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Energy & Economics
Commodity and alternative asset, gold bar and crypto currency Bitcoin on rising price graph as financial crisis or war safe haven, investment asset or wealth concept.

Assessing Bitcoin and Gold as Safe Havens Amid Global Uncertainties: A Rolling Window DCC-GARCH Analysis

by Anoop S Kumar , Meera Mohan , P. S. Niveditha

Abstract We examine the roles of Gold and Bitcoin as a hedge, a safe haven, and a diversifier against the coronavirus disease 2019 (COVID-19) pandemic and the Ukraine War. Using a rolling window estimation of the dynamic conditional correlation (DCC)-based regression, we present a novel approach to examine the time-varying safe haven, hedge, and diversifier properties of Gold and Bitcoin for equities portfolios. This article uses daily returns of Gold, Bitcoin, S&P500, CAC 40, and NSE 50 from January 3, 2018, to October 15, 2022. Our results show that Gold is a better safe haven than the two, while Bitcoin exhibits weak properties as safe haven. Bitcoin can, however, be used as a diversifier and hedge. This study offers policy suggestions to investors to diversify their holdings during uncertain times. Introduction Financial markets and the diversity of financial products have risen in both volume and value, creating financial risk and establishing the demand for a safe haven for investors. The global financial markets have faced several blows in recent years. From the Global Financial Crisis (GFC) to the outbreak of the pandemic and uncertainty regarding economic policy measures of governments and central banks, the financial markets including equity markets around the world were faced with severe meltdowns. This similar behavior was observed in other markets including equity and commodity markets, resulting in overall uncertainty. In this scenario, the investors normally flock toward the safe-haven assets to protect their investment. In normal situations, investors seek to diversify or hedge their assets to protect their portfolios. However, the financial markets are negatively impacted when there are global uncertainties. Diversification and hedging methods fail to safeguard investors’ portfolios during instability because almost all sectors and assets are negatively affected (Hasan et al., 2021). As a result, investors typically look for safe-haven investments to safeguard their portfolios under extreme conditions (Ceylan, 2022). Baur and Lucey (2010) provide the following definitions of hedge, diversifier, and safe haven: Hedge: An asset that, on average, has no correlation or a negative correlation with another asset or portfolio. On average, a strict hedge has a (strictly) negative correlation with another asset or portfolio.Diversifier: An asset that, on average, has a positive correlation (but not perfect correlation) with another asset or portfolio. Safe haven: This is the asset that in times of market stress or volatility becomes uncorrelated or negatively associated with other assets or a portfolio. As was previously indicated, the significant market turbulence caused by a sharp decline in consumer spending, coupled with insufficient hedging opportunities, was a common feature of all markets during these times (Yousaf et al., 2022). Nakamoto (2008) suggested a remedy by introducing Bitcoin, a “digital currency,” as an alternative to traditional fiduciary currencies (Paule-Vianez et al., 2020). Bitcoin often described as “Digital Gold” has shown greater resilience during periods of crises and has highlighted the potential safe haven and hedging property against uncertainties (Mokni, 2021). According to Dyhrberg (2016), the GFC has eased the emergence of Bitcoin thereby strengthening its popularity. Bouri et al. (2017) in their study indicate that Bitcoin has been viewed as a shelter from global uncertainties caused by conventional banking and economic systems. Recent research has found that Bitcoin is a weak safe haven, particularly in periods of market uncertainty like the coronavirus disease 2019 (COVID-19) crisis (Conlon & McGee, 2020; Nagy & Benedek, 2021; Shahzad et al., 2019; Syuhada et al., 2022). In contrast to these findings, a study by Yan et al. (2022) indicates that it can function as a strong safe haven in favorable economic times and with low-risk aversion. Ustaoglu (2022) also supports the strong safe-haven characteristic of Bitcoin against most emerging stock market indices during the COVID-19 period. Umar et al. (2023) assert that Bitcoin and Gold are not reliable safe-havens. Singh et al. (2024) in their study reveal that Bitcoin is an effective hedge for investments in Nifty-50, Sensex, GBP–INR, and JPY–INR, at the same time a good diversifier for Gold. The study suggests that investors can incorporate Bitcoin in their portfolios as a good hedge against market volatility in equities and commodities markets. During the COVID-19 epidemic, Barbu et al. (2022) investigated if Ethereum and Bitcoin could serve as a short-term safe haven or diversifier against stock indices and bonds. The outcomes are consistent with the research conducted by Snene Manzli et al. (2024). Both act as hybrid roles for stock market returns, diversifiers for sustainable stock market indices, and safe havens for bond markets. Notably, Bhuiyan et al. (2023) found that Bitcoin provides relatively better diversification opportunities than Gold during times of crisis. To reduce risks, Bitcoin has demonstrated a strong potential to operate as a buffer against global uncertainty and may be a useful hedging tool in addition to Gold and similar assets (Baur & Lucey, 2010; Bouri et al., 2017; Capie et al., 2005; Dyhrberg, 2015). According to Huang et al. (2021), its independence from monetary policies and minimal association with conventional financial assets allow it to have a safe-haven quality. Bitcoins have a substantial speed advantage over other assets since they are traded at high and constant frequencies with no days when trading is closed (Selmi et al., 2018). Additionally, it has been demonstrated that the average monthly volatility of Bitcoin is higher than that of Gold or a group of international currencies expressed in US dollars; nevertheless, the lowest monthly volatility of Bitcoin is lower than the maximum monthly volatility of Gold and other foreign currencies (Dwyer, 2015). Leverage effects are also evident in Bitcoin returns, which show lower volatilities in high return periods and higher volatilities in low return times (Bouri et al., 2017; Liu et al., 2017). According to recent research, Bitcoins can be used to hedge S&P 500 stocks, which increases the likelihood that institutional and retail investors will build secure portfolios (Okorie, 2020). Bitcoin demonstrates strong hedging capabilities and can complement Gold in minimizing specific market risks (Baur & Lucey, 2010). Its high-frequency and continuous trading further enrich the range of available hedging tools (Dyhrberg, 2016). Moreover, Bitcoin spot and futures markets exhibit similarities to traditional financial markets. In the post-COVID-19 period, Zhang et al. (2021) found that Bitcoin futures outperform Gold futures.Gold, silver, palladium, and platinum were among the most common precious metals utilized as safe-haven investments. Gold is one such asset that is used extensively (Salisu et al., 2021). Their study tested the safe-haven property of Gold against the downside risk of portfolios during the pandemic. Empirical results have also shown that Gold functions as a safe haven for only 15 trading days, meaning that holding Gold for longer than this period would result in losses to investors. This explains why investors buy Gold on days of negative returns and sell it when market prospects turn positive and volatility decreases (Baur & Lucey, 2010). In their study, Kumar et al. (2023) tried to analyse the trends in volume throughout futures contracts and investigate the connection between open interest, volume, and price for bullion and base metal futures in India. Liu et al. (2016) in their study found that there is no negative association between Gold and the US stock market during times of extremely low or high volatility. Because of this, it is not a strong safe haven for the US stock market (Hood & Malik, 2013). Post-COVID-19, studies have provided mixed evidence on the safe-haven properties of Gold (Bouri et al., 2020; Cheema et al., 2022; Ji et al., 2020). According to Kumar and Padakandla (2022), Gold continuously demonstrates safe-haven qualities for all markets, except the NSE, both in the short and long term. During the COVID-19 episode, Gold’s effectiveness as a hedge and safe-haven instrument has been impacted (Akhtaruzzaman et al., 2021). Al-Nassar (2024) conducted a study on the hedge effectiveness of Gold and found that it is a strong hedge in the long run. Bhattacharjee et al. (2023) in their paper examined the symmetrical and asymmetrical linkage between Gold price levels and the Indian stock market returns by employing linear autoregressive distributed lag and nonlinear autoregressive distributed lag models. The results exhibit that the Indian stock market returns and Gold prices are cointegrated. According to the most recent study by Kaczmarek et al. (2022), Gold has no potential as a safe haven, despite some studies on the COVID-19 pandemic showing contradictory results. The co-movements of Bitcoin and the Chinese stock market have also normalized as a result of this epidemic (Belhassine & Karamti, 2021). Widjaja and Havidz (2023) verified that Gold was a safe haven asset during the COVID-19 pandemic, confirming the Gold’s safe-haven characteristic. As previously pointed out, investors value safe-haven investments in times of risk. Investors panic at these times when asset prices fall and move from less liquid (risky) securities to more liquid (safe) ones, such as cash, Gold, and government bonds. An asset must be bought and sold rapidly, at a known price, and for a reasonably modest cost to be considered truly safe (Smales, 2019). Therefore, we need to properly re-examine the safe-haven qualities of Gold and Bitcoin due to the mixed evidences regarding their safe-haven qualities and the impact of COVID-19 and the war in Ukraine on financial markets. This work contributes to and deviates from the body of existing literature in the following ways. We propose a novel approach in this work to evaluate an asset’s time-varying safe haven, hedge, and diversifier characteristics. This research examines the safe haven, hedging, and diversifying qualities of Gold and Bitcoin against the equity indices; S&P 500, CAC 40, and NSE 50. Through the use of rolling window estimation, we extend the methodology of Ratner and Chiu (2013) by estimating the aforementioned properties of the assets. Comparing rolling window estimation to other conventional techniques, the former will provide a more accurate representation of an asset’s time-varying feature. This study explores the conventional asset Gold’s time-varying safe haven, hedging, and diversifying qualities during crises like the COVID-19 pandemic and the conflict in Ukraine. We use Bitcoin, an unconventional safe-haven asset, for comparison. Data and Methodology We use the daily returns of three major equity indices; S&P500, CAC 40, and NSE 50 from January 3, 2018, to October 15, 2022. The equity indices were selected to represent three large and diverse markets namely the United States, France, and India in terms of geography and economic development. We assess safe-haven assets using the daily returns of Gold and Bitcoin over the same time. Equity data was collected from Yahoo Finance, Bitcoin data from coinmarketcap.com, and Gold data from the World Gold Council website. Engle (2002) developed the DCC (Dynamic Conditional Correlation)-GARCH model, which is frequently used to assess contagion amid pandemic uncertainty or crises. Time-varying variations in the conditional correlation of asset pairings can be captured using the DCC-GARCH model. Through employing this model, we can analyse the dynamic behavior of volatility spillovers. Engle’s (2002) DCC-GARCH model contains two phases; 1. Univariate GARCH model estimation2. Estimation of time-varying conditional correlation. For its explanation, mathematical characteristics, and theoretical development, see here [insert the next link in “the word here” https://journals.sagepub.com/doi/10.1177/09711023251322578] Results and Discussion The outcomes of the parameters under the DCC-GARCH model for each of the asset pairs selected for the investigation are shown in Table 1.   First, we look at the dynamical conditional correlation coefficient, ρ.The rho value is negative and insignificant for NSE 50/Gold, NSE 50 /BTC, S&P500/Gold, and S&P500/BTC indicating a negative and insignificant correlation between these asset pairs, showing Gold and Bitcoin as potential hedges and safe havens. The fact that ρ is negative and significant for CAC 40/Gold suggests that Gold can be a safe haven against CAC 40 swings. The asset pair CAC/BTC, on the other hand, has possible diversifier behavior with ρ being positive but statistically insignificant. Next, we examine the behavior of the DCC-GARCH parameters; α and β. We find that αDCC is statistically insignificant for all the asset pairs, while βDCC is statistically significant for all asset pairs. βDCC quantifies the persistence feature of the correlation and the extent of the impact of volatility spillover in a particular market’s volatility dynamics. A higher βDCC value implies that a major part of the volatility dynamics can be explained by the respective market’s own past volatility. For instance, the NSE 50/Gold’s βDCC value of 0.971 shows that there is a high degree of volatility spillover between these two assets, with about 97% of market volatility being explained by the assets’ own historical values and the remainder coming from spillover. Thus, we see that the volatility spillover is highly persistent (~0.8) for all the asset pairs except NSE 50/BTC. The results above show that the nature of the dynamic correlation between the stock markets, Bitcoin and Gold is largely negative, pointing toward the possibility of Gold and Bitcoin being hedge/safe haven. However, a detailed analysis is needed to confirm the same by employing rolling window analysis, and we present the results in the forthcoming section. We present the rolling window results for S&P500 first. We present the regression results for Gold in Figure 1 and Bitcoin in Figure 2   Figure 1. Rolling Window Regression Results for S&P500 and Gold.Note: Areas shaded under factor 1 represent significant regression coefficients. In Figure 1, we examine the behavior of β0 (intercept term), β1, β2, and β3 (partial correlation coefficients). The intercept term β0 will give an idea about whether the asset is behaving as a diversifier or hedge. Here, the intercept term shows significance most of the time. However, during 2018, the intercept was negative and significant, showing that it could serve as a hedge during geopolitical tensions and volatilities in the global stock market. However, during the early stages of COVID-19, we show that the intercept is negative and showing statistical significance, suggesting that Gold could serve as a hedge during the initial shocks of the pandemic. These findings are contrary to the results in the study by Tarchella et al. (2024) where they found hold as a good diversifier. Later, we find the intercept to be positive and significant, indicating that Gold could act as a potential diversifier. But during the Russia-Ukraine War, Gold exhibited hedge ability again. Looking into the behavior of β1, which is the partial correlation coefficient for the tenth percentile of return distribution shows negative and insignificant during 2018. Later, it was again negative and significant during the initial phases of COVID-19, and then negative in the aftermath, indicating that Gold could act as a weak safe haven during the COVID-19 pandemic. Gold could serve as a strong safe haven for the SP500 against volatility in the markets brought on by the war in Ukraine, as we see the coefficient to be negative and large during this time. From β2 and β3, the partial correlation coefficients of the fifth and first percentile, respectively, show that Gold possesses weak safe haven properties during COVID-19 and strong safe haven behavior during the Ukraine crisis. Next, we examine the characteristics of Bitcoin as a hedge/diversifier/safe haven against the S&P500 returns. We present the results in Figure 2.   Figure 2. Rolling Window Regression Results for S&P500 and Bitcoin.Note: Areas shaded under factor 1 represent significant regression coefficients. Like in the previous case, we begin by analysing the behavior of the intercept coefficient, which is β0. As mentioned earlier the intercept term will give a clear picture of the asset’s hedging and diversifier property. In the period 2018–2019, the intercept term is positive but insignificant. This could be due to the large volatility in Bitcoin price movements during the period. It continues to be minimal (but positive) and insignificant during 2019–2020, indicating toward weak diversification possibility. Post-COVID-19 period, the coefficient shows the significance and positive value, displaying the diversification potential. We see that the coefficient remains positive throughout the analysis, confirming Bitcoin’s potential as a diversifier. Looking into the behavior of β1 (the partial correlation coefficient at tenth percentile), it is positive but insignificant during 2018. The coefficient is having negative sign and showing statistical significance in 2019, suggesting that Bitcoin could be a good safe haven in that year. This year was characterized by a long list of corporate scandals, uncertainties around Brexit, and tensions in global trade. We can observe that throughout the COVID-19 period, the coefficient is showing negative sign and negligible during the March 2020 market meltdown, suggesting inadequate safe-haven qualities. However, Bitcoin will regain its safe-haven property in the coming periods, as the coefficient is negative and significant in the coming months. The coefficient is negative and shows statistical significance during the Ukrainian crisis, suggesting strong safe-haven property. Only during the Ukrainian crisis could Bitcoin serve as a safe haven, according to the behavior of β2, which displays the partial correlation coefficient at the fifth percentile. Bitcoin was a weak safe haven during COVID-19 and the Ukrainian crisis, according to β3, the partial correlation coefficient for the first percentile (coefficient negative and insignificant). According to the overall findings, Gold is a stronger safe haven against the S&P 500’s swings. This result is consistent with the previous studies of Triki and Maatoug (2021), Shakil et al. (2018), Będowska-Sójka and Kliber (2021), Drake (2022), and Ghazali et al. (2020), etc. The same analysis was conducted for the CAC 40 and the NSE 50; the full analysis can be found here [insert the next link in “the word here” https://journals.sagepub.com/doi/10.1177/09711023251322578]. However, it is important to highlight the respective results: In general, we may say that Gold has weak safe-haven properties considering CAC40. We can conclude that Bitcoin’s safe-haven qualities for CAC40 are weak. We can say that Gold showed weak safe-haven characteristics during the Ukraine crisis and good safe-haven characteristics for the NSE50 during COVID-19. We may say that Bitcoin exhibits weak safe haven, but strong hedging abilities to NSE50. Concluding Remarks In this study, we suggested a new method to evaluate an asset’s time-varying hedge, diversifier, and safe-haven characteristics. We propose a rolling window estimation of the DCC-based regression of Ratner and Chiu (2013). Based on this, we estimate the conventional asset’s time-varying safe haven, hedging, and diversifying properties during crises like the COVID-19 pandemic and the conflict in Ukraine. For comparison purposes, we include Bitcoin, a nonconventional safe-haven asset. We evaluate Gold and Bitcoin’s safe haven, hedging, and diversifier properties to the S&P 500, CAC 40, and NSE 50 variations. We use a rolling window of length 60 to estimate the regression. From the results, we find that Gold can be considered as a better safe haven against the fluctuations of the S&P 500. In the case of CAC 40, Gold and Bitcoin have weak safe-haven properties. While Bitcoin demonstrated strong safe-haven characteristics during the Ukraine crisis, Gold exhibited strong safe-haven characteristics during COVID-19 for the NSE 50. Overall, the findings indicate that Gold is the better safe haven. This outcome is consistent with earlier research (Będowska-Sójka & Kliber, 2021; Drake, 2022; Ghazali et al., 2020; Shakil et al., 2018; Triki & Maatoug, 2021). When it comes to Bitcoin, its safe-haven feature is weak. Bitcoin, however, works well as a diversifier and hedge. Therefore, from a policy perspective, investing in safe-haven instruments is crucial to lower the risks associated with asset ownership. Policymakers aiming to enhance the stability of financial portfolios might encourage institutional investors and other market players to incorporate Gold into their asset allocations. Gold’s strong safe-haven qualities, proven across various market conditions, make it a reliable choice. Gold’s performance during crises like COVID-19 highlights its potential to mitigate systemic risks effectively. Further, Bitcoin could also play a complementary role as a hedge and diversifier, especially during periods of significant volatility such as the Ukraine crisis. While Bitcoin’s safe-haven characteristics are relatively weaker, its inclusion in a diversified portfolio offers notable value and hence it should not be overlooked. Further, policymakers may consider how crucial it is to monitor dynamic correlations and periodically rebalance portfolios to account for shifts in the safe haven and hedging characteristics of certain assets. Such measures could help reduce the risks of over-reliance on a single asset type and create more resilient portfolios that can better withstand global economic shocks. For future research, studies can be conducted on the estimation of the rolling window with different widths. This is important to understand how the safe-haven property changes across different holding periods. Further, more equity markets would be included to account for the differences in market capitalization and index constituents. This study can be extended by testing these properties for multi-asset portfolios as well. We intend to take up this study in these directions in the future. Data Availability StatementNot applicable.Declaration of Conflicting InterestsThe authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.FundingThe authors received no financial support for the research, authorship, and/or publication of this article.ReferencesAkhtaruzzaman M., Boubaker S., Lucey B. M., & Sensoy A. (2021). Is gold a hedge or a safe-haven asset in the COVID-19 crisis? Economic Modelling, 102, 105588. Crossref. Web of Science.Al-Nassar N. S. (2024). Can gold hedge against inflation in the UAE? A nonlinear ARDL analysis in the presence of structural breaks. PSU Research Review, 8(1), 151–166. Crossref.Barbu T. C., Boitan I. A., & Cepoi C. O. (2022). Are cryptocurrencies safe havens during the COVID-19 pandemic? A threshold regression perspective with pandemic-related benchmarks. Economics and Business Review, 8(2), 29–49. 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Diplomacy
USA flag and EU flag print screen on two  pawn chess for battle.It is symbol of United States of America increase tariff tax barrier for import product from EU countries.-Image.

SAFE - Will the American Eagle be Replaced with the European Golden Eagle? Can the EU replace the US as a benign hegemon?

