China and Multilateral Development Banks: Positions, Motivations, Ambitions
The evolving relationships between the People’s Republic of China (PRC) and the major multilateral development banks (MDBs) reflect China’s evolution as a prospering developing country and a major power. Why has China been nurturing strong interests towards MDBs? This report focuses on changing positions, motivations, and ambitions concerning China and multilateral development banking.
Brexit Means Br(EEA)Xit: The UK withdrawal from the EU and its implications for the EEA
Because it extends the Single Market to the three EFTA States Iceland, Liechtenstein and Norway, the Agreement on the European Economic Area is not an EU external agreement comme les autres. This is particularly salient in the context of the UK withdrawal from the EU. The UK withdrawal will affect the three EFTA States’ citizens, businesses and other stakeholders in a way that is comparable to how it will affect citizens, businesses and other stakeholders from the remaining EU Member States. It is thus critical that the two intertwined processes of leaving the EU (“Brexit”) and consequently the EEA (“Br(EEA)xit”) are closely coordinated if the integrity of the Single Market is to be preserved, in line with EEA rules. The need for coordination between the EU, the UK and the three EFTA States to address the consequences of Brexit for the EEA is a foretaste, albeit specific, of the complex external implications of the UK withdrawal from all other EU external agreements.
The cyber frontier and digital pitfalls in the Global South
How does digitalisation lead to new kinds of global connections and disconnections in the Global South? And what are the pitfalls that accompany this development? Much of the policy literature on digitalisation and development has focused on the importance of connecting developing countries to digital networks. Good connection to digital networks may have a fundamental impact on societies, changing not only how individuals and businesses navigate, operate and seek opportunities, but also as regards relations between government and the citizenry. However, the rapid pace of this development implies that digital technologies are being put to use before good, functional regulatory mechanisms have been developed and installed. The resultant shortcomings – in state mechanisms, institutions, coordination mechanisms, private mechanisms, general awareness, public knowledge and skills – open the door to new kinds of vulnerabilities. Herein lie dangers, but also opportunities for donor/recipient country exchange. Instead of adding to the already substantial literature on the potential dividends, this article examines a less studied issue: the new societal vulnerabilities emerging from digitalisation in developing countries. While there is wide agreement about the need to bridge the gap between the connected and the disconnected, the pitfalls are many.
NEW BOOK: Is Russia turning its back on the West?
Has Russia strengthened its ties to East Asia – pulled back from the West?
The Political Economy of Russian Aluminium. Between the Dual State and Global Markets
This book addresses how the progress of the Russian aluminium industry, which has developed into an important global actor, has been influenced by the interaction of global market forces and the evolution of the Russian political system. After the collapse of the Soviet Union, Russian aluminium producers needed to adapt to changing framework conditions, both with regards to the global aluminium market and in Russia. Examining the most important changes in the organization of the global aluminium trade – the reorganization and consolidation of Russian aluminium industry and its ‘oligarchization’ – Godzimirski charts the evolution of the relationship between political and economic power in Russia, and the impact that this development has had on survival and adaptation strategies of key aluminium players in the country.
The networks and niches of international political economy
This article analyzes the organizational logics of how social clustering operates within International Political Economy (IPE). Using a variety of new data on IPE publishing, teaching, and conference attendance, the authors use network analysis and community detection to understand social clustering within the field. They find that when it comes to publishing and intellectual engagement, IPE is highly pluralistic and driven by a logic of ‘niche proliferation’. Teaching IPE, however, is characterized by a ‘reduction to polarity’ that emphasizes a dualism in ontological and epistemological frames. In the face of competitive exclusion pressures, intellectual communities regenerate themselves by constructing niches while simultaneously nodding to a common tradition.
Timely report on Chinese investments
The volume of Chinese investments in Europe has increased significantly in recent years.
Afghanistan: A Political Economy Analysis
This report provides a comprehensive analysis of the current state of Afghanistan, arguing that the Afghan state is fragile, and sustained through constant negotiations over power, resources and ideology. What began as a radical state-building and democratization project in 2001 was soon captured by elites. Some of which engages in semi-formal and informal governance structures to further their influence. Distribution of state revenue, largely from external donors, has been used to secure loyalty and maintain control. This has contributed to extreme state centralization, hampered development of state institutions, failed justice sector reforms, high levels of corruption and reduced government legitimacy, and lately an increase in poverty. On the positive side, access to education and health services has improved, partly due to the strong emphasis placed on the rights of women. The security situation has deteriorated since 2014. At present the government control less than 60 percent of the country and civilian causalities are steadily increasing. Conflicts in Afghanistan are exacerbated by the involvement of its neighbors. To improve security, as well as economic and social development, a negotiated peace settlement is needed. If the conflict is left unresolved (in fear of regional and international security concerns), a slow and steady deterioration of security, and economic and social development, is to be expected.
Customs-brokers as facilitators in international trade
Recent studies suggest that firms can reduce fixed trade costs by hiring intermediaries like trading companies. I argue that customs brokers – a type of intermediary rarely studied in economics before – can play a similar role. Using panel data of Norwegian trade transactions, I show that such brokers are commonly used to clear goods through customs. I find indications of lower sunk costs as well as fixed trade costs for firms that hire such services. However, engaging brokers can be risky, and traders in high-risk products like food are more likely to self-declare. Results are similar for importing and exporting, indicating that customs brokers facilitate both modes of trade.
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.