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62. A More Strategic Approach to Foreign Direct Investment Policy
- Author:
- Markus Jaeger
- Publication Date:
- 02-2023
- Content Type:
- Policy Brief
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Cross-border investment and trade give rise to both economic gains and economic vulnerabilities. As geopolitical competition is intensifying, governments increasingly resort to restricting cross-border investment and trade. Policies are informed by a desire to limit security risks and secure technological advantages rather than pursue efficiency gains.
- Topic:
- Science and Technology, Foreign Direct Investment, Strategic Competition, and Geoeconomics
- Political Geography:
- Europe, Asia, and Americas
63. The Ukraine War & European Security: How Durable Is America’s Strategy?
- Author:
- Zachary Paikin
- Publication Date:
- 04-2023
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- More than a year after Russia’s invasion of Ukraine, the morale of the United States and its Western allies appears high.1 Spurred into action by Moscow’s act of aggression, NATO appears more united, the EU has seemingly become more of a geopolitical actor, and Ukraine has resisted and repulsed the Russian onslaught to a degree that few initially thought possible. The Biden administration has thus far laudably managed to ramp up assistance to Kyiv without directly confronting Moscow. However, while the current U.S. policy toward Russia and Ukraine may be sustainable for some time, that does not mean it will never run out of road. Sanctions against Russia — a major global economy — have been ramped up to a level previously unseen, but they have not been effective in compelling Moscow to change course. The United States and its allies have yet to agree on what they deem to be an acceptable endgame to the war. Great power or not, Russia will remain a populous, powerful and potentially disruptive actor in Europe. Without clearly and credibly proposing policies that can lower the temperature, and without beginning to envisage what a future European security order might look like, the United States risks prolonging the conflict — with potentially unforeseeable consequences if popular war–weariness continues to grow.
- Topic:
- Foreign Policy, NATO, Sanctions, European Union, Strategy, Military Aid, Regional Security, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, Ukraine, and United States of America
64. Paths to a Ceasefire in Ukraine: America Must Take the Lead
- Author:
- Anatol Lieven
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- Barring an improbable complete victory for Ukraine or Russia, the conflict in Ukraine will end, or more likely be suspended, in the form of a compromise. The fighting is therefore now essentially about the geographical and political lines along which this compromise will be drawn. These will become much clearer once the results of the forthcoming Ukrainian counter–offensive are known, and the aftermath of the offensive will be the time for an intensive diplomatic effort to bring about a ceasefire. Ideally, this compromise should take the form of a peace settlement like Northern Ireland’s in 1999, that would end the war and allow the creation of a stable, consensual and peaceful security order in Europe. More likely, however, is a ceasefire that (as in the cases of Kashmir, Korea, and Cyprus) will freeze the existing battle–line, wherever that runs. Such a ceasefire will in any case be necessary if talks aimed at a formal peace settlement are to take place; and even if such a treaty cannot be reached, such a ceasefire, if far from ideal, might still prove reasonably stable and permanent. Both the U.S. and Ukrainian administrations stated after it began that the war would inevitably end in a negotiated peace. In the first month of the war President Volodymyr Zelensky put forward peace proposals that included suspending the issues of Crimea and the eastern Donbas for future negotiation. Since then, however, both Ukraine and Russia have adopted positions that make any agreement between them exceptionally difficult. Given these circumstances, the United States must play the greatest role in achieving a ceasefire.