by Krzysztof Śliwiński

Abstract This paper examines whether the European Union (EU) can supplant the United States (US) as a benign hegemon in the contemporary international system. It discusses the concept of a benign hegemon, traditionally associated with the US, characterized by military and economic dominance exercised with liberal values, multilateralism, and the promotion of global security and prosperity.  The analysis highlights the limitations of US hegemony, including military overextension, economic challenges, and a decline in soft power, particularly in regions such as the Middle East. Conversely, the EU's global ambitions are examined, with a focus on its peace efforts, trade agreements, development aid, and multilateral engagement. However, the EU's internal divisions, lack of unified foreign and defense policy, and historical perceptions of coercion limit its ability to act as a benign hegemon. The analysis concludes with a proposition that the EU's unique nature and current constraints suggest it cannot fully assume the US's role, raising questions about the viability of benign hegemony in today's context. Key Words: SAFE, EU, US, Benign Hegemon, Geopolitics Introduction In the recent two pieces, we looked at Security Action for Europe (SAFE) and its potential consequences regarding the role and nature of the EU as a military power {link}, and Ukraine's integration into European defence cooperation, highlighting its unique status as a semi-integrated security partner (SISP) despite not being an EU member. {link}, This article will examine the transatlantic relations and specifically address the question of whether the EU could replace the US as a benign hegemon. According to popular sources, a "benign hegemon" refers to a dominant power that exercises its influence in a manner that is generally considered beneficial. This notion is contemporary and is almost always used referring to the United States (US). Accordingly, the US has used its influence to provide global security and stability without being overly aggressive or coercive. The concept is rooted in hegemonic stability theory, which posits that a single dominant state is necessary to maintain the stability of the international system.[i] Scholars define a benign hegemon as one that provides the necessary power to uphold the international order. This involves advancing its interests while promoting global security and prosperity through multilateral treaties and international organizations, safeguarding national sovereignty via alliance networks and the UN Security Council, and fostering unrestricted market capitalism through trade deals and bodies such as the World Trade Organization and the International Monetary Fund.[ii] Moreover, a benign hegemon is typically defined as a hegemonic power that, in addition to possessing overwhelming military and economic power, utilises its influence to promote more liberal principles within the international system. This includes pursuing liberal international values such as economic development, liberal and democratic political structures, and fostering a community of civilised states that resort to war only as a last resort and never against each other. The United States, as the hegemonic power after the Cold War, is often described as benign because its influence is broadly progressive, aiming to create a liberal world order based on free markets, free speech, free elections, and the exercise of free will unencumbered by the state. While the US maintains traditional geopolitical objectives, it also attempts to refashion the operational ground rules of the international system itself, promoting free trade, human rights, democratisation, and a global cultural infrastructure based on US technological companies. This combination of overwhelming power and a liberal agenda is what characterises a benign hegemon.[iii] Furthermore, experts often cite the US's "liberal grand strategy" as constructing a relatively benign and highly institutionalised multilateral system based on open markets, free trade, and the provision of public goods, such as collective security and an open international trading regime.[iv] This system is viewed as enabling other countries to prosper economically in a secure environment, with examples such as the rebuilding and subsequent success of Japan and Germany. However, the concept of benign hegemon is contested, with some arguing that the US lacks the resources to be a genuine global hegemon, as noted by John Mearsheimer and Joseph Nye, who suggest it cannot achieve all security, political, and economic goals alone. This argument highlights the complexity of assessing whether the US's actions are truly benign, especially given its military and financial reach.[v] Historical Context The US's role as a potential benign hegemon has been prominent since the end of World War II, particularly after the fall of the Berlin Wall in 1989, when it occupied a hegemonic position within world politics Historical instances include its leadership in establishing the Bretton Woods system, the International Monetary Fund, the World Bank, and security alliances like NATO, which aimed to stabilise the global economy and provide collective defense. The US also played a key role in democratising post-war Europe and Japan, furthering its image as a stabilising force. On the positive side, the US led through consent, with high global approval ratings and multilateral actions, such as Bush Sr.'s Gulf War coalition and Obama's Libya UN action, which are claimed to be foundational to the liberal order since World War II. On the negative side, actions like the Iraq War, drone attacks, and government overthrows in Latin America and the Middle East are cited as evidence of coercion and imperialism, undermining the benign label. Scholars focusing on the Middle East note that despite its hegemonic role, the region has experienced significant violence and instability, with US interventions such as the 2003 Iraq War and the 2011 Libya seen as sources of disorder rather than stability. This challenges the notion of benign hegemony, suggesting unipolarity (power dominance without ideological consensus) better explains US actions in the region.[vi] US hegemony and its limitations The concept of American hegemony has been a cornerstone of international relations since the end of World War II. However, in recent decades, the limitations of American hegemony have become increasingly apparent across military, economic, and cultural domains. Given the recent developments in the Middle East (war in Gaza and incursions between Israel and Iran), it seems logical to examine the limitations of US hegemony in the context of the region. Several factors contribute to the decline in American influence in the Middle East. Firstly, the failure of political reconstruction efforts in Iraq after the US-led invasion and overthrow of Saddam Hussein shifted America's position in the region from advantageous to disadvantaged and exposed the limits of American hegemony. Secondly, war-weariness within the United States affects the ability to sustain prolonged involvement and influence in the region. Thirdly, there is a relative neglect of the Arab-Israeli peace process, which undermines American credibility and effectiveness in the region. Fourthly, the impact of US regional policies on the influence of Iran, which has grown stronger partly as an unintended consequence of the Iraq war. Next, the emergence of a new regional power struggle between an Iranian-led bloc of mainly Shia actors and a Sunni bloc led by Arab states such as Saudi Arabia and Egypt. The rise of Islamist militias and political groups like Muqtada al-Sadr's supporters in Iraq, Hezbollah in Lebanon, and Hamas in the Palestinian territories, which were advantaged by early elections promoted by the US before adequate security and political institutions were in place. Next, the Bush administration's distancing from the Israeli-Palestinian peace process contributed to the rise of Hamas and further undermined moderate Palestinian leadership. Lastly, the diminished fear of American power by adversaries such as Iran, which refused negotiations and disregarded weak UN sanctions, and the uncertainty of America's Arab allies about the reliability of the US as a partner.[vii] Generally speaking, one of the most significant limitations of American military dominance is the issue of overextension. The US has maintained a global military presence, with bases and troops stationed across the world. However, this overextension has led to military fatigue and resource depletion. The wars in Afghanistan and Iraq, for instance, have strained the US military, leading to a decline in its ability to project power effectively.[viii] The rise of other military powers, particularly China, has also challenged the United States' military dominance. China's rapid military modernisation, including advancements in technology and naval capabilities, has narrowed the gap between the two superpowers. This has raised concerns about the US's ability to maintain its military superiority in the Asia-Pacific region and beyond. [ix] Maintaining military dominance is costly, and the economic burden of sustaining a global military presence has taken a toll on the US economy. The high defence budget has led to trade imbalances and deindustrialisation, weakening the economic foundations of American hegemony.[x] The US economy has faced significant challenges, including deindustrialisation, financialisation, and rising competition from China. The shift of manufacturing activities to countries with lower labour costs has weakened the US industrial base, while the rise of China as a global economic powerhouse has challenged American economic influence.[xi] Globalisation has created a more interconnected world economy, reducing the US's ability to dictate economic policies unilaterally. The rise of emerging economies, particularly in Asia, has shifted the balance of economic power, making it difficult for the US to maintain its hegemony in global trade and finance.[xii] The dominance of the US dollar in the global financial system is facing challenges. The rise of alternative currencies and the increasing use of cryptocurrencies have threatened the dollar's hegemony. Additionally, countries like Russia and China are reducing their dependence on the dollar, further eroding its global dominance.[xiii] American cultural influence, once a cornerstone of its global hegemony, is facing resistance. The rise of non-Western cultural formations, particularly in Asia and the Middle East, has challenged the dominance of American media, entertainment, and values. This has led to a decline in the global appeal of American culture.[xiv] The US's soft power, which was once a key component of its hegemony, has declined in recent years. The country's unilateral policies, military interventions, and domestic challenges, such as racial tensions and economic inequality, have eroded its moral authority and global influence.[xv] What is the EU hoping to achieve as a global player? A thorough analysis of available up-to-date documents issued by the EU itself suggests several key areas of interest to the organisation as a key global player. First and foremost, the EU is committed to fostering peace, preventing conflicts, and strengthening international security. It supports a rules-based international order with the United Nations at its core, advocating for multilateralism and the rule of international law.[xvi] The EU has actively engaged in conflict resolution, such as promoting a two-state solution in the Israeli-Palestinian conflict and supporting ceasefires in regions like Gaza.[xvii] It also invests significantly in the defence of Ukraine to counter Russian aggression, viewing this as critical to maintaining European and global stability.[xviii] As the world's largest trading power, the EU seeks to use its economic strength to boost prosperity, enhance its trading power, and foster mutually beneficial partnerships. The EU's economic influence is a key pillar of its global power strategy, as evidenced by recent agreements. In April 2025, the EU-Central Asia summit agreed on a strategic partnership aimed at strengthening economic ties between the EU and Central Asia.[xix] A month later (May 2025), the EU and Singapore signed a landmark Digital Trade Agreement, enhancing the EU's digital trade capabilities.[xx] Overall, the EU has over 40 trade agreements with 70 countries. These agreements fall into three distinct categories: Economic Partnership Agreements (EPAs), Free Trade Agreements (FTAs), and Association Agreements (AAs). The EU also enters into non-preferential trade agreements, as part of broader deals such as Partnership and Cooperation Agreements (PCAs).[xxi] The EU provides significant development aid, which, when including the UK, is two-thirds greater than that of the US and is mainly supplied as grants rather than loans. According to the EU, this highlights its commitment to promoting human rights and sustainable development. The EU has built a dominant position in global development. It accounts for half of all aid worldwide, but the plethora of different programmes disguises its profile in this regard. [xxii] The EU aims to establish strong, well-managed partnerships with countries and regions beyond its immediate neighbourhood, particularly with middle powers (e.g., Brazil, Egypt, Indonesia, Mexico, Saudi Arabia) and pivotal regions (e.g., Africa, Central Asia, Southeast Asia). This is crucial for maintaining its influence in a multipolar world.[xxiii] In that respect, the EU is committed to reforming multilateral institutions, such as the UN, the IMF, and the World Bank, to ensure more equitable representation and effectiveness. It also aims to play a leading role in shaping the future of global forums, such as the G-20. Initiatives such as the "Golden Gateway" (€300 billion by 2027, launched in late 2021) and "Team Europe" for post-COVID investments are part of the EU's strategy to counterbalance China's Belt and Road Initiative and engage more effectively with developing countries.[xxiv] The EU focuses on addressing global challenges, including climate action, migration, and economic development. It wants to ensure that its climate policies, such as the Carbon Border Adjustment Mechanism, do not hinder the development of Southern countries and offers compensation through initiatives like the Global Gateway and climate funds.[xxv] In 2021, the EU was the top partner for 80 countries and provided 43% of global official development assistance, underscoring its commitment.[xxvi] Migration reform is another priority, with the EU aiming to facilitate legal immigration pathways, including work visas, circular migration, and resettlement schemes, to address irregular entries and support global development.[xxvii] In this respect, the Council of the European Union adopted the EU's Pact on Migration and Asylum in May 2024. According to the EU, "the asylum and migration pact will ensure a fairer and stronger migration system that makes a concrete difference on the ground. These new rules will enhance the effectiveness of the European asylum system and foster greater solidarity among member states. The European Union will also continue its close cooperation with third countries to tackle the root causes of irregular migration".[xxviii]   The EU aspires to be a more assertive player in global security, potentially reevaluating its role in NATO and taking on greater responsibility as a security guarantor, particularly in regions such as Africa. It recognises the need for a foreign policy that is both humble (acknowledging the need to do more to have an impact) and ambitious (aiming for strong partnerships to promote its interests and objectives). The EU faces challenges from disinformation campaigns by Russia and China, as well as historical resentment from centuries of European dominance. To address this, Brussels is scaling up its diplomatic engagement and communication efforts, including task forces for regions such as sub-Saharan Africa and communication hubs like the one in Beirut (Carnegie Endowment for International Peace - The EU and the Global Battle of Narratives, citing EEAS Disinformation Speech). The EU aims to repair its image and rebuild trust abroad by positioning itself as a force for reform and a reliable partner for developing nations.[xxix] The EU finds itself squeezed between the United States and China, with its interests increasingly aligned with those of the US, yet also needing to assert its independence. The US's "pivot to Asia" has given the EU more freedom on specific international issues, but it also underscores the need for the EU to strengthen its global role.[xxx] The EU must also clarify its position vis-à-vis the Global South, ensuring that its policies are perceived as supportive and beneficial to developing nations, particularly in areas such as trade, climate, and security. Can the EU ever become a benign power? The answer to this question turns out to be negative, at least as long as we adhere to the criteria used so far. Below, the reader will find a list of reasons supporting the above-proposed statement. First, the EU is still not a unified entity, especially regarding its foreign, security, and, even more so, defence policy. It remains a collection of 27 semi-independent states, some, such as Germany, being more independent than others, notably the Benelux countries (Belgium, the Netherlands, and Luxembourg). Ultimately, the EU's ability to achieve its declared foreign and security objectives depends on the political dynamics and appetite for further integration among member states. For example, the latest proposed 18th package of Russian sanctions was blocked by Hungary and Slovakia, and Brussels has limited options for action, at least for now.[xxxi] The EU's vast asymmetry in power with its neighbors can lead to perceptions of dominance and coercion, even if the EU does not intend to be seen that way.[xxxii] One does not have to look far, but consider the latest (since 2015) waves of immigration. In northern Africa, as well as in some parts of the Middle East, South Asia, and South America, the EU member states are predominantly seen as former colonial powers. There appears to be a shared sense of entitlement towards the EU and its member states regarding its imperial past, which was often anything but benign. Importantly, this does not refer to central and Eastern European members of the EU.[xxxiii] While the EU remains an economic (albeit comparatively declining) and normative power (at least this is what it likes to self-identify), it lacks the military capacity to project its influence in the same way that traditional hegemons have. It is also doubtful that even if the SAFE instrument is fully realized in the next couple of years, the EU member states will have the industrial and human capacity to match the great powers, such as the US, Russia, Turkey, Iran, or, most of all, China.  A quick juxtaposition of current defense spending, population numbers, population growth forecasts, and economic output forecasts tells us all we need to know in this regard. The answer is bitter for the EU; it is likely to matter less and less. On top of that, let's look at the notion of “benign”. What does it even mean? Perhaps the term is entirely false; maybe even the US does not now fulfill the “benign” requirements, at least not in the way it has been defined (as in the introduction). Perhaps, there has never really been a “benign hegemon,” and the EU should not even try to fill these shoes. As usual, there are more questions than answers. Whatever the EU becomes via SAFE, it will probably stand for, not the first time, as new and an “undefiable animal” – sui generis (of its kind) as the EU academics usually posit. The concept of the EU as a benign hegemon is complex and contested. While the EU does promote its values and norms through various means, the extent to which its influence is truly benign is debatable. The EU's internal divisions and its neighbors' perceptions of its power dynamics play a crucial role in shaping the reality of its regional role. Can the EU become a benign power in the future? The author of this analysis is rather negative. Especially, if the EU does not address the challenges as explored here: https://worldandnewworld.com/safe-europe-military-power-3/ and https://worldandnewworld.com/ukraine-european-defence-cooperation/   [1] Although not official, some discussions suggest animals like the Golden Eagle as potential symbols due to its historical significance in Europe, including its use in the Roman Empire and modern Germany.[i]   See more: https://en.wikipedia.org/wiki/Hegemonic_stability_theory[ii]Keay, L. (2023). Surviving the End of US Hegemony. The International Spectator. https://www.iai.it/en/pubblicazioni/c05/surviving-end-us-hegemony[iii]  Catley, B. (1997). Hegemonic America: The benign superpower? Contemporary Southeast Asia, 18(4), 377-399. ISEAS - Yusof Ishak Institute. https://www.jstor.org/stable/25798354[iv]   Catley, B. (1997). Hegemonic America: The Benign Superpower? Contemporary Southeast Asia, 18(4), 377–399. http://www.jstor.org/stable/25798354[v]Mearsheimer, J. J. (2016). Benign Hegemony. International Studies Review, 1(3). https://www.mearsheimer.com/wp-content/uploads/2019/06/Benign-Hegemony.pdf [vi] Gause, F. G. (2025). Hegemony, Unipolarity and American Failure in the Middle East. POMEPS Studies, 54, 41–47. https://pomeps.org/pomeps-studies-54-america-and-the-middle-east[vii] Wittes, T. C. (2007, March 22). American hegemony: Myth and reality. The Brookings Institution. Retrieved June 26, 2025, from https://www.brookings.edu/articles/american-hegemony-myth-and-reality/[viii] Bello, W. (2024). Overextension and Globalization: The Dynamics of Hegemonic Decline. Critical Sociology. https://doi.org/10.1177/08969205241266982[ix] Asuquo-Ekpo, B. (2024). China’s Economic, Military, Science and Technological Emergence in International Politics: Implications for United States’ Hegemony. World Journal Of Advanced Research and Reviews, 22(3), 804–814. https://doi.org/10.30574/wjarr.2024.22.3.1791[x]Lau, J. (2023). American Imperialism (pp. 185–194). Routledge eBooks. https://doi.org/10.4324/9781003121800-20[xi] Rashid, A., & Khuhro, A. A. (2023). Historical Insights of Global Power Transitions: Implications on US-China Relations. Perennial Journal of History, 4(2), 68–87. https://doi.org/10.52700/pjh.v4i2.156[xii] Cartwright, M. (2024). Embedded hegemony and the evolution of the United States’ structural power. International Relations. https://doi.org/10.1177/00471178241268418[xiii] Sen, O. F. (2024). Challenges to the American dollar hegemony. https://doi.org/10.32469/10355/106100[xiv] Knauft, B. M. (2007). Provincializing America: Imperialism, Capitalism, and Counterhegemony in the Twenty-first Century. Current Anthropology, 48(6), 781–805. https://doi.org/10.1086/521415[xv] Nuridah, I., Aulia, T., Aulia Sahada, N., Rodiyah, Z., Ndruru, S., Simangunsong, W. H., Rila, E. S., & Tampubolon, Y. L. (2024). Amerika Serikat sebagai Negara Adikuasa: Pengaruh dan Dominasi dari Akhir Abad ke-20 hingga Awal Abad ke-21. 1(3), 157–161. https://doi.org/10.57251/polyscopia.v1i3.1368[xvi] A global Europe: leveraging our power and partnership. (n.d.). European Commission, A Global Europe. Retrieved June 30, 2025, from https://commission.europa.eu/priorities-2024-2029/global-europe_en[xvii] European Commission (2025, April 14). Commission announces multiannual programme for Palestinian recovery and resilience worth up to €1.6 billion. European Commission, Press Release. https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1055[xviii] European Union (n.d.). EU support for Ukraine. European Union. Retrieved June 30, 2025, from https://european-union.europa.eu/priorities-and-actions/eu-support-ukraine_en[xix] European Commission (2025, April 4). Joint press release on the EU-Central Asia Summit. European Commission. https://ec.europa.eu/commission/presscorner/detail/en/ip_25_983[xx] European Commission (2025, July 5). EU and Singapore sign landmark digital trade agreement. European Commission. https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1152[xxi] European Council, Council of the Union (2025, July 5). EU trade agreements. European Council. https://www.consilium.europa.eu/en/policies/trade-agreements/[xxii] Merritt, G. (2023, October 3). Global Europe 1: The EU’s path to super-power status. Friends of Europe. https://www.friendsofeurope.org/insights/frankly-speaking-global-europe-1-the-eus-path-to-super-power-status/[xxiii] Lehne, S. (2024, March 21). The EU and the Global Battle of Narratives. Carnegie Europe. https://carnegieendowment.org/research/2024/03/the-eu-and-the-global-battle-of-narratives?lang=en¢er=europe[xxiv] Merritt, G. (2023, October 3). Global Europe 1: The EU’s path to super-power status. Friends of Europe. https://www.friendsofeurope.org/insights/frankly-speaking-global-europe-1-the-eus-path-to-super-power-status/[xxv] Lehne, S. (2024, March 21). The EU and the Global Battle of Narratives. Carnegie Europe. https://carnegieendowment.org/research/2024/03/the-eu-and-the-global-battle-of-narratives?lang=en¢er=europe[xxvi] European Commission (2022, July 18). Team Europe’s Official Development Assistance reaches €70.2 billion in 2021. European Commission. https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4532[xxvii] European Council, Council of the Union (2025, June 30). EU migration and asylum policy. European Council, Council of the European Union. https://www.consilium.europa.eu/en/policies/eu-migration-policy/[xxviii] European Council, Council of the Union (2024, May 14). The Council adopts the EU’s pact on migration and asylum. European Council, Council of the European Union. https://www.consilium.europa.eu/en/press/press-releases/2024/05/14/the-council-adopts-the-eu-s-pact-on-migration-and-asylum/[xxix] The Diplomatic Service of the European Union (2024, January 23). Disinformation and Foreign Interference: Speech by High Representative/Vice-President Josep Borrell at the EEAS Conference. European Council, External Action. https://www.eeas.europa.eu/eeas/disinformation-and-foreign-interference-speech-high-representativevice-president-josep-borrell-eeas_en[xxx] Merritt, G. (2023, October 3). Global Europe 1: The EU’s path to super-power status. Friends of Europe. https://www.friendsofeurope.org/insights/frankly-speaking-global-europe-1-the-eus-path-to-super-power-status/[xxxi] Vysotska, T., & POHORILOV, S. (2025, June 30). 18th package of sanctions against Russia being blocked not only by Slovakia, but also by Hungary. Ukrainska Pravda 25. https://www.pravda.com.ua/eng/news/2025/06/30/7519420/[xxxii] Zubek, M., & Gora, M. (2021, June). Revamping the EU Approach Towards the Neighbouring and Enlargement Countries. Differentiation and EU Foreign Policy. 10th Conference of the SGEU, Virtual Event, 10 - 12 June 2021. https://ecpr.eu/Events/Event/PaperDetails/49470[xxxiii] Gowayed, H. (2024, August 12). Borders and the Exchange of Humans for Debt. IN THESE TIMES. https://inthesetimes.com/article/borders-exchange-humans-debt-asylum-global-south

Diplomacy
waving colorful flag of european union and flag of canada on a euro money banknotes background. finance concept. macro

The Europe–Canada Schicksalsgemeinschaft: Transatlantic interdependency in the new North Atlantic triangle

