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51. The impact of regulatory frameworks on the global digital communications industry

Author:
Robert Dewar and Ellie Templeton
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
The Geneva Centre for Security Policy
Abstract:
A range of regulatory frameworks have been imposed by national governments and intergovernmental actors to control the operations of the digital communications sector. Whilst exercising their rights to manage entities operating within their jurisdictions, the imposition of economic restrictions has a significant impact beyond limiting commercial operations. This policy brief will analyse the impact of regulatory frameworks on the digital communications industry by exploring three high-profile programmes of restrictions imposed by three very different international actors
Topic:
Communications, Governance, Regulation, and Industry
Political Geography:
Global Focus

52. Public procurement in law and practice

Author:
Erica Bosio, Simeon Djankov, Edward Glaeser, and Andrei Shleifer
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This paper examines a new dataset of laws and practices governing public procurement, as well as procurement outcomes, in 187 countries. The authors measure regulation as restrictions on the discretion of the procuring agents. They find that laws and practices are highly correlated with each other across countries, and better practices are correlated with better outcomes, but laws themselves are not correlated with outcomes. To shed light on this puzzle, they present a model of procurement in which both regulation and public sector capacity determine the efficiency of procurement. In the model, regulation is effective in countries with low public sector capacity and detrimental in countries with high public sector capacity because it inhibits the socially optimal exercise of discretion. The paper finds evidence broadly consistent with this prediction: Regulation of procurement improves outcomes but only in countries with low public sector capacity.
Topic:
Government, Law, Regulation, and Procurement
Political Geography:
Global Focus

53. In Defense of Alternatives to Pollution Pricing

Author:
Garth Heutel
Publication Date:
05-2020
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
2020 marks the 100th anniversary of the publication of economist Arthur Cecil Pigou’s The Economics of Welfare. This book is widely recognized as introducing the concept of Pigouvian welfare economics, that is, of using the basic tools of neoclassical economics to study how to improve the functioning of the economy and people’s lives. While Pigou’s analysis touched on many topics in the economy, the part of Pigouvian welfare economics most remembered today by environmental economists (and perhaps by anyone who has taken an introductory microeconomics course) is his theory of externalities. Pigou argued that externalities, like pollution or congestion, create market failures, but that they can be cost-effectively remedied using taxes or subsidies. These price policies have come to be known as Pigouvian pricing, or Pigouvian taxes or subsidies. If there is one common lesson argued by most environmental economists today regarding the design of environmental policy, it is: the best way to correct the market failure caused by pollution is Pigouvian pricing. According to this argument, a price should be levied on pollution equal to the value of the damages it causes to society. The price can be directly applied via a pollution tax, or indirectly via a cap-and-trade system where the permit price becomes the Pigouvian price on pollution. If the price is correct, then the most efficient outcome will be realized, and it will be achieved at the lowest possible cost to society. A corollary is that environmental policies other than price policies, for example technology mandates or performance standards (what economists often call “command-and-control” policies), are inferior and should not be used.
Topic:
Economics, Environment, Natural Resources, Regulation, Macroeconomics, Microeconomics, Pollution, and Price
Political Geography:
Global Focus

54. Evolve or Perish: The Global Forces Changing the Business of Banks

Author:
Robert Fay and Angelo Arcelli
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Following the 2008 financial crisis, the Group of Twenty embarked on an ambitious financial regulatory reform plan that has seen many banks worldwide make substantial progress in terms of both capitalization and governance. Over this period, banks have also become increasingly exposed to business risks from digitization, artificial intelligence and cybercrime, and major investments are necessary to manage these risks. New regulations have been introduced in the European Union to reduce these risks, but their associated costs have potentially created a lasting competitive disadvantage for European banks. This situation has raised some key questions that deserve to be discussed and investigated: How does regulation — including that outside the sector — affect banks’ ability to compete globally? What will be the impact of fintech players as well as globally active banks from China and other emerging markets? Can the Basel regulatory framework and Financial Stability Board (FSB) ensure a level playing field globally going forward, or has the regulatory pendulum swung too far? How will the supervisory approach need to be adapted to the changing structure of the global financial system? Moreover, how will the implementation of Basel reforms affect the industry? These and other questions remain about the effectiveness of the already-achieved reforms as well as their future direction. These issues were at the core of CIGI and Oliver Wyman’s fifth annual Financial Regulatory Outlook Conference, held in Rome on November 28, 2018. This conference report summarizes the key points of discussions at the conference, with a special focus on the 10 years of regulatory reform that was conducted under the auspices of the FSB and the new forces that are currently affecting banks and could have an impact on the future.
Topic:
Financial Crisis, Regulation, Europe Union, and Digital Culture
Political Geography:
Europe and Global Focus

55. Emerging Countries in Global Financial Regulatory Standard Setting: What Is to Be Done?

Author:
Andrew Walter
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
This paper explores the role of emerging-country members in the Basel process, a key aspect of the global financial standard-setting process. It argues that this process has been significantly more politically resilient than adjacent aspects of global economic governance, in part because major emerging countries obtain continuing “intra-club” benefits from participation within it. The most important of these are learning benefits, but status and sometimes influence over standard-setting outcomes can also be valuable. The paper outlines how these benefits could be enhanced to secure the ongoing resilience of global financial regulatory governance. It recommends some modest reforms to further improve the position of emerging countries in the process and to bolster its perceived legitimacy among members and non-member countries.
Topic:
Economics, International Trade and Finance, Governance, and Regulation
Political Geography:
Global Focus

