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Begin New Search Content Type Policy Brief Publishing Institution Center for Strategic and International Studies

31. Sanctions, SWIFT, and China’s Cross-Border Interbank Payments System

Author:
Barry Eichengreen
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
In response to Russia’s attack on Ukraine, the United States and a coalition of cooperating countries imposed harsh financial sanctions on the Russian government, corporations, and individuals.1 These sanctions bar Russian banks from using SWIFT (the Society for Worldwide Interbank Financial Telecommunications) to facilitate cross-border payments, prohibit banks from doing most forms of business with Russian entities, and freeze assets held abroad by the Central Bank of Russia in the form of treasury securities and bank deposits. These developments have led Russia, as well as other countries contemplating whether they might find themselves in the same position, to explore alternatives. Such options could include building a substitute for SWIFT to send instructions regarding cross-border interbank transactions; identifying financial counterparties other than Western banks with which to do international business and platforms other than Western clearinghouses through which to make payment; and finding a vehicle other than the dollar for denominating and executing transactions. Specifically, countries are looking to China, which has large internationally active banks, has created its own clearinghouse for cross-border transactions and is embarked on a campaign to encourage broader international use of its currency, the renminbi.2 This note investigates how far China has gone in creating alternatives to SWIFT, Western banks, and the dollar. It explores whether Russia and other countries might be drawn toward this parallel international financial universe and what economic and political implications this has—for the United States, for its geopolitical rivals, and for global economics and politics. China is making strides in fostering cross-border use of the renminbi and building a renminbi-based interbank payments system that can serve as an alternative to SWIFT and Western clearinghouses. However, these remain somewhat limited alternatives—for the moment. The situation could change faster if lent additional impetus by Western sanctions. Thus, countries such as the United States that employ financial sanctions should prepare for the development of alternative financial arrangements in China and possibly elsewhere. This may mean relying more heavily on nonfinancial measures insofar as financial sanctions eventually become less effective.
Topic:
Economics, Sanctions, Finance, Borders, and Banks
Political Geography:
China and Asia

32. Pushed to Extremes: Domestic Terrorism amid Polarization and Protest

Author:
Catrina Doxsee, Seth G. Jones, Jared Thompson, Grace Hwang, and Kateryna Halstead
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
There has been a significant rise in the number of domestic terrorist attacks and plots at demonstrations in the United States, according to new CSIS data. The result is escalating violence in U.S. cities between extremists from opposing sides, a major break from historical trends. In 2021, over half of all domestic terrorist incidents occurred in the context of metropolitan demonstrations. In addition, the most frequent targets of attacks were government, military, and law enforcement agencies, who are increasingly at the center of domestic terrorism by extremists of all ideologies.
Topic:
Terrorism, Violent Extremism, Polarization, and Domestic Terrorism
Political Geography:
North America and United States of America

33. Economic Security in Emerging Markets: A Look at India, Vietnam, and Indonesia

Author:
Matthew Goodman, Matthew Reynolds, and Julianne Fittipaldi
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
With the outbreak of the Covid-19 pandemic, supply chain resilience has emerged as a policy priority of the United States and its allies. The issue of supply chains has also raised the profile of emerging economies that offer possible alternatives to China as production platforms for multinational firms. This report surveys economic security policy developments in three major emerging economies: India, Vietnam, and Indonesia. It finds that all are attempting to take advantage of this new focus on supply chain resilience, while (to varying degrees) balancing the economic security risks posed by China’s rise. The United States and its allies have an opportunity to work with these emerging economies to shape their decisions about trade, investment, and technology policies in ways that promote mutual economic security and enhance international economic rules and norms.
Topic:
Security, Economics, Emerging Markets, International Trade and Finance, and Markets
Political Geography:
Indonesia, India, Asia, Vietnam, and Asia-Pacific

34. How China’s Human Capital Impacts Its National Competitiveness

Author:
Briana Boland, Kevin Dong, Jude Blanchette, and Ryan Haas
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
How will the strengths and weaknesses of China’s human capital impact national competitiveness? China’s efforts to maintain economic growth, strengthen supply chains, develop strategic science, technology, engineering, and mathematics (STEM) sectors, and secure a modern military edge hinges on the ability to cultivate and utilize human capital. As the United States and other countries increasingly engage in multidomain competition with China, it is critical to start from a clear-eyed understanding of China’s human capital and Beijing’s strategy for nurturing national talent. Investments in higher education, strategic STEM sectors, and military talent demonstrate key areas in which Beijing is focusing on cultivating human capital. However, China must overcome significant obstacles to innovate as it faces substantial demographic pressures, socio-economic inequalities, and challenges to attracting and retaining top talent both domestically and internationally.
Topic:
Economics, Labor Issues, Human Capital, and Strategic Competition
Political Geography:
China and Asia