- Topic:
- Conflict Resolution, Foreign Policy, Diplomacy, Strategic Engagement, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, Ukraine, and United States of America
65. The Future of European Security
- Author:
- Anatol Lieven
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- In three online sessions in May, the Quincy Institute convened a working group of leading experts on European foreign and security policies to discuss the stance of European countries concerning the war in Ukraine, “de-risking” the relationship with China, and the chances of an autonomous European approach to these issues. The group also discussed the much longer-term possibility of a new security architecture in Eurasia including Russia and China. The meetings of the working group took place under Chatham House rules, whereby participants are not individually cited. The following report therefore reflects a consensus of the group, but not necessarily the views of each individual member. Members of the working group were generally in agreement that as long as present circumstances continue, European countries are expected to take little independent action in the security domain, either individually or collectively. Genuine moves towards military self–sufficiency remain inhibited by resistance to pooling resources, and the fact that it is much cheaper simply to rely on the United States for defense. In addition, Washington has never brought really heavy pressure on the Europeans to provide for their own security, because the U.S. establishment and military–industrial complex see great advantages in keeping them in a position of dependence, even if this is extremely costly for U.S. taxpayers.1 Consequently, the European countries (which in this case really means France and Germany) are highly unlikely to adopt a determined autonomous initiative for a ceasefire in Ukraine. On the other hand, opinion was divided on how far European countries will be willing to follow the United States towards the economic and military containment of China, at least if this seems to involve them in serious losses and dangers. It was also pointed out that present circumstances will not last forever, and may not even last for very long. Several possible occurrences could change European attitudes. These include developments on the battlefield in Ukraine; a shift in Sino-U.S. relations towards actual conflict; a new global economic crisis; or a drastic acceleration of the effects of climate change. Given these potential developments, the group concluded that the United States should refrain from putting excessive pressure on Europe in areas where this could cause both severe economic damage and a backlash in European public opinion. This means, in the first instance, putting pressure on Germany to break off important economic links to China. In future, however, it could also mean U.S. refusal to support a ceasefire in Ukraine even if a majority of European states and populations desired one. U.S. policymakers should remember that the war in Ukraine is taking place in Europe, not North America and that the United States has a vital interest in maintaining Europe’s prosperity and democracy. The United States must not endanger them in the pursuit of its own narrow and short–term geopolitical goals. Finally, the group agreed that international affairs experts must not allow themselves to become trapped by contemporary issues and assumptions, because they might prove (as has often been the case) to be relatively temporary and contingent. Precisely because the situation today is so dire, it is important both to examine the past to see how we got to where we are, and to think imaginatively and independently about ideas for a better international system for our descendants.
- Topic:
- European Union, Military Spending, Strategic Autonomy, Regional Security, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
66. A New Horizon in U.S. Trade Policy: Key Developments and Questions for the Biden Administration
- Author:
- Trevor Sutton and Mike Williams
- Publication Date:
- 03-2023
- Content Type:
- Policy Brief
- Institution:
- Center for American Progress - CAP
- Abstract:
- This issue brief examines some of the key trade initiatives pursued by the Biden administration to date. It then sets out key questions facing U.S. trade policy in a global environment defined by volatility and renewed ambition to tackle the great challenges of the 21st century, such as climate change, inequality, and great power competition.
- Topic:
- Foreign Policy, Climate Change, Treaties and Agreements, European Union, Inequality, Economy, Trade Policy, and Strategic Competition
- Political Geography:
- Europe, North America, Asia-Pacific, United States of America, and Americas
67. US-EU climate change industrial policy: Pulling in different directions for cooperation, competition, and compromise
- Author:
- Cordelia Buchanan Ponczek
- Publication Date:
- 08-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- The United States and the European Union agree on prioritizing policies to address climate change, which includes securing supply chains for components essential to low-carbon technology. Despite this agreement, their policies to address climate change and low-carbon technology could foster competition. The US Inflation Reduction Act (IRA) reflects the competitive advantage of the US to draw in the best talents, capabilities, and resources from outside sources. This leads to a disconnect between the industrial policy benefits of the IRA within the US and the potential competitive impact the IRA has on US relationships with allies. The EU’s policies are shaped by the bloc’s desire to respond to external actors—including China and Russia—while protecting the common market and building up its internal capability to ensure security of supply. This is complicated by individual member-state objectives. The 2024 US presidential election could bring change: A Republican administration might not share the EU’s outlook on climate change, the need for government intervention, or even the close transatlantic relationship seen during the Biden administration.
- Topic:
- Climate Change, Governance, European Union, Economic Policy, and Geoeconomics
- Political Geography:
- Europe, Finland, and United States of America
68. The geoeconomics of the hydrogen era: Towards a new global energy architecture
- Author:
- Timo Behr
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Clean hydrogen is crucial for ensuring the transition to a carbon-neutral economy, and large quantities of it will be needed in the future. The transition from a hydrocarbon to a hydrogen economy will have significant geopolitical and geoeconomic consequences. Due to its unique properties, hydrogen will not become the “new oil”. While oil and gas have encouraged a concentration of power – in the hands of producer countries, major oil companies, and around strategic choke points – hydrogen will favour a dispersion of power. The transition to a hydrogen economy will see strong competition over technologies, raw materials, and regulatory standards. Hydrogen has the potential to make the world energy trading system more balanced, more democratic, and less prone to price fluctuations, but it could equally lead to fragmentation, inadvertently contributing to current geopolitical divisions. For the EU and Finland, the transition towards a hydrogen economy presents both challenges and opportunities. Concerted action and active diplomacy will be needed to prevent Europe from being overtaken by others and slipping into new dependencies.
