Search

Begin New Search Topic Economy Publication Year within 3 Years

41. Market power and merger control in South Africa

Author:
C. Friedrich Kreuser, Michael Kilumelume, and Rulof Burger
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We estimate structural, materials, and labour markups for the South African economy at the three-digit industry level for 2012–19. The fall in structural labour and materials markups found for the numerical majority of industries are generally isolated to smaller industries, with industries accounting for a higher proportion of sales generally experiencing smaller downward shifts. We show that materials-based markups are increasing over this period. Upward markup pressure in structural and labour markups are primarily driven by compositional shifts of surviving firms, while materials markup growth is driven by the average firm in a given sector. We show that merger intensity is positively related to structural markup growth, with a 1% increase in the proportion of cumulative mergers over 2013–18 being related to around a 0.27% increase in structural markup growth over the period from 2012 to 2019. We find that large vertical mergers are positively related to structural and materials markup growth while being negatively related to labour markup growth. Large horizontal mergers generally increase labour and structural markups.
Topic:
Markets, Economy, Industry, and Mergers and Acquisitions
Political Geography:
Africa and South Africa

42. Climate change prioritization in low-income and developing countries

Author:
Amin Mohseni-Cheraghlou and Henry Evans
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The World Bank’s 2023 document Evolving the World Bank Group’s Mission, Operations, and Resources: A Roadmap, otherwise known as the “evolution roadmap,” sets a laudable goal to shift more focus and action onto climate change in low-income and developing countries (LIDCs). The language used throughout the report clearly reflects the Bank’s shifting priorities. The word “climate” was mentioned forty times in the evolution roadmap document, “poverty” was mentioned forty-two times, and prosperity was mentioned only twenty-one times. This shows a clear paradigm shift that is expanding from the World Bank’s “Twin Goals” of ending extreme poverty and boosting shared prosperity to also include issues related to climate change and financing. In the evolution roadmap report, the World Bank Group (WBG) rightly identifies that the world has not only stalled, but regressed in achieving the prosperity and development goals set for this decade. Further, the WBG identifies that LIDCs are not prepared to face the development challenges of the modern world. One of the key development issues the WBG identifies is climate change, which has an outsized impact on LIDCs. In this regard, the WBG has already created frameworks to engage climate issues in LIDCs. The WBG’s Country Climate and Development Reports (CCDR) offer a comprehensive resource to support development and climate objectives at the country level. These public reports empower governments, private sector investors, and citizens to prioritize resilience and adaptation and reduce emissions without compromising broader development objectives. These goals can be achieved, the WBG estimates, with an investment averaging 1.4 percent of a given country’s gross domestic product (GDP)— though in some low-income countries that number can be between 5 percent and 10 percent. While the CCDR gives nations the tools to achieve climate objectives without significantly compromising development, it does not bridge the gap between the increasing focus of the WBG and the developed world on climate change and the real priorities of LIDCs.
Topic:
Climate Change, Developing World, Economy, Economic Growth, Inclusion, and Prioritization
Political Geography:
Africa, Indo-Pacific, and Americas

43. Redefining US strategy with Latin America and the Caribbean for a new era

Author:
Jason Marczak, Maria Fernanda Bozmoski, and Matthew Kroenig
Publication Date:
02-2024
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
The strategic interest of the United States and the countries of Latin America and Caribbean (LAC) lies in strengthening their western hemisphere partnership. Shared borders, economic interests, and security alliances bind these nations, along with a common goal for prosperity. However, the perception of waning US interest and the rise of external influences necessitate the rejuvenation of and renewed focus on this partnership. In May 2023, the Atlantic Council’s Adrienne Arsht Latin America Center and the Scowcroft Center for Strategy and Security established the US-LAC Future Strategy Working Group to redefine the US-LAC partnership. This strategy promotes mutual and inclusive economic growth, renewed cooperation through enhanced commercial and investment ties, a renewed paradigm on bolstering security and reducing migration flows across the region, and a focus on preparedness in the face of natural disasters and the energy transition. Acting on this strategy could significantly benefit US economic and security interests. The United States should capitalize on immediate opportunities, like promoting nearshoring as a means to growth and prosperity across the Americas, while maintaining a medium-term strategy tailored to each country’s specific needs. This strategy paper highlights the importance of adaptability and practicality, particularly as the global economic landscape evolves and power shifts foresee new leading economies by mid-century. In addition, the strategy advocates for the significance of the US-LAC relationship amid the recalibration of US worldwide interests.
Topic:
Foreign Policy, Diplomacy, Migration, Politics, Economy, and Energy
Political Geography:
Latin America, Caribbean, and United States of America

