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881. Tunisia: Public Opinion Report 2023

Author:
Arab Barometer
Publication Date:
02-2024
Content Type:
Special Report
Institution:
Arab Barometer
Abstract:
Over the past dozen years, Tunisia has experienced dramatic political change. In 2011, the Jasmine Revolution led to the fall of its long-standing leader, Zine El Abidine Ben Ali, ushering in a period of political instability. Following the rewriting of the constitution, free and fair elections were held but yielded only weak and largely ineffective governments. Although Tunisians enjoyed far greater political rights, economically the country regressed. A decade after the revolution, GDP per capita had declined significantly. Stories of corruption within government institutions remained common, yielding an increasingly frustrated public. Elections may give voters a say, but the outcomes of the system often appeared no better than in the days of Ben Ali. Citizens demanded radical change and looked for a leader who they believed could deliver actual results. In the 2019 presidential elections, many Tunisians turned to Kaïs Saïed as a solution. Saïed ran a populist campaign as a political outsider, calling for ending corruption and reforms to the electoral system. In the final round of voting, he captured nearly three-quarters of the vote for an overwhelming victory and strong electoral mandate. In July 2021, Saïed dismissed the prime minister and suspended parliament. Ruling by decree, many members of the judiciary were dismissed and many opposition politicians were arrested. Despite international criticism of these actions, results from the 2021 Arab Barometer demonstrated that most Tunisians were in favor of his actions.1 Just three months after the events of July 25, 2021, most Tunisians had confidence in the president, a majority were optimistic about their economic future for the first time in years, and most believed the government was finally tackling the problem of corruption. In short, many Tunisians had hope for their country’s future. In late 2023, Tunisians remained more optimistic than they had been before the election of Saïed, but Arab Barometer’s survey suggests that some are starting to lose hope. Promises of economic improvements have not been realized—just one-in-ten rate the economy as good, which is largely unchanged since 2013. Economic optimism has also fallen, dropping by 14 points since 2021. During this period, hunger has also increased dramatically, with twothirds of Tunisians saying they have gone without food at least once in the previous month. Moreover, the most common perception is that government mismanagement is the source of food insecurity. Views of most political institutions are relatively weak. Just over a third have confidence in the government while less than a quarter trust parliament. However, trust in President Saïed remains strong, with about three-quarters expressing confidence in their leader. Still, this level is a six point decrease from 2021.
Topic:
International Relations, Corruption, Environment, Migration, Governance, Public Opinion, Democracy, Economy, Institutions, Freedom, and Gender
Political Geography:
North Africa and Tunisia

882. Mauritania: Public Opinion Report 2024

Author:
Sahel Foundation
Publication Date:
05-2024
Content Type:
Special Report
Institution:
Arab Barometer
Abstract:
Mauritania has begun a new phase of peaceful rotation of power, being an embodiment of democracy. This democratic transition has been seen through the country’s last government. Therefore, we observe the rising trend of citizens’ trust in the current government. Nine percent of Mauritanians say they trust the government to a great extent, and more than a quarter (27 percent) say they trust it. In contrast, 38 percent say they have little trust in the government, while nearly one-fifth (22 percent) have no trust in their government at all. In order to increase citizens’ trust in the government, it may be worthwhile to enhance communication between the government and citizens and transparently explain decisions and plans. Moreover, it could be important to that end to improve the quality of public services such as health, education, and infrastructure; strengthen the role of citizens in decision-making and participation in the political process; and take effective measures to combat corruption and promote good governance.
Topic:
Corruption, Environment, Gender Issues, Public Opinion, Democracy, Economy, and Freedom
Political Geography:
Africa and Mauritania

883. Morocco: Public Opinion Report 2024

Author:
Arab Barometer
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Arab Barometer
Abstract:
Morocco has endured multiple crises in recent years including the Coronavirus pandemic and the earthquake that hit the country on September 9, 2023. The aftermath of these crises produces what could be described as two Moroccos: one for the wealthier and better educated, another for the poorer and less educated. Moroccans are clearly divided in their views of almost all issues based on their socioeconomic status (SES). Economic pressure persists, with only a third of Moroccans rating their economy positively. While optimism about the future of the economy has increased, it is largely driven by those with a higher socioeconomic status. Their less-fortunate compatriots are far less optimistic and more concerned about increasing inequality and food insecurity. Trust in the Moroccan government remains relatively low, but trust in parliament, regional government, judiciary, and civil society organizations has increased. Still, those struggling financially tend to be less trusting of all these bodies. Similarly, satisfaction with government performance on economic issues is low, especially among the poor. Moroccans are more satisfied with the provision of certain services, including security and infrastructure. On the other hand, education in particular is among the public services in which Moroccans exhibit the lowest levels of satisfaction. Corruption remains a major concern, with the government seen as not doing enough to combat it. This view is especially true among people with lower socioeconomic status. Wealthier and more educated Moroccans are more positive in their rating of the government’s work on combating corruption. However, many Moroccans are resorting to bribery or connection to navigate the bureaucracy. Economic conditions and corruption are causing Moroccans to consider emigrating. Youth and those facing financial pressure are far more likely to have a desire to leave their country, mainly in pursuit of better economic opportunities. Western countries remain the preferred destination for most of the potential migrants in Morocco, many of whom are willing to leave even if they did not have the required documents to do so. While support for democracy has fluctuated over the past few years, recent trends suggest an increase in support for democratic governance. Moroccans acknowledge that democratic systems have their shortcomings, yet they maintain a belief that democracy is preferable to other forms of governance and particularly support a multi-party parliamentary system.
Topic:
International Relations, Corruption, Environment, Gender Issues, Governance, Public Opinion, Democracy, Economy, Institutions, and Freedom
Political Geography:
North Africa and Morocco

