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Diplomacy
President of Azerbaijan Ilham Aliyev meets the President of Russia Vladimir Putin in Astana before the 2024 SCO summit, 3 July 2024

Shifting Geopolitics of Central Asia: The Regional Impact of the Russia-Ukraine War

by Dilnoza Ubaydullaeva, Flinders University , Jessica Genauer, Flinders University

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Amid the Ukraine conflict, Central Asian states are leveraging a multi-vector foreign policy to balance historic ties with Russia and expanding partnerships with global powers. This strategic pivot highlights their resilience in navigating a complex and shifting geopolitical landscape. The impacts of the Russia-Ukraine conflict have stretched well beyond Europe, shifting global alliances and influencing regions like Central Asia in complex ways. Caught between longstanding ties to Russia and other great powers, Central Asian countries now face a delicate balancing act. While the region has traditionally relied on Russia for economic and security partnerships, the ongoing conflict has created new pressures and opportunities, pushing these nations to adopt a more confident, yet cautious foreign policy. Central Asian states have responded to the shifting geopolitical landscape in several ways: maintaining economic ties to Russia, cautiously refraining from direct criticism of Moscow, and expanding partnerships with other global powers such as China, the West, and Türkiye. These evolving dynamics reveal the region’s vulnerabilities and strategic resilience in navigating an increasingly complex world order.  Since gaining independence from the Soviet Union, Central Asian countries—Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Turkmenistan—have undergone a challenging transition from a shared Soviet past to diverse paths of nation-building and economic liberalisation. The five Central Asian states are members of one or more of the Russian-led institutions, such as the Commonwealth of Independent States (CIS), the Collective Security Treaty Organization (CSTO), and the Eurasian Economic Union (EAEU). For Central Asian states, these organisations serve as platforms for regional security and economic collaboration with Russia, allowing Russia, in turn, to maintain a significant influence in Central Asia’s geopolitical landscape. However, participation in these institutions reflects a complex balancing act; Central Asian states must navigate their relationships with Russia while also exploring partnerships with other global powers.  Since the start of the war, the Central Asian states have been leading the so-called “multi-vector” foreign policy approach, aiming for balanced relations with Russia and other powers such as China, the Western world, and Türkiye. The states of the region did not recognise Russia’s newly annexed territories of Ukraine, and some of the states issued official statements in support of Ukraine’s territorial integrity in the early days of the war in 2022. Yet these states did not officially criticise Vladimir Putin and his “Special Military Operation.” There are several reasons at play here: economic reliance and the factor of Central Asian migrants, and membership in the Russia-led institutions.    Russia is a key economic partner for which each Central Asian state relies on for trade. Although, more recently, China has become the top trade partner for most of them, Russia remains the second one after China for Kazakhstan, Uzbekistan, and Kyrgyzstan. Central Asian states export agricultural products, metal and minerals, cotton, and textile products. Another major factor keeping the region reliant on Putin’s regime is millions of migrants from the region, particularly from Uzbekistan, Tajikistan, and Kyrgyzstan—who work in Russia. According to Russian official statistics, there are about 6.1 million migrants in Russia and most come from the states in the region.   Most of the Central Asian migrants travel to Russia for low-level seasonal work, particularly in the construction industry. In 2021 remittances sent by the migrants in Russia accounted for 35 percent of Tajikistan’s GDP and 33 percent of Kyrgyzstan’s GDP. For Uzbekistan, the remittances made up 13 percent of GDP. Such dependence constrains open criticism of Russia’s actions, as economic stability is tied to these remittances.   Further to economic factors, there are also security concerns and long-standing ties with Russia. Tajikistan, Kazakhstan, and Kyrgyzstan are members of the Russian-led security block CSTO; Kazakhstan and Kyrgyzstan are members of the Eurasian Economic Union; and all of the Central Asian states are members of CIS. These ties and economic elements require the states to maintain a balanced approach to safeguard relationships on all fronts.  With the war in Ukraine, there has been increased attention from the global community towards Central Asia. Regional states have been growing partnerships with other global players like China, the EU, the US and Türkiye. China held the first Central Asia Summit in May 2023 in Xi’an, where all leaders of the Central Asian states attended.     The US held its inaugural C5+1 platform summit on 19 September 2023, with President Joe Biden meeting with the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The event was described as “a historic moment, building on years of close cooperation.”   From the European perspective, Germany’s interest in the region has been on the rise; the country initiated the “Germany – Central Asia” platform and held its first summit on 29 September 2023 in Berlin. More recently, on 18 September 2024, Chancellor Olaf Scholz travelled to Astana where the second summit of the platform was held with all Central Asian states. Germany, additionally, recently signed a migration agreement with Uzbekistan with aims to simplify the legal migration of Uzbek skilled workers into Germany.   Meanwhile, Türkiye has strengthened its presence in the region through the platform of the Organization of Turkic States (OTS). The OTS was established in 2009 to enhance cooperation among Turkic-speaking nations across Central Asia, Türkiye, and Azerbaijan, with Turkmenistan and Hungary holding observer status. This cooperation has grown rapidly since the Russian invasion of Ukraine in 2022. It focuses on economic, energy, and transport collaboration among the member states. Central Asian countries such as Kazakhstan, Kyrgyzstan, and Uzbekistan are key players in OTS initiatives. The organisation provides leverage for Türkiye via its cultural and linguistic ties, increasing its influence across the region.   These varying partnerships present viable economic and political alternatives to dependency on Russia. In the shifting geopolitical landscape, Central Asian states are seizing new opportunities to assert their independence and diversify their foreign relations. A key feature of this strategy is their adherence to a “multi-vector foreign policy,” enabling them to engage with various global powers while avoiding alignment with any single bloc. This approach has been strengthened by a renewed emphasis on regional integration, exemplified by the “Consultative Meetings of Central Asian States.” To date, six meetings have taken place, featuring participation from the presidents of each Central Asian country.   Their multi-vector foreign policy allows them to maintain economic and security links to Russia while exploring alternatives with powers such as China, the EU, Türkiye, and the United States. As the global focus on Central Asia intensifies, these countries are also showing renewed interest in regional integration, which may strengthen their collective voice and enhance stability in a volatile environment.

Diplomacy
5-9-2023, Russian President Vladimir Putin, leaders: Uzbekistan Shavkat Merziyoev Kyrgyzstan Sadyr Japarov Tajikistan Emomali Rahmon Armenia Nikol Pashinyan Kazakhstan Kosym Tokaev Turkmenistan Serda

The World From the Bottom Up or The Masterpieces of Eurasian Architecture

by Oleg Barabanov , Timofei Bordachev , Fyodor Lukyanov , Andrey Sushentsov , Ivan Timofeev

