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Open Access
Article
Publication date: 18 March 2024

Sean Gossel and Misheck Mutize

This study investigates (1) whether democratization drives sovereign credit ratings (SCR) changes (the “democratic advantage”) or whether SCR changes affect democratization, (2…

Abstract

Purpose

This study investigates (1) whether democratization drives sovereign credit ratings (SCR) changes (the “democratic advantage”) or whether SCR changes affect democratization, (2) whether the degree of democratization in sub-Saharan African (SSA) countries affects the associations and (3) whether the associations are significantly affected by resource dependence.

Design/methodology/approach

This study investigates the effects of SCR changes on democracy in 22 SSA countries over the period of 2000–2020 VEC Granger causality/block exogeneity Wald tests, and impulse responses and variance decomposition analyses with Cholesky ordering and Monte Carlo standard errors in a panel VECM framework.

Findings

The full sample impulse responses find that a SCR shock has a long-run detrimental effect on the democracy and political rights but only a short-run positive impact on civil liberties. Among the sub-samples, it is found that the extent of natural resource dependence does not affect the magnitude of SCR shocks on democratization mentioned above but it is found that a SCR shock affects long-run democracy in SSA countries that are relatively more democratic but is more likely to drive democratic deepening in less democratic SSA countries. The full sample variance decompositions further finds that the variance of SCR to a political rights shock outweighs the effects of all the macroeconomic factors, whereas in more diversified SSA countries, the variances of SCR are much greater for democracy and political rights shocks, which suggests that democratization and political rights in diversified SSA economies are severely affected by SCR changes. In the case of the high and low democracy sub-samples, it is found that the variance of SCR in the relatively higher democracy sub-sample is greater than in the low democracy sub-sample.

Social implications

These results have three implications for democratization in SSA. First, the effect of a SCR change is not a democratically agnostic and impacts political rights to a greater extent than civil liberties. Second, SCR changes have the potential to spark a negative cycle in SSA countries whereby a downgrade leads to a deterioration in socio-political stability coupled with increased financial economic constraints that in turn drive further downgrades and macroeconomic hardship. Finally, SCR changes are potentially detrimental for democracy in more democratic SSA countries but democratically supportive in less democratic SSA countries. Thus, SSA countries that are relatively politically sophisticated are more exposed to the effects of SCR changes, whereas less politically sophisticated SSA countries can proactively shape their SCRs by undertaking political reforms.

Originality/value

This study is the first to examine the associations between SCR and democracy in SSA. This is critical literature for the Africa’s scholarly work given that the debate on unfair rating actions and claims of subjective rating methods is ongoing.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 10 February 2022

Sean Gossel

This paper investigates whether democracy plays a mediating role in the relationship between foreign direct investment (FDI) and inequality in Sub-Saharan Africa (SSA).

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Abstract

Purpose

This paper investigates whether democracy plays a mediating role in the relationship between foreign direct investment (FDI) and inequality in Sub-Saharan Africa (SSA).

Design/methodology/approach

The empirical analysis is conducted using fixed effects and system GMM (Generalised Method of Moments) on a panel of 38 Sub-Saharan African countries covering the period of 1990–2018.

Findings

The results find that FDI has no direct effect on inequality whereas democracy reduces inequality directly in both the short run and the long run. The sensitivity analyses find that democracy improves equality regardless of the magnitude of FDI, resource endowment or democratic deepening whereas FDI only reduces inequality once a moderate level of democracy has been achieved.

Social implications

The results discussed above thus have four policy implications. First, these results show that although democracy has inequality reducing benefits, SSA is unlikely to significantly reduce inequality unless the region purposefully diversifies its trade and FDI away from natural resources. Second, the region should continue to expand credit access to reduce inequality and attract FDI. Third, policymakers should undertake reforms that will reduce youth inequality. Lastly, the region should focus on long-run democratic reforms rather than on short-run democratization to improve governance and investor confidence.

