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51. South-East Asian Special Economic Zones Are Becoming Geopolitical

Author:
Fabio Figiaconi and Claudia Adele Lodetti
Publication Date:
07-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
According to the latest World Bank’s “Global Economic Prospects” publication, Covid-19 pandemic will have a negative impact on East Asia causing a -1,2% GDP’s reduction in 2020, that is the region’s first recession since 1998’s Asian financial crisis, while China is expected to slow to 1% this year. Among the various consequences that may materialise, the report highlights the disruption of the global and regional value chains. In addition, as stated by UNCTAD World Investment Report 2020 Foreign Direct Investments’ (FDIs) flows are expected to decrease globally by 40% in 2020 and are projected to decrease by a further 5 to 10% in 2021. This scenario would be detrimental for East Asia’s economies and especially for the network of Special Economic Zones (SEZs) located there, which have had and continue to play a fundamental part in the region’s growth. SEZs are intended as delimited areas within a country’s national borders where businesses enjoy a more favourable regulatory and fiscal regime than that of the national territory, with the aim to draw in FDIs, boost exports, increase trade balance and alleviate unemployment.
Topic:
Economics, Geopolitics, and Special Economic Zones
Political Geography:
Asia and Southeast Asia

52. Eastern Mediterranean: Testing Egypt’s Geopolitical Ambitions?

Author:
Alessia Melcangi
Publication Date:
07-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
After an uncertain political transition following the 2011 revolts, Egypt seems ready to reshape its geopolitical role in the Mediterranean area and fulfil its geostrategic goals, always maintaining their national security principle to be an essential objective of its domestic and foreign policy. The two main closely and interconnected scenarios, where the country’s strategic ambitions are projected, move from Libya to the contested waters of the Eastern Mediterranean. In particular the latter represents an area that, in recent years, has become a hotspot for the global energy market due to huge gas-field discoveries. It is enough to imagine how the fight for the control of these resources are shaping the region, elevating it to a potential geostrategic game-changer for the coastal countries such as Egypt.
Topic:
Economics, Natural Resources, Geopolitics, and Exports
Political Geography:
Middle East, Egypt, and Mediterranean

53. What the Mediterranean Means for Israeli Geopolitics

Author:
Ehud Eiran and Aviad Rubin
Publication Date:
07-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Although the Mediterranean was traditionally an afterthought in Israeli geopolitical thinking, the 2000s recorded a shift: Israel is turning to the sea. The Mediterranean is capturing a growing role in Israeli geostrategic thinking. This is in large part the result of the discovery and development of gas in the Mediterranean Sea beginning in the late 1990s. Developed rather quickly, these gas reserves made Israel energy self-sufficient, a significant geo-strategic transformation. Prior to these discoveries, energy was a serious concern. The state had no energy resources, and for decades found it challenging to secure supply in the face of Arab hostility. With the gas discoveries, Israel gained not only energy independence, but also an economic and political tool. Israeli agreements to export gas to Egypt, Jordan and the Palestinian Authority gave Israel important leverage. The gas discoveries in the Mediterranean further offered the possibility for export to Europe if indeed Israeli-Greek–Cypriote designs to build an undersea pipe will materialize. The new maritime energy source contributed to the expansion of the Israeli navy. Once a junior player in the Israeli armed forces, in 2013 the navy was entrusted by the government to protect the gas depots, despite the fact that they are held in private hands (including by non-Israeli corporations) and are outside of Israel’s territorial waters. The new task, alongside the expansion of the submarine flotilla (probably as part of a future nuclear deterrent against Iran), awarded the fleet a more important role in Israel’s national security establishment and resource allocation. It also allowed Israel to use the force for international cooperation and military diplomacy in the region. This turn to the sea also contributed to an emerging quasi-alliance with Cyprus and Greece, which includes, among many other areas, the possible joint gas export project, military exercises, and bi-annual trilateral summits between these countries’ leaders. Like its regional allies, Israel is affected by growing Chinese interest in the Mediterranean. Chinese corporations contracted the expansion of Israel’s two largest ports, Ashdod and Haifa. The latter was substantial enough to irk the US, whose navy used the Haifa port in the past for re-supply. Israeli and Chinese actors are in early phases of developing a Chinese funded, or owned, high speed train from Israel’s Red Sea port in Eilat to the Mediterranean port of Ashdod, that will serve as an alternate route for the Suez Canal portion of Beijing’s Belt and Road Initiative (BRI).
Topic:
Economics, Energy Policy, Geopolitics, and Refugees
Political Geography:
Middle East, Israel, Palestine, and Mediterranean

54. Geography and Resources: Maritime Borders in the Mediterranean

Author:
Nael Shama
Publication Date:
07-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
After many years of being the Middle East’s backyard, the Mediterranean has over the past decade become its flashpoint, hosting a toxic mishmash ofmilitarized conflicts, border disputes and energy competitions. If these divisions are not contained using constructive diplomacy and viable multiparty agreements, regional instability will continue to pose a threat to all Mediterranean littoral states.
Topic:
Economics, Natural Resources, Maritime, Conflict, and Geography
Political Geography:
Middle East and Mediterranean

