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Energy & Economics
Cargo ship on Pacific Ocean Cost

UK joins Asia-Pacific trade bloc

by Marina Strezhneva

At the end of March, the negotiations that started in June 2021 on the accession of the United Kingdom to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) were successfully concluded, reflecting radical changes in British trade priorities after Brexit. More broadly, this move by London undoubtedly confirms the special importance that the Indo-Pacific region has acquired in the concept of "Global Britain" and in its subsequent relevant updates. The signing ceremony is scheduled for July 2023, for which the trade ministers of the participating countries and the United Kingdom will meet in Auckland (New Zealand). As a result of London's accession, this bloc will surpass the EU in terms of the combined population of its constituent countries. However, unlike the European Union, which the United Kingdom, on the contrary, left, the CPTPP does not have - to the satisfaction of British Eurosceptics - its own court like the EU Court of Justice, or a supranational budget. The union operates as a multinational trade agreement. An important obstacle that hindered reaching an agreement more quickly was London's refusal to weaken national food standards. But in the end, Ottawa (Canada) backed down on calls for London to lift the ban on importing beef with growth hormones. Beijing has also applied for membership in the CPTPP following London (the Chinese application is dated September 16, 2021, but negotiations have not yet begun). However, with London's accession as a full member of the agreement, China's chances of joining the bloc look somewhat weaker, as London is likely to obtain veto power on this issue. It is possible that they will use this veto under the pretext of ensuring higher trade standards within the agreement (including issues related to ecology and food safety). In any case, as It is known, the current British Prime Minister Rishi Sunak refers to China as a "systemic challenge", which London intends to respond to with "dynamic pragmatism." Currently, the CPTPP includes 11 states (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam), none of which are European. These countries collectively account for 13% of global GDP. The new partnership replaced the Trans-Pacific Partnership agreement of 2016 with 12 participants, after former US President Donald Trump withdrew the US from the agreement in 2017. In 2020, the 11 countries of the CPTPP accounted for 8.4% of goods and services exported from the United Kingdom. In turn, 6.8% of imports to the United Kingdom came from these countries. The terms of the Trans-Pacific Partnership eliminate unnecessary barriers to mutual trade of services by opening financial markets and reducing obstacles to cross-border investment, facilitating data exchange, increasing business mobility, and ensuring regulatory transparency. All of this will support the British government's plans to turn the country into a global technology and service hub, strengthen semiconductor and critical mineral supply chains to produce electric vehicles and wind turbines.London already has trade agreements with most members of this trading bloc, but now these relationships can deepen, and 99% of British goods exported to the bloc countries will be subject to zero import tariffs. Tariffs on imports of Peruvian bananas, Vietnamese rice, crab sticks from Singapore, and Malaysian palm oil into the UK will be reduced (this is a controversial issue that has sparked discussion in the UK, as the production of palm oil, as ecologists point out, leads to deforestation of tropical forests). At the same time, according to assessments by the British government itself, joining the CPTPP is expected to add no more than 0.08% per year to the country's economic growth in the long term (while the slowdown in growth due to Brexit is estimated at 4%). Many politicians and trade experts rightfully point out that participation in the Trans-Pacific Partnership is not capable of compensating for the economic losses that the UK is experiencing due to its departure from the EU. Moreover, due to differences in its rules and standards from European regulations, Britain's accession will prevent it from returning to the European Union in case of a change of priorities. In other words, this agreement is like driving an additional wedge into the relationship between London and Brussels, which are just starting to improve. It is worth remembering in this regard that it was Liz Truss, a former trade minister in Boris Johnson's cabinet and one of the main advocates of independence from the EU, who submitted the British application to join the CPTPP. So far, for London, it is not so much a direct economic, but rather a strategic and symbolic acquisition, firstly due to the rapid growth (according to some estimates, up to 65% by 2030) in the number of middle-class consumers in a dynamically developing region, committed to innovation, and secondly, because of the fact that in the foreseeable future, mid-ranking trading powers such as Thailand and South Korea, which have already submitted applications, are planning to join the Trans-Pacific Partnership. Membership in the TPP is becoming more important for Britain due to the unattainability of a large trade agreement with the United States and the crisis in the World Trade Organization, which is currently unable to firmly enforce the rules of global trade. The matter is not limited to trade alone as London's foreign policy is clearly shifting towards the Indo-Pacific region. In this sense, Australia and Japan, concerned about economic pressure from China and its military ambitions, see Great Britain as a natural ally in opposing Beijing. It is assumed that stronger economic ties will lead to the strengthening of geostrategic alliances. Due to the high dependence of countries such as Chile on Beijing, which is the largest trading partner and main investor for Chileans, Britain's participation in the CPTPP, according to London's opinion, will contribute to the establishment of necessary connections that are seen by Britain's partners in the region as an attractive alternative to ties with China.

Diplomacy
Central Asian migrants in the airport

By Sending Migrants to Ukraine, the Kremlin is Damaging Ties With Central Asia

by Sher Khashimov

By continuing to rely on Russia’s ethnic minorities and foreign labor migrants to do its dirty work in Ukraine, the Kremlin is inadvertently damaging ties to its former colonies. A young Uzbek man named Fakhriddin has died in Ukraine after being recruited from a Russian prison, where he had been serving a five-year prison sentence, to work on a construction project in Russia-occupied eastern Ukraine. Fakhriddin, who died when a shell hit the site he was working on, is one of the latest casualties of Russia’s push to use Central Asian natives not only on Ukrainian battlefields, but also in the reconstruction of battle-torn occupied territories. Hundreds if not thousands of Central Asian migrants are being hired to work in Russian-occupied Ukrainian territory, despite dangerous conditions and warnings from their governments not to go to Ukraine. Most of these migrants are used in the reconstruction of war-ravaged cities like Mariupol and Donetsk; others dig trenches and collect dead bodies on the frontlines. Female migrants from Central Asia are also offered jobs in military hospitals, canteens, and factories in occupied eastern Ukraine. Vacancies are posted on major employment websites like Headhunter and the classifieds site Avito, as well as some regional employment websites, and shared via social media and in migrant communities or advertised by construction companies directly. Employers promise to cover travel expenses to Ukraine, accommodation, meals, and uniforms. Salaries range from $2,000 to $3,300 a month: significantly more than laborers can earn in Russia. Yet despite the enticing promises, Central Asian migrants face the same issues in Russia-occupied Ukraine as they do in Russia itself: unsanitary conditions, unheated living quarters, and poor treatment by employers. Multiple reports indicate that migrants are either underpaid or not paid at all. Some disillusioned workers who have tried to leave Ukraine were not permitted by Russian border guards to re-enter Russia, forcing them to continue working in dangerous conditions on the frontlines while facing criminal prosecution from Kyiv and their home governments for participating in the invasion. These hostile conditions in eastern Ukraine put Central Asian labor migrants and their governments in a bind. Central Asia’s population continues to grow rapidly, with around half of the region’s population now under thirty years old. A lack of employment options and underdeveloped education systems combined with economies wrecked by nepotism, the COVID-19 pandemic, and capital flight mean many younger Central Asians are forced to move abroad to find work.  Central Asian governments, particularly those of Kyrgyzstan, Tajikistan, and Uzbekistan, have become accustomed to exporting excess labor capacity in order to generate much-needed revenue for households through remittances, relieve domestic pressure to create jobs, and provide public goods and services. Politically, migration serves as a pressure valve that prevents the buildup of unemployment-fueled social and political frustration and helps undemocratic regimes to stay in power. Russia remains the primary destination for these labor migrants. Familiarity with the Russian language and culture stemming from a shared Soviet past, geographic proximity, and Russia’s acute need for labor migrants continues to keep Central Asia in Moscow’s orbit. Streamlined processes for obtaining citizenship for highly qualified personnel from former Soviet republics, such as doctors and engineers, adds to Russia’s allure, particularly to those from Tajikistan and Kyrgyzstan, the most remittance-dependent countries in the region. After a pandemic-induced dip, the number of Kyrgyz, Tajiks, and Uzbeks registered to work in Russia is peaking again. According to Russian Interior Ministry data, as many as 978,216 Kyrgyz, 3,528,319 Tajiks, and 5,837,363 Uzbeks entered Russia intending to work in 2022. Some people are likely to have been counted twice in these figures, as they reflect the number of registered border crossings, but they are still at a five-year high. Now the economic downturn in Russia and pressure to work in Russia-occupied Ukraine might contribute to changes in regional labor migration patterns—both at the grassroots level and from the top—that started during the pandemic. While Uzbekistan has become a popular destination for migrants from Turkmenistan, Kazakhstan has emerged as a popular alternative destination to Russia for a growing number of Uzbeks, Tajiks, and Kyrgyz (precise numbers are harder to find as many migrants take advantage of the lack of visa requirements to work illegally and avoid paying taxes).  Central Asian governments, facing domestic pressure to keep their nationals from dying in Ukraine, are also looking for ways to reduce their employment dependence on Russia by diversifying migration destinations and providing migrants with more resources. Uzbekistan has been working with Kyrgyzstan and Kazakhstan on the bilateral improvement of migration flows. Last December, the Uzbek and British governments discussed collaboration on labor migration during another round of economic talks. USAID has just opened a second consultation center in Uzbekistan for labor migrants, in Samarkand. In early 2022, Kyrgyzstan’s Labor Ministry created a center for employment abroad; later that year, the governments of Kyrgyzstan and South Korea signed an agreement guaranteeing additional employment opportunities for Kyrgyz nationals in South Korea.  This search for labor migration alternatives is part of Central Asia’s slow realignment away from its all-encompassing dependence on Russia: a nuanced dance the regional governments must perform without directly antagonizing the former metropole.  Central Asian governments refused to side with Russia in condemning the UN resolution to end the war in Ukraine. Russia’s regional integration projects are unlikely to expand, as Uzbekistan continues to decline invitations to join the Eurasian Economic Union, and Russia’s defeats in Ukraine have weakened the reputation of the Moscow-led Collective Security Treaty Organization. Finally, Central Asian foreign ministers in February welcomed U.S. Secretary of State Antony Blinken to the first ministerial-level engagement of the C5+1 Diplomatic Platform—which represents U.S. engagement with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan—in the region since its 2015 founding. This realignment can also be seen on the cultural front: the popularity of the Russian language is declining, while local languages are seeing growing interest in them since the invasion of Ukraine. Local governments are cutting the number of Russian language lessons in schools and renaming streets. The issue of decolonization and anti-colonial solidarity is as salient as it has ever been since the collapse of the Soviet Union.  By continuing to rely on Russia’s ethnic minorities and foreign labor migrants to do its dirty work in Ukraine, the Kremlin is inadvertently damaging ties to its former colonies. The longer the conflict drags on, the more incentive Central Asian republics will have to manage their dependence on Russia in exporting their excess labor. It’s hard to see Central Asia quitting on Russia entirely, but the relationship is sure to grow more nuanced and less lopsided in the months to come.

