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701. Economic impact of illicit tobacco in Australia

Author:
Oxford Economics
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Oxford Economics
Abstract:
This report commissioned by British American Tobacco Australia, examines the size of the illicit market as well as the economic effects of that market on the national economy. Gains to illicit traders and the potential impact of issues such as money laundering are also discussed. In total, we estimate around $4.9 billion in revenue was lost by the legal economy to the illicit economy by the illicit tobacco trade in 2019. Of the $4.9 billion lost to the legal economy in 2019, we estimate some $2.1 billion flowed to illicit operators.
Topic:
Agriculture, Economics, Tobacco, and Illegal Trade
Political Geography:
Australia

702. A decomposition method to evaluate the ‘paradox of progress’ with evidence for Argentina

Author:
Javier Alejo, Leonardo Gasparini, Gabriel Montes-Rojas, and Walter Sosa-Escudero
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
The ‘paradox of progress’ is an empirical regularity that associates more education with larger income inequality. Two driving and competing factors behind this phenomenon are the convexity of the ‘Mincer equation’ (that links wages and education) and the heterogeneity in its returns, as captured by quantile regressions. We propose a joint least-squares and quantile regression statistical framework to derive a decomposition in order to evaluate the relative contribution of each explanation. The estimators are based on the ‘functional derivative’ approach. We apply the proposed decomposition strategy to the case of Argentina 1992 to 2015.
Topic:
Economics, Education, Inequality, Quantile Regression, and Paradox of Progress
Political Geography:
Argentina and South America

703. The Organizational Roots of Market Design Failure: Structural Abstraction, the Limits of Hierarchy, and the California Energy Crisis of 2000/01.

Author:
Georg Rilinger
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Economic sociologists have rarely studied organizational reasons why market design pro- cesses fail. Drawing on the organizational literature on mistakes and accidents, the paper identifies such reasons for a fatal design decision during the creation of California’s first electricity markets. Designers proposed weak oversight structures even though their mod- els called for active and permanent regulatory control. Sellers like Enron could therefore manipulate the market without fear of detection, prolonging the western energy crisis. A process of “structural abstraction” explains this mistake. Designers were split into three groups that worked in different divisions and relied on local frames to understand the over- sight requirements. Each group missed information the others were aware of and arrived at the conclusion that minimal oversight would suffice. Higher levels of the hierarchy should have discovered and resolved these discrepancies. However, these levels considered the is- sue at a higher level of abstraction. Such structural abstraction made room for ambiguities that obscured the local disagreements.
Topic:
Climate Change, Economics, Energy Policy, Electricity, and Energy Crisis
Political Geography:
California, North America, and United States of America

704. The European Union at a Crossroads: Unlocking Renewable Hydrogen’s Potential

Author:
Nicola De Blasio and Alejandro Nuñez-Jimenez
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
European countries are at a crossroads on their path to carbon neutrality. Today, they are at the forefront of the global clean hydrogen race but going forward they would be better served by collaborating instead of working alone. Overall, the European Union (EU) is highly competitive in clean technologies manufacturing and thus well-positioned to benefit from the emergence of global hydrogen markets. But a narrow focus on short-term cost considerations could drive member states to implement national roadmaps with little or no coordination among themselves and hence little or no chance of competing globally. As a bloc, the EU has pledged to reach carbon neutrality by 2050. Clean hydrogen is a cornerstone of this transformational effort; accordingly, in July 2020, the EU adopted its hydrogen strategy with the ambition of deploying open and competitive clean hydrogen markets for all energy sectors and segments by 2050.1 Success hinges around implementing a cohesive long-term strategy to address a fundamental ques- tion and its associated challenges: where could the EU source competitive and secure renewable hydrogen supplies? As our previous research shows, all countries have access to renewable resources (such as solar or wind), to different degrees, and could produce some renewable hydrogen locally. However, while resource-rich countries, such as Spain, could evolve into regional exporters, no EU member state has the potential to become a global export champion. At the same time, North African countries, such as Morocco, are well-situated to act as key suppliers to the EU. Furthermore, imports from resource-rich regions like North America could help to address security of supply concerns.2 Today, EU hydrogen demand stands at 7.8 million tons per year (Mt/yr), equivalent to about 10% of global demand. Germany and the Netherlands are the largest consumers, accounting for over a third of EU demand, followed by Poland, Spain, Italy, Belgium, and France, which consume about 0.5 Mt/yr each.3 According to available projections, as hydrogen use grows across all economic sectors, EU hydrogen demand could reach 76 Mt/yr by 2050. But while the EU strategy sets clear targets on electrolyzer deployment by 2030, it provides very few details on how the bloc could meet demand—and at what cost—by 2050.
Topic:
Economics, Environment, Science and Technology, Natural Resources, European Union, Innovation, Hydrogen, and Energy
Political Geography:
Europe

