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1. Understanding the Impact of Remittances on Mexico’s Economy and Safeguarding Their Future Impact

Author:
Ryan C. Berg, Rubi Bledsoe, and Michael Ferguson
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Beyond providing supplemental income for Mexican households, remittances—funds sent by migrants to friends and families in their home country—provide a stable flow of developmental finance to the poorest subregions of the country, which have not historically benefited from international capital flows, such as development aid or foreign direct investment. Mexico, the world’s second-largest recipient of remittances, has seen a steady increase in the total volume of remittances received, primarily due to the strength of the U.S. labor market and concurrent wage growth among Mexican workers in the United States. Mechanisms to keep remittances secure are not impermeable to criminal organizations, which have been known to use small-increment deposits to launder gains from illicit economic activity, including drug trafficking. However, through increased U.S.-Mexico cooperation, both countries can strike the delicate balance between facilitating flows of remittances to promote development and financial inclusion and securing those funds from exploitation by illicit actors.
Topic:
Development, Economy, Trade, Economic Security, and Remittances
Political Geography:
North America and Mexico

2. US interests can benefit from stronger congressional ties with the Caribbean

Author:
Wazim Mowla and Maite Gonzalez Latorre
Publication Date:
06-2025
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The Caribbean’s geographic proximity to the United States—as well as its use as a transit point for US citizens, goods, and financial services—makes it a crucial hub for US national interests. However, the relationship has suffered from inconsistent and infrequent assistance. Changes in US policy priorities bring ever-changing adjustments to US engagement, leaving the Caribbean, its leadership, and its institutions with insufficient time to benefit from US policy action. For Caribbean countries, policy continuity is critical for implementation and to see tangible and meaningful development. The region’s small populations and markets, vulnerability to natural disasters and changing global commodity prices, and limited institutional capacity slow the pace of receiving and utilizing development assistance and support. Underpinning US-Caribbean ties with stronger US congressional engagement can provide needed longevity to the relationship. Congressional actions—like newly appropriated resources and committee hearings—can bring tangible benefits to US-Caribbean relations.
Topic:
Security, Environment, Politics, and Economy
Political Geography:
Caribbean, North America, and United States of America

3. With the 2024 Mexican election looming, here are two major recommendations for the next president

Author:
Ignacia Ulloa Peters, Martin Cassinelli, Maria Fernanda Bozmoski, and Charlene Aguilera
Publication Date:
05-2024
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
Countries representing half the world’s population are voting in 2024. On June 2, just over five months before Election Day in the United States, Mexican voters will set a historic milestone with the election of the country’s first female president. Over the course of her six-year term, Mexico’s new president will face enormous challenges—internally and in the country’s relationship with the United States. But, like never before, there is also a unique opportunity to strengthen the commercial and economic ties that bind the two countries and reimagine how our shared border could better serve our shared interests. Although the United States and Mexico have long been economically intertwined, in 2023, Mexico became the United States’ most important trading partner. Now more than ever, with great geopolitical headwinds, the commercial ties that bind our two countries will be increasingly critical to advancing US economic interests globally. Here, greater border efficiency will yield economic gains alongside improvements in our shared security. The Atlantic Council’s Adrienne Arsht Latin America Center, in partnership with internal and external colleagues and partners, sought to envision the future of two key aspects of the US-Mexico relationship: commercial flows and investment. With extensive feedback and numerous consultations with border stakeholders, including business owners, truck drivers, port operators, civilians, and local and federal elected officials, we sought out fresh perspectives and actionable recommendations. Our goal with this report is to spark dialogue among policymakers, business leaders, and civil society in both countries on the urgent need to address the immediate challenges of border efficiency and investment attraction over the next Mexican president’s term while paving the way for a more prosperous and secure future in our countries. The Rio Grande and its surrounding towns are more than a physical barrier separating the United States and Mexico. Rather, they are a vibrant artery of commerce, migration, and cultural exchange. Livelihoods depend on our border, but inefficiencies prevent us from maximizing the possible economic opportunities and achieving the necessary security gains. The pages that follow build on previous center findings and emphasize the need for a nuanced approach to foreign investment, infrastructure development, and security measures that prioritize efficiency and our national interests. This publication also seeks to bring the human dimension to the forefront. Public policy, after all, should reflect how to improve everyday lives. We consolidate the stories of real people affected by the US-Mexico border daily. The combined stories we have gathered over the last two years remind us of the impact of policy decisions. That reminder is particularly poignant with the 2024 elections on both sides of the border. Indeed, we stand on the cusp of a new chapter in our shared history. This report is a call to action for visionary leadership and bold, pragmatic solutions to the complex issues facing the United States and Mexico. We urge policymakers to embrace policies and strategies that address immediate challenges while laying the groundwork for both an even more inclusive and prosperous future. Let’s seize this unique moment in time.
Topic:
Elections, Economy, Innovation, Trade, and Domestic Policy
Political Geography:
Latin America, North America, and Mexico

