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41. Section 232 reloaded: the false promise of the transatlantic ‘climate club’ for steel and aluminium

Author:
David Kleimann
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
In using the removal of Section 232 ‘national security’ tariffs on steel and aluminium imports as a bargaining chip, the United States demands that the European Union engage in negotiations on “global steel and aluminium arrangements to restore market-oriented conditions and address carbon intensity”. The US demand has reportedly been inspired by a blueprint that would establish an international institutional arrangement – labelled a ‘climate club’ – which would externalise market-access restrictions afforded by US Section 232 tariffs to the customs borders of club members. While the declared objective is to incentivise non-members to adopt low-carbon steel (and aluminium) production methods the US blueprint suffers from various design flaws including inefficient incentives, WTO inconsistency and incompatibility with the EU Carbon Border Adjustment Mechanism. The effectiveness of the proposed US scheme is severely compromised by the plethora of policy objectives it pursues, which go far beyond the goal of incentivising industrial decarbonisation in third countries, including secondary (ie protectionism) and tertiary (ie global power competition with China) objectives. The initial negotiation proposal submitted by the United States Trade Representative (USTR) to European Commission trade negotiators incorporates many if not all the problematic elements of this blueprint, setting the US on a collision course with the negotiation proposal put forward by the European Commission. This paper concludes that the adoption of the scheme proposed by USTR would result in a step backwards for international climate and trade cooperation, whereas not adopting the EU proposal would make for a missed opportunity. Given the sharply diverging negotiation positions and associated respective domestic constraints on both sides, however, policymakers should start to engage stakeholders now to manage expectations towards a low-ambition negotiation result, if any.
Topic:
Security, Climate Change, Industrial Policy, Governance, European Union, Economy, Trade Policy, and Transatlantic Relations
Political Geography:
Global Focus

42. What should be done about Google’s quasi-monopoly in search? Mandatory data sharing versus AI-driven technological competition

Author:
Bertin Martens
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The first part of this paper focuses on competition between search engines that match user queries with webpages. User welfare, as measured by click-through rates on top-ranked pages, increases when network effects attract more users and generate economies of scale in data aggregation. However, network effects trigger welfare concerns when a search engine reaches a dominant market position. The EU Digital Markets Act (DMA) imposes asymmetric data sharing obligations on very large search engines to facilitate competition from smaller competitors. We conclude from the available empirical literature on search-engine efficiency that asymmetric data sharing may increase competition but may also reduce scale and user welfare, depending on the slope of the search-data learning curve. We propose policy recommendations to reduce tension between competition and welfare, including (a) symmetric data sharing between all search engines irrespective of size, and (b) facilitate user real-time search history and profile-data portability to competing search engines. The second part of the paper focuses on the impact of recent generative AI models, such as Large Language Models (LLMs), chatbots and answer engines, on competition in search markets. LLMs are pre-trained on very large text datasets, prior to usage. They do not depend on user-driven network effects. That avoids winner-takes-all markets. However, high fixed algorithmic learning costs and input markets bottlenecks (webpage indexes, copyright-protected data and hyperscale cloud infrastructure) make entry more difficult. LLMs produce semantic responses (rather than web pages) in response to a query. That reduces cognitive processing costs for users but may also increase ex-post uncertainty about the quality of the output. User responses to this trade-off will determine the degree of substitution or complementarity between search and chatbots. We conclude that, under certain conditions, a competitive chatbot markets could crowd out a monopolistic search engine market and may make DMA-style regulatory intervention in search engines redundant.
Topic:
Science and Technology, Governance, European Union, Digital Economy, Innovation, Artificial Intelligence, and Competition
Political Geography:
Europe

