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71. Structural transformation and international trade: Evidence from the China shock

Author:
Clément Nedoncelle and Julien Wolfersberger
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
How does international trade affect structural transformation in developing countries? We use data on sectoral allocation of labour and value-added in 46 developing economies over the period 1995–2017 and exploit for identification plausibly exogenous variation in manufacturing imports from China. We find that the so-called ‘China shock’ largely slows down the transformation of low- and middle-income economies out of agriculture. In our main specification industrialization decreases by 0.49 per cent on average for each additional per cent of manufacturing imports from China. It highlights a competition effect where exposure to Chinese imports is largely detrimental to structural transformation. These results hold across geographical regions, with a difference in Sub-Saharan Africa, where international trade causes an increase in the size of the services sector.
Topic:
Development, Economies, Trade, Industrialization, and Structural Transformation
Political Geography:
Global Focus

72. Assessment of institutional set-up of results measurement and reporting systems for non-sovereign operations in development finance institutions

Author:
Patrick Mabuza, Francis H. Kemeze, Oluwatoba J. Omotilewa, Mamadou Bah, and Btissam Benkerroum
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Development finance institutions (DFIs) foster sustainable development through financing, advisory services, and technical assistance. They complement public investments in developing and underserved markets to unlock development opportunities and deliver development results. Whereas DFIs’ missions are known among practitioners, their development achievements are often less understood. Consequently, DFIs have developed different results measurement and reporting systems to document the impacts of their interventions. This includes recent efforts to harmonize development impact indicators for results measurement and reporting. However, less is known about methodologies used in development outcomes assessments, or institutional set-ups for measuring and reporting these outcomes. This hampers knowledge on what works or does not work from a development finance perspective, preventing feedback mechanisms for DFIs to learn from prior interventions, mitigate risks, and ultimately improve subsequent interventions. Using a newly developed integration index score of hard versus soft integration of results measurement and reporting systems, and primary and secondary data from eleven such systems within DFIs, this study examines the set-up and effectiveness of different results reporting systems and mechanisms currently in place in DFIs. Findings reveal that although all interviewed DFIs measure anticipated (ex-ante) and ex-post development outcomes, only 27 per cent operate a fully integrated results measurement and reporting system that permits a 360- degree feedback loop for development effectiveness.
Topic:
Development, Finance, and Assessment
Political Geography:
Global Focus

73. Building resilience knowledge for sustainable development: Insights from development studies

Author:
Albert Sanghoon Park
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores how the concept of resilience has been used in development studies. Set amidst the rise of resilience in sustainable development, it offers insights for scholars and policy-makers, alike. Sampling 419 resilience-oriented journal articles from 2017–22, it uses Kuhnian paradigms to analyse development knowledge production. This produces three key findings. First is the absence of a coherent resilience paradigm (with shared definitions, problems, and methods) in development studies. Second is its use, instead, by pre-existing paradigms as a theoretical add-on to better address complexity and/or as a new buzzword to repackage prior arguments. Third are latent possibilities for resilience as both a rallying call and siren song in sustainable development. Here, resilience discourses open vital space for development cooperation and climate action. However, its outcomes will depend on whether we can first understand precisely what we talk about when we talk about resilience.
Topic:
Development, Politics, Sustainability, Resilience, and Knowledge Production
Political Geography:
Global Focus

74. What Works in Conflict Prevention?

Author:
David Steven and Gizem Sucoglu
Publication Date:
03-2023
Content Type:
Special Report
Institution:
Center on International Cooperation (CIC)
Abstract:
This paper compares examples of collaborations that have aimed to prevent violence and conflict. The focus is primarily on ‘at risk’ and ‘acute’ settings, but with a recognition of the need to access a broader range of universal approaches to prevention where possible.
Topic:
Conflict Prevention, Security, Development, Diplomacy, and Collaboration
Political Geography:
Global Focus