Defense & Security
President of Russia Vladimir Putin

Russia Faces Three Pivotal Moments in 2023

by Tatiana Stanovaya

In 2023, Russia faces three crucial issues—President Vladimir Putin’s plans for his future, the battle between the hawks and pragmatists in the elite, and looming government personnel changes—that could reshape the country.  More than ten months on from the invasion of Ukraine, the contrast between the scale of the external shocks faced by Russia and the relative inertia inside the country is striking. Despite military failings and punishing sanctions, most Russians have gone on with their lives as though nothing is happening, while the elites have tried not to think about what tomorrow may bring, instead putting their full trust in Putin. However, 2023 could prove a dramatic year for Russia and be make-or-break for its leadership’s resistance to change, with three internal questions in particular promising to shape the country’s development for decades to come.  First, Putin will have to decide whether to run for re-election in 2024. Russia’s constitution was amended in 2020 to allow him to remain president until 2036. He may alternatively name a successor, though to leave enough time for campaigning, he would have to do so by the end of December 2023. For now, no one is sure what his plans are. This is by design, as Putin prefers to keep his elites in the dark. Indeed, in the summer of 2020, he justified the constitutional changes that made it possible to extend his rule as a guard against unrest among the elites, who he said “need to work, not look around for successors.” Following the revision of the constitution, both the presidential administration and elites operated on the assumption that Putin would hold on to power indefinitely. Today, the key question is how his calculations have been changed by the war and, in particular, the fact that it has not gone according to plan. Some believe that in unleashing grave problems and threats, the war has strengthened Putin’s resolve to stay in power beyond 2024. Given his contempt for “political deserters”—those who quit their posts in tough times—he is unlikely to become one of them. Others feel that not only is Putin open to giving up power, he may see doing so as part of a solution to the conflict with Ukraine. Even if that appears to be wishful thinking, part of the elite clearly hopes that such a reset will suffice to end Russia’s recent string of setbacks. However, both sides lack certainty about his designs. In any case, Putin is famously fond of making decisions at the eleventh hour, often based on situational factors and in defiance of popular expectations. The 2024 problem, then, has become a major source of anxiety for the elites. It will do more than any other issue to influence the events of 2023, as the political class tries to work out Putin’s intentions and plan around them with an eye to minimizing risk. A second, related issue is the growing schism between those in the elites who favor escalating the war, and those who warn against doing so. This divide emerged after Russia’s withdrawal from the Kharkiv region and relinquishing of the key city of Kherson, and was fueled by Ukraine’s strike on the bridge to Crimea, the referendums held on annexing occupied parts of Ukraine, and the authorities’ subsequent ambiguity on what Russia’s official borders are.  The pragmatists, who consist of technocrats as well as mid-ranking officials in the military and the security services, are united in their conviction that the war should be paused and rethought, and that the country should opt for a more realistic policy in keeping with its rather limited capacities. The hawks call for Russia to not only unleash its full military might against Ukraine, but also to radically restructure its own political and economic system. The latter plank makes theirs a revolutionary faction (albeit pro-Putin, for now at least) whose aim is to supplant a government they see as stalled. Their struggle for supremacy is set to be one of 2023’s key political fights, and one that hinges largely on events on the battlefield: the worse Russia performs militarily, the more vicious the pragmatists’ battle with the hawks. The Kremlin will find its preferred mechanism for suppressing dissent—repression—ill-fitting if used against the regime’s loyalists. The hawks will take the offensive, targeting the military brass and politicians, as Yevgeny Prigozhin, the notorious head of the Wagner private military company, already has. The pragmatists, meanwhile, will express doom and gloom about the direction of the conflict, seeking to scale back Moscow’s war goals and force recognition that victory is impossible. Their message will be well received by non-military elites, who were taken by surprise by the invasion and fear its medium-term consequences. All this leaves Russia stuck between military madness and careful consideration of a possible de-escalation, and Putin faced with a choice: between doubling down on his quixotic pursuit of Kyiv’s decisive defeat and returning to the negotiating table, with the West if not Ukraine. The third key issue Russia faces in 2023 revolves around government personnel changes, which are highly likely, even if it is hard to predict who will replace whom. One reason a reshuffle is near-certain is the increasing demand at the top for dynamism and effectiveness. Putin’s inclination to invite technocrats into the government may grow further, with senior figures in the cabinet, the presidential administration, and the power structures all aged and exhausted by the war and military failings forcing Putin to look for new ideas. Another is the coming presidential contest, given the historical record: reshuffles have preceded all but one of Russia’s presidential elections. A long buildup of tension within the government offers another reason to expect personnel changes. Defense Minister Sergey Shoigu and Chief of the General Staff Valery Gerasimov are being blamed for corruption within the armed forces, while the FSB has been slammed for intelligence failures. Security Council Deputy Chairman Dmitry Medvedev is seen as having lost the plot altogether, and Moscow Mayor Sergey Sobyanin as too apolitical, while central bank governor Elvira Nabiullina is suspected of secretly opposing the war. The government’s senior figures are all dissatisfied with each other: a mutual dislike that gives Putin cause to switch things up. Still, his conservatism and apprehensiveness when it comes to firing underlings will likely lead him to try to strike a balance between stability and renewal.  These fateful developments will be profoundly influenced by events on the battlefield. If, as Kyiv has predicted, Russia attempts a large-scale offensive in February or March, it will likely be met with significant Ukrainian resistance. Otherwise, Moscow will continue slowly strangling Ukraine with attacks on its infrastructure, to which Kyiv will respond with diversionary attacks on Russian soil. Russian political life will remain in the grip of the war’s grim and oppressive atmosphere, leaving elites even more anxious and fearful of the future. Putin’s hypersecrecy and refusal to explain himself to anyone will do nothing to help the situation. Repression will undoubtedly grow, with all dissent criminalized, elements of a state ideology introduced, and new pretexts found for even longer prison sentences. In 2023, Russia’s already historic war with Ukraine will show its full transformational potential, finally changing Russia from within and straining its leaders’ ability to keep the situation under control and plan the decisions they make.

