what What Pike Place teaches us about place governance: A Q&A with John Turnbull By webfeeds.brookings.edu Published On :: Tue, 29 Mar 2016 13:30:00 -0400 Editor's Note: This discussion with John Turnbull, director of asset management at the Pike Place Market Preservation and Development Authority, is the first in a series of Q&As with urban practitioners for the Anne T. and Robert M. Bass Initiative on Innovation and Placemaking. Pike Place Market in Seattle is a leading example of how intentional governance can help vibrant urban spaces reach their potential as platforms for innovation. John Turnbull, director of asset management at the Pike Place Market Preservation and Development Authority, sat down for an interview to tell us more about the market and the role of the Preservation and Development Authority (PDA) in its operation. People outside Seattle tend to know Pike Place as a fish market, but it offers so much more. What makes the market special? The Pike Place Market is a beloved part of Seattle and really unlike any other place. It’s open 363 days a year and provides space for local farmers, artisan vendors, and small businesses to thrive. It offers a wide range of social services, including a food bank, a health clinic, a senior center, child care and preschool, and assisted living for the elderly. It’s also home to nearly 500 residents who live in a mix of rent-subsidized apartments, market-rate units, and luxury condos as well as a boutique hotel and a bed-and-breakfast—all within the four-block district. Our sense of place depends on the permeability of private/commercial/public spaces, and we make a great effort to ensure that the corresponding mix of activity creates space for personal interactions. Public support has always been a key component of the market’s success. It was first established in 1907 in response to public demand for fresh produce at fair prices. Seattleites kept the market from the wrecking ball in the 1960s and 1970s and have consistently provided public funds for capital investments—even in the midst of the Great Recession. The market’s focus on supporting local independent business and one-to-one relationships is unique enough to create both a community sense of identity—Seattle’s “soul”—and an attraction for tourists and visitors. This has been part of the market’s identity for more than a century and has continued under the PDA’s stewardship these last 40 years. How does the market operate? Who’s in charge? The market’s been around since the early 1900s but its current governance structure dates back to the 1970s, when the market was almost leveled in the name of urban renewal. A group called Friends of the Market formed to fight the city’s redevelopment plans and in 1971 ran a successful ballot measure campaign to save the market. That ballot measure established the Market Historic District and created the Pike Place Market Historical Commission to make decisions about future construction and capital investments. Commissioners are appointed by the mayor, half from a list drawn up by community organizations and half from people who live, conduct business, and own property in the market district. The commission was created to keep city government from dismantling the market, so its decisions on use, design, and business management are final, not just advisory. Overturning a commission decision requires a court appeal—and even then, appeals can be based only on questions of fair process and/or failure to follow commission guidelines. The commission reworked the urban renewal plan to preserve the architectural and social fabric of the market. To support these goals, the city created an independent Preservation and Development Authority to oversee financial operations, development, and day-to-day management of the market. The charter [document download] that established the PDA in 1973 continues to be a guiding force for us—we refer to it all the time. It defines the PDA’s specific powers and responsibilities, which include managing the properties in the Market Historic District, supporting local farmers and small-business owners, and providing social services for low-income residents and others in the market community. Funding for social services and programs is coordinated by the Pike Place Market Foundation, which is separate from the PDA. How are decisions made? The PDA executive director and staff handle day-to-day business operations, but most decisions concerning contracts, tenant relations, budgets, and the like are finalized by the PDA Council, a group of 12 volunteers who are appointed for four-year terms by either the mayor, the Pike Place Market Constituency, or the PDA Council itself (each appoints four councilmembers). The charter created the PDA as a public steward for the market that’s much more nimble than a governmental agency and much more accountable to the surrounding community. The charter requires unusual transparency, including public meetings to approve any expenditures over $10,000; bond issues; donations made by the PDA; and adoption of the annual budget and capital budget. Meanwhile, new businesses, changes in business ownership, and modifications to buildings require approval from the Market Historic Commission, which has regular biweekly meetings that include time for public comment. Nothing happens behind closed doors. How does the PDA get its funds and how is that funding deployed? Over 60 percent of our revenue comes from commercial tenants, with residential rents, daystall rents and fees, parking fees, and incomes from various programs and investments making up the rest. This year we expect total revenues over $18 million, which is more than $1 million more than we projected for 2015. About three-quarters of budgeted expenses come from tenant services, which include everything from maintenance and security to insurance, utilities, and property management. Another 14 percent goes to PDA management and administration, and the last 10 percent goes toward marketing and other programmatic expenses. The charter also gives the PDA bonding authority, which we used for the first time this past year. The $26 million in bonds will pay down existing debt and finance the new MarketFront expansion that’s slated to open next year. The PDA Council operates the market as a business, but it doesn’t make decisions strictly based on profit. We think about return on investment in terms of social benefit to the community. The council looks at a whole host of qualitative measures that aren’t easily captured by quantitative metrics. For instance, how do you measure “local pride”? That’s why we end up referring to our charter so often—and also why we encourage our constituents to use the charter guidelines to measure our results. So through the council and the charter, we’ve created a form of community-oriented economics that keeps us accountable to our constituents and lets us reinvest earnings to provide social services and keep residential and commercial rents low. Lots of places are looking to innovation as a way to drive sustainable economic growth. Do you see Pike Place Market as a place for innovation? Innovation is an important aspect of what happens in the market, though it looks different from what you might see in other more tech-oriented innovation districts. We offer highly localized small business incubation that’s focused on building a strong local economy. By providing a supportive environment for new businesses and strictly limiting opportunities to new ventures that haven’t yet built a customer base, we’ve created an active laboratory for experimentation. We have a history of providing a solid base for new businesses—especially ones that are food-related. Starbucks, Sur La Table, and a large number of specialty food businesses got their start in the market. And there are an equally large number of culinary ventures whose lead chefs look to the market as a central source of inspiration and community. We support economic growth by helping new ventures get established—which for many involves developing an international presence—while also attracting customers to spend money in our community. Seattle has grown by leaps and bounds in recent years, thanks in large part to a vibrant tech sector. How has this affected Pike Place Market? Over the last few years, we’ve seen some significant changes in shopping patterns. Lots of neighborhoods now have weekly farmers’ markets, and grocery stores have been moving toward a more market-like shopping experience, which has meant fewer people shopping for groceries at the market. We’re also seeing more millennials and a lot more tourists, especially in the summer. These changes got us thinking about what the market needs to do to stay relevant. Bringing in new businesses and younger entrepreneurs is part of this strategy, as are initiatives like our pop-up Express Markets, which bring fresh produce to different locations throughout the city mid-June through September. This summer we’re starting a weekly evening market at Pike Place so that local customers can shop without having to wade through the weekend tourist crowds. We’ll always be hyper-local and focused on building a strong community of market patrons and vendors. That emphasis on personal connection sets the market apart—it’s something you just can’t replicate with e-commerce. Authors Jessica A. Lee Full Article
what What China’s sexual revolution means for women By webfeeds.brookings.edu Published On :: Thu, 09 Apr 2015 15:30:00 -0400 Two decades ago, Hillary Clinton delivered a speech in Beijing that inspired feminists around the world, declaring “women’s rights are human rights.” Since that declaration, a lot has changed for women globally. But what has changed for women in China? While Chinese women today have increased freedoms, there is still a long way to go before gender equality is realized. Civil unrest concerning gender inequality recently made headlines in China and abroad when a group of five female protesters in China were arrested and jailed for publicly demonstrating against gender inequities, such as inequality in higher education and domestic violence. This incident underlined much of the commentary at a recent Brookings’s John L. Thornton China Center forum on women’s issues and gender inequality in China, during which the following key messages were conveyed: China is in the midst of a rapid, if quiet, sexual revolution China’s first and leading sexologist, Li Yinhe, delivered a keynote address that emphasized that when it comes to sex, China is in the midst of an “era of important changes.” Li explained that all sexual activities before marriage were illegal in China before 1997 because of a “hooliganism law,” and a woman could be arrested for having sex with more than one man. Thus, premarital sex was forbidden. In surveys in 1989, only 15% of citizens reported having premarital sex—and “most of them were having sex with their permanent partners,” Li said. That law was overturned in 1997, and recent surveys show that 71% of Chinese citizens admit to having sex before marriage. This is a dramatic change in a short period of time, and marks what Li asserts is a sexual revolution for Chinese citizens. Chinese law still lags behind changes in social customs While some sex laws have adapted, others are far behind. Li highlighted some “outdated” sex laws in China that are still “on the book[s],” but that are no longer strictly obeyed by the Chinese people. Li said the indicators are clear that the force of these laws is waning. There are fewer people being punished for these offenses and the punishments are becoming increasingly less severe. Her discussion stressed four areas where public opinion has changed drastically over the last few decades, but Chinese laws haven’t adapted: Pornography: Pornography isn’t considered to be protected as it is in the U.S. In contrast, Chinese law strictly prohibits creating and selling porn. In the 1980s, porn publishers would be sentenced to death. Now the punishment is less severe—for example, a 24-year-old Beijing woman published seven “sex novels” online. Her viewership was 80,000 hits on her novels, but her punishment was only six months in criminal detention. Prostitution: Prostitution is another activity affected by outdated laws in China, where any solicitation of sex is strictly illegal. In the early-1980s through late-1990s the punishment for facilitating prostitution was severe. In 1996, a bathhouse owner was sentenced to death for organizing prostitution. Now, prostitution is widely practiced and the most severe punishment for organized prostitution is that those managing sex workers are ordered to shut down their businesses. Orgies and sex parties: Chinese law used to brutally punish swingers and individuals who planned sex parties. For example, in the early-1980s “the punishment for spousal swapping was death…[and] people would be sentenced to death for organizing sex parties,” Li explained. But this is another area where the punishment for the law has now become less strict. In 2011 in Nanjing, an associate university professor organized a sex party with 72 people, and the “punishment for him was three and a half years in prison.” Also, in 2014 in Shanghai, some citizens recently organized an online sex party, and their punishment was only three months of criminal detention. According to recent private surveys, “many people are [engaging] in sex parties or orgies.” While in theory these are punishable by criminal law, “no one reports [them], so they do not get noticed,” Li said. Homosexuality and same-sex marriage: In regards to homosexuality, Li was quick to note that China’s view of homosexuality is historically very different from Western views. For example, in some U.S. states, laws “criminalized or deemed homosexual activities illegal.” But throughout China’s history, there were not severe repercussions or the death penalty for homosexuality, and it “was never illegal.” However, this is not the case for same-sex marriage. Li thinks it will be “hard to predict” when same-sex marriage might be legalized. Chinese women will have sexual freedom, but when isn’t clear So what does the future hold for these laws? Li explained that sex is a “hot topic” right now in Chinese public debate, and the “general consensus among legal scholars and sociologists is that these [outdated] laws need to be removed.” Those who oppose removing these laws are “in the minority.” While that may be true, she suggested it would be difficult to “form a timetable” when politicians might consider amending these laws. As for the five young women sentenced to jail last month, Li said she usually tries to stay out of politics, but thinks people “should stand up and speak out” when their own rights are being violated. Li argued that jailing these women for expressing their opinions violated the rights of all women—and hopes that other women speak up about their arrest. If you are interested in learning more, watch Li Yinhe’s full keynote and the entire panel event here: Alison Burke contributed to this post. Authors Alexandria Icenhower Full Article
