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Ratification Politics and Preferential Trade Agreements: Malaysia and the CPTPP
What does the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) mean for a country like Malaysia? This case investigates the far-reaching domestic ramifications of this type of "mega-regional agreement," as well as how international agreements can be an important way to strengthen alliances and global standing. The case asks students to evaluate an important decision facing Prime Minister Mahathir Mohamad, a long-serving former prime minister who surprised everyone by winning Malaysia's May 2018 election. Having come out of retirement to secure his legacy, Mahathir faces a complicated political choice. The previous administration had signed on to the CPTPP, and signatory countries must now pass the deal through their respective domestic approval processes. But Mahathir's party and government are divided on the deal, which could bring new export and investment opportunities - but also would require Malaysia to make commitments to protect labor rights and intellectual property. These commitments, in turn, could prove politically unpopular at home. -
Antanas Mockus: The Prohibition of Fireworks in Bogotá
In 1994, Antanas Mockus, an unlikely politician and former President of the prestigious National University of Colombia, became Bogotá's first independent mayor, bringing with him a unique vision of harmonious citizenship. The city's new leadership under Mockus, unlike in the past, included academics and researchers, who helped create a raft of new initiatives designed to align public behavior with the rule of law, through education and positive peer influence-or what was known as "citizenship culture." In his first year, Mockus addressed two big issues plaguing Bogotá, deadly traffic and violence, by using unconventional methods like hiring mimes to control traffic and restricting the sale of alcohol during certain times of year. Mockus later tackled the culture of lighting fireworks-a popular symbol of celebration in Colombia-which typically killed or injured hundreds of adults and children annually. In December 1995, at the beginning of the Christmas celebration season in Bogotá, Mockus faced a difficult decision. An eight-year-old boy had severely burned two of his fingers by lighting fireworks. Earlier that year, Mockus had arrived at a compromise agreement to allow limited sale of fireworks even though the number of fireworks-related injuries had risen steadily in recent years. The incremental approach required fireworks vendors to sell only to adults and to educate their customers about proper use. But if a single child in Bogotá was injured as a result of fireworks during the 1995 Christmas season, a full ban would come into effect. Part A of the case profiles Mockus's campaign for mayor and details the events that led up to the ban on fireworks. It traces how Mockus and his team tried to facilitate social change on fireworks by using a combination of public education, laws and moral pressure. -
Antanas Mockus: The Prohibition of Fireworks in Bogotá - Sequel
"In 1994, Antanas Mockus, an unlikely politician and former President of the prestigious National University of Colombia, became Bogotá's first independent mayor, bringing with him a unique vision of harmonious citizenship. The city's new leadership under Mockus, unlike in the past, included academics and researchers, who helped create a raft of new initiatives designed to align public behavior with the rule of law, through education and positive peer influence-or what was known as "citizenship culture." In his first year, Mockus addressed two big issues plaguing Bogotá, deadly traffic and violence, by using unconventional methods like hiring mimes to control traffic and restricting the sale of alcohol during certain times of year. Mockus later tackled the culture of lighting fireworks-a popular symbol of celebration in Colombia-which typically killed or injured hundreds of adults and children annually. In December 1995, at the beginning of the Christmas celebration season in Bogotá, Mockus faced a difficult decision. An eight-year-old boy had severely burned two of his fingers by lighting fireworks. Earlier that year, Mockus had arrived at a compromise agreement to allow limited sale of fireworks even though the number of fireworks-related injuries had risen steadily in recent years. The incremental approach required fireworks vendors to sell only to adults and to educate their customers about proper use. But if a single child in Bogotá was injured as a result of fireworks during the 1995 Christmas season, a full ban would come into effect. Part A of the case profiles Mockus's campaign for mayor and details the events that led up to the ban on fireworks. It traces how Mockus and his team tried to facilitate social change on fireworks by using a combination of public education, laws and moral pressure. -
Clean Energy for the Future
This is an industry note on renewable energy-wind, solar, governmental incentives and storage. It covers the recent history of both the wind and solar industries, an extensive look at governmental policies in the United States, including the Green New Deal, and supply-demand-price developments in those sectors. -
Experiencya Cuba: Two Entrepreneurs in Havana
In 2019, two Cuban entrepreneurs discussed their growth strategy, given the regulatory framework instability, for private companies, in Cuba. Experiencya Cuba offered car and apartment rentals, airport pick-up, and tours around the island, all conducted in perfectly restored American cars from the 1950s. -
Untapped Potential: Renewable Energy in Argentina
In 2015, Mauricio Macri became President of Argentina and declared solving the energy crisis one of his top priorities. When Macri attempted to raise utility tariffs, however, he faced loud protests from citizens. In search of solutions to growing shortages, the government seized on Argentina's still largely untapped, but potentially vast renewable energy sector and created an ambitious program called RenovAr (renew in Spanish). By 2016, the country's share of renewable energy stood at less than 2 percent of the power mix. RenovAr's goal was to raise that percentage to 20 percent by 2025. An ambitious plan for an economy still reeling from the 2001 default. This case describes the business friendly Macri administration's strategy to attract private investment in the nascent renewable energy sector, under challenging macroeconomic conditions. Sequel is forthcoming. -
Kazakhstan Railways: From the Middle of Nowhere to a Center of Trade?
