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41. Exporting for Growth: Identifying Leading Sectors for Egypt and Tunisia Using the Product Space Methodology (التصدیر من أجل النمو: تحدید القطاعات الرائدة في مصر وتونس باستخدام منھجیة فضاء المنتجات)

Author:
Amirah El-Haddad
Publication Date:
01-2018
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
This discussion paper is available below in both Arabic (2019) and English (2018). The structural transformation of countries moves them towards more sophisticated, higher-value products. Network analysis, using the Product Space Methodology (PSM), guides countries towards leading export sectors. The identification process rests on two pillars: (1) available opportunities, that is, products in the product space that the country does not yet export which are more sophisticated than its current exports; and (2) the stock of a country’s accumulated productive knowledge and the technical capabilities that, through spillovers, enable it to produce slightly more sophisticated products. The PSM points to a tradeoff between capabilities and complexity. The methodology identifies very basic future products that match the two countries’ equally basic capabilities. Top products are simple animal products, cream and yogurt, modestly sophisticated plastics, metals and minerals such as salt and sulphur for Egypt; and slightly more sophisticated products such as containers and bobbins (plastics) and broom handles and wooden products for Tunisia, which is the more advanced of the two countries. A more interventionist approach steers the economy towards maximum sophistication, thus identifying highly complex manufactured metals, machinery, equipment, electronics and chemicals. Despite pushing for economic growth and diversification, these sectors push urban job creation and require high-skill workers, with the implication that low-skilled labour may be pushed into unemployment or into low-value informal jobs. A middle ground is a forward-looking strategy that takes sectors’ shares in world trade into account. This approach identifies medicaments in the chemicals sector; seats (e.g. car and aeroplane seats) in the “other highly manufactured” sector; inflated rubber tyres in the chemicals community (plastics and rubber); containers, bobbins and packages of plastics also in the plastics and rubber section; and articles of iron and steel in the metals sector for Egypt. The top product for Tunisia is furniture in the highly manufactured and special purpose goods community, followed by three products in plastics and rubber in the chemicals community, and finally three machinery sectors.
Topic:
Development, Economic growth, Exports, and Economic Development
Political Geography:
Middle East, North Africa, Egypt, and Tunisia

42. Scope and Structure of German Official Development Assistance: Trends and Implications for the BMZ and Other Ministries

Author:
Michael Bohnet, Stephan Klingebiel, and Paul Marschall
Publication Date:
07-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
The structure of German Official Development Assistance (ODA) is in a state of transition. Germany’s growing international role, the increasing importance of climate issues as well as the refugee crisis are contributing greatly to a significant increase in German ODA, which has more than doubled since 2012 and amounted to around EUR 22 billion in 2017. The coalition agreement between the CDU/CSU and the SPD in 2018 has prioritised ODA-eligible expenditures and views development policy as a priority area. Significant changes can also be seen with regard to the scope and pattern of ODA expenditures
Topic:
International Affairs
Political Geography:
Germany

43. Repositioning but Where – Is the UNDS Fit for Middle-Income Countries?

Author:
Nils-Sjard Schulz
Publication Date:
06-2018
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
After intense negotiations, the United Nations General Assembly has endorsed the reform of the United Nations Development System (UNDS). Most players in New York, including Secretary-General António Guterres and ambassadors to the United Nations, are optimistic that the UNDS will now take the multi-adjective route requested by the General Assembly (“more strategic, accountable, effective, transparent, collaborative, efficient, effective and result-oriented”).
Topic:
International Affairs
Political Geography:
Global Focus

44. Unfinished Business: An Appraisal of the Latest UNDS Reform Resolution

Author:
Max Otto Baumann and Silke Weinlich
Publication Date:
06-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
Can the United Nations Development System (UNDS) become a resourceful, well-organised partner for member states in implementing the 2030 Agenda? The UNDS is the biggest multilateral development actor, accounting for $18.4 billion, or 33 per cent, of multilateral aid in 2015. Its functions range from providing a forum for dialogue, decision-making and norm-setting, to research, advocacy, technical assistance and humanitarian aid. Numerous governments, including those of high-income countries, are counting on the UN’s assistance for advancing their development in a sustainable way. More than any other development organisation, the UNDS needs to adjust in order to fulfil these expectations. In May 2018, UN member states set the course for reforming the UNDS by agreeing on a draft resolution. The resolution contains five potentially transformative decisions that will bring the UNDS a step closer to being “fit for purpose”, the term under which the reform process was initiated more than three years ago. The global structures of the UNDS are to be strengthened, making the system more strategic and accountable; Resident Coordinators are to coordinate more effectively and objectively; their funding will be guaranteed by a new 1 per cent levy on tightly earmarked contributions; common business operations are to be advanced, with potential efficiency gains of $380 million per year; and the UN’s vast network of country offices is to be consolidated for more efficiency and effectiveness.
Topic:
International Affairs
Political Geography:
Global Focus

45. Data for Development: An Agenda for German Development Cooperation

Author:
Claudia Schwegmann and Sarah Holzapfel
Publication Date:
06-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
Data is a central but underestimated prerequisite for the realisation of the 2030 Agenda. Although technical innovations such as smartphones or the internet of things have led to a data explosion in recent years, there are still considerable gaps in the availability and use of data in developing countries and development cooperation (DC) in particular. So far it is not possible to report regularly on the majority of the 230 indicators of the Sustainable Development Goals (SDGs)
Topic:
International Affairs and International Development
Political Geography:
Global Focus

