Diplomacy & Defense Think Tank News

This paper reviews the current state of literature on the impacts of urbanisation on rural development in the context of sub-Saharan Africa (SSA), with special emphasis to the pathways through which urbanisation affect rural economic development. Assessments of these effects diverge greatly. While some authors see urbanisation as strongly benefitting rural areas, for instance, through increased demand for agricultural goods and services, others highlight negative effects, for example, through the loss of livelihoods emanating from displacements and the conversion of agricultural land that may lead to urban sprawl. Given this complexity, a review that thoroughly analyses the causal relationships between urbanisation and rural development is warranted. To do this, the paper identifies seven pathways through which urbanisation affects rural development both positively and negatively: i) production and consumption linkages; ii) employment linkages; iii) financial linkages; iv) land market linkages; v) information and knowledge linkages; vi) social interactions linkages; and vii) environmental externalities linkages. The study suggests that recognising the importance of such linkages and incorporating them into the local and national economic policies is crucial for sustainable development. Overall, the review findings indicate that the impact of urbanisation on rural development in SSA is conditional and heterogeneous. It is conditional because countries need to be well-placed to reap the benefits of urbanisation, i.e., they need to have conducive infrastructure and institutional settings, as well as strong political commitment and leadership. When well-managed, however, urbanisation can play a pivotal role in reducing rural poverty, improving food security and creating opportunities for rural transformation. To this end, the review has identified research gaps that have important policy relevance in SSA. Addressing these gaps is imperative to harnessing the economic advantages of rapid urbanisation in a way that supports rural areas and promotes sustainable development.

This paper reviews the current state of literature on the impacts of urbanisation on rural development in the context of sub-Saharan Africa (SSA), with special emphasis to the pathways through which urbanisation affect rural economic development. Assessments of these effects diverge greatly. While some authors see urbanisation as strongly benefitting rural areas, for instance, through increased demand for agricultural goods and services, others highlight negative effects, for example, through the loss of livelihoods emanating from displacements and the conversion of agricultural land that may lead to urban sprawl. Given this complexity, a review that thoroughly analyses the causal relationships between urbanisation and rural development is warranted. To do this, the paper identifies seven pathways through which urbanisation affects rural development both positively and negatively: i) production and consumption linkages; ii) employment linkages; iii) financial linkages; iv) land market linkages; v) information and knowledge linkages; vi) social interactions linkages; and vii) environmental externalities linkages. The study suggests that recognising the importance of such linkages and incorporating them into the local and national economic policies is crucial for sustainable development. Overall, the review findings indicate that the impact of urbanisation on rural development in SSA is conditional and heterogeneous. It is conditional because countries need to be well-placed to reap the benefits of urbanisation, i.e., they need to have conducive infrastructure and institutional settings, as well as strong political commitment and leadership. When well-managed, however, urbanisation can play a pivotal role in reducing rural poverty, improving food security and creating opportunities for rural transformation. To this end, the review has identified research gaps that have important policy relevance in SSA. Addressing these gaps is imperative to harnessing the economic advantages of rapid urbanisation in a way that supports rural areas and promotes sustainable development.

The Board of Trustees of the Johannes-Rau-Forschungsgemeinschaft (JRF) has awarded the dissertation prizes for the years 2022 and 2023 for the second time. For the year 2022, Dr Gabriela Iacobuţă from the JRF member institute German Institute of Development and Sustainability (IDOS) was awarded.

The Board of Trustees of the Johannes-Rau-Forschungsgemeinschaft (JRF) has awarded the dissertation prizes for the years 2022 and 2023 for the second time. For the year 2022, Dr Gabriela Iacobuţă from the JRF member institute German Institute of Development and Sustainability (IDOS) was awarded.

The Board of Trustees of the Johannes-Rau-Forschungsgemeinschaft (JRF) has awarded the dissertation prizes for the years 2022 and 2023 for the second time. For the year 2022, Dr Gabriela Iacobuţă from the JRF member institute German Institute of Development and Sustainability (IDOS) was awarded.

Die G7-Staaten brauchen neue Verbündete. Der Think7-Beratungsprozess für die G7, ein Zusammenschluss führender Think Tanks und Forschungsinstitute, mahnt kürzlich in einem Communiqué: Die entschiedene Eindämmung der sich rasant ausbreitenden Schuldenkrise in Entwicklungs- und Schwellenländern sei von zentraler Bedeutung in der Ausgestaltung vertrauensvoller Allianzen innerhalb der G20 und darüber hinaus.

