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  • Author: Louise Schaik Van, Louise Van Schaik
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Clingendael Netherlands Institute for International Relations
  • Abstract: This policy brief synthesises the findings of political economy analyses (PEA) in the energy sector in three fossil-endowed middle-income countries (MICs): Colombia, Indonesia and Kenya. It is based on a research project on political economy constraints and enablers influencing governments’ decisions on green growth options in the energy sector, where policy directions for a robust green growth trajectory are explored.
  • Topic: Energy Policy, Environment, International Political Economy
  • Political Geography: Kenya, Indonesia, Colombia
  • Author: Masahito Ambashi
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Economic Research Institute for ASEAN and East Asia (ERIA)
  • Abstract: This policy brief presents an overview of the ASEAN economy in terms of its economic relationship with multinationals, particularly Japanese companies, that have long invested in this region. ASEAN has been an attractor of foreign direct investment (FDI). Business interest in ASEAN has increased again recently due to the (i) relatively low wage of ASEAN compared to China, (ii) establishment of the ASEAN Economic Community (AEC), (iii) economic partnership network with a core of ASEAN countries, (iv) large-scale market covered by ASEAN, and (v) rise of CLMV countries (Cambodia, Lao PDR, Myanmar, and Viet Nam). In these trends, ASEAN has established a reciprocal economic relationship with other countries and regions. To develop its economy, ASEAN member states are expected to further advance the AEC at a high level. Hence, ASEAN must address challenges such as deepening further economic integration and narrowing development gaps in the region. Most importantly, ASEAN still needs to increase the attractiveness of its 'whole region' as an essential and integral part of global value chains to draw further FDI.
  • Topic: Economics, International Political Economy, International Trade and Finance, Global Political Economy
  • Political Geography: Japan, Southeast Asia
  • Author: Mark Hallerberg, Christopher Gandrud
  • Publication Date: 03-2017
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: Japan serves as a cautionary tale for Italy on how to clean up banking-sector problems. A general lesson is the need for policies to forthrightly address non-performing loans (NPLs) in countries with widespread banking problems. This helps address zombie banks and sluggish economic growth. The Japanese experience indicates that three elements are necessary to address NPLs: (a) sufficiently capitalised banks that can take losses from NPL write-downs; (b) an independent regulator that can identify problems and force action; and (c) tools to manage the orderly disposal of NPLs. The problem is not that this combination of policy tools is unknown, but that banks and governments lack incentives to use them in combination. Italy’s December 2016 package providing €20 billion for recapitalisation of banks is a step in the right direction. Similarly, pressure from the European Central Bank on Italian authori- ties and on banks to address NPLs is welcome. However, policy tools to manage and dispose of NPLs and, just as importantly, incentives to use them, are lacking. In January 2017, the European Banking Authority published a set of policy proposals for NPL resolution. Those include national and European-level public asset management companies (AMC), also known as ‘bad banks’. We argue that in Italy, the incentives to use such tools and dispose of NPLs have been weak.
  • Topic: International Trade and Finance, Political Economy, Economic structure, Global Political Economy
  • Political Geography: Japan, Italy
  • Author: Uuriintuya Batsaikhan, Robert Kalcik, Dirk Schoenmaker
  • Publication Date: 02-2017
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: London is an international financial centre, serving European and global clients. A hard Brexit would lead to a partial migration of financial firms from London to the EU27 (EU minus UK) to ensure they can continue to serve their EU27 clients. Four major cities will host most of the new EU27 wholesale markets: Frankfurt, Paris, Dublin and Amsterdam. These cities have far fewer people employed in finance than London. Moreover, they host the European headquarters of fewer large companies. The partial migra- tion of financial firms will thus have a major impact on these cities and their infrastructures. Banks are the key players in wholesale markets. United States and Swiss investment banks, together with one large German and three large French banks, will make up the core of the new EU27 wholesale markets. Some Dutch, Italian and Spanish banks are in the second tier. The forex, securities and derivatives trading markets are now in London. We map the current, limited market share of the four major cities that might host the EU27 client business. The expected migration of financial trading will lead to a large increase in trading capacity (eg bank trading floors). Clearing is the backbone of modern financial markets. A comparative overview of clearing facilities in the EU27 shows that Germany and France have some clearing capacity, but this will need to be expanded. The ownership of clearing is often intertwined with stock exchanges. Were the planned LSE-Deutsche Börse merger to go ahead, LSE would sell the Paris subsidiary of its clearinghouse. In terms of legal systems, there is an expectation that trading activities will be able to continue under English contract law, also in the EU27. A particular challenge is to develop FinTech (financial technology) in the EU27, as this innovative part of the market is currently based in London. We estimate that some 30,000 jobs might move from London to the EU27. This will put pressure on the facilities (infrastructure, offices, residential housing) in the recipient cities. The more the European Union market for financial services is integrated, the less need there will be for financial firms to move to one location, reducing the pressure for all facilities to be in one city (see Sapir et al, 2017, which is a companion piece to this paper).
