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831. Financial Inclusion and its Impact on Employment Creation in Botswana

Author:
Koketso Molefhi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines the impact of financial inclusion on employment creation in Botswana using quarterly time series data for the period 2004-2016. Using Autoregressive Distributed Lag (ARDL) model, we find that availability of bank branches, ownership of bank account and borrowing from the commercial bank have a positive impact on employment creation in the short run. Similarly, in the long run, availability of bank branches, ownership of bank account has a positive relationship with employment creation in the long run. Depositors with commercial banks has a negative bearing on employment creation, both in the short run and in the long run. Therefore, policies should be aimed at ensuring easy access into the financial sector by way of reducing costs associated with account opening as well as creating affordable deposit and borrowing windows to the financially excluded groups.
Topic:
Economics, Labor Issues, Employment, Finance, Financial Markets, and Macroeconomics
Political Geography:
Africa and Botswana

832. India, The United States, Australia and the Difficult Birth of Bangladesh

Author:
Ric Smith
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Australian Institute of International Affairs
Abstract:
Ric Smith has masterfully woven archival material, memories of his own time as a foreign service officer, and conversations with other officers of the then Department of Foreign Affairs to recount the crisis in East Pakistan in 1971 and the difficult birth of Bangladesh. Smith highlights the Cold War incongruities of the crisis, including the Soviet Union’s support for democratic India’s position during the crisis, while the United States supported the military regime in Pakistan. The episode also stands as an example of Canberra diverging from Washington on an issue that was garnering political and media attention in Australia. Australia was able to pursue a policy toward the region that was independent from the United States, accepting early that East Pakistan was “finished” and that there was a need to address an unfolding humanitarian crisis. Smith’s book imparts important lessons about diplomacy for Australia: It is not only possible for Australia’s politicians and diplomats to take independent positions on major international problems, but they are sometimes respected by their allies when they do so.
Topic:
Cold War, Human Rights, Democracy, Geopolitics, and Military Intervention
Political Geography:
Pakistan, United States, Europe, India, Asia, Soviet Union, and Australia

833. Horror or Hype: The Challenge of Chemical, Biological, Radiological, and Nuclear Terrorism

Author:
Lasha Giorgidze and James K. Wither
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
George C. Marshall European Center for Security Studies
Abstract:
Chemical, biological, radiological and nuclear (CBRN) materials attract the attention of terrorists motivated to inflict mass casualties and create mass panic. CBRN includes a wide array of materials, some of them very difficult to acquire, although others are of a dual-use nature. Dualuse materials can be used to construct CBRN weapons, but also have licit civilian applications. Though not all CBRN weapons are weapons of mass destruction, they can still cause massive disruption and fear in a targeted society. The goal of this paper is to evaluate the potential threat from terrorists’ use of CBRN weapons. It discusses the technical opportunities and constraints of each type of weapon and presents relevant historical and contemporary examples and case studies involving terrorist use of CBRN. The paper also assesses the contemporary threat. It examines how CBRN-related information is shared via terrorist propaganda on the internet and messaging applications, why terrorists might be motivated to use CBRN materials, and the constraints on their ambitions.
Topic:
Nuclear Weapons, Terrorism, Internet, Biological Weapons, Chemical Weapons, and Radiological Weapons
Political Geography:
Global Focus