by Christian Leuprecht

Abstract Buffeted by the headwinds of US unilateralism, Europeans and Canadians are bound together in a community of fate. As the US departs the field, Europe and Canada need to cooperate more. To avoid being abandoned, they need to avail themselves of Atlanticist power for mutual benefit. Rather than merely protecting a liberal–democratic zone of peace across the Western hemisphere, Europe and Canada need to project the power of the transatlantic security community to deter Russia from using war to precipitate a multipolar world order in which it becomes a global player. This article draws on the metaphor of transatlantic relations as a triangle: with the US, Europe and Canada at its angles. Canada is in an existentially precarious position: a more autonomous Europe would make Canada even more dependent on the American hegemon, which would heighten Canada’s risk of being absorbed by the US. Although that outcome is not in Europe’s interest, Europe and Canada have been disengaging for decades. Reversing this trajectory would come at a significant military cost but would be a political gain that would be difficult to measure, resulting in cooperation on energy security, critical minerals, defence and defence in depth. Yet, to achieve this strategic counterbalance, Europe and Canada need to protect abiding security and political interests: to keep the US in Europe and to keep the Russians out. KeywordsCanada, Europe, EU, Euro-Atlantic community, US, NATO, Energy security, Defence, Defence in depth, Transatlantic relations, Structural realism Introduction ‘Europe and Canada are trusted friends and partners. Today this relationship is more critical than ever. I look forward to working with you to defend democracy, free and fair trade, and our shared values’ (von der Leyen 2025). The words of the president of the European Commission, on the swearing in of Canadian Prime Minister Mark Carney, identify Europe’s common priorities with the ‘most European of non-European countries’. The words reinforce a reinvigorated Schicksalsgemeinschaft, a German term that denotes a community with a common fate. After decades of distraction by ‘Asia-Pacific’ imaginaries, Europe and Canada are rediscovering the inevitability of their common fate, in the Euro-Atlantic community. Traditionally, the North Atlantic triangle has comprised an Atlanticist Anglosphere: the UK, the US and Canada. This article instead draws on an age-old metaphor coined by celebrated Canadian historian John Bartlet Brebner (1966): a North Atlantic triangle that reflects transatlantic strategic and political cultures. The angles of this triangle consist of the US, Canada and Europe writ large, as manifest in but not limited to the EU. Europe and Canada share a common strategic fate that makes them interdependent. Both stand to benefit from cultivating their relationship, while both stand to lose should Canada become even more dependent on the US. Canada’s strategic amnesia is manifest in its having forgotten the lesson of leveraging Europe to hedge against the uncertainties of US unilateralism. This is reminiscent of what Brebner called the ‘bookkeeper’s puzzle’: how can Canada best manage relations with both the UK and the US so as (a) to be able to invoke the assistance of the former against the latter’s political (and perhaps military) pressure, while at same time (b) ensuring that the British desire for an Anglo-American rapprochement does not result in any ‘sacrifice’ of Canadian interests? Historically, Canada had managed relations with the easternmost angle of the triangle, the UK, to assure its assistance against political (and possibly existential military) pressure from the US. At the same time, in the interests of its sovereignty, Canada wanted to ensure that any rapprochement with the UK would not end up sacrificing Canadian interests. An offshoot of the bookkeeper’s puzzle applies to attempts by Canada to involve its allies from NATO in an expanded triangle to counterbalance the US politically and economically (Haglund 2025). The bookkeeper’s puzzle thus reflects a real fear of abandonment: in Canada of being abandoned by Europe, and in Europe of being abandoned by the US. The key to the puzzle is for Canada and Europe to retrench and harness their interdependence. But that is easier said than done, due in part to free trade with the US, which has reinforced the shift of Canada’s organisational focus from east–west to north–south. The new North Atlantic triangle Since the founding of NATO in 1949, European countries and Canada have come to depend disproportionately on the world’s largest defence and intelligence complex for their security and have had the world’s largest economy as their primary trading partner. The US shored up its Atlantic and Pacific rims by design: a favourable trading relationship with the US allowed Europe to prosper, while the US guaranteed and underwrote Europe’s security against the Soviet threat. With the end of the Cold War, however, European allies opted to reduce their defence posture significantly. By contrast, since the end of the Cold War, the US has invested US$500 billion per year more than Europe in defence (at today’s prices)—which comes to almost US$20 trillion more than Europe over 35 years. This explains why Europe depends on US capability—especially in cyber, space and intelligence. The US feels that this came at its expense: 64% of European defence is still underwritten by the US (NATO 2025), up from 52% over the past decade, nothingstanding NATO members’ 2014 Wales summit pledge to spend more on defence. Why are 340 million Americans defending 450 million Europeans? Moreover, the US perceives those allies as benefiting from asymmetric trade relations, which the Trump administration considers to be to the detriment of the US. That is, European allies have failed to heed the first purpose of NATO which, in the infamous words of its first secretary general, Lord Ismay, is ‘to keep the Americans in Europe’ (Rodman 1995). To keep ‘the Russians out’ of Europe is the second purpose Lord Ismay sets out for NATO (Rodman 1995). In line with Article 5 of NATO’s founding charter (North Atlantic Treaty 1949, art. 5), allies rely on the US as the guarantor to deter Russia from its ambition of becoming a global player in a multipolar world order, which Russia is prepared to bring about by force. France and the UK notwithstanding, only the US has the nuclear triad and second-strike capability to ensure credible extended nuclear deterrence. However, two world wars and the Cold War have shown that Europe needs Canada for defence in depth. The usual connotation of this military strategy is to contain a bad actor that has breached a layer of defence by providing a second layer of defence. In this case, it refers to Canadian territory as being a safe and like-minded industrial hinterland for resources and an industrial base for Europe to rely on in times of war, as it did during the world wars. During these, Canada provided surge capacity and defence in depth from day one, long before the US ultimately joined in. In both cases, Canada’s reliable contribution changed the outcome of the war: the Second World War might have turned out quite differently had Canada not helped the UK hold down the island fort. Along with prevailing historical, ethno-cultural, political and economic ties, Canada and Europe share geostrategic interests: in the Arctic with the Nordic countries, and in the Atlantic rim with the UK, France, Spain and Portugal. Although Canada is disproportionately exposed to the consequences of US unilateralism, for Canada, leveraging European power to counterbalance the US is controversial (Haglund 1999). Canada’s changing demographics and trade relationships have oriented Canada away from Europe as the obvious ally and partner in safeguarding Canadian sovereignty. Conversely, Europe has an interest in using its power to assure Canada’s independence so as to limit the latter’s potential overexposure to the hegemonic impulses of the American empire: given the size of Canada’s economy and population, US leverage over Canadian natural, economic and human resources would increase America’s structural leverage, over Europe and the world, by about 10% over today’s American power. Such a situation would ensure its unrivalled status as the premier global superpower, which China alone could not match. In theory then, Canadian sovereignty depends on counterbalancing the US using European power. In practice, since the Second World War, both Canada and Europe have been drafting behind the US, deepening their economic and military reliance on the US, and shifting their strategic gaze away from a Euro-Atlantic community that they have taken for granted. Fixated on the US, both parties have seemingly suffered from amnesia about their bilateral transatlantic geostrategic interdependency. As US geostrategic interests increasingly diverge from those of the EU and Canada, and the US becomes more consumed with domestic (electoral) priorities and structural shifts in geopolitical gravity towards the Indo-Pacific, the relationship between Canada and Europe stands at a cross-roads. To counterbalance the power politics of an emboldened US, Russia and China, Europe and Canada need one another to preserve and uphold the liberal–democratic rules-based international order. This is especially true since the US’s pivot in geopolitical orientation, priorities and resource allocation towards the Indo-Pacific to disrupt an expansionist China that is intent on upending the prevailing international order. The US response to China has been to secure control over critical resources and geostrategic approaches that could render it vulnerable, while ensuring that it remains the world’s largest economy. On the one hand, eyeing natural resources and critical minerals in its proximate vicinity, notably Canada and Greenland, puts the US on a confrontational course with Europe and European interests. On the other, the US is ‘rebalancing’ away from Europe, the European neighbourhood and the Euro-Atlantic community as its priorities, and resources, shift to the Indo-Pacific. As a result, the US is expecting Europe to take on (far) greater responsibility for securing its own political interests and military backyard. In response, some European leaders, notably France, have continued to advocate for greater ‘strategic autonomy’ for Europe—an approach that drew the ire of the first Trump administration and is likely to aggravate Euro-Atlantic tensions—while others, notably Germany, have favoured chequebook diplomacy. This term describes the use of economic aid and investment as a means of attraction as part of soft-power projection (Leuprecht and Hamilton 2020). As the least powerful of the G7, Canada has neither luxury. Without European allies by its side, Canada runs an extreme risk of being left out in the geostrategic cold, with deleterious consequences for both Canada and the EU (Nossal 2023). Within the Euro-Atlantic community, the EU and Canada have not just suffered from mutual benign neglect. In the post–Cold War era, and especially with the advent of the Global War on Terror, Europe’s value to Canada has been declining steadily. Canada’s primary strategic relationship is naturally with the US, with which it shares a continent: co-located with the world’s largest economy, which a free trade agreement has made it ever more dependent on, Canada’s economy and security have become overly reliant on the US. The EU and the vast majority of its member states are also highly—arguably overly—dependent on the security and economic umbrella of the US. The supposed ‘peace dividend’ after the Cold War made NATO members even more dependent on the US. With so great an emphasis on their strategic relationships with the US, the perpendicular Canada–EU edge of the new North Atlantic triangle has never received much attention. What was a sin of omission, is now a sin of commission, by both parties. Friends, without benefits Reorienting Canada–Europe relations—as desirable as it may be—is a tall order. However intellectually appealing and geopolitically necessary, there are many obstacles. First, political leaders on both sides of the Atlantic have neither prioritised bilateral Euro–Canadian relations, nor really taken note of them, whether out of disinterest or because there was no pressing need: to date, 10 EU member countries still have not ratified the Canada–Europe Trade Agreement. In both the Old and the New World, long-term thinking in politics and society is a popular topic of discussion in the salons of the capital cities, but rarely reaches the offices of decision-makers and their advisers. In the end, the untapped potential for more vital, productive and politically successful relations between Canada and Europe is inversely proportional to the actual political will and capital that elites are willing to expend, especially relative to their interest in the US. Second, realignments in international relations require not only a strategic basis but also complementary apparatuses that are willing and able to action new strategic direction. This does not bode well for either Canada or the EU. The Canadian foreign service suffers from a vast backlog of reforms in terms of its structures, vision and mission, which is indicative of a broad decline in the efficiency, effectiveness and objectivity of the Canadian civil service (Savoie 2024) and the steady erosion of the ability of Canada’s federal government to manage civil society. Former Canadian Prime Minister Justin Trudeau’s Senate Reform resulted in the worst of both worlds: it further aggravated the struggle between Ottawa and the provinces over power and resources, and failed to generate greater capacity and interest in foreign and security policy in Canada’s upper chamber. The senators he appointed were preoccupied with domestic policy, and ideologically disinclined towards provincial rights. Recent foreign policy has resulted in six Canadian foreign ministers over the course of a decade; poor preparation and engagement by ministers who tout Canada’s ‘convening power’ but have little actual legitimacy to convene, let alone deliver; and two failed candidacies for a non-permanent seat on the UN Security Council. The foreign services of the EU and its member states, too, seem more preoccupied with themselves—notably with identity politics—than with playing a measurable, active role in shaping bilateral and multilateral external relations. In both the EU and Canada, the visibility and political effectiveness of foreign affairs instruments underperform: spending is unstructured and not optimised for strategic effect. Yet, both sides share a dogmatically defiant adherence to the legacy of a liberal rules-based international order. Indications of upheaval in the transatlantic relationship date back at least to President Obama’s ‘pivot’ to Asia. Realists posit the international system as anarchic, with states competing against one another and striving for survival. That world of power and interest-driven politics stands in increasingly stark contrast to Europe’s and Canada’s liberal institutionalist and values-driven approaches to the world. Third, for a realignment of the Canadian–European relationship at the political level, the impetus must not only originate from their respective civil societies, but also be accepted and actively legitimated in societies whose demographic composition is undergoing rapid change. Yet, legitimation deficits loom large. The EU’s view of the North American subcontinent remains wedded to the bilateral relationship with the US. At the same time, due to the slow implementation of the Canada–EU Trade Agreement, the potential for economic cooperation with EU institutions and member states remains largely unrealised, despite the fact that it has long been far easier for Canada and European allies to work together than for either to work with the US. For example, the extremely low international mobility rate of Canadian students, which is in the single digits, and the relatively few EU students who study in Canada, foreshadow a lack of future bilateral networks for emerging young leaders to tap into (European Commission 2020). Overly rigid certification standards in Canada for European university degrees impede broader student exchanges, labour mobility and more extensive knowledge transfer. Nevertheless, academic networks, that is, joint projects by non-governmental organisations from the EU dedicated to political cooperation with and in Canada, such as that fostered by the local EU delegation in Ottawa, portend positive developments: for example, the Jean Monnet Chairs and a centre that parlays European interest in Canadian universities, and the Europe Canada Network (EUCAnet) which facilitates transatlantic knowledge sharing among experts. Similarly, in the private sector, Canadian chief executives are in short supply in the EU, and potential candidates more often than not prefer to stay in their home country, the US or the Anglosphere, rather than invest in a transatlantic management career and the associated bilateral networks. The fourth obstacle is a direct result of the meagre transatlantic civil society: the prevailing images Canada and Europe have of one another one the one hand, and the failure to ‘bridge’ the transatlantic imaginary on the other. On the one side is Canada, the cosmopolitan, tolerant and fun subcontinent with bears, lakes, mountains and maple syrup, which—post-colonial realities notwithstanding—is considered by most Europeans to be the better North America and which, with its playful lightness, often manages to escape the critical gaze, and not only that of Europeans. On the other side is ‘Fortress’ Europe, with its sprawling bureaucracy, and myriad unmanageable regulations and trade barriers, which seemingly only feigns openness. Perception could not be further from reality. Foreign policy is driven by national interest, yet despite a trajectory of convergence among Euro–Canadian interests, especially of late, for the EU and European countries, Canada remains a low priority: Canada ranks about sixtieth in terms of priority across European states, well behind all the EU member states, and behind many other large and mid-sized powers around the world. Fifth, despite the intent to build closer ties, fundamentally different economic gravitational pulls on both sides persist: owing to bilateral free-trade agreements and globalisation, over the past 30 years, Canada has gradually become more dependent on the US, while the integrative benefits of the EU’s common market have reduced incentives for member states to invest in bilateral relations with Canada. Sobering foreign trade figures for the EU and European states with Canada hold little prospect of change in the foreseeable future: Canada barely cracks the top 10 of European export markets, whereas the EU is actually Canada’s second most important trading partner—but at barely a tenth of Canada’s trade with the US. Finally, if bilateral EU–Canada cooperation is to deepen, parliaments on both sides need to be more proactive and deliberate in transforming the relationship: while political executives, the European Commission and Canada’s government of the day set the agenda, it is the legislatures that legitimate and sustain it. The European Parliament maintains a permanent liaison office in Washington, DC as well as a European Public Law Organization in London and in every member state, but not in Ottawa. The Canada–Europe Parliamentary Association needs to fashion new formats to invigorate and promote relevant political projects among the Canadian, European and national parliaments, perhaps modelled on the robust array of activities undertaken by the NATO Parliamentary Assembly. Strategic friends, with benefits Its position in the new North Atlantic triangle makes Canada an attractive partner for Europe. Rich in natural resources and critical minerals, Canada has the potential to rank among the world’s most prosperous countries. Canada’s three largest export industries are oil, natural gas and agriculture, along with vast resources in potash (for fertiliser) and uranium (nuclear power). Were Canada to build more pipeline capacity to export hydrocarbons, it would have the potential to make Europe (much) more energy and critical-minerals secure, more competitive and prosperous by contributing to lower European energy prices, and less reliant on the US, the Middle East and Russia, especially for liquified natural gas. Canada has the third-largest oil reserves in the world, produces some of the cleanest natural gas and ranks among the world’s top five exporters of agri-food. Yet, Canada’s pipeline infrastructure is overly reliant on the US, which means Canada has to sell the bulk of its oil to the US at a 25% discount on world market prices. Bringing down European energy prices is the most important contribution Canada could be making in standing with Ukraine: Canada’s failure to export hydrocarbons to Europe keeps European energy prices high, which effectively amounts to Canada subsidising Russia’s war of aggression on Ukraine. Europe procures negligible amounts of Canadian oil via US facilities in the Gulf of Mexico, and Canada exports no liquified natural gas to Europe at all, despite Europe now procuring 120 billion cubic metres a year, about half of which comes from the US. Besides an abundance of natural resources and critical minerals, as well as cheap, clean electricity, Canada is also rich in human resources and other intangible assets: it has a concentration of data centres and artificial intelligence infrastructure, it is home to some of the best public universities in the world, it has a more diverse and younger demography than any European ally, and its immigration strategy has historically favoured high skillsets and education. As a result, Canada has long had the most tertiary-qualified workforce among OECD countries (OCED 2022). Although Canada shares common interests, institutions (such as the North American Aerospace Defence Command, NORAD), a continental identity and ideas with the US, as a Westminster parliamentary democracy, its values and political culture are closer to those of Europe than those of the US (Hataley and Leuprecht 2019). Moreover, as the only country that is a member of both the British Commonwealth and La Francophonie, Canada shares key cultural–linguistic attributes with both the UK and France: within the G7, Canada thus offers a counterweight to the Anglo-Saxon world. Europe also remains Canada’s second most important strategic partner, after the US. Owing to its experiences in the two world wars, Canada has a vested interest in Europe’s territorial integrity, political stability, economic prosperity and social harmony, with its like-minded European allies helping Canada to offset US unilateralist propensities. To that effect, NATO is a vital multilateral organisation for Canada; arguably, it is the most important, giving Canada a voice alongside 30 European allies and the US. Although it would be a mistake to equate counterbalancing the US with participation in NATO, Canada has a vested interest in sustaining and preserving NATO for the purpose of bandwagoning with European members to do just that (Jockel and Sokolsky 2021). For this reason, the Canadian Armed Forces has long been postured as an expeditionary organisation, with its primary orientation towards Europe. Via NATO’s external borders, Canada’s boundary with Russia stretches from its border with Alaska via a (disputed) Arctic maritime flank close to 1,000 km in length, to a 1,215 km land boundary in Northern, Central and Eastern Europe. Canada has thus sustained military commitments along much of the Russian flank. The pattern of Canada’s military deployments also shows that the country has vested interests in the Balkans, Europe’s southern flank, in the Mediterranean, the Middle East and North Africa. However, in recent decades, Canada has let its military atrophy to the point where it struggles to meet basic commitments—to NATO, to NORAD and to defending its own northern interests—let alone make new ones. Yet, the US pivot to the Indo-Pacific has created an opportunity for Canada to support US and European interests by backfilling some US capacity across Europe’s central, eastern and southern flanks, thus shoring up NATO, which is of benefit and interest to all member states. Were the EU to become a more independent defence actor, this would pose a serious risk to Canadian sovereignty and Canada’s standing in the world. In theory, Europe has the industrial base and financial capacity to provide for its own defence, security and survival. This, however, comes at a cost, for which European allies have thus far proven unable to muster the political will, although the European Commission’s $800 billion ReArm Europe plan holds promise that political will may be changing. The lack of will is cause for concern in the US, since Europe’s NATO allies have been sourcing about 60% of their arms from the US market. When France tried to take the initiative to achieve greater strategic autonomy for Europe during the first Trump presidency, Trump’s then NATO ambassador promptly dispatched an aggressive cease-and-desist letter (Leuprecht and Hamilton 2020). Although the US has resisted getting entangled in alliances since its first president, George Washington, NATO offers the US important levers. Nowhere in the world does the US invest proportionately less in defence for a higher rate of return. Canada and Europe are better positioned to add value to US military, political and strategic interests, than to try to go it alone individually. As Keohane (1988) famously observed, for the US, NATO is a very efficient and effective collective decision-making mechanism, gathering 30 European countries plus Canada—including some of the world’s top spenders on defence—the UK, Germany and France. Combined, the non-US NATO members spend about US$600 billion on defence (as compared to the US$877 billion by the US). The importance of NATO as an information-sharing and coordination mechanism has grown substantially since the formulation of NATO’s 2022 Strategic Concept, which brought key partners in the Indo-Pacific into the fold, including Australia, Japan, South Korea and New Zealand. Together, these allies and partners spent roughly US$1.7 trillion of a total global defence expenditure of about US$2.44 trillion in 2023. Of course, aggregate expenditures are an inchoate measure of military capability and commitment. While the US can necessarily exert greater pressure on any one country bilaterally, the benefits of NATO decision-making and coordination far outweigh the transaction costs for the US to do so bilaterally across three dozen countries. The reason the US spends as much as it does on its military is to preserve its freedom of action. Ultimately, being able to act unilaterally means never having to rely on others. Nonetheless, even though dispensable, allies are convenient to have as they also bring soft power, money and moral legitimacy. Greater European strategic autonomy is of little interest to the US, outside the NATO framework. The US does, however, have an interest in greater complementarity, capability and effectiveness within the organisation: it wants allies to do more together, on their own, provided they deconflict with the US. As the only other non-European NATO member country, Canada necessarily shares the transatlantic orientation of the US. Canada’s defence relations with Europe thus offer the US a mechanism to fall back on should the EU strive for greater strategic autonomy without coordinating with NATO and, therefore, with US interests. The lesson that the US drew from the Second World War was that, as a superpower, it has global interests. To this end, US unilateralism took on the trappings of a more multilateral approach to global affairs. The US collaborated with European partners and Canada to build the foundations of the post-war security, trade and monetary infrastructure: NATO, the General Agreement on Tariffs and Trade, and the Bretton Woods Accord (which laid the foundations for the International Monetary Fund and the World Bank). This strategic collaboration brought North America and (Western) Europe historically unprecedented security, prosperity and stability. Over time, however, both the European members of NATO and Canada have forgotten that, multilateral trappings aside, the arrangement was born primarily out of US interest. In the aftermath of the two world wars, the US learned that territorial integrity, political stability, collective prosperity and social harmony in and of Europe were in the best interests of its aspirations as a global superpower. The claim to superpower status depended on a degree of control over Europe. Russia has long understood this; the US came to this realisation in the twentieth century; and for a China with global ambitions, this is a relatively recent realisation. For the US, NATO and extended nuclear deterrence are the means to this end; which is why Russia is intent on upending NATO, as both Russia and China aspire to be global players in a multipolar world, rather than regional players under a Pax Americana. Although Canada does not have nuclear arms, its position in North America necessarily means it has a role in assuring extended nuclear deterrence. Russia’s strategic approaches to North America, by way of the Arctic, pass through Canadian airspace. Canada’s gradual commitment to and spending on Arctic security and defence, including NORAD, therefore, are not just about homeland defence, but are also an investment in NATO by means of continental defence writ large (Leuprecht et al. 2018). North American continental defence assures uncompromised latitude for sovereign decision-making in Washington as well as Ottawa. An adversary that can threaten North America with intercontinental ballistic missiles or hypersonic missiles, for instance, could effectively curtail sovereign decision-making that reflects the best interests and legitimate democratic will of Americans or Canadians. That is, an adversary could overtly threaten Ottawa or Washington with an attack if confronted with a political choice that runs counter to its interests. This matters all the more since North American continental security is the bedrock of credible extended nuclear deterrence. An adversary that is able to call the nuclear triad, and especially the second-strike capability, into question would effectively undermine the US security umbrella that spans the Atlantic and Pacific rims. The states that currently rely on US extended deterrence would thus have an incentive to resort to nuclear proliferation to ensure their own survival. Since nuclear proliferation runs counter to European and Canadian interests in regional and global stability, this is one more reason for them to be more strategic about coordinating their contribution to the triangle. Ostensibly, the US does not need Canada to provide North American continental defence: the US has the capacity, capabilities and resources to go it alone. However, cutting Canada out of North American strategic defence would significantly reduce NATO’s leverage over collective defence. Europe and European allies would be left to deal with the US alone; Canada’s currency on the continent and across the Atlantic would be greatly diminished. The coincidence of NATO’s pivot to North American Arctic defence and Obama’s pivot to the Indo-Pacific is no accident. Certainly, there is an operational requirement to coordinate with NORAD on an integrated all-domain layered Arctic defence along NATO’s entire frontier with Russia. But this change also highlighted that NATO is, first and foremost, a political—not a military—alliance. Obama’s pivot necessarily meant less US attention paid to, input and interest in NATO; thus, it was in NATO’s best interest to show the flag in America’s backyard. NATO has not one but three pillars: Europe, North America and the transatlantic area. How we imagine the third matters for how the US imagines NATO’s role in the Atlantic: either, as popularised by Walter Lippman (1917), as an ‘ocean highway’ that by geography, culture and necessity connects two continental ‘communities’; or, in a triumph of politics over geography, as theorised by Alan Henrikson (1980), as a ‘lake’ and ‘inland sea’ that unifies rather than divides. Within the North Atlantic triangle, Canada can bridge the divide of a vast ocean, making it into a much more manageable inland sea. Canada’s geographic continental co-location with the US gives Europe limited, but strategically indispensable, leverage beyond Washington through which to influence the second and third pillars of NATO, using defence and diplomacy to counter US unilateralist proclivities. Conclusion For Canada to become even more (over)dependent on the US than it already is runs fundamentally counter to European interests. The EU has a vested interest in Canada maintaining sovereign control over its resources, political decision-making and defence. Conversely, the prospect of greater European strategic autonomy in defence outside of the NATO framework poses a potentially existential risk to Canada, rendering it more dependent on the US, and thus reducing its value to allies and partners and, by extension, its standing in the world. If this were to happen, Canada would face much higher transaction costs more akin to those of its partners in the Indo-Pacific, having to invest a lot more in foreign policy and defence for greatly diminished returns. Canadian sovereignty is a Trump card that the US is now playing to maximise its power and range of unilateral action in a world where its hegemony is under threat. Europe and Canada used to be discretionary friends. Now is the time to realise mutual benefits for strategic effect. Canada can support Europe’s interests in energy security, critical minerals, defence and defence in depth. In return, the EU can bolster Canadian political and economic sovereignty. Partnering with the EU is also the most efficient and effective way for Canada to gain greater independence from the US in defence and defence-industrial capacity. Greater, more autonomous military-industrial capacity would enable both Canada and the EU to build sustainable capabilities and commit to collective defence. Such a strategy would have a dual signalling purpose: of military deterrence to Russia, and of political and economic deterrence to the US. Canada and the EU should not just protect but actually promote their military, political and economic interests. Failing to be strategic about collective transatlantic security and the Euro-Atlantic community within the new North American triangle increases the risk that Canada and Europe will be abandoned by the US. Lord Ismay had a premonition should Europe and Canada fail to shape their future: Russia in Europe, America out, under German leadership. ORCID iDChristian Leuprecht https://orcid.org/0000-0001-9498-4749ReferencesBrebner J. B. (1966). North Atlantic triangle: The interplay of Canada, the United States and Great Britain. Toronto: McClelland and Stewart.European Commission. (2020). ERASMUS+ for higher education in Canada. https://ec.europa.eu/assets/eac/erasmus-plus/factsheets/america-caribbean/canada_erasmusplus_2020.pdf. Accessed 20 March 2025.Haglund D. (1999). The North American triangle revisited: (Geo)political metaphor and the logic of Canadian foreign policy. American Review of Canadian Studies, 29(2), 211–35. Crossref.Haglund D. (2025). Brebner’s North Atlantic Triangle at 80: A (second) retrospective look at a retrospective book. London Journal of Canadian Studies, 31(1), 93–119. https://www.queensu.ca/politics/sites/polswww/files/uploaded_files/Selected%20Publications/LJCS%20Second%20Brebner%20Retrospective.pdf. Accessed 24 April 2025.Hataley T., Leuprecht C. (2019). Bilateral coordination of border security, intelligence sharing, counter-terrorism, and counter-radicalization. In Carment D., Sands C. (eds.), Canada–US relations: Sovereignty or shared institutions? (pp. 87–104). Basingstoke: Palgrave Macmillan. Crossref.Henrikson A. K. (1980). The geographical mental maps of American foreign policy makers. International Political Science Review, 1(4), 495–530. Crossref.Jockel J. J., Sokolsky J. J. (2021). Canada in NATO: 1949–2019. Montreal: McGill-Queen’s University Press. Crossref.Keohane R. (1988). Alliances, threats, and the uses of neorealism. International Security, 13(1), 169–76. Crossref.Leuprecht C., Hamilton R. (2020). New opportunities in common security and defence policy: Joining PESCO. In Chaban N., Knodt M. (eds.), ‘New opportunities for the Canada–EU strategic partnership’, Special issue, Australian and New Zealand Journal of European Studies, 11(3), 78–94. https://www.esaanz.org.au/wp-content/uploads/2020/02/Leuprecht_Hamilton-1.pdf. Accessed 23 April 2025.Leuprecht C., Sokolsky J. J., Hughes T. (2018). North American strategic defence in the 21st century: Security and sovereignty in an uncertain world. Cham: Springer. Crossref.Lippmann W. (1917). In Defence of the Atlantic World. The New Republic, 10(120), 59-61.North Atlantic Treaty. (1949). Washington, DC, 4 April 1949. UNTS 34, 243.NATO. (2025). The Secretary General’s annual report, 2024. https://www.nato.int/nato_static_fl2014/assets/pdf/2025/4/pdf/sgar24-en.pdf. Accessed 9 May 2025.Nossal K. R. (2023). Canada alone: Navigating the post-American world. Toronto: Dundurn Press.OECD. (2022). Educational attainment. https://www.oecd.org/en/topics/sub-issues/education-attainment.html. Accessed 20 March 2025.Rodman P. W. (1995). NATO’s role in a new European security order. NATO Working Paper 95.2. https://www.nato.int/acad/conf/future95/rodman.htm. Accessed 23 April 2025.Savoie D. (2024). Speaking truth to Canadians about their public service. Montreal: McGill-Queen’s University Press.Von der Leyen U. (@vonderleyen). (2025). Congratulations to @MarkJCarney on becoming Canada’s next Prime Minister. X. 14 March, 3.28 pm. https://x.com/vonderleyen/status/1900569759378235851. Accessed 16 April 2025.

Diplomacy
Classification of the countries according to the world-system analysis of I. Wallerstein: core, semi-periphery and periphery.

Reflections on the modern world-system from a decolonial perspective

by Larissa Salas Duarte

Abstract This paper analyzes, from Immanuel Wallerstein's Analysis of the World – System, an introduction, the emergence of the modern world – system, the permanence of the colonial logic in the modern capitalist world-system from a decolonial approach. It examines how the center – periphery structure has determined the economic, political and epistemic dynamics at the global level. Through this approach we study how coloniality has influenced the construction of knowledge. It also analyzes the impact of this structure on the recognition of States and the negotiation of international treaties, showing how Western power has conditioned the legitimacy and autonomy of peripheral nations. It also addresses the persistence of the center-periphery logic in local relations, as well as in gender and racial inequality, highlighting the role of anti-systemic movements in the struggle against these structures. It concludes that, although colonial dynamics continue to operate through debt, extractivism and the imposition of political models, decolonial perspectives offer tools to make visible and resist them. Introduction This paper will analyze the dynamics of the current international system based on the work “World-Systems Analysis: An Introduction – The Rise of the Modern World-System” by Immanuel Wallerstein. In it, Wallerstein (2005) argues that the modern capitalist world-system has structured the global order since the 16th century, consolidating a hierarchical division between the center and the periphery. This division has not only shaped economic and political dynamics but has also established patterns of domination and dependency that persist to this day. The colonial expansion of European powers not only guaranteed access to resources and markets but also legitimized a system of exploitation based on racism and the hierarchization of colonized peoples. The decolonial perspective of Walter Mignolo (2013) will be adopted, which posits that this is a political and epistemic project aimed at dismantling the colonial matrix of power that sustains Western modernity. From this framework, the article will analyze how colonial logic continues to operate in the capitalist world-system through the economic and political subordination of the peripheries. It will also examine the impact of the colonial worldview on knowledge production during the 18th and 19th centuries, as well as the reproduction of the center–periphery dynamic in the recognition of states during the 20th century and in the negotiation of international treaties during the 21st century. Likewise, it will address how this dynamic manifests not only internationally but also within local structures, perpetuating inequalities expressed in labor, gender, and racial relations today. This work seeks to provide a critical perspective on the persistence of colonial logic in the modern capitalist world-system, emphasizing the need to rethink power structures from a decolonial perspective that makes visible and vindicates the subaltern voices that have been historically silenced. Development Colonial Logic in the Capitalist World-System In his work “World-Systems Analysis: An Introduction – The Rise of the Modern World-System”, Wallerstein seeks to understand the structure and dynamics of the world-system, taking the 16th century as the starting point —a period when the conquests of the territories we now know as the Americas took place. The colonial period clearly illustrates the core–periphery dynamic (Wallerstein, 2005), as the Spanish, British, and Portuguese empires engaged in the extraction of resources from their colonies, while colonized peoples endured oppression and racism to which they would be condemned for centuries. This oppression brought significant benefits to the modern world-system, as it enabled massive capital accumulation — but exclusively in the core. This was because the colonial process built peripheral economies around the needs of the core, forcing them into subordination to the interests of the global market, generating dependency and underdevelopment. Quijano and Wallerstein (1992) argue that “[…] ethnicity was the inevitable cultural consequence of coloniality. It delineated the social boundaries corresponding to the division of labor” (p. 585). Due to the colonial period, the modern capitalist world-system laid its foundations and strengthened its market-based economic model through racism and hierarchization — circumstances that have legitimized the exploitation and domination of non-European peoples throughout history. Control over the resources of peripheral states by core states has endured to this day, along with the imposition of Western production and consumption models that perpetuate inequality. The colonial period’s greatest legacy remains systemic violence and subalternity. On this basis, it is important to analyze this work from a decolonial perspective. For Walter Mignolo (2013), “decoloniality is not a concept, but a practice and a political, epistemic, and ethical project aimed at disengaging from the colonial matrix of power that sustains Western modernity” (p. 21). This perspective also draws on the notion of epistemic subalternity, which refers to the experiences and knowledge of colonized and subaltern peoples that are rendered invisible, devalued, or reduced to particular cases — without being considered an integral part of the world-system (Mora, 2008). Coloniality in the Construction of Knowledge At the end of the 18th century, the modern university emerged, dividing its studies into two faculties: sciences and humanities. In the 19th century, another division took place within the humanities, opening the space for the study of social sciences, which would later also be split — on one side, those leaning toward scientism, and on the other, toward the humanistic approach. This led to the creation of new disciplines: economics, political science, and sociology (Wallerstein, 2005). These new sciences built their worldview and knowledge construction from a Eurocentric and colonialist perspective, thus assigning labels to peoples different from their own. These new sciences categorized the study of the world’s peoples into three groups. First, civilized peoples — Western nations, considered as such because they believed their social and political organization systems were the most advanced. Second, the high civilizations — India, China, Persia, and the Arab world — classified in this way because they possessed writing, religion, language, and customs. They were regarded as civilized peoples but not modern, under the previously mentioned concept. This category gave rise to orientalist scholars, with a Eurocentric and exoticizing view. Finally, the so-called primitive peoples — those who, from the colonial perspective, lacked writing, religion, language, and customs. This perception of the “uncivilized other” was used to justify colonial processes in the periphery, which even today enable the reproduction of exploitative and racist practices. Segregation in the construction of knowledge, imbued with colonial and Eurocentric thought, is based on criticizing the behavior of these peoples and on what should be changed about them (Zapata, 2008). The Eurocentric conception asserts categorically that the modus vivendi of these peoples is not appropriate according to Western standards. Although this way of thinking has evolved over time, its essence remains the same and has led Western countries to grant themselves the power to change the way of life of these peoples through invasions, neocolonial processes, and violent interventions via military force or economic interference. The Center and the Periphery in the Recognition of States As previously mentioned, Europe established a correspondence between modernity and the West; this includes the institution of the nation-state as its derived product (Zapata, 2008). From the Eurocentric perspective, for civilizations to be considered nation-states, they must possess four characteristics: territory, population, government, and sovereignty. In Public International Law, sovereign states are the main subjects of international relations, and for a state to be recognized as such, it must be acknowledged by the majority of states that are part of the international system. The center–periphery concept operates both economically and politically, which can be observed when a new state seeks recognition from members of the international system. The recognition granted by a state from the center carries more weight than that from the periphery, since states in the center, with greater political and economic capacity, influence the decisions of their allies — both within the center and the periphery. This need for state recognition has been extremely beneficial for the modern capitalist world-system, as political and economic interdependence, along with the perpetuation of power in the countries of the center — particularly those belonging to the West — ensures that they act, whether in matters of state recognition, political agendas, or economic issues, entirely to their own advantage, disregarding the interests of “the other.” From a decolonial perspective, state recognition is a Western construct designed to maintain control over who meets the imposed criteria to belong to the Eurocentric international system. These criteria clearly do not align with the social organization of all non-Western civilizations but were conceived in such a way as to subordinate them to the needs of the world-system, which inevitably serves the interests of Western core states. This can be exemplified by the case of Taiwan. In 1971, the Kuomintang lost recognition from the government of mainland China, and starting in 1985, Taiwan’s government sought to strengthen diplomatic relations with states that already recognized it and to develop relations with those that did not, with the aim of obtaining their approval (Connelly, 2014). Despite the passage of time, recognition of Taiwan as a state by core countries seems inconvenient for them, likely due to the ongoing political dispute between Taiwan and China. As a result, only 14 peripheral states recognize it as such. Despite this, the Northeast Asian country maintains unofficial relations with 47 states and the European Union, for purely economic reasons. The Modern Capitalist World-System in International Treaties It is worth mentioning that the idea of the center–periphery permeates the negotiation of international agreements. As mentioned earlier, the so-called “primitive peoples” were civilizations that, from the Eurocentric perspective of knowledge, lacked writing, religion, languages, or customs. This idea persisted into the 20th century, as reflected in the Statute of the International Court of Justice, which in Chapter II, Article 38, states that “the Court, whose function is to decide in accordance with international law such disputes as are submitted to it, shall apply: […] the general principles of law recognized by civilized nations” (UN, 1945). The Eurocentric conception of a civilized nation in the postwar period was based on the type of government existing in each state. Thus, countries without a democratic political system were not considered civilized nations. This conception forced nations not to determine their own system of government, but rather to adhere to the one imposed by the Western international system in order to be accepted, disregarding their customs and traditions. A more current example of the imposition of Eurocentric ideas on systems of government is the signing of the Free Trade Agreement between the European Union and Mexico in 2000. Ratification of the trade agreement was conditioned on what they called the “democratic clause.” The agreement was not ratified by the Italian government until July 3 of that year, when the presidential elections resulted in the victory of Vicente Fox (Villegas, 2001). On the same day, the European Commission’s spokesperson, Gunnar Wiegand, said in his press release: “A historic vote has taken place in Mexico. The Commission congratulates the Mexican people for exercising their democratic rights in such a mature and exemplary manner” (Caracol Radio, 2000). The spokesperson’s mention of the Mexican people’s maturity refers to the notion that, in the past, the exercise of democracy had not possessed this quality — an observation made from a paternalistic and Eurocentric perspective. Had the election results been different, Mexico could have faced the possibility of the European Union “imposing sanctions as a reaction to the verification of interruptions in democratic processes, which, in addition to affecting development, constitute a threat to international peace and security” (Cordero Galdós, 2002, p. 128). The criticism of the imposition of the “democratic clause” centers on the recurring practice of requiring peripheral states to adapt to the political ideologies and economic needs of the core. The Reproduction of the Center–Periphery Dynamic at the Local Level As mentioned in the development of this work, the effects of colonialism persist across all systems and subsystems through the coloniality of power, knowledge, and being, the latter of which will be addressed later. This is manifested in global inequalities, the exploitation of natural resources in peripheral countries, and the persistence of racist and Eurocentric power structures. From Wallerstein’s perspective, the world-system is a historical structure which, although in constant transformation, reproduces power relations and inequalities over time through the domination of the core and the exploitation of the peripheries (Wallerstein, 2005). Thus, the world-system has evolved in several ways; one of these is the introduction of the term semi-periphery into the analysis. During the colonial period, there were only core and peripheral nations. Over the centuries, however, semi-peripheral states have emerged — nations that not only extract raw materials or engage in manufacturing but also have the capacity to produce cutting-edge technology (Wallerstein, 2005). This positions them in a more privileged place than peripheral countries in the international system. Yet, despite appearing to have overcome the systemic oppression that once kept them in the periphery, the colonial mindset within their institutions perpetuates their subordination to the core. Good examples of semi-peripheral states in Latin America are Mexico and Brazil. Both countries were victims of the exploitation and systemic violence of colonialism. This shaped the development of their societies and economies for centuries. Even after achieving independence and building productive and economic systems that placed them in the semi-periphery, their economic progress was built on a legacy of oppression and racism that continues to reproduce the abuses described. In this way, the concept of core and periphery permeates social and family subsystems. This can be observed in labor relations, where capitalists depend on the core–periphery or superior–subordinate relationship to sustain the production model. It is also evident in social relations, which Wallerstein refers to as anti-systemic movements. Society perpetuates the core–periphery principle by placing women and racialized communities in the periphery, while men — especially white men with power — occupy the core. Anti-systemic movements paved the way for the struggle against these inequalities, giving rise, for example, to feminist and Indigenous movements. These have led to the development of theoretical perspectives such as decolonial feminism, which adds analytical variables to the decolonial perspective. According to Yuderkys Espinosa, it emerges from “[…] a subaltern, non-hegemonic voice […] anti-colonial, anti-imperialist, anti-capitalist. […] Its aim is to question and oppose an imperial and racist rationale” (Barroso, 2014, p. 2). Conclusions The modern capitalist world-system has managed to sustain and expand itself thanks to colonial structures that, far from disappearing with decolonization processes, have mutated and perpetuated dynamics of domination and dependence. As discussed, the core–periphery logic has been key to the organization of the international system, not only in economic terms but also in the construction of knowledge, the legitimization of states, the negotiation of international agreements, and the imposition of political and social models from Western hegemony. The colonial legacy remains in the structural subordination of peripheral economies to the interests of the core, the imposition of international norms that favor core countries, and the persistence of racialized and gender-based inequalities within peripheral states themselves. This scheme has not only ensured capital accumulation in the core but has also limited the self-determination of historically colonized peoples, while normalizing their exclusion from political, economic, and epistemic spheres. At the international level, neocolonialism operates through mechanisms such as external debt, unequal trade agreements, and political interference in the internal affairs of peripheral states. In addition, extractivism and territorial dispossession continue to reproduce colonial logics, affecting both peripheral countries and Indigenous communities as well as other historically marginalized groups. In this sense, the modern capitalist world-system not only perpetuates economic exploitation but also reinforces power structures based on racism, sexism, and subalternity. However, as decolonial perspectives point out, the coloniality of power is not an immutable phenomenon. This approach questions the structures of power and knowledge inherited from colonization, seeking to deconstruct Eurocentric discourses and make visible the voices and experiences of the subaltern. Anti-systemic movements have sought to challenge these structures, reclaiming the agency of subaltern peoples and promoting the construction of alternatives that confront the colonial matrix of power. Particularly, decolonial feminism has emerged as a key critique of the intersection between patriarchy and coloniality, showing how women — especially racialized women — have been relegated to the periphery of the system. Thus, analyzing the world-system from a decolonial perspective allows us not only to understand the continuity of structures of domination but also to recognize the spaces of resistance and contestation that emerge within it. In conclusion, the decolonial perspective enables us to rethink the modern world-system from a critical standpoint, recognizing structural inequalities and the need to transform the power dynamics that perpetuate the domination of the core over the periphery. Decolonialism makes it possible to redefine notions of progress, development, and modernity from a perspective free from colonial stereotypes and hierarchies, recognizing the diversity of knowledge and worldviews of Indigenous peoples. It seeks to decentralize power by rethinking and decolonizing power relations between the core and the periphery, between the state and local communities, aiming for a more equitable distribution of resources and benefits. It is essential to make visible and vindicate the subaltern voices that have been historically silenced, promoting an epistemic and political shift that dismantles the foundations of this system and paves the way for fairer and more inclusive models. References Andrade, V. M. (diciembre, 2019). La Teoría Crítica y el pensamiento decolonial: hacia un proyecto emancipatorio post–occidental. Revista Mexicana de Ciencias Políticas y Sociales, 65(238). https://doi.org/10.22201/fcpys.2448492xe.2020.238.67363Barroso, M. (2014). Feminismo decolonial: crítica y propuesta. Revista Estudos Feministas, 22(1), 1–15.Caracol Radio. (3 de julio, 2000). Europa felicita a mexicano por votación ejemplar. Caracol Radio. https://caracol.com.co/radio/2000/07/03/nacional/0962604000_023535.htmlConnelly, M. (2014). Historia de Taiwán. El Colegio de México.Corderos Galdós, H. (agosto, 2002). La denominada cláusula democrática como modalidad de condicionamiento en los Programas de Ayuda al Desarrollo de la Unión Europea. Agenda Internacional, (16), 123–136. https://doi.org/10.18800/agenda.200201.007Donoso Miranda, P. V. (diciembre, 2014). Pensamiento decolonial en Walter Mignolo: América Latina: ¿transformación de la geopolítica del conocimiento? Temas de Nuestra América, 30(56), 45–56.Mignolo, W. D. (2013). Geopolítica de la sensibilidad y del conocimiento: Sobre (de)colonialidad, pensamiento fronterizo y desobediencia epistémica. Revista de Filosofía, 80(1), 7–23.Mora, M. (2008). Decolonizing politics: Zapatista indigenous autonomy in an era of neoliberal governance and low intensity warfare [Tesis doctoral, The University of Texas at Austin]. https://repositories.lib.utexas.edu/server/api/core/bitstreams/68ba681a-a78b-4ddd-9441-32a92b0edf5c/contentOrganización de las Naciones Unidas (1945). Estatuto de la Corte Internacional de Justicia. Carta de las Naciones Unidas.Portal Académico CCH (2017). Historia de México 1, Unidad 4, Intervenciones extranjeras: Inglaterra. Portal Académico CCH. https://e1.portalacademico.cch.unam.mx/alumno/historiademexico1/unidad4/intervencionesextranjeras/inglaterra#:~:text=Razones%20suficientes%20para%20reconocer%20a,poner%20freno%20al%20expansionismo%20estadounidense.Quijano, A., & Wallerstein, I. (1992). La americanidad como concepto, o América en el moderno sistema mundial. Revista Internacional de Ciencias Sociales, XLIV(4), 583–592.Rojas, V. M. (2010). Capítulo séptimo. El reconocimiento internacional. En Rojas, V. M. Derecho internacional público (pp. 61–65). Nostras Ediciones. https://archivos.juridicas.unam.mx/www/bjv/libros/7/3262/3.pdfRomero Losacco, J. (diciembre, 2020). El sistema-mundo más allá de 1492: modernidad, cristiandad y colonialidad: aproximación al giro historiográfico decolonial. Tabula Rasa, (36), 355–376. https://doi.org/10.25058/20112742.n36.14Ruiz, S. M. (mayo, 2019). La colonialidad y el sistema-mundo moderno colonial. Un diálogo entre Quijano y Wallerstein. Espirales, 3(1), 189–197.Villegas, F. G. (2001). México y la Unión Europea en el Sexenio de Zedillo. Foro Internacional, 41(166), 819–839.Wallerstein, I. (2005). Análisis de sistemas-mundo: una introducción. Siglo XXI.Zapata Silva, C. (2008). Edward Said y la otredad cultural. Atenea, (498), 55–73. http://dx.doi.org/10.4067/S0718-04622008000200005

