Deutsches Institut für Entwicklungspolitik / Analysen

This paper investigates the impact of aid for trade (AfT) targeted at trade policies on the participation of recipient countries in global value chains (GVCs), and how this impact varies with their prevailing political regimes. In democratic countries, the need for the authorities to account for the interests of various stakeholders (e.g., lobbies, trade unions) can compromise the allocation, use, and effectiveness of AfT. In contrast, less democratic regimes are typically more insulated from political pressures, which may lead to more effective outcomes of aid. At the same time, integration into some complex GVCs requires efficient and democratic institutions, to which these products are sensitive. Employing a sample of 110 countries and data covering 2002-2018, we control for standard determinants of GVC participation, while examining the effect of AfT and the moderating role of the political regime in place. Our estimation addresses the endogeneity of aid through an appropriate instrumentation strategy. Our results suggest that the effect of AfT is mostly positive in autocratic regimes, indicating more effective trade policy reforms. When we account for regional disparities, we find evidence that AfT for trade policy is also impactful in some democratic regimes. This might suggest that the efficacy of AfT is not strictly regime-dependent, but hinges on the government’s commitment to carry out significant reforms leading to greater participation in the global economy.

This paper examines how leadership gender configurations shape digitalisation and innovation in Egyptian manufacturing. Using the 2020/21 Egyptian Industrial Firm Behavior Survey (EIFBS) covering 2,338 firms, we construct a four-category gender variable (female owners and male managers (FOMM), male owners and female managers (MOFM), female owners and female managers (FOFM) and all-male baseline) and analyse how these owner–manager gender mixes relate to the adoption of digital technologies (DT) and to innovation outputs, and how these relationships vary by firm size and DT use. Our analysis suggests that firms with male owners and female managers (MOFM) are most likely to adopt DT across specifications. The cross-sectional data suggests that mixed-gender firms are associated with a higher probability of spending on R&D, but not with higher innovation outputs in firms with female owners (i.e. FOMM and FOFM) – pointing toward an innovation conversion gap in those firms. Heterogeneity results show that the MOFM adoption premium of DT and a negative association between FOMM and innovation are strongest in small firms. DT use moderates gender gaps: female-owned firms not using DT are significantly less likely than all-male firms to generate innovation outputs, but this penalty disappears when female-owned firms use DT. A combined size–sector analysis suggests that the divergence between MOFM and FOMM/FOFM is driven mainly by small food manufacturers, with average marginal effects elsewhere broadly comparable. The results highlight leadership composition as a correlate of technology adoption and the role of DT in converting innovation inputs into outputs.

This paper investigates the determinants and dynamics of labour demand and specifically informal labour in Egypt’s manufacturing sector, using nationally representative firm-level data from the 2020/21 Egyptian Industrial Firm Behavior Survey. Applying ordinary least squares and fractional logit models, we analyse total employment, the share of informal labour, and its average annual change over the firm life cycle. Three key findings emerge. First, employment is positively associated with capital, exporting, technology adoption, innovation, industrial zones, worker training, and managerial education, and negatively associated with sole proprietorships, wages, and total factor productivity. Second, informal employment is more common among private sector firms, sole proprietorships, and firms using more part-time workers, and less prevalent among firms adopting technology or led by more educated managers. Third, changes in informality over time are modest: most formal firms exhibit no change in the share of informal workers. Notably, formal firms that did not initially employ informal labour tend to increase their informal share, while firms that formalised continue to rely heavily on informal employment. Together, these findings underscore the persistence of informality and limited transitions towards full formalisation within Egypt’s formal manufacturing sector.

Countries now act in an international cooperation architecture whose rules are disputed from several directions at once. One of those directions is the hegemon itself, the US. The paper argues that the Trump administration’s disruption matters because it moves the largest actor from affirming to contesting across several arenas at once. That reshuffles the calculus for every country. This paper asks how countries can exercise agency when the international order itself is fragmenting. The paper surveys the bewildering array of concepts on state agency and proposes a schema built on two continua. The first is the medium or type of agency, meaning material/institutional versus ideational/discursive. The second is orientation to the prevailing order in a specific arena (not in general) as affirming versus contesting. Countries are not fixed in one position. Whether the same state contests the rules depends on its interests in a particular arena. Each potential position is available only to a country that can pay the arena’s entry fee. The entry fee is the resources, broadly defined, a position demands before a country can take it up. The paper sets out the strategic positions available in a fragmenting system. It names a further position, norm imperialism, where material instruments are turned against an ideational object. The implications for different types of country are discussed.

