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11. De-risking Digitalization via Joint Ventures: The Case of Togo

Author:
Leslie N. L. Mills
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
The benefits of public-private partnerships in the delivery of non-digital infrastructure and services have been well documented. However, for the digital sector, the joint-venture model of public-private partnerships could offer African governments a way to accelerate digital transformation with both the advantages provided by public ownership and the efficiency offered by the private sector. Well-structured joint ventures enable African governments to de-risk digital projects, attract qualified talent, build trust among stakeholders to accelerate uptake of the joint venture’s output and promote local ownership and participation. For this model to be successful, governments need to work on strengthening rule of law, take on the burden of first loss from the private sector, negotiate for the private partner to contribute to building local talent and create opportunities for local ownership by enabling local investment in the joint venture.
Topic:
International Cooperation, Geopolitics, Digitalization, and Public-Private Partnership
Political Geography:
Africa and Togo

12. Decentralised finance: good technology, bad finance

Author:
Maria Demertzis and Catarina Martins
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The emergence of cryptocurrencies/crypto assets has allowed the provision of a new form of financial services, including payments and loans, known as decentralised finance (DeFi). Crypto assets currently represent only about 1 percent of total global financial assets and it is unlikely, in its current form, that DeFi will become a substitute for the traditional financial system, for three reasons. First, while decentralisation is very innovative, in practice the technology required to replace the role of intermediary is slow and costly in terms of energy use. This has led some crypto networks to adopt more centralised solutions to the problem of verification. Second, the automaticity behind the transactions does not allow for any legal recourse. If something goes wrong, there is no way to stop or reverse a transaction once it has been initiated. It is very difficult to imagine DeFi scaling up without the ability to challenge outcomes. Third, and perhaps most importantly, DeFi is for the most part self-referential. Crypto assets are exchanged for other crypto assets without being employed in activities that stimulate economic growth by creating jobs or facilitating investment. It is not likely for DeFi to grow enough to replace traditional finance unless it helps growth. Nevertheless, the technology that enables DeFi and crypto assets, distributed ledger technology (DLT), is very innovative and has managed to remove the intermediary without compromising the safety and finality of financial transactions. Hence, it is likely that the technology behind crypto assets and DeFi will feed into the mainstream and offer efficiency gains.
Topic:
Science and Technology, Regulation, Finance, Digitalization, and Digital Currency
Political Geography:
Global Focus

13. Digital Dichotomy: Opportunities and Challenges of Digitalization in Fragile Settings

Author:
Moneera Yassien
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
This policy brief examines the implications of digitalization in Fragile and Conflict-Affected Situations (FCS). Digitalization has a transformative potential but simultaneously presents distinctive challenges, particularly in FCS characterized by infrastructural limitations, weak governance, and socio-economic disparities. The OECD identifies digitalisation as one of the intensifying factors for the growing inequality between FCS and the rest of the world. However, in FCS the story extends beyond inequalities between countries to inequalities within countries which are more critical for the FCS context as inequalities exacerbate fragility and conflict. This brief highlights three points. The first point explores the dual impact of digitalization on FCS business environments. Digital tools can overcome infrastructure barriers, thereby fostering economic growth and enhancing market dynamics through increased transparency. However, digital technologies create information asymmetry, resulting in widening the gap between those who can participate in the digital economy and those who are left behind, subsequently exacerbating socio-economic inequalities, fostering exploitative working conditions, and potentially escalating instability in fragile and conflict-affected regions.The second point focuses on the labour markets, where digitalization through the online gig economy can create job opportunities and improve labour mobility. However, it can also undermine labour protection and contribute to wage disparity and issues relating to workers’ rights, accentuating inequality and exclusion, particularly in FCS. The third part investigates the role of digitalization in Communications and Information Security. Digital tools can empower communities to resist oppressive regimes but can also be exploited for surveillance and censorship, fuelling conflict and exacerbating social tensions. The brief concludes with policy recommendations aimed at integrating digital inclusion principles in FCS strategies, emphasizing equitable digital initiatives, and adopting conflict-sensitive and equitable digital policies. The recommendations underscore the need for a balanced approach to digitalization, fostering innovation while providing protection from contributing to fragility and conflict.
Topic:
Infrastructure, Fragile/Failed State, Business, Digitalization, and Inclusion
Political Geography:
Global Focus

