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

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

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

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

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

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

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

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

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

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

by Flavia Loss de Araujo

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

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

Statement by the President of the Russian Federation

by Vladimir Putin

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

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

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

by Mohamed Lamine, KABA

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

Defense & Security
Military Think Tank, AI technology in the army. Warfare analytic operator checking coordination of the military team. Military commander with a digital device with vr glasses operating troops.

Artificial Intelligence and International Military Conflicts – the case of war in Ukraine.

by Krzysztof Śliwiński

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском AbstractThis paper draws on rapidly emerging literature on the role of artificial intelligence in military conflicts and warfare as well as its implications for international security. It departs from an assumption that the emerging technology will have a deterministic and potentially transformative influence on military power.This project intends to ascertain the role of autonomous weapons in modern military conflicts. In doing so, it further adds to the recent debates, which take place among scholars, military leaders as well as policy makers around the world regarding the potential for AI to be the source of future instability and a great power rivalry.It is suggested that there is an urgent need to regulate the development, proliferation and usage of autonomous weapons and weapon systems driven by AI before it is too late – namely the AI achieves cognizant skills. 1.DefinitionsEncyclopedia Britannica proposes that artificial intelligence (AI) is the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing systems endowed with the intellectual processes characteristic of humans, such as the ability to reason, discover meaning, generalize, or learn from past experience.1Interestingly enough AI defines itself as referring to the simulation of human intelligence processes by machines, particularly computer systems. These processes include learning, reasoning, problem-solving, perception, and language understanding. AI enables machines to perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and natural language processing. AI technologies encompass machine learning, neural networks, deep learning, and other advanced algorithms that allow machines to mimic cognitive functions.2In the context of the military, artificial intelligence refers to the utilization of AI technologies and systems to enhance military capabilities, operations, and decision-making processes. Military applications of AI include autonomous weapons systems, drones, cyber defense mechanisms, predictive analytics for strategic planning, and battlefield surveillance. AI can be used to analyze large volumes of data quickly, identify patterns, and make real-time decisions to support military objectives. While AI offers significant advantages in terms of efficiency and precision, there are ethical considerations and concerns regarding the potential risks of autonomous AI systems in warfare.32. AI in the War in Ukraine and Israel vs. Hamas - UkraineThe ongoing war in Ukraine is arguably the first “full scale drone War”, which also employs loitering munitions, autonomous ships, undersea drones for mine hunting and uncrewed ground vehicles being deployed.AI is heavily used in systems that integrate target and object recognition and geospatial intelligence. Analysis of satellite images, geolocating and analysing open-source data such as social media photos in geopolitically sensitive locations. On top of that neural networks are used, for example, to combine ground-level photos, drone video footage and satellite imagery.AI-enhanced facial recognition software has also been used on a substantial scale. AI is playing an important role in electronic warfare and encryption as well as cyber warfare, especially in support of defensive capabilities. Finally, AI has also been employed to spread of misinformation - the use of deep fakes as part of information warfare. The emergence of this new technology has created new actors, private companies further fueling the so-called privatisation of security: Palantir Technologies, Planet Labs, BlackSky Technology and Maxar Technologies are some examples of such.The AI driven systems make a fundamental change in the field so much so that the combined use of aerial and sea drones in the October (2022) attack on Russia’s Black Sea flagship vessel, the Admiral Makarov, was perceived by some analysts as perhaps a new type of warfare.4What makes this conflict unique is the unprecedented willingness of foreign geospatial intelligence companies to assist Ukraine by using AI-enhanced systems to convert satellite imagery into intelligence, surveillance, and reconnaissance advantages. U.S. companies play a leading role in this.These examples illustrate that the current conflict in Ukraine is a testing ground for AItechnology.