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11. Turning Point: A three year update on US supermarkets’ progress and pitfalls

Author:
Hana Ivanhoe and Art Prapha
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Since the outbreak of COVID-19, the global landscape of the food retail industry has dramatically shifted. There is now greater awareness of how wealth and gender inequalities have been exacerbated; the power of workers in the United States (US) has been awakened; the vulnerability of global supply chains has been exposed; big retailers are competing in technology adoption; investors are demanding environmental, social and governance (ESG) information; and there has been legislative advancement towards mandatory human rights due diligence (HRDD) law. Amidst these increasing pressures, major US supermarkets have continued to delay urgent actions needed to end exploitation of workers, women and farmers in their supply chains and retail operations. Key gaps include the lack of commitment to adopt a robust HRDD approach, lack of policies on workers’ rights at home and abroad, and the non-existence of gender policy in their business model. Failure to act now will result in irreversible impacts on workers, farmers and women – impacts that pose major risks to business continuity and supply chain resilience.
Topic:
Labor Issues, Governance, Business, Private Sector, and COVID-19
Political Geography:
North America and United States of America

12. The Regulatory Costs of Being Public

Author:
Michael Ewens, Kairong Xiao, and Ting Xu
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
An important explanation for the significant decline in the number of publicly listed companies in the United States is the increased burden of disclosure and governance regulations. Indeed, practitioners often point to heightened regulatory costs as the culprit of the disappearing public firms, while major deregulations such as the 2012 Jumpstart Our Business Startups (JOBS) Act were directly motivated by perceived costs of being public. Thus, understanding the role of regulations in the cost of being public and the decline in the number of public firms can address concerns about possible capital market dysfunction.
Topic:
Markets, Governance, Regulation, and Business
Political Geography:
North America and United States of America

13. Inequality and the Decline of Small Business

Author:
Sebastian Doerr, Thomas Drechsel, and Donggyu Lee
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
The share of income that goes to top earners has reached levels not seen in over half a century, and addressing inequality has become a central issue for policymakers. Designing policies to alleviate income disparities requires a thorough understanding of how inequality affects the economy. Somewhat surprisingly, while several studies investigate the consequences of rising income inequality for households (Auclert and Rognlie 2017, 2020; Mian et al. 2020), much less is known about how inequality affects firms. In a recent study (Doerr et al. 2022), we examine the important link between income inequality and firms’ job creation. Our analysis of US data reveals that a larger top income share hurts small firms, while benefiting larger firms. The reason is that households’ savings portfolios change with their income level. Higher income inequality leads to more household savings flowing into stocks and bonds – which are mostly used for financing by larger firms – rather than into bank deposits. In turn, as small businesses depend on banks for financing, their funding becomes more costly and they create fewer jobs. Complementing our analysis with a theoretical model, we show that by altering the allocation of household savings, rising income inequality not only hurts small firms, but suppresses overall employment. Income inequality has thereby contributed to two important macroeconomic trends: the decline in small business and the fall in the labor share, i.e., the share of total income that accrues to workers (Decker et al. 2016; Autor et al. 2020).
Topic:
Economics, Inequality, Business, and Business Management
Political Geography:
North America and United States of America

14. Memo on an "Economic Article 5" to Counter Authoritarian Coercion

Author:
Ivo H. Daalder and Anders Fogh Rasmussen
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Chicago Council on Global Affairs
Abstract:
The world's democracies need a way to fight back against coercive economic actions by authoritarian governments, argue Ivo Daalder and Anders Fogh Rasmussen. Increasingly, authoritarian countries are using economic coercion against democracies. In recent years, China’s economic coercion of Lithuania and Australia stands out as a prominent example. Russia uses economic levers to achieve geopolitical aims, notably by weaponizing its natural resources. The aim of such coercion is to bend the will of democratic countries. This is a test for the free world. In response, we propose an Economic Article 5 among democracies to counter authoritarian coercion.
Topic:
Foreign Policy, Authoritarianism, Economy, Business, and Trade
Political Geography:
Russia, China, Asia, North America, and United States of America

