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91. Potential of Blockchain Technology for Trade Integration of Developing Countries

Author:
Jakob Schwab and Jan Ohnesorge
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Blockchain technology (BT), famous due to its use in digital currencies, also offers new opportunities in other fields, one of which is trade integration. Developing countries especially could benefit from greater trade integration with BT, as the technology can, for example, remedy deficiencies with regard to financial system access, intellectual property protection and tax administration. BT allows virtually tamper-proof storage of transactions and other data on decentralised computer networks. In fact, it is possible to store not only data, but also entire programmes this securely: Smart contracts enable the automation of private transactions and administrative processes. This article summarises the latest research on the use of BT in trade integration by examining in more detail five key and, in some cases, linked fields of application. The first is trade finance, where BT could deliver direct cost savings for exporters and importers by removing the need for credit-lending intermediaries. Second, tamper-proof storage of information on the origin and composition of goods could enhance supply chain documentation. This makes it possible to more reliably verify compliance with sustainability standards, particularly for globally produced goods. However, for the information in blockchains to be truthful, it must be entered correctly (it is then tamperproof), a process that therefore requires monitoring. Third, BT could deliver improvements in the field of trade facilitation by making it easier for border authorities to access information on goods and thus easing reporting requirements for exporting firms. By reducing dependence on central database operators, BT could help bring about a breakthrough with existing digital technology in the area of trade. Fourth, facilitating access to information on goods could also simplify customs and taxation procedures and make them less vulnerable to corruption and fraud. This goes hand in hand with cost reductions for exporters and better mobilisation of domestic resources for public budgets. Fifth, in the field of digital trade, BT also facilitates management of digital file rights in environments where, for institutional reasons, there is little intellectual property protection. This could help to promote digital industries in developing countries. However, when it comes to using BT in border and customs systems in particular, it is essential to involve the relevant authorities at an early stage. At the same time, it is necessary to promote uniform technical standards for supply chain documentation in order to safeguard interoperability between the different systems across actors and national borders and thus fully leverage the cost advantages. If these guidelines are taken into account, then BT could effectively support sustainable trade integration of developing countries.
Topic:
Science and Technology, Currency, Trade, Integration, and Blockchain
Political Geography:
Germany and Global Focus

92. The Impact of Infrastructure on Economic Growth in Botswana

Author:
Mpho Raboloko
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study determines the impact of infrastructure on economic growth in Botswana. The study employs an Autoregressive Distributed Lag (ARDL) estimation technique to determine how infrastructure affects economic growth in Botswana. The empirical results show that healthcare infrastructure has a positive and significant impact on economic growth in Botswana in the long run. The results further reveal that electric power consumption has a positive and significant effect in influencing economic growth in the short run. The results imply that in order to achieve higher economic growth, policymakers should consider accelerating improvement of healthcare infrastructure.
Topic:
Infrastructure, Health Care Policy, Economic Growth, and Integration
Political Geography:
Africa and Botswana

93. Immigrant integration policy and practices in Poland

Author:
Dorota Domalewska and Marzena Zakowska
Publication Date:
09-2019
Content Type:
Journal Article
Journal:
Security and Defence Quarterly
Institution:
War Studies University
Abstract:
Globalization, open borders and population movements, especially from war torn countries, have brought a new set of chances and challenges to every modern state. Since its accession to the European Union in 2004, Poland has been experiencing a steady transformation from a country producing emigrants to a destination country for a growing number of immigrants. The aim of the article is to discuss the impact of immigration on policymaking at the national level with emphasis on the legal status of immigrants and integration policy issues. Furthermore, the paper aims to initiate scientific discussion on migration integration policy and a complex system of migration policy and management. The study uses critical analysis of secondary sources: literature and sectoral policies in areas such as the labour market, education, and welfare pointing out benefits offered to immigrants. The analysis presents immigration integration policies and practices adopted and implemented in Poland. The research leads to the conclusion that the number of immigrants in Poland will significantly increase by 2030. Therefore, it is urgent to develop comprehensive migration management system in Poland, which will regulate the status of immigrants paying close attention to resolving integration policy issues.
Topic:
Migration, Immigration, Governance, and Integration
Political Geography:
Europe and Poland