This chapter seeks to explain why development cooperation norms that looked stable in the mid-2010s became contested after 2016. We link this to crisis politics and the post-2030 agenda. Here, the ‘good old days’ means the mid-2010s cooperation moment. In 2015, four agreements were adopted within months: the 2030 Agenda (SDGs), the Paris Agreement, the Sendai Framework for Disaster Risk Reduction, and the Addis Ababa Action Agenda on financing for development. Their adoption set shared expectations about collective action. These agreements did not create a single regime, but they shared a narrative of common problems, shared responsibility, and multilateral problem-solving, backed by monitoring, review, and had a basis in evidence. Only a decade later, that consensus has evaporated. Development cooperation faces intersecting pressures operating through budget contractions, institutional precarity, and public narratives fuelled by the populist right in many DAC donor countries. In this new context, many DAC donors are shifting attention towards direct national interests, including security, migration policing, and geo-politics/geo-economic priorities, amid fiscal squeeze, intensified by the Trump 2.0 administration’s anti-multilateralism. Our chapter argues that the mid-2010s moment was highly contingent on an alignment of interests, institutions, and policy narratives, rather than a settled consensus, and that shifting political ‘mood’ has unravelled that spirit dramatically. We use a policy norm dynamics framework that traces norm contestation through actors and networks, institutions, and context and policy narratives, and introduces ‘epochal moods’ as the over-arching political climate that shape the nature and form of development cooperation. We outline the competing normative regimes of development cooperation and what they imply for positioning on a post-SDG/post-2030 collective framework.

Etwa die Hälfte der einkommensschwachen Länder ist derzeit zahlungsunfähig oder hat ein großes Risiko, zahlungsunfähig zu werden. Was die Weltgemeinschaft dagegen tun muss, erläutert eine IDOS-Wissenschaftlerin.

Niels Keijzer, Hyeyoung Woo & Jee Hee Yoon outline the potential ways middle powers may best organise to shoulder the global development agenda and the (quasi-) multilateral institutions could support them in this regard?

With the world’s attention fixed on the Strait of Hormuz, developments in North Africa have made fewer headlines in Europe. The crises in the Middle East are likely to deepen the geostrategic interdependence of North Africa and Europe, creating opportunities for both regions.

In the face of ever-new temperature records and serious natural disasters, the effects of climate change no longer appear to be just abstract visions of
the future. The fears triggered by global warming, particularly in the Global North, are strongly focused on the issues of forced displacement and migration. The fear that climate change could rob millions of people—especially in the Global South—of their homes soon, and that these people could
then set off for Europe or North America as climate refugees, is reflected in countless media reports in recent years. Furthermore, non-governmental
organizations regularly use the alarmist, if not to say doomsday, narrative of a steady increase in the number of climate refugees and the existential
threat posed by climate change to billions of people worldwide to promote their work. The scientific debate on the links between climate change and human mobility has intensified considerably over the last 15 years, and numerous research projects, some of them large-scale, have been launched on the topic of “climate migration.” This chapter wants to reflect on the findings of these research activities, also considering global migration trends. The fundamental implications for the political and (global) social handling of the nexus between climate change and human mobility will be worked out.

This chapter deals with climate mobility and how it is addressed in international politics. Yet, no internationally binding convention explicitly addresses climate-related mobility. However, there are a couple of existing agreements, frameworks, policy processes and related institutions offering potential scope to address various aspects of the climate-mobility nexus. The policy landscape shaped in this way cuts across different policy and action areas such as climate policy, disaster risk management, human rights or migration/displacement policy. Particularly relevant frameworks and processes – including, for instance, the Global Compact on Migration or the Sendai Framework – and institutions such as the International Organization for Migration (IOM) are analysed in this chapter. Furthermore, the chapter also highlights focus areas of action in the contemporary policy landscape that has been formed around the topic of climate mobility and briefly explores potential future (coordination) models for this policy landscape.

