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11. North Korea’s Covid-19 Outbreak: An Opening for Engagement?

Author:
Lorenzo Mariani and Leonardo Bruni
Publication Date:
06-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
In January 2020, in response to the novel coronavirus, the Democratic People’s Republic of Korea (DPRK; North Korea) closed its borders and for the next two years claimed it had not experienced a single case of Covid-19. However, on 12 May 2022, North Korea disclosed a severe domestic outbreak and in the following weeks began reporting millions of cases of “fevers” and several deaths.[1] Pyongyang’s admission was initially interpreted as a veiled request for international assistance as the country is particularly vulnerable due to its zero per cent vaccination rate, inadequate healthcare system and chronic food insecurity. However, as with previous attempts during the height of the pandemic, offers of aid and vaccines from the Republic of Korea (ROK; South Korea), the US, international organisations (IOs) and multilateral initiatives like COVAX received no response; most likely due to suspicion of the aid being politicised.[2]
Topic:
Health, Foreign Aid, European Union, Economy, and COVID-19
Political Geography:
Asia and North Korea

12. How to make Indonesia’s sovereign wealth fund work

Author:
Kyunghun Kim
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The Indonesian government has established a sovereign wealth fund: the Indonesia Investment Authority (INA). Unlike many other sovereign wealth funds that manage large national savings, INA seeks to attract foreign co-investors to help fund economic development. INA’s near-term role is to purchase assets from heavily-indebted infrastructure-related state enterprises to improve their financial health and allow them to carry out further development projects. INA’s corporate governance arrangements are reasonable on paper. Much will depend on implementation. INA has attracted interest from a variety of international financiers, including state-backed investors from the United States, Japan, United Arab Emirates, and China. Clarifying INA’s investment goals and strengthening external monitoring mechanisms could help attract greater interest.
Topic:
Sovereign Wealth Funds, Economy, Investment, and Corporate Governance
Political Geography:
Indonesia and Southeast Asia

13. Revising down the rise of China

Author:
Roland Rajah and Alyssa Leng
Publication Date:
03-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
China will likely experience a substantial long-term growth slowdown owing to demographic decline, the limits of capital-intensive growth, and a gradual deceleration in productivity growth. Even with continued broad policy success, our baseline projections suggest annual economic growth will slow to about 3% by 2030 and 2% by 2040, while averaging 2–3% overall from now until 2050. China would still become the world’s largest economy, but it would never enjoy a meaningful lead over the US and would remain far less prosperous and productive per person even by mid-century.
Topic:
Demographics, Economy, Economic Growth, and Strategic Competition
Political Geography:
China, Asia, and United States of America

14. The Russian invasion to Ukraine: An agribusiness perspective

Author:
Hugo Krajnc
Publication Date:
03-2022
Content Type:
Commentary and Analysis
Institution:
Argentine Council for International Relations (CARI)
Abstract:
It is quite relevant that the arguments used to justify the Russian invasion to Ukraine do not highlight economic components. Although it may be difficult to assert that such decision was also driven by economic issues, it is quite hard as well to deny that those were not involved, given the traditional Russian geopolitical perspective.
Topic:
War, Economy, Conflict, and Agribusiness
Political Geography:
Russia, Ukraine, and Eastern Europe

