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8101. Permanent Budget Surpluses as a Fiscal Regime

Author:
Lukas Haffert
Publication Date:
02-2016
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper challenges the focus on budget deficits that permeates the literature on fiscal policy. It analyzes countries running budget surpluses and asks why some of them preserved these surpluses while others did not. Whereas several OECD members recorded surpluses for just a few years, balanced budgets became the norm in Australia, Canada, Denmark, Finland, New Zealand, and Sweden in the late 1990s. The paper compares the fiscal policy choices of both types of countries from a historical-institutionalist perspective. It argues that a path-dependent shift in the balance of power among fiscal policy interests explains why surpluses persisted in one group of countries but not in the other. This reconfiguration of interests was triggered by a deep fiscal crisis and an ensuing expenditure-led consolidation. It can be interpreted as creating a new “surplus regime” in which fiscal policy became structured around the goals of balancing the budget and cutting taxes.
Topic:
Economics, Financial Crisis, Budget, and Europe
Political Geography:
Finland, Denmark, Sweden, and New Zealand

8102. Empowered or Disempowered? The Role of National Parliaments during the Reform of European Economic Governance.

Author:
Aleksandra Maatsch
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper investigates how the intergovernmental reform process of European economic governance affected national parliaments’ oversight of this policy area. Which parliaments became disempowered and which managed to secure their formal powers – and why? The dependent variable of the study is operationalized as the presence or absence of “emergency legislation” allowing governments to accelerate the legislative process and minimize the risk of a default by constraining national parliaments’ powers. The paper examines how national parliaments in all eurozone states were involved in approving the following measures: the EFSF (establishment and increase of budgetary capacity), the ESM, and the Fiscal Compact. The findings demonstrate that whereas northern European parliaments’ powers were secured (or in some cases even fostered), southern European parliaments were disempowered due to the following factors: (i) domestic constitutional set-up permitting emergency legislation, (ii) national supreme or constitutional courts’ consent to extensive application of emergency legislation, and (iii) international economic and political pressure on governments to prevent default of the legislative process. Due to significant power asymmetries, national parliaments remained de jure but not de facto equal in the exercise of their control powers at the EU level. As a consequence, both the disempowerment of particular parliaments and the asymmetry of powers among them has had a negative effect on the legitimacy of European economic governance.
Topic:
Politics, Governance, Law, and Reform
Political Geography:
Europe

8103. The Asian Development Bank and the Asian Infrastructure Investment Bank: Conditional Collaboration?

Author:
Robert M. Orr
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
Council of American Ambassadors
Abstract:
In the past two years, the creation of the Chinese-sponsored Asian Infrastructure Investment Bank (AIIB) has caused considerable attention in many capitals, particularly in Washington and Tokyo. Some view the establishment of the AIIB as a challenge to the supremacy of the post-World War II Bretton Woods order. Others see it as another symbol of shifting regional power in Asia. Some have deep concerns about the AIIB’s willingness to adhere to international safeguards and open procurement.
Topic:
International Trade and Finance
Political Geography:
United States, Japan, China, and Asia-Pacific

8104. Costa Rica and the United States: An Enduring Partnership

Author:
S. Fitzgerald Haney
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
The Ambassadors Review
Abstract:
The United States’ strong partnership with Costa Rica has deep roots: our countries established diplomatic relations in 1851, when Costa Rican Minister Felipe Molina presented his credentials in Washington, and a Treaty of Friendship, Commerce, and Navigation was finalized the following year. This early cooperation provided a strong foundation for a bilateral relationship that has only gained depth and breadth, and which continues to grow, evolve, and reveal new sources of strength. Today, the United States is Costa Rica’s largest trading partner and greatest source of foreign investment. Costa Rica’s stability, natural beauty, and proximity to the United States make it a favorite destination for US citizens—tourists, investors, and residents alike—further deepening the connections between our countries. Our shared values, long history of close cultural and commercial ties, and growing cooperation on regional initiatives make Costa Rica a valued strategic partner as the United States promotes prosperity, good governance, and security—the three pillars of the US Strategy for Engagement in Central America (the Strategy)—throughout the region.
Topic:
Diplomacy, Bilateral Relations, Foreign Direct Investment, and Governance
Political Geography:
Costa Rica and United States of America

