What Has 100 Billion Dollars Worth of Debt Relief Done for Low- Income Countries?

Between 1989 and 2003, low-income countries received $100 billion in debt relief. The stated objectives for much of this debt relief have been to reduce debt overhang and to free up recipient government resources for development spending that would otherwise have been used for debt service. In this paper we empirically assess the extent to which debt relief has been successful in meeting these objectives, using a newly-constructed database measuring the present value of debt relief for 62 low-income countries. We find little evidence that debt relief has affected the level and composition of public spending in recipient countries. We also do not find evidence that debt relief has raised growth, investment rates or the quality of policies and institutions among recipient countries. Although we cannot rule out the possibility that our failure to find evidence of positive impacts of debt relief is due to a variety of data and statistical problems, the evidence reported here does suggest that some skepticism is in order regarding the likely benefits of further large-scale debt relief.Debt Relief, HIPC, Low-Income Countries, Debt

Who gets debt relief ?

The authors use preliminary results from an ongoing effort to construct estimates of debt relief to study its allocation across a sample of 62 low-income countries. They find some evidence that debt relief, particularly from multilateral creditors, has been allocated to countries with better policies in recent years. Somewhat surprisingly, conditional on per capita incomes and policy, more indebted countries are not much more likely to receive debt relief. But countries that have large debts especially to multilateral creditors are more likely to receive debt relief. The authors do not find much evidence that debt relief responds to shocks to GDP growth. Finally, most of the persistence in debt relief is driven by slowly changing country characteristics, indicating that it may be difficult for countries to"exit"from cycles of repeated debt relief.External Debt,Banks&Banking Reform,Strategic Debt Management,Foreign Direct Investment,Economic Theory&Research

The Effects of Conflict on the Structure of the Economy

The presence of conflict affects peoples economic incentives. Some sectors of activity flourish, while others suffer. For understanding structural problems in developing countries and designing appropriate post-conflict reconstruction policies, it is essential to understand in what ways conflict affects the structure of the economy. We develop a simple model of conflict and multiple sectors of activity, where conflict efforts, the allocation of factor endowments and the production outputs are endogenous. We predict that for moderately destructive conflicts labor-intensive sectors are most affected by fighting, while for highly destructive conflicts capital-intensive sectors suffer most. In the latter case, under some conditions it is also possible that in the presence of endogenous conflict - an increase in the price of the capital-intensive commodity reduces the output of this same good. The model further predicts that export-sectors and sectors that require inter-temporal investments are particularly exposed to conflict activity. In the empirical part of the paper, we study the impact of various forms of conflict, separately and as an aggregate conflict index constructed with principal component analysis. We present some basic stylized facts about the effect of conflict on the productive structure of the economy. Conflict reduces the share of the manufacturing sector in the GDP, increases the exploitation of some simple natural resources (i.e. forestry) and reduces the production of crops. Using industrial level data for developing countries we study the channels through which conflict affects the manufacturing sector. As expected, we find that industries that are more institutional/transaction intensive are the ones that suffer most in conflictive societies. Laborintensive sectors are also negatively affected by conflict. It is also found that exporting industries and sectors requiring external financing suffer more during conflict. Our results are robust to sensitivity analysis. --Conflict,Production Structure,Resource Curse,Post-Conflict Reconstruction

Is China the new land of football ?

In recent years, China has been in the spotlight for its determination to develop a relatively unexpected industry within its boundaries, football. The idea was introduced by the current President of the People’s Republic of China, Mr Xi Jinping, who intends to turn China into a top football nation. This is rather surprising considering that China has never been successful in football and has also never had a domestic football star. Thus, the Chinese government, the Chinese Football Association and local clubs have launched several considerable projects and concluded deals where large amounts of money were involved in order to help develop football in China. The Chinese large financial investments in football have made the headlines of many newspapers, notably The Financial Times and The Economist. These investments have led the football community to wonder whether the development of football in China is worthwhile. Many football professionals mainly criticised the lack of investments in grassroots of Chinese football and the surplus of money paid by Chinese clubs to attract foreign football players. Hence, this study aims to analyse the Chinese football business model and compare it with other nations’ football business models to see if Chinese financial investments in football are reasonable. It is shown later in this document that the Chinese financial investments in football are actually guided by a well thought-out strategy. Chinese are surely financially investing a lot but when compared to other nations, Chinese financial investments in football are far from excessive. In addition, the Chinese Football Association and some Chinese football clubs have succeeded to build a strong network with top football nations and clubs in order to improve their knowledge in the sport. The main challenge for the Chinese leaders of the national football project will be to create a football culture in China, which is essential if they want their country to succeed in this sport. The Chinese government, businesses, and national football association are already financing many projects to positively influence the growth of a football culture within the country. Nonetheless, a football culture cannot simply be bought and consequently results that are expected from this spending are not immediate. The main recommendation for the Chinese authorities involved in the national football project is to keep investing in football youth development while controlling overspending. In addition, they need to remain patient in order to see emerging generations of local football stars that will have benefited from the investments currently being made