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском If there is a central theme to this year, it is the world getting accustomed to the lack of predetermined scenarios. Discussions focusing on the international order are fading; the former order no longer functions, and there is no knowledge of what the new one, if it ever materializes, will look like. When the authors of an annual Valdai report suggested1 several years ago that order, as we know it, was unlikely to ever emerge, their hypothesis drew restrained comments at best. How can we do without order?  However, the habit of living in a structured international system was formed recently by historical standards. Unregulated international relations have marked political history. These relations took shape in the process of interaction between the countries and quickly changed. What we now habitually call a multipolar or a polycentric world is reminiscent, in its form, of a return to an environment last seen before the Great War that broke out in the early 20th century. However, such parallels are misleading because international relations today are structured in a whole different manner.  First, despite stark differences, the world remains an integral and interconnected place. Conflicts do not sever ties but warp them, quite badly at times.  Second, compared to the turn of the 19th and the 20th centuries, or even 1945 when the most robust so far known global order was established, the number of significant players influencing international processes has increased by order of magnitude. That includes more than just major countries.  Previous approaches to establishing the global balance through peaceful or military means are no longer effective, and the countries have yet to see innovative tools make their way to their arsenals. We will be compelled to make do with what we have and accommodate this toolset to deal with the changed circumstances. This will require everyone to re-interpret the ongoing developments and to forgo the stereotypes that defined our perspectives in the previous era. In last year’s report,2 we suggested that the impossibility of structuring international relations around a hierarchy-based approach would be a hallmark of the coming era. The ensuing events showed that things have indeed taken this course.   Avert an all-out cold war.  In 1945, when the international order that we view to this day as exemplary was emerging, writer and essayist George Orwell made a disappointing conclusion in his essay You and the Atomic Bomb3 to the effect that the formidable military capabilities of the countries with massive nuclear arsenals made perpetual cold war unavoidable. This goes beyond confrontation between them and includes − an even more consequential factor − their confrontation with other countries that do not possess weapons of mass destruction. In the hierarchy of international priorities, the relations between the great nuclear powers will always top other kinds of relations, and their conflict will prevent a system of cooperation, global or regional, from ever being created and will only allow creating a system of competition instead. All initiatives put forth by these powers bear the imprint of their relations with those who match them in destructive capabilities. Thus, international politics appeared to him doomed to a perpetual state of not a war, but “peace that is no peace.”  So far, the fate of global stability has indeed been falling prey to differences among the most powerful countries, such as the United States, Russia, and China. But does this provide enough ground to believe we should “bear those ills we have than fly to others that we know not of?”4 Especially so since, even amidst intense confrontation, the world is not splitting into rivalling blocs as it did in the past century. The bloc system experience, like that of the Western community, is not replicated despite its perceived success. This suggests that binding alliances marked by ideology and stern discipline are an exception than the rule. There is no indication that other countries are seeking to form alliances like the West in terms of like-mindedness.  New rules emerge from shifts in the balance of power and, if we take the modern-day world, the fact that small groups of countries are no longer able to tell the rest of the international community what to do. The drive for independence relying on mutual respect that we see in most countries around the world has become the structural foundation underlying an emerging regional and international order. Today’s situation is ironic. On the one hand, a profound shift is unfolding on the international stage. It is greater in size and depth than the previous one that took place in the late 1980s and early 1990s. On the other hand, these changes are not revolutionary by nature. They are not leading to collapse and evanescence, but rather to transformation of the erstwhile rules and norms. Truth be told, no one is really interested in seeing a radical scenario play out. The current and anticipated international escalation looks less like a premeditated strategy and more like an outcome of hare-brained actions or a lack of alternative ideas. The key point is that there is no going back, and what lies ahead will look nothing like recapitulation of the past.  There is a demand for stabilizing mechanisms that would not only expand existing capabilities of the countries, but also function as safeguards against the woefully tragic scenarios, such as those playing out around Ukraine and in the Middle East. The search for such mechanisms will be most widespread in Eurasia, which is the world’s largest continent in terms of its territory and population. This is where the most favorable prerequisites for that have developed. Eurasia’s connection to the rest of the world is so deep that Eurasian processes will have a decisive impact on the other parts of the planet and on approaches to addressing crucial security and sustainability issues, such as food, energy, and the environment. Development of each means security for everyone From the particular to the general  Building a Eurasian system of security cooperation, both as an ideal and a practical project, runs into numerous obstacles. Yet it is possible within this vast expanse, if the goals of each nation’s development can be prioritized over the factors that drive conflict and competition. In Greater Eurasia, conflicts impact only peripheral areas and do not go deep inside the territory, which means that preserving stability through leveraging new forms of security coordination appears quite achievable.  Global events of the past three years clearly show that individual countries’ push to pursue diverse paths of development and to avoid confinement within specific blocs is stronger than the inertia of division along ideological or even strategic lines. Even at the peak of the ideological and military rivalry in the latter half of the 20th century, many “third world” countries chose not to align with either side of the binary universe, even though the two opposing blocs formed the core of international politics. This reluctance has become even more natural now that rivalries have lost their structured character, and the ideology-driven attempts to divide the world into democracies and autocracies are artificial to the point where they fail to hold up to the international real-world test.  With varying degrees of confidence and assertiveness, most countries are upholding their right to their unique place in global affairs, aiming to determine their own paths to achieve their development and security goals. Modern history provides examples of cooperative initiatives aimed at shared prosperity, of which ASEAN is the best known one. Such cooperation is grounded in ruling out diktat in political matters and expanding practical interactions to address each country’s unique needs. These principles offer a starting point for reflections on what regional security might look like in the modern world. Collectively, regional security systems form a foundation of universal security.  Eurasia’s security is inseparable from global security, which makes it particularly special.  First, the security of Russia and China directly depends on their respective relations with the United States. This is a crucial element of international politics that defines its content. Accordingly, the strategic ambitions of the United States have a direct impact on Eurasian security. Furthermore, the western edge of Eurasia − Europe − remains part of the collective West and pursues its group interests.  Europe’s future is a crucial factor which will affect international politics in the decades to come. Even though the era of Europe as the global center is ending, it remains an attractive partner for achieving development goals in other regions due to its economic power and technological capacities. The 2022−2024 events reinforced transatlantic ties and diminished Europe’s agency in international affairs, as the latter continued to follow unwaveringly in the wake of US politics. However, given the pace and scale of global changes, this situation may not last forever. The key Eurasian powers are operating on the premise that the positioning of Europe can shift in the coming years in the wake of the international system transformations, potentially drawing some European countries into embracing broader Eurasian projects. Second, the security of a group of Eurasian countries also makes up part of the collective security. Many of these countries find key financial, technological, and cultural resources for their development outside of Eurasia. They also play important roles in international politics and have influence on numerous developments around the world. Their global importance and involvement in the highest level “great game” ensure that they have a stake in maintaining peace in Eurasia. This helps explain the relative stability within Eurasia’s borders and supports the efforts to establish common security platforms in Eurasia. Notably, not a single major military conflict involving Eurasian countries has ever broken out after WWII (the western edge is an exception due to the European “zero-sum game” approach that has dominated that part of the world for centuries).  The historical paths and itineraries across Eurasia and around it, which predate the Age of Discovery and European colonization, are being revitalized as the global political and economic system continues to diversify. Ironically, the punitive economic measures imposed by the United States and its allies on Russia help develop alternative global trade networks, promote economic flexibility and the search for alternative solutions.  Third, Eurasia objectively covers a sizable portion of habitable land and is home to multiple civilizations and dozens of countries that accommodate 70 percent of the world’s population. It is no coincidence that this region intrigued classical geopolitical theorists who saw Eurasia’s Heartland as the center of global processes.  Eurasian security is inseparable from global security, and its specific principles, mechanisms for country-to-country cooperation, and institutional forms can hardly be defined specifically for just one region. Eurasia is complex in terms of country-to-country relations, but holds vast potential, given its quest for a sustainable interrelations system and absence of obsolete institutions. It has the potential to develop alternatives to the principles and institutional forms of European security,5 which cannot be universal due to Europe’s unique cultural and historical background. The Helsinki framework, which created the Conference and then the Organization for Security and Cooperation in Europe (OSCE) was Europe’s most significant achievement in establishing security for all. However, the OSCE was unable to adapt to the new balance of power following the 1946–1990 Cold War, which spawned ongoing major military and political crisis in Europe.  From the general to the particular  Eurasia is a region that may give birth to a new concept of international security. This potential is supported by, on the one hand, its inseparability from global security and development issues and, on the other hand, by the countries’ interest in a stable environment that is free from existential threats. Eurasia’s position in the global economy does not require nations to unite solely to reap the benefits of unification, as is the case with the Western countries. However, the creation of well-defined geopolitical and civilizational barriers is unlikely in Eurasia. The continent’s vastly different experiences in new international trends may eventually provide a foundation for global transformation.  Factors that underlie Eurasian security are the following:  Recognition of the continent’s spatial integrity and the impossibility of drawing dividing lines there.  Acknowledgment of shared interests and collective leadership.  Political equality of all countries of the region, regardless of their size or potential. There are no revolutionary or revisionist countries in Eurasia that feel compelled to export their political systems (exporting socio-political models as the Soviet Union or the United States did) to survive. Radical ideas come not from the countries, but from transborder extremist groups. Containing and eliminating them is a common objective.  The Eurasian regional security system aims to address issues separately from global security concerns which are, according to Orwell, dominated by relations between major nuclear powers, and to enhance the region’s resilience to external challenges, which implies resilience of each country. Defence against external threats and preventing internal conflict from getting worse are achieved through multilateral cooperation rather than rigid bloc discipline. A practical objective at hand is to identify external threats that will not force Eurasian countries into picking sides in an Orwellian Cold War with the involvement of nuclear powers.  A shared understanding that independent countries form the basis of order helps articulate the core principle of mutual renunciation of any moves that may violate the region’s integrity and equality of the countries in that region. The core value lies in unconditional respect for each other’s socio-political systems and firm rejection of the efforts to change them. This approach may seem self-evident and is in stark contrast with the practices used in the 1990s–2010s when forceful transformation of sovereign countries with active external involvement up to military intervention was cast as a standard approach by Western political leaders.  Sovereign equality enables justice, a concept that, while subjective, is central to international politics. Future international order will center on ensuring just relations, even if past institutions, which were designed to smooth power imbalances, get dismantled. The more the future rules can guarantee fairness, the more effective they will be at preventing armed conflicts. The collective goal is to uphold justice regarding the core interests and values of all Eurasian nations. Not like in Europe  It is unrealistic to expect that the next stage will somehow replicate the circumstances which were typical of Europe in the past centuries or decades. Speaking of future regional security, it is essential to break free from traditional patterns of perception and all-too-familiar solutions. Unlike Europe where the interests of Russia and the West overlap, Eurasia lacks a common fundamental challenge that could be resolved by establishing a Helsinki-like model of collective regional security. In this case, there will be no opposing great powers or blocs, whose balance will prioritize interests. In Eurasia, there are no second-grade countries or second-grade interests, because even the largest countries are incapable of imposing their own rules on any other country.  As we have seen, the balance of power underlying the European system cannot be considered a solution simply because major Eurasian countries do not compete in issues that are critical to their survival. In other words, the balance of power and influence between Russia, China, and India − even if tensions arise occasionally − does not affect their chances of survival or their chances to achieve their development goals. The differences implicating major Eurasian powers do exist, but they manifest on a global level of international politics. They are not of paramount importance in Eurasia, which is critically important when it comes to cooperation. Power and its emotions  Even though Eurasia’s make-up is unique, and it is an integral part of the international system, it is not detached from the international context and historical patterns. After a period of high regulation and reliance on institutions (this order of things was established in 1945), international relations have reverted to the “original settings.” Power remains a key category, and the use (or the threat of use) of power is back in demand. Moreover, the emotions and personal qualities of leaders, combined with national strategic cultures, now shape interactions among major powers even more than the established order, norms, and rules that date back to the era of the bipolar face-off, which persisted throughout the transitional period.  Fear and anger are two emotions that matter in international affairs. In addition to existing circumstances, they are identified in each case by a nation’s historical experience. Fear, ranging from apprehension to anxiety and dread, is one primary driver behind the countries’ behaviour.6 Anger, spanning from irritation and resentment to rage, also drives international relations and manifests itself in acts of retribution and violence that include terrorism. Fear and anger often drive not only political leaders, but entire societies as well. These emotions impact the way security is arranged and understood.  Occasionally, countries are observing the evolution of international processes from a position of force and the position of force-derived emotions, such as tranquility and firmness. The sense of power is a vital driving force in relations among leading military powers. The basic emotions such as fear and anger, as well as tranquility rooted in the sense of one’s own superior strength once again, as in previous historical eras, determine the choice between two key strategies: annihilation and positional strategy.7  The annihilation strategy invariably relies on significant superiority in assets and military force, initiative-taking moves, and swift overpowering of an opponent. By contrast, the positional strategy concedes the initiative and allows the advancing party to act. It relies on the importance of concentrating and gradually building the resources up. Anyone employing this strategy avoids decisive battles for as long as they can and engages only when they believe they cannot lose. Typically, time favors those who employ positional strategy.  Traditionally, most Eurasian countries prioritize the positional strategy. Classical Eurasian military thought is captured, for example, in the Chinese treatise The Art of War, which outlines the principles of positional strategy: “Thus the highest form of generalship is to balk the enemy’s plans, the next best is to prevent the junction of the enemy’s forces, the next in order is to attack the enemy’s army in the fi eld.”8 In Russia, patience and willingness to endure lengthy confrontations have always been part of the military and political tradition, which manifested itself, for example, in the tactic of medieval Moscow princes or the generals of the 1812 Patriotic War.  These speculations are related to the ongoing international developments. Amid profound shifts in the balance of power, the United States, striving to maintain its hegemony, increasingly chooses offensive and provocative policies. This policy is not rooted in quiet confidence in its own strength but stems from anger and frustration at being challenged by its antagonists and resentment aimed at the internal opposition that underestimates the scale of this challenge. In addition to anger, there is fear and anxiety that the unfolding trends could lead to a scenario that is unfamiliar and unsettling for the United States where the balance of power will shift towards East.  The clash of emotions is a hallmark of the post-institutional world. 9 A different conference  Eurasia lacks conditions where any power can become dominant. This does not mean, however, that rivalry is out of the question here. Each power pursues its own interests, and balances of power will form over time and with difficulty. However, Eurasia’s advantage lies in the fact that − with few exceptions − there are no long-standing or deeply rooted conflicts between the countries overfilled with fear or anger. Major Eurasian powers do not have an objective need to be at feud with each other to achieve their vital goals. Vast and rich expanses of land can accommodate diverse cultures, civilizations, and foreign policy priorities. This is why Eurasia can reach a balance relying on a patient positional strategy rooted in quiet confidence, firmness, and mutual interest.  The Eurasian collective security system cannot rely on the principles of a military alliance with clear-cut obligations. Bloc discipline or a rigid institutional structure are ruled out as well. As mentioned above, the model established in Europe in the 1970s as part of the pan-European process cannot be used, either. However, the concept of a “conference on security and cooperation,” which emerged back in the day, fits the Eurasian space well as a mechanism for ongoing multilateral consultations involving interaction on all issues. The key difference from Europe is that the CSCE/ OSCE was originally created to defi ne spheres of influence in Europe and later morphed into a tool to maintain Atlantic monopoly. Neither is a viable option in Eurasia. An equal distribution of responsibility for stability and security among Eurasian powers is based on forgoing any nation’s dominance.  The principles of polycentricity, first outlined in the 1997 Russia China Joint Declaration on a Multipolar World and the Establishment of a New International Order,10 include non-interference in domestic affairs, respect for mutual interests, equality, and a commitment to a collective approach to addressing security issues, such as demilitarization of shared borders or provision of security guarantees to small and medium-sized buffer countries located between major powers. These principles are now taking on a multilateral dimension. The Eurasian security cannot rely on a closed architecture. It is embodied not in a single international organization, but rather in a network of bilateral and multilateral agreements and diverse associations that collectively cover all (not just military and political) aspects of collective security. Downsizing the presence of external forces, which leverage fears and anger of small and medium-sized countries to stir up tensions in Eurasia, and mitigating chances for their intervention is an important goal. The security system will focus on resolving all major conflicts with the involvement of regional actors.  