Das Ziel dieser Studie war es, gängige Narrative und Frames zu umwelt- und klimabedingter menschlicher Mobilität zu analysieren und einzuordnen. Frames und Narrative prägen die Wahrnehmung und Bewertung von Migration, indem sie bestimmten Akteuren spezifische Rollen und Verantwortlichkeiten zuschreiben.

Die Studie konzentriert sich innerhalb des öffentlichen Diskurses auf mediale Narrative. Dazu wurden 95 Artikel deutschsprachiger Leitmedien aus dem Zeitraum von August 2020 bis August 2024 untersucht. Die Auswertung erfolgte mittels qualitativer Inhaltsanalyse unter Verwendung der Kodierungssoftware MaxQDA. Dabei kam ein deduktiv-induktives Kodierungssystem zum Einsatz, um die Ergebnisse systematisch zu erfassen und miteinander zu vergleichen. Die deduktive Kodierung basierte auf einem Diskursanalyseschema, das zentrale Aspekte diagnostischer, prognostischer und motivationaler Framings berücksichtigt.

Im Rahmen der Diskursanalyse konnten drei prägende Narrative identifiziert werden, die die mediale Berichterstattung über umweltbedingte Mobilität maßgeblich beeinflussen: (a) Der dominante humanitär-wissenschaftliche Diskurs: das Leid des Südens und die Verantwortung des Nordens, (b) Der marginale Abwehrdiskurs: „Das Boot ist voll“ und „Klimaflüchtlinge gibt es eigentlich nicht“ und (c) Der aufkommende Diskurs zu Klimaflucht im Globalen Norden: differenziert und individualisiert.

Diese Studie ist Teil des UBA-Forschungsvorhabens „Politik am Nexus Umwelt, Entwicklung und Migration kohärent gestalten“ und trägt zur besseren Einordnung sowie zum tieferen Verständnis des öffentlichen Diskurses über diesen Nexus und seine gesellschaftliche Bedeutung bei.

Die Auswirkungen des Klimawandels auf Flucht und Migration sind nicht mehr nur eine abstrakte Zukunftsvision. Die zunehmende Häufigkeit und Intensität von Extremereignissen wie Wirbelstürmen oder Dürren sowie immer neuer Temperaturrekorde auf der ganzen Welt haben einen maßgeblichen Einfluss auf Umsiedlungspläne, Binnenvertreibung und in geringerem Maße auf grenzüberschreitende Vertreibung. Die Ängste, die durch die globale Erwärmung ausgelöst werden, sind – insbesondere im Globalen Norden – auch eng mit den Themen Vertreibung und Migration verbunden. Die Befürchtung, dass der Klimawandel schon bald zig Millionen Menschen, gerade im Globalen Süden, ihrer Heimat berauben und sie dann als Flüchtlinge nach Europa treiben könnte, spiegelt sich in unzähligen Medienberichten der letzten Jahre wider. Immer wieder befeuerten umstrittene Prognosen zum Ausmaß der erwarteten »Klimaflucht« die mediale Aufmerksamkeit […]. Der Beitrag beginnt mit einem globalen Profil der klimabedingten Vertreibung auf der Basis aktueller Daten. Anschließend wird der wissenschaftliche Diskurs über den Zusammenhang zwischen Klima und Vertreibung dargestellt. Im dritten Teil des Beitrags werden die rechtlichen und politischen Rahmenbedingungen analysiert, in denen Vertreibung im Kontext des Klimawandels grundsätzlich berücksichtigt und adressiert wird.