75. Alternative Aid Modalities: Community development

Author:
Scott Guggenheim and Charles Petrie
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Center on International Cooperation (CIC)
Abstract:
Economic sanctions and restrictions on development aid in fragile and conflict-affected states have become an increasingly prominent part of the international toolkit for dealing with regimes that violate international norms and rules or are beset by conflict. However, there is a well-known problem: sanctions and cessations of development aid often end up hurting the poor more than the rich, particularly the political elites who the sanctions are most meant to target. Donors try to limit the impact of sanctions on the poor through humanitarian assistance, usually run by United Nations (UN) agencies and non-governmental organizations (NGOs). However, in all but the smallest countries, this is extremely expensive as well as a major organizational and logistical challenge. Most recently, situations such as those in Myanmar and Afghanistan have thrown the spotlight on the complexity of the discussion. In a world of no first-best solutions, a close look at empirical experience will show (provided certain pre-conditions can be met) that donors can partially bridge the challenge of simultaneously upholding human rights values and protecting the poorest from the economic fallout caused by sanctions. These solutions require close attention to unpacking complex environments and using a difficult-to-wield set of tools spread over diplomacy, economic power, and development aid. While not all risks can be eliminated, a variety of flexible tools already exists so that donors can help the poor in sanctioned and conflict-affected countries without undermining diplomatic goals of shunning the government elites or inadvertently financing insurgencies. With a growing number of donor-funded community programs in fragile or conflict-affected states, there are also donor concerns about legitimating national authorities, risks of financial diversion, and capture by armed combatants or local elites (full list of major concerns listed below). This paper highlights and addresses these concerns in detail and offers a series of recommendations, which in addition to good donor program design and management could mitigate some of the risks (but not fully eliminate them). This paper aims to present a case on how to use one tool—community-based approaches for delivering and monitoring aid—in fragile or sanctioned contexts, as community-based local governance type development models have been used successfully in a variety of fragile, conflict, and sanctioned countries. Additionally, this paper will extract real-world illustrations of how these approaches can address donor concerns on providing post-humanitarian aid to poor people without unintentionally undermining sanctions on illegitimate regimes. Because the case literature on delivering aid under sanctions is small, the brief includes illustrations taken from aid delivery in conflict-affected countries, where governments may not be under sanction, but deep concerns remain about aid capture or aid further fueling conflict. Finally, in addition to selections from the literature, the report draws from the personal and professional experiences of the two authors, who have overseen or managed large-scale community-type humanitarian, peacebuilding, and development programs in Afghanistan, Burundi, East Timor, Gaza, Indonesia (including Aceh and West Papua), Myanmar, Rwanda, Sri Lanka, and Syria, and have been part of discussions over development options for countries under sanction in Ethiopia and Sudan. In this paper, authors propose ten recommendations for donors coming out of this research on how they can incorporate community-driven approaches for aid in sanctioned and fragile states situations.
Topic:
Development, Humanitarian Aid, Sanctions, and Community
Political Geography:
Afghanistan, Myanmar, and Global Focus

76. The UN General Assembly 2023: The urgency of compromise on financing for development

Author:
Natalie Briggs, Symphony Chau, Sarah Cliffe, Faiza Shaheen, and Betty N. Wainaina
Publication Date:
09-2023
Content Type:
Commentary and Analysis
Institution:
Center on International Cooperation (CIC)
Abstract:
New York will gear up this month to receive over 100 heads of state and government at the United Nations General Assembly. Behind the scenes, rising geopolitical tensions caused by structural competition, by the invasion of Ukraine and by the internationalization of other conflicts and coups d’etats (notably in West and Central Africa) will dominate. The world faces the prospect of more frequent interstate conflict and economic confrontation, which would have devastating consequences for international cooperation on socio-economic prosperity, conflict, and climate. We expect China, Russia, and Western countries to seek to build out their respective alliances—as previously analyzed, there have been moves from the West to make concessions to the Global South and a heating up of development competition between China and the West. In this CIC Perspective piece, authors examine the “state of play” at this year’s United Nations General Assembly (UNGA78), and discuss what success would look like at the Sustainable Development Goal (SDG) Summit taking place, along with how we can create the necessary means for action.
Topic:
Development, International Cooperation, United Nations, and Finance
Political Geography:
Global Focus