44. Not without her: A roadmap for gender equality and Caribbean prosperity

Author:
Wazim Mowla and Valentina Sader
Publication Date:
03-2024
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
The Caribbean is one of the most vulnerable regions globally. It harbors economies that are open-faced and import-dependent, making it susceptible to the ravages of climate change, fluctuating commodity prices, and inflationary pressures. While governments and financial institutions grapple with these perpetual stresses, it is the Caribbean citizens, particularly women and girls, who bear the heaviest burden. Nestled in this uniquely vulnerable region, women and girls face a multitude of challenges, demanding comprehensive support from both governments and financial institutions to enhance their resilience and opportunities throughout society. Their integration across various sectors, including government, business, and local organizations, emphasizes that addressing gender challenges cannot occur in isolation. The global issues looming over the Caribbean magnify the specific hurdles confronting women and girls. From gender-based violence (GBV) and economic barriers to limited political influence and the disproportionate impacts of climate change, the challenges intertwine, creating a crisis of gender inequality and inequity across the Caribbean. This publication compiles findings from a yearlong consultative effort, revealing that the challenges faced by women and girls are rooted in societal perceptions of their roles and restricted access to tools and resources. To overcome these barriers, a fundamental reshaping of social norms, alongside political and financial institutions, is imperative. Moreover, integrating women and girls into the development model aligns with the region’s broader ambitions of achieving UN Sustainable Development Goals (SDGs), unlocking untapped human capital and fostering long-term prosperity. In collaboration with the UN Women Caribbean Multi-Country Office, the Atlantic Council’s Adrienne Arsht Latin America Center and its Caribbean Initiative embarked on a year-long partnership. This initiative aimed to address GBV, economic empowerment challenges, limited political influence, and the disproportionate effects of climate change facing women and girls in the Caribbean. The extensive consultative process involved roundtable discussions, capacity-building sessions, and one-on-one consultations, shedding light on the preconceptions held by both men and women toward women and girls in Jamaica and Guyana during 2023. The partnership has honed in on social norms as a focal point, recognizing their impact on perceptions and discussions about the challenges faced by women and girls.
Topic:
Climate Change, Women, Inequality, Economy, Resilience, and Gender
Political Geography:
Latin America and Caribbean

45. Geoeconomic fragmentation and net-zero targets

Author:
Shirin Hakim and Amin Mohseni-Cheraghlou
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The second half of the twentieth century experienced significant economic integration. International trade, cross-border migration, capital flows, and technological diffusion increased per capita incomes across countries and reduced global poverty. However, events such as the global financial crisis of 2007 to 2009, Brexit, and the COVID-19 pandemic—all against the backdrop of escalating great power rivalry and tensions between the United States and China—have demonstrated the rise of geoeconomic fragmentation (GEF). Since the 2022 Russian invasion of Ukraine, a growing numberof world leaders have addressed the impacts of GEF on global energy and agricultural markets. For one, higher and increasingly volatile food and energy prices have made it increasingly difficult for developing nations to prioritize environmental concerns and implement sustainable development initiatives.
Topic:
Climate Change, Environment, International Trade and Finance, Economy, Economic Growth, Inclusion, Energy, Geoeconomics, and Net Zero
Political Geography:
China, Asia, and United States of America