- Topic:
- Climate Change, Governance, Hydrogen, Energy, and Geoeconomics
- Political Geography:
- Europe and Finland
69. The role of space technologies in power politics: Mitigating strategic dependencies through space resilience
- Author:
- Markus Holmgren
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Space activity is experiencing a boom with the scope and importance of space technologies and services fuelling rapid growth upon growth. While the space boom is catalysing transferral of the ownership of previously public infrastructure and capabilities to corporate control, many space technologies have critically important military and civilian applications. As the importance of space sectors grows, both public and private cyberoperations targeting space infrastructure proliferate. This makes it more difficult to attribute the perpetrators of cyber operations. The United States’ lead in the space sector is increasing. Starlink, a satellite internet constellation operated by the US-based company SpaceX, will serve to bind many nations to one more US-controlled communication architecture. As a result of the implications of space technologies for comprehensive security, building space resilience is becoming paramount. States must diversify their supply of space-related services and tighten cooperation with like-minded states.
- Topic:
- Security, Foreign Policy, Defense Policy, Economic Policy, and Geoeconomics
- Political Geography:
- Europe and Finland
70. Outlining EU-Turkey relations: The impacts of the Ukraine war and Turkey’s crucial elections
- Author:
- Toni Alaranta
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Turkey-EU relations are affected by Russia’s war on Ukraine and its consequences for the EU’s place in the world. Another major factor is Turkey’s presidential and parliamentary elections held in May, which are defining the prospects for the country’s democratic future and its foreign policy. The second round of the presidential election took place on 28 May. The re-election of President Erdoğan indicates that the unilateral foreign policy and strained relationship with the West is likely to continue, although there is a chance of a short-term burst of cooperation due to Turkey’s economic troubles. There are increasingly divergent views about Turkey in the West, and the EU’s future relationship with Turkey needs to accommodate these different conceptualizations of the country as a state actor. The EU needs to be flexible in the coming months and to find ways to engage with Turkey in a more fruitful manner, irrespective of the election results.
- Topic:
- Bilateral Relations, Elections, European Union, and Russia-Ukraine War
- Political Geography:
- Europe and Turkey
71. EU reform is back on the agenda: The many drivers of the new debate on treaty change
- Author:
- Steffen Müller
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Institutional reform is back on the European Union’s agenda, with the European Parliament, the Commission and large member states like Germany and France all supporting changes to the way the EU operates. While opening the EU treaties is not without political risk and there is still no consensus on doing so among member states, this momentum for reform is unlikely to wane in the near future. There are several reasons for the new reform drive. In particular, reforms are intended to strengthen the EU’s democratic credibility, to prevent institutional erosion in a time of permanent crisis, to make the EU more resilient to blockades by individual governments, and to lay the groundwork for the accession of new member states. While some of the proposed changes could be achieved without treaty change, the number and variety of issues at stake entails the risk of getting bogged down in parallel debates and missing opportunities for package deals. The most efficient way to deal with the EU’s reform needs would therefore be the launch of a treaty convention.
- Topic:
- Treaties and Agreements, Reform, and European Union
- Political Geography:
- Europe
72. Europe’s policies for a green transition: The European Commission’s geopolitical turn and its pitfalls
- Author:
- Marco Siddi
- Publication Date:
- 05-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- The European Commission has published numerous policy documents concerning the European Green Deal and the energy transition since 2019. Several have an important foreign policy component. Following the Covid-19 crisis and especially Russia’s attack on Ukraine in February 2022, the discourse and policy objectives of these documents have taken a ‘geopolitical turn’, meaning that the EU’s security, interests and cooperation with Western allies have become more prominent than before. The REPowerEU plan, the new External Energy Strategy and the Green Deal Industrial Plan exemplify this shift by combining green and geopolitical objectives. The EU’s geopolitical turn in external energy politics involves several risks. Third countries could perceive some policies as ‘green protectionism’ or ‘green colonialism’. Domestically, some business actors dislike restrictions on imports of critical raw materials and green technology from abroad, whereas additional mining in the EU may not be compatible with biodiversity and environmental protection. At the same time, ‘offshoring’ mining outside the EU may transfer the ecological consequences to contexts with laxer regulation.
- Topic:
- Geopolitics, European Commission, and Green Transition
- Political Geography:
- Europe
73. The changing dynamics of the G7, G20 and BRICS: Informal multilateral cooperation is increasingly important in an era of strategic competition
- Author:
- Juha Jokela and Alana Saul
- Publication Date:
- 04-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Increasing strategic competition among major powers has had a negative effect on the efficacy of formal multilateral cooperation. This has also been reflected in informal forums such as the G7, G20 and BRICS. Yet some new dynamics have emerged. Since Russia was excluded from the G8 in 2014, the G7 has become a key forum for Western cooperation. Russia’s full-scale invasion of Ukraine has further geared the group towards a stronghold of Western economies and democracies. The BRICS group has continued to meet at leaders’ level, and has consolidated its position. Despite variation in its members’ interests, the group aims to balance the G7, and its importance for China and Russia has been elevated. Currently, the G20 constitutes a forum in which strategic competition can potentially be managed. Along with the G7 and BRICS countries, other powers play an increasingly notable role. The dynamics of the group also displays an increasing “Southernization” of informal multilateral cooperation.
