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한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Signed in 2024, the Ethiopia-Somaliland Memorandum of Understanding (MoU) has reshaped regional dynamics, potentially granting Ethiopia sea access via Berbera in exchange for Somaliland’s recognition. This move challenged Somalia’s territorial integrity and prompted Mogadishu to align itself with Egypt, Eritrea, and Djibouti against Ethiopia. While the crisis reflects Ethiopia’s strategic push for a maritime presence, it also captures Somaliland’s long-standing quest for independence. In the wider Red Sea region, regional tensions are exacerbated by extra-regional actors which include the UAE, Turkey, France, and Saudi Arabia, all of which have their own interests therein. Although, external actors do not directly cause conflict, their involvement emboldens local actors and escalates rivalries. Hence, the Red Sea region has a growing importance in contemporary global geopolitics. Ethiopia-Somaliland MoU: Geopolitical Ambitions and the Quest for Recognition The year 2024 began with the signing of a Memorandum of Understanding between Ethiopia and Somaliland. The latter, formerly British Somaliland, was part of Somalia, from which it unilaterally seceded after Siad Barre’s regime collapsed in 1991. Since then, Somaliland has been self-ruled and is considered a de facto state. However, the Hargheisa authority does not enjoy any international legal recognition. If implemented, the agreement with Addis Ababa would give Somaliland its first significant de jure recognition. In return, the Hargheisa authorities would grant Ethiopia access to the sea through the port of Berbera and the concession of a coastal area for military use. The situation revolves around three key regional players: Ethiopia, Somalia, and Somaliland. Each of these actors has engaged in activities driven by its own objectives and strategic priorities. Ethiopia’s decision is influenced by several practical economic and strategic factors. Following the Eritrean War in the early 1990s, Ethiopia lost its Red Sea ports and became the world’s most populous landlocked country. Since 1998, Djibouti’s ports have handled 95 per cent of trade to and from Addis Ababa. Sea access through Djibouti costs Ethiopia between $1.5 and $2 billion annually which Ethiopia’s rulers, since 2019, begun to express more strongly that they consider this spending excessive and unsustainable in the medium to long term. To reduce Addis Ababa’s dependence on Djiboutian ports, the government of Prime Minister Abiy Ahmed believes it is necessary to find a viable alternative. Before the MoU, Ethiopia had considered several alternatives to Djibouti, including Eritrea, Somalia, and Kenya. The idea of developing an economic and trade corridor between Addis Ababa and the port of Berbera on the Gulf of Aden began to take shape in the final months of 2023. Somaliland’s main port has been operated by the Emirati company – DP World since 2015, which has developed its infrastructure and increased its cargo transit capacity. Ethiopia estimates that it can divert between 12 and 15 per cent of the total volume passing through Djibouti’s ports to Berbera and, in the long term, connect its industrial zones to several trade corridors. From a strategic point of view, Ethiopian assessments are influenced by Addis Ababa’s national role conception. Ethiopia sees itself as the leading regional power because of its history and traditional economic and political weight in the region. Consequently, Ethiopian elites perceive the Red Sea and the Gulf of Aden as their natural strategic spheres. For this reason, the Ethiopian Institute of Foreign Affairs recently announced the ‘Grand Strategy of the Two Waters.’ The new agenda aims to expand the sphere of national interest and action eastwards towards the sea, unlike in the past when the focus of Ethiopia’s strategic projection was mainly on the Nile Basin. Indeed, Ethiopia’s ambitions as a regional power are challenged by its lack of a maritime gateway. For Addis Ababa, having a presence in the Red Sea would provide two strategic benefits: first, it would strengthen its standing in the region; second, it would bolster Ethiopia’s international role by enhancing cooperation in multilateral anti-piracy efforts. In short, the Ethiopian government sees maritime projection as a strategic resource and a gateway to the geopolitics of the coming decades, which will focus on Asia and the Indo-Pacific in particular. Therefore, one of the key clauses of the MoU allows Ethiopia to establish a military outpost in Lughaya, a town overlooking the Gulf of Aden, for at least fifty years. According to Ethiopian plans, the naval base will become the headquarters of the nascent Ethiopian navy. For Somaliland, the MoU represents a further step on the difficult path to independence. In the past year, the issue of Somaliland’s independence has gained renewed attention and relevance. This pursuit of self-determination is deeply rooted in a historical context that stretches back to the 19th century, predating the regime of Siad Barre. The Somalilanders’ path began during a pivotal time when the British Empire established agreements with various Somali clans, particularly the Gadabuursi, Issa, and Habr Awal. In 1884, the region was officially