Bemerkbar macht sich die menschengemachte globale Erwärmung etwa in der Nahrungsmittel- und Wassersicherheit, bei Wirtschaftssystemen, bei Siedlungs- und Infrastrukturen, bei bewaffneten Konflikten, bei der Kultur oder auch bei Flucht und Migration. Ebenso gibt es bedeutende Wechselwirkungen mit der Künstlichen Intelligenz, einem anderen großen Menschheitsthema des 21. Jahrhunderts. Dieses Heft möchte genau diese Themen unter die Lupe nehmen und darlegen, wie die Klimakrise sich auf die genannten Bereiche ausgewirkt hat bzw. welche Wechselbeziehungen es jeweils gibt. Es soll allein um den Kenntnisstand zum Status Quo gehen, nicht um Prognosen oder mögliche Szenarien. In einer Schlussbetrachtung wird versucht, die dargelegten Erkenntnisse einzuordnen.

images of people scaling the fence into Ceuta and Melilla fuel the perception of a loss of control. Yet these people cannot simply travel on to the rest of the EU, nor are its external borders the real threat. Rather, the threats lie in the scapegoating and the knee-jerk call for isolation. Both obscure the view of what could be possible: partnership on equal terms to create opportunities for local youth, regulated entry coupled with justified deportation, and honest information.

Exacerbated by the cuts in development cooperation (DC), many low- and middle-income countries (LMICs) are currently facing severe financial constraints. Against this backdrop, higher domestic revenue is a desirable goal for most countries. Greater attention is being devoted to enhancing domestic revenue in the international development policy discourse too – across the entire political spectrum. For some, the goal is to extend the decision-making scope of government and enhance the development focus of public action, while others hope to relieve the burden of transfers on industrialised nations of the Global North and end the recipient countries’ “addiction” to DC payments. Yet what options are actually available to LMICs to generate more domestic revenue? The present policy brief shows that taxing personal income and landed property in particular could offer opportunities for additional revenue. Another important area is the rationalisation of tax expenditures, which often lead to substantially less revenue without providing any evident benefit. At the same time, however, it is also important to recognise the systemic – and eminently political – nature of tax reforms. Above and beyond the issue of technical and administrative feasibility, the political achievability of reforms must also be taken into
account. Short-term tax increases – for example through higher consumer taxes or tariffs – are often not very sustainable in their own right.
Instead, the aim must be to place the “fiscal contract” between taxpayers and the state on a broader and more stable base where better public services also play a role. One type of revenue (in this case DC) therefore cannot simply be replaced by another (taxes) – a fact that advocates of DC cuts often fail to mention. During the transition, DC must continue to provide contributions, despite declining overall funds.
International players, including the German Government and the EU, can support partner governments in a variety of ways. They are already doing so, for example by promoting the Addis Tax Initiative (ATI). In addition, Germany and the EU should make a determined effort to help strengthen multilateral approaches to cooperation. This particularly applies to the United Nations (UN) Framework Convention on International Tax Coopera-tion currently being negotiated.

Vor genau einem Jahr stellte der Internationale Gerichtshof in Den Haag in einem Rechtsgutachten fest: Staaten sind völkerrechtlich verpflichtet, das Klima zu schützen und erhebliche Schäden zu verhindern. Der Klimaspruch kann ein Instrument der internationalen Klimadiplomatie sein, diese aber nicht ersetzen.

The majority of the people displaced by the armed conflict in Mozambique’s Cabo Delgado Province live in host communities. Our research shows that many Internally Displaced Persons (IDPs) live with family/friends. Less than half live in displacement camps. As in many other internal displacement contexts, the government of Mozambique, develop­ment partners and humanitarian organisations use the terms IDPs and host communities to distinguish between the people who fled the conflict and those who welcomed them, respectively. This is a necessary distinction because IDPs are in a particularly precarious situation, having lost homes, family members and means of livelihoods, which renders material and psychosocial support to them indispensable. However, this policy brief identifies two issues that are pertinent to this distinction and the provision of material support to IDPs. First, while the categories of IDPs and host communities may provide clarity for interventions, they do not always reflect the broader history of local communities and how people identify and relate to each other. Second, in contexts where economically vulnerable host communities share their meagre resources with IDPs prior to the arrival of external humanitarian support, humanitarian organisations need to be sensitive to the material circumstances of host communities so that these do not see such support as discriminatory, leading to conflict. When the material support that humanitarian organisations provide to IDPs is beyond the means of their hosts, the latter can become resentful and withdraw their own support from the IDPs. This is a common problem, and the policy brief shows some ways to address it. Governments, development partners, and humanitarian organisations that adopt simplistic distinctions between IDPs and host communities without locating them in the specific socio-economic context risk missing local acts of solidarity and mutual identification as channels of inclusion that are central to maintaining social cohesion. 