This case describes the evolution of Kazakhstan's rail connectivity strategy post-collapse of the Soviet Union and its now central role in China's Belt and Road Initiative. This meant shifting from a north-south orientation towards east-west, as well as the development of new border-crossing facilities, special economic zones, and a new middle route that crossed the Caspian Sea. Unlike many other BRI initiatives that involved loans from China, Kazakhstan funded the modernization and upgrade by itself. Now the question was how soon demand would grow to fill the waiting capacity, as other bottlenecks on the Trans-Eurasian land route connecting China with Europe were beyond the country's control. -
Immigration Policy in Germany (B)
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Huawei and the U.S.-China Trade War
In 2019, Chinese smartphone maker and telecommunications empire Huawei was preparing to launch its new flagship smartphone series, the Mate 30. After years of explosive growth, the previous 18 months had been a challenge for the company. In early 2018, Huawei's planned smartphone launch in the U.S. had failed due to pressure from regulators who cited concerns about the company facilitating Chinese spying. Over the following months, a trade war between the U.S. and China had broken out, with Huawei at its epicenter. By mid-2019, after months of U.S. pressure and restrictions, Huawei found its supply chain for computer parts and software under siege and several governments around the world threatened to ban its 5G network equipment from their countries. In this unpredictable climate, Huawei founder Ren Zhengfei and his management team had to figure out not only how to successfully launch Mate 30 phones in the upcoming fall, but how to ensure the company's long term viability. -
Restructuring Mass Transit in Singapore (Abridged)
In July 2016, Singapore's Minister for Transport announced that Singapore Mass Rapid Transit Ltd (SMRT) had agreed to sell its trains, tracks, and other operating assets to the government for $1 billion. SMRT would continue to operate and maintain MRT services but as an "asset light" company with the government responsible for financing the assets needed and leasing them to the company. Five months later, Temasek Holdings, Singapore's sovereign wealth fund, purchased the remaining shares of SMRT and delisted the company from the Singapore stock exchange. The two 2016 reforms were just the latest developments in a several decades-long debate about how best to provide high-quality and affordable MRT services in Singapore. The current round had begun several years earlier when SMRT suffered a series of breakdowns that left hundreds of thousands of passengers stranded, in some cases waiting hours in darkened tunnels until they were evacuated. A Commission of Inquiry blamed inadequate maintenance by SMRT, but the key questions were what were the underlying forces that led to the poor maintenance and breakdowns and would the creation of an asset-light, government-owned company help address them? Case number 2110.3 -
Global Climate Cooperation and Conflict: Brazil and the Paris Agreement
It is March 2019, and Jair Bolsonaro, Brazil's newly elected president, is deciding what to do about Brazil's participation in the 2016 Paris Agreement on climate change. Bolsonaro must weigh the economic and political costs and benefits of taking drastic action to curb environmentalism and environmental protections in Brazil. Exiting from the Paris Agreement would provide far greater freedom to reboot Brazil's economy, which is one of Bolsonaro's campaign promises. Ignoring climate change would enhance Bolsonaro's ability to roll back fines and regulations aimed at protecting the Amazon Basin, the world's largest carbon sink. This move would likely boost his popularity with the agribusiness sector, but draw ire from social and labor groups in Brazil that have fought long and hard to improve environmental protection throughout the country. And there are broader international considerations: Would leaving Paris mean objections from trading partners and the broader global community? -
Malaysia: An "Asian Tiger" Reawakens
On May 9th, 2018, in an extraordinary upset, Mahathir Mohamad again became Malaysia's Prime Minister. Najib Razak, who had headed the government since 2009, had been swept up in the 1MDB scandal - perhaps the biggest state-corruption incident in history. Although Malaysia's growth had remained solid since the financial crisis, the scandal undermined the budget, the country's debt position, and foreigners' willingness to invest. What was it in the history, culture and institutional structure of the country that had allowed 1MDB to happen. And could the 93 year-old Mahathir get the country back on track? -
Evaluating the Impact of Solar Lamps in Uganda
IDinsight, an evaluation company founded by graduates of the Harvard Kennedy School, designs and conducts evaluations that best suit the needs of clients across the developing world, offering timely and rigorous evidence to help decision making. In 2014, USAID approached IDinsight to conduct an evaluation of an affordable solar lantern developed by another social organization, d.light. IDinsight would have to assess whether d.light's innovation was worth subsidizing and scaling in other parts of Africa and the world. This case describes the decisions and challenges IDinsight faced when conducting the evaluation and presents the results of the evaluation for students to consider. This case includes a 10:45 min. video where Neil Buddy Shah, CEO and Co-Founder of IDinsight, describes the company's approach to evaluating anti-poverty programs in developing countries. Shah also explains what evaluation design was ultimately chosen, why, and what the results of the evaluation were. Segments from the video can be used as a way to reveal this information as part of the class discussion. -
Integrating Renewable Energy in Argentina
