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11. Shared Liability: The European Parliament’s Misstep in Fighting Financial Fraud

Author:
Matthias Bauer, Andrea Dugo, and Dyuti Pandya
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The rise in financial fraud has prompted regulatory proposals under the Payment Services Regulation in the form of a shared liability model provisioned under Article 59. The potential proposal by the European Parliament could now extend liability beyond Payment Service Providers to Electronic Communications Service Providers and online platforms. While the intent to address fraud is commendable, this model misallocates responsibilities by requiring non-financial entities to oversee fraudulent activities, despite their lack of visibility and technical control over financial transactions. Extending liability to non-financial entities risks undermining consumer vigilance and diluting payment services providers’ efforts to maintain fraud awareness. A shared liability regime covering non-financial entities would also disproportionately burden smaller “digital” firms, leading to legal uncertainties, costly legal disputes, and market exits. This would not only drive market concentration and reduce competition in digital services but also undermine EU and Member State efforts to support Europe’s lagging digital start-ups and scale-ups. The resulting harm to innovation and entrepreneurship would be a significant setback to the EU’s broader digital ambitions.
Topic:
European Union, Regulation, Services, European Parliament, Fraud, and Liability
Political Geography:
Europe

12. Malaysia’s Blue Economy: Position, Initiatives, and Challenges

Author:
Abdul Hafizh Mohd Azam, Muhamad Rias K.V. Zainuddin, and Tamat Sarmidi
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Malaysia leverages the economic activities in and around its oceans, seas, and coastal areas, as its maritime space is double the country’s land area. The marine-based or blue economy contributes about 23% of Malaysia’s GDP. Realising the importance of the blue economy led Malaysian policymakers to incorporate the concept of the blue economy in the Twelfth Malaysia Plan, which was developed in consultation with relevant ministries and organisations. Although the blue economy has been identified as a key area of growth for Malaysia, its development faces numerous challenges such as the absence of a comprehensive national ocean policy and marine spatial plan, overlapping jurisdiction amongst government agencies, and shortage of labour. Thus, a systematic approach is necessary to analyse the gaps in the ‘8i-ecosystem’ to ensure the effective development and management of Malaysia's blue economy. To ensure that the initiatives for the blue economy in Malaysia are on track and delivering the intended outcomes, appropriate monitoring and evaluation approaches and mechanisms must be in place.
Topic:
Governance, Regulation, Services, Trade, ASEAN, and Blue Economy
Political Geography:
Malaysia and Southeast Asia

13. Industry Agglomeration, Urban Amenities, and Regional Development in India

Author:
Subash Sasidharan and Shandre Mugan Thangavelu
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Industrial agglomeration is an important component to create efficiency and externalities for industrial growth and competitiveness for the Indian economy. In this paper, we examine the spatial location of Indian firms and industry agglomeration at district and township level for the Indian economy. Particularly, we examine the impact of urban amenities in driving the industrial agglomeration in the Indian economy using firm-level data. We carefully control for township-level urban amenities, as well as firm level characteristics in affecting the industry agglomeration. As opposed to previous state- and district-level studies, we examine the impact of urban amenities at a more disaggregated township level for 2011. The study also examines the impact of urban amenities on manufacturing, as well as the services sector. The empirical analysis findings indicate a positive correlation between town-level disparities in industry agglomeration and various amenities, including education, healthcare, energy, transportation, finance, and cultural resources. These results remain consistent when considering alternative measures of agglomeration and conducting sub-sample analyses.
Topic:
Development, Manufacturing, Services, and Industry
Political Geography:
South Asia and India

14. Does Gravity Matter for Trade in Intermediate Services?

Author:
Anmol Kaur Grewal
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
This paper makes a twofold contribution to the literature on trade in services. First, I construct a novel bilateral dataset of trade in services differentiating between final consumption and intermediate consumption following the most recent classification of UN’s Broad Economic Categories (BEC Rev. 5). Second, I use this dataset to estimate a gravity model of trade in intermediate and final services for a sample of 48 economies for the time period 2010-2019. Using a robust model specification consistent with the recent advancements in the gravity literature, I find that trade in services exhibits a sensitivity to bilateral distance between trading partners, similar to trade in goods. Intermediate services tend to be more sensitive to distance relative to final services due to the distinct nature of these services (B2B versus B2C). Common language and common borders are important determinants of both trade in intermediate and final services. I also find evidence of non-linear effects of time zone differences on trade in services.
Topic:
Economics, Services, Trade, and Consumption
Political Geography:
Global Focus

