|
on Confederation of Independent States |
|
Issue of 2022‒09‒19
sixteen papers chosen by |
| By: | Refk Selmi (ESC PAU - Ecole Supérieure de Commerce, Pau Business School) |
| Abstract: | The ongoing Russian/Ukrainian war, along with sanctions imposed on Russia, poses a major shock to the world economy, merely two years after the COVID-19 pandemic. Accordingly, the global economic policy uncertainty has surged due to the resulting spiraling energy prices and economic disruptions. This paper uses a quantile-on-quantile approach to compare the ability of Bitcoin to hedge the economic policy uncertainty (EPU) of major global Bitcoin exchange markets (China, Japan, Korea and the United States) for the periods prior to and post-the COVID-19 and Russia's invasion of Ukraine. The results reveal that, prior to the pandemic, significant rises in EPU lead to high Bitcoin returns. After the COVID-19 and the recent war in Ukraine, the hedge effectiveness of Bitcoin is weakening due to the tight correlation with stocks in times of rising inflation expectations and the global central banks' hawkish response to it. Moreover, the Bitcoin hedging property is country-specific, and depends to different Bitcoin market conditions and various uncertainty levels. We explain this heterogeneity by differences across countries in terms of the recognition of Bitcoin as a legal tender, the Bitcoin trading volume, the exchange market maturity, and the investors' attitude towards risk. |
| Keywords: | Bitcoin,the COVID-19,the war in Ukraine,the economic policy uncertainty,hedge,country-specific analysis |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03737131&r= |
| By: | Jerg Gutmann; Hans Pitlik; Andrea Fronaschütz |
| Abstract: | The Russian invasion of Ukraine has caused disruptions in international trade and highlighted the dependency of small open economies in Europe on imports, especially of energy. These events may have changed Europeans' attitude towards globalization. We study two waves of representative population surveys conducted in Austria, one right before the Russian invasion and the other two months later. Our unique dataset allows us to assess changes in the Austrian public's attitudes towards globalization and import dependency as a short-term reaction to economic turbulences and geopolitical upheaval at the onset of war in Europe. We show that two months after the invasion, anti-globalization sentiment in general has not spread, but that people have become more concerned about strategic external dependencies, especially in energy imports, suggesting that citizens' attitudes regarding globalization are differentiated. |
| Keywords: | Austria, crisis, conflict, globalisation, attitudes, war |
| Date: | 2022–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2022:i:648&r= |
| By: | Simon A. B. Schropp (George Washington University); Christian Lau (Sidley Austin LLP); Olim Latipov (Sidley Austin LLP); Kornel Mahlstein (Sidley Austin LLP) |
| Abstract: | Following the recent G7 Summit in Germany, the United States announced a new sanction package that imposes significantly higher tariffs on products from Russia. These tariff increases concern 570 groups of products affecting more than $2 billion in imports from Russia. The declared objective of these tariff increases is to impose steep economic costs on Russia, while minimizing costs to U.S. consumers. The United States is also considering disbursement of revenues collected from these new tariffs to Ukraine. Using a sector-specific partial-equilibrium model and the most reliable data available, this paper quantifies the welfare impact that the U.S. tariff increases will have on the Russian and the U.S. economies, respectively. We find that the new U.S. tariff sanctions will affect $2.6 billion of U.S. imports from Russia (or 8.7% of total U.S. imports from Russia). Moreover, these new tariff measures may decrease Russian welfare by $181 million per year, while imposing annual costs of $90 million on U.S. consumers. The United States can hope to collect $241 million per year in tariff revenues that may then be used to financially support Ukraine. Our sectoral analysis shows that the U.S.' choice of target sectors produces mixed results. On one hand, the sanctions cover dozens of sectors whose inclusion produce particularly large welfare losses to Russia and/or high welfare gains to the United States. Yet, the sanctions package also raises serious questions about its effectiveness for other sectors. For example, higher tariffs for several selected sectors result in zero harm to Russia, and/or greater harm to the United States than to Russia. These and other insights may provide guidance for the design of future tariff sanctions by G7 Members and other Allies. |
| Keywords: | International trade; Russia; economic sanctions; import tariffs; economic impact; partial equilibrium; sectoral analysis; welfare analysis; pass-through |
