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271. Urbanisation and Social Cohesion: Theory and Empirical Evidence from Africa

Author:
Tekalign Gutu Sakketa
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Africa is currently undergoing the most rapid urbanisation process globally, and this trend is forecast to persist in the coming decades. Many believe that this ongoing rapid urbanisation process is changing the social fabric and reshaping social cohesion. This study explores the theoretical channels through which urbanisation affects social cohesion and provides empirical evidence of their interrelationship. Specifically, the study asks: given the vast social, economic, cultural, political and environmental transformation associated with urbanisation, is there a link between urbanisation and social cohesion? Combining a novel national panel data set on social cohesion from Afrobarometer with urbanisation and other socioeconomic data from world development indicators, the study shows that urbanisation is negatively correlated with the three attributes of social cohesion, namely trust, inclusive identity, and cooperation for the common good. These associations persist even after controlling for country socioeconomic conditions and year fixed effects. Moreover, the magnitude of this association varies across attributes, with trust and inclusive identity showing a higher correlation than cooperation for the common good. Urbanisation-induced change in economic and environmental structure, such as employment, infrastructure, and pollution, are the main channels affecting social cohesion. Overall, the findings underscore the need for inclusive urban development and policies focused on ameliorating social fragmentation resulting from rapid urbanisation unfolding across Africa.
Topic:
Development, Urbanization, and Social Cohesion
Political Geography:
Africa

272. Are Global Value Chains for Sale? On Business-State Relations in the MENA Region

Author:
Nora Aboushady and Chahir Zaki
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
We use new data on political connections from the World Bank Enterprise Surveys to examine the impact of connections on firms’ participation in global value chains (GVCs) for six MENA countries (Morocco, Tunisia, Egypt, the West Bank and Gaza, Jordan, and Lebanon). In addition to political connections, we construct several measures of “political influence” based on available data on lobbying and grand corruption. We also explore whether political connections help firms overcome barriers to trade and investment and increase their participation in GVCs at the extensive and intensive margins. Our findings suggest that political connections do matter for firms’ GVC participation. The impact is more pronounced for firms that combine political connections with informal payments to influence policymaking. Our findings on the significance of trade and investment barriers for GVC participation for different categories of firms’ political influence are – however – inconclusive.
Topic:
Corruption, Development, Politics, World Bank, Business, Investment, Trade, and Global Value Chains
Political Geography:
Middle East, Palestine, Gaza, North Africa, Lebanon, Egypt, Jordan, Morocco, Tunisia, and West Bank

273. Chinese Firms and Adherence to Global Environmental, Social and Governance (ESG) Standards in Developing Countries: Is there Potential to Create Common Ground?

Author:
Mike Morris
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This paper focuses on analysing how Chinese firms operate in Latin America, Asia and Africa in regard to ESG (environmental, social and governance) standards and sustainability issues. How do they respond to the increasing global value chain requirement to incorporate and maintain ESG standards? Is their space for an alignment between Western development cooperation ESG policies, frameworks, strategies and practices and Chinese political and economic stakeholders in the developing world? The paper uses a variety of case studies covering Chinese firms (disaggregated into SOEs (state-owned enterprises) and large, medium and small private sector firms) operating in various sectors in countries across the developing world. It uses a three dimensional framework to analyse different types of Chinese firms in terms of value chain operations covering many of the ESG standards they are required to meet: 1. Supply chain relations (i.e. approach to supporting upgrading of local suppliers); 2. Internal firm processes (i.e. approach to local labour, training and upskilling); 3. Social licence to operate (i.e. approach to meaningfully engaging with local communities taking account of their social and economic needs).
Topic:
Development, Environment, Governance, Business, and Supply Chains
Political Geography:
Africa, China, Asia, and Latin America