- Israel vs. HamasIsraeli military says it’s using artificial intelligence to select many of these targets in real-time. The military claims that the AI system, named “the Gospel,” has helped it to rapidly identify enemy combatants and equipment, while reducing civilian casualties.5 Allegedly, multiple sources familiar with the IDF’s (Israel Defensive Forces) targeting processes confirmed the existence of the Gospel, saying it had been used to produce automated recommendations for attacking targets, such as the private homes of individuals suspected of being Hamas or Islamic Jihad operatives. In recent years, the target division has helped the IDF build a database of what sources said was between 30,000 and 40,000 suspected militants. Systems such as the Gospel, they said, had played a critical role in building lists of individuals authorised to be assassinated.6 According to IDF’s own website the use of these tools does not change the obligatory principles and rules in the Intelligence Directorate's SOP and related instructions. They do not generate orders for attacks. They do not generate new intelligence that could not otherwise be accessed by an intelligence analyst. They do not constitute the sole basis for determining targets eligible to attack – regardless of how accurate they are. On the contrary, these tools improve the quality of the intelligence process outcome. They facilitate the accessibility of the analyst to relevant information, and help the analyst be more informed of the most up-to-date and relevant intelligence sources, making the analyses more precise. They reduce the risk of errors that may occur in intelligence analyses.7 3. AI and War As far as the role of AI driven technologies and software is concerned it is probably useful to think about them as the third revolution in warfare. The first one being mostly about gunpowder and the second one being about nuclear weapons.Additionally, one should also bear in mind that AI is closely related to the so-called cyber domain, which in the literature is often referred to as the fifth domain of warfare. (The first one being land, the second being sea, the third being air and the forth being space, as in cosmic space.)While AI and associated technologies hold potential for reducing harms of war if developed and applied responsibly, there exist significant risks of technological escalation, loss of human control and value alignment that demand proactive international cooperation and oversight to guide research and use of these systems. Nonetheless all major powers, including US and China are working nonstop to develop relevant AI driven military systems hoping to achieve potential advantages against each other. These technologies include: machine learning/deep learning applications with military uses like drone/vehicle autonomy, cyber/info warfare and predictive analytics of populations/scenarios.At the same time AI poses novel challenges and escalatory risks that differ from past arms races and call for new frameworks of governance and norms. Autonomous weapons threaten to undermine international humanitarian laws by removing human accountability from targeting - problems of biases, uncertain risks of loss of meaningful human control. Other related risks include preemptive/predictive AI for mass surveillance, social control and information warfare which is likely to erode principles of sovereignty, privacy and consent.It does not take the stretch of imagination to expect a certain level of ‘techno-tyranny’ in the future. Job losses to robotic systems are probably a given and as such risk further politico-economic instability. This consequently calls for just transitions and perhaps even a universal basic income.The Opaque ‘black box’ nature of neural networks hinders verification and accountability, fuelling distrust. Furthermore, there is a potential for accidental or unintentional escalation. Without safeguards and transparency, AI may ultimately serve military-industrial complexes and geopolitical ambitions rather than global security needs.The fast-emerging technology needs to be urgently regulated. International initiatives for AI governance (norms or regimes) will probably have to be introduced by the UN and its technical bodies. These will have to include outcome accountability’ through system design, impact assessments, red lines on certain applications and universal access to benefits.As warns Heidy Khlaaf, Engineering Director of AI Assurance at Trail of Bits, a technologysecurity firm warns “AI algorithms are notoriously flawed with high error rates observed across applications that require precision, accuracy, and safety,”8Reportedly, in a simulation of a military exercise carried out by US Military Force, an AI drone 'killed operator' after going rogue. The robot worked out its controller was stopping it 'completing objectives on test.9In parallel, Chinese scientists create and cage world’s first AI commander in a PLA laboratory. “The highest-level commander is the sole core decision-making entity for the overall operation, with ultimate decision-making responsibilities and authority,”104. AI and International SecurityIn terms of national security-level applications of an AI, one can clearly identify numerous milieu:- MilitaryAI is transforming military operations by enabling autonomous systems, such as drones and robots, to perform tasks that were previously carried out by humans. These systems can be used for surveillance, reconnaissance, target identification, and even combat. AI-powered algorithms can analyze vast amounts of data to provide real-time intelligence, enhance situational awareness, and support decision-making processes on the battlefield- CybersecurityAI is crucial in combating cyber threats, as it can detect and respond to attacks more effectively than traditional security measures. Machine learning algorithms can analyze network traffic patterns, identify anomalies, and detect potential breaches. AI can also help develop predictive models to anticipate future cyber threats and vulnerabilities, allowing organizations to strengthen their defenses proactively.