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Begin New Search Topic Governance Political Geography Global Focus Content Type Policy Brief Publication Year within 5 Years Publication Year within 1 Year Publication Year within 10 Years

1. Energy investment in a time of inflation

Author:
Charles Lichfield and Joseph Webster
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
High rates of inflation across the world are forcing central banks to reluctantly tighten monetary policy despite accompanying recession risks. Moreover, restricted credit access could jeopardize energy investments, particularly for capital-intensive clean energy projects, potentially rendering the world more vulnera­ble energy to price shocks, which are a significant contributor to the current crisis. This paper briefly considers the macroeconomic drivers of inflation in late 2022, including Russia’s war in Ukraine and uncertainties around energy supply, supply-chain resets, and lingering COVID-19 disruptions, before examining the persistent energy underinvestment of the past decade and how this has left markets exposed to varying degrees. As such, this paper also considers how private capital can accelerate cleaner energy adoption, suited to different markets’ unique conditions and needs. Bor­rowing costs will rise, but this doesn’t have to bring the transition to a standstill. With the Great Moderation of low volatility, interest rates, and inflation perhaps a relic of the past, assets offering inflation protection, such as infrastructure, may become increas­ingly attractive to investors. There is a fear that global inflation will sharply curtail energy investment into emerging markets. The fear is justified. Higher interest rates in developed markets mean higher rates of return which will lure emerging markets investors back to the US and Europe. Still, it’s not all bad news for emerging markets. Quasi-state actors like Pension and Sovereign Welfare funds are interested in very long term, high-yield projects—two criteria to which emerging market energy infrastructure correspond. Disruptions to interest rates and inflation, triggered in part by energy underinvestment, will cause disparate impacts in different markets. Inflation is not, perhaps, everywhere and always a mone­tary phenomenon. Energy investment faltered from 2014 to 2020, despite low interest rates. Meanwhile, aggre­gate supply shocks—first due to COVID, then from Putin’s invasion of Ukraine—have pressured energy production and prices, raising inflation and necessitating interest rate hikes. The consequences of persistent energy underinvest­ment are now becoming apparent. The need for new energy infrastructure cannot be met without private investment. This was the case when infla­tion was lower; it is even more important now.
Topic:
Environment, Markets, Oil, Governance, Gas, Economy, Investment, Inflation, and Energy
Political Geography:
Global Focus

2. Facing the next public health emergency: How do we know how (un)prepared we are?

Author:
Christian Haddad and Hugh Schmidt
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
In the realm of political preparedness, numerous benchmarks, metrics, and best practice models have emerged as integral sites in the ongoing debate. Taking the Global Health Security Index as a specific example, this paper delves into the advantages and disadvantages of such global security rankings. This analysis aims to explore the potential uses and drawbacks of employing metrics to evaluate and modify (inter-)national preparedness plans. Situating this discussion within the broader context of the escalating significance of crisis preparedness and management, particularly in the face of acute disruptions to vital infrastructures and the immense costs they entail, as well as their adverse impact on public health and societal safety. However, the findings of this analysis reveal a notable political and strategic risk associated with an excessive reliance on these metrics. It is important to recognize that these metrics not only rely on robust scientific methodologies but also rest upon selective assumptions about the world and the definition of threats. The case of the Global Health Security Index serves as an example, as the assumptions underpinning these metrics have proven inaccurate in the face of an actual pandemic. Consequently, overconfidence and misguided approaches to crisis preparedness have ensued. Additionally, this work offers a concise historical overview of preparedness thinking, outlines the field of Global Health Security, presents the existing metrics employed, and critically reflects on these tools. While metrics provide valuable insights, they should be approached with caution and an awareness of their limitations. By adopting a critical lens and recognizing the political dimensions inherent in these metrics, policymakers can make more informed decisions and develop more effective preparedness plans in an ever-evolving world of crises.
Topic:
Security, Governance, Public Health, COVID-19, and Global Health
Political Geography:
Global Focus

3. Governing Outer Space – legal issues mounting at the final frontier

Author:
Hjalte Osborn Frandsen
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In 2022, the private space firm SpaceX successfully launched 61 rockets, adding hundreds of satellites to its burgeoning, globe-spanning mega-constellation. SpaceX´s Starlink-project now comprises more than 3,000 satellites. For comparison, the European Space Agency launched six rockets in 2022 and operates less than 50 satellites in total. In the span of a few years, private space companies have dethroned nation states as the dominant actors in outer space. Today the vast majority of satellites are owned and controlled by commercial companies. During the first months of the Russian assault on Ukraine, several commercial space companies stepped in to provide vital satellite images and space-based Internet in support of the Ukrainian defense. This exemplifies the three currently dominant trends of human space activities: expansion, securitization and privatization. The global space industry is undergoing the most fundamental and swift changes since the original space race ended when Neil Armstrong placed the first boot marks on the moon in 1969. The rapid changes raise a number of serious governance issues in areas such as national security, environmental protection and the rule of law in outer space. Denmark, Europe and the international community at large all have an acute interest in insisting on space being a global commons in which conduct can and should be regulated to benefit all of humanity – not just a few profit-seeking billionaire-owned space companies. Developments in the space industry are fast and accelerating. As with other global governance issues, like climate and cyber issues, achieving global accord on new regulations for space activities will be difficult and time-consuming, so prudent policymakers should get started right away.
Topic:
Security, Defense Policy, Governance, Law, and Space
Political Geography:
Global Focus

4. Climate change and security: Preparing for different impacts

Author:
Emma Hakala
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
As the disastrous impacts of climate change are already visible, the need to respond to them becomes increasingly urgent. Yet there is still a lack of understanding about the comprehensive security impacts of climate change. Climate security impacts tend to be complex as they often take shape through chains of compounded effects. This makes them difficult to fully comprehend, and in the absence of adequate situational awareness, policy responses are likely to fall short. The paper aims to contribute to a better understanding of climate security by providing concrete illustrations of potential direct, cascading and transition impacts. Impacts like forest fires, a heatwave in Europe and increased wind energy production all challenge Finland’s security in various ways, such as threatening human health and livelihoods, fuelling political polarisation and creating new supply chain risks. Strategic foresight, international cooperation and well-planned climate policy can help to counteract climate risks.
Topic:
Security, Defense Policy, Climate Change, and Governance
Political Geography:
Global Focus

5. Cities as global actors: Bringing governance closer to the people

Author:
Katja Creutz
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Globalization and extensive urbanization worldwide have brought cities to the forefront of global governance in a multilateral system designed and created for states. Cities have come to exercise power due in part to the inadequacy or ineffectiveness of inter-state action, but also because their democratic nature and immediate connection to the population make them legitimate actors. Cities are also home to many problems of a global nature, such as greenhouse gas emissions, pandemics, and sustainability. This makes them uniquely situated to address these challenges. City diplomacy has become a prevalent feature in many global policy issues, ranging from climate change to development cooperation. The primary tool through which cities act is networking, with hundreds of global city networks pursuing the interests and values of their constituencies. By demanding a seat at the table where global affairs are decided upon, cities challenge and complement the state-based international order, in addition to which they stretch the basic concepts and constructs of both international relations and international law.
Topic:
Globalization, International Law, Governance, Democracy, and Cities
Political Geography:
Global Focus