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Between Economic and Political Crises:Thailand’s Contested Free Trade Agreements
Notwithstanding the unavoidable adverse impact on its export sector, Thailand weathered the Global Financial Crisis in the late 2000s better than many of its emerging-market peers, owing to structural adjustments and recovery dynamics in the aftermath of its crippling financial crisis a decade earlier. Thailand’s political crisis also dampened what otherwise would have been a more exuberant risk-taking financial sector, thereby keeping exposure to the GFC relatively minimal. Instead, the Thai growth story in the 2000s was dominated not by financial crisis but by political polarization and turmoil arising from former Prime Minister Thaksin Shinawatra’s wide range of policy innovations and adjustments that provide the basis for this paper. His government’s pace of policy formulation and implementation with the aims of structural change and economic upgrading in the Thai economy amidst globalization challenges was bold and unprecedented. This paper sets out to examine the underpinnings, dynamics and implications of Thaksin’s policy platform. Why were such adjustment and upgrading policies considered, formulated and implemented during the Thaksin years but not as much before or after? What were the roots and dynamics of this upgrading? A principal component among the host of such policy innovations and adjustments was Thaksin’s preference for bilateral free-trade agreements. Thaksin’s FTA strategy thus serves as a policy case study. It was instructive of Thailand’s global trade constraints and of Thaksin’s policy assertiveness. Ironically, it ended up providing a rationale for the coalition that deposed him. The overarching aim here is to show how the 1997-98 crisis augured well for Thaksin’s rise, his policy innovations with particular reference to FTAs, and how the subsequent global economic crisis in 2008-09 was incidental to Thailand’s political crisis surrounding Thaksin’s fall.research repor
ESTABLISHING GOOD GOVERNANCE IN FRAGILE STATES THROUGH RECONSTRUCTION PROJECTS LESSONS FROM IRAQ
Countries in transition often go through periods of upheaval and weak governance and Iraq is a prime example. Usually donor agencies hesitate to increase their support as they face two key problems in post-conflict or post-revolution situations: (1) high security risk for transparent implementation; and (2) poor government effectiveness, marred by corruption, ethnic tensions and economic stagnation. But this is precisely the time when donor engagement is needed most. By using the experience of JICA projects in Iraq, we argue that donors should not withdraw their support in difficult post-conflict situations. The paper proposes three mechanisms – information; social recognition; and mediation mechanisms – to solve such difficulties in a post-conflict society. The empirical analysis shows that more intensive communication between donor and government officials especially leads to a positive impact even in war-torn Iraq.journal articl
Conflict Analysis in Virtual States (CAVS): A New Experimental Method Based on the Extensive Use of Multi-Agent Simulation (MAS) and Geographical Information System (GIS)
Conflict Analysis in Virtual States (CAVS) offers a fresh approach to analyzing civil conflicts, which also has significant potential for policy application. This approach, made possible by the use of two computer-based methods comprising multi-agent simulation (MAS) and a geographical information system (GIS), basically consists of observing and analyzing simulated dynamics of civil conflicts. Characteristically, these simulations are run in ‘realistic virtual states,’ which are constructed virtually but reflect some of the defining characteristics of corresponding sovereign states that exist in the real world. In short, controlled pseudo-experiments concerning civil conflicts are conducted in a virtual environment that sufficiently approximates the empirical reality. This working paper introduces CAVS and reports on its latest developments. First, the paper gives an overview of CAVS and its two major components: a MAS model of virtual states and GIS datasets on actual states (e.g., demographic distribution, distribution of ethnic groups, etc.). This overview is followed by some illustrative examples of simulation runs conducted in several virtual states that approximate existing states in Northeast Africa (Eritrea, Ethiopia, Kenya, Somalia, and the Sudan). The paper then details the substantial improvement and extension that the CAVS platform is now undergoing. This ongoing development includes: restructuring and unification of the GIS datasets; introduction of a much-strengthened and more flexible interface between the GIS data and the MAS model; and a substantial extension of the MAS model itself, particularly in its coverage of international and transnational factors. Lastly, the paper describes several research projects currently underway, such as investigations into the effects on civil conflicts of a variety of external influences and interventions. Firmly based on the extended CAVS platform, these projects have clear policy implications.research repor
How Access to Irrigation Influences Poverty and Livelihoods:A Case Study from Sri Lanka
This study combines a livelihoods approach with a regression approach to quantify the effectiveness of irrigation infrastructure investment on improving people’s livelihood strategies. Using a unique dataset based on households in southern Sri Lanka, and a natural experimental setting, we estimate from a two stage income regression model to show that irrigation access has a positive effect on income through livelihood choices. We also show through qualitative approaches that factors not linked to irrigation infrastructure may contribute to changes in livelihood portfolios. In addition, we highlight factors that result in certain households being unable to move out of poverty despite access to the improved irrigation infrastructure.research repor
INDUSTRIAL STRATEGY AND ECONOMIC TRANSFORMATION: Lessons of five outstanding cases
Industrial development, especially industrial structure up-grading and diversification, is considered essential for economic transformation and sustained growth. The objective of this paper is to obtain insights into how crucial factors for industrial development, such as accumulation of knowledge and capabilities, technological innovation, infrastructure, institutions, interact in practice, focusing on several outstanding cases of industrial development, which produced a remarkable economic transformation. In these cases, different factors including investment in infrastructure, technological breakthrough, as well as external factors, triggered the economic transformation, but it could not have happened without continuous accumulation of capabilities and knowledge through learning. In all cases, effective institutions accomplished the role of facilitator or catalyzer of transformation.research repor
THE RETURN OF INDUSTRIAL POLICY: (What) Can Africa learn from Latin America?
High growth in Africa and the changes in the global economic landscape have contributed to redefine development policy and open new spaces for debating the role of industrial policies in promoting structural transformation and development. Despite the high growth of Africa during the last decade, the continent not solved the problems of youth employment and low productivity of the domestic industry. Nor it has seen the flourishing of domestic entrepreneurship. After decades in which industrial policies were banned from the development agenda, their return is welcomed. However "What to do?" and "How to do it?" remain unanswered questions. Latin America is often regarded as a “failure” in contrast with the “success” of South East Asia. Nonetheless, the region has accumulated learning about designing and implementing industrial policies, especially taking into account the resurgence of interest in the last decade. The Latin American experience in industrial policies offers lessons that could help the policy making process in Africa, if adapted to the specificities and varieties of its different countries.departmental bulletin pape
Do Community-Managed Schools Facilitate Social Capital Accumulation? Evidence from the COGES Project in Burkina Faso
In this paper, we investigate the role of a School Management Committee (COGES) in facili- tating social capital among community members and teachers. We employ unique data from Burkina Faso, where the COGES project was recently introduced. To determine the individual level of social capital of each community member and teacher, we conduct public goods games, one of the standard artefactual field experiments, with monetary rewards. Using in- strumental variable and propensity score matching methods, we obtain several findings. First, we find that the COGES project increases the level of social capital significantly. This finding is robust across different econometric specifications and methodologies. According to our point estimates, the amount of voluntary contribution to public goods increases by 16% to 27%. Second, the social capital facilitation effect of COGES varies based on the characteristics of the participant: while those who are more educated tended to have a lower level of social capital, Muslims have a higher level of social capital with COGES. Third, our qualitative re- sults are maintained if we use the subjective assessment data of social capital based on the General Social Survey (GSS) questions.research repor