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602. Carbon Pricing During an Energy Crisis
- Author:
- Harrison Fell and Pierre Noel
- Publication Date:
- 03-2022
- Content Type:
- Commentary and Analysis
- Institution:
- Center on Global Energy Policy (CGEP), Columbia University
- Abstract:
- The European energy crisis, aggravated by the Russian invasion of Ukraine, amplifies the tension between climate mitigation action and energy affordability. Introducing a more effective safety valve to the EU carbon market could reduce affordability concerns and the political pressure associated with extreme price spikes, making the system more resilient. It could be accompanied by a more effective price floor too.
- Topic:
- Energy Policy, International Trade and Finance, Conflict, Carbon Emissions, and Energy Crisis
- Political Geography:
- Europe
603. Energy Markets and the Design of Sanctions on Russia
- Author:
- Christof Ruhl
- Publication Date:
- 03-2022
- Content Type:
- Commentary and Analysis
- Institution:
- Center on Global Energy Policy (CGEP), Columbia University
- Abstract:
- Sanctions against the citizens, institutions, and products of the Russian Federation are evolving rapidly. Energy sanctions started late, but the number of countries embargoing oil, gas, or coal imports from Russia is expanding. These sanctions are likely to increase global fuel prices while depressing the price of the sanctioned fuel. The experience to date suggests that the current, gradual approach of reducing oil and gas imports from Russia one country at a time may have room to go further. Before the invasion of Ukraine, the sweeping and unprecedented sanctions promised in the event of a Russian invasion were often conceived as a two-pronged pincer movement. The idea was to isolate Russia from the global financial system while limiting its commodity and energy exports. Both moves were aimed at the source of the financial strength of “fortress Russia,” namely, its persistent balance of payment surplus.
- Topic:
- Energy Policy, International Trade and Finance, Sanctions, Financial Markets, and Conflict
- Political Geography:
- Russia and Europe
604. Mine Action as a Confidence- and Security-building Measure in the OSCE Region
- Author:
- Claudia Ditel
- Publication Date:
- 01-2022
- Content Type:
- Policy Brief
- Institution:
- The Geneva Centre for Security Policy
- Abstract:
- Landmines are designed to maim or kill indiscriminately and can lie inactive in the soil for years. As such, they represent a constant threat to local populations, restrict people’s freedom of movement, and pose an obstacle to the return of refugees and to development during post- conflict reconstruction.1 Currently tens of millions of landmines have been laid in more than 60 countries and many of them are still unmapped.2 Among the most contaminated countries worldwide, four are in the OSCE region: Azerbaijan, Bosnia and Herzegovina, Croatia, and Turkey. Armenia, Ukraine, and Georgia are also highly contaminated.3 In addition, several OSCE countries (Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Russia, the United States, and Uzbekistan) did not join the Anti-Personnel Mine Ban Convention (generally known as the Ottawa Convention), which bans the use, production, stockpiling, and transfer of anti-personnel landmines; encourages mutual assistance among states parties to destroy existing landmines and stockpiles as soon as possible; and provides assistance to mine victims.4 Some of the non-signatory states are engaged in protracted conflicts in which the OSCE has played a role for years as mediator or facilitator in negotiations. This paper investigates whether mine action could be implemented as a CSBM as part of conflict transformation in the OSCE region, taking three post-Soviet ethnic conflicts as case studies (Georgia, Eastern Ukraine, and Nagorno-Karabakh), where the problem of landmines and protracted conflicts are two interconnected dimensions of the same complex scenario, although with the possibility of generalising results to other areas. The study starts by illustrating the evolution of mine action and then moves on to address the multitrack approach to peacebuilding to explain how this can be combined with mine action. By reviewing the literature on conflict transformation and good practices worldwide, the study concludes that there is sufficient ground to consider mine action to be a promising CSBM in the OSCE area.
- Topic:
- Defense Policy, Diplomacy, United Nations, Military Strategy, Conflict, Peace, Landmines, and OSCE
- Political Geography:
- Europe
605. Russia’s War in Ukraine: Identity, History, and Conflict
- Author:
- Jeffrey Mankoff
- Publication Date:
- 04-2022
- Content Type:
- Commentary and Analysis
- Institution:
- Center for Strategic and International Studies
- Abstract:
- Russia’s invasion of Ukraine constitutes the biggest threat to peace and security in Europe since the end of the Cold War. On February 21, 2022, Russian president Vladimir Putin gave a bizarre and at times unhinged speech laying out a long list of grievances as justification for the “special military operation” announced the following day. While these grievances included the long-simmering dispute over the expansion of the North Atlantic Treaty Organization (NATO) and the shape of the post–Cold War security architecture in Europe, the speech centered on a much more fundamental issue: the legitimacy of Ukrainian identity and statehood themselves. It reflected a worldview Putin had long expressed, emphasizing the deep-seated unity among the Eastern Slavs—Russians, Ukrainians, and Belarusians, who all trace their origins to the medieval Kyivan Rus commonwealth—and suggesting that the modern states of Russia, Ukraine, and Belarus should share a political destiny both today and in the future. The corollary to that view is the claim that distinct Ukrainian and Belarusian identities are the product of foreign manipulation and that, today, the West is following in the footsteps of Russia’s imperial rivals in using Ukraine (and Belarus) as part of an “anti-Russia project.” Throughout Putin’s time in office, Moscow has pursued a policy toward Ukraine and Belarus predicated on the assumption that their respective national identities are artificial—and therefore fragile. Putin’s arguments about foreign enemies promoting Ukrainian (and, in a more diffuse way, Belarusian) identity as part of a geopolitical struggle against Russia echo the way many of his predecessors refused to accept the agency of ordinary people seeking autonomy from tsarist or Soviet domination. The historically minded Putin often invokes the ideas of thinkers emphasizing the organic unity of the Russian Empire and its people—especially its Slavic, Orthodox core—in a form of what the historian Timothy Snyder calls the “politics of eternity,” the belief in an unchanging historical essence. The salience that Putin and other Russian elites assign to the idea of Russian-Ukrainian-Belarusian unity helps explain the origins of the current conflict, notably why Moscow was willing to risk a large-scale war on its borders when neither Ukraine nor NATO posed any military threat. It also suggests that Moscow’s ambitions extend beyond preventing Ukrainian NATO membership and encompass a more thorough aspiration to dominate Ukraine politically, militarily, and economically. It also helps explain Russia’s military strategy. Moscow appeared to calculate that enough Ukrainians, at least in the eastern part of the country, would accept some form of reintegration into a Russian sphere of influence because of shared cultural, linguistic, religious, and other ties with Russia. Despite pre-war polls showing large numbers of Ukrainians willing to take up arms to defend their country against a Russian invasion, Moscow’s wager was not entirely implausible given the recentness of the shift and the persistence of family and other ties across the Russian-Ukrainian border. Nonetheless, Russia’s war has become bogged down in no small part because this calculation about Ukrainian identity has proven dramatically wrong.
- Topic:
- War, Military Strategy, Hegemony, Conflict, Rivalry, and Strategic Interests
- Political Geography:
- Russia, Europe, and Ukraine
606. The Ukraine War: Preparing for the Longer-Term Outcome
- Author:
- Anthony H. Cordesman
- Publication Date:
- 04-2022
- Content Type:
- Working Paper
- Institution:
- Center for Strategic and International Studies
- Abstract:
- It is far too early to predict the ultimate outcome of the Ukraine War, but it is all too clear that no peace settlement or ceasefire is likely to eliminate a long period of military tension between the U.S. – including NATO and its allies – and anything approaching President Putin’s future version of Russia, nor will any resolution of the current conflict negate the risk of new forms of war. It is equally clear that the U.S. and NATO need to act as quickly as possible to prepare for an intense period of military competition and must create a more secure deterrent and improve their capability to defend against Russia. In practice, NATO will need to make up for years of underfunding by each member country and for the cuts in force levels, readiness, and modernization that years of a U.S.-driven focus on burden-sharing – rather than funding NATO’s real military priorities – did little or nothing to address. NATO will need to find new ways to counter the massive problems in interoperability and differences in comparative warfighting that still exist between NATO’s 30 nations. This will need to be accomplished at a time when emerging and disruptive technologies (EDTs) are constantly changing the nature of deterrence and warfighting, when Russia is actively pursuing nuclear modernization rather than arms control, and when NATO’s more advanced forces are struggling to create new approaches to joint all-domain command and control (JADC2) – and all while doing so at a time when most member countries have limited capabilities to support their existing force structure. At best, developing and sustaining any coherent effort to deal with these issues will take at least five years to implement. It then will require constant updating on an annual basis as new types of technology, tactics, and command and control continue to reshape military needs and force plans. This, in turn, requires sustained political and popular support in the face of inflation and civil needs during a time when the momentum for military change created by the current fighting in Ukraine may have faded. In some ways, the only thing harder than crisis management is the lack of crisis management.
- Topic:
- War, Military Strategy, Conflict, and Strategic Interests
- Political Geography:
- Russia, Europe, and Ukraine
607. EU carbon border adjustment mechanism faces many challenges
- Author:
- Gary Clyde Hufbauer, Jeffrey J. Schott, Megan Hogan, and Jisun Kim
- Publication Date:
- 10-2022
- Content Type:
- Policy Brief
- Institution:
- Peterson Institute for International Economics
- Abstract:
- This Policy Brief assesses the evolving EU Emissions Trading System and EU carbon border adjustment mechanism (CBAM) and explains objections within Europe and from major trading countries likely to be affected by the proposed CBAM import levies. While EU officials have sought to ensure that the CBAM is consistent with obligations under the World Trade Organization (WTO), key aspects of the CBAM could violate WTO rules and are likely to be contested, taking years to play out. Meanwhile, several other countries will adopt new carbon-inspired border restrictions, adding to global trade frictions. Major carbon-emitting countries, therefore, need to act cooperatively instead of unilaterally to both advance the fight against climate change and update the rules-based global trading system. Two-thirds of greenhouse gas emissions result from nontraded activities, such as road transport, electricity generation, and home and office heating. Countries can curb emissions in these activities, while developing guidelines for carbon abatement in traded sectors.
- Topic:
- Climate Change, Economics, International Trade and Finance, World Trade Organization, European Union, and Carbon Emissions
- Political Geography:
- Europe
608. Is South Korea vulnerable to EU and US carbon border restrictions?
- Author:
- Jeffrey J. Schott and Megan Hogan
- Publication Date:
- 07-2022
- Content Type:
- Policy Brief
- Institution:
- Peterson Institute for International Economics
- Abstract:
- South Korean exports, especially carbon-intensive products like steel, are increasingly vulnerable to both the European Union’s proposed carbon border adjustment mechanism (CBAM)—set to begin on January 1, 2023—and the proposed Clean Competition Act (CCA) before the US Congress. Schott and Hogan caution that Korean exporters should not count on Korea’s decade-old EU and US free trade agreements (FTAs), nor on the multilateral trading rules of the World Trade Organization (WTO), to protect them from new carbon-based import barriers in key foreign markets. The WTO and the FTAs have broad and loosely defined exemptions for environmental protection. Nor is Korea likely to be shielded by its own cap-and-trade emissions trading system (the K-ETS), because of extensive use of free allowances and large differences between EU and Korean carbon prices. While the threat the EU CBAM poses to Korean exports is imminent, passage of the CCA faces major legislative obstacles. But US imports of Korean steel and other carbon-intensive goods are still subject to climate-related duties at the US border under US unfair trade statutes. The US Department of Commerce has ruled that free allowances issued under the K-ETS (and EU ETS) are implicit subsidies that can be offset by countervailing duties. These charges are in addition to the harsh tariff-rate quotas on imported Korean steel applied under the “national security” authority of Section 232 of US trade law, which are more restrictive than measures imposed against European and other steel exporters. The authors suggest relaxing these US barriers, as they have been for shipments from Europe, in return for Korean participation in the nascent US-EU talks to establish a “Global Arrangement on Sustainable Steel and Aluminum.”
- Topic:
- Economics, International Trade and Finance, European Union, Exports, and Carbon Emissions
- Political Geography:
- Europe, Asia, South Korea, and United States of America
609. Iranian Public Opinion on the War in Ukraine and Nuclear Options
- Author:
- Nancy Gallagher, Ebrahim Mohseni, and Clay Ramsay
- Publication Date:
- 08-2022
- Content Type:
- Working Paper
- Institution:
- Center for International and Security Studies at Maryland (CISSM)
- Abstract:
- The current survey is an Update, rather than a comprehensive check on Iranian public attitudes. This interim report covers findings on two unfolding security challenges – Iran’s nuclear program and the war in Ukraine – and their potential interconnections.
- Topic:
- Nuclear Weapons, Military Strategy, Public Opinion, and Conflict
- Political Geography:
- Europe, Iran, Ukraine, and Middle East
610. Ukraine on the Way To the EU: Realities And Prospects
- Author:
- O. Pashkov, K. Markevych, P. Stetsiuk, S. Chekunova, Mykola Sunhurovskyi, L. Shanghina, and O. Shnyrkov
- Publication Date:
- 06-2022
- Content Type:
- Journal Article
- Journal:
- National Security and Defence
- Institution:
- Razumkov Centre
- Abstract:
- The Ukrainian experience of European integration in the conditions of war is unique. The country resisting the large-scale armed Russian aggression, suffering huge human, financial and economic losses, acquired the status of a candidate for accession to the EU, continues European integration, deepens partnership with the EU in different sectors, implements recommendations of the European Commission and introduces provisions of the Agreement of Association into practice. The beginning of negotiations on accession to the EU, further implementation of pro-European reforms in different areas, adaptation to the European Union acquis, etc. are to follow
- Topic:
- European Union, Regional Integration, European Commission, Regional Politics, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
611. Political and Ideological Orientations of Ukrainian Citizens in the Conditions Of The Russian Aggression
- Author:
- Yuri Yakymenko, A. Bychenko, V. Zamiatin, M. Mishchenko, O. Ruzumnyi, P. Stetsiuk, and L. Shanghina
- Publication Date:
- 12-2022
- Content Type:
- Journal Article
- Journal:
- National Security and Defence
- Institution:
- Razumkov Centre
- Abstract:
- The all-out Russian armed aggression against Ukraine that began on February 24, 2022, has fundamentally changed the situation in Ukraine and the world. Thousands of Ukrainians were killed, many fell victims to torture and inhuman treatment, millions left the country, saving their lives from the war, the aggressor forcibly deported from Ukraine thousands of adults and children.
- Topic:
- Politics, Public Opinion, Ideology, Civilians, Social Cohesion, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
612. So close and yet so far: the ability of mandatory disclosure rules to crack down on offshore tax evasion
- Author:
- Elisa Casi, Mohammed Mardan, and Rohit Reddy Muddasani
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- We study the short-term effect of the introduction of the mandatory disclosure programme for aggressive tax arrangements by focusing on the one introduced in May 2018 under Council Directive 2018/288/EU (or DAC6). Employing bilateral data on cross-border deposits, we study the effect of this new disclosure requirement on cross-border tax evasion. Our results show a reduction of cross-border deposits in EU countries with strong enforcement, captured by large monetary penalties for misreporting. At the same time, we document a relocation of income and wealth to countries with limited intermediary reporting obligations. Finally, we detect a shortterm increase of US$14 billion in cross-border deposits held in countries offering citizenship/residence by investment programmes, suggesting the use of these schemes as regulatory arbitrage to circumvent the disclosure mandated under DAC6. We provide timely and relevant evidence contributing to the debate on international administrative cooperation to reduce cross-border tax evasion.
