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111. Nine Months of COVID-19: The Impact on South Asia

Author:
Aparna Pande and Husain Haqqani
Publication Date:
11-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Since February of 2020, the eight countries of South Asia have been contending with the devastating effects of the coronavirus pandemic. The region has seen the third-highest death rate in the world from the virus, which originated in Wuhan, China, and brought long-term health impacts the medical community is only beginning to recognize. The economic consequences of COVID-19 on South Asia are proving to be even greater than the healthcare challenges in the region. Different South Asian countries have dealt with the pandemic in various ways, but the economic costs overall seem to be higher than the healthcare consequences. A lot has happened in the world’s most populous region since the “Crisis from Kolkata to Kabul: COVID-19’s Impact on South Asia” report was published in May 2020. This document serves as an update on the progression of the pandemic in South Asia.
Topic:
Economy, COVID-19, and Health Crisis
Political Geography:
South Asia and Asia

112. Towards an Even Stronger Japan-US Alliance

Author:
Taro Hayashi
Publication Date:
11-2020
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Sixty years ago, Japan and the United States signed the Treaty of Mutual Cooperation and Security marking the beginning of the Japan-US Alliance as we know it today. The two countries have made a commitment to core values such as democracy, respect for human rights, and a rules-based international order. The Alliance has played an integral role in ensuring the peace and security of the two countries as well as realizing their shared vision of a free and open Indo-Pacific through security cooperation.
Topic:
Bilateral Relations, Economy, Alliance, and COVID-19
Political Geography:
Japan, Asia, North America, and United States of America

113. An Analysis of the Legal Framework for Public Debt Management in Zambia

Author:
Florence Banda-Muleya, Mbewe Kalikeka, Zambwe Shingwele, Philip Ngongo, and Shebo Nalishebo
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Zambia’s current legal framework for public debt management is inadequate. The high level of external debt standing at US$11.2 billion and domestic debt at K80.2 billion due to fast pace of debt contraction; the resulting heightened risk of debt distress; and the weak implementation of the 2017-2019 Medium Term Debt Strategy (MTDS), raise questions on the adequacy of the laws that govern public debt management. Now more than ever, with Zambia quickly headed to its first bullet repayment on its Eurobond debt, the country needs to enhance its legal framework on Public Debt Management (PDM).
Topic:
Debt, Government, Economy, and Public Debt
Political Geography:
Africa and Zambia

114. Towards an EU Hydrogen Economy: Policy and Energy Security Perspectives

Author:
Mariana Liakopoulou
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Hydrogen is positioned as a strong candidate for fulfilling the carbon-neutrality objective set out in the European Green Deal, provided that it is able to compete on a level-playing field with other technologies favoring sector coupling. Pushing the envisioned hydrogen economy past its tipping point necessitates a conducive EU regulation, repurposing of existing large-scale EU networks, along with additional investments, as well as strategic partnerships with the EU’s third-country suppliers. This paper aims to outline the role of hydrogen as a component of the decarbonization of the European natural gas sector, in the context of an integrated energy system.
Topic:
Security, Climate Change, Energy Policy, European Union, Economy, and Hydrogen
Political Geography:
Europe

115. It’s Time for a New Deal

Author:
Constantine Michalopoulos
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The prospects of the Greek economy are mostly good with growth continuing for the fourth straight year. But there is a sense of disappointment, as the recovery has not been very strong and pre-crisis income levels will not be regained for another decade. There are two main reasons for the sluggish recovery: The European creditors have imposed on Greece the requirement to run a primary budget surplus of 3.5% of GDP for five years to ensure that they get repaid—a requirement that constricts growth of the Greek private sector—through heavy taxation of consumers and business. And domestic investment is sluggish, although there are plenty of unutilized resources, such as those provided by the European Structural Funds. There is a need for a new deal with the European Institutions: the Europeans should be more relaxed about getting repaid because of Greece’s much improved access to the European capital markets and be willing to accept a Greek government commitment to a significantly lower primary budget surplus for the next several years. In exchange the Greek government should commit to a commensurate increase in domestic investment through reforms of the banking sector as well as greater public sector investment spending.
Topic:
Government, Financial Crisis, Economy, Economic growth, and Public Spending
Political Geography:
Europe and Greece