| JEL: | F02 F13 F15 F52 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2022-08&r= |
| By: | Diao, Xinshen; Abdelradi, Fadi; Abay, Kibrom A.; Breisinger, Clemens; Dorosh, Paul A.; Pauw, Karl; Randriamamonjy, Josee; Raouf, Mariam; Thurlow, James |
| Abstract: | Global food, fuel, and fertilizer prices have witnessed rapid and significant increase in recent months, driven largely by the fallout from the ongoing war in Ukraine and associated sanctions im-posed on Russia. Other factors, including governments’ responses and export bans, have also con-tributed to rising prices (Laborde and Mamun 2022). Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the in-crease occurring since February 2022. |
| Keywords: | EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:18&r= |
| By: | Diao, Xinshen; Dorosh, Paul A.; Pauw, Karl; Thurlow, James; Pradesha, Angga |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the increase occurring since February (Figure 1). Wide variation exists across products, with real maize prices increasing by only 11 percent and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, while the weighted average price of fertilizer has doubled. With these changes in global prices, many developing countries and their development partners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | PHILIPPINES, SOUTH EAST ASIA, ASIA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet, commodities, fertilizers |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:19&r= |
| By: | Franck Galtier (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement) |
| Abstract: | On international markets, prices of grains (wheat, maize) and vegetable oils (rapeseed, sunflower, soybean, palm) have been rising since mid-2020. Biofuels play a major part in this increase, and the war in Ukraine, which began in February 2022, has exacerbated it. Biofuels in fact link the price of these commodities to that of crude oil: when the crude oil price rises, the biofuels industry increases its demand for maize and vegetable oils. Temporarily limiting this industrial usage would reduce the price of these commodities. Moreover, in case of an increase in rice prices, one solution would be to authorise Japan to export the rice stock it has built up under World Trade Organization (WTO) rules. In order to prevent future crises, these two levers could be activated as soon as world prices of these agricultural commodities reach predetermined levels. |
| Keywords: | Price,price stabilisation,price policy,food product,grain,wheat,maize,rice,vegetable oil,rapeseed oil,sunflower oil,palm oil,soybean oil,crude oil,biofuel,fossil fuels,economic crisis,food security,domestic market,world market,food stock,WTO,Africa,United States,world,developed country,developing country,Russia,Ukraine,European Union countries |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:cirad-03733988&r= |
| By: | Röhl, Klaus-Heiner; Bardt, Hubertus; Engels, Barbara |
| Abstract: | Durch den russischen Angriff auf die Ukraine ist die Frage der Einsatzfähigkeit der Bundeswehr erneut in den Fokus gerückt. Die Landesverteidigung, die mit dem Ende des Kalten Krieges und der Auflösung von Warschauer Pakt und Sowjetunion 1991 nur noch eine geringe Rolle zu spielen schien, besitzt nun wieder einen hohen politischen Stellenwert. Bundeskanzler Olaf Scholz sprach in seiner Regierungserklärung vom 27. Februar 2022 von einer Zeitenwende durch diesen Krieg und kündigte ein 100 Milliarden Euro umfassendes Sondervermögen zur Stärkung der Verteidigungsfähigkeit an. Diese umfangreichen Mittel können jedoch nur nachhaltig sicherheitspolitisch wirksam werden, wenn die Möglichkeiten der Industrie zur Lieferung neuer Waffensysteme und die Möglichkeiten der Bundeswehr zur Nutzung und Instandhaltung dieser Waffen in Einklang gebracht werden. Im Jahr 2020 stellten die etwa 55.500 Beschäftigten im verteidigungsindustriellen Bereich in Deutschland Waffen, Kampfflugzeuge, Kriegsschiffe und Militärfahrzeuge für circa 11,3 Milliarden Euro her; beide Werte lagen trotz der bereits erfolgten Besetzung der Krim durch Russland niedriger als 2015. Dieses Policy Paper stellt deshalb den Stand der Pläne zur Stärkung der Bundeswehr vor und ordnet sie sicherheitspolitisch ein. Zudem wird die deutsche Verteidigungsindustrie mit ihren Sektoren Luft- und Raumfahrzeuge, Marineschiffbau, Kampffahrzeuge sowie Waffen und Munition portraitiert und anschließend auf den immer bedeutenderen Bereich der Cyberabwehr eingegangen. Das Policy Paper schließt mit einem Fazit und verteidigungspolitischen und verteidigungsindustriellen Empfehlungen. Zu den Empfehlungen zählt eine Verstetigung der erhöhten Verteidigungsausgaben bei zwei Prozent der Wirtschaftsleistung, um Planungssicherheit für Rüstungsprojekte über 2025 hinaus zu erreichen und die Fähigkeiten der deutschen Verteidigungsindustrie nachhaltig zu sichern, eine verstärkte Kooperation mit europäischen Partnern in der Verteidigungspolitik und in Rüstungsprojekten sowie eine Berücksichtigung des Verteidigungssektors in den Nachhaltigkeitskriterien der Taxonomie für den europäischen Finanzsektor. |
