Multilateral Matters is the quarterly publication of the Centre for Multilateralism Studies (CMS), analyzing the most recent developments regarding multilateralism by our team. It covers articles on relevant economic and political issues as well as programmed and latest publications from the research center. The objective of the newsletter is to promote the research being done by our centre, raising awareness of the many events that we hold on a regular basis.
The Government of Pakistan has approved several export promotional schemes at the federal and provincial level. Besides, FBR has tax-related export-oriented schemes which incentivize exports. Traditionally, these schemes were limited to five zero-rated sectors, however realization has grown that a level playing field should be created where similar schemes should be available to potential and new export sectors. While this thinking takes ground, the private sector in erstwhile zero-rated sectors also complains about the difficulties in accessing the export-oriented schemes allowed by FBR most notably, manufacturing under bond, Duty and Tax Remission of Exports Scheme, Duty Drawback, and Export Oriented Units and Small and Medium Enterprises Rules. SDPI with support from PRIEA organized a public-private dialogue with the aim to facilitate three segments of the business community namely a) current exporters, b) past exporters (who are still running their business but finding it difficult to export), and c) potential exporters. The above-mentioned meeting resulted in discussion around specific incentives, which are available and can be streamlined further by the authorities concerned. The reform of these could ultimately result in Pakistan taking maximum benefit from available free trade agreements, GSP arrangements by EU and US, and other market access facilities.
In 1993, the Asia-Pacific Economic Cooperation (APEC) published a report containing recommendations that recognized the economic interdependence and economic diversity of APEC economies and welcomed the challenge to achieve free trade in the Asia-Pacific. This came to be known as the "Bogor Goals." Nearing its conclusion in 2020, APEC sought a similar report that would guide APEC, which prompted the creation of the APEC Vision Group tasked to formulate a Post-2020 Vision for APEC. This study helped in the visioning process by providing an assessment of the perception of Philippine stakeholders. The results of the online perception survey showed that APEC's achievement of its economic goals is rated more highly compared to its environmental and social goals. Stakeholders are also more optimistic about APEC providing better trade and investment in the region than it is to achieving environmental and social scenarios. Further, stakeholders generally perceived that services needed increased priority than products post-2020. Interestingly, APEC's influence on shaping policies are weaker in government than the rest despite government being the prime participant in APEC. Also, Philippine stakeholders generally find that the APEC Business Travel Card is less beneficial. These results supported four recommendations. First, the limited awareness on APEC must be addressed. Second, Philippine stakeholders can maximize participation in APEC by adopting policies and best practices. Third, participation by Philippine stakeholders in seeking APEC project funding could be strengthened. Fourth, the requirements on the issuance of an ABTC for Philippine citizens could undergo a review.
Does oil hinder democracy? The prevailing wisdom holds that, since 1980, oil has hindered democracy by enabling oil wealth to flow to state-owned oil companies, breaking the fiscal contract with society, and endowing oil-rich regimes with means to invest in repression and accommodation. However, these arguments do not account for system-level factors that might affect the oil-democracy relationship. I argue that a structural break in the oil-democracy relationship occurred at the end of the Cold War when the United States and the Soviet Union reduced support for both oil-poor and oil-rich authoritarian regimes in the developing world. The rollback of support facilitated post–Cold War democratization of the resource-poor regimes, while oil-rich regimes were better positioned to stave off pressures to democratize. Based on a re-analysis of two prominent studies, I find the oil curse to be a post–Cold War phenomenon, with negative consequences for democracy of a magnitude roughly 80 percent larger than previously estimated. I further explore these dynamics via comparative case studies of Azerbaijan and Georgia. The evidence shows that the oil curse is a function of geopolitical dynamics, not just international market conditions.
Regionalism or sub-regionalism in the Mekong region has gained new momentum after China launched the Lancang-Mekong Cooperation (LMC) in 2015 as part of China's diplomatic and political advances in this region. In January 2018, Cambodia, as the rotating co-chair, successfully hosted the 2nd LMC Summit by injecting new ambitions and future action plans into the equation. Notably, three years after its inception, the LMC has become a prominent sub-regional institution in the Mekong region, and can be expected to influence and shape the region's geopolitical, economic, social and ecological landscape. The Mekong countries have expressed support for the China-led LMC in varying degrees. Myanmar, Thailand and Vietnam are more cautious of China's strategic intentions compared to Cambodia and Laos which are relatively comfortable and confident in accepting China's geo-economic presence. Cambodia is most enthusiastic of China-led multilateral mechanisms, including the LMC, due to its own economic and political considerations. This Perspective discusses Cambodian perspectives on the LMC and discusses the challenges facing LMC and its prospects.
Indonesia has enjoyed a long spell of sustained and relatively rapid economic expansion, largely on the back of strong commodity prices. No commodity boom lasts forever, however, and threats to the continuation of this growth are mounting. Indonesia now faces the challenge of locking in gains and setting a course to sustain future development in less favourable times. Post-2000 growth differs from earlier experiences in that exports of agricultural products, especially palm oil, now play a leading role. In contrast to the country's earlier oil and gas export boom, the gains from agricultural export growth accrue mainly to private actors that include corporations, smallholders, and the agricultural labour force, with a much smaller share passing through to government budgets. Government can no longer simply mandate the use of funds for development purposes; many other actors and institutions are involved. It is reasonable to assume that the benefits from such a decentralised export boom would be widely diffused, with relatively large effects on rural and farm households and lower-skilled workers. However, this boom has been accompanied by a sharp rise in inequality and virtually no real wage growth. Moreover, while spending rose robustly during the boom, it is not clear whether poor, farm-based households have chosen (or been able) to use the gains to smooth consumption or to invest for future generations. The capacity to lock in gains at micro and macro levels is subject to significant policy influence. The maxim that 'while the sun is shining is the best time to repair the roof' applies: currently healthy global economic conditions present an opportune moment for Indonesian policymakers to reflect and to look ahead, with an eye towards achieving optimal development policy settings.
A dynamic and healthy private sector is widely regarded as the engine of long-term economic development. Countries compete to attract investment and those that succeed in creating business environments that support competitive entrepreneurs have reaped significant economic growth. Sound national policies are not sufficient to achieve balanced and equitable economic progress. Efforts to promote competition at the local level must complement national efforts, especially for micro, small, and medium enterprises (MSMEs), the major source of employment for most countries in Asia. MSMEs are often constrained by a wide spectrum of institutional obstacles. To address these constraints, The Asia Foundation has developed specialized tools and approaches to increase the engagement of citizens, businesses, civil society and other stakeholders in effective economic governance, including public-private dialogues (PPDs), regulatory impact assessments (RIAs), political economy approaches to economic reform, and the Foundation's signature Economic Governance Index (EGI). These efforts are aimed at expanding public participation in governance and decision-making and broadening the benefits of economic and social development.