The mutual nuclear deterrence between major powers makes achieving absolute political goals an unviable proposition. Now is the time for relative victories; achieving an absolute victory is out of the question. All major conflicts that we observe in Eurasia, such as between Russia and the West, the United States and China, India and Pakistan, and Iran and Israel, to name a few, are rooted in positional confrontations, where a strategy of annihilation is fraught with high risks and is largely unproductive. The architecture of Eurasian security in its military and political and force-based aspect will rely precisely on the sense of quiet confidence in one’s strength and the general drift of international relations. Security and advantages  Modern-day international security is a complex construct that transcends the military and political framework. Just like competition embraces all spheres of activity, including culture and the economy, so too does security with its compound nature. Common sense suggests that economic cooperation creates a foundation for confrontation-free political relations. However, things tend to be more complicated in the real world.  The Russia-EU economic relations were remarkably strong. Even in 2022, trade amounted to $258.6 billion.11 The EU was Russia’s key trading partner and the primary market for its energy. Deeper integration, such as allowing Russian companies to own EU pipeline asset shares, or shares in individual companies, such as Opel, was held back for political reasons long before Ukraine crisis broke out in 2014.12 High trade volumes did nothing to prevent degradation, and the political dialogue collapsed. Russia-Ukraine relations were likewise marked by elevated levels of mutual dependency even after 2014. In 2021, trade amounted to $12.2 billion, which did not alleviate, but rather exacerbated political differences. A peaceful matter about exclusivity of economic relations with Europe dating back to the early 2010s led to an onset of a deep crisis that ended in an armed conflict. The highest level of economic interdependence between China and the United States (with trade hitting $690 billion in 2023)13 goes hand in hand with an escalation of political competition and Washington’s attempts to throw a wrench in China’s technological growth, including by way of imposing restrictive measures.14 Conversely, complex political relations between China and India are unfolding amid trade numbers in excess of $100 billion.15  Examples of the non-linear relationship between the economy and international politics, particularly in matters of security, abound. Economic benefits may create enabling conditions for political cooperation but cannot shield countries against confrontation when it comes to fundamental security issues. Politicization and ways to fight it.  The modern-day world economy is highly globalized in terms of finance and trade. Globalization has significantly brought down costs, streamlined supply chains, and integrated multiple economies into technological and value-added chains, thus promoting their growth and modernization. The US dollar has become a convenient tool for making international payments and creating reserves, while technological platforms have brought countries together into a single economic organism. However, the “vital organs” of the global networks in the form of financial, technological, and communication hubs have remained under the jurisdiction of Western, primarily US, state bodies. The United States is losing credibility, because it takes advantage of economic interdependency networks for political gains, yet there are no full-fledged alternative solutions in sight.16 With the US dollar dominating the international scene, disconnecting individual companies or individuals from payments in dollars can result in heavy economic damage. According to SWIFT, the US dollar accounts for 48.03 percent of transactions handled by this international payments network, while the share of euro has plummeted to 23.2 percent.17 Blocking financial sanctions feature prominently in the US toolset, and are widely used by the European Union, the United Kingdom, Canada, and other countries as well. Russia has become a primary target for such measures, although individuals from Iran, North Korea, China, and even US allies and partners like Türkiye or the UAE are also on the receiving end of these sanctions, albeit to a lesser extent. Trade and technological ties have become hot-button political issues as well. Sanctions on Russia include sweeping bans on exports and imports. US legislation imposes export control compliance on countries that use US-made technologies, manufacturing equipment, and software. Import restrictions cover Russian petroleum, refined products, gold, diamonds, steel, and other products. Export controls regarding China, especially in electronics and telecommunications, are tightening. Chinese electronic services are banned in the United States and some companies face contract restrictions in Western countries. Iran is under a total exports and imports ban, with even stricter bans imposed on North Korea. Even EU companies are forced to comply with the US export controls to avoid secondary sanctions.  Transport and digital infrastructure are affected as well. Tools include setting price thresholds for transporting Russian oil, sanctions for sizable transactions with Iran’s oil sector, and restrictions on the use of maritime space and airspace, ports, airports, gateways, and other infrastructure facilities. Sanctioned individuals are cut off from access to what are now customary services, such as email, audio, and video file aggregators, not to mention more applied online solutions in the sphere of engineering and other technical areas.  The targeted countries do provide a response. Russia and China have incorporated instruments to block financial sanctions into their legislation. Russia has imposed a ban on exports of manufacturing equipment and has implemented extraordinary measures against economic agents from unfriendly countries. China is implementing a “dual circulation” system in strategic economic areas and investing in developing its own technology. Iran and even more so North Korea have long lived under partial or near-total autarky. The US allies are pondering diversification of financial assets. Back to market  The above developments have become quite widespread and continue to expand. They transfer the cutthroat zero-sum-game-like military and political competition to the economy. It cancels market principles that are based on mutual advantages. With the economic ties and interdependence networks weaponized, severing such ties or at least diversifying them appears a sensible response. Even if such steps are deficient from a market perspective, they are inevitable as a means of mitigating security risks.  Diversifying financial settlements implies using currencies other than the US dollar. National currencies partially address this issue. Using the renminbi in trade with China is a rational choice given the availability of a vast Chinese market. However, difficulties with investing rupees arise when it comes to Russia-India trade. Even more challenges arise from trade with less developed or more specialized economic systems. Strategically, a more universal mechanism is needed that could be used by several major economies, a BRICS mechanism.  The quest for ways to diversify payments is ongoing but expecting to see a “BRICS currency” emerge any time soon is premature for technical reasons, among other considerations. A better path is not to introduce an alternative reserve “anti-dollar,” but to create diverse bilateral or multilateral settlement arrangements that can bypass the US financial service monopoly. Russia is at the forefront of these efforts given its economy size and the number of sanctions imposed on it.  The same applies to creating innovative technological chains and domestic production capacities, as well as looking for alternative suppliers of manufactured goods and technologies. More recently, we had the chance to witness critical vulnerabilities when it comes to using products that include Western-made components. The domestically made substitutes can be less effective and more expensive but are unparalleled in terms of security. Amid bans and restrictions, such alternatives provide a solution, as does searching for replacements in other markets. Today, we see new chains pop up in places where they could hardly be expected to exist just a few years ago, especially when it comes to Russia-China relations. The US stick policy has defeated its purpose when economic agents around the globe became more ingenious and improved their economic flexibility. The infrastructure constraints have spurred the emergence or scaling of various phenomena, including “shadow” tanker fleets, alternative insurance systems, exchanges, communication, and online communication services.  Large transport projects in Eurasia are back on the agenda. Progress can be clearly seen in the North-South corridor. Moving such initiatives forward and creating a single system across the Eurasian region is a challenge, since Eurasian countries vary among themselves and maintain different relations with the United States and the Western countries. Significant economic disparities are also a factor to be reckoned with. More likely, such a system might incorporate a multitude of decentralized bilateral and multilateral formats and include financial tools for transactions between individual countries, as well as settlement systems for international associations such as BRICS, technological projects in niche areas, and targeted infrastructure solutions. However, the number of such innovations will inevitably give rise to qualitative changes.  The Eurasian economy will inevitably move away from the nets of West-centric interdependence which are being used as weapons. There is no need to forget them, but there is a need for backup tools as safeguards against arbitrary politicization. Eurasian economic security can be a flexible and decentralized set of mechanisms to reduce “dependence on interdependence.” While this may seem strange now, Eurasia could indeed become a flagship in global processes for returning to a much more market-based system of economic ties. Trust without coercion  Peaceful and productive relations between countries, whether bilateral or multilateral, can only be built on trust, which holds equally true for the prospects of development and matters of security.  What underlies trust in international relations? The Western answer to this question emphasizes cultural and ideological homogeneity, with the North Atlantic Alliance as a product of this approach. Modern Western countries display a strict bloc (self-)discipline about key international issues, which can be seen in their voting as one at the UN General Assembly and the G20, as well as their unified policies. Those who break the ranks, if any, are quickly put back in their place. On the face of it, this approach presents a competitive advantage in a multipolar world, which is further proof of internal strength. However, it lacks flexibility and is marked by ideology-driven dogmatism, which is an irritant for the non-Western world.  The World Majority countries18 (a term used in Russia to refer to non-Western Global South and Global East countries) do not have to follow bloc discipline. In the face of acute geopolitical conflicts that seek to split the modern world, this can be perceived as weakness, which fact is occasionally exploited by our Western counterparts, for example, on the G20 platform. However, this phenomenon should be approached differently: as a striving of various countries to achieve ultimate flexibility, which will allow them not to limit their options and to attract every development resource within their reach.  An important question arises in this regard, though: how can relationships be built within a diversified community torn by numerous contradictions? The tradition of independent cooperation among non-Western countries spans decades, and is rooted in the 1955 Bandung Conference, where the countries then categorized as part of the Third World or the Non-Aligned Movement proclaimed shared goals and objectives. The declaration affirmed a commitment to the common cause of resisting Western colonialism and imperialism, recognized the equality of all participants regardless of differences between them, and promoted shared interests in the name of development. Later, ASEAN adopted a similar set of principles, which has now made its way to BRICS and the SCO platforms.  Similar processes are observed in Africa as well. The Organization of African Unity (OAU) was based on shared values and objectives facing African countries, such as opposing colonialism and neo-colonialism. Statements by the OAU founding figures come to mind. Julius Nyerere, the first president of Tanzania, had the following to say: “Only with unity can we be sure that Africa really governs Africa.”19 In his opening remarks at the 1963 summit in Addis Ababa, where the OAU was founded, Emperor of Ethiopia Haile Selassie I also emphasized the importance of unity and setting aside individual differences to achieve solidarity: “Unity is the accepted goal. We argue about means we discuss alternative paths to the same objectives; we engage in debates about techniques and tactics. But when semantics are stripped away, there is little argument among us. We are determined to create a union of Africans.”20 This keynote address also highlighted the direct link between Africa and Asia: “We stand united with our Asian friends and brothers. Africa shares with Asia a common background of colonialism, of exploitation, of discrimination, of oppression. At Bandung, African and Asian states dedicated themselves to the liberation of their two continents from foreign domination and affirmed the right of all nations to develop in their own way, free of any external interference. The Bandung Declaration and the principles enunciated at that Conference remain today valid for us all.”21.     Much has changed since the Bandung and Addis Ababa conferences, and the world has changed out of recognition as well. Yet, the principles and goals declared there have not only remained relevant, but are now getting a second wind, especially because they imply mutual trust. As we sum up the experiences of Asian and African countries, we can pinpoint several principles that have been tested and approved by political practices in the non-Western world.  First: Recognizing a common goal, which unites different countries, and advancing towards it is an undeniable priority of their policies.  Second: Recognizing that differences should not hold back progress towards common goals.  Third: Acknowledging the fact that differences will not vanish. Each country has its unique specifics and a path to follow. Trust implies tolerance for differences and trade-offs to make sure differences do not lead to conflict.  Fourth: Flexible institutional and procedural mechanisms. The combination of trust and acknowledgment of differences takes rigid institutional frameworks and restrictions off the list of priorities. Coexistence and intertwining of different structures with various formats of membership and commitments thus becomes the practical outcome. Fifth: Gradual internal consolidation fostering the necessary conditions.  Sixth: Strengthening trust-based solidarity among the World Majority countries.  Seventh: Commitment to seeking local solutions to regional problems and addressing global issues as a sum of regional approaches to ensure that individual countries’ right to development is not hostage to new global constraints.  This path is longer and more complex than conventional bloc discipline, but, in an increasingly diverse world, it may be the only viable path, as fewer countries out there are willing to align in a single column. Is agreeing on the world order principles possible?  The post-World War II era brought forth new, never used approaches to structuring the international political and economic system. The achievements of the then created institutions are undeniable, yet no product is everlasting. The ongoing profound transformation of the global landscape calls for an effort to deeply rethink the accumulated experience rather than discard it. The events of the second quarter of the 21st century will not draw a line under the previous world structure but will pave the way to enhance and to adapt it to new realities. After all, the ideals that guided the architects of the post-war world remain in force and align with the global trends.  An open world space that ensures the rights to peaceful development, prosperity, and self-realization for all nations and countries is a shared goal in today’s world. In fact, we are now much closer to this goal than we were eighty years ago when the post-war order was being discussed. Back then, much of the world was still under colonial rule, and major powers were entrenched in systemic ideological confrontation. Today, neither of these conditions exists, though remnants of the past are still there. Addressing these remnants should be part of the efforts to create a renewed world architecture.  The emergence of new global organizations is highly unlikely. However, at the level of large regions, unilateral efforts will be insufficient, and the push for more stable forms of cooperation is likely to prevail. Currently, new constructs of that kind − the Shanghai Cooperation Organization, the Eurasian Economic Union, the Organization of Turkic States, and the Belt and Road Initiative − are being tested in Eurasia. All these initiatives, as well as any existing or future ones, are experimental in nature. Time will tell how effective and functional they really are. In the future, universal regional platforms might be able to encompass different cooperation institutions in specific areas whose objectives will not conflict with one another.  In the middle of the 20th century, the world was built from the top down, from the peak of the hierarchical pyramid down to its base. The new system will not be that consistent, but it will be far more democratic. It is being built from the bottom up and relies on self-organization and cooperation between countries within individual regions, where they must jointly address pressing, practical issues. If humanity avoids making the mistakes that will set it back as was the case in the past, then practical interaction at the regional level will give rise to a new system that will capture the planet’s complexity and diversity and be able to transform these qualities from obstacles on the way to development into a foundation for growth. References 1: Oleg Barabanov, Timofei Bordachev, Yaroslav Lissovolik, Fyodor Lukyanov, Andrey Sushentsov, Ivan Timofeev. Living in a Crumbling World. Valdai Club Annual Report. October 15, 2018. URL: https://valdaiclub. com/a/reports/living-in-a-crumbling-world/  2: Oleg Barabanov, Timofei Bordachev, Yaroslav Lissovolik, Fyodor Lukyanov, Andrey Sushentsov, Ivan Timofeev. Maturity Certificate, or the Order That Never Was. Valdai Club Annual Report. October 2, 2023. URL: https://valdaiclub.com/a/reports/maturity-certifi cate-or-the-order-that-never-was/ 3: Orwell G. You and the Atomic Bomb // Tribune, October 19, 1945.  4: William Shakespeare, Hamlet. 5: For four hundred years, the latter has served as a global security system: the Westphalian rules of the game, the balance of power, and Metternich’s rule, which holds that international security is achieved when one country considers the security concerns of another country as its own. 6: Pace M., Bilgic A. Studying Emotions in Security and Diplomacy: Where We Are Now and Challenges Ahead // Political Psychology. 2019. Vol. 40. No. 6. Pp. 1407–1417. Lebow R.N. Fear, Interest and Honour: Outlines of a Theory of International Relations // International Affairs. 2006. Vol. 82. No. 3. Pp. 431–448. 7: Стратегия в трудах военных классиков. Edited and commented by A. Svechin. Moscow, 1924; Carr A., Walsh B. The Fabian Strategy: How to Trade Space for Time // Comparative Strategy. 2022. Vol. 41. No. 1. Pp. 78–96.  8: From the treatise The Art of War commonly attributed to the legendary military commander and strategist Sun Tzu (6th-5th century BC).  9: Dominique Moisi. The Clash of Emotions. January 31, 2007. URL: https://www.ifri.org/en/external-articles/ clash-emotions 10: Russia-China Joint Declaration on a Multipolar World and the Establishment of a New International Order. URL: https://docs.cntd.ru/document/1902155?ysclid=m27d9a94wj720511004 11: Товарооборот между Россией и ЕС оказался максимальным за восемь лет. March 7, 2023. URL: https://www. rbc.ru/rbcfreenews/6406ceed9a7947b3912b3c98?ysclid=m0l0zgm3hl844648897  12: Беликов Д., Егикян С. Magna и Сбербанк прокатили мимо Opel. November 5, 2009. URL: https://www.kommersant.ru/doc/1268884?ysclid=m0l145995v673478546 13: Козлов А. Объем торговли США и Китая обновил исторический рекорд. February 10, 2023. URL: https:// www.vedomosti.ru/economics/articles/2023/02/10/962429-obem-torgovli-ssha-i-kitaya-obnovil-rekord  14: Тимофеев И.Н. Политика санкций США против Китая: сравнительный анализ //Мировая экономика и международные отношения. 2023.Т.67, №11. p. 70–79.  15: СМИ: Китай стал главным торговым партнером Индии в 2023–2024 финансовом году May 13, 2024. URL: https://tass.ru/ekonomika/20778213  16: See more about the phenomenon of weaponising interdependence in: Farrell H. and Newman A. Weaponized Interdependence. What Global Economic Networks Shape State Coercion // International Security. 2019. Vol. 44, No 1. P. 42–79. 17: Доля доллара в расчетах через систему SWIFT достигла рекордного уровня в 48%. September 28, 2023.URL: https://www.kommersant.ru/doc/6239234?ysclid=m0l1mzg1fu656162416 18: The World Majority and Its Interests. Valdai Club report, ed. by Timofei Bordachev. October 10, 24, URL: https://valdaiclub.com/a/reports/the-world-majority-and-its-interests/   19: Quotable Quotes of Mwalimu Julius K. Nyerere / collected from speeches and writings by Christopher C. Liundi. Dar es Salaam: Mkukina Nyota Publishers. 2022. P. 68. 20: Important Utterances of H.I.M. Emperor Haile Selassie I. 1963-1972. Addis Ababa: The Imperial Ethiopian Ministry of Information. 1972. P. 352.  21: Ibid. P. 361–362.