- Intelligence and SurveillanceAI enables intelligence agencies to process and analyze massive volumes of data, including social media feeds, satellite imagery, and communication intercepts. Natural Language Processing (NLP) algorithms can extract valuable insights from unstructured data sources, aiding in counterterrorism efforts, identifying potential threats, and monitoring geopolitical developments.- Decision Support SystemsAI can assist policymakers and military leaders in making informed decisions by providing predictive analysis and scenario modeling. Machine learning algorithms can analyze historical data, identify patterns, and generate forecasts regarding potential  conflicts, resource allocation, or geopolitical developments. This helps in strategic planning and resource optimization.- Autonomous Weapons SystemsThe development of autonomous weapons systems raises ethical concerns and challenges in international security. AI-powered weapons can operate without direct human control, leading to debates about accountability, proportionality, and adherence to international humanitarian law. International efforts are underway to establish regulations and norms governing the use of such systems.- Diplomacy and Conflict ResolutionAI can facilitate diplomatic negotiations and conflict resolution by providing data-driven insights and analysis. Natural Language Processing algorithms can assist in analyzing diplomatic texts, identifying common ground, and suggesting potential compromises. AI can also simulate scenarios and predict the outcomes of different negotiation strategies, aiding diplomats in finding mutually beneficial solutions.- Threat Detection and PreventionAI can enhance early warning systems for various threats, including terrorism, nuclear proliferation, and pandemics. Machine learning algorithms can analyze patterns in data to identify potential risks and predict emerging threats. This enables governments and international organizations to take proactive measures to prevent or mitigate these risks.5. ConclusionIn the world of microelectronics, experts often talk about Moore's law: the principle that the number of transistors on chips doubles every two years, resulting in exponentially more capable devices. The law helps explain the rapid rise of so many technological innovations, including smartphones and search engines.Within national security, AI progress has created another kind of Moore's law. Whichever military first masters organizing, incorporating, and institutionalizing the use of data and AI into its operations in the coming years will reap exponential advances, giving it remarkable advantages over its foes. The first adopter of AI at scale is likely to have a faster decision cycle and better information on which to base decisions. Its networks are likely to be more resilient when under attack, preserving its ability to maintain situational awareness, defend its forces, engage targets effectively, and protect the integrity of its command, control, and communications. It will also be able to control swarms of unmanned systems in the air, on the water, and under the sea to confuse and overwhelm an adversary.11References*This paper was presented at International Studies Association 65th Annual Convention. San Francisco, California April 3rd – 6th 20241 Copeland, B. (2024, March 15). Artificial intelligence. Encyclopedia Britannica. https://www.britannica.com/technology/artificial-intelligence2 How do you define artificial intelligence? ChatGPT, GPT-4 Turbo, OpenAI, 2024, October 25. https://genai.hkbu.edu.hk/3 How do you define artificial intelligence in the context of the military? ChatGPT, GPT-4 Turbo, OpenAI, 2024, October 25. https://genai.hkbu.edu.hk/4 Fontes, R. and Kamminga, J. (2023, March 24). Ukraine A Living Lab for AI Warefare. National Defence. NDIA’s Bussiness Technology Magazine. https://www.nationaldefensemagazine.org/articles/2023/3/24/ukraine-a-living-lab-for-ai-warfare5 Brumfiel, G. (2023, December 14). Israel is using an AI system to find targets in Gaza. Experts say it’s just the start. Wisconsin Public Radio. https://www.wpr.org/news/israel-using-ai-system-find-targets-gaza-experts-say-its-just-start6 ‘The Gospel’: how Israel uses AI to select bombing targets in Gaza. (2023, December 1). The Guardian. https://www.theguardian.com/world/2023/dec/01/the-gospel-how-israel-uses-ai-to-select-bombing-targets 7 The IDF's Use of Data Technologies in Intelligence Processing. (2024, June 18). IDF Press Releases: Israel at War. https://www.idf.il/en/mini-sites/idf-press-releases-israel-at-war/june-24-pr/the-idf-s-use-of-data-technologies-in-intelligence-processing/8 Brumfiel, G. (2023, December 14). Israel is using an AI system to find targets in Gaza. Experts say it’s just the start. Wisconsin Public Radio. https://www.wpr.org/news/israel-using-ai-system-find-targets-gaza-experts-say-its-just-start9 Bowman, V. (2023, June 2). AI drone 'killed operator' after going rogue on simulation. The Telegraph. https://www.telegraph.co.uk/world-news/2023/06/02/us-air-force-ai-military-drone-goes-rogue-simulation/10 Chen, S. (2024, June 16). Chinese scientists create and cage world’s first AI commander in a PLA laboratory. South China Morning Post. https://www.scmp.com/news/china/science/article/3266444/chinese-scientists-create-and-cage-worlds-first-ai-commander-pla-laboratory?module=top_story&pgtype=homepage 11 Flournoy, Michèle A. 2023. “AI Is Already at War.” Foreign Affairs 102 (6): 56–69. https://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=bth&AN=173135132&site=ehost-live.

