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131. Avatars of Checkbook Diplomacy: From the Afghan Jihad to the Arab Spring

Author:
Ibrahim Warde
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
​ The United States and Saudi Arabia lavished money and weapons on unsavory characters during the anti-Soviet jihad of the 1980s, giving little thought to the possibility of a blowback or boomerang effect—that they would in effect be funding and arming their future enemies. It is indeed ironic that the principal bankrollers of the jihad later became the main targets of offshoots of that jihad. A non-negligible part of the money and weapons sent by the United States to Iraq, in particular as part of the “Sunni awakening”, is now in the hands of extremists.With the near-exclusive focus on military developments, the financial front of the war on terror is all but ignored. This article traces the evolution of checkbook diplomacy in conflicts involving the Islamic world.
Topic:
Diplomacy, History, Finance, Weapons, Islamism, War on Terror, and Jihad
Political Geography:
Afghanistan, Iraq, Middle East, Saudi Arabia, and United States of America

132. International Investment Law and the European Union: A Reply to Catharine Titi

Author:
Martins Paparinskis
Publication Date:
07-2015
Content Type:
Journal Article
Abstract:
Reasonable people might disagree whether the European Union (EU) is likely to make a significant and commendable contribution to international investment law. This article addresses two issues of relevance for this discussion. First, it considers the appropriateness of evaluating evelopments in international investment law in terms of balance between investor protection and the right to regulate. Second, the contribution of the recent EU practice is briefly examined, finding it less interesting and innovative than one might have expected.
Topic:
International Law, European Union, Regulation, and Finance
Political Geography:
Europe and European Union

133. Has Sweden injected realism into public financial management reforms in partner countries?

Author:
Matt Andrews
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Public financial management (PFM) reform is a common part of many development initiatives. It generally involves promoting "good practices" in developing countries, embedded in frameworks like the Public Expenditure and Financial Accountability (PEFA) assessment (PEFA 2006). These include multi-year budgeting, competitive procurement, modern internal audit, and more. Such practices have proved effective in selected contexts and promise solutions to common problems in governments. Unfortunately, a growing literature shows that many governments do not solve their problems after years of adopting such solutions. Data reveal that governments commonly produce new laws that are not enforced and budgets that are not effectively executed, and suffer from weak capacities in distributed units (like line ministries and local governments) after many finished projects (Andrews 2006, 2011, 2013; Porter et al. 2011; Wescott 2009). Studies tie these limits to a lack of realism in reform design and implementation (Andrews 2013; Andrews, Pritchett and Woolcock 2012; Booth 2011; Levy 2013; World Bank 2012). They argue, essentially, that reforms commonly fail to allow for necessary adaptation of external ideas to the realities in targeted contexts, often because the reform processes focus too narrowly on introducing the external good practice in principle and pay little attention to the practical difficulties of doing so in practice. Studies suggest, for instance, that such reforms pay insufficient attention to the political and administrative difficulties of effecting change, and that these difficulties commonly undermine reform results. Where studies see more effective and far reaching reform they often find that the externally nominated "good practices" are fitted to the targeted context through more adaptive processes that emphasize the real and practical issues of doing reform (like building reform support, testing and adjusting reform designs, and continually matching solutions and capacity realities and needs) (Andrews 2015; Andrews et al. 2014; Cabri 2014; Levy 2013). These studies call for approaches that allow more realism in reform processes in developing countries, especially those supported by multilateral and bilateral donors. They do so knowing that similar calls have been made before; and that there are already many examples of such realism in the development community. There is, however, a challenge to identify these examples and describe what such processes look like in practice. This search leads quickly to a focus on bilateral donors. A small and interesting set of work suggests that such donors might have a comparative advantage in introducing more realism to PFM-type reforms in developing countries, given their own country’s recent experiences with doing such reforms. The argument is simply that development agencies from these countries can leverage the real experiences with doing reform in their own contexts when engaging with reformers in developing countries. They can, for instance, access experienced reformers to share lessons on issues like building demand for change, establishing political support for reform, and adapting reform ideas to context. Such lessons are often learned best through experience and remain tacit in those who have been through the experience. Bilateral agencies arguably have an advantage in accessing such people and their lessons, and can more effectively incorporate this valuable knowledge into their reform support than multilateral agencies. This paper offers a novel analysis of this theory, asking whether Swedish development agencies working in the PFM field have leveraged the potential comparative advantage of the country’s own experience in supporting reform. The country’s own reforms have resulted in effective Sweden-specific adaptations of many of the good practices being promoted in developing countries today (including multi-year budgeting and modern accounting and audit). Academic descriptions of these reforms emphasize the processes by which they were adopted and the realism involved in such, and suggest the presence of many applied and tacit lessons one could see as valuable in developing countries (about testing reform ideas, for example, progressing gradually in reform processes, creating an urgent pressure for change, and building support for reform). The question asked here is whether Swedish development agencies bring these lessons into their support for PFM work, building on a potential advantage to promote realism in reform.
Topic:
Reform, Finance, Economy, International Development, and Institutions
Political Geography:
Europe, Sweden, and European Union