Diplomacy
18/11/2024. Rio De Janeiro, Brazil. Prime Minister Keir Starmer attends the opening session of the G20 Summit in Brazil. Picture by Simon Dawson / No 10 Downing Street

A review of the G20: more of the same or significant progress?

by Flavia Loss de Araujo

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The outcome of the G20 leaders' summit held in Rio de Janeiro undoubtedly marks a series of victories for Brazilian foreign policy and also for the international community if we understand what is considered a success in terms of global governance. Firstly, the G20 summit declaration is a major achievement for Brazilian diplomacy, as it brings together twenty countries around agendas that not all of them support (such as human rights). Reaching this consensus required a year of intense negotiations to reach the final result. Brazil obtained support on the main themes it proposed: hunger and poverty, always off the radar of rich countries; sustainability; the bioeconomy , reaching the first multilateral treaty on the subject. Another consensus was the taxation of the super-rich , an issue that touches on the issues of inequality between countries and tax havens. Reaching the support of the G20 members around these proposals represented the reconstruction of the objectives of Brazilian foreign policy, which had been mocked during the Bolsonaro government, and crowned Brazil's return as a relevant country in the international community after years of self-inflicted isolation. Two other points that went unnoticed by some analyses is that the G20 summit allowed dialogue with Venezuela to return to normal, avoiding enormous damage to the Brazilian government and preserving good relations with the tumultuous neighboring country. And what can we say about the turbulent presence of the newest representative of the Latin American extreme right, Argentine President Javier Milei, who until the last moment tried to undo the consensus reached and was skillfully circumvented by Brazilian diplomacy? Returning to the proposals made by the presidency and supported by the other members of the group, are they “more of the same”, “undefined”, that do not change at the international level, as some analysts and part of the press said yesterday? Understanding the nature of international forums such as the G20 may answer this question. Outlined in 1999 and formalized in 2008, the G20 was created to bring together finance ministers and central bank governors from the twenty largest economies on the planet to discuss the financial crises of those periods. The crises of the 1990s, in particular, brought a new factor: it was the first time that economic problems in developing countries affected the central economies. It was therefore necessary to expand the discussions beyond the restricted Group of Seven (G7), a group of rich countries created in 1975, and to bring emerging economies to the negotiating table. Over the years, the G20 began to discuss other topics besides finance, and today sustainability is at the center of the work. The G20 emerged as an informal group with a flexible structure, dependent on a rotating presidency among its members to organize summits and working groups. In addition, it does not have a constitutive treaty and does not have the capacity to impose standards. When reading this brief description, most people wonder why a forum of this kind should exist if it “serves no purpose.” But informality and flexibility are a demand of the member countries that voluntarily chose to participate. These are the characteristics that allow ministers and other representatives of countries with divergent interests, such as the United States and Russia, to discuss issues that affect humanity, such as the eradication of hunger or climate change, for almost a year. The concrete actions that we so desperately need will depend on the efforts of each country and the corresponding pressure from their civil societies. The commitments exist, and now it is necessary to demand their implementation. Imagining a world without any kind of coordination is difficult because we have lived under the weak governance of the United Nations (UN) since the end of the Second World War, which, by the way, will be 80 years old in 2025. The memories of an international system under constant threat of global wars and in which common problems were not even discussed are a pale memory and, perhaps for this reason, so many people disdain the advances of international forums such as the G20. There are political forces today that oppose these alliances and the minimum level of global governance that we have managed to achieve, as Milei’s criticisms in his speech at the leaders’ meeting made clear. In line with the thinking of other far-right politicians, the Argentine president called global governance a “corset” that suffocates countries that think differently. It is contradictory that international regimes are criticized for restricting the freedom of States while at the same time being accused of being weak and ineffective, which demonstrates empty criticisms that serve only to encourage their supporters against imaginary enemies. Leaders like Donald Trump and Miley defend the “every man for himself” rule in international relations. This idea is gaining more and more followers among the people, a situation that makes declarations like the one by the G20, which defends basic principles of human rights and sustainability, an important manifesto for those who still defend an international order based on rules and cooperation. The Brazilian presidency has achieved important achievements for our foreign policy and also for the international order that it seeks to preserve.

Defense & Security
8 November 2022 Vladimir Putin during a speech at the ceremony of signing agreements on the annexation of the DPR, LPR, Zaporozhye, and Kherson regions to Russia. Attribution to: Council.gov.ru (http://council.gov.ru/events/news/138807/)

Statement by the President of the Russian Federation

by Vladimir Putin

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском President of Russia Vladimir Putin: I would like to inform the military personnel of the Russian Federation Armed Forces, citizens of our country, our friends across the globe, and those who persist in the illusion that a strategic defeat can be inflicted upon Russia, about the events taking place today in the zone of the special military operation, specifically following the attacks by Western long-range weapons against our territory.The escalation of the conflict in Ukraine, instigated by the West, continues with the United States and its NATO allies previously announcing that they authorise the use of their long-range high-precision weapons for strikes inside the Russian Federation. Experts are well aware, and the Russian side has repeatedly highlighted it, that the use of such weapons is not possible without the direct involvement of military experts from the manufacturing nations.On November 19, six ATACMS tactical ballistic missiles produced by the United States, and on November 21, during a combined missile assault involving British Storm Shadow systems and HIMARS systems produced by the US, attacked military facilities inside the Russian Federation in the Bryansk and Kursk regions. From that point onward, as we have repeatedly emphasised in prior communications, the regional conflict in Ukraine provoked by the West has assumed elements of a global nature. Our air defence systems successfully counteracted these incursions, preventing the enemy from achieving their apparent objectives.The fire at the ammunition depot in the Bryansk Region, caused by the debris of ATACMS missiles, was extinguished without casualties or significant damage. In the Kursk Region, the attack targeted one of the command posts of our group North. Regrettably, the attack and the subsequent air defence battle resulted in casualties, both fatalities and injuries, among the perimeter security units and servicing staff. However, the command and operational staff of the control centre suffered no casualties and continues to manage effectively the operations of our forces to eliminate and push enemy units out of the Kursk Region.I wish to underscore once again that the use by the enemy of such weapons cannot affect the course of combat operations in the special military operation zone. Our forces are making successful advances along the entire line of contact, and all objectives we have set will be accomplished.In response to the deployment of American and British long-range weapons, on November 21, the Russian Armed Forces delivered a combined strike on a facility within Ukraine’s defence industrial complex. In field conditions, we also carried out tests of one of Russia’s latest medium-range missile systems – in this case, carrying a non-nuclear hypersonic ballistic missile that our engineers named Oreshnik. The tests were successful, achieving the intended objective of the launch. In the city of Dnepropetrovsk, Ukraine, one of the largest and most famous industrial complexes from the Soviet Union era, which continues to produce missiles and other armaments, was hit.We are developing intermediate-range and shorter-range missiles in response to US plans to produce and deploy intermediate-range and shorter-range missiles in Europe and the Asia-Pacific region. We believe that the United States made a mistake by unilaterally destroying the INF Treaty in 2019 under a far-fetched pretext. Today, the United States is not only producing such equipment, but, as we can see, it has worked out ways to deploy its advanced missile systems to different regions of the world, including Europe, during training exercises for its troops. Moreover, in the course of these exercises, they are conducting training for using them.As a reminder, Russia has voluntarily and unilaterally committed not to deploy intermediate-range and shorter-range missiles until US weapons of this kind appear in any region of the world.To reiterate, we are conducting combat tests of the Oreshnik missile system in response to NATO’s aggressive actions against Russia. Our decision on further deployment of intermediate-range and shorter-range missiles will depend on the actions of the United States and its satellites.We will determine the targets during further tests of our advanced missile systems based on the threats to the security of the Russian Federation. We consider ourselves entitled to use our weapons against military facilities of those countries that allow to use their weapons against our facilities, and in case of an escalation of aggressive actions, we will respond decisively and in mirror-like manner. I recommend that the ruling elites of the countries that are hatching plans to use their military contingents against Russia seriously consider this.It goes without saying that when choosing, if necessary and as a retaliatory measure, targets to be hit by systems such as Oreshnik on Ukrainian territory, we will in advance suggest that civilians and citizens of friendly countries residing in those areas leave danger zones. We will do so for humanitarian reasons, openly and publicly, without fear of counter-moves coming from the enemy, who will also be receiving this information.Why without fear? Because there are no means of countering such weapons today. Missiles attack targets at a speed of Mach 10, which is 2.5 to 3 kilometres per second. Air defence systems currently available in the world and missile defence systems being created by the Americans in Europe cannot intercept such missiles. It is impossible.I would like to emphasise once again that it was not Russia, but the United States that destroyed the international security system and, by continuing to fight, cling to its hegemony, they are pushing the whole world into a global conflict.We have always preferred and are ready now to resolve all disputes by peaceful means. But we are also ready for any turn of events.If anyone still doubts this, make no mistake: there will always be a response.

Diplomacy
G20 Brazil 2024 Summit logo with country flags in the meeting room. Symbol of the Group of 20. Country leaders address issues related to the global economy - Rio de Janeiro, Brazil 07.23.2024

The G20 summit in Rio de Janeiro, Brazil: the moment of truth!

by Mohamed Lamine, KABA

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском In Rio de Janeiro, world leaders are gathering for a historic summit. The G20, the symbol of global governance, is at a crossroads. The planet is waiting. The climate, economic and geopolitical challenges are urgent.Since yesterday, at the G20 Summit in Rio de Janeiro, under the strategic engagement of Russia, Foreign MinisterSergey Lavrov, guided by the instructions of President Vladimir Putin, has been playing a key role in discussions on combating inequality, hunger and poverty, as well as reforming global institutions. Together with the BRICS Alliance, innovative initiatives are being put forward to strengthen economic cooperation and global stability, including sustainable development projects and strategic trade agreements. This Summit is proving to be a crucial platform for addressing pressing global challenges such as security and climate change, while potentially influencing global governance and international relations in the years to come.Geopolitical context of the summit, the madness of the Biden administrationAs the G20 group meets in Rio de Janeiro to reconcile the positions of the balance of power in the global chessboard, the recent antithetical decisions of the United States, held on the very eve of the summit and supported by France and Great Britain, are once again dispersing the positions to be reconciled. The Western minority, accustomed to living off the labor of the planetary majority, is lamentably trying to redefine the dynamics of the international community in its favor, by authorizing deep strikes on Russian territory. This approach, adopted by the Biden administration, reflects both madness and a vision of resistance in the face of the potential defeat of Ukraine and NATO allies against Russia, while seeking a reaction that could exacerbate global tensions. This audacious geopolitical calculation, perceived as a last-ditch attempt to consolidate Ukrainian positions before a potential change in American leadership, marks a turning point towards a dangerous escalation of hostilities. It can also be compared to a very big step taken towards the start of the Third World War.The 2024 G20 summit in Rio de Janeiro is therefore taking place in a complex geopolitical context, marked by key global issues. International conflicts, exacerbated in the Middle East, Ukraine, Sudan, and tensions over the role of the United States, France, Great Britain and the collective West are at the heart of discussions on global security. While António Guterres (UN Secretary-General) urges the G20 to adopt actions aligned with the UN Charter – although Western ambitions of domination are being challenged by the rise of the BRICS Alliance – the Western minority continues to pour oil on the embers precisely to satisfy its ambitions of eternal domination.The climate crisis, meanwhile, is forcing more ambitious policies, as the G20, responsible for 80% of global greenhouse gas emissions, must revise its commitment to limit global warming to 1.5°C. Also, growing economic inequality and the need for reforms to a perceived unfair international financial system underscore the urgency of changing the global financial architecture. Despite the political challenges, the summit embodies a push towards stronger multipolarism, with key players such as Sergei Lavrov, Xi Jinping, Recep Tayyip Erdoğan, etc., advocating for international cooperation. The political transition in the United States, with the imminent departure of Joe Biden and the possible return of Donald Trump to the White House, adds uncertainty, potentially impacting global cooperation and sustainability efforts. This nineteenth summit of the Group of Twenty powers (G20) is crucial to encouraging collective action in the face of complex challenges related to security, climate, the economy and international cooperation.Russia’s engagement in the world chessboardRussia’s participation in this Rio de Janeiro Summit is of major strategic importance. Led by Mr. Sergey Lavrov, Minister of Foreign Affairs of the Russian Federation, and mandated by the President of the Russian Federation, the Russian delegation demonstrates the country’s strong commitment to global discussions. Russia aims to take a leading position in addressing global challenges such as combating inequality, hunger and poverty, and reforming international institutions. Mr. Sergey Lavrov’s interventions at the plenary sessions are essential, while his bilateral talks with other world leaders could lead to decisive agreements, strengthening international relations. Capitalizing on its long history of global engagement, Russia is ideally placed to influence these crucial debates for the future of the planet.Positive initiatives of the BRICS Alliance in global dynamicsThe BRICS, originally composed of Brazil, Russia, India, China and South Africa – and expanded over time to BRICS+ – represent an undeniable emerging force in global economic cooperation, as demonstrated by their landmark initiatives at the Rio Summit yesterday. By establishing the New Development Bank, these nations are demonstrating their commitment to financing joint infrastructure projects, strengthening their synergy and displaying a clear desire for de-dollarization. The significant progress made in social security also demonstrates their determination to improve social protection on a large scale. Looking ahead, the BRICS countries are committed to driving reform of international financial institutions, placing their economic weight at the heart of global decisions, while working towards sustainable development and the fight against climate change. Speeches by representatives such as Mr. Sergei Lavrov at the summit captured attention, underscoring the BRICS’ determination to impact global governance and promote a more equitable and sustainable economic future.The impact of the summit on global governanceAs mentioned above, the G20 Summit in Rio de Janeiro, Brazil, represents a crucial opportunity to transform global governance and have a lasting impact on the future of the planet and international relations. Since yesterday, this strategic meeting has been addressing major issues such as the reform of international institutions, requested in particular by the member countries of the BRICS Alliance, the proactive fight against climate change to reduce greenhouse gas emissions, and international security requiring enhanced cooperation in the face of current geopolitical tensions. Through decisive decisions, the summit could establish a new multipolar world order and decide on the choice between cooperation and global confrontation. The challenge lies in reconciling national and global interests, strengthening trust between international partners, and finding innovative solutions to address the complex challenges of our era. The G20 Summit in Rio thus offers a unique platform for leaders to demonstrate their leadership and vision, thereby shaping a multipolar and sustainable future for future generations.It can be said that the 2024 edition of the G20 Summit in Rio de Janeiro marks a turning point where world leaders are called upon to choose: cooperation or confrontation, progress or stagnation. The future of the planet is now in their hands. Today’s decisions, contained in the Summit Declaration, will shape the world of tomorrow. History will judge.