Diplomacy
PARIS, FRANCE - JULY 13, 2017 : The President of United States of America Donald Trump with the french President Emmanuel Macron in press conference at the Elysee Palace after an extended interview.

France and the US election

by Anja Czymmeck

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском "Strategic autonomy" remains France's goalThe outcome of the US election has far-reaching political and economic implications for France, forcing the country, which is itself experiencing a serious political crisis, to define its own role in the world and in Europe. This was already clear in the run-up to the elections and was also commented on in initial reactions to the outcome. In the areas of trade and climate protection, but especially in the areas of security and defense, the election of Donald Trump as President of the United States is an incentive for France to strengthen its own and European independence in order to protect French and European interests. The call for European partners to develop a foreign and security policy that strengthens Europe and reduces dependence on America without calling transatlantic cooperation into question remains the declared goal. Cooperation with Germany in particular is of crucial importance here.Security and defense policy: Europe is keyFrench President Emmanuel Macron has already worked with President Trump from 2017 to 2021. For him, another encounter with a President Donald Trump will therefore be nothing new. In France, at any rate, it seemed that internal preparations had also been made for the possibility of a second Trump administration. French representatives, in particular President Macron, had campaigned for strengthening European defense and making it more independent of the USA, especially when it came to NATO and defense. At national level, France has set up a special task force within the Ministry of Foreign and European Affairs to deal with the various scenarios that a second Trump administration could bring. This task force is headed by Tristan Aureau, former Head of Cabinet of the Secretary of State for Europe and current Minister for Foreign and European Affairs Jean-Noël Barrot. With the actual election of Trump, however, there are still major challenges ahead for France and Europe that can only be tackled with a united European stance.The war in UkraineThere is also great concern in France that President Trump could freeze the war in Ukraine without involving the European partners by negotiating a ceasefire. A Trump-style freeze would mean abandoning the Ukrainian partner and that Ukraine would have to cede the territories conquered by Russia. This contradicts the French understanding that the war in Ukraine is a European issue that must first and foremost be resolved by the Europeans, certainly in consultation with the USA.Middle East conflictWhile Donald Trump has repeatedly reiterated his unreserved support for Israel, he has just as often made it clear that he wants to end the war as quickly as possible. The fact is that Trump is popular with Netanyahu's government, partly due to his actions during his first term in office (moving the US embassy to Jerusalem or recognizing Israel's sovereignty over the Golan Heights). What exactly can be expected of him now is not known. In any case, France has repeatedly called for a ceasefire in Gaza and Lebanon in recent weeks and emphasised this once again on the day of the US election.[i] Unlike the Trump-Netanyahu relationship, the relationship between Netanyahu and Macron has also suffered in recent weeks from the statements on the founding of the state of Israel, which have also caused irritation in France.[ii] It now remains to be seen to what extent the relationship between France and the US will develop on this issue as wellNATOAs far as NATO and the American security guarantees for Europe are concerned, France has traditionally emphasized the importance of NATO and advocated close cooperation with the USA. At the same time, however, France has been advocating for years - essentially what Trump is also calling for - that Europe should be the key to its own security and defense. As the EU's only remaining nuclear power with a permanent seat on the United Nations Security Council, France aspires to influence world events, but also knows that this claim to leadership can only realistically be implemented with European partners in European security and defense policy.