834. The Union for the Mediterranean Ten Years After Its Foundation - How to Overcome the Frustrated Ambitions

Author:
Inès Abdel Razek and Claudia Del Prado Sartorius
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Fundación Alternativas
Abstract:
It is a busy diplomatic period among the Heads of State and Ministers of Foreign Affairs of the European Union and the Mediterranean countries. On the 24 and 25 February 2019, the EU and the League of Arab States (LAS) are set to hold their very first Euro-Arab Summit at the level of heads of state. The two regional blocks are meant to focus on “stability” and “migration”, going back to prioritising the security and stability agenda over the promotion of democracy and human rights. The aim is also to forge a new European-African Alliance, where Arab countries must play a necessary bridging role. This goal already questions whether the centre of gravity of EU-Arab cooperation is moving away from the Mediterranean to Africa. A few months back, the Conference of Mediterranean Ministers of Foreign Affairs – that includes all EU countries and 10 Arab countries – marking the tenth anniversary of the Union for the Mediterranean (UfM), was held on the 8th of October 2018. However, it passed almost unnoticed on mainstream media. The event could be considered as an achievement in itself given that it gathered the 43 UfM countries, with their divergent and sometimes antagonistic geopolitical agendas – including Israel, Turkey, alongside the European and Arab countries – and allowed to reaffirm a rhetorical commitment to this regional partnership that focuses more on the socioeconomic issues. The Conference did not manage to produce a formal conclusive document, but just a mere declaration signed by the co-presidents1 . The UfM Conference was followed more recently by the Meeting of Foreign Affairs Ministers of the 5+5 dialogue (Western Mediterranean Forum2 ) on 18 and 19 January 2019, where parties adopted a declaration focused on reinforcing western Mediterranean ties focusing on “sustainable development, youth, migration and mobility”3 . The more “Mediterranean” format of this dialogue only composed of riparian states in the western part of the Mediterranean is attractive to its member countries as more manageable than the UfM, composed of 43 countries, including countries that are remote from the Mediterranean itself. 1 https://ufmsecretariat.org/wp-content/uploads/2018/10/Conclusions-of-the-Co-Presidency.pdf 2 Malta, Italy, France, Spain and Portugal, Libya, Tunisia, Algeria, Morocco, and Mauritania, 3 http://www.independent.com.mt/articles/2019-01-18/local-news/5-5-Western-MediterraneanDialogue-Foreign-Ministers-meeting-held-in-Malta-6736202278 Memorandum Opex Nº 239/2019. The Union for the Mediterranean (UfM) ten years after its foundation - How to overcome the frustrated ambitions 2 In that regard, France is pushing for its initiative of the “Summit of the two shores”, announced by President Macron, that will take place on the 24th of June 2019 in Marseille. It aims to revive the 5+5 Dialogue format, with 10 of the 43 countries of the UfM, while making it more inclusive and less government-driven, including civil society and all actors of the “voices of the Euro-Mediterranean dialogue”. It proposes a new “Mediterranean policy”, hinting on the existing failures of the UfM formula4 . In this paper, the authors zoom in the UfM, today considered, within the Mediterranean countries political and diplomatic circles, as a positive forum for formal political dialogue among its 43 member-states. However, throughout the past ten years, none have passed without analysts or politicians asking for revitalisation and necessary changes in the partnership, which lacks depth and vision. If you address the 43 capitals of the UfM, you are likely to find at least 20 different interpretations of the value and meaning of this somehow forgotten partnership. The EU, on a discursive level, presents the UfM as a model for regional integration complementing its Neighbourhood policy. Southern Mediterranean countries, on their end, continue to maintain low profiles, showing their moderate interest in an organisation which has failed to become a partnership based on equal footing – one country, one vote- that would increase regional economic integration with the EU. Critical security and geopolitical issues are put on the discussion table outside the UfM’s realm, through the League of Arab States or 5+5 Dialogue. The partnership’s lack of coherence and articulation with the other forums and partnerships (Neighbourhood Policy, 5+5, EU-Arab League) contributes to its weakening. At a time when multilateralism is vilified all around the world, when the EU is internally divided and marked by the rise of nationalist populist forces and securitydriven agendas; at a time when the Arab world, all the more divided, stands far from the short-lived optimism brought by the Arab Springs, is the Mediterranean agenda going to be central to its member states’ international cooperation? Will the UfM hold a central place in the Mediterranean agenda and more broadly EU-Arab relations, or just be one of many actors? Despite all its shortfalls, the authors believe in the added value of the UfM forum to advance people-centred socioeconomic models. We argue for reinforcing its 4 Foreign Policy Speech at the « conférence des Ambassadeurs » http://www.elysee.fr/declarations/article/discoursdu-president-de-la-republique-a-la-conference-des-ambassadeurs/ Memorandum Opex Nº 239/2019. The Union for the Mediterranean (UfM) ten years after its foundation - How to overcome the frustrated ambitions 3 existing institutions in order for all Mediterranean countries to advance a progressive socio-economic agenda, whether in the North or the South.
Topic:
Diplomacy, Migration, Regional Cooperation, European Union, and Political stability
Political Geography:
Europe, Mediterranean, and Southern Europe