Energy & Economics
European Commission President Ursula von der Leyen during a visit to Tunisia hosted by President Kais Saied along with Dutch Prime Minister Mark Rutte and Italian Prime Minister Giorgia Meloni

To Deal or Not to Deal: How to Support Tunisia out of Its Predicament

by Michaël Béchir Ayari and Riccardo Fabiani

Tunisia is beset by deepening political and economic challenges. President Kais Saied is transforming the country’s parliamentary system into an authoritarian presidential one that has become increasingly repressive. Arrests and convictions of opposition politicians have surged. Saied’s aggressive anti-foreigner discourse has fuelled xenophobic sentiment and contributed to a spike in violent attacks against sub-Saharan migrants. Economically, Tunisia is grappling with the fallout of a decade of sluggish growth compounded by a series of economic shocks since 2020. The nation’s public debt has soared, with significant debt repayments looming. As the country tries to deal with mounting financial constraints, its inability to attract foreign loans is further clouding its economic future. Saied now must decide whether to embrace a credit agreement with the International Monetary Fund (IMF) or potentially default on Tunisia’s foreign debt. Against this backdrop, the EU and, in particular, Italy have a pivotal role to play. They can either help steer Tunisia toward a more stable economic future or watch it descend into chaos. A worrying political and economic outlook While the protests that led to the Arab Spring began in Tunisia, the promise of a more democratic and egalitarian society in the North African country did not come to fruition. To be sure, the protests did lead to the overthrow of autocratic Tunisian President Zine El Abidine Ben Ali in 2011. Moreover, Tunisia was the sole country to emerge from the regional uprisings with a new democracy. That experiment, however, foundered after Saied – who was elected to the presidency in 2019 – seized a monopoly on power in July 2021. Over the past two years, he has replaced the country’s semi-parliamentary system with one lacking checks and balances, consolidating power in his hands. People’s fear of repression resurfaced. Since mid-February 2023, arrests and convictions of public figures, especially politicians, have accelerated, undermining a disorganised and divided opposition. Meanwhile, large sections of the population have focused on survival in the face of a worsening economic crisis and have increasingly disengaged from politics. President Saied has attempted to shore up his dwindling support by pushing nationalist policies. He has jailed members of the opposition in a move that seems aimed at bolstering his standing with swathes of the public who are frustrated with the former political class. Saied has also xenophobically accused sub-Saharan migrants of conspiring to change Tunisia’s identity, creating a climate conducive to repeated violent attacks against a vulnerable minority. Economically, the country is still reeling from a decade of slow growth. After the 2011 uprising, the Tunisian government combatted rising unemployment in part by hiring hundreds of thousands of civil servants. Today, the public sector is the country’s largest employer and half of the annual budget is spent on the public payroll. At the same time, public and private investment in infrastructure, research and other growth-enhancing spending items has dropped significantly, leading to a sharp decline in GDP growth. External factors also chipped away at the Tunisian economy. The Covid-19 pandemic brought a collapse in tourism. Russia’s invasion of Ukraine, meanwhile, led to a spike in commodity prices. Surging inflation – particularly in food prices – and shortages of basic goods have eroded Tunisian living standards. Against this backdrop, Tunisia’s public debt has skyrocketed, reaching nearly 90 per cent of GDP in 2022, with substantial financing requirements needed to maintain current levels of spending. Credit rating agencies have downgraded the country as it struggles to balance its budget. The latest downgrade took place in June, when Fitch lowered Tunisia’s rating to CCC- (well into junk status territory). As a result, access to international financial markets has been virtually shut off, given the prohibitive interest rates (over 20 per cent) that this sovereign rating would entail. While the current account deficit has shrunk and foreign currency liquidity has improved over the past few months because of an uptick in tourism revenues and remittances from Tunisians working abroad, servicing its external debt will continue to be extremely challenging. With 2.6 billion US dollars in repayments scheduled for 2024 (including a euro-denominated bond maturing in February, equivalent to 900 million US dollars), it is still unclear how the government will be able to secure sufficient funds to meet these liabilities. The 2024 budget draft anticipates loans from Algeria and Saudi Arabia, as well as other, as yet unknown, external sources. The IMF deal and the role of the EU Despite these financing difficulties, Tunisia has not yet signed a deal with the IMF. In October 2022, Tunisia and the IMF agreed on the terms of a 48-month, 1.9 billion US dollar loan aimed at stabilising the economy, but Saied rejected the deal, fearing social unrest from cutting subsidies and reducing the public sector wage bill. The IMF board postponed the deal in response. Since then, the president has remained steadfast in his rejection of what he calls “foreign diktats” from the IMF and Western states. The Europeans – in particular, Italy – have pressed the IMF to reopen negotiations and offered incentives to persuade Saied to accept a revised deal, despite their internal divisions on how to treat Tunisia. They are applying this pressure largely because the economic fallout from a debt default could further increase the number of people – both nationals and migrants from sub-Saharan Africa – leaving Tunisia for Europe. While some EU member states, such as Germany, have taken a more critical stance towards Kais Saied’s authoritarian turn, eventually the migration, security and economic interests of Italy and, to an extent, France seem to have prevailed within the EU. Due to its geographic proximity to Tunisia, Italy would receive a majority of a migration influx, at least initially. For this reason, the Italian government has reiterated its concerns over Tunisia’s economic situation on multiple occasions, while refraining from expressing any criticism of the country’s increasingly authoritarian turn and violent attacks against sub-Saharan migrants. The EU has offered incentives to Tunisia to accept a deal with the IMF. After Giorgia Meloni and later EU Commission President Ursula von der Leyen and Dutch Prime Minister Mark Rutte visited Tunis in June, they unveiled 900 million euros in macro-financial assistance conditioned on a deal with the IMF and 105 million euros for joint cooperation on border management and anti-smuggling measures to reduce irregular migration to Europe. Despite the sweeteners the EU offered, the likelihood of a revised deal between Tunisia and the IMF has receded. In August, Saied removed the head of government, Najla Bouden, who had been directly involved in the negotiations with the IMF, and replaced her with a more pliant official, Ahmed Hanachi. Since then, Tunisia hasn’t put forward a revised proposal to the IMF. In October, the president reinforced his position by sacking Economy Minister Samir Saied after the latter claimed that a deal with the IMF would send a reassuring message to Tunisia’s foreign creditors. Tunisia has also rejected part of the funds offered by the EU. On 3 October, Saied rejected the first tranche of EU financial help, declaring that this “derisory” amount ran counter to the agreement between the two parties and was just “charity”. The repercussions of this refusal on the rest of the EU’s financial incentives are unclear. A fork in the road There are obvious reasons for Tunisia to secure a loan from the IMF. It would send a reassuring signal to Tunisia’s foreign partners and creditors. It could encourage Gulf Arab states to provide additional financial support in the form of government loans and deposits with the central bank, and investment in the economy. That would provide the Tunisian government with breathing space. But implementation of reforms required under the loan’s terms could set off anti-government protests by the country’s main trade union (the UGTT) and, in turn, government-led repression. To forestall such a scenario, the president himself could incite protests and riots by using nationalist rhetoric to scapegoat the IMF for any unpopular measures required by the loan. A no-agreement scenario, however, would have much more severe and potentially even catastrophic consequences. Without a loan, Tunisia would struggle to find alternative funding sources to meet its scheduled foreign debt repayments. Saied could then resort to a politically motivated strategic default, followed by negotiations to restructure the country’s external debt. Some Tunisian economists and supporters of the president are advocating for this approach: they say that declaring bankruptcy on external debt would allow the government to hammer out a restructuring plan with creditors and argue that the impact on the economy would be fairly limited, thanks to Tunisia’s capital controls and its banking sector’s low exposure to foreign bonds. But this approach carries great risk, as a foreign debt bankruptcy could lead to a run on Tunisian banks and destabilise the financial sector. In addition, the government could end the central bank’s independence to print money, fuelling an inflation spiral. Politically, a default and its socio-economic repercussions could open the door to a dangerous spiral of social and criminal violence. It could also boost irregular outward migration, with Tunisians fleeing the growing political and economic chaos. Widespread protests may erupt against the disastrous social effects of the president’s failed economic policy, prompting a violent response targeting businesspeople and political opponents for their alleged links to the West, as well as Western diplomats and the local Jewish community. Balancing economic support and respect for rights In light of these two possible scenarios, the EU and Italy should continue to encourage the Tunisian authorities to negotiate with the IMF, which remains the least politically and economically destabilising option on the table for Tunisia, if carried out with due care. At a minimum, a revised deal should include reduced expenditure cuts compared with the earlier proposal, particularly in the context of energy subsidies. At the same time, Italy and the EU should exercise caution and avoid turning their understandable concerns about Tunisia’s stability into a blank check for the president. In particular, they should press the authorities to rein in the abuses perpetrated against migrants and stave off potential attacks against opposition politicians, businesspeople and the local Jewish community. Aside from humanitarian considerations, this would serve Italy’s overarching goal of curbing migration: after all, attacks against the sub-Saharan minority have spurred outward migration, a trend that would accelerate if government persecution becomes even more severe. While supporting the deal, however, the EU and Italy should also prepare for the possibility of Tunisia continuing to reject it and declaring a foreign debt default. In such a scenario, the EU should be prepared to offer emergency financing to the country to help with imports of wheat, medicines and fuel. In doing so, the EU should synchronise the positions of member states to prevent conflicting agendas. Schisms have already emerged between countries like Germany and Italy over how to address Tunisia’s authoritarian drift. For this reason, acknowledgement of the importance of internal stability could provide a common ground in overcoming divisions and helping prevent a new wave of anti-migrant violence.