116. Mexico and the United States: a new beginning | México y Estados Unidos: un nuevo comienzo

Author:
Agustín Barrios Gómez, Henry Cuellar, Juan Carlos Baker, and Kenneth Smith
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Mexican Council on Foreign Relations (COMEXI)
Abstract:
North America started 2020 as a bloc of three democratic countries with shared values that trade freely in the context of regional peace and cooperation. We are nearly 500 million North American citizens who came together to sign the North American Free Trade Agreement (NAFTA) of 1994 and its successor, the United StatesMexico-Canada Agreement (USMCA) of 2018, providing a legal framework for commercial freedom on our continent. The world often conducts its affairs with a zero-sum game mentality, meaning that one country’s gain is another’s loss. This is why agreements like NAFTA, in 1994, and the USMCA, today, are particularly valuable. It is also the reason that we must not take them for granted. The effort invested in creating the USMCA was born precisely from the understanding of a fundamental idea: restricting the liberty of our people to trade freely is a mistake. It was not an easy case to make. The current U.S. president based his political campaign on animosity towards Mexico, in particular, and against exchange with the world, in general. However, he was led to a position of saving free trade in North America by the millions of his fellow citizens who saw their economic livelihood threatened by protectionism and the possibility of severing close economic ties with their neighbors. At the same time, a sector of Mexican society that has always been antagonistic to two pillars of trade in our continent: integration with the United States, and economic freedom, came to power in Mexico. This raised the specter of a challenge to free trade from Mexican socialists. However, the overwhelmingly positive results and obvious benefits of NAFTA for Mexico were of such magnitude, that protectionism was not an issue in the return to power of the nationalist Left. It now looks like a given, but both in the case of the U.S. and in the case of Mexico, the survival of the framework of openness born on January 1, 1994, is a testament to enormous political and economic success. In a world that increasingly favors the Pyrrhic victories of political symbolism, the triumph of reason over nativist fervor is well worth highlighting. For each of the three countries, the USMCA was the way to protect these gains, but each country placed its own emphasis on their priorities. Canada, currently the most politically stable country of the three, clearly sought to uphold a system that provides the country with access to its main market, as well as to another market (Mexico) in which it has fewer interests, but which is still important. The United States, the former architect of the world order that promoted economic freedoms for 71 years (1945-2016), was set to become its spoiler. Fortunately for the general interest, despite the rhetoric, with the USMCA it was possible to find a compromise that safeguarded the gains made from economic integration since 1994. Sectors of society, such as farmers and border communities which had never organized to defend their markets, got together to successfully make their case directly to the Administration. Mexico’s interests were clearer: manufactured exports are the most dynamic and competitive part of its economy. They not only provide a major source of hard currency, but in conjunction with the imports made possible by income from exports, they support the internal market, as well. For Mexico, even more than for Canada, protecting free trade of North America was imperative. The result was an Agreement that protected the benefits of North American commercial freedom, at the same time as it brought certain aspects up to date. It also addressed a number of the concerns that had been raised by blue collar workers in the United States, particularly pertaining to the automotive sector. This document helps us understand these changes and provides perspective from three authors who were directly involved in making the USMCA a reality.
Topic:
Treaties and Agreements, Bilateral Relations, Economy, NAFTA, Free Trade, Trade, and USMCA
Political Geography:
North America, Mexico, and United States of America

117. Eurasia goes to Africa

Author:
Amanda Paul, Ivano di Carlo, and Elem Eyrice Tepeciklioğlu
Publication Date:
11-2020
Content Type:
Book
Institution:
European Policy Centre
Abstract:
Any new Africa policy from the EU and US should take into account the growing influence of China, Russia and Turkey in the continent and aim to even the scales. To succeed, they must develop a new narrative on Africa and finally recognise it as a genuinely equal partner on the global stage. Africa is a dynamic and diverse continent going through fundamental economic, political and security changes. While the EU and the US remain important partners for Africa, they are no longer the only players in town. New – and not so new – actors have recognised Africa's potential and are trying to use it to their advantage. China, Russia and Turkey in particular, whose presence has broadly been welcomed by African nations, have all been steadily expanding their political and economic clout in the continent over the past few years. The EU and US must, therefore, adapt their policies and approaches to the new reality that is unfolding in Africa. To better understand China’s, Russia’s and Turkey’s objectives, the Friedrich-Ebert-Stiftung's (FES) EU Office in Brussels and the European Policy Centre (EPC) set out to conduct an in-depth analysis of the three countries' ties with Africa. The results of this research project, entitled “Eurasia goes to Africa”, are collected in this book. The authors take a closer look at China's, Russia's and Turkey's economic and political interests in the continent; their involvement in the security landscape; the effectiveness of their soft power tools, including in education, media, religion, and humanitarian and development aid; and how Africans judge their growing presence.
Topic:
Foreign Policy, Diplomacy, European Union, Economy, and Soft Power
Political Geography:
Africa, Russia, China, Eurasia, Turkey, and United States of America