77. EXAMINATION OF DECISION-MAKING STRUCTURES’ PERCEPTIONS OF COMPONENTS ON THE INFLUENCES OF SME SUCCESS

Author:
Muhamet Spahiu and Esat A. Durguti
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
Small and medium-sized enterprises (SMEs) have succeeded in being the main and dynamic pillar of national and international economies. Education and work experience is essential in increasing SMEs’ efficiency and competitiveness. The changing business environment has created fierce competitiveness among SMEs, requiring active interaction between managers/owners and stakeholders. As a result, this study aims to explore the influence of education, experience, using a business plan, and barriers on the success of small and medium-sized businesses. This research employed an online questionnaire for scientific research. Through ordered logistic modeling, we observed 336 answers from businesses using the qualitative approach. The study’s findings reveal that education and work experience have a statistically favorable influence on the performance of SMEs, whereas barriers have a substantial adverse influence. Findings on barriers are noteworthy in the context of this study since the governing institutions throughout the pandemic and later situations experimented with the measures adopted. The study also benefits SMEs and legislation authorities in understanding the critical concerns that are perceived as barriers to the growth and expansion of SMEs, resulting in the creation of even more sophisticated infrastructures to support sustainable development.
Topic:
Development, Education, Economy, Business, and Competition
Political Geography:
Global Focus

78. COMBATING CROSS-BORDER ORGANIZED CRIME IN THE BORDER REGION OF THE STATE: STRATEGY DEVELOPMENT METHODOLOGY

Author:
Oleh Farion, Dmytro Kupriyenko, Yurii Demianiuk, and Andrii Nikitiuk
Publication Date:
07-2023
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The article describes the methodology for the following successive stages: data collection on cross-border organized crime; analysis of the impact of PEST factors of the border region on the number of cross-border crimes committed by organized criminal groups; generalization and analysis of parameters for assessing the capabilities of organized criminal groups; assessment of the level of capabilities of organized criminal groups to commit cross-border crimes; passporting of organized criminal groups specializing in cross-border crimes; modeling of scenarios of the development of organized criminal groups illegal activities by types of cross-border crimes; selection of options for fighting cross-border organized crime by the targeted impact on organized criminal groups. The strategy envisages a complex of the following measures: rapid (operational) interventions in critical situations; anti-crisis measures of the border guard operation to neutralize threats; other regime and control measures to strengthen the protection of the state border; standard planned and preventive measures; measures of sustainable development of the border security system. Implementing the methodology in practice enables the development of a strategic approach to effectively utilize the resources of state law enforcement agencies in combating cross-border crime.
Topic:
Crime, Development, Law Enforcement, Borders, and Organized Crime
Political Geography:
Ukraine and Global Focus

79. Export impact on dividend policy for big Colombian exporting firms, 2006–2014

Author:
Federico Merchan
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper studies the impact of exogenous export demand shocks on firms’ dividend policy using firm specific real exchange rate variation as instrumental variable. IV exclusion restriction is plausibly satisfied because real exchange rate shocks were unanticipated -partly explained because of international oil price fluctuation-, and first stage results confirm relevance condition fulfillment. The results indicate that big private Colombian exporting firms decree dividends as a way to mitigate the agency cost generated by exogeneous exports variation via higher free cash flow and cash flow volatility, especially in poor managerial quality firms. Evidence supports agency cost theory and denies signaling.
Topic:
Development, Emerging Markets, Globalization, International Trade and Finance, and Exports
Political Geography:
Global Focus

80. Mapping Pathways for Peace through the Composition of Official Development Assistance

Author:
Jannie Lilja and Gary Milante
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute (SIPRI)
Abstract:
Mapping the changing composition of official development assistance (ODA) against peace and conflict patterns in recipient countries over time can enhance the understanding of how pathways to peace look like in practice. This working paper presents empirical findings from more comprehensive research into the composition of ODA across aid recipient countries in the period 1990–2020. ODA is broken down into humanitarian, development and peacebuilding aid components. While development assistance is found to dominate across all types of country contexts, and the humanitarian share tends to be larger during conflict, peacebuilding assistance varies by conditions in countries. Post-conflict countries that avoid conflict relapse receive significantly higher shares of peacebuilding aid compared to post-conflict countries that relapse. A ternary graph is introduced to strategically track the composition of the total ODA envelope at the country level during different time periods. The findings suggest that a more effective future deployment of ODA for the advancement of peace and stability is possible.
Topic:
Foreign Policy, Development, Conflict, and Peace
Political Geography:
Global Focus