Energy & Economics
Los Angeles, CA USA - May 23 2025 : Donald Trump on Climate Change, Drill Baby Drill

The temporal logic of Trump II’s climate denialism

by Heikki Patomäki

In a landmark advisory opinion, the International Court of Justice (ICJ) ruled on 23 July 2025 that all UN member states have legal obligations under international law to address climate change, which the court described as an existential threat to life on Earth. Powerful countries too must be held responsible for their current emissions and past inaction. Possibly in anticipation of such a ruling, Chris Wright, the US Secretary of Energy and former chief executive of Liberty Energy (an oilfield services company), published an article in The Economist a week earlier, arguing that “climate change is a by-product of progress, not an existential crisis”. Whereas the ICJ relied primarily on the IPCC reports, “which participants agree constitute the best available science on the causes, nature and consequences of climate change”, Wright’s view is based on a particular temporal logic.  According to the IPCC reports, most greenhouse gases come from burning fossil fuels, with additional emissions from agriculture, deforestation, industry, and waste. They drive global warming, which is projected to reach 1.5°C between 2021 and 2040, with 2°C likely to follow. Even 1.5°C is not considered safe for most nations, communities, and ecosystems, and according to IPCC, only deep, rapid, and sustained emission cuts can slow warming and reduce the escalating risks and damages. The 2024 state of the climate report, published in BioScience, presents even more worrying assessments. Among other things, the report cites surveys indicating that nearly 80% of these scientists anticipate global temperatures increasing by at least 2.5°C above preindustrial levels by the end of the century, and nearly half of them foresee a rise of at least 3°C.  Wright’s article suggests that the issue of amplifying doubt about climate change may have little to do with engagement with science but rather reflects a deeper temporal logic. This logic is rooted in a Whiggish account of progress to date, a resistance to the reality of the future and the desire for nostalgic restoration. I will explain these elements one by one. The first tier: Whiggism Wright disagrees with most scientific anticipations. His views are likely representative not only of the Trump II administration but also of conservative right-wing populism more generally. It is difficult to understand their climate denialism without an analysis of their views on time and temporality. The most important question concerns the reality of the future. At the first level, Wright provides a kind of textbook example of Whig history, portraying progress as linear, inevitable, and driven by liberal values. Herbert Butterfield introduced the idea of Whig history in his influential 1931 book The Whig Interpretation of History as a critique of a specific way of writing history that he regarded as flawed and intellectually dishonest. Focusing on inevitable progress distorts historical analysis by promoting simplified cause-and-effect reasoning and selective storytelling, emphasising present-day evaluation (and glorification) over understanding the real causes of historical change. In a Whiggish manner, Wright claims that the last 200 years have seen two big changes to the human condition: “human liberty” and affordable energy. As a result of these two things, life expectancy has nearly doubled, and the percentage of people living in extreme poverty has dropped from 90% to 10%. However, Wright’s argumentation is based on non-contextual and, in that sense, timeless representations of the world, despite its “progressivism”.  For example, consider the claim that extreme poverty has dropped from 90% to 10%. It is based on using a fixed dollar threshold, such as USD 2 per day, to measure poverty over 200 years. This is misleading because most people in the 19th century lived in largely non-monetised economies where subsistence needs were met outside of market exchange, and monetary income was minimal or irrelevant. These metrics also obscure shifting and context-bound definitions of basic needs; rely on incomplete historical data; and ignore the role of colonial dispossession and structural inequality in shaping global poverty. While it is true that life expectancy has doubled, largely due to improvements in hygiene and healthcare, the idea that extreme poverty has plummeted from 90% to under 10% also ignores the fact that the global population has grown eightfold, affecting the entire Earth system with devastating ecological and geological consequences. It further ignores that the rise in life expectancy and poverty reduction has come not only from liberalism or economic growth more generally but from ethical and political struggles and public health interventions. Often, these struggles have been fought in the name of socialism and won despite capitalist incentives, market mechanisms, and related political forces. The second tier: blockism At a deeper level, Wright’s views seem to presuppose what Roy Bhaskar calls “blockism”: the postulation of a simultaneous conjunctive totality of all events. This may sound abstract, but it has been a common assumption among many 20th-century physicists and philosophers that the universe forms a static, closed totality. This view stems from an atomist ontology, where individuals are seen as abstract, events follow regular patterns, time is viewed as spatial, and laws that can be expressed mathematically are considered reversible.  In such a conception, time appears as just another “spatial” dimension. According to the block universe model, the past, present, and future all exist equally and tenselessly. The universe is imagined as a four-dimensional geometric object, like a “block” of spacetime. Time is not something that “flows” or “passes”; instead, all moments are spatially extended points in a timeless whole. Blockism suggests that change and becoming are not truly real but are simply parts of our subjective experience.  The real challenge is to reconcile Whiggism and blockism. Wright is not a theorist and might not need to worry about the coherence of his ideas, but the issue is that Whiggism assumes movement, direction, and a normatively positive evolution of change, whereas the block universe denies real temporality: there is no becoming, no novelty, no agency – only timeless existence. Some versions of the block universe attempt to preserve development by proposing that the block grows. The “block” expands as new events are added to reality, but in this view, the present defines the upper boundary of the block, and the future is not truly real. This appears to be consistent with what Wright says about climate change. Everything he has to say about global warming is limited to one short paragraph: We will treat climate change as what it is: not an existential crisis but a real, physical phenomenon that is a by-product of progress. Yes, atmospheric CO2 has increased over time – but so has life expectancy. Billions of people have been lifted out of poverty. Modern medicine, telecommunications and global transportation became possible. I am willing to take the modest negative trade-off for this legacy of human advancement. From the ICJ’s perspective, this interpretation is dreadful, as the current impacts of climate change are already at odds with the rights of many groups of people. It also exhibits basic injustice, as many of the groups that suffer the most from these impacts have done next to nothing to cause the problem. However, here I am mostly concerned with the temporality of Wright’s claims. This temporality is a combination of Whiggism and blockism: so far, history has exhibited progress, but time and processes stop here, in our present moment. The third tier: nostalgia Wright’s view of time is not limited to an ultimately incoherent combination of Whiggism and blockism. There is also more than a mere hint of nostalgia. This is evident in the appeal of a Golden Age at the outset of his article: I am honoured to advance President Donald Trump’s policy of bettering lives through unleashing a golden age of energy dominance – both at home and around the world. The appeal to the Golden Age somewhat contradicts Whiggism. From a nostalgic perspective, it seems that society has been on a downward trajectory instead of progressing. In other words, regression must be possible. Within an overall Whiggish narrative, one can blame certain actors, such as the Democrats in the US political context, for causing moral and political decline.  A nationalist narrative of a “golden age” and a return to a better past (“making us great again”) is essentially connected to the denial of planetary-scale problems, such as climate change, that would clearly require novel global responses. Climate change from a real-time perspective By merging Whiggism with a block-universe ontology (either static or growing), one ends up with a pseudo-historicism that speaks of “progress” while erasing real time. In a way, such a view “performs change” through a highly selective historical narrative, while denying the ontological preconditions of real change. Real change – emergence, transformation, causation – requires a temporal ontology, where the future is real though not yet fully determined. Thus, there is no mention of global emissions that have continued to rise, their delayed effects, feedback loops, or emergent risks given multiple processes of intertwined changes. Are the basic IPCC models based on real historical time? IPCC models often treat the climate system as a bounded system with internally consistent and deterministic dynamics. The IPCC relies on modelling and uses Bayesian methods to assess uncertainties in climate projections. Bayesian statistics involve updating the probability of a hypothesis as more evidence becomes available, based on prior knowledge (priors) and new data (likelihoods). Such an approach tends to be conservative (based on moving averages, for example) and assumes the quantifiability of uncertainty. It may also convey illusory precision, especially when the underlying models or data are uncertain or incomplete. The IPCC models nonetheless indicate – in contrast to Wright – that the future is real, though the future is approached in a somewhat cautious and deterministic manner. However, many climate scientists go beyond the IPCC consensus by assuming that global heating may reach 2.5 °C or even above 3 °C degree warming by the end of the century.  From a critical scientific realist viewpoint, even such anticipations may be too circumspect. Assuming exponential growth (involving cascading events etc.) and given that recent data shows a rise from 1.0°C to 1.5°C in just 15 years (actual data taken on an annual basis, not moving averages), and using this as a basis for anticipating the future, we seem likely to reach the 2 °C mark in the 2040s and the 3 °C mark in the 2060s.  The plausibility of anticipations depends significantly on how the real openness of the future is treated. Anticipations are reflexive and can shape the future. Real time and historical change involves human freedom and ethics. The evolving universe, where time is real, is stratified, processual, and open-ended. Time involves genuine processes, real possibilities, agency, and emergent structures. Such characteristics indicate that the future is not predetermined but can be shaped by transformative agency.  To sum up, from a real historical time perspective, Wright’s combination of Whiggism, blockism, and nostalgia is a recipe for reactionary politics. Glorifying the present, thinking in a timeless way, and longing for a golden age of the past can play a major role in bringing about a dystopian planetary future.

Energy & Economics
Amsterdam, The Netherlands - Thursday, August 27, 2020 - Photo of early edition book, Adam Smith The Wealth of Nations