what What's at Stake for Pittsburgh? The G-20 Should Focus on What's Good for Cities By webfeeds.brookings.edu Published On :: Tue, 22 Sep 2009 10:54:30 -0400 There's been a lot of talk of Pittsburgh's "new economy" as a key reason for the city's star turn as host of this week's G-20 summit, but little has been said about the region's "next economy" -- what comes after the current slump.It's beginning to be created under our noses. Though seemingly abstract, the G-20's big-picture decisions -- on dialing down the extraordinary fiscal and monetary steps taken in the past year, building a new regulatory architecture for global finance, and starting the process towards a more balanced global economy and sustainable future -- have big implications for metropolitan areas. Pittsburgh's stake in the G-20 deliberations goes beyond filling up local hotels and restaurants or hiring additional police -- and even beyond showcasing the region's resilience to the recession. The fact is that Pittsburgh already is a global metropolis, with deep and growing ties to many of the G-20 countries because of its position as a supplier to the global steel industry (and still a maker of some types of steel), its burgeoning involvement in clean-energy sectors and its established position as a global center of education and health care. Bayer, the German pharmaceutical conglomerate, has its U.S. headquarters in Pittsburgh, employing some 2,700 workers, including 1,200 at local medical-device manufacturer Medrad. Gamesa, the Spanish wind-energy giant, opened its first North American plant in Ebensburg, about 75 miles east of Pittsburgh. All told, more than 300 international firms from 26 different countries operate in the region, employing tens of thousands of people. Pittsburgh's goods and services exports make up more than 14 percent of the region's gross metropolitan product, with the lion's share of goods headed to Canada, China, Japan and major economies in Europe -- all G-20 partners. Given Pittsburgh's global status, the G-20 discussions have substantial implications for the future of the region's $100 billion economy. The big question, at this summit and others in the future, is how to rebalance the global economy. The Great Recession followed a period of excessive consumption in the United States as Americans spent more on homes and consumer goods than they produced. The fix is easy to state, but difficult to engineer. As Larry Summers, the head of the White House National Economic Council, said recently, "The rebuilt American economy must be more export-oriented and less consumption-oriented." This rebalancing will require major and sustained action on currency values and trade policy in the United States as well as in large export economies like China, Germany and Japan (which will need to consume more). As this occurs, U.S. metro areas like Pittsburgh could benefit substantially given their unique assets and special niches. While this won't quite be a 21st-century version of the equation "what Pittsburgh makes, the world takes," the combination of a more export-oriented trade policy and higher costs for carbon emissions (also to be discussed at the G-20 summit) present the region's economy with both opportunities and threats. On the plus side, Pittsburgh could export more to the rest of the world and its steel-industry suppliers could benefit from increased exports by U.S. steelmakers. Higher prices for gasoline and jet fuel could mean that manufacturers and retailers in the United States would move away from far-flung networks of global suppliers and rely more on U.S. companies. There is a potential downside for Pittsburgh, as well: for instance, as steelmakers in Germany and other countries export less and face higher costs of using U.S.-based suppliers, they might rely less on machinery and repair services from Pittsburgh. To help ensure that the benefits of a rebalanced U.S. economy and a new climate regime outweigh the costs to the Pittsburgh area, local corporate, labor, political, university and civic leaders need a sharp regional business plan to guide the economic policies and innovation investments that they and the federal and state governments make in the Pittsburgh area. Pittsburgh will have to continue to reclaim polluted industrial "brown fields" for post-industrial use -- an example for cities around the country and world. Pittsburgh also will need to figure out how to draw more international traffic to its metropolitan airport, which currently offers only one direct flight to Europe. The upshot: It is time for U.S. metropolitan regions to become more globally fluent and for national leaders to connect their big-picture policies to the fortunes of the urban areas that drive their economies. Only in this way can the United States, and Pittsburgh, move to the next stage of their economic evolution. Authors Bruce Katz Publication: Pittsburgh Post-Gazette Full Article
what What America's Cities Need By webfeeds.brookings.edu Published On :: Fri, 04 Jun 2010 10:02:00 -0400 Cities across America are undergoing massive demographic change, and Philadelphia is no exception. Understanding this change, and effectively managing it, will be key to our national progress and prosperity in this decade and beyond. A new report from the Brookings Institution, "The State of Metropolitan America," describes a nation that has grown larger, more diverse, more suburban, and more educated in the first decade of this century. These characteristics offer the potential for a tremendous advantage among industrialized nations as the global economy becomes more integrated and more competitive.The Philadelphia region, for instance, is now home to 92 colleges and universities - more than the renowned concentration of higher education institutions in the Boston area. In our research on the demographic transformation of the nation, we refer to Philadelphia as a "skilled anchor" - one of 19 metro areas, including Baltimore, Rochester, N.Y., and Boston, that have made a transition from manufacturing and shipping to service-based economies. Medical and educational institutions have often driven this transformation, along with specialized manufacturing. Skilled anchors face challenges, however, due to other trends. While 32 percent of Philadelphia area residents over the age of 25 hold bachelor's degrees, only 21 percent of residents of the city itself have been educated beyond high school. That is cause for concern, especially as baby boomers begin to retire - most notably in the suburbs, where more than 40 percent of the residents are boomers and seniors. The young people who will take their place in the workforce are not completing college education at the same rate as their predecessors. This is problematic considering that median household income declined during the 2000s, and higher education is closely correlated with higher wages. Meeting the region's future workforce challenges - that is, connecting residents to high-quality jobs in the education, medicine, life-sciences, and pharmaceutical sectors - will require education policies that prepare all children for successful postsecondary education, so they can build on the economic momentum of the retiring baby boomers. As part of the national Achieving the Dream Initiative, several foundations are working together to help community colleges in Michigan, Ohio, and Indiana improve completion rates for minority and low-income students who are most at risk of dropping out and not getting the skills and credentials they need to succeed in the workforce. Other demographic trends represent challenges as well as opportunities. The Philadelphia region's foreign-born population grew by 30 percent in the 2000s, albeit from a relatively small base. Efforts to incorporate immigrants into the mainstream of economic and civic life - such as Philadelphia's language-access policy, its one-stop education office, and the region's emerging Metropolitan Caucus - are all praiseworthy. But more is required. At the same time, while solutions must be built from the ground up, the Philadelphia region can't go it alone. The federal government can't wait for megacities such as Philadelphia to work out the massive transformation under way by themselves. There are macro-level federal responses to these trends that could and should emanate from Washington. Among them are comprehensive immigration reform that includes explicit means for improving the integration of new Americans into our society and economy; a revamping of transportation and housing policy that reduces energy-inefficient sprawl, accommodates seniors, and provides access to employment centers; programs to increase postsecondary education for our emerging workforce; and a redoubling of efforts to make work pay for working families, such as the Earned Income Tax Credit. Over the past decade, between two recessions, Philadelphia has made much progress. Today, the region must capitalize on its hard-earned gains and address emerging challenges with similar conviction. Philadelphia and America are changing in front of our eyes. Public policy decisions crucial to our health, prosperity, and security need to be informed by what's happening now. We cannot afford to look for our future in the rearview mirror. Authors Bruce KatzJudith Rodin Publication: Philadelphia Inquirer Full Article
what What to do about the coming debt crisis in developing countries By webfeeds.brookings.edu Published On :: Mon, 13 Apr 2020 16:22:49 +0000 Emerging markets and developing countries have about $11 trillion in external debt and about $3.9 trillion in debt service due in 2020. Of this, about $3.5 trillion is for principal repayments. Around $1 trillion is debt service due on medium- and long-term (MLT) debt, while the remainder is short-term debt, much of which is normal… Full Article
what What do we know about the coronavirus and the global response? By webfeeds.brookings.edu Published On :: Mon, 10 Feb 2020 20:04:36 +0000 David Dollar is joined in this special episode of Dollar & Sense by Amanda McClelland, the senior vice president of the Prevent Epidemics team at Resolve to Save Lives, to discuss the severity of the Wuhan coronavirus and the Chinese response to prevent the disease from spreading. McClelland, who worked on the response to the… Full Article
what The Development Finance Corporation confirms the new chief development officer—what’s the role? By webfeeds.brookings.edu Published On :: Mon, 10 Feb 2020 20:50:25 +0000 The Board of the U.S. International Development Finance Corporation (DFC) just confirmed Andrew Herscowitz to the position of chief development officer (CDO). A career USAID foreign service officer, Andrew has spent the past seven years directing Power Africa. It is hard to think of a more relevant background for this position—two decades with USAID, extensive… Full Article
what COVID-19 and school closures: What can countries learn from past emergencies? By webfeeds.brookings.edu Published On :: Tue, 31 Mar 2020 15:59:56 +0000 As the COVID-19 pandemic spreads around the world, and across every state in the U.S., school systems are shutting their doors. To date, the education community has largely focused on the different strategies to continue schooling, including lively discussions on the role of education technology versus distribution of printed paper packets. But there has been… Full Article
what What’s at stake at the U.S.-China Strategic and Economic Dialogue? By webfeeds.brookings.edu Published On :: Mon, 30 Nov -0001 00:00:00 +0000 The seventh meeting of the U.S.-China Strategic and Economic Dialogue—or S&ED—takes place June 23 to 24 in Washington, D.C. Since 2009, the S&ED has offered a platform for both countries to address bilateral, regional, and global challenges and opportunities. Brookings John L. Thornton China Center scholars Cheng Li, Richard Bush, David Dollar, and Daniel Wright offer insight into this significant meeting. Full Article Uncategorized
what What’s at stake in Hong Kong for the U.S.? By webfeeds.brookings.edu Published On :: Mon, 30 Nov -0001 00:00:00 +0000 In a recent episode of the Brookings Cafeteria podcast, Senior Fellow Richard Bush talked about the origins of Hong Kong’s “umbrella movement” in 2014, the territory’s relationship with Beijing, and his thoughts on electoral reform. Full Article Uncategorized
what What do the Amazon fires mean for Brazil’s economic future? By webfeeds.brookings.edu Published On :: Tue, 27 Aug 2019 21:14:41 +0000 Under Brazilian President Jair Bolsonaro, deforestation of the Amazon region has risen, and consequently so have the number of fires. Nonresident Senior Fellow Otaviano Canuto addresses the need for sustainable economic development across the Amazon region, how the fires could affect Brazil's future participation in the global economy, and whether public and political support for… Full Article
what Retrofitting Coal-Fired Power Plants in Middle-Income Countries: What Role for the World Bank? By webfeeds.brookings.edu Published On :: Wed, 16 Jul 2014 11:11:00 -0400 In July 2013, the World Bank decided to phase-out lending for new coal-fired power plants in middle-income countries, except in rare circumstances where no financially feasible alternatives to coal exist. This decision was made for a combination of reasons including concerns about local air pollution and global climate change, as well as evidence that these projects have little trouble attracting private capital without World Bank involvement. Now, policymakers are considering whether the World Bank’s policy should also cover projects designed to retrofit existing coal-fired power plants in middle-income countries by adding scrubbers and other technologies that increase efficiency and reduce air pollution. There are several fundamental questions underlying this debate: Is financing coal power plant retrofits a good use of World Bank resources? If so, should the World Bank insist on the use of best available technologies when it finances these retrofits? These questions are vitally important, as retrofit technologies are designed to minimize toxic air pollutants, including soot and smog, which are both dangerous for human health and the world’s climate. Older coal plants without retrofit technologies are less efficient, and emit more pollutants per unit of coal burned than those with retrofits applied. Evidence shows that soot and smog can cause respiratory illness and asthma, especially in children and elderly people, and can diminish local agricultural production by reducing sunlight. Furthermore, in many countries coal plants are the single largest source of carbon dioxide emissions driving climate change. To help inform the policy debate, this analysis surveys the technologies in use in more than 2,000 coal-fired power plants currently in operation, under construction, or planned in middle-income countries. The findings reveal that roughly 70 percent of these power plants rely on old, inefficient technologies. Retrofitting these plants would reduce pollution, increase efficiency and save lives. In middle-income countries that do not mandate coal retrofits, the World Bank could play a helpful role in financing those improvements, particularly as part of broader policy reforms designed to reduce climate pollution and increase efficiency across the power sector. Importantly, however, the data also show that important qualifications should be made. First, because coal is a major source of greenhouse gas emissions and retrofits are likely to keep coal plants operating longer, the World Bank should insist that retrofit projects occur within a context of national and local policy reforms designed to abate greenhouse gas pollution. Toward this end, the World Bank should continue to help countries build capacity to adopt and enforce climate pollution controls and other offsetting actions and policies. Second, the World Bank should insist that projects it finances use best available pollution control technologies. Already, the substantial majority of coal retrofits completed to date in middle-income countries have used best available technologies. These retrofits were almost universally financed exclusively by private capital. The World Bank should not use its capital to support inferior retrofit technologies that are below the standards already adopted by the private sector in middle-income countries. Downloads Download the full report (PDF) Authors Nigel PurvisAbigail JonesCecilia Springer Full Article
