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Energy & Economics
EURO vs. Yuan. European and Chinese flags

Overcoming an EU-China trade and trust deficit

by Shairee Malhotra

Beijing seeks normalisation of ties with Europe; however, for Brussels, reconciliation will be conditional on Beijing’s willingness to address fundamental divergences On 7-8 December, European Commission President von der Leyen and European Council President Charles Michel will be in Beijing for the 24th European Union (EU)-China summit, but the first in-person one in four years, taking place at a critical juncture in EU-China ties. At the previous EU-China virtual summit in April 2022, the Ukraine conflict was the primary talking point for the Europeans and other issues such as climate and economics were relegated to the back burner. This time, the focus is likely to be economics. A relatively constructive meeting between United States (US) President Joe Biden and Chinese President Xi Jinping on 15 November, which led to the resumption of US-China high-level military dialogue and Xi’s assurances on Taiwan, has contributed to paving the way for the EU to focus on ironing out economic irritants. Deficits, dependencies and de-risking With daily EU-China trade amounting to 2.2 billion euros, the EU is concerned about its widening goods trade deficit with China—400 billion euros in 2022—referred to by EU Ambassador to China, Jorge Toledo, as the “highest in the history of mankind”. In the context of China’s restrictive environment for foreign companies, the EU is keen for a level playing field and greater reciprocity in trade. Another major area of contention is Chinese overcapacity through subsidies in key industrial export sectors such as electric vehicles (EVs) that are undermining European automotive industries. The European Commission has already launched a probe for the EVs sector and is now considering other major sectors including wind energy and medical devices. In addition, Europe is heavily dependent on critical raw materials such as lithium and gallium from China, which are intrinsic to its green transition. While over 90 percent of the EU’s supply of raw materials comes from China, the EU aims to address this dependency through its Critical Raw Materials Act. Factors such as Chinese aggression in the South China Sea, human rights violations in Xinjiang, and pandemic-era supply chain disruptions have deteriorated European perceptions of China. The downswing in EU-China ties was further accentuated by Beijing’s posture in the Russia-Ukraine conflict and the failure of European leaders to coax China to positively use its influence with the EU’s most immediate security threat, Moscow. Thus, a major trust deficit has accompanied the trade deficit. On 6 November, only a month before the summit, von der Leyen in her speech warned against “China’s changing global posture” with its “strong push to make China less dependent on the world and the world more dependent on China”. While acknowledging China as Europe’s most important trading partner, she emphasised the “explicit element of rivalry” in the relationship. Another dialogue of the deaf? The EU and its member states are recalibrating their China policies, with countries such as Germany even releasing China-specific documents outlining their approach. The EU’s “de-risking” strategy aims to reduce dependencies in critical sectors, and through an expansion of its policy toolbox, the Union is implementing a range of measures including greater scrutiny of inbound-outbound foreign investments, anti-coercion instruments, and export controls for dual-purpose technologies. In this context of an evolving European approach, the upcoming summit is a much-anticipated one for EU-China watchers. Despite the strain in relations, high-level diplomatic exchanges have continued in full swing, many of which, such as von der Leyen’s visit to China in April, EU Trade Commissioner Valdis Dombrovskis’s visit in September, and EU Foreign Policy Chief Josep Borrell’s visit in October were conducted in preparation for this summit. A sluggish Chinese economy gives Europe room to wield its economic leverage. However, grey areas in Europe’s China policy remain, especially with regard to the implementation of measures and the need for more effective coordination, often compromised by a lack of unity amongst member states and tendencies of leaders such as French President Emmanuel Macron and German Chancellor Olaf Scholz to prioritise business interests over all else. Thus, straddling the fine balance between economic opportunities and security risks will continue to be a test for how Europe manages its interdependence with the lucrative Chinese market. Previous EU-China summits have not produced a joint statement, and according to sources, this summit is unlikely to produce one as well. Yet it is an opportunity for the EU to put forward unresolved concerns and forge some common ground. Without concrete deliverables, the upcoming summit risks being another “dialogue of the deaf” as Borrell famously described the previous one. Amidst renewed transatlantic solidarity, Beijing’s rhetoric indicates that it seeks normalisation of ties with Europe and a more independent European policy towards China away from Washington’s influence. Yet for Brussels, reconciliation will be conditional on Beijing’s willingness to address fundamental divergences.

Diplomacy
Vladimir Putin with President of the United Arab Emirates Sheikh Mohammed bin Zayed Al Nahyan

Russia-UAE talks

by Vladimir Putin

Vladimir Putin held talks with President of the United Arab Emirates Sheikh Mohammed bin Zayed Al Nahyan in Abu Dhabi. The agenda included the current state of multifaceted Russia-UAE cooperation and prospects for the further expansion of ties, as well as topical international issues with a focus on the situation in the Middle East. Before the consultations began, an official welcoming ceremony for the Russian President was hosted by the President of the UAE at the Qasr Al Watan Palace. Foreign Minister Sergei Lavrov, First Deputy Prime Minister Andrei Belousov, Deputy Prime Minister – Minister of Industry and Trade, Russian co-chair of the Russian-Emirati Intergovernmental Commission on Trade, Economic and Technical Cooperation Denis Manturov, Deputy Prime Minister Alexander Novak, Deputy Chief of Staff of the Presidential Executive Office – Presidential Press Secretary Dmitry Peskov, presidential aides Igor Levitin, Maxim Oreshkin and Yury Ushakov, Russia’s Ambassador to the UAE Timur Zabirov, as well as Head of the Chechen Republic Ramzan Kadyrov, Central Bank Governor, heads of the Roscosmos State Corporation, Russian Direct Investment Fund, Rosatom State Corporation, Rosoboronexport, VEB.RF State Development Corporation, and other officials took part in the talks on Russia’s side. * * * Beginning of Russia-UAE talks President of the United Arab Emirates Sheikh Mohammed bin Zayed Al Nahyan (retranslated): Welcome, my dear friend Vladimir Putin, to the United Arab Emirates. I am glad to see you again. Let me begin by emphasising the historical nature of relations between the Russian Federation and the UAE. Over the past years, we have witnessed a substantial push to develop these relations in various spheres for the mutual benefit of our nations and people. I would like to express my great appreciation for your personal and effective contribution to strengthening our bilateral relations. In this context, I would like to say that the UAE is Russia’s biggest trade partner in the Middle East and in the Gulf Region. Let me note that the UAE is a major investor in the Russian economy. Investment in the non-oil sector increased by 103 percent over the past year. I would like to specifically mention that this is an unprecedented breakthrough which demonstrates the special nature of relations between our countries. I will be glad to continue working together on strengthening bilateral cooperation in various spheres. Of course, promoting development in energy, infrastructure, and high technologies, as well as elsewhere has special priority. In addition to this, I would like to mention that the United Arab Emirates and the Russian Federation have been working together and cooperating within various international frameworks. For example, we work together within BRICS and the Shanghai Cooperation Organisation, where the Emirates were granted dialogue partner status in May 2023. We are also developing and promoting the strategic dialogue between the Russian Federation and the Gulf Cooperation Council. This helps us reinforce our relations and expand them in various spheres, promoting a proactive exchange of views on key international and regional matters, as well as on key items on our bilateral agenda. Once again, Mr President, welcome to the United Arab Emirates. I wish progress and prosperity to the Russian Federation and its people. President of Russia Vladimir Putin: Your Highness, friends, First of all, I would like to thank you for inviting us and for this colourful and friendly welcome. The other day, the United Arab Emirates celebrated the 52nd anniversary of its founding. I want to congratulate you on this and I want to recall that the Soviet Union was among the first to recognise this independent, self-reliant, and sovereign state. Today, our relations – thanks to the position you have taken – have reached unprecedented heights. You and I are in constant contact, and our colleagues work together on a permanent basis. In fact, the United Arab Emirates is Russia’s main trade partner in the Arab world. Last year, trade grew by 67.7 percent. This year, I think, the figures will be even higher. The same goes for investment activity. There is also progress in industrial cooperation, by which I mean cooperation to build certain industrial facilities in the United Arab Emirates and in the Russian Federation. A number of major oil and gas projects are being implemented. We also cooperate through OPEC Plus. We certainly attach due importance to humanitarian ties. Tourist exchanges are making headway: last year, almost one million tourists from Russia – a little over 900,000 – visited the UAE. A Russian school has been opened, and we are grateful to you for ordering land set aside to build a Russian Orthodox church. We also cooperate internationally. As a non-permanent member of the UN Security Council, the United Arab Emirates makes a huge contribution to stabilising the situation in the world. We will certainly discuss with you the situation in the main hot spots, primarily, of course, the Arab-Palestinian-Israeli conflict. I will certainly inform you of the developments in the context of the Ukraine crisis. I am quite pleased that the United Arab Emirates is beginning to work within the BRICS system. In 2024, Russia will chair this organisation. We will continue contacts on this. We look forward to meeting you at the [BRICS] summit in Kazan in October 2024. The UAE is currently hosting one of the world’s most important environmental forums. The first results of the effort to implement the Paris Agreement are being summed up. As expected, you are holding this event at the highest level, and very many people in the world, even those who do not identify themselves with environmental movements, are certainly grateful to you for this work. A Russian delegation is also involved in this work at the highest level. We wish you success. I have no doubt that it will be so. Shukran! <…>