Energy & Economics
Middle East Conflict. Conceptual photo

How might a wider Middle East conflict affect the global economy?

by Ahmet Kaya

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.

Defense & Security
A line of modern russian military naval battleships warships in the row, northern fleet and baltic sea fleet in the open sea

Shifting Tides: NATO's Evolving Strategy and the Rising Security Challenges in the Baltic Sea

by Pablo Villar Bolaños

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Few maritime security environments across the globe have consistently shown a degree of tension and volatility akin to the Baltic Sea scenario. Having established the deterrence of Russia's ambitions as an emphasis of European defence, the increase in military investments within the region, as well as the political realignments across the Baltic shore after the invasion of Ukraine show that the security assessment has radically changed in the last few months. The current deployment of NATO and Russian Federation forces in this region, along with the Alliance's geopolitical developments, provides a valuable perspective for analysing defence planning and assessing present and future vulnerabilities and areas of risk. The Baltic security architecture, and its continuous updates and transitions, justifies an integrative reading into the key aspects of the present security challenges in the area.  A new arena for security in the Baltic  Unbeknownst to many, the security environment along the Baltic is one of the most potentially volatile maritime areas in the world. Recent developments, especially the inclusion of Finland and Sweden into NATO, have resulted in a surge of military and intelligence-gathering activities, as well as grey zone operations by both NATO and Russia across those shores.  A central idea in any present assessment of this location is the significant shift in the last decades on many critical aspects. For one, the political geography has been radically altered. In 1990, Germany and Denmark were the sole NATO members in the whole region. To say the security strategy lacked some alignment would be an understatement. Even after the fall of the Iron Curtain, key security partners such as Germany and Poland were diametrically opposed in their security approach to Russia. The German foreign policy, for years, engaged the Russian political sectors, as well as the society at large by developing close economic and political links. Energy cooperation, namely, became a staple of Berlin’s policies [1]. In stark contrast, Poland adopted a cautious and often adversarial stance toward Russia, influenced by historical conflicts and concerns over regional security. Additionally, aware of the risks of relying on Russian energy, Poland invested in alternative sources, such as the Liquefied Natural Gas (LNG) terminal in Świnoujście and pursued the Baltic Pipe project to import natural gas from Norway via Denmark [2]. Following the overall international consensus, the change of posture vis à vis Russia after 2022 has helped to align the strategies of the European countries on the Baltic, and has given an unprecedented impetus to security cooperation and the strengthening of political and military ties in the region.    Sweden and Finland's decision to abandon their decades-long, semi-neutral stance signifies that not only Germany, but the entire European continent, now acknowledges Russia's aggressive posture in the Baltic region. NATO membership was pursued, and the EU Common Security and Defence Policy began to tilt to other scenarios, such as the Baltic Sea, which may have been overlooked in previous analysis. The shift of the security policy in Europe, as some experts have called, has had a “shift to the East” [3].  Key Aspects and Challenges    Even if other policymakers are catching up only now with the crucial importance of this region for Moscow, the Baltic states are much more familiar with the nature of the Russian ambitions, the realities of hybrid warfare, and the crucial attention paid to the maritime routes by Russia’s economy and military. It holds primordial outlets for oil & gas, as well as consumer goods, offered by the harbours of Primorsk or St. Petersburg; perhaps even more critically, it is also home to the exclave of Kaliningrad, the base of the Russian Baltic Fleet and to its nuclear arsenal [4]. With border tensions with Poland and Lithuania growing every month, the fierce Russian intent of defending the freedom of passage to Kaliningrad is, perhaps, the most overt exemplification of Moscow’s grapple for control of the Baltic.  The geography of the Baltic could be serving Russian interests, as some experts claim. Actions not too dissimilar from a limited show of force, or mere military exercises over “token pieces of territory, such as an island in the Gulf of Finland, or an unpopulated area just across the border from Russia”, could very well be instrumentalized to divide the public opinion on the strategy, or even possibility, of a NATO response to such an act [5]. Grey-zone operations such as these, perhaps reminiscent of the 2014 invasion of Crimea, easily become a chip on the shoulder of international credibility for actors such as the United States, and could rapidly diminish general support for the Western security stance in the Baltic.   The challenge posed by Russia is heterogenous. Many different actions over the last decade have been understood by some as partial preludes to potential invasions. Mischief concerning military exercises and routes of air and sea-borne units, the constant sighting of illegal submarine activities, as well as the employment of “ghost fleet” tankers which could potentially be used as environmental weapons, are only some examples of the aggressive stance of Moscow.   Differences and persisting difficulties   Notwithstanding the challenges of the present security scenario, it must also be said that the positions of NATO in the Baltic are far stronger now than they were a couple of years ago [6]. The new membership of Finland and Sweden, as well as the overarching tactical shift concerning security policy, mean that the Alliance is now able to exert its air superiority, control of sea routes and logistic channels far more gracefully. The Enhanced Forward Presence missions in the Baltic states now face Russian ground forces with wildly different postures, morale and equipment, due to the tensions imposed by the fighting in Ukraine. Capabilities such as anti-submarine resources, mine countermeasures or amphibious operational groups have a larger and more advanced presence now in the Baltic; it is also expected that the Port of Gothenburg will serve as the main shipping point for NATO forces in the region.    Due to the reality of hybrid warfare in the region, along with the vulnerabilities of the Baltic Sea nations (cyberattacks, sabotage of subsea infrastructure, attacking gas lines and communication cables), the hostility of Russia will plausibly remain a principal concern of NATO in the near future. Moscow’s aggression towards  the West’s sovereignty, security and economic interests, are expected to continue, if only through the “less overt” operational examples such as disinformation operations or backing fringe political groups, just to name a couple [7].   The inherent geographical and energetic disadvantages currently faced by Russia do not mean that the Baltic Sea is under total NATO control. The diversity of capabilities and aggressive tactics available to Moscow mean that they could very well target naval or terrestrial assets of the Alliance with little extra preparation. The submarine and minelaying assets of Russia, for example, continue to be a long-established concern, and it may be hard to deter, even if effective and innovative technological countermeasures come to be deployed in the Baltic.  The strategic choke points of the region, under the environmental or geographical considerations of relevance, will not be easily evaded by any side. The commencement of the operational use of unmanned surface or undersea vessels will not limit the capacity for disruption of NATO or Russia.  Conclusion  The rise in investments and political interest for Baltic security is a welcome situation; nevertheless, it will need to be continued for years to come. The challenges faced by the Ukrainian forces in terms of international military or financial aid remain a stark reminder of the rapid disintegration of the toughest geopolitical conflicts’ weight in worldwide newsrooms and political cabinets. The key for the defence of peace in the Baltic seems to lie on the stalwart buttressing of NATO for the freedom of maritime traffic. This, in turn, both proves the validity of the security measures and resources in the area, as well as sending a clear message to the other nations that the supply lines, in both military and commercial terms, will continue to be supported. The real concerns for the security of the maritime routes into the easternmost parts of the Sea mean that the dependence on the Alliance’s militaries’ sea-going and aerial capabilities remains. Because of that, further efforts to coordinate, expand and train the different nations’ forces in the region continue to be called for. And not only that, as the antics of maskirovka (a Russian military term that refers to measures taken to mislead adversaries about military capabilities, intentions, and operations) to which the Russian Military Staff have continued to rely on time and time again have shown, the fear for limited, short-range, grey-zone scenario attacks remain another tangible possibility. Such an operation, an incredibly delicate venue for further international tensions and even military action, would clearly exploit the capabilities of amphibious Russian troops, well suited to the “island-hopping”, small squad black operations in a well-charted territory for them.   The stronger NATO, as seen today, will necessarily need to elicit further enhancements in the security policy for the Baltic Sea. Defence mechanisms, such as the development of territorial forces, the strengthening of the will to fight across the Baltic nations, or the continual efforts to guarantee the forces’ superiority in the aerial and naval domain, will need to continue their trajectory. In the end, only time will tell if the Baltic will finally come to be an example in the face of growing Russian aggression elsewhere.   References  [1] Westgaard, K. “The Baltic Sea Region: A Laboratory for Overcoming European Security Challenges”. Carnegie Endowment Research. 2023. Available at: https://carnegieendowment.org/research/2023/12/the-baltic-sea-region-a-laboratory-for-overcoming-european-security-challenges?lang=en   [2] European Commission . “Inforegio - New Liquefied Natural Gas Terminal Improves Energy Supply and Security in Poland.” Europa.eu, 2021, ec.europa.eu/regional_policy/en/projects/poland/new-liquefied-natural-gas-terminal-improves-energy-supply-and-security-in-poland.  [3] Erlanger, S. “Ukraine War Accelerates Shift of Power in Europe to the East”. The New York Times. January 26th, 2023. Available at: https://www.nytimes.com/2023/01/26/world/europe/eu-nato-power-ukraine-war.html   [4] Messmer, M. “The Baltic Sea is far from a ‘NATO lake’ – the alliance must strengthen its defences”. Chatham House Comments. 2024. Available at: https://www.chathamhouse.org/2024/04/baltic-sea-far-nato-lake-alliance-must-strengthen-its-defences   [5] Lucas, E. et al. “Sea Change: Nordic-Baltic Security in a New Era”. CEPA Comprehensive Reports. 2024. Available at: https://cepa.org/comprehensive-reports/sea-change-nordic-baltic-security-in-a-new-era/   [6] Wills, S. “BALTOPS 24 in a Contested NATO Lake”. Center for Maritime Strategy. 2024. Available at: https://centerformaritimestrategy.org/publications/baltops-24-in-a-contested-nato-lake/   [7] Savitz, S. & Winston, I. “A Brief Naval Overview of the Baltic Sea Region”. RAND Corporation Expert Insights. June 2024. Available at: https://www.rand.org/pubs/perspectives/PEA2111-1.html#document-details 

Diplomacy
President Volodymyr Zelenskyy congratulated the Defenders of Ukraine on 1 October 2024 - 10