what Private capital flows, official development assistance, and remittances to Africa: Who gets what? By webfeeds.brookings.edu Published On :: Tue, 19 May 2015 10:33:00 -0400 Strong Growth and Changing Composition External financial flows to sub-Saharan Africa (defined as the sum of gross private capital flows, official development assistance (ODA), and remittances to the region) have not only grown rapidly since 1990, but their composition has also changed significantly. The volume of external flows to the region increased from $20 billion in 1990 to above $120 billion in 2012. Most of this increase in external flows to sub-Saharan Africa can be attributed to the increase in private capital flows and the growth of remittances, especially since 2005 (see Figure 1). Figure 1. Sub-Saharan Africa: External Flows (1990-2012, in USD billions) As also displayed in Figure 1, in 1990 the composition of external flows to sub-Saharan Africa was about 62 percent ODA, 31 percent gross inflows from the private sector, and about 7 percent remittances. However, by 2012, ODA accounted for about 22 percent of external flows to Africa, a share comparable to that of remittances (24 percent) and less than half the share of gross private capital flows (54 percent). Also notably, in 1990, FDI flows were greater than ODA flows in only two countries (Liberia and Nigeria) in sub-Saharan Africa excluding South Africa, but 22 years later, 17 countries received more FDI than ODA in 2012—suggesting that sub-Saharan African countries are increasingly becoming less aid dependent (see Figure 2). Figure 2. Sub-Saharan Africa: Number of Countries Where FDI is Greater than ODA (1990-2012) But to what extent have these changes in the scale and composition of external flows to sub-Saharan Africa equally benefited countries in the region? Did the rising tide lift all boats? Is aid really dying? Are all countries attracting private capital flows and benefiting from remittances to the same degree? Finally, how does external finance compare with domestic finance? The False Demise of ODA A closer look at the data indicates that, clearly, ODA is not dead, though its role is changing. For instance, middle-income countries (MICs) are experiencing the sharpest decline in ODA as a share of total external flows to the region, while aid flows account for more than half of external flows in fragile as well as low-income countries (LICs) and resource-poor landlocked countries (see Figure 3 and Appendix). Download the full paper » Authors Amadou SyFenohasina Maret Rakotondrazaka Full Article
what What does “agriculture” mean today? Assessing old questions with new evidence. By webfeeds.brookings.edu Published On :: Thu, 17 Mar 2016 14:04:00 -0400 One of global society’s foremost structural changes underway is its rapid aggregate shift from farmbased to city-based economies. More than half of humanity now lives in urban areas, and more than two-thirds of the world’s economies have a majority of their population living in urban settings. Much of the gradual movement from rural to urban areas is driven by long-term forces of economic progress. But one corresponding downside is that city-based societies become increasingly disconnected—certainly physically, and likely psychologically—from the practicalities of rural livelihoods, especially agriculture, the crucial economic sector that provides food to fuel humanity. The nature of agriculture is especially important when considering the tantalizingly imminent prospect of eliminating extreme poverty within a generation. The majority of the world’s extremely poor people still live in rural areas, where farming is likely to play a central role in boosting average incomes. Agriculture is similarly important when considering environmental challenges like protecting biodiversity and tackling climate change. For example, agriculture and shifts in land use are responsible for roughly a quarter of greenhouse gas emissions. As a single word, the concept of “agriculture” encompasses a remarkably diverse set of circumstances. It can be defined very simply, as at dictionary.com, as “the science or occupation of cultivating land and rearing crops and livestock.” But underneath that definition lies a vast array of landscape ecologies and climates in which different types of plant and animal species can grow. Focusing solely on crop species, each plant grows within a particular set of respective conditions. Some plants provide food—such as grains, fruits, or vegetables—that people or livestock can consume directly for metabolic energy. Other plants provide stimulants or medication that humans consume—such as coffee or Artemisia—but have no caloric value. Still others provide physical materials—like cotton or rubber—that provide valuable inputs to physical manufacturing. One of the primary reasons why agriculture’s diversity is so important to understand is that it defines the possibilities, and limits, for the diffusion of relevant technologies. Some crops, like wheat, grow only in temperate areas, so relevant advances in breeding or plant productivity might be relatively easy to diffuse across similar agro-ecological environments but will not naturally transfer to tropical environments, where most of the world’s poor reside. Conversely, for example, rice originates in lowland tropical areas and it has historically been relatively easy to adopt farming technologies from one rice-growing region to another. But, again, its diffusion is limited by geography and climate. Meanwhile maize can grow in both temperate and tropical areas, but its unique germinating properties render it difficult to transfer seed technologies across geographies. Given the centrality of agriculture in many crucial global challenges, including the internationally agreed Sustainable Development Goals recently established for 2030, it is worth unpacking the topic empirically to describe what the term actually means today. This short paper does so with a focus on developing country crops, answering five basic questions: 1. What types of crops does each country grow? 2. Which cereals are most prominent in each country? 3. Which non-cereal crops are most prominent in each country? 4. How common are “cash crops” in each country? 5. How has area harvested been changing recently? Readers should note that the following assessments of crop prominence are measured by area harvested, and therefore do not capture each crop’s underlying level of productivity or overarching importance within an economy. For example, a local cereal crop might be worth only $200 per ton of output in a country, but average yields might vary across a spectrum from around 1 to 6 tons per hectare (or even higher). Meanwhile, an export-oriented cash crop like coffee might be worth $2,000 per ton, with potential yields ranging from roughly half a ton to 3 or more tons per hectare. Thus the extent of area harvested forms only one of many variables required for a thorough understanding of local agricultural systems. The underlying analysis for this paper was originally conducted for a related book chapter on “Agriculture’s role in ending extreme poverty” (McArthur, 2015). That chapter addresses similar questions for a subset of 61 countries still estimated to be struggling with extreme poverty challenges as of 2011. Here we present data for a broader set of 140 developing countries. All tables are also available online for download. Downloads Download the full paper (PDF)Cropshares_tables_cleanCrop_Shares_metadataFAO crop codesFAO_cropsharesWB income classWBcodescountrycode Authors John McArthur Full Article
what What do China’s global investments mean for China, the U.S., and the world? By webfeeds.brookings.edu Published On :: Wed, 18 May 2016 13:55:00 -0400 China’s economic rise is one of the factors creating strains in the international financial order. China is already the largest trading nation and the second largest economy. It is likely to emerge in the next few years as the world’s largest net creditor. It is already #2 behind Japan. Until recently, China’s main foreign asset has been central bank reserves, mostly invested in U.S. Treasury bonds and similar instruments. In the last couple of years, however, this pattern has started to change. China’s reserves peaked at about $4 trillion at the end of 2014. Since then, the People’s Bank of China has sold some reserves, but the country as a whole is still accumulating net foreign assets as evidenced by the large current account surplus. What is new is that the overseas asset purchases are coming from the private sector and state enterprises, not from the official sector. The Institute for International Finance estimated that the net private capital outflow from China was $676 billion in 2015. (That estimate includes outward investments by China’s state enterprises, which strictly speaking are not “private”; the point is to distinguish between official holding of foreign assets at the central bank and more commercial transactions.) As investment opportunities diminish in China owing to excess capacity and declining profitability, this commercial outflow of capital from China is likely to continue at a high level. Tilted playing field Most of the major investing countries in the world are developed economies; in addition to making direct investments elsewhere, they tend to be very open to inward investment. China is unusual in that it is a developing country that has emerged as a major investor. China itself is an important destination for foreign direct investment (FDI), and opening to the outside world has been an important part of its reform program since 1978. However, China’s policy is to steer FDI to particular sectors. In general, it has welcomed FDI into most but not all of manufacturing. However, other sectors of the economy are relatively closed to FDI, including mining, construction, and most modern services. It is not surprising that China is less open to FDI than developed economies such as the United States. But it is also the case that China is relatively closed among developing countries. The OECD calculates an index of FDI restrictiveness for OECD countries and major emerging markets. The index is for overall FDI restrictiveness, and also for restrictiveness by sector. China in 2014 was more restrictive than the other BRICS countries (Brazil, Russia, India, and South Africa). Brazil and South Africa are highly open, similar to advanced economies with measures around 0.1 (on a scale of 0=open and 1=closed). India and Russia are less open with overall measures around 0.2. China is the most closed with an index above 0.4. Some of the key sectors in which China is investing abroad, such as mining, infrastructure, and finance, are relatively closed at home. This lack of reciprocity creates problems for China’s partners. China has the second largest market in the world. In these protected sectors, Chinese firms can grow unfettered by competition, and then use their domestic financial strength to develop overseas operations. In finance, for example, China’s four state-owned commercial banks operate in a domestic market in which foreign investors have been restricted to about 1 percent of the market. The four banks are now among the largest in the world and are expanding overseas. China’s monopoly credit card company, Union Pay, is similarly a world leader based on its protected domestic market. A similar strategy applies in mining and telecommunications. China is unusual in that it is a developing country that has emerged as a major investor. This lack of reciprocity creates an unlevel playing field. A concrete example is the acquisition of the U.S. firm Smithfield by the Chinese firm Shuanghui. In a truly open market, Smithfield, with its superior technology and food-safety procedures, may well have taken over Shuanghui and expanded into the rapidly growing Chinese pork market. However, investment restrictions prevented such an option, so the best way for Smithfield to expand into China was to be acquired by the Chinese firm. Smithfield CEO Larry Pope stated the deal would preserve "the same old Smithfield, only with more opportunities and new markets and new frontiers." No Chinese pork would be imported to the United States, he stated, but rather Shuanghui desired to export American pork to take advantage of growing demand for foreign food products in China due to recent food scandals. Smithfield's existing management team is expected to remain intact, as is its U.S. workforce. The United States does not have much leverage to level the playing field. It does have a review process for acquisitions of U.S. firms by foreign ones. The Committee on Foreign Investment in the United States (CFIUS) is chaired by Treasury and includes economic agencies (Commerce, Trade Representative) as well as the Departments of Defense and Homeland Security. By statute, CFIUS can only examine national security issues involved in an acquisition. It reviewed the Smithfield deal and let it proceed because there was no obvious national security issue. CFIUS only reviews about 100 transactions per year and the vast majority of them proceed. This system reflects the U.S. philosophy of being very open to foreign investment. A thorn in the relationship Chinese policies create a dilemma for its partners. Taking those policies as given, it would be irrational for economies such as the United States to limit Chinese investments. In the Shuanghui-Smithfield example, the access to the Chinese market gained through the takeover makes the assets of the U.S. firm more valuable and benefits its