43. What would Europeans want a European defence union to look like?

Author:
Francesco Nicoli, Brian Burgoon, and David Van der Duin
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
While the Russian invasion of Ukraine has created a new momentum for EU defence integration, the political feasibility of such integration remains disputed, as it may entail both additional financial costs and a loss of sovereignty. Furthermore, design of defence integration is inherently multidimensional, differing in terms of scope and level, governance and sources of financing, among other dimensions. To determine the extent of public support for European security cooperation, we conducted the first conjoint experiment ever fielded on public support for alternative defence union designs. We carried out a pre-registered, randomised conjoint experiment on a highly representative sample of the French, German, Italian, Dutch and Spanish populations in November 2022. This multidimensional conjoint experiment allows us to determine the causal link between policy features of potential defence pacts, and public support or opposition to such policy. Our results show that policy packages receiving the most support require joint EU-level governance, joint purchases of military equipment through joint procurement, and repurposing of existing national expenditure as the preferred form of financing. All in all, our results show not only that there is considerable cross-border support for defence integration in Western Europe, but also that citizens in different Western European countries have generally aligned preferences regarding the actual design of such policy, indicating that a compromise policy is feasible and publicly supported. Furthermore, our results support ongoing research on the nature of European solidarity at times of crisis, suggesting that European citizens are willing to support the creation of joint institutions and policies to face issues of common concern, and therefore indicating that major crises open important windows of opportunity to re-shape EU-level policies and institutions.
Topic:
Defense Policy, Governance, European Union, and Regional Security
Political Geography:
Europe

44. Antitrust issues raised by answer engines

Author:
Christophe Carugati
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Rapid development of generative artificial intelligence chatbots like ChatGPT is leading search engine providers to move from search to answer engines. Unlike search engines, which provide search results in the form of blue links to content creators, answer engines generate personalised answers through a conversation with end users. This revolution impacts the internet ecosystem of content creators and the digital advertising market. This paper outlines some early antitrust issues related to answer engines, from the transition from search to answer engines (sections 2 and 3) and the response competition authorities should adopt (section 4). It finds that search and answer engines complement and compete with each other. While the answer-engine market is still at an early stage of development, it already raises some competition issues in relation to data scraping, vertical integration and unfair terms and conditions. Intervention by competition authorities is more likely than not to prevent market power in this new market. In this regard, competition authorities should act to preserve dynamic competition and minimise adverse effects on content creators. Finally, the paper concludes with several research questions for future research (section 5).
Topic:
Science and Technology, Governance, European Union, Digital Economy, Innovation, Artificial Intelligence, and Competition
Political Geography:
Europe

45. Pro- and anti-competitive provisions in the proposed European Union Data Act

Author:
Bertin Martens
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The proposed European Union Data Act gives users access and portability rights to the data generated by their use of tangible digital products and devices. This pro-competitive measure weakens the de-facto monopolistic control product manufacturers have over product data. However, the Data Act would also grant manufacturers a de-jure right to monopolistic pricing of data transfers to third-party service providers, restoring their control over data markets. Other anti-competitive provisions include restrictions on the use of data for competition purposes and a prohibition on transfering data to platforms identified as gatekeepers under the EU Digital Markets Act. Unnecessarily fuzzy definitions of products and data that fall under the Data Act would create uncertainty in implementation and incoherence with other EU data regulations. The Data Act should be simplified by dropping anti-competitive provisions and granting users and third-parties selected by users free access to all data generated by the use of a product or a service. This would increase competition in data-driven services and prevent users paying twice for their data. It would not disincentivise producers from investing in data-driven products and services. A further step could be the creation of a level playing field between producers and users in data-access rights. This can be achieved by introducing the principle of mutual exhaustion of data rights at point of sale. This would put all data co-generating parties in a position to generate economies of scale and scope in data aggregation, or data-driven externalities, to maximise innovation.
Topic:
Markets, Governance, European Union, and Digital Economy
Political Geography:
Europe

46. Rebooting the European Union’s Net Zero Industry Act

Author:
Simone Tagliapietra, Reinhilde Veugelers, and Jeromin Zettelmeyer
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
In March 2023, the European Commission published a legislative proposal for an EU response to the US Inflation Reduction Act: the Net Zero Industry Act (NZIA). It is an unconvincing policy proposal, both for what is in it and for what is not in it. The proposal has five problematic aspects. First, it takes a top-down approach, in which specific technologies are selected for preferential treatment. Preferable would be a technology-neutral approach open to all current and future technologies that help tackle the net-zero challenge. Second, its blanket 40 percent self-sufficiency benchmark for EU domestic cleantech manufacturing by 2030 sends a protectionist signal, is poorly defined and does not reflect the differences in EU capacity in the cleantech sector. Third, it relies on the acceleration of permitting procedures as the main policy instrument, although this is not the main obstacle to cleantech investment in the EU. Fourth, it proposes more strategic use of public procurement. While this is an objective to be supported, the specific proposals are likely to be ineffective because of the way they are designed. Fifth and not least, the NZIA would lack a governance structure that would ensure effective implementation. In addition, the NZIA does not tackle three critical issues. It does not address investment obstacles related to failures of the single market. It does not tackle the coordination problem at the core of developing an EU green industrial policy. Finally, it does not develop an EU-level funding strategy, but rather relies on state aid, with the related risk of fragmentation. The European Parliament and EU countries in the Council of the EU should reboot the proposal and refocus its objectives, sharpening its limited instruments, improving its governance, and adding financial incentives to ensure implementation. In parallel, the EU should develop a broader green industrial policy strategy that leverages the single market in a credible manner, building a solid new governance framework and a new EU-level funding approach.
Topic:
Climate Change, Industrial Policy, Governance, European Union, Trade Policy, and Industry
Political Geography:
Europe

