ACADEMIC PAPERS & REPORTS
November, 2009
The Cross-Border Financial Impact of Violence
By Mohamad M. Al-Ississ, Former Research Fellow, The Dubai Initiative
This paper argues that violent events have two economic effects: a direct loss from the destruction of physical and human capital, and a reallocation of financial and economic resources. It documents the positive cross-border impact that follows violent events as a result of this reallocation. Thus, it reconciles the two existing perspectives in the literature on whether violence has a small or large economic effect. Our results show that, in globally integrated markets, the substitution of financial and economic activities away from afflicted countries magnifies their losses. This study evaluates certain factors affecting the impact of violence in non-event countries. Geographic distance from the event country is not monotonic in its effect on the valuation of equities of other countries. Also, the safer a non-event country is perceived to be relative to the event country, the greater the positive impact on its financial market. Finally, event countries with deeper financial markets are less susceptible to capital reallocation following an event.
November, 2009
Oil, Labor Markets, and Economic Diversification in the GCC: An Empirical Assessment
By Tarek Coury, Associate, The Dubai Initiative and Chetan Dave
In a bid to reduce their dependency on oil and natural gas revenues, GCC governments have recently invested considerable resources to diversify their economies.This paper provides an empirical assessment of economic diversification in the GCC for the period 1980-2005. In particular we assess whether oil and natural gas revenues, government policies and foreign flows of labor have contributed to greater economic diversification, proxied by real growth in non-hydrocarbon GDP per worker. To our knowledge, this is the first paper that analyzes economic diversification in the Gulf using panel data techniques that explicitly treat the GCC as an economic block.
We find that lagged hydrocarbon revenue is the only variable consistently associated with subsequent economic diversification; this is in contrast to government expenditures whose impact on diversification is negative, large, and significant. We also find that population growth has little impact on either growth of overall GDP per worker or non-hydrocarbon GDP per worker; we present an economic growth model that takes into account features of the labor market structure in the Gulf to explain this finding. Finally, we present some empirical evidence consistent with claims of greater macroeconomic and financial integration within the GCC.
November, 2009
What Accounts for the Success of Islamist Parties in the Arab World
By Michael Robbins, Research Fellow, The Dubai Initiative
Islamist organizations are generally considered to be the strongest and most credible opposition to incumbent regimes throughout the Arab world. Fear of Islamic takeovers has led regimes and other outside powers to justify not holding free elections, citing examples that include the Algerian election of 1991, the Iranian Revolution, the AKP victory in Turkey and the perceived popularity of Islamist opposition groups throughout much of the Arab world (Brumberg 2002). Yet, other analysts have questioned the actual strength of Islamist movements within the Arab world, noting that although Islamists may be the main challenger, few have actually been successful in taking power (Roy 1994).
November, 2009
The Blueprint: A History of Dubai’s Spatial Development Through Oil Discovery
By Stephen J. Ramos, Research Fellow, The Dubai Initiative
While oil discovery brought revenue to Dubai and would change the city's physiognomy, moving it beyond the initial three settlements along the creek, it is clear that Dubai's status as a dynamic entrepôt for international trade and transshipment, its foundational infrastructure projects, and its "free port" policies to attract merchant communities from throughout the Gulf and the Indian Ocean, along with licit and illicit trade for re-export to Persia/Iran and India, were solidly established before "black gold" was struck in Fateh field.
October 30, 2009
Iran: Reform of Energy Subsidies
Monthly Review
By Djavad Salehi-Isfahani, Research Fellow, The Dubai Initiative
At long last and after decades of talking about doing something about the subsidies, there is a bill before Iran's majlis to target (but not remove) subsidies. I could not locate the bill itself but my impression is that it only addresses energy subsidies and not other subsidies such as food and medicine. So far only 5 of the bill's 14 articles have been passed, but the government already has the mandate to raise prices on energy products over the next five years
Jeannie Sowers
October 21, 2009
Damietta Mobilizes for Its Environment
Middle East Report Online
By Jeannie Sowers, Research Fellow, The Dubai Initiative and Sharif Elmusa
In 2008, Egypt's Mediterranean port city of Damietta saw escalating protest against EAgrium, a Canadian consortium building a large fertilizer complex in Ra's al-Barr. Ra's al-Barr sits at the end of an estuary, where the Damietta branch of the Nile River joins the Mediterranean. It is a prime destination for vacationing Egyptians in the summertime and the location of the year-round residences of the Damiettan elite. Fishermen ply the waters offshore. When plans for the fertilizer complex were announced, a coalition of locals feared that all three sources of income -- tourism, real estate and fishing -- would be jeopardized by emissions into the air and water. As summer temperatures climbed and the protests mounted, the government found itself caught between its contractual obligations to international investors and a well-organized local movement opposed to the project on both environmental and developmental grounds.
AP Photo
October 2009
"Strategic Advantage: Why America Should Care About Cybersecurity"
By Melissa Hathaway, Senior Advisor, Project Minerva
The internet is an interconnected series of networks--where it is difficult to determine where private security threats end and public ones begin. These networks deliver power and water to our households and businesses, enable us to access our bank accounts from almost any city in the world, and transform the way our doctors provide healthcare. For all of these reasons, we need a safe Internet with a strong network infrastructure.
October 2009
"The São Paulo Proposal for an Agreement on Future International Climate Policy"
By Erik Haites, Farhana Yamin and Niklas Höhne
The São Paulo Proposal is designed to create a stable, long-term, universal regime based on the principles of equity and common but differentiated responsibilities and respective capabilities. Such a regime is required to encourage the technological change and structural shifts necessary to stabilize greenhouse gas concentrations. Richer countries adopt binding targets that become more stringent over time. Financial and institutional provisions to enhance developing country implementation of mitigation and adaptation actions are strengthened.
Fall 2009
"Correspondence: Another Skirmish in the Battle over Democracies and War"
International Security, issue 2, volume 34
By Dan Reiter, Allan Stam and Alexander B. Downes, Former Research Fellow, International Security Program, 2007-2008
Dan Reiter and Allan Stam respond to Alexander Downes's Spring 2009 article "How Smart and Tough Are Democracies? Reassessing Theories of Democratic Victory in War."
Fall 2009
"Long Time Going: Religion and the Duration of Crusading"
International Security, issue 2, volume 34
By Michael Horowitz, Former Research Fellow, International Security Program, 2005-2007
Scholars have argued for centuries about the relative importance of religion in determining behavior. Do actors with genuine religious beliefs, both leaders and foot soldiers, actually fight wars and commit atrocities in the name of religion and religious institutions? Or is religion a proxy for materialist variables such as land grabs or wealth creation?
