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31. Making the Millennium Challenge Corporation Compact Work for Sri Lanka

Author:
Ganeshan Wignaraja
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
In April 2019, the Board of Directors of the Millennium Challenge Corporation (MCC) approved a compact program for Sri Lanka. This is a large five-year grant that was provided to Sri Lanka on the basis that it meets the MCC’s eligibility criteria of good governance, economic freedom, and investment in its citizens. It will be implemented by a team appointed by the Sri Lankan government, under the guidance of MCC. As the process has taken longer than expected, it is hoped that the MCC Board when they meet on 18 September 2019 will grant additional time for the MCC Sri Lanka Compact (MCC Compact) to be approved by Sri Lanka’s Cabinet. President Maithripala Sirisena has suggested that a decision would be taken after the upcoming Presidential elections in Sri Lanka in December 2019. Proponents argue that it can reduce bottlenecks in transport and commercial land administration. Meanwhile, critics of the MCC Compact raise a host of legal, environmental, and external political interference issues. As Sri Lanka prepared to make a decision on whether to proceed with the MCC Compact, a simple cost-benefit analysis of the MCC-Sri Lanka Compact from a national economic perspective is imperative.
Topic:
Governance, Economy, Investment, and Private Sector
Political Geography:
South Asia and Sri Lanka

32. Mongolia's Missing Oil, Gas and Mining Contracts

Author:
Robert Pitman
Publication Date:
02-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Many of the most important contracts for publicly owned oil, gas and minerals in Mongolia remain secret, despite government promises to make contracts public. A review of publicly available contracts in Mongolia suggests that contracts are unlikely to contain the kinds of information about a project that are commercially sensitive. Likewise, evidence suggests that there is no reason to think that confidentiality clauses prevent disclosure of contracts. Contracting regimes in Mongolia are complex and therefore in many instances, it will be necessary to publish several contracts and associated documents for each project. There are five steps that the government can take to make contracts public: 1) explain the contracting landscape, 2) define the scope of disclosure, 3) establish a contract disclosure rule, 4) make contracts accessible, and 5) support contract use.
Topic:
Civil Society, Government, Oil, Gas, Journalism, Tax Systems, Mining, Private Sector, and Contracts
Political Geography:
Mongolia and Asia

33. Considerations for Taxing Myanmar’s Large-scale Mining Companies

Author:
David Manley, Sebastian Sahla, Ko Ko Lwin, and Khin Saw Htay
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Despite geological potential, Myanmar's mining sector has attracted few large-scale companies to date and the sector generates little government revenue. The authors of this briefing present the challenges the Myanmar government has faced in designing an effective mining tax regime. They suggest three ways in which the government could attract greater investment and allow the people of Myanmar to maximize benefits from the potentially significant mineral wealth of their country. The briefing is informed by the Natural Resource Governance Institute’s engagement with Myanmar’s Ministry of Natural Resources and Environmental Conservation (MONREC), helping the ministry implement strategic reforms.
Topic:
Natural Resources, Tax Systems, Mining, Private Sector, and Revenue Management
Political Geography:
Southeast Asia and Myanmar

34. Russian Private Military Companies: Continuity and Evolution of the Model

Author:
Anna Borshchevskaya
Publication Date:
12-2019
Content Type:
Policy Brief
Institution:
Foreign Policy Research Institute
Abstract:
Russian private military companies or contractors (PMCs) have received much attention in recent years, but the Russian state has a long history in utilizing such groups. Under Vladimir Putin, however, this model is growing, evolving, and expanding. This study reviews the history of semi-state military forces in Russia and explains the unique way the Russian state utilizes PMCs, which is different from how Western governments utilize private contractors. An important aspect of PMCs is that they are officially illegal under Russian law. The study then traces the rise of the PMC model under Putin. It notes that while plausible deniability is a major reason for Moscow to utilize PMCs, it is also linked to other considerations, such as internal rivalries within the Russian government and other domestic reasons. Competition with the West drives the Kremlin’s use of PMCs. Paradoxically, the Russian PMC model demonstrates both state strength and weakness. The study reviews PMCs activities in Ukraine, Syria, and Africa, examines who joins these groups and under what circumstances, and concludes with policy recommendations.
Topic:
Non State Actors, Military Affairs, Private Sector, and Mercenaries
Political Geography:
Russia and Eurasia

35. Changing Role of Private Military Contractors after the Cold War | Soğuk Savaş Sonrası Dönemde Özel Askeri Şirketlerin Değişen Rolü

