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Defense & Security
Paper airplanes with the US and Iranian flags face each other

Drone attack on American troops risks widening Middle East conflict – and drawing in Iran-US tensions

by Sara Harmouch

Watch on YouTube A drone attack that killed three American troops and wounded at least 34 more at a base in Jordan has increased fears of a widening conflict in the Middle East – and the possibility that the U.S. may be further drawn into the fighting. President Joe Biden vowed to respond to the assault, blaming Iran-backed militias for the first U.S. military casualties in months of such strikes in the region. But to what extent was Iran involved? And what happens next? The Conversation turned to Sara Harmouch, an expert on asymmetric warfare and militant groups in the Middle East, to answer these and other questions. What do we know about the group that claimed responsibility? Al-Muqawama al-Islamiyah fi al-Iraq, which translates as the Islamic Resistance in Iraq, has claimed responsibility for the drone attack. However, the Islamic Resistance in Iraq is not a single group per se. Rather, it is a term used to describe an umbrella organization, which, since around 2020, has included various Iran-backed militias in the region. Initially, the Islamic Resistance in Iraq emerged as a response to foreign military presence and political interventions, especially after the 2003 U.S.-led invasion of Iraq. The Islamic Resistance in Iraq acted as a collective term for pro-Tehran Iraqi militias, allowing them to launch attacks under a single banner. Over time, it evolved to become a front for Iran-backed militias operating beyond Iraq, including those in Syria and Lebanon. Today, the Islamic Resistance in Iraq operates as a cohesive force rather than as a singular entity – that is to say, as a network its objectives often align with Iran’s goal of preserving its influence across the region, but on a national level the groups have their distinct agendas. The collective is notorious for its staunch anti-U.S. posture and dynamic military campaigns, such as a recent two-day drone operation targeting American forces at an Iraqi airbase. Operating under this one banner of Islamic Resistance, these militias effectively conceal the identities of the actual perpetrators in their operations. This was seen in the deadly Jan. 28, 2024, attack on Tower 22, a U.S. military base in Jordan. Although it is evident that an Iranian-supported militia orchestrated the drone assault, pinpointing the specific faction within this broad coalition remains elusive. This deliberate strategy hinders direct attribution and poses challenges for countries attempting to identify and retaliate against the precise culprits. What do they hope to achieve in attacking a US target? Iranian-backed militias have been intensifying attacks on U.S. forces in recent months in response to American support for Israel in the Israel-Hamas conflict, and also to assert regional influence. Since the beginning of the conflict in October 2023, Iranian-backed militias have repeatedly struck American military bases in Iraq and Syria, recently expanding their attacks to include northeastern Jordan near the Syrian border. The deadly assault on Jan. 28 marks a significant escalation, though – it is the first instance during the Israel-Hamas war that American troops have been killed. Where is Tower 22 – the US base hit in drone attack? Three American troops were killed at a camp in Jordan near the Syrian border.   The attack in Jordan forms part of a strategy by Iranian-backed militias to counter Washington’s support for Israel in the Gaza conflict. But it is also aimed at advancing a wider goal of pushing U.S. forces out of the Middle East entirely. By coordinating attacks under the Islamic Resistance in Iraq, these groups are trying to display a unified stance against U.S. interests and policy, showcasing their collective strength and strategic alignment across the region. What role did Iran have in the attack? Iran has officially denied any involvement in the drone strike. But the Islamic Resistance in Iraq is known to be part of the networks of militia groups that Tehran supports. Iran, through the Islamic Revolutionary Guard Corps’ Quds Force, has provided such militias with money, weapons and training. However, the extent of Iran’s command and coordination in specific incidents like the Jordan attack remains unclear. At this stage, more concrete evidence is necessary to firmly implicate Iran. As Iran expert Nakissa Jahanbani and I recently explained in an article for The Conversation, Iran’s strategy in the region involves supporting and funding militia groups while granting them a degree of autonomy. By doing so, Iran maintains plausible deniability when it comes to attacks carried out by its proxies. So while Iran’s direct involvement in the attack has not been definitively established, Tehran’s long-standing support of groups like the Islamic Resistance in Iraq is well documented, playing a significant role in the regional conflict dynamics and geopolitical strategies. What options does the US have to respond? It isn’t clear how the U.S. intends to respond to the attack. The Biden administration faces complex dynamics when it comes to responding to attacks linked to Iranian-backed militias. While a forceful military strike is an option that the Biden administration appears to be looking at, targeting Iran directly on its own soil is fraught with risks and may be seen as a step too far. Even when targeting Iranian interests or personnel, such as the assassination of Quds Force General Qassem Soleimani, the U.S has conducted these actions outside Iranian territory. Iran’s denial of direct involvement in the attack further complicates the situation and makes it less likely that the U.S. attacks Iran in retaliatory strikes. But adopting a targeted approach, such as striking militia leaders outside of Iran, raises questions about the effectiveness of U.S. tactics in deterring Iran and its proxies. This strategy has been employed in the past, yet it has not significantly curbed Iran’s or its proxies’ aggressive actions. The concern is that while such strikes are precise, they may not be enough to deter ongoing or future attacks. The key to the strategy’s success may rest in identifying the most influential factors, or “centers of gravity,” that can effectively influence Iran’s behavior. This means determining key leaders, critical infrastructure or economic assets, which, if killed, destroyed or seized, could substantially alter Iran’s decision-making or operational capabilities. The Biden administration’s need to balance a strong response with the geopolitical consequences highlights the difficulties of navigating a tense and evolving situation. How might the attack affect the wider Middle East conflict? How the U.S. responds could reshape the Middle East’s geopolitical landscape and influence the dynamics of proxy warfare in the region. A strong military response from Washington might deter Iranian-backed militias from future attacks, but it could also provoke them into taking more aggressive actions. In the short term, any U.S. retaliation – especially if it targets Iranian interests directly – could escalate tensions in the region. It could also exacerbate the cycle of tit-for-tat strikes between the U.S. and Iranian-backed forces, increasing the risk of a broader regional conflict. And given that the attack’s pretext involves the Israel-Hamas war, any U.S. response could indirectly affect the course of that conflict, impacting future diplomatic efforts and the regional balance of power.

Diplomacy
Outlook 2024

Latin America and the Caribbean: outlook to 2024 and its potential impact on sustainable development

