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1. Tunisian Youth and Political Life: From Stagnation to Revival?

Author:
Zied Boussen and Mohammed Islam Mbarki
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
Tunisian youth are no different from their peers across the world when it comes to their indifference to public life. This apathy towards politics is not new; it goes back before 14 January Revolution. A 2008 national survey of youth showed that around 83% of Tunisian youth were not concerned with politics and 64% were not concerned with elections or joining civil society associations. Nonetheless, the Tunisian youth surprised observers and played an essential role in the revolution that led to the fall of Ben Ali. Immediately after, however, they returned to their position of indifference. The political tensions and episodes of instability that accompanied the democratic transition disappointed the youth greatly and led to apathy towards politics in all its forms. Successive elections were the most glaring example of this attitude: the youth abandoned the ballots and stopped taking initiatives of political work, either as candidates or as voters. The rise of Kais Saied as a presidential candidate seemed to have reignited the Tunisian youth’s interest in politics. They walked with him through all the stages of his elections. They led his most unusual campaign at the smallest cost; they confronted media attacks against him and provided him with alternative and new media platforms that improved his image. This support brought the youth and Kais Saied closer together. Saied also showed great understanding of the youth’s economic and social demands and gave them priority. He shared their anger at the political establishment, so they decided to stand by him to punish the establishment that they see as the source of their successive disappointments. The results of the presidential elections, in which one candidate won the bulk of the votes of the youth participating in the elections, generated many questions about the reasons for the youth’s support of Kais Saied, and the hopes that they hanged on him. What can we infer from this experience that can benefit the youth political participation generally? How does this experience help us understand the actual needs that push young people to participate in public life?
Topic:
Political Activism, Elections, Youth, and Participation
Political Geography:
Africa and Tunisia

2. Invisibility and Negrophobia in Algeria

Author:
Stephen J. King
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
After independence, Algeria’s ruling elites chose to suppress identity issues because they saw diversity as a source of division and a threat to their hold on power. The Hirak has challenged the official narrative and called for an overhaul of the established regime, but issues of Black Algerians and anti-black racism still remain absent from public debates. This paper discusses the absence of Black Algerians in on-going debates about democratization, national identity, and belonging in Algeria, and suggests ways in which to address this exclusion.
Topic:
Discrimination, Black Politics, Exclusion, Identity, and Racism
Political Geography:
Africa and Algeria

3. Exporting out of China or out of Africa? Automation versus Relocation in the Global Clothing Industry

Author:
Tilman Altenburg, Xiao Chen, Wilfried Lütkenhorst, Cornelia Staritz, and Lindsay Whitfield
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
The Discussion Paper examines the opportunities that the rising industrial wages in China will bring for Africa. China has been the industrial workbench of the global economy for decades. However, its competitive advantages are waning, particularly for labour-intensive assembly activities in the clothing, shoe, electronics and toy industries. The Chinese government estimates that up to 81 million low-cost industrial jobs are at risk of relocation to other countries - unless China can keep the companies in the country through automation. Against this background, three complementary studies were carried out. The first examines where the automation technology for clothing and footwear production stands today; the second, how clothing companies in China deal with the cost pressure: to what extent they automate, relocate within China or abroad and how great is the interest in Africa as a production location. The third part is devoted to Africa’s competitiveness in clothing assemly, with empirical findings from Ethiopia and Madagascar. The Discussion Paper shows that the manufacture of clothing can already be robotized today, but that for sewing, robotization will probably remain more expensive than manual labor in the next 15-20 years. China’s companies are investing heavily in the automation of all other production processes and at the same time shifting production to neighbouring Asian countries. In Africa, only Ethiopia is currently competitive in the manufacture of clothing, and here too there are significant institutional difficulties in absorbing large amounts of direct investment.
Topic:
Industrial Policy, Labor Issues, Foreign Direct Investment, Exports, and Automation
Political Geography:
Africa, Europe, Germany, Ethiopia, and Madagascar

