Pakistan: the political economy of militarism

Ahmad Faruqui is an economist, who serves as a fellow with the American Institute of International Studies. He is the author of Rethinking the National Security of Pakistan. Julian Schofield is an assistant professor in political science at Concordia University, Montreal, Canada. His research examines the effects of arms races, particularly in relation to South Asia.     

The political economy of the Trans-Pacific Partnership: a US perspective

The Trans-Pacific Partnership (TPP), signed in February 2016, is the most ambitious free trade deal of the postwar era. The 12 TPP countries account for nearly 40 percent of the world's economy. Coupled with the Transatlantic Trade and Investment Partnership—which is still being negotiated between the United States and the European Union—the TPP represents an attempt by the Obama Administration to lead in promoting regional trade and investment arrangements despite the failure of the Doha Round to reach a comprehensive global trade deal under the auspices of the World Trade Organization. Although the agreement among the 12 TPP countries has been reached, ratification by their legislatures is pending. Ratification by the US Congress remains uncertain due to complex economic and political factors in the United States, including the presidential election of 2016.     

The economics and political economy of going beyond the GATS

This paper addresses the economic and political economy factors explaining why countries agree upon services commitments in regional trade agreements (RTAs) going beyond the General Agreement on Trade in Services (GATS), what we call the commitments gap. Using a unique dataset comprising of detailed schedules of services commitments disaggregated by sub-sectors and covering almost all countries that are members of a services RTA, we are able to quantify the extent to which geographical, systemic as well as economic and institutional factors correlate with a country’s pattern of RTA commitments that go further than commitments made at the WTO. Strong explanatory variables are asymmetries between negotiating partners and market size, together with endowments in mid-skilled labor and institutional governance. Whereas some of these forces are strongly positively associated with commitments made beyond GATS, others are significant determinants that correlate negatively with a country’s commitment patterns in RTAs. We also find strong differences between services industries providing evidence that not all economic and political economy factors are of equal importance for all services. For instance, financial and construction services often diverge significantly from our general pattern of explanations.     

The political economy of Southeast Asia's techno-glocalism

Asian economies' prospects for upward mobility within the global division of labour hinge significantly on the degree to which transnational corporations' (TNCs) global production networks (GPNs) accommodate or hinder their efforts to shift from simple production into more remunerative roles. A growing literature notes the rise in various countries of a ‘neo-techno-nationalism’ that aims to bolster local innovation and challenge TNCs' technologically derived leverage over the distribution of roles and rewards within GPNs. Industrial and technological policies in Southeast Asia, however, reflect a quite different ‘techno-glocalist’ strategy. Such strategies are based on a ‘governance bargain’ in which host governments, in exchange for technological upgrading, facilitate TNCs' exercise of governance authority transnationally as well as in coordinating local investments in innovation and other cluster-building activities. They highlight a conceptual distinction between the degree of internalization and hierarchy within networks that is typically elided in theories of GPN governance.     

The political economy of impunity in Colombia: the case of Colombian labour

The problem of impunity has dominated the Colombian political landscape against the backdrop of almost non-stop war in the country since independence. The focus here shall be upon impunity in relation to human rights abuses regarding Colombian workers and union members. The central argument is that impunity is socially entrenched in Colombia due to an historical legacy of a weak state, a concomitant lack of institutionalised conflict resolution mechanisms and the stigmatisation of unions as havens for the revolutionary Left.     

The political economy of DDR in Liberia: a gendered critique

This paper examines the reintegration component of the disarmament, demobilisation and reintegration (DDR) programme in Liberia from a critical gendered perspective. Building on previous arguments pertaining to the securitisation of reintegration in Liberia, the paper considers the highly gendered impetus and impact of both the reintegration project and the securitising act. I argue that Liberian DDR was devised and justified according to assumptions that are default male, thus causing the programme to overlook women except as passive victims of conflict, or as add-ons secondary to the ‘real’ purpose of reintegration. Accordingly, the programme both naturalised specific gendered binaries and favoured moves that would buttress and extend them, for example, by problematising male unemployment and privileging male entry into the formal economy. The paper first explains the securitisation of reintegration in Liberia, before turning to a gendered critique focusing on the political-symbolic and political economic impacts of said reintegration.     