World Update: Ukraine faces prospect of defeat – but the west must ensure a just peace

by Jonathan Este

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском There’s a degree of irony that countries attending the 2024 Brics summit this week voted to adopt the Kazan declaration (named for the capital city of the autonomous republic of Tatarstan in Russia, where the summit is being held). The declaration’s first clause emphasises that “all states should act consistently with the Purposes and Principles of the UN Charter in their entirety”. There’s also a certain amount of chutzpah on the part of conference chair, Vladimir Putin, whose ongoing invasion of Ukraine is so egregiously in breach of that charter.  Article one stresses that the primary purpose of the UN is to “maintain international peace and security”. Article two rules that: “All Members shall settle their international disputes by peaceful means”. If that’s not clear enough, it goes on to further insist that: “All Members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state.”  Still, its a funny old world in which the UN secretary general, António Guterres, pitches up at a summit whose host is wanted on an arrest warrant issued by the International Criminal Court on charges relating to the alleged illegal deportation of Ukrainian children to Russia. In a country whose troops are currently fighting in Ukraine in direct contravention of the UN’s charter.  To add a further layer of irony, October 24 is the 79th anniversary of the entry into force of the UN Charter in 1945.  Guterres called on Putin to agree a peace deal “in line with the UN Charter, international law and UN General Assembly resolutions”. The Russian leader is perhaps more likely to listen to a deal proposed by the Chinese president, Xi Jinping. He said: “We must uphold the three key principles: no expansion of the battlefields, no escalation of hostilities, and no fanning flames and strive for swift de-escalation of the situation.”  The UN chief’s idea of a just peace would call for Russia to give up its illegal occupation of Crimea and eastern Ukraine. Xi’s proposal appears to call for a deal based on the status quo – virtually the opposite, in other words.  This is pretty much all Ukraine can hope for, as far as the University of Portsmouth’s Frank Ledwidge is concerned. Ledwidge, who has written regularly for The Conversation since Putin launched his invasion in February 2022 and is well plugged into defence and intelligence networks in Nato as well as in Ukraine itself, believes that Ukraine cannot defeat Russia – at least as things stand.  Ledwidge says Ukraine’s western allies are partly to blame for the maximalist aims of the country’s president Volodymyr Zelensky. Western rhetoric has not properly been matched by sufficient weapons or the permission to use them as effectively as the situation warrants. Now is the time for realism, he writes:  A starting point could be accepting that Crimea, Donetsk and Luhansk are lost … Then we need to start planning seriously for a post-war Ukraine that will need the west’s suppport more than ever.  One of the key factors that Ledwidge stresses is that just one of Russia’s allies, North Korea, has supplied twice as many artillery shells this year as the whole of Europe. Now North Korean troops are apparently also about to join their Russian comrades on the battlefield. This, writes Ra Mason – a Korea specialist at the University of East Anglia – will help ease the pressure on Putin to bring forward his mobilisation plans.    It’s a diplomatic coup for Putin, Mason believes – it’s a “clear show of opposition towards the Washington-led global order”, which “deals a further blow to the myth that the Russian Federation is isolated, as an international pariah, in a world led by western powers.”  But a military coup de grace against Ukraine? Probably not. The jury is out on how effective North Korea’s “poorly equipped, unmotivated and undernourished” troops will be against Ukraine’s highly motivated defenders. It will also be interesting to see where and how they are deployed. If sent to the frontlines in Kursk, they’ll be helping an ally in its struggle against an incursion by Ukrainian forces. If deployed inside Ukraine, they’ll join Russia in breach of international law. Mason concludes:  If sent into new theatres of war against state-of-the-art Nato-supplied weaponry, it could effectively mean waves of ill-prepared cannon fodder being thrown into the meat grinder of Donbas’ trenches.  Incidentally, the term “meat grinder” has been much bandied about of late. It follows reports from US intellegence recently that, while Russian forces have been making rapid advances and gaining a significant amount of ground in recent weeks, they are doing so at considerable cost in terms of dead and wounded. September was a particularly bloody month, with reports of Russian losses of more than 1,000 men a day, killed or wounded.  But Russian military strategists are well versed in such pyrrhic victories, writes historian Becky Alexis-Martin, who points to equally savage losses in Russia’s defence against Napoleon and in the first and second world wars. Stalin, in particular, was able to defeat the Nazi war machine by, inter alia, throwing millions of troops at their enemies (and incurring terrible casualties). But it’s not a strategy that guarantees success. And terrible psychological effects are beginning to manifest themselves in veterans returning from Ukraine with severe and often violent post-traumatic stress disorder.  The diplomatic front  As if things weren’t bad enough for Zelensky on the battlefield, the Ukrainian president was dealt a serious blow earlier this month when the US president, Joe Biden, was forced by extreme weather events, including a hurricane hitting the state of Florida, to cancel the planned meeting of the heads of government of up to 50 of Ukraine’s western allies in Germany. The “Ramstein Group”, so-called after the German air base at which they meet, was scheduled to meet in the second week of October to consider Zelensky’s “victory plan”. Stefan Wolff, an international security expert at the University of Birmingham writes that the Ukrainian president was hoping to get some degree of commitment for a path to Nato membership for Ukraine as well as permission to use western-supplied long-range missiles against targets deep inside Russia.  Neither of these seem likely to happen in the short term, says Wolff. Like Ledwidge, Wolff thinks Ukraine is doomed to defeat unless its allies double down on their aid – and fast. And like Ledwidge, Wolff sees little indication of that happening any time soon.  When it comes to continuing US support for Ukraine’s war effort, all eyes are now firmly fixed on November 5. The outcome of the presidential election will be seriously consequential for Ukraine’s future. Both candidates have made their positions clear and there is considerable difference between the two positions.  Donald Trump has said any number of times that had he not lost that “rigged and stolen” election to Biden in 2020, Putin would never have invaded Ukraine in the first place. Still, he says, if he wins this one, he’ll bring the war to a very rapid conclusion. But it remains to be seen, given Trump’s oft-stated admiration for Putin, whether the conclusion will be palatable to Kyiv – or to Nato in general.  Trump’s opponent, Kamala Harris, said the former president’s proposals are not “proposals for peace, they’re proposals for surrender”. As vice-president during the Biden administration, she flew to Europe not long after the invasion in February 2022 to help shore up support for Kyiv. Harris has also regularly restated her intention to continue to back Ukraine against Russia. In the only debate of the campaign she said that Ukraine was not Putin’s final stop and that he has “his eyes on the rest of Europe, starting with Poland”.  Poland, incidentally, is an interesting case in point. While it is Ukraine’s firmest ally and it leadership is four-square behind Kyiv, the people are curiously divided on the country’s support for Ukraine. You can read more about that here.  One imagines that Zelensky is as transfixed as anyone else on the 2024 US presidential election campaign as it heads into its final ten days. All we can tell you is that the polls are still very, very close. Well within most pollsters’ margin for error, in fact. A poll of polls, which combines polls from different agencies, published on the website FiveThirtyEight on October 22 shows that Harris leads Trump by 48.1% to 46.3% in the national popular vote. But the accepted popular wisdom is that the complex electoral college system used in the US may well favour Trump’s candidacy.  We’ll be providing daily updates on the US presidential race and full coverage of election day on November 5 and its aftermath.  Update: this article originally said that Vladimir Putin launched Russia invasion of Ukraine in February 2024. This has now been corrected to February 2022. Apologies for the error. 

Diplomacy
Donald Trump win in US president elections 2024. Washington DC, United Sates Of America - 2024 November 6

What Trump’s victory means for Ukraine, the Middle East, China and the rest of the world

by Stefan Wolff

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Donald Trump’s return to the White House in January 2025, combined with a Republican-led US Senate, was widely feared among international allies and will be cheered by some of America’s foes. While the former put on a brave face, the latter are finding it hard to hide their glee.  On the war in Ukraine, Trump is likely to try to force Kyiv and Moscow into at least a ceasefire along the current front lines. This could possibly involve a permanent settlement that would acknowledge Russia’s territorial gains, including the annexation of Crimea in 2014 and the territories occupied since the full-scale invasion of Ukraine in February 2022.  It is also likely that Trump would accept demands by the Russian president, Vladimir Putin, to prevent a future Ukrainian Nato membership. Given Trump’s well-known animosity to Nato, this would also be an important pressure on Kyiv’s European allies. Trump could, once again, threaten to abandon the alliance in order to get Europeans to sign up to a deal with Putin over Ukraine.  When it comes to the Middle East, Trump has been a staunch supporter of Israel and Saudi Arabia in the past. He is likely to double down on this, including by taking an even tougher line on Iran. This aligns well with Israeli prime minister Benjamin Netanyahu’s current priorities.  Netanyahu seems determined to destroy Iran’s proxies Hamas, Hezbollah and the Houthis in Yemen and severely degrade Iranian capabilities. By dismissing his defence minister, Yoav Gallant, a critic of his conduct of the offensive in Gaza, Netanyahu has laid the ground for a continuation of the conflict there.  It also prepares for a widening of the offensive in Lebanon and a potentially devastating strike against Iran in response to any further Iranian attack on Israel.  Trump’s election will embolden Netanyahu to act. And this in turn would also strengthen Trump’s position towards Putin, who has come to depend on Iranian support for his war in Ukraine. Trump could offer to restrain Netanyahu in the future as a bargaining chip with Putin in his gamble to secure a deal on Ukraine.  Pivot to China  While Ukraine and the Middle East are two areas in which change looms, relations with China will most likely be characterised more by continuity than by change. With Chinese relations being perhaps the key strategic foreign policy challenge for the US, the Biden administration continued many of the policies Trump adopted in his first term – and Trump is likely to double down on them in a second term.  A Trump White House is likely to increase import tariffs, and he has talked a great deal about using them to target China. But Trump is also just as likely to be open to pragmatic, transactional deals with Chinese president Xi Jinping. Just like in relations with his European allies in Nato, a serious question mark hangs over Trump’s commitment to the defence of Taiwan and other treaty allies in Asia, including the Philippines, South Korea, and potentially Japan. Trump is at best lukewarm on US security guarantees.  But as his on-and-off relationship with North Korea in his first term demonstrated, Trump is, at times, willing to push the envelope dangerously close to war. This happened in 2017 in response to a North Korean test of intercontinental ballistic missiles.  The unpredictability of the regime in Pyongyang makes another close brush of this kind as likely as Trump’s unpredictability makes it conceivable that he would accept a nuclear-armed North Korea as part of a broader deal with Russia, which has developed increasingly close relations with Kim Jong-un’s regime.  Doing so would give Trump additional leverage over China, which has been worried over growing ties between Russia and North Korea.  Preparing for a Trump White House  Friends and foes alike are going to use the remaining months before Trump returns to the White House to try to improve their positions and get things done that would be more difficult to do once he is in office.  An expectation of a Trump push for an end to the wars in Ukraine and the Middle East is likely to lead to an intensification of the fighting there to create what the different parties think might be a more acceptable status quo for them. This does not bode well for the humanitarian crises already brewing in both regions.  Increasing tensions in and around the Korean peninsula are also conceivable. Pyongyang is likely to want to boost its credentials with yet more missile – and potentially nuclear – tests.  A ratcheting-up of the fighting in Europe and the Middle East and of tensions in Asia is also likely to strain relations between the US and its allies in all three regions. In Europe, the fear is that Trump may make deals with Russia over the head of its EU and Nato allies and threaten them with abandonment.  This would undermine the longevity of any Ukrainian (or broader European) deal with Moscow. The relatively dismal state of European defence capabilities and the diminishing credibility of the US nuclear umbrella would not but help to encourage Putin to push his imperial ambitions further once he has secured a deal with Trump.  In the Middle East, Netanyahu would be completely unrestrained. And yet while some Arab regimes might cheer Israel striking Iran and Iranian proxies, they will worry about backlash over the plight of Palestinians. Without resolving this perennial issue, stability in the region, let alone peace, will be all but impossible.  In Asia, the challenges are different. Here the problem is less US withdrawal and more an unpredictable and potentially unmanageable escalation. Under Trump, it is much more likely that the US and China will find it hard to escape the so-called Thucydides trap – the inevitability of war between a dominant but declining power and its rising challenger.  This then raises the question of whether US alliances in the region are safe in the long term or whether some of its partners, like Indonesia or India, will consider realigning themselves with China.  At best, all of this spells greater uncertainty and instability – not only after Trump’s inauguration but also in the months until then.  At worst, it will prove the undoing of Trump’s self-proclaimed infallibility. But by the time he and his team come to realise that geopolitics is a more complicated affair than real estate, they may have ushered in the very chaos that they have accused Biden and Harris of. 

Energy & Economics
The concept of a fragile, vulnerable, unstable world order.