In 2015, Mauricio Macri became President of Argentina and declared solving the energy crisis as one of his top priorities. When Macri's administration attempted to raise utility tariffs, however, it faced loud protests from citizens. In search of solutions to growing shortages, the government seized on Argentina's still largely untapped, but potentially vast renewable energy sector and created an ambitious program called RenovAr (renew in Spanish). By 2016, the country's share of renewable energy stood at less than 2 percent of the power mix. RenovAr's goal was to raise that percentage to 20 percent by 2025. More renewable energy in the electric system was a welcome improvement, but seamlessly integrating renewables into electricity grids had proven challenging in many countries. Argentina's cash-strapped wholesale electricity market, which for the better part of two decades had seen few upgrades, would have to contend with a host of expected and unexpected bottlenecks. -
A Puzzle Too Complex? James Baker's Mediation Mission in Western Sahara, 1997-2004
An uneasy ceasefire has held in Western Sahara since 1991, largely preventing a resumption of armed conflict. Yet a final status agreement to sustainably resolve the conflict has proved elusive. This case describes the strategy and tactics employed by former U.S. Secretary of State James Baker to mediate an end to the Western Sahara territorial dispute from 1997 to his resignation as UN Secretary-General Kofi Annan's Personal Envoy in 2004. A highly skilled and accomplished international diplomat, Baker's attempts to resolve the Western Sahara conflict were ultimately unsuccessful. The case maps out a complex web of relationships between Morocco, Algeria, Mauritania, the US, France, UK, Spain and the "Frente Polisario" movement in Western Sahara. Every time the negotiations appeared to take a step forward, the process was put two steps back a matter of weeks or months later. Little changed on the ground in Western Sahara. The obstacles to determining the final status of the disputed territory had only grown increasingly entrenched during Baker's fruitless efforts to negotiate a solution. Through the late 2010s, Western Sahara continues to be an important, if relatively neglected, conflict in the Middle East and North Africa region. -
At a Crossroads: General Motors and the Trump Administration's Fuel Economy Standards
This case focuses on the introduction of the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule in 2018 and General Motors' (GM's) challenge regarding how to best respond during the proposed rule's public comment period. GM, a company committed to a vision of zero crashes, zero emissions, and zero congestion, can respond to the SAFE public comment period in one of four ways: support the new SAFE standards, favor maintaining the status quo Corporate Average Fuel Economy (CAFE) standards, propose a National Zero Emission Vehicle (NZEV) program, or opt to say nothing. The case presents GM's company history, the history of U.S. fuel economy standards, the electric vehicle market, and an overview of the stakeholder landscape surrounding this issue. Students will explore how sustainability, government, and business interconnect when making a policy recommendation that will not only affect GM's business but also the trajectory of sustainability within the auto industry as a whole. -
Liberté, égalité, fragilité: The Rise of Populism in France (B)
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A Note on U.S. Bankruptcy Law: Individuals, Firms, and Sub-State Entities
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Paying to Improve Girls' Education: India's First Development Impact Bond
In 2013, Educate Girls (an Indian nonprofit working to increase the number of girls enrolled and learning in school), partnered with Instiglio, a startup specializing in financial instruments for social programs in developing countries to create the first Development Impact Bond-a financial instrument similar to a Social Impact Bond. UBS Optimus, a Swiss foundation, agreed to act as the investor and the London-based Children's Investment Fund Foundation would reimburse UBS Optimus' initial investment and pay returns if Educate Girls met or exceeded a set of predetermined goals. Instiglio would broker the deal and IDinsight, a new evaluation organization would conduct the evaluation. Agreeing on the evaluation design, however, proved challenging. An evaluation was vital to the DIB because success payments hinged on its findings, but Educate Girls was concerned that the investors and evaluators were not considering the realities of program implementation when proposing complex evaluation methods. Whereas, the investors and evaluators were not interested in backing a DIB where the impact findings could be open to question. This case places students in the decision room with the DIB parties and asks them to grapple with the tradeoffs social organizations and evaluators often have to face. The 8-minute video supplement can be used toward the end of the class discussion to reveal to students how the parties resolved their differences and signed on to the DIB. -
The Rohingya Refugee: Past, Genocide, Future
In August 2017, the Myanmar military commenced a brutal pogrom of the Rohingya minority in Rakhine State, Myanmar. The genocidal campaign marked the most recent and decisive of a series of ethnic cleansing efforts fueled by contention around race, religion, and national identity. Yet the violence came as a shock to the international world, who had watched Myanmar emerge out of a decades-long oppressive military dictatorship into an economically and socially liberalizing democracy in recent years.<br/><br/> Within three months, neighboring Bangladesh found themselves the home of 750,000 Rohingya who had fled across the border. A developing nation of 165 million, it struggled to allocate resources to what became the largest refugee camp in the world. As the Myanmar government navigated international outcry against and domestic support for the violence, Bangladesh navigated its next steps: should it allow the refugees to remain, or should they send them back? And what role did international actors, many of whom had economic stakes within Myanmar, play in this humanitarian crisis?