- Topic:
- European Union, Finance, Banking, Tax Evasion, and Administrative Cooperation
- Political Geography:
- Europe and Global Focus
613. Narrative Warfare: How the Kremlin and Russian news outlets justified a war of aggression against Ukraine
- Author:
- Nika Aleksejeva and Andy Carvin
- Publication Date:
- 02-2022
- Content Type:
- Special Report
- Institution:
- Atlantic Council
- Abstract:
- In the weeks and months leading up to Russia invading Ukraine on February 24, 2022, the Kremlin and pro-Kremlin media employed false and misleading narratives to justify military action against Ukraine, mask the Kremlin’s operational planning, and deny any responsibility for the coming war. Collectively, these narratives served as Vladimir Putin’s casus belli to engage in a war of aggression against Ukraine. To research this report, the Digital Forensic Research Lab (DFRLab) identified recurring pro-Kremlin narratives over two timeframes: the 2014–2021 interwar period and the seventy days leading up to the 2022 invasion. For the interwar period, we reviewed more than 350 fact-checks of pro-Kremlin disinformation. We then collected more than ten thousand examples of false and misleading narratives published by fourteen pro-Kremlin outlets over the seventy-day pre-invasion period. To understand how these narratives evolved, we catalogued them by themes, sub-narratives, and relationships to pre-invasion escalatory events. This allowed us to produce a timeline of false and misleading Kremlin narratives encompassing the year leading to the invasion, showing how Russia weaponized these narratives as its actions on the ground escalated toward war.
- Topic:
- News Analysis, Conflict, Narrative, Information Warfare, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
614. BRICS and Global Health Diplomacy in the Covid-19 Pandemic: Situating BRICS’ diplomacy within the prevailing global health governance context
- Author:
- Candice Moore
- Publication Date:
- 10-2022
- Content Type:
- Journal Article
- Journal:
- Revista Brasileira de Política Internacional (RBPI)
- Institution:
- Instituto Brasileiro de Relações Internacionais (IBRI)
- Abstract:
- BRICS have been cast as a bloc with the potential to make significant changes in Global Health. The management of the Covid-19 pandemic has shown divisions in the bloc and the limits of its ability to formulate policies or even act upon previously agreed positions. This paper employs an examination of BRICS Health Ministerial declarations and an analysis of power in International Relations to reflect on BRICS’ Global Health diplomacy during the Covid-19 pandemic, covering the key questions of vaccine research and development, vaccine nationalism, and travel bans. It finds that multiple dimensions of power matter in Global Health leadership.
- Topic:
- Health, International Cooperation, Governance, Pandemic, COVID-19, and BRICS
- Political Geography:
- Africa, Russia, China, Europe, India, Asia, South Africa, Brazil, and South America
615. Hackers, Hoodies, and Helmets: Technology and the changing face of Russian private military contractors
- Author:
- Emma Schroeder, Gavin Wilde, Justin Sherman, and Trey Herr
- Publication Date:
- 07-2022
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- The first time Russia invaded Ukraine in the twenty-first century, the Wagner Group was born. The now widely profiled private military company (PMC) played an important role in exercising Russian national power over the Crimea and portions of the Donbas—while giving Moscow a semblance of plausible deniability. In the near decade since, the Russian PMC sector has grown considerably, and is active in more than a dozen countries around the world. PMCs are paramilitary organizations established and run as private companies—though they often operate in contract with one or more states. They are profit-motivated, expeditionary groups that make a business of the conduct of war.1 PMCs are in no way a uniquely Russian phenomenon, yet the expanding footprint of Russian PMCs and their links to state interests call for a particularly Russian-focused analysis of the industry. The growth of these firms and their direct links to the Kremlin’s oligarch network as well as Moscow’s foreign media, industrial, and cyber activities present a challenge to the United States and its allies as they seek to counter Russian malicious activities abroad. As signals intelligence and offensive cyber capabilities, drones and counter-drone systems, and encrypted communications become more accessible, these technologies will prove ever more decisive to both battlefield outcomes and statecraft. More exhaustive research on these issues is necessary. The ongoing conflict resulting from Russia’s second invasion of Ukraine in this young century seems likely to shape the conduct of Russian foreign policy and security behavior for years to come—and these firms will play a part. The activities of these PMCs include high-intensity combat operations, as evidenced in Syria in 2018 and Ukraine in 2022, and a mix of population control, escort and close protection, and local direct-action activities, as seen in Libya, Mali, and elsewhere.2 Given the sourcing and dependence of Russian PMCs on Russian military service personnel and no small influence of Russian doctrine, the questions to reasonably ask include: How do changes in the Russian conduct of war and adoption of new technologies influence these PMCs? Moreover, how might these technological changes influence the role these PMCs play in Russian strategic goals and activity abroad?
- Topic:
- Security, Defense Policy, Science and Technology, Cybersecurity, Innovation, Wagner Group, Russia-Ukraine War, and Private Military Companies (PMCs)
- Political Geography:
- Russia, Europe, Eurasia, Ukraine, Middle East, and Africa
616. Beyond munitions: A gender analysis for Ukrainian security assistance
- Author:
- Cori Fleser
- Publication Date:
- 08-2022
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- From the hospitals of Mariupol to the streets of Bucha, the Russian war in Ukraine has extracted an unacceptably high cost, while banding NATO allies and partners together in an unprecedented tide of support. In bilateral and multilateral security assistance packages, the transatlantic community has sent Ukraine javelins, High-Mobility Artillery Rocket Systems (HIMARs), and all manner of weapons to defend against the Russian invasion. Still, Russia’s war continues against the nation of Ukraine and its people. So how should future military assistance account for the different impacts of the war on Ukrainian civilians? What strategies remain for NATO allies and partners to enhance their support beyond weapons and materiel? The answers lie in using gender analyses to zero in on the unique human security challenges facing Ukraine. When we overlook the role of gender in conflict, we miss the opportunity to both lead with our values and make our military support more effective. Applying a gender analysis to our security assistance is a solution that allies and partners have already agreed to implement in forums from the United Nations to NATO. In fact, it’s a tool that many allies have already developed within their own militaries. Now is the time to employ it in support of Ukraine. This starts with acknowledging the Women, Peace, and Security (WPS) Agenda. The WPS Agenda, passed under United Nations Security Council Resolution 1325 in 2000, recognizes the disproportionate impact of conflict on women and girls, and their critical role in reconstructing societies. Militaries can apply gender analyses to better understand and tailor assistance to the unique security environments in which they operate. To help policymakers think through how a gender analysis can shape what security assistance should look like—and, in many cases, how allied militaries can implement solutions at scale, and consistent with political decisions that have already been made—we are proud to offer this issue brief. Our intention is to demonstrate to global decision makers that incorporating gender can and should be integrated in real-time conflicts to achieve real results. Our support to Ukraine must not waver, but more can be done to mitigate the severe impact of Russia’s war on the Ukrainian people. Allies and partners already have the political mandate to integrate the WPS Agenda into their operations. They already have the tools, training, and technical expertise to implement it in the field. The next step is making this common practice. This issue brief spells out ten steps for how to do so in Ukraine.
- Topic:
- Security, Defense Policy, NATO, Women, Partnerships, Resilience, Society, Gender, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
617. Sweden and Finland are on their way to NATO membership. Here’s what needs to happen next.
- Author:
- John R. Deni
- Publication Date:
- 08-2022
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- Sweden and Finland have just cleared a big hurdle on their path to NATO membership with the US Senate’s overwhelming vote to welcome them into the Alliance. While several other allies still need to ratify the expansion, Finnish and Swedish membership in NATO is now not a question of whether but when. Even though some analysts have posited that these two countries—especially Finland, which has an 830-mile border with Russia—bring disqualifying liabilities, most Alliance leaders, NATO-watchers, and European security experts argue these newest aspirants will strengthen the Alliance. This is especially so in terms of military capabilities and capacity, but also in terms of strategic culture and geostrategic outlook. Nonetheless, in the days, weeks, and months after Finland and Sweden officially become members, there is an array of subsequent questions that these two aspirants, other allies, and NATO as an organization will need to consider—and ultimately answer. After examining the key strengths that Finland and Sweden are likely to bring into NATO, this issue brief will consider several of these critical topics. These include defense planning, operational planning, and readiness concerns.
- Topic:
- Security, Defense Policy, NATO, Diplomacy, National Security, Politics, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, Eurasia, Ukraine, Finland, and Sweden
618. Will economic statecraft threaten western currency dominance? Sanctions, geopolitics, and the global monetary order
- Author:
- Carla Norrlof
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- Atlantic Council
- Abstract:
- The return of great power rivalry is stoking renewed fears of weakening Western currency dominance. Financial sanctions are becoming the preferred economic tool for accomplishing geopolitical goals. These instruments are especially popular with the United States and Europe. In response, rival great powers, notably China and Russia, are diversifying away from Western currencies and developing counterstrategies to maintain economic and foreign policy autonomy. As other countries are hit by increasingly punishing Western sanctions, the incentive to join Russia and China’s alternative international monetary order increases. New analysis, published in this report, shows early signs that some countries may be trying to diversify away from the dollar. A growing circle of countries attempting to evade the Western-centric financial and currency order may over time erode the dollar and the euro’s sizeable lead, though will likely fall well short of ending their global dominance. This report analyzes these trends and quantifies the extent of reserve diversification following Russia’s 2022 war on Ukraine. It also assesses the polarity of the international currency order since the onset of the euro in 2002. Reserve diversification out of the dollar, and into the euro, has been modest, though Chinese renminbi reserves grew after Russia’s February offensive in Ukraine. Dollar unipolarity declined acutely in 2017 as the number of countries sanctioned by the United States increased and the US President Donald J. Trump threatened to revoke alliance commitments. Using economic statecraft while retaining global economic influence will require the United States to keep its economic house in order and allies close, if the current unipolar currency order is to survive.
- Topic:
- Economics, Monetary Policy, Sanctions, and Geopolitics
- Political Geography:
- China, Europe, and Asia
619. The international role of the euro and the dollar: Forever in the lead?
- Author:
- Martin Mühleisen
- Publication Date:
- 09-2022
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- The international monetary system has been surprisingly resilient over the past two years, considering the size of pandemic and geopolitical shocks that hit markets during this period. Liquidity injections by the major central banks helped stabilize economic activity and avoid disruptions to capital flows or foreign exchange markets. Major exchange rates remained range-bound throughout most of the crisis, even if the dollar has appreciated sharply in recent months. Volatility is likely to pick up as monetary policy responds to high inflation, but there should be no doubt that the dollar-based monetary order has withstood a major test during the past two years. This feat has been even more remarkable as the global security landscape has deteriorated in dramatic fashion, and Russia’s invasion of Ukraine has brought international tensions to a level not seen since the 1961 Cuban missile crisis. Moreover, while the dollar’s safe haven status remains firmly established, the center of global economic activity has been shifting east. Asia has become an economic powerhouse, and China is on course to become the world’s largest economy over the next few years. It is a natural question whether China will challenge the United States and Europe for global economic leadership, and whether the renminbi will appear as a leading, if not dominant, currency. This paper argues that this is unlikely for the foreseeable future, in part because a larger global role for the renminbi would be inconsistent with the Chinese leadership’s current policy priorities. However, there is no room for complacency. With the post-World War II international order in gradual decline, the world could again reach a moment where unforeseen geopolitical events might lead to changes in long-held political and economic paradigms. The United States and Europe can reduce this risk by making their growth models more robust and sustainable. Moreover, keeping their global alliances intact could prevent a loss of influence that has heralded changes in the international monetary system in the past.
- Topic:
- Economic Growth, Currency, Financial Institutions, Digital Policy, Digital Currency, Dollar, and Euro
- Political Geography:
- Europe and United States of America
620. Privacy in cross-border digital currency: A transatlantic approach
- Author:
- Giulia Fanti and Nadia Pocher
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- Atlantic Council
- Abstract:
- As a growing number of countries explore Central Bank Digital Currencies (CBDCs) for the domestic context, multi-country cross-border CBDCs pilots are also proliferating. Cross-border CBDCs could make cross-border payments faster, cheaper, and simpler. However, for any cross-border CBDC to unlock these benefits and be widely adopted, it must address key concerns, chief among them risks around privacy and transparency of data. This article illustrates how various technical design choices can affect the privacy and transparency of cross-border CBDCs. For instance, architectural choices about the structure of a cross-border CBDC and representational choices about how transactions are encoded in the underlying software can have far-reaching implications for privacy and transparency—both in a domestic context and for cross-border transactions. Many of the cross-border CBDC pilot studies to date have (understandably) adopted the technical designs provided by enterprise distributed ledger platforms. However, some of these designs make tradeoffs regarding privacy, efficiency, and/or security. Whether these tradeoffs are acceptable is a matter of policy, and requires coordination between different regulators and central banks. In view of these implications—and some of the corresponding tensions that arise—we argue that the US and the EU should work together alongside other partners to create the technological and regulatory environment to enable privacy-preserving cross-border CBDCs. The US and the EU should seize the emergence of CBDCs as an opportunity to finally establish a transatlantic privacy framework, and clarify its interplay with the prevention of money laundering and financing of terrorism (AML/CFT/CPF). More broadly, both should harness the clout of their combined financial systems to develop digital asset regulation and standards with a global reach and democratic values. These regulatory developments would not only streamline regulatory guidelines, but they could also directly impact and ease the technical development of a cross-border CBDC.
- Topic:
- Privacy, Currency, Transatlantic Relations, and Digital Currency
- Political Geography:
- Europe, Canada, North America, and United States of America
621. Engaging the Pacific Islands is no longer about the why, but about the how
- Author:
- Marie Jourdain and Charles Lichfield
- Publication Date:
- 10-2022
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- Over the past year, US and European engagement in the South Pacific has noticeably accelerated. Wooing these islands away from Chinese influence is clearly a priority but there are many dimensions to this. The “Blue Pacific” is more than a consortium of scattered islands. They see themselves as large ocean states, which collectively make up the second-largest Exclusive Economic Zone in the world. While they are important as we game out Taiwan scenarios, the peoples of the South Pacific want their region to remain immune from “great-power games.” This calls for a subtle Transatlantic strategy emphasizing partnership. This report acknowledges the mistakes of past engagement strategies, which didn’t approach the region as a coherent whole, lacked sustained and continuous effort, and always came second to other priorities in the Indo-Pacific region.
- Topic:
- Security, Foreign Policy, Defense Policy, European Union, and Engagement
- Political Geography:
- Europe, United States of America, Indo-Pacific, and Pacific Islands
622. Securing alternative gas supplies and addressing critical infrastructure gaps in Europe
- Author:
- Richard L. Morningstar, András Simonyi, Olga Khakova, and Paddy Ryan
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- The Kremlin’s weaponization of natural gas exports to Europe as winter approaches has shattered any illusions that Russia could be a reliable supplier. Europe urgently needs to import gas from other suppliers to heat its homes and power its industry. In doing so, Europe can build a more secure and sustainable energy system while cutting off funds for Moscow’s war machine. Painfully high energy prices are already having a serious impact on quality of life and economic development in Europe. New natural gas supplies and expanded interconnections to bring them to market will drive down the costs of energy and reduce the likelihood of social unrest over energy poverty. The surest means to end Russia’s energy leverage over Europe include accelerating the green transformation, curtailing gas demand, and boosting energy efficiency. However, the continent cannot implement these changes overnight. Gas remains instrumental in Europe’s transition from dirtier fossil fuels, electrification of power-hungry sectors, and integration of large-scale intermittent renewables. Natural gas will likely remain a critical part of Europe’s power baseload for at least the medium term. Procuring an adequate supply of gas in the short to midterm is not at odds with the energy transition. Europe must cultivate alternative suppliers, build non-Russian-oriented import infrastructure, and accelerate decarbonization in tandem to boost energy security and affordability. Sourcing gas from non-Russian suppliers will sustain longer-term decarbonization efforts and prevent regression back to dirtier fuels amid the energy crunch. To diversify their energy systems, European states must determine how much Russian gas can be replaced and from where, as well as what new infrastructure will be necessary to enable new imports. The European Union (EU) needs to clearly articulate the anticipated natural gas supply gap to identify investment opportunities for the relevant market players. This issue brief examines potential sources of alternative gas supplies, the infrastructure required to bring new supplies to European consumers, and the financial and regulatory mechanisms needed to support diversification efforts. It offers recommendations for measures that European countries decoupling their energy supplies from Russia should take to give themselves the best chances of succeeding.
