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441. Hungary under Orbán: Can Central Planning Revive Its Economy?

Author:
Simeon Djankov
Publication Date:
07-2015
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Since the promising start of its transition from a centrally planned economy to capitalism, Hungary has failed to join Western Europe in terms of living standards and democracy. The dominant political figure in Hungary, Prime Minister Viktor Orbán, shares many features with Russian president Vladimir Putin. Both view the increasing role of the state as economically beneficial, and both consider the Western European economic model to be flawed. Hungary is headed towards centrally planned capitalism, demonstrated by the partial nationalization of the banking sector, the monopolization of some sectors of the economy, and the reversal of the pension reforms of 1998. Plagued by the most persistent budget deficit of any post-communist country, Hungary's greatest challenge is to establish a fiscally sustainable growth path.
Topic:
Communism, Economics, Politics, Governance, Authoritarianism, and Russia
Political Geography:
Hungary and Western Europe

442. Silencing the Guns: Strengthening Governance to Prevent, Manage, and Resolve Conflicts in Africa

Author:
Gilbert Khadiagala
Publication Date:
05-2015
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
Since independence, African states and organizations have made significant investments in conflict management and resolution tools. So why do some African states and regions remain saddled by conflict and instability? How can African states leverage democratic governance to end wars? The new report Silencing the Guns suggests that the key to ending conflict in Africa lies in fostering effective governance and creating political and economic institutions that can effectively prevent, manage, and resolve conflicts. Author Gilbert Khadiagala unpacks how and why democratic governance is linked to conflict prevention and management, and provides an overview of landmark trends that have influenced governance in Africa since the 1950s. He shows that not all forms of democratic governance reduce conflicts and examines the ways in which “developmental dictatorships,” corruption, and the privatization of security are posing obstacles for governance and peace today.
Topic:
Conflict Resolution, Conflict Prevention, Democratization, and Governance
Political Geography:
Africa

443. State Formation, Humanitarianism, and Institutional Capabilities in South Sudan

Author:
Peter Biar Ajak
Publication Date:
05-2015
Content Type:
Working Paper
Abstract:
As South Sudan’s fourth anniversary approaches, the fractured state teeters on the brink of a humanitarian catastrophe that has left millions in need of aid as a result of renewed fighting in the ongoing civil war. The relapse into conflict has been an enormous setback for statebuilding, curtailing efforts to ensure that humanitarian relief reaches all civilians in need of it. Through the nexus of humanitarianism and state formation, this issue brief assesses the international humanitarian system’s engagement in South Sudan during the period from statehood in July 2011 to the period immediately prior to the outbreak of the December 2013 crisis. Aside from responding to short-term needs, the author argues that humanitarianism ought to fit into the overall political strategy of supporting the process of state formation. The report outlines the enormous needs and challenges facing South Sudan since independence, its emerging humanitarian crises, and the response of humanitarian actors and donors. It addresses South Sudan’s unique challenges of state formation and the importance of linking long-term state capacity building to aid delivery. To advance aid delivery and improve implementation capacity in South Sudan, the author offers the following recommendations: Meaningfully involve government in the design and execution of aid projects. Finance projects that build on existing capacities at the lower tier of administration. Consider direct cash transfers. Raise local salaries to attract talent into the government. Finance public works projects.
Topic:
Conflict Resolution, Civil War, Humanitarian Aid, and Governance
Political Geography:
South Sudan

444. Algeria and Its Neighbours

Publication Date:
10-2015
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Algeria is emerging as an indispensable broker of stability in North Africa and the Sahel. Where insecurity, foreign meddling and polarisation are on the rise across the region, it has at key moments promoted dialogue and state-building as the best means for lifting neighbours out of crisis, thus to safeguard its own long-term security. What some call Algeria’s “return” to regional politics after a long absence since its “black-­decade” civil war in the 1990s has been positive in many respects: its approach of promoting inclusion and compromise to stabilise its neighbours, driven by enlightened self-interest, presents an opportunity for an international system that has struggled to tackle the challenges engendered by the Arab uprisings. Yet, its ambitions have self-imposed limits. A moribund domestic political scene – a regime riven by factionalism and uncertainty over who might succeed an ailing President Abdelaziz Bouteflika – cast a fog over the political horizon. Relations with other powers with clout in the region, notably Morocco and France, have room for improvement
Topic:
Conflict Resolution, Regional Cooperation, International Security, and Governance
Political Geography:
Algeria and North Africa

445. Somaliland: The Strains of Success

Publication Date:
10-2015
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Somaliland’s hybrid system of tri-party democracy and traditional clan-based governance has enabled the consolidation of state-like authority, social and economic recovery and, above all, relative peace and security but now needs reform. Success has brought greater resources, including a special funding status with donors – especially the UK, Denmark and the European Union (EU) – as well as investment from and diplomatic ties with Turkey and the United Arab Emirates (UAE), though not international recognition. It is increasingly part of the regional system; ties are especially strong with Ethiopia and Djibouti. Given the continued fragility of the Somalia Federal Government (SFG), which still rejects its former northern region’s independence claims, and civil war across the Gulf of Aden in Yemen, Somaliland’s continued stability is vital. This in turn requires political reforms aimed at greater inclusion, respect for mediating institutions (especially the professional judiciary and parliament) and a regional and wider internationally backed framework for external cooperation and engagement.
Topic:
Democratization, Governance, and Elections
Political Geography:
Africa and Somaliland

