The growing success of efforts to contain the spread of Covid-19, the disease caused by the virus, may present yet another hurdle – How to end lockdown without causing a second wave? There is no modern analog for the shutdown of economic activity. Ending the lockdown needs unparalleled capabilities in testing, tracing and most importantly it needs researchers to deliver a new vaccine!
This paper makes the case for low and middle-income countries (LMIC) to be part of the clinical evaluation of the efficacy and safety of the COVID-19 future vaccine, the ramping up of regional manufacturing capabilities for local immunization and underscores the critical importance of reaching an advanced purchase agreement with manufacturers and suppliers as well as building up multilateral financial partnerships with key institutions before even a vaccine is made available in either North America, Asia and/or Europe.
What is the political economy of monitoring pollution in China? Should we be using relative or absolute measures of inequality? What are the economic implications of stigma? Have skills and human capital a long term effect on local economic conditions? Is there intergenerational mobility in Africa? Is the millennium missing out in rising prosperity? These were some of the questions raised by CGR and guest researchers during the annual Workshop on Political Economy and Economic Development and during the Annual Globalisation Seminar hosted by the Centre for Globalisation Research on the 9th of November, 2018.
On Friday, 9th of November the Centre for Globalisation Research (CGR) of the School of Business and Management, Queen Mary University of London is hosting the annual Globalisation Seminar and workshop on Political Economy and Economic Development organised by Dr. Caterina Gennaioli (CGR Director).
This Monday 1st of October, Dr. Ugo Troiano will be presenting his research. Dr Troiano works at the University of Michigan as an Assistant Professor of Economics. He is also a Faculty Research Fellow NBER in Political Economy and Public Economics, Research Associate at the Office of Tax Policy Research and Faculty Associate in the Institute for Social Research CPS.
This paper shows that social capital increases economic growth by raising government investment in human capital. We present a model of stochastic endogenous growth with imperfect political agency. Only some people correctly anticipate the future returns to current spending on public education. Greater social discussion of information makes this knowledge more widespread among voters. As a result, we find it alleviates myopic political incentives to underinvest in human capital, and it helps the selection of politicians that ensure high productivity in public education. Through this mechanism, we show that social capital raises the equilibrium growth rate of output and reduces its volatility. We provide evidence consistent with the predictions of our model. Individuals with higher social capital are more informed about their government. Countries with higher social capital spend a higher share of output on public education.
The latest American sanctions salvo against Russia announced on 6 April amounts to a major escalation in the economic war which – with real, and potentially nuclear, war being unthinkable – has been the preferred response of US and EU to the geopolitical challenge from Russia that began with the annexation of Crimea in 2014. There is more to these sanctions than geopolitics, however. They also teach us an interesting lesson about globalisation.
To understand that lesson, we must first establish how these new sanctions differ from the previous ones imposed at various times since 2014. In economic terms, the only kind of sanctions that count are those targeting (Russian) companies rather than individuals, whether big business owners (‘oligarchs’) or officials. Until this month, the scope of sanctions against various Russian companies was tightly defined and limited. Typically, sanctions prohibited lending to those companies (except for the shortest maturities) and, in the case of the oil companies on the list, the transfer of certain technologies that would help the Russian oil industry accelerate development in new areas such as deep-water and tight oil drilling. In the case of the companies included on the latest US sanctions list – owned by two Russian tycoons, Oleg Deripaska and Viktor Vekselberg – the measures are much more comprehensive. Any type of transaction with those companies is prohibited.