- Topic:
- Environment, Markets, Oil, Gas, Energy, and Energy Transition
- Political Geography:
- Europe
623. The Significance of Convening the European Union – Israel Association Council
- Author:
- Maya Sion-Tzidkiyahu
- Publication Date:
- 08-2022
- Content Type:
- Research Paper
- Institution:
- Mitvim: The Israeli Institute for Regional Foreign Policies
- Abstract:
- On July 18, 2022, the Foreign Affairs Council of the European Union (EU) decided to move ahead with convening the EU-Israel Association Council (AC) after a decade-long hiatus. What does this mean? What opportunities does it offer, and what were the costs of not convening it so far? This paper explains what the AC is, the reasons for its suspension and for the decision to re-convene it. Assuming it will re-convene, the paper recommends future measures between Israel and the EU.
- Topic:
- Foreign Policy, International Cooperation, European Union, and Economy
- Political Geography:
- Europe, Middle East, Israel, and Palestine
624. Democratic Backsliding and Securitization: Challenges for Israel, the EU, and Israel-Europe Relations
- Author:
- Muriel Asseburg and Nimrod Goren
- Publication Date:
- 07-2022
- Content Type:
- Research Paper
- Institution:
- Mitvim: The Israeli Institute for Regional Foreign Policies
- Abstract:
- The report “Democratic Backsliding and Securitization: Challenges for Israel, the EU and Israel-Europe Relations” analyses the illiberal trends and democratic backsliding that can be seen in both Europe and Israel. Over the course of a two year project, experts from Mitvim – The Israeli Institute for Regional Foreign Policies, Stiftung Wissenschaft und Politik (SWP, the German Institute for International and Security Affairs) as well as external experts reflected on the implications these developments have. The authors offer highly relevant recommendations and insights for anyone interested in EU-Israel relations, eroding democratic trends and securitization policies. The report specifically highlights the relationship between the EU and Israel and how these have adapted in light of the illiberal trends, also showing the impact and lack of prospect in light of Israeli-Palestinian peacemaking and advancement towards a resolution of the Palestinian struggle. The relevance of this report goes beyond the specific relations between the EU and Israel, however, also showing global tendencies. It demonstrates the eroding global democratic trend and impact on liberal values. Therefore, this report is not only a research but also a call to action to counter the negative trend in order to protect the liberties we have. Below you can find the full report, as well as three short policy briefs: one on Democracy and Foreign Affairs in Israel, one on Illiberalism in the EU and Israel, and one on the International Alliances with the Israeli left. The findings from this report were presented at both an international conference in Brussels on July 12th, and will be presented in the future in Jerusalem. Mitvim thanks PAX for Peace – Netherlands and the SWP for their continued partnership in creating this successful, collaborative work.
- Topic:
- International Relations, European Union, Securitization, and Democratic Backsliding
- Political Geography:
- Europe, Middle East, Israel, and Palestine
625. Europol-Israel Police Operational Agreement: Enhanced cooperation with EU in combatting crime and terrorism
- Author:
- Maya Sion-Tzidkiyahu
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- Mitvim: The Israeli Institute for Regional Foreign Policies
- Abstract:
- The Israeli Police and Europol, the European Union’s police agency, have been conducting negotiations over an operational agreement for several years. In September there was signing of end of negotiations, but in December the Council of the European Union decided to re-open the talks. In a global world where crime and terrorism cross borders, countries need to strengthen cooperation among themselves. Such inter-police cooperation takes on a unique form in the EU. The operational agreement between Israel’s Police and Europol can have considerable importance in contributing to the parties’ ability to deal with terror and crime. This paper will review Europol, its cooperation with Israel’s police and other enforcement agencies, including the negotiated agreement, the motivations for upgrading relations with Israel and the benefits and challenges of doing so.
- Topic:
- Crime, International Cooperation, Terrorism, Treaties and Agreements, European Union, Police, and Europol
- Political Geography:
- Europe, Middle East, Israel, and Palestine
626. The Significance of Convening the European Union – Israel Association Council
- Author:
- Maya Sion-Tzidkiyahu
- Publication Date:
- 08-2022
- Content Type:
- Policy Brief
- Institution:
- Mitvim: The Israeli Institute for Regional Foreign Policies
- Abstract:
- On July 18, 2022, the Foreign Affairs Council of the European Union (EU) decided to move ahead with convening the EU-Israel Association Council (AC) after a decade-long hiatus. What does this mean? What opportunities does it offer, and what were the costs of not convening it so far? This paper explains what the AC is, the reasons for its suspension and for the decision to re-convene it. Assuming it will re-convene, the paper recommends future measures between Israel and the EU.
- Topic:
- Foreign Policy, International Cooperation, and European Union
- Political Geography:
- Europe, Middle East, Israel, and Palestine
627. Processing Trade and Global Supply Chains: Towards a Resilient “GVC 2.0” Approach
- Author:
- Lucian Cernat
- Publication Date:
- 05-2022
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- In the current global context marked by economic fragility, growing uncertainty and geopolitical conflicts, ensuring the smooth functioning of global supply chains becomes more important than ever. Supply shortages, higher freight costs, higher commodity prices and strong demand increase will trigger inflationary pressures for all economic sectors dependent on global value chains (GVCs). As part of global efforts to enhance the resilience of GVCs, this paper makes the case for a broader discussion about the untapped potential of processing trade, a relatively unknown trade facilitation option available in many countries around the world. Processing trade has been credited with stimulating China’s participation in GVCs, in combination with foreign direct investment (FDI) attraction and industrial upgrading. However, processing trade is not just a Chinese phenomenon. In the EU, significant trade flows (over 200 billion euros in 2021 alone) benefitted from a double-digit trade cost reduction, thanks to the EU processing trade provisions. Different types of processing trade arrangements exist in over 70 countries worldwide (including in the EU), as a way to facilitate the integration of developing countries in global production chains. However, these unilateral schemes have different requirements and co-exist without any attempt to facilitate their inter-operability along complex global supply chains. This paper argues that there is a pressing need for a global reflection on how best to promote a better integration between these national processing trade schemes. One option is to promote a “GVC 2.0” approach that offers key recommendations and best practices for processing trade along GVCs. Such a coordinated “GVC 2.0” trade facilitation initiative would not only make GVCs more resilient for countries that depend on global sourcing for their critical economic activities, but it will also reduce the inflationary effect generated by the unnecessary trade costs associated with GVC activities.
- Topic:
- European Union, Economy, Trade, Resilience, and Supply Chains
- Political Geography:
- Europe
628. Has Globalisation Really Peaked for Europe?
- Author:
- Lucian Cernat
- Publication Date:
- 11-2022
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- This paper builds on the recent arguments put forward by Richard Baldwin and others debunking the myth that we enter a period of de-globalisation. The paper argues that globalisation is a complex phenomenon that requires detailed, firm-level indicators going beyond simple aggregate metrics. When using such indicators, the picture is much more nuanced and, in the case of Europe, the role of global trade is as important as ever for hundreds of thousands of companies and millions of jobs supported by global trade flows. A strong participation in the “new globalisation” is also key for the future EU competitiveness in technology-driven sectors.
- Topic:
- Globalization, International Trade and Finance, Science and Technology, European Union, and Trade
- Political Geography:
- Europe
629. Leadership in European Digital Policy: Future Role and Direction for the D9+ Group
- Author:
- Fredrik Philipp, Philipp Lamprecht, Erik van der Marel, Vanika Sharma, and Elena Sisto
- Publication Date:
- 11-2022
- Content Type:
- Working Paper
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- In this paper, we will discuss how Europe makes digital policy and how its digital economic performance can be improved. The focus is on the D9+ initiative. Launched in 2016 on the initiative of former Swedish trade minister, Ann Linde, nine countries with a particular interest in matters of the digital economy met to learn from each other and seek common ground on policy issues. On occasions, the D9+ Group has issued joint statements relating to regulatory initiatives in the EU. Since its founding, the group has expanded, and now also includes “guest countries”, but it remains fundamentally an initiative of small and mid-sized open-oriented economies with a strong interest to exploit the economic power of digitalisation and new emerging technologies. The D9+ initiative is important and this paper argues that its work should expand and focus on expanding the scale and scope of digital technological change in the European economy while addressing risks that an over-powering regulatory approach to digital policies in Europe reduces the benefits of the digital transformation. Importantly, the D9+ Group has a special interest to promote digital openness and avoid the agenda for technology sovereignty and strategic autonomy sliding into digital protectionism. Finding the right direction of policy is of fundamental importance for Europe’s long-run economic growth, and the D9+ Group should take a leadership role.
- Topic:
- Digital Economy, Leadership, Economic Growth, and Digital Policy
- Political Geography:
- Europe
630. A Compass to Guide EU Policy in Support of Business Competitiveness
- Author:
- Fredrik Erixon, Oscar Guinea, Philipp Lamprecht, Vanika Sharma, Elena Sisto, and Erik van der Marel
- Publication Date:
- 11-2022
- Content Type:
- Working Paper
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- The EU agenda for improving competitiveness is missing in action. Economic competitiveness has been a central plank in the development of the European Union – a relentless quest for policies that lead to more prosperity and that make European companies in world markets more successful. However, since the end of the Lisbon Agenda in 2010, economic competitiveness seems to have fallen off the EU map. This Agenda had its flaws, but it rightly sought to make Europe “the most competitive and dynamic knowledge-economy in the world”. The impression now is that Europe is on the retreat and the current European Commission is the first without a strategy to strengthen competitiveness at the EU level since the early 1990s. Hopefully, a course correction may now be on its way. Ursula von der Leyen has promised a “competitiveness check” on new EU policy. With the strong economic headwinds facing Europe and the world, the EU needs to pursue structural economic reforms that raise productivity and growth.
- Topic:
- European Union, Business, Regional Economy, and Competition
- Political Geography:
- Europe
631. The Impacts of EU Strategy Autonomy Policies – A Primer for Member States
- Author:
- Matthias Bauer
- Publication Date:
- 11-2022
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- EU governments should be much more sceptical and critical of the EU’s strategic autonomy agenda and the new polices intended to achieve the EU’s “long-term” industrial and technological ambitions. The long-term costs for Member States’ economies and the process of economic convergence are largely ignored by the agenda. Negative impacts of strategic autonomy on trade openness and the international rules-based trading system are also greatly understated. Many EU strategic autonomy ambitions are inherently guided by a “European Union First” impulse. Policymakers follow the assumption that EU values are superior to those in other parts of the world and EU regulation should be different from third countries. Major strategic autonomy aspirations represent a relapse of the EU to the old policy of EU member states designing and enforcing their own laws without considering the economic and political costs of regulatory fragmentation and economic disintegration from others. Recent strategic autonomy policies are estimated to create income losses in the EU of between 0.08% and 0.15% of EU27 GDP. These losses correspond to short-term economic harm resulting from changes in the use of productive resources in the EU. Long-run impacts, which reflect losses to productivity and innovation, could be up to 3 to 5 times higher with national income per capita falling by up to 0.5% to 0.75%. The costs are not evenly distributed across the EU27. Larger countries like France and Germany are less impacted than smaller ones, notably Ireland and the Baltic states. The impacts on Ireland, for example, are close to 4 times bigger than they are for France, the impacts on Estonia close to twice those on Germany. Strategic autonomy ambitions have failed to account for negative impacts on developing countries. To the extent that the EU’s policy stance further fragilizes rules-based multilateralism, there are longer-term impacts stemming from a less certain legal environment and higher barriers for cross-border trade and investment. EU strategic autonomy policies have the effect of empowering vested interests in developing countries to engage in lobbying for their own protectionist policies. Accordingly, EU strategic autonomy policies risk encouraging the diffusion of protectionist policies globally, particularly in countries with weak institutional capacity. EU Member States should examine their options and ask themselves whether there are better long-term strategies to pursue than those currently proposed at the EU level, strategies guided by the spirit of an open society – a society embracing the principles of free trade, non-discrimination, and economic freedom. Europe’s policymakers should aim for closer market integration and regulatory cooperation with trustworthy international partners such as the G7 and the larger group of the OECD countries. It is in the EU’s self-interest to advocate for a rules-based international order with open markets. It is neither in the EU’s economic nor its political interest to disintegrate from partner countries.
- Topic:
- Markets, Treaties and Agreements, European Union, Trade, and Strategic Autonomy
- Political Geography:
- Europe
632. How Important are Mutual Recognition Agreements for Trade Facilitation?
- Author:
- Lucian Cernat
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- Trade in the 21st century may face lower tariffs, but regulations that affect international trade in goods and services have proliferated. While regulations are important for many public policy objectives, different and complex non-tariff measures can become unnecessarily costly trade barriers for the millions of companies engaged in international trade. Trade policy can play a crucial role in reducing these unnecessary costs, without impairing the ability of regulatory authorities to carry out their public policy responsibilities. Mutual recognition agreements (MRAs) are a concrete trade policy instrument, specifically designed to achieve this dual objective. This paper revisits the arguments in favour of upgrading the existing EU MRAs to cover 21st century regulatory aspects impacting trade flows, offering empirical evidence on the positive difference MRAs have both on the value of exports and on increasing the number of exporting firms and their product portfolio towards new export destinations. The paper also summarises the results of a recent EU firm-level survey on the importance of MRAs for export performance. The results of the EU business surveys confirm the need for a renewed attention to MRAs, in particular with regard to emerging regulatory issues.
- Topic:
- Treaties and Agreements, European Union, Regulation, and Trade
- Political Geography:
- Europe
633. The European Community's Contradictory External Behaviour: The Promotion of Integration in Latin America in the Late 1980s
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- AUSTRAL: Brazilian Journal of Strategy International Relations
- Institution:
- Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
- Abstract:
- The European Union (EU) and its predecessor, the European Community (EC), is not only well known as the most important regional organization; it is a model for regional integration, which promotes regionalism (Börzel and Risse, 2013) as a distinct European idea (Bicchi 2006). Moreover, the literature has stressed European support for regional integration, which became an objective of its external policy, as shown in the publications of the Directorate Generals (Farrell 2009). Furthermore, some authors underline that Europe has had an influence on regionalism in other parts of the world. For example, Lenz argues that Europe has an ideational influence on regionalism, which consists of an indirect process through socialization and emulation (Lenz 2013). With that in mind, the EU has facilitated regional efforts by supplying aid and by acknowledging other regional groups. Nevertheless, it is essential to ask: Does the EU always act accordingly? As noted above, most of the literature about European influence focuses on how the EU supports regional integration, understanding it in a broader manner “as a multidimensional process which may take the form of coordination, cooperation, convergence and deep integration initiatives and whose scope extends not only to economic and trade issues but to political, social, cultural and environmental ones as well.” (Rosales, Herreros, and Durán 2014, 9) and especially regionalism, defined by Hurrell as constituted by societal integration, regional awareness interstate cooperation, regional integration, and cohesion (Hurrell 1995, 41-44). Nevertheless, it is necessary to consider that external actors, like the EU/EC, can also undermine regional integration, specifically interstate cooperation, a fundamental element of regionalism. For example, by offering extra-regional options which offer benefits for bilateral cooperation, like in Southern Africa (Muntschick 2013, 4). Other examples can be found in EU bilateral agreements signed because of failed interregional negotiations (Dongo 2011). Although there is some literature about the European influence on regional integration, whether positive or negative, there is still a knowledge void about the European influence on this matter. Is it possible that the EU/EC can support and, at the same time, undermine integration efforts?