by Javier Surasky

Introduction The year 2024 will present new windows of opportunity and obstacles to the acceleration of the Sustainable Development Goals (SDGs) in Latin America and the Caribbean (LAC). Below we analyze some trends in the region for 2024 in each of the three dimensions of sustainable development, to which we add consideration of governance elements to help understand a framework that does not look easy and in which critical decisions will have to be made for the future. The social dimension In 2024 we will have presidential elections in six countries in the region. Polls indicate that the incumbent party will remain in power in Mexico, where Claudia Sheinbaum could become the first woman president in its history; El Salvador will renew the mandate of Nayib Bukele despite doubts about the constitutionality of his new candidacy. In Uruguay and the Dominican Republic, where Luis Lacalle Pou and Luis Abinader will seek to renew their mandates, the high levels of approval of their administrations point to a possible reelection. At the other extreme, polls point to a possible defeat of the ruling party in Panama, where former president Ricardo Martinelli (2009-2014) leads in voting intentions despite having been convicted in 2023 for a corruption and money laundering case, a sentence that is currently under appeal. In Venezuela, the only country on the list without a date for its electoral process, the controversies surrounding the government of Nicolás Maduro and the lack of transparency in information, added to the imprisonment of opposition leaders, prevent any analysis. The escalation towards an armed confrontation with Guyana over the border region of the Essequibo, rich in oil, minerals and gas, should be closely followed. The result of a long diplomatic and legal dispute between the two countries, its last chapter had taken place in 2018, when Guyana, with the backing of the current UN Secretary General, went to the International Court of Justice to request the reaffirmation of the international arbitration that fixed the border between the two countries in 1899. Maduro's government responded by ignoring the Court's authority to hear the case. Then, in 2020, the court declared itself competent to hear the case, but has not yet rendered its final judgment. The Community of Latin American and Caribbean States (CELAC), almost absent from the regional political map in recent years, reappears to mediate between the two countries, the end of which is now uncertain. All these processes are framed in a high level of citizen distrust towards the political sector, accompanied by weakened democracies, as reflected in The Economist's Democracy Index 2022. On the other hand, the arrival of Javier Milei, a political outsider, to the presidency of Argentina raises questions about its future regional positioning and will have far-reaching regional effects with changes in alliances on sensitive issues, from support for regional environmental policies to the redesign of the country's insertion in international trade, with potential major impacts on the Southern Cone. All of the above, together with the low growth and economic difficulties described in the following section, pose challenges for accelerating regional trajectories of poverty reduction, the fight against labor informality and unemployment, and the implementation of public policies to promote equity and gender equality, among others. For these reasons, there will be more pressure on regional environmental resources, which could lead to new protests and social unrest. The economic dimension Implementing actions to promote sustainable development requires financial resources. LAC has long been a low-priority region for international cooperation and foreign investment is limited, so generating its own resources, in a context of global economic restrictions, is essential. The average projected growth for the region in 2024 is 1.5%, distributed by subregion as follows: the Caribbean (excluding Guyana, which is in a special situation due to its recent entry into the "club" of oil-exporting countries), 2.8%; Central America and Mexico, 2.1%; and South America, 1.2%. As a result, employment growth is expected to slow down. In an attempt to recover employment growth, the countries of the region seem to be turning to flexible monetary policies to increase exports. Countries such as Brazil, Chile and Peru, for example, reduced rates in the third quarter of 2023 and Colombia and Mexico are expected to do so at the beginning of 2024, but the slowdown in growth in countries such as the United States and China is resulting in lower demand for primary products, the main export of LAC countries, in international markets. In addition, there are deficiencies in infrastructure for the transportation of goods throughout the region, creating an obstacle to its export capacity. The possible fall in demand for basic goods is accompanied by a forecast that their prices will continue to fall in 2024, with the exception of energy commodities, which will increase pressure on the trade balances of LAC countries. In terms of minerals, the boost to the extractive industry could lead to foreign currency inflows in countries such as Argentina, Chile and Bolivia (the lithium triangle), although the uncertainty regarding the arrival of investments is due to doubts about economic and business policies in those countries and the growing public demand for the regulation of mining activity to reduce its effects on the environment. However, a boost to mineral processing activity to accompany its extraction could come from the global competition between China, the United States and the European Union, as the latter two seek to reduce China's global weight in mineral processing. Finally, it should be noted that the relocation of supply chains that followed the Covid-19 crisis will bring income to only a few LAC countries, such as Mexico and Panama. The environmental dimension Climate change is already being felt strongly in the region: the average temperature in LAC for 2021-2040 is expected to be about 1°C higher than in the period 1985-2014. At the same time, LAC is key to finding solutions to the challenges of climate change: it is home to 40% of the planet's biodiversity and more than 25% of its forests. The region also plays a central role in the sustainable production of food and energy, where more than 30% of the energy production matrix is made up of "green energies", a percentage that for some countries exceeds 90%, and an export profile that is closely linked to potentially polluting extractive activities. Although it contributes less than 10% of global greenhouse gas emissions, LAC causes damage whose cost already exceeds 2% of its combined annual GDP as a result of the worsening and greater recurrence of extreme weather and environmental catastrophes. The region is the second most vulnerable to natural disasters, which have affected approximately 190 million people since 2000. The expected climatic effects of the "El Niño" current in the region, with increases in rainfall in some sectors paired with droughts in others, will translate into differentiated opportunities and risks for different countries in the region in 2024. In perspective, Argentina and Paraguay could benefit from more rainfall that will benefit the crop, while Colombia and Central America will be exposed to droughts and the Caribbean to extreme weather effects. It will be precisely the intensity of the climatic extremes that "El Niño" reaches that will define its impact on the production of basic goods, energy generation and transportation, but in any case it could contribute to the inflationary pressures that already exist in LAC. A key issue for the region is what happens at the 28th Conference of Parties to the United Nations Framework Treaty on Climate Change (COP 28), where the aim is to establish a "Loss and Damage Fund" to address the costs of climate change and increase funding for climate change mitigation. However, the central concern of the region will be the adoption of a new "global goal on adaptation to climate change" to guide and finance the actions required to adapt to the changes that climate change has already produced, and to accompany the mitigation goal established in the Paris Agreement. Defining that goal and creating channels to finance its achievement is one of the most complex issues at COP 28 and it is uncertain what the outcome will be. Chile, together with Australia, have been designated as co-facilitators of this negotiation. At the same time, what happens at the COP and the discussions on climate and financial issues that will take place in 2024 should find LAC as a leader around the Bridgetown Initiative, presented by Barbados in 2022, to modify the international financial system and urgently curb climate change, combining two concerns of deep regional significance Governance of sustainable development In 2024, two countries in the region, Jamaica and the Dominican Republic, are expected to adopt new national development strategies: In the case of Jamaica, the Medium-Term Socioeconomic Policy Framework 2021-2024 is coming to an end and work is already underway to prepare the document that will give it continuity. This framework guides the implementation, monitoring and evaluation of the country's main national planning instrument, Vision 2030 Jamaica, and should ensure its alignment with the SDGs. In the Dominican Republic, the National Multi-Year Public Sector Plan 2021-2024 defines the country's development policies and their financing, along with international cooperation priorities. Brazil, for its part, will once again have its commission for the implementation and monitoring of the SDGs active as of December 2023, after it was deactivated by the Jair Bolsonaro administration and replaced by the current government. In addition, the following countries in the region will submit Voluntary National Reports on SDG implementation: Argentina, Belize, Brazil, Colombia, Costa Rica, Ecuador, Honduras and Peru. It is possible, however, that the position of the recently elected president of Argentina, Javier Milei, against the 2030 Agenda, will lead the country to withdraw its offer. On the other hand, in 2024 the sixth forum of Latin American and Caribbean countries will be held in the city of Santiago de Chile, a meeting that will be of special importance for the region given that it will not only serve, as it traditionally does, as a regional preparatory meeting for the follow-up and evaluation process of the 2030 Agenda that concludes at the United Nations High Level Political Forum, but will also be a key moment in the regional path towards the Summit of the Future, which will meet in New York in September 2024. It is important to keep in mind that next year will find LAC countries and officials occupying positions of high capacity to influence global debates on the future of multilateralism: -The presidency of the UN General Assembly is held by Trinidad and Tobago, and that of the Economic and Social Council is held by Chile. -Brazil will chair the G21. -Colombia will host the World Data Forum. -Uruguay's Felipe Paullier has been appointed as the first Under-Secretary-General for Youth Affairs in the history of the UN. -The government of Mexico will be working with its Spanish counterpart in preparation for the Fourth United Nations -Conference on Financing for Development, to be held in 2025. In addition, there is growing activity surrounding the appointment of the person who will succeed the current UN Secretary General. In accordance with the practice of geographical rotation in the exercise of this responsibility, a person from LAC would occupy the position. However, Eastern Europe has pointed out that, in its opinion, its turn was "skipped", given that it was the Secretary General of the organization when Guterres, from Western Europe, was appointed for his first term. Should LAC's position prevail over that of Eastern Europe, we may see the first bids for candidates for the post in 2024. The pressure to have a woman head the UN for the first time in history was scorned when the current Secretary General was chosen, but it is unlikely that the same thing will happen again. Although it is too early to advance names, the current Prime Minister of Barbados, Mia Amor Mottley, appears to be an unavoidable reference, although there are several candidates in the running.