274. Contextualising Social Cohesion I: An Overview of Concepts in Africa

Author:
Eli Wortmann-Kolundžija
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The social fragmentation of societies is one of the greatest challenges for peace, democracy and human rights worldwide. For some years now, observers have been witnessing ever-stronger tendencies towards social division, also in Western societies, which had been believed to be united for so long. Rising inequality, the rejection of previously shared values and growing scepticism towards public institutions suggest that social cohesion is at risk. Against this background, it seems more important than ever to understand what factors hold a society together – and when such cohesion is most vulnerable. Protecting and strengthening social cohesion has therefore become an objective of many activities at the local, national and international levels, and academics have started to develop methodologies on how to measure social cohesion (see, with further references: Leininger et al., 2021). This paper aims: • to give a systematic overview of the literature on African concepts of social cohesion; • to introduce the discourse around African concepts and to see which relevant concepts of social cohesion can be located in African societies; • to analyse in more detail some key African concepts and their core elements and to see which conceptual dimensions and insights on determinants of social cohesion differ from the mainstream, while inviting scholars to add further to this listing; and, in particular • to gain a better understanding of the academic discourse on social cohesion in Africa by analysing the concepts, determinants, origins and context of social cohesion theories as well as the risk of Western bias in identifying concepts for social cohesion in the African context. One of the questions that inspired the present research project is how we could better understand which relevant concepts of social cohesion in African societies are particularly emphasised by African scholars and how “Western” concepts of social cohesion relate to the various African academic approaches to the topic.
Topic:
Development, Institutions, Literature Review, and Social Cohesion
Political Geography:
Africa

275. Development Finance at a Turning Point: Effects and Policy Recommendations

Author:
Kathrin Berensmann, Sabine Laudage Teles, Christoph Sommer, and Yabibal M. Walle
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Development finance is at a turning point, as the macroeconomic environment has changed profoundly and the financing gap for low- and middle-income countries has widened. The events that led to this new situation are the multiple crises that the global economy is facing, such as the climate crisis, the COVID-19 crisis and the war in Ukraine. As a result, interest rates have risen sharply over the past year and are not expected to decline anytime soon. High interest rates further restrict low- and middle-income countries’ access to international financial markets by making borrowing more expensive. At the same time, debt levels in several countries are rising to levels that are almost impossible to repay. Poorer countries find themselves in a trap where financing the Sustainable Development Goals (SDGs) becomes a distant goal for them. To “get back on track” in financing the 2030 Agenda and the SDGs, a number of reform proposals have been put forward within several processes and initiatives, including the Financing for Development (FfD) process, the Bridgetown Initiative and the Macron-led Paris Summit. Despite being initiated by different actors, these proposals all highlight the importance of reforming the international financial architecture in view of the changed macroeconomic environment. The Hamburg Sustainability Conference in June 2024, the United Nation’s Summit of the Future in 2024 and the next FfD Conference in 2025 should be used to strengthen and accelerate ongoing reform processes and come up with new, innovative and bold proposals to reshape development finance in these challenging times. Against the background of the multiple crises and its effects, our key recommendations for the reform of development finance are as follows.
Topic:
Debt, Development, Reform, Finance, Sustainable Development Goals, and Multilateral Development Banks (MDBs)
Political Geography:
Germany and Global Focus

276. Green Jobs and the City: Towards a Just Transition in Developing Countries

Author:
Alexander Kleibrink, Anna Pegels, Michael Fink, and Wolfgang Scholz
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This policy brief examines actions for a just transition of local job markets in developing countries. We identify building blocks for shifting from carbon-intensive towards green jobs in this transition. Green jobs in cities are key to ensure a just transition of local employment markets, both formal and informal, and make cities function more sustainably. They are part of a wider inclusive green economy aiming at carbon-neutrality and resource efficiency with a focus on human well-being and social equity while paying special attention to local nature-based solutions. The transition will create winners and losers. Both need to be managed if the process and outcomes are to be just.
Topic:
Climate Change, Development, Economy, and Green Jobs
Political Geography:
Global Focus

277. Strengthening Social Cohesion in Conflict-Affected Societies: Potential, Patterns and Pitfalls

Author:
Fletcher D. Cox, Charlotte Fiedler, and Karina Mross
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Bilateral and multilateral donors are increasingly focusing on strengthening social cohesion in efforts to build and sustain peace in conflict-affected societies. What does promoting social cohesion mean with respect to inter­national engagement? This policy brief provides an overview of the “social cohesion” approach, explains how it applies to conflict-affected and fragile contexts, and intro­duces a typology of common interventions. It discusses the added value of taking a social cohesion approach to development and peacebuilding practice, as well as challenges policymakers and practitioners may encounter when using it. Social cohesion can be understood as positive relations among individuals and groups (the horizontal dimension) and between society and the state (the vertical dimension). While fostering, rebuilding or sustaining cohesion are challenges for any society, they are particularly difficult in conflict settings where divisions fuel violence and violence reinforces divisions. We argue that taking a social cohesion approach in divided, conflict-affected societies offers several advantages. First, it has the potential to focus intervention on less tangible aspects of conflict – drawing attention to overlooked grievances and bringing tensions between groups and the state into focus. Second, it helps integrate a peacebuilding lens in a broad variety of policy spaces. Third, it helps policymakers to integrate citizen perspectives into develop­ment strategies and to focus on the provision of quality peace for all citizens. Taking a social cohesion approach, however, also brings challenges. It may be sensitive for external actors to address social grievances, identity-based divisions and power relations. Dominant groups may feel threatened in their position of power and push back against these attempts, or tensions among historically marginalised groups may cause friction. Donors may experience backlash against programmes that directly address sensitive topics. At the same time, if the intent is to take a transformative approach to building social cohesion, it may be difficult for donors to maintain a neutral stance. Social cohesion programmes may risk increasing tension in the short term, but to restore inter-group trust and state legitimacy over the long term, it might be necessary to confront and accept tension.
Topic:
Development, Engagement, Social Cohesion, Donors, and Development Policy
Political Geography:
Global Focus