Diplomacy
President Xi Jinping with Vladimir Putin

China Exploits Russia’s Vulnerabilities

by Ksenia Kirillova

According to reports from Chinese media in late November, Beijing has refused to invest in the construction of the Power of Siberia-2 natural gas pipeline, proposing instead that Moscow fully cover the multibillion-dollar project. China also insists on substantial discounts for Russian gas, demonstrating strong “bargaining power” in negotiations with the Kremlin (South China Morning Post, November 24). Power of Siberia-2 is pivotal for Russia in mitigating the losses incurred after Gazprom’s withdrawal from the European market. As Western sanctions have weakened Moscow’s geopolitical leverage with its energy resources, Beijing has capitalized on the situation to increase energy flows to China at cheaper prices. Most economists argue that Moscow cannot fully compensate for the losses resulting from limited access to European markets. They also point out that the gas supplies currently flowing through the Power of Siberia-1 pipeline are already being sold to China at almost half the price of rates for the European Union and Turkey. Russian oil and gas analyst Mikhail Krutikhin emphasizes that Beijing has little interest in the construction of the Power of Siberia-2 pipeline, as China does not require large quantities of natural gas. He notes that the planned capacity of the new pipeline is 50 billion cubic meters (bcm), while Gazprom, on average, has exported 155 bcm to the West. According to Krutikhin, with the discounts, Russian gas exports to China do not even cover the operational costs of their extraction and transportation. The Kremlin, nevertheless, is forced to construct a second gas pipeline because it cannot guarantee the promised gas supplies of existing agreements without it due to the limited gas deposits supporting Power of Siberia-1 (VOA Russian Service, November 28). China’s exploitation of Russian vulnerabilities should not come as a surprise. Experts observed last spring that Beijing only supports Moscow to serve Chinese interests, for example, leveraging Russian anti-Western narratives in its own propaganda and treating the Russian Far East as a “resource colony” (see EDM, February 6). China will not assist Russia to its own detriment. Marina Rudyak, a professor of Sinology at Heidelberg University, believes that the Chinese government may genuinely fear that a Russian victory in Ukraine could strengthen Moscow’s influence in Central Asia and beyond (Svoboda, May 21, 2022). At the same time, Beijing has provided practical assistance to Moscow for projects personally important to Russian President Vladimir Putin. For example, China has actively shared its experience with censorship and digital control over the Internet since 2015, offering insights on the functions and capabilities of China’s “Great Firewall” (Kremlin.ru, June 5, 2019; Radio Free Europe/Radio Liberty, April 5). This cooperation, however, does not prevent China from competing with Russia for influence in Central Asia, the South Caucasus, and other regions (Gazeta.ru, September 20, 2019; see EDM, October 5, 2022, November 15, 2022, May 24, August 10). Moscow’s predicament lies in unrealistic expectations for cooperation with its “Eastern partners,” including China and other “non-Western” countries. Putin has repeatedly stated that the expansion of the BRICS countries (originally Brazil, Russia, India, China, and South Africa) will become a movement “against the hegemony and neo-colonialism policy of the West” (Izvestiya, August 23). In contrast, the organization’s members are not planning to sever relations with Western countries and are attempting to extract maximum benefits in finding a balance between the East and West. Another of the Kremlin’s unrealistic hopes was the dream of creating a single currency for BRICS members to strengthen Moscow’s ability to circumvent sanctions. Such talks began emerging in the Russian press at the end of last year (Sibnovosti.ru, December 3, 2022). By mid-summer, central Russian media predicted that the currency would be created in August, noting that the realization of this idea was “closer than ever before” (Moskovskij komsomolets, July 9). Pro-Kremlin experts discussed how the new currency would replace the “toxic and inconvenient” US dollar and be used for intergovernmental payments and settlements (Vechernyaya Moskva, July 3). The most optimistic among them speculated that the dollar might not withstand this challenge (Iarex.ru, May 17). Following the August BRICS summit, Russian officials were compelled to acknowledge that their partners had no intention of creating a single currency in the near future. On August 24, Foreign Minister Sergei Lavrov officially relented on Moscow’s hopes for a unified currency at the summit in Johannesburg (Rossiyskaya gazeta, August 24). That same day, South African Finance Minister Enoch Godongwana announced that the creation of a single currency had never been discussed within the BRICS format, even informally (Forbes.ru, August 24). A parallel situation of unrealistic expectations for allies is unfolding for Russia with Iran. In early 2022, Russia extended a credit line of $1.4 billion for the construction of the Sirik thermal power station in Iran, a debt that Tehran has yet to settle. In July 2022, Gazprom and the National Iranian Oil Company signed a memorandum of understanding and cooperation, leading to agreements on projects valued at $40 billion. These projects encompass the development of the Kish and North Pars gas fields and Russia’s involvement in the operations of the South Pars field (Nezavisimaya gazeta, November 7, 2022). Even with the agreements in hand, little tangible progress has been made. The lack of progress in joint Russian-Iranian projects closely mirrors the breakdown in Russian-Chinese cooperation with Power of Siberia-2. Independent analysts noted last year that Moscow should not anticipate Iran’s assistance in modernizing underdeveloped infrastructure along the “North-South” corridor. Russia has sought to develop this route to connect with the Persian Gulf and Indian Ocean via the Caspian Sea and Iran. Even if the new corridor is further developed, it will not be able to wholly replace the traditional transit routes Russia utilized before its war against Ukraine (Carnegie Politika, October 28, 2022). Russia is being increasingly forced to supply strategic resources to partners on highly unfavorable terms in exchange for minor displays of political support and assistance. In the long run, such a policy will likely result in significant losses for Moscow. While cooperation with China and Iran has improved in some areas, the current circumstances underline that, in the end, both Beijing and Tehran will pursue their own interests, even at Moscow’s expense.

Diplomacy
Vladimir Putin and Crown Prince Mohammed bin Salman in the Saudi King’s al-Yamamah Palace.

