cooperatives in Zambia: A viable option for increasing fi nancial inclusion?

Author:
ZIPAR
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
This policy brief presents the summary fi ndings of a study on Promoting Financial Cooperatives (FCs) in Zambia that was conducted between 2017 and 2018 with fi nancial support from the Rural Finance Expansion Program (RUFEP), Ministry of Commerce Trade and Industry (MCTI) and the Zambia Center for Accountancy Studies (ZCAS). The study used both qualitative and quantitative approaches which included a situational analysis of FCs in Zambia, a study tour to Kenya and a census of Financial Cooperatives (FCs) eight provinces. The main objective of the study was to contribute to the development of FCs in Zambia by generating information on their performance. The secondary objectives of the study were to: 1. Undertake a situational analysis to develop a clear understanding of the landscape for the FCs in Zambia in terms of the regulatory framework, support institutions and the nature and level at which the FCs operate. 2. Undertake a Census of cooperatives to understand the opportunities and constraining factors for the growth of the Cooperatives movement in Zambia. It was envisaged that the study would provide evidence about FCs that could be used in the revision of the Cooperatives Act currently underway, aid MCTI understand the nature of Cooperatives and devise strategies for monitoring FCs. The study also aimed at providing information about the state of FCs that can used by the apex body of FCs and stakeholders such as Bank of Zambia.
Topic:
Regulation, Banks, Economic Development, and Financial Cooperatives
Political Geography:
Africa and Zambia

5. The Impact of Business Regulatory Quality on Private Sector Investment in Botswana

Author:
Kedibonye Sekakela
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
A market-friendly regulatory environment is key for private sector investment. In this paper, we examine the impact of business regulatory quality on private sector investment in Botswana. The paper finds that the business regulatory environment stimulates private sector investment in the long term and this phenomenon occurs when the quality of bureaucracy improves, among other factors. Other critical factors affecting private sector investment examined in this paper include; corporate credit, output and public infrastructure investment. Private sector investment responds positively to increases in corporate credit in the short term but not responsive in the long term. Economic activities support private sector investment positively but weak. On the other hand, public infrastructure investment crowds in(out) investment in the short and long term respectively. Policy wise, Botswana should further deepen its efforts towards creating a market-friendly regulatory environment and also consider how business regulatory quality interact with other policy variables for better investment and growth outcomes.
Topic:
Economics, Developing World, Regulation, Business, Investment, and Economic Development
Political Geography:
Africa and Botswana

6. Environmental regulation in a transitional political system: delegation of regulation and perceived corruption in South Africa

Author:
Pedro Naso
Publication Date:
09-2019
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
I study the economic motivations behind a reduction in the discretionary power of environmental regulators, and the impact that such reduction has on perceived corruption in South Africa. I examine the transition from the Air Pollution Protection Act of 1965 to the Air Quality Act of 2005, a change from full to partial delegation of regulation. By constructing a principal-agent model, I argue that this transition might have occurred because of an increase in the dispersion of rent-seeking motivations of public agents. This happens because, from the principal’s perspective, the possible harm— loose pollution control and misappropriation of environmental fines— generated by corrupt agents is greater than the potential benefits brought by diligent agents. In my empirical analysis, I use diff-indiffs models for a two-period panel with 191 South African firms to show that the regulatory change decreased treated firms’ perceived corruption, but did not improve other institutional quality measures.
Topic:
Climate Change, Economics, Environment, Regulation, and Pollution
Political Geography:
Africa and South Africa

7. Impacts of legal and regulatory institutions on economic development

Author:
Pedro Naso
Publication Date:
12-2019
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Since the second half of the 20th century, with the contributions of Coase, Williamson and North, the economic literature has emphasised the role of institutions in explaining differences in economic performance. According to the most diffused view, countries with good institutions will invest more in physical and human capital, will use productive factors in a more efficient way, and will achieve greater income level. But what are good institutions? And how should governments implement them? Answers to these questions have proven to be difficult mainly because of two characteristics of institutions: (i) institutional functioning is complex: the way institutions affect economic agents’ incentives is dependent on these agents’ individual preferences and the way they interact, which are difficult to predict; and (ii) they are context specific – the same institution in different contexts might result in a different economic outcome.
Topic:
Climate Change, Economics, Environment, Regulation, and Economic Policy
Political Geography:
Africa, South Africa, and Sierra Leone