47. The value added of central bank digital currencies: a view from the euro area

Author:
Maria Demertzis and Catarina Martins
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Different jurisdictions have set out different reasons for creating central bank digital currencies (CBDCs). Some countries, particularly those with already-operational CBDCs for retail purposes, aim to to promote financial inclusion. But in countries where most citizens have access to financial services, central banks are interested in CBDCs as an aspect of the increasing digitalisation of finance. Central banks could also choose to use CBDCs to guarantee in full citizen’s holdings (currently, deposits in commercial bank are only partially guaranteed), but this would trigger major changes in the financial system in terms of the role of commercial banks in intermediation and the role of fiat money. So far, central banks have not opted to go this way. In the euro area, consumers have multiple payment options and a very efficient retail payments system. The currency enjoys high levels of trust and is not challenged by the emergence of private currencies, such as Bitcoin, or by the risk that cash, a monetary system’s anchor, will disappear. Therefore, creating a CBDC for retail purposes in the euro area offers little obvious value added, at least for the foreseeable future. However, there is a strong case for building a CBDC that banks could use for cross-border wholesale purposes (ie with other currencies). Wholesale CBDCs could revolutionise the way that cross-border, cross-currency payments are made for two reasons. Cross-border payments are currently slow and inefficient. Pilot projects have shown that wholesale payments with CBDCs can generate substantial time and cost savings. Any two central banks that have operational wholesale CBDCs could settle transactions between themselves. This would be very different from the current system, as most settlements today are done via the dollar (and then the euro) infrastructure and use correspondent banks. The euro area and the United States would have to consider carefully from a geopolitical perspective how wholesale CBDCs might affect their global economic standing. By developing a CBDC for wholesale purposes, the European Union would be able to contribute to developing the global standard.
Topic:
Monetary Policy, Governance, Regulation, Central Bank, Digital Currency, and Euro
Political Geography:
Europe

48. The longer-term fiscal challenges facing the European Union

Author:
Jeromin Zettelmeyer, Gregory Claeys, Zsolt Darvas, Lennard Welslau, and Stavros Zenios
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The pandemic and subsequent price shocks triggered by Russia’s invasion of Ukraine, have increased longer-term fiscal pressures in the European Union through higher debt, higher expected real interest rates and higher public investment needs. This Policy Brief makes some simple quantitative assessments of those effects and discusses policy implications, with the following results. First, long-term increases in primary fiscal balances required to offset higher debt and higher expected real interest rates are in the range of 0.5 percent to 1.5 percent of GDP for most EU countries. However, because of pre-existing differences in fiscal space, not all countries will need to undertake that adjustment, while some countries may need to adjust by substantially more. Among the 21 EU countries for which we have data to undertake this analysis, 14 will need to adjust by more than they were planning to do by 2025. Second, the required additional fiscal adjustment looks manageable, although it is substantial in some cases. To achieve medium-term debt-reducing primary balances, several EU countries will need to raise primary balances by more than 2 percent of GDP above their 2025 target, but no country will need additional fiscal adjustment of more than 3 percent of GDP. Third, market data suggests that the future path of real interest rates is very uncertain. Compared to the period immediately preceding the pandemic, longer-term expected real interest rates have increased by about 2 percentage points but remain low on average, at about 1 percent in real terms. Future developments depend on whether the structural factors that led to low interest rates in the first place persist or unwind. While interest rates might decline again, fiscal policymakers should not make plans that assume such a decline. Fourth, public spending needs for additional defence and climate spending run well above 1 percent of GDP per year. These needs do not appear to have been incorporated into current fiscal baselines, and hence will come on top of the adjustment described above. To ensure that fiscal adjustment does not defeat its purpose by slowing growth, it is essential that it is conducted gradually. In countries that require such adjustment, it should start as soon as cyclical conditions allow.
Topic:
Governance, European Union, Finance, and Fiscal Policy
Political Geography:
Europe