Diplomacy
Yellow sign stating,

2024: The electoral year that we will live in danger

by Luis Eugenio García-Huidobro

It is also possible that, in the face of the uncertainty that this 2024 will bring, there may be no other alternative than to tolerate the tense wait that each of these elections entails. But even if this attitude is adopted, we must remember the lessons that history provides us in a context like the current one. During a conversation with foreign academics, one of them joked that, in 2024, we should at best content ourselves with having a quieter year than the previous one. Most agreed on the perplexity of entering a new year while still processing much of what happened in 2023. One of them recalled the assault on the Congress and the Supreme Court in Brazil, or the democratic regressions seemingly consolidating in India, Turkey, or Hungary. Another lamented that the terrorist attack in Israel and the brutal occupation of Gaza had diverted attention from the occupation in Ukraine and obscured the growing tension in the Balkans, the Red Sea, or the Taiwan Strait. Throughout this conversation, the common thread is the same: many events in 2023 reflect a world that has become extremely unpredictable. From this perspective, however, 2024 hardly presents itself as auspicious. By chance, in different electoral calendars, nearly half of the world's population will go to the polls in every corner of the planet, with geopolitical and democratic consequences difficult to anticipate. During 2024, there will be general elections in the United States, the United Kingdom, India, Mexico, South Africa, Taiwan, Indonesia, Pakistan, El Salvador, Panama, the Dominican Republic, Rwanda, Mozambique, Uruguay, Namibia, North Macedonia, or Romania. In addition to this, there will be presidential elections in Russia, Venezuela, Finland, Azerbaijan, Iceland, Croatia, Algeria, or Slovakia. There will also be parliamentary elections in Portugal, South Korea, Iran, Bangladesh, Belgium, Austria, Mongolia, Botswana, Georgia, or Lithuania. There will also be regional or municipal elections in Australia, Germany, Canada, Turkey, Spain, Poland, Brazil, Chile, or Bosnia and Herzegovina. This combination represents an unprecedented electoral scenario since the introduction of universal suffrage in the late 18th century. This intricate electoral puzzle will undoubtedly have direct consequences on almost all ongoing or developing geopolitical conflicts. For example, this Saturday, presidential elections will take place in Taiwan, in which one of the three candidates in dispute advocates for a more favorable position towards reunification with China, and another has downplayed the importance of this conflict to focus on public policy issues. It is no coincidence, then, that in his New Year's speech, Chinese President Xi Jinping announced reunification with the island as inevitable, marking an escalation in the rhetoric used to address the issue compared to the same speech the previous year. Also in Asia, the border conflict between India and Pakistan could take a new turn after the escalation of violence in 2021 and 2022, as a result of the general elections both countries will have between February and May. From India, only a consolidation in its nationalist rhetoric can be anticipated, while from Pakistan, it is difficult to know what to expect, given the deep political crisis the country has been experiencing for almost two years and the political dynamics generated by the humanitarian crisis on its border with Afghanistan. Against all odds, the war in Israel and Palestine has not yet escalated into a regional armed conflict. However, the situation in the Middle East rests on a precarious balance whose pieces could be rearranged in the coming months. Even if Benjamin Netanyahu's government resists the pressure to call general elections, Israel's geopolitical position is likely to be weakened by the almost certain Labour shift in the UK government, a result of the division this conflict generates within the British left. Conversely, a Republican victory in the US elections in November would be a relief for Netanyahu, given the deference with which this party usually approaches the more problematic actions of the Israeli government. The importance of this support should hardly be underestimated, given Israel's increasing marginalization within the international community. This is evident not only in the adverse votes it has faced in the United Nations General Assembly but also in the genocide accusation that South Africa has filed against it before the International Court of Justice. This latter country is also heading for general elections in 2024 after a presidential term characterized by corruption scandals and, for the first time since the end of apartheid, could result in a change in parliamentary majorities that ends the political hegemony of Mandela's party. Finally, there are no major expectations of change in the parliamentary elections of a theocratic autocracy like Iran, even after suffering one of the worst terrorist attacks since the 1979 revolution and undergoing a deep economic crisis that has persisted for years. But attention must be paid to the election of the Assembly of Experts in March, as the resulting balances in it could impact the eventual appointment of the successor to an increasingly elderly Ayatollah Khamenei, with the regional ramifications that this may entail. Calls are growing in Ukraine for President Volodymyr Zelensky to call elections during this year, due to the widespread criticism his handling of the conflict has received. But even discounting this uncertainty, the country will have to face multiple external electoral variables that could compromise its position. For now, in the middle of the year, the election of five out of ten non-permanent positions on the United Nations Security Council will take place. More importantly, a possible Republican victory in the US presidential and parliamentary elections could severely weaken the Ukrainian military position, as indicated by recent debates in the House of Representatives and the Senate. While Vladimir Putin's position within Russia is weaker than before the invasion in 2022 (especially after the failed Wagner Group rebellion last June), everything suggests that the president will be re-elected for a fourth term in March. This geopolitical equation must also consider the election of the European Parliament, in which some predict unprecedented victories for the far right, which, if materialized, would also impact the composition of the European Commission. At the same time, there will be a renewal of the European Council, whose composition could also undergo changes due to new political balances in national governments. It should not be ruled out that Ursula von der Leyen could fail to be re-elected for a new term, despite her recent promise to prioritize aid to Ukraine. However, the advance of the far right may not entail significant changes in the European position toward this conflict. As a recent study suggests, the Russian invasion has marked a shift in sympathy that some populist or far-right parties previously expressed toward the Putin regime, which has now become a toxic association they deliberately seek to avoid. The geopolitical importance of the war in Ukraine, finally, has overshadowed other conflicts that are even brewing on European territory itself. Notably, the growing tension between Serbia and Kosovo - in which the former has threatened military interventions - has multiplied fears of the resurgence of a conflict that between 1998 and 1999 caused an estimated twelve thousand deaths and more than a million displaced. It is in this scenario that general elections will take place in Croatia and North Macedonia, as well as municipal elections in Bosnia & Herzegovina. All this also happens in a year that will be a critical juncture for global democratic development. As all available indicators suggest, the last two decades have witnessed a decline in democracy worldwide. Last year is indicative of this trajectory: in Africa alone, seven coups d'état occurred. And while many of these events also demonstrate the surprising democratic resilience of many countries, it is undeniable that 2024 could be a turning point for liberal democracy. Many of the main democracies show severe democratic erosions. Elections in India - which some question whether it can still be considered a democracy - could end up consolidating a competitive autocracy in that country, as everything indicates that Narendra Modi will remain as prime minister. In Mexico, polls anticipate that in June, the presidential candidate of the ruling coalition will be elected, suggesting that the state dismantling advanced by President López Obrador and his attacks on key institutional checks will continue. Moreover, the eventual election of Donald Trump - if not disqualified by the Supreme Court from running again as a candidate - would pose a serious threat to American democracy, as predicted by the contempt he repeatedly showed as president towards constitutional forms. Just remember his reaction to the Capitol assault or his efforts to subvert the electoral result in 2021. And it is needless to point out that his return to the White House would make any geopolitical balance as unstable as his temperament. There may be those who criticize the excessive pessimism of the outlined horizon. They may use the example of Poland, whose parliamentary election last October offered some optimism in the face of the democratic erosion that the country had experienced over the previous eight years. But even in this case, the path ahead for the Polish government to reverse this illiberal trajectory is long, and it will face multiple challenges. Perhaps the greatest of them in the short term is the municipal election in April, which populist parties could win. The same could be said of Brazil, which, after denying re-election to President Jair Bolsonaro, will return to the polls for the municipal elections in São Paulo. It is also possible that, in the face of the uncertainty that this 2024 will bring, there may be no other alternative than to tolerate the tense wait that each of these elections entails. But even if this attitude is adopted, we must remember the lessons that history provides us in a context like the current one. After all, we must not forget that in August 1914, the world's major powers believed that, in a context of great geopolitical instability, they would be perfectly capable of anticipating the reactions of their adversaries in case conflicts escalated.

Diplomacy
Trump after Iowa success.

2024 US Elections: Congress and Foreign Policy Beyond the Presidency

by Emily Mosley

The Trump machine has once again dominated the media environment across the world. But don’t rule out America’s other electoral races in the US Congress, which will prove pivotal to US foreign relations. For observers of American politics, the onset of 2024 marked the commencement of the much-anticipated election year. Though political tensions in the US have not mellowed much in the last decade, the international community has ramped up its commentary on the predicted presidential rematch. Less covered in the media are the 438 house seats and 34 senate seats up for grabs in US Congress. Foreign audiences often confuse congressional powers with presidential powers. Though there are many, the most misperceived pertain to Congress’s ability to control the national budget and defence spending, declare war, and ratify treaties. With the potential for such a large shift in the electorate, the outcome of the Congressional elections is potentially a more significant issue than even another Trump presidency and will undoubtedly include important issues such as aiding Ukraine in its war against Russia, sustaining American commitments in the Indo-Pacific, and pushing back against China. Campaign strategists for both the Democratic National Committee (DNC) and Republican National Committee (RNC) are acutely aware of the power that Congress can wield. For many of the individual campaigns – some 472 – strategists are required to lean on the spectacle of the presidential election and what is called the “coattail” effect. Popular presidential candidates or political party leaders attract votes for other candidates in his or her party and influence down ballot races. This becomes notably easier in a US election landscape where, in some states, voters can click a single “straight-ticket” button to vote at the top of the ballot. This instantly votes for every down ballot race (Presidential, Congressional, local, and otherwise), on the basis of political party. While it may seem as though Americans are more divided along party lines than ever, polls increasingly indicate that the political tumult that has encompassed high-level candidates over the last several election cycles has caused a rise in independent and indecisive voters. A survey conducted by Pew Research in September 2023 found that a record number of (28 percent) of Americans are expressing unfavourable views of both parties. This figure is similar (nearly 33 percent) for young voters who are undecided on who they will vote for in the 2024 elections. As the research on undecided voters continues to accumulate, a crucial question is how consequential the coattail effect will be for congressional elections. Senatorial elections unfold on a six-year cycle, introducing a staggered re-election pattern. This leads to certain election years showing a greater preference for one party in the Senate compared to others, as not all seats are up for re-election simultaneously, and contested seats are occasionally situated in states with strong partisan leanings. This election round, with 34 seats on the ballot, it is the Republican’s election to lose. While Democrats presently hold a slim 51-49 majority in the body, the electoral landscape suggests that Republicans are poised to retain all 11 of their currently held seats in staunchly red states. The Democrats face a more challenging landscape, with all 11 of their seats situated in contested states, along with 2 independents in states that remain uncertain. The Republicans are favoured to pick up at least two seats, with a majority of polls showing a 50-47 Republican control. The House race will be much more unpredictable. Congressional House members must campaign every two years, and with such numbers, the House races are not skewed by which seats are up for grabs or affected by the electoral college. For this reason, the House race is considered much more of a reflection of American political sentiment. It’s authorities cover the defence budget, the regulation of trade and tariffs, and the allocation foreign aid, among other important roles. On this basis, the House plays a pivotal role in shaping how the US government engages with its foreign allies. In a scenario where a polarising candidate such as Trump secures the presidency and the Senate, the balance of government can still be influenced by the outcomes of the popular vote for the House. If the majority of voters support a Democratic House, Democrats will have the ability to impede the Trump administration’s decisions on these critical issues for at least the next two years. The House races will serve as the definitive indicator of the success or demise of the coattail effect. Out of the 435 seats, 218 seats are required to control the House. The Democrats are expected to secure around 204 seats, with Republicans around 211. The remaining 20 highly contested seats, then, will determine who controls the lower house. With Republicans favoured to win the presidency and the Senate, this nail-biting unpredictability will be the difference between a smooth sailing Republican government and a bureaucratic deadlock until 2026. Of course, polls have been wrong in the past. For the time being, the Democrats (as well as the rest of America and the world) have much to be concerned about. Even if a party fails to gain the White House, the coattail effect will still be useful in mobilising party voters for lower-level races. Partly for this reason, spending on congressional and presidential races from external sources has reached US$318 million, marking a 600 percent surge compared to this same period in 2020. As a strategic financial approach, strategists will look to big and small donors who contribute to the presidential race to influence outcomes in down ballot elections. This fact that Congressional races will be influenced by elites and other powerful entities underscores the necessity for the general public to closely monitor and engage with these electoral contests. The substantial impact congressional races will have on American foreign affairs emphasizes the attention the international community must pay to broader electoral outcomes. Often overshadowed by the reality tv-esque drama of presidential elections, the powers vested in the US Congress are equally, if not more, consequential for global affairs. In 2017, and again in 2018, the Trump administration sought to defund the Department of State and would have succeeded if not for Congress. Similar scenarios are envisioned for Trump 2.0, particularly on the Ukraine question. Though comprehending the intricacies of down-ballot races and the coattail effect is a challenge, it stands as one of the most substantial stabilisers for foreign nations seeking to foster lasting relations with an unstable United States. By actively learning and being more conscious of the distinctive powers held by the president, in comparison to other bodies, the international community can facilitate more accurate and resilient policy responses.

