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441. Financing the Economic Stabilization and Growth Programme (Zambia Plus) in the Shadow of the IMF

Author:
Caesar Cheelo
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Hudson Institute
Abstract:
In February 2018, the IMF reaffirmed its August 2017 formal withdrawal from negotiations with Zambia over a package of financial support. The strong position to hold negotiations came in the IMF’s Article IV Consultations report of 2017, which concluded that Zambia was at high risk of debt distress, and that whilst financial management and fiscal discipline were improving, the extent of the improvement was not sufficient to mitigate the growing public debt and fiscal deficit. Whilst the IMF deal may be off the table for the time being, the many of problems that drove Zambia to engage the IMF most assuredly remain unresolved. Two to three years after the economic minicrisis of 2015, Zambia continued to accrue sizable new debts, to utilize the proceeds poorly (to fund consumption spending) and to run persistent fiscal deficits – albeit a smaller and seemingly better managed deficit in 2017 compared to 2015 and 2016. These issues remain problematic despite the partial economic rebound, with high copper prices, good rains (leading to good harvests and more reliable power supply), and a stable Kwacha providing a strong platform for improvement. Nonetheless, fiscal performance is lagging behind and Zambia may be missing a window to reestablish prudent public financial management.
Topic:
Infrastructure, Governance, Reform, Macroeconomics, IMF, and Public Debt
Political Geography:
Africa and Zambia

442. ‘Fix it or Nix it’ is the Wrong Approach

Author:
Efraim Inbar
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
What needs “nixing” is not the JCPOA – a piece of paper – but the Iranian nuclear infrastructure.
Topic:
Arms Control and Proliferation, Diplomacy, International Cooperation, Nuclear Weapons, Infrastructure, Nuclear Power, Denuclearization, and JCPOA
Political Geography:
Europe, Iran, Middle East, Israel, North America, and United States of America

443. The Target: Infrastructure

Author:
Eran Lerman
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
If recruiting a disgraced former official with no access to updated information is the best Iran’s spymasters could do, Israel’s intelligence superiority is in no danger.
Topic:
Intelligence, Military Strategy, Infrastructure, and Conflict
Political Geography:
Iran, Middle East, and Israel

444. A Sense of Victory on Both Sides: A Recipe for Escalation in Gaza?

Author:
Amos Yadlin
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Institute for National Security Studies (INSS)
Abstract:
Following the "March of Return" events led by Hamas on two turbulent Fridays at the border fence between Israel and the Gaza Strip, both sides declared victory. And in the case of such a blatantly asymmetric conflict between parties with opposing aims, both sides can indeed claim victory, precisely because they are conducting parallel maneuvers. Israel operates largely on a physical dimension (protecting its sovereign territory), while Hamas works mainly on the cognitive-political level. In a world of images, intensive information campaigns, and mass media (including fake news), a sense of victory on both sides could intensify the hostilities on the Gaza border and perhaps even beyond in the coming weeks. Israel must stress that it is defending a recognized international border; clarify the legality and proportionality of its use of live fire; expand its visual documentation of the events; update Arab countries about the facts and balance the pro-Hamas messages delivered in the Arab media; and prepare for an escalation of the conflict. Finally, while focused on the immediate challenge of mass demonstrations on the Gaza border, Israel must continue to address the underlying issue: the growing distress in Gaza and the collapse of its infrastructures will make it hard for Israel to continue managing the situation with relatively low political, military, and financial costs. Mid-May will be followed by the month of Ramadan and another scorching summer. Temporary success in containing the new challenge posed by Hamas will not defuse the social-economic-military time bomb ticking in the Strip.
Topic:
Terrorism, Infrastructure, Conflict, and Hamas
Political Geography:
Middle East, Israel, Palestine, and Gaza

445. More than infrastructures: Policy Brief water challenges in Iraq

Author:
Tobias von Lossow
Publication Date:
07-2018
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
With the liberation of Mosul from so-called Islamic State (IS) in November 2017, Iraq entered – once again – a post-conflict period. In his Policy Brief Tobias von Lossow analyses how shrinking water quantities and acutely declining water quality pose tremendous challenges in the process of rebuilding the country: Dam building in Turkey and Iran has contributed to a remarkably reduced water inflow of the Euphrates and Tigris; Iraqi water installations had been in very poor condition before IS used water as a weapon and further damaged infrastructure; Tigris River’s waterflow upstream of Baghdad requires careful coordination between the Kurdistan Regional Government (KRG) and central government; extremely salinised water resources and environmental degradation in the Marshes risk the extinction of agricultural activities and livelihoods in that area. To address these challenges, technical measures will be important, and necessary – for instance, investment in water infrastructure. But that will not be nearly enough, as the water issue has the potential to accelerate re-emerging social divisions and political fragmentation and thus undermine Iraq’s stability and security. The political implications of water policies must be carefully taken into account in Iraq’s postconflict process and should complement technical efforts in this crucial sector. The basin-wide protection of the supply infrastructure could serve as a technical as well as a political entry point for water cooperation in the region.
Topic:
Natural Resources, Water, Infrastructure, and Conflict
Political Geography:
Iraq, Iran, Turkey, and Middle East