Prospects of biodynamic wines in the Swiss Romande

The aim of the report is to determine the prospects of the biodynamic wine industry in Swiss Romande. Biodynamic is a sustainable and holistic approach of viticulture, still not well known nowadays. Moreover, the awareness for ethical concerns is increasing. Yet, in an area where wines are part of the culture, do people approve the stable state of tradition in being reluctant to change? Or are they inclined to adapt to more sustainable production methods? To answer these questions, different aspects of the biodynamic wine industry are developed in this report. First the macro environment is analysed to determine in which environment the biodynamic wine industry is evolving. Second, the stakeholders’ perception on biodynamic wines are analysed as well as their interaction with each other. This is to understand the current state of the industry and the obstacles for further development. The main findings show at first a global lack of knowledge from the customers. However, once we go beyond this lack of knowledge, there is a good overall perception. As for the supply sides, the principal motives for winegrowers to follow biodynamic principles are personal convictions and the respect for environment. The industry is attractive for other winegrowers to come in and shows potential for development. Then, based on the results of the analysis, the current state and obstacles analysed, hypotheses are developed and rated in terms of probability to happen. The hypotheses with the highest probability are the ones showing increases in both demand and supply sides. Indeed, although many consumers do not know biodynamic concepts yet, a majority of people are willing to consume organic and biodynamic products for various reasons. For the consumers who know biodynamics, they have good perception of it. Furthermore, more and more organic winegrowers are converting to biodynamics as a search for more sustainable practice. For the industry to move forward, a communication strategy could be beneficial to raise the consumers’ curiosity and to increase their knowledge on the subject

What differences exist between Lavaux’s perception and its promoted image, and how can the promotion be adjusted to ensure consistency and improve the knowledge of the area?

Lavaux, the Swiss vineyard which has been part of the UNESCO World Heritage List since 2007, is renowned for its terrace vineyards, its traditions, its breath-taking views on the Geneva Lake, and its unique landscape configuration. The purpose of this report is to provide an in-depth analysis of the perception and behaviour of the public towards Lavaux, and to compare them with the promotion of the area. The field research, which is based on a survey and interviews, aims at analysing the mental representation of the public, the places visited and activities performed, the wine-consumption habits and the public’s UNESCO’s definition. In parallel, the interviews of different economic actors in the vineyard allow a deep understanding of the promotion done for Lavaux. The findings suggest that the public’s perception and behaviour are aligned with the promotion of the area. Wine, landscape and UNESCO are shared values and are fully part of the promotion. Though, more implicit values, such as traditions, culture, local products are not enough highlighted. Also, no influence on Lavaux’s wine consumption has happened after the UNESCO’s nomination as far as the opinion of the public and of economic actors is concerned. Globally, the current strategy is relevant and adapts to the market needs to some extent. In order to improve the efficiency of the promotion and fill the existing gaps, recommendations include four main dimensions that can be developed. Firstly, the traditions and local products should be fully part of the promotion strategy, through quality products, service and wide opening hours. Then, the visit of the vineyard in winter could be promoted, with the creation of events to attract visitors at that period of the year. Also, the creation of a Vine and Wine Museum would enable the education of visitors about the heritage, traditions and the cultural background, while being a family activity. Finally, the creation of a global image through branding could improve the consistency of the promotion strategy. The branding should be decided amongst the promotion actors and should represent a first image to attract visitors in the area. The individualities and diversity of the economic activity should be kept within the vineyard, as they are part of the richness of the area. To summarize, unity and coordination amongst actors, the sustainability of traditions and heritage, the orientation towards preferred tourism and the promotion of experiences are key to the development of the promotion of Lavaux in the coming years

Market potential of the E-sports industry in Switzerland

This paper provides an analysis of the interest in video games by Swiss residents and the current state of e-sports investment in Switzerland. It provides information aiming to facilitate the investment for firms interested by the e-sports industry as well as an estimation of the expected revenue from video game accessories purchases in Switzerland for 2020. The first objective of this research was to define Swiss video game players and their gaming behavior, as well as having a glance of the Swiss market for video games and e-sports. The second major objective was to perform a market analysis by identifying the present firms involved in e-sports sponsorship and assessing the firms that could be potentially interested in becoming sponsors given the results from the first objective. The research methods included: data collection from an online survey, data treatment and analysis, quantitative analyses by the creation of economic models using ordinary least squares estimation methods and a linear probability model, qualitative analysis of data as well as interviews and an estimation of market value. The results permitted to understand that the attributes making a person more likely to be a video games player are being a male, having achieved mandatory or post-mandatory education as highest degree, being single or divorced and having a large share of friends interested in video game. Additional analyses permitted to find the characteristics as well affecting the participant’s commitment to play, the interest they have in e-sports and the amount they spend to fully enjoy their gaming experience. The analysis of the market allowed the paper to identify Swiss firms having a suitable profile to invest in e-sports. These firms were: Digitec, Microspot, Sunrise, Rivella, Ramseier and more. Finally, the estimation of the market value for video game accessories purchases in 2020 amounted to 542 million Swiss Francs. Given the incoming innovation in the video games industry, such as the 5G network or the creation of gaming streaming platforms, the researcher strongly recommends these companies to consider investigating in the e-sports and video games industry. This paper proves that Swiss residents, corresponding to the sample’s representation, show a true interest for video games and this market represents an investing opportunity for e-sports investment and sponsorship

Why did the Swiss Young Socialist's initiative against speculation on agricultural foodstuff fail to be approved in Switzerland ?