Russian-Saudi talks

by Vladimir Putin

A meeting between Vladimir Putin and Crown Prince and Prime Minister of the Kingdom of Saudi Arabia Mohammed bin Salman Al Saud took place in the Saudi King’s al-Yamamah Palace. At the Conclusion of the Visit of Vladimir Putin to the Kingdom of Saudi Arabia a Joint Statement has been adopted. Beginning of Russian-Saudi talks Crown Prince, Prime Minister of the Kingdom of Saudi Arabia Mohammed bin Salman Al Saud (retranslated):We can find many topics and subjects of common interest, on which we are working together to promote stability and development around the world, including in the Middle East. Over the past seven years, we have achieved a lot in our bilateral relations, for example, in the energy sector, investment and agriculture. In addition, our political cooperation and interactions have had a positive influence on several Middle Eastern issues and helped enhance security. Moreover, our future political ties and cooperation will, no doubt, have a positive bearing on the international environment. We have broad and far-reaching opportunities ahead of us, and by seizing them we can work together for the benefit of our nations and the entire world. I would like to reiterate, Mr President, that you are a cherished guest here in Saudi Arabia. We welcome you on behalf of its government and its people. Welcome! President of Russia Vladimir Putin: Thank you. Your Highness, first, I would like to thank you for the invitation. We expected to see you in Moscow. I know that the circumstances have affected these plans. But, as I said, nothing can prevent the development of our friendly relations. Indeed, being in this region on a scheduled visit to the United Arab Emirates, I used your invitation to come and see you and all our friends that we have been vigorously developing our interaction with over the past seven years. That said, the next meeting will hopefully take place in Moscow. Mohammed bin Salman Al Saud (retranslated): Of course, we are ready. Vladimir Putin: Agreed. Indeed, the Soviet Union was among the first to recognise the independent state of Saudi Arabia. This was almost a hundred years ago. Our relations have developed in different ways during this time. Mohammed bin Salman Al Saud: I would like to note that it was the development of independence rather than the independence of a state that was recognised at that time. Vladimir Putin: In any event, we respected the will of the subjects of Saudi Arabia to build their future independently. Much has happened in our relations during this time, but over the past seven years, they have certainly reached a truly unprecedented level. This was achieved owing to the wise policy of your father, the Custodian of the Two Holy Mosques King of Saudi Arabia with your direct participation. We have stable, very good ties in political interaction, the economy and in humanitarian area. And, of course, it is now very important for all of us to exchange information and views on what is taking place in the region. No doubt, our meeting is timely. Thank you very much for your invitation, once again. Mohammed bin Salman Al Saud: Welcome! <…>

Diplomacy
Pedro Sánchez at one of his election campaigns

Another Leftist Coalition Government in Spain, Though Just Barely

by Bonnie N. Field , Juan Rodríguez Teruel

Pedro Sánchez, Spain’s incumbent prime minister, was sworn into office for the third time on 17 November 2023. He once again heads a minority coalition government. This time, it includes the prime minister’s Socialist Party (PSOE) and Sumar (Sum or Add Up), a new left wing political platform launched by Yolanda Díaz, the incumbent and continuing labour minister and second deputy prime minister. While clear continuities exist, there are important changes regarding the junior party partner in the coalition. Sánchez’s previous cabinet, formed in 2020, included the radical left Unidas Podemos (United We Can), an alliance of Podemos and the United Left, the latter centred around the Spanish Communist Party. After much public discord, the weakened Podemos joined the Sumar alliance for the July 2023 parliamentary elections. Yet none of Sumar’s five ministerial posts (out of 22 total) in the new government went to Podemos. While Díaz hails originally from the United Left, Sumar is a more moderate ally for the Socialists, at least in terms of the likely tone and style of its government representatives. It remains to be seen how the disgruntled Podemos, with 5 of Sumar’s 31 seats in the Congress of Deputies, will affect governance and Díaz’s nascent platform. Continuing the practice on the political left of gender parity or majority women cabinets, the new government has 55 percent women ministers, four of whom are also deputy prime ministers. This government also confirmed Spain as a world leader in minority cabinets. Since Spain’s return to democracy in 1977, 75 percent of its cabinets have been minority ones, meaning the party or parties in the cabinet do not control a majority of seats in the parliamentary chamber to which the government is responsible. While Spain is used to making these cabinets (mostly) work, this may be the most complicated governing scenario to date. The leftist government faces a political right that is strong, angry, and mobilized—though this both challenges and serves as a buttress that could fortify the new government. The conservative Popular Party (PP), led by Alberto Núñez Feijóo, won the most votes and parliamentary seats in the July election, two percentage points and 14 seats more than the Socialists, yet far from a majority. As was already clear when the election returns came in, the PP candidate could not cobble together enough votes in parliament and failed in his attempt to become prime minister in September 2023. He received the votes of the PP, the far-right party Vox (Voice in Latin), and two representatives of right-leaning regional parties. Feijóo’s defeat was, in part, due to his party’s proximity and expected governing alliance with Vox. The political right is also strong in local and regional governments in Spain. Following the May 2023 subnational elections, the Popular Party leads 11 of Spain’s 17 powerful regional governments—in five it governs jointly with Vox. The Socialist Party only leads three regional governments. And the PP has a majority in Spain’s upper, though weaker, chamber of parliament, the Senate. The right has questioned Sánchez’s legitimacy, persona, and alliances stretching back at least to 2018 when he replaced PP Prime Minister Mariano Rajoy, whom parliament removed in a constructive vote of no confidence. Sanchismo has become a popular buzzword the right uses to capture its disdain for the prime minister. Nonetheless, the anger and mobilisation on the political right, particularly from Vox and its supporters, but also from the PP and its supporters, peaked once it became public that Sánchez and the PSOE would support an amnesty for those involved in the 2017 Catalan independence push, despite Sánchez’s prior opposition to an amnesty and his claim that it would be unconstitutional. An amnesty was part of a deal to gain the support of pro-independence Catalan parties, ERC and Junts per Catalunya (Together for Catalonia), for Sanchez’s election as prime minister. The controversial leader of Junts, Carles Puigdemont, who resides in Brussels to escape Spanish judges, and would be the main beneficiary of an amnesty, has forewarned that the party’s support for the new government depends on clear advances in the devolution of central state powers to Catalonia and the recognition of the Catalan national identity. Amid significant societal division over the agreement, far right groups, in Trumpist style, engaged in violent protests in front of the PSOE’s headquarters. Protesters frequently showed support for Francoism and denounced what they considered to be a coup-d’état by the parliamentary majority. The extremist tone has put the PP in an uncomfortable position – it has attempted to calibrate its response via numerous demonstrations, expressing firm opposition while also trying to avoid being linked to the autocratic values visible at other demonstrations. The agreement with Junts also met with unprecedented criticism in judicial circles, particularly furious because the agreement mentions alleged lawfare, in reference to what Catalan nationalists view as an excessive legal response to the Catalan push for independence and its leaders. In contrast, most of the electorate that supported the parties of the new majority are relieved that the right-wing forces did not take control of the Spanish government, even though 40 percent of the PSOE voters are against this amnesty. To pass legislation (and survive), the government will need to consistently forge agreements among the government partners and with a diverse set of regionally based parliamentary allies. The latter include Catalan separatists on the left (ERC) and right (Junts), the centre-right Basque Nationalist Party, the Basque left-wing separatist EH-Bildu, the Galician nationalist and left-wing BNG, and the centre-right Canary Coalition. The government has almost no margin. Jointly these parties’ votes add up to 179, only three votes over an absolute majority. The Catalan Junts, with seven seats, is the most significant wildcard. While relative majorities of more yes than no votes are sometimes sufficient in Spain’s parliament, the opposition sums 171 votes. The most relevant ministers that have surrounded Sánchez since he became prime minister remain in the new cabinet, ensuring continuity in the main policy areas (finance, security, external affairs), although the influential minister of economy, Nadia Calviño, is expected to leave the executive in the coming weeks to become President of the European Investment Bank. The newcomers are expected to provide loyalty and a leftist hue to the government agenda, seeking to maintain their voters’ support in a polarised environment. This may be particularly significant in the new legislative term since the new executive will face more dilemmas when negotiating the policy agenda with its parliamentary partners. It will need to rely more on right-wing parties (PNV and Junts) than the prior government. Policy contradictions among the government’s allies will necessarily arise as many of them (PNV and EH-Bildu, Junts and ERC) are electoral opponents that will compete in the regional elections in the Basque Country and Catalonia in the coming months. We’ll need to wait and see how well the Spanish prime minister can live up to the spirit of his book, published four years ago, Manual of Resistance. Keywords government spain pedro sánchez spain prime minister socialist communist party democracy elections

