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41. You Get What You Pay For: Sources and Consequences of the Public Sector Premium in Albania and Sri Lanka

Author:
Ricardo Hausmann, Ljubica Nedelkoska, and Sehar Noor
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We study the factors behind the public sector premium in Albania and Sri Lanka, the group heterogeneity in the premium, the sources of public sector wage compression, and the impact of this compression on the way individuals self-select between the public and the private sector. Similar to other countries, the public sectors in Albania and Sri Lanka pay higher wages than the private sector, for all but the most valued employees. While half of the premium of Sri Lanka and two-thirds of it in Albania are explained by differences in the occupation-education-experience mix between the sectors, and the level of private sector informality, the unexplained part of the premium is significant enough to affect the preferences of working in the public sector for different groups. We show that the compressed distributions of public sector wages and benefits create incentives for positive sorting into the public sector among most employees, and negative sorting among the most productive ones.
Topic:
Employment, Human Capital, Public Sector, and Private Sector
Political Geography:
South Asia, Sri Lanka, and Albania

42. From Industrial Citizenship to Private Ordering? Contract, Status, and the Question of Consent.

Author:
Ruth Dukes and Wolfgang Streeck
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper revisits the notions of contract and status found in classical sociology, legal theory, and labour law. Adopting an historical perspective, it explores the fragmentation of the status of industrial citizenship during the neoliberal period and discusses the enduring usefulness of the status/contract distinction in analyzing current trends in the regulation of working relations, including the spread of “gig” or platform-mediated work. Elements of status, it is argued, must always be present if work is to be performed and paid for as the parties require it. Claims to the contrary – for example, that the gig economy creates a labour market without search frictions and only minimal transaction costs: contracts without status – assume an undersocialized model of (monadic) social action that has no basis in the reality of social life (Durkheim, Weber). Still, status may come in a variety of forms that are more or less desirable from the perspective of workers, businesses, and society at large. The paper traces what it conceives as the privatization of status via contracts between employers and workers under the pressure of marketization and dominated by corporate hierarchies. Towards the end of the twentieth century, sociologists observed the division of workers into two groups or classes – core (with relatively well-paid and secure employment) and peripheral (low-paid and insecure). Thirty years later, gross inequalities of wealth and conceptions of the neoliberal self as ever-improving, ever-perfectible, are combining to create novel forms of status not fully anticipated by the literature.
Topic:
Democracy, Inequality, Citizenship, Private Sector, and Industry
Political Geography:
Global Focus

43. A space exploration industry for India

Author:
Chaitanya Giri
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Gateway House: Indian Council on Global Relations
Abstract:
On 16 May, the government introduced a huge reform that liberalised India's space sector, leveling the field and propelling the space ambitions of private players. Corporations such as L&T and Godrej Aerospace, can now compete and collaborate with the Indian Space Research Organisation, to build an indigenous Boeing or Lockheed Martin, and be part of global, private, space industry syndicates. The timing is significant, as the space race has accelerated with the U.S. and China marking their space territories through Accords and SEZs. India now is much better equipped to launch its space agenda. This paper analyses India's future potential.
Topic:
Space, Private Sector, and Industry
Political Geography:
China, South Asia, India, Asia, North America, and United States of America

44. When Russia Goes to War: Motives, Means and Indicators

Author:
Konrad Muzyka
Publication Date:
01-2020
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Since Vladimir Putin declared the fall of the Soviet Union to be the greatest geopolitical catastrophe of the century, prompting concerns that Moscow would seek to rebuild its influence by conquering territories on its borders, Russia has deployed combat troops into Georgia, Ukraine and Syria, and inserted private military companies into the Central African Republic, Libya, Mozambique, South Sudan and Venezuela. But there is little consensus among analysts about the meaning of Russia’s military behaviour, or how far it might go in pursuing its interests. Is it trying to rebuild a version of the former Soviet Union? Does it have the will and capability to go to war? Under what circumstances might it be ready to commit combat troops? And how do these questions relate to its immediate neighbourhood, in particular to the Baltic region? This analysis examines Russia’s fundamental motives for going to war in the ‘near abroad’, describes how Russia might wage war in the Baltic states, and identifies some of the indicators that might suggest it is preparing to do so.
Topic:
War, Military Affairs, Geopolitics, and Private Sector
Political Geography:
Russia, Ukraine, Georgia, Syria, and Baltic States

45. The Role of Russian Private Military Contractors in Africa

Author:
Anna Borshchevskaya
Publication Date:
08-2020
Content Type:
Commentary and Analysis
Institution:
Foreign Policy Research Institute (FPRI)
Abstract:
It is no secret that Moscow is increasingly utilizing so-called “private military contractors” (PMCs) to pursue foreign policy objectives across the globe, especially in the Middle East and Africa. What has received less attention is that Moscow’s deployment of PMCs follows a pattern: The Kremlin is exploiting a loophole in international law by securing agreements that allow contractors to provide local assistance. The problem is, however, Russian PMCs are not simply contractors. This pattern of Russian behavior presents a new challenge that Western policymakers should address, as it speaks to broader Russian influence in Africa in the context of great power competition. This challenge is about Moscow’s erosion of broader behavioral norms.
Topic:
International Law, Military Affairs, and Private Sector
Political Geography:
Africa, Russia, and Eurasia