Author:
Selçuk Denek
Publication Date:
04-2019
Content Type:
Journal Article
Institution:
Department of International Relations, Karadeniz Technical University
Abstract:
In recent years, with the globalising world, countries are trying to obtain too many military equipment such as nuclear weapons, continental rockets, and high-tech armours. On the other hand, every service is becoming more private which used to belong to the government in history. After the cold war era, security details such as border security, presidential protection, abroad activities, intelligence, and security strategy are provided by private organisations. This study tries to explain what is ‘cold war? , what is a private military company? What is the change for the private military industry after cold war?’ | Küreselleşen Dünya ile birlikte son yıllarda birçok ülke nükleer silahlar, kıtalararası balistik füzeler ve yüksek teknolojili silahlar gibi gereğinden fazla askeri materyale sahip olmaya çalışmaktadır. Diğer taraftan, geçmişte devletlerinyapmakla sorumlu olduğu tüm hizmetler artık özel sektör tarafından yapılır hale gelmeye başlamıştır. Soğuk savaş döneminden sonra ise sınır güvenliği, devlet başkanlarının korunması, sınır ötesi faaliyetler, istihbarat ve güvenlik stratejileri gibi askeri konular artık özel sektör kuruluşları tarafından karşılanmaktadır. Bu çalışmada “soğuk savaşın ne olduğu”, “özel askeri şirketlerin ne anlama geldiği” ve “soğuk savaş sonrası dönemde özel sektörün sunduğu güvenlik endüstrisinin değişimi” ile ilgili konular açıklanmaya çalışılacaktır.
Topic:
Cold War, Weapons, Private Sector, and Military Contractors
Political Geography:
Global Focus

36. For-Profit Humanitarians: IKEA's Partnership with the Jordan River Foundation

Author:
Ammar A. Malik, Hamutal Bernstein, Edward Mohr, and Yasemin Irvin-Erickson
Publication Date:
09-2018
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
As the Syrian refugee crisis enters its eighth year, leveraging the private sector’s financial capital and capacity for innovation has emerged as an attractive solution to protracted displacement. But little evidence exists on the feasibility and effectiveness of this approach. This case study highlights a unique type of private-sector engagement in which mainstream business interests align with the needs of refugees and host communities. The IKEA–Jordan River Foundation (JRF) partnership demonstrates how diverse stakeholders can identify synergies, overcome legal and practical barriers, and sustain collaborations through effective management structures.
Topic:
Humanitarian Aid, Refugees, Business, Displacement, and Private Sector
Political Geography:
Middle East, Syria, and Jordan

37. Private-Sector Humanitarians? New Approaches in the Global Refugee Response

Author:
Ammar A. Malik, Edward Mohr, and Yasemin Irvin-Erickson
Publication Date:
10-2018
Content Type:
Research Paper
Institution:
Urban Institute
Abstract:
With the global displaced population exceeding 68 million, the global humanitarian response system is under unprecedented stress. With widening funding gaps and no resolution in sight, new solutions are needed to address the needs of over 68 million displaced people worldwide. The private sector’s innovative and financial capacity is emerging as one such avenue, resulting in dozens of partnerships with local and international nonprofits. Depending on local policy environments, such working arrangements create both opportunities and risks for partners and hosts. This report is an attempt to learn lessons from existing experiences and offer insights on what works under given circumstances. Through desk research on existing partnerships, semistructured interviews with key stakeholders, site visits with partners in Jordan and Uganda, expert roundtables, and public discussions, we gather insights on both conceptual and practical aspects of partnerships benefiting refugees. We introduce a conceptual framework on the variety of options available to partners and offer recommendations for organizing win-win partnerships in the future.
Topic:
Science and Technology, Immigration, Refugees, International Development, Displacement, and Private Sector
Political Geography:
Uganda, Africa, Middle East, and Jordan

38. The Invisible Hand? Critical Information Infrastructures, Commercialisation and National Security

Author:
Riccardo Alcaro, Giampiero Giacomello, and Johan Eriksson
Publication Date:
05-2018
Content Type:
Journal Article
Journal:
The International Spectator
Institution:
Istituto Affari Internazionali
Abstract:
Corporatisation of critical information infrastructure (CII) is rooted in the ‘privatisation wave’ of the 1980s-90s, when the ground was laid for outsourcing public utilities. Despite well-known risks relating to reliability, resilience, and accountability, commitment to efficiency imperatives have driven governments to outsource key public services and infrastructures. A recent illustrative case with enormous implications is the 2017 Swedish ICT scandal, where outsourcing of CII caused major security breaches. With the transfer of the Swedish Transport Agency’s ICT system to IBM and subcontractors, classified data and protected identities were made accessible to non-vetted foreign private employees – sensitive data could thus now be in anyone’s hands. This case clearly demonstrates accountability gaps that can arise in public-private governance of CII.
Topic:
Privatization, Science and Technology, Infrastructure, Public Sector, and Private Sector
Political Geography:
Europe, Sweden, and European Union