55. Pandemic, informality, and vulnerability: Impact of COVID-19 on livelihoods in India

Author:
Surbhi Kesar, Rosa Abraham, Rahul Lahoti, Paaritosh Nath, and Amit Basole
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
We analyze findings from a large-scale survey of around 5000 respondents across 12 states of India to study the impact of COVID-19 pandemic containment measures (lockdown) on employment, livelihoods, food security and access to relief measures. We find a massive increase in unemployment, an equally dramatic fall in earnings among informal workers, large increases in food insecurity, depletion of savings and patchy coverage of relief measures. Two-thirds of our respondents lost work. The few informal workers who were still employed during the lockdown experienced more than a fifty percent drop in their earnings. Even among regular wage workers, half received either no salary or reduced salary during the lockdown. Almost eighty percent of surveyed households experienced a reduction in their food intake and a similar percentage of urban households did not have enough money to pay next month's rent. We also use a set of logistic regressions to identify how employment loss and food intake varies with individual and householdlevel characteristics. We find that migrants and urban Muslims are significantly worse off with respect to employment and food security. Among employment categories, self-employed workers were more food secure. The Public Distribution System (PDS) system was seen to have the widest reach among social security measures. However, even under PDS, 16 percent of vulnerable urban households did not have access to government rations. Further, half of the respondents reported not receiving any cash transfers (state or central). We conclude that much more is needed in the way of direct fiscal support that has been announced thus far by state and central governments in India.
Topic:
Economics, Labor Issues, Employment, Unemployment, Pandemic, and COVID-19
Political Geography:
India

56. The impact economy: balancing profit and impact

Author:
Dirk Schoenmaker
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Governments and companies can reinforce each other in their pursuit of sustainable development, which is based on three pillars: economic, social and environmental. An impact economy, in which governments and companies balance profit and impact, is best placed to achieve the United Nations sustainable development goals.
Topic:
Economics, Environment, United Nations, Governance, Sustainable Development Goals, Business, and Private Sector
Political Geography:
Global Focus

57. Forecasting exchange rates of major currencies with long maturity forward rates

Author:
Zsolt Darvas and Zoltan Schepp
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This paper presents unprecedented exchange rate forecasting results based upon a new model which approximates the gap between the fundamental equilibrium exchange rate and the actual exchange rate with the long-maturity forward exchange rate.
Topic:
Economics, Governance, Global Political Economy, and Exchange Rate Policy
Political Geography:
Global Focus

58. FDI another day: Russian reliance on European investment

Author:
Marta Dominguez-Jimenez and Niclas Poitiers
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Most foreign direct investment into Russia originates in the European Union: European investors own between 55 percent and 75 percent of Russian FDI stock. This points to a Russian dependence on European investment, making the EU paramount for Russian medium-term growth. Even if we consider ‘phantom’ FDI that transits through Europe, the EU remains the primary investor in Russia. Most phantom FDI into Russia is believed to originate from Russia itself and thus is by construction not foreign.
Topic:
Economics, Energy Policy, Foreign Direct Investment, Governance, Sanctions, European Union, and Global Political Economy
Political Geography:
Russia and Europe

59. The U.S.-China Trade War: Is There an End in Sight?

Author:
Simon Lester and Huan Zhu
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Donald Trump was a trade “hawk” long before he became president. In the late 1980s, he went on the Oprah Winfrey show and complained about Japan “beating the hell out of this country” on trade (Real Clear Politics 2019). As president, he has continued with the same rhetoric, using it against a wide range of U.S. trading partners, and he has followed it up with action (often in the form of tariffs). While many countries have found themselves threatened by Trump’s aggressive trade policy, his main focus has been China. As a result, the United States and China have been engaged in an escalating tariff, trade, and national security conflict since July 2018, when the first set of U.S. tariffs on China went into effect and China retaliated with tariffs of its own. In this article, we explore the U.S.-China economic conflict, from its origins to the trade war as it stands today. We then offer our thoughts on where this conflict is heading and when it might end.
Topic:
Economics, International Trade and Finance, Tariffs, Trade Wars, and Donald Trump
Political Geography:
China, Asia, North America, and United States of America

60. China Maritime Report No. 6: Djibouti: China's First Overseas Strategic Strongpoint

Author:
Peter A. Dutton, Isaac B. Kardon, and Conor M. Kennedy
Publication Date:
04-2020
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
This China Maritime Report on Djibouti is the first in a series of case studies on China’s “overseas strategic strongpoints” (海外战略支点). The strategic strongpoint concept has no formal definition, but is used by People’s Republic of China (PRC) officials and analysts to describe foreign ports with special strategic and economic value that host terminals and commercial zones operated by Chinese firms.
Topic:
Economics, Military Strategy, Military Affairs, Geopolitics, Navy, Oceans and Seas, Seapower, Chinese Communist Party (CCP), Port, and People's Republic of China (PRC)
Political Geography:
Africa, China, Asia, Djibouti, and East Africa