Diplomacy
Flags of Taiwan and Estonia

Estonia Catches Taiwan Fever: What Will the Side Effects Be?

by Thomas J. Shattuck

In early November 2023, Estonia announced a decision to allow Taiwan to open an unofficial, non-diplomatic economic and cultural representative office in Tallinn. The opening of an office does not mean that Tallinn and Taipei are establishing official diplomatic relations, nor does it mean that Estonia is opening its own office in Taiwan. It is following in the footsteps of countries around the world that have unofficial ties with Taipei and want an unofficial government presence in the country to facilitate economic relations. For its part, Beijing has expressly condemned the decision by Tallinn to allow Taipei to decide if it wants an office in Estonia, with China’s Foreign Ministry making a clear statement calling for Estonia to reverse course. Estonia’s announcement occurred just before Taiwan’s Foreign Minister Joseph Wu embarked on a three-country tour of the Baltic states — a rare trip for the foreign minister to visit three countries with which Taiwan does not have formal diplomatic relations. Baltic leaders and ministers stated that they had no plans to meet directly with Wu, though Lithuanian Foreign Minister Gabrielius Landsbergis spoke at the same event as Wu, and his grandfather, the first president of post-Soviet, Lithuania Vytautas Landsbergis, did meet with Wu. Estonia’s move to open a representative office comes after Lithuania made a similar decision, sparking controversy and drawing political and economic ire from Beijing. The Vilnius office, which opened in November 2021, is called the “Taiwanese Representative Office in Lithuania,” which balks the traditional use of “Taipei” over “Taiwan” to avoid Beijing’s complaints and any alleged notions of formal relations. The opening of the Vilnius office resulted in the downgrading of the bilateral relationship with China and the expulsion of the Lithuanian ambassador from Beijing; the removal of Lithuania as a “country of origin” for Chinese trade; and a formal World Trade Organization complaint against China, supported by the United States and European Union. Beijing’s main complaint at the time was that the office provided legitimacy to Taiwan by using the word “Taiwanese,” thus the reason for the strong reaction. Lithuanian President Gitanas Nausėda conceded the point, “I think it was not the opening of the Taiwanese office that was a mistake, it was its name, which was not coordinated with me.” Now, with Estonia’s announcement, that complaint has proven hollow. It is not the “Taiwanese” reference with which Beijing has a problem — the real issue is the expansion of Taiwan’s international space. As I argued in January 2022, “The name of the office [in Lithuania] is the supposed sticking point, but the reality of the matter is that Beijing wants to prevent the expansion of Taiwan’s international space. The mere opening of an office, regardless of name, represents the expansion of Taiwan-Lithuania ties. Likewise, any new de facto embassy would be perceived as offensive to Beijing. … As more countries build ties with Taiwan, leaders will be able to better assess the risks and benefits of diplomacy with Taiwan. Beijing’s wolf warriors now cry foul at any perceived attempt to foster closer relations with Taipei.” Beijing perceives any “win” by Taiwan as a direct threat to its long-term plan to completely isolate Taipei. A possible office in Estonia provides Taipei with the ability to more easily interact with the Estonian people, expand bilateral trade, and demonstrate itself to be a good international partner — all of which threaten Beijing’s ability to shape the narrative regarding cross-Strait relations. As expected, PRC Foreign Ministry Spokesperson Wang Wenbin made clear the Lithuania office name issue was fake. During his regular press conference on November 8, Wang called for Estonia to change course, making no mention of the prospective name of a future office: “We firmly oppose any form of official interaction between the Taiwan region and countries having diplomatic ties with China and oppose any action supporting ‘Taiwan independence’ separatist forces. We call on Estonia to stay committed to its solemn commitment of adhering to the one-China principle, not to allow Taiwan to set up any organization of official nature, and earnestly safeguard the political foundation of its relations with China.” Wang’s language and warnings are less strident than what could be expected, but given that the announcement of the office in Estonia was just made, details are not yet firm. Estonian Foreign Minister Margus Tsahkna hinted to Politico that the office would be “representation—economical representation—of Taipei, not Taiwan,” which, if the name is the true issue, should appease Beijing’s concerns. As more is known, Beijing will assuredly increase its pressure on Estonia, which already includes the Chinese ambassador in Estonia threatening to leave the country if the office opens. The true test will come once details about the office are released. How will Beijing seek to punish Estonia for the move? Will the reaction be less severe than what China did to Lithuania? How will the European Union and the United States support Tallinn should Beijing utilize its coercive toolkit again? Beijing’s response to the office will demonstrate a few key things in the aftermath of the Lithuania example. How Beijing responded to Lithuania created immense international support and attention for Vilnius. Taiwan President Tsai Ing-wen opened up a $1 billion fund for joint Taiwanese-Lithuanian projects and another $200 million fund for Taiwanese investment in Lithuania’s industrial sector to show support for the decision, and the Biden administration announced a $600 million credit line. Because Beijing initiated pressure on other countries, such as Germany, to push Lithuania to change course, the overreaction became a critical case study in China’s coercive toolkit. The collective West closed ranks, supported Lithuania for the decision, and warned Beijing against further reprisals. If Beijing treats Tallinn in a similar way as Vilnius, then it will be clear that Beijing will ignore international warnings to serve its own goals — bluster over substance and compromise. The most important thing for Estonia to do in the coming days and weeks is to be resolute in the decision. Divisions within Vilnius prolonged Beijing’s attempt to pressure politicians into changing course. Knowing how angry President Nausėda was about the ordeal provided an opening, but other actors did not back down. At the moment, Estonia’s Foreign Minister Tsahkna is taking the lead in publicly responding, but the coalition government needs to adhere to the same line to diminish Beijing’s ability to pressure specific politicians. If Estonia does not back down, the country could stand to benefit from new Taiwanese-Estonian projects. Since the Taiwanese and Lithuanian offices opened in the respective capitals, Taipei has agreed to assist in building an 8-inch semiconductor wafer production line in Lithuania. The two also agreed to open a joint research center on laser technology in Taiwan. Lithuania is home to two projects funded by Taiwan’s National Development Fund (NDF). Another Lithuanian company, Solitek, received around $8.5 million from the $1 billion fund. During a recent visit to Taipei by Seimas Speaker Viktorija Cmilyte-Nielsen, the two sides signed a memorandum of understanding on health and made a decision to eliminate double taxation — the latter of which is still an issue that Taiwan has with the United States. Progress between Taipei and Vilnius has been slow, but it has gained steam with these investments. Tallinn can expect to reap some new investments with a Taiwan office and take part in the NDF. However, the benefits that Tallinn receives not only from Taiwan but also from the United States will likely depend on how loudly and forcefully Beijing complains — and acts on those complaints. No matter how much investment Estonia receives as a result of this new office opening, Tallinn is now a part of the cross-Strait competition — in an election year. With the upcoming January 2024 presidential election in Taiwan, Tallinn may have inadvertently become a foreign policy issue for the candidates, but that largely depends on Chinese retaliation. Any office will likely open under a new leader in Taipei, so while the announcement and prospective investment promises will occur under President Tsai, the implementation of such things will be up to her successor. After Lithuania defied China and its intense pressure to reverse course, Beijing is now in a situation where another Baltic country has allowed Taiwan to expand its unofficial international space — and thus expanded the threat landscape in its push to eliminate Taiwan’s presence abroad. The more these seemingly small countries defy China and the more they are backed by large countries (and, more importantly, fulfilled promises from Taiwan), the harder it will be for Beijing to keep the next case of Taiwan fever from spreading. The views and opinions expressed in this article solely belong to the author and do not represent the perspectives or stance of World and New World Journal, nor do they reflect the opinions of any of our employees. World and New World Journal does not endorse or take responsibility for the content, opinions, or information presented in this article. Readers are encouraged to consider multiple sources and viewpoints for a comprehensive understanding of the subject matter. Thank you for your understanding.

