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1. Reflections on WTO Reform: Lecture series by Ignacio Garcia Bercero

Author:
Ignacio Garcia Bercero
Publication Date:
01-2025
Content Type:
Commentary and Analysis
Institution:
LSE IDEAS
Abstract:
This special edition of our Expert Analysis presents four lectures (edited for publication) on World Trade Organization reform delivered by the author at LSE IDEAS during June-November 2022 and concluding in May 2023. The paper ends on a postscript reflecting on the perspectives on the different issues discussed in the lectures following the outcome of the 13th Ministerial Conference of the WTO in February-March 2024, as well as the November 2024 re-election of Donald Trump—on the basis of a disruptive trade policy agenda.
Topic:
Reform, Trade Policy, Donald Trump, and WTO
Political Geography:
Global Focus

2. Future research and learning: Shaping agendas to inform more people centred humanitarian action

Author:
Veronique Barbelet
Publication Date:
01-2025
Content Type:
Special Report
Institution:
ALNAP: Active Learning Network for Accountability and Performance
Abstract:
In recent years, several critical reform agendas - localisation, accountability to affected populations (AAP) and inclusion – have built momentum at the heart of a push for quality humanitarian action grounded in equity and the experiences of crisis-affected people. Despite this progress, ALNAP ’s recent review of outcomes and practices highlights the inadequacy of current methodologies and a particularly weak evidence base around these reforms (although better for localisation). It revealed that while it is likely good practices do exist in the field, they often have not been fully evidenced, researched or widely disseminated. The review also underlined the need to reflect on and better inform research and learning.
Topic:
Humanitarian Aid, Reform, Accountability, Localization, and Gender Equality
Political Geography:
Global Focus

3. Connecting not conflating: Opportunities and risks of merging the localisation, AAP and inclusion agendas

Author:
Veronique Barbelet
Publication Date:
01-2025
Content Type:
Special Report
Institution:
ALNAP: Active Learning Network for Accountability and Performance
Abstract:
It is promising that people-centred humanitarian action has become such a key focus of reform for humanitarian actors, including donors and the United Nations. The concept of people-centred approaches, though loosely defined, increasingly appears to serve as a unifying umbrella for various reform agendas—such as localisation, accountability to affected populations (AAP), and inclusion—agendas that have, for the most part, been pursued separately in both policy and practice. While research has called for appropriate consideration of the benefits of bringing these agendas together (Barbelet et al., 2022; Lough et al., 2022), there is a risk that a people-centred focus could conflate the three distinct reform areas, rather than connect them in their synergies.
Topic:
Humanitarian Aid, United Nations, Reform, Inclusion, and Localization
Political Geography:
Global Focus

4. Tomorrow’s Global Development Landscape: Mapping Trends and Reform Dynamics

Author:
Heiner Janus, Niels Keijzer, and Svea Koch
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The key tools and governance approaches for international cooperation for sustainable development (hereafter, international cooperation) were set up in a markedly different time and age. International cooperation – with official development assistance (ODA) as the dominant means of implementation – remains key, despite being generally considered as no longer adequate for addressing today’s common and collective challenges. Despite numerous declarations of its growing irrelevance or calls for it even being beyond repair, the governance and reporting system of ODA has remained largely unchanged throughout its 60 years of existence. One reason is that there are few alternatives. Pandemic response and preparedness, climate finance, humanitarian aid, the United Nations development system as well as the budgets of the multilateral development banks all by and large remain dependent on ODA. New and additional sources of development finance have been slow to materialise and run the risk of remaining time-bound and ad-hoc, as illustrated by recent discussions on Special Drawing Rights, debt swaps and green bonds. While other actors, such as providers of South-South Cooperation (SSC), and non-governmental actors are increasing and gaining importance, they are only to a limited degree institutionalised. In the absence of transparent and coherent methodologies for monitoring their actions, concrete financial volumes remain hard to assess. This paper analyses structural factors of the institutional inertia in international cooperation and formulates expectations for where new reform impetuses might arise from. To this end, it maps and links key reform proposals for the global development system, with a specific focus on public financial flows consisting of three connected parts. The first part concerns current forms of and reporting processes for ODA, climate finance and SSC. These concern well-established, albeit path-dependent, forms of international cooperation with different types of multistakeholder settings and different levels of institutionalisation. Here, we do not expect fundamental reforms given various entrenched interests and expect that the nexus between climate finance and ODA will be the main driver for change. The second part of our mapping consists of what we call “global first” reform ideas. These ideas begin with a problem-oriented approach at the global level and aim at setting up new, universal financing schemes and redesigning institutional structures for that purpose. While the ideas in this category are still in their initial stage, we regard them to be particularly relevant for conceptualising the “demand-side” of reforms (i.e., “what would be needed?”). Here, we predict that the more ambitious reforms for creating universality of contributions and benefits at the global level will not materialise. However, these concepts play a key role in influencing the future orientation of specific existing (multilateral) institutions. The third part of our mapping entails positioning current multilateral and bilateral development organisations located between the first two parts. We observe that these organisations experience a gravitational pull towards both directions of reform, namely focusing on global public goods versus prioritising the (countries) left behind, often with competing incentives and trade-offs between national and global development priorities. We expect that a reform of bilateral development actors will lag behind in the broader policy field due to their domestic political constraints, whereas multilateral development banks will generate greater reform momentum (and be pushed by their stakeholders) as first movers.
Topic:
Development, International Cooperation, Governance, and Reform
Political Geography:
Global Focus