118. The circular economy: Going digital

Author:
Annika Hedberg and Stefan Sipka
Publication Date:
03-2020
Content Type:
Book
Institution:
European Policy Centre
Abstract:
The EU is currently engaged in two transformations that could change our economy and society for the better. If managed well, and in unison, the circular economy and the digital revolution could help the EU address its greatest challenge: to build a sustainable, green economy that is competitive on the global stage. Digitalisation will not automatically lead to greater sustainability. Nor is the inclusion of cutting-edge technologies in the circular economy a given. But with the right encouragement and incentives from the EU, data and digitally-enabled solutions can accelerate and boost the transition to a sustainable circular economy. They can enhance connectivity and information sharing; make business models, products and processes more circular; and empower citizens and consumers to contribute to the transition. They can be used to improve different segments of the circular economy, including design, production, consumption, reuse, repair, remanufacturing, and overall waste management and recycling. Combining the circular and digital agendas carries enormous potential. It would be a shame to waste it.
Topic:
Science and Technology, European Union, Digital Economy, and Economy
Political Geography:
Europe

119. COVID-19: A turning point for the EU?

Author:
Herman Van Rompuy
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
European Policy Centre
Abstract:
President Emeritus of the European Council Herman Van Rompuy weighs up the long-term lessons we should take away from the ongoing corona crisis. He looks at the impact of COVID-19, and the quarantine measures many governments have subsequently taken to stop its spread, on our economy and societies, on the fate of multilateralism, and the fight against inequality and global warming. Honestly assessing the response of the European Union, EPC President Van Rompuy finds a hopeful development in the compromise the Eurogroup was able to find on 9 April but argues that it is just a first step. He also warns of the ghosts of crises past. Old rivalries and national prejudices are rearing their heads again, and not only will it prevent the EU member states from finding a way out of the crisis but it could also be detrimental for the Union in the long run.
Topic:
European Union, Economy, Crisis Management, and COVID-19
Political Geography:
Europe

120. Europe’s path to strategic recovery: Brace, empower and engage

Author:
Giovanni Grevi
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
European Policy Centre
Abstract:
EU leaders should rise to the challenge posed by the COVID-19 pandemic and set the Union on the course of not only economic, but fully-fledged strategic recovery. This means strengthening Europe’s cohesion and resilience; leveraging Europe’s untapped potential to carry its full weight on the global stage; and engaging in upholding rules-based cooperation. If Europe fails to measure up to the task, the EU will drift towards more political fragmentation and strategic dependence. The health crisis has not only heightened but also highlighted Europe’s vulnerability to global challenges and disorder. The pandemic risks amplifying geopolitical competition, which is undermining multilateral cooperation at a time when sound management of our interdependence is crucial. Under such conditions, the dysfunction of the global order may lead to irretrievable system failure, with dire consequences for all. Europeans should not only craft a decisive response to the pandemic but also use it as a springboard to reinforce the EU and its domestic power base on the global stage. The EU and its member states must prepare to cope with power politics without endorsing its logic. They should become more strategic and, where need be, more autonomous. Discussion on a recovery fund should not be limited to the financial dimension, but instead thought of in terms of ‘grand strategy’. Socioeconomic recovery is the fuel of political cohesion, which in turn is the engine of a stronger Europe in the world. A more powerful Europe is the only vehicle geared to protect EU citizens from the many external challenges and project Europe’s interests on the global stage.
Topic:
European Union, Economy, Recovery, Pandemic, COVID-19, and Health Crisis
Political Geography:
Europe