- Topic:
- Regional Cooperation, European Union, Regional Integration, and Regionalism
- Political Geography:
- Europe and Latin America
634. tarr Forum: An Update on Russia's War Against Ukraine
- Publication Date:
- 10-2022
- Content Type:
- Video
- Institution:
- MIT Center for International Studies
- Abstract:
- What is the status of Russia's invasion of Ukraine?
- Topic:
- Defense Policy, Military Strategy, Conflict, Strategic Interests, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
635. Starr Forum: Energy as a Weapon of War: Russia, Ukraine and Europe in Challenging Times
- Publication Date:
- 12-2022
- Content Type:
- Video
- Institution:
- MIT Center for International Studies
- Abstract:
- How has Russia weaponized energy in this war? What have been the effects? How have Europeans responded to this weaponization of energy and what may be their responses this winter?
- Topic:
- Defense Policy, Energy Policy, Military Strategy, European Union, Strategic Interests, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
636. The Business Case for the Sustainable Development Goals: An Empirical Analysis of 21 Danish Companies' Engagement with the SDGs
- Author:
- Michael W. Hansen, Henrik Gundelach, and Erik Johnson
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- Centre for Business and Development Studies (CBDS), Copenhagen Business School
- Abstract:
- This paper explores why business engage with the SDG agenda, with a view to understanding the business case for the SDGs. Building on and extending the responsibility literature’s discussion of the business case for responsibility, the paper develops a conceptual framework for analyzing why business engage with the SDGs. This framework is employed to analyze why a sample of 21 Danish companies decided to engage with the SDG agenda. The analysis finds that most companies view the SDGs as a platform for achieving rather conventional business goals such as mitigating risk, saving costs, and differentiating products and services. However, in a few cases, companies use the SDGs as a lever for carving out uncontested positions in future markets. The paper concludes that companies overwhelmingly view the SDGs as a business opportunity rather than as a business responsibility, something that fundamentally may distinguish the SDG agenda from previous responsibility agendas. The paper fills a gap in the extant literature on business responsibility by developing and validating a classification of the business case for the SDGs based on economic value drivers, and by deepening the empirical understanding of, what precisely this business case may be.
- Topic:
- Development, Economics, Sustainable Development Goals, Business, and Social Responsibility
- Political Geography:
- Europe and Denmark
637. Cyberattacks Integral to Russia's Political and Military Strategies
- Author:
- Aleksandra Kozioł
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- To destabilise democratic countries that support Ukraine, Russia employs cyberattacks on the target state’s public institutions and critical infrastructure. These activities have clearly intensified since the full-scale invasion began in February 2022 and is in line with the implementation of Russian military strategy. In this context, it would be beneficial within the EU and NATO to develop joint action plans to respond to future threats in cyberspace.
- Topic:
- NATO, Infrastructure, European Union, Cybersecurity, Cyberspace, Military, and Russia-Ukraine War
- Political Geography:
- Russia and Europe
638. The Schengen Zone: While Croatia Joins, Further Enlargement Faces Challenges
- Author:
- Jolanta Szymańska
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- In December, EU interior ministers unanimously supported the expansion of the Schengen zone to include Croatia. At the same time, the Council did not agree on the membership of Romania and Bulgaria. The former was opposed by Austria, and the latter by both Austria and the Netherlands. Although Croatia’s smooth integration into Schengen may weaken the arguments of sceptics of further enlargement, without deep reforms of the entire system and the EU’s migration policy, it will be very difficult to obtain consent for membership of other candidates.
- Topic:
- Reform, European Union, Regional Integration, Schengen, and Regional Politics
- Political Geography:
- Europe and Croatia
639. Russian Attacks May Prompt Increased Refugee Flows from Ukraine
- Author:
- Maria Piechowska
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- Russia is continuing its intensive attacks on critical infrastructure in Ukraine. These are deliberate actions that violate international humanitarian law and are aimed at breaking the morale of Ukrainian society. Power outages mean that many towns and villages are not only without heating but also without water. Further devastation and the difficulty of repairs could trigger a humanitarian catastrophe. Most of the population will try to survive the winter in their current residences or by resettling in smaller towns. Increased refugee movement across borders, especially to Poland, is also possible.
- Topic:
- Refugees, Conflict, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
640. Cooperation and Peril: Germany Attempts a Policy Balance with China
- Author:
- Łukasz Jasiński
- Publication Date:
- 11-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- The COVID-19 pandemic, the Russian aggression against Ukraine, and the resulting disruption of supply chains have intensified the ongoing debate in Germany over the preferred shape of German-Chinese relations. Chancellor Olaf Scholz’s government sees China as both a partner and rival. Reducing dependence on China is challenging due to its scale and the strength of the pro-China business lobby. This unsteady position will cause tensions in relations with partners, including the U.S., and conflicts within the governing coalition. Germany will continue to develop trade relations with China while blocking Chinese investment in critical sectors.
- Topic:
- Foreign Policy, International Cooperation, Trade, and Supply Chains
- Political Geography:
- China, Europe, and Germany
641. GCC Countries, Seeking Food Security, Eye Agricultural Investments
- Author:
- Sara Nowacka
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- The growing consumption of food in the Gulf states is leading to the acquisition of foreign farmlands. This practice increases the Gulf states’ influence in African countries and the European neighbourhood. The competitiveness of their agricultural sector is also growing in relation to the less innovative European agriculture thanks to the development of technologies responding to difficult climatic conditions.
- Topic:
- Agriculture, Food Security, Investment, Innovation, and Gulf Cooperation Council
- Political Geography:
- Europe, Middle East, and Gulf Nations
642. Sub-Saharan Africa May Be a New Source of Gas for the EU
- Author:
- Jędrzej Czerep
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- In order to become independent from supplies of energy resources from Russia, EU countries are intensively looking for alternative gas import opportunities, including from Sub-Saharan Africa. This direction may become an important element of European diversification, but its development requires external investments and improvement and expansion of the existing infrastructure. European companies and the EU itself can play a key role in this regard.
- Topic:
- Energy Policy, European Union, Gas, and Diversification
- Political Geography:
- Africa, Europe, and Sub-Saharan Africa
643. What Next after the Death of Queen Elizabeth II?
- Author:
- Przemysław Biskup
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- The death of Elizabeth II on 8 September closed her 70-year reign. In that time, the United Kingdom underwent deep transformation, including losing its colonial empire, as well as joining and later leaving European integration structures. The succession to the throne may contribute to a further weakening of the UK’s personal union with the 14 Commonwealth monarchies and the British role in this structure. The queen’s passing has also increased the risk of strengthening of separatist movements in Northern Ireland, Wales, and Scotland.
- Topic:
- Domestic Politics, Separatism, and Monarchy
- Political Geography:
- United Kingdom, Europe, and British Commonwealth
644. India Emerges as a Key Power and Important Partner for the EU in the Indo-Pacific
- Author:
- Patryk Kugiel
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- India’s commissioning of its second aircraft carrier, the INS Vikrant, in September this year reaffirms the country’s aim to play a leading role in the Indo-Pacific. The country’s importance in the region will depend mainly on the course of the India-China rivalry, an increase in its economic potential, and the support provided to it by foreign partners. The convergence of goals in the Indo-Pacific strengthens India’s partnership with the U.S. and opens up opportunities for intensifying cooperation with the EU, especially in terms of connectivity, climate change, and the development of capacity in maritime domain awareness.
- Topic:
- International Cooperation, European Union, Partnerships, Geopolitics, and Economy
- Political Geography:
- Europe, South Asia, India, and Indo-Pacific
645. Right-Wing Coalition Wins Parliamentary Elections in Italy
- Author:
- Łukasz Maślanka
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- The elections to Italy’s Chamber of Deputies and Senate on 25 September were won by the Centre-Right coalition led by the Brothers of Italy (FdI) party headed by Giorgia Meloni. The winning party’s won over voters by its decision to remain in opposition to the government of Mario Draghi, which was supported by all other parties. The right-wing’s victory was also facilitated by the inability of the Democratic Party (PD) and the 5 Star Movement (M5S) to form a coalition, which split the votes of left-wing voters. The biggest challenge for the FdI-led coalition will be to simultaneously maintain the support of the voters, good relations with the EU, and the confidence of the financial markets.
- Topic:
- European Union, Domestic Politics, Political Parties, Right-Wing Politics, and Regional Politics
- Political Geography:
- Europe and Italy
646. Space Technologies Key to the EU's Fight Against Climate Change
- Author:
- Aleksandra Kozioł
- Publication Date:
- 08-2022
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- Launched in March 2022, the Destination Earth initiative to create a digital model of the Earth confirms the importance of space technologies in the EU’s green and digital transformations. The consequences of climate change, such as droughts, fires, and floods, reduce the security of citizens and cause economic losses. The dissemination of applications using satellite data will increase the effectiveness of climate action and sustainable development in the EU.
- Topic:
- Climate Change, Development, Science and Technology, and European Union
- Political Geography:
- Europe
647. The Future of Xi’s China. Scenarios and Implications for Europe
- Author:
- Alessia Amighini
- Publication Date:
- 09-2022
- Content Type:
- Special Report
- Institution:
- Italian Institute for International Political Studies (ISPI)
- Abstract:
- At the upcoming 20th Party Congress, which opens Sunday in China, Xi Jinping is expected to be confirmed as the country's Secretary General for an unprecedented third term. At a time of international instability caused by the Covid pandemic and the war in Ukraine, as well as rising competition between international superpowers, the Chinese leadership is called to increase the country's international standing, while ensuring economic growth at the domestic level. However, achieving these goals will not be without challenges. This Report analyses China’s hard road to international prestige and development. Which prospects for China's economic growth? Which obstacles to its rise at the global level? To which extent can the Party steer the country’s direction?
- Topic:
- Foreign Policy, Development, Economy, Xi Jinping, and Instability
- Political Geography:
- China, Europe, and Asia
648. Digitalisation for Sustainable Infrastructure: The Road Ahead
- Author:
- Carlo Secchi and Alessandro Gili
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- Italian Institute for International Political Studies (ISPI)
- Abstract:
- In today’s tumultuous and fast-changing times, digitalisation and technology are game changers in a wide range of sectors and have a tremendous impact on infrastructure. Roads, railways, electricity grids, aviation, and maritime transport are deeply affected by the digital and technological transition, with gains in terms of competitiveness, cost-reduction, and safety. Digitalisation is also a key tool for fostering global commitment towards sustainability, but the race for digital infrastructure is also a geopolitical one. As the world’s largest economies are starting to adopt competitive strategies, a level playing field appears far from being agreed upon. Why are digitalisation and technology the core domains of global geopolitical competition? How are they changing the way infrastructure is built, operated, and maintained? To what extent will road, rail, air, and maritime transport change by virtue of digitalisation, artificial intelligence, and the Internet of Things? How to enhance cyber protection for critical infrastructure? What are the EU’s, US’ and China's digital strategies?
- Topic:
- Science and Technology, Infrastructure, European Union, Sustainability, and Digitalization
- Political Geography:
- China, Europe, Asia, North America, and United States of America
649. Facing War: Rethinking Europe’s Security and Defence
- Author:
- Serena Giusti and Giovanni Grevi
- Publication Date:
- 11-2022
- Content Type:
- Special Report
- Institution:
- Italian Institute for International Political Studies (ISPI)
- Abstract:
- Russia’s attack on Ukraine has sent shockwaves across Europe and the world. While the current war is a geopolitical turning point, it remains unclear whether it will trigger a quantum leap forward for European defence policies and for the role of the European Union as a security provider. This Report investigates whether we can expect a further convergence of European strategic cultures, and on collaboration among Europeans to generate the required military capabilities and integrate their forces. Most importantly, it finds that the timely implementation of the EU’s Strategic Compass will be a decisive test to establish whether Europeans are rising to the challenge of taking more responsibility for their security and defence.
- Topic:
- Security, Defense Policy, European Union, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
650. The impact of the Ukraine crisis on international trade
- Author:
- Zsolt Darvas and Catarina Martins
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Bruegel
- Abstract:
- We study the economic implications of Russia’s invasion of Ukraine, by scrutinising global trade volumes and commodity prices, trade balances and bilateral trade flows between major economic powers and Russia. We find that energy prices increased more in 2021 than in 2022, suggesting that the war and the sanctions were not the most important drivers. Nevertheless, International Monetary Fund forecast revisions from October 2021 to October 2022 suggest that the volume of global trade in goods and services declined by 3.4 percent, energy prices increased by about 100 percent, and the prices of non-energy commodities by 8 percent. The war could be an important driver of these forecast revisions, though other factors were also at play. While forecasts for important industrial production input costs were not revised, soaring energy prices deteriorated the trade balance of countries importing energy. Only half of the increase in Russia’s trade surplus was related to soaring energy prices. The other half resulted from the collapse of Russian imports, which will likely undermine the Russian economy’s productive capacity over time. Falling Russian exports of goods other than mineral fuels suggest Russia’s productive capacity has already weakened. Russia’s trade has been reoriented from advanced economies to China, India and Turkey, but this has only partially compensated for the decline in trade with advanced countries. We find that sanctions had an impact on trade. There is no evidence of European and US companies circumventing sanctions by re-routing sanctioned goods to Russia via China and Turkey. The UK and the US have already stopped importing fossil fuels from Russia, and such imports by the EU have declined. With the EU’s Russian seaborne crude petroleum import ban taking effect in December 2022 and the refined petroleum ban coming to effect in February 2023, Russia’s revenues from fossil fuel exports to the EU are set to shrink significantly, with limited options for redirecting exports to other countries. The three main policy-relevant implications from our research are: The war and the sanctions are not the most important drivers of energy price; The direct aim of sanctions seems to have been achieved; The capacity of the Russian state to finance the war from fossil fuel revenues is bound to shrink. The dataset used for most charts of this working paper is regularly updated and is available in the Russian foreign trade tracker
- Topic:
- International Trade and Finance, Sanctions, Fossil Fuels, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
651. You’ll never talk alone: what media narratives on European reforms reveal about a polity in the making
- Author:
- Emmanuel Mourion-Druol, Henrik Müller, Giuseppe Porcaro, and Tobias Schmidt
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Bruegel
- Abstract:
- This paper analyses the discourse since 2001 in three leading national business newspapers about reforms in the European Union: Handelsblatt (Germany), Il Sole (Italy) and Les Echos (France). We collected and organised a large dataset of articles published in these three newspapers. We used topic modelling to identify latent topics across articles. Based on this database, we then addressed four research questions and found: a relative degree of synchronisation of reform debates across the three countries; comparable reporting patterns, especially around the main crises; a greater degree of direction of the debate towards European issues over national issues in Germany than in France and Italy; and the tentative emergence of a shared narrative about crises. Finally, we highlight that bringing conflict and contestation back into European discussions may help stimulate wider interest in European matters.
- Topic:
- Reform, European Union, Media, and News Analysis
- Political Geography:
- Europe
652. Risks to job quality from digital technologies: are industrial relations in Europe ready for the challenge?
- Author:
- Janine Berg, Francis Green, Laura Nurski, and David Spencer
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- Bruegel
- Abstract:
- We examine the job quality effects of new digital technologies in Europe, using the framework of seven job quality ‘domains’: pay, working time quality, prospects, skills and discretion, work intensity, social environment and physical environment. The theoretical effects from new technology are ambivalent for all domains. Data on robot shocks matched to the European Working Conditions Surveys for 2010 and 2015 is used to generate empirical estimates, which show significant aggregate negative effects in three domains, and a positive effect in one. Some negative effects are enhanced where there is below-median collective bargaining. In light of these analyses, and in order to think through the challenge of regulating the development and implementation of all forms of digital technologies, we review regulations in several European countries. Drawing on the principles of human-centred design, we advance the general hypothesis that worker participation is important for securing good job quality outcomes, at both the innovation and adoption stages. We also consider the application to the regulation of job quality of national and supra-national data protection legislation. In these ways, the paper extends the debate about the future of work beyond employment and pay, to a consideration of job quality more broadly.