94. The Challenges of Reintegration

Author:
Oluwatoyin Oluwaniyi
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Social Science Research Council
Abstract:
The end of the Cold War shifted the focus from international wars between states to internal wars with immense consequences for unarmed civilians, such as occurred in the African countries of Angola, Burundi, Central Afri- can Republic (CAR), Democratic Republic of the Congo (DRC), Liberia, So- malia, and Sudan, to mention a few. The nature of these wars makes these countries susceptible to further wars. To avoid such conflict traps, peace- building measures such as disarmament, demobilization, and reintegration (DDR) have been introduced to pave the way for an easier transition from conflict to peace, by minimizing risks from ex-combatants as possible spoil- ers and, restoring hope and security to victims of conflict while developing their communities. Evidence from countries that have utilized DDR, such as Angola, DRC, So- malia, and Liberia, suggests that while disarmament and demobilization may be essential, reintegration remains the most critical component of post-conflict peace and security.3 Debate continues over the notion that while disarmament and demobilization entail short-term security opera- tions, they do not by themselves bring sustainable benefits; reintegration focuses on extensive long-term development efforts that are critical to avoiding the conflict trap and sustaining peace in the long run. Short-term security does not bring about sustainable benefits unless it is coordinated with long-term community development strategies. Reintegration address- es the economic and social transformation of both ex-combatants and the overall communities they are joining, yet the full implementation of this pro- cess is generally ignored in DDR programs in post-conflict countries. This paper focuses on the extent of implementation of the reintegration phase in the Niger Delta region’s post-conflict (usually called post-amnesty) period and its impact on peace, security, and development in the region. The Nigerian federal government embraced the post-amnesty DDR concept in June 2009 to set the pace for gradual resolution of the violence that had embroiled the region for almost a decade. During the execution of the disar- mament and demobilization phases, the Niger Delta region recorded initial progress in peace and security demonstrated by an increase in oil produc- tion from an estimated 700 barrels per day (bpd) to an estimated 2,500 bpd in early 2010. However, the implementation of the reintegration phase has raised several questions due to the region’s relapse into violence and crime. There is, therefore, a need to investigate the factors working against suc- cessful implementation of the reintegration process. A critical analysis of the process will enhance the understanding of schol- ars and policymakers alike on what constitutes sustainable reintegration and at the same time, how it may be achieved in post-conflict societies. The focus on reintegration is meant to facilitate a specific consideration of its importance as the point of intersection between short- and long-term peacebuilding processes.
Topic:
Security, Conflict, Peace, Integration, and Reintegration
Political Geography:
Africa and Nigeria

95. Europeanization In Sweden: Opportunities and Challenges for Civil Society Organizations

Author:
Anna Meeuwise and Roberto Scaramuzzino
Publication Date:
12-2018
Content Type:
Book
Institution:
Berghahn Books
Abstract:
Notwithstanding its many successes since 1945, the project of European integration currently faces major difficulties, from financial crises and mass immigration to the impending departure of the UK from the European Union. At the same time, these challenges have spurred civil society organizations within and across Europe, revealing a shared public sphere in which citizens can mobilize around refugee rights, opposition to austerity policies, and other issues. Europeanization in Sweden assembles new empirical research on how these processes have played out in one of the continent’s wealthiest nations, providing insights into whether, and how, the “Swedish model” can guide European integration.
Topic:
Civil Society, Regional Cooperation, Europeanization, and Integration
Political Geography:
Europe, Sweden, and Northern Europe