Defense & Security
Finland's President Sauli Niinisto and NATO Secretary General Jens Stoltenberg give a press conference during a NATO foreign affairs ministers' meeting in Brussels, Belgium

Finland joins Nato in a major blow to Putin which doubles the length of the alliance’s border with Russia

by Simon J Smith

In 1948, the Treaty of Friendship, Cooperation, and Mutual Assistance was signed between the Soviet Union and Finland, providing a key basis for relations between the two states that was to last throughout the cold war. With memories of the 1939 “winter war” between the two still acute, the agreement embodied the Paasikivi–Kekkonen doctrine, named for two of Finland’s post-war presidents who developed the idea between 1946 and 1982 of a neutral Finland close to the USSR. It also set the context for the term “Finlandisation” used by international relations scholars to describe external interference by a powerful country in the foreign policy of a smaller neighbouring state. A year later, on April 4 1949, the North Atlantic Treaty was signed by the 12 founding members of Nato. Throughout the cold war, Finland remained a neutral state – although more due to circumstance than by choice. And despite its 1,340km (832 mile) border with Russia, it chose not to join Nato in the late 1990s, even as many of its eastern European neighbours did. It officially abandon its policy of neutrality in 1994, joining Nato’s Partnership for Peace and then the European Union in 1995. But aspirations to become a full Nato member state had not quite matured. That all ended with Russia’s second invasion of Ukraine in February 2022. Finland (and Sweden) submitted their formal applications to join the alliance on May 18 2022 and this was endorsed by Nato members at the most recent summit in Madrid in June. Although accession to Nato membership was relatively quick, there were objections from some members, most notably Turkey and, to a lesser extent, Hungary. Turkey held up membership for Finland – and is still doing so for Sweden – due to its concerns over what it called support for terrorist groups, namely the Kurdistan Workers’ party (PKK). Hungary also raised objections due to what it regarded as criticism by the Nordic states with regard to the strength of Hungarian democracy. But Nato chief Jens Stoltenberg said recently he is confident that Sweden could become a member by summer.View from MoscowIf Putin was hoping to achieve the Finlandisation of Nato as one of his strategic aims of the war, what he has actually achieved was the “Natoisation” of Finland since it has now become the alliance’s 31st member state. With this comes Article 5 guarantees – the an attack on one member is an attack on the alliance as a whole and must be responded to as such. This fundamentally changes the defence and security posture of Finland, and European security architecture as a whole. Implications include the size and geographical focus of the alliance (even more so if Sweden joins in the not-too-distant future) as well as inter-organisational relations between Nato and the EU, the other key pillar of the European security architecture. And Finland is not playing catch up in order to meet its Nato commitments. In fact, Finland will be a net contributor to the alliance’s overall collective defence. Over recent years, it has been modernising its armed forces, purchasing robust military capabilities and, unlike the majority of member states, it meets the Nato target of 2% of GDP spent on its own defence. Putin has, of course, issued warnings to Finland (and Sweden) about joining the alliance. In 2016, Putin stated that “When we look across the border now, we see a Finn on the other side. If Finland joins Nato, we will see an enemy.” Although there have been mixed signals with regard to Russia’s views on the sovereign right of Finland to join a collective defence organisation if it so chooses (although Russia does not extend this position to Ukraine itelf), it is gravely concerned that Nato will position military capabilities in Finland, on its border – and close to Russia’s own strategically important bases and geography. Although Russia is very much focused on correcting its strategic blunders in Ukraine, it will at some stage begin to recover and, therefore, reconstitute its armed forces and military posture. Of particular concern could be Russia’s increased dependency on its tactical nuclear posture to offset its (temporarily) decreased capacity with regard to conventional capabilities. Although we do not know what the future holds, given both the duration and eventual outcome of the war, Russia will continue to have security concerns. And now it has a border with Nato that will run from the High North down to the Black Sea and beyond. This is guaranteed to lock in continued tensions between the alliance and Russia for years to come. Nato fundamentally thinks of itself as a collective defence organisation, with (nuclear) deterrence as its core strength. Russia will continue to see the alliance as a key stalwart undermining its threat perceptions and ability to affect its own near abroad. So as the Finnish flag is raised at Nato HQ in Brussels, It would be naive to think that Russia will not respond – even if its power to do so is currently somewhat diminished.

Defense & Security
Israelis protest at Tel Aviv against Netanyahu anti-democratic coup