15. National PAR Monitor Albania 2021/2022

Author:
Institute for Democracy and Mediation (IDM)
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Institute for Democracy and Mediation (IDM)
Abstract:
In its third monitoring cycle in a row, National PAR Monitor Albania 2021/2022 presents the results of the monitoring of the Public Administration Reform (PAR). Monitoring work was performed during 2021 – 2022 by IDM Albania. The methodological framework designed by the WeBER research team during the previous monitoring cycles (2017/2018-2019/2020) combines quantitative and qualitative sources of evidence. With the SIGMA principles as the building blocks of our monitoring, this report seeks to highlight the civil society perspective and that of the general public on PAR implementation, by focussing in particular at transparency, accountability, and inclusiveness in policymaking. A total of 23 indicators are used to measure PAR developments in six areas: (1) strategic framework for PAR, (2) policy development and coordination, (3) public service and human resource management, (4) accountability, (5) service delivery, and (6) public finance management. For each of the areas, the report provides an assessment for each indicator, a summary of the findings, and recommendations for future action.
Topic:
Development, Services, Monitoring, and Public Administration
Political Geography:
Europe, Balkans, Albania, and Southeast Europe

16. Participatory Interfaith Dialogue: The Keys to Addressing People’s Needs in Morocco

Author:
Yossef Ben-Meir
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Twenty-nine years ago, I was a Peace Corps Volunteer living in a mountainous High Atlas village called Amsouzerte, near the southern side of Morocco’s Toubkal National Park. Back then, the journey from the village to the nearest city center took almost 20 hours along unpaved roads and mountain passes. At the foot of a mountainside, fifty kilometers from Amsouzerte, I would sometimes catch sight of an old, white mausoleum that seemed misplaced among the earth-brick homes characteristic of rural Moroccan landscapes. Looking upon this eroding mountain area, I could envision huge swaths of terraces constructed above the mausoleum for the local Muslim community to build tree nurseries and derive generational benefits. Tree nurseries are very valuable for Moroccan farming communities because 70 percent of agricultural land[1] in the country generates only 10-15 percent of agricultural revenue. Fruit tree cultivation allows farming families to transition from less lucrative barley and corn crops and generate higher income.[2]
Topic:
Civil Society, Religion, Services, and Dialogue
Political Geography:
North Africa and Morocco