The Relationship Between Energy and Capital: Insights from The Wealth of Nations

by Simon Mair

Abstract To deliver low-carbon transitions, we must understand the dynamics of capital. To this end, I develop a theory of energy-capital relations by reading Adam Smith’s The Wealth of Nations from an energy-analysis perspective. I argue that, for Smith, capital is any resource used to support production with the intention of generating profits through market exchange. In The Wealth of Nations, capital enables access to new sources of energy and increases energy efficiency. This theory of energy-capital relations explains trends seen in historical energy data: because it is profit driven, capital does not save energy, it redirects it to new uses. This suggests that low-carbon investment can only enable a low-carbon transition if coupled to a systematic challenge to the profit drive.JEL Classification: B12, O44, P18, Q43, Q57Keywordseconomic growth, low-carbon transitions, Adam Smith, history of economic thought, capital, energy, capitalism 1. Introduction: Energy, Capital and Low-Carbon Transitions Under Capitalism To date, the green rhetoric of states and companies has not led to meaningful reductions in carbon emissions. In absolute terms, annual global carbon emissions from fossil fuels increased from ~6 gigatons of carbon per year in 1990 to ~10 gigatons of carbon per year in 2022 (Friedlingstein et al. 2023). Carbon emissions are largely driven by the energy system that supports the capitalist economy, and there is no evidence that this is decarbonizing at the global scale. In 2020, fossil fuels accounted for around 80 percent of total world energy supply, the same figure as in 1990 (IEA 2022). In 2022 carbon emissions from fossil fuels accounted for around 90 percent of total global carbon emissions, up from 80 percent in 1990 (Friedlingstein et al. 2023). Carbon emissions from energy and industrial processes hit an all-time high in 2023 (IEA 2024). To change this increasingly dire picture, it is essential that we understand the economic drivers of emissions, and what economic changes are needed to reverse current trends. There is disagreement over the extent and nature of economic change needed to facilitate a low-carbon energy transition. Radical economists agree that the global reliance on fossil fuels will require going beyond market-based solutions (Li 2011; Pianta and Lucchese 2020; Pollin 2019). But this still leaves us with a broad spectrum of options (Chester 2014). Can a low-carbon transition be implemented within a broadly capitalist framework if it is guided by an interventionist industrial strategy (Pollin 2015)? Or does it require changes to fundamental capitalist dynamics (Davis 2019; Riley 2023)? To cast new light on these debates, I take a step back from the immediate issues and take a history of economic thought approach. To this end, I explore the relationship between capital and energy in Adam Smith’s (1975) The Wealth of Nations. I use the resulting view of energy-capital relations to put forward an explanation of how energy use has developed under capitalism, and to explain why a low-carbon transition is unlikely without addressing core capitalist dynamics. The decision to develop the analysis of energy-capital relations from The Wealth of Nations is grounded in the more general epistemological claim that returning to older works of economic theory is a useful way to conduct economic analysis. Blaug (1990) reminds us that all current economic theory is built from seldom read historical texts, and historians of economic thought have argued that revisiting these texts offers the opportunity to uncover new ways of interpreting key ideas, providing theoretical context that may have been forgotten (Bögenhold 2021; Schumpeter 1954). Additionally, actively engaging with historical thought presents the possibility for moments of creativity as old and new ideas are brought together. For example, Mair, Druckman, and Jackson (2020) use an analysis of economic ideas in utopian texts from the twelfth to nineteenth centuries to develop a vision of work in a post-growth future, and Stratford (2020, 2023) develops a theory of rents and resource extraction grounded in an analysis of the historical evolution of the concept of rent. The general approach of critical engagement with history of thought is perhaps best developed in the Marxist literature, where a substantive body of work draws on Marx’s writings to critically explore environment-economy relationships (e.g., Malm 2016; Moore 2017; Pirgmaier 2021; Saitō 2022). On the other hand, relatively little attention has been paid to Adam Smith in the context of ecological or environmental economic analysis. Most recent interest in Smith’s environmental thought has come from environmental historians (see Steeds 2024 for a review). However, Steeds (2024), building on Jonsson (2014), has made the case for reading Smith as an ecological economist, arguing that Smith shares core ontological precepts of the discipline—notably that it is the environment that underpins all economic activity. Smith (1975) is particularly relevant to debates about low-carbon transitions because The Wealth of Nations is the starting point for an interpretation of capital theory that has become widely used in energy-economy analyses. Capital theory itself has a long and storied history, with analysts giving it a variety of characteristics (Cannan 1921; Kurz 1990; Mair 2022). Contemporary economic analyses of energy generally use a physical concept of capital. A common position for economists who focus on energy is that energy is important because energy use and capital are “quantity complements”: all else equal, when capital increases the energy used in production increases (Elkomy, Mair, and Jackson 2020; Finn 2000; Sakai et al. 2019). Conceived of as “representative machinery,” capital is seen as the physical stuff that channels energy use into production (Keen, Ayres, and Standish 2019: 41). Or as Daly (1968: 397) puts it, “physical capital is essentially matter that is capable of trapping energy and channeling it to human purposes.” This physical conception has its roots in the dominant interpretation of capital from The Wealth of Nations. Prior to The Wealth of Nations, capital was a predominantly monetary construct, but historians of economic thought argue that after The Wealth of Nations, capital is taken to be predominantly physical (Hodgson 2014; Schumpeter 1954). However, I argue that Smith’s view of capital is actually a long way from the almost purely physical views seen in much energy-economy work. Rather, Smith’s view of capital is proto-Marxist. As Evensky (2005: 141) puts it, “Whether or not it was from Smith that Marx developed his notion of capital as self-expanding value, the outlines of that conception were certainly available to him in Smith.” From Smith’s perspective, capital is defined primarily as a socio-physical construct (Blaug 1990; Evensky 2005; Meek 1954). Capital sometimes has physical forms, which enables it to interact with flows of energy, but these are always conditioned by the social dynamics of profit and exchange. Making a direct connection to energy requires reading Smith from the contemporary perspective of energy-economy analysis as developed by the subdisciplines of ecological, biophysical, and exergy economics (Brockway et al. 2019; Jackson 1996; Keen, Ayres, and Standish 2019; Smil 2017a). This is because, as a construct, “capital” pre-dates “energy,” and Smith was writing before the first recorded use of the term energy as we would understand it today (by physicist Thomas Young in 1807, see: Frontali 2014). So although work into energy—particularly among ecological economists and their forerunners in energy systems analysis (Cleveland et al. 1984; Odum 1973; Sakai et al. 2019)—uses a concept of capital that has its roots in an interpretation of Smith’s capital theory, explicit links are missing in Smith’s text. Despite this, Steeds (2024) argues that Smith’s analysis of agriculture shows an understanding of what contemporary analysts would call energy, a theme I develop here focusing on Smith’s conceptualization of capital. The rest of this article is structured as follows. In section 2, I set out an interpretation of Smith’s capital theory from The Wealth of Nations that emphasizes the way it sees physical elements of capital as defined by social forces. In section 3, I outline the ways that energy fits into Smith’s theory of capital. This is the first contribution of the article, as I make novel links between Smith’s capital theory and contemporary energy-economy analysis. In section 4, I apply this interpretation of energy-capital relations to the historical evolution of energy use under capitalism, and the question of low-carbon transitions. This is the second contribution of the article, as I argue that Smith’s capital theory highlights the importance of the social context of energy systems. Specifically, it provides compelling explanations for the phenomenon of “energy additions”—where past “transitions” under capitalism have been associated with the overall growth of energy use (York and Bell 2019). This implies that the challenge of a low-carbon transition is not only investment in low-carbon energy systems but in challenging the logic of capitalism such that low-carbon energy can replace, rather than add to, the use of high-carbon energy. 2. Capital as a Socio-physical Construct in The Wealth of Nations Interpretations of Smith’s capital theory generally emphasize its physical aspects (e.g., Cannan 1921; Hodgson 2014; Schumpeter 1954). These readings focus on Smith’s initial description of capital as a subset of the accumulation of the physical outputs of production (in Smith’s terminology “stock” [cf. Smith 1975: 279]), and the skills and abilities of workers (Smith 1975: 282). The focus on physical aspects of Smith’s capital theory makes sense from a history of ideas perspective. The physical aspects of Smith’s capital stand in contrast with earlier definitions that were primarily monetary (Hodgson 2014). There is also an intellectual lineage that can be traced in Smith’s views on capital, principally through Smith’s relationship with the French Physiocratic school whose own economic analysis emphasized physical flows (Meek 1954; Schumpeter 1954). However, the fact that Smith introduced a new role for physical goods within a broader concept of capital does not imply that Smith’s theory of capital was purely physical (Robinson 1962). Rather, Smith views capital as the accumulated monetary and physical resources that are brought into production to generate a profit. To see this, let us look first at Smith’s view of circulating capital. Smith splits capital into two forms, circulating and fixed, and he is explicit that circulating capital has both monetary and physical forms. For Smith, circulating capital is defined by the fact that to turn a profit from it, its owner must give it up in exchange for something else. Consequently, circulating capital takes multiple forms: it is the money that will be used to pay wages to a worker, the product produced by that worker, the money realized at the point of sale of the product, and the commodities purchased using the money realized. As Smith (1975: 279) puts it, circulating capital is continually going from the capitalist “in one shape, and returning to him in another. . . it is only by means of such circulation. . . that it can yield him any profit.” Circulating capital is a process of purchasing and selling resources, often with a monetary form, in order to make more money (Evensky 2005). Circulating capital has different forms (some physical, some not) at different points in its circulation, but it is consistently capital. Even when capital takes on its physical form, for Smith it is the underlying social dynamics of exchange and profit that define it as capital. In his opening to book 2, Smith argues that capital is an emergent property of exchange-based economies (Smith 1975: 276). In a society with no division of labor, he argues, people are self-sufficient, and there is very little exchange. But once you have a division of labor, you get exchange because each worker uses their labor to produce a subset of the goods needed to live. Other workers use their labor to produce a different subset of goods. The two then trade with one another to ensure all their needs are met. Drawing on the work of the Physiocrats, Smith then observes that production takes time (Schumpeter 1954). Consequently, in a market system, the purchasing of goods from other people “cannot be made till such time as the produce of his own labor has not only been completed, but sold” (Smith 1975: 276). This means that in either a monetary or barter economy, there has to be a stock of physical goods previously accumulated in order to enable work to happen before the products of that work have been sold (or are available for barter). For Smith, these goods are a form of capital. In this sense, capital can be physical commodities—but physical commodities accumulated in order to support exchange. For Smith, profits are also an essential part of the definition of capital (Meek 1954). Whether fixed or circulating, physical or monetary, what makes something capital is the desire of the capitalist to earn money from it (e.g., Smith 1975: 281, 332). Smith’s theory of profit is scattered through The Wealth of Nations and is not entirely comprehensive (Blaug 1990; Christensen 1979). However, Smith does identify a construct called profits with some core tendencies that are sufficient to group him in the classical approach to profit as surplus and deduction (Hirsch 2021; Kurz 1990; Meek 1977). For Smith, surplus is primarily derived from the value that labor adds to raw materials. This value then goes to pay the wages of the worker and other costs of production, one of which is “the profits of their employer” (Smith 1975: 66). So, Smith’s theory of profit is deductive. Profit is the money capitalists attempt to gain back from production after all costs—including wages—have been accounted for (Meek 1977). An important addition here is that the profit drive for Smith is speculative: capitalists bring capital to support production because they “expect” to generate more money (Smith 1975: 279, 332)—it is not guaranteed. The attempt to gain profit is because capitalists use this as their income (cf. Smith 1975: 69, 279). This attempt is central to the dynamics of capital because profit is the “sole motive” that a capitalist has for bringing their resources into the exchange cycle of the economy (Smith 1975: 374). To summarize, for Smith, capital is the accumulated resources (whether physical or monetary) brought to bear in support of exchange-based production, the ultimate aim of which is to provide the owner of capital with an income (profits). Consequently, it is not correct to view Smith’s capital theory as purely or even predominantly physical. Rather Smith’s capital is a socio-physical construct. This interpretation is not a refutation of other readings that emphasize the physical aspect of Smith’s theory. The physical elements are present, are important, and are relevant to our discussion of energy. However, the underlying premise is always that these physical elements are defined by social relations of profits and exchange. This analysis fits with readings of Smith that see his capital theory as proto-Marxist because of the way it frames capital in terms of social relations (Hodgson 2014; Pack 2013; Tsoulfidis and Paitaridis 2012). But it strongly cautions away from discussions of capital that abstract from these social relations in ways that leave capital as purely physical things. As with Marx (2013), when Smith talks about capital as physical things, his focus is on the way the physical interacts with social relations. 3. How Does Energy Fit into Smith’s Capital Theory? Having sketched an interpretation of Smith’s capital theory focusing on the interplay of profit, exchange dynamics, and monetary and physical resources, we can turn to the question of how energy fits into Smith’s capital theory. In this section, I draw on energy-economy analysis to suggest two key ways in which energy might fit into Smith’s capital theory: 1. Capital is used to bring new energy sources into production.2. Capital is used to make existing energy flows more efficient. 3.1. Accessing new energy sources For Smith, one of the key ways that capitalists aim to generate profits from capital is by using it to increase labor productivity (in Smith’s terms “abridging” labor, see: Smith 1975: 17, 282). Here we have a link to energy-economy analysis, where labor productivity is often described in terms of substituting human labor for other forms of energy—since the industrial revolution this has typically happened through some form of fossil fuel–powered machinery (Smil 2017a). Smith discusses machinery in a number of places across The Wealth of Nations. Indeed, Kurz (2010: 1188) writes that one of Smith’s key growth mechanisms is the replacement of “labor power by machine power.” In chapter 11 of book 1 of The Wealth of Nations (Smith 1975: 263), Smith discusses how cloth production in Italy was made more productive than in England by employing wind and water mills in the former, while the latter treaded it by foot. This is the same example pointed to by energy scientist Vaclav Smil (2017a), who argues that the introduction of waterwheels into industrial production were a source of substantive labor productivity growth. Energy-analysis allows us to say why the wind and water is more productive than the treading. Energy provides a variety of functions, known as “energy services,” which are essential for production processes (Grubler et al. 2012). These are intuitive when put in the context of everyday experiences: achieving a comfortable temperature in an office or workplace requires thermal energy. Transporting goods or people requires kinetic energy. In the case of cloth production, the fulling process requires kinetic energy to manipulate the fibers of the cloth. To deliver energy services, energy sources go through a series of transformations, known as the conversion chain (Brockway et al. 2019; Grubler et al. 2012). Energy is accessible to us through different carriers—known as primary energy sources (such as food, oil, or gas). In most use cases primary energy sources are then converted into other forms before delivering their service (Smil 2017b). This conversion is done by “conversion technologies.” Muscles are a “technology” that can be used to convert the chemical energy in food into mechanical energy. Oil or solar energy may be converted into electricity. Different economic processes may use multiple forms of energy with energy from multiple carriers requiring transformation multiple times. From the perspective of increasing labor productivity, what is important is having energy available to do “useful” work (meaning provide the specific energy services that serve the interests of the system) (Brockway et al. 2019). The more energy available to do useful work, the more economic activity can be carried out per person. One way to increase the amount of useful energy available is by adding new primary energy sources to the system. This process often requires new conversion processes that enable the energy in the primary energy sources to be accessed and converted into energy services. In the case of cloth production, the introduction of wind or water mills is an example of capital taking the form of a new conversion technology that enables access to a different primary energy source (Smil 2017b). In the human-powered treading process, solar energy is converted into chemical energy through the agricultural system. The chemical energy in food products acts as the primary energy source. People then eat this food, converting it to mechanical energy that manipulates the cloth as they tread it under foot. On the other hand, a wind or water mill introduces a new conversion technology that enables access to the energy available in wind and water by converting it into mechanical energy. Note that this process is not only about energy efficiency. Wind and water mills are typically more energy efficient than human-power, but just as crucially they are more powerful: they bring a greater quantity of energy into the process of cloth production (Smil 2017b). The importance of scale is seen across energy-economy analysis. Hall and Klitgaard (2012: 117) draw on Polyani’s (1944) substantive definition of an economy to argue that all economic activity is the application of work to transform natural resources into goods and services. In the past, most of the work of transformation was done through muscle-power, but today muscle-power is a much smaller proportion of total work carried out because of the development of machinery that allows us to supplement our muscles with the “‘large muscles’ of fossil fuels.” 3.2. Increasing energy efficiency There are places in The Wealth of Nations where we might hypothesize about energy efficiency gains explicitly. For instance, Smith tells an apocryphal tale involving a child and a fire engine, presented as an example of innovation leading to labor productivity growth. Smith writes that in the earliest fire engines a boy would be employed to open and shut different valves, until one such boy finds a way to connect the valves such that they “open and shut without his assistance” (Smith 1975: 20). Such an innovation adjusts capital in order to enable it to convert more of the primary energy source into useful energy. Prior to the boy’s innovation, the system required two primary energy inputs: the fossil energy to power the machine, and the food energy to power the boy. Once the boy innovates, the primary energy associated with his action is removed from the process and the machine uses only the fossil energy, thus increasing its overall energy efficiency. But machinery is not the only way in which humans’ access and turn energy flows toward growth of the economy in Smith’s capital theory. Smith considers the useful abilities of workers to be a form of capital and here we can see another place where energy efficiency may fit into Smiths capital theory. When defining the useful abilities of workers Smith refers to dexterity: the skills and abilities acquired by workers through the repetition and simplification of tasks. When defining dexterity Smith talks about it in terms of efficiency gains. For example, a worker specializing in the production of nails will become more skilled in their production, and hence more efficient (Smith 1975: 18). But nowhere does Smith imply that an increase in dexterity is miraculous. And although it is intimately bound up with social organization through the division of labor, we can see how energy may fit into the process. Specifically, the increase in dexterity can be understood as partly a function of the fact that energy flows are being used more efficiently. Workers learn the best way to stir the fire, to heat iron and shape the head of the nail. An increase in the skill of a worker enables them to use energy more efficiently. In this way, more efficient use of energy flows can be seen as one of the ways that the division of labor enables increases in productivity. 3.3. Summary of the energy-capital relation in The Wealth of Nations Smith views capital as the monetary and physical resources that are brought by capitalists into exchange processes with the intention of generating an income for themselves. Smith, like Marx, is clear that all production ultimately rests on inputs from the natural environment, so it is not surprising that in The Wealth of Nations we found examples of a subset of capital that generates profits by changing the way energy is used in production processes. Specifically, I presented two mechanisms that can be identified in The Wealth of Nations: bringing new energy sources into the economy (the transition from human power to wind and waterpower in the fulling process), and being made more energy efficient (through machinery innovations and specialization of labor). We can now apply this interpretation of Smith’s energy-capital theory to the question of low-carbon transitions. The examples I have elaborated support Steeds (2024: 35) notion that Smith has an “intuitive” understanding of energy. Some of the critical functions of Smith’s conception of capital can be explained in terms of how it mediates our relationship to energy. In this way, Smith’s reading is close to more modern accounts of the role of energy (Keen, Ayres, and Standish 2019, Sakai et al. 2019). But what differentiates Smith’s from these accounts is an explicit emphasis on the social context in which energy is used by capital. Some accounts of the energy-economy relationship effectively, or explicitly, reduce production to energy use. In Smith’s account by contrast, energy use is framed and shaped by social forces. Recalling Smith’s core understanding of capital from section 2, it is clear that energy is being harnessed by capital in an attempt to generate profits within a market process. In other words, in a capitalist economy where most production follows the logic of capital, the major driver of energy use will be the attempt to generate incomes for the owners of capital. This insight, though simple, is often overlooked and has profound implications for a low-carbon transition. 4. A Smithian Analysis of Low-Carbon Transitions Under Capitalism In this section, I apply the insights from the reading of Smith’s capital theory to historical data on energy use under capitalism. I argue that the theory provides a simple and compelling explanation for the constant expansion of energy use as new forms of energy have been added to the mix. Capitalists seek to use energy to grow their profits; therefore, they invest in efficiency measures or new energy sources in order to increase the total energy available to them. Energy is never saved in the sense of not being used. Rather, it is made available to new profit-seeking ventures. Across both mainstream and radical interventions into low-carbon transition debates, there is often a focus on the investment needed to grow low-carbon and energy efficiency programs (e.g., Hrnčić et al. 2021; Pollin 2015, 2019; Qadir et al. 2021). The central argument in these works is that low-carbon transitions require substantial but not unreasonable levels of investment in low-carbon energy and energy efficiency programs. Approaching this from the perspective of energy-capital relations developed in this article, we are looking at the need to transition capital from one conversion technology to another. Today, much capital takes the form of conversion technologies designed to access the energy in fossil fuels. For a low-carbon economy we need capital to take the form of conversion technologies that can access energy in wind, solar, or other low-carbon forms. It is tempting to think about this in terms of the transition described by Smith from labor power to wind power in the fulling process. However, there is a fundamental difference between the transition from one energy source to another as developed in The Wealth of Nations, and that needed in the low-carbon transition. Historically, transitions between dominant energy sources under capitalism have been consistent with Smith’s argument that capital is only motivated by the desire for profit. Past energy transitions under capitalism have been driven by a search for greater profits enabled by the new energy sources, not by pro-social or pro-ecological values. For example, Malm (2016) argues that the English transition from wood to water was driven by the desire of capitalists to concentrate and better control their workforce, simultaneously reducing losses from theft, making workers more efficient, and bringing a greater scale of energy into the production process. The consequence of the consistent searching for profits in capitalist energy transitions is that we have very few examples of energy sources declining under capitalism at the macro-scale. Under capitalism, energy transitions are better described as energy additions (York and Bell 2019). In recent decades, there has been a remarkable growth in the use of low-carbon energy sources, but at no point in this period has energy production from fossil fuels decreased (figure 1; Malanima 2022). Indeed, looking at the evolution of 9 categories of primary energy sources since 1820 (figure 1), only fodder has seen a prolonged decrease under capitalism. For instance, in absolute terms, energy from coal overtakes fuelwood as the largest primary energy carrier in the late 1800s. But after this point the energy supplied by fuelwood continues to grow. Even in the case of fodder, although it has been in decline for approximately sixty years it still provided more than twice as much energy in 2020 than it did in 1820. Looking specifically at low-carbon fuels, the charts for renewables and nuclear energy show dramatic spikes and rapid growth. But these spikes do not coincide with declines in any other fuel source, and the International Energy Agency (IEA 2023a, 2023b) reports that 2022 was an all-time high for coal production, and forecasts record oil production in 2024.   Figure 2 depicts global energy efficiency, the scale of global production, and the total primary energy use 1820–2018. Energy efficiency of the global capitalist economy has improved drastically over the two-hundred-year period covered: in 2018, producing one unit of output took only 40 percent of the energy it would have taken in 1820. But as energy efficiency has grown, so has total energy use and total output, and these changes dwarf the gains in energy efficiency. In 2018, 41 times as much energy was used as in 1820, while global production grew by 2 orders of magnitude over the same period.   From the lens of our interpretation of Smith’s capital theory, the constant expansion of fossil fuel use alongside renewables and energy efficiency gains is not surprising. The purpose of capital development and deployment in our Smithian lens is to increase income for capitalists by facilitating exchange. So, we would expect capitalists to invest in capital that enables them to access new sources of energy, like renewables, in order to bring a greater scale and quantity of energy into production. But we would also expect them to continue to invest in fossil fuels for the same reasons. More energy means more production means more profit. Likewise, we would expect capitalists to use their capital to increase energy efficiency: this reduces their costs. But we would also expect capitalists to take subsequent energy savings and use them to increase production further. As energy is used more efficiently in any given process, more energy is available to be used elsewhere in the economy or, as new energy sources are brought into production, the old sources are made available for new processes (Garrett 2014; Sakai et al. 2019; York and Bell 2019). As long as the capitalist appetite for greater incomes is present, they will seek to direct energy “savings” into new or expanded forms of production. The practical implication of this theoretical analysis is that investment in low-carbon energy sources and energy efficiency measures—no matter how bold the proposals—will not succeed without a change to the social dynamics of capitalist production. Achieving a low-carbon transition therefore requires the formidable task of coupling a large and sustained investment program in renewables and energy efficiency with a challenge to the structural logic of capital. This requires wide-ranging shifts within capitalist economies to build low-carbon energy infrastructure and develop ways of producing that disrupt the constant profit chasing of capital. The former is required to ensure action can begin now, while the latter is needed to ensure that low-carbon investments do not simply continue to expand the energy base of capitalist production. Elaborating on such possibilities is beyond the scope of this article. However, there are research programs that seek to understand alternatives to profit-driven capitalist production, notably work in post-capitalism and the post-growth/degrowth literatures that identify noncapitalist logics of production (Gibson-Graham 2014; Colombo, Bailey, and Gomes, 2024; Mair 2024; Vandeventer, Lloveras, and Warnaby 2024). A useful future direction for research lies in asking how such non-capitalist modes of production might be scaled and applied to the global energy system. 5. Conclusion In this article I have used a history of economic thought approach to analyze the relationship between energy and capital. Rereading The Wealth of Nations, I argued that Smith’s theory of capital is fundamentally socio-physical. Smith views capital as any accumulated resource that is used to support the exchange cycle of the market economy with the expectation that this will return a profit for the owner of the resource. Based on this reading, I argued that there are two ways in which energy might enter into Adam Smith’s capital theory: (1) capital is used to bring new energy sources into production; and (2) capital is used to make existing energy flows more efficient. Using this view of energy-capital relations, we can explain the major trends in historical energy-capital relations under capitalism. Over the last two hundred years, energy use has grown continuously, and the incorporation of new primary energy sources has not systematically led to reductions in older primary energy sources. This is consistent with the idea that capital is used to bring new energy sources into production. Investment in renewables is what we would expect: renewable energy technology allows capitalists to access new primary energy sources. They use this to generate more profits. They continue to invest in fossil fuel technology for the same reasons. Over the last two hundred years, there have been substantive gains in energy efficiency, and these have not led to reductions in energy use. This is consistent with the idea that capital is used to make energy use more efficient. The motivation of capitalists to make energy more efficient is to be more profitable. They then take energy savings from energy efficiency gains and use these to increase production, in an attempt to make more profits. The implication of this analysis is that investment in low-carbon technology and energy efficiency is the (relatively!) easy part of achieving a low-carbon transition. These dynamics are fundamentally compatible with the logics of capital. The barrier to achieving a low-carbon transition is that as long as this investment takes the form of “capital” (i.e., it chases profits and supports exchange processes), then it is unlikely that investment in renewables or energy efficiency programs will reduce energy use from fossil fuels. To achieve a low-carbon transition we must invest in low-carbon technology and energy efficiency, while simultaneously developing new organizational forms that challenge the capitalist dynamics of expansion and accumulation. AcknowledgmentsI would like to thank Christiane Heisse, Don Goldstein, and Robert McMaster, for their careful reviews and Enid Arvidson for her editorial work, all of which greatly improved the article. I would like to thank participants of the workshops Economic Theory for the Anthropocene (organized by the Centre for the Understanding of Sustainable Prosperity and the University of Surrey Institute for Advanced Studies) and The Political Economy of Capitalism (organized by the Institute for New Economic Thinking Young Scholar Initiative working groups on the Economics of Innovation and Economic History). Particular thanks to Richard Douglas, Angela Druckman, Ben Gallant, Elena Hofferberth, Tim Jackson, Andy Jarvis, Mary O’Sullivan, and Elke Pirgmaier for fruitful discussions. I would like to thank the Marxist Internet Archive for making The Wealth of Nations freely available.Declaration of Conflicting InterestsThe author declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.FundingThe author disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This work was partly funded by the Economic and Social Research Council through the Centre for the Understanding of Sustainability, grant no. ES/M010163/1.ORCID iDSimon Mair https://orcid.org/0000-0001-5143-8668Note1 The full sources for the Maddison Project Database are Abad and Van Zanden (2016); Álvarez-Nogal and De La Escosura (2013); Baffigi (2011); Barro and Ursúa (2008); Bassino et al. (2019); Bértola et al. (2012); Bértola (2016); Broadberry et al. (2015); Broadberry, Custodis, and Gupta (2015); Broadberry, Guan, and Li (2018); Buyst (2011); Cha et al. 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Diplomacy
Trump, Putin Alaska Arrival (9260680)

Why Peace in Ukraine Remains Elusive

by Nicholas Morieson , Ihsan Yilmaz

Donald Trump declared his Alaska summit with Vladimir Putin a success, despite contrasting evidence suggesting otherwise. On Truth Social, he said a peace agreement over Ukraine, not a mere ceasefire, was the right path, claims he echoed during follow-up talks in Washington with Volodymyr Zelensky and European leaders. “Potentially, millions of people’s lives will be saved,” Trump said. That optimism looks misplaced. For Putin, Ukraine is not merely a bargaining chip but a territory he views as part of a Russian “civilization-state.” When he meets with Western leaders, he is not negotiating over land; he frames the war as a defense of Russian civilization and its values. As a result, Putin cannot easily “make a deal” involving land swaps to end the conflict.  Russia’s civilisational project  In addition to civilisational rhetoric, other factors contribute to Putin’s intransigence. Strategic concerns about NATO, fears for regime security, and the material importance of Crimea and the Black Sea all shape Moscow’s stance. Yet the language of civilisation turns these into matters of identity and survival. It fuses practical interests with existential claims, making retreat even harder. Even if compromises were possible on security or economics, the civilisational frame casts them as betrayals of Russia’s destiny.  Some American policymakers have tended to read Russia as a state with interests that can be traded. However, Putin accounts for Russia not simply as a nation-state, but as a civilization rooted in Orthodoxy, empire, and the memory of Soviet power. Viewed through this prism, Ukraine is not a foreign neighbour, but an inseparable part of Russian history and identity, which must be defended against Western encroachment.  In his 2021 essay On the Historical Unity of Russians and Ukrainians, Putin claimed that Russians and Ukrainians are “one people,” and that Ukraine is “an inalienable part of our own history, culture, and spiritual space.” Whatever his private convictions, the function of this language is clear. It justifies annexation and occupation, and it raises the political cost of retreat by treating territorial issues as matters of civilisational survival.   Putin himself insists that “the West” does not understand that “the Ukraine crisis is not a territorial conflict … and not an attempt to establish regional geopolitical balance.” Instead, he says, it is rooted in “the principles underlying the new international order” he is building. Peace, in this new order, is possible only “when everyone feels safe and secure, understands that their opinions are respected” and when “no one can unilaterally force …others to live or behave as a hegemon pleases even when it contradicts the sovereignty …traditions, or customs of peoples and countries.”    This framing lets the Kremlin portray the West as the aggressor imposing alien norms on unwilling Ukrainians. Russia, by contrast, is said to be fighting for itself on behalf of all nations who wish to see western hegemony end and the birth of a new multipolar world. Moreover, it portrays Ukraine’s status as a civilisational question tied to identity and resistance to Western liberal norms. As a result, only a settlement that Putin present domestically as recognition of Russia’s civilisational standing is acceptable, which complicates compromise beyond what standard diplomatic formulas suggest.  Challenges to Trump’s pursuit of peace  Trump has made no secret of his desire to be remembered as a peacemaker. However, he also admires strong leaders and has shown sympathy for post-liberal arguments that liberal democracy is exhausted. These affinities bring him closer, at least rhetorically, to elements of Putin’s stance.  Admiration and aspiration alone are insufficient in bridging the gap between Putin and Trump’s positions on Ukraine’s independence. Putin frames the conflict as existential, defending Russian civilisation against Western encroachment. This  makes compromise especially difficult. If the war is understood in these terms, how can Moscow return occupied territories without undermining its own civilisational claim? How can it accept a Ukraine that leans towards the European Union, or tolerate an American presence on its soil?  Trump may want peace, but Putin has tied his legitimacy to a narrative that resists it. Unless that framing is abandoned, or radically reinterpreted, any settlement will remain elusive.  A wider trend  “Russia’s approach is part of a wider pattern in which civilisational claims have become central to how leaders justify power and resist compromise. Xi Jinping frames China as a five-thousand-year-old civilisation whose territory includes Taiwan and the South China Sea. He presents the Communist Party as the guardian of a civilisational tradition stretching back to Confucius, giving contemporary disputes an aura of timeless legitimacy. Narendra Modi portrays India as an ancient Hindu civilisation restoring its rightful place after centuries of foreign domination. Each case is distinct, but the message is similar: our civilisation is exceptional, our sovereignty absolute, and our values not up for negotiation.    A troubled summit  Against this backdrop, the Alaska meeting was never likely to produce more than gestures. Trump may genuinely want peace and to be remembered as the leader who ended the war. Yet he is dealing with a counterpart who has justified the invasion of Ukraine in civilisational and existential terms. For Putin, Ukraine is not only territory but a symbol of Russia’s identity and sovereignty, cast as a bulwark against Western encroachment. Within this frame, Russia would view restoring Ukraine’s borders, accepting its European orientation, or tolerating a long-term American presence in the region as defeats of principle rather than concessions of interest.  Trump’s ambition to end the war faces an almost insoluble dilemma. Europe will reject a settlement that rewards aggression, while Putin refuses to surrender territory he has cast as integral to Russian civilisation. Land swaps seem practical but please neither side. If the conflict were to remains frozen, Ukraine will be fractured and the deeper issues unresolved. Peace demands compromise, but compromise undermines the very narratives on which Moscow has built its legitimacy. As a result, unless Putin retreats from his civilisational framing of the war, any settlement will remain elusive and Ukraine’s future uncertain.  Dr Nicholas Morieson is a Research Fellow at the Deakin Institute for Citizenship and Globalisation, Deakin University, Melbourne. He is the author of three books, including Weaponizing Civilizationalism for Authoritarianism: How Turkey, India, Russia, and China Challenge Liberal Democracy (Palgrave 2025).  This article is published under a Creative Commons License and may be republished with attribution.

Energy & Economics
Global business connection concept. Double exposure world map on capital financial city and trading graph background. Elements of this image furnished by NASA

Liaison countries as foreign trade bridge builders in the geo-economic turnaround