4. African Jobs in the Digital Era: Export Options with a Focus on Online Labour

Author:
Elvis Melia
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
This study asks what impact the Fourth Industrial Revolution will have on job creation and catchup development in Sub-Saharan Africa over the coming decade. Can light manufacturing export sectors still serve African development the way they served East Asian development in the past? If factory floor automation reduces the need for low-cost labour in global value chains, can IT-enabled services exports become an alternative driver of African catch-up development? I present case study evidence from Kenya to show that online freelancing has become an interesting sector, both in terms of its growth trajectory, and in terms of worker upward mobility in the global knowledge economy. As life everywhere moves further into the digital realm, and global internet connectivity between Africa and the rest of the world grows, more and more young Africans who stream onto the labour market may find work in the world of global online freelancing. I discuss the building blocks needed to make online work a sustainable vehicle for African catch-up development in the years ahead.
Topic:
Development, Science and Technology, Labor Issues, Internet, Exports, Manufacturing, and Industry
Political Geography:
Kenya and Africa

5. Digitalisation and its Impact on SME Finance in Sub-Saharan Africa: Reviewing the Hype and Actual Developments

Author:
Sabrina Disse and Christoph Sommer
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
The vast majority of enterprises worldwide can be categorized as small and medium-sized enterprises (SMEs). They play a crucial role in providing a livelihood and income for diverse segments of the labour force, in creating new jobs, fostering valued added and economic growth. In addition, SMEs are associated with innovation, productivity enhancement as well as economic diversification and inclusiveness. However, almost half of the formal enterprises in low and middle-income countries (LMICs) are financially constrained, meaning that SMEs’ financing needs are unserved or underserved. Digitalisation is often seen as game changer that overcomes the challenges of SME finance by capitalising on the reduced transaction costs, the broader access to more and alternative data and the new customer experience shaped by convenience and simplicity. This paper aims to answer the question what the role of digital financial instruments in SME finance in Sub-Saharan Africa is. It reviews and discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity. It contrasts the hype around digital finance with actual market developments and trends in Africa. Main findings indicate that even though digital advances have led to impressive growth of certain digital finance instruments, it has not triggered a remake of the financial system. Digitalisation of the financial system is less disruptive than many expected, but does gradually change the financing landscapes. Some markets have added innovative and dynamic niches shaped by digital financial services, but new digital players have in general not replaced the incumbents. Furthermore, the contributions of digital instruments to finance in general and SME finance in particular are still very limited on the African continent compared to either the portfolio of outstanding SME finance by banks or the capital raised by similar innovative instruments elsewhere in the world. Many uncertainties remain, most importantly the response of regulators and responsible authorities. They need to provide a suitable legal framework to strike a balance between the innovation and growth aspiration of the digital finance industry and the integrity and stability of markets and the financial system at large. Also regulators have to safeguard data privacy and cybersecurity and prevent illicit financial flows, bad practices around excessive data collection, intransparency and poor reporting as well as exploitation of vulnerable groups with limited financial literacy. Governments also have to address the increasing gap towards those left behind by digital finance due to issues with ownership of a digital device, mobile network coverage and the internet connection or issues of basic digital and financial literacy.
Topic:
Development, Science and Technology, Digital Economy, Business, Economic growth, and Diversification
Political Geography:
Africa

6. The Trade Effects of the Economic Partnership Agreements between the European Union and the African, Caribbean and Pacific Group of States: Early Empirical Insights from Panel Data

Author:
Frederik Stender, Axel Berger, Clara Brandi, and Jakob Schwab
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
This study provides early ex-post empirical evidence on the effects of provisionally applied Economic Partnership Agreements (EPAs) on two-way trade flows between the European Union (EU) and the African, Caribbean and Pacific Group of States (ACP). Employing the gravity model of trade, we do not find a general EPA effect on total exports from ACP countries to the EU nor on total exports from the EU to ACP countries. We do, however, find heterogeneous effects when focusing on specific agreements and economic sectors. While the agreement between the EU and the Caribbean Forum (CARIFORUM), which concluded several years ahead of the other EPAs in 2008, if anything, reduced imports from the EU overall, the provisional application of the other EPAs seems to have at least partly led to increased imports from the EU to some partner countries. More specifically, the estimation results suggest an increase in the total imports from the EU only in the Southern Africa Development Community (SADC) EPA partner countries. On the sectoral level, by comparison, we find increases in the EU’s agricultural exports to SADC, Eastern and Southern Africa (ESA) and the Pacific. Lastly, in the area of manufactures trade, we find decreases of exports of the ESA and SADC countries to the EU, but increases in imports from the EU into SADC countries. While this early assessment of the EPA effects merits attention given the importance of monitoring future implications of these agreements, it is still too early for a final verdict on the EPAs’ effects and future research is needed to investigate the mid- and long-term consequences of these agreements.
Topic:
International Relations, Development, International Cooperation, Regional Cooperation, Treaties and Agreements, Manufacturing, and Trade
Political Geography:
Africa, Europe, South Africa, Caribbean, Asia-Pacific, and European Union

