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Begin New Search Topic International Trade and Finance Content Type Journal Article

21. The Strategic Benefits of the Southern Gas Corridor

Author:
Vitaliy Baylarbayov
Publication Date:
04-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
At the end of 2020, the Southern Gas Corridor became fully operational. This marked the completion of a journey that began a decade ago when the government of Azerbaijan and the State Oil Company of the Azerbaijan Republic (SOCAR) took a strategic decision to launch a major natural gas export project. The Southern Gas Corridor is one of the largest and the most expen­sive gas supply projects in the world built to date. In December 2013, SOCAR and its partners signed a Final Investment Decision (FID) to establish a gas pipeline corridor from Azerbaijan through Georgia, Turkey, Greece, and Albania be­fore ending in Italy. A branch pipe­line is now under construction to Bulgaria, which is expected to be completed in the second half of 2021. In July 2018, the project supplied its first gas to the Turkish market and went on to change the dynamics of that country’s gas market, whereby Azerbaijan is now one of its top gas suppliers. On December 31st, 2020, inaugural commercial gas supplies arrived from the Caspian into Europe, signaling the commencement of the Southern Gas Corridor’s full operations. For Azerbaijan, the Southern Gas Corridor provides a major source of revenue unlinked to the global oil market; the project also strengthens Baku’s links with its neighbors and Europe. For SOCAR—as operator of components of the project and investor in all its segments—the project’s success represents a major step in the company’s transition from a national to an international energy company. The Southern Gas Corridor provides new gas supplies to Turkey, Georgia, and Europe and is a platform for in­creased supplies to these markets and also can be extended to reach additional markets in Europe. With the completion of the first stage of the Southern Gas Corridor, Azerbaijan and SOCAR, together with their partners, are examining strategies for the next phase of the corridor’s development.
Topic:
Energy Policy, International Trade and Finance, Natural Resources, and Gas
Political Geography:
Europe, Asia, and Azerbaijan

22. Oil Pipelines in the Silk Road Region Coordination and Collaboration Amidst Competition and Confrontation

Author:
Rodrigo Labardini
Publication Date:
04-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
For centuries, numerous proj­ects have wanted to connect the Caspian Sea to its main markets in the East (China) and the West (Europe). All vie to link en­ergy sources (oil and gas) and goods (commodities and manufactured products) with consumers. Con­temporary pipelines and transport corridors are presented as cost‑effi­cient, faster, and profitable, and thus sound economical alternatives to traditional hauling via tankers. Reviewing the political map, con­tinental pathways between East and West must traverse two regional “choke‑points,” each with three alter­native routes. First, the “Eastern Gap” at the Caspian Sea: Russia, Iran, and the Caspian Sea. The Caspian Sea region also includes Azerbaijan, of course, since it is the only state (together with Russia and Iran) located on its western bank, with routing options via the Caucasus to reach the Black Sea and Anatolia on to Europe. Second, the “Western Gap” at the Black Sea: Russia (again), the Black Sea, and Anatolia. The South Caucasus’ unique geo­graphical location between East and West as well as between Russia and Iran place it at a strategic crossroads of key geopolitical interest. Furthermore, the Caucasus‑Caspian Sea‑Central Asia region (CCCA) today—this corre­sponds more or less to what the edi­tors of Baku Dialogues have called the “Silk Road region”—is merging ever closer with Eurasian and Middle East politics. The politicization of energy and transport—with pipeline poli­tics often dealing with opposing eco­nomic and partisan interests—as well as sanctions against Russia and Iran, also raises the importance of sanc­tions‑free routes. Compounding these issues is the fact that several countries in the region are landlocked, depen­dent on transit states, and vulnerable to the latter’s maneuvers.
Topic:
International Trade and Finance, Oil, Natural Resources, and Silk Road
Political Geography:
Global Focus

23. Beijing’s Long Way to the Gulf Region Oil, Security, Geopolitics

Author:
Fuad Shahbazov
Publication Date:
04-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
Energy cooperation has been a key aspect of growing bilateral cooper­ation between China and the Arab states of the Gulf region for the past several years. Since 1996, China has become a net importer of crude oil and, as the second‑largest en­ergy consumer in the world after the United States, is now the third‑largest importer of oil after the United States and Japan. Therefore, it should not come as a surprise that China is eying a deep and strategic partnership with the states of a re­gion that sits on top of the world’s largest proven crude oil and natural gas reserves. The deepening political and economic cooperation between China and the member states of the Gulf Cooperation Council (GCC) has received increasing atten­tion from the region’s more estab­lished strategic players: foremost the United States, but also the UK as well as the EU and some of its member states. Indeed, the region’s apparent geopolitical challenges— such as the American withdrawal from the Middle East, the escalation of sectarian wars in the region, the outbreak and development of the Syrian conflict followed by the spread of Islamic radicalism and similar threats—have encouraged the Arab states in the Gulf (as well as Iran) to look more to the East for new reliable partners. This has pro­vided China with an opportunity to obtain a foothold in the region, which sits adjacent to the Silk Road region and is therefore of signifi­cant and lasting interest to readers of Baku Dialogues. With the rapid growth of its economy and consequent height­ened energy demands, China is viewed as a potential investor by the oil rich GCC states, each of which needs to diversify its economy. On­going Western sanctions directed against Iran also make China an attractive proposition for Tehran. Although the Chinese interest in, and policy towards, the region is increasingly complex, this new axis between the Gulf region (especially the Arab half) and China has not received much attention from the think tank and academic communities—at least in the West.
Topic:
Security, International Cooperation, International Trade and Finance, Oil, Natural Resources, Hegemony, and Energy
Political Geography:
China, Asia, and Gulf Nations