134. From Financial Repression to External Distress: The Case of Venezuela

Author:
Carmen M. Reinhart and Miguel Angel Santos
Publication Date:
04-2015
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Recent work has supported that there is a connection between domestic debt level and sovereign default on external debt. We examine the potential linkages in a case study of Venezuela from 1984 to 2013. This unique example encompasses multiple financial crises, cycles of liberalization and policy reversals, and alternative exchange rate arrangements. The Venezuelan experience reveals a nexus among domestic debt, financial repression, and external vulnerability. Unlike foreign currency-denominated debt, debt in domestic currency may be reduced through financial repression, a tax on bondholders and savers producing negative real interest rates. Using a variety of methodologies we estimate the magnitude of the tax from financial repression. On average, this financial repression tax (as a share of GDP) is similar to those of OECD economies, in spite of much higher domestic debt-to-GDP ratios in the latter. The financial repression "tax rate" is significantly higher in years of exchange controls and legislated interest rate ceilings. In line with earlier literature on capital controls, our comprehensive measures of capital flight document a link between domestic disequilibrium and a weakening of the net foreign asset position via private capital flight. We suggest these findings are not unique to the Venezuelan case.
Topic:
Debt, Finance, Capital Flows, Inflation, and Interest Rates
Political Geography:
South America and Venezuela

135. Regulation with Chinese Characteristics: Deciphering Banking Regulation in China

Author:
Orhan H Yazar
Publication Date:
06-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
The regulatory agency responsible for prudential super- vision of the banks in China, the China Banking Regulatory Commis- sion (CBRC), is not an independent authority. The agency’s regula- tory actions are constrained by the central government, which has to balance the prudential and non-prudential consequences of bank regulation for its political survival. The conditions and limits of the government’s influence on the CBRC is analysed through an investi- gation of three regulatory cases. The conclusion is that the CBRC’s regulatory actions are determined by the relative importance of pru- dential outcomes for the government’s policy objectives.
Topic:
Regulation, Finance, Chinese Communist Party (CCP), and Banking
Political Geography:
China and Asia