15. World Economy Winter 2022: Strong headwinds for global economic activity

Author:
Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Global growth has decelerated over the course of the year under the impact of high energy prices and great uncertainty. Monetary policy, which is being tightened very quickly in view of high inflationary pressure across the board, is now also putting a drag on economic activity. Overall, production remained on an upward trend into the fall, with impetus coming from easing supply bottlenecks and the continuing normalization of activity in those sectors of the economy particularly affected by the Covid-19 pandemic. Towards the end of the year, however, economic momentum weakened noticeably further. The major advanced economies in particular are currently facing a period of weak economic activity despite considerable fiscal support measures. At the same time, the problems for the Chinese economy remain significant. While global output (measured on a purchasing power parity basis) at 3.2 percent is expected to grow by 0.3 percentage points more this year than expected in September, we continue to forecast an increase of only 2.2 percent next year. For 2024, our expectation has even been reduced slightly to 3.2 percent, mainly because we do expect the US economy to recover slowly. Inflation is likely to have peaked and is expected to slow significantly over the forecast horizon thanks to lower commodity prices and easing economic tensions. However, underlying inflation is not likely to return to target levels until the end of the forecast period.
Topic:
Monetary Policy, Economy, Business, COVID-19, and Emerging Economies
Political Geography:
China, Europe, Asia, North America, and United States of America

16. World Economy Autumn 2022: Global growth falters

Author:
Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In spring 2022, world economic growth came to a standstill amid high inflation, persistent supply bottlenecks and elevated uncertainty. In many countries real wages are declining significantly dampening private consumption even though extra savings accumulated during the pandemic are still available to mitigate the adverse impact to some extent. At the same time financial conditions have also deteriorated as central banks tightened their policies. In China, the strict zero-covid policy and problems in the real estate sector are slowing economic activity. Against this backdrop, the outlook for the global economy has deteriorated further. We have, again, lowered our forecast and are now expecting global output to increase by only 2.9 percent this year and 2.2 percent next year (calculated on a purchasing power parity basis). The forecast assumes that commodity prices will gradually decline in line with forward prices, which will over time reduce the upward pressure on prices and provides the foundations for an economic upturn in 2024. However, the pass-through of higher commodity prices into consumer prices is probably not yet complete and wage increases are likely to intensify in many countries. Consequently, underlying inflation is likely to remain higher than in the years before the Covid crisis and remain above central bank targets over the forecast horizon.
Topic:
Monetary Policy, Business, COVID-19, Zero-COVID, Emerging Economies, and Advanced Economies
Political Geography:
China, Europe, Asia, North America, and United States of America

17. How difficult is China’s business environment for European and American companies?

Author:
Uri Dadush and Pauline Weil
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Despite tensions over China’s discriminatory business practices, China’s trade continues to thrive, and the country has taken over from the United States as the first destination for foreign investment. American and European businesses continue to be engaged in China’s large and growing market, even amid a trade war between China and the United States. Drawing on surveys of companies and international comparisons, we show that – contrary to the prevailing narrative – China’s business practices have improved significantly in recent years. China’s business environment is today generally more favourable than that in other large countries at similar levels of development and, in some though certainly not all aspects, is in line with the Organisation for Economic Co-operation and Development average. Differences over geopolitics and human rights must be addressed, but it is clear that trade and investment agreements conditioned on accelerated reforms in China would yield substantial dividends. The benefits of such deals would accrue not only to foreign investors in China and exporters to China, but also to consumers and importers in the European Union and, especially, in the US, where punitive tariffs on China remain in effect. Critical aspects in the negotiations would include better access for American and European investors to China’s market for services and improved enforcement of rules and regulations in China. As in many middle-income countries, uneven enforcement of the law (rather than the law itself) remains a critical problem in China.
Topic:
Development, Bilateral Relations, European Union, Business, and Investment
Political Geography:
China, Europe, Asia, North America, and United States of America

18. Barber Licensing in Arkansas: Public Health or Private Gain?

Author:
Tanner Corley and Marcus M. Witcher
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
In Arkansas, the barber profession has been regulated and licensed for more than 80 years, and until recently, the issue was mostly absent from the political debate. During a regular session of Arkansas’s 92nd General Assembly in 2019, however, state Sen. John Cooper presented a bill to “repeal the [1937] Arkansas Barber Law” and to “abolish the State Board of Barber Examiners” (Briggs 2019). The average Arkansan probably was not aware of the bill, but occupational licensing reformers saw this as a great opportunity for Arkansas to pave the way for other states to reform their own license laws. If Cooper’s bill had passed, Arkansas’s economy would have likely benefited (Timmons and Thornton 2010, 2018). By removing restrictive requirements to becoming a barber, the bill would have allowed more Arkansans to enter the profession. This reform would have ­provided people with more economic opportunities, increased competition, and benefited consumers.
Topic:
Regulation, Business, Public Health, and Licensing
Political Geography:
North America and United States of America

