Diplomacy & Defense Think Tank News

International trade, vital for inclusive growth, faces shifts as preferential trade agreements (PTAs) expand beyond tariff reduction. “Deep” PTAs now cover diverse policy areas, requiring significant domestic reforms, but compliance can strain developing countries. Frederik Stender and Tim Vogel write that trade-related assistance could help implement these agreements, but increasing commitments could also jeopardise the effectiveness of aid for trade at the bilateral trade level.

International trade, vital for inclusive growth, faces shifts as preferential trade agreements (PTAs) expand beyond tariff reduction. “Deep” PTAs now cover diverse policy areas, requiring significant domestic reforms, but compliance can strain developing countries. Frederik Stender and Tim Vogel write that trade-related assistance could help implement these agreements, but increasing commitments could also jeopardise the effectiveness of aid for trade at the bilateral trade level.

International trade, vital for inclusive growth, faces shifts as preferential trade agreements (PTAs) expand beyond tariff reduction. “Deep” PTAs now cover diverse policy areas, requiring significant domestic reforms, but compliance can strain developing countries. Frederik Stender and Tim Vogel write that trade-related assistance could help implement these agreements, but increasing commitments could also jeopardise the effectiveness of aid for trade at the bilateral trade level.

2022 war ein herausforderndes Jahr für die Entwicklungspolitik und die Humanitäre Hilfe der Europäischen Union (EU). Die Invasion Russlands in die Ukraine löste weltweite Energie-, Hunger- und Düngemittelkrisen aus und stellte die EU vor große diplomatische Herausforderungen, da sie versuchte, ihre internationalen Partnerschaften zu mobilisieren, um über die Vereinten Nationen (UN) zu reagieren. Im Dezember 2022 waren es drei Jahre, in denen die Europäische Kommission unter Ursula von der Leyen tätig war. Die Bilanz zeigt eine Europäische Kommission, die sich bemüht hat, ein geopolitischer Akteur zu werden, aber in diesen beiden Politikbereichen mit einer erheblichen „Krisenhaftigkeit“ und einem entsprechenden Mangel an Initiative konfrontiert war. Fortschritte bei wichtigen Themen wie der Migration und den Partnerschaften mit Afrika und den afrikanischen, karibischen und pazifischen Gruppen wurden durch mangelnde Einigkeit innerhalb der EU und mit den betroffenen Gruppen behindert, während es neuen EU-Initiativen – darunter Global Gateway – an Klarheit mangelte und sie keine konkreten Ergebnisse zeigten. Im Juni 2023 kommen die Wahlkämpfe zum Europäischen Parlament langsam in Fahrt, was in Verbindung mit der Überprüfung des Mehrjährigen Finanzrahmens der EU neue Impulse für die entwicklungspolitische Vision und Ausrichtung der EU geben könnte.

2022 war ein herausforderndes Jahr für die Entwicklungspolitik und die Humanitäre Hilfe der Europäischen Union (EU). Die Invasion Russlands in die Ukraine löste weltweite Energie-, Hunger- und Düngemittelkrisen aus und stellte die EU vor große diplomatische Herausforderungen, da sie versuchte, ihre internationalen Partnerschaften zu mobilisieren, um über die Vereinten Nationen (UN) zu reagieren. Im Dezember 2022 waren es drei Jahre, in denen die Europäische Kommission unter Ursula von der Leyen tätig war. Die Bilanz zeigt eine Europäische Kommission, die sich bemüht hat, ein geopolitischer Akteur zu werden, aber in diesen beiden Politikbereichen mit einer erheblichen „Krisenhaftigkeit“ und einem entsprechenden Mangel an Initiative konfrontiert war. Fortschritte bei wichtigen Themen wie der Migration und den Partnerschaften mit Afrika und den afrikanischen, karibischen und pazifischen Gruppen wurden durch mangelnde Einigkeit innerhalb der EU und mit den betroffenen Gruppen behindert, während es neuen EU-Initiativen – darunter Global Gateway – an Klarheit mangelte und sie keine konkreten Ergebnisse zeigten. Im Juni 2023 kommen die Wahlkämpfe zum Europäischen Parlament langsam in Fahrt, was in Verbindung mit der Überprüfung des Mehrjährigen Finanzrahmens der EU neue Impulse für die entwicklungspolitische Vision und Ausrichtung der EU geben könnte.