278. Cotton Made in Africa: A Case Study of Sustainable Production through Responsible Consumption

Author:
Roger Peltzer and Michael Brüntrup
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Responsible consumption and production are key to sustainable development, and are therefore a Sustainable Development Goal (SDG 12) in their own right. Consumption and production patterns also need to be socially responsible and economically viable. Private-sector requirements and state supply chain regulations, which have become more widespread in recent years, are designed to ensure that products consumed in high-income countries but manufactured (at least partially) in low-income countries are produced in line with certain social and environmental standards. Although progress has been made, many questions remain, particularly regarding whether the local social and economic impacts are sufficient. Cotton made in Africa (CmiA) is a certification initiative within the textile industry. Established 18 years ago as part of one of the largest public-private partnerships of German Development Cooperation with private foundations and private companies around an agriculture-based supply chain, CmiA – like its sister scheme the Better Cotton Initiative (BCI) – seeks to ensure compliance with specific environmental and social conditions in the cotton production process. Wherever it is implemented and monitored, the CmiA-standard provides retailers and consumers with the assurance that the cotton in the textiles and garments in question has been produced in line with CmiA-requirements. Up to now, about one million smallholder households with six to seven million family members in Africa produce under the label. This Policy Brief reflects on the impact that the introduction of CmiA has had on certified farmers, as well as on the challenges facing this standard following its successful market launch, and draws broader lessons learned for sustainability standards. The key findings are as follows: • CmiA shows that sustainability standards do not only work for high-priced niche markets but can also be implemented in the mass market. • While cotton is a non-food cash crop, the revenues it generates can boost food security among smallholders via the income channel and can also promote local food production through a number of other impact channels. • Standard-setting must be accompanied by support for farmers so that they are able to comply and activate impact channels. It remains a huge challenge not only to guarantee social and ecological standards but also to achieve a “living income” for smallholder farmers. • For all the benefits of publicly funding the start-up phase of implementing sustainability standards, it must be ensured that these standards are subsequently financed from the value chain itself. Textile retailers and consumers ultimately have to pay for the goods they consume and which have been manufactured under sustainable conditions. • As the mass-market implementation of sustainability standards takes time and patience, we cannot expect to see dramatic improvements in the local living conditions and incomes of the farmers in the short to medium term. Instead, this will require continuous investment in smallholder production and in the local environments over many years. • Transitioning from pesticide-intensive production to a system that does not use such products without major productivity losses is challenging but seems feasible. • In order to determine whether, and to what extent, the wellbeing of smallholder farmers is increased by complying with sustainability standards, good and continuous impact assessment is needed and this must be adapted to the especially complex conditions of African smallholder agriculture.
Topic:
Development, Sustainability, Production, Consumption, and Cotton
Political Geography:
Africa

279. Implementation of the WTO Investment Facilitation for Development Agreement: Identification of Reform Needs and Development Policy Measures