| JEL: | H12 L64 L88 Z0 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:42022&r= |
| By: | International Monetary Fund |
| Abstract: | Burundi’s economy has shown resilience to the COVID-19 and Ukraine war shocks. Prior to the pandemic, the economy was recovering from the political and security crisis that followed late President Nkurunziza’s decision to run for a third term in 2015, with growth close to 2 percent in 2019. Difficult macroeconomic policy challenges persisted, nevertheless. The pandemic has taken a toll on the post-conflict fragile country, but COVID-19 contagion remained fairly contained and growth was positive. The war in Ukraine is compounding the adverse effects of the pandemic, with deteriorating terms of trade and the resulting domestic inflation threatening already-challenging living standards. Sanctions from the U.S. and E.U.—legacy of the 2015 crisis—have now been lifted. The U.N. Security Council ended mandatory reporting in Burundi and the country has reengaged with the international community. The 2022 Article IV consultation seals the full reengagement with the IMF—the last one was concluded in 2014. |
| Date: | 2022–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2022/257&r= |
| By: | Franck Galtier (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement) |
| Abstract: | Sur les marchés internationaux, les prix des céréales (blé, maïs) et des huiles végétales (colza, tournesol, soja, palme) ont augmenté à partir de la mi-2020. Les biocarburants jouent un rôle majeur dans cette hausse et la guerre en Ukraine, qui a débuté en février 2022, l'a exacerbée. Les biocarburants lient en effet le prix de ces denrées à celui du pétrole : lorsque le prix du pétrole augmente, l'industrie des biocarburants accroît sa demande de maïs et d'huiles végétales. Limiter provisoirement cet usage industriel ferait baisser leurs prix. De plus, en cas de hausse du prix du riz, une solution serait d'autoriser le Japon à exporter son stock de riz constitué dans le cadre des règles de l'Organisation mondiale du commerce (OMC). Afin de prévenir les crises futures, ces deux leviers pourraient être déclenchés dès que les prix internationaux de ces denrées agricoles atteignent des niveaux prédéfinis. |
| Keywords: | Prix,Stabilisation des prix,Politique des prix,Produit alimentaire,Céréale,blé,maïs,huile végétale,huile de colza,huile de tournesol,huile de palme,huile de soja,pétrole,biocarburant,combustibles fossiles,crise économique,Sécurité alimentaire,Marché intérieur,Marché mondial,stock alimentaire,OMC,riz,Afrique,États-Unis,monde,pays développé,pays en développement,Russie,Ukraine,pays de l’Union européenne |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:cirad-03733852&r= |
| By: | Koenen, Michelle; Kunath, Gero; Obst, Thomas |
| Abstract: | Die Europäische Union (EU) sieht sich innerhalb kürzester Zeit mit zwei großen und historisch einmaligen Krisen konfrontiert. Die Corona-Krise führte zu asymmetrischen wirtschaftlichen Auswirkungen in der EU. Maßgeblich für die konjunkturelle Entwicklung zwischen dem vierten Quartal 2019 und dem ersten Quartal 2021 waren unter anderem strukturelle Faktoren wie der Industrieanteil oder die Größe des Tourismussektors einer Volkswirtschaft. Die Dauer und Stärke der Corona-Restriktionen hatten ebenfalls einen wichtigen Einfluss. Nationale Einschränkungen wie Unternehmensschließungen oder Mobilitätseinschränkungen wurden global verstärkt durch Grenzschließungen, gestörte Lieferketten etc. Diese führten zu historischen wirtschaftlichen Einbrüchen im Jahr 2020 und beeinträchtigen bis heute die Wachstumsaussichten in Europa. Durch fiskalpolitische Maßnahmen konnte der Arbeitsmarkt weitgehend stabil gehalten werden und trug 2021 mit einem erhöhten privaten Konsum aufgrund von Nachholeffekten zu einer wirtschaftlichen Erholung bei. Die expansive Geldpolitik der Europäischen Zentralbank (EZB) während der Corona-Krise hat ebenfalls zur Stabilisierung der Risiken geführt, was unter anderem die Renditeunterschiede auf Staatsanleihen im Euroraum verringerte. Das 800 Milliarden Euro schwere NextGenerationEU-Aufbaupaket wurde zudem initiiert, um die asymmetrischen Folgen innerhalb der EU abzufedern. Ein erhoffter V-Verlauf der Konjunktur trat in den EU-Mitgliedsländern jedoch nicht ein. Wichtige makroökonomische Größen liegen in einigen Ländern auch zwei Jahre nach Ausbruch der Pandemie noch unter dem Vorkrisenniveau und deuten auf Narbeneffekte hin. Die Ukraine-Krise, als zweite große Krise, setzt nun auf dieses Ungleichgewicht der Volkswirtschaften