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The levels of violence in Mexico have dramatically increased in the last few years due to structural changes in the drug trafficking business. The increase in the number of drug trafficking organizations (DTOs) fighting over the control of territory and trafficking routes has resulted in a substantial increase in the rates of homicides and other crimes. This study evaluates the economic costs of drug-related violence. We propose electricity consumption as an indicator of the level of municipal economic activity and use two different empirical strategies to test this. We utilize an instrumental variable regression using as exogenous variation the instrument proposed by Castillo, Mejía, and Restrepo (2013) based on historical seizures of cocaine in Colombia interacted with the distance of the Mexican border towns to the United States. We find that marginal increases of violence have negative effects on labor participation and the proportion of unemployed in an area. The marginal effect of the increase in homicides is substantive for earned income and the proportion of business owners, but not for energy consumption. We also employ the methodology of synthetic controls to evaluate the effect that inter-narco wars have on local economies. These wars in general begin with a wave of executions between rival criminal organizations and are accompanied by the deterioration of order and a significant increase in extortion, kidnappings, robberies, murders, and threats affecting the general population. To evaluate the effect that these wars between different drug trafficking organizations have on economic performance, we define the beginning of a conflict as the moment when we observe an increase from historical violence rates at the municipal level beyond a certain threshold, and construct counterfactual scenarios as an optimal weighted average from potential control units. The analysis indicates that the drug wars in those municipalities that saw dramatic increases in violence between 2006 and 2010 significantly reduced their energy consumption in the years after the change occurred.

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Beatriz Magaloni
Gabriela Calderón
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Over the past year and more, Taiwan’s political elite has been deadlocked over the question of deepening economic relations with the People’s Republic of China. This controversial issue has led to a standoff between the executive and legislative branches, sparked a frenzy of social activism and a student occupation of the legislature, and contributed to President Ma Ying-jeou’s deep unpopularity.

On October 17-18, the Taiwan Democracy Project at CDDRL, with the generous support of the Taipei Economic and Culture Office, will host its annual conference at Stanford University to examine the politics of polarization in Taiwan.

This conference will bring together specialists from Taiwan, the U.S., and elsewhere in Asia to examine the sources and implications of this political polarization in comparative perspective. It will include a special case study of the Trade in Services Agreement with China that triggered this past year’s protests, as well as a more general overview of the politics of trade liberalization in Taiwan, prospects for Taiwan’s integration into the Trans-Pacific Partnership and other regional trade agreements, and a consideration of the implications for Taiwan’s long-term democratic future.

Conference speakers will include: Chung-shu Wu, the president of the Chung-hwa Institute of Economic Research (CIER) in Taipei; Steve Chan of the University of Colorado; Roselyn Hsueh of Temple University; Yun-han Chu, the president of the Chiang Ching-kuo Foundation; and Thitinan Pongsudhirak of Chulalongkorn University in Bangkok.


Panels will examine the following questions:

1. What are the sources and implications of political polarization in Taiwan, and how have these changed in recent years?

2. How does Taiwan’s recent experience compare to political polarization in other countries in Asia (e.g. South Korea, Thailand) and elsewhere (the US)?

3. To what extent does the latest political deadlock in Taiwan reflect concern over the specific issue of trade with the People’s Republic of China, versus a deeper, systemic set of problems with Taiwan’s democracy?

4. How are globalization and trade liberalization reshaping Taiwan’s domestic political economy, and what are the prospects for forging a stronger pro-trade coalition in Taiwan that transcends the current partisan divide?


The conference will take place October 17-18 in the Bechtel Conference Room in Encina Hall at Stanford University. It is free and open to the public. 