Energy & Economics
The protesters back the EU's criticism of the Poland's government

Poland: hope for rule-of-law correction, but serious economic challenges ahead

by Marek Dabrowski

Obstacles created by Poland’s outgoing government and the deteriorating economic situation make the post-election outlook highly challenging. The victory of the opposition alliance in Poland’s 15 October elections showed that even an unfair and manipulated election can lead to a peaceful rejection of autocratic regime if society is mobilised sufficiently. However, tackling the populist legacy of the Law and Justice Party (Prawo i Sprawiedliwość, PiS) government will be neither easy nor fast, for several reasons. First, it remains unclear when a political transition can take place. President Andrzej Duda (closely associated with PiS) has sworn in a PiS minority government that is likely to be short-lived, and has made clear that he will defend PiS’s political and institutional legacy and use his veto power to stop legislation adopted by the new parliament. Overcoming a presidential veto requires a 60% majority in the Sejm (a lower house of the Polish parliament), which a democratic coalition is short of. This will make it challenging for a post-PiS government to restore constitutional principles of democracy, rule of law, the legal independence of many institutions (which have been packed with PiS loyalists, especially in the judiciary) and public media pluralism, at least until summer 2025, when President Duda’s term expires. Most of these changes will require new legislation. Rolling back unconstitutional PiS legislation in the Constitutional Court will be hard. The terms of PiS placemen and women in the court will expire between 2024 and 2031. The Constitutional Court can also block legislation passed by a new majority. This could mean difficulties with unfreezing money earmarked for Poland from the European Union’s Recovery and Resilience Facility. Access to the funds is conditional on meeting rule-of-law criteria that have been violated systematically by the PiS government. However, the most significant challenges wait for the new government in the economic sphere. Eight years of socioeconomic populism, with large-scale spending programmes (including generous family benefits, which will increase by 60% from January 2024), chaotic tax system changes and a freeze on energy tariffs, have led to an explosion of the general government deficit, set to reach 5.8% of GDP in 2023. The transparency of public finances deteriorated dramatically because of several off-budget funds and quasi-fiscal operations conducted by state-owned banks and energy companies. Therefore, the actual deficit may be higher than officially reported. Because of ultra-loose and politically motivated monetary policy since 2016, inflation has been above the National Bank of Poland target (2.5%) since December 2019. has been above the National Bank of Poland target (2.5%) since December 2019In March 2022, it jumped to a two-digit level, reaching 17.2% in March 2023. Since then, it has started decreasing, but its October 2023 level (6.3%) is still too high and may increase. Despite highly accommodating monetary and fiscal policies, the annual real GDP growth rate, once varying between 4% and 6%, is expected to decline to 0.4% in 2023. Thus, the Polish economy is experiencing stagflation. Meanwhile, a gradual increase in the retirement age to 67 for both men and women, introduced in 2013, was reversed by PiS in 2017, despite Poland’s shrinking working-age population – a consequence of population aging and large-scale emigration. The share of state ownership has been increased, especially in the banking and energy sectors. The latter became less competitive after several administrative mergers of state-controlled companies (for example, creating a super-conglomerate ORLEN). Investment in green energy has slowed in the face of various administrative and financial obstacles. To what extent a new government will be ready to tackle these problems remains unclear. During the election campaign, opposition parties sought to compete with PiS by offering more public spending programmes and lower taxes. They promised never to increase the retirement age. They were silent about privatisation, only pledging more professional and nepotism-free management of state-controlled companies. Since the election, several opposition promises detrimental to public finances have been repeated. The economic chapter in the coalition agreement between parties forming the future government is vague. The multi-party character of a future government (from the left to centre-right), and forthcoming local and European elections (both in spring 2024), may further discourage necessary economic reforms and fiscal adjustment. If such a political scenario prevails, the Polish economy risks slipping towards even deeper macroeconomic disequilibria and zero growth. This will not guarantee popularity and future election success for a coalition government. Therefore, despite all the political and legislative obstacles, the incoming government’s economic policy programme must address the root causes of the current troubles and respect fiscal constraints. Acknowledgements The author would like to thank Heather Grabbe, Ivo Maes, Lucio Pench, and Nicolas Veron for their comments and suggestions on a draft of this commentary.

Defense & Security
Emblems of Russian and Hezbollah's army depicted on the chess pieces