Defense & Security
Ecuadorian military during the internal armed conflict, 13 January 2024.

Crisis in Ecuador

by Francesco Martone

A wave of violence, neoliberalism and drug trafficking Ecuador has been grappling with a profound crisis marked by heightened insecurity, exacerbated by the implementation of neoliberal policies and widespread impoverishment over the past few years. The looming threat of a quasi-permanent state of conflict, at least until the upcoming elections, coupled with a concerning trend towards creeping authoritarianism, while not yet institutionalized, casts a shadow over the current state of affairs. “By associating the presentation of meat to a dog with a bell sound for a certain number of times, eventually the bell sound alone will determine salivation in the dog.” - Pavlov's experiment There is much neuropolitics in the unraveling of the most recent events in Ecuador, with the worsening internal crisis and the draconian responses decided by President Daniel Noboa. There is the neuropolitics of terror, there is neuropolitics in the performance anxiety of a newly elected president who is confronted with a situation, already clear from the outset, that threatens to undermine his eventual future election. And there is much psychopolitics in a country that cannot shake off its visceral hatred of the years of the "Revolucion Ciudadana" on the one hand or its unconditional love for its father Rafael Correa on the other. And who inevitably falls back "like Pavlov's dog," into electoral choices that favor the country's economic elites in the belief that they are choosing the lesser evil. And there is a country exhausted by impoverishment, marginalization, viral weakening of the state apparatuses. And on the other side, again, overseas, there is a kind of Pavlovian reflex that a civil war, or a coup, is going on in Ecuador today. A hell on Earth, in short. A Pavlovian reflex that seems to hide a sort of latent "Orientalism" that still permeates the reading of events on this continent on the other side of the ocean. It will therefore be necessary to use the classic Occam's razor, to try to debunk the facts, news, and interpretations and get to the grain of things. The grain of things is so called. Ecuador has been experiencing for some years now an overt situation of increasing insecurity brought about by the penetration of as many as 22 drug trafficking gangs (Colombian, or affiliated with the Mexican cartels of Jalisco - Nueva Generación and Sinaloa, assisted by Albanian gangs present on the country's coast, which also suggests connections with the Calabrian "ndrangheta") mostly in the coastal regions. The homicide rate is among the highest in Latin America. Regions such as Esmeraldas - with an overwhelming majority of Afro population, which has always been marginalized and impoverished, or Guayas, in one way or another, are fertile or strategically relevant terrain for cocaine routes. The former due to the great availability of cheap "labor," "gatilleros" they call them, notably suburban boys left to their own devices, victims of a historical fate that marginalizes them, who for a fistful of dollars receive a gun and simply pull the trigger. Or they go to extort bribes, "vaccinations," from traders or families. The latter for the important port of Guayaquil, territory to be controlled to export drugs to the United States and Europe, often inside banana containers, as happened in a recent large seizure at the port of Gioia Tauro, Calabria, Italy. The penetration of narcos gangs into Ecuador undergoes a paradoxical acceleration with the peace process in Colombia when border areas "controlled" by the FARC are abandoned and left prey to new paramilitary formations or the coca-producing gangs. Ecuador thus finds itself between two producing regions such as Colombia and Peru, with porous borders, small and large ports from which to ship cargoes, a social fabric torn apart by years and years of neoliberal policies, an economy centered almost exclusively on an extractivist model that leaves large swaths of the population impoverished (and which is, after all, the "good" face of that of the narco-economies), a society ridden with enormous inequalities, first and foremost in urban areas, informal labor markets, and rampant corruption in state apparatuses. A dollarized economy that also makes money laundering easier, and further backed up by widespread illegal gold mining. What better combination for the narco-traffickers to make it the place for processing and shipping their goods? There is a strong correlation between the application of the IMF's neoliberal "shock doctrine," and its social, political and economic consequences, and the spread of organized crime. A correlation that calls for a indepth analysis of the root causes causes of what can be considered a "polycrisis" that runs through the small Andean country, certainly not used to situations such as that experienced in the past in Colombia or currently in Mexico. A polycrisis that is evident by analyzing in filigree the events of the last six months. Let us rewind the tape to August of last year. Riots have been igniting in prisons for some time. Gang clashes, often aided by the connivance of prison authorities (how else would one explain the presence of weapons and explosives used in the riots?) rage with unprecedented brutality. The prison problem stems from widespread pan-penalism in state apparatuses and an essentially punitive and deeply patriarchal view of retribution, and one that has disproportionately increased the type of crimes for which people go to jail (even for driving without a license). And by the construction in 2014 of three maximum security prisons in which narcos are locked up, creating the conditions for their transformation into command centers and theaters of internal wars among them. The presidential election campaign, convened prematurely following then-President Lasso's decision to dissolve parliament recurring to the mechanism of "muerte cruzada" and go to the polls to avoid impeachment proceedings for corruption, is actually dominated by the issue of security. Close to the opening of the polls, there comes the knockout blow that will determine the election outcome. First the assassination of presidential candidate Fernando Villavicencio, a champion of the fight against corruption, killed in Quito at a campaign event, few weeks after Augustin Intriago, the mayor of Manta, another port city, a territory in the hands of gangs like others on the coast. In the days that followed, the hitherto minor figure of the coastal candidate, an expression of local and national oligarchies - the same ones that had supported Lasso at the time - emerged in the polls. A young man unknown to most, a sort of electora underdog, Daniel Noboa, son of "Alvarito" great tycoon of the banana industry, a permanent candidate for president, and grandson of Isabel a Guayaquil’s wealthiest real estate entrepreneur. In the runoff Noboa wins against the Revolucion Ciudadana candidate, Luisa Gonzales, and immediately makes of security his priority. He faces a very complex scenario. A Congress in which on paper it does not enjoy a majority (although it will later vote by a majority for the first economic measures and the state of internal armed conflict also by virtue of a pact with important sectors of the oppositions), the overwhelming majority of territories controlled by opposition parties (Revolucion Ciudadana and Pachakutik, the reference party of the powerful CONAIE, Confederation of Indigenous Organizations of Ecuador). In the background is the important victory in the national referendum against oil extraction in the Yasuni, which foreshadows the existence of a social and ecological movement far stronger than electoral numbers. In short, Noboa appears from the outset to be a kind of lame duck who will experience a situation, to return to the neuropolitics mentioned above, of a real post-electoral stress disorder, squeezed between the urgency of giving strong and impactful signals to counter organized crime and that of responding in the short time of his term (new elections are due for mid 2025), to the interests of the lobbies to which he refers. Tertium non datur, even if that tertium is represented by the overwhelming majority of the country, already affected by the pandemic. And it is precisely there, in that "tertium," "from below," Uruguayan sociologist Raul Zibechi would say, that decision makers should start to reconstruct a plausible hypothesis of a country capable of another future. It is that tertium to which the country's resources should be devoted, young people and adolescents left alone and in the grip of criminal gangs, with fathers and mothers migrating out of desperation, crossing the Isthmus of Darien on foot to try to get to the United States. So even before he takes office, Noboa finds himself making some pre-government reshuffles, launches a security plan, "Phoenix," then decides to get the inconvenient vice president, a great Vox sympathizer, out of the way by sending her to Israel with the assignment of "special envoy" for peace. And he gets to work. A few weeks go by and the "Metastasis" scandal explodes, proof of how far the narcos have managed to penetrate the judicial sector, squeezed between