136. Tableau de bord des pays d’Europe centrale et orientale et d’Eurasie 2014 (Volume 2 : Eurasie)

Author:
Jean-Pierre Pagé, Anne De Tinguy, Jacques Sapir, Julien Vercueil, Vitaly Denysyuk, Raphaël Jozan, David Teurtrie, and Faruk Ülgen
Publication Date:
12-2014
Content Type:
Special Report
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
Le lecteur ne s’étonnera pas de ce que, en 2014, le conflit en Ukraine soit au cœur des préoccupations des pays d'Europe centrale, orientale et de l'Eurasie, même si ses incidences sont diversement ressenties selon les régions considérées. Les pays d’Europe centrale et orientale sont divisés dans leur appréhension politique des événements, et leurs économies ne sont pas directement concernées par les retombées du conflit en Ukraine. On pouvait craindre en revanche qu’elles subissent l’atonie de la zone euro, et son incapacité à retrouver des taux de croissance stimulant la demande extérieure. Cependant – et c’est là une heureuse surprise –, plusieurs d’entre elles ont trouvé la parade en tirant parti des fonds que l’Union européenne leur destine généreusement pour relancer leur demande domestique. Et les effets positifs de cette tactique portent des fruits spectaculaires, d’autant qu’elle se combine avec les incidences de la faible hausse des prix sur le pouvoir d’achat des consommateurs. Il y a là des enseignements à tirer pour la politique économique de l’Europe Occidentale ! Les pays de l’espace eurasiatique sont eux directement aux prises avec les développements du conflit ukrainien. Les incidences en sont multiples : les sanctions et contre-sanctions entre la Russie et l’Union européenne influent grandement sur les économies périphériques, de grands projets comme le gazoduc South Stream sont annulés, les relations des pays d’Asie centrale et du Caucase avec l’Union européenne sont observées avec vigilance par la Russie… La crise ukrainienne, c’est un fait, porte son ombre sur le grand projet de Vladimir Poutine d’instauration d’une Union économique eurasiatique.
Topic:
Economics, Energy Policy, International Organization, Markets, Political Economy, War, Natural Resources, Finance, Regional Integration, Transnational Actors, and Emerging States
Political Geography:
Russia, Central Asia, Ukraine, Caucasus, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Armenia, Azerbaijan, Turkmenistan, Georgia, and Belarus

137. Tableau de bord des pays d'Europe centrale et orientale et d'Eurasie 2014 (Volume 1 : Europe centrale et orientale)

Author:
Jean-Pierre Pagé, Jacques Rupnik, Céline Bayou, Edith Lhomel, and Catherine Samary
Publication Date:
12-2014
Content Type:
Special Report
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
Le lecteur ne s’étonnera pas de ce que, en 2014, le conflit en Ukraine soit au cœur des préoccupations des pays d'Europe centrale, orientale et de l'Eurasie, même si ses incidences sont diversement ressenties selon les régions considérées. Les pays d’Europe centrale et orientale sont divisés dans leur appréhension politique des événements, et leurs économies ne sont pas directement concernées par les retombées du conflit en Ukraine. On pouvait craindre en revanche qu’elles subissent l’atonie de la zone euro, et son incapacité à retrouver des taux de croissance stimulant la demande extérieure. Cependant – et c’est là une heureuse surprise –, plusieurs d’entre elles ont trouvé la parade en tirant parti des fonds que l’Union européenne leur destine généreusement pour relancer leur demande domestique. Et les effets positifs de cette tactique portent des fruits spectaculaires, d’autant qu’elle se combine avec les incidences de la faible hausse des prix sur le pouvoir d’achat des consommateurs. Il y a là des enseignements à tirer pour la politique économique de l’Europe Occidentale ! Les pays de l’espace eurasiatique sont eux directement aux prises avec les développements du conflit ukrainien. Les incidences en sont multiples : les sanctions et contre-sanctions entre la Russie et l’Union européenne influent grandement sur les économies périphériques, de grands projets comme le gazoduc South Stream sont annulés, les relations des pays d’Asie centrale et du Caucase avec l’Union européenne sont observées avec vigilance par la Russie… La crise ukrainienne, c’est un fait, porte son ombre sur le grand projet de Vladimir Poutine d’instauration d’une Union économique eurasiatique.
Topic:
Economics, International Trade and Finance, Markets, Political Economy, War, Diaspora, Finance, Europeanization, and Regional Integration
Political Geography:
Moldova, Eastern Europe, Poland, Lithuania, Kosovo, Estonia, Serbia, Romania, Macedonia, Hungary, Albania, Croatia, Latvia, Montenegro, Czech Republic, Central Europe, Slovenia, Slovakia, and European Union