14. Assessing Digital Leadership: Is the EU Losing out to the US?

Author:
Dario Guarascio and Roman Stöllinger
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Since Leontief’s (1953) seminal work on the factor content of trade, the validity of the Heckscher-Ohlin-model has been judged not only on the basis of formal tests of the theory but also tested against prior expectation. In this vein, this paper uses the Heckscher-Ohlin-Vanek (HOV) approach to investigate whether supposed US leadership in the digital domain can be traced back to digital task endowments embodied in labour services. In a comparison between EU member states and the US, we find that the latter is more intensive in digital tasks than the EU and that this difference is explained by both an intensity-effect (US occupations being more digital-task intensive) and a structural component (relatively more digital-task intensive occupations). Viewed through the lens of the HOV theorem we find that the US is abundant in digital tasks relative to non-digital tasks, while the opposite is true for the EU. The standard tests for the predictive power of the HOV theorem are high and in line with the results for labour in previous literature.
Topic:
International Trade and Finance, Foreign Direct Investment, European Union, Digitalization, and Competition
Political Geography:
Europe and United States of America

15. Trade Balances and International Competitiveness in Cyber-physical, Digital Task-intensive, ICT Capital-intensive and Traditional Industries

Author:
Alexandra Bykova and Roman Stöllinger
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this report, we analyse the international competitiveness of the EU in four industry groups over the period 1995-2018. The groups are delineated by specific factor intensities, where these intensities are assessed from digital tasks performed by labour services and ICT capital stocks. The EU’s positions relating to trade balances, revealed comparative advantages and unit value ratios are assessed relative to its main competitors, such as the US, China, Japan and South Korea. The trade specialisation patterns confirm EU advantages in traditional industries, which still represent the largest part of global trade, and in the group of digital task-intensive industries. In the cyber-physical group of industries, which are characterised by both high digital task and ICT capital intensities, the EU records a trade deficit, although this has been receding in recent years. Competitiveness indicators depict heterogeneity among EU countries. The loss of international competitiveness for some technology front-runners is a worrying sign. On the positive side, however, a reduction in trade deficits or an improvement in product quality and market shares is evident for certain EU countries, especially in the Central European region.
Topic:
International Trade and Finance, European Union, Trade, Digitalization, and International Competition
Political Geography:
Japan, China, Europe, Asia, South Korea, and United States of America

16. The Future of EU Cohesion - Effects of the Twin Transition on Disparities across European Regions

Author:
Ambre Maucorps, Roman Römisch, Thomas Schwab, and Nina Vujanović
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Closing the prosperity gap between regions has always been a key political aspiration of the European Union – and cohesion policy is the primary means to achieve that goal. Europe is currently undergoing a digital and green transition that is drastically changing the way its economy works. How well prepared are regions to capitalise on the twin transition? And what impact will it have on regional cohesion in Europe? Our study finds that greening and digitalising the economy will likely widen the gap between rich and poor regions in Europe.
Topic:
European Union, Economy, Regional Integration, Digitalization, Green Transition, and Regional Development
Political Geography:
Europe

17. Mitigating Global Fragmentation in Digital Trade Governance: A Case Study

Author:
Douglas Lippoldt
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Digital trade is growing rapidly, and regulators are trying to keep up. Concerns about privacy, consumer protection and national security demand regulatory attention, but too much regulation risks stifling digital trade. Current-generation trade agreements need to find the right balance between regulatory and liberal approaches to e-commerce. This paper looks at how five leading digital economies (Canada, the European Union, Japan, Singapore and the United States) are using regional trade agreements to address concerns while enhancing trade.
Topic:
Economics, International Cooperation, International Trade and Finance, Governance, and Digitalization
Political Geography:
Global Focus

