Africa

Kelly Greenhill argues that by exploiting political divisions that exist within targeted states, the threatened or actual deployment of engineered flows of migrants has long been a distressingly effective policy instrument, and it is unlikely to go away anytime soon. Unless policymakers begin to confront the forces that enable weaponized migration, the favored policy responses seem destined to increase, rather than curtail, its use.

Capital Choices analyzes the creation of different SWFs from a comparative political economy perspective, arguing that different state-society structures at the sectoral level are the drivers for SWF variation. Juergen Braunstein focuses on the early formation period of SWFs, a critical but little understood area given the high levels of political sensitivity and lack of transparency that surround SWF creation. Braunstein’s novel analytical framework provides practical lessons for the business and finance organizations and policymakers of countries that have created, or are planning to create, SWFs.

The Covid-19 pandemic has drastically disrupted people’s lives, livelihoods, and economic conditions around the world. The global shock has resulted in a tourism standstill (Djankov 2020), significant capital flight (Djankov and Panizza 2020), and a slowdown in remittances (Nonvide 2020), resulting in an urgent balance-of-payments need. Egypt responded to the crisis with a comprehensive package aimed at tackling the health emergency and supporting economic activity. The Ministry of Finance acted swiftly to allocate resources to the health sector, provide targeted support to the most severely impacted sectors, and expand social safety net programmes to protect the most vulnerable. Similarly, the Central Bank of Egypt adopted a broad set of measures, including lowering the policy rate and postponing repayments of existing credit facilities. The next section highlights the experience of firms in Egypt following these policies.

President-elect Joe Biden’s decision to create a new cabinet-level position for climate-related issues — and to choose so prominent a figure as former Secretary of State John Kerry to fill it — demonstrates Biden’s sincerity over putting climate at the very center of U.S. foreign policy. It is easy to understate the importance of this appointment, given the flurry of czars created by most new administrations.

As economies begin to orient themselves towards recovery and growth in a post-COVID-19 era, they will first need to disentangle themselves from their prior bedfellows, the state, whose courtship was necessary for survival during the pandemic.  Such bedfellow relationships have become increasingly common as government intervention is urgently needed for economic stabilization. Governments have also embraced their new role with vigor. According to the IMF, as of April 2020, countries have committed around $8 trillion to combat the pandemic and to remedy its ill effects on economies and societies. Decisions about how this money will be spent will undoubtedly recalibrate the logic of capitalism for years to come. 

Authoritarian modes of governing have steadily increased over the past 10 years. A number of autocracies have intensified their repressive tactics, while several democracies – many of which were once classified as consolidated – have tampered with fundamental rights and the rule of law. Despite a few developments to the contrary, the Bertelsmann Transformation Index (BTI) 2020 highlights the ongoing decline of democracy around the globe.

The presentation of BTI results focused on the resembling patterns of dismantling democracy in (highly) defective democracies such as Hungary, Moldova, the Philippines, Serbia or Zambia and regimes in which this process has been so pronounced that they are now categorized as autocracies in the BTI, such as Bangladesh, Guatemala, Honduras, Kenya, Mozambique, Nicaragua, Turkey or Uganda. It looked at the typical sequence to an authoritarian deconstruction of democratic institutions from within, from the purposeful undermining of oversight institutions, attacking the media and civil society to manipulating the electoral system, in order to examine the resonance of these trends in the United States. The goal of the discussion is to identify the features and underlying causes of this erosion, and to suggest promising counter-strategies.

Juergen Braunstein and Sachin Silva argue that sovereign wealth funds may be central to governments' efforts to balance public responsibility with private interests in post-pandemic economies.

As the divergent experiences of the US and South Korea show, testing can be the difference between disease containment and catastrophe. Rather than relying on national governments to ensure the rapid development, production, and deployment of diagnostics during outbreaks, the world needs a global coordinating platform.

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.

Could using the cash in your pocket have the potential to spread covid-19? That question has rarely appeared in the news, but many governments and leaders in the digital payments industry are wondering how the virus might impact the use of cash. Several countries have already taken drastic measures to limit circulation of bank notes. Could such interventions lead to the end of cash payments?