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2331. Brexit: Everyone Loses, but Britain Loses the Most

Author:
Maria C. Latorre, Zoryana Olekseyuk, Hidemichi Yonezawa, and Sherman Robinson
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper examines 12 economic simulation models that estimate the impact of Brexit (Britain’s exit from the European Union). Most of the studies find adverse effects for the United Kingdom (UK) and the EU-27. The UK’s GDP losses from a hard Brexit (reversion to World Trade Organization rules due to a lack of UK-EU agreement) range from –1.2 to –4.5 percent in most of the models analyzed. A soft Brexit (e.g., Norway arrangement, which seems in line with the nonbinding text of the political declaration of November 14, 2018, on the future EU-UK relationship) has about half the negative impact of a hard Brexit. Only two of the models derive gains for the UK after Brexit because they are based on unrealistic assumptions. The authors analyze more deeply a computable general equilibrium model that includes productivity and firm selection effects within manufacturing sectors and operations of foreign multinationals in services. Based on this latest model, they explain the likely economic impact of Brexit on a wide range of macroeconomic variables, namely GDP, wages, private consumption, capital remuneration, aggregate exports, aggregate imports, and the consumer price index.
Topic:
Economics, World Trade Organization, Brexit, and Multinational Corporations
Political Geography:
Britain, Europe, and European Union

2332. The Return of Economic Nationalism in Germany

Author:
Jeromin Zettelmeyer
Publication Date:
03-2019
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
ermany’s new National Industrial Strategy 2030, unveiled by Economy Minister Peter Altmaier in February 2019, advocates an aggressive industrial policy. Although it stays clear of the virulent economic nationalism of the 1930s and the protectionism of President Donald Trump, its tone and much of its content are unmistakably nationalist. Zettelmeyer concludes that three of Altmaier’s five proposals—attempting to further raise the German share of manufacturing, restricting non-EU imports of intermediate goods, and promoting national champions in Germany and the European Union—are bad policies. The two remaining ideas—preventing some foreign takeovers and ramping up state support for certain technologies—are somewhat easier to justify, based on either market failures or the risk of technological dependence on foreign companies susceptible to political interference. But even in these areas, the specific policies proposed may well do more harm than good.
Topic:
Economics, Nationalism, European Union, and Donald Trump
Political Geography:
Europe and Germany

2333. Changes in South Africa’s Foreign Policy

Author:
Jędrzej Czerep
Publication Date:
06-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
May’s parliamentary elections in South Africa, a non-permanent member of the United Nations Security Council (UNSC), will change the directions of its foreign policy. The victory by the African National Congress (ANC) was made possible by the popularity of the current president, Cyril Ramaphosa, who will emphasize the international dimension of policy. In his new term, he will focus on regaining the trust of foreign investors, strengthening the country’s pro-Western course, supporting multilateralism, and reform of the International Criminal Court (ICC).
Topic:
Foreign Policy, Government, International Law, Politics, Elections, and Multilateralism
Political Geography:
Africa and South Africa

2334. The Centre-Right Returns to Power in Greece

Author:
Małgorzata Pawłowska and Melchior Szczepanik
Publication Date:
07-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
ND won the election with 39.9% of the votes. The governing left-wing Syriza took 31.5% while 8.1% voted for the Movement for Change (KINAL), a coalition built around PASOK, the main left-wing party before the last economic crisis.
Topic:
Economics, Government, Politics, and Elections
Political Geography:
Europe and Greece

2335. Hungarian-Russian Economic Relations

Author:
Veronika Jóźwiak
Publication Date:
07-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
Hungarian-Russian economic relations are based on the energy industry. Hungary’s efforts to build closer political relations with Russia after 2010 did not result in a marked increase in bilateral trade, investment, or greater Russian influence outside the energy sector. EU economic sanctions imposed on Russia and the introduction of counter-sanctions in 2014 caused a significant drop in Hungarian exports to Russia. However, this has not resulted in substantial losses to the Hungarian economy.
Topic:
Energy Policy, Bilateral Relations, Sanctions, European Union, and Trade
Political Geography:
Russia, Europe, Eurasia, and Hungary

2336. Space in the Trump Administration's Security Polic

Author:
Mateusz Piotrowski
Publication Date:
08-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The U.S. will create a new branch of the armed forces to conduct operations in space. This is a response to the increased threat from China and Russia, which are rapidly developing space systems for military use. As a result of the U.S. actions, NATO adopted its first space policy. The effects of this policy also oblige allies who do not have space capabilities and who will have to work out their own policy towards this domain.
Topic:
NATO, Science and Technology, Armed Forces, Military Affairs, Space Force, and Donald Trump
Political Geography:
Russia, China, Eurasia, North America, and United States of America

2337. Germany and the Three Seas Initiative

Author:
Tomasz Żornaczuk
Publication Date:
08-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
This year, Germany participated for the second time in a Three Seas Initiative (TSI) summit as an observer. Its participation is motivated by the desire to strengthen cooperation with Central European countries and reduce divisions in the EU. It also aims to limit U.S. economic ambitions in the region, with TSI a potential key vehicle for them. Germany’s efforts to gain membership should be seen as a foreign policy goal. Its success could contribute to influencing infrastructure priorities in Central Europe, if implemented under the TSI.
Topic:
Foreign Policy, Diplomacy, International Cooperation, and Regional Cooperation
Political Geography:
Europe, Germany, North America, Central Europe, and United States of America

2338. Attempts at Reforming Egyptian Demographic Policy

Author:
Sara Nowacka
Publication Date:
09-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The population of Egypt, the EU’s second-most populous neighbour after Russia, will soon exceed 100 million. The fast pace of the population growth together with the country’s inefficient economy could spur new crises caused by rising unemployment and difficult access to drinking water and food resources, and by politics. The Egyptian government, in cooperation with the EU, U.S., and UN, launched programmes aimed at reducing the fertility rate. Limiting the pace of Egypt’s population growth should weaken factors inciting further destabilisation of the Middle East and North Africa.
Topic:
Demographics, Natural Resources, Unemployment, and Population Growth
Political Geography:
Middle East, North Africa, and Egypt

2339. Afghanistan Ahead of the Next Turbulent Presidential Election

Author:
Patryk Kugiel
Publication Date:
09-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The U.S. cancellation of peace talks with the Taliban means that the presidential election in Afghanistan planned for 28 September will take place in an environment of an escalating civil war. The most important challenge for the authorities is to ensure the security and credibility of the electoral process. Although the elections carry the risk of deepening the internal political crisis, they can also strengthen the position of the new president in possible government negotiations with the Taliban, which would give the country a chance to launch an intra-Afghan peace process. Western partners can support this approach by confirming their support for the new authorities and intensifying military pressure on the Taliban.
Topic:
Security, Government, Elections, Taliban, and Peace
Political Geography:
Afghanistan and South Asia

2340. The Role of Nuclear and Gas in Romania-U.S. Relations

Author:
Jakub Pieńkowski
Publication Date:
10-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The close alliance between Romania and the U.S. is focused on defence. Their cooperation also extends to energy issues, particularly nuclear energy, gas transit to the Balkans, and extraction from Black Sea deposits. However, Romania’s interests in energy security are only partially convergent with the U.S. goals of eliminating China’s and Russia’s influence in the region and becoming a key gas supplier to Central Europe.
Topic:
Defense Policy, Energy Policy, Bilateral Relations, Nuclear Power, and Gas
Political Geography:
Europe, Romania, North America, United States of America, and Black Sea