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651. State Fragility and Development Cooperation: Putting the Empirics to Use in Policy and Planning

Author:
Charles Martin-Shields and Diana Koester
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
State fragility, which describes how different components of a state do (or do not) function, is a central concept for understanding how development activities and policies in complex political, humanitarian and conflict-affected contexts will (or will not) work in practice. Using fragility as a lens, we use feminist development policy and forced displacement as examples to demonstrate how different empirical conceptualisations of fragility can be used to uncover potential challenges and identify opportunities for more comprehensive policy and programming. These examples are only two ways one can apply the concepts of fragility of the OECD and the German Institute of Development and Sustainability (IDOS). Indeed, these and other empirical concepts of state fragility have many applications and can be used to measure and understand state–society, conflict and humanitarian dynamics in myriad ways. The longest-running among these kinds of models is the Fund for Peace’s Fragile States Index (Fund for Peace, 2023). Other models focus on state fragility as a function of different aspects of “stateness”. This includes IDOS’s Constellations of State Fragility typology, which clusters types of fragility based on strengths/weaknesses in key dimensions of statehood (Grävingholt et al., 2019). Some organisations have moved beyond an exclusive focus on the functioning of the state, with the OECD currently defining fragility contexts as the combination of risks and insufficient coping capacities of multiple levels of governance systems and/or communities to manage, absorb or mitigate those risks (OECD, 2016). The IDOS and OECD concepts do not rank countries, and the methods used in both models allow them to be applied to different levels of analysis. Essentially, these empirical conceptualisations of state fragility can serve as useful heuristics for the policy-makers responsible for setting policy agendas in fragile contexts.
Topic:
Development, Fragile States, Fragility, Cooperation, and Development Policy
Political Geography:
Global Focus

652. Getting Special Drawing Rights Right: Opportunities for Re-channelling SDRs to Vulnerable Countries

Author:
Jürgen K. Zattler
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Many developing countries are still grappling with the consequences of the pandemic and the associated high debt burdens while facing huge financing needs, inter alia related to climate change. In response, the International Monetary Fund (IMF) issued $650 billion in Special Drawing Rights (SDRs). The G7 and G20 have committed to re-channelling SDR 100 billion of their allocation to developing countries (on-lending, recycling and re-channelling are used interchangeably in this policy brief). The question now is how to implement these commitments in a way that promotes the global transformation and at the same time supports debt sustainability. It is important to note that there are certain restrictions on the re-channelling of SDRs. Most importantly, the re-channelling must be consistent with the SDR’s status as an international reserve asset. There are different interpretations of these requirements. The IMF has encouraged the use of the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST) for re-channelling. It has also signalled general support for re-channelling SDRs to the multilateral development banks (MDBs). The European Central Bank (ECB) has taken a more restrictive stance. Does the re-channelling of SDRs through the above-mentioned IMF trusts (“the current on-lending option”) effectively support the global transformation? Measured against this objective, the current on-lending regime has two shortcomings. First, it does not sufficiently link foreign exchange support to deep structural transformation. Second, it does not allow funds to be leveraged in the private capital market. In this policy brief, we discuss a promising alternative: recycling SDRs for MDB hybrid capital (“the hybrid capital option”). This option can overcome the two drawbacks of the current system. At the same time, it has its own challenges. Moreover, both the current on-lending option and the hybrid capital option raise concerns about debt sustainability. If implemented in their current forms, they would risk exacerbating vulnerable countries’ debt problems. It would therefore be desirable to modify these options to better integrate debt implications. This could be done by using the on-lent SDRs primarily for programmes that are not “expenditure-based”, but rather help to improve the composition of expenditure and revenue in a socially equitable manner, for example the introduction of regulatory standards, feebates and carbon pricing, or the phasing out of fossil fuel subsidies. Such an approach could have the added benefit of making previously sceptical member states more receptive to the hybrid capital proposal. The mid-term review of the RST, scheduled for May 2024, as well as the full review in 2025 provide good opportunities to further explore some of the issues raised in this policy brief. In addition, the brief identifies three ways in which interested shareholders of the IMF and MDBs could advance the debate on the hybrid capital option.
Topic:
Development, Sustainability, COVID-19, and Multilateral Development Banks (MDBs)
Political Geography:
Global Focus

653. 9 candidates in the running for the presidential election in Finland. Towards a 2nd round: Alexander Stubb (KOK) - Pekka Haavisto (Greens)?