- Topic:
- Industrial Policy, Science and Technology, Employment, and Work
- Political Geography:
- Europe
653. Don’t look only to Brussels to increase the supply of safe assets in the European Union
- Author:
- Francesco Papadia and Heliodoro Temprano Arroyo
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- A sufficient supply of safe assets denominated in euros is critical if the European Union is to achieve full banking and capital markets union while fostering the euro’s international role. The European debate on developing the supply of safe assets has so far focused on the possible creation of a common safe asset. This has tended to underplay the potential contribution of sovereign assets. Expanding the supply of national safe assets, notably through the gradual implementation of fiscal and growth-oriented structural policies in euro-area countries, leading to upgrading of their sovereign ratings, provides a promising, and perhaps more feasible, option. An upgrade to triple A of those euro-area countries that are currently rated double A could produce substantially more safe assets than most common safe asset proposals, including those based on the development of ‘synthetic’ safe assets. There has been a remarkable increase in the share of supranational assets in the stock of euro-based safe assets since 2008, reflecting downgrades in sovereign ratings and the EU’s financial responses to the euro-area crisis and the pandemic. However, safe assets in euro remain dominated by those issued by euro-area governments. Although common safe assets have certain advantages over national safe assets, reflecting their built-in risk diversification properties, there is currently not much political appetite for such proposals. Meanwhile, sovereign safe assets already offer many of the advantages of common safe assets. Sound fiscal policies and growth-stimulating reforms, which are in any case desirable, should be implemented to improve the credit ratings of euro-area sovereigns. This might not be politically feasible in the short-term, given the difficult economic environment currently faced by the EU, but it should be a key component of the EU’s medium-term safe asset strategy. Should the political consensus be found to create a common safe asset, such an asset could be incorporated into the euro area’s existing safe asset system, reinforcing its positive effects.
- Topic:
- Debt, Markets, Monetary Policy, European Union, Regional Integration, European Monetary Union, and Banking
- Political Geography:
- Europe
654. Which mergers should the European Commission review under the Digital Markets Act?
- Author:
- Christophe Carugati
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Large digital platforms acquired 1149 firms in various economic sectors between 1987 and July 2022. The European Commission reviewed only 21 of these mergers as most did not meet the European Union merger control turnover threshold. This suggests under-enforcement, with some problematic mergers escaping merger review and thus posing competition risks. The EU Digital Markets Act, which entered into force in November 2022, imposes obligations on firms that are considered ‘gatekeepers’ in relation to some core platform services, such as online search engines. In particular, these firms must now inform the Commission of all their intended acquisitions. This, in combination with Commission guidance on referrals by EU national competition authorities of mergers for review, should ensure more merger reviews in the digital sector. Current European Commission guidance on referring cases for merger review is flexible but impractical as it relies on theories of harm rather than clear and objective criteria. Without clarification, there could be over-enforcement in which unproblematic mergers are reviewed, human resources are allocated inefficiently and legal uncertainty persists. The Commission should issue new guidance on which digital mergers are likely to be problematic, thus triggering referral for merger review. This is likely to be the case when the target’s user base overlaps with that of the acquirer, when the target is a leader in a future critical market and when the target is active in a core platform service.
- Topic:
- Economy, Innovation, European Commission, and Digital Markets Act (DMA)
- Political Geography:
- Europe
655. A European policy mix to address food insecurity linked to Russia’s war
- Author:
- Georg Zachmann, Pauline Weil, and Stephan von Cramon-Taubadel
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- The Russian war against Ukraine has put at risk a significant share of global food exports, and has contributed significantly to strongly rising global food prices. This has made poor, food-import dependent countries more vulnerable, with potentially serious humanitarian consequences. The crisis also has negative security, migration and foreign policy repercussions for the European Union. The EU and its members have a number of policy levers to address the crisis. These include agricultural, trade, environment, aid, energy, fiscal and foreign policy. However, in the complex interplay of local and global, agricultural and non-agricultural markets, apparently simple solutions can have significant unintended consequences and policy trade-offs must be taken into account. While EU agricultural policy can address the crisis directly by adjusting production, energy policies also have an impact on food security through the complex relationship between the food and energy systems. Energy is an input to food production but also, as bioenergy, competes for agricultural commodities. Fiscal policy can discourage inefficient food consumption and food waste, while trade policy and aid can improve the allocation of agricultural production factors (eg fertilisers) and products. Increasing information sharing on food stocks and building trust are prerequisites for trade policy and diplomacy to limit export restrictions, thus alleviating some of the price pressures on international markets. The crisis highlights food-system fragilities when confronted with global conflicts, climate change and economic shocks. Policies should seek to increase shock-resilience, for example by reducing structural rigidities in production, trade and consumption patterns, and by encouraging sustainable production in import-dependent countries. This is especially important considering that most food production is locally consumed. Only 20 percent of the global cereals volume is traded, making the current shock significant in terms of globally traded volumes (Ukraine represents 10 percent of the global grain market), but not relative to overall volume (Ukraine represents 2 percent of global grain production).
- Topic:
- European Union, Food Security, Exports, Russia-Ukraine War, and Green Economy
- Political Geography:
- Russia, Europe, and Ukraine
656. How to implement the self-preferencing ban in the European Union’s Digital Markets Act
- Author:
- Christophe Carugati
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Large online platforms are intermediaries between end-users and business users. They sometimes propose their own products and services alongside those of rivals. This can lead to platforms promoting their offers over those of competitors in so-called self-preferencing. The European Union Digital Markets Act (DMA) bans large online platforms under its scope from treating their own products and services more favourably that those of rivals when ranking, crawling and indexing. Platforms – or gatekeepers in the DMA definition – should apply transparent, fair and non-discriminatory conditions when ranking products and services. However, the identification, detection, compliance with and monitoring of self-preferencing is complex and resource-intensive. It requires a case-by-case approach and access to and analysis of platform data and algorithms. The DMA allows gatekeepers to promote their own products and services if rivals are subject to the same treatment. Nonetheless, the DMA neither defines equal treatment nor the main elements of self-preferencing, thus preventing platforms within the DMA’s scope from correctly applying the prohibition. To ease enforcement, the European Commission should issue guidance on what constitutes self-preferencing under the DMA, outlining two main principles. First, gatekeepers should use objective and unbiased parameters to determine ranking, indexing and crawling. Second, gatekeepers should demonstrate equal treatment. The guidance will make compliance easier. The Commission should then monitor compliance by appointing and ensuring sufficient rotation of external auditors to avoid capture by gatekeepers. The Commission should also work with competent national authorities that develop technological tools. When monitoring flags a risk of non-compliance, the Commission should then further specify the ban on self-preferencing on a case-by-case basis.
- Topic:
- European Union, Digital Economy, Economy, Innovation, and Digital Markets Act (DMA)
- Political Geography:
- Europe
657. Promotion of high capacity broadband to rebuild and recover from the pandemic
- Author:
- J. Scott Marcus, Alicia Garcia-Herrero, and Lionel Guetta-Jeanrenaud
- Publication Date:
- 11-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Promoting high-quality fixed and mobile broadband for all, at an affordable price, is an important enabler of the digital transformation of society and will help close the digital divide. This became clearer than ever during the pandemic, when broadband access was a crucial enabler of remote work, distance learning, telemedicine and e-commerce. It has always been challenging to provide broadband access to all at an affordable price. The pandemic, global geopolitical tension and Russia’s invasion of Ukraine have exacerbated supply-chain disruptions in ways that make this even more difficult and potentially expensive. Promotion of broadband deployment, adoption and use are all important for both fixed and mobile broadband; however, different policy levers are needed in each case, on both the supply and demand sides. The market will not always deliver complete solutions. Consequently, there is a role for regulation, targeted industrial policy and public finance. Promotion of competition, combined with prompt and efficient provision of access to resources such as electromagnetic spectrum and access to land and rights of way, can be particularly important. G20 countries and others now seek a future-proof, sustainable and equitable recovery, meaning new sources of public revenues need to be considered. Broadband can be boosted by judicious use of recovery funds and expected new tax revenues arising from global tax reforms agreed within the Organisation for Economic Co-operation and Development.
- Topic:
- Infrastructure, Digital Economy, Innovation, COVID-19, and Inclusion
- Political Geography:
- Europe and Global Focus
658. Completing Europe’s banking union: economic requirements and legal conditions
- Author:
- Thorsten Beck, Jan Pieter Krahnen, Philippe Martin, Franz Mayer, Jean Pisani-Ferry, Tobias Tröger, Beatrice di Mauro, Nicolas Veron, and Jeromin Zettelmeyer
- Publication Date:
- 11-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- The European Union’s banking union project started in mid-2012 in response to the euro-area crisis, with the goal of breaking the bank-sovereign vicious circle. The objective was also to restore private liability in banking and to move towards an integrated supranational market for banking services. For all the progress achieved in the past decade, particularly in banking supervision, these aims have not yet been accomplished. This Policy Contribution analyses the deficiencies of the current framework and identifies possible responses, in line with three levels of reform ambition. We label these ‘incremental’ (broadening the scope for private-sector burden-sharing in future cases of bank failures), ‘real’ (effectively breaking the bank-sovereign vicious circle), and ‘cosmic’ (a single, seamlessly integrated banking market). European policymakers should set their sights on the second level, which we view as achievable within the current decade, requiring new EU legislation but no change to the European treaties.
- Topic:
- Regulation, Economy, Crisis Management, European Central Bank, and Banking
- Political Geography:
- Europe
659. Lessons for Europe from China’s quest for semiconductor self-reliance
- Author:
- Alicia Garcia-Herrero and Pauline Weil
- Publication Date:
- 11-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Semiconductors are a critical input to production of information and communication technology and many other goods. The major economies want to be able to produce chips at home to avoid excessive dependence on supply chains in an increasingly unpredictable world, where trade is being compromised because of national security concerns. China was first in terms of timing and scale of funding to support its its semiconductor industry. Since 2015, China has spent $150 billion upgrading its semiconductor industry. Success, however, has been limited. China’s massive industrial policy effort has been most successful in increasing capacity for assembly of chips, though that is also the least value-added part of the semiconductor supply chain. Progress on chip design and fabrication in China remain underwhelming. The United States has also started implementing its $50 billion package to support the production of chips. The European Union, meanwhile, has not yet fully finalised its main semiconductor initiative, the European Chips Act. China’s experience offers a number of lessons. First, chip fabrication requires massive fixed asset investment and, therefore, large subsidies, but with no guarantee of success. Second, one reason for the underwhelming results of China’s semiconductor policy is US containment, through export controls and other measures. In this respect, the EU should find it easier than China to upgrade its chips industry but, given the costs, focusing on the highest-end part of the supply chain would be the best approach. Assembly and production of lower-end semiconductors already face overcapacity, given the financial resources already invested by China.
- Topic:
- International Relations, European Union, Economy, Trade Policy, and Semiconductors
- Political Geography:
- China and Europe
660. How have sanctions impacted Russia?
- Author:
- Maria Demertzis, Benjamin Hilgenstock, Ben McWilliams, Elina Ribakova, and Simone Tagliapietra
- Publication Date:
- 10-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Russia’s invasion of Ukraine has triggered a series of sanctions imposed by the European Union, the United States and others. Sanctions included restrictions on Russia’s financial industry, its central bank and its coal and oil exporters, in addition to general export controls. Meanwhile, foreign companies have withdrawn voluntarily from the Russian market as a result of a ‘self-sanctioning’ trend. We assess the impact these sanctions have had on Russia’s economy in the immediate aftermath of the invasion and more structurally. Russian fiscal revenues have not suffered from sanctions sufficiently to reduce the length of this war. Effective management by the Bank of Russia has prevented financial instability and has therefore also protected the real economy. However, this picture of economic containment is coming to an end. Russia’s fiscal revenues are now beginning to take a hit; given the breadth of sanctions, the economy will suffer in the medium to long term. The voluntary departure of a large number of western firms, eventual energy decoupling by the EU and Russia’s inability to find equal alternatives will damage the Russian economy severely. As the Russian economy closes in on itself, it will become harder to find reliable data to evaluate the extent of the hit. Still greater sanctions coordination across the globe is needed to isolate the Russian economy, limit the flow of income into Russian coffers and therefore help stop the war.
- Topic:
- Governance, Sanctions, Economy, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
661. An assessment of Europe’s options for addressing the crisis in energy markets
- Author:
- Conall Heussaff, Simone Tagliapietra, Georg Zachmann, and Jeromin Zettelmeyer
- Publication Date:
- 09-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Since Russia’s invasion of Ukraine, wholesale prices for electricity and gas in the European Union have risen five to fifteen-fold, with severe impacts for households and businesses. The crisis is also creating liquidity problems for energy companies, with contagion risks for the financial sector. In response, European governments have taken a range of actions. Some have introduced measures at retail level, while others have introduced windfall-profit taxes on energy companies. Some countries have provided emergency liquidity to energy companies facing soaring collateral costs. Some energy companies have even been nationalised. Emergency-intervention proposals should be evaluated against three principles. First, energy supply must meet demand at prices that do not cause major damage to the European economy. Second, the most vulnerable consumers must be protected. Third, measures should be consistent with the case for investment in a sustainable energy system, in order to safeguard Europe’s ability to decouple structurally from fossil-fuel imports. Gas price caps have been proposed as an emergency measure in different forms: a cap on Russian gas only, a cap on gas used in electricity generation, a cap on all wholesale gas. All entail significant risks. The first might lead to a full stop of Russian gas into the EU. The second might increase gas demand from the electricity sector. The third might raise gas demand and also undermine Europe’s ability to attract much-needed gas supplies. Instead of capping gas prices, the EU should engage collectively with external gas suppliers and negotiate new long-term contracts with provisions to limit price volatility. A September 2022 European Commission proposal involving electricity demand reduction, a revenue cap on inframarginal generation, solidarity payments from fossil-fuel companies and consumer support measures, is broadly positive, notably because it emphasises demand reduction. However, it is not sufficient. A more comprehensive plan needs to ensure that all countries bring forward every available supply-side flexibility, make real efforts to reduce gas and electricity demand, keep their energy markets open and pool demand to get a better deal from external gas suppliers. In the longer term, measures to split the markets for energy generated from renewables and fossil fuels should be examined.
- Topic:
- Markets, European Union, Energy Sector, and Green Economy
- Political Geography:
- Europe
662. Will Ukraine’s refugees go home?
- Author:
- Uri Dadush and Pauline Weil
- Publication Date:
- 09-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- About 15 percent of the population has fled Ukraine since the start of the Russian aggression in February 2022. Nearly 4 million Ukrainians have already registered in European Union countries. Based in part on evidence that few refugees return voluntarily to poor countries once they settle in rich countries, even once security is re-established at home, it can be expected that large numbers of Ukrainian refugees are likely to remain in European host countries, and will likely be joined by others, including many men that remained to fight when the conflict is over. Ukraine already has a long history of emigration. Its shattered economy, the likelihood of a protracted conflict and significant uncertainty with regard to its final status reinforce the argument that most refugees will not return and many more will join them. EU nations must prepare for. There will be large short-term costs and long-term economic gains from Ukrainian immigration in Europe. The best way to help Ukraine, and to moderate the likely outflow of its people, will be to assist in the country’s reconstruction, and not to place artificial impediments to the immigration of individuals who have already suffered greatly.
