Building Neo-liberal Markets and Other Agendas: The Politics of Risk Management at AusAID

Abstract

This article analyses emerging approaches by donors to risk management, focusing on the case of the Australian Agency for International Development (AusAID). It suggests that AusAID's understanding and management of risk are expressions of particular political and social interests and, subsequently, that its approach to risk management is inherently political in nature. While AusAID's policies and guidelines on risk management identify a wide range of risks as being relevant to the agency's work – including risks to poverty reduction and sustainable development – in practice it has focused on managing risks to the building of neo-liberal markets, both within Australia and in developing countries, and the Australian government's foreign policy objectives. To illustrate these points, we present an analysis of AusAID's approach to risk management in a major economic governance project, the Philippines-Australia Partnership for Economic Governance Reforms. We conclude by indicating ways in which donor approaches to risk management can be revised to give greater attention to the needs of the poor and civil society, while acknowledging that such revisions may be contingent upon prior changes in the structure of power and interest and/or institutional characteristics of aid policy-making processes in donor countries.     

Is German Direct Investment a Substitute for Domestic Investment?

This article seeks to explore the validity of arguments developed by 'institutionalists', such as Hall and Soskice, by examining investments made by German companies both at home and abroad in quantitative as well as qualitative ways. The evidence - drawn from the car and electrical equipment industries - suggests that Hall and Soskice might be correct in advancing a theory of 'comparative institutional advantage'.     

Conditional Cash Transfer Programs and Electoral Accountability: Evidence from Latin America

Do conditional cash transfer programs reduce voters' incentives to hold their government accountable for its performance? Studies show that these programs generate considerable electoral returns for the governments responsible for them. One important and unexplored question is whether these popular programs have also changed the landscape of accountability in Latin America. Survey data from 16 Latin American countries that have adopted CCT programs do not offer support for the claim that such programs have a detrimental effect on electoral accountability for corruption and for the economy. Only in countries where CCT programs do not follow strict rules do beneficiaries attribute relatively less weight to the government's economic performance, but this effect is marginal. These findings fill an important gap in the literature and offer reassuring evidence that cash transfers can alleviate poverty while preserving voters' incentives to exercise electoral accountability in crucial areas of government performance.     

Institutional journalism in a revolutionary crisis: the press as an aide to the Muslim Brotherhood 2011–2012

This article is based on the hypothesis that the Egyptian institutional media played an active role in the Egyptian ‘Arab Spring’ revolution in 2011 and analyzes how Egypt's official newspapers constructed and presented a moderate and positive image of the Muslim Brotherhood (hereinafter the Brotherhood) despite the fact that they had labeled the Brotherhood ‘the outlawed movement’ a year earlier. In order to examine whether their attitudes changed after the downfall of the Mubarak regime, a critical discourse analysis of newspaper texts has been made of the news columns written throughout 2011 of two of the most popular Egyptian newspapers – al-Ahram (n = 115) and al-Gumhuriyya (n = 94) both of which identify with the Egyptian government's official policy. In addition, an analysis made of three of the Brotherhood's publications (n = 72) (N = 281) revealed that the Brotherhood exploited the printed media not only to replace the regime but also to gain control of its narrative. Ultimately, by controlling the shaping of public opinion, the media contributed to the drawing of a parallel between the motivation that formed the basis of the mass protest and the Brotherhood's agenda.     

SADC and the GCC: Shared regional challenges and potential links

This article assesses the prospects for a clearly articulated economic diplomacy approach in South Africa's foreign policy. It argues that while South Africa's foreign policy has been to a considerable extent normatively grounded, it has failed to develop a coherent economic diplomacy that is based on focused and distinctly expressed priorities. This is a crucial gap that limits the country's ability to respond to regional and global changes, in particular those posed by emerging powers. The article identifies a number of gaps in South Africa's foreign policy approach and highlights its oblivion to global developments and geopolitical dynamics in the African continent. It sets out possible policy outlines for developing a clearer and stronger economic diplomacy. The building blocks for such an approach include the identification of strategic foreign policy priorities; greater institutional co-operation among agencies dealing with economic and foreign policy development; synergies between corporate strategies and government's foreign policy objectives; and the need for South Africa to develop a stronger leadership ambition in the African continent, both to contribute to Africa's development and to pursue its own economic interests. This ambition will require awareness of South Africa's own limitations, thus focusing the better part of its foreign policy on a limited set of countries that match strategic priorities.     