  • Topic: International Political Economy, International Trade and Finance, Brexit
  • Political Geography: Britain, Europe
  • Author: Maria Demertzis, André Sapir, Guntram Wolff
  • Publication Date: 02-2017
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: The United States is the European Union’s most important trade and bilateral investment partner, which has, until now, supported a multilateral trade system and European integration and has provided a security guarantee to the countries of the EU. But like other advanced economies, the US’s relative weight in the global economy has declined. The new US administration seems intent on replacing multilateralism with bilateral deals. In trade, it aims to secure new trade deals in order to reduce bilateral trade deficits and to protect, in particular, the US manufacturing sector. In climate policy, the US commitment to the Paris Agreement is being questioned. In defence, the security umbrella appears less certain than previously. The overall promise behind this change of direction is to put ‘America first’ and deliver better results for US citizens.
  • Topic: International Political Economy, International Trade and Finance, Bilateral Relations, Multilateral Relatons, Political stability
  • Political Geography: Europe, United States of America
  • Author: Andre Sapir, Dirk Schoenmaker, Nicolas Veron
  • Publication Date: 02-2017
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: The United Kingdom’s exit from the European Union creates an opportunity for the remaining EU27 to accelerate the development of its financial markets and to increase its resilience against shocks. Equally, Brexit involves risks for market integrity and stability, because the EU including the UK has been crucially dependent on the Bank of England and the UK Financial Conduct Authority for oversight of its wholesale markets. Without the UK, the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability. Furthermore, losing even partial access to the efficient London financial centre could entail a loss of efficiency for the EU27 economy, especially if financial developments inside the EU27 remain limited and uneven.
  • Topic: Economics, International Political Economy, International Trade and Finance, Political stability, Brexit
  • Political Geography: Britain, Europe
  • Author: Robert Kalcik, Guntram Wolff
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: Brexit offers a political opportunity for the European Parliament to reform the allocation of seats to member states. This Policy Contribution explores different options for reform and their implications for equality of representation and distribution of seats to countries, within the constraints set by the EU treaties.
  • Topic: International Organization, International Affairs, Political Theory, European Union, Democracy, Brexit
  • Political Geography: Europe
  • Author: Zsolt Darvus
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Bruegel
  • Abstract: The ‘poverty’ target set by the European Commission aims to lift “over 20 million people out of poverty” between 2008 and 2020 in the EU27. Progress to date against this target has been disappointing. Why is it so hard to reach the Europe 2020 ‘poverty’ target? What does the poverty indicator actually measure?
  • Topic: Economics, International Political Economy, International Trade and Finance, Poverty
  • Political Geography: Europe
  • Author: Mikkel Runge Olesen, Matthew Hinds
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: The election of Donald Trump as US president was met with considerable unease in Europe. This has not least been the case among those who, like the UK and Denmark, consider themselves among America’s closest allies. In the policy brief, Matthew Hinds and Mikkel Runge Olesen take stock of the US special relationships in Europe – large and small. In the policy brief they discuss both the classical “Special Relationship” between the US and the UK, as well as the US-Danish relationship, as an example of a small power that has chosen to give the relationship to the superpower premium priority. Hinds and Runge Olesen find that Trump may destabilize relations, but also that he may open up for new opportunities as well – especially for the UK.
  • Topic: International Relations, International Affairs
  • Political Geography: Britain, America, Europe
  • Author: Signe Marie Cold-Ravnkilde, Peter Albrecht, Rikke Haugegaard
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: Peacekeepers in the UN stabilization mission in Mali (MINUSMA) operate under very difficult conditions, especially in the outskirts of the mission. The recent jihadist attack on a military base in Gao in northern Mali, killing 60 and wounding more than 100, is the latest example of how dangerous working in this part of the country is. This policy brief, based on fieldwork in Mali, analyses the challenges to the mission of supplying fuel, food and water to these areas. In doing so, it describes the inequality that exists between African and non-African soldiers.