4. Who’s a national security risk? The changing transatlantic geopolitics of data transfers

Author:
Kenneth Propp
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The geopolitics of transatlantic data transfers have been unvarying for the past decade. European governments criticize the US National Security Agency (NSA) for exploiting personal data moving from Europe to the United States for commercial reasons. The US government responds, through a series of arrangements with the European Union, by providing assurances that NSA collection is not disproportionate, and that Europeans have legal avenues if they believe their data has been illegally used. Although the arrangements have not proven legally stable, on the whole they have sufficed to keep data flowing via subsea cables under the Atlantic Ocean. Now the locus of national security concerns about international data transfers has shifted from Brussels to Washington. The Biden administration and the US Congress, in a series of bold measures, are moving aggressively to interrupt certain cross-border data flows, notably to China and Russia. The geopolitics of international data flows remain largely unchanged in Europe, however. European data protection authorities have been mostly noncommittal about the prospect of Russian state surveillance collecting Europeans’ personal data. Decisions on whether to transfer European data to Russia and China remain in the hands of individual companies. Will Washington’s new focus on data transfers to authoritarian states have an impact in Europe? Will Europe continue to pay more attention to the surveillance activities of its liberal democratic allies, especially the United States? Is there a prospect of Europe and the United States aligning on the national security risks of transfers to authoritarian countries?
Topic:
National Security, Science and Technology, Cybersecurity, Geopolitics, Economy, and Digital Policy
Political Geography:
Europe, North America, and United States of America

5. Calling on the EU-US Trade and Technology Council: How to Deliver for the Planet and the Economy

Author:
Oscar Guinea, Vanika Sharma, Philipp Lamprecht, Dyuti Pandya, and Oscar du Roy
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This Policy Brief proposes the establishment of an agreement on conformity assessment between the EU and the US that covers machinery and electrical equipment. The initiative aims to increase the number of European and US conformity assessment bodies authorized to test and certify EU and US machinery and electrical equipment for exports into each other’s markets, without recognizing the equivalency or otherwise altering the product requirements in regulation, standards, or other normative documents on either side. While this study focuses on the economic effects of an agreement on conformity assessment that includes machinery and electrical equipment, the scope of such an agreement could potentially be extended to several additional product categories, particularly those that are subject to requirements for mandatory third-party conformity assessment in both the EU and the US. The increase in the number of conformity assessment bodies is expected to reduce the costs and the time required to demonstrate conformity. If this policy succeeds as expected in achieving a reduction in trade costs between 2 and 6 percent, US exports to the EU are projected to increase between US$ 11 billion and US$ 32.5 billion while EU exports to the US are estimated to grow by between US$ 13.8 billion and US$ 42.2 billion. In percentage terms, US firms are anticipated to experience a larger increase in exports of machinery and electrical equipment than their EU counterparts. The increase in trade flows as a result of this agreement is estimated to be larger than the rise in trade flows achieved in other Free Trade Agreements signed by the EU or the US. Moreover, as an increasing number of EU regulations begin to mandate third-party conformity assessment, US firms will increasingly benefit from this agreement when exporting to the EU. Given China’s status as the largest supplier of machinery and electrical equipment to both the EU and the US, the implementation of an EU-US agreement on conformity assessment would not only improve conditions for transatlantic trade but also lead to reduced trade dependence for the EU and the US on China. The reduction in trade costs between the EU and the US on machinery and electrical equipment due to the agreement could lower Chinese exports to the EU and the US by between US$ 6.5 billion and US$ 19.4 billion. Importantly, machinery and electrical equipment are crucial inputs for some of the key technologies in which the EU and the US Administrations have identified trade dependencies on China. However, in contrast with other policies aimed at reducing reliance on Chinese imports, an agreement on conformity assessment for machinery and electrical equipment will not require public subsidies or impose any financial burden on taxpayers. This agreement also has the potential to benefit the environment. Machinery and electrical equipment are essential inputs for green technologies. Therefore, a reduction in the cost and time of conformity assessment in these industries will accelerate the adoption of green technologies. An agreement on conformity assessment between the EU and the US covering green goods and clean technologies could increase transatlantic exports between US$ 3.1 billion and US$ 9.2 billion. While this increase in exports is significant, broadening the scope of the agreement to include the entirety of machinery and electrical equipment, rather than just a subset, is projected to lead to trade effects eight times larger. Moreover, as green technologies rapidly evolve, an agreement on conformity assessment has the potential to serve as a dynamic instrument that evolves to accommodate future regulatory and economic developments on climate and the environment on both sides of the Atlantic.
Topic:
Science and Technology, European Union, Economy, and Trade
Political Geography:
Europe, North America, and United States of America