884. Why Trump's tariff proposals would harm working Americans

Author:
Kimberly Clausing and Mary Lovely
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
At the beginning of its history, the United States relied on tariffs—taxes on imported goods—as its major source of government revenue. That changed starting in the early 20th century, with the enactment of the federal income tax and the advent of a new consensus recognizing tariffs as regressive, burdening the working class while leaving untaxed much of the income accruing to the wealthy. At present, less than 2 percent of government revenue in high-income countries comes from import taxes. Today, however, the United States may be on the cusp of reverting to an antiquated approach to funding its government. Presidential candidate Donald Trump is proposing to reduce US reliance on income taxes while increasing our reliance on import tariffs. He proposes extending expiring tax cuts from 2017 and has also suggested possible new rounds of tax cuts. At the same time, he has proposed a ten percent "across-the-board" tariff and a 60 percent or more tariff on imports from China. Together, these policy steps would amount to regressive tax cuts, only partially paid for by regressive tax increases. The tariffs would reduce after-tax incomes by 3.5 percent for those in the bottom half of the income distribution and cost a typical household in the middle of the income distribution about $1,700 in increased taxes each year. If executed, these steps would increase the distortions and burdens created by the rounds of tariffs levied during the first Trump administration (and sustained during the Biden administration), while inflicting massive collateral damage on the US economy. This Policy Brief leverages recent research to provide approximate calculations for the cost of the higher proposed tariffs to US consumers, considering the distribution of these costs across US households and the consequences for US federal revenues. In sum, Trump's tax proposals entail sharply regressive tax policy changes, shifting tax burdens away from the well-off and toward lower-income members of society while harming US workers and industries, inviting retaliation from trading partners, and worsening international relations.
Topic:
Elections, Tax Systems, Trade Policy, Donald Trump, and Protectionism
Political Geography:
North America and United States of America

885. The inflation surge in Europe

Author:
Patrick Honohan
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
For most of the decade before the COVID-19 pandemic, undershooting rather than overshooting had been the main inflation problem of the European Central Bank (ECB). During 2020, consumer prices in the euro area were falling; by the end of that year, average inflation since the introduction of the euro two decades earlier stood at only 1.6 percent per year. Things began to snowball in 2021. The 12-month inflation rate steadily accelerated. It reached double digits in the final quarter of 2022—more than twice the level it had ever reached since the euro’s introduction in 1999. Four striking features emerge from a review of the unexpected surge in European inflation since 2021: (1) The ECB’s monetary policy response lagged behind that of the US Federal Reserve, reflecting the more gradual evolution of inflation in the euro area and its distinct pattern of causes; (2) the range of inflation rates across different euro area countries has been unprecedented. This largely reflects the differential impact of war-related energy shocks (especially for natural gas piped from Russia) as well as the differential fiscal response by national governments partially insulating consumers from these shocks; (3) not all households were net losers from the inflation, with some benefiting from the fact that inflation reduced the real value of their indebtedness; and (4) the speed with which inflation was returning toward target during 2023 prompted concerns that the ECB’s monetary tightening might have been pushed too far, prolonging the output slowdown.
Topic:
Monetary Policy, European Union, Inflation, and COVID-19
Political Geography:
Europe

886. The influence of gasoline and food prices on consumer expectations and attitudes in the COVID era

Author:
Joanne Hsu
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Food and gasoline prices are extremely salient to consumers, who regularly purchase these goods, and these prices are highly visible. The shared experience of purchasing food and gasoline makes it no surprise that those prices have been blamed for the relatively dismal consumer views of the economy in 2023 amid strong economic indicators, including slowing inflation, low unemployment, and robust growth. At the same time, consumer inflation expectations have eased during this past year. This Policy Brief investigates the role food and gasoline prices play in influencing consumer inflation expectations and economic sentiment, as measured on the University of Michigan Surveys of Consumers, and focuses on the COVID inflationary episode. The author finds that, although consumer sentiment now appears to be more sensitive to inflation than prior to the pandemic, inflation expectations do not. Even though inflation has waned, consumers still spontaneously comment on the negative impact of high prices on their lives. That said, these persistently negative perceptions about inflation have not translated into persistently high inflation expectations.
Topic:
Inflation, COVID-19, Consumer Behavior, and Cost of Living
Political Geography:
North America and United States of America