  • Topic: United Nations, International Security, Peacekeeping
  • Political Geography: Mali
  • Author: Peter Albrecht, Signe Marie Cold-Ravnkilde, Rikke Haugegaard
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: n 2014, the UN peacekeeping mission in Mali (MINUSMA) established an intelligence capability that is unprecedented for how peacekeeping operations are organized. An All Sources Information Fusion Unit (ASIFU) was set up to assist MINUSMA in countering asymmetric threats faced by mission personnel and the local population. This policy brief focuses on how inadequate collaboration and lack of trust between European and African forces in the mission impede sharing of intelligence. Insight is provided on why and how the intelligence capability could benefit from the cultural knowledge and language skills of African troops. The policy brief is one of the outputs of a project that has explored the plight of African peacekeepers in MINUSMA. The project is a collaborative effort between DIIS and the Royal Danish Defence College. It is funded by the Danish Ministry of Defence.
  • Topic: United Nations, International Affairs, Peacekeeping
  • Political Geography: Mali
  • Author: Signe Marie Cold-Ravnkilde, Thomas Mandrup
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: Despite that South Africa deploys the highest numbers of female soldiers in the United Nations Organisation Stabilization Mission in the Democratic Republic of the Congo (MONUSCO), significant challenges to changing a military culture that tacitly accepts sexual exploitation and abuse (SEA) of local populations in the DRC remain. A new DIIS policy brief discusses the measures taken to adress SEA in MONUSCO. In the South African contigent in MONUSCO, 18% of the military personnel are women compared to the average of 3.8% for UN peacekeeping missions. The brief argues that strengthening in-mission gender training and investigtative capacities will be small, yet realistic, steps forward. Furthermore, the UN the should put more pressure on troop contributing countries to hold their defence leadership accountable for effective command and control enforcement. The policy brief is based on a collaborative research between DIIS and the Royal Danish Defence College, RDDC.
  • Topic: United Nations, International Affairs, Peacekeeping
  • Political Geography: Democratic Republic of the Congo
  • Author: Andrew J. Tabler
  • Publication Date: 02-2017
  • Content Type: Policy Brief
  • Institution: The Washington Institute for Near East Policy
  • Abstract: In this new Transition 2017 paper, Institute expert Andrew J. Tabler argues that Syria remains de facto partitioned, making the establishment of safe zones in non-Assad-controlled areas the Trump administration's most expedient course of action. Moreover, it would further Washington's cause to drive a wedge into the country's Russia-Iran alliance, and both isolate and pressure the Assad regime. If Washington's objectives in Syria are to defeat U.S.-designated terrorist groups and stem the outflow of refugees, President Bashar al-Assad is under no circumstances the right person to entrust with these missions. Simply in practical terms, he lacks the manpower to retake and hold the two-thirds of Syrian territory outside his control any time soon, despite having sufficient support from Russia and Iran to maintain control in large parts of the country. But more important, Assad is an avowed adversary of the West, undeserving of its cooperation.
  • Topic: International Relations, Civil War, International Security, International Affairs, Neoimperialism
  • Political Geography: Russia, America, Iran, Syria
  • Author: Lori Plotkin Boghardt, Simon Henderson
  • Publication Date: 02-2017
  • Content Type: Policy Brief
  • Institution: The Washington Institute for Near East Policy
  • Abstract: The Trump administration has an opportunity to reset, tighten, and maximize America's strategic relations with the Gulf states. For the United States, expanded security cooperation and coordination could be a force multiplier in campaigns to achieve key policy goals, such as countering Iran's destabilizing policies and defeating the Islamic State. Gulf leaders have expressed optimism over the new administration's gestures, despite its "America First" rhetoric. But the administration also faces challenges, including those brought about by its own emphasis on "radical Islamic terrorism." This two-part Transition 2017 paper, featuring contributions by Gulf experts Lori Plotkin Boghardt and Simon Henderson, navigates the complex U.S.-Gulf relationship. The first essay provides an overview of its basic tenets, stressing the importance of rapport to bilateral ties and discussing key policy priorities. The second essay narrows the focus to the Washington-Riyadh link, the most important U.S. tie with the conservative Gulf. It analyzes differences in viewpoint, policy options, and some anticipated Saudi responses on the core issues of oil, terrorism, Iran, Yemen, Syria, Gulf allies, and the Sunni bloc.