2022 war ein herausforderndes Jahr für die Entwicklungspolitik und die Humanitäre Hilfe der Europäischen Union (EU). Die Invasion Russlands in die Ukraine löste weltweite Energie-, Hunger- und Düngemittelkrisen aus und stellte die EU vor große diplomatische Herausforderungen, da sie versuchte, ihre internationalen Partnerschaften zu mobilisieren, um über die Vereinten Nationen (UN) zu reagieren. Im Dezember 2022 waren es drei Jahre, in denen die Europäische Kommission unter Ursula von der Leyen tätig war. Die Bilanz zeigt eine Europäische Kommission, die sich bemüht hat, ein geopolitischer Akteur zu werden, aber in diesen beiden Politikbereichen mit einer erheblichen „Krisenhaftigkeit“ und einem entsprechenden Mangel an Initiative konfrontiert war. Fortschritte bei wichtigen Themen wie der Migration und den Partnerschaften mit Afrika und den afrikanischen, karibischen und pazifischen Gruppen wurden durch mangelnde Einigkeit innerhalb der EU und mit den betroffenen Gruppen behindert, während es neuen EU-Initiativen – darunter Global Gateway – an Klarheit mangelte und sie keine konkreten Ergebnisse zeigten. Im Juni 2023 kommen die Wahlkämpfe zum Europäischen Parlament langsam in Fahrt, was in Verbindung mit der Überprüfung des Mehrjährigen Finanzrahmens der EU neue Impulse für die entwicklungspolitische Vision und Ausrichtung der EU geben könnte.

Businesses often engage in long-term relationships with firms and people they trust and know, in which they informally sell and exchange information and services (Baker, Gibbons, & Murphy, 2002). As postulated by Arrow (1972, p. 357), “virtually every commercial trans-action has within itself an element of trust”. Within these relations, trust is defined as the belief that market actors adhere to informal contract arrangements. Particularly in lower-income countries, which are often described by distortions – such as inefficient institutions (e.g., contract enforcement), imperfect markets (e.g., access to credit), and market distortions created by firms (e.g., lobbying) (Atkin & Khandelwal, 2020) – such relational contracts are important for commercial interactions locally and internationally and are an important complement to formal contracts. In low-income economies, how are relational contracts used to foster economic activity? What policy measures can be used to aid trust-based relational contracts, or to address its inefficiencies? This Policy Brief presents the results from a study on the Rwandan coffee chain, which surveyed coffee mills, farmers and exporters on their performance and relational contracts. The main findings are that relational contracts are an important component at two levels of the chain: (a) between cooperatives, washing stations and mills, and its members, and (b) between mills and buyers. Mills, for example, offer informal provisions to its farmers to ensure timely delivery of high-quality beans. Exporters and mills invest in trust-based relationships with buyers by spending on getting market access and productivity-increasing activities (e.g., investing in new machinery) in anticipation of future buyer demand and prior to formal contracting. Buyers likewise invest in creating and maintaining relational contracts to local firms by providing informal technical and financial support. With the exception of certification programmes, few of the activities that both mills and buyers undertake are formally enforced through contracts but instead are done at the discretion of producers and buyers. Such informal relations are important and necessary because in low-income countries there can be market risks (e.g., limited access to inputs for farmers) that, if not addressed, affect the coffee supply and quality. The coffee sector in Rwanda is to a large extent com-parable to the coffee sector in other countries and other agricultural supply chains in low-income countries (like labour- and quality-intensive products, such as tea and cocoa). Therefore, this study may offer some valuable lessons to policy makers:
1. Promote brokerage services to support trust-based relationships between local firms and international buyers. Brokerage services include programmes (either by governments of international organisations) that bring together and facilitate buyer-supplier linkages. These services have proven successful in creating long-term buyer-supplier relationships, while also facilitating financial and technical support for local firms and market access. There is a role for both international organisations and national governments to provide financing or facilitate such services.
2. Use certification to formalise quality upgrading and market access. Certification programmes include credible, internationally recognised standards and evaluation protocols that are used across multiple commodities. Certification can help formalise some of the quality upgrading and market access activities that firms and farmers otherwise would receive informally through relational contracts. There are roles for national governments to promote and subsidise certification practices and for international organisations and certification providers to expand such services.