6. Slashing Tax Rates and Cutting Loopholes: Options for Tax Reform in the 119th Congress

Author:
Adam N. Michel
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The 2017 Tax Cuts and Jobs Act (TCJA) marked a significant overhaul of the US tax system. It reduced taxes for individuals and businesses through the end of 2025 and boosted economic growth. However, beginning in 2026, Americans face an automatic tax increase of about 8 percent (more than $400 billion a year). In the context of the debate over the expiration of the TCJA, the next Congress has an unprecedented opportunity to cut tax rates to their lowest level in almost a century. The Cato Institute is putting forth this tax plan that pairs massively pro-growth tax cuts with the elimination of $1.4 trillion worth of annual tax loopholes, corporate welfare, and other special-interest tax subsidies. The plan would reduce the top income tax rate to 25 percent, the capital gains rate to 15 percent, and the corporate rate to 12 percent; enact full expensing for all investments; and repeal the estate tax, alternative minimum tax, and net investment income tax. The more aggressively Congress eliminates loopholes in the tax code and cuts spending, the deeper it can slash tax rates, eliminate the costliest taxes, and boost the economy.
Topic:
Reform, Economy, Economic Growth, and Tax Systems
Political Geography:
North America and United States of America

7. 'I Don't Know What Tomorrow will Bring': Understanding COVID-19’s Impact on the United States’ Stateless Population

Author:
Ashley Walters, Taryn Painter, and Heidi Meyers
Publication Date:
02-2024
Content Type:
Journal Article
Journal:
Statelessness & Citizenship Review
Institution:
Peter McMullin Centre on Statelessness, Melbourne Law School
Abstract:
In March 2020, COVID-19 was declared by the World Health Organisation (‘WHO’) as a global pandemic. Since the WHO’s declaration, it has become increasingly clear that the most vulnerable communities have experienced the brunt of the pandemic. Though race, ethnicity and economic status are considered in a majority of reports on the social, physical and financial impacts of COVID-19, there is little to no information on the impact of COVID-19 on stateless communities within the United States (‘US’). This research endeavours to add to the understanding of statelessness in the US by determining the impacts of COVID-19 on stateless people in the US through a survey scoping project. Through anonymous questionnaires completed by stateless individuals (n=19) in the United States, this study explores how stateless individuals have been impacted by the pandemic, including experiencing economic hardships, mental health challenges, physical health concerns and issues with documentation and legal status.
Topic:
Health, Economy, Mental Health, Pandemic, COVID-19, Stateless Population, Vulnerability, Legal Status, and Documentation
Political Geography:
North America and United States of America

