According to the United Nations, over the past twenty years disasters from natural hazards have affected 4.4 billion people, claimed 1.3 million lives and caused $2 trillion in economic losses. For the first time, disaster losses globally have topped $100bn for three consecutive years (2010-2012), far outstripping humanitarian aid. According to Ban Ki Moon, 'Economic losses from disasters are out of control.
Topic:
Climate Change, Development, Economics, Humanitarian Aid, Natural Disasters, and Infrastructure
In 1753 John Wesley, the founder of Methodism said, "So wickedly, devilishly false is that common objection, 'They are poor, only because they are idle'". Yet today many churchgoers and members of the general public alike have come to believe that the key factors driving poverty in the UK are the personal failings of the poor – especially 'idleness'. How did this come about?
Topic:
Security, Economics, Poverty, Social Stratification, and Sociology
Business researchers, executives and regulators may assume that state ownership in firms raises risk for private co-investors. After all, private investors are seeking profits while states are seeking welfare. Giving them both equity only confuses the aims of an investment project, complicates the job of investment project managers and raises the overall risk of investment project failure. But these assumptions do not fit the evidence as demonstrated by a well-known risk indicator observable in hundreds of investment projects located in dozens o f countries: in countries where initial investment terms are more vulnerable to renegotiation by host country governments, we found that "minority rules" apply w hereby a non-controlling, but still substantial equity investment by a host country government can play a risk-mitigating role.
Topic:
Markets, Treaties and Agreements, Foreign Direct Investment, Governance, and Reform
Investment treaty arbitration has unfolded rapidly in recent years. Some observations arising from analyses of arbitrator awards are high lighted below. They support broad conclusions that: arbitrators reviewed a wide range of legislative, executive and judicial decisions but typically did not exercise judicial restraint in various ways associated with domestic and international courts; arbitrators typically adopted expansive approaches to their authority and to investor entitlements to compensation, especially where the claimant had the nationality of a major Western capital-exporting state; and decision-making power was highly concentrated amongarbitrators, suggesting a need for closer scrutiny of how the most active individual arbitrators have expanded the meaning of investment treaties and corresponding principles of state liability.
Topic:
Economics, International Trade and Finance, Markets, Treaties and Agreements, Foreign Direct Investment, Law Enforcement, and Law
Proponents tend to argue that bilateral investment treaties (BITs) encourage investment and strengthen the rule of law particularly in jurisdictions where court systems are weak or biased against foreigners. This premise is contested. First, studies on BITs and FDI suggest the relationship is, at best, ambiguous and that BITs are neither necessary nor sufficient to attract FDI. Indeed, South Africa receives FDI from investors in countries with whom it has no BIT and often little or no FDI from others where a BIT was in place.
Topic:
Security, Economics, Emerging Markets, International Trade and Finance, and Treaties and Agreements
A number of influential international organizations recently have issued publications that discuss the promotion of sustainable development in international investment. These organizations include the United Nations; UNCTAD; FAO, IFAD, the UNCTAD Secretariat, and the World Bank Group; the Commonwealth Secretariat; the Organisation for Economic Co-operation and Development (OECD); the International Chamber of Commerce (ICC); and the South African Development Community (SADC).
Topic:
Development, Economics, Emerging Markets, International Organization, Foreign Aid, and Governance
Energy investments and infrastructure contracts remain prominent in China's Africa engagement. However, investment in manufacturing makes up a significant proportion of Chinese outward foreign direct investment (FDI). Its characteristics–large numbers of smaller transactions by privately owned small and medium-sized firms–make these flows difficult to assess or control. However, China and African governments have an interest in effectively channeling this type of FDI.
Topic:
Development, Economics, Industrial Policy, International Trade and Finance, Markets, and Foreign Direct Investment
Since China adopted its "going out" policy in 2001, her outward foreign direct investment (OFDI) flows have grown rapidly, reaching US$84 billion in 2012 (although the stock remains small). That year, China was the world's third largest outward investor (after the US and Japan). This performance raises all sorts of issues, especially because state-owned enterprises (SOEs) control some three-quarters of the country's OFDI stock. Three challenges are addressed in this Perspective.
Topic:
Development, Economics, Emerging Markets, and Foreign Direct Investment
Climate change poses the greatest challenge for countries, acting as a threat multiplier with potential to affect security and stability in regional and global merit. Climate negotiations have long been seen as an effective tool for countries facing climate change, because it enables them to negotiate according to their respective responsibilities and capabilities. Working on these assumptions, the developed and developing countries' evolution under the climate change threats have resulted in a wide spectrum of national strategies, and binding and voluntary commitments, which many times not only insufficiently address climate change but more importantly do appear ineffective when it comes to the climate reality. The fifth assessment report of the respected scientific body the Intergovernmental Panel for Climate Change has given a last warning to the assessment of countries' approaches towards the issue. Also, it has appeared to be a challenge for cooperation between countries in regional merit. So what are the challenges and opportunities that countries face in the wake of climate change?
Topic:
Climate Change, Energy Policy, Industrial Policy, and International Cooperation
Harri Mikkola, Jukka Anteroinen, and Ville Lauttamäki
Publication Date:
02-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The European defence industrial base is transforming. The changes in the European defence market legislation, the decrease in defence materiel demand and changing defence requirements are redefining the industry in a way that has not been seen in decades. The new European legislation in particular poses serious challenges for the Finnish defence industry, including the national market opening and the diminishing possibility for offset arrangements. It is likely that the major European states are trying to protect their own defence industrial base. The future of the Finnish defence industry will be determined by whether the European market opens up in the first place, in part or in its entirety. There is no going back to the time preceding the new legislation. It is crucial for the Finnish defence industry to find and utilize new market opportunities. Networking with the European system integrators and sub-contracting chains will be of paramount importance.
Topic:
Defense Policy, Arms Control and Proliferation, Economics, and Industrial Policy