 

Conference Resources

 

Agenda

Speaker Bios

Presentations

Conference Report

Conference Flyer

 

Conference Papers

 

How Cross-Strait Trade and Investment Is Affecting Income and Wealth Inequality in Taiwan by Chien-Fu Lin, National Taiwan University

 

Generational Differences in Attitudes towards Cross-Straits Trade by Ping-Yin Kuan, Department of Sociology & International Program in Asia-Pacific Studies, National Chengchi University

 

Change and the Unchanged of Polarized Politics in Taiwan by Min-Hua Huang, National Taiwan University; Center for East Asia Policy Studies, The Brookings Institution

 

Social Media, Social Movements and the Challenge of Democratic Governability by Boyu Chen, National Sun Yat-sen University, Institute of Political Science 

 

Coping with the Challenge of Democratic Governance under Ma Ying-jeou by Yun-han Chu, National Taiwan University

 

Taiwan’s Bid for TPP Membership and the Potential Impact on Taiwan-U.S. Relations by Kwei-Bo Huang, National Chengchi University, Department of Diplomacy

 

In the Wake of the Sunflower Movement: Exploring the Political Consequences of Cross-Strait Integration by Pei-shan Lee, National Chung Cheng University, Political Science Department 

 

The Roots of Thailand’s Political Polarization in Comparative Perspective by Thitinan Pongsudhirak, Chulalongkorn University; The Institute of Security and International Studies

 

The Role of the United States in Cross-Strait Economic Integration by Chen-Dong Tso, National Taiwan University

 

The China Factor and the Generational Shift over National Identity by Mark Weatherall, Taiwan Foundation for Democracy

 

Taiwan’s Strategy for Regional Economic Integration by Chung-Shu Wu, Chung-Hua Institution for Economic Research

 

Polarized Electorates in South Korea and Taiwan: The Role of Political Trust under Conservative Governments by Hyunji Lee, Institute of Asian Research, University of British Columbia

 

Polarization in Taiwan Politics by Steve Chan, University of Colorado, Boulder

 

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Appeared in Stanford Report, May 29, 2014

By Clifton B. Parker

The electoral eruption of anti-European Union populism is a reflection of structural flaws in that body but does not represent a fatal political blow, according to Stanford scholars.

In the May 25 elections for the European Parliament, anti-immigration parties won 140 of the 751 seats, well short of control, but enough to rattle supporters of the EU, which has 28 member nations. In Britain, Denmark, France and Greece, the political fringe vote totals stunned the political establishments.

Stanford political scientist Francis Fukuyama said the rise of extremism and anti-elitism is not surprising in the wake of the 2008 economic downturn and subsequent high levels of unemployment throughout Europe. In one sense, the EU elites have themselves to blame, he said.

"The elites who designed the EU and the eurozone failed in a major way," he said. "There was a structural flaw in the design of the euro (monetary union absent fiscal union, and the method of disciplining countries once in the zone)," said Fukuyama, the Olivier Nomellini Senior Fellow at Stanford's Freeman Spogli Institute for International Studies and the Center for Democracy, Development and the Rule of Law, and Research Afflilate at The Europe Center.

Some have argued that the European Union should adopt a form of fiscal union because without one, decisions about taxes and spending remain at the national level.

As Fukuyama points out, this becomes a problem, as in the case of a debt-ridden Greece, which he believes should not have qualified for EU membership in the first place. In fact, he said, it would have been better for Greece itself to leave the euro at the outset of the 2008 crisis.

Still, Fukuyama said the big picture behind the recent election is clear – it was a confluence of issues and timing.

"It is a bit like an off-year election in the U.S., where activists are more likely to vote than ordinary citizens," he said.

Fukuyama believes the EU will survive this electoral crisis. "I think the EU will be resilient. It has weathered other rejections in the past. The costs of really exiting the EU are too high in the end, and the elites will adjust, having been given this message," he said.

Meanwhile, the populist parties in the different countries are not unified or intent on building coalitions with each other.

"Other than being anti-EU, most of them have little in common," Fukuyama said. "They differ with regard to specific positions on immigration, economic policy, and they respond to different social bases."

Ongoing anger

Dan Edelstein, a professor of French, said the largest factor for success by extremist candidates was "ongoing anger toward the austerity policy imposed by the EU," primarily by Germany.

Edelstein estimates that a large majority of French voters are still generally supportive of the EU. For the time being, the anti-EU faction does not have a majority, though they now have much more representation in the European Parliament.