7. Socially Responsible Public Procurement (SRPP) in Multi-Level Regulatory Frameworks: Assessment Report on Policy Space for SRPP Regulation and Implementation in Germany and Kenya

Author:
Tim Stoffel
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
Public Procurement is a highly regulated process ruled by a complex legal framework. It comprises not only national but also, increasingly, sub- and supranational regulations, giving rise to a multi-level regulatory governance of public procurement. The integration of sustainability aspects into public procurement, as called for in goal 12.7 of the Sustainable Development Goals (SDGs) of the Agenda 2030, needs to take this multi-level character into account. This reports focuses on social considerations, which are a central part of sustainable procurement – whether with a domestic focus or along international value chains. Social considerations have been somewhat neglected in Europe, whereas they feature prominently in procurement regulations in many countries of the Global South, especially in Sub-Saharan Africa (SSA). The advanced process of regional integration in the European Union (EU) and the progress made towards integration in some regional economic communities in Sub-Saharan Africa call for deeper analyses of the influence of the higher levels of the regulatory framework on the lower levels. The question is whether public entities, from the national down to the local level, are required or at least have the option to integrate socially responsible public procurement (SRPP) into their procurement processes and tenders, or at least have the option to do so. This report is conducted as part of the project “Municipalities Promoting and Shaping Sustainable Value Creation (MUPASS) - Public Procurement for Fair and Sustainable Production”, implemented by DIE in cooperation with Service Agency Municipalities in One World (SKEW) with funds from the Federal Ministry of Economic Cooperation and Development (BMZ) and compares public procurement in Germany and Kenya. In both countries, the multi-level regulatory frameworks allow for SRPP regulations and practices ar the national and sub-national levels of government. There is, however, an implementation gap for SRPP in Germany and Kenya that appears to be independent from the specifics of the respective regulatory framework. To tackle this, supportive measures, such as capacity building, are key. Furthermore, Regional economic communities, such as the EU and the Common Market for Eastern and Southern Africa (COMESA), can play a role in promoting SRPP, even without introducing mandatory provisions. At the other end of the multi-level regulatory spectrum, municipalities in the EU had and have an important role in SRPP implementation, that might be replicable by sub-national public entities in Kenya and other contexts.
Topic:
Development, Governance, Regulation, and Sustainable Development Goals
Political Geography:
Kenya, Africa, Europe, and Germany

8. Trash Sorters: Entrepreneurs in Africa

Author:
Carl Manlan
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
Africa is on the cusp of a community-led socioeconomic transformation, but this cannot happen without fully integrating the informal economic dynamos of young trash sorters.
Topic:
Economics, Youth, and Social Services
Political Geography:
Africa

9. COVID-19: A Stress Test for International Development Cooperation

Author:
Stefano Manservisi
Publication Date:
04-2020
Content Type:
Special Report
Institution:
Istituto Affari Internazionali
Abstract:
As the Coronavirus pandemic expands, and peak contagion remains uncertain, policy responses are gradually emerging, being implemented in a number of domains. The crisis has several important implications, but two are currently dominating the headlines: individual health and the sustainability of national healthcare systems, and the economic fallout from the pandemic.
Topic:
International Cooperation, Finance, International Development, Development Aid, and Coronavirus
Political Geography:
Africa, Europe, and Global Focus

10. A Tale of Two Unions: Africa, Europe and a Pragmatic Investment in Multilateralism in Times of COVID-19

Author:
Luca Barana
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The European Commission’s Joint-Communication “Towards a Comprehensive Strategy with Africa”, published on 9 March 2020, envisioned the beginnings of a new and more equal partnership with the African Union (AU).[1] Meanwhile, COVID-19 has had an unprecedented disruptor effect on the world scene. Its impact dramatic and long-lasting, the crisis may also be an opportunity to move beyond policy principles and actually consolidate the EU–AU relationship. The Commission aspires to structure this new course of EU–AU relations around five thematic partnerships and ten actions so as to concretely step up cooperation. A common thread emerging from the Communication is the need to strengthen multilateralism and the rules-based international system.
Topic:
Migration, United Nations, Multilateralism, and Coronavirus
Political Geography:
Africa, Europe, European Union, and African Union