35. Bridging U.S.-Led Alliances in the Euro-Atlantic and Indo-Pacific: An Inter-theater Perspective

Author:
Luis Simon
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
Although U.S. strategic competition with China and Russia is often presented as a challenge with two separate fronts, this brief argues that the Euro-Atlantic and Indo-Pacific theaters are increasingly linked. Insofar as preserving a favorable balance of power in these two regions hinges largely on U.S. power, and as long as they both continue to exercise a significant pressure on U.S. defense resources, their alliance and deterrence architectures should be looked at from an inter-theater perspective. Thus, optimally managing atwo-front challenge would require a serious effort to bridge U.S.-led alliances in both regions.
Topic:
International Cooperation, Hegemony, Alliance, Strategic Competition, Rivalry, and Strategic Interests
Political Geography:
Russia, China, Europe, Asia, North America, United States of America, and Indo-Pacific

36. The Rise of Far-Right Extremism in the United States

Author:
Seth G. Jones
Publication Date:
11-2018
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
Right-wing extremism in the United States appears to be growing. The number of terrorist attacks by far-right perpetrators rose over the past decade, more than quadrupling between 2016 and 2017. The recent pipe bombs and the October 27, 2018, synagogue attack in Pittsburgh are symptomatic of this trend. U.S. federal and local agencies need to quickly double down to counter this threat. There has also been a rise in far-right attacks in Europe, jumping 43 percent between 2016 and 2017.
Topic:
Terrorism, Violent Extremism, Domestic Politics, and Far Right
Political Geography:
United States

37. Cybersecurity and Stability in the Gulf

Author:
James Andrew Lewis
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
The Gulf has become a flashpoint for cyber conflict. Cyberspace has become an arena for covert struggle, with the United States, Israel and other nations on one side, and Iran and Russia on the other. Iran has far outpaced the GCC states in developing its cyber capabilities, both for monitoring internal dissent and deploying hackers to disrupt or attack foreign targets. Several such attacks over the past two years were likely either directed or permitted by Iranian state authorities. Even if Iran holds back from offensive actions as nuclear talks progress, the growth in Iranian capabilities remains a potential security threat for other Gulf states. The GCC countries have begun to develop their defensive capabilities, but they will need to expand their defenses and collaborate more effectively to deter future threats.
Topic:
Conflict Resolution, Security, Defense Policy, Development, and Science and Technology
Political Geography:
Russia, United States, Iran, Middle East, Israel, and Arabia

38. New Nuclear Suppliers Encouraging Responsible Nuclear Supply by China, Republic of Korea, and India

Author:
Sharon Squassoni
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
Nuclear energy seemed set for revitalization until the accident at the Fukushima Daiichi nuclear power plant in 2011. The accident that melted the cores of three light water reactors raised questions about the costs and risks of nuclear energy in many countries. Some countries have cancelled procurement, others have shut down reactors, and still others have declared a shift away from a nuclear future.
Topic:
Energy Policy, Environment, Natural Disasters, and Nuclear Power
Political Geography:
China, South Asia, India, Asia, and Korea

39. GCC-Maghreb Relations in a Changing Regional Order

Author:
Carolyn Barnett
Publication Date:
08-2013
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
While rulers in the Maghreb and the Gulf have long engaged one an-other, until recently neither region held essential strategic importance for the other. Now, several GCC countries are seeking greater influence around the region, including in the Maghreb. Gulf countries have demonstrated their growing interest in the Maghreb through aid and investment, though aid disbursements have been slow to materialize. Tunisia, Libya, Morocco and Algeria all have delicate relationships with the Gulf that intersect with domestic politics, debates over Islam and authority, concerns about instability, the need for stronger economic growth, and aversion to foreign interference. Promoting constructive GCC-Maghreb relations will be most feasible on the economic front. Successful management of enduring tensions will not ensure political and economic stability, but it will make that stability much more likely.
Topic:
Foreign Policy, Diplomacy, International Political Economy, and Islam
Political Geography:
Middle East, Libya, Arabia, Algeria, Morocco, and Tunisia

40. Innovative Immigration and Border Control Reform

Author:
Stephanie Sanok Kostro and Scott F. Mann
Publication Date:
08-2013
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
Over the last 10 years, the United States placed great emphasis on securing its borders and improving its immigration process. Concerns about terrorism in the shadow of the September 11, 2001, attacks led to the creation of the Department of Homeland Security (DHS) as a means for streamlining and improving the government's ability to protect the United States, its citizens, and its infrastructure inside the nation's borders. From intelligence gathering and sharing to interdiction and apprehension, the goal was to bring all of the essential homeland security agencies in to one federal department and reduce the characteristically disparate and disconnected nature of previous homeland security agencies and responsibilities. Despite attempts to improve efficiency and efficacy, regulating the U.S. border and enforcing U.S. immigration policies remain significant challenges. The complexity of operations required to achieve the stated policy goals of the U.S. government, combined with the sheer volume of border traffic (licit and illicit, human and trade), hampered past attempts at effective border control, and cloud the potential for success of future operational undertakings.
Topic:
Security, Defense Policy, Migration, Terrorism, Immigration, and Infrastructure
Political Geography:
United States