46. Unlocking the Potential of Private Financing for Low-carbon Energy Transition: Ideas and Solutions from ASEAN Markets

Author:
Venkatachalam Anbumozhi
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Under the Paris Agreement in 2015, the opportunities for the ASEAN Member States (AMS) to maximise low-carbon energy sources to achieve the Nationally Determined Contributions (NDC) target in reducing carbon emission levels have expanded. In order to move towards a low-carbon energy transition, private sector actors must work together with governments to implement strategies to invest in the low-carbon economy. However, major barriers such as insufficient enabling policy environment, availability of technologies and access to funding somehow impede the implementation. It is believed that unlocking the potentials of private sector would accelerate the transition of low-carbon energy. This paper, based on a market survey, which aimed to identify barriers and risks that private sectors face in accelerating the low-carbon investments. The survey respondents are divided into two categories, Lenders and Borrowers. Analysing 110 total respondents helped to identify the perceived and actual barriers as well as risks underlying to the access to financing and generated potential solution for policymakers to overcome these barriers. The survey results indicate that the main obstacles faced by private sectors are incoherent policies that created a high-risk environment for investment, a lack of access to de-risking mechanisms, and insufficient capacity to communicate the opportunities amongst financial institutions and project developers. To bare these risks, this paper suggests four interdependent solutions – establishment of a low-carbon transition fund, government warranty programme, broadening of de-risking mechanisms, and capacity building programme to accelerate the low-carbon energy transition across ASEAN.
Topic:
Energy Policy, Finance, Renewable Energy, and Private Sector
Political Geography:
Asia and Southeast Asia

47. Institutional design and spatial (in)equality: the Janus face of economic integration

Author:
Ingrid Ott and Susanne Soretz
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper analyzes within a spatial endogenous growth setting the impact of public policy coordination on agglomeration. Governments in each of the two symmetric regions provide a local public input that becomes globally effective due to integration. Micro-foundation of governmental behavior is based on three different coordination schemes: autarky, full or partial coordination. Scale effects act as agglomeration force and in addition to private capital agglomeration increase the concentration of the public input. Integration promotes dispersion forces with respect to the distribution of physical capital which are based on decreasing private returns. However, within the governments’ decision on the concentration of the public input, increasing integration reinforces agglomeration because it promotes the interregional productive use of the public input. Taking feedback effects between the private and the public sector into account leads to mutual reinforcement, hence agglomeration forces almost always dominate and the spreading equilibrium becomes unstable. If convergence is a separate (additional) political objective, it needs sustained additional political effort.
Topic:
Government, International Political Economy, Economic Growth, Public Policy, Private Sector, and Capital
Political Geography:
Global Focus

48. Private Credit under Political Influence: Evidence from France

Author:
Anne-Laure Delatte, Adrien Matray, and Noémie Pinardon-Touati
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
Formally independent private banks change their supply of credit to the corporate sector for the constituencies of contested political incumbents in order to improve their reelection prospects. In return, politicians grant such banks access to the profitable market for loans to local public entities among their constituencies. We examine French credit registry data for 2007--2017 and find that credit granted to the private sector increases by 9%--14% in the year during which a powerful incumbent faces a contested election. In line with politicians returning the favor, banks that grant more credit to private firms in election years gain market share in the local public entity debt market after the election is held. Thus we establish that, if politicians can control the allocation of rents, then formal independence does not ensure the private sector's effective independence from politically motivated distortions.
Topic:
Economics, International Political Economy, Private Sector, Credit, and Banking
Political Geography:
France

49. Planning For Faecal Sludge Management in Small Towns – Experiences From Angul And Dhenkanal

Author:
Anju Dwivedi, Shikha Shukla Chhabra, and Shubhagato Dasgupta
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
The overall vision of Project Nirmal is the demonstration of appropriate, low-cost, decentralized, inclusive and sustainable sanitation service delivery solutions for two small towns (Angul and Dhenkanal) in Odisha leading to improved sanitation access for all households and integration of FSM in the sanitation value chain, through enabling institutional and financial arrangements and increased private sector participation. The project is being implemented by Practical Action and Centre for Policy Research with support from Bill and Melinda Gates Foundation; Arghyam; Housing and Urban Development, Government of Odisha; and Municipalities of Angul and Dhenkanal.
Topic:
Sanitation, Decentralization, and Private Sector
Political Geography:
South Asia and India

50. Strengthening Institutional Arrangements and Capacities For Implementing FSM Initiatives

Author:
Anju Dwivedi, Shikha Shukla Chhabra, and Shubhagato Dasgupta
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
The overall vision of Project Nirmal is the demonstration of appropriate, low-cost, decentralized, inclusive and sustainable sanitation service delivery solutions for two small towns (Angul and Dhenkanal) in Odisha leading to improved sanitation access for all households and integration of FSM in the sanitation value chain, through enabling institutional and financial arrangements and increased private sector participation. The project is being implemented by Practical Action and Centre for Policy Research with support from Bill and Melinda Gates Foundation; Arghyam; Housing and Urban Development, Government of Odisha; and Municipalities of Angul and Dhenkanal.
Topic:
Sanitation and Private Sector
Political Geography:
South Asia and India