Russia-Hamas Relations and the Israel-Hamas War

by Arkady Mil-Man , Bat Chen Druyan Feldman

Researchers in the INSS Russia program argue: Now is the time for Israel to change it approach toward Moscow Since October 7, Russia has sided with Hamas, refuses to condemn the murderous terror attack that the organization perpetrated in the western Negev, and has questioned Israel’s right to defend itself. Russia’s behavior should underscore to Israel the need to change its policy toward the Kremlin and to stand firmly with Western nations, under the leadership of the United States. Moscow’s firm support for Hamas in the aftermath of the October 7, 2023 massacre represents a turning point in relations between Israel and Russia. While many world leaders have condemned the murderous attack on October 7, Russia has adopted an anti-Israel line and refrained from condemning Hamas. Only a week later after the attack, in a speech to leaders of former Soviet states in Kyrgyzstan, Russian President Vladimir Putin said that the Hamas massacre was unprecedented, but in the same breath he accused Israel of a cruel response. He went on to compare the Israeli blockade of the Gaza Strip to the Nazi siege of Leningrad, which led to a high number of civilian causalities, estimated in the hundreds of thousands. Although Putin said that Israel has the right to self-defense, he added that the attack on innocent civilians in the Gaza Strip was unacceptable. It was only on October 16 that Putin, in a phone conversation with Prime Minister Benjamin Netanyahu, expressed condolences to the families of the murdered Israelis, but without condemning Hamas. Russia’s strategy of maintaining good relations with both sides in any given conflict is reflected in its policy of nurturing ties with Hamas. For Hamas too, ties with Russia are highly important, since it positions it as an organization that is welcome in one of the most important countries in the world. In principle, Moscow has clung to its position that Hamas – defined as a terrorist organization by the United States, the United Kingdom, Germany, and other members of the European Union – is a legitimate political organization. The relationship between Russia and Hamas has not always been as close as it is today. Throughout the 1990s and until Hamas’s victory in the 2006 elections for the Palestinian Legislative Council, Russia condemned the organization’s terrorist activities and referred to its members as Islamic militants, fanatics, and extremists. The relationship changed dramatically after the election, when Putin declared that the organization was elected through a democratic and legitimate process. Russian Foreign Ministry officials began meeting regularly with Hamas representatives in 2006. In 2011, there was a temporary decline in relations after Hamas backed the opposition forces in the Syrian civil war. Hamas figures who were in Syria when the war broke out played an active role fighting alongside the opposition, while Russia supported President Bashar Assad. Nonetheless, ties were not severed, and over the years began to warm. Delegations of Hamas leaders visited Moscow, where they met with the Russian Foreign Minister and other senior officials, and meetings took place between Hamas officials and Russian diplomats in other countries. Russia did not adopt a consistent position during previous rounds of fighting between Israel and Hamas and was influenced by its particular interests at the time. In 2014, during Operation Protective Edge, there was a change in Russian policy as it sought to maintain an image of objectivity and deliberately scaled back its criticism of Israel – in contrast to previous conflicts, such as Operation Cast Lead in 2008-2009. This was probably in response to Israel refraining from criticizing Russia over its invasion of Crimea. Russia’s current interests are not to Israel’s benefit. Moscow’s main goal at this time is to divert the attention of the West, under the leadership of the United States, away from Ukraine. An increase in US involvement in events in the Middle East serves this goal. At the same time, Russia blames the United States for the outbreak of the current conflict. Second, Russia aspires to restore its standing as an influential actor on the international stage, and thus is attempting to promote a ceasefire in Gaza. In addition, Russia’s relations with Iran have become a strategic alliance as a result of the war in Ukraine, and in order to safeguard it, Moscow has adopted a policy that is sympathetic to Iran’s allies, including Hamas. Moreover, it is very convenient for Moscow that the US is the focus of attention in the Middle East. Russia’s support for Hamas can be seen in the measures it has taken in the international arena. On October 16, Russia submitted a resolution to the United Nations Security Council on a ceasefire, but it failed to include any condemnation of Hamas and its attack on Israel. Rather, it condemned violence and terrorist acts against civilians, which could be interpreted as a condemnation of Hamas’s actions or of Israel’s operations in the Gaza Strip. Moreover, the Russian resolution suggested that Israel was responsible for the explosion at the al-Ahli hospital in Gaza, despite clear evidence that the rocket that hit the hospital was fired from within Gaza. On October 25, Russia used its veto power in the Security Council to block a US resolution calling for the condemnation of Hamas and supporting Israel’s right to defend itself. Later, Russian anti-Israel rhetoric became even harsher, returning to the terminology used by the Soviets, when on November 2, the Russian ambassador to the UN rejected Israel’s right to self-defense since it is an “occupying power.” Comments from senior Hamas officials also shed much light on how close the organization is to Russia. For example, in an October 8 interview with Russia Today, a state-run media outlet, senior Hamas official Ali Baraka said that Hamas had updated Moscow about the attack shortly after it began. During the war itself, when a delegation of senior Hamas officials visited Moscow, Mousa Abu Marzook said that “we look at Russia as our closest friend.” After the visit, Hamas thanked Putin and the Russian Foreign Ministry for their efforts to halt “the Israeli violence against the Palestinian people.” Hamas leader Khaled Mashal also said in an interview with an Egyptian television station that the Russians were impressed with the Hamas attack and that they would teach it in their military academies. Russia’s support for Hamas is not limited to the international diplomatic sphere. There is evidence that Russian weapons have been found in Hamas’s possession, including anti-tank missiles and surface-to-air missiles that apparently were transported via Iran – while Russia turned a blind eye. In addition, in the same interview with Russia Today, Baraka claimed that Russia had given Hamas a license to manufacture its own modified version of the AK-47 (Kalashnikov) assault rifle and ammunition. Hamas’s armed wing uses Russian servers. On the economic front too, it is evident that Hamas relies heavily on the Russian crypto market, sending tens of millions of dollars into digital wallets controlled by Hamas (and Islamic Jihad), while bypassing US sanctions. According to Ukrainian reports, the Wagner Group helped to train Hamas terrorists. State-run Russian media has also adopted a clearly pro-Palestinian line. Russian propaganda seeks to justify the actions of the Russian military in Ukraine by highlighting the IDF’s killing of civilians and exaggerating the number of Palestinian causalities. After the blast at the al-Ahli hospital, the Russian media claimed that thousands of people had been killed – a figure higher even than the death toll reported by Gazans. Israeli soldiers are depicted as “immoral” because of the massive causalities they inflict on a civilian population, unlike the Russian soldiers who, according to state-run media, “would never be able to attack civilians, women, and children.” Russian social media channels, such as Telegram, are also awash with anti-Israel rhetoric and blatantly antisemitic comments. In the aftermath of the attempted pogrom against Israeli and Jewish passengers in Dagestan on October 29, Putin convened a meeting with the government and heads of the security establishment and drew a direct line between the war in Ukraine and the war between Israel and Hamas, accusing the United States and the West of undermining stability in Russia, the Middle East, and the entire world. He declared that “the fate of Russia and, indeed, of the whole world, including the future of the Palestinian people, is being decided” on the Ukrainian front. By connecting the two conflicts, Putin is clearly putting Russia on the side of Hamas and Israel on the opposing side, alongside the United States and the West. In effect, Putin has validated US President Joe Biden’s statement that Russia and Hamas are waging a war against democracy. Putin’s comments and Russia’s behavior in the aftermath of October 7 highlight the misconception that Russia would not oppose Israel at critical moments. The change that Israel must make in its policy vis-à-vis Russia is to stand unequivocally beside the United States – which includes supporting Ukraine. The quicker Israel adapts its policy to meet the challenge, the better its strategic balance in the Middle East and beyond will be.

Diplomacy
Austrian Paliament

Speech by Foreign Minister Alexander Schallenberg at the 241st session of the National Council on Hamas' terrorist attack on Israel