shareholders. Assuming that the firm really does expand into China, the deal will benefit the workers of the firm as well. It would be even better, however, if China opened up its protected markets so that such expansions could take place in the most efficient way possible. In some cases, that will be Chinese firms acquiring U.S. ones, but in many other cases it would involve U.S. firms expanding into China. This issue of getting China to open up its protected markets is high on the policy agenda of the United States and other major economies. The United States has been negotiating with China over a Bilateral Investment Treaty (BIT) that would be based on a small negative list; that is, there would be a small number of agreed sectors that remain closed on each side, but otherwise investment would be open in both directions. So far, however, negotiations on the BIT have been slow. It is difficult for China to come up with an offer that includes only a small number of protected sectors. And there are questions as to whether the U.S. Congress would approve an investment treaty with China in the current political environment, even if a good one were negotiated. The issue of lack of reciprocity between China’s investment openness and the U.S. system is one of the thorniest issues in the bilateral relationship. The issue of lack of reciprocity between China’s investment openness and the U.S. system is one of the thorniest issues in the bilateral relationship. A new president will have to take a serious look at the CFIUS process and the enabling legislation and consider what combination of carrots and sticks would accelerate the opening of China’s markets. In terms of sticks, the United States could consider an amendment to the CFIUS legislation that would limit acquisitions by state enterprises from countries with which the United States does not have a bilateral investment treaty. In terms of carrots, the best move for the United States is to approve the Trans-Pacific Partnership and implement it well so that there is deeper integration among like-minded countries in Asia-Pacific. Success in this will encourage China to open up further and eventually meet the high standards set by TPP. Greater investment openness is part of China’s own reform plan but it clearly needs incentives to make real progress. For more on this and related topics, please see David Dollar's new paper, "China as a global investor." Authors David Dollar Full Article
what What to expect at the G-7 summit By webfeeds.brookings.edu Published On :: Wed, 06 Jun 2018 20:18:11 +0000 Joshua Meltzer, Senior Fellow in the Global Economy and Development program: Just when you thought that it couldn't get a whole lot worse, it keeps getting worse. In some way, that’s not particularly surprising. Unfortunately, with the failure to extend waivers to the EU, Canada, and Mexico, regarding new U.S. tariffs, Section 232 tariffs on… Full Article
what Education may be pivotal in the 2020 election. Here’s what you need to know. By webfeeds.brookings.edu Published On :: Wed, 18 Dec 2019 19:55:40 +0000 As 2019 winds down, all eyes will soon turn to the 2020 U.S. presidential election. The cycle promises to dominate the news throughout next year, covering everything from the ongoing impeachment proceedings to health-care reform and more. While education traditionally may not be considered a top-tier issue in national elections, as Brookings’s Doug Harris has… Full Article
what The Elijah E. Cummings Lower Drug Costs Now Act: How it would work, how it would affect prices, and what the challenges are By webfeeds.brookings.edu Published On :: Fri, 10 Apr 2020 14:59:11 +0000 Full Article
what The Elijah E. Cummings Lower Drug Costs Now Act: How it would work, how it would affect prices, and what the challenges are By webfeeds.brookings.edu Published On :: Fri, 10 Apr 2020 14:59:11 +0000 Full Article
what Yet Another Election Victory for Erdoğan -- What's Next for Turkey? By webfeeds.brookings.edu Published On :: Mon, 11 Aug 2014 13:58:00 -0400 As expected, on August 10, Prime Minister Recep Tayyip Erdoğan from the Justice and Development Party (AKP) decisively won Turkey’s first directly-elected presidential election. He received just about 52 percent of the votes, falling somewhat short of the 55 percent that the polls were predicting. At a time when Turkey’s neighborhood is in a state of chaos and the country is deeply polarized, what will his next steps as president be? Will he transform Turkey’s political system from a parliamentary to a presidential one? Will he be able to simultaneously run his party, control the prime minister and be the president of Turkey? Will he be able to overcome the authoritarian and abrasive politics of the last two years and replace it with politics reminiscent of the mid-2000s characterized by consensus building and liberal reforms? Or will it be a case of more of the same? Traditionally, presidents were elected by members of the Turkish Parliament, and had limited powers. However, Erdoğan has been aspiring for a strong presidency since AKP won close to half of the votes at the national elections in June 2011. While serving as prime minister, Erdoğan attempted to write a new constitution, but resistance from opposition parties together with the May 2013 Gezi Park protests and the December 2013 corruption scandal prevented him from achieving his goal. Consequently, his fallback plan has been to emerge triumphant from the 2014 presidential elections,use the presidential powers in the current constitution to its full extent and aim to get AKP to emerge from the parliamentary elections scheduled for June 2015 with enough seats, enabling him to see to the adoption of a new constitution. This new constitution would transform Turkey’s parliamentary system into a presidential one and give Erdoğan the possibility to run the country until 2023, the Republic’s centenary. Erdoğan’s Opponents: İhsanoğlu and Demirtaş Ekmeleddin İhsanoğlu and Selahattin Demirtaş were Erdoğan’s main opponents. Although neither constituted major challenges for Erdoğan, each represent something significant for Turkey. The left-leaning secularist Republican People’s Party (CHP) and right-wing Nationalist Movement Party (MHP) joined forces to support İhsanoğlu’s candidacy. İhsanoğlu, born and raised in Cairo, a prominent religious scholar, and a secretary-general of the Organization of Islamic Cooperation from 2004 to 2010, was seen as the best candidate to attract former AKP members, and votes from the wider conservative electorate. Though he lacked political experience and visibility in Turkey, he managed to receive more than 38 percent of the votes. This performance falls short of the 44 percent that CHP and MHP garnered at the local elections in March this year, but would still be considered as a respectable performance. Demirtaş, a prominent figure amongst Turkey’s Kurdish minority population and a keen partner in government efforts to find a political solution to the Kurdish problem in Turkey, ran for presidency on a secular and somewhat leftist agenda, sensitive to the interests of especially minorities and women. He received almost 10 percent of the votes, one point short of most poll predictions, but almost twice the amount that his party, Peace and Democracy Party (BDP), received in March local elections. This suggests that Demirtaş received support not just from Kurdish, but also Turkish voters, a very significant development in terms of politics in Turkey. How Has the Turkish Political System Worked in the Past? With Erdoğan’s victory, Turkey is now at an important crossroad. Since World War II, Turkey has been a parliamentary system. The prime minister was the head of the executive branch of government and the president, elected by the parliament, held a ceremonial role. This changed after General Kenan Evren led the 1980 military coup d’état. In 1982, Evren introduced a new constitution that empowered the president with some executive powers intended to exert some control over civilian politicians. However, with the exception of Evren and his successor, Turgut Özal, subsequent presidents, Süleyman Demirel and Ahmet Necdet Sezer, refrained from using these constitutional powers in any conspicuous manner. So where did the notion of a directly-elected president come from? The idea of a president elected directly by the electorate, rather than by the parliament, is an outcome of the military’s interference in politics in 2007. As the end of the staunchly secular and politically shy Sezer’s term approached, the military in a rather undemocratic manner, tried to prevent the then-Minister of Foreign Affairs, Abdullah Gül, from becoming president. The military and the judicial establishment deeply distrusted Gül’s, as well as the AKP’s, commitment to secularism. The government overcame the challenge by calling for an early snap election that AKP won handsomely, opening the way for Gül’s election as the new president. Furthermore, the electoral victory encouraged Erdoğan to hit back at the military by calling for a referendum on whether future presidents should be directly elected by the people or by the parliament. Erdoğan’s initiative received support from 58 percent of the electorate, thereby quite decisively demonstrating to his opponents the very extent of his popularity while allowing him to emphasize the “will of the people” as the basis of his understanding of democracy. The Campaigns: Two Approaches to Turkey’s Future The 2014 presidential campaign unfolded as a competition between two political approaches to the future of governance in Turkey. The first approach, represented by Erdoğan, calls for a narrow and majoritarian understanding of democracy based on the notion of the “will of the people” (milli irade) at the expense of constitutional checks and balances and separation of powers. In return for such an authoritarian form of governance, Erdoğan promises a prosperous Turkey that will grow to be the 10th largest economy by 2023 and become a major regional, if not global power. It is with this in mind that Erdoğan aspires for a powerful presidential system dominated by him alone. The second approach, especially pushed for by İhsanoğlu, advocates the maintenance of the existing parliamentary system and warns that a hybrid system where both the prime minister and the president is elected directly by the people, risks creating instability, tension and polarization within the country. He advocated for a president who would be above party politics and who would focus on protecting freedoms and the rule of law. Does Erdoğan Have a Mandate? What will Erdoğan do now? He is confident that he enjoys wide-spread popularity among the masses. However, it is difficult to conclude if the electorate went to the polls on Sunday with a referendum to change the political system in mind. If they did, then they did so with a rather slim margin. Nevertheless, it is likely that Erdoğan will interpret the results of the elections as an explicit approval of his political agenda, and will thus proceed to transform Turkey towards a presidential system. However, a number of challenges will be awaiting his project. The first and immediate challenge will emerge with respect to the next prime minister. As a prominent Turkish columnist put it, Erdoğan will want a prime minister who will always be “one step behind”. But will politics allow for this to occur? Can Erdoğan find a loyal and unquestioning prime minister? The current constitution requires the president to resign his/her political party affiliations. Once he takes up his position as president at the end of August, will he be able to continue to enjoy control over AKP from a distance? This is not a challenge to be taken lightly considering that there will be parliamentary elections in 2015 and the ranks of AKP will be quite restless both in terms of the selection of candidates, as well as the prospects of ensuring a victory at the polls. Lastly, with ISIS’s growing power, political instability in many neighboring countries, a troubled relationship with the European Union and the United States and continued bloodbath in Syria, keeping the Turkish economy on course may turn out to be Erdogan’s greatest challenge. The coming months are going to be critical in terms of whether Erdoğan will overcome these challenges and succeed in transforming Turkey’s political system. The outcome will illustrate if Erdoğan is actually bigger than Turkey or vice versa. However, whatever happens in the next few months, it will largely determine if in 2023, Turkey will celebrate its centenary as a liberal or illiberal democracy. In the meantime, the fact that Erdoğan plans to use a constitution that was drawn up under military tutelage to achieve his presidential ambitions is both ironic, but also not very promising in terms of Turkey’s democracy turning liberal. Editor's Note: Ranu Nath, the Turkey Project intern in the Foreign Policy Program at Brookings, contributed to this piece. Authors Kemal Kirişci Image Source: © Murad Sezer / Reuters Full Article