138. Political Finance and Gender Equality

Author:
Lolita Cigane and Magnus Ohman
Publication Date:
08-2014
Content Type:
Working Paper
Institution:
International Foundation for Electoral Systems
Abstract:
Throughout the world, women and men have different opportunities to participate in the political sphere. This is particularly true when it comes to participation as candidates and elected officials in electoral processes. There are many factors that contribute to existing gender inequalities in politics. While political finance is an important instrument for achieving gender equality in politics, the ongoing debates about political finance rarely consider the impact of money on the level of representation of both men and women in elected offices. IFES' latest publication, Political Finance and Gender Equality, has been developed on the premise that there is an important connection between political finance and gender equality that has not been explored in-depth. Discussions regarding political finance should take into account the issue of gender, particularly in consideration of the challenges that prospective women candidates face with regard to the role of money. This white paper attempts to take initial steps to examine the relationship between these two important issues. After an examination of political finance regulation and its impact on the chances of women and men to effectively run for elected office, the paper reviews the effect of varying electoral systems on gender equality in politics and political finance. Finally, this white paper discusses a recent pilot project in the Middle East and North Africa. A series of interviews with women candidates informed the work of multi-stakeholder working groups in Tunisia and Yemen, and these working groups provided recommendations for reform in their respective countries.
Topic:
Gender Issues, Politics, Finance, and Feminism
Political Geography:
Africa, Middle East, Yemen, North Africa, and Tunisia

139. Money and Elections in the Maldives

Author:
International Foundation for Electoral Systems
Publication Date:
11-2014
Content Type:
Working Paper
Institution:
International Foundation for Electoral Systems
Abstract:
The International Foundation for Electoral System’s (IFES) in close cooperation with national experts from Commerce, Development and Environment Consulting, conducted a nation-wide survey to measure the prevalence of vote buying in the Maldives during the March 2014 parliamentary elections. This is the first systematic study of its kind conducted in the Maldives and it provides statistical data on vote buying, campaign finance and other election-related issues. It reveals that 37% of the voters have personally witnessed attempts at vote buying. In addition, the Maldivian public is highly cynical of the way in which political parties and candidates spend their campaign funds. At the same time there is very strong public support for campaign finance reforms and, in particular, for combating vote buying. The methodology and sample were designed to be nationally representative with a +/- 3 percent margin of error. The report will be shared with the government, the parliament, the Election Commission, civil society, political parties and others. IFES is currently providing technical support to the Electoral Reform Working Group to formulate amendments to electoral legislation, and remains committed to supporting Maldivian institutions in improving the electoral process.
Topic:
Elections, Finance, Voting, and Campaign Finance
Political Geography:
South Asia, Asia, and Maldives

140. Just Peace: Achieving Peace, Justice, and Development in Post-Conflict Africa

Author:
Corinna Jentzsch
Publication Date:
08-2014
Content Type:
Working Paper
Institution:
Social Science Research Council
Abstract:
The analysis begins with a review of trends in financing peace operations, including the proliferation of actors; existing financing mechanisms used by the UN, the European Union (EU), the North Atlantic Treaty Organiza- tion (NATO), and the World Bank; and the devolution of these operations to African regional organizations. Efforts of the past two decades to respond effectively to challenges to peace and security in Africa have produced vari- ous new programs and institutions, funds, and budgets and led to revisions of previous programs and financing mechanisms. This proliferation of institutions and funds has also created challenges, however, which the analysis reviews next, placing particular emphasis on three: the inadequacy of UN reforms to overcome financing constraints; the insufficiency and unpredictability of voluntary contributions; and the limited capacity of African regional organizations. All are rooted in the demand for more integrated approaches to peace operations on the one hand and the lack of coordination, duplication of structures, and waste of resources on the other.
Topic:
NATO, United Nations, Developing World, Finance, Europe Union, Peace, and Justice
Political Geography:
Africa, United States, and Europe