Originality/value

Although there are existing studies that examine the association between FDI and inequality, FDI and democracy and democracy and inequality, this is the first study to explicitly examine the effect of democracy on the association between FDI and inequality in SSA, and the first study to separately consider the possible varied effects of contemporaneous democratization versus the long-run accumulation of democratic capital. In addition, rather than measure inequality by income alone, this study uses the more appropriate Human Development Index to account for SSA's sociological, education and income disparities.

Details

International Journal of Emerging Markets, vol. 19 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 24 August 2019

Ola Ashraf Kubbara

This paper aims at a qualitative investigation and analysis of the complicated situation of the four German Political Foundations (GPFs) – Friedrich Ebert Foundation, Konrad…

1504

Abstract

Purpose

This paper aims at a qualitative investigation and analysis of the complicated situation of the four German Political Foundations (GPFs) – Friedrich Ebert Foundation, Konrad Adenauer Foundation, Friedrich Naumann Foundation and Hanns Seidel Foundation – as actors of democracy assistance in Egypt post 25 January 2011 revolution. It explores the relation between the restrictive political circumstances and the weakness and potential failure of the GPFs while considering their internal structural and operative misconducts as intervening variables.

Design/methodology/approach

The researcher uses the qualitative research method and its interpretive practices of data collection. The backbone of this study are the field visits and extensive interviews with the resident representatives of the GPFs in Egypt, and the representatives of the international departments of their headquarters in Germany. These interviews were complemented by further interviews with members of related organizations in Germany, as well as Egyptian professors, diplomats and experts on Egypt and the broader Middle East. The interviewing method is semi-structured in nature and audio-recorded. In Germany, interviews and information were gathered throughout a four-month field-research stay in Germany.

Findings

The paper concludes that the restrictive regime and political limitations were determining variables undermining the success of the GPFs in the area of democracy assistance in Egypt post 2011 revolution, while the GPFs’ own operative malfunctions and lack of adaptation to the political reality post 2011 were contributing factors in the process.

Research limitations/implications

Owing to security concerns and trust issues, many interviewees were reluctant to give information openly and freely; also requesting complete anonymity in the study. Some information and documents were denied to the researcher out of security concerns.

Originality/value

The added value of this paper lies in the qualitative research, investigations and personalized views on the functions and situation of the GPFs as international actors of democracy assistance in Egypt post 25 January 2011 revolution, considering the restrictive political landscape in which they exist. The study can assist scholars and researchers who explore the processes of democratization during transitional periods and the harsh grip of restrictive regime.

Details

Review of Economics and Political Science, vol. 8 no. 6
Type: Research Article
ISSN: 2356-9980

Keywords

Abstract

Details

Video Games Crime and Next-Gen Deviance
Type: Book
ISBN: 978-1-83867-450-2

Open Access
Article
Publication date: 10 October 2022

Mohamed Ismail Sabry

This paper investigates the factors responsible for the emergence of different arrangements of state–society relations. Being concerned with the relations related to the…

1769

Abstract

Purpose

This paper investigates the factors responsible for the emergence of different arrangements of state–society relations. Being concerned with the relations related to the industrial sector, this study focuses more on state–business–labor relations (SBLRs), especially on power dynamics between the main actors in these relations, namely, the state, tycoons, entrepreneurs and labor.

Design/methodology/approach

Based on power dynamics, four SBLR modes are identified and differentiated according to state power vis-à-vis non-state actors and tycoon power vis-à-vis the other non-state actors. The balanced mode is characterized by balanced power relations among the four considered actors. In the capture mode, tycoons are more powerful than other actors, including the state, although other nonsocial actors have organizational rights. The crony mode has powerful state, subservient tycoons who enjoy high levels of favoritism and low organizational power for the other social actors. Finally, the state-dominance mode has powerful state, low levels of favoritism to tycoons and low organizational power for all social actors. The paper then explores the factors responsible for the emergence of each of these modes by investigating the factors’ effects on state power and favoritism to tycoons. The investigated factors include historical political–economic, geographical, legal and cultural factors. The hypothesized effects of these factors are then tested using a random-effects probit regression model, investigating how the different factors affect the probability of the existence of the studied SBLR modes.

