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1. Enhancing Technology Diffusion in the EU amid Tough Structural Challenges

Author:
Matthias Bauer, Elena Sisto, and Oscar du Roy
Publication Date:
09-2024
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
To remain globally competitive, the EU must empower firms to adopt the best technology solutions available on global markets. Building on a strong tradition of innovation, the EU relies on corporations across industries to drive the diffusion of technology through the commercialisation of technological innovations. Technology diffusion is crucial for embedding new technologies into society and is essential for sustaining industrial competitiveness. EU and Member State governments must prioritise enhancing the EU’s “diffusion capacity” – the ability to effectively spread and adopt innovations across Member States.
Topic:
Science and Technology, European Union, Digital Economy, and Services
Political Geography:
Europe

2. Shared Liability: The European Parliament’s Misstep in Fighting Financial Fraud

Author:
Matthias Bauer, Andrea Dugo, and Dyuti Pandya
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The rise in financial fraud has prompted regulatory proposals under the Payment Services Regulation in the form of a shared liability model provisioned under Article 59. The potential proposal by the European Parliament could now extend liability beyond Payment Service Providers to Electronic Communications Service Providers and online platforms. While the intent to address fraud is commendable, this model misallocates responsibilities by requiring non-financial entities to oversee fraudulent activities, despite their lack of visibility and technical control over financial transactions. Extending liability to non-financial entities risks undermining consumer vigilance and diluting payment services providers’ efforts to maintain fraud awareness. A shared liability regime covering non-financial entities would also disproportionately burden smaller “digital” firms, leading to legal uncertainties, costly legal disputes, and market exits. This would not only drive market concentration and reduce competition in digital services but also undermine EU and Member State efforts to support Europe’s lagging digital start-ups and scale-ups. The resulting harm to innovation and entrepreneurship would be a significant setback to the EU’s broader digital ambitions.
Topic:
European Union, Regulation, Services, European Parliament, Fraud, and Liability
Political Geography:
Europe

3. National PAR Monitor Albania 2021/2022

Author:
Institute for Democracy and Mediation (IDM)
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Institute for Democracy and Mediation (IDM)
Abstract:
In its third monitoring cycle in a row, National PAR Monitor Albania 2021/2022 presents the results of the monitoring of the Public Administration Reform (PAR). Monitoring work was performed during 2021 – 2022 by IDM Albania. The methodological framework designed by the WeBER research team during the previous monitoring cycles (2017/2018-2019/2020) combines quantitative and qualitative sources of evidence. With the SIGMA principles as the building blocks of our monitoring, this report seeks to highlight the civil society perspective and that of the general public on PAR implementation, by focussing in particular at transparency, accountability, and inclusiveness in policymaking. A total of 23 indicators are used to measure PAR developments in six areas: (1) strategic framework for PAR, (2) policy development and coordination, (3) public service and human resource management, (4) accountability, (5) service delivery, and (6) public finance management. For each of the areas, the report provides an assessment for each indicator, a summary of the findings, and recommendations for future action.
Topic:
Development, Services, Monitoring, and Public Administration
Political Geography:
Europe, Balkans, Albania, and Southeast Europe

4. Prosperity and Resilience: Diverse Production and Comparative Advantage in Modern Economies

Author:
David Henig and Anna Guildea
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
A common version of trade theory suggests that countries will specialise in a limited number of products. Using the example of David Ricardo from 1817, England specialises in cloth and Portugal in producing wine – and then they trade with each other to mutual benefit. However, this is a crude version of comparative advantage that routinely leads to political concerns about trade. Today the prime concern is that Europe and other developed countries have become too dependent on China by allowing the logic of comparative advantage to work. In short, trade has made us vulnerable. The observed reality is different. Most advanced economies produce and export a broad range of goods and services. Their governments have similar aspirations to develop and support diverse manufacturing and services, including in the most traded global sectors such as pharmaceuticals, automotive, business services, and food and drink. Modern specialisation comes in countries producing various, but not all, products within global supply chains. Patterns of trade suggest such specialisation has allowed countries to both grow and become resilient to individual shocks. Knowledge and ownership of the whole supply chain is more important than producing everything.
Topic:
Globalization, Economy, Services, Resilience, WTO, and Production
Political Geography:
Europe and Global Focus

