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2681. Foreign Direct Investment: Key Issues for Promotion Agencies

Author:
Sergey Filippov, Iornara Costa, and Mariana Zanatta
Publication Date:
10-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
The growing importance attached to attracting foreign direct investment (FDI) is evidenced by the steady rise of investment promotion agencies (IPAs) worldwide, especially from the early 1990s. Since its launch in 1995, the World Association of Investment Promotion Agencies (WAIPA) has registered a growing number of members representing cities, regions, countries and free zones from all over the world: from 112 in 2002, 161 in 2004, rising to 191 members from 149 countries in 2006. According to the United Nations Conference on Trade and Development (UNCTAD) there were around 500 IPAs in more than 160 countries in 2004.
Topic:
Foreign Policy, Development, Economics, and International Trade and Finance
Political Geography:
United Nations

2682. Mobilizing Talent for Global Development

Author:
Andrs Solimano
Publication Date:
08-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
The generation of new ideas and their application for productive uses is an important engine for growth and development. This is an area in which developing countries usually lag behind developed countries and is where development gaps are more evident. Behind the generation of ideas, innovations, and new technologies there is 'human talent': an inner capacity of individuals to develop ideas and objects, some of them with a high economic value. The 'human factor' is critical to the success or failure of many endeavours. Several countries, particularly China and India, followed by Russia, Poland, and some Latin American countries, are becoming an important source of talented people with PhDs and degrees in science, engineering, and other areas that can lead to change in the international patterns of comparative advantages and reduce development gaps. Part of the new talent formed in developing countries goes to live and work to developed countries, typically the USA, UK, and other OECD nations. At the same time multinational corporations are outsourcing several of their productive and service activities, including research and development, to developing countries (China and India are main destinations) to take advantage of the (less expensive) talent being developed there. Today, therefore, we see a double movement of talent and capital around the globe: on the one hand talent from developing countries is moving north seeking better opportunities where people are equipped with more capital, technologies, and effective organizations. On the hand capital from the north pursues talent in the south; a process largely led by multinational corporations.
Topic:
Development, Economics, Human Welfare, and Migration
Political Geography:
United States, China, United Kingdom, and India

2683. Fiscal Policy for Poverty Reduction, Reconstruction, and Growth

Author:
Matthew Smith, Alan Roe, and Tony Addison
Publication Date:
06-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
An effective state is able to mobilize revenue and spend it on infrastructure, services, and public goods that both enhance human capital and the well-being of communities (especially the poor), as well as stimulating investment and employment creation by the private sector. An effective state also manages public finance to ensure that macroeconomic balance is maintained—with policy neither too restrictive to discourage private investment and growth, nor too accommodative to create high inflation and crowd out private investment. Fiscal issues are therefore at the heart of the state's role in the development process and failure in this policy area—whether it is in taxation, public expenditures, or in managing the fiscal deficit and public debt—can quickly undermine growth and poverty reduction. Fiscal weakness can also be fatal to social peace when one or more ethnic, religious, or regional groups are taxed unfairly—or receives too little in the allocation of public spending.
Topic:
Debt, Development, Economics, and Poverty
Political Geography:
Africa and Asia

2684. Hydrogen Fuel Cells and Transport Alternatives: Issues for Developing Countries

Author:
Grant Boyle and Lynn Mytelka
Publication Date:
05-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Recent technological advances in the application of hydrogen fuel cells in the transport sector have drawn considerable attention and increased funding from both public and private sources over the past ten years. The International Energy Agency estimates that about US$1billion per year is currently being invested in public hydrogen and fuel cell research, development, test vehicles, prototype refuelling stations and demonstration projects, as compared to the total annual public budget for energy research, development and demonstration of around US$8billion. While still in the early stages of development and costly in comparison to conventional vehicle propulsion and fuel technologies, fuel cells and hydrogen offer a promising solution to address growing concerns over the transport sector's dependence on oil and its impact on climate change.
Topic:
Development, Energy Policy, Science and Technology, and Third World
Political Geography:
United States and Europe

2685. Open Source and Open Standards: A New Frontier for Economic Development?

Author:
Philip Schmidt and Rishab Aiyer Ghosh
Publication Date:
03-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Free software (also called open source software or libre software) has become one of the most talked about phenomena in the ICT world in recent years. This is remarkable, not only for the usual reasons—that open source has been around for many years as a volunteer driven success story before being discovered by big business and now government— but also because it has largely developed quietly on its own without the headline coverage and glare of international attention that it now receives.
Topic:
Development, Economics, Science and Technology, and Third World
Political Geography:
United States

2686. Lobbying Systems in the European Union: A Quantitative Study

Author:
Andreas Broscheid and David Coen
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper presents and tests a micro-theoretical model of EU lobbying across policy domains. In particular, we focus on two questions: first, we want to know why the number of interest representatives differs across policy domains and, second, we investigate why we find institutionalized fora for interest representation in some policy domains but not in others. Our argument focuses on the Commission's need for expert information and its costs of managing contacts with a large number of interest representatives. Both factors provide incentives for the Commission to create restricted-access fora as the number of interest representatives increases. Using cross-sectional data on interest representation in a wide range of policy domains, we find some support for our hypotheses.
Topic:
Development, Government, and Political Economy
Political Geography:
Europe