[iii] Macron made this clear in his second Europe speech at the Sorbonne in spring 2024, among other things, when he explained that they were aware that the US was focusing on itself and on China, and that Europe was not a geopolitical priority - regardless of which administration was in place in Washington. [iv] Even under an American Democratic government, Europe could no longer have assumed that there would be no partial US troop withdrawal. France's former ambassador to NATO, Muriel Domenach, also made it clear in an interview with the Grand Continent shortly before the US elections that it was not serious "[...] for Europe, with its wealth, heritage and responsibility, to resign itself to making its security entirely dependent on American decisions".[v] Trade policy: the fear of new import tariffsIn terms of trade policy, France is concerned about the effects of very likely protectionism under a second Trump administration, which could affect the French agricultural and aviation sectors in particular. Trump's announcements of import tariffs of 20% on all foreign products and also the prospect that Trump could impose import tariffs of 25% on wines and spirits from France, as he did in 2020, are causing great unease in France.However, a closer look reveals that trade policy under Joe Biden was also rather protectionist. One example of this from a French perspective is the Inflation Reduction Act, which was fundamentally oriented against China, but also had enormous consequences for Europe and France. During his state visit to Washington in December 2022, Emmanuel Macron had already taken a critical view of this plan and condemned it as "super aggressive".[vi]French reactions after the electionWhile Emmanuel Macron and the people involved in the government were quick to congratulate Trump and call for cooperation with the new American president, the right-wing and left-wing camps had different reactions.President and government: respect, willingness and cooperationThese words best summarize the reactions of politicians in government positions. President Emmanuel Macron congratulated Donald Trump via X on his election as US President even before the official announcement of the election results. Macron made it clear that he was prepared to work together, respecting their respective convictions and working together for peace and prosperity.[vii]Benjamin Haddad, Secretary of State for Europe, reacted in the same way, saying that we must find common ground and work together, while the answer to the challenges that the future brings lies "with ourselves". Thus, "Europeans [...] cannot accept that their security is decided without them, that tomorrow a capitulation is imposed on the Ukrainians, without the Ukrainians, without the Europeans."[viii]The reactions from the right: safe distance, warm congratulationsPrior to the elections, the French right had moderated its statements on Trump and muzzled its leaders in particular - with the exception of party leader Jordan Bardella - from commenting on Trump for party political reasons. The danger was considered too great that the political model proclaimed and exemplified by Donald Trump would stand in contrast to the institutionalization and de-demonization of the Rassemblement National. The deputy leader of the RN parliamentary group in the National Assembly, Jean-Philippe Tanguy, declared that Donald Trump was too negative for the party and embodied "excited populism". Nevertheless, Bardella had already indicated before the elections that he felt close to the ideas of President-elect Trump by expressing his admiration for American patriotism.[ix] After hesitant statements, however, it then became clear that the Rassemblement National supports Donald Trump. Bardella explained that France now had the task of taking its fate into its own hands and that a European defense had to be built.[x] Marine Le Pen, soberly agreed with this tone and called for this new political era to contribute to an improvement in bilateral relations and lead to constructive cooperation at international level.[xi]Eric Ciotti, who had only split from Les Républicains in the parliamentary elections, moved closer to the Rassemblement National and founded the new right-wing party A Droite, was very euphoric and described Trump's victory as a "wonderful victory of the American people against a system. A hope for peace, a defeat for the wokists. A way forward for the right in France and Europe. All the way to victory."