auf und verstärkt sie. Die aufgrund gestörter Wertschöpfungsketten bereits erhöhten Inflationsraten werden weiter durch exogene Energiepreisschocks getrieben. Dies führt zu einer persistenten angebotsseitigen Inflation, die in der Breite der EU-Länder angekommen ist. Durch Zinsanhebungen versuchen die Zentralbanken die Inflation zwar einzudämmen; auch die EZB beendete ihre langjährige Null-Zins-Politik. Eine sofortige Wirkung ist aber nicht zu erwarten, da Zinspolitik erst mit mehreren Quartalen Verzögerung wirkt. Zudem handelt es sich um eine importierte Inflation mit einem Wohlstandsverlust nach außen. Das Eingreifen der EZB erhöht gleichzeitig das Rezessionsrisiko. Die Stagflation ist ein veritables Risiko in Europa. |
| JEL: | E17 F45 F51 F62 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkrep:402022&r= |
| By: | International Monetary Fund |
| Abstract: | Sierra Leone continues to pursue its development path amidst continued vulnerability to shocks and still fragile institutions. Despite a decisive health and economic response to the COVID-19 pandemic, less than one in five Sierra Leoneans is vaccinated, and urgent challenges, such as food insecurity, persist. The authorities’ ambitious National Development Plan is showing first results in the education sector, but human development outcomes remain among the weakest worldwide. The COVID-19 crisis and the war in Ukraine has stoked inflation and exacerbated an exceptionally tight fiscal situation in the context of high risk of debt distress, severely limiting the authorities’ room to maneuver. |
| Date: | 2022–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2022/259&r= |
| By: | Bright A. Gyamfi (Cyprus International University, Nicosia, Turkey); Asiedu B. Ampomah (Cyprus International University, Nicosia, Turkey); Festus V. Bekun (Istanbul Gelisim University, Istanbul, Turkey); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Understanding the role of information communication and technology (ICT) in environmental issues stemming from extensive energy consumption and carbon dioxide emission in the process of economic development is worthwhile both from policy and scholarly fronts. Motivated on this premise, the study contributes to the rising studies associated with the roles economic growth, institutional quality and information and communication technology (ICT) have on CO2emissionin the framework of the 21st Conference of the Parties (COP21) on climate convention in Paris. Obtaining data from the emerging industrialized seven (E7) economies (China, India, Indonesia, Russia, Mexico, Brazil and Turkey) covering annual frequency from 1995 –2016 for our analysis achieved significant outcome. From the empirical analysis, economic globalization and renewable energy consumption both reduce CO2 emissions while ICT, institutional quality and fossil fuel contribute to the degradation of the environment. This study affirms the presence of an Environmental Kuznets Curve (EKC) phenomenon which shows an invented U-Shaped curve within the E7 economies. On the causality front, both income and its square have a feedback causal relationship with carbon emissions while economic globalization, institutional quality, ICT and clean energy all have a one-way directional causal relationship with CO2 emissions. Conclusively, the need to reduce environmental degradation activities should be pursued by the blocs such as tree planting activities to mitigate the effect of deforestation. Furthermore, the bloc should shift from the use of fossil-fuel and leverage on ICT to enhance the use of clean energy which is environmentally friendly. |
| Keywords: | ICT; environmental sustainability; institutional quality; renewable energy transition; carbon-reduction; economic globalization, panel econometrics; E7 economies |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/052&r= |
| By: | Jung, Constantin |
| Abstract: | Environmental sustainability is one of the greatest challenges of this century. It depends on both compliance with environmental protection laws and its integration into directors' decision-making beyond these laws. In this regard, the duty to promote the company's success stipulates in the Companies Act 2006 that directors, who are protected by Business Judgment Rule, shall consider their companies' environmental impacts. Since the stakeholders' interests are regarded as a means to increase shareholder value, directors may pursue their companies' environmental sustainability through a business case. The latest changes to the UK Corporate Governance Code 2018 further encourage directors to consider environmental sustainability in their business decisions. They may also link environmental sustainability to mandatory and voluntary disclosures through publishing their companies' achievements. As a result, directors have broad discretion to pursue