The Israeli protests: What’s happened and what’s likely to come

by Paul Scham

Monday, March 27 was supposed to be a red-letter day for the new far-right Israeli coalition government, when it planned to slide through the Knesset the central provision of its “judicial overhaul” bill, comfortably ahead of the Passover recess beginning on April 2. Instead, it ended up being one of the most extraordinary days in Israeli history. Spurred by the “firing” of Defense Minister Yoav Gallant by Prime Minister Benjamin (“Bibi”) Netanyahu the evening before, the demonstrations against the overhaul, which had been building in intensity for over two months, became overwhelming. Universities, businesses, Ben-Gurion Airport, and Israel’s embassies and consulates abroad were all closed down in protest, and a general strike was scheduled for the following day. Air Force reserve pilots and other security personnel on whom the military heavily relies were threatening to not report for training or duty. In the face of this completely unprecedented protest, Netanyahu announced he would suspend the bill’s progress “to try to reach a broad agreement during the next Knesset session,” which begins on May 1. The announcement was delayed while Bibi worked out a deal with one of his coalition partners, Itamar Ben-Gvir, minister of national security and head of the neo-Kahanist Jewish Power Party, to organize a new “National Guard,” which, its opponents charge, would constitute “a paramilitary organization that would operate inside Israel in times of crisis, mainly to deal with rioting and nationalist incidents involving Israeli Arabs.” They view it as a new reason not to compromise. Nevertheless, dialogue has already begun with the Knesset opposition under the auspices of President Isaac Herzog. Netanyahu was unquestionably forced to make the postponement concession by the massive outpouring of protest; one poll showed that two-thirds of the Israeli public was against the legislation in its current form. Nevertheless, his entire coalition supports the reform in its current form. Even Minister of Defense Gallant, who is apparently remaining in office since he was not given the requisite legal notice, stressed that his call for delay stemmed solely from fear of damage to Israel’s military preparedness after thousands of Israel Defense Forces reservists threatened not to show up for duty. The handful of coalition MKs, all from Likud, who had indicated reservations about proceeding immediately, were likewise aboard in principle. This may make the negotiations difficult, if not impossible. Dialogue, of course, is the civilized way to proceed, but finding a solution even remotely palatable to all is made significantly more difficult by the disparate composition of the coalition, in which Netanyahu holds less power and influence than in any of the previous five governments he headed. His four coalition partners are ideologically driven and all have very different visions of Israel’s society and priorities than do most Israelis or, in fact, than did Netanyahu himself during most of his political career. Moreover, with the increasing polarization of Israeli society during the last decade, the non-Arab Israeli parties have now formed into two solid blocs, usually called right and left, but they are more accurately described as “never-Bibi” and “pro-Bibi if he does what we want.” However, neither his partners nor his opponents retain any trust in Bibi’s word, and there is considerable suspicion he may push the reforms through unaltered. Thus, despite his promise to delay the bill and negotiate with the opposition, the regular Saturday night demonstration attracted as many — or more — Israelis as the previous ones.Concurrence on neutering the Supreme CourtWhile the genesis of the current crisis is complex, its way was paved by Netanyahu’s desperate attempts to end his ongoing corruption trial and Justice Minister Yariv Levin’s deep ideological commitment to shattering the existing judicial system by making it “more democratic,” i.e., rendering the Supreme Court powerless to invalidate laws passed by the Knesset majority. But the overhaul has received crucial support from a coalition of three distinct minority groups in Israeli society with their own political goals or grievances, all in the pro-Bibi bloc: 1. The two Haredi (“ultra-Orthodox”) parties, which want to block the Supreme Court’s repeated rejection of their blanket exemption from military service, exempt their schools from minimum education requirements, increase state support for yeshiva students, as well as remove the Court’s ban on Shas party Chair Aryeh Deri from serving as a minister because of two convictions for corruption. 2. Extremist settlers and supporters in the Jewish Power and Religious Zionism parties, who want to remove any legal obstacles to increased settlement, permit the annexation of part or all of the West Bank, and prevent punishment for atrocities like the recent settler pogrom in the West Bank village of Hawara, as well as make Israel “more Jewish.” While there has been an extreme anti-Arab right wing in Israel since at least the 1980s, this is the first time they have been part of a government, with their leaders in significant positions of power. They view the Supreme Court as their main obstacle, though it has only occasionally blocked settler activities in the West Bank. 3. The Kohelet Forum, a well-financed think tank that has gained significant influence in Israeli right-wing circles in recent years, which is pushing for the removal of legal norms preventing the adoption of American libertarian principles foreign to Israel. Their influence is primarily in the Likud.Deep cultural/political rootsThe broader impetus for these reforms has both a larger cultural context as well as a more political one. They emerge from a cultural polarization that has been building since the 1950s and a political tension evident since at least the time of Israel’s First Lebanon War in 1982. They can also be understood in the context of the decade-old worldwide movement toward populism and away from liberal democracy, with distinctive Israeli characteristics. The cultural context harkens back to the immigration to Israel in the 1950s of “Eastern Jews” (Mizrahim) from Arab and Muslim countries, over a million of whom arrived in Israel during the 1950s and 1960s, trebling Israel’s population. It is now generally recognized that they were demeaned and disparaged by officials from the then-hegemonic Labor movement, and Mizrahim are still, on average, less educated and wealthy compared to Ashkenazim (Jews of Central and Eastern European ancestry). Overwhelming Mizrahi support for the right-wing Likud party was a principal factor in its victory of 1977 and control of the premiership for 33 of the subsequent 45 years. All these governments were coalitions — no Israeli party has ever won an outright majority — generally with the participation of the two ultra-Orthodox (Haredi) parties, the National Religious (settler-dominated) party, and one or another centrist party that enabled Netanyahu to play one side against the other. Despite this fairly consistent political control, the single most important theme of Likud messaging has been opposition to the alleged (and partially real) “Ashkenazi”- and “leftist”-dominated Israeli establishment. This theme has been especially pronounced during the 22 years of Netanyahu’s leadership of the party (though all Likud chairmen have been Ashkenazim who rose to power within the country’s traditional power structures). The claims of elite domination have reached a crescendo in recent months and are now being put forward as the principal justification for the judicial reforms. Likud/Mizrahi complaints of being shut out of the Israeli power structure are not entirely unfounded, despite Likud’s control of the government, today and over the past four decades. There is no doubt that secular, moderately liberal Ashkenazim dominate the academic, legal, military, cultural, and business elites — obviously some more than others. However, the particular bête noir of the Haredim, the settler religious right, and the personal concern of Netanyahu and Deri is the courts, especially the Supreme Court, because that is the sole institution capable of blocking their disparate objectives. Protesters — and most of the Israeli establishment — see it as the critical — and sole — body exercising any check on the government and Knesset majority, given the absence of a written constitution, a second legislative chamber, a federal system, or any other such institution, one or more of which is present in virtually every other democratic country. The protesters are similarly, or perhaps even more, disparate than the “reformists.” Their core is indeed the educated Ashkenazi middle class, but also contains wide swathes of virtually all other social groups in the country with the exception of Israeli Palestinians, who would indeed be hard hit by the overhaul but who largely regard this as an intra-Jewish dispute. The protest organizers have been at pains to emphasize the non-ideological and non-left-wing nature of the protests, hence the ubiquitous Israeli flags and the absence of Palestinian ones. Of course the left is intimately involved and hopes these protests against the right will help to revive its depleted fortunes. The left sees the occupation as the root cause of the right’s insistence on the overhaul, and expects that Arab parties will be among the first victims of an empowered right if the reforms are enacted.Difficulties in reaching a compromiseTechnically, a compromise agreement including some of the “reforms” but leaving a viable system of checks and balances in place could easily be reached. However, this is unlikely, primarily because the two religious Zionist parties, Jewish Power and Religious Zionism, are ideologically committed to fundamental changes that the Supreme Court would certainly block. In addition, Justice Minister Levin and a few others in the Likud seem unalterably committed to the full overhaul, undercutting Netanyahu’s announced willingness to negotiate. The two Haredi parties may, however, be more flexible, as they have no commitment to the secular Israeli state and usually are able to obtain what they need through the political process. The only person in a position to transform the political debate and completely change its terms is Prime Minister Netanyahu himself. There has long been speculation that he could be offered a “get out of jail free card” by the prosecution in his ongoing trial on corruption charges, specifying that the charges would be dropped if he foreswore political activity. The opposition has no doubt that his main reason for staying in power is to change the Court and legal system sufficiently as to avoid any chance of conviction, which he indignantly denies. Some have recently speculated that the humiliation of being forced to change his mind and accept the postponement may drive him to accept the plea bargain. While chances still seem against that happening, if he did accept it, that would immediately transform the political map of Israel. A number of right-wing politicians have left Likud and the rightist bloc over the years because of their treatment by him — and they were part of the recently deposed, unwieldy 18-month “Government of Change,” which contained left, right, and centrist elements (all of the rightists and many of the centrists were ex-Netanyahu partners and supporters). Were Netanyahu to be out of the picture, a center-right coalition could be formed, perhaps even without new elections, that could pass an amended judicial reform package, presumably limiting the damage to checks and balances. The far right would be left out in the cold, the Haredim would join, and the tattered Israeli left would possibly be strengthened but would still be small. However, no one currently believes that is likely to happen. Claims have been made that Netanyahu has promised the hard-liners in his coalition that he won’t compromise, in which case there is little doubt that the demonstrations will be renewed, although whether they will be strengthened or weakened by the delay can’t be predicted. Minister Levin has promised large counter-demonstrations as well, heightening the likelihood of violence, some of which has already started. In fact, the most controversial provisions have already passed their preliminary “readings,” and could be approved on 24-hour notice once the Knesset returns. Besides the opposition in the street, the new provisions would immediately be brought before the Supreme Court, which would almost certainly declare them invalid, leading inevitably to a full-bore constitutional crisis based on the Court declaring invalid the legislation that purported to strip it of that power. Commanders of many of Israel’s security branches have already intimated that in such a contest of legitimacy, they would go with the Supreme Court rather than the government. Of course, this crisis is not taking place in a vacuum. The day after Bibi backed down, President Joe Biden warned that he “cannot continue down this road,” leading to charges of interference in Israel’s internal affairs. Closer to home, Bibi’s grandiose hopes of widespread Israeli-Arab peace based on the 2020 Abraham Accords are crumbling or, at the least, have entered a deep freeze. The United Arab Emirates cancelled a scheduled visit by Netanyahu in January, just after his government was formed, while Jordan was deeply upset by remarks that Finance Minister Bezalel Smotrich made denying the existence of a Palestinian people (something the Israeli government formally recognized in 1993), while standing on a stage festooned with a banner showing Israel’s borders as including not only the West Bank but Jordan as well. Moreover, the big prize Netanyahu hoped to bring into the Abraham Accords, namely Saudi Arabia, has closed the door on them, at least for the foreseeable future. Moreover, the kingdom’s recent China-brokered resumption of ties with Iran is a poke in Israel’s eye (as well as that of the U.S.), besides attenuating one of the main reasons for Saudi-Israeli rapprochement, namely, fear of Iran. Despite the gravity of the situation, some Israelis, at least on the protesters’ side, found reasons for optimism, apart from whether or not the overhaul would go through. Unlike many other countries in which populist regimes have enfeebled political and civil liberties — Hungary, Poland, Turkey, Russia, and India are only a partial list — Israelis chanting “De-mo-kra-tia” poured out onto the streets for months, while senior retired military, business, and civic leaders, as well as all manner of civil society institutions, declared their opposition to the overhaul, with some, such as high-tech venture capitalists, able to convincingly warn of serious consequences. This will presumably serve as a warning and check on any future governments, left or right, showing authoritarian tendencies. Even those hoping Israel will change its stance on the conflict with the Palestinians drew some comfort from the massive demonstrations, hoping that they could portend a new vision of democracy, despite the left’s dismal showing in recent elections. That, however, remains to be seen.