49. How Europe should answer the US Inflation Reduction Act

Author:
David Kleimann, Niclas Poitiers, André Sapir, Simone Tagliapietra, Nicolas Veron, Reinhilde Veugelers, and Jeromin Zettelmeyer
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The 2022 United States Inflation Reduction Act (IRA) is a significant and welcome climate law. It also includes trade-distortive subsidies, including local-content requirements prohibited under World Trade Organisation rules – the first time the US has done this and a blow to the international trading system that could trigger protectionism in other countries. The expected IRA green subsidies are of similar size to those available in the European Union, except in renewable energy production, where EU subsidies remain far larger. However, there are important qualitative differences. Some IRA subsidies discriminate against foreign producers while EU subsidies do not. IRA clean-tech subsidies are simpler and less fragmented, and they focus mainly on mass deployment of green technologies rather than innovation. The IRA will likely harm Europe through its competitiveness effect, while it will likely benefit climate transition in Europe and most of the rest of the world. However, the magnitude of both effects is very uncertain, partly because the IRA will induce substitution away from Chinese inputs. By forcing the reorganisation of supply chains, the IRA may make the EU and other economies more competitive relative to China. It may also initially slow the green transition. But in the longer run, this effect should be outweighed by the reduction in the cost of clean tech driven by the IRA. In responding to the IRA, the EU should not just seek to protect its competitiveness relative to the US but to pursue broader aims, including competitiveness in general, speedy decarbonisation and broad foreign policy and development policy goals. These aims imply that the EU should not impose local-content requirements of its own, should not loosen state-aid rules and should not mimic the IRA’s approach to manufacturing subsidies. Rather, it should focus on boosting its structural competitiveness, formulate a trade policy response that includes reform of the international subsidies regime, and develop an instrument for EU-level subsidies that focuses on early-stage development and increasing EU resilience to trade disruptions.
Topic:
Governance, European Union, Inflation, and Trade
Political Geography:
Europe

50. The Functionality of Uganda’s Single Spine Agricultural Extension System

Author:
Elijah Dickens Mushemeza
Publication Date:
01-2023
Content Type:
Research Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
This report presents the findings and discussions on the functionality of the single-spine agricultural extension system in Uganda. The recommendations from the research process will potentially inform the implementation of the new national agricultural extension strategy aligned to the NDP III, the Parish Model and the national agenda of socio-economic transformation. The single spine extension system was conceptualized as a well-coordinated, harmonized, public sectorled pluralistic extension system. The aim was to eliminate the parallel institutional arrangements that emerged during the NAADS program implementation. It aims at enhancing agricultural production and productivity, value addition, food security, household income and export. In addition, it focuses on building the capacity of individual farmers and farmer institutions to have greater access to and control over structures and processes that transform their resources and assets into the outcomes that they desire to achieve their goals. The study sought to address four objectives: (i) assessing the effectiveness of coordination among key actors (including clarity of mandates) in the delivery of agricultural extension; (ii) assessing the functionality of transparency and accountability mechanisms in the single spine agricultural extension system; (iii) assessing the performance of the system in the attainment of key agricultural extension outcomes; and (iii) assessing the effects of COVID-19 on the delivery of agricultural extension services. The report gives a background to the reform and an overview of the strategy that has been used to implement it. The report gives the methodology utilised in the research process, the limitations of the study and how methodological challenges were addressed. The report brings out the findings in relation to the objectives set and in particular; on coordination dilemmas, transparency and accountability mechanisms, and performance of the system and the effects of COVID-19 on the delivery of agricultural extension service.
Topic:
Agriculture, Governance, Reform, and Policy Implementation
Political Geography:
Uganda and Africa