The political economy of labor market regulation by the European Union

Since the introduction of qualified majority voting, at least 58 labor regulations have been imposed by the European Community/Union. Three types of explanations are considered: i) the asymmetry of the EC budgetary process, ii) regulatory collusion and iii) the strategy of raising rivals’ costs. Collusion and the strategy of raising rivals’ costs are compared in a two-country game-theoretic model with international capital mobility. The empirical analysis shows that the transition to qualified majority voting was not preceded by a striking tendency of competitive national deregulation. In all cases in which a directive was contested, the UK was among the contestants. Various indices show that the UK has the least regulated labor market. More generally, the anti-regulation coalition also includes Ireland, the Scandinavian countries and the Netherlands. There are examples showing that if the coalition is too small to block the regulation, its members prefer not to record their dissent officially. In most investigated cases, the European labor regulation is more restrictive than most but not all prior national regulations. The empirical analysis demonstrates that the strategy of raising rivals’ costs plays an important role in EU labor regulation.

The political economy of labor market deregulation during IMF interventions

This study examines the relationship between policy interventions by the International Monetary Fund (IMF) and de jure labor rights. Combining two novel data sets with unprecedented country-year coverage – leximetric data on labor laws and disaggregated data on IMF conditionality – our analysis of up to 70 developing countries from 1980 to 2014 demonstrates that IMF-mandated labor market policy measures significantly reduce both individual and collective labor rights. Once we control for the effect of labor market policy measures, however, we find that collective labor rights increase in the wake of IMF programs. We argue that this result is explained by the impact of union pressure on governments which, in such a context, are imbued with the policy space to respond to domestic interest groups. The study has broader theoretical implications as to when international organizations are effective in constraining governments’ choices.     

The political economy of exchange rate regimes in transition economies

We show that political economy factors play an important role in shaping the exchange rate policies of transition economies. We argue that tradables producers prefer a floating rate to allow active exchange rate policy to affect their competitiveness, while internationally exposed sectors prefer a fixed rate to provide currency stability. We find support for that argument using data on de facto and de jure exchange rate behavior for 21 countries during the period from 1992 to 2004. Our empirical results serve as the basis for predictions regarding the adoption of the euro in the EU accession countries and other countries in Central and Eastern Europe.     

The political economy of stalemate: organised crime,corruption and economic deformation in post-Dayton Bosnia

‘The biggest security threat to this country is not nationalism; it’s criminality, corruption and unemployment'2 More than seven years after the end of the Bosnian war and despite some $5 billion in international reconstruction assistance, Bosnia's economy remains stagnant and dysfunctional, while the country is rapidly gaining a reputation not as an emerging market economy but as a lawless and ungovernable state dominated by organised crime and corruption. This paper assesses Bosnia's post-Dayton political economy, arguing that the nexus between organised crime and corruption, on the one hand, and nationalist political forces, on the other, represents the most significant obstacle to the development of a market economy in Bosnia and poses a growing threat to the country's peace process. This situation is the product of Bosnia's particular post-war and post-socialist environment, which has created a powerful class of elites with an interest in perpetuating the status quo of a largely unreformed economy. In this context, international efforts to impose economic reforms from above, and to encourage local authorities to embrace a reformist marketisation and rule of law agenda, have met with little success. The paper concludes by suggesting that international peace building efforts need to pay greater attention to the ‘enforcement gap’ that has en abled crime and corruption to flourish in Bosnia.     

Turkey and the IMF: A case study in the political economy of policy implementation

Research into IMF program implementation has usually taken the form of large sample regression analyses. A more detailed explanation is offered in this paper through a case study of program implementation in Turkey between 1999 and 2004. Our research is based on a series of in-depth interviews with policy makers, program negotiators, bureaucrats, interest groups and IMF personnel. Our results reinforce hypotheses that emerge from the theory of implementation and the large sample econometric work, but they also offer new and enhanced explanations. Program implementation depends on a range of factors which interact with one another. These include domestic political economy factors, such as the importance of special interest groups, political cohesiveness and program ownership by the government and the IMF, but also other idiosyncratic factors such as, in the case of Turkey, the existence of a crisis, the desire to join the EU and the role of influential technocrats. Our research has implications for the design of IMF programs.

Democratic institutions,political representation and women's empowerment: The quota debate in India

This article reflects upon the debate on quotas for women in representative institutions of government. It poses the question whether current debates about quotas for women are relevant to debates on women's empowerment. In doing so, it points to the bases upon which the arguments for and against quotas have been presented within the Indian political system, taking into account the historical debates on caste, the emergence of coalition politics, the strength of the women's movement, and the engagement of women's groups with the politics of difference. The central argument of the article is that unless the issues of class‐based and caste‐based differences are taken seriously by women's groups in India, the wider question of empowerment cannot be satisfactorily answered. The conclusion assesses whether the Indian example is of relevance to wider debates on quotas as strategies of empowerment.