designated as British Somaliland, a protectorate that enjoyed a measure of autonomy and governance, distinguishing it from the colonial dominance exerted by Italian authorities in southern Somalia. Following the unification of Somaliland with the Trust Territory of Somalia in 1960, the social, economic, and political conditions of the people of Somaliland began to deteriorate, leading to widespread discontent and a strong desire for independence. Over time, the Siad Barre regime cast a long shadow over Somaliland, leading to widespread discrimination and marginalisation. The political and economic machinations of the central government often neglected the aspirations of the Somaliland people, fuelling a growing sense of injustice. In this context, collective memory became a powerful cornerstone of identity, highlighting the stark contrasts between Somaliland’s struggles and Somalia’s divergent trajectories in the turbulent post-Siad Barre era. Hargheisa’s quest for independence is rooted in historical grievances and reflects the unique identities and trajectories of its people. The Somaliland narrative often draws comparisons with the current situation in the rest of Somalia. Over the past three decades, this de facto state has made significant progress towards sustainable institutional and administrative development albeit on a very limited budget. The democratisation process is also crucial to further the development of Somaliland’s independence. The recent national elections held last November demonstrated the political maturity of all parties involved. The peaceful transfer of power from the defeated government to the electoral process is a remarkable event in the region and stands out as one of the few such instances in the continent. The achievements of the institution-building process in Somaliland are even more striking when compared to the path taken by Somalia. Somalia’s Diplomatic Counterbalance and the Emergence of an Anti-Ethiopian Block  The signing of the MoU by Ethiopia and Somaliland raised concerns among regional actors, particularly Somalia. As Somaliland is formally and legally recognised as an integral part of Somalia, there were fears that Hargeisa’s claims to independence were gaining momentum. Mogadishu was particularly concerned that Ethiopia’s official recognition of Somaliland’s claims could trigger a domino effect, leading other regional and extra-regional actors to follow suit. Therefore, Somalia saw Ethiopia’s actions as a deliberate act of intimidation that threatened its territorial integrity at a sensitive time for its political future. Somalia faces several challenges, including the struggle to establish an effective institutional framework, particularly with regard to the relationship between the central government and the federal states, and also the fight against the terrorist group – al-Shabaab. In response to the MoU, the Somali executive, led by President Hassan Sheikh Mahmoud, launched an intense diplomatic campaign to prevent its implementation and recognition by the international community. Somalia has sought support from regional organisations such as the Intergovernmental Authority on Development (IGAD), the East African Community (EAC), and the African Union (AU). In doing so, Somalia has consolidated alliances with both regional and extra-regional actors. As a result, the dynamics between these three actors – Somalia, Ethiopia, and Somaliland have become increasingly intertwined. Mogadishu’s natural anti-Ethiopian partners are two of Addis Ababa’s historical rivals: Eritrea and Egypt. Compared to 2018, the year of normalisation between Ethiopia and Eritrea, the situation today is very different. The positions of Eritrean President Isaias Afwerki and Prime Minister Abiy Ahmed quickly diverged following the signing of the Pretoria Agreement (2022), which ended the two-year conflict in Tigray. Eritrea, which had supported the Ethiopian military campaign, refused to negotiate with the Tigrayan authorities, represented by the Tigrayan People’s Liberation Front (TPLF). The distance between the two leaders has widened as Ethiopia’s claims to the sea have grown. Indeed, Asmara fears that Ethiopia is eyeing its ports, a fear fuelled by the rhetoric of Abiy and other Ethiopian leaders. Conversely, Isaias has used his leadership and many regional relationships to foster a kind of ‘anti-Ethiopian coalition’. One significant change has been Egypt’s increasing involvement in the region. Mogadishu’s rapprochement with Cairo was formalised in August 2024 with the signing of a defence agreement. This agreement centres on Egypt’s intention to support Somalia’s request for the withdrawal of all Ethiopian troops currently stationed in Somalia as part of the African Union peacekeeping mission (formerly known as Atmis, replaced by the Aussom mission on 1 January 2025). The strengthening of Somali-Egyptian relations, supported by Asmara and involving Djibouti through a security cooperation agreement, has consolidated an anti-Ethiopian bloc. This alignment represents a significant shift in the regional balance and illustrates Egypt’s changing Africa policy. Since 2020, Egypt has reaffirmed the importance of its southern relations. President Abdel Fattah al-Sisi has gradually reassessed Egypt’s African relations and promoted a geopolitical strategy that