8105. The Fruits of Change in Paraguay

Author:
Leslie A. Bassett
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
The Ambassadors Review
Abstract:
The mythic American legends we grow up with as children in the United States may not be accurate renderings of history, but they are formative in building our values and beliefs. They include George Washington, a soldier and politician, who occasionally made a mistake but never told a lie; the freed slave John Henry, who worked so hard he beat a steam drill while laying rail; and the fearless Calamity Jane, who lived as she chose in the Wild West. But for me, the most influential was Johnny Appleseed, a poor farmer who traveled the land making friends and planting apple seeds, but rarely if ever returning to see the well-tended trees that grew in his wake. The life of a diplomat is a similar journey of planting ideas, programs, and projects while trusting that others will nurture them to grow strong and produce.
Topic:
Civil Society, Politics, History, and Reform
Political Geography:
Paraguay

8106. Gradual and Deliberate Engagement Leads to Trust and Change in Cameroon

Author:
Michael S. Hoza
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
The Ambassadors Review
Abstract:
Since its independence in the 1960s, Cameroon has shared few common objectives with the United States. Its vaunted political stability has been predicated on a complex system of tribal patronage and—through most of its history—strict controls on freedom of expression and assembly. This stability has been punctuated by periods of political violence and crackdowns, most recently in 2008, which have alienated the international community and strained bilateral relations. Yet, confronted by the threat of violent extremism and virulent pandemics, Cameroon and the United States have begun to “push on open doors” to expand and deepen bilateral relations, and this in turn has opened up further—previously impossible—avenues for discussion on sensitive topics, such as humanitarian assistance and democratic and political transition.
Topic:
Political Violence, Humanitarian Aid, Bilateral Relations, Violent Extremism, and Freedom of Expression
Political Geography:
Cameroon and United States of America

8107. The Untapped Potential of English Teaching

Author:
Megan Metrick
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
Council of American Ambassadors
Abstract:
Public Diplomacy (PD) at the State Department shows signs of going through a serious rethink. The push to be more strategic in our programming has taken off. Public Diplomacy officers can rattle off the Integrated Country Strategy goals with the best of them. More rigorous program planning and evaluation may be coming to a cloud platform near you soon (see the excellent article by my colleague Carissa Gonzalez in the previous issue of The Ambassadors Review). Social media regulations are in the Foreign Affairs Manual. EducationUSA and American Spaces have slick branding, unified looks, and centralized websites. These new strategies and tools are great, and in many cases, long overdue. However, as we redesign Public Diplomacy for the 21st century (albeit we are already well into that century), we should go back to the basics for a moment, and remember why we’re here.
Topic:
Diplomacy, Education, and International Affairs
Political Geography:
Global Focus and United States of America

8108. The Case for a New Era of Person-to-Person Exchange

Author:
Alexa L. Wesner
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
The Ambassadors Review
Abstract:
Since the end of the Second World War, the United States and Austria have enjoyed one of the most mutually beneficial and prosperous relationships in the world. Born from a shared desire for lasting peace and nourished by trade, education, and people-to-people exchanges, Austria and the United States share an intertwined past and interconnected future. Today, our shared democratic ideals and our willingness to work together to combat global threats serve as an example of collaboration on the world stage. But since the earliest days of the modern era, our common goals have been underwritten by a series of often-overlooked exchange programs that have exposed thousands of people to the significance of our shared values. The intimate human bonds built by exchange participants continue to weave an increasingly beautiful, intricate, and durable social fabric that strengthens our bilateral relationship.
Topic:
Politics, War, Bilateral Relations, and Global Security
Political Geography:
Austria and United States of America

8109. Two Sides of the Foreign Assistance Coin

Author:
Hari Sastry
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
The Ambassadors Review
Abstract:
The world we live in today is more interconnected than ever before—though we may not share soil or language, religion or currency, we are neighbors in this global community. Together, we face challenges that are more complex than any we have ever encountered: violent extremism that threatens our core values of democracy, equality, and freedom; conflicts and natural disasters that devastate and displace; diseases that unroll in waves across entire regions.
Topic:
Democratization, Globalization, Religion, International Affairs, and Freedom of Expression
Political Geography:
Global Focus

8110. Afghanistan’s Age of Transformation

Author:
Hamdullah Mohib
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
The Ambassadors Review
Abstract:
The Afghanistan of today would surprise most outsiders, even those who closely follow developments in the country. We are often wrongly branded as a failing state with a struggling government whose young people are fleeing en masse for Europe and whose military has lost control of the security situation. While anecdotal evidence can always be found to lend isolated support to such claims, this sweeping characterization offers a distorted picture of reality.
Topic:
Security, Fragile/Failed State, Governance, and Military Affairs
Political Geography:
Afghanistan and Europe