5. Simulations of the United Nations Veto Initiative: Process, Documents, and Prospects for Reform

Author:
Barbara Buckinx, TJ Eyerman, Charles Fraser, Anuj Krishnan, Elmir Mukhtarov, Alejandra Ramos, and Aly Rashid
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Liechtenstein Institute on Self-Determination, Princeton University
Abstract:
In April 2023, a year after its adoption, the Liechtenstein Institute on Self-Determination held the first-ever simulation of the United Nations (UN) veto initiative (UNGA RES/76/262). A subsequent simulation took place in March 2024. Passed amid criticism of UN Security Council inaction in response to the war in Ukraine, the veto initiative resolution aims to enhance the effectiveness, accountability, and transparency of the UN when it comes to matters of international peace and security. In the simulations, we tested scenarios for the implications of the veto initiative for the relationship between the UN Security Council and the UN General Assembly, and for the legitimacy of the UN as a whole.
Topic:
United Nations, Governance, Reform, UN Security Council, Simulation, and Russia-Ukraine War
Political Geography:
Global Focus

6. Navigating the treacherous political economy of structural reform

Author:
Davide Furceri, Jonathan Ostry, and Chris Papageorgiou
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
We examine the economic and electoral effects of liberalisation measures using newly-constructed databases on structural economic reforms and the outcome of democratic elections since the 1970s. The data shows a remarkable slowdown in the pace of liberalisation in both advanced and emerging market and developing countries since the 1990s. A debate has emerged about the causes of this slowdown, including the possibility that reforms do not deliver the economic benefits that advocates, including the multilateral financial institutions, trumpeted. Some have pointed to the fact that the current and previous United States administrations have abandoned neoliberal policies in favour of more government intervention in the economy, and the effect has been globally contagious. Our empirical analysis suggests that the growth dividend from liberalisation is economically and statistically significant, but it emerges only slowly over time. Because of this delay, liberalising reforms are costly to democratic incumbents when they are implemented close to elections. Reforms may generate immediate concentrated losses, which elicit an electoral backlash, especially when the aggregate gains are only visible several years after the reform’s implementation. The electoral penalty is also sensitive to overall business-cycle conditions, being much larger when an economy is in recession. Electoral effects also differ depending on the type of reform. Notably, financial reforms generate more perceptible growth-equity trade-offs than real-economy reforms, especially when implemented during weak economic conditions. The political economy of reform is treacherous. To avoid adverse electoral effects, timing reform early in the electoral term and when business-cycle conditions are favourable is critical. So too is avoiding reforms that generate large distributional costs in the face of small aggregate gains (an adverse growth-equity trade-off). Focusing on these considerations is critical to reinvigorate support for structural reform.
Topic:
Economics, Political Economy, Reform, Elections, and Liberalization
Political Geography:
Global Focus

7. Bold International Tax Reforms to Counteract the OECD Global Tax

Author:
Adam N. Michel
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Nearly 140 countries, including the United States, have endorsed a new global tax system proposed by the Organisation for Economic Co-operation and Development (OECD). This proposal, which aims to increase global business taxes and targets America’s most successful companies, threatens to undermine crucial features of the international corporate tax system. Congress will face a decision in 2025: conform to the OECD’s system or opt out and safeguard America’s position as the most attractive place to do business. The taxation of multinational businesses often raises concerns about a “race to the bottom” through harmful tax competition and businesses shifting profits to low-tax countries. Yet the magnitude and effect of these two phenomena are commonly misunderstood. Tax competition has allowed average statutory corporate tax rates to be cut in half over the past four decades, fueling investment and economic growth. Among OECD countries, revenues have increased while tax rates declined. The magnitude of profits shifted to low-tax countries is often inflated by researchers relying on data that overstate income in tax havens. A more comprehensive picture shows that about 8 percent of US corporate profits are reported in tax havens, only half of US multinationals have any presence in a tax haven, and they face higher effective tax rates than domestic competitors. Where it does exist, profit shifting acts as a tax cut on investment, boosting jobs and economic growth in both tax havens and higher-tax home markets. Following the long history of costly reforms to stop businesses from moving profits overseas, US policymakers should try a different approach. Instead of enacting new rules to stop income shifting out of the United States, Congress should focus exclusively on increasing the attractiveness of the United States as an investment destination.
Topic:
Reform, Business, Multinational Corporations, Tax Systems, OECD, and Competition
Political Geography:
Global Focus