emphasises a north-south axis, rather than the east-west axis that dominated in previous decades. The Red Sea region, including the Nile Basin, is now a key part of this new strategic framework, which is shaped by Egypt’s historical rivalry with Ethiopia. Between the two states, the balance on the Nile has changed. The construction of the Grand Ethiopian Renaissance Dam (GERD) has given Ethiopia a strategic advantage over Egypt. Egypt therefore had to adapt its approach to the ongoing dynamics by deciding to expand the areas of contention toward the sea. Tensions between Ethiopia and Somalia therefore provided an opportunity to increase Egypt’s footprint in the region. Regional Tensions and Extra-regional Actors in the Red Sea The MoU signed by Ethiopia and Somaliland has opened a new phase in tensions. The focus of regional tensions is shifting to the coastal areas, particularly the Red Sea and the Gulf of Aden, which are marked by a number of security and defence agreements. Common strategic interests underpin the alignment of the anti-Ethiopian bloc, which includes Somalia, Djibouti, Eritrea, and Egypt. Somalia views any legal recognition of Somaliland’s independence as an existential threat. For Djibouti, the economic damage from increased trade through Berbera is marginal but potentially devastating to its fragile internal balance of power. Eritrea perceives Ethiopia as an ongoing threat, and the current Ethiopian government is seen by Asmara as highly unreliable, raising concerns about a potential escalation of violence along their shared borders. Finally, for Egypt, the assessment of its regional position is of particular importance. Traditionally, Cairo has regarded the waters between Suez and Aden as its ‘lake’. As a result, like Addis Ababa, it regards the entire region as part of its sphere of influence. The United Arab Emirates (UAE) and Turkey are among the most active players in the region. The UAE has supported the MoU to capitalise on investments in Berbera and Addis Ababa. Turkey, on the other hand, has taken a more balanced approach, thanks to its strong political and commercial ties with Ethiopia and Somalia. For Ankara, however, Somalia’s integrity must not be questioned. Following their rapprochement in 2021, the UAE and Turkey have maintained good relations. Despite their different strategies and some disagreements, both nations share a common interest in maintaining a central role in regional affairs. Other extra-regional players, such as France and Saudi Arabia, are also active in the background. France supports the MoU as part of its ongoing efforts to increase its presence in East Africa, which began at the same time as its withdrawal from the Sahel region. Its base in Djibouti is destined to become more central to French policy as French military presence in West Africa is being reduced. French officials see this increased influence in regional affairs as essential to France’s future interests in the Indo-Pacific region. Meanwhile, Saudi Arabia, whose geopolitical focus is shifting from the Gulf to the Red Sea, opposes the implementation of the agreement between Ethiopia and Somaliland. It seeks to counter regional projects promoted by the UAE. This might be as a result of the long-standing political rift between the two Gulf monarchies. Extra-regional actors do not directly cause an increase in regional conflicts. Rather, it is local actors who, feeling empowered by their connections with these extra-regional partners, perceive their environment as more permissive and gain the confidence to take assertive actions that they may not have considered before. Understanding these dynamics sheds light on why Ethiopia and Somaliland decided to sign the MoU at this historic moment. This perspective also helps to explain other regional crises, such as the civil war in Sudan and the conflict in Tigray. The different transformations in the international system have created a context in which local actors can seek multiple forms of external support. Increased alignment and overlap between local and regional rivalries has increased the willingness of actors to take assertive action, leading to a general increase in inter- and intra-state tensions. However, the flexible nature of alliances can also mitigate the risk of the trickle-down effect that often accompanies such alliances. This work is licensed under the Creative Commons Attribution-Non Commercial 4.0 International License (CC BY-NC 4.0): https://creativecommons.org/licenses/by-nc/4.0/

Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском “Changes! We’re waiting for changes!” proclaimed Viktor Tsoi nearly 40 years ago, at the dawn of the Soviet perestroika. If one were to summarize the multitude of diverse and contradictory events, trends, and sentiments of the past year in a single phrase, it would be that the modern world is eagerly awaiting change. Much like the former USSR in the 1980s, few today can clearly define what these changes should entail or what their ultimate outcome will be. Yet, the idea of maintaining the status quo has evidently found little favor with the public over the past year. This impatient anticipation of change was reflected, for instance, in the outcomes of numerous elections held over the past 12 months across the globe. In total, more than 1.6 billion people went to the