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81. The EU-CEAP Impacts on Developing Countries – Recommendations for Development Policy

Author:
Jenny To
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The European Union Circular Economy Action Plan (EU-CEAP) is key to transitioning to a circular economy and climate neutrality under the EU Green Deal, with developing and emerging countries (DECs) playing an important role. First, DECs are essential for the primary material chains, for example, supplying material for electric vehicle (EV) batteries to the European Union (EU). Second, DECs are involved in secondary material chains: To recycle its plastic packaging, Europe relies on DECs. But despite the essential role DECs play in Europe’s transition to a circular economy, the EU-CEAP’s impact on DECs has largely gone unexamined in literature and policy discourses – a shortcoming that could reinforce Eurocentrism and jeopardise the much-needed willingness to cooperate on multilateral solutions to global challenges (Messner, 2022). This policy brief and associated discussion paper (To, 2022) outline challenges and opportunities for DECs that are related to the EU-CEAP and present recommendations for German development cooperation. In the plastic packaging sector, DECs will likely be impacted by stricter waste shipment regulation (WSR), along with higher EU recycling targets, mandatory recycled content for plastics, and bans on certain single-use plastic items. Hence, the following recommended policy actions: • To lower the risks of illegal plastic waste trade and disposal, DECs must be helped to enforce the WSR and meet tightened import regulations. • The impact of plastic waste imports on DEC domestic markets in light of changing WSR must be monitored; discussion about stricter EU waste export regulations should be initiated accordingly. • In response to plastic waste imports, plastic recycling in DECs must be improved by raising standards and investments in advanced machinery as well as working conditions for informal labourers. • Changing EU plastic ban regulations must be monitored to anticipate increased demand for plastic alternatives. For EVs and batteries, EU-CEAP regulations that could impact DECs include stricter due diligence requirements for raw materials, higher targets for retrieving secondary battery materials, as well as reusing, repurposing and recycling EVs and their batteries. In response, the following policy actions are recommended: • Help DEC suppliers meet tighter supply-chain require-ments in light of the expected steady increase in demand for virgin raw materials from DECs. • Help expand road infrastructure to make it possible to reuse EVs, ensure EV batteries for repurposing, and provide recycling machinery and know-how.
Topic:
Climate Change, Development, European Union, Multilateralism, Supply Chains, Green Deal, and Circular Economy
Political Geography:
Europe

82. Firm Profits and Government Activity: An Empirical Investigation

Author:
Petar Jolakoski, Branimir Jovanovic, Joana Madjoska, Viktor Stojkoski, and Dragan Tevdovski
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
If firm profits rise to a level far above than what would have been earned in a competitive economy, this might give the firms market power, which might in turn influence the activity of the government. In this paper, we perform a detailed empirical study on the potential effects of firm profits and markups on government size and effectiveness. Using data on 30 European countries for a period of 17 years and an instrumental variables approach, we find that there exists a robust relationship between firm gains and the activity of the state, in the sense that higher firm profits reduce government size and effectiveness. Even in a group of developed countries, such as the European countries, firm power may affect state activity.
Topic:
Development, Economics, Government, International Political Economy, and Profit
Political Geography:
Europe and Global Focus

83. How difficult is China’s business environment for European and American companies?

Author:
Uri Dadush and Pauline Weil
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Despite tensions over China’s discriminatory business practices, China’s trade continues to thrive, and the country has taken over from the United States as the first destination for foreign investment. American and European businesses continue to be engaged in China’s large and growing market, even amid a trade war between China and the United States. Drawing on surveys of companies and international comparisons, we show that – contrary to the prevailing narrative – China’s business practices have improved significantly in recent years. China’s business environment is today generally more favourable than that in other large countries at similar levels of development and, in some though certainly not all aspects, is in line with the Organisation for Economic Co-operation and Development average. Differences over geopolitics and human rights must be addressed, but it is clear that trade and investment agreements conditioned on accelerated reforms in China would yield substantial dividends. The benefits of such deals would accrue not only to foreign investors in China and exporters to China, but also to consumers and importers in the European Union and, especially, in the US, where punitive tariffs on China remain in effect. Critical aspects in the negotiations would include better access for American and European investors to China’s market for services and improved enforcement of rules and regulations in China. As in many middle-income countries, uneven enforcement of the law (rather than the law itself) remains a critical problem in China.
Topic:
Development, Bilateral Relations, European Union, Business, and Investment
Political Geography:
China, Europe, Asia, North America, and United States of America