what What Brookings Experts Are Saying about Obama in Asia By webfeeds.brookings.edu Published On :: Mon, 10 Nov 2014 15:08:00 -0500 Updated, 11/14/14 with new content. President Obama is traveling this week in the Asia-Pacific region. He is attending the APEC Summit in Beijing Monday and Tuesday; the ASEAN Summit and the East Asia Summit in Myanmar Tuesday; and the G-20 Summit in Brisbane Saturday and Sunday. Brookings experts have offered significant commentary on the president's agenda and challenges during this trip: Richard Bush, director of the Center for East Asia Policy Studies and the Michael H. Armacost Chair, reflects on what Presidents Obama and Xi said about the situation in Hong Kong during their summit. Charles Freeman, a nonresident senior fellow in the John L. Thornton China Center, reflects on Chinese President Xi's address to business executives during APEC during which Xi discussed the "new normal" of Chinese economic growth and more open visa policies. His remarks, Freeman notes, "sounded a contrasting note to those he made just a month earlier" and "were also out of tune with the well-chronicled anxieties of foreign investors about the souring business environment they face in China." Neil Ruiz, a senior policy analyst and associate fellow in the Metropolitan Policy Program, says that the new visa rules agreed to by Presidents Obama and Xi "is an important step in building economic bridges between Chinese cities and U.S. metropolitan areas." Senior Fellow Michael O'Hanlon, the Sydney Stein, Jr. Chair in International Security, focuses on two prospective agreements on military matters, dealing with confidence-building and operational safety issues, reached between the U.S. and China. "The Obama and Xi teams should be proud of a good summit," writes O'Hanlon, "But situating these accords in a broader framework underscores how much work remains to be done." On the U.S.-China climate agreement to cut greenhouse gas emissions: Brookings Managing Director William Antholis calls it "dramatic" for both diplomatic and domestic political reasons; and Fellow Tim Boersma, acting director of the Energy Security Initiative, says it is "a big deal." Miriam Sapiro, a visiting fellow and former deputy U.S. trade representative, says that the trip "gives the White House the chance to emphasize foreign and economic policy goals that can be broadly embraced by Democrats and Republicans." Sapiro also commented on the importance of trade policy, including the Trans-Pacific Partnership, in a recent Brookings Cafeteria podcast. Experts recently joined together in a full-day conference to examine the economic, environmental, political, and security implications of President Obama's trip to China and his interactions with President Xi Jinping. Full audio, video, and a transcript of remarks by former U.S. National Security Advisor Thomas Donilon are available. Six experts from the John L. Thornton China Center recently offered their views on how President Obama can have a productive visit with President Xi. Their comments covered issues including Hong Kong, trade, and domestic Chinese reforms, among others. Lynn Kuok, a nonresident fellow with the Center for East Asia Policy Studies, offers her perspectives on Obama's trip to Myanmar. In Think Tank 20, experts from Brookings and around the world address interrelated debates about growth, convergence, and income distribution—three elements likely to shape policy debates beyond the G-20 Summit. Use the handy globe interactive to navigate to countries and regions. Kemal Derviş—vice president and director of Global Economy and Development and the Edward M. Bernstein Scholar—and Peter Drysdale—emeritus professor of economics at Australian National University—are the editors of a new volume on the G-20 summit at five years. They explore questions including, Will these summits add ongoing value to global economic governance, or will they will become purely ceremonial gatherings, which continue to take place because of the inertia in such processes? Authors Fred Dews Image Source: © Kim Kyung Hoon / Reuters Full Article
what What COVID-19 means for international cooperation By webfeeds.brookings.edu Published On :: Fri, 06 Mar 2020 17:16:37 +0000 Throughout history, crisis and human progress have often gone hand in hand. While the growing COVID-19 pandemic could strengthen nationalism and isolationism and accelerate the retreat from globalization, the outbreak also could spur a new wave of international cooperation of the sort that emerged after World War II. COVID-19 may become not only a huge… Full Article
what What’s happening with Hungary’s pandemic power grab? By webfeeds.brookings.edu Published On :: Thu, 02 Apr 2020 16:51:46 +0000 This week Hungary's parliament, dominated by Prime Minister Viktor Orbán's Fidesz party, granted the prime minister open-ended, broad-reaching emergency powers. Visiting Fellow James Kirchick explains this as the latest step in Hungary's democratic decline and how the coronavirus pandemic is exacerbating the re-nationalization of politics within the European Union. http://directory.libsyn.com/episode/index/id/13820918 'Orbán' review: Hungary’s strongman Listen… Full Article
what What should the Senate ask Secretary of State nominee Mike Pompeo? By webfeeds.brookings.edu Published On :: Wed, 11 Apr 2018 15:38:08 +0000 On March 13, President Trump nominated CIA Director Mike Pompeo to become the next U.S. secretary of state. This Thursday, Pompeo will go before the Senate Committee on Foreign Relations for his nomination hearing. What should the committee members ask? Brookings foreign policy experts offer their ideas below. ASIA Richard Bush, Co-Director of the Center for East… Full Article
what What do we know about the coronavirus and the global response? By webfeeds.brookings.edu Published On :: Mon, 10 Feb 2020 20:04:36 +0000 David Dollar is joined in this special episode of Dollar & Sense by Amanda McClelland, the senior vice president of the Prevent Epidemics team at Resolve to Save Lives, to discuss the severity of the Wuhan coronavirus and the Chinese response to prevent the disease from spreading. McClelland, who worked on the response to the… Full Article
what The Development Finance Corporation confirms the new chief development officer—what’s the role? By webfeeds.brookings.edu Published On :: Mon, 10 Feb 2020 20:50:25 +0000 The Board of the U.S. International Development Finance Corporation (DFC) just confirmed Andrew Herscowitz to the position of chief development officer (CDO). A career USAID foreign service officer, Andrew has spent the past seven years directing Power Africa. It is hard to think of a more relevant background for this position—two decades with USAID, extensive… Full Article
what COVID-19 and school closures: What can countries learn from past emergencies? By webfeeds.brookings.edu Published On :: Tue, 31 Mar 2020 15:59:56 +0000 As the COVID-19 pandemic spreads around the world, and across every state in the U.S., school systems are shutting their doors. To date, the education community has largely focused on the different strategies to continue schooling, including lively discussions on the role of education technology versus distribution of printed paper packets. But there has been… Full Article
what What is Riyadh’s endgame in Lebanon? By webfeeds.brookings.edu Published On :: Mon, 30 Nov -0001 00:00:00 +0000 The Saudi government has attempted to punish Lebanon by cancelling arms purchases and cutting off aid programs to Beirut for its failure to condemn the Saudi embassy attack in Iran, Bruce Riedel writes. Saudi Arabia’s goals of pushing Iran out of Lebanon and defeating Hezbollah are unrealistic and will only contribute to another broken state in the Middle East, Riedel argues. Full Article
what How has the Syrian civil war affected Hezbollah, and what should the U.S. do? By webfeeds.brookings.edu Published On :: Mon, 30 Nov -0001 00:00:00 +0000 The media focus on the Islamic State has taken the spotlight off another powerful Middle East rebel and terrorist group that also controls territory and acts like a state: Lebanese Hezbollah. In recent testimony before the House Committee on Foreign Affairs’ Subcommittee on the Middle East and North Africa, Dan Byman, a senior fellow and director of research in the Center for Middle East Policy, described the ongoing transformation of Hezbollah—particularly since it entered the Syrian civil war—and the implications for the region and the United States. Full Article Uncategorized
what What’s in store after the US-Taliban deal By webfeeds.brookings.edu Published On :: Wed, 04 Mar 2020 22:25:00 +0000 The deal that the United States and the Taliban signed on Saturday allows the United States to extract itself from a stalled war. For years, the fighting showed no signs of battlefield breakthrough, while the United States held the Afghan security forces and Afghan government on life support. Since at least 2015, U.S. policy has… Full Article
what What drove oil prices through the floor this week? By webfeeds.brookings.edu Published On :: Wed, 22 Apr 2020 19:53:48 +0000 The coronavirus pandemic has sent crude oil prices plummeting, so much so that the price for West Texas Intermediate oil dropped below zero dollars earlier this week. In this special edition of the podcast, Samantha Gross joins David Dollar to explain the factors influencing recent changes in demand for oil and the long-term effects the… Full Article
what NATO and outer space: Now what? By webfeeds.brookings.edu Published On :: Wed, 22 Apr 2020 12:20:26 +0000 At the North Atlantic Treaty Organization’s (NATO) December 2019 Leader’s Summit in London, leaders acknowledged that technology is rapidly changing the international security environment, stating: “To stay secure, we must look to the future together. We are addressing the breadth and scale of new technologies to maintain our technological edge.” Leaders also identified outer space… Full Article
what What genetic information can tell us about economic inequality By webfeeds.brookings.edu Published On :: Wed, 11 May 2016 14:18:00 -0400 Income and wealth inequality in the U.S. is a stark reality. Research from a variety of fields demonstrates that children born into poor families tend to end up less educated, less healthy, more prone to contact with the police, and less likely to accumulate wealth over a lifetime. In contrast, children born into well-off families tend to exhibit better outcomes on all of these dimensions. How should social scientists and policymakers understand and address intergenerational mobility in the U.S.? This question is difficult to answer—and highly politicized. To start with, there are several possible mechanisms driving high intergenerational persistence of economic outcomes. These are often characterized as factors related either to “nurture” or “nature.” The “nurture” hypothesis asserts that poor parents lack critical resources such as wealth or information. Such parents may therefore find it difficult to make the education and time investments that would promote better economic outcomes for their children. If this is true, then children born into poor families never reach their full potential because of a lack of household resources. A second possible mechanism is often referred to as the “nature” hypothesis. Economically successful parents might be more likely to have successful children. Such an account hinges on the idea that there are heritable biological traits or abilities that more successful parents “pass on” to their children. To complicate the matter further, the mechanisms of nature and nurture almost certainly operate at the same time. Moreover, it is likely that abilities and investments interact in complicated ways. For example, a particular investment might do more to improve the outcomes of a lower-ability child than a higher-ability child, or vice versa. Understanding this process, and how it affects intergenerational mobility, is notoriously difficult. However, greater clarity is precisely what is needed to guide effective policy. If a lack of investment is the dominant mechanism explaining intergenerational persistence in economic outcomes, then we as a society may be wasting human potential. Policies correcting under-investments in human capital could therefore be justified as economically efficient. In contrast, if the intergenerational transmission of ability plays a role, then investments in poor children’s human capital may not be enough. To clarify, it is critical to state that the distinction we make here between “high-ability” and “low-ability” individuals should not be interpreted as a claim that some people are naturally or biologically superior to others. We use “ability” as shorthand to describe those traits that are rewarded in the existing labor market. Even if these abilities are linked to heritable biological factors, this does not mean that their impact on life outcomes is immutable or fixed. Modifying environments could substantially affect genetic disparities. The case of vision and eyeglasses offer one classic example. There may well be biological factors that explain variation in eyesight “ability,” but these biological differences will matter more or less for life outcomes depending on the availability of glasses and other medical interventions. In short, it is very possible that the consequences of biological differences can be moderated by appropriate changes in the environment. Until now, researchers have typically used variables such as cognitive test scores to measure ability endowments related to human capital. Yet, these traditional measures are subject to the critique that they are the products of earlier investments in human capital. This makes it difficult to distinguish between the “nature” and “nurture” hypotheses using such data. Two individuals with similar ability endowments but different levels of household resources are likely to exhibit different cognitive test scores, for example. Using genetic information to measure ability endowments can help us better understand the intergenerational transmission of human capital. As a measure, genetic information has a clear advantage over cognitive test scores because it is fixed at conception. Advances in measuring differences in DNA across individuals, together with very recent advances in behavioral genetics research, now make it possible to link genetic differences across people to behavioral traits. These new discoveries have even extended to educational attainment, which was once thought to be too complicated and removed from direct biological processes for genetic analysis. In a recent research paper, we use genetic information to better understand the nature of intergenerational mobility. We follow the cutting edge in behavioral genetics research, which guides us in computing a type of genetic “score” for any individual. We compute this so-called “polygenic score” for each person in a sample of over 8,000 individuals from the Health and Retirement Study (HRS). The score, which appears to be related to cognition, personality, and facility with learning, has some predictive power for educational attainment. In particular, it explains between 3.2 percent and 6.6 percent of the variation across individuals (depending on the specification). Thus, knowing the exact value of an individual’s score will tell you very little about that person (over 90 percent of the variation is explained by other factors). However, the average relationship in the population between the score and human capital outcomes can offer some important lessons. Using the polygenic score, we believe we can gain new insights into how ability endowments interact with an individual’s environment to generate economic outcomes. There is a long-standing debate in the economics literature about how ability and investments interact. One idea is that both ability and investments are needed for success, i.e., that they complement one another. Though our findings show evidence of this type of interaction, the story that emerges from our analysis is somewhat more nuanced. We show that ability and the environment (measured by parents’ socioeconomic status or SES) complement one another for generating higher degrees, such as college completion, but substitute for one another in generating lower levels of educational attainment such as a high school degree. In other words, our findings suggest that ability or being born into a well-off family are enough to get an individual through high school. For college, however, ability and a well-off family are important predictors of success. "In other words, our findings suggest that ability or being born into a well-off family are enough to get an individual through high school. For college, however, ability and a well-off family are important predictors of success." Another set of results concerns the wages of high-ability individuals. We show that individuals who completed college earned substantial returns on their ability starting in the early 2000s. Individuals without a college degree did