2687. The Politics of Tax Structure

Author:
Steffen Ganghof
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Governments that wish to redistribute through budgetary policy do so mostly on the spending side, not on the taxation side of the budget. The taxation side is nevertheless important, partly because less efficient tax structures seem to be associated with lower taxation and spending levels. Hence political conflicts over spending levels may partly be fought as conflicts over tax structure. The paper provides a coherent perspective on the politics of tax structure. Specific topics include the (ir-)relevance of tax mixes, policy change in income taxation, the importance of tax competition, and the role of political institutions.
Topic:
Development, Economics, Government, and Political Economy

2688. Democratization in Mali: Putting History to Work

Author:
Robert Pringle
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
Since the 1991 uprising, which saw the ouster of the country's long-standing military dictator and ushered in a democratically elected government, Mali has achieved a record of democratization that is among the best in Africa. This process has been driven by multiple factors. External observers often point to broader Africa-wide change and a remarkable constellation of “founding fathers” who demonstrated vision and self-sacrifice following the change of government. But if you ask Malians why their country has successfully democratized, most of them will respond by stressing Mali's heritage of tolerance and decentralized government, dating back more than a millennium to the Ghana Empire and its two successor states. For Malians, democratization combined with decentralization is a homecoming rather than a venture into uncharted waters. But they recognize that the country's democratization process continues to be a difficult one, inevitably laced with controversy. Although satisfaction levels remain generally high, there is a near-universal desire for more rapid progress toward improved quality of life. This unease suggests the possibility that despite their legendary patience, Malians may eventually lose hope and faith in democracy unless economic growth accelerates.
Topic:
Democratization, Development, and Government
Political Geography:
Africa and Ghana

2689. Scenarios for the Insurgency in Iraq

Author:
Alan Schwartz
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
Three workshops explored hundreds of forces and factors relevant to insurgency outcomes and focused on key drivers to develop five alternative scenarios. These scenarios reflected the participants' perception that positive outcomes would be hard to achieve, and negative outcomes could be foreseen much more easily. The workshops' principal finding is that U.S. goals for Iraq and the region should be reexamined and scaled back. The administration's expressed goal of “an Iraq that is peaceful, united, stable, democratic, and secure, where Iraqis have the institutions and resources they need to govern themselves justly and provide security for their country” is possible only in the very long term. Avoidance of disaster and maintenance of some modicum of political stability in Iraq are more realistic goals—but even these will be hard to achieve without new strategies and actions. The scenarios include recommended adjustments to U.S. goals and strategies to achieve reduced expectations. Unfortunately, the United States is now in a position to influence but not to control outcomes; it will have to engage and enlist the cooperation of Iraq's neighbors to attain success. This report broadly outlines the strategies that appear best suited to the current situation and the unfolding futures the participants envisioned.
Topic:
Conflict Resolution, Development, and Peace Studies
Political Geography:
United States, Iraq, and Middle East

2690. From Dayton to Brussels: Constitutional Preparations for Bosnia's EU Accession

Author:
Jason Crosby and Don Hays
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The citizens of Bosnia are united in wanting EU accession and its benefits. However, the constitution as it stands will greatly inhibit Bosnia's ability to move toward accession. Under the current constitution, ethnically based political parties still can thwart the state and prevent Bosnia from entering the EU. The constitution vests power in two entities, the Federation and the Republika Srpska, granting most governmental functions to them and only the most limited powers to the central government. Despite numerous state-building reforms, it is questionable whether the state can implement the broad range of measures the EU requires for accession. With the high representative's departure scheduled for June 2007, the state's capacity to implement the accession requirements becomes critical. A recent report by the Venice Commission outlines the reforms necessary to prepare the state for the accession process. Only Bosnia's politicians can undertake the fundamental changes required for accession. In response to this challenge the leaders of the major political parties undertook a consensus-driven process facilitated by representatives of the Institute, the Public International Law and Policy Group, and the Dayton Project. The goal was to produce a package of constitutional amendments by October 2005 to strengthen the state. Over twelve months, representatives developed amendments clarifying group rights, individual and minority rights, and mechanisms for protecting the “vital national interests” of Bosnia's constituent peoples. They also included reforms to strengthen the government and the powers of the prime minister, reduce the president's duties, and streamline parliamentary procedures. The parties presented their agreement to parliament, and on April 26, 2006, the package failed by two votes to achieve the necessary two-thirds majority. To answer the question of where Bosnia-Herzogovina (BiH) goes from here, the parties decided to wait until after elections in October 2006 to resubmit the package to parliament, in hopes that its political alignment will change enough to ensure passage.
Topic:
Development and Politics
Political Geography:
Bosnia and Eastern Europe