The ABCs of Financial Education: Experimental Evidence on Attitudes, Behavior, and Cognitive Biases

This paper employs a large-scale field experiment in India to study the attitudinal, behavioral, and cognitive constraints that may stymie the link between financial education and financial outcomes. Our research design combines financial education with (1) monetary incentives for correct answers to a financial knowledge test; (2) financial goal setting; and (3) personalized financial counseling. We find no effects of cash incentives on participants’ financial knowledge, but significant effects of both goal setting and counseling on real financial outcomes. In particular, combining goal setting with financial education encouraged relatively simple follow-up actions such as writing a budget or starting informal savings. Counseling, in turn, enabled the poor to undertake costlier or more difficult financial activities, including opening a formal bank savings account. Together, these findings identify important complements to financial education that may successfully bridge the gap between financial knowledge and behavior change.

Une volonté partagée de façonner un nouvel ordre mondial

In the West, the rise of nationalist populism reached a tipping point in 2016 when it generated both the UK vote for Brexit and the election of President Trump in the US. In contrast, over the same period, the BRICS have invested in strengthening inter-BRICS cooperation and the group’s commitment to the United Nations, global governance and economic globalisation. Their primary focus has been on financial, trade and economic cooperation. However, their ability to develop a shared analysis of the political and security dimensions of the global order seems to have come to a turning point in 2017, when they opted to focus their annual Summit on developing strategies to defend global governance, economic globalisation, free trade, and joint action on climate. How did we get to the point where it seems to be up to the BRICS to rescue globalisation ?

The Role of the Civilian Component in African Union Peace Operations

The role of civilians in African Union (AU) peace support operations (PSOs) is still not fully understood. As a result, civilian capacity development has not been well resourced in comparison with the military and police dimensions of the African Standby Force (ASF) and has only modestly developed since 2006. As at the end of 2016 the AU has deployed approximately 400 civilians across its PSOs in Burundi, the Central African Republic (CAR), Mali, Somalia and Sudan. The average size of the actual civilian component in each mission totalled approximately fifty people. The civilian components most commonly found in AU PSOs are Political Affairs, Human Rights and Protection, Public Information, Humanitarian Liaison, Safety and Security, Civil Affairs, Gender and Mission Support. Despite AU policies and PSO doctrine, the value of a multidimensional approach to PSOs, and the role that civilians perform in this larger context, is not widely recognised in the AU Commission, AU PSOs or among the AU’s key PSO partners. The AU has struggled to articulate clearly why it needs a multidimensional approach, what the function and contribution of the civilian components are, and how the civilians staff contribute to achieving the mandate of a particular mission. This will have to change if the AU is serious about undertaking comprehensive stabilisation operations.

Outsidership and the European Neighbourhood Policy. The case of Norway

This paper examines how and to what extent Norway adapts to and is affected by the European Union’s policy towards its neighbours in the East. In line with the overall topic of the special issue of Global Affairs, it investigates how Norway handles its ‘outsidership’ when formulating its policies towards Union’s Eastern partner countries that have signed Association Agreements with the EU (Ukraine, Georgia and Moldova). While Norway is not an EU member, it is still highly integrated in to most of the Union’s policy areas. It even has the habit of signing up to most of the EU’s declarations on foreign policy. However, the European Neighbourhood Policy is one of the policy areas where Norway is not participating. This means that it has the liberty to choose a different approach than the EU in its bilateral relations with these countries. Thus, this paper investigates what kind of balance Norway seeks between autonomy and integration in relation to the ENP partner countries. As this article shows, Norway seem to align itself to the policies of the EU also in this area, sometimes even without the Norwegian officials being fully aware of the extent to which this is happening.

Burden-sharing in NATO. The Trump effect won’t last

The Trump Administration has adopted a more confrontational and transactional approach to burden-sharing in NATO. It has threatened to “moderate” its commitment to the Alliance unless the European members increase their defence spending (US Mission to NATO 2017), and contribute more to out-of-area operations. Since President Trump entered the office, European defence spending has risen at a quicker pace, and the nature of the defence debate in Europe has changed. The Europeans are no longer debating whether they need to increase their spending; the questions discussed are how fast and how much. Is this evidence of a “Trump effect”, and will it last? This is the question addressed in this policy brief. Because it is hard to predict the future, we adopt an historical perspective.

Nepal: A Political Economy Analysis

This report is an integrated political economy analysis of Nepal. The main finding is that economic growth and poverty reduction have been steady in Nepal since the mid-1980s independently of a number of political upheavals, including ten years of civil war. The growth has been driven by remittances and an upward pressure on wages in local labor markets. As a result, poverty has declined and social indicators have improved. Despite the availability of private capital and increases in wages for the poor, there is still a massive need for public investments in infrastructure, agriculture, health, and education. In the political domain the recent local elections will reintroduce local democracy after 20 years. Elected local politicians are expected to boost local development efforts. The leading political forces in Nepal are the political parties. There are close links between politicians and business leaders, the political parties control the trade-unions, have links to civil society organizations, and the parties select high-level government officials. The civil war and the post-war ethnic uprising led to demands for an ethnic based federal republic. A compromise federal map was decided in 2015, with provincial elections scheduled for the fall of 2017. There are concerns that the ethnic agenda may escalate ethnic conflicts, and it will be essential for all parties to work for participation of all social groups within the recently established local units, as well as in the economy at large.

Mali: A Political Economy Analysis

Handelspolitikken under Trump

(Available in Norwegian only): Rapporten analyserer USAs handelspolitikk under president Trump, nærmere ett år etter Trumps valgseier. Trumps handelspolitikk innebærer slutten på 70 år med USA i ledelsen for det globale handelssystemet. Trumps politikk er fortsatt i utvikling, og bare ¼ av nøkkelstillingene i Trumps administrasjon er besatt. Trumps handelspolitikk er i noen grad en fortsettelse av en trend som har vært synlig det siste tiåret, med gryende polarisering mellom USA og Kina, og strid om hvor bindende det internasjonale samarbeidet i WTO (Verdens Handelsorganisasjon) skal være. Trumps handelspolitikk hviler på en forenklet analyse av USAs handelsunderskudd der handelsavtalene gis skylden; og en tilhørende aggressiv handelspolitikk det handelsavtaler skal reforhandles for å redusere det amerikanske handelsunderskuddet. Analysen gir støtte til at ubalanserte handelsavtaler kan ramme arbeidsplassene, og at ubalansert handel er et problem som bør tas mer alvorlig i handelslitteraturen. Kinas har også satt vestlig industri under press, men dette skyldes Kinas vekst snarere enn handelsavtalene. Balanserte handelsavtaler kan gi både arbeidsplasser og billigere import, og er derfor oftest en del av løsningen snarere enn problemet. Ved å bygge på handelsavtalene kan man dessuten utvikle globale regelverk som skaper like vilkår i den globale konkurransen. I motsetning til sine forgjengere kan Trump komme til å bryte med det internasjonale handelssystemet og svekke internasjonalt samarbeid. Trumps økonomiske nasjonalisme kan være til skade for både handelspartnere og det globale handelssystemet. I tillegg kan USA komme til å skyte seg selv i foten fordi proteksjonismen kan ha en betydelig kostnad; spesielt i en tid med omfattende internasjonale verdikjeder.