8. How Tanzania Can Secure a Good Deal for its Offshore Gas

Author:
Thomas Scurfield and David Manley
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
The Tanzanian government and a consortium of companies are negotiating the regulatory terms for a game-changing liquefied natural gas (LNG) project. In this brief, the authors update a previous analysis of some of the key decisions that will be made in the negotiation and their potential impact on whether the LNG project proceeds and the levels of revenues that the project could generate for the government. This update accounts for new information and changes in company planning. There is a reasonable chance that foreign investment in the LNG project will not happen under current conditions. NRGI’s economic model and specific assumptions of the project suggest that a long-term LNG price of USD 11 per mmBtu is needed for investors to earn the return they usually require from LNG projects. Current forecasts by the IMF and World Bank are $7-8 per mmBtu. As the authors discuss in the brief, the chances of investment will shrink further if, during the negotiations, the government increases taxes and requires companies to share a greater portion of the gas with Tanzania’s home market. Government officials could wait and hope that conditions improve, and perhaps then impose stricter terms. However, this would delay the point at which the country would start generating benefits from the project. If officials want to accelerate development, without harming long-term gains for the country, they could: adopt a more progressive tax regime, avoid raising the share of gas to be sold to the home market, and establish a legal framework that both company managers and future generations of Tanzanians will trust.
Topic:
Gas, Regulation, Legislation, Tax Systems, Commodities, and State-Owned Enterprises
Political Geography:
Africa and Tanzania

9. Investment Challenges in Zambia’s Electricity Supply Industry: A Cursory Assessment

Author:
Mwanda Phiri and Francis Ziba
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Hudson Institute
Abstract:
During the tide of economic liberalisation in the 1990s, Zambia’s electricity market was liberalised with the aim of stimulating private sector participation. More than 20 years after market liberalisation, the power crisis in 2015 revealed that the industry had failed to attract the envisaged private sector investment required to expand and diversify energy generation sources and meet the increasing demand for electricity over the years. It became apparent that the various reforms taken to liberalise the industry, increase private sector participation and promote competition had fallen short of meeting these objectives. Zambia’s electricity supply industry still remained a semblance of a monopoly dominated by one large vertically integrated state-owned corporation responsible for the generation, transmission, distribution and supply of electricity. Given the important role of electricity in driving economic growth, this paper illuminates the barriers to entry in the ESI and the factors limiting competition. Drawing mainly on secondary sources, the study finds that at the very start, limited access to finance for energy projects potentially prevents the commencement of energy projects. Exacerbating the entry barriers are the below-cost electricity tariffs, the monopoly power held by ZESCO and its vertical integration and an inadequate regulatory framework to promote competition and prevent undue political interference. These findings justify the partial unbundling of ZESCO and the provision of legal reforms that support policy consistency, multi-year tariff adjustments and open and nondiscriminatory access to the transmission and distribution grids.
Topic:
Energy Policy, Regulation, Neoliberalism, Tariffs, and Electricity
Political Geography:
Africa and Zambia

10. Second-Hand Motor Vehicle Imports in Zambia: Juicing from Lemons?

Author:
Thulani Banda and Zali Chikuba
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
The sustained positive growth of the Zambian economy has resulted in many shifts in consumption patterns of Zambian households. One notable change is the increased consumption of consumer durables, particularly motor vehicles. Motor vehicle ownership has increased substantially since 2004. The increase in motor vehicle ownership owes in part to the highly unbridled access to second hand motor vehicle imports. The downside of the relaxed motor vehicle import regulations as observed in Zambia is the ageing of the motor vehicle fleet and deterioration in fleet safety. Second hand motor vehicles imported in the country may be fine, but they may also be unreliable – commonly referred to as lemons in economic literature – and costly to maintain thereby generating serious financial, road safety and environmental concerns. Considering that Zambia is one of the highest road fatality risk countries in Africa with 23.7 road traffic deaths per 100,000 people, the ageing fleet of motor vehicles only compounds the risk. Thus, more deliberate measures to ensure lives are safeguarded and consumers get value-for-money on motor vehicle imports should be devised and implemented urgently.
Topic:
Regulation, Economy, Imports, and Motor Vehicles
Political Geography:
Africa and Zambia