Category Archives: Economics

The Recurring Intellectual Plague of Globalization

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Journal of Political Risk, Vol. 8, No. 5, May 2020

The photo is taken from behind an office worker in a shirt. They are only partially visible. The focus is on a laptop screen depicting graphs and pieces of paper.

A rear view of a businessman as he tries to sort out the mess of geopolitical events. Source: Pexels.

William R. Hawkins
Former U.S. House Foreign Affairs Committee

In the public mind, the outsourcing of jobs to China, which built the conveyer belt that carried Covid-19 from Wuhan to the world, was the fault of soulless transnational corporations. Greedy business tycoons were willing to deal with anyone in the pursuit of profit, regardless of larger consequences (of which the current pandemic is not the most dire). What cannot be overlooked, however, is that these private actors were given moral cover by intellectuals who assured them that they were fulfilling a higher purpose by spreading liberal values and promoting peace in a new era of globalization. Continue reading →

Defeating China: Five Strategies

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Journal of Political Risk, Vol. 8, No. 4, April 2020

Fighter jets of the U.S. Navy Blue Angels demonstration squadron fly over the Lincoln Memorial during the Fourth of July Celebration 'Salute to America' event in Washington, D.C.

Fighter jets of the U.S. Navy Blue Angels demonstration squadron fly over the Lincoln Memorial during the Fourth of July Celebration ‘Salute to America’ event in Washington, D.C., U.S., on Thursday, July 4, 2019. Source: Official White House Photo by Joyce N. Boghosian.

By Anders Corr, Ph.D.
Publisher of the Journal of Political Risk

Since 1989, when China massacred thousands of its own people in Tiananmen Square to stop a pro-democracy protest, the country has arguably grown into the world’s most powerful and centralized state. China’s GDP by purchasing power parity (PPP) is approximately $25.4 trillion, while the U.S. GDP PPP is only about $20.5 trillion.[1] One man, Chinese President Xi Jinping, has almost total control of China’s economy and a leadership position for life. China’s authoritarian system, most recently, allowed the COVID-19 virus to become a pandemic. By the time it is controlled, it may have killed up to millions of people.

Compared to Xi Jinping, political leaders in democracies have comparatively little economic power. U.S. President Donald Trump, for example, has only partial control of the smaller (by purchasing power parity when compared to China) U.S. economy, and must be reelected in 2020 to continue his tenure for a maximum of an additional four years.

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Plutocrats Are Only Part Of A Larger Problem

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Journal of Political Risk, Vol. 8, No. 2, February 2020

A pink name card with "Tim Cook" (also written in characters below) features in the foreground against the backdrop of a green, felt table and iPads.

BEIJING, CHINA – MARCH 18: Apple CEO Tim Cook (R) attends China Development Forum 2017 – Economic Summit at Diaoyutai State Guesthouse on March 18, 2017 in Beijing, China. The forum sponsored by Development Research Center of the State Council centers on “China and the World: Economic Transformation through Structural Reforms”. Source: ITHome.

William R. Hawkins
Former US House Foreign Affairs Committee member

I ran across a review of the Plutocratic Insurgency Reader in an unusual place. Not in the usual left media outlets, like Jacobin, Dissent or The New Republic as its title would seem to fit, but in Parameters, the quarterly journal of the U.S. Army War College (AWC). This is because the book is not edited by the usual “progessive” activists, but by Robert J. Bunker, adjunct research professor at the AWC Strategic Studies Institute and his wife, Pamela Ligouri Bunker, a specialist in counter-terrorism. And the book is published under the auspices of the Small Wars Journal (SWJ), not known for leaning left.

The book collects 31 short essays by 15 authors, six of whom have ties to either the AWC or the SWJ, thus giving a high expectation that national security would be its primary concern. Its self-avowed purpose is to present the core of a scholarly movement that originated in 2012 from correspondence between Robert Bunker and Nils Gilman of the Bergguen Institute concerning how the wealthy “opt out of participation in the collective institutions that make up society.” The Bergguen Institute was founded in the wake of the 2008 financial crisis and Gilman’s interest is apparently reshaping the relationship between globalized capitalism and national sovereignty. As one reads through the essays, there is a tension that undermines the national security side of the discussion in favor of a domestic policy focus on income inequality and a radical desire to transform property rights that leaves the welfare state in the dust. Gilman is not an editor, but I would argue, his is the stronger voice.

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Making Political Risk More Politically Relevant

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Journal of Political Risk, Vol. 7, No. 12, December 2019

Ukraine's Independence Square depicted from above against a blue backdrop.

Ukraine’s Independence Square in Fall 2013, taken only months before it erupted into violent protests culminating in the overthrow of the sitting government. A busy commercial and tourist hub that day, there was no sign of the war zone it would soon resemble. Photo: Alicia Ellis.

Alicia N. Ellis, Ph.D.
Arizona State University

Executive Summary

This report assesses the state of the academic literature on political risk and evaluates its contribution to understanding and mitigating risk for both business and political professionals. This assessment concludes that policy-relevant research has been in some cases limited and, in most cases, ineffectively communicated. Several major problems contribute to the persistent disconnect between policy, industry, and academia. Political scientists do not approach their research questions in a communicable way, nor do they often take the necessary step of connecting their research to an end use. Risk rating organizations have become overly reliant on cross-national aggregate models. Mixed methods research has been applied inappropriately and thus, ineffectively. Systematic biases have been introduced to models at a structural level, and conceptual difficulties plague some of the most basic questions for risk analysts.

Despite these problems, opportunities do exist for bridging the gap between research and practice, and producing policy-relevant research. This article proposes some recommendations for moving forward. Research questions must be structured in new ways to reflect the needs of end consumers that include non-academic professionals. Several research agendas in need of a practical-minded researcher are put forth, including the rise of China and what it means for global trade patterns, the ‘buy local’ movement spreading across the United States, and the problem of democratic consolidation. For each problem identified, the article makes suggestions for how we might reframe the questions in a way that produces more useful research on political risk. Continue reading →

Beyond the Camps: Beijing’s Long-Term Scheme of Coercive Labor, Poverty Alleviation and Social Control in Xinjiang

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Journal of Political Risk, Vol. 7, No. 12, December 2019

Soldiers are depicted dressed identically in grey uniforms. They are all lined up next to identical, maroon suitcases.

442 rural surplus laborers from Kashgar and Hotan, Xinjiang China, are sent off to work in an industrial park in Korla in a “centralized fashion”.

Adrian Zenz, Ph.D.
Senior Fellow in China Studies
Victims of Communism Memorial Foundation

1.0 Introduction

After recruiting a hundred or more thousand police forces, installing massive surveillance systems, and interning vast numbers of predominantly Turkic minority population members, many have been wondering about Beijing’s next step in its so-called “war on Terror” in Xinjiang. Since the second half of 2018, limited but apparently growing numbers of detainees have been released into different forms of forced labor. In this report it is argued based on government documents that the state’s long-term stability maintenance strategy in Xinjiang is predicated upon a perverse and extremely intrusive combination of forced or at least involuntary training and labor, intergenerational separation and social control over family units. Much of this is being implemented under the heading and guise of “poverty alleviation”.

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