by Alexander Schallenberg

Dear Madam President Ladies and gentlemen of the House, Dear visitors in the gallery! I just want to say that I am grateful. Grateful for this unanimous decision in this House. This is a really important signal that also strengthens my position. We must never forget: October 7 really was a breach of civilization. In terms of its cruelty, it was a day that actually eclipsed everything. In a region that is not short of atrocities as it is. I will never forget when I received a phone call on that Saturday with the question: Mr. Federal Minister, how good are your stomach nerves? And I said yes, they are good. And then I was sent videos and photos that I knew were authentic. These pictures will never leave me again. The last time I saw something similar was in connection with the Daesh videos. The cruelty, the bloodlust, the dehumanization. And I am therefore very grateful that we have such a clear position here in Austria. I believe that each and every one of us is called upon to take a clear stance on terrorism - no matter where, no matter how. Murder is murder! You must not put something into context, because that means relativizing it. Never in the history of mankind has a conflict come out of the blue. There is always a prehistory for everything. Also for the Russian attack on Ukraine, which we have not put into context either. And of course international humanitarian law applies. But that is precisely the difference - and several MEPs have emphasized this - that Israel is a constitutional state, a pluralistic democracy. It is struggling, it is trying to find the right path. And MP Matznetter also said that we don't want to be in the IDF's shoes. Because it's almost an inhuman task to keep a cool head in such an emotionally charged situation. Yes, they drop leaflets. Yes, they warn. They call for evacuation. They try to keep civilian casualties to a minimum. And yes, we see what we have actually always known, that Hamas deliberately uses civilian facilities such as schools, refugee camps, hospitals and others for their command centers, tunnel entrances, to hide their weapons there. In other words, as a democracy, as a constitutional state in the fight against terrorism, one hand is always tied behind its back. But that is the right thing to do, it has to be that way. You can see from Israel that they are trying. Three points now have priority: The first point is to prevent a wildfire. This is still not averted. It could end up being a three-front war. We are of course keeping a very close eye on developments in northern Israel and in southern Lebanon with Hezbollah. But, and I would like to emphasize this in particular: Austria is not blind with one eye, we see with both eyes. This applies to the West Bank. And I have to say quite frankly: I consider the settler violence that we see in the West Bank to be intolerable. It is also a lack of solidarity. We are currently dealing with a situation in which the Israeli army is stretched to the limit. And then I think it's a lack of solidarity within Israeli society if some people think they can vent their anger, their emotions and set fire to the West Bank. That could lead to a third front. We have to be very clear about this. The second point is of course - as has already been mentioned several times - the unconditional release of the hostages. I had the opportunity to meet some of the survivors of October 7 here in Vienna last week. It really got under your skin. When you meet a father who tells you that he is actually almost relieved because his child is among the dead and not among the hostages, it's hard to imagine what that must mean for these people. We have to stay on it. This is a terrorist organization, there can be no ifs and buts. There can be no negotiations. They must release the hostages unconditionally. The third point - this is also important to me: I myself was one of the first ministers to put development cooperation with Palestine on hold and ordered an evaluation. We do not want to support Hamas. At the same time, however, we do not want the civilian population to suffer. That would again be fertile ground for the next extremism. We have therefore made EUR 2 million available for humanitarian aid via the Austrian Development Agency. A further EUR 6 million for the region - for Syria, Lebanon and Jordan - which of course run the risk of being destabilized. I think it is good that the European Union has quadrupled humanitarian aid. But, and we saw the European Commission's report on development cooperation a few days ago, I believe we must not be naive. In future, we in Austria will take a very close look at which partner organizations - whether in Gaza or Israel, Mali, Burkina Faso, Mozambique - we work with. What does it say on their websites? What does the umbrella organization in which they are affiliated say? Is there racism, is there anti-Semitism? Are there lines that we cannot support because of our values? This is also a lesson for me from the horrific incident on October 7. In future, we need to take a much closer look at exactly who we are helping and how. Thank you very much!

Energy & Economics
President of Ireland Michael D. Higgins giving speech at World Food Form