46. 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

47. 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

48. Digital services for e-government: opportunities for a future 2.5 billion African demographic market

Author:
Nii Simmonds
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
In partnership with Africa Development Solutions (ADS) Group, the Africa Center released a report on “Digital services for e-government: Opportunities for a future 2.5 billion African demographic market” by Atlantic Council, GeoTech Nonresident Senior Fellow, Nii Simmonds. This report argues that e-government solutions have the potential to revolutionize service delivery across the African continent. E-government services refers to the process of providing technology-enabled public services. With Africa’s population projected to reach 2.5 billion people by 2050, nearly one-quarter of the world’s population, countries like Egypt, Ethiopia, Nigeria, Kenya, and the Democratic Republic of Congo will need to strengthen their government and infrastructure to manage the administration of critical services. As the middle class continues to expand, so will the demand for access to everyday services such as healthcare, renewing a driver’s license, and filing tax returns. This report highlights the potential for growth in African markets through e-governance and the importance having strong policies and frameworks in place to secure data. Additionally, the report offers case studies on Estonia, Canada, and India, three countries that have made tremendous commitment to bridging the gap between citizens and government through digital service delivery. With key recommendations for institutions ranging from African governments and regional bodies to DFIs and private sector companies, it is clear that each have an important role to play in the digitization of public services in Africa.
Topic:
Government, Markets, Economy, Business, and E-Government
Political Geography:
Africa

49. EU Autonomy, the Brussels Effect, and the Rise of Global Economic Protectionism

Author:
Matthias Bauer and Dyuti Pandya
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The Brussels Effect, once emblematic of the EU’s alleged influence in shaping global regulations, has now become a factor contributing to global regulatory fragmentation. The EU must recalibrate its trajectory towards a liberal and rules-based trading order, prioritising widespread regulatory liberalisation to counteract the risks of global protectionism and regulatory spirals. A holistic approach, both internally and globally, is crucial to prevent regulatory and subsidy spirals on a global scale. This recalibration is essential to keep global markets open and enhance the EU’s own economic and technological competitiveness. In response to the 2008 financial crises, the EU underwent a shift in its approach to global trade, transitioning towards Strategic Autonomy. However, this gradual move away from a liberal global trade order has led to increased regulatory burdens and regulatory fragmentation, impacting businesses within and beyond the EU. The Brussels Effect, as denoted in this paper, highlights the EU’s signalling effect on other governments in considering and implementing regulations. This effect has contributed to increased trade restrictiveness and regulatory fragmentation globally. The EU’s insistence on “autonomy” and “European values” not only empowers others to follow suit, contributing to the rise in global protectionism, but also contradicts the EU’s historical support for open trade principles and its commitment to a highly competitive social market economy. A wealth of EU regulatory data reveals a stagnation and, in many cases, a regression in regulatory cooperation within the Single Market. This is evident from rising trade restrictiveness and a tendency towards increased legal fragmentation instead of convergence across the EU. The evolving regulatory acquis of the EU, coupled with insufficient cooperation and stalled trade agreements, poses risks beyond its borders. The EU’s paradigm shift towards autonomy contributes to global regulatory spirals and protectionist measures, particularly evident in services trade. Despite the EU’s historical commitment to harmonisation and liberalisation, many sectors, such as transport and logistics, telecoms, and digital services, have witnessed the imposition of new laws and rules that hinder trade. With the EU’s share of global GDP expected to decrease to 9% by 2050, there is a critical need for EU governments to enhance its regulatory capabilities and foster innovation. To wield influence in global economic diplomacy, EU policymakers must prioritise policies that unleash the collective ingenuity of individuals and businesses that help to maintain high levels of productivity, competitiveness, and prosperity.
Topic:
Globalization, European Union, Economy, Autonomy, Protectionism, and WTO
Political Geography:
Europe

50. 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