8. Trust and Remuneration for Elected Representatives

Author:
Cassandra Emmons, Jordan Shipley, and Silja Paasilinna
Publication Date:
08-2024
Content Type:
Special Report
Institution:
International Foundation for Electoral Systems (IFES)
Abstract:
The rise of the Aragalaya (“The Struggle” in Sinhala) protest movement in Sri Lanka, triggered by the government’s defaulting on its debts in April 2022, highlighted the public’s belief that some of its elected officials are untrustworthy and corrupt. Demand for reforms is high; a supermajority of survey respondents in Sri Lanka in 2023 agreed that enforcing anti-corruption mechanisms equally across political parties (76 percent) and having an impartial judiciary (79 percent) and strong institutions with politically neutral or independent structures (72 percent) would increase their confidence in elected officials. Similar dissatisfaction with elected representatives and demand for reform and accountability can be observed in many countries that have been reeling from overall dissatisfaction with and, in some places, abandonment of, democracy. In hopes of building more resilient democracies that are bolstered by democratic trust, the International Foundation for Electoral Systems (IFES) undertook this research project. It compares the formal and informal remuneration that elected officials receive in Ecuador, Nepal, New Zealand, and Sri Lanka. This comparative research identifies 16 categories of benefits given to and restrictions placed on elected officials. These serve as a menu of options for others. The research also uncovers two ongoing challenges in rebuilding trust in elected officials via remuneration reform: constituents’ perceptions that officials receive more financial compensation than they actually do, and officials’ receipt of informal benefits. This research leads us to make five recommendations to countries considering remuneration reform or reflecting on their current practices: Ensure reasonable remuneration that is responsive to economic and other pressures. Keep the public informed about remuneration practices and, importantly, any changes to them. Require asset and income disclosure to increase transparency around officials’ earnings. Limit benefits extended to officials’ family members and prohibit nepotism. Limit unnecessary international travel and manage perceptions of abuse. Countries that strive to incorporate these reforms into their legal frameworks or common practices may help build a virtuous cycle of remuneration for and earned trust in elected officials. Improved trust may ultimately contribute to stronger, more resilient democracies.
Topic:
Corruption, Reform, Elections, Accountability, and Remuneration
Political Geography:
South Asia, Sri Lanka, and Global Focus

9. Localization in Theory and Practice

Author:
Ranil Dissanayake
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The movement for localization in foreign aid presents philosophical and practical challenges for providers of foreign aid. In the past, some level of localization (to at least state actors) of both decision-making and spending could be achieved through general and sector budget support, a logistically simple (though politically difficult) approach. Current practices, with more aid disbursed in the form of discrete projects, make localization more difficult to achieve. For development agencies to make progress they must confront conceptual, practical and strategic challenges. This paper suggests practical definitions of different kinds of localization and what they seek to achieve, points out trade-offs between them and sets out how they challenge current conceptions of how and what foreign aid seeks to do, as well as suggest limits to the optimal extent and type of localization. It then considers practical difficulties in implementing these different conceptions of localization given existing donor practices and capacities, and the strategic challenges of realizing the desired outcomes—specifically principal-agent problems within the organization and with contractors. It concludes with key lessons and messages for donors and funding agencies.
Topic:
Development, Humanitarian Aid, Reform, USAID, and Localization
Political Geography:
Global Focus

10. Beyond Punishment: From Criminal Justice Responses to Drug Policy Reform

Author:
Global Commission On Drug Policy
Publication Date:
12-2024
Content Type:
Special Report
Institution:
Global Commission On Drug Policy
Abstract:
The Global Commission on Drug Policy’s report, Beyond Punishment: From Criminal Justice Responses to Drug Policy Reform, exposes how punitive drug policies have driven mass incarceration and grave human rights violations. In 2023 alone, over 3.1 million people were arrested for drug-related offenses, with 20% of the global prison population detained for such crimes - nearly half for simple possession. The report underscores the devastating consequences of prohibitionist policies, including over one million overdose deaths in the U.S. in the past two decades and 40,000 in Canada in just eight years. It also highlights systemic inequities, such as Indigenous peoples in Canada being six times more likely to face drug-related arrests than white counterparts. Furthermore, the report illustrates the disproportionate burdens on women and children, deepening cycles of poverty and marginalization. It examines the broad spectrum of criminal justice responses to drug offenses, ranging from stop-and-search practices that disproportionately target marginalized communities to extreme measures like the death penalty and enforced treatment. These approaches often violate human rights, perpetuate stigma, and fail to address the root causes of substance use. Offering a roadmap for reform, the report advocates for evidence-based strategies, including harm reduction measures (e.g., Overdose Prevention Centers, naloxone distribution, and safer supply programs), decriminalization and the legal regulation of drug markets. These approaches not only save lives but also reduce societal harms, foster dignity, and promote health and equity.
Topic:
Human Rights, Reform, Criminal Justice, Mass Incarceration, Drugs, and Harm Reduction
Political Geography:
Global Focus