Businesses often engage in long-term relationships with firms and people they trust and know, in which they informally sell and exchange information and services (Baker, Gibbons, & Murphy, 2002). As postulated by Arrow (1972, p. 357), “virtually every commercial trans-action has within itself an element of trust”. Within these relations, trust is defined as the belief that market actors adhere to informal contract arrangements. Particularly in lower-income countries, which are often described by distortions – such as inefficient institutions (e.g., contract enforcement), imperfect markets (e.g., access to credit), and market distortions created by firms (e.g., lobbying) (Atkin & Khandelwal, 2020) – such relational contracts are important for commercial interactions locally and internationally and are an important complement to formal contracts. In low-income economies, how are relational contracts used to foster economic activity? What policy measures can be used to aid trust-based relational contracts, or to address its inefficiencies? This Policy Brief presents the results from a study on the Rwandan coffee chain, which surveyed coffee mills, farmers and exporters on their performance and relational contracts. The main findings are that relational contracts are an important component at two levels of the chain: (a) between cooperatives, washing stations and mills, and its members, and (b) between mills and buyers. Mills, for example, offer informal provisions to its farmers to ensure timely delivery of high-quality beans. Exporters and mills invest in trust-based relationships with buyers by spending on getting market access and productivity-increasing activities (e.g., investing in new machinery) in anticipation of future buyer demand and prior to formal contracting. Buyers likewise invest in creating and maintaining relational contracts to local firms by providing informal technical and financial support. With the exception of certification programmes, few of the activities that both mills and buyers undertake are formally enforced through contracts but instead are done at the discretion of producers and buyers. Such informal relations are important and necessary because in low-income countries there can be market risks (e.g., limited access to inputs for farmers) that, if not addressed, affect the coffee supply and quality. The coffee sector in Rwanda is to a large extent com-parable to the coffee sector in other countries and other agricultural supply chains in low-income countries (like labour- and quality-intensive products, such as tea and cocoa). Therefore, this study may offer some valuable lessons to policy makers:
1. Promote brokerage services to support trust-based relationships between local firms and international buyers. Brokerage services include programmes (either by governments of international organisations) that bring together and facilitate buyer-supplier linkages. These services have proven successful in creating long-term buyer-supplier relationships, while also facilitating financial and technical support for local firms and market access. There is a role for both international organisations and national governments to provide financing or facilitate such services.
2. Use certification to formalise quality upgrading and market access. Certification programmes include credible, internationally recognised standards and evaluation protocols that are used across multiple commodities. Certification can help formalise some of the quality upgrading and market access activities that firms and farmers otherwise would receive informally through relational contracts. There are roles for national governments to promote and subsidise certification practices and for international organisations and certification providers to expand such services.