18. Decoding Digitalization of Urban Governance in India Policy, People and Processes of the Smart Cities Mission and National Urban Digital Mission

Author:
Khaliq Parkar and Uttara Purandare
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
The presence of digital technology within urban governance in India is not new. Computerization and the use of enterprise software was encouraged in municipalities through the 1990s, followed by varied e-governance reforms in the early 2000s. These ranged from centralized policies like the National e-Governance Plan (NeGP), to projects such as the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), and city and state initiatives such as online billing and certification services for citizens and GIS platforms for administrators. The Smart Cities Mission (SCM) launched in 2015, gave a substantial and centralized push for digital interventions by choosing 100 cities to create “smart solutions” for urban governance, planning, and digital infrastructures. These were seen as “lighthouse” cities, expected to create technology-centric solutions that could be emulated by other cities in the mission.
Topic:
Governance, Urban, Smart Cities, and Digitalization
Political Geography:
South Asia and India

19. RETHINKING STRATEGIC AUTONOMY IN TIMES OF NEXT GENERATION EU: NEW DIGITAL AGENDA

Author:
Miguel Angel Solsona and Marcin Roman Czubala Ostapiuk
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The digital transformation of the global economy and society has accelerated after the Covid-19 pandemic. The European Union (EU), compared to China and the United States, is losing its capacity for innovation and control over data and fundamental raw materials and could even lose ground in the regulatory power it has in the digital realm. This paper pays special attention to the situation and progress toward a new European policy to achieve digital strategic autonomy. It also briefly outlines the Recovery Plan for Europe as a possible incentive for its promotion. Both descriptive and analytical methods were employed to gather the data from secondary sources and provide reliable research results. The major findings of this article are that strategic autonomy is an imperative requirement for sustaining and encouraging European integration, forcing the EU to advance faster toward developing critical digital technologies. There is also an urgent need to secure critical parts of supply chains and data protection, intellectual property, and defense against disinformation. Finally, the European Union must improve its resilience to face new crises and lead the digitalization of its economy.
Topic:
Science and Technology, European Union, Economy, Autonomy, Digital Policy, and Digitalization
Political Geography:
Europe

20. Towards an Intersectional Feminist Development Policy for Germany

Author:
Aïssa Boodhoo and Damjan Denkovski
Publication Date:
06-2023
Content Type:
Special Report
Institution:
Centre for Feminist Foreign Policy
Abstract:
In the development of Germany’s Feminist Development Policy Strategy, the Federal Ministry for Economic Cooperation and Development (BMZ) conducted a consultative process which included online consultations, a high-level conference, and civil society dialogues. While the broadest consultative process by the German government to date, the BMZ process had limitations in terms of Global South participation and language accessibility. To complement the official BMZ-led process, the Centre for Feminist Foreign Policy (CFFP) initiated a comprehensive co-creation process involving diverse feminist civil society organisations from the Global South, Germany, and other Global North countries. Guided by position papers from various perspectives, desk research, and interviews, the CFFP feminist convenings process involved over 100 feminists from diverse backgrounds, spanned over 25 countries, provided compensation to small and Global South organisations, and incorporated intersectional perspectives. The process consisted of in-person and online convenings held in multiple languages, ensuring broad accessibility. This report is a summary of the rich discussions and recommendations of feminists. It aims to influence policymakers and initiate action in shaping Germany's Feminist Development Policy. This report opens by discussing five action areas in chapter 1, which serve as comprehensive guidelines for immediate transformative action across policy areas. The second chapter discusses feminist reflections in six thematic areas: economic justice, climate justice, food sovereignty and agriculture, sexual and reproductive health and rights, protecting minority rights, and education.
Topic:
Foreign Policy, Agriculture, Climate Change, Development, Economics, Education, Minorities, Partnerships, Feminism, Reproductive Rights, Digitalization, Funding, and Food Sovereignty
Political Geography:
Germany and Global Focus