by Eva Willer

Introduction Geopolitical tensions are making global trade increasingly difficult. In order to reduce the associated risk of default, companies are shifting their trade relations to trading partners that are politically similar to them. In the course of the beginnings of geo-economic fragmentation, politically and economically like-minded countries are also gaining in importance for German and European decision-makers. Liaison countries1 in particular can form a counterforce to the trend towards polarization in foreign trade - especially between the USA and China: they are characterized by a pronounced economic and trade policy openness that overrides differences between geopolitical or ideological camps. Consequently, the question arises: How can relevant connecting countries for Germany and Europe be identified? What opportunities and risks do closer trade relations with these countries offer in order to strengthen foreign trade resilience in geopolitically uncertain times?  With a high degree of openness - defined as the sum of imports and exports in relation to gross domestic product - of over 80 percent2 , the German economy is strongly integrated into global trade. Accordingly, the disruptive effect of geo-economic fragmentation on the German economy would be above average. The defensive strategy to strengthen Germany's economic security by pushing for trade policy independence would only reinforce geo-economic fragmentation. Against the backdrop of comparatively high economic vulnerability, it is necessary to focus on those potential partner countries with which German and European foreign trade could be developed and expanded even under the condition of increasing fragmentation.  Geoeconomic Fragmentation  The term "geo-economic fragmentation" is used to describe the politically motivated reorganization of global goods and financial flows, in which strategic, economic and political interests primarily determine the choice of countries of origin and destination for trade flows.3 In the scenario of geo-economic fragmentation, the result would be the formation of a bloc within the global community of states, which would fundamentally change the regulatory structure of global economic networking. In this case, trade and investment would probably concentrate from a previously diverse range of economic partner countries - prior to the formation of the bloc - on those countries that now - since the formation of the bloc - belong to the same bloc.  The likelihood of this scenario occurring and leading to an increased fragmentation of the global economic order has increased again in the recent past. For example, Donald Trump's second term as US president is causing increasing geopolitical uncertainty worldwide.  Statements on the concrete form of a possible demarcation of potential blocs are subject to a great deal of uncertainty. However, the division of a large part of the global economy into a "US bloc" and a "China bloc" is a conceivable scenario for which German politics and business should prepare.  Data already shows that, at a global level, foreign trade openness has decreased in the recent past. Data from the World Trade Organization (WTO) illustrates the increasing hurdles in global trade in goods. While 3.1% of global imports were still affected by tariff or non-tariff barriers to trade in 2016 - including under WTO rules - this figure rose to 11.8% in 2024 over the following years.4 This development goes hand in hand with a noticeable loss of importance and enforcement of the WTO since the 2010s, which previously played a central role as the guardian of the rules-based global economic order.  Studies by the International Monetary Fund (IMF) have already found indications of an incipient geo-economic fragmentation along potential bloc borders. It shows that trade in goods and foreign direct investment between countries that would belong to the opposing camp in the event of a bloc formation declined on average in 2022 and 2023 - in contrast to foreign trade between countries that are geopolitically close.5  In this initial phase of geo-economic fragmentation, liaison countries are beginning to establish themselves as a counterforce, holding the fragmenting global community of states together with new trade and investment routes.  Identification of liaison countries Specifically, liaison countries have the following characteristics: a pronounced openness to foreign trade in the form of a high foreign trade quota and low tariff and non-tariff trade barriers, as well as pronounced economic relations with partner countries from different geopolitical camps. The geopolitical orientation of countries can be examined using data on voting behavior within the United Nations.6 This involves analyzing whether a country can be assigned to the US or Chinese camp - or whether there is no pronounced proximity and therefore political neutrality or "non-alignment" in the sense of ideological independence. The data-based identification of connecting countries is relatively new. Empirical analyses are also limited to connecting countries in the context of US-Chinese foreign trade - specifically US imports from China. In this case, the characteristics of a connecting country can be broken down into (1) "non-alignment" - i.e. a geopolitical distance to both a Western and an Eastern bloc - as well as (2) an increase in imports and foreign investment from China and (3) a simultaneous increase in exports to the United States. In a narrower sense, this is an evasive reaction to trade restrictions, i.e. circumventing trade. If the foreign trade indicators - specifically the trade and investment data relating to the US and China - of "non-aligned" countries for the period from 2017 to 2020 show corresponding characteristic-related changes compared to previous years, these can be identified as countries connecting the US and China.  The analysis of trade data shows that the value of direct exports from China to the USA fell during Donald Trump's first term in office. At the same time, both Chinese exports to some of the "non-aligned" countries and exports from these countries to the USA have increased significantly. These countries have presumably stepped in as a link on the export route from China to the US after the previously direct trade flow was interrupted by trade barriers and had to find a new route. Companies producing in China are therefore likely to have sought new, indirect ways to maintain access to the US sales market.  A certain statistical inaccuracy in the foreign trade data makes it difficult to draw a definitive conclusion in this context. It should be noted: No single commodity can be tracked across national borders in trade data collection. Whether the additional goods imported from China actually found their way to the United States can only be assumed approximately. However, if the trade flows are aggregated, a clearer picture emerges and the circumvention trade via selected connecting countries - including Vietnam and Mexico - becomes visible.  Data on foreign direct investment rounds off the analysis.7 "Non-aligned" countries in which an increase in Chinese investment can be seen between 2016 and 2020 in addition to trade flows can be identified as connecting countries. Here, too, available data suggests that the companies concerned either exported their goods to the United States via a stopover or even outsourced parts of their production destined for the US market to connecting countries. Five connecting countries between the US and China Based on the 2017-2020 study period, various connecting countries can be empirically identified that were used to indirectly maintain access to the US market. In terms of foreign trade volume, the economically most important connecting countries include Mexico, Vietnam, Poland, Morocco and Indonesia.8 All five countries are characterized by the fact that both their exports of goods to the US and their imports of goods from China increased significantly between 2017 and 2020. In addition, greenfield investments (foreign direct investment to set up a new production facility) have risen significantly compared to the period before 2017.  However, the five countries show different priorities in their development, which differentiate them in their role as connecting countries between the USA and China. In Vietnam, exports to the USA in particular have risen sharply. China has been the most important procurement market for Vietnamese companies for years. Poland, Mexico and Indonesia are characterized as connecting countries primarily by the significant increase in imports from China. Morocco, in turn, was able to attract more Chinese foreign investment in particular. Greenfield investments have almost tripled here since 2017. However, Poland - a rather surprising candidate for the role of liaison country, as it is intuitively assigned to the US-oriented bloc - is positioned fairly centrally between the US and China according to the analysis of voting behavior within the United Nations9. In addition, Poland qualifies primarily due to the sharp rise in greenfield investments from China, primarily in the expansion of domestic battery production.10  It cannot be concluded from the previous studies on the USA and China whether German companies are also circumventing trade barriers from the USA via the countries identified. As the trade policy conflicts between the US and China differ significantly from those between the EU and China, there has been a lack of comparable empirical data to analyze connecting countries in the EU context. Opportunities and challenges As the German economy is strongly oriented towards foreign trade and is closely networked with both the USA and China, German companies play a particularly exposed role in the area of tension between the USA and China. Increased economic exchange with potential connecting countries would offer German companies an opportunity to mitigate the expected shock of a geopolitical bloc. They could at least maintain international trade to a certain extent and thus secure some of the endangered sales and procurement markets. On the other hand, there are also costs associated with expanding foreign trade relations with potential connecting countries. The greater complexity also increases the risk in the value chains. Companies that position themselves wisely within this trade-off buy themselves valuable time in the event of a shock to reorganize themselves against the backdrop of changed foreign trade conditions.  From the perspective of foreign trade policy, it is also possible to examine the extent to which stronger foreign trade cooperation with (potential) connecting countries could have advantages. The trade-off between resilience and complexity must then be assessed at a macroeconomic level, beyond individual company interests. In order to make it easier for companies to connect to potential connecting countries and to create appropriate framework conditions, German and European policy can build on existing comprehensive strategies at national and European level. Both the China Strategy11 and the National Security Strategy12 focus foreign policy on connecting countries as part of a stronger economic and political risk diversification. There is also a similar framework at European level with the EU's Strategic Compass13 . Following on from this, the German government could create targeted incentives to open up new markets in liaison countries, which would diversify critical supply chains and reduce one-sided dependencies.  At the same time, connecting countries pose a challenge. These can be used to circumvent foreign trade measures such as sanctions if flows of goods can find alternative routes via connecting countries more easily than before.  In order to realize opportunities and overcome challenges, close cooperation between science, politics and companies is required. This first requires the identification of a selection of potential connecting countries through scientifically sound analysis. This creates the basis for the subsequent steps in which European and German policymakers work closely with companies to create attractive framework conditions for trade with potential connecting countries - for example through bilateral trade agreements.  Attractive foreign trade framework conditions can create the necessary incentive to actually expand trade relations with potential connecting countries. Companies need to weigh up individual cases and make forward-looking decisions: To what extent is there a risk of a loss of production triggered by geopolitical conflicts? And how much would the complexity of the value chain increase if more potential connecting countries were included? Ultimately, the actual choice of preferred sales and procurement markets lies with the individual companies. LicenseThis work is licensed under CC BY 4.0 References1. Verbindungsländer werden im Sinne von Connectors verstanden, vgl. Gita Gopinath/Pierre-Olivier Gourinchas/Andrea F Presbitero/Petia Topalova, Changing Global Linkages: A New Cold War?, Washington, D.C.: IMF, April 2024 (IMF Working Paper) <https://www.imf.org/en/Publications/WP/Issues/2024/04/05/Changing-Global-Linkages-A-New-ColdWar-547357/>. 2. Statistisches Bundesamt (Destatis), Außenwirtschaft. 2025, <https://www.destatis.de/DE/Themen/Wirtschaft/Globalisierungsindikatoren/aussenwirtschaft.html#246 078/>.  3. Shekahar Aiyar/Franziska Ohnsorge, Geoeconomic Fragmentation and ‚Connector’ Countries, Online verfügbar unter:  <https://mpra.ub.uni-muenchen.de/121726/1/MPRA_paper_121726.pdf>.4. WTO, WTO Trade Monitoring Report, Genf, November 2024, <https://www.wto.org/english/tratop_e/tpr_e/factsheet_dec24_e.pdf/>. 5. Gita Gopinath/Pierre-Olivier Gourinchas/Andrea F Presbitero/Petia Topalova, Changing Global Linkages: A New Cold War?, Washington, D.C.: IMF, April 2024 (IMF Working Paper) <https://www.imf.org/en/Publications/WP/Issues/2024/04/05/Changing-Global-Linkages-A-New-ColdWar-547357/>.  6. Michael A. Bailey/Anton Strezhnev/Erik Voeten, »Estimating Dynamic State Preferences from United Nations Voting Data«, Journal of Conflict Resolution, 61 (2017) 2, S. 430-456, <https://journals.sagepub.com/doi/10.1177/0022002715595700/>.7. Gita Gopinath/Pierre-Olivier Gourinchas/Andrea F Presbitero/Petia Topalova, Changing Global Linkages: A New Cold War?, Washington, D.C.: IMF, April 2024 (IMF Working Paper) <https://www.imf.org/en/Publications/WP/Issues/2024/04/05/Changing-Global-Linkages-A-New-ColdWar-547357/>. War-547357. 8. Enda Curran/Shawn Donnan/Maeva Cousin, »These Five Countries are Key Economic ‚Connectors‘ in a Fragmenting World«, in Bloomberg (online), 1.11.2023, <https://www.bloomberg.com/news/articles/2023-1102/vietnam-poland-mexico-morocco-benefit-from-us-china-tensions/>.9. Michael A. Bailey/Anton Strezhnev/Erik Voeten, »Estimating Dynamic State Preferences from United Nations Voting Data«, Journal of Conflict Resolution, 61 (2017) 2, S. 430-456, <https://journals.sagepub.com/doi/10.1177/0022002715595700/>.  10. Enda Curran/Shawn Donnan/Maeva Cousin, »These Five Countries are Key Economic ‚Connectors‘ in a Fragmenting World«, in Bloomberg (online), 1.11.2023, <https://www.bloomberg.com/news/articles/202311-02/vietnam-poland-mexico-morocco-benefit-from-us-china-tensions/>.11. Auswärtiges Amt, China‐Strategie der Bundesregierung, Berlin, Juli 2023, <https://www.auswaertigesamt.de/resource/blob/2608578/810fdade376b1467f20bdb697b2acd58/china-strategie-data.pdf/>.  12. Auswärtiges Amt, Integrierte Sicherheit für Deutschland: Nationale Sicherheitsstrategie, Berlin, Juni 2023, <https://www.bmvg.de/resource/blob/5636374/38287252c5442b786ac5d0036ebb237b/nationalesicherheitsstrategie-data.pdf/>.  13. Rat der Europäischen Union, Ein Strategischer Kompass für Sicherheit und Verteidigung, Brüssel, März 2022, <https://data.consilium.europa.eu/doc/document/ST-7371-2022-INIT/de/pdf/>.

Defense & Security
LNG plant based on gravity type with a gas carrier. The Arctic LNG-2 project. Utrennoye deposit, Yamalo-Nenets Autonomous Region, Russia. 3d rendering

Securing the ‘great white shield’? Climate change, Arctic security and the geopolitics of solar geoengineering