835. US Trends that matter for Europe

Author:
Fundación Alternativas
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Fundación Alternativas
Abstract:
Our starting point was the observation that the international order, but also the political, social and economic order on a domestic level in the West are undergoing profound changes, some of which stem from the new social, political and economic situation in the United States. The world’s major power has become the epicentre of numerous transformations that have accelerated with the arrival of Donald Trump in the White House. The consolidation of a populist political narrative and the implementation of a series of highly disruptive policies in the international system are unequivocal signs of profound transformations rooted in changes that have been under way for years. At the Fundación Alternativas’s Observatory of Foreign Policy (OPEX) we set out to coordinate a Working Group commissioned with the task of analysing those transformations and trends in the United States, primarily from a European standpoint. Our goal was to explore the new social, political, technological, economic and cultural trends that are going to shape thought and debate in Europe and the rest of the world on numerous and very diverse topics – from the new geopolitics to social breakdown; from globalisation and the technological shift to transatlantic relations; the crisis of the traditional political parties; robotization and digitalisation; migration flows, climate change and renewable energies; fake news and new media. Lastly, we tried to begin reflection with regard to Spanish and European political and social agents, drawing a prospective map of important changes that all of these trends are causing on both sides of the Atlantic. The project included several work sessions at the Fundación Alternativas offices over the course of 2018. They were built around a short presentation, followed by a lively exchange of ideas. Numerous experts linked to the Fundación Alternativas, practitioners and guests from other prestigious Spanish and international institutions took part in the Working Group. To have them with us and Vicente Palacio US Trends That Matter For Europe January 2019 5 be able to broadcast the sessions live to a wide audience, we also made use of Skype and social media. The result, then, is a starting point rather than an end point: an initial cognitive map that will have to be continued and extended in the future. We have chosen to put into print and disseminate this material electronically thanks to the collaboration of the School of International Relations at the Instituto de Empresa (IE) and its Transatlantic Relations Initiative (TRI) led by Manuel Muñiz, Dean of IE School of Global and Public Affairs, to be more precise. Special thanks go to him and to Waya Quiviger, Executive Director of the TRI, for their collaboration in the completion of this project that we present jointly at the IE headquarters in Madrid.
Topic:
Diplomacy, International Cooperation, Europe Union, and Transatlantic Relations
Political Geography:
United States, Europe, and Atlantic Ocean

836. Populism and Social Cohesion in Latin America: Two Sides of the same coin

Author:
Anuschka Álvarez von Gustedt and Susanne Gratius
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Fundación Alternativas
Abstract:
Are populism and social cohesion two sides of the same coin, or antagonistic concepts? In deeply divided Latin American societies, populism and discourses from the left have repeatedly promised inclusion and welfare programs under a strong leader who gives voice to the poor and marginalized. At first glance, however, results are ambiguous. The recent wave of left-wing populism in Latin America --from Hugo Chávez in 1999 to Andrés Manuel López Obrador in 2019 - show a mixed record of social inclusion or –in a term we will use here - social cohesion. Bolivia under Evo Morales (2006-2019), for example, improved all social indicators compared to former governments, while the severe political and humanitarian crisis in Venezuela illustrates how populism and its welfare policies may lead to potentially disastrous consequences. The paper is organized as follows: In the first section, we provide a short overview of current political and academic debates on populism and social cohesion, as well as their relationship. The objective here is to identify a minimal definition of both concepts. In the second part, we develop a series of indicators to compare the social record of five Latin American case-studies where leftist leaders with state-centric discourses promised justice and welfare for the poor. From this comparative perspective, the third part of the document explores the causes that led to the rise of leftist populism between 1999 and 2018 in Argentina, Bolivia, Ecuador, Mexico and Venezuela, as well as the social discourse and track record of populist governments. This analysis is based on indicators developed from the broad literature on social cohesion.
Topic:
Socialism/Marxism, Populism, and Humanitarian Intervention
Political Geography:
Argentina, Latin America, Venezuela, Mexico, Ecuador, and Bolivia