polls, and in most cases, supporters of the status quo lost ground. In the United States, the Democrats suffered a resounding defeat to the Republicans, while in the United Kingdom, the Conservatives were decisively beaten by the Labour Party. In France, Emmanuel Macron's once-dominant ruling party found itself squeezed between right-wing and left-wing opposition, plunging the Fifth Republic into a deep political crisis. The seemingly stable foundations of political centrism were shaken in Germany, South Korea, and Japan. Even the party of the highly popular Indian Prime Minister Narendra Modi failed to retain its parliamentary majority after the elections, and in South Africa, the African National Congress led by Cyril Ramaphosa also lost its majority. Pessimists might argue that abandoning the status quo in itself solves no problems, and the much-anticipated changes, as the final years of the Soviet Union demonstrated, do not necessarily lead to positive outcomes. Replacing cautious technocrats with reckless populists often backfires, affecting those most critical of the entrenched status quo. Optimists, on the other hand, would counter that the rusted structures of state machinery everywhere are in desperate need of radical modernization. They would add that the costs inevitably associated with maintaining the existing state of affairs at all costs far outweigh any risks tied to attempts to change it. The international events of the past year are also open to various interpretations. Pessimists would undoubtedly point out that none of the major armed conflicts carried over from 2023 were resolved in 2024. On the contrary, many of them showed clear tendencies toward escalation. For instance, in late summer, Ukraine launched an incursion into the Kursk region of Russia, and in mid-November, the U.S. authorized Kyiv to use long-range ATACMS missiles against targets deep within Russian territory. Meanwhile, the military operation launched by Israel in Gaza in the fall of 2023 gradually expanded to the West Bank, then to southern Lebanon, and by the end of 2024, to parts of Syrian territory adjacent to the Golan Heights. From the optimists' perspective, however, the past year demonstrated that the disintegration of the old international system has its limits. A direct military confrontation between Russia and NATO did not occur, nor did a large-scale regional war break out in the Middle East, the Taiwan Strait, or the Korean Peninsula. The economic results of 2024 are equally ambiguous. On one hand, the global economy remained heavily influenced by geopolitics throughout the year. The process of “technological decoupling” between the U.S. and China continued, and unilateral sanctions firmly established themselves as a key instrument of Western foreign policy. On the other hand, the world managed to avoid a deep economic recession despite the numerous trade and investment restrictions. Global economic growth for the year is expected to reach around 3%, which is quite respectable for such turbulent times, especially considering that the long-term effects of the COVID-19 pandemic have not yet been fully overcome. In 2024, the average annual global temperature exceeded pre-industrial levels by more than 1,5 °C for the first time, crossing another critical “red line”. However, the UN Climate Change Conference (COP29) held in November in Baku fell short of many expectations. At the same time, China reached its peak carbon emissions by the end of the year, achieving this milestone a full five years ahead of previously announced plans. In the past year, the UN Security Council managed to adopt only 12 resolutions, mostly of a humanitarian nature, clearly reflecting the declining effectiveness of this global governance body. For comparison, in 2000, the Security Council approved 29 resolutions, including key decisions on conflict resolution in the Balkans and Africa. At the same time, 2024 saw continued efforts to explore new formats for multilateral cooperation, including mechanisms within the BRICS group, which held its 16th summit in Kazan for the first time in its newly expanded composition. With enough imagination, one can easily find evidence in the past 12 months to confirm any omen or superstition traditionally associated with leap years. However, all these signs and superstitions predicting upheavals and catastrophes—while aligning with the pessimistic conclusions about the year now ending—do not apply to the year ahead. Human nature, after all, tends to lean more towards optimism than pessimism; if it were the other way around, we would still be living in caves. As they bid farewell to a difficult and challenging year, people around the world continue to hope for better times. And the mere act of hoping for the best is already significant in itself. As Johann Wolfgang von Goethe aptly remarked, “Our wishes are forebodings of our capabilities, harbingers of what we are destined to achieve”. Originally published in Izvestia.

