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331. The Importance of the Western Balkans in China’s Foreign Policy

Author:
Marcin Przychodniak
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
China’s cooperation with the Western Balkans through the “17+1” format and Belt and Road Initiative (BRI), among others, is primarily political. In the economic sphere, Chinese investments are to a large extent only declarations, and trade is marginal in comparison to cooperation with the EU or others. China’s goals are to gain political influence in future EU countries and limit their cooperation with the U.S. Competition with China in the region requires more intense EU-U.S. cooperation, made more difficult by the pandemic.
Topic:
Foreign Policy, International Trade and Finance, Belt and Road Initiative (BRI), Investment, and Strategic Competition
Political Geography:
China, Europe, Asia, and Balkans

332. U.S. Policy in the Arctic

Author:
Paweł Markiewicz
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The Arctic has become another contested area between the U.S., Russia, and China. The region’s growing importance for global trade and American security means the U.S. goal is largely to maintain freedom of navigation in the Arctic. For this reason, the Trump administration strives to increase American capacities to operate in the Arctic. The effects of the COVID-19 pandemic will delay implementing these plans; nevertheless, they will be achieved in the long term and the U.S. will also expect support in the Arctic from NATO allies.
Topic:
Security, Foreign Policy, NATO, and International Trade and Finance
Political Geography:
Russia, China, Arctic, and United States of America

333. Political Tensions and the Failure to Curb COVID-19 in Brazil

Author:
Bartlomiej Znojek
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The spread rate of COVID-19 in Brazil is increasing and the policies of the federal government, headed by President Jair Bolsonaro, do not contribute to a slowdown in the pandemic. Bolsonaro downplays the threat and rejects restrictive measures as he priori-tises support for the economy. He has clashed with state governors who introduced restrictions and with the Federal Supreme Court, which defended their autonomy. The deteriorating situation in Brazil amid the pandemic and political situation diminish Bolsonaro’s chances of re-election in 2022 and may strain his government’s relations with EU partners.
Topic:
Government, Health, Politics, Health Care Policy, Coronavirus, Pandemic, and Jair Bolsonaro
Political Geography:
Brazil and South America

334. Beyond a Single Model: Explaining Differences in Inequality within Latin America

Author:
Diego Sánchez-Ancochea
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper studies the determinants of income inequality in Latin America over the long run, comparing them with explanations of why the whole region is unequal. I first show how land inequality can account for differences between Latin America and other parts of the world but how it does not explain within-region differences. Using qualitative comparative analysis, I then consider how political institution and actors interact with the economic structure (i.e., type of export specialization) and with the ethnic composition of the population. The paper has several findings. A low indigenous/afrodescendant population is a necessary condition for relatively low inequality. I identify two sufficient-condition paths, both of which include the role of democracy, political equality, and a small indigenous and afrodescendant population. The first path also includes a favorable export specialization, while the second one includes the presence of leftist presidents instead. The paper calls for more explicit comparisons between our analytical models for the whole region and our explanations of between-country differences. Hopefully, the paper can also trigger more research on how the interactions between ethnicity, politics, and the export structure shape inequality in Latin America.
Topic:
Civil Society, Development, Political Economy, Poverty, Race, Social Movement, Democracy, Inequality, and Ethnicity
Political Geography:
Latin America

335. Why Do People Migrate Irregularly? Evidence From a Lab-in-the-Field Experiment in West Africa

Author:
Tijan L. Bah and Catia Batista
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Irregular migration to Europe by sea, though risky, remains one of the most popular migration options for many sub-Saharan Africans. This study examines the determinants of irregular migration from West Africa to Europe. We implemented an incentivized lab-in-thefield experiment in rural Gambia, the country with the region’s highest rate of irregular migration to Europe. Male youths aged 15 to 25 were given hypothetical scenarios regarding the probability of dying en route to Europe and of gaining legal residence status after successful arrival. According to the data we collected, potential migrants overestimate both the risk of dying en route to Europe and the probability of obtaining legal residency status. In this context, our experimental results show that providing potential migrants with official numbers on the probability of getting a legal residence permit decreases their likelihood of migration by 2.88 percentage points (pp), while information on the death risk of migrating increases their likelihood of migration by 2.29 pp—although the official numbers should be regarded as a lower bound to actual mortality. Follow-up data collected one year after the experiment show that the migration decisions reported in the lab experiment correlate well with actual migration decisions and intentions. Overall, our study indicates that the migration decisions of potential migrants are likely to respond to relevant information.
Topic:
Development, Globalization, Migration, Internet, Economic growth, Borders, and Violence
Political Geography:
Africa and Gambia

336. Doing Business in Bolivia: a case study in the Andean regulatory framework

Author:
Jorge Ignacio Del Castillo Machicado
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This article researches on the evolution of the business regulatory framework of Bolivia from 2006 to 2017 and its relationship with the country’s Labor productivity, Total Factor Productivity, and its Informal Economy size. To do this, it analyzes the Doing Business annual reports and standardizes each year overall score to the most recent methodology developed by the World Bank Group. Furthermore, it complements its finding with qualitative data through semi-structured interviews to key actors in the Bolivian economy. Overall, this paper finds that few steps have been taken to improve Bolivia’s Business regulatory framework from the period of 2006-2017, result in a lower rank in the Doing Business report and keeping its score constant. The lack of initiative in working towards more efficient policies, complex nature and poor adaptability of new technological practices have stagnated the improvements of business regulations along their lifecycles. As a consequence, Bolivia Total Factor Productivity, Informal Economy size and Labor productivity have shown no improvement over the last 10 years.
Topic:
Economics, Science and Technology, Labor Issues, World Bank, Regulation, and Business
Political Geography:
Latin America and Bolivia