Oil Funds: Perils and Opportunities

Soaring oil prices since the early 2000s has led to a historic transformation of wealth from consuming regions to major oil exporters. In recent years many of these exporters have set up oil funds to utilize their massive and growing oil revenues. These funds are divided into two categories – stabilization and saving funds. Their large investments in Western markets have raised concern that they might be driven by political and strategic interests rather than commercial concerns. This study examines oil funds in the Persian Gulf. It discusses US and European proposals to regulate oil fund investments and argue against excessive regulation.     

Retaining the Quota System in the South Korean Rice Market

On 30 December 2004, the Korean government reached an agreement to postpone tariffs on the rice market until 2014 in exchange for a gradual increase in the minimum market access quota (the access to the Korean market by others based on a percentage of Korea's total consumption of rice). However, economic reasoning shows that if the Korean government had decided to introduce the tariff system instead, the social welfare from the rice market would have increased considerably over the next ten years, even after taking into account the loss in the external value of rice farming. Thus, the 2004 choice of the quota in the rice market by the Korean government was a political decision. This article measures the social welfare in the rice market under the two alternative systems – tariff and quota – for the period 2005–15. It then explores the explanation for the 2004 decision by investigating three key variables: the characteristics of farmers' groups, their interaction with government executives and the legislature, and the trend in public opinion on rice market issues. In light of the organisational weakness of Korean agricultural interest groups, the focus is on farmers' tactics for achieving their goal, i.e. retaining the quota instead of introducing the tariff.     

China and Africa: economic growth and a non-transformative political elite

Prevailing narratives in the discourse on China-Africa engagement are that China is developing Africa. This paper departs from those narratives because they disregard the agency of Africa's political elite. Basing its argument on the nature of the African political elite, the paper analyses their role in determining the impact of China's economic and trade engagement on economic development in their respective countries. To do that, it first discusses the nature and identity of African political elites, and examines how they control their states and scarce resources. Having done that, the paper then analyses their role in determining the nature and extent of development emanating from their countries’ economic engagement with China. It then concludes that it is not how much foreign states invest in African countries that determines Africa's rise, but rather political elites who influence the direction of their states’ development.     

Japan's role in overcoming the Indonesian economic crisis

The prospects for economic recovery in Indonesia depend partly on economic improvement in the other countries of the Asia‐Pacific region, says Sujatmiko, Counsellor of the Indonesian Embassy in Tokyo. If Japan were successful in generating a strong domestic economic recovery, that would in turn help Asia's recovery. The Japanese government's quick and positive response to the financial crisis in Indonesia has been greatly appreciated, although not without its problems. Notably, other major powers have wanted to play a significant role in saving Asia, and some regional rivalry has surfaced. For Japan, Sujatmiko says, the biggest obstacle against taking a leading role has been its closest ally, the United States.     

Shifting Interests: Whitlam,Britain and French Nuclear Tests in the South Pacific

This article focuses on the interaction between the Australian and British governments during the early 1970s over French nuclear testing in the South Pacific. It examines the considerations behind the Australian government's approach to Britain, and Britain's response to initiatives from Australia. Through the presentation of a case study demonstrating how Australia's Pacific interests and Britain's European concerns inevitably led to different perspectives, I argue that the policies of both countries were primarily determined by their consideration of regional geopolitical interests, rather than the lingering links of Empire.     

India and Australia: Security Dynamics in the Asia Pacific

India and Australia are rediscovering the vast potentials of maximizing mutual benefits that are inherent in their complementary economies. There is also a great deal of convergence of interests in the strategic domain. As an emerging power, India's profile has attracted attention by countries in the Asia Pacific region, which tended to neglect it in the past. The rise of China and its assertive stances have created an element of uneasiness in the region. Its military modernization and beefing up of naval capability are suspected to be behind enhancing its power projection capability.