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The world economy is underperforming as a result of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainty around the US election. An escalation of conflict in the Middle East could increase uncertainties, harming inflation reduction efforts and hurting growth. It has been over a year since the Hamas-led attack on Israel. Israel’s response in Gaza has resulted in widespread destruction and significant loss of life. The conflict has since expanded beyond Gaza, involving the Houthis in Yemen, Hezbollah in Lebanon and Iranian strikes targeting Israel. In addition to the awful humanitarian cost of the conflicts, the war and the possibility of its further expansion pose significant repercussions for the global economy. This article discusses three potential ways in which the current conflict and a wider conflict in the Middle East could affect the global economy. Increased geopolitical uncertainties First and foremost, an escalation of the Middle East conflict could lead to greater geopolitical uncertainties. Figure 1 shows the evolution of the geopolitical risk (GPR) and geopolitical acts (GPRA) indices (Caldara and Iacoviello, 2022) – these are text-based measures of heightened uncertainties due to adverse geopolitical events such as wars, terrorism and international tensions. (See this article for more discussion about these measures.) Following the Hamas-led attack on 7 October 2023, both the overall GPR index and its ‘war and terror acts’ component spiked strongly, to a level higher than that seen during the ISIS attack in Paris in November 2015. Both indices eased significantly in the months following October 2023 despite the continuation of the conflict. But they jumped again following Israel’s attack on southern Lebanon in September 2024. As of mid-October 2024, the GPR and GPRA remain, respectively, 21% and 35% higher than their historical averages.   What might be the consequences of such elevated levels of risk? Research tells us that higher geopolitical risk raises oil prices (Mignon and Saadaoui, 2024). It also reduces global investment and increases inflation (Caldara et al, 2022). Greater geopolitical risk has a significantly negative impact on business and consumer confidence in several advanced economies (de Wet, 2023). This is because consumers typically cut non-essential spending and businesses postpone investment decisions during turbulent times. This reduces firm-level investment, particularly for businesses with higher initial investment costs and greater market power (Wang et al, 2023). Higher geopolitical risks also reduce global trade and financial flows, causing greater volatility in capital flows in emerging markets (Kaya and Erden, 2023). Oil production cuts and higher energy prices The second way in which the Middle East conflict could affect the global economy is its impact on energy prices, both directly through production cuts and indirectly through greater uncertainties. In response to Israel’s actions against its neighbours, the Organization of the Petroleum Exporting Countries (OPEC) could reduce oil production to penalise countries supporting Israel. A similar action in the 1970s led to a significant jump in oil prices, which contributed to years of stagflation, with higher global inflation and recessions in major economies. Before Israel's attack on Lebanon at the end of September, oil prices had been declining due to falling demand, particularly from China. On the supply side, oil production had increased in Canada and the United States, countering the production cuts by OPEC, and Saudi Arabia was expected to increase oil production from December. But the situation quickly reversed following Israel’s attack on Lebanon. Oil prices jumped by nearly $10 per barrel within a week, before easing by around $5 per barrel. While the immediate oil price impact of Israel’s attack has mostly faded, the potential for higher oil (and other energy) prices still poses a risk to global inflation and economic activity (Liadze et al, 2022). To provide further context for the potential scale of this impact, we can show what would happen if oil and gas prices were to remain $10 higher for two years than the baseline levels projected in the Summer Global Economic Outlook from the National Institute of Economic and Social Research (NIESR), using NIESR’s Global Macroeconometric Model (NiGEM). The results demonstrate that the $10 rise in oil and gas prices increases inflation by around 0.7 percentage points in major economies in the first year (see Figure 2). The impact is higher in China, where the economy relies relatively more on oil imports for its strong manufacturing industries. The inflationary pressures persist for two years despite central banks’ efforts to curb inflation by increasing interest rates.   The effect of higher oil and gas prices on real GDP is shown in Figure 3. In the scenario described above, GDP would fall by 0.1-0.2% in major economies immediately. Partly due to higher interest rates, real GDP would continue to weaken for three years following the shock. After this, economic activity would start to return to base levels as oil and gas prices revert to their levels in the baseline forecast.   