- Topic:
- Migration, Governance, Reconstruction, Refugees, Economy, Trade, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
663. Enlarging and deepening: giving substance to the European Political Community
- Author:
- Franz Mayer, Jean Pisani-Ferry, Daniela Schwarzer, and Shahin Vallée
- Publication Date:
- 09-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- France’s President Emmanuel Macron and Germany’s Chancellor Olaf Scholz have stressed the geopolitical emergency of re-designing the European Union’s relationship with its neighbourhood. Both acknowledge that EU enlargement is necessary, but also emphasise that profound EU institutional reform is required beforehand, though deepening and widening the EU are complex processes that veto players could block. The geopolitical challenges mean it is in the critical interest of the EU to bring stability to its neighbourhood by ensuring geopolitical alignment with the EU, limiting the blackmailing power of external, authoritarian states, supporting more resilient democracies and strengthening the rule of law. Meanwhile, the EU’s neighbours are seeking a political space in which challenges to collective security and stability can be addressed and concrete policies decided. Given the urgency, it is not enough to rely on lengthy EU accession processes. A ‘European Political Community’ (EPC), which will have its first summit on 6 October 2022, could act both as a bridge to an eventual larger EU and as a framework for continental-scale partnership. Leaders should use the summit to start the building of a platform that can combine political dialogue with policy delivery in a quick and flexible way, and will thus structure more impactfully the relationship between the EU and its neighbourhood. The EPC could start as a soft law agreement between states and the EU. It would work with existing institutions as far as possible, while aiming at more effective decision-making than currently in the EU. For instance it could function without vetoes and could work in geopolitically relevant areas that are not yet EU competences. An ambitious EPC would provide financial resources for deeper cooperation on energy and climate, security and defence, and economic and social convergence. The EPC would not be, and should not be, regarded as a substitute for EU accession, but should be designed in such a way that it can work as an accelerator. For countries not seeking to join the EU, it would provide an ongoing framework that sustains structured cooperation with the EU.
- Topic:
- Security, Politics, Governance, and European Union
- Political Geography:
- Europe
664. A grand bargain to steer through the European Union’s energy crisis
- Author:
- Ben McWilliams, Giovanni Sgaravatti, Simone Tagliapietra, and Georg Zachmann
- Publication Date:
- 09-2022
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Europe’s energy system faces unprecedented physical and institutional stress. The policy response so far has been excessively nationally focussed and could undermine the goals of calming energy markets over the next 18 months and achieving ambitious decarbonisation targets. At the basis of the crisis is a post-COVID-19 global energy imbalance. While demand bounced back quickly as economies re-opened, supply did not. A particular challenge is that the reducing supply of fossil fuels in line with climate targets has not been matched by a commensurate reduction of fossil-fuel demand. Russian manipulation of European natural gas markets since summer 2021, exploiting its significant market power, has deepened the crisis. Finally, events including weak French nuclear output and the ongoing drought, which has cut hydropower generation, have further escalated the situation. In response to high and volatile prices and forced demand reduction, European governments have tended to opt for narrow and uncoordinated measures that prioritise national security of supply and affordability over an integrated European approach. Subsidising energy consumption instead of demand reduction has been a common and misguided approach. Governments run the risk that energy consumption subsidies become unsustainable, eroding trust in energy markets, slowing action in sanctioning Russia and increasing the cost of the net-zero transition. An integrated European approach and a coordinated plan is essential to address the crisis. European Union leaders must strike a grand energy bargain based on four broad principles: (i) all countries bringing forward every available supply-side flexibility, (ii) all countries making comprehensive efforts to reduce demand, (iii) a political committing to maintain energy markets and cross-border flows, (iv) compensation for the most vulnerable consumers. This grand bargain can be the first step on a new course towards united energy policy at EU level.
- Topic:
- Markets, European Union, Crisis Management, Energy, and Russia-Ukraine War
- Political Geography:
- Europe
665. Welfare Implications of Electric Bike Subsidies: Evidence from Sweden
- Author:
- Anders Anderson and Harrison Hong
- Publication Date:
- 08-2022
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- Greenhouse gas emissions from U.S. transportation account for about 29 percent of total U.S. greenhouse gas emissions, making it the largest contributor by sector to global warming in the United States. Within the U.S. transportation sector, cars are responsible for 58 percent of all transportation emissions according to the Environmental Protection Agency. Along with electric cars, electric bikes (also known as pedelecs or e‑bikes) are a potentially important tool to address global warming. With rechargeable batteries, they are capable of long distances and hence can replace car trips for work in dense and growing urban areas around the world.
- Topic:
- Climate Change, Welfare, Transportation, and Subsidies
- Political Geography:
- Europe and Sweden
666. How the Caspian Can Help Solve Europe’s Gas Woes: A Close Look at the Trans Caspian Connector Project
- Author:
- John Roberts
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- The plentiful natural gas reserves in and around the Caspian constitute an obvious medium‑ to long‑term source of supply for Europe. What may be more surprising is that they also constitute the only source of sustained pipeline gas delivery that can improve Europe’s gas balance within months or even weeks. There are four elements that define the issue. The first is Europe’s requirement for gas. The second is the availability of gas for immediate or early input into the equation. The third is the question of the capacity of available infrastructure to carry the gas to market. Finally, there is the question of whether there is the political support to implement such measures.
- Topic:
- Energy Policy, Infrastructure, Gas, and Regionalism
- Political Geography:
- Europe
667. Drones and Resets: The New Era of Turkish Foreign Policy
- Author:
- Rich Outzen and Soner Cagaptay
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- Turkish foreign policy under Recep Tayyip Erdogan has gone through a number of turns since 2003, characterized by the country’s leader continuously taking stock of domestic and global dynamics whilst navigating between the U.S. and Europe, Russia, and the Middle East. He came to power in Ankara 19 years ago after rising through Türkiye’s political Islamist movement, serving first as prime minister and since 2014 as president. Erdogan’s foreign policy approach over two decades can be divided into a number of periods: an initial era of aspirational multilateralism with a strong pro‑EU tilt, until roughly 2009; an ambitious period of regional assertion marked by failed support for the Muslim Brotherhood and the Arab uprisings, until around 2015; an increasingly unilateral, hard‑power driven period through 2020; and what appears to be a new era blending hard power—enabled and symbolized by Turkish drones—and a Ukraine war, in which Türkiye is, simultaneously, selling drones to Kyiv and courting Washington while implementing the 1936 Montreux Treaty to limit its frenemy Moscow’s access to the Black Sea. Together with recent steps aimed at rapprochement with Israel and Gulf Cooperation Council (GCC) states like Saudi Arabia and the United Arab Emirates (UAE), these last factors encapsulate the new era of Turkish foreign policy—albeit one overshadowed at the moment by Ankara’s unwillingness to unconditionally approve Swedish and Finnish accession to NATO.
- Topic:
- Security, Foreign Policy, International Cooperation, and Regionalism
- Political Geography:
- Europe and Turkey
668. Türkiye and the Russia-Ukraine War: Impact on the West, Central Asia, and the Caucasus
- Author:
- Matthew Bryza
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- During a recent webinar, I was asked to address the following question: what does Russia’s invasion of Ukraine mean for Türkiye’s approach to the Caucasus and Central Asia? At first, the question struck me as odd. Having worked on these issues since the late 1990s and now living in Istanbul, it seemed obvious to me that Türkiye’s goals in these regions have been enduring since the end of the Cold War and were not changing because of Russia’s latest invasion of Ukraine. These goals, I said, were and remain to: secure westward exports of oil and natural gas produced in the Caspian Basin; promote stability in the South Caucasus; and strengthen Türkiye’s business and cultural ties with the Turkic populations of Azerbaijan, Turkmenistan, Kazakhstan, Uzbekistan, and Kyrgyzstan. Türkiye’s approach toward Russia in this context also remains what it has been since the Ottoman centuries: cooperate where possible but confront where necessary. Reflecting momentarily on this question, however, I realized how different Ankara’s goals appear from the perspectives of Washington, Paris, and Athens. In these and other NATO capitals, Turkish foreign policy seems to have shifted from its pursuit of “zero problems with neighbors” during the early years of the leadership of Recep Tayyip Erdogan to one of “zero neighbors without problems.” Türkiye is thus viewed within the Atlantic Alliance as a belligerent outlier, bent on violating international law to pursue the extraction of Eastern Mediterranean hydrocarbons, enabling Azerbaijan to use military force during the Second Karabakh War, and aligning in Syria more with Russia than with its own treaty allies.
- Topic:
- Security, War, Military Strategy, and Regionalism
- Political Geography:
- Europe and Asia
669. How the Conflict Over Ukraine Affects Security in the South Caucasus
- Author:
- Nargiz Gafarova
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- Against the background of the present stage of the conflict over Ukraine, the South Caucasus is experiencing perturbation. Three examples rise immediately to mind: elements of the 10 November 2020 tripartite between Armenia, Azerbaijan, and Russia that ended the Second Karabakh War statement (and the arrangements that have derived from it) are being suboptimally implemented; the leaders of Georgia’s breakaway region of South Ossetia continue to hold out the possibility to conduct a referendum on “unification” with Russia; and the uncertain outcome of the talks in Vienna to revive the Iran nuclear deal. Such and similar examples have led all three South Caucasus states (Armenia, Azerbaijan, and Georgia) to pursue variants of a policy some call “neutrality” and others “hedging” between the parties to the conflict over Ukraine. Located at the intersection of Europe, Russia, and the Greater Middle East—and thus constituting the western part of the Silk Road region, as defined by the Editorial Statement of Baku Dialogues—the South Caucasus is one of the most important and, at the same time, one of the most potentially explosive areas bordering the West. Over the past several decades, developments within all three South Caucasus states have contributed to a general sense of insecurity within the region. These include, most obviously, ethno‑political conflicts, civil wars, and color revolutions; the lackluster development of Western‑style governance institutions; and the widely‑held perception of ongoing high levels of corruption. Even the potentially positive strategic consequences of the outcome of the Second Karabakh War—namely, the prospect for the normalization of two sets of bilateral relationships (Armenia‑Azerbaijan and Armenia‑Türkiye) and the unblocking of all economic and transport connections in the region—have been overshadowed by the ongoing restructuring of world order, manifested by the increase of geopolitical volatility and ambiguity due to the major escalation of the conflict over Ukraine whose present phase began on 24 February 2022. The effects of the Western‑led sanctions and export restrictions regime against Russia have spilled over into the South Caucasus— notwithstanding the fact that none of the region’s states have formally aligned themselves with them. This essay provides an overview of the reverberations of the conflict over Ukraine towards the South Caucasus, with a focus on its impact on the region’s political, economic, and security environment.
- Topic:
- Security, Military Strategy, Governance, and Regionalism
- Political Geography:
- Europe, Caucasus, and Asia
670. ‘Strasbourg’ in the South Caucasus: The EU’s Opportunities, Obstacles, and Incentives
- Author:
- Rick Fawn
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- Implausible might be the hyperbole of “once in a generation.” Occasionally, overstatement is legitimate and necessary. Just as the Baku‑Tbilisi‑Ceyhan (BTC) pipeline revolutionized development and income in the South Caucasus a generation ago, so too (and more) are the prospects of reconstruction in the region due to Azerbaijan’s victory in the Second Karabakh War. The possibilities for win‑win progress and growth are truly unprecedented. Hyperbolic hope faces challenges, and they need reconciliation with the unprecedented opportunities now recasting the South Caucasus— with potential betterment of the peoples and countries of the region, and even for the wider world. This essay first considers the momentous changes already underway as well as the significances they portend. It then assesses obstacles, and thereafter suggests ‘Strasbourg’ as a multi‑faceted label for contributions both to overcome them and help to realize fully the ambitions for this region. To be precise: ‘Strasbourg’ here means the physical, technological, and financial involvement of the EU in regional infrastructural development, including linkages of the South Caucasus more widely, and also as a metaphor for deep‑seated, historically truthful reconciliation. (In the Summer 2021 edition of Baku Dialogues, elements of both meanings were put forward by F. Murat Özkaleli in an article titled “Winning the Peace” and are built upon here.) This thinking takes even greater significance as Euro‑Atlantic planning will concentrate on redefining relations in this region due to conflict over Ukraine.
- Topic:
- Security, Regional Cooperation, European Union, and Regionalism
- Political Geography:
- Europe, Caucasus, and Asia
671. The Lynchpin of the Middle Corridor
- Author:
- Anthony Kim
- Publication Date:
- 10-2022
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- Particularly in today’s evolving geopolitical and economic reality triggered by Russia’s invasion of Ukraine, the Caspian region has gained greater relevance whilst acquiring renewed significance. More specifically, one of the geostrategic consequences of Putin’s ongoing assault against Ukraine and its broader implications for the global economy has been the enhanced impetus for ensuring the pragmatic and strategic utility of the “Middle Corridor” (also more formally known as the Trans‑Caspian International Transport Route, or TITR) for the Caspian region and beyond as a viable commercial transport route alternative to the long‑established northern pathway through Russia. China, which has been eager to expand its economic networks, had hoped to dominate economically the utilization of the Middle Corridor as part of an expanding BRI. But at least some of the countries in the region (and beyond) have grown increasingly uneasy about participating in it. They have viewed China as leaving many of its BRI promises unfulfilled. And they have also become more concerned that Beijing’s BRI engagement comes with too many geopolitical strings attached and can lead to debt traps. By and large, China has invested in a number of infrastructure projects in Central Asia within the framework of BRI. Most of China’s activity has taken place on the eastern shore of the Caspian. Major port, pipeline, and infrastructure projects on the Caspian’s western shore have been done without much, if any, direct Chinese involvement. Making the Middle Corridor work properly is not an easy task: it will take considerable degrees of time, financial means, and political commitment. With many economic and political challenges lingering around, by no means, the cross‑country transportation route could become the cheapest option any time soon. Nonetheless, in an increasingly raucous world where diversifying supply chains reduce risk and has become more desirable, the route could become not only fully viable but, more importantly, truly cost‑effective.
- Topic:
- Security, Development, Geopolitics, and Strategic Interests
- Political Geography:
- Europe and Asia
672. Seeking Safety: Roma Refugees in Moldova – Challenges and humanitarian needs
- Author:
- Charlotte Greener and Emly de Andrade Costa
- Publication Date:
- 10-2022
- Content Type:
- Policy Brief
- Institution:
- Oxfam Publishing
- Abstract:
- The war in Ukraine has displaced millions of people to neighbouring countries – but some groups who already face poverty and discrimination in society, including Roma people, are facing particular challenges accessing the safety they need. This paper outlines the results of Oxfam’s rapid assessment of Roma refugees in Moldova in July 2022, highlighting the challenges that Roma refugees face when trying to access assistance, and some key humanitarian needs of these refugees. It aims to help amplify the voice of Roma refugees and to inform a humanitarian response – from the Moldovan government, United Nations (UN) agencies, and non-government organizations (NGOs) – that is more inclusive of Roma refugees, and more responsive to their particular needs.
- Topic:
- International Cooperation, United Nations, Refugees, and Humanitarian Crisis
- Political Geography:
- Europe and Moldova
673. A Revitalized NATO and Its "New Strategic Concept" Amin Global and Regional Changes
- Author:
- E. Fuat Keyman
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- At the beginning of 2022, just as the globalizing world was entering the postCovid period and the United Nations Climate Change Conference declared a “code red” emergency for the climate crisis at COP 27, a strategically calculated move came from Russian President Vladimir Putin to unlawfully invade Ukraine. From the beginning, the invasion of Ukraine has generated impacts much larger and more transformative than any previous crisis, triggering serious crisis-ridden developments in the international system and globalization and forcing national governments and global actors to recalibrate and reposition. It is in this global and broader context NATO’s Madrid Summit and its “new Strategic Concept” should be analyzed and assessed. This paper argues that the summit is historic, necessary, but not sufficient. To substantiate this argument, it analyzes is NATO’s new strategic concept in detail, exploring its critical importance, its transformative effect and the six challenges that it faces.