corruption and death threats. In the meantime, the president begins to set his economic agenda by presenting laws aimed mainly at flexibilizing the labor market, creating free-trade, tax-free zones that coincide with the large estates and plantations of the agribusiness tycoons, announcing the removal of fuel subsidies, the main detonant of last year's indigenous uprising, brutally suppressed by the Lasso government. A "ley economica" that would create great resistance in the country, and which responds, along with the others, to the need to secure support from the International Monetary Fund. In parallel, funds to local authorities are reduced, the security department under his direct command is even closed. A tax "amnesty" for the highest incomes is announced. Cases of corruption in the security apparatus follow one another. Noboa prepares a package of legislative proposals and amendments to the Constitution that would allow the police and army to have a free hand and enjoy total immunity, which in fact is already the case thanks to the decrees issued by Lasso, who several times resorted, in vain, to the state of emergency. Nothing new then. He then attempts the popular plebiscite card a few months before the new election deadline. To the first 11 referendum questions announced, it then adds others, even including issues that only partly have to do with the issue of security. These include the opening of casinos, or measures to ease foreign direct investments. Proposals that a leading constitutionalist and former member of the Constitutional Court, Ramiro Avila Santamaria, defined as unconstitutional or unfounded. The decision is now up to the Court. Then comes the sensational news of the escape from prison in Guayaquil of one of the leaders of the Choneros gang, alias "Fito," allegedly occurring as early as Christmas, and of another leader of the "Lobos" apparently implicated in the murder of Villavicencio. A severe blow to the government's credibility to which Noboa responds with yet another declaration of a state of emergency, resulting in a curfew from 11 p.m. to 5 a.m., a decision to have the army assist the police in public order operations, and the restriction of the right of assembly and the inviolability of the home. The narcos' response is immediate: new riots in prisons, attacks on some police stations, and the "raid" - the details of which have yet to be fully clarified - of a commando breaking into a live broadcast of a Guayaquil television station. A blow to the heart of his main electorate. Fact of the matter is that within a handful of hours of the blitz a new decree is issued in which the President - for the first time in the country's history - declares a state of internal armed conflict, that would be fought by the army, and recognizing the 22 gangs as "belligerent" parties. The crisis thus shifts from being a matter of public order to one of actual war, governed by international humanitarian law, such as the Geneva convention. Upon the announcement of the measure, the country goes into panic. Classes are suspended and will remain in online modality for several days, the evacuation of public buildings is ordered, and contingents of soldiers are dispatched to guard sensitive targets. The president locks himself up in the Carondelet Palace with senior state officials to decide what to do. After a few hours, military big brass in full uniform appear in front of the cameras, explaining the situation to the country and giving the line. A coup? There goes the first Pavlovian reflex. And yet no, Decree 111 declaring a state of "internal armed conflict" is overwhelmingly approved by Congress, even by the leftist opposition parties that had from the outset given declaration in favor of national unity. Indeed the main concern is that of not appearing as those who throw up their hands in the face of organized crime, a tasty opportunity for opposing parties in the upcoming 2025 presidential and parliamentary elections. A civil war? Not even, since we are not faced with organizations structured in paramilitary form, nor are we faced with an armed conflict on a national scale, but rather with public order operations "with boots on the ground" in well-defined territories. The declaration of war is in fact a media coup for effect to create the conditions for a "national unity" and "war", in which a clear distribution of tasks is emerging. On the one hand, the military, which from now on takes command of public order operations, with the police at their service (something that creates quite many frictions) and which can thus reaffirm their role and their credibility before the people. It must be said that the presence of the military in the streets is - at least in the capital Quito - very sporadic, the effect appears to be mostly symbolic. On the contrary the situation is pretty different in prisons where the military can now intervene freely to suppress riots and free that hundred hostages still in the hands of the rioters. Or when launching raids or searches in the "hot" outskirts of crime-ridden cities. However, even in the symbolic also lurks the risk of a pervasive "securitization" of public space, resulting in the inhibition of every possible form of dissent or social conflict. Noboa was quick to declare that even those who do not take action against gangs, (by extension one could also interpret those who oppose his policies) could be considered "the enemy." And then, in that public space now controlled by the military, there is a clear risk that the real victims of repression will end up being those marginal and marginalized classes, guilty only of being such, or of having dark skin. The precedent of "false positives" in Colombia comes to mind, where the military, in order to demonstrate the success of their operations, displayed to the public corpses of poor people in guerrilla uniforms. The military thus takes over – de facto - the public space determining by default the direction in which the country will go. In parallel, the private space is taken care of by the president with new decree-laws presented invoking the need to raise funds for internal warfare, from raising VAT to 15 percent, to the liberalization of the energy sector, the rejection of the result of the public consultation on Yasuni in order to continue drilling to generate funds to support the “war”, to policies aimed at attracting foreign capital. In the background are two agreements on cooperation in the military and security sector with the United States signed months ago by Lasso providing for the albeit temporary presence of the military on the national territory. They are in a hurry in Washington, with the specter of Trumpian “America First” isolationism looming. No surprise that the Ecuadorean Constitutional Court ruled that no approval by Congress is required. Then the free trade agreement with China, so far stalled by Congress, is due to go into effect soon. What about what exists and lives between public and private space? Movements? Civil society organizations? Theirs are the only expressions of criticism and dissent. CONAIE declares solidarity with the victims of the conflict, urges communities to organize indigenous guards to protect their territories (so far almost untouched by narco violence) and warns the government not to use the pretext of war to impose anti-popular measures. Its Amazonian organizations have recently taken to the streets to protest the construction of one of the two “Bukele-model” megaprisons in the Pastaza province. Environmental and indigenous movements are now denouncing Noboas’ decision against the ITT Yasuni’s decision. On the other hand, human rights organizations point the finger at the inappropriateness of the use of the military instrument, and the possible serious effects on human rights. The risks to the millions of Ecuadorians and Ecuadoreans working in informal economies or on temporary contracts are also stressed, as well as how the state of exception may increase cases of intra-family and gender-based violence. The rest is still a work in progress. The risk of a sort of permanent state of war that will characterize the country and the public debate at least until the next elections is just around the corner together with a creeping authoritarianism, certainly not at the institutional level, but surely in the state of affairs. Although the decrees of emergency and state of internal armed conflict have a duration of two months, it is highly unlikely that in that time the state will be able to declare victory. Since when you declare a war you must also be clear about when you are going to win it. Which at the moment is very vague and indefinite. Will it be when all Colombian or Venezuelan criminals are deported? Which is very difficult since the Constitution recognizes the human right to free mobility. Or when will they all be put in jail? Or when they will all be "shot down"? (numbers range from 30 to 50 thousand gang members), according to the term used by the mainstream press. This article was published originally in the Transnational Institute under the Creative Commons - Attribution-Noncommercial-No Derivative Works 3.0 licence

Diplomacy
Following path of El Salvador

How Ecuador went from being Latin America’s model of stability to a nation in crisis