Diplomacy
President Xi Jinping with Vladimir Putin

Putin-Xi Summit Reinforces Anti-U.S. Partnership

by Thomas Graham

The meeting of Russian President Vladimir Putin and Chinese leader Xi Jinping in Moscow helped both give the impression of a united front, but underlying tensions were also discernible. What did the summit achieve for each side?With the pomp of a state visit, Russian President Vladimir Putin and Chinese leader Xi Jinping shined a spotlight on their ­growing strategic alignment, which is aimed at upending the U.S.-led, rules-based international order in favor of a multipolar world. Long on symbolism, short on concrete substance, the summit nevertheless served both leaders’ purposes. Putin welcomed the demonstration that Russia was not, and could not be, isolated on the world stage, as it deepened relations with one of the world’s two superpowers. By showcasing burgeoning commercial ties and unveiling plans to expand them, Putin conveyed confidence that Russia can remain resilient in the face of harsh Western sanctions.      Meanwhile, Xi’s decision to make Moscow his first foreign visit of his third term as president underscored his strong commitment to Russia and to Putin personally. He used the summit to underscore China’s determination to pursue its national interests in defiance of mounting U.S. economic and diplomatic pressure—making the point that China will not abandon its strategic partner in pushing back against U.S. pretensions to global leadership. That was a crucial message for his increasingly nationalistic domestic audience, as well as for the Global South, where the U.S.-led liberal order is under stress. At the same time, Xi subtly let it be known that China is the dominant partner. Putin had little choice but to accept Xi’s proposal that Russia use the yuan, not the ruble, in trade with the Global South to diminish the role of the U.S. dollar in world trade. Xi also gratuitously endorsed Putin for reelection in 2024, even though the Russian president has not declared his intention to run. And at the joint press availability at the end of the summit, Xi was much more restrained in his description of bilateral relations than was Putin, who was eager to lay out all the areas in which the two countries would enhance cooperation in the years ahead. That left the clear impression that Russia needed China much more than China needed Russia.What does the summit mean for the war in Ukraine?Nothing at the summit suggested that the underlying dynamic in the war was about to change. As expected, Beijing continued to provide Moscow with strong diplomatic support, echoing the latter’s narrative blaming the North Atlantic Treaty Organization (NATO) for the conflict. Despite Washington’s fears, however, Xi gave no indication that China was ready to provide lethal military aid that might radically improve Russia’s chances on the battlefield. Putin noted that China’s recently released 12-point peace plan could serve as a basis for negotiations, but neither he nor Xi suggested any practical steps that might give substance to what is largely a list of bromides about respecting sovereignty, avoiding escalation, and seeking a diplomatic solution. The reality is that China benefits from the military stalemate. Russia’s aggression distracts U.S. attention and resources from the Indo-Pacific region, while Western sanctions compel Russia to turn to China as an economic lifeline. China exploits Russia’s predicament to gain access to critical natural resources, especially oil and gas, at discounted prices.  In line with this calculus, Xi provided Putin with sufficient moral and material support so that he could continue the fight, but much less than needed to give Russia the advantage. At the same time, the Chinese continued to drive hard commercial bargains. Notably, no deal was announced to build a second Power of Siberia gas pipeline, which Putin has described as “the deal of the century.” Rather, it was simply noted that further details needed to be negotiated, as China explores alternatives.What does it reveal about the underlying tensions between China and Russia?Except for a brief period after the Communist takeover of China in 1949, China and Russia have been rivals, not partners. Until the end of the Cold War, Russia was by far the superior power.   The dynamic changed dramatically after 1991. Then, the two countries’ economies were roughly the same size. Now, China’s economy is ten times larger, and the gap continues to widen.  Moreover, China now casts a much larger shadow on the global stage: it has overtaken Russia in the development of advanced technology and its conventional military is comparable to Russia’s, even as it is moving toward nuclear parity with both Russia and the United States. What once could have been seen as a roughly equal partnership has evolved to the point where Russia is decidedly the junior partner. Despite the rhetoric of comprehensive partnership and avowals from Putin and Xi that relations have never been better, this asymmetry in power and ambition is in itself a source of friction, in addition to the civilizational clashes, racial prejudices, territorial grievances, and geopolitical competition that have strained relations in the past. But these sources of tension are currently far outweighed by the shared challenge from the United States. Washington’s current policy of dual containment only reinforces their strategic alignment and pushes the tensions further into the background.