5. The impact of Brexit on UK services

Author:
Sarah Hall and Martin Heneghan
Publication Date:
12-2021
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
The service sector stands as a clear exemplar of the trade-offs entailed by Brexit. The emphasis placed by the government on reclaiming regulatory autonomy during the negotiations over the Trade and Cooperation Agreement (TCA), and the particular importance of ending freedom of movement had particularly serious consequences for those who import or export services. In this report, Sarah Hall, Senior Fellow at UK in a Changing Europe and Martin Heneghan, Research Fellow at the University of Nottingham explore the consequences to date of Brexit, and particularly of the TCA, for service providers.
Topic:
Treaties and Agreements, European Union, Regulation, Economy, Brexit, Services, and Trade
Political Geography:
United Kingdom and Europe

6. The Western Balkans in Times of the Global Pandemic

Author:
Vedran Dzihic
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
The global COVID-19 pandemic and the measures taken by governments around the world constitute a major rupture to the “business as usual”, and this includes the Western Balkans, too. The pandemic has been overshadowing other developments while also accelerating existing trends, and it will continue to do so. This analysis establishes the COVID-19 pandemic as a critical juncture, a crisis that can permanently shake up institutions and societies. There are considerable dangers beyond the impact of the pandemic on human lives, ranging from an economic crisis which could turn out to be worse than the one in 2008/9, to a heightened crisis of democracy and a geopolitical shift. None of these developments are inevitable and some of the consequences of the COVID-19 pandemic for the Western Balkans can be mitigated. By exploring nine critical fields, this analysis will highlight ways in which the pandemic and government responses pose particular challenges: 1. The Role of the State, 2. Democracy and State Capture, 3. Geopolitical Shifts, 4. New Nationalisms, 5. Social Resilience, 6. Environmental Impact, 7. Migration and Health Care, 8. Health Care and Social Security and 9. Economic Implications. With regard to all of the critical fields, the study examines the impact and outlines possible risks and opportunities before identifying specific interventions that could prevent the worst consequences for the region. In its emergency response, the EU needs to include all Western Balkans countries in assistance and post-emergency reconstruction plans, irrespective of the status of their accession talks. The full inclusion of the region is essential so as to prevent dire economic consequences and geopolitical drift. Support to overcome post-crisis economic and social effects should be conditioned on measures to reduce state capture. The pandemic cannot be an excuse for an unlimited suspension of democracy and restrictions on civil liberties must be temporary, proportional and transparent. The EU needs to identify and monitor the restrictions concerning democratic institutions and civil liberties that are permissible during the state of emergency in the Western Balkans. After the pandemic, state-society relations need to be rebuilt and the states of the region need to prioritise communication and education of the population over excessive repression. The spread of fake news is best combatted by clear and open communication, not through restrictions and censorship. Vulnerable groups, such as the Roma, need to be given access to healthcare and be protected from discrimination. The environmental crisis in the region will not be resolved or even ameliorated and faces the risk of becoming sidelined in the interest of a quick economic recovery. The combination of reduced car traffic during the lockdown and the continued record-high lev- els of air pollution have exposed the urgency of decisive action in regulating heavy industry: many large factories keep violating environmental standards and endangering the citizens’ health. To address the economic and social consequences, governments should support SMEs in particular, while also securing food supply for vulnerable groups. Finally, a temporary universal basic income could help citizens who have lost their livelihood. There is both a short- and long-term need to improve the quality of hospitals in terms of equipment, adequate supplies of medication, and reducing overcrowding of acute hospital wards, along with a raise in wages for hospital staff to secure their retention. A joint approach by governments and EU member states is required to address the shortage of medical personnel due to emigration from the region, which puts an additional strain on health care. A careful mixture of short- and long-term measures is needed to prevent the pandemic from turning into an enduring disaster for the Western Balkans. The crisis has also given greater visibility to many structural weakness- es in the region, from the weak health care systems, low trust in the state, to weak democracy and state capture, while at the same time awakening civic consciousness and serving as a backdrop for increased solidarity among citizens. Putting a spotlight on the weaknesses can help tackle them and build more resilient societies.
Topic:
Governance, Public Policy, Institutions, Services, Pandemic, and COVID-19
Political Geography:
Europe and Balkans