by Eduardo Gamarra

Ecuador was until relatively recently seen as one of the safest countries in Latin America. That reputation has surely now been destroyed. On Jan. 9, 2024, images of hooded gunmen storming a TV studio were broadcast around the world. It was one of a number of violent incidents that took place that day, including prison riots, widespread hostage-taking, the kidnapping of several police officers and a series of car explosions. I have been tracking how gang crime has affected states in Latin America for 38 years. When I started, few would have projected that Ecuador would descend into the crisis it finds itself today. But the story of Ecuador reflects a wider story of how countries across Latin America have struggled with organized crime and transnational drug gangs and how they have responded. Ecuador now looks set to follow the recent path of El Salvador under President Nayib Bukele’s leadership in trying to crack the gang problem through the use of military and the suspension of democratic norms. In the aftermath of the Jan. 9 violence, Ecuadorean President Daniel Noboa named 22 gangs as terrorist organizations – a designation that makes them legitimate military targets. He has also imposed a 60-day state of emergency, during which Ecuadorians will be subject to curfews while armed forces try to restore order in the streets and the country’s gang-controlled prisons. Ecuador: Victim of geography To understand why Ecuador has become the epicenter of gang violence, you need to understand both the geography and history of Latin America’s drug trade. Ecuador, a nation of 18 million people, is situated between Colombia in the north and Peru in the east and south. Colombia and Peru are the two top producers of cocaine in the world. Further, Ecuador has a near-1,400 mile (2,237-kilometer) coastline through which drugs from the continent can be taken to markets in Europe and the United States. But it wasn’t until the U.S.-led “war on drugs” put the squeeze on cartels in other countries that Ecuador became the preserve of narco gangs. Plan Colombia In the 1980s and 1990s, Colombia was the center of the international illegal drug trade. This is hardly surprising, given that it was the top producer of coca leaves. But beginning in 2000, a joint initiative between Colombian authorities and the U.S., known as Plan Colombia, pumped billions of dollars into an effort to clamp down on the Colombian cocaine trade. While it may have been successful in supressing drug cartels in Colombia itself, it has had a balloon effect elsewhere in the region: Squeeze in one place, the bulge appears elsewhere. In this case, it was Mexico’s cartels that “bulged” first. Over the past decade, there has been a massive growth in Mexican cartels, led by the Sinaloa cartel and the Jalisco Nueva Generación, or Jalisco New Generation. In fact, a study last year found that Mexican cartels were in effect the country’s fifth-largest employer. These cartels came to dominate the illegal drug trade in Latin America, not just for cocaine, but also the trafficking of heroin and more lately fentanyl. Aligning themselves with Clan Del Golfo – a Colombian paramilitary organization formed from the remnants of the gangs dismantled under joint Colombian-U.S. operations – the cartels helped traffic drugs through Ecuador and out of South America. They were joined by European gangs, notably from Albania, who began to show up in Ecuador. The impact locally of these outside gangs has been disastrous for Ecuador. Prior immunity European and Mexican organizations ran local operatives as enforcers and transporters. And these are the people who have become the backbone of Ecuador’s gang problem today. Ecuadorian gangs such as Los Choneros developed as a de facto subsidiary of the Sinaloa and other cartels. The escape from jail of Los Choneros’ leader, Jose Adolfo Macias, on Jan. 7, 2024, set off the latest explosion of violence. But Ecuador’s descent into violence and chaos has also been aided by the very fact that for so long it was immune from the worst of the gang violence of the region. For many years, Ecuador had one of the lowest homicide rates in Latin America – an indicator of low gang activity. As a result, it hadn’t developed a robust police and military response to gangs. Ecuador, in comparison to Colombia, El Salvador and other countries, was seen as a “soft touch” to organized crime bosses. This became ever more the case in 2009 when former President Rafael Correa closed down the U.S. air base in Manta, from where American AWAC surveillance planes had been monitoring and trying to disrupt drug trafficking. Militarizing the response Explaining how Ecuador became the epicenter of drug gang violence is one thing. Trying to find a way out for the country now is another. Across Latin America, countries have employed different models to counter organized crime, with varying degrees of success. Colombia, with extensive U.S. assistance, transformed its military and police and went to war with the cartels. The strategy somewhat successfully dismantled organized crime groups in the country, even if it failed to halt drug trafficking itself or lower the high levels of violence in Colombia. Mexican authorities have tried a different approach and have been reluctant to confront the country’s drug cartels head-on. Instead, Mexico has employed a more hands-off approach, allowing drug gangs to essentially govern their states – the state of Sinaloa is run largely by the cartel that shares its name. Mexican President Andrés Manuel López Obrador has touted this “hugs not bullets” approach, but under it the power of the cartels has only grown. And then there is the Salvadoran model. For many years, El Salvador suffered from organized crime, with the Maras gang behind much of the country’s violence. Then in 2019 the electorate voted in Nayib Bukele on a law-and-order platform. Since then, he has militarized the country, adopted draconian security measures and jailed some 72,000 alleged gang members, often without due process. As a result, El Salvador is now perceived as one of the safest places in Latin America. This has been achieved at the expense of human rights, critics say. But, nonetheless, Bukele’s methods have enormous popular appeal. Path of El Salvador With an unprecedented wave of violence in Ecuador, it looks like President Noboa is looking to take his country down the same path as El Salvador. He has ordered the Ecuadorian military to “neutralize” the criminal gangs that operate in the country. Whether the approach will work is another matter; Ecuador is in a weaker position than El Salvador. Whereas many of the gangs were imported into El Salvador – many members of Maras had been deported from the U.S. – in Ecuador, they are homegrown and have become more sophisticated. Further, Noboa – despite taking office in December – has only 15 months of his presidency left before a general election takes place in May 2025. Yet, the adoption of Bukele’s methods might be seen as an election winner. Like in El Salvador, the majority of Ecuador’s citizens appear ready for an iron fist approach to counter the gangs – even at the expense of some civil liberties. If you speak to the average Ecuadorian, many would no doubt tell you that talk of human rights violations is bogus at a time when they live under the fear of being murdered simply by leaving their homes. As one man told The Associated Press in the aftermath of Jan. 9’s violence, the government needs to employ “a firmer hand, to have no mercy, no tolerance or (respect for) the human rights of criminals.”

Defense & Security
Armed security on a cargo ship in the Red Sea.

America: Seeing red in the Red Sea

by Vivek Mishra

The attacks on shipping in the Red Sea is a test for the US’ Indo-Pacific strategy to deal with China In a House Armed Services Committee hearing in March 2023 on the US posture and security challenges in the Middle East and Africa, it was acknowledged that “…President Biden’s decision to unilaterally and unconditionally withdraw all US forces from Afghanistan has undermined our national security.” The developments of the past few weeks in the Red Sea have made this assertion seem prophetic. Yemen’s Houthi rebels have strategically positioned themselves to exploit less monitored zones in the Red Sea and the broader Arabian Sea. With numerous naval vessels navigating this critical route linking the Mediterranean and the Arabian Sea, countering the Houthi rebels and their assaults on global shipping has become exceedingly challenging for the US. The Houthi rebels have connected these attacks to the ongoing conflict in Gaza, tying the halt in hostilities along shipping lanes to a ceasefire negotiation between Israel and Hamas in Gaza. Their strategy involves increasing attacks on ships and holding them as leverage to prompt the US to pressure Israel for a ceasefire. The timing of the Houthi actions aligns with Israel’s focused operations in southern Gaza and a waning Congressional backing in the US for continuous financial support for overseas conflicts. Tactically, the Houthis see an opportunity to open a third front in the maritime domain, even as the Israeli air defence systems are overwhelmed by combined rocket attacks of Hamas and Hezbollah in the north and south. In an offensive barrage last week, the Hezbollah carried out six attacks in eight hours. In the maritime domain, the Houthis have carried out multiple UAV, rocket and missile attacks targeting a dozen merchant ships in the larger Indian Ocean. Iran has conducted attacks on US and Israeli vessels in the region as well. A recent attack on an Israeli vessel off the west cost of India near Veraval is a red flag for safety and security of the Sea Lines of Communication (SLOC) in the Indo-Pacific. With unmanned aerial vehicles and use of other technological capabilities, the attacks on ships could be rapid, discreet, damaging and, most of all, with little or no accountability. Often, the vulnerabilities associated with international strategic choke points have always been assessed from the perspective of State complicity, resting States’ conviction on limited capacities of non-State actors to exact huge costs. If anything, the Red Sea crisis shows that even with little but calculated external support, non-State actors could indeed significantly disturb the predictability of global supply chains and bring merchandise flow to a halt. The economic impact of increased attacks in the Red Sea is already being felt, as many ships have begun to avoid the route through the Red Sea and prefer the longer route around the Cape of Good Hope in Africa. This has caused worries of delay in the global freight markets and pricing concerns in energy dependent countries beside the security concerns for shipping companies such as Maersk. Since the Israel-Hamas war began, the US Central Command has been active in preventing a slew of UAV attacks by the Houthi rebels. For the US, the situation developing in the Red Sea presents a combination of political, economic and strategic challenges. The ongoing Israeli operation in Gaza has politically isolated the US at the global level as the only country to oppose a UNSC ceasefire resolution. The political heat from the Israel-Hamas war is being felt at home with dwindling youth support for President Biden as presidential elections near. The economic costs of the two wars – one in the Middle East and the other in Ukraine – is already tearing the US Congress apart. At the strategic level, coordinated attacks on international shipping threatens to force a rebalancing of the US force posture in the Indo-Pacific. The US currently has two aircraft carriers positioned in the Middle East since the Israel-Hamas war began. While a strong US military presence in the region may have prevented the war from spreading through the region, any additional and long-time concentration of force posture in the Gulf may be detrimental to Washington’s Indo-Pacific intent. Indeed, America’s Indo-Pacific strategy is being tested in the Middle East through five core ideas. Firstly, the recentring of US forces in the Middle East contradicts the intended pivot towards Asia. Secondly, the attacks orchestrated by the Houthis and Iran highlight the unpredictable threats that can disrupt supply chains in the region. Thirdly, the US faces challenges in executing counterterrorism and counterpiracy efforts in the Indo-Pacific, especially while collaborating with allies. Moreover, integrating the Middle East into an Indo-Pacific connectivity project appears increasingly challenging. Lastly, China’s refusal to join the US in protecting the Red Sea shipping lanes reveals Beijing’s divergent strategy for engaging with the Middle East from that of the US.