Findings

The results support much of the hypothesized relations and place more emphasis on some of the investigated factors. Earlier development is clearly responsible for the emergence of either the balanced or the state-capture SBLR mode. Geographical conditions favorable for development, such as latitude and metal richness, also lead to the emergence of either mode. The communist heritage, and more accurately the post-communist economic and incomplete political liberalism of the transition stage, contributed to the emergence of the state-capture SBLR mode. The British legal system, with the power it provides to non-state actors through the independence of judges and other measures, contributes to the emergence of the balanced SBLR mode. Cultural factors are largely responsible for the emergence of the crony SBLR mode, especially hierarchical and collectivist cultures, as well as ethnic fractionalization. On the other hand, the culture of Confucians has the strongest influence on the emergence of state dominance, while other cultures play a marginal role in its rise, and ethnic fractionalization marginally defuses the ability of the state to dominate without resorting to favoritism. Finally, access to rich natural resources, by enriching the state independently from social actors’ financial resources (e.g. taxation), marginally increases the probability of the emergence of the state-dominance mode.

Research limitations/implications

There is room for path dependency to explain the emergence of different SBLR modes in many countries. Unfortunately, the introduced regression model and any quantitative empirical work would not be able to effectively investigate such a process. Instead, an approach depending on case studies and a deeper investigation of country-specific historical political development is needed to complement the research done here. Conducting such an additional quest would help in reaching a more comprehensive understanding of why different countries have different SBLR modes. This should ultimately help in answering an equally important question: How to reverse engineer the emergence of favorable SBLR modes?

Practical implications

Although this paper did not investigate the economic merits or mischiefs of each of the studied modes, it is plausible to think of the balanced SBLR as the best mode. This is supported not only by the fact that most of the countries of this mode are developed countries but also by the attractiveness of the power dynamics governing this mode—a more balanced power among different SBLR actors. While some factors are almost impossible to replicate, for example, geographical factors, reform could target the factors that could be changed or mitigated. This is true for legal reform, especially for fostering the independence of judges. Culture is often regarded as a sticky institution. However, this is not always true, even though the change happens in the long run. A sort of dynamism should always be considered when referring to culture through time and space. Institutional reform could be instrumental in the long run in this regard. Conducting such reform with the help of such “exogenous” institutions should always consider the match between these institutions and “endogenous” institutions, such as culture. That is to say, the connection between democratization, fostering accountability and curbing favoritism and cultural values leaning toward these principles should be firmly established. Finally, a point of optimism is that—based on the results of this paper—reaching a high state of development could increase the chances of realizing a more balanced SBLR mode in the long run.

Originality/value

This paper represents a novel contribution to a topic that has hardly been addressed in the literature. The methodology that is used identifies different state–society relation modes and focuses on power relations in SBLRs is another important contribution to the present literature in many fields, such as institutional economics, socioeconomics and political economy.

Details

Fulbright Review of Economics and Policy, vol. 2 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 29 April 2020

Ilkka Ruostetsaari

The purpose of this paper is to test the effects of citizens’ support for two rival and opposing conceptions of political involvement, political consumerism and stealth democracy…

2079

Abstract

Purpose

The purpose of this paper is to test the effects of citizens’ support for two rival and opposing conceptions of political involvement, political consumerism and stealth democracy, on their attitudes about demand response (flexible consumption) and prosumerism (self-production) in the context of making of Finnish energy policy. Stealth democracy represents an established view on the role of citizens in energy policy making: the energy sector has traditionally been presented as a technocratic domain reserved for experts and businessmen. By contrast, political consumerism can be seen as an expression of “energy democracy”.

Design/methodology/approach

The data is based on a postal survey and an internet survey that were conducted in 2016 among a random sample representing Finns who were between 18 and 75 years. The dependence of the support for demand response and prosumerism on the endorsement of political consumerism and stealth democracy will be tested statistically (Pearson chi-square).