- Topic:
- Security, Military Strategy, and Strategic Interests
- Political Geography:
- Europe and North America
674. NATO's Changing Priorities
- Author:
- Ahmet O Evin
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- Russia’s invasion of Ukraine seems to have led, with very few exceptions, to greater cooperation among members of the Western alliance and brought the transatlantic partners closer to one another. As a result, NATO, which has undergone several changes since the end of the Cold War, has regained its key role as the cornerstone of the West’s collective security interests. In its enhanced position, NATO also appears to be emerging as the champion of the liberal order as well as the universal values embraced by transatlantic partners. Yet, it may also be facing new challenges both from within, particularly in the case of a prolonged conflict in Europe, and from China, which is demonstrating increasing rivalry to the West.
- Topic:
- Security, Defense Policy, NATO, Military Strategy, and Strategic Interests
- Political Geography:
- Europe and North America
675. Geopolitical Consequences of the War in Ukraine
- Author:
- John Rennie Short
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- The Russian invasion of Ukraine signals a new world order that has developed from the bipolar world of 1945 to 1991 and the brief unipolar interlude from 1991 to 2008. This new world order is dominated by a relatively declining U.S. and an emerging Sino-Russo anti American alliance, a renewed sense of the West as a counter to authoritarian regimes and reversal of the globalization trends of the past thirty years. We are moving into a deglobalizing, multipolar world.
- Topic:
- Geopolitics, Conflict, Strategic Interests, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
676. Future Uncertain: NATO in a Post-Quantum Post-AI World
- Author:
- James Sperling
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- The emerging and disruptive technologies of the 21st century—artificial intelligence and quantum technologies—confront NATO with a paradox: the integration of those technologies into national armed forces will significantly narrow and possibly invert the systemic technology dominance NATO has enjoyed since 1945 and widen the technology gap within the Alliance with potentially debilitating consequences for operational effectives and allied cohesion. The precise impact of these disruptive technologies must remain largely speculative, but it is certain that they will change the nature of war-fighting, exacerbate the security dilemma, and precipitate in a recalibration of the global balance of power.
- Topic:
- Defense Policy, NATO, Regional Cooperation, Science and Technology, Military Strategy, and Artificial Intelligence
- Political Geography:
- Europe and North America
677. Russia's Assault on Ukraine: Fallout From the War
- Author:
- Dina R. Spechler and Martin C. Spechler
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- The war between Russia and Ukraine that began on 24 February 2022, has now gone on for more than four months. It has already taken a severe toll on much of the world and will cause much more harm the longer it continues. Moreover, it does not seem likely to end soon. Russian President Vladimir Putin recently declared that Russia has barely begun its military operation in Ukraine. He has clearly stated his goal of taking the entire Donbas. Success in that endeavor may motivate him to continue the fight for other objectives, including the major industrial center of Kharkiv, the key Black Sea port of Odesa, and perhaps even Kyiv and its environs. For his part, Ukrainian President Volodymyr Zelensky has repeatedly said his goal is to push Russia back to the line it occupied on 23 February. His Minister of Foreign Affairs Dmytro Kuleba has spoken of winning back the entire Donbas and liberating “the rest of our territory.” The U.S. Director of National Intelligence has predicted that a “grinding struggle” may continue for a long time. This article will explore some of the consequences of the war already in evidence
- Topic:
- Security, Defense Policy, Military Strategy, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
678. Geopolitics, Geography an the Ukrainian Russian War
- Author:
- Serdar Ş. Güner
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- The trigger of the Ukraine-Russia war is the enlargement of NATO, essentially a Western exploitation of Russian weakness emanating from Soviet Union’s dissolution. Russia has communicated her reactions to the enlargement peacefully until the prospect of Ukraine becoming a NATO member. The second wave of enlargement coming from the direction of neutral states such Finland and Sweden originates from Finnish and Swedish fears of being the next targets of Russian military campaigns. NATO enlargement to Ukraine has caused Russia-Ukraine war that in turn has caused some neutral states to leave their neutrality and become NATO members. Therefore, NATO expansion efforts has led to a further expansion through war. However, the exclusion of and warring with Russia only obliterates the opportunity to form a large alliance to balance China. The West should understand that it is not wise to create incentives for the formation of a Sino-Russian alliance.
- Topic:
- Geopolitics, Conflict, Geography, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
679. The Historical Roots of NATO Engagement in the Mediterranean
- Author:
- Matteo Gerlini
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- The new strategic concept of the alliance looks at the Mediterranean situation as a shift in the engagement with a history that is as old as the origins of the Western bloc. In this history, the Italian role has been an example for the other Mediterranean countries that later joined NATO. The steps in the construction of the Atlantic coalition started also in Mediterranean with U.S. military engagement grounded in Truman’s doctrine. Twenty years late, the North Atlantic Council’s report on the alliance’s future tasks examined crucial “exposed areas” for NATO, and first among them was the Mediterranean. After the collapse of the Soviet system, NATO worked on a relationship of coexistence and cooperation with Russia. The ongoing invasion in Ukraine has thwarted years of discussion and work, but the partnerships promoted by NATO with the countries of the so-called enlarged Mediterranean stand as a success story.
- Topic:
- Security, Defense Policy, NATO, and Military Strategy
- Political Geography:
- Europe and Mediterranean
680. The Future of Women, Peace, and Security at NATO
- Author:
- Diana Morais, Samantha Turner, and Katharine A.M. Wright
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- In a ground-breaking move, Women, Peace, and Security (WPS) features prominently in NATO’s Strategic Concept for the first time, a powerful signal that it will form a central part of NATO’s changing priorities going forward. At the same time, there have been significant gendered silences in NATO and its allies’ response to the Russia-Ukraine War, undermining these policy aspirations. This is despite over a decade of significant investment in the WPS architecture across NATO’s political and military structures, including the creation of a high-level Special Representative on Women, Peace, and Security, reporting directly to the Secretary General and supporting a comprehensive WPS policy adopted in conjunction with NATO partners. Focus therefore needs to be given to what NATO can do to operationalize the WPS aspirations of the new Strategic Concept in practice.
- Topic:
- Security, NATO, Women, and Peace
- Political Geography:
- Europe and North America
681. A Compass and a Concept: A Guide to the EU and NATO Strategic Outlooks
- Author:
- Ricardo Borges de Castro and Rita Barbosa Lobo
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- Russia’s war of aggression on Ukraine launched on 24 February 2022 upended Europe’s security order. The invasion was a wake-up call that peace in the continent should not be taken for granted and a catalyst for change at European and transatlantic level. The EU adopted a long-term Strategic Compass for security and defense. NATO, no longer “braindead,” issued a new Strategic Concept for the coming decade and is expanding. While there is convergence in strategic outlooks, questions remain on how both organizations will cooperate and coordinate their actions, implement the investment, troops and capabilities’ goals set in each document as well as deal with countries such as China.
- Topic:
- Security, NATO, Military Strategy, European Union, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
682. NATO After Madrid: Preparing for an Age of Confrontation and Disruption
- Author:
- Daniel S. Hamilton
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- NATO’s Madrid Summit in June 2022 was potentially transformative. Allied leaders agreed to a fundamental shift in NATO’s deterrence and defense posture and to continue the fight against terrorism. They committed to long-term support for Ukraine, they invited Finland and Sweden to join the Alliance, and they unveiled a new NATO Strategic Concept. Alliance members must now translate words into deeds. They must move from deterrence by reinforcement to deterrence by denial. They must bolster their resilience to disruptive forces. They need to offer Ukraine, Georgia, Moldova and other partners what they need to defend themselves. They must address the China challenge. And they must rebalance transatlantic defense burdens by boosting European capabilities.
- Topic:
- Security, Defense Policy, NATO, and Strategic Interests
- Political Geography:
- Europe and North America
683. NATO: The Importance of Activism in the Mediterranean Scenario
- Author:
- Lorenzo Somigli
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- The secure defense of NATO members does not depend on the Kyiv frontline; the southern flank is the most unguarded. This paper deals with the Mediterranean, a closed sea without borders which globalized before globalization, examining some strategic alternatives for Western allies. The Mediterranean is a point of contact, a diaphragm, and a battlefield. In addition, the central Mediterranean is a relevant area where Russia and China have their foot in the door because of the disengagement of France and Italy and the lack of attention of NATO. It is precisely on this weaker frontier that NATO must relaunch its commitment and presence. Defending marine spaces determines the continent’s safety. So, losing the Mediterranean can be disastrous. And finally, it examines Italian policy in the Mediterranean to date and the reasons why Italy can and must correct the strabismus of the USA, which is completely looking at the Indo-Pacific, and of imagines a peripheral Europe without politics.
- Topic:
- Security, Defense Policy, NATO, Military Strategy, and Activism
- Political Geography:
- Europe and Mediterranean
684. Change an Continuity in NATO's Nuclear Priorities
- Author:
- Spenser A. Warren
- Publication Date:
- 08-2022
- Content Type:
- Journal Article
- Journal:
- Turkish Policy Quarterly (TPQ)
- Institution:
- Turkish Policy Quarterly (TPQ)
- Abstract:
- NATO’s new Strategic Concept highlights areas of change and continuity in nuclear priorities. These priorities will be driven by a combination of global and domestic political factors. In this article, I argue that the continued threat posed by Russia, the growth of the anti-nuclear movement in Europe, the rise of China, and the emergence of new nuclear technologies will drive NATO nuclear priorities for the foreseeable future. Russian aggression drives continuity in NATO nuclear priorities, as Russia has been, and will remain, the primary threat to NATO security. Meanwhile, the other factors will combine to force changes to NATO nuclear priorities and policies.
- Topic:
- Security, Defense Policy, NATO, and Nuclear Weapons
- Political Geography:
- Europe and North America
685. The Cyclical Behaviour of Fiscal Policy During the Covid-19 Crisis
- Author:
- Philipp Heimberger
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This paper analyses the cyclicality of fiscal policy (discretionary versus automatic) for 28 advanced economies over 1995-2021 by paying special attention to the Covid-19 crisis. We find evidence that discretionary fiscal policy during the Covid-19 crisis (2020-2021) was significantly more countercyclical than before – in particular in the Eurozone. We do not find comparable evidence for more counter-cyclicality during the financial crisis or Euro crisis, which lends support to the argument that discretionary fiscal policy responded especially forceful to stabilise the economy during the Covid-19 crisis. Furthermore, automatic fiscal stabilisers contributed significantly to counter-cyclical stabilisation, although their performance over 2020-2021 was more in line with the past than for discretionary fiscal policy. Overall, fiscal policy in non-Eurozone advanced countries is more countercyclical than in the Eurozone. However, the cyclicality varies markedly across countries. Our findings shed light on how the cyclical behaviour of fiscal policy varies across countries and time.
- Topic:
- Financial Crisis, Crisis Management, Fiscal Policy, COVID-19, and Euro
- Political Geography:
- Europe
686. Determinants and Effects of Foreign Direct Investment in Austria: Spillovers to Novel Innovative Environmental Technologies
- Author:
- Mahdi Ghodsi and Branimir Jovanovic
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This study investigates the determinants of FDI in Austria, as well as their spillovers to innovating technologies, productivity, and employment, using firm-level data, for the period 2008-2018. The findings point out that a decrease in the costs of trade increases investment in foreign-owned subsidiaries in Austria, and that FDI is pre-dominantly carried out in industries characterised by greater capital-intensity, higher wages, more agglomeration and regional concentration. Furthermore, FDI is higher in regions with a larger GDP and with a larger share of the population with upper secondary and post-secondary non-tertiary education. The study also finds that there are positive spillovers of FDI to the domestic economy, which are strongest and most positive for innovative activities in environmental technologies. In other words, FDI helps Austrian firms to become more innovative in major environmental technologies. Such innovative efforts are best supported at the firm-level by supporting the total assets and investment of domestic firms, and at the regional level by increasing the share of the population with higher levels of education and employing more R&D personnel. The active presence of innovative foreign MNEs that enjoy extensive technological capacities, high-skilled labour, experienced management, and large-scale resources are also conducive to innovative activities.
- Topic:
- Environment, Science and Technology, Foreign Direct Investment, Innovation, and Trade
- Political Geography:
- Europe and Austria
687. Demography, Capital Accumulation and Growth
- Author:
- Robert Stehrer and Maryna Tverdostup
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- Europe will be challenged by demographic changes over the next few decades, even under favourable assumptions about fertility and migration, but the economic effects are not yet fully understood. This paper studies the effects of population ageing on economic growth, capital deepening and robotisation in 27 European Union (EU) labour markets. First, we econometrically assess the effects of ageing and potential labour market shortages on growth. Second, we test the hypothesis of whether ageing leads to faster adoption of new technologies. We distinguish between various capital asset types, including non-ICT and ICT capital, tangible and intangible capital and the adoption of robots. The analysis is based on Eurostat, the European Labour Force Survey (EU-LFS) and International Federation of Robotics (IFR) data. Results indicate that ageing and demographic changes might contribute to secular stagnation, which decelerates the adoption of new technologies.
- Topic:
- Science and Technology, European Union, Economic Growth, Macroeconomics, Aging, Labor Market, and Capital Accumulation
- Political Geography:
- Europe
688. Different Choices, Divergent Paths: Poland and Ukraine
- Author:
- Thorvaldur Gylfason, Eduard Hochreiter, and Tadeusz Kowalski
- Publication Date:
- 12-2022
- Content Type:
- Special Report
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- We compare the economic growth trajectories of Poland and Ukraine since 1990 to try to understand the extent to which the observed growth differentials can be traced to increased efficiency in the use of capital and other factors (intensive growth), rather than to simple accumulation of capital (extensive growth). We stress the role of qualitative factors such as education, governance and institutions. We ask whether the EU perspective and NATO membership played a role. We discuss the closely related histories of the two countries and note the stark differences between them, including their different approaches to the EU vs Russia, full vs incomplete transition to a market economy, and democracy vs anocracy, as well as different initial conditions. We compare key determinants of growth and growth trajectories, using economic as well as social indicators, and trying to disentangle efficiency and accumulation and combine path dependence and the role and scope of creative destruction. While Poland had the shortest and mildest transformation recession among CEE countries, Ukraine has been stagnant, or in decline, since 1990. The statistics we report and the stories we tell suggest that both countries have a complex relationship with democracy and that the nearly threefold difference in per capita GDP at PPP in 2021 in Poland’s favour, with the ratio of investment to GDP similar in both countries, can most plausibly be traced to: (a) Poland’s more extensive and diversified exports, and fewer restrictions on trade, in addition to more comprehensive and quicker restructuring of the national economy inspired by the EU perspective; (b) Poland’s more extensive and better-quality education; (c) Poland’s greater democracy and longer experience of democracy, lower levels of corruption, better governance, and freer press; (d) Poland’s smaller agricultural sector and greater emphasis on manufacturing; and (e) Poland’s lower inflation and higher level of financial development. Furthermore, Poland built market-friendly institutions to EU specifications and joined NATO. Against all this, Ukraine had more economic equality and lower unemployment as well as, from the early 1990s, a lower initial level of income per person, but was hampered by political divisions, path-dependent corruption and poor governance. During the global Covid-19 pandemic, Ukraine apparently suffered fewer deaths than Poland, despite fewer vaccinations.