337. A Glimpse of Freedom: Allied Occupation and Political Resistance in East Germany

Author:
Luis Martinez, Jonas Jessen, and Guo Xu
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Empirical Studies of Conflict Project (ESOC)
Abstract:
This paper studies costly political resistance in a non-democracy. When Nazi Germany surrendered in May 1945, 40% of the designated Soviet occupation zone was initially captured by the western Allied Expeditionary Force. This occupation was short-lived: Soviet forces took over after less than two months and installed an authoritarian regime in what became the German Democratic Republic (GDR). We exploit the idiosyncratic line of contact separating Allied and Soviet troops within the GDR to show that areas briefly under Allied occupation had higher incidence of protests during the only major episode of political unrest in the GDR before its demise in 1989 - the East German Uprising of 1953. These areas also exhibited lower regime support during the last free elections in 1946. We argue that even a “glimpse of freedom" can foster civilian opposition to dictatorship.
Topic:
Democracy, Occupation, World War II, Dictatorship, and Resistance
Political Geography:
Europe, Germany, and East Germany

338. The Impact of Sanctions Imposed by the European Union against Iran on their Bilateral Trade: General versus Targeted Sanctions

Author:
Mahdi Ghodsi and Hüseyin Karamelikli
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Economic sanctions are intensively used by international institutions to enforce political objectives. Since 2006 the EU has been implementing general sanctions against the whole economy of Iran, affecting their trade relations. Since 2007, and following the imposition of sanctions by the UN Security Council, the EU has also implemented smart sanctions targeting Iranian entities and natural persons associated with its military activities. In a non-linear autoregressive distributed lag (NARDL), this paper investigates the impact of general and targeted EU sanctions against Iran on quarterly bilateral trade values between the 19 members of the euro area (EA19) and Iran between the first quarter of 1999 and the fourth quarter of 2018. The results indicate that general sanctions have strongly hampered trade flows between the two trading partners. The impact of general sanctions on the total imports of the EA19 from Iran is more than four times stronger than on the total exports of the EA19 to Iran. Moreover, the EU’s general sanctions have hampered trade in almost all sectors, except for the primary sectors. Furthermore, our study finds that the impact of smart sanctions targeting Iranian entities and natural persons is much smaller than the impact of general sanctions on total trade values and the trade values of many sectors. Smart sanctions affect the exports of most sectors from the EA19 to Iran, while they are statistically insignificant for the imports of many sectors from Iran. Thus, this paper provides evidence on the motivations behind smart sanctions, which target specific individuals and entities rather than the whole economy, unlike general sanctions, which have a negative impact on ordinary people.
Topic:
United Nations, Sanctions, Trade, and Trade Policy
Political Geography:
Europe, Iran, United Nations, and European Union

339. Distributional National Accounts (DINA) with Household Survey Data: Methodology and Results for European Countries

Author:
Stefan Ederer, Stefan Humer, Stefan Jestl, and Emanuel List
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The paper builds Distributional National Accounts (DINA) using household survey data. We present a transparent and reproducible methodology to construct DINA whenever administrative tax data are not available for research and apply it to various European countries. By doing so, we build synthetic microdata files which cover the entire distribution, include all income components individually aligned to national accounts, and preserve the detailed socioeconomic information available in the surveys. The methodology uses harmonized and publicly available data sources (SILC, HFCS) and provides highly comparable results. We discuss the methodological steps and their impact on the income distribution. In particular, we highlight the effects of imputations and the adjustment of the variables to national accounts totals. Furthermore, we compare different income concepts of both the DINA and EG-DNA approach of the OECD in a consistent way. Our results confirm that constructing DINA is crucial to get a better picture of the income distribution. Our methodology is well suited to build synthetic microdata files which can be used for policy evaluation like social impact analysis and microsimulation.
Topic:
Macroeconomics, Data, and Methods
Political Geography:
Europe

340. South Korea's 5G Ambitions

Author:
Clara Gillespie
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Under President Moon Jae-in, South Korea has set an ambitious target to move from being “first in the world” in the race to 5G to “first in global quality.” Yet, while a range of industry and government stakeholders are investing heavily in making this vision a reality, a number of factors are likely to weigh on whether or not these efforts yield significant results. These include uncertainties about how to further accelerate development in ways that lead to better returns on investments, and about how to navigate complex geopolitical considerations, including ongoing debates about Huawei’s involvement in 5G network infrastructure. Each of these areas will, in turn, require domestic stakeholders to make complex assessments about potential tradeoffs and risks. Thus, this paper assesses South Korea’s emerging 5G era at the one-year mark, and highlights key successes, setbacks, and ongoing challenges. Building on these findings, the paper concludes by offering several potential scenarios for future development, and suggestions for ways forward.
Topic:
Economics, Science and Technology, and 5G
Political Geography:
Asia and South Korea