Findings

The endorsement of demand response mainly depended statistically on citizens’ attitudes towards political consumerism and stealth democracy. However, comparing electricity prices and changing electricity suppliers did not depend on adherence to political consumerism and stealth democracy. Nevertheless, in these cases, support was higher among the supporters of political consumerism than among supporters of stealth democracy. By contrast, the endorsement of prosumerism, for instance, in terms of factors that influence citizens’ decisions to invest in electricity generation in their households, depended statistically on citizens’ attitudes on political consumerism and stealth democracy.

Research limitations/implications

It might be that the variables used in this study to measure stealth democracy are not specific enough. More generally, Finns’ willingness to support for stealth democracy may be based on or at least encouraged by the misunderstandings of democratic politics: more information is needed on the level of knowledge that citizens have about normative principles of democratic decision-making processes.

Practical implications

The implication of this study for energy policy making is that there are (at least in Finland) good preconditions for developing a decentralized energy system: citizens are ready to adopt a more active role as energy citizens in terms of demand response and prosumerism – irrespective of their attitudes on macro-level attitudes on governmental institutions. Democratization of the energy system could strengthen the legitimacy of energy policy making.

Social implications

Citizens’ attitudes indicate that their potential for involvement needs to be strengthened in the spirit of energy democracy: the idea of energy democracy needs to be seen in terms of the demand for increased accountability and democratization of the energy sector that was previously not seen as requiring public involvement and was most often depoliticized and dominated by technocrats. However, strengthening energy democracy through demand response and prosumerism is not without its problems: utilization of these devices requires a relatively large amount of resources which depend on the individuals’ socio-economic position. Thus, energy democracy cannot replace but complement electoral participation as a form of energy policy involvement.

Originality/value

The contribution of this study is to fill a part of the research gap linking to ongoing energy transitions. As a socio-technical transition can take place only if citizens support and participate in it, we need to better understand citizens’ attitudes on energy consumption and production and energy policy involvement. Citizens’ attitudes on energy production and consumption are becoming more and more critical for managing the energy sector as a result of that the share of wind power and solar power is increasing in the energy system. In a decentralized energy system, citizens have to be prepared to change their modes of operation. To the best of the authors’ knowledge, the originality of this study is to test the impact of citizens’ political attitudes on the endorsement of demand response and prosumerism.

Details

International Journal of Energy Sector Management, vol. 14 no. 6
Type: Research Article
ISSN: 1750-6220

Keywords

Open Access
Article
Publication date: 19 September 2023

Mohamad Zreik

This paper aims to examine the USA's policy toward Myanmar or Burma, analyzing the bilateral relationship between the two countries from the pre-colonial period to the present…

Abstract

Purpose

This paper aims to examine the USA's policy toward Myanmar or Burma, analyzing the bilateral relationship between the two countries from the pre-colonial period to the present day. It highlights the implications of political shifts in the system of government in Myanmar for the bilateral relationship with the USA, particularly after the 1962 coup and the emergence of rising regional powers like China. The paper also shows how the economic role of Myanmar has increased, leading to more equal relations with the United States of America.

Design/methodology/approach

This paper employs a qualitative research design, analyzing data from both primary and secondary sources. The methodology includes a literature review and document analysis to gain a comprehensive understanding of the USA–Myanmar bilateral relationship. The research also analyzes political and economic developments in Myanmar and the region, placing the USA policy in a broader context.

Findings

The research finds that the USA has been an influential player in Myanmar's politics and economy. However, with Myanmar's integration into the Chinese Belt and Road Initiative and its accession to Association of Southeast Asian Nations (ASEAN), its economic role has become more significant, leading to a more balanced relationship with the USA. The paper also shows that the USA's policy toward Myanmar has undergone significant changes, particularly after the 2011 easing of sanctions by former President Barack Obama.

Originality/value

Although many works have traced the history of USA–Myanmar ties, this study provides a fresh perspective by setting past events against the backdrop of contemporary geopolitical upheavals, therefore highlighting the complex evolution of their bilateral dynamics. The paper contributes to the literature on the USA–Myanmar bilateral relationship by providing a comprehensive analysis of the relationship from a historical perspective. The research also adds to the discussion of the implications of political and economic developments in Myanmar for the bilateral relationship with the USA. The findings of this study have important implications for policymakers and scholars interested in the USA's role in Southeast Asia and its relations with rising regional powers like China.