19. Cooperation or Coercion? The Views of US Opinion Leaders on Foreign Policy Approaches

Author:
Craig Kafura, Dina Smeltz, Joshua W. Busby, Joshua D. Kertzer, and Jonathan Monten
Publication Date:
03-2021
Content Type:
Commentary and Analysis
Institution:
Chicago Council on Global Affairs
Abstract:
Following four years of former President Donald Trump’s “America first” foreign policy, President Joe Biden is seeking to reorient the US approach to world affairs, placing much greater emphasis on international cooperation. This reorientation has already been evident in Biden’s decisions to return the United States to the Paris climate agreement, extend the New START arms control treaty with Russia, remain in the World Health Organization, reengage with the United Nations Human Rights Council, and commit to rejoining the Iran nuclear deal if Iran returns to complying with it. To what extent do Democratic, Republican, and Independent foreign policy professionals support Biden’s international agenda? The results of the 2020 Chicago Council on Global Affairs-University of Texas at Austin survey of more than 900 US executive branch officials, congressional staff, think tank scholars, university professors, journalists, and interest group representatives indicates there is substantial support among leaders of different political persuasions for a greater emphasis on cooperation and less reliance on coercion in foreign policy. However, this consensus also has a partisan tilt: Democrats and Independents are far more likely to agree on cooperative foreign policy approaches the United States should use, while Republicans are more comfortable with coercive measures. Taken together, these findings suggest that Biden should be able to attract strong support for his foreign policy from Democratic and Independent members of the foreign 2 policy community but will find it much more difficult to gain Republican backing for many of his international initiatives.
Topic:
Security, Foreign Policy, Defense Policy, Politics, Economy, Business, Trade, and Survey
Political Geography:
Middle East, North Africa, and North America

20. Priorities for US-Africa commercial policy in the Biden Administration

Author:
Aubrey Hruby
Publication Date:
04-2021
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
With a renewed focus on multilateralism, President Joe Biden, in his first one hundred days, has actively been reengaging with traditional US allies and partners repeatedly sidelined by the Trump administration. African countries have been included in this effort. When addressing the African Union Summit of African presidents in February, he reaffirmed the United States’ commitment to partnering with African nations to address challenges including climate change and erosion of democratic institutions. Biden has gained widespread praise for supporting the appointment of Dr. Ngozi Okonjo-Iweala as the first African head of the World Trade Organization (WTO), nominating officials who have deep experience in African markets to Cabinet positions, such as Linda Thomas-Greenfield as ambassador to the United Nations, and putting together a historically diverse government, including many senior members of the African diaspora. Building on this early progress, Biden has an opportunity to reset US-Africa policy by not only prioritizing it at a level unseen during the last four years, but also changing the long history of siloing Africa policy. The Biden administration should look to further integrate African nations into broader US foreign policy, acknowledging Africa’s increasing importance to US priorities and enhanced standing on the global stage. Doing so will allow the new administration to deepen commercial and people-to-people ties with African nations, benefiting US businesses, furthering US interests, and working to address global challenges, such as public health and climate change. This more multifaceted and nuanced engagement with African states will set a foundation for stronger US-Africa partnerships, support mutual economic growth, and contribute to strengthening US global leadership. While cooperation with African states is critical to regional stability and global security, this issue brief sets aside security policy and focuses on ways the Biden administration can strengthen its commercial policy and public diplomacy with African nations. This effort includes building on commercial policies started under the Trump administration, facilitating green growth, and deepening people-to-people ties. In doing so, Biden’s domestic priorities of promoting diversity and climate responsibility will be reflected in Africa policy and ensure US businesses can take advantage of increasing opportunity in African markets and remain competitive globally.
Topic:
Foreign Policy, Diplomacy, Economy, Business, and Joe Biden
Political Geography:
Africa, North America, and United States of America