Diplomacy
Saudi Arabia and Iran flags printed on the hand-shaking gesture

Saudi Iranian détente potentially sparks paradigm shifts

by James M. Dorsey

Chinese mediation between Saudi Arabia and Iran potentially signals paradigm shifts in Middle Eastern diplomacy and alliances.  The mediation suggests a more productive approach than that of the United States by seeking to manage rather than resolve conflicts based on principles enunciated by China in 2021. The successful mediation between the Middle East’s foremost archrivals also indicates it could lead to a broader regional détente. Sources in Bahrain said the Shiite-majority Gulf state ruled by a Sunni Muslim minority might be on the verge of restoring diplomatic relations with Iran. The sources said Bahrain and Iran were already exchanging messages. Long at the forefront of disputes between Iran and various Gulf states, Bahrain would be the only Gulf Cooperation Council (GCC) member without formal relations with the Islamic republic when Riyadh and Tehran exchange ambassadors in accordance with the agreement negotiated by China. The GCC groups Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Kuwait, and Oman. In what looks like a possible second wave of détente in the Middle East, Egypt, Morocco, and Jordan could be next in line. In the first wave, Saudi Arabia and the UAE buried their hatchets with Qatar and Turkey; the UAE, Bahrain, and Morocco established diplomatic relations with Israel; and Israel and Turkey patched up their differences. To be sure, the dialing down of tensions without parties making major political concessions and the revival of economic ties meant countries were no longer showing their fangs. Instead, they put their differences on ice. Saudi Arabia and Iran appear to be travelling down the same road. The two countries agreed to no longer show their fangs, with the kingdom allegedly promising to stop funding media and groups opposed to the regime in Tehran. In return, Iran  reportedly pledged to help end the eight-year-long war in Yemen and prevent Houthi rebels from striking at targets in Saudi Arabia. The Iranian Foreign Ministry denied that Yemen had been discussed in Beijing. At the same time, the agreement appears to have potentially put a monkey wrench in geopolitical maneuvering by Israel and various Arab states, including Saudi Arabia. It also may spark new cleavages and exasperate existing ones. The agreement has dampened Israeli and US hopes of a united Saudi-Emirati-Israeli front against Iran that could risk a military confrontation. Moreover, Saudi Arabia will likely have been fortified in its resolve to establish formal relations with the Jewish state only when there is a solution to the Palestinian problem. In a sign of the times, Saudi Arabia this week prevented Israeli Foreign Minister Eli Cohen from attending a UN World Tourism Organisation conference in the kingdom by refusing to discuss security arrangements for the visit. Mr. Cohen’s attendance would have been a Cabinet-level Israeli official’s first public visit to the kingdom. While the timing may have been coincidental, the agreement put a reported Emirati decision to stop purchasing Israeli military equipment in a larger context. Israeli media reports said the decision had been prompted by Israel’s domestic political crisis, which raised doubts about Prime Minister Binyamin Netanyahu’s ability to control his far-right, ultra-nationalist, and ultra-religious coalition partners. The UAE has forged close economic and security ties with Israel since establishing diplomatic relations with the Jewish state, together with Bahrain and Morocco. Last month, Israel and the UAE unveiled a jointly developed unmanned surveillance, reconnaissance, and mine-detecting vessel. Ali Shamkani, the Iranian national security official who negotiated the deal with Saudi Arabia in Beijing, was in the UAE this week to meet President Mohammed bin Zayed. The Emirates has been out front in reaching out to Iran in recent years. The Saudi and Emirati moves prompted Efraim Halevy, the former head of Mossad, the Israeli intelligence agency and a long-time dove, to wonder aloud whether Israel, too, should reach out to Iran. “This should be the moment for Israel to analyze the situation and, inter alia, to determine whether this is an opportune moment to launch a very careful positive probe in the direction of Tehran,” Mr. Halevy opined in an article in Haaretz, Israel’s foremost liberal newspaper. In a twist of irony, the UAE halt to Israeli arms acquisitions makes a Saudi recognition of Israel any time soon even less likely. Even so, the Saudi-Iranian rapprochement appears to have energized an emerging cleavage between the kingdom and the UAE, onetime allies who increasingly are becoming economic and political competitors. The cleavage has prompted the UAE to suddenly speed up the gradual normalisation of relations with Qatar, two years after the lifting in 2021 of the Emirati-Saudi-led diplomatic and economic boycott of the Gulf state because of its alleged ties to Islamists, including the Muslim Brotherhood. Together with Bahrain, the UAE has, in contrast to Saudi Arabia, been slow in injecting warmth into the normalisation. That appears to have changed. In the last week, the UAE reportedly withdrew its bid to host the 2026 World Bank and International Monetary Fund meeting and said it would support Qatar as a potential host instead. The UAE also unblocked Qatari news websites it had blocked during the boycott. These include the Al Jazeera television network, the London-based  The New Arab newspaper, and the state-run Qatar News Agency. At the same time, Saudi Arabia, which like the UAE, has designated the Brotherhood as a terrorist organisation, appears to be cautiously reviving ties to figures allegedly associated with the Brotherhood. Saudi Arabia has long been more ambivalent towards the Brotherhood, a particular bete noir of the UAE. Prominent British Muslims, whom conservative members of the Muslim community and other conservative groups accuse of having links to Islamist organisations, including the Brotherhood, earlier this month were invited to a two-day conference in London hosted by Mohammed al-Issa, the secretary general of the Muslim World League. The conservative critics took exception to an allegedly prominent role given at the conference for British and European Muslim leaders to the Muslim Council of Britain, an organisation that has been blacklisted for much of the past 14 years by successive British governments. The government refuses to engage with the Council because its then deputy director-general called in 2009 for violence against Israel and condoned attacks on the Royal Navy if it tried to intercept arms for Hamas, the Islamist group controlling Gaza, from being smuggled into the Strip. A widely respected British academic described the blacklisting as “a political decision from the rightwing” that lacked evidence. He said the allegations of Islamist connections were “off the mark” and that “the current Secretary General is a wholly different generation than that of the past.” The intellectual further noted that the government had reengaged with the Council for a period before again blackballing the group. “The current secretary-general was basically a child when all of this happened but is still being clobbered over the head with it. It’s a double standard, no such rigour of past connections exists around other representative groups,” the academic said. Since coming to office, Saudi Crown Prince Mohammed bin Salman has converted the Muslim World League into the propagator of his autocratic form of Islam that is socially more liberal, politically repressive, and demands absolute obedience to the ruler. Once a Brotherhood stronghold, the League was a major global funder of erstwhile Saudi religious ultra-conservatism for more than 60 years since its founding in 1962. Notwithstanding Mr. Bin Salman’s repositioning, sources privy to the League’s inner workings suggest members of the Brotherhood remain influential and on the organisation’s payroll. “The old guard is still very much present,” one source said. “There is a bit of a schism in Saudi, and some of the younger anti-Brotherhood guard can’t believe how the Muslim World League is operating,” added another who follows the group closely. Saudi Arabia’s state-aligned Al Arabiya television network reported from Cairo days before the London conference that exiled offspring of prominent Egyptian Muslim Brothers were restructuring the group in Europe and the United States. An article on the network’s website critical of the Brotherhood warned the activists were recruiting among Arabs in the West. It asserted that they also sought to “infiltrate’ human rights groups. A third source with close ties to the kingdom argued that “the question is whether the Muslim World League only restructured to meet the new Muslim Brotherhood generation in the West. They seem to say one thing to some people and something different to others.”

Diplomacy
illustrative editorial Cartoon of Vladimir Putin President of Russia and Volodymyr Zelensky

Zelenskyy and Putin’s Distinct Understandings of National Identity Will Shape Support for Each Side in 2023

by Jessica Genauer

President Volodymyr Zelenskyy of Ukraine and President Vladimir Putin of Russia are two very different leaders. The way in which each defines a national identity shapes their leadership and sectors of support.      As we pass one year since Russia’s full-scale invasion of Ukraine, attention is fixed on how the war in Ukraine will unfold this year. What happens in 2023 will have implications not only for Ukraine and Russia but for the international order more broadly. One factor that has influenced the trajectory of war so far, and is likely to continue to do so in 2023, is the distinct leadership styles of President Zelenskyy and President Putin. Zelenskyy and Putin could not be more different as leaders. Putin leads a personalist autocracy, having risen through the ranks of the Russian security services to claim the presidency in 2000. Zelenskyy, a newcomer to both politics and government, was freely elected in competitive elections in 2019. Putin leads in the style of nationalist-populist leaders. He has slowly but consistently tightened his grip on power since his first electoral success in 2000, shaping Russia into an electoral autocracy. Putin is very much a man of his generation. At 70 years old, he grew up and established himself during the time of the Soviet Union and now surrounds himself with advisors of a similar or more advanced age. He is very far from media savvy, reportedly not even owning a smart phone. Zelenskyy, on the other hand, is a master of media communications, having operated as an actor and comedian before becoming president. Also a man of his generation at 45 years old, Zelenskyy forged a media career in the post-Soviet world of the emerging democracy of Ukraine. A self-made comedian and media personality, he is a part of Ukraine’s dynamic and entrepreneurial civil society.National identity: A glorious past or a bright future?A key factor that distinguishes Zelenskyy and Putin as leaders is the way in which they draw on national identity in their leadership. For Putin, Russia’s national identity is static and homogenous. There is one acceptable version of Russian identity; variations are considered deviant and a threat. For Zelenskyy, Ukraine’s national identity is dynamic and inclusive. The unifying elements of Putin’s vision of national identity are specific communal factors: shared language, history, religion, culture, or ethnicity. For Putin, such elements create a common bond and a common purpose among those who possess them. In 2021 Putin stated: “Russians, Ukrainians, and Belarusians are all descendants of Ancient Rus… bound together by one language…, economic ties, the rule of the princes of the Rurik dynasty, and – after the baptism of Rus – the Orthodox faith… we are one people.” For Putin, this idea of an exceptional nation simultaneously evokes Russian entitlement based on past glory, as well as Russia’s victimhood and humiliation at the hands of foreign enemies. Putin’s popularity “is tied to the idea of reanimating Russia’s past to reinstate the country’s greatness.” In 2022, Putin praised the conquests of the historical Russian ruler Peter the Great as returning to Russia what was “rightfully” hers. At the same time, for Putin, Russia’s greatness is under threat from the West. By contrast, Zelenskyy himself brings together the fractured components of Ukrainian identity in his own person. He is a Russian-speaking Ukrainian born in the east of the country who embodies a strong Ukrainian identity that is distinct from a Russian one. In Zelenskyy’s words: “[Ukrainians] are all different. They fight wearing the cross, the crescent, the star of David. Lads from Western Ukraine and from the south-east. Russian speakers from Kharkiv and Kryvyi Rih and Ukrainaian speakers from Ternopil and Ivano-Frankivsk… All different. All Ukrainians.” The unifying element of Zelenskyy’s national identity is a focus on the human striving for freedom and dignity. This factor also constitutes a universal element – uniting Ukrainians with others who share these values. In contrast to Putin, for Zelenskyy, history is not used to illustrate a glorious and longed-for past, but rather to show that the human drive for freedom can triumph over oppression to create a brighter future. As Zelenskyy stated to the UK parliament in February 2023: “[Both of] our people went through crises and growth, inflation, and periods of social losses and social gains. It was tough but we always found strength and stamina to move ahead and achieve results… We know freedom will win… We proved together that the world truly helps those who are brave in defending freedom. And thus, paves the way for a new history.”Does national identity galvanise support?Ultimately, military outcomes will be decisive in determining whether and how the war might conclude this year. However, Putin and Zelenskyy’s distinct imaginings of national identity contribute to galvanising support with audiences domestically and across the world. Domestically, Putin’s static and homogenous national identity appeals to those for whom it provides certainty and belonging to a specific idea of what it means to be Russian. For this segment of the Russian population, the ongoing war only serves to reinforce Russia’s entitlement to territorial control beyond its borders, as well as the looming spectre of humiliation at the hands of the West. This constituency will not lose faith in Putin’s war in 2023. However, if Russia fails militarily, these supporters may grow dissatisfied with the outcome, if not the war itself. Globally, Putin’s emphasis on the West as Russia’s central opponent will further isolate Russia from Western countries. However, Putin’s assertion of a homogenous identity does appeal to groups who conceptualise their own identity in a similar way within their own context. Additionally, Putin’s narrative of Russian victimhood by the West resonates in countries that are uncomfortable with a US-led global order or have an enduring historical memory of Western colonialism. Nevertheless, given Putin’s emphasis on Russian particularism, this is more likely to create tacit acceptance of Russia’s actions than stir costly action in support of Russia’s war. Domestically, Zelenskyy’s dynamic and inclusive Ukrainian identity, with an emphasis on the striving for freedom, appeals to broad swaths of the Ukrainian population – and aligns with the sense of purpose felt by those fighting on the frontlines. This is unlikely to change in 2023. As Russia doubles down on asserting its self-proclaimed right to control Ukraine, the idea of freedom and agency become ever more galvanising. Beyond Ukraine, Zelenskyy’s emphasis on a common human striving for freedom as a basis for identity invites others who align with this notion to rally alongside Ukraine. This will continue to boost support for Ukraine in established democracies – but also beyond, in places where populations or leaders resonate with a smaller state fighting against a stronger one to determine its own political and social reality. In the coming months we are likely to see military escalation between Ukraine and Russia. A less-visible factor that will contribute to the trajectory of this conflict is whether Putin and Zelenskyy’s distinct articulations of national identity will maintain traction with their respective constituencies. Will Putin’s homogenous and static national identity, that harks back to a time of historical glory, continue to appeal – or will it fracture if Russian glory on the battlefield falls short? Will Zelenskyy continue to be able to unify the diverse aspects of Ukrainian society into a coherent whole – and will this unity hold past his leadership? The answer to these questions will shape the societal impacts of this war – in both Ukraine and Russia – long after the fighting has ceased.