by Nikolaj Kornbech , Olaf Corry , Duncan McLaren

Abstract The Arctic has been identified by scientists as a relatively promising venue for controversial ‘solar geoengineering’ – technical schemes to reflect more sunlight to counteract global warming. Yet contemporary regional security dynamics and the relative (in)significance of climate concerns among the key Arctic states suggest a different conclusion. By systematically juxtaposing recently published schemes for Arctic geoengineering with Arctic security strategies published by the littoral Arctic states and China, we reveal and detail two conflicting security imaginaries. Geoengineering schemes scientifically securitise (and seek to maintain) the Arctic’s ‘great white shield’ to protect ‘global’ humanity against climate tipping points and invoke a past era of Arctic ‘exceptionality’ to suggest greater political feasibility for research interventions here. Meanwhile, state security imaginaries understand the contemporary Arctic as an increasingly contested region of considerable geopolitical peril and economic opportunity as temperatures rise. Alongside the entangled history of science with geopolitics in the region, this suggests that geoengineering schemes in the Arctic are unlikely to follow scientific visions, and unless co-opted into competitive, extractivist state security imaginaries, may prove entirely infeasible. Moreover, if the Arctic is the ‘best-case’ for geoengineering politics, this places a huge question mark over the feasibility of other, more global prospects. Introduction ‘The Arctic region plays a key role in the global climate system acting as a carbon sink and a virtual mirror’ (Carnegie Climate Governance Initiative (C2G), 2021: 1) – thus reads a typical introduction to the rationale for solar geoengineering (SG) in the Arctic. To most, SG – any large-scale intervention that seeks to counteract anthropogenic global warming by reflecting sunlight – is still an obscure idea. However, it is quickly gaining traction among some groups of climate scientists, entrepreneurs and even some governments as climate impacts provoke an ever-increasing sense of alarm and urgency. Debates concerning potential governance of SG routinely acknowledge its potential international governance challenges, but have tended to leave security dimensions mostly unexamined (but see Nightingale and Cairns, 2014), usually by framing the challenge primarily in terms of coordinating efforts and dealing with potentially unwanted side effects (Corry et al., forthcoming). While climate change itself is often understood as a potential security threat, it has not yet motivated exceptional or decisive state action, but rather seems to produce a series of routine practices through which ‘climate change is rendered governable as an issue of human security’ (Oels, 2012: 201). Geoengineering could potentially change this situation. The potentially high-leverage, transboundary nature of large-scale SG has led to suggestions that it would involve disagreements over the methods and intensity of interventions (Ricke et al., 2013) and could lead to international conflicts, not least from uni- or ‘mini’-lateral deployment (Lockyer and Symons, 2019). In addition, with its potential to make climatic changes and catastrophes attributable to (or able to be blamed on) the direct and intentional actions of states, SG could also make the rest of climate politics a more conflictual field (Corry, 2017b). Other scholars have examined geoengineering itself through a human security frame – recently developed as ‘ecological security’ with ecosystems as the main referent object (McDonald, 2023), where the insecurity arising from climate change is seen to go beyond the particularity of state interests. This casts geoengineering as a potential ecological security measure, or even as a potentially ‘just’ one, if it would protect groups otherwise vulnerable to climate threats (Floyd, 2023). However, the entanglement of geoengineering, even if framed as an ‘ecological security’ measure, with national and international security dynamics, would remain a distinct risk, in similar ways to how humanitarian aid and development have become entangled with, and for some historically inseparable from, security (Duffield, 2007). In this article, we seek to move beyond theoretical speculation about the International Relations of geoengineering abstracted from historical or regional security dynamics, using a case study of the Arctic to investigate how geoengineering might (not) enter this political space and to derive conclusions of broader relevance to the international debate. We make use of the empirical richness revealed by schemes for Arctic geoengineering to identify how security imaginaries – ‘map[s] of social space’ (Pretorius, 2008: 112) reflecting common understandings and expectations about security – are already implicit in scientific and technical visions of geoengineering. We contrast these scientific security imaginaries with current state security imaginaries that play a dominant role in the anticipation of Arctic futures more generally. As we will show, scientific security imaginaries consider the Arctic as a best case for geoengineering in terms of political feasibility. This allows for analytical inference based on critical case selection (Flyvbjerg, 2006): if even in the Arctic these scientific security imaginaries have little compatibility with current state security imaginaries, geoengineering faces major obstacles of political feasibility in other regions and globally, unless deployed in pursuit of security rather than global environmental protection. Many different ideas for SG have been explored as ways to cool the Arctic. These include marine cloud brightening (MCB): spraying salts from sea vessels to make marine clouds more reflective (Latham et al., 2014) or covering ocean or ice surfaces with reflective materials (Field et al., 2018). Related ideas involve using wind power to pump water onto ice to help thicken it (Desch et al., 2017), underwater ‘curtains’ to protect ice from warmer water streams (Moore et al., 2018) or reintroducing large animals to graze and trample so that dark boreal forest is replaced by reflective snow-cover, protecting permafrost (Beer et al., 2020).1 The technique of stratospheric aerosol injection (SAI) – spraying reflective aerosols like sulphur or calcite into the stratosphere – is also included as an option by some organisations working with Arctic geoengineering2 or explored in simulations or other research (Jackson et al., 2015; Lane et al., 2007; Robock et al., 2008). In practice, however, aerosols distributed in or near the Arctic would likely spread over much of the Northern hemisphere, and model studies of Arctic-targeted SAI generally conclude that is it not a desirable option due to particularly severe negative side effects outside the Arctic (Duffey et al., 2023). While geoengineering scientists seek to distance their work from geopolitical concerns (Svensson and Pasgaard, 2019), scientific research in the Arctic – even that involving cooperation between Cold War adversaries – has long been deeply entangled with state security objectives and military interests (Doel et al., 2014; Goossen, 2020). Similarly, weather modification schemes have a history of (largely failed) entanglement with military purposes (Fleming, 2010), while climate modelling evolved partly through and with military scenario-making (Edwards, 2010). Climate modelling occupies a more civilian location in multilateral institutions now but still shares its particular way of seeing the climate – as a space of geophysical flows – with a military gaze (Allan, 2017). More importantly, the interrelated environmental, economic and geopolitical interests in opening up the Arctic that are emerging with global warming make for a particular set of contradictions and tensions in the region that we argue will be much more likely than global environmental concerns to determine what role (if any) geoengineering could or would play. Arctic SG ideas are emerging largely oblivious to this context, which is understandable, but makes for an interesting comparative analysis that, as will we show, raises questions concerning the overall feasibility of SG in the Arctic, especially deployment of it in line with scientific imaginaries. Since scientific literature tends to be central to governance-oriented assessments of SG (e.g. National Academies of Sciences, Engineering, and Medicine, 2021), a mismatch between assumptions has potentially serious policy implications, not least in terms of overall feasibility, which in turn augments risks of such schemes failing and contributing to mitigation deterrence (when they were hoped or planned for, delaying emissions reductions (McLaren, 2016)). Attention to the geopolitical complexities of Arctic geoengineering could prevent scientific work being translated into policy prescriptions in unintended ways or having unexpected effects – if the complexities can be foregrounded when interpreting such work and be considered in designing future research. Approach We analyse both Arctic geoengineering schemes and state strategies for the Arctic as security imaginaries. This concept draws on Charles Taylor’s (2004) notion of the social imaginary, ‘the ways people imagine their social existence, how they fit together with others, how things go on between them and their fellows, the expectations that are normally met, and the deeper normative notions and images that underlie these expectations’ (p. 23). Imaginaries, in this sense, are worldviews – sets of assumptions that may or may not correspond to social reality but affect it in significant and material ways. They are not simply subjective constructions to be weighed against some objective reality, but (often competing) ways of constructing and institutionalising the world. Following Pretorius (2008), a security imaginary is then ‘that part of the social imaginary as “a map of social space” that is specific to society’s common understanding and expectations about security and makes practices related to security possible’ (p. 112). Regrettably, social imaginaries are often theorised through ‘internalism’: as if a society is determined by factors originating within that society alone (Rosenberg, 2016).3 This makes it difficult to explain why different societies often have similar security imaginaries. By breaking with internalism, national imaginaries can be understood as inherently international in the sense that they are deeply affected by coexistence with other societies. For Pretorius (2008), ‘the security imaginary is . . . open to influence from perceptions, beliefs and understandings of other societies about security’ due to ‘trans-societal exchanges’ such as travel (p. 112). But in a deeper way, the mere existence of multiple societies is fundamental to the whole idea of (national) security (Rosenberg, 2016). In addition, if the Arctic is considered a ‘regional security complex’ (Lanteigne, 2016) such that the security imaginary of societies in a region ‘cannot be reasonably analysed or resolved independently of each other’ (Buzan and Wæver, 2003: 44), then relations between societies become constitutive, even, of security imaginaries of that region. Scientific communities – in this case geoengineering researchers – can produce a different ‘map of social space’ from national ones, since the groups (in one version ‘epistemic communities’ (Haas, 1992)) producing these are not necessarily national, and use different tools and concepts than national security communities. At the same time, scientists are rarely unaffected by their backgrounds, and their technical and conceptual tools for producing such a ‘map’ reflect traces from state priorities and international structures, including colonial legacies (Mahony and Hulme, 2018). State and scientific security imaginaries are thus distinct but not separate, and as we shall see, they can clash or draw upon each other, often implicitly. The security imaginary concept captures three important characteristics of our empirical materials. First, geoengineering ideas and state security strategies are performative (rather than purely descriptive) in their anticipation of (Arctic) futures (Anderson, 2010). Second, they are based on understandings of social order which merge factual and normative claims – what is and what should be (Taylor, 2004). Third, they construct threats and necessary responses in terms of the security of that social order, irrespective of whether those threats are of a military nature or otherwise (e.g. a climatic threat); in other words, they can securitise a variety of referent objects (Buzan et al., 1998). In investigating scientific and state security imaginaries, we focus on the difference in the construction of two objects: climate and the international order. We ask: how is the ‘Arctic climate’ articulated and made legible in relation to the planetary climate and other factors, and further, how is the Arctic climate problematised and related to concerns of desirable or undesirable futures? What political, economic and international infrastructures are presumed? In sum, what threatens and what defends Arctic and international order? To explore the security imaginaries of Arctic geoengineering, we gathered materials that construct Arctic futures through searches in the peer-reviewed literature with the search terms ‘Arctic’ and ‘geoengineering’ using , as well as search hits on the term ‘Arctic’ in the archive of the Climate Engineering Newsletter run by the Kiel Earth Institute,4 which also covers grey literature and press coverage on the topic.5 We manually excluded texts exclusively focused on carbon removal forms of geoengineering, except those with positive effects on the surface albedo. For the state security imaginaries of the Arctic, we consulted policy documents and other official government publications looking for the most recent policy statement in each of the littoral states: Canada, the United States, Russia, Norway and Denmark (which controls the security and foreign policy of Greenland) concerning their respective Arctic security strategy.6 Public documents are often used as data in security studies as testaments to state preferences or intentions, despite the often performative character of such documents. Such documents generally attempt to portray the institutions that produce them as competent and coherent – and of value to particular external audiences. As such they are potentially unreliable as sources for underlying intentions, levels of capacity and commitment behind policy goals. However, as documents set out to perform a future which is seen as desirable – either by the authors themselves or the audiences they appeal to – they are a useful guide to the underlying assumptions of social and international order guiding Arctic security politics – the state security imaginaries, in other words. We therefore study them for their performative content, with particular emphasis on the intended audiences and messages (Coffey, 2014). Similarly, geoengineering publications also perform a material and political Arctic future to advance scientific or research agendas, and we therefore analyse the underlying imaginary of their desired futures, without prejudice to the climatological or technical feasibility of the envisioned schemes. However, as the imaginaries of many researchers typically invoke global benefits from Arctic geoengineering, in particular through preventing tipping events, it bears mentioning that recent literature questions these benefits. Research indicates that that some techniques (ice restoration in particular) would have limited impacts on the global climate (Van Wijngaarden et al., 2024; Webster and Warren, 2022; Zampieri and Goessling, 2019), and a recent comprehensive review finds only limited support for the claim that Arctic sea ice is a tipping element in the climate system (Lenton et al., 2023: 58–60, 66–68). Even so, it should not be assumed that scientific considerations alone will drive decisions to geoengineer the Arctic, and the growing interest in these ideas makes it important to examine their political imaginaries. Finally, we must acknowledge the highly consequential difference in the power to securitise between the actors which produce the imaginaries. The state apparatuses producing the state security imaginaries are more aligned with, and therefore more likely to influence, actors with the power to securitise (Floyd, 2021). We read both sets of imaginaries in this light. The ‘great white shield’: scientific security imaginaries In geoengineering studies and policy papers, the Arctic is foremost understood as a part of the global climate system (Corry, 2017a), with focus placed on potential tipping points in terms of alarming above-average warming, the sea ice albedo feedback and the potential release of methane and carbon dioxide from thawing permafrost or undersea clathrates. These may push the Earth into feedback cycles of further warming. The Arctic is therefore seen as a ‘great white shield’ for the global climate, but a fragile one: ‘the weakest link in the chain of climate protection’ (Zaelke, 2019: 241). Many of those advocating exploration of Arctic geoengineering argue that emissions cannot be reduced in time to prevent tipping points. One paper contends that cryospheric tipping points ‘are essentially too late to address by standard political processes [for climate management]’ (Moore et al., 2021: 109). This pessimistic assessment spawns a complementary opposite: hopes that geoengineering might prove especially feasible and desirable in the Arctic, with associated aspirations for near-term experimentation and potential deployment. One researcher coined the term ‘Arctic Premium’, arguing that the particular climatic characteristics of the region will enable ‘a dividend for regionally based climate interventions that could be less expensive, more effective and achieve faster results than if they were targeted over the whole earth’ (Littlemore, 2021: 2) – the Arctic imagined as an effective and relatively accessible lever for operating on the global climate system as a whole.7 While regional benefits such as the preservation of ice-dependent Indigenous ways of life are sometimes mentioned (Moore et al., 2021: 110), this tends to occur when regional benefits align with what are understood as global climatic interests. This instrumental attitude can also be seen in proposals that, echoing some of the early literature on SG (Lane et al., 2007; Robock et al., 2008), see the Arctic as a testing ground. These include ‘SCoPEx’, which would have tested SAI equipment over Indigenous Sámi land, and the suggested use of the Sermeq Kujalleq glacier in Greenland – Inuit territory – as a prototype for more substantial glacial geoengineering in the Antarctic. The Sermeq Kujalleq proposal is justified on the basis of ‘fewer global environmental impacts’, despite the considerable amount of local socio-environmental impacts and acknowledgement that ‘the reactions of local people would be mixed’ (Moore et al., 2018: 304). In a quote that sums up the assessment of most researchers Bodansky and Hunt (2020) argue that ‘as bad as Arctic melting is for the Arctic itself, its global effects are more concerning’ (p. 601). The concern with global effects infuses scientific security imaginaries with urgency. The ostensible ‘speed’ (Zaelke, 2019: 244) of SG is contrasted with the slowness of politics, emissions reductions and large-scale carbon removal.8 In many cases, such invocations of urgency lead to claims that geoengineering is necessary: that ‘excluding polar ice restoration could make the 1.5° C goal impossible to achieve’ (Field et al., 2018: 883) or that ‘more and more people see geoengineering as a necessity more than an option, making it a matter of when rather than if’ (Barclay, 2021: 4). One proposal notes that ‘these are expensive propositions, but within the means of governments to carry out on a scale comparable to the Manhattan Project’ (Desch et al., 2017: 121); others also specify funding by rich states as the way to move forward on research and deployment (Moore et al., 2021). The urgent threat of Arctic climate change is seen as a job for decisive state action, and thus, it is argued to be salient in so far as it appears as a universal threat to state interests. At the same time, the causes of climate change are downplayed and depoliticised across the literature. Attributing climate change to emissions from ‘human societies’ (Beer et al., 2020: 1), the literature frames out the vastly unequal responsibility for climate change and the social and economic dynamics driving historical and continued emissions.9 One policy paper neglects social causes of climate change altogether, contrasting geoengineering only to ‘conventional mitigation policies’ (Bodansky and Hunt, 2020: 597) and ‘decarbonisation of the global economy’ (p. 616). In this way, Arctic climate change is constructed as a global security threat, seen as stemming from the ‘tight couplings within global systems, processes, and networks’ (Miller, 2015: 278) rather than the actions of any specific group of humans, and as a threat to global ‘human security’ and therefore not subject to the division and distrust of international politics. In this, the imaginary resembles much liberal environmentalism in International Relations, characterised by a ‘global cosmopolitanism’ which does not seriously engage with inequalities of power and intersocietal difference (Chandler et al., 2018: 200). This imaginary is probably adopted to construct scenarios for technical research, since it fits neatly with modelling tools that produce visions of geoengineering in purely technical Earth system terms. But the liberal imaginary also shapes assessments of political feasibility and could impinge on the technical design of geoengineering schemes, including in ways that can be hard to unpick when the research enters the political sphere. Most publications entirely omit considerations of state security, including some papers that focus on governance (Bodansky and Hunt, 2020; Moore et al., 2021). The mentions of security that do exist are brief and vague: C2G (2021) notes that ‘evidence suggests potential security issues may arise’ (p. 2) in the case of SAI. Another paper notes as an example of ‘geo-political . . . friction’ that ‘Arctic regions such as Russia, Alaska and the Canadian Yukon would be providing a global public good . . . which would add a major new dimension to international relations’ (Macias-Fauria et al., 2020: 10), suggesting that geoengineering can be adequately grasped through rationalist decision frameworks where global public goods offer non-rival and universal benefits, which is disputed (Gardiner, 2013). In the research, the omission of geopolitics is justified by relegating it as a problem which only concerns the ostensibly more controversial techniques such as SAI deployed globally. There is a hope that ‘Arctic interventions pose less of a governance challenge than global climate interventions’ (Bodansky and Hunt, 2020: 609). This rests on the twin claim that the physical effects of Arctic interventions will be more limited and therefore less risky and that the Arctic’s political environment is more conducive to geoengineering than the ‘global’ polity as a whole. In terms of physical effects, many Arctic interventions are argued to be ‘low-risk’ (Barclay, 2021: 4) due to fewer and less severe environmental side effects. What Zaelke (2019) calls ‘soft geoengineering’ (p. 243) approaches are presented as ‘more natural’ (Littlemore, 2021: 2) than the most commonly considered SG techniques such as SAI or MCB which involve physical and chemical manipulation of the atmosphere.10 In particular, efforts to restore sea ice without atmospheric interventions are promoted highlighting the ostensibly more ‘natural’ character of their intervention (Field et al., 2018: 899). ‘Unlike other [SG] methods, thickening sea ice is attractive because it merely enhances a naturally ongoing process in the Arctic’, claims one proponent (Desch et al., 2017: 112). Efforts at ecological intervention in ecosystems to halt permafrost thaw are also described as ‘a return to a more “natural state”’ (Moore et al., 2021: 111). ‘Soft’ geoengineering concepts are in many cases linked to discourses of conservation, with the sometimes-explicit expectation that this will make them more benign and less politically controversial: ‘Since it is rooted in the preservation of the existing state rather than introducing new and undeniably controversial elements into the atmosphere, it likely presents easier governance challenges’ (Moore et al., 2021: 116). Such distinctions between ‘natural’ and ‘unnatural’ interventions may well facilitate cooperation around some methods, but notions of ‘natural’ are also situated, making distinctions inevitably difficult to maintain in practice. While aiming to preserve select parts of the Arctic environment (such as land ice, sea ice or permafrost), geoengineering interventions will likely also introduce significant changes and risks to Arctic ecosystems (Miller et al., 2020; Van Wijngaarden et al., 2024).11 In this way, ostensibly ‘natural’ Arctic interventions would lead to unprecedented anthropogenic – and for others therefore ‘unnatural’ – impacts on ecosystems in the Arctic and possibly beyond, since remote impacts are plausible but not yet well understood.12 This reveals an imaginary prevalent among proponents of Arctic geoengineering, where a distinct construction of ‘natural’ emerges to bridge aspirations of technical manipulation of the climate with what scientists see as palatable to (or believe to be) social ideals of ‘nature’. In addition, the adjectives used to describe ‘soft’ geoengineering – ‘targeted’ (Moore et al., 2021: 108), ‘localized’ (Latham et al., 2014: 3), ‘reversible’ (Barclay, 2021: 4) and ‘intelligent’ (Field et al., 2018: 900), all point to an imaginary where aspirations towards the ‘natural’ are combined with expectations of fine-grained, scientifically calibrated control. As Zaelke (2019) explicitly suggests, ‘in other words, we have control over soft geoengineering’ (p. 243) – the ‘we’ here left ambiguous. The idea of having a relatively large degree of control originates in restraint vis-a-vis ‘global’ SG, in that it recognises large risks from attempting to control the global climate system as such. But this sense of fine-grained control may also encourage more Promethean dreams of a ‘designer climate’ (Oomen, 2021), as speculation over future possibilities of ‘fine-tun[ing] the flows of heat, air and water’ using localised MCB indicates (Latham et al., 2014: 10). In terms of the Arctic’s political environment, discourse on the feasibility of geoengineering reveals further elements of a liberal imaginary, relying on (existing or imagined) international law and institutions, distributive justice and consequentialist ethics (Baiman, 2021; Barclay, 2021), a focus on cost minimisation (Desch et al., 2017; Field et al., 2018) and market-based approaches such as payments for ecological services (Moore et al., 2021) or carbon credits (Macias-Fauria et al., 2020) in the implementation of geoengineering schemes. Taken together, such measures rather well resemble a ‘liberal cosmopolitan framework through the advocacy of managerialism rather than transformation; the top-down coercive approach of international law; and use of abstract modernist political categories’ (Chandler et al., 2018: 190). Distributive notions of justice and consequentialist ethics are arguably also at the root of claims that local populations in the Arctic, including its Indigenous peoples, may be uniquely receptive to geoengineering schemes. While many advocate public engagement (Desch et al., 2017; Macias-Fauria et al., 2020) and stress that ‘Northern people who use and depend upon the existing landscape need a strong voice’ (Littlemore, 2021: 3), there is a general expectation that such engagement will not be prohibitively conflictual. One policy scholar suggested that ‘given that Northern people are already seeing the effects of climate change, the North may be a place for a more pragmatic, constructive, and legitimate deliberative discussion on Arctic interventions’ (Ted Parson, quoted in Littlemore, 2021: 5). Other researchers have concluded that using SAI would conserve ‘indigenous habits and lifestyles’ in the Arctic (Chen et al., 2020: 1) as a direct consequence of reducing permafrost thaw. These assumptions were strained by the SCoPEx controversy, where the Sámi Council strongly opposed the experiment planned in their territory (Cooper, 2023). Equally, Arctic populations (Indigenous and non-Indigenous) have varied interests that cannot be assumed to be oriented to preventing or reversing Arctic climatic change, some seeing new opportunities for economic development and potentially political independence in the case of Greenland (Jacobsen, 2020). Political feasibility of geoengineering plans is often assessed through legal analyses that weigh up specific techniques and target environments in relation to existing treaties and other legal regimes (Barclay, 2021; Bodansky and Hunt, 2020). Some place hope in techniques such as permafrost/glacier preservation that may be deployed within the bounds of a single nation’s territory, which would, in their view, sidestep the need for international governance altogether: ‘for example, Russian and Canadian policies could change the carbon released from thawing permafrost. Similarly, Greenland’s ice sheet would be the primary responsibility of the Greenlanders’ (Moore et al., 2021: 109). While such techniques might be localised in effect, and only intended to slow climate feedback effects such as the rate of ice loss, inclusion of such measures in market credit schemes, as attempted by the Real Ice project,13 could prove controversial and under some conditions undermine any SG-based climate effect (Fearnehough et al., 2020: Chapter 3). For cross-border geoengineering schemes, the Arctic Council14 is in some cases highlighted as a favourable site for governance (Desch et al., 2017). One paper calls it an ‘obvious institution’ for international governance of Arctic geoengineering in general, contending that ‘because of its relatively small size, the Arctic Council has been a relatively effective forum to develop regional policies relating to the Arctic’ (Bodansky and Hunt, 2020: 610). However, in a later article, one of the authors described the Arctic Council as ‘an informal institution that lacks any regulatory powers and shows no signs of being up to the task of taking significant action’ on Arctic climate change (Bodansky and Pomerance, 2021: 2). Moore et al. (2021) similarly contend that ‘the Arctic Council is not a true international organization with rule-making power’ (p. 113). Yet Moore et al. (2021) still argue the Arctic is a politically tractable space for geoengineering due to the low number of states that would need to come to an agreement – in contrast to global SG which ‘would ideally need at least near-global consensus’ (p. 109). This reveals an important complexity in the concept of globality that permeates the geoengineering imaginaries. While the Arctic, as we showed above, is instrumentalised for a global community – operated on to mitigate climatic effects across the planet – it is also differentiated from ‘global interventions’ that take the global Earth system as their direct object of intervention (Bodansky and Hunt, 2020: 597). As Moore et al. (2021) state explicitly, ‘targeted geoengineering is done on regional scales but aims to conserve the various parts of the global climate and earth system’ (p. 109). The politically salient objects are imagined to be the methods of intervention, spatially bounded in the Arctic region while the intended global climatic effects are in effect rendered unproblematic and therefore without need for governance. Arguably this reflects a common assumption that governance is only relevant in the case of ‘adverse or unintended effects’ (Barclay, 2021: 5) – the intended effect of albedo modification implicitly understood as an unambiguous global public good. On a technical level, this assumption is questionable – since remote consequences of Arctic geoengineering are not yet well understood. But more crucially, the assumption projects exactly those liberal rationalist norms which are argued to be especially present in the Arctic on to the wider geopolitical context. The specific imaginary constructed to justify regional geoengineering interventions as politically feasible while still being part of a global solution to climate change cannot work without a general liberal imaginary of international politics. Otherwise, the global effects of regional interventions would threaten to undo the validity of the ‘regional feasibility’ argument. Arctic state security imaginaries The history of scientific research in the Arctic reveals the liberal security imaginaries underlying Arctic geoengineering to be a relatively recent phenomenon. Doel et al. (2014) describe the intertwinement of 20th-century Arctic research projects and three broad state goals, shared to varying degrees by all littoral states: national security, exploitation of natural resources and extension of territorial sovereignty to disputed areas. When intercontinental and submarine-launched ballistic nuclear missiles were introduced from the late 1950s, the Arctic became a ‘buffer zone’ between the Cold War powers, experiencing a continuous period with low military activity and absence of conflict that likely paved a way for increased cooperation after the Cold War, with Mikhail Gorbachev famously declaring the Arctic a ‘zone of peace’ (Gjørv and Hodgson, 2019: 2). The Arctic came to be seen as an ‘exceptional’ region in the post-Cold War period, where institutionalised multilateral cooperation on regional issues, particularly environmental and scientific activities, could blossom (Lackenbauer and Dean, 2020). In this section, we examine recent state strategies and developments in the Arctic to assess the contours of the current leading security imaginary among Arctic states. The key characteristic of Arctic exceptionalism is that geopolitical conflicts and tensions from outside the Arctic are excluded from affecting cooperation on internal Arctic issues and that, as a corollary, specifically ‘Arctic issues’ are compartmentalised: ‘Actors . . . can talk about everything except contentious issues, not least military security’ (Gjørv and Hodgson, 2019: 3, original emphasis). However, this compartmentalisation is hard to find in recent state assessments. The US emphasised in 2019 that ‘The Arctic remains vulnerable to “strategic spillover” from tensions, competition, or conflict arising in these other regions’ (United States Department of Defense (USDOD), 2019: 6). In 2020, the Danish Minister for Foreign Affairs spoke of ‘a new security-political dynamic in the region. Disagreements and conflicts originating in other areas of the world are also being expressed in the Arctic’ (Kofod, 2020: 1).15 For the four North Atlantic Treaty Organization (NATO) members in the Arctic littoral, such concerns were obviously directed at the only non-NATO state: Russia (even before the invasion of Ukraine). Denmark expressed concern over ‘the Russian build-up of military capabilities’ (Kofod, 2020: 2); Norway stated that ‘Russian build-up of forces and military modernisation can challenge the security of Norway and allied countries directly’ (Royal Ministry of Foreign Affairs (RMFA), 2020: 23) and cited the Russian annexation of Crimea as a key moment in increased tensions and deteriorating optimism regarding peaceful cooperation in the Arctic (RMFA, 2020: 10). Russia, for its part, described ‘military buildup by foreign states in the Arctic and an increase of the potential for conflict in the region’ as a ‘challenge’ (Office of the President of the Russian Federation (OPRF), 2020: 5). Among the NATO states, these assessments have for several years been accompanied by a call for deeper military cooperation. Denmark has pledged to ‘support NATO’s role in the Arctic and the North Atlantic’ (Ministry of Foreign Affairs of Denmark, 2022: 23), a change from previous strategy documents which stressed that ‘enforcement of the realm’s sovereignty is fundamentally the responsibility of the realm’s authorities’ (Ministry of Foreign Affairs of Denmark, Greenland and the Faroe Islands, 2011: 20). Canada aims to ‘increase surveillance and monitoring of the broader Arctic region’ in collaboration with the United States, Denmark and Norway (Government of Canada, 2019: 77), while Norway in 2021 negotiated a deal with the United States to allow it access to two Arctic military installations – the Ramsund Naval Base and the Evenes Airfield. Trust has only deteriorated further since Russia’s full-scale invasion of Ukraine in 2022. All Arctic Council member states except Russia announced they would suspend participation in council meetings because of the invasion, subsequently announcing a ‘limited resumption’ of projects without Russian participation (Global Affairs Canada, 2022). The recent US Arctic strategy describes ‘increasing strategic competition in the Arctic . . . exacerbated by Russia’s unprovoked war in Ukraine’ (The White House, 2022: 3) and claimed that ‘Russia’s war of aggression against Ukraine has rendered government-to-government cooperation with Russia in the Arctic virtually impossible at present’ (The White House, 2022: 14). Russia interprets Arctic politics on similar terms; the Arctic ambassador has stated that the Finnish and Swedish bids to join NATO ‘will of course lead to certain adjustments in the development of high altitude [sic] cooperation’ (quoted in Staalesen, 2022). This dynamic of de-exceptionalisation, where the Arctic is increasingly reintegrated into great power politics, is the contemporary context in which the littoral states interpret the region’s present and future climatic changes. The state goals associated with early and mid-20th century Arctic science are reappearing as a background for envisioning the impact of climate change. Of the three goals identified by Doel et al. (2014), assertion over disputed territories is arguably of lesser importance today. All states have indicated a willingness to settle territorial continental shelf disputes via international law, and such statements are generally accepted by commentators as genuine (Østhagen, 2018). But the goals of military national security and extraction of natural resources are growing in salience, and changing in character, as the ice melts and the permafrost thaws. In contrast to the geoengineering literature, climate change is rarely addressed as a primary threat in state policies but described in more restricted terms. Adaptation problems from ‘sea-ice loss, permafrost thaw and land erosion’ (Government of Canada, 2019: 63) are emphasised, and both Canada (Government of Canada, 2019: 18) and Norway (RMFA, 2020: 14) describe climate change as a cultural threat to Indigenous peoples. Nonetheless, the task of emission reductions does not figure as a specifically Arctic objective (e.g. RMFA, 2020: 14). In this way, climate change figures less as a problem that must urgently be dealt with and more as an unavoidable condition of Arctic politics. In the context of military security objectives, climate change is understood primarily as a driver of increased navigability and accessibility of the Arctic. The US Navy anticipates an increasingly ice-free ‘blue Arctic’, where ‘peace and prosperity will be increasingly challenged by Russia and China, whose interests and values differ dramatically from ours’ (United States Department of the Navy, 2021: 2). Cold War-era interpretations of the Arctic’s geographical significance are being reinvigorated: Canada stresses the importance of maintaining air and missile capabilities in its Arctic region due to its location along the shortest path from Russian to US territory (Government of Canada, 2019: 77). And as the region becomes more accessible, it rises in strategic importance. The US Department of Defense presents the Arctic as ‘a potential corridor – between the Indo-Pacific and Europe, and the U.S. homeland – for expanded strategic competitions’ (USDOD, 2019: 6) and stresses that ‘maintaining freedoms of navigation and overflight are critical to ensuring that . . . U.S. forces retain the global mobility guaranteed under international law’ (USDOD, 2019: 13). The increased accessibility of the Arctic also brings new hopes of further use of the region’s natural resources as a vehicle for economic growth (Keil, 2014). Such goals have become intertwined with development discourses and policies that focus on lack of modern infrastructure, low employment and population decline and, in this way, align the economic objectives of faraway capitals with local concerns. Canada aims to ‘close the gaps and divides that exist between this region, particularly in relation to its Indigenous peoples, and the rest of the country’ (Government of Canada, 2019: 36) and presents these gaps in a consumerist national imaginary where being ‘full participants in Canadian society’ means having ‘access to the same services, opportunities and standards of living as those enjoyed by other Canadians’ (Government of Canada, 2019: 36). The Russian government frames its Arctic policy goals in terms of avoiding a dystopia of a depopulated region lacking economic growth, and such fears are directly presented in security terms: ‘population decline’ and ‘insufficient development’ of infrastructure and business are named ‘primary threats to national security’ (OPRF, 2020: 4–5). In Norway, Northern depopulation is presented as a key concern to be addressed through investment in public education and business infrastructure (RMFA, 2020: 11). The emphasis in such ‘development’ is on natural resources such as fossil fuels and rare earth minerals, trans-Arctic shipping routes and tourism. Russia is particularly clear in its focus on fossil fuels; ‘increasing oil and gas extraction rates, advancing oil refining, and producing liquefied natural gas and gas-chemical products’ are considered ‘primary objectives for the economic development of the Arctic zone’ (OPRF, 2020: 7). The development of the Northern Sea Route as a ‘competitive national transportation passage in the world market’ is named a ‘primary’ Russian national interest (OPRF, 2020: 4). Other states also emphasise ‘new economic opportunities, for example in the form of new maritime routes and extraction of natural resources’ (Kofod, 2020: 1). In some states, the role of fossil fuels in extractive ambitions is arguably receding. In its previous Arctic strategy, the US anticipated the Arctic’s role in ‘future United States energy security’ through its ‘proved and potential oil and gas natural resources that will likely continue to provide valuable supplies to meet U.S. energy needs’ (The White House, 2013: 7). Now, ‘the Arctic’s significant deposits of in-demand minerals essential to key technology supply chains’ (The White House, 2022: 6) have ostensibly replaced fossil fuels as the main extractive interest. Yet such shifts leave intact visions of major extractive operations dependent on (or facilitated by) a warming Arctic. More generally, there is an assumption of compatibility between interests in extractivism and economic growth and climate and environmental policies. Imagined futures contain ‘safe and environmentally-responsible shipping’ (Government of Canada, 2019: 49), ‘the sustainable use of natural resources’ (OPRF, 2020: 9) and ‘sustainable tourism’ (Ministry of Foreign Affairs of Denmark, Greenland and the Faroe Islands, 2011: 24). Technological innovation is, unsurprisingly, anticipated as the main way to realise the sustainability of these activities. In contrast to this assumed compatibility with environmental objectives, the economic opportunities are portrayed as in need of protection against interests from other states. The US expresses commitment to protect ‘freedom of navigation’ in the Arctic against perceived Russian threats, alleging that Russia ‘is attempting to constrain freedom of navigation through its excessive maritime claims along the Northern Sea Route’ (The White House, 2022: 6). As described above, this interest in freedom of navigation is partly military, but also acts to protect an economic order. The US argues for ‘a shared interest in a peaceful and stable region that allows the Arctic nations to realise the potential benefits of greater access to the region’s resources’ (USDOD, 2019: 4), underpinned by US military power. Russia, for its part, has named ‘actions by foreign states and (or) international organizations to obstruct the Russian Federation’s legitimate economic or other activities in the Arctic’ a ‘primary challenge to national security’ (OPRF, 2020: 5). Here, China is also constructed by Western states as an economic security threat. While under the President Biden, the US threat perception in the Arctic appears to have shifted to an almost exclusive focus on Russia (The White House, 2022); the prior Trump administration indicated strong concerns that ‘China is attempting to gain a role in the Arctic in ways that may undermine international rules and norms, and there is a risk that its predatory economic behavior globally may be repeated in the Arctic’ (USDOD, 2019: 6), a sentiment shared by Denmark and Norway (Ministry of Foreign Affairs of Denmark, 2022: 23; RMFA, 2020: 11). China is certainly explicit about its ambitions in the Arctic, which it portrays as an increasingly ‘global’ space. It argues that due to the changing environment and increased accessibility, ‘the Arctic situation now goes beyond its original inter-Arctic States or regional nature’, and the stress on ‘global implications’ is used to justify China’s identification as a ‘Near-Arctic State’ and ‘important stakeholder in Arctic affairs’ (english.gov.cn, 2018). Yet contrary to the impression given by Western states, Chinese material and institutional visions for the future are strikingly similar to those of the littoral states: development of shipping routes, materials extraction and tourism under promises of sustainable development and governed by international law (english.gov.cn, 2018). Hence, the mistrust expressed by other states does not concern explicit differences in visions of Arctic futures. Rather, the imaginary of economic development is securitised along the lines of geopolitical blocs, with economic cooperation across these blocs rendered problematic. Implications for the security politics of solar geoengineering Our analysis has revealed stark differences between scientific security imaginaries in the geoengineering literature and the security imaginaries of Arctic states. First, climate change is constructed as a concern in different ways. In the scientific imaginaries, climate change, and especially the prospect of Arctic tipping points, are front and centre. The Arctic is primarily interpreted through its climate-restorative potential, as imagined through computational Earth system models that imagine futures of controlled Arctic climates – and by extension, controlled global climates. By contrast, state imaginaries of the Arctic are not oriented towards preventing climate change but anticipate a mixture of desirable and undesirable outcomes from rising temperatures, which are seen as an inevitable background for the region’s future. Responses to climate change – such as increased demand for rare earth minerals – are becoming issues of concern and questions of security, more so than climate change itself (cf. McLaren and Corry, 2023), which stands as an unquestioned precondition for other strategic decisions. Whether the Arctic should be a venue of increased activity is not in doubt. This stands in sharp contrast to ideas of geoengineering which presuppose that hindering accessibility in the region for economic and military purposes, for example, by restoring sea ice, would be acceptable to all states involved. Second, the scientific security imaginaries exhibit a liberal institutionalist understanding of international politics and rely on a view of the Arctic as a global commons to be leveraged for the needs of an ostensible global humanity. In this, imaginaries of Arctic geoengineering do not differ from their planet-scaled counterparts (McLaren and Corry, 2021), except perhaps in the immediacy of imagined experimentation and deployment. Yet the Arctic case contains a unique contradictory claim. Geoengineering in the Arctic is justified partly by claims that it would be more politically tractable, drawing on discourses of Arctic exceptionalism that see it as a special region where inter-state cooperation on common interests can be shielded from exterior geopolitical dynamics and conflicts. But while the envisaged methods of geoengineering are bounded in the Arctic, they still aim to achieve global climatic effects.16 Prospective geoengineers thus make two further assumptions: that effects outside the Arctic are overall benign and/or that governance is only relevant in the case of unfavourable effects. The latter relies on a liberal rationalist imaginary of world politics, where costs and benefits are readily identified and acted upon, coordinated by institutions if required, undermining the initial presumption that the Arctic can be shielded from global conflictual geopolitics. Especially with the Russian invasion of Ukraine, this idea of Arctic exceptionalism is also increasingly obsolete – the Arctic is undergoing de-exceptionalisation, as indicated by the de facto collapse of the flagship of Arctic multilateralism, the Arctic Council. Schemes that envision deployment of Arctic geoengineering as market-driven are also likely to be less immune to geopolitical obstacles than their developers imagine. Such interventions assume an international order governed by multilateral institutions including markets for carbon removals or ‘cooling credits’. But even for those states which subscribe to similar liberal aspirations, this order is subject to uncertainty, in the Arctic and elsewhere, and is consequently understood as something which must be secured. The mistrust from Western states about China’s interests in the Arctic, although ostensibly similar and compatible with Western aspirations of Arctic futures, highlights the current and increasing uncertainty over the future of such a Western-dominated liberal economic order. Taken together, these differences reveal a deep disjuncture between the security imaginaries of Arctic geoengineering and state strategies. Given the relative strength of state security actors and institutions compared to environmental ones, the political feasibility of Arctic geoengineering appears to preclude a purely environmental logic driving development and/or deployment. It raises the question of which rationales and scenarios would become subject to modification – or disappear completely – to take account of economic, geopolitical, security and other aims. In this light, it is notable that there is one point of convergence between the state and scientific security imaginaries: technological solutionism. States might conceivably adopt geoengineering to partly mitigate Arctic warming (or ice degradation) while still leaving the environment accessible enough for increased resource extraction, transcontinental shipping and tourism. However, such a scenario – a form of mitigation deterrence (McLaren, 2016) – is hardly an expression of the scientific security imaginary, which, having securitised Arctic tipping points as a threat to a global humanity, sees the protection and restoration of the Arctic climate as the overarching priority. Furthermore, far from prospective geoengineers’ expectations that envision the interventions as supported by local and Indigenous populations, this scenario would further instrumentalise the Arctic to the ends of interests outside the region, which clearly amounts to a continuation and intensification of the neo-colonialism that characterises many parts of the Arctic to this day (Greaves, 2016). As clearly indicated by Sámi-led opposition to SCoPEx and opposition to the Arctic Ice Project led by Arctic Indigenous organisations,17 many Arctic Indigenous persons consider SG incompatible with their understandings of sustainability. As a case study, the Arctic provides more general lessons for SG and security. The region has attracted the attention of geoengineering researchers in part because they understand it as a political best case, and the legacy of multilateralism and science diplomacy in the region might seem to support such an assessment. However, even in a such a best case, the underlying imaginaries of geoengineering clash directly with the political ambitions of the states which would need to support, if not implement, the geoengineering interventions. In other words, SG is unlikely to be implemented for the purposes envisioned in scientific circles, in the Arctic context or elsewhere, least of all in the kind of globally ‘optimal’ manner envisaged in computer model experiments. Should further climatological research reveal SG to be technically feasible and climatically desirable – a question not yet settled – the technology would enter the quagmire of an increasingly competitive and conflictual planetary geopolitics and would need to be integrated with state policies that, for the moment, show no signs of adopting climate change as a primary issue. Our conclusions also have implications for McDonald’s (2023) contemplation of geoengineering albeit only ‘in the service of ecological security: a concern with the resilience of ecosystems themselves’ (p. 566). While McDonald acknowledges the problem of finding political purchase for making nature itself the object of security, he does not explore in detail the particular form geoengineering would take as a security measure. Here, we have studied the work of researchers and others who, arguably, invoke ecological security through appeals to necessity or emergency with Arctic ecosystems as the referent object. Through their work to develop geoengineering from general principles into workable interventions (i.e. which technique would be used, how it would be designed, who would be deploying it and where and with what purpose), they appeal to particular understandings of international security. This demonstrates how even attempts to make nature itself the referent object of security in practice depends on understandings about human societies – here theorised as imaginaries. Importantly, these scientific security imaginaries do not appear to align with state security imaginaries. In drawing our conclusions, we do not suggest that state imaginaries alone will determine the future of Arctic geoengineering. We afford them more power relative to the scientific imaginaries, since the former are backed by considerably more institutional, material and discursive power. But imaginaries are dynamic entities subject to change in unpredictable ways. There are prior examples of scientific cooperation between nations under geopolitical strife, including in the Arctic during the Cold War (Bertelsen, 2020), and a scenario where technical cooperation on SG leads to ‘spillover effects’ inducing restorative and sustainable forms of peacebuilding has been suggested as a hypothesis to be investigated (Buck, 2022). Still, there is also a long and consistent history of science being a proxy for and entangled with geopolitics and economics in the region (Doel et al., 2014; Goossen, 2020), and our analysis of Arctic de-exceptionalisation suggests that ‘geoengineering peacebuilding’ is getting increasingly unlikely as tensions continue to rise. A different vein of uncertainty concerns the internal contradictions of state security imaginaries – between the willingness to seize new opportunities for resource extraction and shipping, and other policy goals of environmental protection and national security. How these contradictions are managed, and which aspects are ultimately prioritised, will play a key role in forming the future of the Arctic (cf. Albert and Vasilache, 2018) and in deciding the opportunities for and political desirability of geoengineering interventions. Therefore, while analysing imaginaries can only take us so far in anticipating the security implications of SG, they provide an important foundation for conceptualising the very problems at stake in this anticipation. As climate impacts intensify and the incentives for geoengineering deployment increase – whether as a technocratic ‘climate policy option’ (Irvine and Keith, 2021), as a way of defending empire (Surprise, 2020) or “fossil fuel-dependent ‘ways of life’” (McLaren and Corry, 2023: 1), the imaginaries outlined in this article will be increasingly likely to collide, in the Arctic and elsewhere. AcknowledgmentsThe research for this article was part of the International Security Politics and Climate Engineering (ISPACE) project hosted at the Department of Political Science, University of Copenhagen. The authors thank the three anonymous reviewers for their insightful comments and suggestions and are grateful for comments given to an initial presentation of the research idea at the International Congress of Arctic Social Sciences (ICASS X) in June 2021. N.K. thanks the Copenhagen Center for Disaster Research for hosting him while conducting the analysis for this article in 2022.FundingThe author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This research was carried out with funding from the Independent Research Fund Denmark (Danmarks Frie Forskningsfond).Footnotes1. The latter approaches may also be categorised as ‘nature-based solutions’ or adaptation. In this sense, they are hybrid measures, and we include them here because they also directly or indirectly affect the radiation balance.2. See Centre for Climate Repair. Available at: https://www.climaterepair.cam.ac.uk/refreeze (accessed 5 March 2024).3. For an influential example of internalism, see Jasanoff (2015).4. Now, the ‘carbondioxide-removal.eu’ newsletter. Available at: https://carbondioxide-removal.eu/news/ (accessed 1 August 2023).5. Searches were conducted in the spring of 2022.6. We later chose to include China’s Arctic policy for important additional context.7. In terms of technical effectiveness, some estimates in fact suggest interventions in the Arctic may be less effective than at lower latitudes (Duffey et al., 2023).8. For the latter, see Desch et al. (2017).9. There are some limited exceptions (Baiman, 2021; Moore et al., 2021).10. Although many invocations of soft geoengineering explicitly exclude SAI and MCB, arguments that employ the core distinction between global, risky approaches and more targeted benign ones have also been used to justify Arctic-specific MCB, due to the ‘vastly reduced levels of seeding’ making negative side effects ‘vastly reduced or eliminated’ (Latham et al., 2014: 9). The former UK Chief Scientific Advisor David King has also recently referred to MCB as ‘a biomimicry system’ (The Current, 2022). While much rarer, arguments about reduced side effects have also been applied to Arctic-targeted SAI (Lee et al., 2021).11. Van Wijngaarden et al.’s full review of environmental risks is found in their supplemental compendium (https://doi.org/10.5281/zenodo.10602506).12. We thank an anonymous reviewer for the insight on remote impacts. In the extreme case, strong Arctic cooling without proportional cooling of the Antarctic would create a change in hemispheric heat balance which would most likely shift the Intertropical Convergence Zone southwards, leading to severe decreases in rainfall across the Sahel, parts of the Amazon and Northern India; however, this risk is usually discussed as an outcome of SAI specifically, due to its higher cooling potential (Duffey et al., 2023).13. 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Diplomacy
NEW YORK, USA - JUNE 21 2013 - United Nations security council hall headquartered in New York City, in a complex designed by architect Niemeyer open to public.