Key policy messages:

• Contextualise displacement. In contexts where displacement occurs within a broader history of regional migration, IDPs are not always seen as outsiders in their host communities because many have prior personal connections to host com­munities. The government of Mozambique, develop­ment partners and humanitarian actors need to embed and understand the current displacement within the long history of migration, ethnolinguistic identification and displacement which shapes relations and contributes to social cohesion. 
• Integrate local ethos of solidarity. In the absence of external humanitarian support or prior to the arrival of emergency aid, host communities mobilise themselves through an ethos of solidarity, care and hospitality to help displaced people. External interventions coming into such situations need to be sensitive to this ethos and build on existing inclusive social support mechanisms and locally led initiatives so that they do not disrupt positive relations.
• Build on locally led integration. Locally led efforts are integral to local ownership of the integration of IDPs and its sustainability. When external support builds on local initiatives, this reduces unintended consequences such as resentment and conflicts between IDPs and host communities.

Climate mitigation and adaptation require substantial investment to advance sustainable development. In low- and middle-income countries (LMICs), mobilising such finance is particularly challenging for small and medium-sized enterprises (SMEs) due to persistent market failures, including limited financial disclosure and weak credit-risk information. High upfront costs, uncertain returns and weak regulatory frameworks further constrain adoption of low-carbon technologies. While fiscal constraints and the capital-intensive trans­ition underscore the need for private capital, traditional bank financing is restricted by long project horizons, high risk and macroeconomic instability. Blended finance and guarantees are key instruments for mobilising private investment in LMICs. Blended finance combines concessional public resources with private or additional public capital to mitigate profitability risks, while guarantees reduce perceived risk by covering partial losses, particularly for non-commercial risks. This policy brief assesses their role in scaling SME climate finance, alongside their limitations and context-specific applicability. Evidence suggests that leverage effects, especially for blended finance, are more modest than often assumed and are context dependent; nonetheless, these instruments remain relevant for de-risking SME finance, contingent on improved design and implementation. The policy brief advances the following recommendations:

- Financial intermediaries should prioritise SMEs facing binding financing constraints that prevent projects with clear socio-economic and environ­mental benefits. Project selection should integrate financial and climate vulnerability, though assess­ment remains difficult in low-income countries (LICs). De-risking instruments should target specific constraints, with guarantees mitigating risks and blended finance supporting projects with insufficient risk-adjusted returns to attract private capital. Multilateral development banks (MDBs) and development finance institutions (DFIs) should ensure additionality, minimise concessionality and strengthen monitoring and transparency.
- MDBs and DFIs should better align donor incen­tives with effective risk-sharing and flexible finan­cing structures. Concessional senior loans dominate blended finance but have limited loss absorption, reducing effectiveness in high-risk environments. A more balanced mix, including subordinated debt, equity and guarantees, can improve risk allocation and crowd in private investors. Greater use of special purpose vehicles and off-balance-sheet structures can further expand financing capacity in fragile contexts.
- MDBs and DFIs should strengthen coordination, standardisation and local engagement. Frag­menta­tion in blended finance and guarantees increases complexity and transaction costs and deters institutional investors. Greater harmoni­sation across MDBs, DFIs and private investors would improve capital allocation and comple­mentarity, while standardised procedures and contracts would streamline project preparation and scaling in LMICs.
 Governments in LMICs should address structural constraints, with MDBs and DFIs providing com­plementary de-risking and capacity-building support. Weak investment climates, shallow finan­cial markets, poor project pipelines and weak credit information systems reduce the effective­ness of blended finance and guarantees, particu­larly in LICs. Governments should strengthen investment climates, deepen financial markets and improve SME capabilities, while MDBs and DFIs support local intermediaries and broader reforms.