Businesses often engage in long-term relationships with firms and people they trust and know, in which they informally sell and exchange information and services (Baker, Gibbons, & Murphy, 2002). As postulated by Arrow (1972, p. 357), “virtually every commercial trans-action has within itself an element of trust”. Within these relations, trust is defined as the belief that market actors adhere to informal contract arrangements. Particularly in lower-income countries, which are often described by distortions – such as inefficient institutions (e.g., contract enforcement), imperfect markets (e.g., access to credit), and market distortions created by firms (e.g., lobbying) (Atkin & Khandelwal, 2020) – such relational contracts are important for commercial interactions locally and internationally and are an important complement to formal contracts. In low-income economies, how are relational contracts used to foster economic activity? What policy measures can be used to aid trust-based relational contracts, or to address its inefficiencies? This Policy Brief presents the results from a study on the Rwandan coffee chain, which surveyed coffee mills, farmers and exporters on their performance and relational contracts. The main findings are that relational contracts are an important component at two levels of the chain: (a) between cooperatives, washing stations and mills, and its members, and (b) between mills and buyers. Mills, for example, offer informal provisions to its farmers to ensure timely delivery of high-quality beans. Exporters and mills invest in trust-based relationships with buyers by spending on getting market access and productivity-increasing activities (e.g., investing in new machinery) in anticipation of future buyer demand and prior to formal contracting. Buyers likewise invest in creating and maintaining relational contracts to local firms by providing informal technical and financial support. With the exception of certification programmes, few of the activities that both mills and buyers undertake are formally enforced through contracts but instead are done at the discretion of producers and buyers. Such informal relations are important and necessary because in low-income countries there can be market risks (e.g., limited access to inputs for farmers) that, if not addressed, affect the coffee supply and quality. The coffee sector in Rwanda is to a large extent com-parable to the coffee sector in other countries and other agricultural supply chains in low-income countries (like labour- and quality-intensive products, such as tea and cocoa). Therefore, this study may offer some valuable lessons to policy makers:
1. Promote brokerage services to support trust-based relationships between local firms and international buyers. Brokerage services include programmes (either by governments of international organisations) that bring together and facilitate buyer-supplier linkages. These services have proven successful in creating long-term buyer-supplier relationships, while also facilitating financial and technical support for local firms and market access. There is a role for both international organisations and national governments to provide financing or facilitate such services.
2. Use certification to formalise quality upgrading and market access. Certification programmes include credible, internationally recognised standards and evaluation protocols that are used across multiple commodities. Certification can help formalise some of the quality upgrading and market access activities that firms and farmers otherwise would receive informally through relational contracts. There are roles for national governments to promote and subsidise certification practices and for international organisations and certification providers to expand such services.

This article presents an overview of the characteristics of disinformation in the digital age, outlines the evolution of the EU’s efforts to tackling disinformation, and provides an overall analysis of its governance approach along policies, actors, and policy instruments. On this basis, we analyse its compatibility with the EU’s quest for digital sovereignty. Main findings are that the EU has maintained a notably stable approach by combining soft and hard instruments within a co-regulatory framework that involves private and public actors. We conclude that an interplay of the nature of disinformation, the setup of big online platforms, EU regulation, and the exposure to foreign influences creates a complex set of competing factors that facilitate and constrain digital sovereignty.

This article presents an overview of the characteristics of disinformation in the digital age, outlines the evolution of the EU’s efforts to tackling disinformation, and provides an overall analysis of its governance approach along policies, actors, and policy instruments. On this basis, we analyse its compatibility with the EU’s quest for digital sovereignty. Main findings are that the EU has maintained a notably stable approach by combining soft and hard instruments within a co-regulatory framework that involves private and public actors. We conclude that an interplay of the nature of disinformation, the setup of big online platforms, EU regulation, and the exposure to foreign influences creates a complex set of competing factors that facilitate and constrain digital sovereignty.

This article presents an overview of the characteristics of disinformation in the digital age, outlines the evolution of the EU’s efforts to tackling disinformation, and provides an overall analysis of its governance approach along policies, actors, and policy instruments. On this basis, we analyse its compatibility with the EU’s quest for digital sovereignty. Main findings are that the EU has maintained a notably stable approach by combining soft and hard instruments within a co-regulatory framework that involves private and public actors. We conclude that an interplay of the nature of disinformation, the setup of big online platforms, EU regulation, and the exposure to foreign influences creates a complex set of competing factors that facilitate and constrain digital sovereignty.