  • Topic: International Relations, International Cooperation, International Security, International Affairs
  • Political Geography: America, Middle East
  • Author: Irene Costantini
  • Publication Date: 03-2017
  • Content Type: Policy Brief
  • Institution: Middle East Research Institute (MERI)
  • Abstract: The Shia Block is realistically the key determinant for national reconciliation to occur in Iraq. However, its internal divisions make it a problematic and non-unitary interlocutor for national, regional, and international initiatives. So far, the Block has outlined two separate and independent plans: al-Hakim’s “Historical Settlement” and al-Sadr’s roadmap
  • Topic: Conflict Resolution, International Security
  • Political Geography: Iraq
  • Author: Tomáš Kaválek
  • Publication Date: 03-2017
  • Content Type: Policy Brief
  • Institution: Middle East Research Institute (MERI)
  • Abstract: On 3 March, clashes erupted between the PKK-linked forces and the KDP’s Rojava Peshmerga near Khanasor in the district of Shingal. These events now more than ever highlight the need for a negotiated compromise between the KRG and the PKK; and for the international community to actively intervene.
  • Topic: International Relations, International Security, Political Theory
  • Political Geography: Middle East
  • Author: Irene Costantini
  • Publication Date: 02-2017
  • Content Type: Policy Brief
  • Institution: Middle East Research Institute (MERI)
  • Abstract: Iraq and Libya are facing similar challenges: addressing the hurdles of socio-economic recovery in areas liberated from the Islamic State (IS); facing a fiscal crisis in the midst of continuous political tensions; and striking a power balance between central and local authorities, serving the interests of the people.
  • Topic: International Relations, International Security, ISIS
  • Political Geography: Middle East
  • Author: Athanasios Manis
  • Publication Date: 01-2017
  • Content Type: Policy Brief
  • Institution: Middle East Research Institute (MERI)
  • Abstract: The Iraqi and Turkish leadership have restored direct contact, thus providing an opportunity for dialogue. However, the extent to which this can lead to a sustainable normalisation process and furthermore to a deepening of their relationship is highly questionable. This policy brief argues that the main problem lies with the fact that a win-win scenario of overlapping or complementary interests does not seem to be driving the leaderships’ actions. Instead, it is ad hoc developments external to their bilateral relationship that have a positive effect for the time being, such as the rapprochement between Russia and Turkey, and subsequently a concerted attempt between Russia, Turkey and Iran to stabilise the region.
  • Topic: Conflict Resolution, International Relations
  • Political Geography: Turkey, Middle East
  • Author: Katarina Djokic
  • Publication Date: 03-2017
  • Content Type: Policy Brief
  • Institution: Belgrade Centre for Security Policy
  • Abstract: This paper presents a performance analysis of the G-4 Super Galeb military trainer aircraft modernization project. The analysis shows that the Ministry of Defense has to review the need for this project as soon as possible, in view of the announced equipping of the Serbian Armed Forces with MiG-29 fighter planes, several-year delay of the beginning of the project and Su- per Galeb maintenance difficulties. The paper also shows that the Ministry of Defense and the Serbian Armed Forces cannot effectively plan modernization and equipping projects without a top-level political decision on what type of army Serbia needs, and without a more decisive fis- cal policy, which would ensure funds for priority projects on a medium-term level.
  • Topic: International Security
  • Political Geography: Serbia
  • Author: Maha Yahya, Jean Kassir
  • Publication Date: 03-2017
  • Content Type: Policy Brief
  • Institution: Carnegie Endowment for International Peace
  • Abstract: A sustainable political settlement to end the multiple conflicts in Syria will not be possible without a real focus on the challenges of refugee returns. The complexities of the Syrian wars as well as previous international experiences with similar conflicts underscore that ensuring long-term peace requires a more focused attention on the challenges for effective repatriation of refugees and internally displaced persons, including significant security and protection guarantees. Without these, and irrespective of the eventual shape of a political solution, their return may be neither possible nor sustainable—with significant repercussions for peace in Syria, neighboring countries, and states beyond.
  • Topic: War, International Security, Refugee Crisis
  • Political Geography: Syria