39. Russia’s National Oil Champion Goes Global

Author:
Edward C. Chow and Andrew J. Stanley
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
After the Soviet Union collapsed and Russia was roiled by political and economic chaos, many state-owned assets were privatized based on political connections and corrupt practices. The oil sector was a particularly attractive, but by no means the only, target for these privatizations. By the end of the 1990s, almost all of Russia’s oil production was privately owned. In spite of continued nontransparency, the oil sector began to resemble a competitive market with private investors introducing Western technology, financial accounting, and operating and management practices. It also started to attract major foreign investments. The remaining state oil assets were managed by a sleepy state enterprise named Rosneft that, in spite of its name (Russian Oil), produced less than 5 percent of Russia’s oil. Today, majority state-owned Rosneft produces almost half of Russia’s oil. Its daily oil production of 4.6 million barrels, according to its last reported quarterly results, is double that of the world’s largest oil company by market capitalization, ExxonMobil, which last reported daily liquids production of 2.3 million barrels. Rosneft’s rapid rise coincided with the rule of Vladimir Putin, who first became president of Russia in 2000. Its production increases were built largely on the backs of controversial acquisitions of assets previously held by private companies such as Yukos, TNK-BP, and Bashneft. Rosneft’s acquisition spree accelerated after Putin’s close associate and Russia’s then-deputy prime minister Igor Sechin became chairman of its board of directors in 2004. Sechin left government in 2012 to take over as Rosneft’s chief executive officer. Rosneft’s board of directors is now chaired by former German chancellor Gerhard Schroeder. Rosneft’s transformation as Russia’s national oil champion is consistent with Putin’s policy of regaining state control over the commanding heights of the Russian economy, which is more reliant on oil income today than the Soviet Union ever was. Rosneft is Russia’s largest taxpayer and contributed a quarter of government revenue in 2014. Until recently, Rosneft concentrated mainly on consolidating its dominance over the domestic oil patch. It is also Russia’s leading refiner and is increasing natural gas production for direct sales to domestic gas users, producing 67 billion cubic meters in 2016. In 2014, Russia was hit by the twin shocks of a global oil price collapse and Western economic sanctions enacted after its aggression against Ukraine in the Donbas region and annexation of Crimea. These developments affected Rosneft severely since it involved the value of the commodity it produces and sells and restricted Rosneft’s access to international financing when it was heavily indebted from the aforementioned acquisitions. A normal company might hunker down, repair its balance sheet, and wait for external conditions to improve. Instead Rosneft has done the exact opposite and expanded its international business aggressively. As part of the 2014 U.S.-led sanction efforts, Igor Sechin, as the leading figure of Russia’s largest petroleum company and his having “shown utter loyalty to Vladimir Putin,” was directly sanctioned. Further Russian sanctions enacted by Congress in 2017 called on the U.S. Department of the Treasury to submit a detailed report on senior political figures, oligarchs, and parastatal entities as determined by their “closeness to the Russian regime and their net worth.” While the unclassified version of the report released to Congress on January 29 included Igor Sechin, the report was poorly received and largely regarded as nothing more than a “rich list” by Russian experts. However, the report also contains classified annexes, including a list of parastatal entities and supporting analysis, which by definition would have included Rosneft. Although Rosneft’s rapid international expansion is too recent to assess definitely, this paper describes some of Rosneft’s overseas ventures and explores possible motivations, economic and political, behind them.
Topic:
Energy Policy, Oil, Foreign Direct Investment, Sanctions, Gas, Transparency, and Private Sector
Political Geography:
Russia, United States, Europe, and Eastern Europe

40. Urbanization in Sub-Saharan Africa Meeting Challenges by Bridging Stakeholders

Author:
Jamal Saghir and Jena Santorn
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Urbanization is transforming the world. According to the 2017 Drivers of Migration and Urbanization in Africa report by the United Nations, more than half of the global population now lives in urban areas. This figure is projected to increase to 75 percent by 2050, at a growing rate of 65 million urban dwellers annually. Sub-Saharan Africa (SSA) is often regarded as the world's fastest urbanizing region. Urban areas currently contain 472 million people, and will double over the next 25 years. The global share of African urban residents is projected to grow from 11.3 percent in 2010 to 20.2 percent by 2050. SSA’s 143 cities generate a combined $ 0.5 trillion, totaling 50 percent of the region’s gross domestic product (GDP). Urban centers play a critical role in fighting poverty and sustaining economic growth, and are often considered the future of prosperity in the developing world. While strategic urbanization is highly dependent on national macroeconomic policymaking, city governments, the private sector, development practitioners, and urban planners also have critical roles to play. Linking the urbanization management efforts of different stakeholders presents an opportunity for economic growth in a region undergoing an immense demographical shift.
Topic:
Demographics, Migration, United Nations, Urbanization, Economic growth, and Private Sector
Political Geography:
Africa and Sub-Saharan Africa