[xii]Perplexity and cataclysm in the left-wing campThe goodwill and the euphoria prevailing in some quarters on the right contrasts with the reactions on the left in France. Social Democrat Raphael Glucksmann, Member of the European Parliament, described Donald Trump's election as a "global catastrophe" and a "nightmare for democracy, human rights and Europe".[xiii] The leader of the French Greens, part of the left-wing New Popular Front in the National Assembly, Marine Tondelier, expressed courage to the American citizens in the face of the "spreading hell".[xiv] Jean-Luc Mélénchon, founder of the left-wing populist party La France Insoumise, said that Trump's election was a consequence of a non-existent left-wing alternative in the US elections.[xv]Appeal to European and Franco-German cooperationHowever, the initial reactions were followed by Emmanuel Macron's direct appeal to Germany and Europe to come together and tackle the challenges of the future."I have just had an exchange with Chancellor @OlafScholz. We will work for a more united, stronger and sovereign Europe in this new context. By working together with the United States of America and defending our interests and values."[xvi]For Macron, a return to Franco-German cooperation is essential for a united, sovereign and independent Europe. This is also in line with the line taken by Friedrich Merz, who on election day in the USA, in a widely read guest article in the French daily newspaper Le Monde, lamented the European Union's constant hesitation in helping Ukraine and accused it of not sufficiently distancing itself from the Americans.[xvii] As early as November 7, the European summit hosted by Viktor Orbán in Hungary - a fervent supporter of Trump - will be about demonstrating this European unity.But Germany and France in particular must now show, regardless of the fact that both countries are in crisis mode, that they are once again moving closer together in this sense.References[i] https://www.leparisien.fr/international/israel/guerre-au-proche-orient-jean-noel-barrot-sera-en-israel-et-dans-les-territoires-palestiniens-ce-mercredi-05-11-2024-BAYPPARFV5DPBJ2HN5GLA7SXHE.php (Aufruf: 6. November 2024).[ii]https://www.lemonde.fr/international/article/2024/10/16/les-tensions-entre-emmanuel-macron-et-benyamin-netanyahou-montent-d-un-cran-apres-les-propos-du-president-francais-sur-la-creation-d-israel-par-l-onu_6353358_3210.html (Aufruf 5. November 2024).[iii]https://dgap.org/system/files/article_pdfs/22-DGAP-MEMO-US2024_Jacob_DE.pdf (Aufruf: 5. November 2024).[iv]https://www.elysee.fr/emmanuel-macron/2024/04/24/discours-sur-leurope (Aufruf: 5. November 2024).[v]https://legrandcontinent.eu/fr/2024/10/30/vu-de-washington-le-maintien-de-100-000-personnels-en-europe-ne-va-pas-de-soi-une-conversation-avec-muriel-domenach-ancienne-ambassadrice-a-lotan/ (Aufruf: 5. November 2024).[vi]https://www.lemonde.fr/en/international/article/2022/12/01/emmanuel-macron-blasts-joe-biden-subsidies-in-state-visit_6006235_4.html (Aufruf: 4. November 2024).[vii]https://x.com/EmmanuelMacron/status/1854073283420754221 (Aufruf: 6. November 2024).[viii]https://www.europe1.fr/international/presidentielle-americaine-leurope-doit-prendre-son-destin-en-main-reagit-la-porte-parole-du-gouvernement-francais-4277243 (Aufruf: 6. November 2024).[ix]https://www.lemonde.fr/international/article/2024/11/02/donald-trump-l-encombrant-modele-du-rassemblement-national_6372584_3210.html (Aufruf: 6. November 2024).[x]https://x.com/J_Bardella/status/1854084071858876485 (Aufruf: 6. November 2024).[xi]https://x.com/MLP_officiel/status/1854083504700600705 (Aufruf: 6. November 2024).[xii]https://x.com/eciotti/status/1854060752946245644 (Aufruf: 6. November 2024).[xiii]https://www.instagram.com/p/DCBWcJBsUgp/?img_index=1 (Aufruf: 6. November 2024).[xiv]https://www.europe1.fr/international/presidentielle-americaine-leurope-doit-prendre-son-destin-en-main-reagit-la-porte-parole-du-gouvernement-francais-4277243 (Aufruf: 6. November 2024).[xv]https://www.leparisien.fr/international/etats-unis/enfer-qui-se-profile-espoir-pour-la-paix-de-lfi-au-rn-les-reactions-des-politiques-francais-a-lelection-de-trump-06-11-2024-FP4V4HGZUZGOFGAQEOVGMST5F4.php (Aufruf: 6. November 2024).[xvi]Emmanuel Macron, https://x.com/EmmanuelMacron/status/1854075136468521077 (Aufruf: 6. November 2024).[xvii]https://www.lemonde.fr/idees/article/2024/11/05/friedrich-merz-president-de-la-cdu-la-politique-etrangere-et-de-securite-europeenne-est-dans-un-etat-de-desolation_6377309_3232.html (Aufruf: 6. November 2024).