not. The post-2000 rise in returns may be driven in part by “skill-biased technological change.” As new technologies are adopted in the workplace, the people who benefit most are those with the skills required to adapt to and master new ways of working. It is not difficult to imagine that people with genetic variants associated with higher education may have found it easier to adapt to computers and other new technologies. However, we also find that a higher polygenic score was not helpful for individuals who did not complete college, likely because the lack of a college degree shut them out of careers that would have allowed them to creatively use new technologies. This is a troubling finding given the role of childhood SES in predicting college completion. It means that poor children with high abilities are less likely to attend college and, subsequently, are less likely to benefit from their ability. Again, these findings suggest wasted human potential. Using genetic data to compare individuals from different socioeconomic backgrounds, we also find that children from lower SES backgrounds systematically acquire less education when compared to similarly capable individuals from high SES backgrounds. Among other things, this suggests that access to education may be an important obstacle, even for the highest ability children. Our analysis offers some suggestive evidence regarding which environments are especially harmful. For example, acute negative events like physical abuse in childhood can lead to a dramatic loss of economic potential—reducing financial wealth in late adulthood for the highest ability individuals by over 50 percent. Of course, one must be very cautious when interpreting any genetic association. In particular, it is important to think carefully about correlation versus causality. The same parents that pass along genetic material predicting educational attainment may also be more likely to have the resources to invest in their children. Still, since we base our comparisons on individuals from different socioeconomic backgrounds, but with similar polygenic scores, we offer evidence that economic disparities are not solely due to nature. In summary, recent advances in behavioral genetics have identified specific genetic variants that predict educational attainment. The fact that such genes exist confirms previous work (largely using data on twins) showing that “nature” matters for economic outcomes. Our research demonstrates that “nurture” matters, too. Perhaps more importantly, our research demonstrates that the roles of “nature” and “nurture” are intertwined and that understanding the role of “nurture” (in the form of human capital investments over the life-cycle) is key to understanding how “nature” (in the form of ability endowments) operates. In particular, we show that similarly apt individuals with different childhood SES see very different returns to their ability. This means that policies helping children born into disadvantaged circumstances may be justified not solely for ethical reasons rooted in social justice, but perhaps also as an economically efficient way to mitigate wasted human potential. Finally, we believe that continued progress in understanding the mechanisms underlying how “nature” affects economic outcomes will eventually lead to policies that help people who are born with different abilities. For example, our findings suggest that some individuals had more difficulty than others in adapting to new workplace technologies, such as computers. With a fuller understanding of this process, policymakers may be able to devise better training programs or improved school curricula that help individuals of all levels of ability to better respond to a changing technological environment. In other words we believe that our research shows that learning more about the specifics of “nature” may help us to better “nurture” all individuals in society to help them to reach their full potential. Editor’s note: The authors contributed equally to this posting and to the research upon which the posting is based. They are listed alphabetically by last name. Authors Nicholas PapageorgeKevin Thom Image Source: Kim Kyung Hoon / Reuters Full Article
what What do automation and artificial intelligence mean for Africa? By webfeeds.brookings.edu Published On :: Tue, 16 Jul 2019 18:34:46 +0000 During the last four decades, manufacturers all over the world have outsourced production to countries with lower labor costs. American, European, and Japanese firms moved a lot of their production to developing Asia and Latin America, first helping countries like Malaysia and Chile, then others like China and Mexico, and then others like Vietnam and… Full Article
what What’s happening with Hungary’s pandemic power grab? By webfeeds.brookings.edu Published On :: Thu, 02 Apr 2020 16:51:46 +0000 This week Hungary's parliament, dominated by Prime Minister Viktor Orbán's Fidesz party, granted the prime minister open-ended, broad-reaching emergency powers. Visiting Fellow James Kirchick explains this as the latest step in Hungary's democratic decline and how the coronavirus pandemic is exacerbating the re-nationalization of politics within the European Union. http://directory.libsyn.com/episode/index/id/13820918 'Orbán' review: Hungary’s strongman Listen… Full Article
what The skyscraper and the shack: What slum policy should not be about By webfeeds.brookings.edu Published On :: Wed, 02 Mar 2016 12:00:00 -0500 After decades of neglect, Latin American governments are increasingly focusing on urban slums. What often spurs their policy interventions is a desire to counter violent criminality leaking out from the poor marginalized slums controlled by gangs into the city centers the better-off residents want to keep safe. But tackling the socioeconomic dynamics of slums -- the trap of poverty, discrimination, lack of public goods and social services, and rule by nonstate actors -- is not only complex, but also costly. Governments, elites, and middle classes tend not to want to spend resources on slums. Effective policies have to be sustained for decades, and political will and tax revenues for such complex state-building are frequently scarce. Focusing on a discreet intervention – providing low-cost housing – becomes tempting. Rarely is it sufficient. The condition of the buildings alone is not what makes a slum a slum. Moving residents from slums to better low-cost housing has encountered systematic challenges not just in Latin America, but also in other places where it has been tried, such as Kenya. Instead, policies need to focus on broader community dynamics, including public safety, legal job creation with sufficient income, human capital development, and robust connectivity of slums to economically-thriving areas, something residents of the latter often don’t want. Paradoxically, real estate dynamics can have pernicious effects. If broader pacification does take hold and public safety in slums increases, some slum areas can become desirable real estate with vast development possibilities. Developers may well seek to buy the land by offering “better” low-cost housing to slum residents to get them to move. Since many slum residents do not have title to their residences, forced displacement also occurs, albeit under the cloak of being nice to the poor. Instead of being limited to the provision of alternative residences, policies to address slums need to be about inclusion, economic growth, safety, and connectivity of slums with the thriving city parts, and accountability of city-governance authorities. This commentary was originally published by the Inter-American Dialogue’s Latin America Advisor. Authors Vanda Felbab-Brown Publication: Inter-American Dialogue Image Source: © Eddie Keogh / Reuters Full Article
what Troubled waters: What Nigeria can do to improve security, the economy, and human welfare By webfeeds.brookings.edu Published On :: Thu, 03 Mar 2016 12:15:00 -0500 Nigeria is facing a confluence of troubles: dramatically reduced oil prices have pummeled a country that depends on oil exports for two-thirds of its national revenues; the Boko Haram insurgency continues to wreak havoc particularly in the north of the country, where suicide bombings (many of which are now carried out by kidnapped girls) have killed hundreds; and corruption remains a drain on the country, which ranked 136th out of 168 countries on Transparency International’s 2015 Corruptions Perceptions Index. But amidst this, Nigeria completed its first peaceful transition of power nine months ago—to Muhammadu Buhari, who has since made some progress in reforming the military, sacking corrupt leaders, and injecting energy into the counter-Boko Haram campaign. On February 29, the Africa Security Initiative at Brookings hosted a discussion on the current state of Nigeria, featuring EJ Hogendoorn of the International Crisis Group, Madeline Rose of Mercy Corps, Mausi Segun of Human Rights Watch, and Amadou Sy from Brookings. Brookings’s Mike O’Hanlon moderated the conversation. As O’Hanlon argued at the start, Nigeria is one of the most important countries in the world, but appears little in policy debates. Nigeria is sub-Saharan Africa’s largest economy, and security risks emanating in the country can have spillover effects. All of the participants stressed that Nigeria should factor more centrally in conversations about international security, economic development, and humanitarian issues. Nigeria’s ups and downs O’Hanlon started by framing three overlapping challenges in Nigeria: The struggle against Boko Haram, which is more complicated than a pure terror group, but has also pledged loyalty to ISIS. The question of reform, to include the army, the police, and the entire government. The state of the economy, since Nigerian livelihoods need to be improved if there is any hope to handle the first two situations. Hogendoorn praised the peaceful transition of power to President Buhari, calling it a “stunning achievement” for the country and those who helped from the outside. However, the problems facing Nigeria—namely the insurgency in the Niger Delta, declining oil prices, and corruption and government mismanagement (at state and federal levels)—are large, he said. He argued that declining oil prices and income are impacting the government’s ability to fulfill promises, and that state governments are powerful and difficult to reform. He praised some anti-corruption institutions in Nigeria, as well as a number of effective governors who have changed corruption situation dramatically over a short period of time. But in the end, he said, it comes down to good leadership. The Nigerian people must demand accountability. Rose detailed how things have changed in Nigeria since Mercy Corps became heavily involved in the area in 2012. Mercy Corps’ main missions there include violence reduction, education, and creating opportunity for young girls, as well as humanitarian response. While there has been progress on chronic violence in Nigeria, particularly in the northeast of the country, Rose stressed that there is much to be done. She concluded that there is not enough attention to the human element of the crisis. For example, Rose noted that displacement is common across the Northeast. The displaced are mainly women and children. In the displaced groups, the eldest becomes de facto head of household—sometimes forcing leading adolescent girls to turn to selling sex for food or money for food. Rose called on the government to address this. Segun agreed that the focus needs to change regarding crisis response in Nigeria. In the past, the focus has been almost entirely on a military response. This has not been a workable plan, she said, partly because the “military operates above the law.” The reforms in Nigeria must have a social component, Segun argued. Lack of access to opportunity, economic problems, and desertification of major water bodies have all combined to drive farmers and fisherman from the Northeast and into the heart of the conflict. Sy returned to the importance of economic interests in resolving the crises in Nigeria. He reminded the audience that the country is the largest economy of sub-Saharan Africa, and that is important for the entire continent. Since two-thirds of the government revenue comes from oil, the oil shock has dealt a huge blow. But there is hope for Nigeria, Sy noted. One reason is stimulus via investment outside the oil sector. There has been an increase in infrastructure spending, as well as on human development (namely in education and health). In both cases, he said the biggest issue will be implementation. Sy gave four recommendations to the Nigerian government: 1) increase infrastructure expenditure, 2) make government more lean and cost-effective, 3) increase taxation in non-oil revenue items, and 4) reduce corruption. Overall, the participants expressed cautious hope for Nigeria despite the problems it faces. The government there still has a long list of to-do’s, but there is reason to believe that it is on the right general track. Authors Ian Livingston Full Article