24. Development or Regression? Eurasia’s Investment Attractiveness

Author:
Stanislav Pritchin
Publication Date:
04-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
In 2021 the countries of Central Asia and the South Caucasus—some call it Eurasia, other the Silk Road re­gion—will celebrate thirty years of independence. Theoretically, this period should have provided suffi­cient time for each to have formed a new economic model, set and at least partially attain long‑term de­velopment goals, and developed a foreign policy model for optimal interaction with investors, in­cluding foreign ones. However, the experience of the post‑Soviet republics under consideration in this essay, which does not aspire to be comprehensive but should rather be considered a prelimi­nary assessment, indicates that independence is neither a prereq­uisite for successful development nor one that centers of achieving a sustainable increase in popular welfare. Despite the fact that in 1991 standards of living and educational and economic attainment in the Soviet republics that are examined in this essay were approximately similar, after three decades of inde­pendent development the countries under consideration have been sig­nificantly stratified in terms of na­tional wealth, types of political and social systems, and the specifics of their economic activities.
Topic:
International Cooperation, International Trade and Finance, Regionalism, and Silk Road
Political Geography:
Europe and Asia

25. Tariffs and Monetary Policy: A Toxic Mix

Author:
Michael D Bordo and Mickey D. Levy
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The ratcheting up of tariffs and the Fed’s discretionary conduct of monetary policy are a toxic mix for economic performance. Escalating tariffs and President Trump’s erratic and unpredictable trade policy and threats are harming global economic performance, distorting monetary policy, and undermining the Fed’s credibility and independence. President Trump’s objectives to force China to open access to its markets for international trade, reduce capital controls, modify unfair treatment of intellectual property, and address cybersecurity issues and other U.S. national security issues are laudable goals with sizable benefits. However, the costs of escalating tariffs are mounting, and the tactic of relying exclusively on barriers to trade and protectionism is misguided and potentially dangerous. The economic costs to the United States so far have been relatively modest, dampening exports, industrial production, and business investment. However, the tariffs and policy uncertainties have had a significantly larger impact on China, accentuating its structural economic slowdown, and are disrupting and distorting global supply chains. This is harming other nations that have significant exposure to international trade and investment overseas, particularly Japan, South Korea, and Germany. As a result, global trade volumes and industrial production are falling. Weaker global growth is reflected in a combination of a reduction in aggregate demand and constraints on aggregate supply.
Topic:
International Trade and Finance, Monetary Policy, Economic Growth, Tariffs, and Industry
Political Geography:
Japan, China, Europe, Asia, South Korea, Germany, North America, and United States of America

26. The U.S.-China Trade War: Is There an End in Sight?

Author:
Simon Lester and Huan Zhu
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Donald Trump was a trade “hawk” long before he became president. In the late 1980s, he went on the Oprah Winfrey show and complained about Japan “beating the hell out of this country” on trade (Real Clear Politics 2019). As president, he has continued with the same rhetoric, using it against a wide range of U.S. trading partners, and he has followed it up with action (often in the form of tariffs). While many countries have found themselves threatened by Trump’s aggressive trade policy, his main focus has been China. As a result, the United States and China have been engaged in an escalating tariff, trade, and national security conflict since July 2018, when the first set of U.S. tariffs on China went into effect and China retaliated with tariffs of its own. In this article, we explore the U.S.-China economic conflict, from its origins to the trade war as it stands today. We then offer our thoughts on where this conflict is heading and when it might end.
Topic:
Economics, International Trade and Finance, Tariffs, Trade Wars, and Donald Trump
Political Geography:
China, Asia, North America, and United States of America