887. Restructuring sovereign debt: The need for a coordinated framework

Author:
Sean Hagan
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
When a sovereign's debt is unsustainable, all stakeholders—the sovereign, its official creditors, and most private creditors—share an interest in a restructuring that quickly restores sustainability. Notwithstanding this general alignment of interests, the current restructuring process is subject to delay and unpredictability. Concerns regarding intercreditor equity have been exacerbated by the "sequential" nature of the restructuring process, where official creditors are generally expected to commit to debt relief terms before private creditors. To speed up the restructuring process, this Policy Brief proposes that the restructuring of official claims and private claims proceed in a parallel yet coordinated manner. To address intercreditor equity concerns, a new contingency mechanism would be available to allow simultaneous decision making: Before one creditor group decides to accept an offer, these creditors would know what everyone else is being offered. Such a mechanism would not be mandatory—there may be circumstances where one group is prepared to move before the others. Such a "Coordinated Framework" will require greater information sharing, consistent with the types of transparency reforms that have been advanced by the International Monetary Fund.
Topic:
Emerging Markets, IMF, and Sovereign Debt
Political Geography:
Global Focus

888. Climate action: Implications for factor market reallocation

Author:
Robert Z. Lawrence
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This paper considers climate policies, not from the perspective of their environmental impacts, but rather their likely effects on labor and investments. While the aggregate impact of the green transition on jobs and investment may be modest, it will require significant reallocation of labor and capital within and across industries. Although the green transition brings new opportunities for employment and investment in renewable technologies, many workers and communities tied to the fossil fuel industry may not benefit from these advances due to skills mismatch and geographic constraints. Both the United States and the European Union acknowledge the importance of achieving “climate justice” and “leaving no one behind” in their decarbonization efforts. However, current policies and resources in the United States may fall short, with inadequate assistance reaching too many communities and a narrow focus on green jobs. In Europe, while the Just Transition Fund complements existing programs, effective implementation of place-based policies remains challenging due to the need for specific, localized responses.
Topic:
Climate Change, Environment, Labor Issues, European Union, and Energy
Political Geography:
North America and United States of America

889. Trade policy, industrial policy, and the economic security of the European Union

Author:
Chad P. Bown
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Out of fear about its economic security, the European Union is transitioning to a new form of international economic and policy engagement. This paper explores some of the major trade issues surrounding the bloc’s economic security, the role of trade and industrial policies in achieving its objectives, and some of the economic costs of doing so. It begins by explaining why economic security is suddenly playing such a prominent role and providing early evidence to motivate these government interventions. It then turns to a case study—new policies associated with China’s exports of electric vehicles and graphite—that highlights the difficult choices and practical challenges the European Union faces in tailoring policy to address concerns over economic security. The paper then introduces the domestic policy instruments that the European Union, its member states, and other governments are pursuing to address economic security, including stockpiling and inventory management, investment or production subsidies, tariffs, export controls, and regulations on foreign investment, as well as the scope for selective international cooperation over such policy instruments. The paper concludes with some caveats about abandoning interdependence and lessons from history.
Topic:
Security, Industrial Policy, European Union, Trade Policy, and Economic Security
Political Geography:
Europe

890. Lessons from China's fiscal policy during the COVID-19 pandemic

Author:
Tianlei Huang
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Expansionary fiscal policy helped China's economy grow in 2020, a year in which most economies contracted because of the COVID-19 pandemic. Amid a broader pivot to policy and regulatory tightening, fiscal support was withdrawn in 2021. In 2022, government budget turned expansionary to ensure economic stability ahead of the Communist Party Congress, but the execution fell short and fiscal policy ended up being weaker than planned. A recurrent problem during the pandemic, however, was that local governments did not fully spend their budgets. Aside from the sharp drop in local governments' land sale revenue in 2022, which dragged down their spending, it was also caused by local governments' failure to fully utilize their special bond quotas approved by the central government for capital investment. China's fiscal policy during the COVID-19 pandemic highlights four issues with implications for fiscal policy making. First, the government needs to avoid projecting unrealistically high land sale revenue in its budgets. Second, it needs to reconsider its problematic use of local-government special bond as a major fiscal stimulus instrument. Third, it needs to make sure its deficit, growth, and inflation targets are consistent. Last, Beijing needs to be more tolerant of higher fiscal deficits, at a minimum ensuring that overall fiscal spending grows at least as rapidly as nominal output.
Topic:
Budget, Economic Growth, Fiscal Policy, COVID-19, and Fiscal Deficit
Political Geography:
China and Asia