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1071. Spillover Effects of Exchange Rates: A Study of the Renminbi

Author:
Arvind Subramanian, Aaditya Mattoo, and Prachi Mishra
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper estimates the impact of China's exchange rate changes on exports of competitor countries in third markets, known as the "spillover effect." Recent theory is used to develop an identification strategy in which competition between China and its developing country competitors in specific products and destinations plays a key role. The variation is used—afforded by disaggregated trade data—across exporters, importers, product, and time to estimate this spillover effect. The results show robust evidence of a statistically and quantitatively significant spillover effect. Estimates suggest that, on average, a 10 percent appreciation of China's real exchange rate boosts a developing country's exports of a typical 4-digit Harmonized System (HS) product category to third markets by about 1.5 to 2 percent. The magnitude of the spillover effect varies systematically with product characteristics as implied by theory.
Topic:
Development, Economics, and Markets
Political Geography:
China

1072. The Private Sector and Humanitarian Relief

Publication Date:
03-2012
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Oxfam believes that the increasing involvement of the private sector in humanitarian relief can add to overall humanitarian capacity . The private sector brings skills and competencies, and is likely to also bring new practices and perspectives to the humanitarian aid community. Any private sector involvement in humanitarian relief must conform with the humanitarian principles embodied in the Red Cross/Crescent and NGO Code of Conduct, including impartial aid based on assessed need, accountability to beneficiaries as well as donors, reduction of future vulnerability as well as immediate relief, and coordination. Oxfam recommends that humanitarian agencies pursue long-term partnerships with private sector entities, so that the private sector's engagement in humanitarian work is strategic, and not just reactive. Partnerships can be bilateral or through consortia, via a variety of modalities. Oxfam has adopted processes for its own engagement with the private sector that it recommends to other humanitarian NGOs. These include screening potential private sector partners to address ethical concerns, potential conflicts with Oxfam's mission and humanitarian principles, and conflicts of interest for the company. Pilot projects can test the working relationship and suitability/appropriateness of contributions before projects are scaled up. These principles apply to private sector humanitarian engagement, including response to natural disasters, conflicts, and complex emergencies, as well as in post-disaster recovery and reconstruction.
Topic:
Development, Human Rights, Human Welfare, Humanitarian Aid, Markets, and Foreign Aid

1073. U.S.-China Parallel Development Assistance Goals

Author:
Xiaoqing Lu Boynton and Conor M. Savoy
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
As China's economy expanded in recent decades, there has been a corresponding rise in the amount of foreign assistance it offers to the developing world. In particular, China increased aid to countries in Africa, Latin America, and Southeast Asia. Some of China's methods and objectives are controversial with the international aid community. Critics accuse China of frequently following a “mercantilist” strategy in using aid and loans in order to secure natural resources such as oil and raw materials. One commentator went so far as to describe Chinese aid as “rogue aid,” because it is driven by self-interest and not what is best for the developing world.1In remarks widely interpreted as aimed at China, Secretary of State Hillary Clinton recently warned countries to be “wary of donors who are more interested in extracting your resources than in building your capacity.”2Added to these feelings, China treats the methodology of its aid as a competitive asset and has sought to distance itself from international efforts at creating a cooperative framework for foreign assistance. In spite of this, since the second term of the Bush administration, the United States has sought to engage with China on international development. This includes high-level meetings be-tween the heads of China's foreign aid bureaucracy and the U.S. Agency for International Development (USAID), as well as on-the-ground attempts to find common ground on development.
Topic:
Development, Natural Resources, and Foreign Aid
Political Geography:
United States, China, Israel, and Southeast Asia

1074. Private-Sector Engagement in Food Security and Agricultural Development

Author:
Johanna Nesseth Tuttle
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
With the introduction of Feed the Future (FTF)—the U.S. government's program to refocus foreign assistance on agricultural development—the private sector has been named a priority partner. President Barack Obama made a bold statement in his 2009 inaugural address, pledging that the United States would work with countries to support and promote food security. Private companies are enthusiastic about engaging in development efforts, and FTF may provide that avenue. The food and agriculture sector has significant capabilities, and market opportunities in developing countries are large and growing. Many companies have engaged in discussions with FTF leadership, and a number of partnerships have been launched. These are important efforts, and more are under way. The fact remains, however, that funding for agricultural development is relatively small—a three-year, $3.5 billion budget, compared to a six-year, $63 billion budget for health—and the investments needed in agriculture are massive: it would take $88.7 billion to meet U.S. global agricultural development goals.
Topic:
Agriculture, Development, Emerging Markets, Foreign Aid, Food, and Foreign Direct Investment
Political Geography:
United States

1075. China and Afghanistan: China's Interests, Stances, and Perspectives

Author:
Huasheng Zhao
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
China holds clear, coherent, but relatively low-profile positions on Afghanistan. While staying largely with the mainstream of the international community on the issue of Afghanistan, China maintains an independent policy that reflects the peculiarities of Chinese interests, concerns, and priorities in Afghanistan. China has multiple interests in Afghanistan; however, domestic concerns about the security and stability of the largely Muslim region of Xinjiang overwhelm all others. China maintains normal and good relations with the Afghan government, takes active part in the country's economic rebuilding, and provides Afghanistan financial aid and other assistance. China supports the international community in its efforts in Afghanistan, but stays away from direct military involvement. China refrains from criticizing America's involvement in the war in Afghan- istan, but it doubts the war's efficacy, and China refuses to join the American Northern Distribu- tion Network (NDN) to Afghanistan. China dislikes the Taliban because of its close relations with the “East Turkistan” organization—a Uyghur separatist group—but China deals with the Taliban cautiously, trying to avoid direct conflict. China favors an Afghanistan governed by Afghans and hopes that the “Kabul process”—the transition to greater Afghan responsibility and ownership in both security and civilian areas—will have a successful end. At the same time, China also prepares for unexpected outcomes.
Topic:
Development and Economics
Political Geography:
Afghanistan, United States, China, and Asia