The strategic significance of the Indian Ocean for the region is huge. The region's growth is inextricably linked to the Indian Ocean. The littoral states in the region are home to 2.6 billion people, almost 40% of the world's population. The Indian Ocean is the world's third largest body of water, and the world's leading energy and trade seaway. The volume of global trade brings with it the re-emerging problems of terrorism and piracy, a shared policing challenge for all littoral states. The security of the Indian Ocean goes to the heart of both India's and Australia's national interests.     

Land conflict and Mayangna territorial rights in Nicaragua's Bosawás reserve

Abstract— This paper examines conflicts over land and resources in Nicaragua's Bosawás rainforest reserve between Mestizos and Mayangna Indian people. Mestizos are people of mixed Indian and European descent who speak Spanish and do not consider themselves to be Indians. Bosawás is one of the last refuges of the Mayangna indigenous group and is also the largest area of protected tropical rainforest in Central America. The Mayangna village of Sikilta, in the North Atlantic Autonomous Region, is used to illustrate the nature of land conflicts in the region. Such conflicts–between economic development and conservation, between livelihoods and conservation, and between peasant livelihoods and indigenous territorial rights–are symptomatic of rainforest areas in other parts of the world. Land conflicts in Bosawás are examined within the broader economic, political and institutional context. Potential solutions to land conflict in Sikilta are explored. The paper illustrates the complexities surrounding the demarcation and upholding of indigenous land rights. It highlights the institutional complexities and weaknesses which have allowed Sikilta's land problem to go unresolved. It is argued that until national problems of unequal access to land and unsustainable forms of forest use are addressed, communities like Sikilta will continue to suffer invasion of their land.     

Reappraising the French role in nineteenth-century Egyptian education

This article explores the origins of French influence in Egyptian education by examining the circumstances under which Muhammad Ali Pasha (r. 1805–1848) sent two organized student missions to study in Paris over other European destinations. In the history of modern Egyptian education, French influence on educational institutions is linked to persistent French imperial interest following their occupation of Egypt (1798–1801). French involvement in education was not initially a government project, but rather evolved to become a government project by the end of the Pasha's rule. Using historical evidence, I show that the first mission was a personal venture of ex-Bonapartists who desired to keep the spirit of the Napoleonic expedition alive through informal cultural imperialism despite the Restoration government's disinterest. The French government's official involvement in the second student mission of 1844 was motivated by their colonial interests in North Africa. Previous historians have projected those motivations backwards on the earlier period and that Egyptian choice to make use of French expertise and knowledge was a contingent one.     

Social challenges and progress in IBSA

The India–Brazil–South Africa (IBSA) Dialogue Forum was launched in June 2003 to push for these countries' bids for a place on the United Nation' Security Council, but IBSA's attention has shifted over time towards development and economic reform. This article discusses the progress in addressing social development challenges within the member countries of IBSA. It examines the social achievements of IBSA members, in the context of their economic performance and the Millennium Development Goals. It also assesses the forces which propel these societies' social policies, especially the influence of civil society, and whether there has been benefit in this regard in their collaboration within the IBSA forum. Their experiences show the critical importance of civil society in design and execution of programmes directed towards the poor, an important factor to be kept in mind by multilateral and bilateral agencies involved in poverty alleviation projects in developing countries. The three nations could cooperate to share ideas for effective social welfare programmes, and join together in multilateral forums to form a powerful voice for change.     

“印太战略”背景下的中斯合作

近年来,由于印度洋战略地位的提升以及"印太战略"逐步从构想转变为现实,以美国为首的域外国家和以印度为首的域内国家不断加大对印度洋及其周边国家的政治、外交、经济、军事、安全等投入,使得印度洋的大国博弈日趋激烈。这不仅对印度洋周边国家的内外政策产生了重要影响,而且对我国倡议推动的"一带一路"国际合作也产生了深远影响。尽管斯里兰卡是印度洋上的一个小国,人口不多,经济实力不算强,在"印太战略"中也非核心国家,但其独特的地缘政治经济优势成为各方争夺的对象和大国博弈的一个重点。在此背景下,斯里兰卡的国内外政策与形势出现了许多新变化,国内政局稳定性下降,对外政策出现"摇摆",经济增长率下降,民生改善缓慢,恐怖活动增加,民众意见日益多元化,这值得我们在推进"一带一路"国际合作过程中高度关注。     

National unity and reconciliation in Rwanda: A flawed approach?