15. Military Effects Of Economic Sanctions On Russia

Author:
Davit Shatakishvili
Publication Date:
01-2022
Content Type:
Commentary and Analysis
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
Russia’s military industry is a fundamental factor of its national power. The enterprises operating in its defense sector are largely state-owned. Consequently, Russia’s sizeable military corporations and their subsidiary organizations operate not on the principles of a competitive domestic market, which is one of the key foundations of technological progress, but their main goal is to pursue Moscow’s political interests and ensure the stability of the regime. Accordingly, along with military capabilities, having a powerful economic leverage in the form of energy resources, encourages Russia not only to pursue its own economic interests but also intimidate neighboring countries and extort their territories to satisfy its imperialist intentions. The responsibility of the defense industry in Moscow’s current governing model is exactly on what the Russian government itself has based its legitimacy - military modernization, restoring Russia’s strength and greatness. One of its ill-favored manifestations is the military aggression in Ukraine which is claiming the lives of thousands of innocent people. The unprecedented scale of sanctions imposed by the West will clearly affect Moscow’s defense capabilities but the only questions are - when and to what extent? Russian military production, on the one hand, helps the country to pursue an aggressive foreign policy and, on the other hand, arms exports are an important source of country’s budgetary revenues. At the same time, this allows it to exert political influence over the purchasing states. The collapse of the Russian attack on Ukraine may not only sacrifice the hegemonic goals of the latter but also lead to the loss of existing and potential customers of its military weapons. There is no doubt that Russia is experiencing colossal military losses as a result of the war and, at the same time, questions are being raised about the quality of its arms and heavy equipment. Until now, there has been a consensus that Russian armaments were a viable and affordable alternative to Western weapons, although this statement could also be another victim of the war. As a result of the sanctions, Russia faced not only financial but also technical problems. In addition to Western countries, Asia’s leading technology powers have restricted Russia’s access to critical components needed for military production. Existing restrictions apply to advanced technologies such as semiconductors, telecommunications equipment, software and encryption, microelectronics, aviation systems, oil extraction equipment and other manufacturing components. In this context, it is important to discuss the impact that economic sanctions may have on Russia’s military capabilities, its recovery prospects and its aggressive foreign policy in the future.
Topic:
Sanctions, Military Affairs, Economy, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, and Eastern Europe

16. A Saudi-Pakistani Reset: Business as Usual?

Author:
Joshua Albin Cheyaden
Publication Date:
01-2022
Content Type:
Commentary and Analysis
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
“Saudi Arabia and Pakistan are back on track,” declared ʿAli ʿAwadh ʿAsseri, a former Saudi ambassador to Pakistan, following Pakistani Prime Minister Imran Khan’s state visit to Riyadh in May 2021.[1] Khan’s visit ended a two-year diplomatic rift that had marred a close relationship spanning seven decades.[2] The Pakistani Prime Minister’s visit reopened vital channels of communication that had been shut for almost a year and signaled a “reset” in Saudi-Pakistani relations.[3] The rift between Pakistan and Saudi Arabia began in 2019 and peaked in 2020, while the year 2021 was marked by calls for a reset in their relations.[4] Saudi Arabia’s deepening ties with India remain at the heart of the Saudi-Pakistani split, and they are unlikely to change despite any presumptive diplomatic reset between Pakistan and Saudi Arabia. Saudi Arabia’s increasing engagement with India as a key energy client is just one aspect of a broader transformation the Kingdom is experiencing under Saudi Crown Prince Mohammed bin Salman.[5] At the same time, Pakistan is in a deep economic crisis and is looking for foreign investment in major infrastructure projects to generate employment in the country.[6] In 2021, Pakistan declared its intention to pursue a foreign policy guided by its focus on economic security over its geopolitical interests.[7] Therefore, the long-term prospects for the Saudi-Pakistani reset depends on Pakistan’s ability to accept Saudi Arabia’s more even-handed India-Pakistan policy and the Saudis’ willingness to invest in an economic partnership with Pakistan.
Topic:
Diplomacy, Bilateral Relations, and Economy
Political Geography:
Pakistan, South Asia, Middle East, India, and Saudi Arabia