what What China's new food safety law might mean for consumers and businesses By webfeeds.brookings.edu Published On :: Fri, 13 May 2016 15:35:00 -0400 Food safety is not a problem unique to China, though it is certainly one of the country’s most pressing and persistent challenges. On April 28, 2016, the John L. Thornton China Center hosted a public event to discuss food safety in China and what new regulations might mean for consumers and businesses. Revised food safety law a step in the right direction China’s revised Food Safety Law, enacted in October 2015, is intended to strengthen the regulation of food companies in China and enhance oversight along the supply chain. The law imposes tougher consequences on violators of food safety regulations. The revised Food Safety Law is a step in the right direction, but improving food safety will require more than just new regulations. Greater inter-agency coordination is needed among the various government entities with regulatory responsibility for food safety, including the China Food and Drug Administration, the Ministry of Agriculture, the National Health and Planning Commission, and the General Administration of Quality Supervision, Inspection and Quarantine. China has done relatively better in enforcing food safety and quality standards for its food exports than it has for its domestic food market. A disparity between export quality and what is found in local markets is not uncommon in developing countries. But after several large-scale food safety incidents, domestic Chinese consumers are now paying close attention to the quality of their food and are no longer willing to accept such a disparity. Setting and enforcing higher food safety standards domestically is important for maintaining public health and for increasing consumer confidence. The latter will take time but is an indispensable component of the consumption-driven economy that China seeks. Industry consolidation needed One of the biggest obstacles facing Chinese food safety regulators is a still-fragmented domestic food industry with many small players. The increase in regulatory requirements and inspections mandated by the new law will raise the costs of doing business and likely lead to industry consolidation, which would help make the domestic Chinese food industry more manageable from a regulatory perspective. Emerging trends that see consumers buying food products from small and perhaps unverified retailers online actually make the jobs of regulators more difficult. This is because products are harder to trace—and, if there is a problem, to recall—when transactions occur through nontraditional retail channels. Traceability is critical to ensuring food safety because it allows problematic food items to be identified. The responsible firm can then correct the situation and each actor in the supply chain can be held accountable. The Chinese government is already supporting initiatives that aggregate production units at the farm level. These farmer production bases enable farmers to coordinate food production and marketing to larger retailers. Participating farms have been provided with safe pesticides and guidelines on pesticide application; they are also able to sell to large retailers directly. These direct farmer-retailer relationships allow for greater traceability and facilitate the spot-checking that is necessary for verification. This model holds promise for improving food safety, especially as it pertains to pesticide application, but it will need to be scaled up to have a meaningful impact on China’s domestic food market. What can China learn from other countries? Since China is not alone in facing food safety challenges, it can learn lessons from the experiences of other countries. According to Vivian Hoffmann of the International Food Policy Research Institute, “there are many ways in which the public sector can harness the capacity and energy of the private sector to make food safety regulation more efficient.” For instance, China could consider greater co-regulation, which is a strategy that involves the private sector in regulation. Allowing firms to give input when regulators are setting standards can help prevent situations where unattainable standards are either crippling for companies or just ignored altogether. Hoffman is clear to note that allowing firms to give input does not mean compromising on consumer safety. Rather, it would create a more transparent process that would allow companies time to work up to higher standards if necessary. Private companies could be involved in testing their own products, but verification testing would still be needed. Open communication with consumers is also important. The risk-based approach to food safety, which is the international norm and which China has also adopted, entails a particular challenge: Sometimes what consumers think is the most dangerous aspect of the food supply is different from scientists’ perceptions and knowledge of risk. For example, scientists may focus on biological contaminants while consumers worry about pesticides and additives. The concerns of consumers should be taken into account when setting priorities, but experts also need to explain why their concerns may be different. Communication and transparency are essential for bridging this disconnect. Chenglin Liu of St. Mary’s School of Law similarly stresses transparency as a key ingredient in improving China’s food safety situation. Broader capacity building efforts—as it relates to rule of law, an independent judiciary, and independent journalism—will help improve the enforcement of regulations. The country’s revised Food Safety Law is a step in the right direction, but it is not enough to resolve China’s food safety woes. Regulatory enforcement remains a challenge. Fortunately, it is by no means an insurmountable one. Vigilant consumers will continue to demand higher-quality and more-traceable food products, a trend that puts increasing pressure on regulators to enforce high standards and that also presents great opportunities for proactive businesses. Authors Lin Fu Image Source: © China Stringer Network / Reut Full Article
what What to do about the coming debt crisis in developing countries By webfeeds.brookings.edu Published On :: Mon, 13 Apr 2020 16:22:49 +0000 Emerging markets and developing countries have about $11 trillion in external debt and about $3.9 trillion in debt service due in 2020. Of this, about $3.5 trillion is for principal repayments. Around $1 trillion is debt service due on medium- and long-term (MLT) debt, while the remainder is short-term debt, much of which is normal… Full Article
what What accounts for gaps in student loan default, and what happens after By webfeeds.brookings.edu Published On :: Thu, 21 Jun 2018 09:00:17 +0000 Executive summary In a previous Evidence Speaks report, I described the high rates at which student loan borrowers default on their repayment within 12 years of initial college entry, often on relatively modest amounts of debt. One of the most striking patterns emerging from that report and other prior work is how dramatically default rates… Full Article
what What does the Gannett-GateHouse merger mean for local journalism? By webfeeds.brookings.edu Published On :: Wed, 20 Nov 2019 18:53:41 +0000 Thousands of local newspapers have closed in recent years, and thousands more have cut back staff and reduced their coverage. In the wake of the merger of the nation's two largest newspaper publishers, Gannett and GateHouse Media, Research Analyst Clara Hendrickson explains the economics driving the crisis in local journalism, and why it matters for… Full Article
what Webinar: What role will the Army play in great power competition after COVID-19? By webfeeds.brookings.edu Published On :: Wed, 22 Apr 2020 13:43:31 +0000 Two years after the National Defense Strategy was published, it’s time to take stock of where the Army stands. On an immediate level, the age of COVID-19 presents the Army with an unprecedented set of challenges. From ensuring high levels of readiness to keeping up recruitment, the pandemic has forced the Army to adapt quickly… Full Article
what What coronavirus teaches us about addressing climate change By webfeeds.brookings.edu Published On :: Fri, 10 Apr 2020 09:00:23 +0000 On this episode, Andrea Risotto, the associate vice president of communications at Brookings, interviews William Burke-White and Todd Stern about the connection between the global coronavirus pandemic and the international response to climate change. Burke-White is the Richard Perry Professor at the University of Pennsylvania Law School and a visiting fellow in foreign policy at Brookings. Stern is… Full Article
what What Americans think about President Trump’s response to the coronavirus pandemic By webfeeds.brookings.edu Published On :: Wed, 15 Apr 2020 09:00:02 +0000 In this special edition of the podcast, with Brookings Senior Fellows Bill Galston and Elaine Kamarck discuss President Trump’s handling of the coronavirus pandemic, his administration's response, and public opinion on that response. Also, what effect will the crisis and response to it have on the election in November? Galston is the Ezra K. Zilkha… Full Article
what Africa Policy Dialogue on the Hill: The future of African jobs and what it means for the US By webfeeds.brookings.edu Published On :: Mon, 27 Jun 2016 12:00:00 -0400 Event Information June 27, 201612:00 PM - 1:30 PM EDTMeeting Room NorthCapitol Visitor Center Sub-Saharan Africa’s growth performance over the last decade has been astounding, though they mask underlying job creation challenges facing policymakers. The unemployment rate for sub-Saharan Africa remained fairly stable over the period. In 2015, it stood at a slightly high 7.4 percent, compared with over 9 percent in the European Union and 5.3 percent in the United States. However, the figures on vulnerable employment and the working poor[1] in Africa tell a different story—averaging 69.9 percent and 64.0 percent in 2015, respectively. Indeed, of those who are employed, four in five workers are not in the wage economy, but in the informal sector, with no access to workers’ benefits, social protection, and job reliability. In addition, many workers—both formal and informal—are underemployed or overqualified. The conventional knowledge of structural transformation—labor migration from agriculture to high-productivity, labor-intensive industry—has been turned on its head in Africa. Instead, Africans are moving to jobs in the services sector, which some experts argue is a less productive path. Then again, unique opportunities in African digital jobs are opening up doors the world has never seen before. The need for decent job creation in Africa also provides both threats and opportunities to the United States. For example, a lack of viable jobs could make the turn to crime, violence, and even extremism—with the promise of steady income from these activities—more appealing to economically marginalized individuals, especially among the youth. Furthermore, job creation boosts the growth of the middle class, expanding the base of consumers for American products, at the same time creating new, stronger trade partners able to supply goods to American consumers. Already, the United States and other countries are creating a myriad of programs to boost entrepreneurship on the continent. On Monday, June 27, the Brookings Institution’s Africa Growth Initiative and the Congressional African Staff Association hosted an event to discuss why Africa is struggling to create the quantity and quality of jobs it needs and what policies—both African and U.S.—can turn that trend around. Ernest Danjuma Enebi, founder and managing partner of The Denda Group, moderated the discussion. Panelists included Dr. Eyerusalem Siba, research fellow at the Africa Growth Initiative; Hassanatu Blake, co-founding director and president of the non-profit Focal Point Global; and Nicolas Cook, a specialist in African Affairs in the Foreign Affairs, Defense, and Trade Division of the Congressional Research Service. The discussion touched on multiple key points, including what Africa’s unique structural transformation path means for the region’s employment landscape; how development partner efforts affect job growth on the continent; how Africa can avoid a potential “demographic timebomb” of youth unemployment and instead benefit from a “demographic dividend”; and how the United States is addressing the challenges these trends pose for both the continent and the U.S. Enebi began the dialogue with a Q&A with Siba on an overview of African economic trends, youth unemployment, and formal sector jobs on the continent. Blake argued that the high youth unemployment is due in part to the region’s struggling educational systems where Poor quality education leads to poor grades on periodic tests and thus students are being pushed out of school, she said. Once out of the formal schooling system, they enter the workforce underprepared without the skills they need to succeed in the job market. Blake continued to argue this point through a description of Harambee, a private South African organization that works towards improving prospects of youth employment. The program has placed over 20,000 youth into jobs over the past 5 years by testing job applicants on literacy and mathematical ability and matching them with employers. Harambee addresses a broader skills mismatch that Blake argued is holding back job creation. More broadly, Blake argued, public-private partnerships must be created to help youth find jobs and employers find employees. A major theme of the discussion was that a shift away from aid and towards the support of labor-intensive industries and enabling environments for business can spur job creation. Of course, causes of unemployment are largely driven by the demand-side factors, acknowledged the panelists. A major theme of the discussion was that a shift away from aid and towards the support of labor-intensive industries and enabling environments for business can spur job creation. Indeed, Cook discussed the importance of the mantra “trade not aid” in addressing these issues, as there are many large American firms with an economic interest in expanding to Africa; however this interest is miniscule compared to Africa’s trade with the rest of the world. Increasing global investments in Africa is, thus, a key part of any job creation, he emphasized. Cook also touched on global relationships with Africa. He noted that only 1 percent of U.S. foreign direct investment (FDI) goes to Africa, and only one percent of American trade is with Africa. Now, several economic development programs, like the U.S. Electrify Africa Act of 2015 and the USAID Power Africa Initiative, exist but are in need of continued funding. To boost trade, the United States has launched the Trade Africa program and has established trade hubs in western, eastern, and southern Africa. Investments in infrastructure, greater participation in the export market, interventions on improving managerial and marketing skills and the use of information and communications technologies (ICTs) to access global markets can help clear the way for greater job creation. Siba agreed with the idea of a focus on trade and FDI as major factors in job creation. In fact, she shifted the discussion toward a focus on investments in supporting industry because, as she emphasized, the biggest predictor of business performance including job creation is export market participation. Investments in infrastructure, greater participation in the export market, interventions on improving managerial and marketing skills and the use of information and communications technologies (ICTs) to access global markets can help clear the way for greater job creation, she said. There are clearly many opportunities for foreign investors to support African industry, but challenges to development remain due to poor infrastructure and a lackluster environment for business. Blake agreed that ICTs and infrastructure hold great potential for spurring job growth, but pointed out that ICT and infrastructure investment “look different” in different parts of the continent. In some countries in central Africa that she worked with and Cameroon, she suggested, ICTs are not always the best vehicle to drive job growth due to the prohibitive cost of ICT devices and emphasized that keeping local conditions in mind when exploring potential job-creating programs and investments is essential for success. Cook then pivoted to a discussion on the importance of small enterprises and technology in boosting job growth. He pointed out the importance of WhatsApp as a new means of communication that has helped spur job growth and productivity, and the mobile money transfer platform m-Pesa as a key component of the increase in micro-lending in Kenya. Offered by Safaricom, Kenya’s largest mobile network, M-Pesa allows mobile phone users to transfer money, pay bills, and deposit money. The World Bank highlighted the service in 2009, concluding that “The affordability of the service has been key in opening the door to formal financial services for Kenya’s poor.” The service has also allowed financing of micro-enterprise to take off, but Cook acknowledged that ascertaining the precise impact of these technologies on job growth is very difficult due to the scarcity of data. The small credit card market and rarely used banking services exclude a wide percentage of the population from the financial system. The widespread presence of mobile phones has now opened up this system. Fifty to 80 percent of new jobs in Africa are created by small businesses that are not likely to survive more than five years. Siba elaborated on Cook’s description of the vital role of small businesses in creating jobs on the continent. She argued that any job creation programs in Africa should focus on solving the challenges of small businesses in job creation because they dominate the market structure. Unfortunately, at the moment, small businesses there are not robust. Fifty to 80 percent of new jobs in Africa are created by small businesses that are not likely to survive more than five years. Since small and medium enterprises comprise over 90 percent of all firms in sub-Saharan Africa, this volatility affects the whole economy. As a result, any potential solutions must take this market structure into account. In addition, as Siba suggested, increased focus must be paid to the integration of African businesses into regional markets and domestic and global value chains so that small and medium enterprises have more opportunities to grow. The discussion concluded with a focus on opportunities for growth: Governments should focus on processing raw commodities for local uses, like timber, coffee, and cocoa; small- and medium-sized enterprises should be scaled up with stronger access to financing and skill development; governments should pursue partnerships with private companies to address the skills mismatch; and education funding should be deliberately targeted to address missing skills, correctly processed, and carefully monitored. Continued job creation in Africa depends on it. [1] Making less than $3.10 per day, PPP. Full Article