World Order Transformation: Economy, Ideology, Technology

by Aleksandr Dynkin

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском The concept of a multipolar (or polycentric) world order [1] was first coined by Academician Yevgeny Primakov in 1996 [Primakov 1996]. Like everything new, it was not immediately accepted, but ultimately became a significant contribution to both domestic and world theory of international relations, offering a compelling alternative to Western approaches, particularly the one proposed in Samuel Huntington’s The Clash of Civilizations [Huntington 1993]. It informed the idea of trilateral cooperation between Russia, China and India, implemented by Primakov and later embodied in the BRICS group. By now, the idea of multipolarity has been recognized in global political science, has entered the conceptual framework and the language of international diplomacy and is used in Russia’s doctrinal documents. In 2015, we proposed the scenario of a new bipolarity [2] as one of the possible trajectories for global development. Today, many scholars, both Chinese and American, [3] suggest that China-centric and U.S.-centric poles are emerging. This article discusses the “multipolarity — new bipolarity” dichotomy. Long Global Macro-Transformations World history shows that a new world order typically emerges after the end of a major war (see Table 1). Table 1. International system (world order)    Source: systematized by A.A. Dynkin, IMEMO RAS Europe was usually the “kitchen” where the world order was cooked. Take the last 200 years. After the end of the Napoleonic Wars, the Concert of Europe emerged and lasted for 100 years. The century-long stability of that system could be explained by the homogeneity of the political organization of its guarantor states. All members of the Concert of Europe were monarchies. World War I produced the Versailles system, which lasted only 20 years. One of the reasons for its short life was the exclusion of the Soviet Union, Germany and China. The Yalta-Potsdam system was formed by the victors in World War II. Its guarantors were the “Big Three” powers—the Soviet Union, the U.S. and the UK—along with France and China. The three defeated powers—Germany, Japan and Italy—were discriminated and disenfranchised. This system existed for 45 years and was initially thought to be polycentric, but quickly degenerated into a bipolar order, and the Cold War commenced. With the collapse of the Soviet Union and dissolution of the Warsaw Pact, the system became unipolar, dominated by the West, primarily the U.S. It disregarded Russia’s interests and, from 2018 onward, began discriminating against China as well. February 2022 can be considered the formal date of the unipolar world’s demise. However, today’s predictions suggest it will take at least 10 years before the new post-unipolar system becomes stable. The economic center of gravity is a spatial indicator of the economic strength of states, borrowed from physics. To put it simply, this is a geographical point of equilibrium for GDP, trade and investment flows of different countries. Figure 1 shows a map of how the world’s economic center of gravity shifted for over a thousand years. It appeared in Central Asia, on the territory of the Ghaznavid Empire (modern-day Afghanistan). The center then migrated northwest, while the devastation in post-war Europe forcefully pushed it (within just 10 years) to the West, toward Greenland. Then it turned east again. The sharpest shift, to the southeast, occurred in 2000–2010 and is associated with the rise of China. The economic center of gravity has almost returned to the same meridian but remained more than 2,000 km north of the starting point, which indicates a return to the millennial balance of economic power between the West and the East. Figure 1. “Journey” of the three-dimensional economic center of gravity    Source: Dobbs R., Remes J., Manyika J. et al. Urban world: Cities and the rise of the consuming class. McKinsey Global Institute, 2012. https://www.mckinsey.com/featured-insights/urbanization/urban-world-cities-and-the-rise-of-the-consuming-class. Statistic calculations by IMEMO RAS for 60 years of peace (1960–2021) indicate the stability of the center’s latitudinal (horizontal) position. This suggests a relatively consistent proportion of GDP production by the countries in the Global South and Global North, under the economic leadership of the Northern Hemisphere. The shift to the East has also been clearly confirmed. According to our projections up to 2050, the future position of the globe’s center of economic activity will lie on the border of India and China. This method of analysis reveals a high level of inertia in time and geographic monotonicity of changes in the balance of economic power of states. It also shows that wars can drastically disrupt the natural course of events. The center of gravity method can also be applied to the arsenals of strategic and tactical weapons (see Figure 2). For example, during the Cuban Missile Crisis, the U.S. had a huge advantage, but then there was a clear pivot to the northeast—the creation of superior nuclear capabilities in the Soviet Union. With the onset of arms control in 1993, a reversing loop emerged, heading southwest. This was followed by a curve to the east with an implied southward inclination, which reflects the growing nuclear stockpiles of India, Pakistan, North Korea, and the rapid buildup of strategic and tactical nuclear forces in China. The military center of gravity follows its economic peer with a lag of 20 years, reflecting the geopolitical ambitions of Asian powers. These interpretations also clearly demonstrate the end of unipolarity and point to the rise of multipolarity. Figure 2. Movement of the nuclear center of gravity Source: calculations by K.V. Bogdanov, Center for International Security at IMEMO RAS, based on the data from the Bulletin of the Atomic Scientists. https://thebulletin.org/nuclear-notebook/. Technology. Politicians tend to be techno-optimists. Barack Obama predicted that 3D printing would transform the entire world. [4] George W. Bush promised that decoding the human genome would revolutionize medicine. [5] All false starts. Economists traditionally measure the rate of technological progress (TP) using the total factor productivity (TFP) index. To put it simply, this is the part of economic growth driven not by an increase in inputs—labor and capital—but rather by improvements in the efficiency of their use. Technological progress means not only the generation of new scientific and technological ideas but also their mass replication. Without economic validation of the impact of wide dissemination of innovations, scientific or technological achievements remain in history as brilliant breakthroughs with only local economic effects, giving rise to journalistic generalizations at best, such as the “Fourth Industrial Revolution” or “the sixth techno-economic paradigm.” Statistical metrics rely on data of technologically advanced nations, while catching-up countries have room for growth by approaching the TP frontier, i.e. adopting and improving existing ideas and technologies. Technological leaders spend more resources pushing the TP frontier, while those catching up can accelerate at lower costs, effectively staying in the “wind shadow” of the leaders. The TFP index growth rate has been steadily declining in developed countries for many years, but this has been especially conspicuous since the mid-2000s. Today, the growth is below 1.5% and even 1% per year (see Figure 3). Figure 3. Average annual growth of total factor productivity, % Source: calculations by IMEMO RAS based on the data from the International Productivity Monitor. No. 38, Spring 2020. http://www.csls.ca/ipm/ipm38.asp#:~:text=Martin%20Neil%20Baily%2C%20Barry%20P.%20Bosworth%20and %20Siddhi%20Doshi%0ALessons%20from%20Productivity%20Comparisons%20 of%20Germany%2C%20Japan%2C%20and%20the%20United%20States%C2%A0; Innovative China: New Drivers of Growth. World Bank Group, and the Development Research Center of the State Council, P.R. China. 2019. Washington, DC: World Bank. https://doi.org/10.1596/978-1-4648-1335-1. License: Creative Commons Attribution CC BY 3.0. https://documents1.worldbank.org/curated/en/833871568732137448/pdf/Innovative-China-New-Drivers-of-Growth.pdf. A similar pattern of dramatic TFP deceleration was observed in China. The consensus interpretation of these figures is that the main effects of the Third Industrial (i.e., computer) Revolution have largely been exhausted, and no new general-purpose breakthrough technologies (such as electricity, internal combustion engines, or computers and mobile communications) have emerged. However, it seems that the intellectualization of technologies and approaches to project management, as well as informatization, simply do not fit into the traditional factor-based view of progress that was established many years ago. The scale of knowledge is growing, new professions are springing up, the role of emotional intelligence and cognitive functions is increasing. All this dramatically changes the structure of capital assets (see Figure 4). From the beginning of the 21st century and until the 2008 crisis (2000–2007), equipment accounted for over 50% of the increase in capital’s contribution (investment) to output growth, whereas in 2019–2021, almost 63% of this increase was attributable to intellectual property assets. This result of our research suggests a refocusing of technological progress from final products to intellectual technologies, enabling the production of a range of innovative goods and services tailored to highly segmented demand. Figure 4. Transformation of the capital structure in the U.S. private sector Source: Total Factor Productivity for Major Industries—2022. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/archives/prod3_03232023.htm. There are now hopes that the pace of technological progress may accelerate due to the development of artificial intelligence (AI) technologies, which will spark a new industrial revolution. An indirect sign of its imminence is the sharp rise in the rate of business births and deaths in the U.S. economy in 2020–2022. [6] The spillover of labor from companies that are losing efficiency to corporations with increasing market shares has also accelerated. These are some sort of leading indicators that suggest the structural results of TP are approaching. Similar developments occurred 30 years ago, on the cusp of the computer revolution. The above-mentioned intellectualization of fi ed capital, where trusted AI will be applied, adds credibility to these hopes. In addition, AI is one of the critical areas of technological sovereignty. It is no coincidence that Vladimir Putin described AI as “crosscutting, universal and essentially revolutionary technology.” [7] The Russian President announced the preparation of a new edition of the National AI Development Strategy and a respective decree. I believe that this prioritization is justified. China’s experience in the semiconductor race is a good model to be emulated (see Figure 5). Its distinguishing feature is the focus on companies as drivers of development, with massive, cumulatively growing state support. Figure 5. Focusing on China’s priorities (nanometer chip race) Source: Systematized by I.V. Danilin, IMEMO RAS The U.S. strategy of curbing technological development of Russia (in all areas) and China (in semiconductors, artificial intelligence and quantum computing and electric cars) leads to stiff competition in high technology, which is fraught with fragmentation, diversification of technical standards, legal norms and rules. And this is another argument in favor of a new bipolarity. Demographic processes. According to UN projections, by the middle of the 21st century, Russia will drop from its current 9th place to 14th in terms of population, while remaining the most populous country in Europe. [8] A more significant problem for Russia is population aging. The proportion of elderly people, who are typically not part of the labor force, is increasing. Japan, Spain and Italy are leading this process today, but neither China nor India will be spared. Nigeria appears to be the only major country where population and the share of young people will continue to grow until the end of the 21st century. As of December 2023, one in 10 people worldwide was aged 65 or over, with health spending taking up 10% of global GDP. [9] In this context, the importance of medical technologies cannot be overstated, as they can extend not only people’s life expectancy but also the duration of their healthy and socially active life, thereby easing labor market pressures. Needs always steer technological progress toward overcoming economic growth constraints tied to the scarcest resource in any given historical period. A serious risk associated with the problem of aging is a slowdown in innovation, since it is people under 40—the age group that will shrink throughout the 21st century—who are the primary drivers and consumers of innovation. So far, this risk has been mitigated by the large youth cohorts in China and India. This is why these two nations are experiencing almost exponential growth in patenting, massive reengineering and, consequently, in middle-class numbers. Demographics give India an edge until around 2060, which is already evident in the growth rates of Indian economy. Combined with the influx of hi-tech investments and the contribution of the Indian diaspora, India has good prospects, making its position crucial to the future architecture of the world order, regardless of how it evolves. The U.S. understands this and has been figuratively “clinging” to this nation for the past 20 years. I believe that the Russian Academy of Sciences should significantly bolster scientific and educational ties with India and its dynamically developing neighbors in Southeast Asia—Vietnam, Malaysia and Indonesia. The anticipated tension in the global market of new generations of innovators aggravates inter-country competition for this scarcest resource. I think that the international reputation of the Russian Academy of Sciences is a powerful tool to attract and retain young people and foster their creative motivation. We should reassert this as we celebrate the 300th anniversary of the Academy of Sciences. Ideology. Dirigisme [10], or statism, is the main trend in both economic theory and economic policy of the West. A pivot to a more state-controlled economy began with the disappointing outcomes of the Washington Consensus, which aimed to guide post-socialist countries from planned to market economies. The 2008–2009 financial crisis cemented the trend toward statism, and the COVID-19 pandemic elevated it to unprecedented proportions. In the U.S., Democrats are among the most vocal proponents of greater government intervention in all spheres of life, but they are not alone. Republicans are also actively advocating industrial policy, repudiation of free trade, as well as strict control over Big Tech, among other measures. The popularity of the so-called cultural Marxism is on the rise. [11] Its origins go back to the critical theory of the Frankfurt School (H. Marcuse, E. Fromm and others). These ideas are moving from the realm of ideological and theoretical confrontations into political activism. For example, the leaders of the BLM movement publicly self-identify as “trained Marxist organizers.” The essence of the strategy inspired by “cultural Marxism” is the rejection of direct political struggle on the barricades, since the proletariat has been “bought off by the bourgeoisie and is no longer capable of anything,” and the ranks of the classic proletariat are rapidly thinning. The direction of social change is set, on the one hand, by intellectuals with personal power and, on the other hand, by marginalized groups seeking to assert their “right to identity.” The strategy of activists who form this paradoxical combination of intellectuals and marginalized individuals is the creeping takeover of the main institutions of power and society by planting “correct” ideas in the mass consciousness. In the U.S., the fighters for political correctness have already hijaked the school system, university campuses, major media outlets and the entertainment industry (Hollywood). Civil servants are forced to take courses in critical race theory, which postulates not only the socially constructed nature of race and the recognition of systemic racism [Delgado, Stefancic 2017: 45] but also a sense of guilt in one part of society toward another. This, in turn, allegedly requires addressing moral and material injustices by organizing public life in line with such an ideology. Similar concepts are being pushed into public discourse as well. It is already dominated by the ideas of radical feminism, cancel culture, anti-systemic racism and postcolonialism, the fight against global warming and the green agenda, which claims to be universal and non-negotiable. As a result, the energy transition is motivated more by ideology than by the comparative