Agricultural commodity prices have undergone exceptional volatility in the past decade. Staple foods such as rice, wheat and corn saw their prices rally to unprecedented levels especially in 2008 and 2011. During these periods, social unrest and food riots burst in several developing countries around the world sparking the debate on the role of commodities financialisation in the food price formation. Commodity speculators were once again put in the limelight and their activities fingered as the culprit behind food exorbitant prices. Firm believers that speculation was the root cause of commodities’ prices surge, the Swiss Young Socialist Party concluded that prohibiting speculation on agricultural foodstuff was the easiest way to curb staple food price rallies; hence, a surefire way to fight hunger in the world. This conclusion led to the inception of the popular initiative called “No speculation on agricultural foodstuff ” that was submitted to popular vote on February 28th 2016 in Switzerland. Despite its good intentions, the popular initiative was refused by 59,9% of the Swiss electorate. Acknowledging that Swiss voters were not indifferent to food prices surges and food riots around the world, this work digs into the reasons that led Switzerland to refuse the initiative. Speculative practices on commodities have always instigated controversies. The literature review associates as many advantages as harms to the practice of speculation. Having to decide on a misty subject not clearly explained or understood by politicians, the Swiss electorate based their decision on other facts than their knowledge about the impact of speculation on food prices. Results obtained from a local surveyashows that 58.2% of the Swiss electorate believed speculation was a bad thing and it contributed to foodstuff price rallies. However, the proportion of voters who supported the initiative was inferior to 50% of the total electorate. Based on this fact, we assume that a significant share of voters who believed speculation was a bad thing did not support the initiative. Furthermore, we conclude that perceiving speculation as a bad thing was not a sufficient reason to vote in favor of the initiative. The suspicion that prohibiting speculation in Switzerland concealed headwinds to the Swiss commodity-trading sector represented the greatest obstacle for the initiative. This study found evidences that the initiative against speculation bore the brunt of the importance of the commodity-trading sector for Switzerland. Considering that 65% of surveyed voters declared to be worried about the Swiss trading sector, we can suggest that the Swiss electorate was well aware of the position of hundreds of commoditytrading companies headquartered in Switzerland whom contribute with thousands of well-paid jobs and a significant share of the Swiss GDP. By juxtaposing voters’ opinions on speculation and their concerns about the initiative covert headwinds for the Swiss economy, we gathered noteworthy information concerning the Swiss electorate’s decision-making process. In sum, this work suggests that the Swiss electorate believes that a solution to fight hunger in the world is more complex than merely banning speculation on agricultural products. Moreover, Switzerland had too much at stake and the country could not afford to put one of its most lucrative economical sectors in jeopardy in order to engage in a battle that had very little chance to be won

How does the knowledge of Swiss consumers on palm oil affects consumption patterns?

Palm oil is the most produced vegetable oil and accounts for 30% of the global vegetable oil production. This significant production generates negative externalities such as contributing to climate change, deforestation of the rainforests and biodiversity loss. However, this vegetable oil holds many advantages as well, such as having the highest agricultural yield, creating jobs and wealth for millions of people, and having unique exploitable characteristics. The non-governmental organizations WWF and Greenpeace support the use of certified sustainable palm oil (CSPO) to reduce the negative externalities linked to the production of palm oil to the minimum. Consumers in developed countries such as Switzerland only experience these negative externalities indirectly. Hence, it is important to know whether consumers are aware of these global issues. Their knowledge and perception on palm oil may influence their purchasing decisions. The objective of this research is to make recommendations on how to influence the knowledge on palm oil of Swiss consumers such that they make the right decision, according to the NGOs, of choosing certified sustainable palm oil. The research methods include data collection through an online survey, answers’ analysis with regressions analyses, contingency tables and comparisons between respondents with different levels of knowledge and with different demographic and perception characteristics. The results of the data analysed show that the consumers’ level of knowledge on palm oil has a low impact on consumers’ consumption patterns. Only one variable is decisive, the health benefits of palm oil. The more the consumers deem palm oil as being healthy the more they favour certified sustainable palm oil in their choices. The results also show that the more the respondents give importance to the issues related to the production of palm oil, such as climate change, deforestation, and so on, the less they favour certified sustainable palm oil in their choices. The recommendations are to first promote the health benefits of consuming palm oil in small quantity so that consumers would feel comfortable consuming it. Second, to develop and promote the existing sustainable certification schemes for the production of palm oil. The goal is to increase the trust of customers towards this option so that they would understand that it is a viable option to tackle the issues related to the production of palm oil. These two actions should help consumers to understand the benefits of certified sustainable palm oil and empower them to make better consumption decisions