446. Kyrgyzstan: An Uncertain Trajectory

Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
Kyrgyzstan, Central Asia’s only even nominal parliamentary democracy, faces growing internal and external security challenges. Deep ethnic tensions, increased radicalisation in the region, uncertainty in Afghanistan and the possibility of a chaotic political succession in Uzbekistan are all likely to have serious repercussions for its stability. The risks are exacerbated by leadership failure to address major economic and political problems, including corruption and excessive Kyrgyz nationalism. Poverty is high, social services are in decline, and the economy depends on remittances from labour migrants. Few expect the 4 October parliamentary elections to deliver a reformist government. If the violent upheavals to which the state is vulnerable come to pass, instability could spread to regional neighbours, each of which has its own serious internal problems. The broader international community – not just the European Union (EU) and the U.S., but also Russia and China, should recognise the danger and proactively press the government to address the country’s domestic issues with a sense of urgency.
Topic:
Security, Politics, Governance, and Reform
Political Geography:
Asia and Kyrgyzstan

447. Tunisia's New Constitutional Court

Author:
Duncan Pickard
Publication Date:
04-2015
Content Type:
Policy Brief
Abstract:
January 2014 became a milestone of Arab democracy when Tunisia adopted the first democratic Arab constitution drafted outside the influence of the military or a foreign power. In "Tunisia's New Constitutional Court," Duncan Pickard, a Nonresident Fellow at the Atlantic Council's Rafik Hariri Center for the Middle East, takes up the next step for the country's democracy: developing a functioning Constitutional Court. He introduces the court's structures, outlines the various challenges that the new parliament will face in drafting a law to officially establish the court, and details policy options for the United States and Europe to support Tunisia's nascent democracy.
Topic:
Democratization, Politics, Governance, and Reform
Political Geography:
Arab Countries and Tunisia

448. Financing Options for the Ugandan National Oil Company

Author:
Thomas Lassourd
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
This briefing note is an effort to help frame the main tradeoffs and assess four potential funding models for the newly created national oil company of Uganda. It is based on NRGI’s international experience and understanding of the local context. Uganda’s national oil company will have a critical role. It is expected to professionally manage all aspects of state participation in the sector and act as a center of expertise for the government. It is also expected to play a strong role as a minority equity partner in the USD 4.3 billion Hoima refinery project and potentially in a USD 4 billion export pipeline. Under all possible funding options, strong audit and reporting processes should be required, as well as parliamentary oversight. The chosen funding model will also need to balance the needs of the national oil company with national development needs in Uganda. Funding model options can be adapted to meet Uganda’s unique situation. NRGI is at the disposal of Uganda’s government and parliament to discuss these models.
Topic:
Development, Energy Policy, Oil, Natural Resources, and Governance
Political Geography:
Uganda and Africa

449. In Pursuit of Transparent Trading

Publication Date:
10-2015
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Commodity trading and the activities of trading companies influence economic and governance outcomes in developing countries. Typically privately owned with flexible business models, many trading companies work extensively in “high-risk” environments – including countries with weak institutions, conflicts or other challenges that scare away more risk-averse companies. Given the size of this footprint, and its prevalence in countries with high levels of corruption or poverty (or both), the quality of trading companies’ business practices is of serious concern. Trading companies play several roles through which they influence public institutions and public revenues, and they frequently build close relationships with top officials and political elites. They are major buyers of raw materials sold by governments and state-owned companies worldwide, and these transactions generate significant public revenues. Traders also provide large loans to governments, sell refined products, and enter into joint ventures with state-owned entities. They are expanding their upstream and downstream operations in developing countries as well.
Topic:
Economics, International Trade and Finance, Natural Resources, and Governance
Political Geography:
Global Focus

450. From Reporting to Reform: Eleven Opportunities for Increasing EITI Impacts

Author:
Max George-Wagner and Erica Westenberg
Publication Date:
06-2015
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Under the EITI Standard, implementing countries are required to produce far more comprehensive reports than before; these go beyond revenue payments to include disclosures across the entire extractive industries decision chain. However, the objective of the Standard is not merely to generate more data, but rather that stakeholders will use the information to impact the governance of the sector. This EITI briefing note explores how countries are faring at meeting the EITI’s more ambitious requirements and what implementing countries can do to begin moving “from reporting to reform.” This briefing note is based on a review of the first 22 reports produced under the Standard; the review assesses both the quality of reporting, as well as the content. We found that in many respects countries have risen to the challenge and become more ambitious and comprehensive in their reporting. This has included highlighting critical deficiencies in license allocation processes, revealing politically affiliated owners of companies, and identifying significant local revenues that were never disbursed. However, a number of significant gaps remain and these are holding countries back from seeing meaningful impacts from their EITI processes. For instance, these reports have missed opportunities to inform major tax code revisions, ignored hotly debated issues of sector employment, and left stakeholders in the dark about individual extractive projects.
Topic:
Economics, Industrial Policy, Intelligence, Natural Resources, and Governance
Political Geography:
Global Focus