Energy & Economics
Middle East Conflict. Conceptual photo

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

by Ahmet Kaya

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

Diplomacy
Berlin, Germany, November 15, 2023. Federal Chancellor Olaf Scholz, Federal Minister of Economics Dr. Robert Habeck and Finance Minister Christian Lindner during a press conference in the Chancellery.

Germany set for snap election following collapse of Olaf Scholz’s coalition

by Ed Turner

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Germany is expected to hold a snap election in February after Chancellor Olaf Scholz reportedly agreed a deal with opposition politicians for an early vote. The recent collapse of Scholz’s coalition made a vote of confidence in the government highly likely, but Scholz had been pushing for it to be held in the new year. Reports now suggest it will be held before Christmas and, as Scholz is expected to lose, it would almost certainly lead to parliament being dissolved within 21 days and an election held within a further 60 days. Friedrich Merz, the leader of the Christian democratic (CDU/CSU) opposition, has led the charge for an earlier vote. The CDU/CSU is comfortably ahead in the polls and has promised to enable key legislation to pass in exchange for an immediate vote. The three-party coalition between Scholz’s social democratic SPD, the Greens and the market-liberal FDP has had an unhappy time. Events served to accentuate policy differences: in particular, the war in Ukraine and resulting energy crisis heightened tensions between the fiscally hawkish FDP pressing for balanced budgets and the pro-investment SPD and Greens. Disagreements were also evident over climate, transport and energy policy. The FDP is the only one of the three parties that is pro-nuclear. Matters got worse after a federal constitutional court verdict set major restrictions on government borrowing by imposing a rigid interpretation of constitutional debt restrictions. A downward revision of tax revenue forecasts last month then made things instantly worse. These challenges have led to an unhealthy cycle of political bickering. Germany has regular state elections, and for the most part the three coalition partners have done badly in these since coming to power. Most recently, three eastern states delivered record election results for the far right Alternative for Germany (AfD). After each such defeat, party leaders have felt compelled to raise their own profile by making policy demands in line with their priorities. But in doing so, they have added to the impression of a chaotic, disunited government. A recent Deutschlandtrend poll showed just 14% of citizens satisfied with the government against 85% who were dissatisfied.  Things came to a head when FDP leader and finance minister Christian Lindner tabled a list of demands of his coalition partners – with major tax and spending cuts – that he knew were certain to be rejected. Coalition leaders met on Wednesday but there was no agreement, leading Scholz to dismiss Lindner, effectively bringing the coalition to a close. There was a bitter exchange of views, with Scholz calling Lindner “petty” and “irresponsible”. The timing of the FDP’s exit, just after Donald Trump’s US election victory, when stability would have been preferred, came in for particular criticism. For the interim period between now and the anticipated election, Scholz has reshuffled his cabinet, appointing a new finance minister, Jörg Kukies, from his own party. One of the FDP’s ministers, Volker Wissing, refused to follow Lindner’s lead and has remained in the cabinet. He will continue as transport minister and will add justice to his brief. The Green agriculture minister will also look after education. In these circumstances, it is possible that the parliament cannot agree a budget for the 2025 calendar year, and would roll over existing spending plans, which is not unusual (indeed, it happened at the start of this year after the constitutional court verdict meant the 2024 budget had to be rewritten), but normally for a shorter time. It would be possible to make available additional funds for Ukraine and it is unlikely the other parties in parliament would block these – although the CDU/CSU has indicated it wouldn’t support the SPD’s proposal to suspend constitutional debt restrictions to make extra defence funding available. How the election could unfold A snap poll has indicated strong support for early elections. As things stand, the most likely outcome is a CDU/CSU led government under CDU leader Friedrich Merz with the SPD as junior coalition partner. The AfD is currently second in the polls but all parties have ruled out any sort of coalition deal with them. Back in 2021, it seemed possible there would be a CDU/CSU-Green coalition (as has been quite widely practised at a state level). But, under Merz, the CDU has shifted rightwards and engaged in such a lot of green-bashing that such a move seems unlikely, even if it commanded a majority (which, according to current polls it will not). The FDP is in a battle for survival, with current polls not even giving it the 5% of votes needed to qualify for representation in parliament. The left populist Sahra Wagenknecht Alliance (BSW) looks set to enter the parliament for the first time. It is remarkable that the EU’s largest member state chose to collapse its government just hours after the continent was given the huge challenge of a Trump presidency. But constitutional mechanisms exist to keep German politics ticking over. The most likely outcome of the elections – a CDU/CSU coalition with the SPD – is a tried and tested model that will offer at least some stability.

Diplomacy
market economy brics background meeting cooperation association russia summit international finance brazil