51. Emergent Agency in a Time of COVID-19: Research report

Author:
Flippo Artuso, Katrina Barnes, Duncan Green, and Irene Guijt
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
The outbreak of the COVID-19 pandemic was an unprecedented event in the modern era. Earlier studies demonstrated how ‘critical junctures’, which comprise major historical events and emergencies, often play an essential role in social change. This paper seeks to explore whether the COVID-19 pandemic would prove to be a similar pivotal moment, and what lessons and insights we could gather for positive social change. The research set out to find key insights on how individuals, communities, and organizations in civil society were responding to the pandemic in low-income populations at the intersection of multiple inequalities. These lessons could inform how donors, governments and NGOs might reshape their efforts to reduce emerging or deepening inequalities, and how civil society organisations and community-based organisations could amplify their positive impacts. Over 18 months, from September 2020 to March 2022, the ‘Emergent Agency’ research convened a global conversation between activists, development practitioners, researchers, and academics to better understand the phenomena that were taking place in response to the pandemic. The research collected more than 200 case studies and held a series of webinars and conversations in thematic clusters to uncover what these responses could teach us. The research project was enabled with funding from The Atlantic Fellows for Social and Economic Equity programme (AFSEE) of the London School of Economics.
Topic:
Civil Society, Governance, Pandemic, and COVID-19
Political Geography:
Global Focus

52. 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

53. From Rebel Governance to Institutionalization? Prospects for the Taliban and Afghanistan

Author:
Vito Morisco
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
Intra-Taliban fragmentation, based on tribal, factional, ideological and structural fault lines, represents a major challenge to the transition from a polycentric and anti-centralist structure to a unified movement; the fragile balance between the political center in Kabul and the powerbrokers in the periphery, namely Kandahar, represents a key challenge. Women’s rights and girls’ education remain sensitive topics for the Taliban to the extent that the more pragmatic figures push for lifting the ban, the less Hibatullah will grant concessions in order to assert his authority vis-à-vis his critics. Taliban’s ban on secondary education for girls is unique in the world, thus clearly implying internal power dynamics rather than religious motivations. An intellectual struggle over the IEA’s constitutional design has started among main factional groups and Chief Justice Haqim Haqqani’s book “The Islamic Emirate and Its System” (2022) constitutes the first political manifesto about what an Islamic Emirate is and how to run one. The movement has adopted a pragmatic attitude towards the outside world based on the principles of neutrality, non-interference, sovereignty and respect for the international order, but factionalism might cause an inconsistent foreign policy. In the short-term, brutal counterterrorism measures might prove effective in decapitating Islamic State Khorasan Province (ISKP)’s leadership but, in the long term, indiscriminate violence could alienate Salafi communities and the young urban generation on university campuses. The Taliban and al-Qaeda (AQ) are bound by bay’ah (religious oath of loyalty) but tensions and mistrust have emerged since the Doha Agreement.
Topic:
Governance, Taliban, Al Qaeda, and Institutions
Political Geography:
Afghanistan and South Asia

54. Outsiders Wanting In: Asian States and Arctic Governance

Author:
Calvin Heng and Eyck Freymann
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The strategic interests of Asian countries in the Arctic continue to grow despite the disruptions of the COVID-19 pandemic and the geopolitical fallout of Russia’s invasion of Ukraine. China and India have their eye on Russia’s Arctic energy resources, and China is further seeking to leverage Russian weakness to expand its operational presence in the Arctic Ocean. Japan, South Korea, and Singapore are less prominent in Arctic regional institutions, yet they have distinctive interests in Arctic science, governance, and resources and are resuming dialogue about Arctic matters amongst themselves. This policy brief reviews the key differences in how Asian states are approaching the Arctic through a survey of their strategic documents, public statements, and diplomatic and commercial activities.
Topic:
Governance, Multilateral Relations, Strategic Interests, and Regional Politics
Political Geography:
Japan, China, India, Asia, South Korea, Singapore, and Arctic

55. 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

56. What shall we do with the suspected pirates? Why piracy prosecution doesn't always work

Author:
Jessica Larsen
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In African waters, incidents of piracy still far outweigh apprehensions, leaving few suspects to prosecute. Those who are prosecuted may face either impunity or legal uncertainty, because the illegal act of piracy is difficult to prove in some cases. There are steps that the states involved in counter-piracy should take to address these challenges. Piracy has been a constant issue of concern since the early 2000s in the waters off East and West Africa, albeit with numbers of incidents fluctuating with seasons and geography. The international community has in both theatres developed a practice, where international navies patrol the waters and hand over suspects for prosecution in regional states. But bringing piracy suspects to justice faces many challenges. This policy brief points to the main issues and possible solutions.
Topic:
Security, Defense Policy, Water, Governance, Piracy, and Maritime
Political Geography:
Africa