837. Fiscal Transfers and Inflation: Evidence from India

Author:
Girish Bahal and Anand Shrivastava
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Controlling for monetary policy, government transfers are potentially inflationary. This, however, may not be true when the economy is demandconstrained. Using a panel data of 17 Indian states over 30 years, we show that government transfers via welfare programs do not lead to inflation. For identification, we use a narrative shock series of transfer spending that is based on the introduction of new welfare programs. We then look at a specific program, NREGA, which has been shown to increase rural wages, and show that its implementation did not increase inflation.
Topic:
Economics, Government, Labor Issues, Monetary Policy, Employment, Inflation, and Demand
Political Geography:
India

838. The Size Structure of India’s Enterprises: Not Just the Middle is Missing

Author:
Tuhinsubhra Giri and Santosh Mehrotra
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Most international development economics and industrial organization literature emphasises the importance of SMEs (small and medium enterprises) as important to output, but especially to employment generation. Countries have different definitions for SMEs. In India the MSMEs (micro, small and medium enterprises) are defined in terms of investment in plant and machinery or equipment. The MSME Ministry (Annual Report, Government of India 2017–18) stated that the sector accounts for 45% of the manufacturing output and 40% of the total exports of the country; also that MSMEs accounted for 30.74% of GDP in 2014– 15. Not surprising, MSMEs are considered a driving force of the economy.
Topic:
Economics, Labor Issues, Employment, Manufacturing, and Economic Development
Political Geography:
India

839. Industrial Policies in India: Did They Work?

Author:
Raavi Aggarwal
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
This article analyses relationships between the implementation of state-level industrial policies in India and manufacturing sector economic performance (employment and gross value added), utilising data from the Annual Survey of Industries conducted by the Government of India. I employ panel data fixed-effects regression models to evaluate the associations between the industrial policy and state-industry specific performance over the 2007-08 to 2014-15 period, incorporating potential effects of the state government's political alignment, infrastructure provision and educational expenditure in the state. The results provide evidence of a positive correlation between industrial policy implementation and firm output and employment, by around 12.6 - 14 per cent. However, subsequent introductions of an industrial policy are negatively associated with employment and are uncorrelated with industrial GVA. This analysis has implications for economic policy in light of the Central Government's plans to implement a revised industrial policy at the national scale.
Topic:
Economics, Industrial Policy, Employment, and Manufacturing
Political Geography:
India

840. India’s Employment Crisis: Rising Education Levels and Falling Non-agricultural Job Growth

Author:
Jajati Parida and Santosh Mehrotra
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Falling total employment is an unprecedented trend seen from 2011-12 to 2017-18. Due to a decline of employment in agriculture and manufacturing and slow growth of construction jobs, the process of structural transformation, which had gained momentum post-2004-5, has stalled since 2012. Mounting educated youth unemployment, and lack of quality non-farm jobs have resulted in an increase of the disheartened labour force. Though the share of regular and formal employment increased marginally due to growth of formal jobs in the private sectors, the share of informal jobs within government/public sector increased. A dominant share of jobs is still generated by micro and small units of the unorganized sectors without any formal or written job contract. In both government and private sectors the number of contract jobs (with less than a year’s contract) is on the rise post 2011-12. Not surprisingly, real wages have not increased in either rural or urban areas.
Topic:
Economics, Education, Labor Issues, Employment, Economic growth, and Job Creation
Political Geography:
India