environmental sustainability beyond environmental protection laws. However, evidence shows that directors frequently neglect this discretion, the environmental sustainability's resulting business case and that they even cause environmental damages to increase (the short-term) shareholder value. This is due to the social norm of shareholder primacy, which is now exacerbated by Brexit's and the Ukraine war's unclear economic impacts as well as the ongoing COVID-19 pandemic. In this regard, the current approach of the UK's company law in the predominant form of narrative reporting laws is insufficient because of the resulting greenwashing possibilities. This paper's main argument is thus that changes to the current legal framework for directors' decision-making are needed to achieve more environmental sustainability. Accordingly, a new principle for the UK Corporate Governance Code 2018 could lead to a greater consideration of environmental sustainability in directors' decision-making and increased shareholder value in times of rising societal awareness of climate change and a growing trend towards environmental activist shareholders. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fhfwps:25&r= |
| By: | Shumakova, Oksana; Stukach, Victor |
| Abstract: | This article examines the methodological aspects of the use of agricultural university resources aimed at solving socio-economic problems of the region, in the conditions of socio-political turbulence of world economic relations, overcoming the consequences of the Covit 19 pandemic. The work is considered as a step-by-step process. At the first stage, the relevance and relevance for the real sector of the economy of the actual research conducted by scientists of the Omsk State Agrarian University is revealed. In the socio-economic sphere, within the framework of the scientific school "Development of the infrastructure of the agro-industrial complex of the Siberian region", a continent analysis of publications based on the materials of dissertations defended by the participants of the scientific school was carried out. The works are published in the archive of the Munich Library (database RePEc.org ) for 10 years. The unit of measurement is recorded references to publications by abstract review or download. The analysis of full-text works on the defended dissertations allowed to form the directions that aroused the greatest interest among information consumers in terms of content analysis. At the second step, the directions sensitive to the region are determined, grouped into four spheres: 1) use of the potential of the educational process; integration of teachers, students, scientific equipment in scientific schools; active forms of the educational process, business games; staging of the future, methods of foresight research; 2) infrastructure of domestic food assistance to socially vulnerable segments of the population, industrial forms of providing social services; formation of development institutions in this area; 3) cost management and transaction costs; market barriers, inclusion of food producers in the system; 4) stimulating the methods of state support of landowners to restore the "abandoned" lands that have come out of agricultural circulation as a resource for the production of environmentally friendly food for social nutrition. The novelty consists in the fact that an evidence-based methodology for assessing the relevance and relevance of works published by members of the scientific school is proposed for practical application.. The specific conditions of socio-political turbulence of world economic relations, characterized by a high degree of uncertainty and overcoming the consequences of the pandemic, are new. The work is addressed to research organizations, teachers and students of agricultural educational in-stitutions, practitioners in the field of production, employees of management bodies |
| Keywords: | relevance of research, market analysis, consequences of the pandemic, scientific school, market research, content analysis. |
| JEL: | I23 I24 I25 O13 O4 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114175&r= |
| By: | Kohnert, Dirk |