446. Increasing International Cooperation in Cybersecurity and Adapting Cyber Norms

Author:
Elena Chernenko, Oleg Demidov, and Fyodor Lukyanov
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
nformation and communications technology (ICT) presents one of the most critical modern challenges to global security. Threat assessments predict that the next major international crisis could be due to a state or terrorist group weaponizing ICTs to devastate critical infrastructure or military logistics networks. The proliferation of asymmetric warfare (i.e., conflicts between nations or groups that have disparate military capabilities) has increased states’ use of ICTs, which necessitates the development of an international code of cyber conduct. There is an urgent need for cooperation among states to mitigate threats such as cybercrime, cyberattacks on critical infrastructure, electronic espionage, bulk data interception, and offensive operations intended to project power by the application of force in and through cyberspace. Emerging cyber threats could precipitate massive economic and societal damage, and international efforts need to be recalibrated to account for this new reality. A common misperception is that the principal cybersecurity threats demanding urgent international collaboration are massive, state sponsored attacks that target critical infrastructure such as power plants or electrical grids, causing massive devastation and human casualties. In fact, cyber threats are more diverse and complex, often targeting private enterprises and endangering the technical integrity of the digital world. The near-total digitalization of business models makes the global economy more vulnerable to cyberattacks, not only from states but also from criminal organizations and other nonstate actors.
Topic:
Security, International Cooperation, Infrastructure, and Cybersecurity
Political Geography:
Global Focus

447. The Invisible Hand? Critical Information Infrastructures, Commercialisation and National Security

Author:
Riccardo Alcaro, Giampiero Giacomello, and Johan Eriksson
Publication Date:
05-2018
Content Type:
Journal Article
Journal:
The International Spectator
Institution:
Istituto Affari Internazionali
Abstract:
Corporatisation of critical information infrastructure (CII) is rooted in the ‘privatisation wave’ of the 1980s-90s, when the ground was laid for outsourcing public utilities. Despite well-known risks relating to reliability, resilience, and accountability, commitment to efficiency imperatives have driven governments to outsource key public services and infrastructures. A recent illustrative case with enormous implications is the 2017 Swedish ICT scandal, where outsourcing of CII caused major security breaches. With the transfer of the Swedish Transport Agency’s ICT system to IBM and subcontractors, classified data and protected identities were made accessible to non-vetted foreign private employees – sensitive data could thus now be in anyone’s hands. This case clearly demonstrates accountability gaps that can arise in public-private governance of CII.
Topic:
Privatization, Science and Technology, Infrastructure, Public Sector, and Private Sector
Political Geography:
Europe, Sweden, and European Union

448. Vietnam’s Low National Competitiveness: Causes, Implications and Suggestions for Improvement

Author:
LE Quoc Phuong
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The WEF’s annual assessment using the GCI index in 2006-2017 shows that Vietnam’s national competitiveness has been low. Globally, Vietnam has ranked in the middle of economies surveyed. Regionally, Vietnam has been in the middle of ASEAN countries. With regard to the level of development, before 2015 Vietnam was in stage 1 (factor-driven), together with Cambodia, Laos and Myanmar. Since 2015 Vietnam has shifted toward a transition to stage 2 (efficiency-driven), which also includes Brunei and the Philippines. The country, however, has lagged behind Indonesia and Thailand (in stage 2), Malaysia (in transition to stage 3) and Singapore (in stage 3, innovation-driven). To complement the WEF’s assessment, this study provides an in-depth anal-ysis of main causes of Vietnam’s low competitiveness from the country’s perspective. These are structural problems due to its factor-based growth model, expansionary policies to aid growth, slowly improved business envi-ronment, low R&D expenditure, poorly performing higher education and under-developed infrastructure. Further, the research examines implications of these shortcomings for Vi-etnam. These are low productivity, diminishing GDP growth, middle income trap, macroeconomic instability, low business competitiveness, low technolo-gy level, low human capital quality and environmental degradation. Based on the analysis of the shortcomings and their consequences, policy measures are proposed to improve Vietnam’s competitiveness. Major sugges-tions include structural reforms to change the growth model from factor-based to productivity-based, raising technology level and enhancing human capital quality, improving the business environment, ensuring macroeconomic stability, upgrading infrastructure and learning from advanced economies.
Topic:
Infrastructure, Economic Growth, and Economic Policy
Political Geography:
Vietnam and Southeast Asia

449. Securing China’s Belt and Road Initiative

Author:
Zi Yang
Publication Date:
11-2018
Content Type:
Special Report
Institution:
United States Institute of Peace
Abstract:
The November 23 attack on the Chinese consulate in Karachi, Pakistan, is the latest sign that anti-Chinese sentiment may be taking root in countries that have received massive inflows of investment from China’s Belt and Road Initiative. USIP’s new Special Report provides an overview of the different security arrangements China is using to protect its overseas investments and workers, and examines how the Belt and Road Initiative is spurring the rapid growth of China’s domestic private security industry.
Topic:
Security, Infrastructure, Belt and Road Initiative (BRI), and Peace
Political Geography:
Pakistan, China, South Asia, and Asia

450. Game of Institutional Balancing: China, the AIIB, and the Future of Global Governance

Author:
Kai He and Huiyun Feng
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The establishment of the Asian Infrastructure Investment Bank (AIIB) has signified a “charm offensive” by China towards multilateral institutions and existing global financial governance. If the rise of China is inevitable, what will the future world look like and what should other countries be prepared for? Borrowing insights from institutional balancing theory and role theory in foreign policy analysis, this project introduces a “leadership transition” framework to explain policy dynamics in global governance with the AIIB as a case study. It suggests that China, the US, and other countries have employed different types of institutional balancing strategies, i.e., inclusive institutional balancing, exclusive institutional balancing, and inter-institutional balancing to compete for influence and interest in the process of establishing the AIIB. A state’s role identity as a “leader,” a “challenger,” or a “follower” will shape its policy choices regarding different institutional balancing strategies in the process of leadership transition in global governance. Institutional balancing is a new form of balancing among states in the future of global governance. China’s institutional rise in global governance might be more peaceful than widely predicted.
Topic:
Regional Cooperation, Infrastructure, Governance, and Economic Cooperation
Political Geography:
United States, China, and Asia