Tanzania: A Political Economy Analysis
This report provides a comprehensive political economy analysis of contemporary Tanzania. Focusing on developments since the election of John Magufuli as President, it traces the evolution of the country´s political economy. Three main developments are emphasized. First, significant efforts have been made at addressing corruption, reforming public service practice, and maximizing public revenues. Second, there has been a clear shift towards a state-led model of economic development. This reconfiguration is unfolding in an increasingly competitive political environment and in the context of long-standing symbiotic relationships between politics and business. Third, there has been an increasingly restrictive approach towards civil society. Representatives of the public have been arrested and detained, and open political gatherings have been banned. The potential impact of these changes on the political settlement are complex. Factionalism within the CCM in recent years have been characterized by repeated cases of grand corruption. Still, there has been remarkable party cohesion, related to the fact that the factions belong to a narrow elite, which with ultimately has shared interests. Effective state-led development faces several challenges. Political capacity to direct long-term developmental change has been challenged by the development of factions within the CCM. Moreover, there are limits to the state’s capacity to formulate and implement policy. Uncertainty over public finances, particularly regarding international commercial borrowing, will, in the short term at least, stymie efforts to make the public service more effective. The greater political challenge is that posed by CHADEMA. With the 2015 elections, it consolidated itself as the leading political opposition in mainland Tanzania, with stable leadership and a solid organization in much of the country. CHADEMA´s relationships with Tanzanian private-sector interests leave its supporters open to targeted actions by tax and regulatory authorities. The state´s repressive approach towards civil society reflects the level of threat perceived by the ruling elite. External issues – like shifting relationships with donors, the emergence of new international allies and financiers, and security threats from transnational groups – are more tangential to the future direction of the Tanzanian state. Their impact will depend on trajectories in the areas of political and administrative capacity, relations between capital and the state, and the levels of political and civic organization beyond the party and the state. Dialogue with development partners has remained generally poor, a decline that set in some years ago. Like other countries in the region, Tanzania is increasingly attracting investment and public debt finance from China, from emerging powers like Turkey, and from others with an investment interest in Tanzania, such as the Gulf states.
Russia’s New Asian Tilt: How Much Does Economy Matter?
The economic development of Russia’s Far East has been proclaimed a policy priority, to be facilitated by an ambitious turn or ‘pivot’ to Asia. This chapter assesses Russia’s economic reorientation towards Asia, offering an overview of the Far Eastern dimension of Russia’s economic relations with its major Asian partners in 2010–16, based on analysis of the dynamics of investment, trade relations and business climate development. Since 2014, trade with Asian partners has stagnated, while foreign investment (except for Chinese) has remained negligible. Moreover, trade is still mainly oriented towards markets in European Russia. The chapter concludes that Russia’s pivot to Asia has not yet become an economic pivot—and that such a turn would be more easily attainable under a non-sanctions regime.
Eit meir samankoppelet Asia – nye moglegheiter i Europa?
Handel og infrastrukturprosjekt skyt fart i Asia. Korleis kan det endre forholdet mellom land i Asia og Europa?
Globalization of intellectual property rights
Recent decades have witnessed a strong globalization process. This has been so for international trade and international capital markets, but also in the field of Intellectual Property Rights (IPRs). IPRs were formerly in the domains of nation states. International treaties have dictated convergence in IPR institutions across the world. This paper gives a short overview of these developments. Incentives for IPRs are stronger for more innovative countries. Therefore, innovative countries traditionally had stronger IPR than less innovative countries. A negotiated global treatment (like the TRIPS agreement) is likely to be a compromise between the needs in innovative and less innovative countries. Such agreements may therefore be complemented with additional agreements among innovative countries. The European Patent Office (EPO), and the planned European unitary patent are examples. IPRs are also incorporated into new preferential trade agreements. Many believe that this trend will result in convergence of stronger IPRs across countries, to the benefit of innovative countries, but at the cost of less innovative countries.
Frykten for populismen
Det snakkes mye og negativt om populistenes fremmarsj i Europa. Men det er ofte uklart hva som menes med populisme.
Øyvind Svendsen
Øyvind Svendsen er seniorforsker i Forskningsgruppen for global orden og diplomati ved NUPI. Hovedtema i forskningen hans er utenrikspolitikk, dip...
Myanmar: A Political Economy Analysis
Myanmar may for a long time remain in a transitional state with an uncertain future. After a series of political and economic liberalization reforms from 2011 onwards, Myanmar’s political trajectory remains open-ended, although the most plausible scenario remains a continued slow democratization process. The democratic opening has been driven largely by the interest of the military rulers in changing Myanmar’s relations with Western states and thereby gaining leverage vis-à-vis China. Continued military influence, persistent capacity problems in political parties and parliamentary politics, weak channels of political representation and limited administrative capacity give rise to critical questions about the substance of democratization and economic development in Myanmar. The country’s informal economy is one of the largest in the world and is upheld by informal elite pacts that were formed in the military era, often involving high-ranking officers and crony companies. Along with a high level of corruption and lack of redistributive mechanisms the continuing cronyism hinders inclusive growth. If these economic structures persist, social and ethnic conflicts may intensify and progress towards further democratization stall. Despite this, foreign direct investments in resource extraction and other sectors have been on the rise since 2011 and are likely to continue. Myanmar is also ranked as the world’s second-most vulnerable country to climate change. The government needs a better understanding of climate change and its effects – both its direct impacts on Myanmar and its indirect impacts via neighbouring countries such as Bangladesh. As Myanmar remains at a crossroads, smart external assistance may have greater long-term impact in Myanmar than in other recipient countries where the situation is less volatile. However, donors may also become increasingly frustrated and reduce their assistance because of the ongoing Rohingya crisis and because of the limited local capacity to absorb international assistance.
Norwegian exports in global value chains
This study analyses the participation of the Norwegian economy in global value chains in 2000-2014, following the gross exports decomposition framework in Koopman, Wang and Wei (2014) and using the World Input-Output Database (WIOD). The analysis shows that Norway increased its participation in global value chains through both backward and forward linkages, but the latter is more dominant and re ects Norway's endowments in natural resources. Moreover, the study reveals that services exports increased substantially during the period analysed and are even higher than manufacturing exports if measured in value-added terms rather than gross terms. This highlights the key role of services in global value chains as well as the relevance of measuring trade in value-added terms.