Energy & Economics
Page of the book highlighting the words

Disquiet in the world’s middle class

by Homi Kharas

“Originally published by Homi Kharas at Brookings Future Development on 21 November 2023,” “Middle-class life satisfaction rests on two pillars. The first is the idea that hard work and self-initiative will lead to prosperity. The second is that thanks to this prosperity, the children of middle-class families will enjoy even more opportunities for the good life. Both pillars are shaking.” Joining the middle class has been a ticket to the good life for two centuries now, a history I trace in a new book “The Rise of the Global Middle Class.” The American Dream, the glorious years of European reconstruction after World War II, miracle economic growth in Japan and other East Asian countries, Xi Jinping’s great rejuvenation of the Chinese nation, and India’s software revolution each brought hundreds of millions of people into the ranks of the global middle class. Today, thanks to this progress, most of the world, upwards of 4 billion people, enjoy a middle-class or better lifestyle for the first time ever. Yet, across the world there is a clear sense of disquiet in the middle class. In the U.S., Princeton economists Anne Case and Angus Deaton have documented the prevalence of “deaths of despair” due to suicides, opioids, and alcohol poisoning among non-college educated white middle-class males. The Japanese have coined a specific word, karoshi, to describe deaths due to overwork among salaried professionals. China is seeing a campaign of tang ping, or lying flat, to protest the “996” expectations of employers—9 a.m. to 9 p.m. 6 days a week. India ranks 126th out of 137 in the rankings of the 2023 World Happiness Report. What is amiss? Middle-class life satisfaction rests on two pillars. The first is the idea that hard work and self-initiative will lead to prosperity. The second is that thanks to this prosperity, the children of middle-class families will enjoy even more opportunities for the good life. Both pillars are shaking. The first is threatened by the effects of technological change on jobs. The foundations of the second are being undermined by climate change, pollution, and the destruction of nature. For most of history, technology has changed the nature of work by reducing repetitive, routine, and manual labor. During COVID-19 and the ensuing recovery, many workers changed occupations. Those with good jobs, requiring cognitive, non-routine tasks, did better than those engaged in manual, repetitive tasks. There are pathways to high-wage work, but, as my Brookings colleagues Maria Escobari and co-authors have shown, access to these paths is unequal, and that is creating stress and mental health problems for many middle-class workers. Stepping-stone occupations that serve as a bridge between low-and higher-wage occupations, and even high-wage occupations themselves, are increasingly under threat from artificial intelligence. When the Writers Guild of America went on strike in May 2023, they demanded that ChatGPT be used only as a research tool, not for actual script writing, the creative process that is at the heart of their jobs. The wobbly second pillar of middle-class satisfaction is that young people are worrying that the mass consumption of the middle-class is responsible for unsustainable levels of greenhouse gas emissions, pollution and species extinction. On current trajectories, children born today will live in a world that is at least 3 degrees warmer than pre-industrial levels. The impact of such changes, according to the best available science, is terrifying. “Is a middle-class lifestyle consistent with a livable planet? Thankfully, the answer is yes, but only if there is significant change in economic policies.” This science forces the middle class to confront an existential question. Is a middle-class lifestyle consistent with a livable planet? Thankfully, the answer is yes, but only if there is significant change in economic policies. Consider the case of Switzerland, one of the richest economies in the world. The Swiss emit only 5 tonnes of greenhouse gases per person per year, less than one-third the U.S. level. One reason is that Switzerland buys a lot of electricity from France’s nuclear reactors. But on other measures, too, such as building efficiency, moving people on electric trains and buses, and insulating homes, the Swiss middle class outperform many of their peers. True, this is not enough. The 5 tonnes must be reduced to zero by 2050, but Switzerland’s case shows that most of the current levels of carbon emissions are not tied to middle-class standards of living but simply to bad or thoughtless policies in rich countries that can be readily corrected. In similar vein, pollution is a man-made problem, not a necessary corollary of high living standards. In its current form, recycling is not effective. A new concept of a circular economy offers much more promise. The idea is to “design out” waste and pollution, recycle materials and regenerate nature. One of the first problems the circular economy concept is tackling is the issue of plastic packaging. Because of its ubiquity, plastic continues to accumulate in our oceans (and increasingly in our bodies). There are, however, alternative materials that can be used for packaging, and already the European Union is on track to make all packaging recyclable by 2030. A third area of concern is human encroachment into nature. The current global system of food production is based on expanding croplands to grow feed or as pasture for animals, especially cattle and sheep. This system has a double cost. It contributes significantly to greenhouse gas emissions, and it destroys wildlands and biodiversity. The simplest option would be to encourage the middle class to switch to a vegetarian diet. If this magically happened in the world, a land area stretching from Alaska to Tierra del Fuego could be returned to nature. In a less extreme version, if beef and lamb were taken out of our diets, an area the size of North America could be re-wilded. These examples are not offered as realistic policy options in the medium term. They do, however, serve to make a point. If the middle-class is serious about preserving nature, it will require a major change in diet. That could come about through taxes on land-intensive foods or through technology—lab-grown meat is available but only at a higher price point, and it has yet to scale. The common theme in these threats to a middle-class lifestyle is that the values of hard work and personal responsibility that are the hallmark of middle-class success are no longer enough. Policymakers are caught in trying to deliver higher living standards to their citizens and more sustainable living standards for their children. There are long-run strategies where economic growth and sustainability go hand-in-hand, but no countries have yet shown how to manage the transition onto these low-carbon pathways in a rapid, credible way. So the future is uncertain, and the middle-class, which hates uncertainty, will remain disquieted until they are clear about how to best secure the lifestyles and progress to which they have become accustomed.

Diplomacy
President Joe Biden and President Xi shaking hands

Don’t be fooled by Biden and Xi talks − China and the US are enduring rivals rather than engaged partners

by Michael Beckley

There were smiles for the camera, handshakes, warm words and the unveiling of a couple of agreements. But beyond the optics of the first meeting in over a year between the leaders of the world’s two biggest economies, not an awful lot had changed: There was nothing to suggest a “reset” in U.S. and China relations that in recent years have been rooted in suspicion and competition. President Joe Biden hinted as much just hours after the face-to-face talks, confirming that he still considered his Chinese counterpart, Xi Jinping, a “dictator.” Beijing hit back, with foreign ministry spokesperson Mao Ning telling reporters Biden’s remark was “extremely wrong and irresponsible political manipulation.” As a scholar of U.S.-China relations, I believe the relationship between the two countries can be best described as an “enduring rivalry” – a term used by political scientists to denote two powers that have singled each other out for intense security competition. Examples from history include India and Pakistan, France and England, and the West and the Soviet Union. Over the past two centuries, such rivals have accounted for only 1% of the world’s international relationships but 80% of its wars. History suggest these rivalries last around 40 years and end only when one side loses the ability to compete – or when the two sides ally against a common enemy. Neither scenario looks likely any time soon in regards to China and the U.S. How enduring rivalries end China “is a communist country … based on a form of government totally different than ours,” Biden said after his meeting with Xi. That comment gets to the heart of why diplomacy alone cannot reset the U.S.-China relationship. Washington and Beijing are not rivals due to any misunderstanding that can be sorted out through talks alone. Rather, they are rivals because of the opposite reason: They understand each other only too well and have come to the conclusion that their respective world outlooks cannot be reconciled. The same is true for many of the issues that divide the two countries – they are framed as binary win-lose scenarios. Taiwan can be governed from Taipei or Beijing, but not both. Similarly, the East China and South China seas can be international waters or Chinese territory; Russia can be crippled or supported. For the United States, its Asian alliances are a force for stability; for China, they’re hostile encirclement. And both countries are right in their respective assessments. Diplomacy alone is insufficient to resolve a rivalry. At best, it can help manage it. When the US calls, who picks up? Part of this management of the U.S-China rivalry involves finding areas of agreement that can be committed to. And on Nov. 15, Biden and Xi announced deals over curbing China’s production of the deadly drug fentanyl and the restoring of high-level, military-to-military dialogue between the two countries. But the fentanyl announcement is very similar to the one Xi gave to then-President Donald Trump in 2019. The U.S. administration later accused China of reneging on the agreement. Similarly, committing to restarting high-level dialogue is one thing; following up on it is another. History is dotted with occasions when having an open line between Beijing and Washington hasn’t meant a whole lot in times of crisis. In 2001, when a U.S. surveillance aircraft collided with a Chinese jet over Hainan Island, Beijing didn’t pick up the phone. Likewise, during the Tiananmen Square massacre, then-President George H.W. Bush urgently tried to call his counterpart Deng Xiaoping but was unable to get through. Moreover, focusing on what was agreed to in talks also highlights what wasn’t – and is unlikely to ever be – agreed to without a substantial shift in power that forces one side to concede to the other. For example, China wants the U.S. to stop selling arms to Taiwan. But Washington has no intention of doing this, as it knows that this will make the disputed island more vulnerable to Beijing. Washington would like China to end its military displays of strength over the Taiwan Strait; Beijing knows doing so risks seeing Taiwan drift toward independence. American policymakers have long said what they want is China to “change” – by which it means to liberalize its system of governance. But the Chinese Communist Party knows that doing so means self-liquidation – every communist regime that has allowed space for alternative political parties has unraveled. Which is why American attempts to engage China are often met with suspicion in China. As former Chinese leader Jiang Zemin commented, engagement and containment policies have the same aim: to end China’s socialist system. For similar reasons, Xi has shunned attempts by the U.S. to bring China further into the rules-based international order. The Chinese leader saw what happened when Soviet leader Mikhail Gorbachev tried to integrate the Soviet Union into the Western order in the late 1980s – it only hastened the demise of the socialist entity. Instead, Xi calls for a massive military buildup, the reassertion of Chinese Communist Party control and an economic policy based on self-reliance. Actions speak louder … The encouraging words and limited agreements hammered out in the latest meeting between Xi and Biden should also not distract from the actions that continue to push the U.S. and China further apart. China’s show of force in the Taiwan Strait has been sustained for three years now and shows no sign of abating. Meanwhile, Beijing’s navy continues to harass other nations in the South China Sea. Similarly, Biden has continued the U.S. path toward military alliances aimed at countering China’s threat. It recently entered a trilateral agreement between the U.S., Japan and South Korea. And that came two years after the establishment of AUKUS, a security partnership between the the U.S., Australia and the U.K. that has similar aims. Meanwhile, the U.S. administration will continue to tighten the screws on China’s economy through investment restrictions. Biden is well aware that easy flowing money from Wall Street is helping China weather choppier economic waters of late and is keen to turn off the tap. The point of diplomacy This isn’t to say that diplomacy and face-to-face talks are pointless. They do, in fact, serve a number of interests. For both men involved, there is a domestic upside. For Biden, playing nice with China projects the image of a statesman – especially at a time when, due to U.S. positions on Ukraine and the Middle East, he is facing accusations from the political left of being a “warmonger.” And encouraging Beijing to tread softly during the U.S. election year may blunt a potential line of attack from Republicans that the administration’s China policy is not working. Meanwhile, Xi is able to showcase his own diplomatic skills and present China as an alternative superpower to the U.S. and to potentially cleave the Western business community – and perhaps even major European nations – from what he would see as the U.S. anti-China coalition. Moreover, summits like the one in San Francisco signal that both the U.S. and China are jointly committed to at least keep talking, helping ensure that a rocky relationship doesn’t descend into anything more belligerent – even it that doesn’t make them any friendlier.