705. Power to the People? Scrutinizing the U.S.-Arab Effort to Supply Energy to Lebanon via Syria

Author:
Katherine Bauer, Ben Fishman, Hanin Ghaddar, Simon Henderson, David Schenker, and Andrew J. Tabler
Publication Date:
12-2021
Content Type:
Special Report
Institution:
The Washington Institute for Near East Policy
Abstract:
Residents of the beleaguered country desperately need electricity, but a U.S.-Arab scheme carries complications that could benefit Syria's Assad regime. The Lebanese people have endured painful reductions in electricity over the last two years, and now the lights are on for just hours a day. To address this dire situation—and counter a Hezbollah initiative to import Iranian energy products to Lebanon—the United States and its Arab partners are pursuing a complex two-part scheme, with the first involving excess Jordanian electricity and the second, although not yet public, relying on natural gas originating in Egypt and Israel. But both components would involve energy transiting Syria and potentially benefiting the Assad regime, which is under heavy U.S. and international sanctions for its wartime abuses. In this timely Policy Note—richly illustrated with maps—former U.S. State Department senior advisor and NSC director Andrew J. Tabler and his Washington Institute coauthors disentangle the current U.S.-Arab proposal, including how it might interact with the anti-Assad sanctions regime. They also offer alternative avenues that avoid Syria altogether, such as using offshore LNG platforms and delivering to Lebanon sustainable energy systems, from solar panels to geothermal technology.
Topic:
Foreign Policy, Economics, Reform, Democracy, and Energy
Political Geography:
Middle East, Israel, Lebanon, Syria, Egypt, Jordan, and United States of America

706. The National FDI Observatories, a Bulwark Against the Imbalance Effects of Chinese FDI In Africa?

Author:
Joel Moudio and Steve Tametong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Sino-African relations are structured around three axes: trade, Chinese financing in Africa and foreign direct investment (FDI). The latter is the key element in the multinationalisation of companies. Between 2003 and 2018, Chinese FDI in Africa dropped from USD 75 million to USD 2.7 billion1 ; this is in contrast to the period 2004-2008 when Africa attracted about 10% of Chinese direct investment (Sanfilippo, 2010), with a peak in 2008 of about USD 5.5 billion “due to the purchase of 20% of the shares of the Standard Bank of South Africa by the Industrial and Commercial Bank of China (ICBC)”.2. These include: cross-border mergers and acquisitions, intra-group loans and borrowing, and the creation of subsidiaries abroad. While Chinese FDI in Africa is growing exponentially and is a development boon for African countries (1), it is also partly a “danger” for African economies. The case of Cameroon will illustrate this (2). In this context, the establishment of a National FDI Observatory (NFOID) under the joint action of civil society becomes a necessity in order to compensate for the State’s inadequacies in terms of monitoring and surveillance of the perverse effects of FDI (3).
Topic:
Civil Society, Economics, Hegemony, and Foreign Interference
Political Geography:
Africa and Cameroon