57. Salome’s Choice: Europe and Ivanishvili?

Author:
Emma Smeyers
Publication Date:
07-2023
Content Type:
Commentary and Analysis
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
While Georgian Dream (GD) has been attempting to normatively balance between the collective West and Russia for years, the latter’s re-invasion of Ukraine in February 2022 brought increased pressure on the ruling party— ultimately resulting in internal shifts among the elite, and bringing about party-wide discursive change. In the most high-profile case, President Salome Zurabishvili—for the first time since she took office in 2018—was seen openly defying the leadership, and directly contradicting the party line. She has since publicly engaged in several quarrels with the party’s leadership, with one causing the announcement of a lawsuit against her for alleged violations of the Constitution. Despite these disputes, Zurabishvili remains willing to side with Bidzina Ivanishvili, GD founder and former Prime Minister. She openly blamed GD leadership for taking insufficient measures to preemptively shield the oligarch from the possibility of personal sanctions. Zurabishvili’s sudden ‘turn’ against Georgian Dream, though creating some intrigue, remains unsystematically explored. This paper engages in a scenario-outlining exercise, wherein three potential explanations are presented. First, Zurabishvili’s ‘turn’ might have stemmed from valuebased disagreement, with the war in Ukraine revealing the incompatibility of the President’s and GD elites’ values. Second, her ‘turn’ could have been part of a communication strategy, orchestrated to create the illusion of a ‘fragmented leadership’ for public legitimation purposes. Finally, the possibility of patterns of intra-regime (dis)loyalty, alliance-forming, and elite defection being at play is explored. Such patterns are expected to supervene in informal, authoritarian modes of governance and are likely to supervene during heightened crises1 .
Topic:
Governance, Leadership, Domestic Politics, and Russia-Ukraine War
Political Geography:
Russia, Caucasus, and Georgia

58. The state of economic convergence in the Eurozone: Two decades of monetary union and economic governance

Author:
Adriaan Schout
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
What is the state of economic convergence in the euro area? And will the redefinition of the Stability and Growth Pact result in a more effective policy for achieving convergence? A common currency, together with the four freedoms, was assumed to lead to economic convergence. This Clingendael Report reviews the state of convergence in the euro area by focusing on nominal, real and institutional convergence. Despite a range of policy initiatives and monitoring systems, convergence has not been achieved neither in terms of monetary and economic performance nor of the quality of governance at the national level. Despite some major successes in convergence, welfare has continued to diverge in some countries and differences in debt levels have increased up to the point of threatening the - economic and political - coherence of the euro area. Public spending also varies considerably while higher public spending does not ensure higher growth levels. The paradoxical situation has arisen in which countries that (drastically) reduced debt levels performed better in terms of growth and reduction in unemployment.
Topic:
Economics, Governance, European Union, Economic Growth, and Economic Stability
Political Geography:
Europe

59. After Ostpolitik: A New Russia and Eastern Europe Policy Based on Lessons from the Past

Author:
Stefan Meister and Wilfried Jilge
Publication Date:
04-2023
Content Type:
Commentary and Analysis
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The large-scale Russian war of aggression against Ukraine that began in February 2022 demonstrates both the failure of Germany’s cooperative Ostpolitik of the last 30 years and the need for energy policy disentanglement. Russia has become the greatest security risk in Europe. To safeguard national and European security, Germany’s ruling coalition must learn lessons from the past, initiate a radical new beginning in Germany’s policy on Russia and Eastern Europe, and assume a leadership role in Europe.
Topic:
Security, Foreign Policy, Governance, International Order, and Russia-Ukraine War
Political Geography:
Russia, Central Asia, and Ukraine

60. Toughening Financial Sanctions on Russia: Enforcing Energy Sanctions and Reducing Shadow Reserves Effectively

Author:
Guntram Wolff, Benjamin Hilgenstock, and Elina Ribakova
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Financial sanctions are key in enforcing restrictions on Russian energy exports – in particular the G7/EU oil price cap regime –, due to financial institutions’ critical role in cross-border transactions. While the energy sanctions regime is having an impact on export earnings and budget revenues, evidence for potentially widespread violations is also emerging. Moreover, favorable external dynamics have allowed Russia to accumulate substantial assets abroad – “shadow reserves” –, which need to be kept out of reach of the regime.
Topic:
Governance, Sanctions, European Union, International Order, Energy, Geoeconomics, and Russia-Ukraine War
Political Geography:
Russia and Eurasia