7. Consumer Detriment: Counting the Cost if Consumer Problems

Author:
Oxford Economics
Publication Date:
09-2016
Content Type:
Research Paper
Institution:
Oxford Economics
Abstract:
Every year, millions of UK consumers suffer from some form of consumer detriment, be it a delayed delivery, substandard service or the purchase of a faulty item. Such experiences are a familiar feature of everyday lives, but quantifying the scale and impact of these experiences for UK consumers in a systematic way is a complex task. This research project takes account of the monetary and time costs of consumer detriment, as well as compensation, to arrive at a considered estimate of total net cost for the UK population. This valuation incorporates three core elements. Firstly, it calculates the direct monetary costs borne by consumers who experience problems. These might be cash outlays caused by the problem itself (for example, when a broken toy is simply written off or when a poorly fitted boiler causes knock-on problems that have further costs) as well as any resulting loss of earnings. Secondly, it calculates the value of any leisure time given up by the consumer in experiencing or attempting to resolve the issue, so-called ‘time costs’, which might include things like time wasted on a delayed train, or time spent in a phone queue to get through to customer services. Thirdly, it calculates any compensation payments awarded in light of any claims made by the consumer, and subtracts these from the monetary and time costs described above. This approach seeks to present a comprehensive picture of UK consumer detriment, both larger and smaller problems.
Topic:
Markets, Services, Customer Service, and Consumerism
Political Geography:
United Kingdom and Europe

8. What Affects the Main Engine of Growth in the European Economy? Industrial Interconnectedness and Differences in Performance of Business Services Across the EU25

Author:
Grzegorz Poniatowski and Maciej Sobolewski
Publication Date:
06-2013
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The main purpose of this study is to determine what are the main factors which stand behind the diversity in performance of business services measured by their contribution to growth in the EU Member States. We show that in addition to typical growth factors which enhance labour productivity, also the extent of interconnectedness of business services with upstream industries is important to explain service-based economic growth. The analysis yields two interesting results. Firstly, the authors show that patterns of industrial interconnectedness of business services are considerably diversified across the EU Member States indicating large differences in the integration of services as supplier with other sectors on a country level. Secondly they show that the diversified growth performance of business services across the EU25 countries can be explained by differences in labour productivity and differences in forward linkages. The results indicate the fundamental role of business services as the main engine of growth in the European economy. This service-based growth is channelled mainly through increases in labour productivity and forward interconnectedness of services with downstream industries. On the policy making level the results indicate that investment in human and intangible capital are crucial for the service-dominated economy as they not only enhance economic growth inside knowledge intensive services but also facilitate transmission of growth impulses to downstream industries by increasing diffusion and integration of services as suppliers of high value added inputs to the economy.
Topic:
Development, European Union, Economy, Economic Growth, Services, Innovation, and Private Sector
Political Geography:
Europe

9. Explaining the Energy Consumption Portfolio in a Cross-Section of Countries: Are the BRICs Different?

Author:
David M. Arseneau
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper uses disaggregated data from a broad cross-section of countries to empirically assess differences in energy consumption profiles across countries. We find empirical support for the energy ladder hypothesis, which contends that as an economy develops it transits away from a heavier reliance on traditional fuel sources towards an increase in the use of modern commercial energy sources. We also find empirical support for the hypothesis that structural transformation--the idea that as an economy matures, it transforms away from agriculture-based activity into industrial activity and, finally, fully matures into a service-oriented economy--is an important driver for the distribution of end-use energy consumption. However, even when these two hypotheses are taken into account, we continue to find evidence suggesting that the patterns of energy consumption in the BRIC economies are importantly different from those of other economies.
Topic:
Development, Energy Policy, Infrastructure, Services, and BRIC
Political Geography:
Russia, China, Europe, India, Asia, Brazil, South America, and Global Focus