707. The Resurgence of Covid19 and its Impact on the Economies of CEMAC Countries

Author:
Cyriaque Junior Medjo Mekok
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
For more than a year, the world has been facing a phenomenon that has literally redefined habits within communities. This phenomenon is the global Corona virus pandemic, identified in December 2019 in China, in the city of Wuhan. Declared a pandemic by the World Health Organisation (WHO), it has multiplied cases of contamination and death throughout the world. As no country is self-sufficient, the Corona virus pandemic has forced all nations to adopt measures to protect their populations and territories. Since mid-January 2021, the WHO has authorised the release of Covid19 vaccines in the world in general and in Africa in particular. Astra Zeneca, Moderna, Pfizer/BioNTech, Johnson & Johnson and others are now being used to combat the disease. Even if their effectiveness is established at 66% in general against 85% for the severe forms, their ineffectiveness against the more contagious South African variant represents a disadvantage for their marketing in Africa. In order to better understand our subject, we will take stock of the resurgence of this crisis in the economies of the CEMAC countries (I), state its harmful effects on their economies (II) and provide prospects and solutions for economic recovery (III).
Topic:
Economics, Regional Cooperation, Pandemic, COVID-19, Health Crisis, and CEMAC (Central African Economic and Monetary Community)
Political Geography:
Africa, Chad, Cameroon, Central African Republic, Equatorial Guinea, Gabon, and Republic of Congo

708. Urban Governance in Cameroon: Between Laissez-Faire And Faire-Laisser

Author:
Joseph MagloirenOlinga Olinga
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
From a geohistorical point of view, Cameroonian cities are characterised by what B. TAMRU (2001) describes as a “process of vulnerability“. This concept is in line with the phenomenological approach, which studies the impact of human actions on risk and its aggravation, based on the study of damage (P. PIGEON, 1994). However, urban dynamics are still poorly taken into account in the diagnosis of environmental risks. In this case, the flood risk is rarely studied in all its spatio-temporal depth: “The risk of flooding is thus most often analysed at a time “t”, according to a given hazard, on channels considered as stable”. From this point of view, starting from a diachronic analysis, the geohistorical context of Cameroon cities, particularly urban centres such as Douala (economic capital) and Yaoundé (political capital), constitutes an important key to reading the current urbanistic, social, economic and environmental challenges. Based on recent news, in particular the images of the Yaoundé VII Town Hall flooded after the downpour of 8 June 2021, this paper analyses the vulnerabilities of Cameroon cities through the prism of two variables: firstly, the socio-spatial processes that produce them and, secondly, the mechanisms that determine the capacity of cities to adapt to environmental risks. It brings to the fore the thorny issue of urban governance lato sensu. The case of the Commune of Yaoundé VII is symptomatic of urban governance in Cameroon and raises the question of whether municipal executives are definitively caught in the dilemma of “laissez-faire” and “faire laisser”.
Topic:
Economics, Environment, Governance, and Urban
Political Geography:
Africa and Cameroon

709. Diaspora Investors and Access to Bank Credit in Cameroon: Constraints and Opportunities

Author:
Ballo Ngomna and Joel Moudio
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
According to the Doing Business 2020 report, “compared to the previous year, sub-Saharan African economies improved their average score by 0.9 points” on the Doing Business index, which ranks countries on the ease of doing business. Overall, Cameroon’s index value (46.1) does not give it an honourable ranking (167th out of 190). However, its ranking is better in terms of obtaining loans (80th out of 190), one of the ten components used to calculate the index.
Topic:
Economics, Finance, Credit, and Banking
Political Geography:
Africa and Cameroon

710. Perspectives on the Formalization of the Informal Economy in Cameroon

Author:
Joel Moudio Motto
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Informal sector practices are the third most frequently cited barriers – after corruption and administrative bureaucracy – for formal enterprises in sub-Saharan Africa (Moyo & Sibindi, 2020). To address this, many programs are being implemented to crack down on and penalize non-compliance. Policies are also being implemented for reducing registration costs and imposing taxes on informal activities and formalization campaigns (De Mel et al., 2014). The issues raised by these measures are fiscal and compliance issues. From this point of view, the non-participation of the informal economy in tax revenues limits the action of the State, hence the need to formalize, by organizing informal channels into associations or interest groups, despite the tax and standardization challenges.
Topic:
Economics, Governance, Tax Systems, and Informal Economy
Political Geography:
Africa and Cameroon