Edelstein noted existing strains among the anti-EU parties – for example, the UK Independence Party in Britain has stated that it would not form an alliance with the National Front party in France.

Immigration remains a thorny issue for some Europeans, Edelstein said.

"'Immigration' in most European political debates, tends to be a synonym for 'Islam.' While there are some countries, such as Britain, that are primarily worried about the economic costs of immigration, in most continental European countries, the fears are cultural," he said.

As Edelstein put it, Muslims are perceived as a "demographic threat" to white or Christian Europe. However, he is optimistic in the long run.

"It seems a little early to be writing the obituary of the EU. Should economic conditions improve over the next few years, as they are predicted to, we will likely see this high-water mark of populist anger recede," said Edelstein.

Cécile Alduy, an associate professor of French, writes in the May 28 issue of The Nation about how the ultra-right-wing National Front came in first place in France's election.

"This outcome was also the logical conclusion of a string of political betrayals, scandals and mismanagement that were only compounded by the persistent economic and social morass that has plunged France into perpetual gloom," she wrote.

Historian J.P. Daughton said that like elsewhere in the world, immigration often becomes a contentious issue in Europe in times of economic difficulties.  

"High unemployment and painful austerity measures in many parts of Europe have led extremist parties to blame immigrants for taking jobs and sapping already limited social programs," he said.

Anti-immigration rhetoric plays particularly well in EU elections, Daughton said. "Extremist parties portray European integration as a threat not only to national sovereignty, but also to national identity.

Edelstein, Alduy and Daughton are all Faculty Affiliates of The Europe Center.

Wake-up call

Russell A. Berman, a professor of German studies and comparative literature, said many Europeans perceive the EU as "somehow impenetrable, far from the civic politics of the nation states."

As a result, people resent regulations issued by an "intangible bureaucracy," and have come to believe that the European Parliament has not grappled with major issues such as mustering a coherent foreign policy voice, he said.

"The EU can be great on details but pretty weak on the big picture," said Berman, who is the Walter A. Haas Professor in the Humanities, Senior Fellow at the Hoover Institution, and Faculty Affiliate of The Europe Center. "It is this discrepancy that feeds the dissatisfaction."

Yet he points out that the extremist vote surged in only 14 nations of the EU – in the other 14, there was "negligible extremism," as he describes it.

"We're a long way from talking about a fatal blow, but the vote is indeed a wake-up call to the centrists that they have to make a better case for Europe," Berman said.

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A man walks past a board displaying provisional results of the European Parliament election at the EU Parliament in Brussels May 25, 2014.
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CDDRL Director Larry Diamond addresses concerns of an intensifying democratic recession in a piece in The Atlantic. Despite recent turmoil in Ukraine and democratic breakdowns in Thailand and Turkey, among others, Diamond emphasizes the critical role economic development, globalization and the growth of civil society will play in the long-run inducement of democratic change worldwide.
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Protesters carry a large banner reading: ''Democracy'' as they participate in an anti-government protests organized by Bahrain's leading opposition Al Wefaq. Sept. 14, 2012.
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This paper offers a systematic account of political regime changes in Sub-Saharan Africa from 1996-2010. Are democratic transition processes a variance of a singular domestic politico-institutional model (political protest, political mobilization, and democratization), as Michael Bratton and Nicolas van de Walle (1997) claimed, or do other variables matter in democratic transition processes? What conditions create and maintain democracy in Sub-Saharan Africa? Combining qualitative and quantitative methods, this paper examines the development of Sub-Saharan African political regimes, contrasting the pre and post-Cold War periods (1960-1989 and 1996-2010) to understand their determinants. It focuses on the new transformations observed since the beginning of the twenty-first century, assessing recent regime history and examining the factors (political, governance, economic and international) that have contributed to democratic development in some states and autocracy in others. The findings show that democratic transitions are not only the variance of the Bratton and Van de Walle model, which downplays economic and international variables. The process is mainly, but not always, determined by domestic politico-institutional factors. Foreign intervention and economic conditions are also important determinants of democratization in Sub-Saharan Africa in the post-Cold War era.

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Landry Signé
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