1076. The Big Caucasus: Between Fragmentation and Integration

Author:
Jeffrey Mankoff
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Situated astride one of the world's key strategic crossroads, the “Big Caucasus” is increasingly a region in flux. The August 2008 war among Georgia, Russia, and the separatist regions of South Ossetia and Abkhazia emphasized the fragility of the territorial status quo that took hold in the years immediately following the collapse of the USSR, but which has failed to establish legitimacy among either local populations or the international community. The 2008 war solidified the de facto separation between the Georgian state and its breakaway provinces and put Georgia's NATO accession on indefinite hold—but did not resolve the underlying problems of sovereignty and security that led to the conflict. Similar problems abound across the Big Caucasus. An increasingly authoritarian Azeri government has staked much of its legitimacy on regaining Nagorno-Karabakh. While talks between Baku and Yerevan have made little progress, an arms buildup in the region continues, raising fears of renewed conflict. Meanwhile, Russia's North Caucasus smolders. A nationalist insurgency that began in Chechnya in the early 1990s has spread to neighboring regions and taken on a harder jihadist edge, raising concerns about a possible al Qaeda presence and creating a direct threat to Western interests.
Topic:
Development, Political Economy, and Sovereignty
Political Geography:
Russia, United States, Iran, Turkey, and Moscow

1077. Iraq and the Kurds: The High-Stakes Hydrocarbons Gambit

Publication Date:
04-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
A simmering conflict over territories and resources in north-ern Iraq is slowly coming to a boil. In early April 2012, the Kurdistan regional government (KRG) suspended its supply of oil for export through the national Iraqi pipeline, claiming Baghdad had not fully repaid operating costs to producing companies. The federal government responded by threatening to deduct what the oil would have generated in sales from the KRG's annual budget allocation, poten-tially halving it. This latest flare-up in perennially tense Erbil-Baghdad relations has highlighted the troubling fact that not only have the two sides failed to resolve their dif-ferences but also that, by striking out on unilateral courses, they have deepened them to the point that a solution appears more remote than ever. It is late already, but the best way forward is a deal between Baghdad and Erbil, centred on a federal hydrocarbons law and a compromise on dis-puted territories. International actors – the UN with its tech-nical expertise, the U.S. given its unique responsibility as well as strategic interest in keeping things on an even keel – should launch a new initiative to bring the two back to the table.
Topic:
Conflict Resolution, Development, Ethnic Conflict, Oil, and Natural Resources
Political Geography:
Iraq, Middle East, and Arabia

1078. Dams, power and security in the Mekong: A non-traditional security assessment of hydro-development in the Mekong River Basin

Author:
Christopher G. Baker
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies (NTS)
Abstract:
The rapid hydropower development in the Mekong River Basin brings with it a growing number of security challenges for state and regional policymakers. While the interrelated challenges range from local, human security issues, to regional-level concerns, all stem from the externalities brought about by hydro-development. This paper analyses the ramifications of the current 'hydropower gold-rush' on and around the Mekong. By specifically examining the non-traditional security concerns of food and water security and how these threaten to drive human insecurity, migration and instability within the region, it is able to challenge the dominant development and economic mindset that continues to encourage development at the cost of livelihoods. Instead of an economic hydro-boom as anticipated by many, continued dam building on the Mekong and its tributaries could result in a non-traditional security disaster characterised by severe food shortages, destruction of livelihoods and large irregular movements of people.
Topic:
Security, Development, Economics, and Natural Resources
Political Geography:
Asia

1079. Lost in Transition: The World according to Egypt's SCAF

Publication Date:
04-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Since it assumed power after Hosni Mubarak's ouster, the performance of the Supreme Council of the Armed Forces (SCAF) has been, at times, head-scratching. Extolled in the wake of the uprising as the revolution's protector, many have come to view it as an agent of the counter-revolution. It often has been obstinate, before abruptly yielding to pressure. It values its long ties with Washington, from which it receives much assistance, but seemed willing to jeopardise them by targeting U.S.-funded NGOs. Suspected by Islamists of seeking to deprive them of opportunity to govern and by non-Islamists of entering a secret pact with the Muslim Brotherhood, it finds itself in the worst of both worlds: an angry tug-of-war with liberal protesters and a high-wire contest with Islamists. It displays little interest in governing, wishing instead to protect privileges, but erratic behaviour threatens even that. On the eve of presidential elections that have become a high-stakes free-for-all, the SCAF should take a step back and, with the full range of political actors, agree on principles for a genuine and safe political transition.
Topic:
Democratization, Development, Islam, and Regime Change
Political Geography:
United States, Middle East, and Arabia

1080. Myanmar: White elephant or new tiger economy?

Publication Date:
04-2012
Content Type:
Working Paper
Abstract:
The new government in Myanmar has made a series of liberalising gestures over the past year, raising hopes that it is serious about meaningful political reform. Coming after national elections in November 2010, the release from house-arrest of the pro-democracy icon, Aung San Suu Kyi, and by-elections in 2012, many observers are concluding that Myanmar is finally embarking on a process of genuine democratisation. Aung San Suu Kyi is among those who have expressed optimism over future changes in the country, with her confidence bolstered by the release of hundreds of political prisoners in recent months. As ties with Western governments slowly thaw, there is now a high probability that sanctions and other restrictions on trade and investment will be lifted over the next year or so, and foreign investors are taking note of the opportunities that could soon present themselves.
Topic:
Democratization, Development, Economics, International Trade and Finance, and Treaties and Agreements
Political Geography:
Asia