Author:
Axel Berger, Ann Margret Bolmer, Florian Gitt, Zoryana Olekseyuk, and Marius Metz
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
More than 110 Members of the World Trade Organization (WTO), many of them developing countries and least-developed countries (LDCs), are negotiating a plurilateral Agreement on Investment Facilitation for Development (IFD). In contract to existing bilateral investment treaties that establish sweeping rules on investment protection and liberalisation, the IFD Agreement aims at increasing the transparency, predictability and efficiency of investment frameworks as well as improving inter-governmental coordination and international cooperation on investment matters. In view of the fact that WTO Members aim at concluding the negotiations by mid-2023, discussions are under way on how the IFD Agreement can successfully be implemented in developing countries, and LDCs in particular. The IFD Agreement includes a comprehensive section on Special and Differential Treatment, which grants developing countries and LDCs longer timeframes as well as technical assistance and capacity development to support implementation. The Agreement also foresees so-called needs assessments at the country level to evaluate countries’ readiness and support needs to implement the IFD Agreement. While such needs assessments have been extensively used in the context of the WTO Trade Facilitation Agreement (TFA), we lack insights into how such needs assessments can be operationalised in the context of investment facilitation and what kind of imple¬mentation challenges are prevalent, in particular in LDCs. To assess implementation gaps, barriers to successful implementation as well as national and international support actions, we conducted pilot needs assessments covering a selected group of IFD Agreement measures with a broad range of stakeholders in three LDCs, namely Lao People’s Democratic Republic (Lao PDR), Togo and Zambia. Our pilots indicate that 13 selected provisions of the IFD Agreement have not been sufficiently implemented across the three LDCs. In particular, 64 per cent of analysed provisions have only partially been implement, while the rest have not been implemented at all. These findings underline that, in order to benefit from the IFD Agreement, LDCs need substantial implementation support from the international community. The most striking, commonly identified barriers hindering the full implementation are lack of cooperation and coordination among investment-competent agencies, poor information management for investors as well as limited digitalisation and automatisation. To overcome these barriers, nationally identified actions may focus mainly on the creation of a single information portal for foreign investors and a single-window system to improve authorisation procedures, as well as a clarification of mandates and functions of relevant ministries and institutions. Our research also underlines the importance of a whole-of-government and multi-stakeholder approach. The establishment of a National Investment Facilitation Committee may prove to be an effective instrument to ensure coordination and communication between involved stakeholders. International support should complement national actions with technical assistance and capacity development in investment-related topics, improving information and communication technology (ICT) infrastructures and digitalised processes, as well as fostering the international exchange of best practices. Our pilot needs assessments emphasise that the WTO Secretariat and the negotiating Members should strengthen outreach activities to promote knowledge about the WTO IFD Agreement among national-level stakeholders. In general, our pilots underline that needs assessments are an important instrument for identifying persistent implementation gaps and tailoring technical assistance and capacity development to the demands of Members, especially LDCs.
Topic:
Development, Reform, Investment, WTO, and Development Policy
Political Geography:
Global Focus

280. Geopolitical Competition in the Indo-Pacific: Managing Development Cooperation

Author:
Ela Nath and Stephan Klingebiel
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This Policy Brief examines the geopoliticisation of development cooperation within the Indo-Pacific region. First, we discuss the emergence of Indo-Pacific strategies and how these intersect with geopolitics and development cooperation amongst traditional develop-ment actors such as the United States and the Euro-pean Union. Second, we examine how these narratives have shaped the development cooperation approaches of China and India, both significant geopolitical actors. Third, we look at how these dynamics have played out in key regions of the Indo-Pacific, especially Southeast Asia, South Asia, and the Pacific Islands. We argue that while geopolitical competition brings opportunity to these regions, this opportunity needs to be strategically managed to deliver positive development outcomes. Geopolitics has always been a factor in development debates and development cooperation historically, and we should not expect this to change (Power, 2019; Liao & Lee, 2022). In the last decade, this competition has heightened with China’s global rise – economically, strategically, and geopolitically. As China became perceived as a potential competitor to traditional global and regional powers such as the United States, the European Union, Japan, or Australia, we saw a rise in strategies to manage, balance, or counter this rise. Consequently, emerging Indo-Pacific frameworks and strategies are shaping and dominating the discourse on global geopolitics, including development cooperation. As a result of sharp geopolitical competition, develop-ment cooperation has become a contested space. China’s powerful rise and the subsequent proliferation of Indo-Pacific strategies to counter this rise are key drivers of this dynamic. While this competition can breed division, between and within countries and regions, it can also give rise to increased multipolarity, partner country agency, and positive competition towards development outcomes. Competition and the numerous new strategies, resources, and initiatives that come with it, can offer opportunity for partner countries to secure resources and commitment toward their own development agenda. Rather than being “forced” to choose sides, countries and regions can and are using geostrategic competition to their advantage. Competition provides choice, a seat at the table, and opportunities for decision-making. However, taking ownership and direction over these strategies and resources can challenge partner countries and regions. Hedging is one option but carries risks, especially when politics get in the way, and development gains may be subsequently compromised. While there is a plethora of Indo-Pacific strategies that articulate visions for the region and ways powers should strengthen economic, diplomatic, security, and development ties with the Indo-Pacific countries, Indo-Pacific countries themselves should also have their own strategies, which outline their vision and objectives for engagement with great powers and other actors who seek and vie for their partnership.
Topic:
Development, Geopolitics, and Strategic Competition
Political Geography:
Indo-Pacific