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111. Waiting for no one: prospects and consequences of bottom-up reconstruction in Syria

Author:
Fabrice Balanche
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
Discussion paper for the workshop on: “The Politics and Modalities of Reconstruction in Syria”, Geneva, Switzerland, 7-8 February 2019. The war in Syria has not ended, yet uncoordinated bottom-up reconstruction efforts have already taken place in many areas where the bombing and violence have stopped. The government is prioritising restoring electricity, as it is inexpensive, but water, education, and health are harder to restore cheaply and quickly. The resumption of public services, and investment in regime areas depends on loyalty, reminiscent of pre-war sectarian politics. The extent of politicisation of the reconstruction efforts led by the Syrian government is reduced because of limited funds, and government disconnection from local levels. Bottom-up efforts to reconstruction are limited to individuals rebuilding their houses using remittances, or low-level housing projects. Lack of large funding for infrastructure, industry and health will slow growth, reinforce fragmentation of industry and reproduce the root causes of the conflict.
Topic:
Government, Infrastructure, Reconstruction, Conflict, Syrian War, and Services
Political Geography:
Middle East and Syria

112. The Dawn of India’s Fourth Party System

Author:
Milan Vaishnav and Hintston
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
With the BJP’s return to power following May 2019 general election, India appears to have ushered in a new dominant party system—one premised on a unique set of political principles, showing a clear break with what came before. In the wake of the 2019 general election results, which come on the back of significant political changes at the level of India’s states, there is empirical support for more unequivocal judgments. Indeed, the available evidence points in one direction: 2014 was not an aberration; it was instead a harbinger of a new era.10 India does appear to have ushered in a new, fourth party system—one that is premised on a unique set of political principles and that shows a clear break with what came before. In the 2019 general election, the BJP did the unthinkable: the party clinched a second consecutive majority in the Lok Sabha, a feat that was last accomplished by the Congress Party in 1980 and 1984.
Topic:
Government, Elections, and Political Parties
Political Geography:
South Asia and India

113. ICT Supply Chain Integrity: Principles for Governmental and Corporate Policies

Author:
Ariel Levite
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In an increasingly digitized world, information and communication technologies (ICTs), and especially operational technologies (OTs), have assumed critical importance for governments, industry, and the general public worldwide. Yet trust in the integrity of these products and services is declining because of mounting concerns over inadvertent vulnerabilities in the supply chain and intentional backdoor interventions by state and corporate actors. Compounding the problem, these legitimate security concerns are sometimes exaggerated for political and commercial reasons—a counterproductive dynamic that fuels rivalries, fragments the marketplace, increases anxiety, stifles innovation, and drives up costs. Inarguably, some governments have been intervening in the ICT/OT supply chain or at least laying the groundwork for such interventions. They believe the pursuit to be justifiable and legal, citing objectives related to intelligence, law enforcement, and military operations. Whether valid or not, the concern is that certain corporations are actively or passively weakening the security of the supply chain and final products either at the behest of governments or for questionable purposes. Another concern is that both state and corporate interventions could leverage or mask what are purely lax security standards or flaws in products and services. And this further reduces trust in ICT/OT.
Topic:
Security, Government, Science and Technology, and Private Sector
Political Geography:
Global Focus

114. Defending Civic Space: Is the International Community Stuck?

Author:
Saskia Brechenmacher and Thomas Carothers
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Since the mid-2000s, civic space has come under attack in many countries around the world. To counter this trend, transnational actors that support civil society have responded in many ways—from exerting diplomatic pressure and building international norms to providing emergency funds for activists. Despite these efforts, governments continue to impose legal and extralegal restrictions amid a worsening larger political environment for civil society. Closing civic space now appears to be just one part of a much broader pattern of democratic recession and authoritarian resurgence. The international response seems stuck: some useful efforts have been undertaken, but they appear too limited, loosely focused, and reactive.
Topic:
Civil Society, Government, Political Activism, and International Community
Political Geography:
Global Focus

115. Lebanese and Iraqi Protesters Transcend Sectarianism

Author:
James M Dorsey
Publication Date:
11-2019
Content Type:
Commentary and Analysis
Institution:
The Begin-Sadat Centre for Strategic Studies (BESA)
Abstract:
The protests in Lebanon have evolved into more than a fight against a failed and corrupt government. They constitute a rare demand for political and social structures that emphasize national rather than ethnic or sectarian religious identities in a world in which civilizational leaders who advocate some form of racial, ethnic, or religious supremacy govern the world’s major as well as key regional powers.
Topic:
Government, Sectarianism, and Protests
Political Geography:
Iraq, Middle East, and Lebanon