Increased shipping costs and supply chain disruptions A wider conflict in the Middle East could also affect the economy through higher shipping costs and supply chain disruptions. Houthi attacks on commercial ships in the Red Sea in late 2023 showed that such disruptions can have a huge impact on global trade through shipping, which comprises 80% of world trade volume. Following the rocket attacks by the Houthi rebels, some commercial shipping re-routed from the Red Sea to the Cape of Good Hope, leading to significant delays in travel times and increased freight costs. As a result, the Shanghai Containerized Freight Index – a measure of sea freight rates – rose by around 260% in the second quarter of 2024 with additional disruptions to supply chains. Our analysis shows that an increase of 10 percentage points in shipping cost inflation can lead to import prices rising by up to around 1% and consumer inflation increasing by around 0.5% in OECD countries. As Figure 4 shows, the impact of shipping costs on inflation shows its full effects over six quarters. This means that inflationary concerns could be with us for the next year and a half as a result of higher shipping costs that may emerge from any possible escalation of the Middle East conflict.   Wider economic implications and policy responses While rising geopolitical risk and increased oil and shipping costs can each individually exert upward pressure on inflation and may slow down economic activity in the global economy, the combined impacts are likely to be greater. Countries with stronger trade and financial ties to the Middle East and those that rely heavily on oil imports as an input for domestic production would be most affected. On the monetary policy front, central banks may have to take a more hawkish stance in response to rising inflationary pressures from the Middle East conflict. This could lead to higher interest rates, which would further dampen economic activity, particularly in an environment where there are already recessionary concerns in some major economies. Beyond its immediate economic implications, an escalation of the Middle East conflict could trigger large-scale displacement of people, which would increase economic and social pressures on neighbouring countries. Many countries may also have to increase their military spending in response to growing regional tensions. Given that public debt levels are already elevated in many countries due to successive shocks to the global economy over the past decade, any additional defence spending could come at the expense of public infrastructure investments that would otherwise boost productivity growth. Overall, the global economy is already underperforming as a result of the lagged effects of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainties surrounding the upcoming US election and possible changes to US trade policy. A potential escalation of conflict in the Middle East could exacerbate the situation by increasing uncertainties, harming efforts to bring down inflation and reducing global GDP growth. Over the medium and long term, it could further damage the global economy, with the possibility of refugee crises as well as increased defence spending, making the effects more complex and longer lasting. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Photo credit: Flickr/Sailing Nomad - https://creativecommons.org/licenses/by-nc-nd/2.0/ Ambassador Frederic Gateretse-Ngoga, Farea Al-Muslimi, Lisa Boström and Veera Tuomala In recent months, the Red Sea has drawn global attention, particularly due to Houthi attacks on shipping in the Bab el-Mandeb Strait, as well as the deal between Ethiopia and the self-declared Republic of Somaliland on access to the Gulf of Aden, which sparked a dispute with Somalia. The rising tensions and increasing military responses risk worsening conflicts in a highly volatile region. The renewed focus on the Red Sea, however, also provides an opportunity to redouble commitment to multilateralism and enhance the collective action needed to address threats facing the region. This blog post gives an overview of current issues in the region and possible ways to address them, building on the outcomes of a panel discussion at the 2024 Stockholm Forum on Peace and Development. Geopolitical competition in the Red Sea region The Red Sea has become a major flashpoint for global and regional contestation, with local, regional and global conflict dynamics deeply intertwined. Regional and global powers are constructing naval bases and military installations around the Red Sea to enhance their power projection, fuelling existing tensions and exacerbating ongoing conflicts. This has aggravated already dire humanitarian conditions, contributing to fragility across the Horn of Africa, the Middle East and North Africa. In Sudan, competition between Gulf states is widely considered a driving factor behind the civil war. In Somalia and Yemen, external influences have fuelled internal disputes and aggravated tensions, undermining state-building efforts and incurring particularly devastating consequences in Yemen. Climate change and a scramble for scarce natural resources and critical commodities, including water, agricultural land and food supplies, may reinforce this dynamic. Gulf states, in particular, have invested billions in agriculture and manufacturing in the Horn of Africa in recent years to secure food production and tap into the region’s burgeoning labour markets. Regional insecurity escalates Insecurity in the Red Sea region reached a critical point in early 2024 when the Houthi attacks on ships in the Red Sea, the Gulf of Aden and the Bab el-Mandeb Strait in response to the ongoing conflict in Gaza, further threatening regional and international stability, upending trade