96. Exploring the Boundaries of Conditionality in the EU

Author:
Alexander Mattelaer
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Conditionality in the EU comes in many forms: legally codified and enforced by the Court of Justice, or reliant on intergovernmental bargaining and expressed by means of political or economic (dis)incentives. This European Policy Brief explores the boundaries of the conditionality debate, and assesses what varying degrees of conditionality can and cannot achieve. The overarching objective of conditionality is to foster integration and cohesion amongst the peoples of Europe and their Member States. A sound logic of conditionality must therefore set incentives in such a way that their application contributes to this intended outcome. A balanced combination of political, legal and budgetary instruments can help remedy a major lacuna in the Treaties: the effective protection of the rule of law and democracy.
Topic:
Regional Cooperation, European Union, Democracy, Legal Theory, and Integration
Political Geography:
Europe

97. Is the Belt and Road Initiative a Chinese-style Regionalism?

Author:
Tu Xinquan
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In the last two decades, bilateral and regional trade agreements (RTAs) have been considered a primary force to advance the world trading system because the Doha Development Agenda of the WTO has stagnated since its launch in 2001. The continuous expansion of the European Union and the American-led NAFTA and TPP as well as bilateral FTAs between the United States and EU and their partners best exemplified this phenomenon. However, such an approach is facing serious challenges from rising anti-globalization sentiment originating in the EU and United States in recent years. In June 2016, the United Kingdom decided to exit the EU as a result of a referendum. This is the first time a EU member chose to leave. On January 23, 2017, at the start of his presidency, Donald Trump signed as his first executive order the withdrawal from TPP, which his predecessor spent years concluding with 11 partners. These two consecutive dramatic actions of the previous and current world leaders shocked the globe. Next to the WTO, regionalism is seen as the second-best choice in promoting globalization. Now, two regional initiatives led by developed countries are facing a serious backlash. The world is concerned that this means the end and a reversal of globalization. Since its WTO accession in 2001, China has also been actively negotiating FTAs with its neighbors as well as some remote partners such as Iceland and New Zealand. While its WTO accession package was praised for its ambition and courage, it is difficult to defend Chinese FTAs as comparable to those of developed countries in terms of market access and institutional changes. One explanation for that is China has made very high-level multilateral commitments. Another one is China is not in such a comfortable strategic and economic position as the United States in negotiating FTAs with either developed or developing countries. The former want to obtain more market access concessions and institutional reforms from China, while the latter are afraid to expose their domestic industries to China’s overwhelming competitiveness in manufacturing. In addition, the Chinese government seems more confident in its own institutions and unwilling to change them due to outside pressure, especially after the 2008 global financial crisis. President Xi Jinping proposed the Belt and Road Initiative (BRI) during his state visits to Kazakhstan and Indonesia in September and October 2013, which soon was made a top national priority and even included in the Constitution of the Communist Party of China at the 19th Party Congress in 2017. Nadege Rolland labels this China’s Grand Strategy1 and the organizing foreign policy concept in the Xi Jinping era.2 One key feature of BRI in comparison with RTAs is that BRI focuses more on improving physical connectivity rather than reducing institutional barriers. The logic of physical connectivity is undoubtedly powerful, especially for developing countries with poor infrastructure. The impact of more and better international links on the regional landscape could be huge, not only by boosting trade and commerce but also by easing flows of energy and other resources, stimulating technological innovation, influencing culture and politics, and shaping strategic choices. Given the fact that RTAs are facing serious difficulties, the BRI looks like an attractive and feasible alternative to promote regional economic integration and globalization. However, there are also plenty of uncertainties and ambiguities surrounding the BRI, particularly due to China’s centrality as well as its direction of economic and strategic development. Hence, this chapter explores BRI characteristics in promoting regional economic integration and whether it could become an alternative approach to regionalism and globalization for China as well as the world.
Topic:
Treaties and Agreements, Belt and Road Initiative (BRI), Economic Policy, Trade, and Integration
Political Geography:
China and Asia