27. GEOGRAPHY, INTERNATIONAL TRADE AND INSTITUTIONS: AN ECONOMETRIC ANALYSIS OF THE BRICS

Author:
Marcelo Corrêa, Luiz Michelo, and Carlos Schonerwald
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
After two decades of intense debate about the determinants of economic development, with authors examining the variables that characterize geography, institutions and international trade, BRICS countries were left behind. Thus, in order to fill this gap, this paper uses econometrics of panel data to analyze the economic performance of these developing nations. Mainstream economists have run into serious problems to deal with these particular determinants within the traditional endogenous growth model, and they have not come up with an agreement, so they keep trying to figure out who is the “winner of this competition”. Empirical evidence shows that there is not a unique explanatorydeterminant, and recognizing which of them can provide the best understandingdepends on the particularities of each case (ROS, 2013).Examining BRICS as a group of countries demonstrates that these specific developing nations share some remarkable features. They are rapidly-growing nations with a vast amount of land and growing participation in international trade. So, empirical tests are feasible and desirable in order to understand their recent development. However, they are also different in many aspects, mostly in terms of institutional characteristics. Thus, our goal is to find out if the econometrics of panel data can shed some light on this ongoing debate.
Topic:
International Political Economy, International Trade and Finance, Trade, Trade Policy, Economic Cooperation, and Geography
Political Geography:
Russia, China, India, South Africa, and Brazil

28. The US and Russian Resource Rivalry in the Context of the Contemporary Venezuelan Crisis Perils of the Rentier Petro-State

Author:
Anurag Tripathi and Girisanker S.B.
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
Venezuela continues to face rampant inflation, poverty and diseases pilling up in light of the US sanctions against PDVSA (Petroleos de Venezuela,S.A), the Venezuelan state-owned Oil Company. Despite the crisis, Russia continues to play a key role in supporting the regime of Nicolas Maduro and sustaining oil production in the country. The research focuses on the role played by Russia is helping the current regime to survive against the US sanctions and the vested interest it brings along with it. The outcome of the research is to find out the role played by Russian oil industries in shaping Russia’s Foreign Policy in Venezuela and to know whether Moscow has any leverage over the energy sector in Venezuela. The paper gives prime importance to the Venezuelan economy and the Geopolitics of oil. The research aims to give a whole new outlook in the field of International Relations by exploring the nuances of oil giants in shaping relations between countries.
Topic:
International Trade and Finance, Oil, Natural Resources, Hegemony, Gas, and Rivalry
Political Geography:
Russia, Europe, North America, and United States of America

29. String of Pearls: Politics of Ports in Indian Ocean

Author:
Khalid Manzoor Butt, Sanwal Hussain Kharl, and Khizar Abbass Bhatti
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Regional security order which is a complex combination of actors and factors is no longer associated exclusively with political and military might. Asia has experienced significant changes in its regional preponderance like economic interdependence and interconnectedness. The phenomenal economic growth of some countries is attributed to its ascendance. The Asian region has become a cauldron of global economic and geopolitical transformation. In this regard, the specter of Maritime Silk Road China with regards to Pakistan Economic Corridor and China Myanmar Economic Corridor are glaring examples enclusively in this region. They have heralded metamorphosis in the pearls of the string by providing an alternate route making Indian Ocean a hub for trans-regional connectivity through multifold alternative routes. History is witnessed for the benefits of certain alteration in the routes such the Panama Canal and Suez Canal. To find such alternation of routes in Indian Ocean Region (IOR) has caused a competition between China and India which can have multiple effects.
Topic:
Security, Diplomacy, International Trade and Finance, Regional Cooperation, Peace, Regionalism, and Silk Road
Political Geography:
Asia and Indian Ocean

30. CPEC and Re-Orientation of China-Pakistan Relations

Author:
Muhammad Ikram
Publication Date:
07-2020
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
The ̳One Belt One Road‘ term refers to ̳The Maritime Silk Road and the Silk Road Economic Belt. This mega initiative was announced by Chinese president, Xi Jiping, in September 2013 during his official state visit to Kazakhstan. Pakistan is most important pillar of this Chinese initiative. Under the One Belt One Road framework, several corridors will be built in future. Whereas, with the development of OBOR, regional economies will boost up to $2.5 trillion and more than 4.4 billion population will get benefits across 65 countries. The Silk Road Economic Belt will link China, Central Asia, Russia, and Europe through the Persian Gulf and South East Asia and Indian Ocean. However, China-Pakistan Economic Corridor will be built to connect the Pakistan's Port Gawadar with Chinese city of Kashagar in autonomous province Xinjiang. The China-Pakistan Economic Corridor project is a game changer for the region and particularly for China and Pakistan, through the development of roads, railways, oil and gas pipe lines. Thus, the project brings wealth and prosperity across the region, particularly in Pakistan. But on the other hand, Pakistan is facing serious internal and external threats from terrorism and extremism since 2001. This work is an attempt to enlighten the prospects of China-Pakistan Economic Corridor (CPEC) and constraints in the way of this mega projects.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, Bilateral Relations, Infrastructure, Belt and Road Initiative (BRI), Peace, Economic Development, and Silk Road
Political Geography:
Pakistan, China, and Asia