Public outreach

Multinationals don’t find it easy to trace the origin of minerals produced in conflict-prone areas, but firms are held liable for human and social damage. In a recent scientific article, Nicolas Berman, Mathieu Couttenier, Dominic Rohner and Mathias Thoenig show that the violence induced by variations in mineral prices is associated mainly with foreign-owned firms. For some time now, companies, NGOs and States have been implementing transparency measures. The authors examine their impact on the regions’ stability.

The rise in mineral prices often has bloody consequences for Africa. This was the conclusion of Nicolas Berman, Mathieu Couttenier, Dominic Rohner, and Mathias Thoenig in a recent pan-African survey. The 2000s commodity boom accounted for up to one-fourth of the conflicts across African countries over the 2000-2009 period. Worse still, local battles escalate into regional ones because mines make rebellions financially feasible, spreading conflicts across space and time.

Norway made a historic decision by refusing oil exploration in the Lofoten archipelagos, north of the Arctic circle. It paves the way for preserving the environment for other countries that could be tempted to give in to the Cold Rush. The region is full of oil reserves that have many licking their lips, especially Russia. For the moment, the extreme arctic drilling conditions are a technological challenge that prevents its exploration. By banning arctic drilling as Norway has, other member states of the Arctic Council can save the Arctic sea ice. Their force lies in their unity.

Altruism appears to be absent from regular economic debate. However, money flows within relationships, and parents or friends can usually be counted on to lend a helping hand. These private transfers represent an even larger share of redistribution in developing economies. When the Welfare State is weak, informal transfers are a wild card for the poorest. Even social welfare policies could prove counter-productive when there is a good altruistic network in place!

Between 1962 and 2012, 36 States banned trade with Israel. No products, no services, no exchange… radio silence! Well, not exactly. Economists Lorenzo Rotunno and Pierre Louis Vézina found that during this period, Israel exported up to $6.4 billion-worth to those countries. From official to informal flows, the commercial boycott of Israel is clearly less than complete. The authors take a look at the mechanisms behind these secret exchanges and check what remains of the boycott’s intentions.

When an economy breathes polluted air, its lungs get damaged. China has become asthmatic by running too fast. The population has gone into atrophy, intoxicated by economic growth: producing often pollutes. Natacha Raffin and Thomas Seegmuller explain what China is going through: the contamination is affecting longevity, economic stability, and welfare, all at the same time. They provide answers that could help avoid asphyxiation.

Appointing a minister increases by 45% the investment grants allocated to the municipality in which he or she has held a local mandate. This gift – valued at 30 million euros per year !- illustrates the importance of the relationships ministers build over the course of their political careers. Brice Fabre and Marc Sangnier shed light on the reasons for such generosity.

A study conducted by Bonneuil and Boucekkine underlines how the State can influence education in line with demographic transition. As life expectancy increases, the State can increase school life expectancy to maximize citizens’ well-being.

The UN Security Council has been the subject of wide-ranging debate about whether it should open its doors to other permanent members. Many countries wish to join this select group to gain the power of veto that goes along with membership. Because of the inequalities it introduces and its ability to obstruct negotiations, veto power has been a tricky issue so far. Yet it may also be vital to international cooperation, to counteract the existing balance of power between nations.

Talking about the Gold Rush and the Wild West immediately conjures up fortune seekers and anarchy, but certainly not economic analysis. Yet economists have demonstrated how the presence of state institutions significantly reduced criminality in these areas, both back then and ever since, using data on mining in the Great American West. But what about the violence prevalent in states (or regions) before state institutions were established to ensure some form of property rights regulation?

Protesting is one type of social movement that can be used as a democratic way of expressing grievances. However, a demonstration also draws other citizens’ attention to government policy. Thus, protests can make people distrustful of the head of state and the monitoring institutions that are supposed to exercise control. Marc Sangnier and Yanos Zylberberg take us to Africa, where they study the influence demonstrators can have on the population as a whole.