This article examines the Rwandan government's national unity and reconciliation policy and one of its key elements, the National Unity and Reconciliation Commission (NURC). It contends that while the NURC potentially represents an innovative model that other post-conflict societies could adapt and use, the central premise on which both the commission and the government's broader national unity and reconciliation policy are based is critically flawed. The unity that they are endeavouring to achieve, as a vehicle for reconciliation, relies upon a negation of ethnicity – a core component of the 1994 genocide – and hence does not allow for an open and honest engagement with the past. The problem is further compounded by the government's attitude towards the prosecution of crimes committed by the Rwandan Patriotic Front (RPF), which not only demonstrates that ethnicity remains highly significant but also underscores the incomplete and partial way in which the past is being addressed.     

Chinese Economic Statecraft and U.S. Hegemony in Latin America: An Empirical Analysis, 2003–2014

If one interprets China's sizable rise in Latin America as an unprecedented phenomenon, it follows that the concurrent story of declining U.S. influence in the region is an event hastily acknowledged at best and ignored at worst. In this article, we ask whether Chinese economic statecraft in Latin America is related to the declining U.S. hegemonic influence in the region and explore how. To do so we analyze foreign direct investments, bank loans, and international trade from 2003 to 2014, when China became a major player in the region. We use data from 21 Latin American countries, and find that an inversely proportional relationship exists between the investments made by Chinese state‐owned enterprises (SOEs), bank loans, manufacturing exports, and the U.S. hegemonic influence exerted in the region. In other words, Beijing has filled the void left by a diminished U.S. presence in the latter's own backyard.     

Foreign investment,black economic empowerment and militarised patronage politics in Zimbabwe

This paper seeks to analyse Zimbabwe's economic empowerment policy. It argues that while there is a felt need for Zimbabwe to redress colonially induced injustices and racial imbalances in the ownership of the means of production, a ‘one-size-fits-all’ approach to the indigenisation of the economy is fundamentally flawed as it deters investors and may further damage the country's already extremely fragile economy. The implementation of the land reform programme contributed to the decline of Zimbabwe's economy: lessons learnt from the programme and related economic policies of the past 15 years highlight the problems of empowerment policies that are intertwined with patronage politics. The government's negation of basic economic principles and failure to open spaces for critical engagement with all relevant stakeholders epitomises an ill-advised indigenisation and economic empowerment strategy. The policy will not promote and retain foreign investment;nor are there sustainable prospects of internally oriented accumulation strategies on the horizon.     

Rescaling to the Indo-Pacific: From Economic to Security-Driven Regionalism in Asia

The ‘Indo-Pacific’ has emerged as the newest addition to the lexicon of Asian regionalism. Conceived of as the conjunction of the Pacific and Indian Oceans, it reflects the belief that maritime linkages require extending Asian regionalism westwards to include countries on the Indian Ocean rim. It also competes with the longstanding ‘Asia-Pacific’ conceptualisation of the region, and four governments—Australia, India, Japan and the USA—have adopted it into their foreign policies. Much of the debate on the Indo-Pacific focusses on how it institutionally ‘rescales’ Asian regionalism through the incorporation of Indian Ocean states. This article considers the functional rescaling that attends this process: namely, what kind of regionalism is implied by the Indo-Pacific concept? It argues that the Indo-Pacific is a security-focussed regional project, reflecting the desire of its proponents to form a quadrilateral bloc to resist China’s growing maritime assertiveness. This security region is radically different from the Asia-Pacific concept, where regionalism was primarily driven by economic integration and cooperation. The Indo-Pacific thus marks a more contested period in Asia’s international politics, where the functional purpose of regional cooperation is being reoriented from economic- to security-focussed agendas.