Die deutsche Afrikapolitik braucht ein neues Ambitionsniveau für kohärentes Handeln. Notwendig ist ein integrierter Ansatz, der unterschiedliche Politikfelder stärker miteinander verzahnt. Dafür braucht es ein ressortübergreifendes Narrativ und neue Institutionen und Verfahren zur Koordinierung der deutschen Afrikapolitik.

Die deutsche Afrikapolitik braucht ein neues Ambitionsniveau für kohärentes Handeln. Notwendig ist ein integrierter Ansatz, der unterschiedliche Politikfelder stärker miteinander verzahnt. Dafür braucht es ein ressortübergreifendes Narrativ und neue Institutionen und Verfahren zur Koordinierung der deutschen Afrikapolitik.

Die deutsche Afrikapolitik braucht ein neues Ambitionsniveau für kohärentes Handeln. Notwendig ist ein integrierter Ansatz, der unterschiedliche Politikfelder stärker miteinander verzahnt. Dafür braucht es ein ressortübergreifendes Narrativ und neue Institutionen und Verfahren zur Koordinierung der deutschen Afrikapolitik.

Der Rat der Europäischen Zentralbank (EZB) hat heute beschlossen, den Leitzins konstant zu halten. Dazu ein Statement von Marcel Fratzscher, Präsident des Deutschen Instituts für Wirtschaftsforschung (DIW Berlin):

Die Entscheidung der Europäischen Zentralbank, die Zinsen konstant zu halten, ist nachvollziehbar. Allerdings hat die EZB die Gelegenheit verpasst, ein klares Signal für einen Richtungswechsel in der Geldpolitik zu senden. Die Geldpolitik ist viel zu restriktiv; sie ist die größte Bremse für die wirtschaftliche Erholung im Euroraum und insbesondere in Deutschland. 

Die Inflation sinkt deutlich schneller als erwartet. Dies betrifft auch die Kerninflation, die Inflationserwartungen sind gut verankert. Die schwache wirtschaftliche Entwicklung weltweit und insbesondere in Europa ist der wichtigste Grund dafür, dass die Inflation so schnell sinkt. Das größte Risiko für eine weiterhin zu hohe Inflation dürfte die Lohnentwicklung sein, da Beschäftigte eine starke Verhandlungsposition haben und versuchen werden, ihre erheblichen Reallohnverluste der vergangenen Jahre zumindest auszugleichen. 

Die EZB sollte jetzt einen schnellen Kurswechsel vollziehen. Unter den gegenwärtigen Bedingungen wäre eine erste Zinssenkung im ersten Quartal 2024 und weitere Zinssenkungen im Laufe des Jahres 2024 gerechtfertigt und notwendig. Der neutrale Zins, bei dem die Geldpolitik die Wirtschaft weder stützt noch bremst, liegt um die 2,5 Prozent. Damit sind die Zinsen im Euroraum noch um gut zwei Prozentpunkte zu hoch. Die EZB braucht jetzt Mut und Entschiedenheit, um den Kurswechsel zu vollziehen.

Der SOEPnewsletter Dezember 2023 ist ab sofort in der HTML-Version auf Deutsch verfügbar. Wenn Sie automatisch die neuen Ausgaben per E-Mail erhalten möchten, tragen Sie sich bitte in den Verteiler ein. 

Viel Spaß beim Lesen.

Die Ampel darf im künftigen Etat nicht an der falschen Stelle sparen. Ein Gastbeitrag von Stephan Klingebiel, Leiter des Forschungsprogramms „Inter- und transnationale Kooperation“.

Die Ampel darf im künftigen Etat nicht an der falschen Stelle sparen. Ein Gastbeitrag von Stephan Klingebiel, Leiter des Forschungsprogramms „Inter- und transnationale Kooperation“.