98. European Social Policy: Progressive Regression

Author:
Wolfgang Streeck
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
European social policy changed with the evolution of European and global capitalism, the scope and shape of European-level international institutions, the size and heterogeneity of “Europe” as a polity, and the politics of the European national welfare state. The paper outlines the long-term trajectory of European social policy, from the intended absorption of national welfare states into one united, federal welfare state to a selective updating of national social policies by European social policies; to multi-level coordination of national systems by special European institutions; to European soft law helping national “modern- ization” on the “Third Way”; to exposure of national systems to international economic competition as an incentive for “structural reform”; and to subordination of social policy, national and European, to the defense of a common hard currency through fiscal consoli- dation – from, in other words, federal social democracy to competitive “adjustment” of national social protection and social life to global markets.
Topic:
Reform, Capitalism, Political structure, Social Policy, Welfare, and Integration
Political Geography:
Europe

99. Insight on Syria: The Unseen Challenges of Refugee Integration in Germany

Author:
Hanaa Masalmeh
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Weatherhead Center Undergraduate Research Fellow Hanaa Masalmeh spent a semester in Germany studying Syrian refugee integration. Her work focuses on the formal and informal structures of integration, especially on the role of women—both German and Syrian—in the integration process. This article, written by Masalmeh, is based on her research on volunteer groups in Bavaria, Germany. Names have been changed to afford privacy to the interviewees.
Topic:
Migration, Refugees, Displacement, and Integration
Political Geography:
Europe, Middle East, Germany, and Syria

100. Financial Market Integration and Income Inequality

Author:
Jae Wook Jung and Kyunghun Kim
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Benefits of financial market integration include cheaper and alternative op-tions of saving and borrowing for households and entrepreneurs. In the global financial market, asset choices for households widen so that individu-als can manage their idiosyncratic income risk more effectively. On the other hand, financial market integration makes investors who hold foreign assets more vulnerable to global financial shocks. In the recent financial crisis, finan-cial market distress which initially arose in the U.S. had an enormous impact on the peripheral countries. This example shows that the strong shock prop-agation occurs via integrated financial markets. The existing literature shows that financial market integration has a sizable impact not only on business cycles in the short run, but also on economic growth in the long run. However, there has been little attention to income distribution, specifically in related to the financial market integration. In this paper, we fill the void in the literature by focusing on the following two styl-ized facts: income inequality has been exacerbated in most countries over the past two decades, and the financial market has been integrated across coun-tries during the same period. In particular, we answer three research questions to investigate the relationship between the two facts. First, how does financial market integration affect income inequality? Second, how do financial market integration and financial market development interact to change income ine-quality? Third, what components do theoretical model need to explain the interaction effect of financial market development and integration on income inequality? We test hypotheses that the effect of financial market openness on inequality is conditional on the level of domestic financial market development when the financial market opens. An empirical study with panel data comprised of 174 countries for the period 1995-2017 finds that the overall effect of finan-cial integration on income inequality is nonlinear. Financial market integration creates the intensive and extensive margins of credit supply which may de-pend on the development level of financial market disproportionally. This paper uncovers a novel empirical evidence that financial market integration and financial market development interact to change income inequality. When other things are controlled, the effect of financial market integration on in-come inequality depends on financial market development. In a country with underdeveloped financial market, income inequality gets worse as financial market opens. On the other hand, when financial market is highly developed, the effect of financial market openness on income inequality is mostly insig-nificant in a statistical sense. The results are still valid with different measures of financial market development, integration, and income inequality. We check that the results are robust as an endogeneity issue among financial market development and integration is controlled. We also suggest some important structures for the conventional economic model to account for our empirical finding as theoretical implications. Based on these implications, extensions of the conventional small open economy model with financial constraints having suggested components such as het-erogeneous holdings of foreign assets across income and asset levels and entrepreneurial shocks will be necessary to understand an interaction of fi-nancial market openness and domestic market development on the distribu-tion of income in a country. Our finding also echoes that studying an eco-nomic mechanism in which economic growth, financial market outcomes, and inequality are endogenously determined.
Topic:
Development, Income Inequality, Financial Markets, Economic Growth, and Integration
Political Geography:
Global Focus