Defense & Security
Chief of Naval Staff Admiral R Hari Kumar with Admiral John C Aquilino, commander of the US Indo-Pacific Command

India-Australia Defence Cooperation and Collaboration in the Indo-Pacific

by Dr Shubhamitra Das

The significant rise in defence and security ties between India and Australia has led to an ease in dealing with their responsibilities in multilateral regional forums. The institutionalisation of cooperation has also become more strategic.  The geostrategic positioning of India and Australia on the Indian and Pacific Oceans has helped with the convergence of interests, enabling relations to expand and steadily deepen. Unlike in earlier times when New Delhi and Canberra were searching for equal grounds for cooperation, the concept of the Indo-Pacific has made this easier, enhancing the conviction that greater engagement was an inevitability of their geographic circumstances. It made them partners to jointly take responsibility for maintaining a free, open, inclusive and peaceful Indo-Pacific, which demands a noticeable tilt towards defence and security cooperation. India has long aspired to be the key protagonist in the Indian Ocean; Australia has wanted to more naturally belong to the region. Moreover, Australia’s foreign policy over the years has emphasised playing a constructive role in the region with enhanced regional engagement. Though China looms large in each nation’s strategic calculation, the issues that unite both countries go beyond China and include the multifaceted challenges of maritime security, piracy, armed robbery, smuggling of small arms, protracted internal conflict, illegal, unprotected, and unregulated (IUU) fishing, cyber security, climate change, and ocean-born trade security. The India-Australia Comprehensive Strategic Partnership (2020), upgraded from the bilateral strategic partnership of 2009, is an effort to broaden the scope of their defence and security relationship by finding new initiatives, methods, and mechanisms to sustain mutual security interests. These have been bolstered to-date through cooperation in the AUSINDEX, Kakadu, Pitch Black, Milan, and Malabar military exercises, and with further collaboration in the Indian Ocean Naval Symposium, 2+2 ministerial dialogues, Joint Working Group for research on enhancing defence industry, mutual logistics, and intelligence support and sharing agreements. These have included, for example, the Mutual Logistics Support Agreement and officer exchange programs. In addition, Australia’s invitation to India to join Exercise Talisman Sabre, the most important military exercise between Australia and the United States, will set another milestone for cooperation. Both countries further engage in humanitarian matters, energy security, and marine and space research. Their commitment to Humanitarian Assistance and Disaster Relief in Afghanistan and within the Quadrilateral Security Dialogue in vaccine distribution, for example, highly has been successful. In energy security, both have agreed to focus on UN Sustainable Development Goals and work on new and renewable technology in solar and wind energy. One potential area for cooperation – being maritime powers – will be wave energy for sustainable and resilient energy sources. The Indo-Pacific Oceans Initiative, in which India and Australia are deeply involved, will work on a whole array of issues involving marine ecology; security of maritime borders; pollutants, like marine plastics; IUU fishing; and marine research for conservation purposes. In addition, India and Australia have updated the Memorandum of Understanding in space programs, technology advancement, and joint space programs. Australia will also be supporting India in tracking the Gaganyaan mission – India’s first space-manned mission – at Cocos Keeling Island. Currently, India and Australia are at a crucial juncture. The election of the new government in Australia in 2022 is likely to aid the strong relationship between the two nations. But the turn for India to head the G20 is also expected to facilitate greater cooperation, particularly in economic and trade liberalisation and potential reform of economic regimes such as the World Trade Organization. In April 2022, India and Australia signed their first Free Trade Agreement (FTA), the India-Australia Economic Cooperation and Trade Agreement. The fast pace at which their trade took off – from US$13.6 billion in 2007 to US$24.3 billion in 2020 – shows the many benefits of diversifying their trade. In addition, the elimination of tariffs for nearly 90 percent of Indian exports will further boost the Indian economy. The question is whether India will continue to engage its economy regionally in multilateral economic bodies. While it declined to join the Regional Comprehensive Economic Partnership, India has begun a process of seeking bilateral FTAs with most member countries. What Australia and India can achieve bilaterally to make the comprehensive strategic partnership effective is to engage in dialogue with regional littoral countries on defence and security. This engagement will help with confidence-building and familiarity among partners. However, the advantage of this type of institutionalisation of the Indo-Pacific depends upon the degree to which states seek interaction. The littoral states, in this sense, should be included within the Indo-Pacific complex as much as possible. The emerging paradigm of inclusivity and pluralism within a free, open, and peaceful Indo-Pacific will bring together the littoral and less powerful countries of the region and empower them to join and engage with others; that is, those who otherwise do not have a voice or clout in international political platforms. Along these lines, the Indian Security and Growth for all (SAGAR) initiative seeks to enhance cooperation through information sharing, capacity building, coastline surveillance, and infrastructure building. The India-Australia-Indonesia trilateral dialogue is another attempt to enhance cooperation in the same direction. Although it was presumed in India that the Labor government in Australia might be more inclined toward China, it was understood that this did not mean a policy and behavioral turnaround. Instead, Canberra’s focus will include a mix of continuity and change. Australia has come a long way in its institutionalisation of the Indo-Pacific, and its ability to diversify its interests by engaging with the littoral countries deserves special attention. To be sure, China’s increased aggression in the South China Sea and it’s diplomatic handling of Australia’s COVID-19 inquiry have been influential here. But the process has also been captive to such institutionalisation as mentioned above. Australia’s involvement with Quad and its participation in the military exercises with India and other Quad countries in the Indian Ocean will continue to strain its relations with China. In addition, the Russia-Ukraine war will likely continue to drive foreign policy activism and cooperation among like-minded countries, of which Australia figures prominently. The takeaway here is that regular interaction between the two countries on various defence-related activities has worked to enhance mutual respect and understanding of shared values. This interaction has broader implications. Both nations can support each other in addressing issues of mutual concern internationally. Their engagement in trilateral groupings like the India-Australia-Indonesia and India-Japan-Australia dialogues, as well as joint engagement in the Supply Chains Resilience Initiative and the Quad with the United States and Japan, represent successful examples of bilateral and multilateral trust and relationship-building. One significant outcome of these growing partnerships will be to revive and strengthen the Indian Ocean Rim Association in awareness generation, capacity-building, and consensus-building. Lastly, all the above initiatives are government efforts to enhance partnerships. The involvement and regular interaction of academia, think tanks, civil society, and the media have been equally important and will continue to play an important role in boosting these relationships.