17. Morocco’s Social Protection Programs: Can the Country Overcome the Odds?

Author:
Othman Makhon
Publication Date:
09-2023
Content Type:
Special Report
Institution:
Arab Reform Initiative (ARI)
Abstract:
During the 1980s, Moroccan governments adopted structural adjustment policies that inadvertently left deep-seated vulnerabilities across Moroccan society. The enduring consequences of these policies continue to marginalize a significant portion of Moroccans, depriving them of access to quality education, comprehensive healthcare, adequate housing, and decent employment opportunities. The state’s approach to addressing the societal challenges spanning decades has alternated between targeted measures aimed at rectifying the disparities stemming from the maldistribution of resources and services, on the one hand, and reactive strategies aimed at mitigating the adverse impacts of structural adjustments, on the other.1 The decreased government investments in critical social sectors, such as healthcare and education, have over time compelled this new departure from previous policies of neglect. Although such policies might have contributed to macroeconomic stability, they also adversely affected both social cohesion and the population’s social protection networks.2 Subsequent administrations embarked on a mission to address these predicaments, which have exacted a toll on Morocco and relegated the nation to the lower levels of the Human Development Index: As of the 2022 assessment, Morocco’s ranking was 123.3 These administrations were compelled to devise strategies encompassing both economic and social dimensions, aiming to free Morocco from the ramifications of stringent structural adjustment policies. Their goal was to transition the Moroccan economy from its reliance on agricultural and raw material exports to a more self-reliant model, characterized by high–value-added industries capable of absorbing the unemployed workforce into productive economic activities. Such a transformation was anticipated to pave the way for comprehensive social protection. However, the approach adopted by these administrations gravitated towards superficial and improvised remedies, dominated by an urgency-driven and philanthropic approach. These impromptu solutions fell short of propelling the vulnerable and poor segments out of the cycle of exclusion and marginalization. All initiatives within this context adhered to the neoliberal principles adopted by these governing bodies. These administrations gave paramount significance to a market-driven economy, as well as financial and macroeconomic equilibriums, oftentimes at the expense of the substantial sections of the population that experienced pervasive poverty and destitution. Consequently, social assistance endeavors proved to be misleadinag, exacerbating the disparities among Moroccans. This occurred within an environment lacking robust social and economic policies dedicated to achieving social equity and equitable distribution of resources. These programs were subject to criticism and unfavorable assessments from all corners of the state, including from the king himself, who remarked on their fragmentation across ministerial domains, inadequate coordination, and their inherent inability to accurately target deserving groups. As a result, they struggled to effectively address the needs of citizens, leaving only a faint impact on the lives they sought to improve.4 The advent of the COVID-19 pandemic exacerbated the existing economic and social vulnerabilities prevalent in Moroccan society. The pandemic exposed the inadequacies and fragility of the programs in safeguarding the dignity of the populace, which became particularly pronounced in the absence of a fair and robust social protection system. This reality led both the king and the political establishment to recognize the urgency of re-evaluating the fundamental underpinnings of this system. Their shared view materialized in a commitment to universal social protection for all Moroccans, with a deadline set for 2025. On the other hand, the rapid spread of the pandemic coincided with Morocco’s comprehensive assessment and recalibration of its development paradigm. Despite its aspirations, this model had failed to fully incorporate the Moroccan populace within development dynamics, instead focusing on financial equilibrium, often to the detriment of social and human equilibrium; this prompted the contemplation of a fresh development model. The newly envisaged model aimed to sever ties with the trajectory that had resulted in structural disparities, spanning domains such as education, skill development, healthcare, housing, employment, public services, and social protection.5
Topic:
Public Policy, Services, COVID-19, and Social Protection
Political Geography:
North Africa and Morocco

18. Iran’s Khuzestan: Thirst and Turmoil

Author:
International Crisis Group
Publication Date:
08-2023
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
Episodes of unrest in Iran often unfold similarly: the government nods to public concerns, but then resorts to repression, setting the stage for another confrontation between state and society. The pattern is clearest in peripheral provinces like Khuzestan, where a pressing grievance is water scarcity.
Topic:
Natural Resources, Water, Governance, Services, and Civil Unrest
Political Geography:
Iran, Middle East, and Khuzestan

19. Does Gravity Matter for Trade in Intermediate Services?

Author:
Anmol Kaur Grewal
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
This paper makes a twofold contribution to the literature on trade in services. First, I construct a novel bilateral dataset of trade in services differentiating between final consumption and intermediate consumption following the most recent classification of UN’s Broad Economic Categories (BEC Rev. 5). Second, I use this dataset to estimate a gravity model of trade in intermediate and final services for a sample of 48 economies for the time period 2010-2019. Using a robust model specification consistent with the recent advancements in the gravity literature, I find that trade in services exhibits a sensitivity to bilateral distance between trading partners, similar to trade in goods. Intermediate services tend to be more sensitive to distance relative to final services due to the distinct nature of these services (B2B versus B2C). Common language and common borders are important determinants of both trade in intermediate and final services. I also find evidence of non-linear effects of time zone differences on trade in services.
Topic:
Economics, Services, Trade, Consumption, and Intermediate Services
Political Geography:
Global Focus

20. Traditional Services Trade in the Regional Comprehensive Economic Partnership

Author:
Zhang Yan and Shandre Mugan Thangavelu
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Traditional services trade (TST), including tourism and transport services, is the basic and key component of services trade in the Regional Comprehensive Economic Partnership (RCEP). The implementation of RCEP will provide a platform for further liberalisation in TST, thus effectively promoting the growth of the whole service trade and the development of the travel and transportation industry. In this paper we will first show the trade pattern of TST in RCEP. Then, the commitments by each RCEP member will be thoroughly analysed, and the Hoekman index will be constructed to measure the liberalisation levels for the RCEP members. In the last section, we outline some impacts of the COVID-19 pandemic on TST and propose policy implications for RCEP in the post pandemic era.
Topic:
Economics, Tourism, Services, and Transportation
Political Geography:
Asia and ASEAN