Diplomacy
Joe Biden at the airport in China with President Xi Jinping

Can US and China Avoid the Thucydides Trap? The Structural Limits to a US-China Reset

by Dr. Stephen Nagy

The meeting at San Francisco between Presidents Joe Biden and Xi Jinping offers a short respite in the broader strategic conflict that both states have been waging since at least 2017. The friends and trade partners of both nations now have an opportunity to employ middle power diplomacy to advocate for their interests and also the moderation of competition. In his book Destined for War: Can America and China Escape Thucydides’s Trap?, Graham Allison provided historical examples of when a status quo power met a rising power and whether and why it resulted in war. Unlike his peer John Mearsheimer, author of the Tragedy of Great Power Politics, who concludes that competition and conflict between the US and China are inevitable due to the structure of the international system, Allison’s book provides a warning to both the US and China that the decisions they make could be positively or negatively consequential, leaving room for agency to be the final arbiter of the fate of bilateral relations. The pre-APEC meeting between President Joe Biden and President Xi Jinping was an invitro international relations experiment testing the premises of Allison and Mearsheimer as to whether US-China strategic competition will be shaped by the agency of leaders or the structure of the system. Superficially, the 15 November 2023 meeting allowed for an agreement limiting the precursors of fentanyl coming into the United States and, importantly, reviving regular talks under what is known as the military maritime consultation agreement. These modest but important agreements followed a throng of high-level cabinet visits to Beijing and reciprocal visits by Wang Yi, China’s foreign minister, that were meant to stabilise US-China relations. These agreements suggest that leaders in both countries can find diplomatic crosswalks to stabilise the relationship in functional areas. It also intimates that other window of cooperation such as climate change, anti-terrorism, transnational disease prevention, and poverty alleviation may be fertile ground for collaboration if leaders choose to move forward. While the modest takeaways from the meeting in San Francisco underscores that agency does have a role in bilateral relations, we should be realistic that they also reflect the deep structural challenges that exist between the United States and China. Moreover, they also represent the intractable nature of the structural challenges in the relationship, placing friends and allies of the United States and major trading partners of China, such as Australia, Japan, Canada, and Southeast Asian nations, with a difficult quandary: How to balance their economic prosperity and stability through a vibrant and beneficial trade relationship with China while maintaining a strong, comprehensive relationship with the United States as it deepens its strategic competition with China? In the US, there is bipartisan consensus that China represents a challenge to US leadership that needs to be dealt with comprehensively. Under the Biden administration, we have seen a systemic, sequential, and allied-first approach to competing with China. It has brought accolades from friends and allies and, predictably, criticism from China that Biden has not only adopted a continuation of policies towards China from the Trump administration, but that his policies are even more severe. The Biden administration has reinforced and reified its alliance partnerships with South Korea and Japan. It then enhanced its commitment to the Quadrilateral Security Dialogue (Quad) and demonstrated substantial leadership in terms of pushing back against Russia’s invasion of the Ukraine. More recently, the Biden administration forged a new trilateral partnership between South Korea, Japan, and the United States, under the so-called Camp David Principles. It also strengthened the quadrilateral security dialogue and its efforts to provide public goods to the Indo Pacific region. And we’ve gradually seen a more coherent AUKUS strategy that aims to create synergy between the UK, Australia, and the United States in the areas of AI research, quantum computing, hypersonic missiles, cyber, and importantly nuclear power submarines. Last, but not least, the adoption of the Chips Act, limiting the sale of sophisticated semiconductor chips to China and the associated technologies, suggests that the United States is not stepping down from its competition with China, but stepping up in the same way that the United States transformed every aspect of its governance following the 911 attacks. Similarly, there seems to be consensus in the Chinese political elite that the US and its allies are intent on containing China and attenuating its development. Xi Jinping’s 20th Workers Party Report at the 20th Party Congress highlighted the concerns China has about its external environment and advocated for strengthening the PLA to deal with separatist forces and external threats, while consolidating it political, social, economic, and ideological systems. Through the Belt and Road Initiative (BRI), the expansion of the BRICS and Shanghai Cooperation Organization, and the advocacy of the Global Development/ Security and Civilization Initiatives, China under the leadership of Xi Jinping is aiming to transform itself, its periphery, and the international system such that all are more conducive to China’s core interests, including preserving its political system. These realities suggest that rather than fostering a reset in bilateral relations, what we are seeing is both China and the United States taking a tactical pause in their strategic competition to amass the resources they need to compete successfully in the Mearsheimer world of great power politics and the maximisation of power. In closed-door discussions on China with Japanese, South Koreans, Australians, Canadians, Southeast and South Asians, as well as Europeans, we hear similar refrains: while China represents a “systemic challenge” in the case of the Europeans and NATO, or is a “disruptive power” in the case of Canada, or as Japan writes in its 2022 National Security Strategy, “the greatest strategic challenge in ensuring the peace and security of Japan and the peace and stability of the international community,” China is also an important and largely irreplaceable economic partner and essential player in dealing with global challenges such as climate change. The question for friends and allies of the United States is how to balance the increasingly difficult and competitive relationship between China and the United States in a way that ensures that they can continue to have strong economic relationships with China while building resilience into their economies and into their economic relationship, such that the economic weaponization of supply chains and the monopolisation of resources cannot negatively affect trading partners of China. Part of these states’ responses to protect their national interests from the structural realities of Sino-U.S. strategic competition will be a middle power diplomacy that aims to shape the competitive nature of the relationship between the US and China. This will be implemented through coordinating their diplomacy and proactively lobbying, insulating, and investing in rulemaking in the realms of security, trade, and international law alongside their like-minded ally the US, but at times also in opposition to the US. This will require investing in diplomatic resources in both the US and China, in the broader Indo-Pacific region, and at the subnational level to forge strong state to state relations to effectively lobby US policy makers to inculcate the interests of allies and friends of the US in their strategic rivalry with China. Similarly, through forging stronger relations with Chinese provincial leaders though trade and investment, middle powers and stakeholders in the US-China strategic competition may be able to have their interests reflected in a moderation of China’s approach to competition with the US.