- Topic:
- European Union, Democracy, Multilateralism, and Strategic Competition
- Political Geography:
- Russia, China, Europe, Asia, and United States of America
74. Russian aggression and the European Arctic: Avoiding the trap of Arctic exceptionalism
- Author:
- Harri Mikkola, Samu Paukkunen, and Pekka Toveri
- Publication Date:
- 04-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- In its efforts to limit the Western defence posture in the Arctic, Russia has successfully exploited the “High North, low tension” mantra and the notion of the Arctic as an exceptional region of peace and cooperation. At the same time, Russia has managed to build its position of relative strength in the Arctic through systematically developing its military capabilities. To create a threat of escalation, Russia has also used offensive military exercises and disruptive hybrid operations against the Western Arctic states in the region. Arctic economic resources and military assets continue to play an essential role for Russia in pursuing its strategic goals, and for its ability to carry out acts of aggression. Through regional cooperative practices, the West has unintentionally facilitated this capacity. The West has limited its military activity in the Arctic to mitigate tensions. This has been a one-sided effort. The Western Arctic states should thus focus on building comprehensive deterrence in the region.
- Topic:
- Security, Defense Policy, Military Affairs, and Deterrence
- Political Geography:
- Russia, Europe, and Arctic
75. The war-induced exodus from Russia: A security problem or a convenient political bogey?
- Author:
- Margarita Zavadskaya
- Publication Date:
- 03-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Since 24 February 2022, around 800,000 Russians have left Russia in reaction to the full-scale invasion of Ukraine. The largest proportion of new migrants was accepted by Kazakhstan, Georgia, Turkey, and Armenia. War-induced migration should be handled like any other migration, whether it involves asylum-seekers, economic migrants, or repatriates. Excessive politicization and fearmongering around migration, including political refugees and political oppositionists, is counterproductive, as it feeds into Kremlin propaganda and belligerent narratives. While there may be concerns about espionage or saboteurs, the primary focus should be on the socio-economic impact of Russian immigration. For the receiving states, especially in the post-Soviet space, the Russian migrants pose a socio-economic challenge rather than a political one. With an increasing probability of cross-border repression – persecution or intimidation of political migrants abroad – it is essential that the EU adopts a consistent response towards political migrants, including those from Russia.
- Topic:
- Security, Refugees, Borders, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, Ukraine, and Eastern Europe
76. Russia’s regime transformation and the invasion of Ukraine: From a failed blitzkrieg to war as the new normal
- Author:
- Jussi Lassila
- Publication Date:
- 02-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Russia’s increasingly dictatorial and Soviet-nostalgic political leadership sees the invasion of Ukraine not only as a necessity when it comes to prevailing in the conflict with the West, but also as a chance to break free from Western influences. Vladimir Putin is acting as a referee in the elite’s hidden competition, which has been transformed into open rivalry in the context of the war. The competition over who is the most loyal to Putin’s war policy radicalizes the political discourse throughout. The Kremlin’s key challenge is to maintain the balance between citizens’ political apathy and the mobilization of society required in times of war. Civic passivity is central to the regime’s security, while justifying the continuation of the poorly progressing war requires an increasing militarization of society. The Russian public’s approval of the war has gradually diminished, and efforts to mobilize society in revenge for perceived losses have not changed the trend. Hence, Russia’s poor military success is thus far the fastest way to vitiate the legitimacy of Putin’s war regime.
- Topic:
- Security, Authoritarianism, Vladimir Putin, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine
77. Centre-right parties in Germany and Sweden: Challenges and strategies in a changing political landscape
- Author:
- Sanna Salo and Tuomas Iso-Markku
- Publication Date:
- 02-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Centre-right parties have played a central role in stabilising European party politics and advancing European integration, but the increased fragmentation of party systems and the rise of the radical right present serious challenges to them. The way that centre-right parties respond has important implications for domestic and EU politics alike. Many European centre-right parties have become divided on their political profile and programme, debating between leaning towards the progressive-liberal or the conservative-authoritarian end of the political spectrum. In Germany, the rise of the radical-right AfD has fuelled disagreements within the CDU/CSU and generated demands to sharpen its profile. However, this has thus far not led to major changes to the CDU/CSU’s platform, as it is also challenged from the political centre by the SPD and the Greens. In Sweden, the Moderates have clearly reshaped their political agenda in the last decade, focusing on immigration and law-and-order issues, as well as adopting positions and rhetoric reminiscent of the SD. This shift culminated in the formation of a Moderate-led coalition government supported by the SD in late 2022.