The UN in crisis: Justice without power, power without justice

by Francisco Edinson Bolvaran Dalleto

Abstract The United Nations (UN), eighty years after its creation, faces a structural crisis that reveals the tension between justice and power. This essay examines how the design of the Security Council, with its veto power, perpetuates an unequal order inherited from 1945 and limits the effectiveness of the collective security system. Through theoretical perspectives — Morgenthau, Schmitt, Habermas, Falk, and Strange — it is shown that international law remains subordinated to power interests, that proclaimed universality masks hegemonies, and that global economic dynamics lie beyond institutional reach. Cases such as Kosovo, Libya, Gaza, and Myanmar illustrate the paralysis and delegitimization of the Responsibility to Protect. Considering this scenario, two paths emerge: reforming multilateralism with limits on the veto and greater representativeness or resigning to a fragmented order. The conclusion is clear: without adaptation, the UN will become a symbolic forum, making chronic its inability to respond to current challenges. Dag Hammarskjöld, the second Secretary-General of the UN, warned: “The United Nations was not created to take us to heaven, but to save us from hell.” [1] Eighty years after its founding, that promise seems to falter in the face of multiple wars, such as those in Gaza, Ukraine, Sudan, or Myanmar, among many others, with a sense of ineffectiveness, loss of prestige, and collective impotence being perceived: does the UN no longer fulfill the role it once assumed? At first glance, blame falls solely on the nature of the institution itself. But the root of the problem seems to lie not only in New York, but also in the main capitals of the world. The UN is nothing more than what States allow it to be. Its effectiveness depends on the will of those who comprise it; and the uncomfortable truth is that the great powers prefer to limit its scope rather than cede parcels of sovereignty. As John Rawls pointed out, a just international system requires that peoples accept common principles of justice. [2] Today, by contrast, it is a constant that collective interest systematically gives way to particular interest. The Security Council is the most evident symbol of this contradiction. It remains anchored in post-war logic, with five permanent members clinging to the privilege of the veto. That power, already met with skepticism in San Francisco in 1945, turned into a tool of paralysis. As Canada denounced in 2022, the veto is “as anachronistic as it is undemocratic” and has prevented responses to atrocities. [3] Aristotle said that “justice is equality, but only for equals.” [4] In the UN, the Assembly proclaims sovereign equality, while the Council denies it in practice: some States remain “more equal” than others. The UN Charter articulates its backbone in a few luminous rules: the prohibition of the use of force (Art. 2.4), non-intervention in internal affairs (Art. 2.7), and, as a counterbalance, the collective security system of Chapter VII (Arts. 39–42), which grants the Security Council the authority to determine threats to peace and authorize coercive measures. In parallel, Art. 51 preserves the right of self-defense against an “armed attack.” [5] This normative triangle — prohibition, collective security, defense — is the promise of a world governed by law and not by force, but it must be put into practice. In the 1990s, a dilemma arose: what to do when a State massacres its own population or is unable to prevent it? The political-legal response was the Responsibility to Protect (R2P), affirmed at the 2005 World Summit (paras. 138–139). [6] Its architecture is sequential: (I) each State has the primary responsibility to protect its population against genocide, war crimes, ethnic cleansing, and crimes against humanity; (II) the international community must help States fulfill that responsibility; and (III) if a State manifestly fails, the international community, through the Security Council, may adopt collective measures — preferably peaceful ones; as a last resort, coercive — case by case and in accordance with the Charter. Properly understood, R2P is not a license to intervene; it is a duty to protect framed within International Law. The historical record shows both its necessity and its perverse effects. Kosovo (1999) inaugurated, without authorization from the Council, the narrative of “humanitarian intervention,” based on a supposed “legitimate illegality.” [7] The precedent left a dangerous standard: humanitarian purposes invoked to circumvent the hard core of the Charter. Libya (2011) seemed to be the “ideal case” of R2P: the Council authorized “all necessary measures” to protect civilians. [8] However, the shift toward regime change eroded the trust of Russia and China, which since then have blocked robust resolutions on Syria, hollowing out the effectiveness of R2P. [9] The lesson is bitter: when protection is perceived as a vehicle of hegemony, the norm is delegitimized, and the veto becomes reflexive. Gaza and Myanmar display the other face of paralysis. In Gaza, the Council’s inability to impose sustainable ceasefires — despite patterns of hostilities that massively impact the civilian population — has shifted the debate to the General Assembly and the International Court of Justice through interstate actions and provisional measures. [10] In Myanmar, the genocide of the Rohingya mobilized condemnations, sanctions, and proceedings before the International Court of Justice (hereinafter, ICJ), [11] but did not trigger a coercive response from the Council. R2P exists on paper; its implementation is captive to the veto. Thus, the “right to have rights” that Arendt spoke of still depends on geopolitics. [12] History teaches that international law has always been strained by force. Rousseau warned that the strong seek to transform their power into law. [13] That is what the winners of 1945 did by crystallizing their hegemony in the Charter. And so, what Kant dreamed of as perpetual peace remains chained to an unequal order. [14] The UN, more than a republic of law, still seems a field of power. That fragility has opened space for alternatives. The BRICS, for example, have emerged as a heterogeneous bloc that combines the cohesion of historically homogeneous powers such as China and Russia with the diversity of India, Brazil, and South Africa. Paradoxically, their strength lies in articulating that heterogeneity against a common enemy: the concentration of power in the Security Council. [15] In a multipolar world, heterogeneity ceases to be a weakness and becomes a driver of plurality and resistance. The UN crisis is not only about security; it is also economic and distributive. The universalist promise of the Charter (Arts. 1.3 and 55–56, on cooperation for development) coexists with a global financial architecture whose heart beats outside the UN: the IMF and World Bank, designed in Bretton Woods, project a structural power — in Susan Strange’s terms — that conditions public policies, access to liquidity, and investment capacity. [16] The sovereign equality proclaimed in New York becomes blurred when the asymmetry of weighted voting in financial institutions (and the conditionality of credit) makes some States more “equal” than others. This is not a recent claim. Since the 1960s, the United Nations Conference on Trade and Development and, later, the Declaration on a New International Economic Order (1974), sought to correct structural problems such as the deterioration of terms of trade and the dependence between “center” and “periphery” countries, as Prebisch had pointed out. [17] However, the results were limited: ECOSOC lacks teeth, UNDP mobilizes cooperation but fails to change the rules of the system, and the 2030 Agenda sets important goals but without mandatory enforcement mechanisms. [18] The pandemic and the climate crisis have further worsened these inequalities, highlighting problems such as over-indebtedness, the insufficiency in the reallocation of Special Drawing Rights (SDRs), and climate financing that often arrives late and under unsuitable conditions. In this scenario, the New Development Bank of the BRICS emerges, seeking to open a path toward greater financial autonomy for developing countries. [19] International economic justice is the reverse side of collective security. Without fiscal space or technological transfer, the Global South remains trapped between development promises and adjustment demands. The UN has political legitimacy to outline a Global Economic Council (as proposed by the Stiglitz Commission in 2009) [20] to coordinate debt, international taxation, and global public goods, but it currently lacks normative muscle. The result is fragmentation: fiscal minilateralism, climate clubs, and value chains that distribute risks to the South and rents to the North. The solution does not lie simply in “more aid,” but in prudent rules such as: (I) a multilateral debt restructuring mechanism under UN auspices; [21] (II) effective international taxation on intangibles and the digital economy; [22] (III) binding compliance with the loss and damage fund in climate matters; [23] and (IV) a reform of quotas in IFIs that reflects the real weight of emerging economies. [24] Without constitutionalizing — even gradually — this economic agenda, sovereign equality will remain an empty liturgy and the discontent of the Global South a political fuel that erodes the UN from within. The truth is that the United Nations of 1945 no longer responds to the challenges of 2025. As the president of Brazil recently said: “The UN of 1945 is worth nothing in 2023.” [25] If States do not recover the founding spirit — placing collective interest above particular ones — the organization will remain prisoner of the veto and the will of a few. The question, then, is not whether the UN works, but whether States really want it to work. Taking the above into account, this essay will analyze the UN crisis from three complementary dimensions. First, the theoretical and philosophical framework that allows us to understand the tension between power and law will be addressed, showing how different authors highlight the structural roots of this contradiction. Second, historical episodes and current examples will be reviewed to illustrate the paralysis and democratic deficit of the organization. Finally, possible scenarios for the future will be projected, engaging in the exercise of evaluating the minimum reforms that could revitalize multilateralism in contrast to the alternative of critical global fragmentation. Considering all together, the argument is that the UN finds itself trapped between justice without power and power without justice, and that its survival depends on its ability to adapt to an international order radically different from that of 1945. I. The contradiction between power and law: Hans Morgenthau and political realism To understand the paralysis of the UN, it is useful to turn to Hans Morgenthau, a pioneer of realism in international relations. In his work “Politics Among Nations” (1948), he warned that the international order is always mediated by the balance of power and that legal norms only survive to the extent that they coincide with the interests of powerful States. [26] His idea is provocative: international law is not an autonomous order, but a language that powers use so long as it does not contradict their strategic objectives. Applied to the UN, this analysis is clear: the institution reflects less universal ethical commitment and more correlation of historical forces. The Security Council is not a neutral body, but the mirror of the hegemony of 1945, crystallized in Article 27 of the Charter, which enshrines the right of veto. The supposed universality of the UN is subordinated to a mechanism designed precisely to ensure that no action contrary to the superpowers could be imposed. Contemporary critiques confirm Morgenthau’s intuition. When Russia vetoes resolutions on Ukraine, [27] or the United States does the same regarding Gaza, [28] it becomes evident that international justice is suspended in the name of geopolitics. The legal is subordinated to the political. In this sense, the UN crisis is not an accident, but the logical consequence of its design, and what Morgenthau pointed out seventy years ago remains valid: as long as there is no coincidence between law and power, international norms will remain fragile. Political realism helps explain why the UN fails when it is most needed. States continue to act according to their national interests, even when this contradicts the international norms they themselves have subscribed to. The Security Council has become a space where powers project their strategies of influence, blocking collective actions whenever these affect their geopolitical priorities. The war in Ukraine, the invasion of Iraq in 2003, and the inaction in the face of the Rwandan genocide show that international law is applied selectively, reinforcing the idea that rules are valid only when they do not interfere with the power of the strongest. This pattern evidently erodes the legitimacy of the UN in the eyes of societies, because it generates the perception that the organization is incapable of representing the collective interest and, instead, merely reflects the correlation of forces of each historical moment. II. Carl Schmitt and the Myth of Universal Order Another voice that resonates is that of Carl Schmitt, who in “The Nomos of the Earth” (1950) argued that every international legal order arises from a founding political decision, that is, an act of power. [29] For Schmitt, there is no “universal law” that imposes itself; what is presented as universal is, in reality, the crystallization of a particular domain. The UN perfectly embodies this diagnosis. The founding discourse of San Francisco in 1945 spoke of “we the peoples of the United Nations,” [30] but in reality the Charter was written under the predominance of the winners of the Second World War. What was presented as a universal order of peace and security was, in fact, the codification of the Allied hegemony. Schmitt helps explain why the UN has never escaped that original logic. Although the General Assembly proclaims sovereign equality in Article 2 of the Charter, the structure of the Council reproduces the privilege of a few. [31] The international law of the UN appears, in Schmittian terms, as a “nomos” imposed by the winners, not as a true universal community. The consequence is a legitimate deficit that has persisted until today and explains much of the perception of ineffectiveness. The original structure of the UN perpetuates an unequal design that remains in force. The veto privilege is not only a defensive mechanism for the winners of the Second World War, but it has also functioned as a lock — one without keys — that prevents any real evolution of the system. Over eight decades, demands for reform have clashed with the resistance of those who benefit from keeping the rules intact. The contradiction is evident: developing States, which today represent the majority in the General Assembly, lack effective power in the most important decisions on international security. The gap between the universalist discourse of sovereign equality and the hierarchical practice of the Council undermines the credibility of the multilateral order. As long as this tension persists, the UN will hardly be able to become the space of global governance that the world requires more urgently than ever in the 21st century. III. Habermas and the Need for a Deliberative Community In contrast to this pessimism, Jürgen Habermas offers a different perspective. In “The Inclusion of the Other” (1996) and in later essays, he proposed moving toward a “constitutionalization of international law,” understood as the creation of a global normative space in which decisions are not based on force, but on rational deliberation. [32] From this perspective, the UN would be an imperfect embryo of a community of world citizens. The impact of this idea is enormous: it suggests that, beyond current deadlocks, the UN embodies the possibility of transforming power relations into processes of public deliberation. Article 1 of the Charter, which speaks of “maintaining international peace and security” and of “promoting friendly relations among nations,” can be read not only as a political mandate but also as a normative ideal of cosmopolitan coexistence. [33] Criticism of Habermas is evident: his proposal errs on the side of idealism in a world where national security interests remain paramount. However, his contribution is valuable because it allows us to think of the UN not only as a paralyzed body but also as a field of normative struggle. The problem is not only the strength of the vetoes but also the lack of will to transform that space into a true deliberative forum. [34] Thinking of the UN as a deliberative community requires recognizing that its current procedures do not guarantee authentic dialogue. Debate in the General Assembly is often reduced to formal statements, while crucial decisions, as everyone knows, are taken in restricted circles. The lack of effective mechanisms for the participation of non-state actors, such as regional organizations or civil society, further limits the inclusive character of the institution. Genuine deliberation should open spaces where multiple voices can influence decision-making processes, not only through speeches but by building binding consensus. However, the most powerful States fear losing control over the international agenda, which generates a vicious circle: an elitist governance system is maintained that protects privileges, but at the cost of sacrificing legitimacy and effectiveness. Thus, the promise of a deliberative order is reduced to a normative horizon that has not yet been realized. IV. Richard Falk and the Global Democratic Deficit A more recent contribution comes from Richard Falk, jurist and former UN rapporteur, who has insisted on the “democratic deficit” of the international order. In his view, the UN suffers from a structural contradiction: while the Charter proclaims the sovereignty of peoples, in practice it concentrates power in a small club of States. [35] This not only limits its effectiveness but also erodes its legitimacy in the eyes of the peoples of the world. The case of Palestine is emblematic. The General Assembly has repeatedly recognized the right of the Palestinian people to self-determination, but the veto in the Council blocks any effective measure. [36] Falk interprets this as evidence that the UN operates under a “democracy of States” but not under a “democracy of peoples.” The impact is devastating: millions of people perceive the organization not as a guarantor of rights, but as an accomplice to inequality. This leads us to a brief analysis of the International Criminal Court (ICC), born from the Rome Statute (1998), which promised a civilizational breakthrough: that the most serious crimes (“which affect the international community as a whole”) would not go unpunished. [37] Its design is cautious: complementarity (it acts only if the State is unwilling or unable), restricted jurisdiction (genocide, crimes against humanity, war crimes, and — with limits — aggression), and jurisdiction based on territory, nationality, or referral by the Security Council. The two major milestones of the Council — referrals of Darfur (2005) and Libya (2011) —demonstrated both the potential and the limits. There were procedural advances and arrest warrants, but also contested operative clauses and very little cooperation for arrests. [38] The implicit message to the Global South was ambiguous: justice is universal, but its activation depends on the map of alliances in the Council. At the same time, key powers are not parties to the Statute (United States, China, Russia) and yet influence when the Court acts. The result fuels the argument of “winners’ justice” that several African foreign ministries have raised. The Court has tried to rebalance its map: investigations in Afghanistan, Palestine, and Ukraine, as well as arrest warrants against high-ranking authorities in cases of aggression or serious international crimes, have partly disproved the idea of a one-sided persecution. But the Achilles’ heel persists: without State cooperation, there are no executions of warrants; without the Council, there is no activation in key contexts; with the Council, there is a veto. In addition, Article 16 of the Statute allows the Council to suspend investigations for 12 renewable months, a political valve that subordinates the judicial to the geopolitical. [39] Integrating Falk’s critique into this essay makes it possible to highlight that the UN crisis is not only institutional but also democratic. Article 1.2 of the Charter proclaims respect for the principle of equal rights and the self-determination of peoples, but this ideal becomes empty when the veto power systematically contradicts it. [40] The democratic deficit of the UN is not limited to the Security Council but runs through the entirety of its institutional architecture. Developing countries have little influence on global economic governance, despite being the most affected by decisions on debt, trade, or climate financing. Unequal representation in bodies such as the IMF and the World Bank, together with dependence on international cooperation, reproduces relations of subordination that contradict the principles of equality and self-determination. Moreover, world citizenship lacks a real channel of influence: peoples see their demands diluted in state structures that do not always — or almost never — reflect their needs. This divorce between peoples and States turns the UN into an incomplete democracy, where the most vulnerable collective subjects fail to make their voices heard. Overcoming this limitation is essential to restoring the legitimacy of multilateralism. V. Susan Strange and the Geopolitics of the Economy Finally, Susan Strange adds another dimension: the economic one. In “The Retreat of the State” (1996), she argued that power in the contemporary world does not reside only in States, but also in transnational forces — financial markets, corporations, technologies — that escape institutional control. [41] The UN, designed in 1945 under the logic of sovereign States, lacks instruments to govern this new scenario. The impact is evident. While the Security Council is paralyzed in debates over traditional wars, global crises such as climate change, pandemics, or the regulation of artificial intelligence show that real power has shifted toward non-state actors. [42] Strange warns that if international institutions do not adapt to this reality, they risk becoming irrelevant. In this sense, the UN faces not only a problem of veto or representativeness, but also a historical mismatch: it was designed for a world of States and conventional wars, but today we live in a world of transnational interdependencies. The Charter, in its Article 2.7, continues to emphasize non-interference in the internal affairs of States, but this clause seems insufficient to govern global threats that transcend borders. [43] And it is vitally important to note that the global threats of the 21st century do not fit the traditional paradigm of interstate wars that has been preconceived. Challenges such as climate change, pandemics, and technological revolutions pose risks that no State can face alone. However, the UN lacks effective mechanisms to coordinate global responses in these areas. The fragmentation of climate governance, competition for vaccines during the pandemic, and the absence of clear rules to regulate large digital corporations illustrate the magnitude of the challenge. In this context, state sovereignty proves insufficient, and the principle of non-interference becomes obsolete. If the UN does not develop innovative instruments that integrate transnational actors and strengthen multilateral cooperation, it risks becoming a merely declarative forum, incapable of offering concrete solutions to the problems that most affect contemporary humanity — and it is important that these critiques be heard before it is too late. VI. Current Scenarios All the above opens up a momentous dilemma of our time: either we reform multilateralism so that law contains “force,” or we normalize “exception” forever. [44]Scenario A: A minimal but sufficient cosmopolitan reform. A critical group of States —supported by civil society and epistemic communities — agrees to self-limit the veto in situations of mass atrocities (ACT-type codes of conduct), promotes the expansion of the Council with some permanent presence of the Global South (India, Brazil, Germany, Japan, and one African seat, probably South Africa), and strengthens “Uniting for Peace” mechanisms to circumvent blockages. [45] The ICJ gains centrality with advisory opinions politically bound by prior compliance commitments, the ICC ensures interstate cooperation through regional agreements, and the UN creates a rapid civil deployment capacity for the protection of civilians, minimal cybersecurity, and climate response. [46] In the economic sphere, a Global Economic Council emerges within the orbit of the UN to coordinate debt, climate, and international taxation with common standards. [47] Scenario B: Ordered fragmentation of anarchy. Blockages become chronic. Security shifts to ad hoc coalitions and minilateralisms (NATO Plus, QUAD, expanded BRICS), economic governance is decided in restricted membership forums, and the UN remains a symbolic forum without decision-making capacity. [48] Exception becomes the rule: “preventive interventions,” widespread unilateral sanctions, proliferation of private military companies, opaque cyber-operations, and a data ecology controlled by a few platforms. [49] International law endures as a language, but its social force dissipates; incentives push toward strategic autonomy and legal security by blocs. In other words, the future of the UN will depend on its ability to balance justice and force in an international environment marked by multipolarity. I insist that one possible path is to advance toward gradual reforms that strengthen transparency, broaden the representativeness of the Council, and grant greater autonomy to the General Assembly and judicial bodies. Another, far more radical, is the consolidation of parallel mechanisms that de facto replace the role of the UN through regional alliances, ad hoc coalitions, and alternative economic forums. Both paths involve risks: reform may stagnate in the lowest common denominator, while fragmentation may deepen inequalities and conflicts. However, what seems clear is that maintaining the status quo will only prolong paralysis and further weaken the legitimacy of the multilateral system. The choice between reform or irrelevance will, ultimately, be the decisive dilemma of the 21st century. I believe that three milestones will indicate where we are headed: (1) effective adoption of commitments to abstain from vetoes in the face of mass atrocities; (2) funded and operational implementation of the climate loss and damage mechanism; (3) cooperation with the ICC in politically sensitive cases, without ad hoc exceptions. [50] VII. Conclusion: Between Disillusionment and Hope The UN marks eighty years caught in Pascal’s dilemma: “force without justice is tyranny, justice without force is mockery.” [51] The diagnosis is clear: the Security Council has turned justice into a mockery, while the great powers have exercised force without legitimacy. [52] The result is a weakened organization, incapable of responding to the most urgent tragedies of our time. However, it would be a mistake to fall into absolute cynicism. Despite its evident limitations and alongside all that has been mentioned, the UN remains the only forum where 193 States engage in dialogue, the only space where there exists even a minimal notion of common international law. [53] Its crisis should not lead us to abandon it, but rather to radically rethink it. Perhaps the path lies in what Habermas calls a “constitutionalization of international law,” as previously proposed, or in a profound reform of the Security Council that democratizes the use of force. [54] History teaches that institutions survive if they manage to adapt. [55] If the UN does not, it will be relegated to the status of a giant that humanity needs but that is paralyzed, a symbol of a past that no longer responds to the challenges of the present. [56] But if States recover something of the founding spirit of 1945, perhaps it can still save us from hell, even if it never takes us to heaven. [57] VIII. References [1] Dag Hammarskjöld. Hammarskjöld. Citado en Brian Urquhart. New York: Alfred A. Knopf, 1972.[2] John Rawls. The Law of Peoples. Cambridge, MA: Harvard University Press, 1999.[3] Permanent Mission of Canada to the United Nations. Statement on the Veto. UN General Assembly, 26 April 2022.[4] Aristóteles. Política. Traducido por Antonio Gómez Robledo. 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The End of History and the Last Man. New York: Free Press, 1992.[16] Samuel Huntington. The Clash of Civilizations and the Remaking of World Order. New York: Simon & Schuster, 1996.[17] Joseph Nye. Soft Power: The Means to Success in World Politics. New York: Public Affairs, 2004.[18] Joseph Nye. The Future of Power. New York: Public Affairs, 2011.[19] Robert Keohane y Joseph Nye. Power and Interdependence. Boston: Little, Brown, 1977.[20] Robert Keohane. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton: Princeton University Press, 1984.[21] Stephen Krasner. Structural Conflict: The Third World Against Global Liberalism. Berkeley: University of California Press, 1985.[22] Robert Cox. “Social Forces, States and World Orders: Beyond International Relations Theory.” Millennium: Journal of International Studies 10, no. 2 (1981): 126–55.[23] Robert Cox. Production, Power, and World Order: Social Forces in the Making of History. 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The Culture of National Security: Norms and Identity in World Politics. New York: Columbia University Press, 1996.[32] Friedrich Kratochwil. Rules, Norms, and Decisions: On the Conditions of Practical and Legal Reasoning in International Relations and Domestic Affairs. Cambridge: Cambridge University Press, 1989.[33] Nicholas Onuf. World of Our Making: Rules and Rule in Social Theory and International Relations. Columbia: University of South Carolina Press, 1989.[34] Christian Reus-Smit. The Moral Purpose of the State: Culture, Social Identity, and Institutional Rationality in International Relations. Princeton: Princeton University Press, 1999.[35] Martha Finnemore y Kathryn Sikkink. “International Norm Dynamics and Political Change.” International Organization 52, no. 4 (1998): 887–917.[36] Michael Barnett y Martha Finnemore. Rules for the World: International Organizations in Global Politics. Ithaca: Cornell University Press, 2004.[37] Ian Hurd. After Anarchy: Legitimacy and Power in the United Nations Security Council. Princeton: Princeton University Press, 2007.[38] Allen Buchanan y Robert Keohane. “The Legitimacy of Global Governance Institutions.” Ethics & International Affairs 20, no. 4 (2006): 405–37.[39] Thomas Franck. The Power of Legitimacy among Nations. New York: Oxford University Press, 1990.[40] David Held. Democracy and the Global Order: From the Modern State to Cosmopolitan Governance. Stanford: Stanford University Press, 1995.[41] Ian Hurd. After Anarchy: Legitimacy and Power in the United Nations Security Council. Princeton: Princeton University Press, 2007.[42] Permanent Mission of Canada to the United Nations. Statement on the Veto. UN General Assembly, 26 April 2022.[43] Oliver Stuenkel. The BRICS and the Future of Global Order. Lanham: Lexington Books, 2015.[44] Naciones Unidas. World Summit Outcome Document. A/RES/60/1, 24 October 2005.[45] Corte Internacional de Justicia. Advisory Opinions. La Haya: CIJ, varios años.[46] Naciones Unidas. Report of the High-level Panel on Threats, Challenges and Change. A/59/565, 2 December 2004.[47] Samuel Huntington. The Clash of Civilizations and the Remaking of World Order. New York: Simon & Schuster, 1996.[48] Robert Keohane. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton: Princeton University Press, 1984.[49] Thomas Franck. The Power of Legitimacy among Nations. New York: Oxford University Press, 1990.[50] Joseph Nye. The Future of Power. New York: Public Affairs, 2011.[51] Blaise Pascal. Pensées. París: Éditions Garnier, 1976.[52] Brian Urquhart. Hammarskjöld. New York: Alfred A. Knopf, 1972.[53] Naciones Unidas. Charter of the United Nations. San Francisco: Naciones Unidas, 1945.[54] Jürgen Habermas. The Postnational Constellation: Political Essays. Cambridge, MA: MIT Press, 2001.[55] John Ikenberry. Liberal Leviathan: The Origins, Crisis, and Transformation of the American World Order. 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