market efficiency of energy supplies. Different environmental-political discourses—eco-nationalism, eco-imperialism and green growth—are competing in shaping the green agenda, eroding the attractiveness of the dominant sustainable development model. Another universal weapon in fighting any dissent is political correctness. Large corporations, government agencies and universities are developing and implementing strategies to promote DEI (Diversity, Equity, and Inclusion) principles, which are nothing but tools of ideological control over employees. Universities are required to fi reports on their compliance with such principles and efforts to promote them, which causes mounting criticism as they violate academic freedom and cultivate ideological conformity. [12] However, ideological censorship has already taken deep root in various spheres of public life, and questioning its compatibility with democracy is deemed politically incorrect. Revising cultural norms has become a cultural norm in and of itself, deepening divisions in modern polarized societies, primarily in the U.S., but also in Old Europe [Semenenko 2023: 27-35]. Another curious phenomenon is associated with the new agenda. In the 20th century, the left championed progress, advocating faster economic growth, rapid technological advancement and better social welfare. Now the ideas of zero or even negative growth and post-growth are popular among them. [Buchs, Koch 2017: 218]. Such ideological narratives exacerbate the question of how to treat the poor countries of the South, but also their own poor: the welfare state for all no longer fit into this agenda. On the contrary, it becomes a selective tool of backing the “right” minorities. This creates a breeding ground for stronger positions of populist forces. Such contradictory internal political processes distort public consciousness as well as domestic and foreign policy decision-making. The new elites are extremely ideologized. The U.S. political system is becoming less effective at regulating the economy. Two rating agencies, Standard & Poor’s and Fitch Ratings, have downgraded the U.S. credit rating to AA+ from the top mark of AAA. In November 2023, Moody’s lowered its outlook on the U.S. credit rating to “negative” from “stable.” All three agencies agree on the main reason for the downgrade: the growing dysfunctionality of the political system. In foreign policy, the U.S. has withdrawn from 16 major international treaties and agreements on arms control, global trade, climate and the Arctic since the beginning of the century [Dynkin 2020]. In other words, the unipolar world order with its unbridled appetite for expansion has brought the world into a zone of extra-high risks. And the paradigms that are dominant in the West have proven incompatible with either Russian or Chinese value-oriented political projects. Therefore, the ideological sphere will inevitably see increased confrontation, marking another step toward bipolarity. IMEMO RAS researchers have repeatedly warned about the West’s miscalculated strategic hopes: 1) that Russia would face an economic catastrophe because of an unprecedented sanctions war in modern history; 2) that the unipolar world order would remain unchallenged; 3) that a global blockade of Russia’s export-oriented economy would be feasible. And we were not the only ones who made these warnings. In response, we only heard propagandistic clichés like “a gas station masquerading as a country,” “a regional power” and “Russia is isolated with its economy in tatters”. This kind of “expertise” led the Washington establishment to believe that Russia is a “declining power” whose strategic interests could be safely neglected. This “strategic lunacy” is a consequence of a universalist mindset—a product of the West’s political experience and culture, which tends to elevate Anglo-Saxon and European historical tradition to absolutes—and of a failure to understand the shifts in the balance of power in the 21st century. Today, Russia is the world’s fourth-largest economy by purchasing power parity (PPP), while the top fi e global economic powers include three BRICS nations and none from the blooming “garden” of Josep Borrell, the EU foreign policy chief who has recently been fired. Now a new narrative has been launched into the propaganda orbit: “Russia is about to attack Eastern Europe.” The logical gap between the image of a declining power and that of an “aggressive bear” is conveniently ignored. This primitive, one-dimensional perception of complex non-linear processes can only lead to disappointment—just as it did when the West lulled itself into believing that Chinese reforms would eventually lead to political pluralism. As a result, the West has an inexhaustible stream of surprises. It appears that their experts are increasingly out of touch with Russian (and any other non-Western) realities. Figuratively speaking, they are staring into a distorting rearview mirror constructed by their own rhetoric and propaganda. But the main real surprise was the fantastic resilience of the Russian economy. I dare say that no other economy in the world, not even China’s, could withstand such aggressive pressure. The high resistance of the Russian economy to external shocks can be explained by three fundamental reasons. First, it is the result of difficult, sometimes agonizing institutional and structural reforms. These efforts have ultimately produced a self-sufficient, adaptive and highly diversified market economy. Second, the crisis of 2022 was the fifth (!) in the history of post-Soviet Russia. The government, federal regulators and the Bank of Russia have accumulated hard-earned professional experience in crisis management and counter-cyclical strategies. The same can be said about business. Our economic entities have demonstrated time and again that there are always more effective solutions than there are problems. Finally, the West miscalculated its ability to isolate our economy. The dual containment of Russia and China, in fact, only strengthens ties between the BRICS member states. Transformations of the 2020s. The first half of the 2020s has fi y buried what was once known as “European security.” It is impossible to glue this “broken cup” back together without Russia. The unwillingness of the Ukrainian side and the West to stop the armed conflict at its very beginning, the dangerous escalation, NATO’s constant violation of its own “red lines” and the accession of Sweden and Finland to the North Atlantic Alliance are all symptoms of the European security system transforming into a transatlantic one. Meanwhile, the Eurasian security system is taking shape. The outcomes of Russian President Vladimir Putin’s visit to China hint that the “political East” is starting to form, if not as an alternative to the long-standing “political West,” then at least as an equal partner. Without considering its interests, any debate about “rules-based” global security will be mere fantasy. Indian Prime Minister Narendra Modi’s first visit to Moscow after his recent reelection is in the same vein. Of course, geography cannot be changed, and Russia has been and will remain a European power. However, it is also the geographic center of Eurasia, providing the infrastructure backbone for the Eurasian partnership—from the Northern Sea Route and up to the Trans-Siberian Railway, Baikal–Amur Mainline, Trans-Asian Highway and cross-continental pipelines. The “post-Ukrainian” world seems to be moving toward a new, indivisible Eurasian security architecture, relying on existing institutions: the Union State, CSTO, EAEU, CIS, BRICS, SCO and ASEAN. Minsk has put forward an initiative to develop a Eurasian Charter for Diversity and Multipolarity—a strategic vision for a new system of international relations to replace the “rules-based” world order. An important event of 2024 in this context is the expansion of the BRICS club (see Figure 6). Its combined economic power could potentially reach $67 trillion, surpassing the total GDP of the G7 countries. Figure 6. Economic potential of BRICS countries Source: calculations by A.A. Dynkin, IMEMO RAS, based on the data from the IMF, Food and Agriculture Organization, World Steel Association, Energy Transition Institute, Statistical Review of World Energy 2023, International Energy Agency. And there are still 28 more countries on the “waiting list”. In several important markets such as metals, automotive industry, oil and mineral fertilizers, BRICS already matches or exceeds the potential of the G7 nations. Russia, which took over the BRICS rotating presidency in 2024, faces the task of energizing the harmonized economic and technological policies of the members. This approach is the institutional cornerstone of the future polycentric world. What will the coming world order look like? It is difficult to say which of the two trends—bipolarity or polycentrism—will prevail in the end. It is more likely that they will coexist: for example, rigid bipolarity in the Global North and polycentrism in the Global South. Signs of military, economic and technological bipolarity are already visible in the North. Interestingly, New Delhi tends to categorize China as a country of the North [Jaishankar 2020: 240]. This viewpoint has substance, as China is far ahead of other countries of the Global South in terms of GDP per capita ($12,541). For comparison, India’s GDP per capita is $2,612. [13] The decoupling of the U.S. and Chinese economies has not affected trade flows yet, but only technology and investment. In 2023, China saw a reversal of foreign direct investment inflows, with funds previously invested being withdrawn. Negative trends took hold, and the outflow approached negative $1.5 trillion (see Figure 7). Meanwhile, the Asia-Pacific macro-region is gaining greater internal dynamics, unlike Europe or North America. Figure 7. U.S.–China Economic Decoupling Source: UN Comtrade Database. https://comtradeplus.un.org/; State Administration of Foreign Exchange (SAFE) of the People’s Republic of China. https://www.safe.gov.cn/en/. Meanwhile, the trend toward political polycentricity persists. For example, New Delhi and Ankara were initially poles apart on the Palestinian–Israeli conflict. This is also the dawning of post-unipolarity, where the new centers of power are increasingly guided by their own interests in decision-making rather than by any “rules” or advice from Washington, Beijing or Moscow. It would be unrealistic to expect that the future world order will be free of conflict. The world will retain its diversity, with different potentials of countries and their competition. It is crucial that, despite their differences, the interests of larger and smaller nations are respected, and problems are solved through constructive dialogue. Russia was the first to challenge the notorious unipolar world order. Today we can state that most countries in the Global South have responded to this challenge and refused to subscribe to the Western interpretation of the conflict in Ukraine . The future world order is taking shape right before our eyes. I am sure that a multipolar world is preferable for Russia as a developed, self-sufficient and sovereign nation. But this world also requires a new system of global governance, development and strengthening of its institutions, such as BRICS, G20, SCO and EAEU. For instance, the EAEU member states (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan) are faring much better than the five other post-Soviet countries. In 2022, GDP per capita in the countries of the Eurasian Economic Union was 3.5 times higher than the average for the fi e other CIS states that are not part of the EAEU (Azerbaijan, Moldova, Tajikistan, Turkmenistan, Uzbekistan) (see Figure 8). Our strategy in these organizations requires a solid approach and “stereoscopic” vision from socio-economic, scientific, technological and political perspectives. Here, the Russian Academy of Sciences should play a major role as a leader of scientific and expert community. Figure 8. Economic trends of EAEU and CIS countries Source: EEC. https://eec.eaeunion.org/?ysclid=lr7rtdg7np631919243; IMF. https://www.imf.org/; World Bank. https://www.worldbank.org/.  Conclusion In conclusion, there are compelling arguments both for multipolarity and for a new bipolarity. Leading U.S. experts are asking similar questions: “What order will replace the crumbling US-led system is far from certain. Will China push aside the United States as the global hegemon to lead a world according to rules written in Chinese characters? Will the world become bipolar, divided between two more or less rigidly defined blocs led by the United States and China? Will a genuinely multipolar world emerge based on several states or coalitions of more or less equal strength?” [Graham 2023: 272]. These questions are yet to be answered, and definitive conclusions in this case are premature. Given this high uncertainty, one should be prepared for any scenario. The essential prerequisite for such readiness is Russia’s strategic autonomy based on military-strategic parity with the U.S. The fundamental question to which the author has no answer today is: how likely is the emergence of a new world order without a major war? In 2024, presidential or parliamentary elections will take place (or have already taken place) in 50 countries, which account for more than 45% of the world’s GDP and population. Perhaps their results will clarify our vision of the near future. Dynkin A.A. (2024). World order transformation: economy, ideology, technology. Polis. Political Studies, 5, 8-23. https://doi.org/10.17976/jpps/2024.05.02 This article was prepared with the support of a grant from the Ministry of Science and Higher Education of the Russian Federation for major scientific projects in priority areas of scientific and technological development No. 075-15-2024-551 “Global and regional centers of power in the emerging world order”. The author expresses gratitude to his colleagues at IMEMO RAS R.I. Kapelyushnikov, V.D. Milovidov, I.S. Semenenko, I.V. Danilin, S.V. Zhukov, K.V. Bogdanov, A.P. Guchanova for consultations and assistance in preparing this article. References Büchs, M., & Koch, M. (2017). Critiques of growth. In M. Büchs, & M. Koch. Postgrowth and Wellbeing: Challenges to Sustainable Welfare (pp. 39-56). London: Palgrave Macmillan. https://doi.org/10.1007/978-3319-59903-8_4 Delgado, R.,& Stefancic, J. (2017). Critical race theory. Anintroduction. New York: New York University Press. Graham, T. (2023). Getting Russia right. 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The world order or international system is a stable set of institutions and norms of military-political and economic relations, which is institutionalized and legitimate in the international legal sense. The world order remains stable during the active life of at least one generation—a universal measure of social time. However, in the wake of geopolitical macro-crises, illegitimate systems emerge, forcibly imposed by the winner. This was the case with the unipolar world order. 2. Dynkin A., Burrows M. Here’s the Playbook for Getting U.S.–Russian Cooperation Back on Track. The National Interest. 07.12.2015. https://nationalinterest.org/feature/heres-the-playbook-getting-us-russian-cooperation-back-track-14527. 3. For example, see: [Yan Xuetong 2016; Kupchan 2021]. 4. Remarks by the President in the State of the Union Address. The White House. President Barack Obama. 12.02.2013. https://obamawhitehouse.archives.gov/the-press-office/2013/02/12/remarks-president-state-union-address. 5. President Bush Calls on Senate to Back Human Cloning Ban. Remarks by the President on Human Cloning Legislation. The East Room. The White House. President George W. Bush. 10.04.2002. https://georgewbush-whitehouse.archives.gov/news/releases/2002/04/20020410-4.html. 6. Private sector establishments birth and death, seasonally adjusted. U.S. Bureau of Labor Statistics. 25.10.2023. https://www.bls.gov/news.release/cewbd.t08.htm. 7. Artificial Intelligence Journey 2023 conference. President of Russia. Official website. 24.11.2023. http://www.en.kremlin.ru/events/president/transcripts/72811. 8. World Population Prospects 2024, Online Edition. United Nations, Department of Economic and Social Affairs, Population Division (2024). https://population.un.org/wpp/Download/Standard/MostUsed/. 9. Global Health Expenditure database. World Health Organization. https://apps.who.int/nha/database. 10. Dirigisme is a policy of active state intervention in the national economy, pursued by France and the UK in mid-1940s. 11. Mendenhall A. Cultural Marxism is Real. The James G. Martin Center for Academic Renewal. 04.01.2019. https://www.jamesgmartin.center/2019/01/cultural-marxism-is-real/. 12. AFA Calls for an End to Required Diversity Statements. Press Release. AFA. Princeton, NJ. 22.08.2022. https://academicfreedom.org/afa-calls-for-an-end-to-required-diversity-statements/. 13. World Economic Outlook Database (October 2023 Edition). International Monetary Fund. 10.10.2023. https://www.imf.org/en/Publications/WEO/weo-database/2023/October.