Author:
Corinne Deloy
Publication Date:
01-2024
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 28 January, in the first round of the presidential election in Finland, 9 candidates are running for the supreme office. If no candidate receives more than half the votes, a second round will be held on 11 February. Finns can vote by post from 17 to 23 January (17 to 20 January for those living abroad.) After two consecutive terms leading the country, the current head of state, Sauli Niinistö (National Coalition Party, KOK), cannot stand for re-election. The Presidency of the Republic is the institution in which Finns have the most confidence (84%), according to a recent survey conducted by the Foundation for Municipal Development and published in January 2024.
Topic:
Domestic Politics, Political Parties, and Presidential Elections
Political Geography:
Europe and Finland

654. Right and left running neck and neck three weeks before the snap general elections in Portugal

Author:
Corinne Deloy
Publication Date:
02-2024
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 9 November, Portuguese President Marcelo Rebelo de Sousa dissolved the Assembly of the Republic, the single chamber of Parliament, and announced that general elections would be held on 10 March 2024. These elections, which should have been held by 11 March 2026 at the latest, have therefore been brought forward by two years.
Topic:
Corruption, Elections, Domestic Politics, Political Parties, Leftist Politics, and Right-Wing Politics
Political Geography:
Europe and Portugal

655. Towards a duel between Peter Pellegrini and Ivan Korcok in the Slovak presidential election?

Author:
Corinne Deloy
Publication Date:
03-2024
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The 1st round of the presidential election will take place on 23 March in Slovakia. 11 candidates are standing in this ballot. If no candidate obtains more than 50% of the votes + 1, a 2nd round will be held on 6 April. The term of office of the current President of the Republic, Zuzana Caputova, expires on 15 June next. According to opinion polls, Peter Pellegrini (Hlas-Social Democracy), Speaker of Parliament, and Ivan Korcok, former Foreign Minister, are the favourites and are expected to meet in the 2nd round on 6 April. "The presidential election will tell us whether Slovaks support Prime Minister Robert Fico or whether they want to curb and limit his actions," said Tim Haughton, Professor of Political Science at the University of Birmingham and an expert on Slovakia. He believes that the turnout will be crucial.
Topic:
Domestic Politics and Presidential Elections
Political Geography:
Europe and Slovakia

656. Will the Democratic Union (HDZ) remain in power in Croatia?

Author:
Corinne Deloy
Publication Date:
04-2024
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 15 March, the President of the Republic of Croatia, Zoran Milanovic, announced that general elections would be held on 17 April. This election is the first in a series to be held in the country in 2024: European elections on 9 June and presidential election at the end of the year. 3.7 million people are expected to vote on 17 April. Croatia has been governed since 2016 by the Democratic Union (HDZ), led by Prime Minister Andrej Plenkovic, allied with the Serbian Independent Democratic Party (SDSS), led by Milorad Pupovac. The outgoing head of government is also the longest-serving prime minister. His coalition is supported by the Social Liberal Party, the Christian Democratic Party, the Democratic Alliance of Slavonia and Baranja, the People's Party-Reformists (NS-R), the Democratic Union of Hungarians in Croatia, the Roma Alliance of the Republic of Croatia, the Union of Albanians and the Croatian Party of Pensioners (HSU). However, the Democratic Union is struggling somewhat. It has been criticised for appointing Ivan Turudic to the post of public prosecutor. This choice was confirmed by parliament: 78 MPs voted in favour, against 60 and 2 abstentions. Ivan Turudic's critics point to his links with controversial figures such as Zdravko Mamic, a former manager of Dinamo Zagreb football club who was convicted of tax fraud and fled to Bosnia to escape justice, and a number of senior Democratic Union officials suspected of corruption. The government also faced several demonstrations last March in the country's five largest cities (Zagreb, Split, Rijeka, Osijek and Varazdin) - organised by several left-wing opposition forces (Mozemo ("We can" in Croatian) and a coalition of 6 parties led by the Social Democratic Party (SDP) - which called on Croatians to rally under the slogan "Enough is enough". Afterwards, Social Democrat leader Pedja Grbin promised to "finish the job at the polling stations". Zoran Milanovic's "coup" The electoral campaign witnessed an unprecedented moment when Croatian President Zoran Milanovic announced at a press conference in mid-March, alongside Pedja Grbin, his candidacy for the general elections as head of the SDP list in Zagreb ... in the first constituency in which the outgoing Prime Minister, Andrej Plenkovic, is running. "Sometimes you have to leave your comfort zone if you want to have solid majority and form a government of national salvation," declared the head of state. Asked to rule on this unprecedented situation, the Constitutional Court stated on 18 March that it was absolutely impossible for the President of the Republic to stand as a candidate in the general elections. "The candidacy of the current President of the Republic in general elections is incompatible with the Croatian Constitution and the principle of the separation of powers. The President is a strictly non-partisan person and cannot take part in the activities of any political party. If he wants to be a candidate, he must resign", the Court ruled. Nor is the head of state authorised to campaign in favour of a particular list, at the risk of annulling the election. Zoran Milanovic responded by describing the members of the Constitutional Court as "illiterate peasants"; he stated that he would only resign once election victory was certain, and that he was therefore in a position to succeed Andrej Plenkovic as head of government. Zoran Milanovic, President of the Republic since 2020, was Prime Minister between 2011 and 2016.
Topic:
Domestic Politics, Courts, and Political Parties
Political Geography:
Europe and Croatia