what Globalization: What the West can learn from Asia By webfeeds.brookings.edu Published On :: Thu, 30 Jun 2016 09:20:00 -0400 Globalization has been hugely beneficial to Asia. Japan, South Korea, Taiwan, Malaysia, Singapore, Hong Kong, Thailand, and China have reaped lasting benefits from worldwide investment flows, knowledge exchanges, and rapid economic growth. And while globalization undoubtedly made the rich even richer, the poor also benefitted. Several Asian economies saw the emergence of a large middle class and the virtual elimination of poverty. The rural poor received higher wages after finding better quality manufacturing jobs in urban centers. And with improvements in technology and expanded trade, there was optimism about job prospects. In ethnically diverse societies such as Malaysia, globalization contributed significantly to the reduction of racial tensions rather than exacerbate them, contrary to what is happening in the West. There is no question that the West has also benefited from globalization. The United Kingdom and the United States have seen huge gains in the services sector, especially in financial services. However, the accompanying income inequality is of a different hue than in Asia. Younger, better educated workers located in cosmopolitan urban centers such as New York and London have seen a phenomenal increase in their income. On the other hand, older, less educated workers in the rusting industrial belts of northern England and America have lost their jobs to manufacturers overseas. Instead of jobs with good growth prospects enjoyed by several generations in the past, the quality of jobs has deteriorated and there is little hope among the rust belt’s working class that this situation can be turned around. Worst, there is a perception that politicians don’t care. The recent voting patterns in the U.S. and the U.K. are a clear reflection of this despondence. How did Asia achieve a shared prosperity from globalization with consistent domestic political support while the rich countries have struggled and are suffering the political blowback? The answer may lie in the heavy investment made by Asian governments in human capital (education and health) to prepare the workforce to take advantage of the high wage manufacturing jobs created by globalized investment. This was complemented by public investment in infrastructure to continue to attract foreign investment. The fiscal deficits associated with large public investment in human capital and physical infrastructure were tolerated because the political and economic benefits of preparing the workforce for new jobs were considered worthwhile objectives. Both the U.S. and the U.K, in contrast, have underinvested in infrastructure and in “skilling up” the labor force to make the transition to new and better jobs from the ones lost to lower wage workers in Asia. In the U.K, it happened under the watch of the incumbent conservative government. While presenting to Parliament the result of the recent referendum to the European Union, Prime Minister David Cameron spoke proudly of leaving behind a sound economy resting on the pillar of a sharp fiscal retrenchment—low taxes and even lower public expenditure. One result of this “sound” economy is that a large number of people are stuck in dead-end jobs and are looking for opportunities to vent their frustration. In the U.S., the Obama administration has been hemmed in by the recalcitrant Republican Congress. Badly needed public investment in health and education to prepare workers and an overdue upgrade of infrastructure to attract investment have been thwarted by a Congress wedded to fiscal austerity. This has prolonged the pain of transition to new jobs. The long and painful transition to productive jobs has resulted in the clamor for reneging on globalization commitments. This is misplaced because protecting jobs that are best done elsewhere is not possible without putting curbs on investment. That would be moving towards a world that globalizes misery. There is thus no alternative to a proactive government that eases the transition to new jobs in rich countries. Of course, Asia had the advantage of preparing its work force for known job streams. Rich countries, on the other hand, have to discover new productive jobs. However, we do know that discovery is more likely if education standards improve, physical infrastructure is cutting edge, and science and research are well-funded. Rich countries don’t have to give up on manufacturing as a source of employment. Germany has shown the way to creating high-end manufacturing jobs in a rich-country setting. It has a highly skilled work force that produces technology-intensive products which generate a large trade surplus. There is little support in Germany for reneging on global commitments. Dying cities, dead-end jobs, and a seemingly uncaring government feed into the perception that living standards will continue to fall. Demagogues exploiting ethnicity point the finger at immigrants and have succeeded in directing rich-country worker ire at them. This is a far cry from the democratic vision rich democracies should aspire to and is not in any away a solution to these problems. The protest should be aimed, instead, at elected governments to play their role in facilitating the transition to the next generation of jobs. The world has paid heavily for Europe’s nationalistic ambitions—colonial subjugation of Africa and Asia and the two world wars are the most egregious examples. The EU is an attempt to tame those impulses by seeking to cooperatively address common challenges instead of competing for narrower nationalistic objectives. The dissolution of the EU and the weakening of other multilateral institutions because of rich countries’ failure to rise up to the globalization challenge would be truly retrogressive. Authors Ijaz Nabi Full Article
what What does the Gantz-Netanyahu coalition government mean for Israel? By webfeeds.brookings.edu Published On :: Tue, 21 Apr 2020 21:02:27 +0000 After three inconclusive elections over the last year, Israel at last has a new government, in the form of a coalition deal between political rivals Benjamin Netanyahu and Benny Gantz. Director of the Center for Middle East Policy Natan Sachs examines the terms of the power-sharing deal, what it means for Israel's domestic priorities as… Full Article
what What Will Be Bernanke’s Political Legacy? By webfeeds.brookings.edu Published On :: Mon, 30 Nov -0001 00:00:00 +0000 As Ben Bernanke finishes his term as chairman of the Federal Reserve, Sarah Binder reflects on Bernanke's political legacy, and how he contributed to the Fed's standing in America's political system. Full Article
what The African leadership transitions tracker: A tool for assessing what leadership change means for development By webfeeds.brookings.edu Published On :: Wed, 25 Mar 2015 11:58:00 -0400 Editor's Note: In this blog, Vera Songwe introduces the African Leadership Transitions Tracker, a new interactive that aims to start a broader conversation about leadership transitions and what they mean for the region and beyond. On March 28, Nigerians voters will go to the polls to participate in their nation’s fifth election since the military handed over power to civilians in 1999. As Africa’s largest economy and an important oil exporter, this election comes at an important time for Nigeria and for the continent as a whole. Events around this election have generated significant debate around electoral and voting processes on the continent such as the importance of a constitution, the cost, the frequency and level of contestability, and the power of incumbency in African elections. However, amid this dialogue, much less consideration has been devoted to where this election stands within the continuum of leader transitions Nigeria has experienced since it first gained independence in 1960. Nigerians have, in fact, gone through 18 leadership transitions in the last 55 years, including the untimely death of former President Umaru Masu Yar’Adua in May 2010, the multiparty elections that brought President Olusegun Obasanjo to power in 1999, and the first presidential elections that brought President Shegu Shagari to power in 1979. Nigeria’s high rate of leadership changeover should not, however, be considered illustrative of Africa’s overall story. On the contrary, a high level of diversity exists among countries in the region on this measure, with countries like Angola having had only one leadership transition since it achieved its independence in 1975, and Benin, on the other hand, undergoing an election, coup, or other type of leadership transition nearly every two years in the country’s 55-year post-independence history. However, overall in Africa today there are more peaceful and competitive leadership transitions than there have been over the last six decades. This contestability process is gaining ground across the continent, and while coups d’etat appear to be fading revolutions are gaining ground where competition has not taken hold. The recent passing of Singapore’s 30 year-long leader Lee Kwan Yew credited with having taken Singapore from a third world country to a fully developed country in less than a generation, has brought the question of leadership and leadership transitions back to the fore. A 2010 report by Michael Spence’s Growth Commission heralds Lee Kuan Yew as the hero of Singapore’s growth story. The African Leadership Transition Tracker hopes to launch a dialogue on what the frequency, nature, and scope of leadership transitions mean for African countries’ growth, stability, and development trajectory overall. Moreover, how have transition trends in the region changed from the time of the African founding fathers and the tumultuous years of the 1960s to the present day? As an initial step towards thinking this question through, Brookings’s African Growth Initiative is today launching the African Leadership Transitions Tracker as a resource both to inform readers about African political history and a tool to initiate analysis on what leadership changeover might mean (or not mean) for development. The Transitions Tracker specifically records all changes that have occurred at the head-of-state level in every African country between the end of the colonial period and the present day. We are hoping that recording this information and presenting it visually (and as a downloadable data set) will help start a broader conversation and support additional work on these issues. Brookings will update this data on a regular basis, and we welcome your feedback as we further refine this interactive. Moreover, the information we present today is by no means the full story—key variables are needed to complement this study, including, for example, the various political party affiliations of leaders within a country or cross tabulations with resources that seek to measure the level of citizen participation and engagement in these transitions. However, as further analysis takes place, we are hoping that the African Leadership Transitions Tracker will enrich dialogue about developments occurring in the region and place current news on elections or other types of changeover events within the broader context of the continent’s leadership story overall. Over the next few months, we will be running a series of articles based on this data. Special thanks to Ehui Adovor, graduate student at George Washington University and the many AGI research assistants, analysts, and program staff that have supported this project, including Jessica Pugliese, Brandon Routman, Christina Golubski, Andrew Westbury, and Amy Copley. Authors Vera Songwe Full Article
what The case for universal voting: What's your opinion? By webfeeds.brookings.edu Published On :: Mon, 21 Sep 2015 10:00:00 -0400 In a new research paper—The case for universal voting: Why making voting a duty would enhance our elections and improve our government—Brookings scholars E.J. Dionne, Jr. and William Galston make the case for universal voting—an electoral system in which voting would be regarded as a required, civic duty. Why not treat showing up at the polls in the same way we treat, say, a jury summons? Dionne and Galston argue that universal voting’s benefits would include enhancing the legitimacy of our governing institutions, increasing turnout and the diversity of the American voter base, and easing the intense partisan polarization that weakens our governing capacity. What do you think of Dionne and Galston’s proposal? Specifically, if voting and registration rules were made easier, should voting in national elections be universal and mandatory for all eligible citizens? To voice your opinion, click the image below and vote. We will share the results on social media. Authors John Hudak Image Source: © Kevin Lamarque / Reuters Full Article