Details

Southeast Asia: A Multidisciplinary Journal, vol. 23 no. 3
Type: Research Article
ISSN: 1819-5091

Keywords

Open Access
Article
Publication date: 5 December 2019

Alaa Hosny Zahran

The purpose of this paper is to outline how the EU figures out the importance of strengthening its relations with Egypt as one of the most strategic countries in the region to…

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Abstract

Purpose

The purpose of this paper is to outline how the EU figures out the importance of strengthening its relations with Egypt as one of the most strategic countries in the region to keep the union secured and stable. The paper also assesses to what extent the EU succeeds to promote democracy in Egypt.

Design/methodology/approach

The EU pursues its policy through a series of both bilateral and multilateral agreements with Egypt aiming at positioning their relations in a strategic context. The research adopted different approaches as descriptive and analytical ones.

Findings

Following the Arab uprisings, the EU was caught by surprise and announced a paradigm shift in its relations and introduced a set of policies to foster democracy promotion that witnessed some successes but with extremely modest results in some areas compared to the costs of the process. The EU succeeded in important reforms in trade liberalization while it did not bring clear changes in the political arena in Egypt.

Originality/value

The findings of this paper convey that the Arab uprisings were a wake-up call for the EU. It was the right time for the EU to conduct such a strategic and sincere reflection based on the role it wants to play in the changing region. In addition, findings prove that the EU’s response to revolutionary events has been weak and hesitant, and the EU has not an effective role in promoting democracy in Egypt.

Details

Review of Economics and Political Science, vol. 8 no. 6
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 3 August 2021

Elsayed Ali Abofarha and Ramez Ibrahim Nasreldein

This study attempts to figure out the factors that contributed to deposing certain elected presidents before the end of their constitutional terms, alongside tracing the new…

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Abstract

Purpose

This study attempts to figure out the factors that contributed to deposing certain elected presidents before the end of their constitutional terms, alongside tracing the new political context that prevailed in Latin America since 1978 and its impact on direct political participation and military behavior during presidential crises.

Design/methodology/approach

The paper uses the comparative method to investigate the causes of presidential instability in three case studies.

Findings

The likelihood of presidential instability increases when a president enacts austerity economic policies that marginalize large sectors of the citizenry, becomes implicated in acts of corruption and develops a hostile relationship with members of the ruling coalition.

Originality/value

This study integrates the social movement theory with analytical perspectives from parliamentary behavior to explain presidential instability. It attempts to investigate the dynamics of interaction between the acts of furious citizens and disloyal legislators through the in-depth analysis of three case studies.

Details

Review of Economics and Political Science, vol. 7 no. 1
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Book part
Publication date: 4 May 2018

M. Akmal

Purpose – This study aims to determine the roles of technology through digital democracy in younger generation’s political education.Design/Methodology/Approach – Research data…

Abstract

Purpose – This study aims to determine the roles of technology through digital democracy in younger generation’s political education.

Design/Methodology/Approach – Research data were obtained through observation, interviews on students in Universitas Malikussaleh, and also retrieved from some literature studies that are relevant to the above research problems. Data are then analyzed by using qualitative descriptive analysis technique.

Findings – The research results show that the role of political activity using digital channels as a form of political participation gives positive impacts to the political participation of young generation.

Research Limitations/Implications – This research limits the scope of attention only on young generation’s participation in political activities.

Practical Implications – The necessity of the younger generation is to be given wider opportunities and responsibilities in the public sphere as well as involving as a member of a political party, or other social and political organization.

Originality/Value – Therefore, in order to push towards political democratization, political education agents must be able to utilize social networking media on the internet to convey ideas, actions, and other political activities for the development of political education.

Details

Proceedings of MICoMS 2017
Type: Book
ISBN:

Keywords

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