| Abstract: | In July 2020 the EU parliament voted in favour to Croatia’s bid to become the newest member of the eurozone from 1 January 2023. It fulfilled all the criteria for adopting the euro, despite the backdrop of the COVID-19 pandemic, high inflation, and the impact of Russia’s invasion of Ukraine. Croatia's accession to the euro will be the first significant positive step in the European integration process since Brexit. It may depict perspectives for further enlargement of the eurozone in the Balkans. The admission will also impact EU Africa relations. Alongside its close foreign relations with South Africa, Zagreb established diplomatic relations with South Sudan, Somalia, and the Central African Republic in 2020. Yet, regarding Croatia's long-established African relations it would be decisive to take account of the lessons learned from its multifaceted African relations history. Croatian explorers like Dragutin Lerman, mostly unknown outside their home country, had been active in exploring Sub-Saharan African countries in the early 20th century. During the Cold War, political and economic relations between Yugoslavia (including Croatia) and the African nonaligned countries improved significantly in the period between 1973 and 1981. Mutual economic cooperation between nonaligned countries was encouraged to fight ‘underdevelopment’ in Africa. Thus, within the framework of industrial cooperation, two Yugoslav-Ghanaian joint ventures were formed in 1971, for example for forest exploitation and wood processing and a joint factory for the production of motorcycles and pumps in Ghana. Moreover, Yugoslavia was the only non-African country which participated in the funding of the Liberation Committee of the Organisation of African Unity (OAU), although Zagreb preferred bilateral relations with individual liberation movements. Yet, during the process of transition, both Croatia and South Africa experienced difficulties with the illicit arms trade due to high levels of corruption within the judicial system and police. Also, the citizens of both countries lack of trust in the state's capacity to impose social control opened the way for organized crime to work with impunity. Criminal groups used patron-client relationships with the citizens of South Africa and Croatia, to build and sustain a level of popular legitimacy that the state was lacking. |
| Keywords: | Croatie; Yougoslavie; Zagreb; Balkans; Balkans occidentales; Études balkaniques; Guerre froide; Mouvement des non-alignés; UE; Zone euro; Afrique subsaharienne; OUA; développement économique; secteur informel; commerce international; Ghana; Afrique du Sud; Études africaines; |
| JEL: | D31 D62 E26 F13 F22 F35 F54 N14 N17 N47 O15 O17 O52 P27 Z13 |
| Date: | 2022–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114248&r= |
| By: | Kohnert, Dirk |
| Abstract: | In July 2020, the EU Parliament voted in favour of Croatia’s application to become the newest member of the eurozone from January 1, 2023. Despite the setback caused by the COVID-19 pandemic, it met all the criteria for adopting the euro, high inflation, and the impact of Russia’s invasion of Ukraine. Croatia’s accession to the euro will be the first significant positive step in the European integration process since Brexit. It may depict perspectives for a further enlargement of the eurozone in the Balkans. The admission will also impact the EU Africa relations. In addition to the close foreign ties with South Africa, Zagreb established diplomatic relations with South Sudan, Somalia, the Central African Republic in 2020. Yet, regarding Croatia’s long-established relations with Africa it is decisive to take account of the lessons learned from its multifaceted African relations history. Croatian explorers like Dragutin Lerman, mostly unknown outside their home-country, had been active in exploring Sub-Saharan African countries in the early 20th century. During the Cold War political and economic relations between Yugoslavia (including Croatia) and the African nonaligned countries improved significantly between 1973 and 1981. Mutual economic cooperation between nonaligned countries had been encouraged to fight ‘underdevelopment’ in Africa. Thus, in 1971, within the framework of industrial cooperation, Yugoslav-Ghanaian joint ventures were established, for example, for forest exploitation and wood processing and for a joint factory for motorcycles and pumps in Ghana. In addition, Yugoslavia was the only non-African country to help fund the Organization of African Unity's (OAU) Liberation Committee, although Zagreb favored bilateral relations with individual liberation movements. However, both Croatia and South Africa faced difficulties during the transition process with the illegal arms trade due to high levels of corruption within the judicial system and police. Also the citizens of both countries lack of trust in the states capacity to impose social control opened the way for organized crime to work with impunity. Criminal groups used patron-client relationships with the citizens of South Africa and Croatia to establish and maintain a level of popular legitimacy that the state lacked. |
| Keywords: | Croatia;Yugoslavia; Zagreb; Balkans; Balkan Studies; Western Balkans; Cold war; Non-aligned movement; EU; Euro-zone; Sub-Saharan Africa; OAU; economic development; informal sector; international trade; Ghana; South Africa; African Studies; |
| JEL: | D31 D62 E26 F13 F22 F35 F54 N17 N47 O15 O17 O19 O52 O55 P27 Z13 |
| Date: | 2022–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114243&r= |