- Topic:
- Politics, European Union, and Political Parties
- Political Geography:
- Europe, Germany, and Sweden
78. Mexico’s domestic decay: Implications for the United States and Europe
- Author:
- Lauri Tahtinen
- Publication Date:
- 01-2023
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- President Andrés Manuel López Obrador (AMLO) has challenged Mexico’s democratic institutions, including the electoral commission INE, and relies on the military to run sectors of the economy and to provide internal security. Recognizing the continuing strategic importance of its southern neighbor, the United States is attempting to “friend-shore” American industry to Mexico despite trade disputes. Mexico’s economic convergence with the US is giving way to ideological divergence. In the past year, Mexico has called NATO’s stance on Ukraine “immoral” and openly aligned with the leftist, anti-US dictators of Cuba, Nicaragua, and Venezuela. Mexico’s internal development and shifting external stance could spark a return to a United States focused on the protection of its 19th-century borders instead of its 20th-century global footprint. European attention to the future of Mexico can help diversify the country’s trade and other partnerships, as well as shine a light on its democratic decay.
- Topic:
- Security, Defense Policy, Democracy, Europe, and Economic Policy
- Political Geography:
- Europe, Latin America, North America, Mexico, and United States of America
79. New Frontiers: Estonia’s Foreign Policy in Africa
- Author:
- Kristin Adeoti
- Publication Date:
- 10-2023
- Content Type:
- Policy Brief
- Institution:
- International Centre for Defence and Security - ICDS
- Abstract:
- Estonia’s renewed foreign policy engagement in Africa holds a historical foundation proving that the country’s approach to diplomacy is a gradual development and a work in progress. In recent years, Estonia has taken several strategic steps to enhance its ties with African nations across the realms of diplomacy, security, economic relations, business partnerships, development cooperation, and humanitarian aid – and has already had some success stories. This drive reflects both an ambition and a commitment to building stronger bonds between Estonia and Africa. To strengthen ties with African states, Estonia must commit to continuous engagement on the levels of government, businesses, and people-to-people cooperation, while acknowledging the current challenges and limitations. Such a comprehensive approach – albeit a demanding endeavour involving multiple stakeholders – would foster mutual trust, forming the basis for genuine partnerships and sustainable progress. Today, it is of essence to recognise the immense potential that this relationship promises. Demographic growth, rapid economic development, and expanding IT markets on the continent boost its global influence. As Africa gains more weight in international affairs, Estonia can engage in a mutually beneficial exchange. Africa’s prospective influence and Estonia’s existing expertise lay the foundation for a partnership that will fuel innovation and drive progress.
- Topic:
- Security, Foreign Policy, Diplomacy, and Economics
- Political Geography:
- Africa, Europe, and Estonia
80. In a State of Denial: The Air War in Ukraine
- Author:
- Francesca Verville and Catarina Buchatskiy
- Publication Date:
- 10-2023
- Content Type:
- Policy Brief
- Institution:
- International Centre for Defence and Security - ICDS
- Abstract:
- Ukraine’s ability to repel one of the world’s leading military powers has surprised the world. Since the full-scale invasion in February 2022, neither Russia — despite its superiority in numbers and capabilities — nor Ukraine has been able to establish air superiority. With fewer and less capable air domain assets, Ukraine has instead been obliged to adopt the less costly and inherently defensive strategy of ‘air denial.’ However, for it to remain successful will require Ukraine to sustain continuous air defence operations and the West to commit to a steady supply of military assistance. Mutual air denial is essentially an attritional form of warfare from which Russia is likely to draw greater benefits and a strategy which forces Ukraine to make difficult choices regarding the targets it wants to deny. The F-16, albeit not a silver bullet, offers the prospect of enabling Ukraine’s air forces to more effectively exploit openings in Russia’s defences and to strike Russian forces and their logistics. However, unlike previous provisions of Western military assistance, the decision to give Ukraine F-16s moves past the more short-term view of helping it meet the immediate needs of the war. The effort spent training Ukrainian pilots, ground crews, and logisticians will have long-term value in supporting Ukraine’s air defence needs and deterring any renewed Russian aggression.
- Topic:
- Air Force, Armed Conflict, and Russia-Ukraine War
- Political Geography:
- Russia, Europe, and Ukraine