Keynote address the Closing Ceremony of the World Food Forum

by Michael D. Higgins

Director-General, Your Excellencies, Distinguished Guests, Dear Friends, Young and Old, This week, as we have gathered here at the World Food Forum in the headquarters of the Food and Agriculture Organisation of the United Nations in Rome to discuss the necessary transformation of our agri-food systems, we must not only be conscious of targets missed or imperfectly achieved, but of the need for courage, and to generate new capacity to move to new models of better connection between economy, social protection, social justice and ecology. We are confronted with a climate and biodiversity emergency that cannot be handled by the tools that produced it or by the architecture of how we made decisions before. We are called upon to, once and for all, tackle with alternatives and sustained effort and innovation, the vicious circle of global poverty and inequality, global hunger, debt and climate change, our interacting crises. That is the context in which sustainable food systems must be achieved. I ask you all gathered today to respond in the most meaningful way within your capacity, within your generation, in a way that includes all generations, to the challenge set out by United Nations Secretary-General António Guterres in his recent statements: This is how the Secretary-General put it: “The Sustainable Development Goals aren’t just a list of goals. They carry the hopes, dreams, rights and expectations of people everywhere. In our world of plenty, hunger is a shocking stain on humanity and an epic human rights violation. It is an indictment of every one of us that millions of people are starving in this day and age.” It can be put right but we must change and there is work involved in upskilling in such a way that we can not only identify and critique assumptions of failing models but be able to put the alternative models in place. We have had so many broken promises. Only 15 percent of some 140 specific targets to achieve the 17 UN Sustainable Development Goals are on track to be achieved. Many targets are going in the wrong direction at the present rate, and not a single one is expected to be achieved in the next seven years. However, we have some reasons to be hopeful. When I look around this room today, I see so many engaged and committed people, including young people who have the enthusiasm, energy and creativity needed to tackle the serious structural causes of food insecurity and global hunger. But it is important to acknowledge that young people are not alone in seeking authenticity of words delivered into actions that have an ethical outcome. There are those who have spent their lives seeking a fairer world, one in which hunger would be eliminated – as it can be. We must recognise their efforts. We must work together to harness this collective energy and creativity into strong movements that will deliver, finally, a food-secure world for all. This will require, I suggest, moving to a new culture of sharing information, experiences, insights. As the cuts have taken effect, we must take the opportunity of developing a view, post-silo culture, of sharing insights, and I see FAO as uniquely positioned for this. As Glenn Denning, Peter Timmer and other food experts have stated, achieving food security is not an easy task given how food hunger is “deeply entwined with the organisation of economic activities and their regulation through public policies”, given, too, how governments and markets must work together, how the private, public and third sectors must work together. All of our efforts must have the character of inclusivity. Each of us as global citizens has a responsibility to respond. To ignore it would be a dereliction of our duty of care to our shared planet and its life-forms including our fellow humans and future generations. The Secretary-General’s pleas in relation to the consequences of climate change are given a further terrible reality in the increased and spreading threat of hunger, a food insecurity which is directly affected by the impact of climate change. For example, figures published by the Food and Agriculture Organization of the United Nations show that 26.2 percent of Africa’s population experienced severe food insecurity in 2021, with 9.8 percent of the total global population suffering from undernourishment the same year. It is time for us all, as leaders and global citizens, to take stock of how words are leading to actions, to increase the urgency of our response to what is a grave existential threat and to achieve change. It is clear, as the Secretary-General’s powerful statement shows, that we need to begin the work of reform in our international institutional architecture, such as UN reform at the highest level, including the Security Council and the Bretton Woods institutions, if we are to achieve what the Secretary-General has suggested is the challenge to “turn a year of burning heat into a year of burning ambition”. Let us commit then to sharing purposes, projects, resources, seeking a new culture for sustenance solutions. Those of us who have spent much of our lives advocating UN reform believe that its best prospects are in the growing acknowledgement of the importance of the vulnerabilities and frustrated capacity of the largest and growing populations of the world being represented, not only nominally but effectively, through a reform that includes reform of the Bretton-Woods Institutions. As Secretary-General Guterres has said on a number of occasions, it is time to reform what are 1945 institutions, including the Security Council and Bretton Woods, in order to align with the “realities of today’s world”. We have to acknowledge too that the development models of the 1950s and 1960s were part of the assumptions that brought us to the crises through which we are living. New models are needed and the good news is that a new epistemology, our way of looking at the world, of sufficiency and sustainability, is emerging. We are seeing good work already occurring. Good development scholarship is available to us. I reference, for example Pádraig Carmody’s recent book, Development Theory and Practice in a Changing World. Such work builds important bridges from the intellectual work that is so badly needed and is welcome at the centre of our discourse on all aspects of interacting crises, including global hunger, and the need to link economy, ecology and a global ethics. What we must launch now is a globalisation from below. Replacing the globalisation from above that has given us a burning planet and threatened democracy itself, with a globalisation from below of the fullest participation, we can establish and indeed extend democracy, offering accountability and transparency of our work together. Writers such as Pádraig Carmody are not alone in suggesting that achieving the Sustainable Development Goals provides the opportunity for moving past the worst contradictions of failed models and dangerous undeclared assumptions. The demise of hegemonic development theory and practice may be a result of several factors, such as the rise of ultra-nationalism around the world, the increasing importance of securitisation where the most powerful insulate their lives from the actions of the excluded, and the existential threat posed by the climate crisis. Such research adds to the growing body of development literature that argues for a pro-active, structural-focused, tailored approach to development. The Hand-in-Hand Initiative of the FAO, details of which were discussed at this week’s parallel session, is a most welcome initiative, one that aims to raise incomes, improve the nutritional status and well-being of poor and vulnerable populations, and strengthen resilience to climate change. It heralds a belated recognition too of the insufficiency of a reactive emergency response to famine and hunger crises. It suggests a move towards one that tackles the underlying structural causes of hunger. Young people will need patience and to dig sufficiently deep to achieve these necessary changes. They are right in seeking to be partners, so much more than being allowed as attendees. Hand-in-Hand recognises the importance of tailor-made interventions to food security, using the best available evidence in the form of spatial data, validated on the ground through local diagnostics and policy processes, to target the most food insecure, the most hungry, the poorest. It recognises that context-specific employment and labour market policies are part of the sustainability challenge. I believe that evidence from below is crucial to achieving globalisation from below and that it can be achieved by a reintroduction of new re-casted anthropology guided by, among others, the new African scholars now available, whose work is empirical and peer-tested, can be invaluable in giving transparency on projects and investments – a strategy for fact-gathering for empowerment of rural people so like the 1955 fact-gathering with rural people of the FAO – first published in 1955 and used by me in 1969! Young people must be about upskilling to be able to critique all of the assumptions guiding the policies on to their lives. A key objective for us now must be to strengthen institutional capacity on the ground, not only at the strategic level, but also fundamentally, so that the public, farmers, and other stakeholders’ institutions are enabled to participate in territories-based agri-food systems. Such a move is fundamental to a successful food security strategy. Our institutional architecture and the multilateral bodies within it, must be made fit for purpose if we are to tackle effectively and meaningfully our contemporary food insecurity crisis which is worsening according to the 2023 Global Report on Food Crises, with 258 million people across 58 countries suffering acute food insecurity. Perhaps most crucially, we must acknowledge, as United Nations Programmes such as the Hand-in-Hand Initiative does, the critical importance of partnership and collaboration in addressing global hunger. We must do everything we can to ensure cross-sectoral co-ordination, foster coherent development actions, under a common, shared vision. We must end all wasteful competitive silo behaviours, create a culture of openness and co-operation. The FAO is well positioned to lead on this with its new invigorated partnerships with the World Food Programme (WFP) and the International Fund for Agricultural Development (IFAD). Co-operation in the development and implementation of new models will be key to the achieving of any targets that seek to be sustainable and inclusive. For example, I suggest it will achieve best results if funders, such as the African Development Bank, are enabled and funded to work closely with research institutes, both at the national and international level, but particularly take account of field studies conducted over time at local level in the new anthropology so as to ensure that findings from the latest research feed into the design and implementation of any financial supports and investments. By providing a platform, a shared interactive transparent space for national authorities and producers, national and global businesses, multilateral development banks and donors to discuss and advance ways and means to finance the supported national food programmes, initiatives such as Hand-in-Hand are proving to be an effective flagship programme of the Food and Agriculture Organisation of the United Nations. Co-operation must work both ways. For example, the parts of the so-called ‘developed’ world suffering from problems of high levels of obesity and food wastage must learn from the deep knowledge and wisdom existing in the most populated continents, as well as the science, which points to a new ecological revolution, one in which agroecology – the bringing of ecological principles to develop new management approaches in agroecosystems – can play a fundamental role, especially for the poorest of our global citizens. We have seen the destructive impact of colonial models of agronomy promoting an over-reliance on a small number of commodity crops, herders incentivised to become less mobile and store less grain in order to maximise commodity crop production, and increasing imports in conditions of near monopoly of seeds, pesticides and fertilisers. This had the deadly effect of opening up farmers not only to the full force of extended droughts, the ravages of variable climate conditions, and a reliance on non-indigenous inputs, but also to global spaces where they have insufficient influence. We must retreat from these dysfunctional food systems model, with their related dependencies, with urgency and embrace models of sufficiency and effective local markets and see the value of making our way too that includes agro-ecological models that promote food security and development opportunities for the poorest people on our fragile planet. Adaptation and responding to the already changing climate is crucial for all of us, and especially in the most food-insecure nations. We must restore degraded ecosystems, introduce drought-resistant crops, ensure accessible digital services for smallholder farms, while creating new, sustainable green jobs for young people so that we may forge a smart, sustainable, climate-resilient development path for the continent. This week we have to acknowledge the many challenges we face including, inter alia, the energy, climate and biodiversity crises, war and conflict which exacerbate food insecurity, ensuring enabling policy environments, and reaching the long-term goal of sustainable food system transformation. Any agri-food initiative, be it for Africa, the Middle-East, Central or South America, or other food-insecure regions, must place inclusivity at its core. Specifically, more vulnerable, smallholder farmers must be targeted for inclusion as programme beneficiaries, not just large-scale, industrial level farmers and ever-expanding commercial plantations. Research has shown that irresponsible agri-business deals are sometimes falsely legitimated by the promotion of alleged achievement of Sustainable Development Goal Number 2 at any cost, without care as to consequence, ignoring the reality that smallholders need enabling policies to enhance their role in food production; that food insecurity is linked to rights, processes, and unequal access to land resources; and that dispossession disproportionately affects women farmers. On this latter issue of gender, achieving zero hunger requires gender-inclusive land and labour policies. Actions must prioritise the inclusion of women and girls who are more food insecure than men in every region of the world. Women must have a right to land recognised and enshrined. The gender gap in food security has grown exponentially in recent years, and will only deteriorate further in the absence of targeted intervention. Women are obviously the most impacted victims of the food crisis, thus they must be a part of the solution. Women produce up to 80 percent of foodstuffs. Empowering women farmers can thus serve as a transformative tool for food security. However, female farmers have, research tell us, limited access to physical inputs, such as seeds and fertiliser, to markets, to storage facilities and this must be addressed. Climate change, and our response to it, addressing global hunger and global poverty, exposing and breaking dependency is a core theme of my Presidency. It is the most pressing existential crisis that our vulnerable planet and its global citizens face. Throughout the world, young people and the youth sector have been at the vanguard of efforts to tackle climate change. Young people have demonstrated, time and again, how well-informed and acutely aware they are of the threat that climate change poses, as well as its uneven and unequal impacts. May I suggest to all of you that, as young innovators and future leaders in your respective fields, you will be at your best, achieve the greatest fulfilment for yourself and others, when you locate your contribution within a commitment to be concerned and contributing global citizens. Take time to ask how is my energy in the tasks of hand and brain being delivered and for whose benefit. May I suggest, too, that you will be remembered and appreciated all the more if you work to ensure that the results of science, technology are shared and that all human endeavours are allowed to flow across borders for the human benefit of all and with a commitment to ecological responsibility and inclusivity. Offer your efforts where they can have the best effect for all. Locate yourselves in the heart of the populated world, as Nobel Laureate William Campbell did with his research on river blindness. Changing our food systems is, however, let us not forget, an intergenerational challenge that requires an inter-generational approach. We must now empower youth to be in the driver’s seat to build a new, better, transparent model of food security in a variety of different settings. Let us endeavour, together, in our diverse world, to seek to build a co-operative, caring and non-exploitative global civilisation free from hunger, a shared planet, a global family at peace with nature and neighbours, resilient to the climate change that is already occurring, one based on foundations of respect for each nation’s own institutions, traditions, experiences and wisdoms, founded on a recognition of the transcendent solidarity that might bind us together as humans, and reveal a recognition of the responsibility we share for our vulnerable planet and the fundamental dignity of all those who dwell on it. Thank you. Beir beannacht.