Die G7-Staaten brauchen neue Verbündete. Der Think7-Beratungsprozess für die G7, ein Zusammenschluss führender Think Tanks und Forschungsinstitute, mahnt kürzlich in einem Communiqué: Die entschiedene Eindämmung der sich rasant ausbreitenden Schuldenkrise in Entwicklungs- und Schwellenländern sei von zentraler Bedeutung in der Ausgestaltung vertrauensvoller Allianzen innerhalb der G20 und darüber hinaus.

Die G7-Staaten brauchen neue Verbündete. Der Think7-Beratungsprozess für die G7, ein Zusammenschluss führender Think Tanks und Forschungsinstitute, mahnt kürzlich in einem Communiqué: Die entschiedene Eindämmung der sich rasant ausbreitenden Schuldenkrise in Entwicklungs- und Schwellenländern sei von zentraler Bedeutung in der Ausgestaltung vertrauensvoller Allianzen innerhalb der G20 und darüber hinaus.

Climate policy in the European Union (EU) and Germany changed significantly with the adoption of net-zero emissions targets. A key new development is the growing importance of carbon management. The umbrella term includes not only the capture and storage of CO2 (carbon capture and storage, CCS), but also CO2 capture and utilisation (carbon capture and utilisation, CCU) as well as the removal of CO2 from the atmosphere (carbon dioxide removal, CDR). It is important to provide clarity when differentiating between these approaches and identifying their relation to so-called residual emissions and hard-to-abate emissions. This is particularly important because it will determine the overall ambition of climate policy as well as shape future policy designs and their distributional impacts. Current policy and legislative processes should ensure that carbon management does not delay the phase-out of fossil fuels. New policy initiatives present an opportunity to actively shape the interface between ambitious climate and industrial policy.

Es ist eine Schicksalswahl für die Türkei. Bleibt Erdoğan Präsident oder schafft es sein Herausforder Kilicdaroglu vom Oppositionsbündnis, nach 20 Jahren einen Machtwechsel in der Türkei zu vollziehen und das autoritäre Präsidialsystem Erdogans zu beenden. Wir sprechen darüber mit Dr. Hürcan Aslı Aksoy vom Centrum für angewandte Türkeistudien (CATS). Sie sagt, dass die Wahl zwar frei sei, aber nicht fair.

Die am DIW Berlin angesiedelte forschungsbasierte Infrastruktureinrichtung Sozio-oekonomisches Panel (SOEP) sucht zum nächstmöglichen Zeitpunkt eine studentische Hilfskraft (m/w/div) für 10 Wochenstunden.

Das Statistische Bundesamt hat heute bekannt gegeben, dass die deutsche Wirtschaft im ersten Quartal dieses Jahres um 0,3 Prozent im Vergleich zum vorherigen Vierteljahr geschrumpft ist. Dazu ein Statement von Geraldine Dany-Knedlik, Co-Leiterin Konjunkturpolitik im Deutschen Institut für Wirtschaftsforschung (DIW Berlin):

Mit dem Rückgang des Bruttoinlandsprodukts im ersten Quartal um 0,3 Prozent ist nun klar, dass sich die deutsche Wirtschaft im Winterhalbjahr in einer leichten Rezession befand. Das DIW Berlin hatte einen etwas geringeren Rückgang der Wirtschaftsleistung um 0,1 Prozent prognostiziert. Dass er nun deutlicher ausfiel als erwartet, lag vor allem am privaten Konsum, der mit minus 1,2 Prozent nochmal stärker nachgab als zuvor angenommen. Ursächlich für die Konsumzurückhaltung ist die trotz der Entspannung bei den Energiepreisen unerwartet hartnäckig hohe Inflation und der damit einhergehende reale Kaufkraftverlust. Die positiven Beiträge des Außenhandels und auch von den Investitionen konnten dies nicht kompensieren, so dass das Bruttoinlandsprodukt unter dem Strich zurückging. Sowohl der private Konsum als auch die Wirtschaftsleistung insgesamt dürften sich aber im Jahresverlauf deutlich erholen.