657. Lithuanian President Gitanas Nauseda is expected to be re-elected

Author:
Corinne Deloy
Publication Date:
05-2024
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 12 May, Lithuanians will go to the polls for the 1st round of the presidential election. The outgoing head of state, Gitanas Nauseda, is running for re-election. Among his main rivals is Prime Minister Ingrida Simonyte (Union of Fatherland-Christian Democrats, TS-LKD). The two candidates already faced each other in the 2nd round of the previous presidential election on 12 and 26 May 2019. 6 other candidates are in the running for this election. If none of them receives more than 50% +1 vote on 12 May, a 2nd round will be held on 26 May.
Topic:
Domestic Politics, Political Parties, and Presidential Elections
Political Geography:
Europe and Lithuania

658. European Election: Red Alert!

Author:
Pascale Joannin
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Europeans are being called to the polls between 6 and 9 June 2024 — depending on the country — to renew the members of the European Parliament. These will be the tenth elections by direct universal suffrage since 1979.
Topic:
Elections, Geopolitics, Economic Growth, Crisis Management, COVID-19, Regional Politics, and Green Transition
Political Geography:
Europe

659. A New Security Order for Europe

Author:
Pierre Vimont
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Europe's security order has collapsed in the wake of the Ukrainian conflict. The very idea of rethinking this particular European framework raises doubts when faced with a Russian regime unable to admit the futility of its imperial dream. However, Europeans cannot afford not to think about the future of stability in Europe in response to the Russian question, which has been troubling our continent for too long[1]. Vladimir Putin's decision to invade Ukraine has put an end to the European security order as it was established in 1975 in Helsinki. By launching his "special military operation", the Russian President has gutted the whole edifice that had lasted as well as it could since its foundation.
Topic:
Defense Policy, European Union, Regional Security, and Russia-Ukraine War
Political Geography:
Europe

660. The German 'Schuldenbremse' crisis: a symptom to be taken seriously in Europe

Author:
Clara Bösche
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The priority to be given to the ecological transition and its practical implementation are dividing Germany and Europe. The European Union is being accused of making the conditions of production for farmers even more difficult: the number of demonstrations across the European Union has been rising after the Germans began their protests on 15 January 2024, as they denounced the ambitions of the European Green Deal, as well as the human and financial costs. At the start of 2024, the German coalition government (SPD, Greens and FDP Liberals) led by Chancellor Olaf Scholz (SPD) is struggling, since its draft budget has been cut by around €60 billion. The origins of the budget cuts to which the government has had to resort lie in a decision taken by the Constitutional Court of Karlsruhe dated 15 November 2023. The latter censured the decision to reallocate 60 billion €, initially intended to cushion the economic impact of the pandemic crisis, to a special fund for the transformation of the economy and the climate. For two months now, opposition has been growing in Germany over the resources allocated, the priorities to be defined and the rules governing public debt. The constitutional appeal was lodged by CDU-CSU members of parliament, who denounced the government's "sleight of hand". As Germany enters a recession, the debate is whether or not it is still appropriate to limit public debt to 0.35% of GDP. Current circumstances no longer justify bending the rule: the pandemic crisis is over, and the exceptional funds earmarked should not be used for the economy or the environment. As a result, since the Constitutional Court's ruling against the federal budget, in addition to opposition over the priority to be given to the green transition in economic and agricultural life, further opposition has emerged: regarding whether the constitutional principle of the debt brake (Schuldenbremse) should be reformed or not. This principle is firmly defended by Friedrich Merz, leader of the CDU and of the CDU/CSU in the Bundestag. In his view, the debt brake is the only way to avoid saddling future generations with debt, and he fears that lifting it might have a knock-on effect in terms of the financial stability of other European Union countries. Within the government, the SPD and the Greens (led by the Vice-Chancellor and Minister for the Economy, Robert Habeck), would like to reform the debt brake to facilitate the necessary investments, in line with the European Green Deal. However, within the same government, the FDP Liberals, led by Finance Minister Christian Lindner, have long refused to challenge this constitutional principle, in the same way as the CDU/CSU opposition. Christian Lindner is therefore in a difficult situation, caught between traditional positions, his coalition partners and the opposition. A hard-won agreement on the 2024 budget, on 13 December 2023, provides for cuts that will result, in particular, in the reduction of tax relief on diesel on agricultural machinery - the main focus of demonstrations in Germany – but also in a postponement of the “climate bonus”. Priorities have had to be set because of this cutback, but they are the source of dissatisfaction both on the part of the farmers, as well as the promoters of the European Green Deal. The debate on Germany's levels of debt, in the light of the demonstrations now rocking the country, is further weakening the coalition - the aim in this paper is not to take position on this - but above all, to consider the problem of the priorities to be identified, not only in Germany but also in Europe.
Topic:
Budget, European Union, Tax Systems, and Green Transition
Political Geography:
Europe and Germany