Southeast Asian countries enter Mr. Putin’s BRICSyard

by Zachary Abuza

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Russian President Vladimir Putin last week hosted the BRICS summit, where Vietnam, Indonesia, Thailand, and Malaysia became official partner members – the first step toward full membership.  Putin had two main goals at the summit, where he tried to build up more international support for Russia against the backdrop of its invasion of Ukraine. First, he wanted to convey that Moscow is far from isolated on the world stage despite being targeted by United States-led sanctions, and that some of the largest economies don’t see the war in Ukraine as an impediment to closer ties with Russia.  Second, Putin was trying to build up consensus to create an alternative to the U.S. dollar-led trading order, which has made Russia and a host of other countries, including Iran, vulnerable to sanctions from the West. Putin made considerable progress on the first goal, but far less with the second one.  The four Southeast Asian states help explain why this is the case. Multipolar? Although Russia’s trampling of international law and use of military force to change borders sets a dangerous precedent for the countries of Southeast Asia, most states in the region see Russia as the path to a multipolar global order. And for Southeast Asian states that are always trapped in an increasingly zero-sum competition between Washington and Beijing, Moscow presents itself as a guardian of multipolarity. To them, it is a model for standing up to the West, or at least charting a more independent foreign policy.  For countries, whose foreign policy is largely transactional, pursuing ties with Russia increasingly makes sense.  Indonesia – arguably, the country in the region that is most protective of its sovereignty – has repeatedly voted against Russia at the United Nations, but barely spoken of Russia’s invasion.  Former President Joko “Jokowi” Widodo hosted foreign Minister Sergei Lavrov and met with Putin. But his Russia policy was extremely unprincipled and transactional. Russia has now supplanted Ukraine as Indonesia’s largest source for wheat imports. The country also is a major importer of oil from Russia, which has an internationally imposed price cap and sells below market rates. Prabowo Subianto, Indonesia’s new president, is set to continue this policy. Before his inauguration, he met with Putin and Prabowo’s foreign minister, Sugiono, made clear at the BRICS summit that Indonesia was seeking full membership in the grouping founded by Brazil, Russia, India and China. While Jokowi cared little about foreign policy, Prabowo seeks to assert Indonesia on the world stage with a much more active international policy and clout commensurate with its economic size. Russia is key to realizing this ambition. While Malaysia voted against Russia in two U.N. votes, its policy now is shaped by the conflict in Gaza, and Prime Minister Anwar Ibrahim’s seething anger towards the United States for its support of Israel.  Foreign corporations have recently pledged over U.S. $6 billion in investment to Malaysia’s semiconductor industry, one of the world’s largest.  Malaysia has angered Washington by repeatedly offering to sell semiconductors to sanctioned countries, including Russia and Iran. Anwar bristles at the unilateral imposition of U.S. sanctions on what he deems is a sovereign right to conduct foreign trade. Anwar views BRICS as not only a hedge against Western sanctions, but also as an alternative source of capital. Vietnam’s relations with Russia are long-standing and deep, and should be seen as part of its studiously neutral “bamboo diplomacy.” Vietnam voted with Russia in two U.N. votes, and abstained in a third. In July, Hanoi hosted Putin for a brief state visit.  Russia remains essential to Vietnamese security. Roughly 80% of its existing arsenal is Russian-made. While Vietnam seeks to diversify its supply chain, that will be difficult to do quickly.  The People’s Army leadership is close to Moscow. Its military is familiar with Russian equipment and produces many spare parts. Russia also allows licensed production of key weapon systems. In 2023, Moscow and Hanoi concluded an agreement to use proceeds from a Vietnamese investment in Siberian oil to fund the next generation of weapons. This alternative payment system was established to evade U.S. dollar transactions and thus Washington’s ability to impose sanctions. Thailand’s motivation in becoming a BRICS partner state has more to do with geopolitics than anything else.  A U.S. treaty ally, Thailand has been angered by Washington’s repeated imposition of sanctions as a result of military intervention in politics, including coups in 2006 and 2014.  China tried to fill that vacuum by maintaining close ties to the military leadership and increasing arms sales. Thailand feels caught between a rock and a hard place.  De-dollarization doubts Putin’s second goal, of de-dollarization, was far more divisive at the BRICS summit.  Luckily for the four Southeast Asian states, which depend so much on trade with the United States and which have no interest in creating a dollar alternative, they had India to hide behind.  Indian Foreign Minister S. Jaishankar firmly rejected Moscow’s de-dollarization agenda and made clear that India would continue to settle the majority of its trade in U.S. dollars. That was all the cover the Southeast Asian states needed. In sum, Jakarta, Putrajaya, Hanoi, and Bangkok are not seeking to upend the U.S.-led liberal international order through BRICS. They describe the grouping not as an “either-or” but an “and.”  A distant war For Southeast Asia, the war in Europe is far away. And the countries remain in deep denial about the international legal precedent being set or what Russian success in achieving its war aims would mean for global security. But Putin’s confidence presupposes the economic realities. While Russia has seemingly defied international sanctions and there’s still positive economic growth, expected to be 3.6% for 2024, this is now a war economy. Foreign investment has fled and is unlikely to return. More than 600,000 of Russia’s educated urban middle-class has emigrated in a massive brain drain.  Domestic production, meanwhile, is geared solely to support the war effort. Interest rates are now 21% to help counter the 13.4% inflation rate.  With an estimated 1,000 battlefield losses a day, and over 70,000 new hires in Russia’s primary defense contractor, Rostec, the labor market is tight. The IMF is predicting the Russian economy to finally feel the weight of prolonged sanctions and the war economy with GDP expected to fall to 1.3% and 1.2% in 2025 and 2026, respectively.  And even Moscow’s arms exports to Southeast Asia – one of its primary instruments of statecraft – are in doubt, as domestic demand surges. Between 2022-2024, Moscow’s arms exports fell by 60%, compared to the previous three-year period, according to the Stockholm International Peace Research Institute.  While Moscow sees the BRICS as the key to a multipolar world that would erode the dominant position of the United States, his moves to weaken the dollar’s grip is too confrontational for many of the new partner states. Putin’s own bravado may be undermined by Russia’s isolated wartime economy and inability to be the security partner of choice for many developing states. Copyright ©2015-2024, BenarNews. Used with the permission of BenarNews.