8. AI and the US Economy: Optimism, Pessimism, or Realism?

Author:
Fredrick Hernandez, Zach Moller, and Gabe Horwitz
Publication Date:
01-2024
Content Type:
Special Report
Institution:
Third Way
Abstract:
There were 130 websites on the internet in 1993; today there are 1.1 billion.1 Over those 30 years, the US economy quadrupled in nominal size and tripled in per capita income.2 The digital age has been very good for America. But it has also concentrated wealth and opportunity. The richest American in 1993 would only be the 101st richest today in inflation-adjusted dollars.3 There are now 735 billionaires living in America today, compared to fewer than 75 in the world in 1993.4 Meanwhile, the gains for the middle class were not stellar. Real median household income grew a solid, but not spectacular, 32% during the internet age. Most of that gain accrued to the two-fifths of working age America with a college degree.5 “50% to 70% of the changes in the US wage structure are intimately linked to automation, particularly digital automation,” MIT economist Daron Acemoglu estimates.6 That was the digital age. What about the artificial intelligence age? Ask McKinsey partner Michael Chui about AI and he says “it can be great not only for companies but for humankind.”7 But Eliezer Yudkowsky, co-founder of the Machine Intelligence Research Institute, said that if someone builds an over-powered AI, he expects “that every single member of the human species and all biological life on Earth dies shortly thereafter.”8 What seems clear is that whether we’re addressing the future of humankind or the well-being of the workforce, policymakers and industries must make intentional choices to get the best of AI and avoid the worst. Since AI will change the way we work and learn, this paper unpacks different economic projections to give policymakers a better read on what this technology will do to everything from American GDP to skill training. Broadly speaking, there are three distinct perspectives on AI and the economy. Optimists predict AI will elevate the working class, accelerate our national prosperity, and lower costs. Pessimists say AI will contribute to income inequality in the United States, jobs will be automated out of existence, and large corporations will gain far more than workers and families. Pragmatists accept AI will have positive benefits to the economy but acknowledge the mixed bag of how it will affect jobs and generally call for specific actions to mitigate harms and spread benefits. Below, we explore the key takeaways from each perspective. This is a product in a multi-year series to help educate policymakers on the implications and policy choices confronting Congress and the Administration on next generation Artificial Intelligence.
Topic:
Science and Technology, Economy, Artificial Intelligence, Digital Technologies, and Optimism
Political Geography:
North America and United States of America

9. Challenges to Chinese blue-water operations

Author:
Mike Sweeney
Publication Date:
04-2024
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
Despite having the world’s largest navy, important questions can be asked about China’s ability to challenge the U.S. Navy on a global scale. A number of factors—geography, logistical infrastructure, force structure, and command culture—all argue that China cannot do so at this time. In particular, China would need to significantly expand the number and caliber of its overseas bases in order to support large-scale, blue-water operations by the People’s Liberation Army Navy (PLAN). China currently has just two overseas bases—at Djibouti and Cambodia—and both are of limited capacity. Absent such a basing network, the PLAN is reliant on at-sea replenishment, a capability that is inherently vulnerable in wartime. China possesses some quality at-sea replenishment vessels but not nearly in sufficient quantities to support widespread global operations. While Chinese naval aviation has shown important improvements over the last year, the PLAN does not appear to have the logistical capacity to sustain high-tempo carrier operations outside the First Island Chain for an extended period of time. Super-quiet Chinese nuclear submarines would be game-changers in terms of Chinese blue-water operations. But thus far China has not shown mastery of the requisite technologies to build boats with this capability. It would also take China several years to grow a fleet of super-quiet submarines once the necessary technological challenges have been solved. Structural issues with the Chinese economy raise new concerns about Beijing’s ability to fund a blue-water navy over the long term. Such calculations must include the expense of ship construction, but also the massive operations and maintenance budget needed to deploy a potential navy of over 400 ships.
Topic:
Defense Policy, Armed Forces, Navy, Economy, and Submarines
Political Geography:
China, Asia, North America, and United States of America

10. Implicit Coordination in Sellers’ Inflation: How Cost Shocks Facilitate Price Hikes

Author:
Isabella Weber, Evan Wasner, Markus Lang, Benjamin Braun, and Jens van't Klooster
Publication Date:
11-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Supply shocks are now widely recognized as a driver of the recent inflation bout, but the role of firms’ pricing strategies in propagating input cost shocks remains contested. In this paper, we review the state of the academic debate over sellers’ inflation and assess whether, in line with this theory, economy-wide cost shocks have functioned as an implicit coordination mechanism for firms to hike prices. We use a dataset containing 138,962 corporate earnings call transcripts of 4,823 stock-market listed U.S. corporations from the period 2007-Q1 to 2022-Q2 to conduct sentiment analysis via both dictionary-based natural language processing and a large language model approach. We find that large input price shocks (as well as their co-occurrence with supply constraints) correlate with positive sentiments expressed in executives’ statements about cost increases. Qualitative analysis provides further insights into the reasoning behind executives’ optimism regarding their ability to turn an economy-wide cost shock into an opportunity to raise prices and protect or even increase profits.
Topic:
Economy, Inflation, Profit, and Corporations
Political Geography:
North America and United States of America