84. Preparatory Study for the Evaluation of Denmark's Development Cooperation on Climate Change Adaptation: Overviews and analysis of Danish support to adaptation from 2008-2018

Author:
Lily Salloum Lindegaard, Mikkel Funder, and Esbern Friis-Hanse
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The Evaluation of Danish Support to Climate Change Adaptation in Developing Countries has just come out. But what knowledge does it build on and what fundamental questions does it explore? This Preparatory Study, commissioned by the EVAL Department of Denmark’s Ministry of Foreign Affairs in 2019, lays the groundwork for the evaluation. It sought to help define the scope of the evaluation; identify potential country case studies, case projects and evaluation themes; and point out overarching issues and questions to be addressed in the evaluation. To do so, the study provides overviews of all Danish climate change adaptation-related Official Development Assistance (ODA) from 2008 to 2018 and of adaptation support through the Danish Climate Envelope, which provides Fast Start Finance for climate change mitigation and adaptation in developing countries. The study also includes an analysis of trends and gaps in the Climate Envelope. These, and other outputs from the study, are now available in this DIIS Working Paper. The paper’s analysis and findings continue to have relevance for discussions of how we approach climate change, particularly adaptation, in Danish development assistance.
Topic:
Climate Change, Development, Environment, Poverty, and Inequality
Political Geography:
Europe and Denmark

85. Opportunities for Danish stabilisation policy to engage with climate- and livelihood-related conflict: New approaches to fragility in the Horn of Africa and Sahel

Author:
Peer Schouten
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The Horn of Africa and the Sahel are among the most fragile regions in the world: poor, lacking basic infrastructure and state presence across much of their respective territories, and both form hotbeds of conflict and political instability compounded by climate change. This DIIS Working Paper focuses on identifying evolving notions of fragility that could strengthen Danish stabilisation efforts in the Horn and Sahel. It foregrounds notions of fragility that move away from a focus on strong state institutions towards the adaptive capacities of populations in the hinterlands of the Horn and the Sahel to deal with conflict and climate variability. The paper gives an overview of this rapidly evolving field and distils key insights, challenges and future options by exploring the question, how can we support people in the Sahel and Horn to re-establish their responsibility for their respective territories and the management of their natural resources? The paper addresses this question by exploring the implications of recent climate change and livelihoods research on how we approach fragility and, by extension, stabilisation. On the basis of such research, the Working Paper advocates a move away from a sector-based understanding of fragility towards a way of working that is more in line with contextual realities, alongside the ‘comprehensive approach’ to stabilisation that Denmark promotes. The key message is that, programmatically, Danish stabilisation efforts across both regions could benefit from a more explicit focus on supporting the variability that dominant livelihood strategies require and that need to be considered if sustainable security and development outcomes are to be achieved. Failing to do this will only serve to marginalise key communities and may drive them further into the arms of radical groups.
Topic:
Security, Foreign Policy, Defense Policy, Climate Change, Democratization, Development, Environment, Radicalization, Fragile States, Violence, Peace, and Justice
Political Geography:
Africa, Europe, Denmark, and Horn of Africa

86. Renewable energy in Africa is about more than climate change: Aid needed for both clean energy and local capacity

Author:
Rasmus Hundsbæk Pedersen and Ole Winckler Andersen
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Development assistance for new renewable energy in Sub-Saharan Africa is increasingly being used to mobilise additional private capital. Recipient countries do not always share the priorities of donors. Realism and long-term support are key. RECOMMENDATIONS: Continue funding, but also acknowledge different interests and objectives, in order to move new renewable energy to scale. Balance the support for market development with support to government entities. Support longer-term capacity-building to ensure energy sector sustainability in recipient countries. Adopt flexible approaches and ensure independent advice to governments and institutions.
Topic:
Climate Change, Development, Foreign Aid, and Renewable Energy
Political Geography:
Africa, Europe, Denmark, and Sub-Saharan Africa

87. A lack of evidence-based approaches will weaken the implementation of the EU Action Plan against migrant smuggling 2021-2025