46. Access to Environmental Information: A Driver of Accountable Governance in Morocco and Tunisia?

Author:
Annabelle Houdret, Irene Pasqua, and Saâd Filali Meknassi
Publication Date:
06-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
In Tunisia, Morocco and other North African countries, en¬vironmental problems increasingly lead to political protest. Industrial pollution and a lack of clean drinking water adversely impact the living conditions and income op¬portunities of already marginalised groups and trigger unrest. Environmental governance in the region is often highly centralised, and takes no consideration of the needs of the citizens in the use of natural resources. In a political context that remains unstable following the 2011 uprisings, the double challenge of mounting environmental problems and related social unrest calls for new approaches. Reinforcing accountable environmental governance could help, not only by addressing environmental problems and needs, but by contributing to the overall transformation of societal relationships towards more democratic (i.e. transparent, accountable and participative) governance in the longer term.
Topic:
International Affairs
Political Geography:
North Africa

47. EU Engagement with Africa on Migration: A Change of Approach Required

Author:
Clare Castillejo
Publication Date:
05-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
Migration was an important issue at the November African Union (AU)-European Union (EU) summit. While the tone of discussion was somewhat improved on that of recent years, divisions between the two continents remain great. Europe and Africa still have fundamentally different positions in relation to migration, with the EU and many European member states prioritising prevention and return, while African governments focus more on remittances and legal migration opportunities. However, Europe’s current approach does not acknowledge these differing interests and instead seeks to impose its own agenda in ways that threaten to undermine important African ambitions. In recent years, the EU has launched initiatives aimed at curbing migration from Africa that have caused significant controversy, notably the EU Emergency Trust Fund for Africa (EUTF) and the Migration Partnership Framework (MPF). These initiatives suffer from a number of weaknesses. The EUTF is based on the flawed premise that development assistance can prevent migration. It diverts aid to migration goals, and its projects often do not comply with development principles such as transparency, ownership and alignment. Meanwhile, the MPF seeks to use positive and negative incentives across a range of external action areas to encourage partners to cooperate with the EU’s migration goals – primarily on prevention and return. So far, results have been limited and it has soured relations with some partner countries.
Topic:
International Affairs
Political Geography:
Europe

48. Do Trade Deals Encourage Environmental Cooperation?

Author:
Jean-Frédéric Morin, Vera Chaudhuri, and Mathilde Gauquelin
Publication Date:
06-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
Trade agreements have mixed effects on the environment. On the one hand, trade generates additional pollution by raising production levels. Trade rules can also restrict the capacity of governments to adopt environmental regulations. On the other hand, trade agreements can favour the diffusion of green technologies, make production more efficient and foster environmental cooperation. Whether the overall effect is positive or negative partly depends on the content of the trade agreement itself. Recent studies have found that trade agreements with detailed environmental provisions, in contrast to agreements without such provisions, are associated with reduced levels of CO2 emission and suspended particulate matter (Baghdadi et al., 2013; Zhou, 2017). It remains unclear, however, which specific provisions have a positive environmental impact and how they are actually implemented.
Topic:
International Affairs
Political Geography:
Global Focus

49. From Damage Control to Sustainable Development: European Development Policy under the Next EU Budget

Author:
Svea Koch, Niels Keijzer, Christine Hackenesch, and Julian Bergmann
Publication Date:
06-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
The EU is one of the leading global players in international development, trade, peace and security. Therefore, a key part of the EU’s Multiannual Financial Framework (MFF) is the one reserved for action beyond EU’s borders. This budget heading is called ‘Global Europe’ (also referred to as Heading IV). Under the current budget for the period of 2014 to 2020, including the inter-governmental European Development Fund (EDF), over 90 billion euros are available for the EU’s external action. The lion’s share of this is reserved for development cooperation. In previous years, the EU has dealt with new challenges in external action mostly by creating specific initiatives and new financial instruments. At the start of the negotiations on the next MFF, Heading IV thus appears to be rather complex and fragmented compared to other headings.
Topic:
International Affairs and International Development
Political Geography:
Global Focus

50. A European Peace Facility Could Make a Pragmatic Contribution to Peacebuilding around the World

Author:
Mark Furness and Julian Bergmann
Publication Date:
06-2018
Content Type:
Policy Brief
Institution:
German Development Institute (DIE)
Abstract:
The question of how the EU should finance peacebuilding in developing countries has challenged policy-makers and pundits for many years. At one level this is a technical and legal issue of budget lines and financing rules. It nevertheless touches on the much deeper political and even moral issues of whether the EU should use development aid to finance security provision, how best the EU can respond to the legitimate needs of partners in conflict-affected countries and what kind of civil and/or military engagements the EU can support as part of its external relations. The question has come to resemble the proverbial can being kicked along the road by successive European Commissioners, Council working groups and parliamentary committees. It has come to a head again because intra-EU negotiations for the next Multiannual Financial Framework for 2021-2027 are starting in earnest. This time, a sensible proposal is on the table which can potentially provide a pragmatic and workable solution, at least for a while.
Topic:
International Security and International Affairs
Political Geography:
Europe