Economics & Global Affairs

On March 26, the study group met for the first time to examine recent democratic progress and backsliding in African countries. The session focused on ongoing conflicts in different regions of Africa and examined their political underpinnings. Participants also discussed the role of third-party actors in supporting and facilitating conflict mediation and peacebuilding efforts in the continent. The study group counted with the presence of external expert guest Dr. Antje Herrberg, Chief of Staff of the European Union Capacity Building Mission in Niger (EUCAP Sahel Niger). Dr. Herrberg brings more than two decades of professional and personal experience in transition and conflict resolution, intractable conflict, and terrorism with a deep interest to alleviate the suffering of people. Furthermore, Florian Dirmayer, Master in Public Policy Candidate at Harvard Kennedy School, delivered a memo briefing on European Union Security Cooperation with Niger After the 2023 Military Coup.

Stephen Walt analyzes the priority that the United States should place on competing with China by asking and answering five questions.

U.S. export controls on China’s semiconductor industry are just the opening salvos in a series of unprecedented export controls on China planned by the Biden administration. After controls on semiconductors, the Commerce Department is moving on to the next emerging technology it worries China could weaponize—quantum computing.

Ownership of reforms by citizens is often presented as important for success. This paper explores media engagement and support for economic reforms in the Gulf Cooperation Council (GCC) countries using text analysis techniques on publicly available sources. Results show that while reform efforts have intensified in recent years in the GCC, these efforts tend to focus on stronger rather than weaker policy areas, potentially limiting the growth-enhancing effect of reforms. Social media analysis using Twitter shows that the population’s support for reforms has been declining. The analysis of traditional
news media points to more engagement by international than by local media. However, sentiment from international media is less positive about economic reforms in the GCC. Sentiment in international media and social media matters, as evidenced by its positive and strong correlation with FDI inflows into the GCC.

Joseph Nye writes: From an American perspective, it is just as dangerous to underestimate Chinese power as it is to overestimate it. While hysteria creates fear, discounting China's recent progress and future ambitions could lead the United States to squander its own long-term advantages.

In this paper, I propose five key science and technology areas for greater US-Australia collaboration that carry significant national security and defence risks for both countries. Rapid progress against these challenges will position us for success and strengthen our resilience against groups that seek to undermine the global rules-based order. 

Will China succeed in what some call its grand strategy of displacing American power? Whichever scenario emerges also depends on the strategy the US chooses in response, rites Joseph Nye.

In this policy brief, we consider the existing mechanism of tax credits. We see how they can encourage private sector risk-taking to enable research and development (R&D) outcomes. However, our goal is to go beyond economic growth benefits, and to include the less tangible considerations of public good and public purpose in the research and development domain. We then suggest an expansion of tax credits focused on supporting the researchers involved in the R&D and encouraging innovation in both large organizations and in startups and small businesses. This approach builds upon the existing framework of agency-led, mission-defined support of the private sector used by the U.S. government, as occurs in other programs such as America’s Seed Fund (sometimes known by its acronyms, SBIR and STTR). The integration of specific agency- and mission-focused elements to the credit system ensures that these additive credits support research and researchers whose R&D outcomes will improve the health, prosperity, and opportunity for the U.S. as a whole.

In response to the global pandemic, public authorities in Egypt responded with a comprehensive package aimed at tackling the health emergency and supporting economic activity. This column examines how private sector firms perceived ease of access to finance before and after the emergence of Covid-19 in 2020.

The success of U.S. President Joe Biden's China policy will depend on whether the two powers can cooperate in producing global public goods, while competing in other areas. The U.S.-China relationship is a "cooperative rivalry," in which the terms of competition will require equal attention to both sides of the oxymoron.  Joseph Nye argues that it will not be easy.