Author:
Gabriella Sanchez
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The upcoming EU Action Plan against migrant smuggling 2021-2025, like its predecessor, suggests that the prevention of and the fight against migrant smuggling will continue to be at the centre of a strong and comprehensive European approach to migration management. However, to be effective, the Action Plan must rely on the growing evidence-base concerning the structure and organization of migrant smuggling, as well as rethink the way smuggling research and analysis is produced. Doing otherwise may seriously impact the Action Plan’s implementation and outcomes. Recommendations: Demand that gender, race and class perspectives are present in smuggling and counter-smuggling research and analyses in ways that identify the wider impact of EU actions on communities in countries of origin, transit and destination and within the EU. Include the perspectives of third-country, junior and female researchers, scholars and policy analysts, and involve stakeholders and informants beyond those typically reached out to during research, policy making or knowledge generating processes. Create an open access database that includes examples of smuggling caselaw and legislation that showcase the impact of EU law enforcement agencies’ counter-smuggling efforts in transit, destination and origin countries and within the EU to demonstrate clear efforts towards transparency and accountability.
Topic:
International Relations, Foreign Policy, Development, Migration, Borders, and Risk
Political Geography:
Europe

88. Governance, Social Policy, and Political Economy: Trends in Norway’s Partner Countries

Author:
Stein Sundstol Eriksen
Publication Date:
04-2021
Content Type:
Special Report
Institution:
Norwegian Institute of International Affairs
Abstract:
In 2017–2018, NUPI (the Norwegian Institute of International Affairs) headed a project where political economy analyses were undertaken in eleven of Norway’s partner countries. These analyses were published as eleven separate reports. The reports focused on power relations and political developments in the partner countries, but they also analyzed the nature of governance. After the publication of the World Bank’s Worldwide Governance Indicators for 2019, the MFA approached NUPI and requested that we summarize the findings of this report for Norway’s eleven partner countries and assess these findings in light of the political economy analyses. We were also asked to investigate whether there were any connections between the nature and quality of governance on the one hand, and the nature of social policies and the human rights situation on the other. This report presents the findings of this assessment of the governance scores in the light of the above-mentioned political economy analyses. The report is structured as follows: Firstly, after briefly describing the governance indictors used by the World Bank, we summarize the eleven countries’ scores on the various governance indicators. Secondly, we assess the evolution of governance in the eleven countries, by comparing the scores in the 2019 report with those from 2011. Thirdly, we summarize the findings of the political economy analyses of the eleven countries and discuss how they fit with the governance scores. Finally, we present the eleven countries’ expenditure on social policies, as reported in the ILOs World Social Protection Report, and the human rights situation for the partner countries, and then describe how these findings relate to the governance scores.
Topic:
Development, Economics, Political Economy, Governance, and Social Policy
Political Geography:
Africa, Europe, and Norway

89. Public development aid should refocus on agriculture and education in Africa

Author:
Louis Caudron
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 18 December 2020, the European Commission welcomed the political agreement reached between the European Parliament and the Member States allocating €79.5 billion to a new Neighbourhood, Development Cooperation and International Cooperation Instrument (NDCI) for the period 2021- 2027. Since its creation, the European Union has been a major player in public aid granted by rich countries to developing countries. The European Development Fund (EDF) was launched by the Treaty of Rome in 1957 and for decades provided aid to the former colonies in Africa, the Caribbean and the Pacific (ACP). The eleventh EDF, covering the period 2014- 2020 with a budget of €30.5 billion, will be replaced by the NDICI (Neighbourhood, Development and International Cooperation Instrument). The Union and its Member States are the world's largest donor of official development assistance. Their contribution of €74.4 billion in 2018 represents more than half of the OECD countries’ Official Development Assistance ($150 billion in 2018).
Topic:
Agriculture, Development, Education, and Foreign Aid
Political Geography:
Africa and Europe

90. Technological Competition: Can the EU Compete with China?

Author:
Francesca Ghiretti
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The debate on technological development and the unfolding fourth technological revolution tends to neglect the role of the EU, relegating it to follower status. The leadership positions are occupied by the US and China, who compete with one another for technological supremacy. Yet, despite lagging behind in some areas, the EU is better placed than is often assumed and still stands a chance of guaranteeing the delivery of a technological revolution that is not only environmentally but also socially sustainable. This is critical in proposing a model of technological development alternative to that of China, in particular, and especially in such sectors as artificial intelligence, supercomputing and digital skills.
Topic:
Development, Science and Technology, and European Union
Political Geography:
United States, China, and Europe