116. Capital Controls and International Trade: An Industry Financial Vulnerability Perspective

Author:
Kevin Lai, Tao Wang, and David Xu
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Capital controls—or measures that governments take to restrict the amount of money that flows into and out of countries—pose significant challenges for firms that rely heavily on foreign financing to conduct business. This paper empirically evaluates effects of capital controls on trade across industries with varying levels of dependence on foreign capital. Mobilizing data on 99 countries from 1995 to 2014 across 27 industries, the authors find that industries more reliant on foreign capital tend to export much less in response to tightening of capital controls by exporting countries. Exports decline uniformly across all industries in response to tightening of capital controls by importing countries. The negative effects of capital controls on trade are less pronounced in countries with more advanced financial systems.
Topic:
Government, International Trade and Finance, Capital Flows, and Capital Controls
Political Geography:
Global Focus

117. The WTO's Existential Crisis: How to Salvage Its Ability to Settle Trade Disputes

Author:
Jeffrey J. Schott and Euijin Jung
Publication Date:
12-2019
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
US refusal to allow the appointment of new judges (or members) to the World Trade Organization’s Appellate Body—a key component of its renowned dispute settlement system—has pushed the organization into an existential crisis. The Appellate Body no longer has the requisite number of members to hear new cases on appeal. The terms of two of the three remaining members have expired, leaving the WTO without an appeal function. US officials charge that certain Appellate Body decisions on WTO dispute panel rulings have expanded WTO obligations and constrained WTO rights—what trade lawyers call “judicial overreach”—and so they have blocked the appointment of new Appellate Body members until other WTO countries address US complaints. Schott and Jung analyze the WTO cases brought against the United States and find that the problem of judicial overreach seems to surface primarily in a subset of US losses in antidumping and countervailing duty (AD/CVD) cases that target specific methods of calculating dumping margins. They warn that disabling the whole appellate system is a disproportionate response to the specific problem. It will weaken enforcement of WTO obligations and undermine prospects for negotiations to update the WTO rulebook, thus corroding the rules-based trading system, one that has been modeled on US law and practice. A better approach would be to exempt AD/CVD cases from appellate review (while still subjecting them to dispute panel rulings). This targeted change in the WTO Appellate Body process, coupled with procedural reforms already advanced in proposals that have been widely supported by WTO members, could mitigate US concerns and allow the Appellate Body to be repopulated.
Topic:
Government, World Trade Organization, Law, Judiciary, and Trade
Political Geography:
North America and United States of America

118. Global Dimensions of US Monetary Policy

Author:
Maurice Obstfeld
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper is a partial exploration of mechanisms through which global factors influence the tradeoffs that US monetary policy faces. It considers three main channels. The first is the determination of domestic inflation in a context where international prices and global competition play a role, alongside domestic slack and inflation expectations. The second channel is the determination of asset returns (including the natural real safe rate of interest) and financial conditions, given integration with global financial markets. The third channel, which is particular to the United States, is the potential spillback onto the US economy from the disproportionate impact of US monetary policy on the outside world. In themselves, global factors need not undermine a central bank’s ability to control the price level over the long term—after all, it is the monopoly issuer of the numeraire in which domestic prices are measured. Over shorter horizons, however, global factors do change the tradeoff between price-level control and other goals such as low unemployment and financial stability, thereby affecting the policy cost of attaining a given price path.
Topic:
Economics, Government, International Trade and Finance, and Monetary Policy
Political Geography:
North America and United States of America

119. International Coordination of Economic Policies in the Global Financial Crisis: Successes, Failures, and Consequences

Author:
Edwin M. Truman
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper evaluates international efforts to diagnose the global financial crisis and decide on appropriate responses, the treatments that were agreed and adopted, and the successes and failures as the crisis unfolded. International coordination of economic policies eventually contributed importantly to containing the crisis, but the authorities failed to agree on a diagnosis and the consequent need for joint action until the case was obvious. The policy actions that were adopted were powerful and effective, but they may have undermined prospects for coordinated responses to future crises.
Topic:
Government, International Cooperation, Financial Crisis, and Economy
Political Geography:
Global Focus

120. Fiscal Policy Options for Japan

Author:
Olivier Blanchard and Takashi Tashiro
Publication Date:
05-2019
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
For many years, the Japanese government has promised an eventual return to primary budget surpluses, but it has not delivered on these promises. Its latest goal is to return to primary balance by 2025. Blanchard and Tashiro, however, argue that, in the current economic environment in Japan, primary deficits may be needed for a long time, because they may be the best tool to sustain demand and output, alleviate the burden on monetary policy, and increase future output. What primary deficits are used for, however, is equally important, and the Japanese government should put them to better use. The authors recommend that, given Japan’s aging population, the government should spend on measures aimed at increasing fertility—and by implication population and output growth—which are likely to more than pay for themselves.
Topic:
Economics, Government, Budget, Fiscal Policy, and Deficit
Political Geography:
Japan and Asia