17. Responding to the Looming Food Crisis and Managing Political Stability in Indonesia

Author:
Bustanul Arifin and Maria Monica Wihardja
Publication Date:
08-2022
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
In this issue briefing, Dr. Bustanul Arifin, Professor of Agricultural Economics at Lampung University, and Dr. Maria Monica Wihardja, Economist and Visiting Fellow at the ISEAS-Yusof Ishak Institute, analyze the impending food crisis in Indonesia. First, they provide an overview of the global food economy and the factors affecting food price inflation in Indonesia, including COVID-19, the war in Ukraine, and rising oil and gas prices. Then, they discuss the policy measures Indonesia has adopted to bolster food security, which include initiatives to increase agricultural production and address problems at all levels of the distribution chain, including creating social welfare programs to expand food access. Looking to the future, the authors argue that protectionist and isolationist policies like import/export bans are counterproductive. Rather, food supply chains should be considered a global public good; international cooperation on protective mechanisms like global and regional food buffer stocks can help to ward off crises when unexpected disruptions in the food supply chain occur.
Topic:
Democracy, Economy, Political stability, and Food Crisis
Political Geography:
Indonesia and Southeast Asia

18. The Influence of the COVID-19 Pandemic on the DPRK-China Economic Ties and their Impact on the Korean Peninsula

Author:
Eun-lee Joung
Publication Date:
10-2022
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
In normal economies, currencies weaken in times of difficulty, but something counter-intuitive happens in North Korea. Eun-lee Joung, a research fellow at Korea Institute for National Unification claims that the value of the North Korean won appreciated, and the market prices were remarkably stable although North Korea’s economy suffered its biggest contraction during the pandemic situation. Dr. Joung states that the partial lockdown of the border between North Korea and China, and North Korea’s various changes to deal with the sanctions including the substitution of imported goods with domestic goods may have contributed to the outcome. Meanwhile, she mentions that intensifying U.S.-China strategic competition and the possibility of a prolonged conflict between Russia and Ukraine could increase North Korea’s economic reliance on China and Russia which will impede the re-establishing relations between the two Koreas. However, as the cooperation between North Korea and China in tourism has increased up before the COVID-19 outbreak, Dr. Joung highlights that Pyongyang’s tourism industry is likely to expand, which is expected to stimulate non-governmental exchange and induce North Korea toward openness.
Topic:
Economy, Currency, COVID-19, and Unification
Political Geography:
China, Asia, South Korea, and North Korea

19. Argentina 20 Years After La Crisis del 2001

Author:
María Félix Herrera and María Félix Herrera
Publication Date:
04-2022
Content Type:
Commentary and Analysis
Institution:
The North American Congress on Latin America (NACLA)
Abstract:
As the government closed a new agreement with the International Monetary Fund, Argentine societyrevisited painful memories from its biggest financial crisis in recent history.
Topic:
Financial Crisis, Economy, and IMF
Political Geography:
Argentina and South America

20. CONTAINMENT 2.0: SANCTIONS FOR THE LONG HAUL

Author:
David A. Lake
Publication Date:
03-2022
Content Type:
Commentary and Analysis
Institution:
Political Violence @ A Glance
Abstract:
The West is not imposing coercive sanctions on Russia to stop its current aggression. No one seriously expects that the sanctions will cause President Putin to withdraw from Ukraine. NATO made clear before the war that its members will not defend Ukraine with military force. The European members have also, as expected, carved out exceptions to the sanctions regime for oil and gas so as not to impose too much pain on their own economies. Putin anticipated the general scope of the sanctions likely to be imposed on Russia and decided it was worth invading Ukraine anyways. While he may have been surprised by the extent of the sanctions and unity of NATO so far, this is not enough to alter his calculus. Indeed, he is doubling down on the original plan. He also knows that he has other weapons and forms of coercion against the West up his sleeve. Rather, we are seeing the birth of a possible Containment 2.0, a forced decoupling of Russia from the Western international economy. This is a long-term, not a short-term, strategy. The point is to undermine the Russian economy, stifle its technological progress, deny Russians a standard of living comparable to that of the West, and break support for the regime over time. In doing so, the West undermines Russia’s ability to compete militarily, aiming to forestall further Ukraines, and weakens Putin’s hand at home and abroad.
Topic:
NATO, International Trade and Finance, Sanctions, Economy, and Containment
Political Geography:
Russia, Europe, Ukraine, Global Focus, and United States of America