Pascal Boniface · Le G7 à la loupe. Avec Bernard Guetta | Entretiens géopo

Utilizing an original data set, this paper demonstrates how protectionist industrial policy during the period of hybrid liberalisation has shaped the organizational structure of clothing firms in Egypt. It investigates determinants of vertical integration of clothing firms into fabric production. High-end market segments are a critical determinant of integration. Limited access to finance restricts the possibilities for many firms to undertake the investment required to integrate, whilst volatile and uncertain market conditions make firms more likely to rely on the market for their inputs. But there are nuances related to market segment. Producers of higher quality garments rely on imported textiles, so these producers do not integrate even if search and switch costs are high. But the opposite is true of producers relying on domestic suppliers. Foreign institutions are better able to ensure contract enforcement with respect to quality and timely delivery so that suppliers opportunistic behaviour is deterred, reducing the necessity of clothing firms to integrate. This may not be the case with respect to domestic suppliers, when domestic institutions do not guarantee the same level of enforcement. The adoption of the hybrid liberalisation model meant that the transition to a market economy was not preceded by the creation of the necessary regulatory framework. This model resulted in inefficient upstream production and in an institutional setting conducive to agency problems. It also meant that business suffers excessive and inefficient bureaucracy. It is thus not possible for firms to achieve the first best outcome of arm’s length relations based on frictionless market transactions. Given these structural constraints firms opt for the second best solution of make rather than buy, i.e. vertical integration. But only some firms are able to use the arbitrary and discretionary decision making system to their favour, negotiating government obstacles to successful business. Those linked to power, prospered, whilst the businesses of others foundered against the wall of patronage, bureaucracy and red tape.

Utilizing an original data set, this paper demonstrates how protectionist industrial policy during the period of hybrid liberalisation has shaped the organizational structure of clothing firms in Egypt. It investigates determinants of vertical integration of clothing firms into fabric production. High-end market segments are a critical determinant of integration. Limited access to finance restricts the possibilities for many firms to undertake the investment required to integrate, whilst volatile and uncertain market conditions make firms more likely to rely on the market for their inputs. But there are nuances related to market segment. Producers of higher quality garments rely on imported textiles, so these producers do not integrate even if search and switch costs are high. But the opposite is true of producers relying on domestic suppliers. Foreign institutions are better able to ensure contract enforcement with respect to quality and timely delivery so that suppliers opportunistic behaviour is deterred, reducing the necessity of clothing firms to integrate. This may not be the case with respect to domestic suppliers, when domestic institutions do not guarantee the same level of enforcement. The adoption of the hybrid liberalisation model meant that the transition to a market economy was not preceded by the creation of the necessary regulatory framework. This model resulted in inefficient upstream production and in an institutional setting conducive to agency problems. It also meant that business suffers excessive and inefficient bureaucracy. It is thus not possible for firms to achieve the first best outcome of arm’s length relations based on frictionless market transactions. Given these structural constraints firms opt for the second best solution of make rather than buy, i.e. vertical integration. But only some firms are able to use the arbitrary and discretionary decision making system to their favour, negotiating government obstacles to successful business. Those linked to power, prospered, whilst the businesses of others foundered against the wall of patronage, bureaucracy and red tape.

Utilizing an original data set, this paper demonstrates how protectionist industrial policy during the period of hybrid liberalisation has shaped the organizational structure of clothing firms in Egypt. It investigates determinants of vertical integration of clothing firms into fabric production. High-end market segments are a critical determinant of integration. Limited access to finance restricts the possibilities for many firms to undertake the investment required to integrate, whilst volatile and uncertain market conditions make firms more likely to rely on the market for their inputs. But there are nuances related to market segment. Producers of higher quality garments rely on imported textiles, so these producers do not integrate even if search and switch costs are high. But the opposite is true of producers relying on domestic suppliers. Foreign institutions are better able to ensure contract enforcement with respect to quality and timely delivery so that suppliers opportunistic behaviour is deterred, reducing the necessity of clothing firms to integrate. This may not be the case with respect to domestic suppliers, when domestic institutions do not guarantee the same level of enforcement. The adoption of the hybrid liberalisation model meant that the transition to a market economy was not preceded by the creation of the necessary regulatory framework. This model resulted in inefficient upstream production and in an institutional setting conducive to agency problems. It also meant that business suffers excessive and inefficient bureaucracy. It is thus not possible for firms to achieve the first best outcome of arm’s length relations based on frictionless market transactions. Given these structural constraints firms opt for the second best solution of make rather than buy, i.e. vertical integration. But only some firms are able to use the arbitrary and discretionary decision making system to their favour, negotiating government obstacles to successful business. Those linked to power, prospered, whilst the businesses of others foundered against the wall of patronage, bureaucracy and red tape.