56. Macroeconomic Management Meets the New Economy

Author:
Commission on Global Economic Transformation
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Finance and the macroeconomy, both policy and industry practices as well as academic research, have evolved substantially in recent years. While the old questions of business cycles, macroeconomic management, financial regulation, and social protection are still being debated, we are now confronted with new developments in the economy, characterized by digital technology, new modes of production and business models, and changing employment relations. Macroeconomics and finance need urgent rethinking as the global economy transforms. Our gathering on March 5, 2019 brought together economists, policymakers, financial regulators, and industry practitioners from around the world. We heard diverse perspectives on multilateralism, pension and labor market reform, international trade, and risks in the world economy, and we grappled with issues on stagnant wages, public debt, fiscal and monetary policy, and banking reforms. Our discussion was by no means exhaustive or conclusive, but we attempted to harness the group’s collective wisdom to address some of the most prominent questions of our day. This document is intended to inform our commissioners as they develop CGET’s final report and to share our timely conversation with policymakers and the general public. Fomenting multidisciplinary, critical discourse is one of the most important responsibilities of this initiative, and we sincerely thank the staff at the Institute for New Economic Thinking (INET), our dedicated Commissioners, and our outside experts for helping us to promote this dialogue.
Topic:
Economics, Industrial Policy, Regulation, Digital Economy, Economic Theory, and Macroeconomics
Political Geography:
United States and Global Focus

57. Synthesis Report on State of Water: A Look at the Legal and Regulatory Framework Governing Water Services across Jurisdictions

Author:
Maanav Kumar and Parag Mohanty
Publication Date:
03-2019
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
This study looks at the development of legal and regulatory framework governing drinking water and sanitation services in South Africa, England and United States. Around 780 million worldwide do not have access to clean drinking water and almost 2.5 billion people lack access to improved sanitation according to data published by Centers for Disease Control and Prevention. In such a situation, it becomes extremely important to study the legal and regulatory measures used internationally to control, manage and improve these resources. This study, covering South Africa, England and USA, sets out to identify, comprehend and analyze these legal frameworks and structures; examine the control exercised by national, state/provincial as well as municipal governments over water and sanitation-related questions; and the responsive measures being taken by them to preserve the water resources and their quality for future generations. The authors have observed that in presence of varying geographical, historical and social factors, while it would be impossible to compare each model against the other on the basis of merit, it becomes increasingly important for governments to balance the individual’s right to water with the planet’s ecological balance.
Topic:
Environment, Government, Natural Resources, Water, Law, Regulation, Legislation, and Sanitation
Political Geography:
South Asia, India, Asia, and Global Focus

58. Should We Worry About Corporate Leverage?

Author:
Şebnem Kalemli-Özcan
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
There has been a large increase in corporate leverage in many countries since the early 2000s. Figure 1 plots corporate debt to GDP since 2002 for different groups of countries. With the exception of the U.S., both advanced economies and emerging markets have corporate debt exceeding GDP since 2005. U.S. corporate debt is also on an increasing trend. The fastest growth in corporate debt has been observed in emerging markets. A closer look will reveal that China and other fast growing emerging countries in Asia drive most of the increase in corporate debt for the emerging markets.
Topic:
Debt, Economics, Markets, Regulation, Multinational Corporations, and Economic Policy
Political Geography:
United States and Global Focus

59. Labor Institutions and Development Under Globalization

Author:
Servaas Storm and Jeronim Capaldo
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Labor market regulation is a controversial area of public policy in both developed and developing countries. After decades of de-regulatory advice, international financial institutions have recently come to a less extreme position. But any concessions to labor regulation are based on concerns for social stability or for short-term support to aggregate demand, while regulation continues to be viewed as harmful to economic efficiency. In this paper we take a deeper look at the impact of labor institutions on economic development in two ways. First, we propose a macroeconomic model with balance-of-payments constraint for a “small” developing country open to trade and foreign capital. This helps us clarify the importance of a dynamic view of economic efficiency, as opposed to the static view embedded in mainstream policy advice. Secondly, we discuss the political economy of labor regulation. We argue that labor institutions promote economic development though positive effects on aggregate demand, labor productivity and technology.
Topic:
Economics, Labor Issues, Regulation, Labor Market, and Labor Cost
Political Geography:
Global Focus

60. Vulnerable Non-State Actors in Transnational Regulation DecisionMaking

Author:
N. Aguilar Delgado and P. Perez-Aleman
Publication Date:
12-2018
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University (ISID)
Abstract:
Recommendations stemming from different meeting spaces have different potentials for being transformed into inclusive decisions. The involvement practices vary across the different spaces, which in turn affect the interaction between governments and non-state actors. The creation of institutional mechanisms and programs that promote non-state actors’ attendance were effective for increasing participation. Non-state actors must be strategic in identifying spaces and developing skills to be more included.
Topic:
Development, Non State Actors, Regulation, and Transnational Actors
Political Geography:
Global Focus