- Topic:
- Economics, Education, Governance, Reform, European Union, Economic Growth, Inflation, Exports, Transition, and Labor Market
- Political Geography:
- Europe, Ukraine, and Poland
689. Economic and Social Impacts of FDI in Central, East and Southeast Europe
- Author:
- Doris Hanzl-Weiss and Branimir Jovanovic
- Publication Date:
- 11-2022
- Content Type:
- Special Report
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This study assesses the economic and social impacts of foreign direct investment (FDI) in 17 economies in Central, East and Southeast Europe (CESEE). More precisely, we investigate how different FDI inflows have affected various economic and social indicators, such as GDP growth, labour market outcomes, and poverty and inequality, for the period since the fall of communism until 2020. We pay particular attention to FDI that originates from the EU, as well as FDI from Germany and Austria, in order to evaluate whether their effects are different from the effects of FDI from other places of origin. We also examine whether there are differences in the impacts of different types of FDI – equity capital, reinvested earnings and intra-company debt, as well as of FDI that goes to different sectors of the economy – the primary, secondary and tertiary sectors. We find that FDI inflows have had, in general, a positive effect on economic growth in CESEE, and that this effect has been particularly strong for German and Austrian FDI. For total FDI, higher inflows of 1 percentage point (pp) of GDP are associated with 0.19 pp higher GDP growth. For FDI from Germany and Austria, this effect is five times higher – FDI inflows of 1 pp of GDP have led to 0.9 pp higher GDP growth. The positive GDP effects have come from the higher consumption and exports that the FDI has induced. FDI inflows have also reduced unemployment and increased wages, but have had no effects on labour productivity. Total FDI has had only limited effects on inequality and poverty, but FDI from Germany and Austria has been found to reduce both inequality and poverty, likely because they have benefitted mainly lower-income persons. There are differences in the effects of the different types of FDI, with reinvested earnings and equity capital having in general more beneficial effects than intra-company loans. Also, FDI in different sectors of the economy has had different effects, with inflows to the secondary and tertiary sectors having greater effects than inflows to the primary sector. The policy implications of these results are that CESEE economies should not give up on their efforts to attract more FDI, but also that their endeavours should be more targeted, focusing on investments that have greater economic and social impacts. Moreover, foreign investment should not be criticised for the perhaps unsatisfactory economic and social performances of the economies from this region. Instead, the reasons for this should be sought in domestic factors and in the modest growth of the European Union during the past two decades.
- Topic:
- Development, International Trade and Finance, Poverty, Foreign Direct Investment, Inequality, Economic Growth, and Unemployment
- Political Geography:
- Europe, Eastern Europe, Germany, and Austria
690. How do Economies in EU-CEE Cope with Labour Shortages?
- Author:
- Vasily Astrov, Richard Grieveson, Doris Hanzl-Weiss, Sebastian Leitner, Isilda Mara, Hermine Vidovic, and Zuzana Zavarská
- Publication Date:
- 11-2022
- Content Type:
- Special Report
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- The EU member states in Central and Eastern Europe (EU-CEE) have been experiencing increasing labour shortages, which only briefly subsided in the wake of the COVID-19 pandemic. Ongoing demographic decline suggests that labour shortages will only get stronger over time. As a result, the bargaining power of labour has increased, wages have been generally rising ahead of labour productivity, and industrial action (strikes) – the level of which has remained low in recent decades – has emerged in some instances. In the face of labour and skill shortages, people have been investing in education. The share of employees with tertiary education has increased, and vocational training has gained in importance, although active labour market policies have been used only selectively. Employers have increasingly been investing in fixed assets, especially in manufacturing, and the degree of robotisation has risen strongly. Despite domestic concerns that automation would generate massive job losses, our findings suggest that capital deepening has taken place faster where labour was in higher demand. Thus, labour was not substituted with capital, but rather the complementary effect prevailed. Employment actually increased in EU-CEE over the past two decades – despite the shrinking working-age population. Employers could hire not only the formerly unemployed, but also the formerly inactive, and used the relaxed immigration policies to attract foreign workers, especially from Ukraine and the Western Balkans. Czechia, Hungary, Slovenia and Slovakia and most recently Poland have become net receivers of migrants, while in Bulgaria immigration largely compensates for the natives who go abroad. However, immigration from non-European countries as a general solution to the problem of labour shortages in the region is highly problematic in the current domestic political context. Overall, both our findings for the EU-CEE region over recent years and the experience of Western Europe during the ‘golden age’ (1950-1973) suggest that labour shortages are not in themselves an obstacle to rapid structural change and income growth. However, for such an economic model to be sustainable, more active government policies will be needed, such as greater public investment in education and training, higher minimum wages in order to encourage automation, and more extensive welfare networks in order to deal with the possible negative short-run side-effects of automation.
- Topic:
- Migration, Labor Issues, European Union, Populism, Vocational Training, Investment, Labor Market, Trade Unions, and Immigration Policy
- Political Geography:
- Europe
691. Democracy, Demography, and the Future of the European Union
- Author:
- Dubravka Šuica and William Kattrup
- Publication Date:
- 09-2022
- Content Type:
- Journal Article
- Journal:
- Brown Journal of World Affairs
- Institution:
- Brown Journal of World Affairs
- Abstract:
- Dubravka Šuica is the European Commission Vice President for Democracy and Demography. She is leading the Commission’s work on deliberative democracy, the Conference on the Future of Europe (CoFoE), demography, children’s rights, and child protection.
- Topic:
- Demographics, Children, European Union, Democracy, and Protection
- Political Geography:
- Europe
692. EU-Azerbaijan Economic Relations: New Perspectives and Targets
- Author:
- CESD Research Team
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Center for Economic and Social Development (CESD)
- Abstract:
- The study is an example of the series on issues analyzing the EU-Azerbaijan economic relations which can be considered a step forward to empower economic approach in the policy-making process aiming to provide an alternative view in addressing current challenges and developments in Azerbaijan. The European Union’s relations with Azerbaijan have been formulated based on the EU-Azerbaijan Partnership and Cooperation Agreement which entered into force since 1999. In February 2017, the EU and Azerbaijan began negotiations on a new framework agreement designed to enhance the political dialogue, trade and mutually beneficial cooperation covering a wide range of economic aspects. One of the most important strategies of EU in the energy policy is to ensure energy security through diversification of energy routes. Azerbaijan is a strategically important energy partner for the EU and plays a significant role in bringing Caspian energy resources to the EU market. In 2018, the EU and Azerbaijan endorsed joint Partnership Priorities, along the four Eastern Partnership priorities that accompany the political dialogue and economic cooperation….
- Topic:
- International Relations, Economics, European Union, and Partnerships
- Political Geography:
- Europe, Caucasus, and Azerbaijan
693. THE MIGRATION STRATEGIES AND POSITIONS ON THE EU MIGRATION AND ASYLUM AGENDA: EVIDENCE FROM THE VISEGRAD GROUP COUNTRIES
- Author:
- Tomáš Kajánek
- Publication Date:
- 12-2022
- Content Type:
- Journal Article
- Journal:
- Journal of Liberty and International Affairs
- Institution:
- Institute for Research and European Studies (IRES)
- Abstract:
- At the time of the outbreak of the migration crisis in Europe, the Visegrad Group gained the status of the EU troublemaker due to its opposition to the solidarity and cohesion mechanisms adopted on the European level. The migration strategies (not only) of the individual states of the grouping proved insufficient and unfeasible in times of crisis. However, in the case of the Czech Republic, Hungary, Poland and the Slovak Republic, the absence of national mechanisms and solutions was partially replaced after 2015 by joint declarations and statements rejecting active cooperation in resolving migration and asylum pressures within the EU Single Market. Despite failing to manage migratory pressures since 2015, four Central European countries have not learned their lessons and will face unprecedented crises in 2022 again. This time, however, Visegrad countries became the first-line countries affected by the refugee crisis. The migration and asylum agenda is thus becoming an extremely complex problem within the Visegrad Group region due to the initially intense politicization of the topic by the government elites in individual states. The paper analyses the migration strategies of individual states and the migration and asylum management-related positions after the migration crisis in 2015 and the sequence of events associated with the outbreak of armed conflict in Ukraine in early 2022.
- Topic:
- Migration, European Union, Asylum, and Visegrad Group
- Political Geography:
- Europe
694. World Economy Winter 2022: Strong headwinds for global economic activity
- Author:
- Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- Global growth has decelerated over the course of the year under the impact of high energy prices and great uncertainty. Monetary policy, which is being tightened very quickly in view of high inflationary pressure across the board, is now also putting a drag on economic activity. Overall, production remained on an upward trend into the fall, with impetus coming from easing supply bottlenecks and the continuing normalization of activity in those sectors of the economy particularly affected by the Covid-19 pandemic. Towards the end of the year, however, economic momentum weakened noticeably further. The major advanced economies in particular are currently facing a period of weak economic activity despite considerable fiscal support measures. At the same time, the problems for the Chinese economy remain significant. While global output (measured on a purchasing power parity basis) at 3.2 percent is expected to grow by 0.3 percentage points more this year than expected in September, we continue to forecast an increase of only 2.2 percent next year. For 2024, our expectation has even been reduced slightly to 3.2 percent, mainly because we do expect the US economy to recover slowly. Inflation is likely to have peaked and is expected to slow significantly over the forecast horizon thanks to lower commodity prices and easing economic tensions. However, underlying inflation is not likely to return to target levels until the end of the forecast period.
- Topic:
- Monetary Policy, Economy, Business, COVID-19, and Emerging Economies
- Political Geography:
- China, Europe, Asia, North America, and United States of America
695. German Economy Winter 2022: Inching through the energy crisis
- Author:
- Jens Boysen-Hogrefe, Dominik Groll, Nils Sonnenberg, Nils Jannsen, Stefan Kooths, Vincent Stamer, and Timo Hoffmann
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- Wholesale prices for gas and electricity have fallen significantly in recent months - even though they are still at a high level. In addition, the burdens on private households and companies caused by high energy costs are to be cushioned by so-called price brakes. Overall, inflation in 2023 will be much lower at 5.4 percent than we had expected in our autumn forecast (8.7 percent). Although real disposable income and, as a result, private consumption are likely to decrease next year, the decline will be much smaller than had been expected a few months ago. As a result, we now expect a slight increase in GDP of 0.3 percent for 2023 (autumn: -0.7 percent). In 2024, GDP is expected to grow somewhat more strongly again at 1.3 percent (autumn: 1.7 percent). The labour market is robust despite the economic slowdown, partly because companies are still desperately seeking skilled workers. The public fiscal balance is likely to deteriorate significantly in 2023 due to the aid packages in response to the energy crisis and displays a deficit of around 4 percent relative to GDP. With the expiry of the aid packages, the deficit will decrease again in 2024.
- Topic:
- Economics, Monetary Policy, Budget, Business, Labor Market, Energy Crisis, Emerging Economies, and Advanced Economies
- Political Geography:
- Europe and Germany
696. World Economy Autumn 2022: Global growth falters
- Author:
- Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- In spring 2022, world economic growth came to a standstill amid high inflation, persistent supply bottlenecks and elevated uncertainty. In many countries real wages are declining significantly dampening private consumption even though extra savings accumulated during the pandemic are still available to mitigate the adverse impact to some extent. At the same time financial conditions have also deteriorated as central banks tightened their policies. In China, the strict zero-covid policy and problems in the real estate sector are slowing economic activity. Against this backdrop, the outlook for the global economy has deteriorated further. We have, again, lowered our forecast and are now expecting global output to increase by only 2.9 percent this year and 2.2 percent next year (calculated on a purchasing power parity basis). The forecast assumes that commodity prices will gradually decline in line with forward prices, which will over time reduce the upward pressure on prices and provides the foundations for an economic upturn in 2024. However, the pass-through of higher commodity prices into consumer prices is probably not yet complete and wage increases are likely to intensify in many countries. Consequently, underlying inflation is likely to remain higher than in the years before the Covid crisis and remain above central bank targets over the forecast horizon.
- Topic:
- Monetary Policy, Business, COVID-19, Zero-COVID, Emerging Economies, and Advanced Economies
- Political Geography:
- China, Europe, Asia, North America, and United States of America
697. Why do Preferences for Redistribution Differ Across Countries?
- Author:
- Gianluca Grimalda, Francesco Farina, Anna Conte, and Ulrich Schmidt
- Publication Date:
- 07-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- We test for different theories purporting to explain cross-country differences in income redistribution through standardized experimental choices. US Americans and Italians demand less redistribution than Norwegians and Germans, regardless of whether self-interest is relevant. Those earning (or expecting to earn) below-median incomes behave as "libertarians" more frequently in the US and Italy than in Germany and Norway. Above-the-median earners behave similarly across countries. Higher overconfidence by US Americans and Italians further reduces their demand for redistribution under uncertainty. The "Prospect of Upward Mobility" hypothesis holds similarly in all countries. US Americans do not reward individual merit more than others.
- Topic:
- Economic Mobility, Redistribution, Income Distribution, and Behavioral Economics
- Political Geography:
- Europe, Italy, North America, and United States of America
698. Regional Deprivation and Populism - Evidence from Germany and the U.S.
- Author:
- Michael Bayerlein
- Publication Date:
- 07-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- A widely held view is that increasing globalisation and inequality are fostering support for populist actors. Surprisingly, when focusing on Germany and the U.S., populist voting is highest in less globalised regions with rather equal income distributions. Addressing this puzzle, I ask how the regional variance in populist voting can be explained. In my answer, I introduce the concept of spatial inequality, which describes the regional inequality within countries, and construct a measure of public goods scarcity. I argue that the spatial inequality induced feeling of being left behind is positively correlated with populist voting and that this effect is mitigated by public goods provision. Using county level data to develop spatial inequality and public good scarcity indices, I can provide empirical support for these arguments. The findings have important implications for understanding the sub-national variance in populist voting and the role of relative economic deprivation as well as public goods provision.
- Topic:
- Globalization, Inequality, Populism, Voting, Regional Economy, and Public Goods
- Political Geography:
- Europe, Germany, North America, and United States of America
699. Brothers in arms: The value of coalitions in sanctions regimes
- Author:
- Sonali Chowdhry, Julian Hinz, Katrin Kamin, and Joschka Wanner
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- This paper examines the impact of coalitions on the economic costs of the 2012 Iran and 2014 Russia sanctions. By estimating and simulating a quantitative general equilibrium trade model under different coalition set-ups, we (i) dissect welfare losses for sanction-senders and target; (ii) compare prospective coalition partners and; (iii) provide bounds for the sanctions potential — the maximum welfare change attainable — when sanctions are scaled vertically, i.e. across sectors up to an embargo, or horizontally, i.e. across countries up to a global regime. To gauge the significance of simulation outcomes, we implement a Bayesian bootstrap procedure that generates confidence bands. We find that the implemented measures against Iran and Russia inflicted considerable economic harm, yielding 32 – 37% of the vertical sanctions potential. Our key finding is that coalitions lower the average welfare loss incurred from sanctions relative to unilateral implementation. They also increase the welfare loss imposed on Iran and Russia. Adding China to the coalition further amplifies the welfare loss by 79% for Iran and 22% for Russia. Finally, we quantify transfers that would equalize losses across coalition members. These hypothetical transfers can be seen as a sanctions-equivalent of NATO spending goals and provide a measure of the relative burden borne by coalition countries.
- Topic:
- Globalization, International Trade and Finance, Markets, Sanctions, Alliance, and Embargo
- Political Geography:
- Russia, China, Europe, Asia, North America, and United States of America
700. Interpretation and Application of the ECHR: Between Universalism and Regionalism
- Author:
- Mattias Guyomar
- Publication Date:
- 11-2022
- Content Type:
- Journal Article
- Journal:
- The Goettingen Journal of International Law
- Institution:
- The Goettingen Journal of International Law
- Abstract:
- e protection of human rights guaranteed by the Council of Europe, in particular through the Convention for the Protection of Human Rights and Fundamental Freedoms and the supervision exercised by the European Court of Human Rights, has a dual dimension: its universal vocation goes hand in hand with the regional nature of its implementation. Tensions between universalism and regionalism play out in a fruitful and productive way.
- Topic:
- Human Rights, International Law, Regionalism, Universalism, and European Court of Human Rights (ECHR)
- Political Geography:
- Europe