and disrupting global markets. In response, the United States and the United Kingdom carried out airstrikes against targets in Yemen, while the European Union took a more defensive approach with the launch of Operation ASPIDES to protect vessels. This escalation delayed peace negotiations in Yemen, weakening the fragile trust needed to agree on an extended ceasefire and a roadmap to peace. The Houthi attacks also further compounded humanitarian challenges, disrupting the flow of essential goods and humanitarian aid to the Horn of Africa and the Red Sea region more widely, thus worsening shortages and human suffering. In Sudan around 26 million people, more than half the population, are suffering acute food insecurity. In Yemen, around 22 million people are in need of humanitarian assistance, with about 17 million facing acute food insecurity. Instability on both coasts has also increased migration across the Red Sea. The number of migrants from the Horn of Africa arriving in Yemen has nearly tripled in recent years, with tens of thousands making the dangerous crossing annually in search of better economic opportunities. Additionally, the rise in piracy off the coast of Somalia has exacerbated regional insecurity, with reports of coordination between the Houthis and the Al-Shabaab armed group in the Horn, increasing the risk of human trafficking and forced migration. Opportunities to strengthen multilateralism, cooperation and collective action The barriers to effective cooperation in the Red Sea region are significant but not insurmountable. Historical rivalries and political instability have eroded trust among countries in the region, and the diverse priorities and strategic interests of these countries complicate collaboration. Despite these challenges, the region holds immense potential for growth and development. The strategic location and resources of countries on both shores, if harnessed constructively and collectively, could spur economic prosperity and regional stability. However, the region can realize its potential and accelerate socio-economic development only through inclusive growth, innovation and addressing long-standing developmental challenges. In this regard, prioritizing economic and regional integration is critical to unlocking the region’s vast potential. Indeed, the geographical proximity between the Horn of Africa and Yemen across the Bab el-Mandeb Strait has brought about initiatives such as the Bridge of the Horns, proposed in 2007 between Djibouti and Yemen, which represented a bold vision for a more integrated, peaceful and prosperous region. While the project did not materialize, it is symbolic of the potential for deep and mutually beneficial economic, cultural and political ties across the Red Sea. While there are currently no operational overarching mechanisms or forums for multilateral cooperation around the region, the establishment in 2020 of the Red Sea Council—formally the Council of Arab and African States bordering the Red Sea and the Gulf of Aden—could fill this gap. Once operational, it could help to mitigate tensions and foster cooperation towards a shared vision for the region. Moving forward There are several areas where enhanced cooperation is achievable and could benefit the Red Sea region as a whole. For example, establishing joint coastal patrols and information-sharing mechanisms could significantly enhance maritime security and combat piracy, smuggling and terrorism along the vital maritime corridor. Developing regional trade agreements and infrastructure projects could boost economic growth and interdependence, reducing the likelihood of conflict. Collaborative efforts to address climate change, manage shared water resources and protect marine ecosystems could promote sustainability and reduce resource-related tensions. Coordinating humanitarian responses and development programmes could address the root causes of instability, such as poverty, food insecurity, and poor access to education and healthcare. Finally, establishing platforms for dialogue and mediation could help to resolve disputes peacefully, preventing the escalation of conflicts. By focusing on these areas, the countries of the Red Sea region could move towards a more cooperative, stable and prosperous future. Strengthening cooperation through robust multilateral frameworks is vital to addressing the factors that underpin regional insecurity as well as to promoting sustainable development. Regional solutions should be led by the region, rather than relying on external entities whose priorities and resources are currently focused elsewhere. Countries on both coasts of the Red Sea need to view each other as partners for common goals and stability, prioritizing cooperation to connect their needs and interests effectively. As United Nations Secretary-General António Guterres notes in the New Agenda for Peace, rebuilding consensus around shared norms and developing new ways for states to act cooperatively is crucial to addressing collective challenges and meeting shared objectives. SIPRI is pleased to share a series of guest blog posts from partners of the 2024 Stockholm Forum on Peace and Development. This blog builds on a panel discussion at the Forum on the topic ‘Red Sea Security in a Time of Disorder’, which was organized by CMI–Martti Ahtisaari Peace Foundation.