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41. Creating an Enabling Environment for Sustainable Water Infrastructure Financing

Author:
Conor M. Savoy and Janina Staguhn
Publication Date:
05-2022
Content Type:
Commentary and Analysis
Institution:
Center for Strategic and International Studies
Abstract:
Water presents a significant global development challenge as crises over resources and access to clean water are becoming more extreme due to climate change. To reach the most disadvantaged communities in rural areas, adequate infrastructure is going to be integral. It is estimated that water infrastructure will require an additional $22.5 trillion by 2050, and to achieve Sustainable Development Goal (SDG) 6, financing would need to triple to $114 billion per year. As with other forms of infrastructure, water requires more than simply building reservoirs, pipes, and holding tanks. For true sustainable infrastructure, donors and local governments should also invest in support to maintain infrastructure and create a regulatory environment that enables continued improvement. To successfully finance water infrastructure, there must be an understanding of what the current financing landscape looks like and how the United States, its Group of Seven (G7) allies, and multilateral partners should prioritize financing, especially on a local level.
Topic:
Environment, International Cooperation, Water, Infrastructure, and Sustainability
Political Geography:
North America, Global Focus, and United States of America

42. What Does $40 Billion in Aid to Ukraine Buy?

Author:
Mark F. Cancian
Publication Date:
05-2022
Content Type:
Commentary and Analysis
Institution:
Center for Strategic and International Studies
Abstract:
Congress has approved $40 billion in aid for Ukraine and other countries affected by the conflict―the sixth aid package since the war began. A major change is that this package looks ahead months rather than weeks. The aid package provides $19 billion for immediate military support to Ukraine, continuing the effort that has been vital to sustaining Ukrainian resistance, and $3.9 billion to sustain U.S. forces deployed to Europe. The package also contains about $16 billion for economic support to Ukraine, global humanitarian relief, and a wide variety of international programs as well as $2 billion for long-term support to NATO allies and DOD modernization programs. Although some elements of the aid package will be available quickly, many will take years to fully implement. This raises questions about why long-term elements could not have gone through the regular congressional authorization and budget processes.
Topic:
International Cooperation, Military Strategy, Military Spending, and Military Intervention
Political Geography:
Russia, Europe, Ukraine, North America, and United States of America

43. 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

44. The Pillars Necessary for a Strong Domestic Semiconductor Industry

Author:
Sujai Shivakumar, Charles Wessner, and Thomas Howell
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
All major U.S. defense systems and platforms rely on semiconductors for their performance, and the erosion of U.S. capabilities in microelectronics is a direct threat to the United States’ ability to defend itself and its allies. The COMPETES and USICA legislation, currently being reconciled in Congress, represents a national strategy to secure U.S. competitiveness and national security in the twenty-first century. Both the House and Senate legislation call for $52 billion to support U.S.-based semiconductor research and production. They also authorize several programs to both expand U.S. semiconductor fabrication capacity and support the continued research and development (R&D) of advanced chips. The key question is how these intentions can best be turned into reality. There are several challenges that the domestic semiconductor industry confronts, such as international competition, capital investment requirements, workforce needs, gaps in the supply chain, and the shortfall in venture capital funding and technical support needed to enable commercialization of promising technologies.
Topic:
Security, Military Strategy, Innovation, Industrialization, and Defense Industry
Political Geography:
North America and United States of America

45. The Challenge of European Political Will

Author:
Rachel Lutz Ellehuus and Seth G. Jones
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
In this follow-on report to 2021’s Europe's High-End Military Challenges: The Future of European Capabilities and Missions, the CSIS Europe, Russia, and Eurasia Program and International Security Program examine the other side of the coin of European military effectiveness: the political will of European countries to conduct military missions and operations. The report identifies the endogenous and exogenous factors constraining or increasing political will and maps them onto six country case studies. Four prototypes of political will emerged from the analysis: global partners, international activists, constrained partners, and minimalists. The report then assesses the political will of European allies and partners to conduct fifteen types of military missions and operations worldwide, from peacekeeping to large-scale combat. It concludes with a summary of key findings. First, it finds that internal and external factors—such as strategic culture and alliance dependence, respectively—will continue to constrain European political will in many cases, even after the Russian invasion of Ukraine. Second, European states are more likely to have the political will to engage in military missions at the lower end of the conflict spectrum (such as maritime patrol missions) and less likely at the higher ends of the spectrum, except in cases of significant collective or national defense.
Topic:
Security, Defense Policy, International Cooperation, Politics, Military Strategy, Regionalism, and Intervention
Political Geography:
Russia, Europe, and Ukraine

46. U.S. Defense Posture in the Middle East

Author:
Seth G. Jones and Seamus P. Daniels
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
There are growing calls for a decrease in the U.S. military presence in the Middle East. Proponents of a major reduction of forces argue that it is necessary because of growing competition with China in the Indo-Pacific and Russia in Europe, a declining U.S. reliance on Gulf oil and gas, a reduced threat from terrorist groups, and a need to focus on diplomacy rather than military force. To inform the debate over the United States’ military presence in the Middle East, this report assesses three posture options for U.S. forces in the region. This report finds that the United States should keep a notable but tailored presence in the Middle East to contain the further expansion of Chinese and Russian military power and to check the actions of Iran and terrorist organizations that threaten the United States and its allies and partners.
Topic:
Security, Defense Policy, Military Strategy, Hegemony, and Rivalry
Political Geography:
North America and United States of America

47. 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

48. 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

49. 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

50. U.S. Strategy: Rebalancing Global Energy between Europe, Russia, and Asia and U.S. Security Policy in the Middle East and the Gulf

Author:
Anthony H. Cordesman
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
The war in Ukraine has already shown how dangerous it is for the U.S. to assume that it can rebalance its forces to one region and count on a lasting peace or detente in others. It now is all too clear that U.S. strategy must continue to focus on Europe as well as China. What is less clear is the extent to which the Ukraine War is an equal warning that the U.S. must have a truly global strategy – and one that continues to focus on other critical regions like the Middle East. The sudden escalation of the Ukraine crisis into a major regional conflict and the need for political and diplomatic support in the UN as well as for sanctions are warnings that much of the U.S. success in deterrence and defense lies in creating long-term global diplomatic and political support as well as true and lasting strategic partnerships.
Topic:
Security, Energy Policy, International Trade and Finance, Hegemony, and Strategic Interests
Political Geography:
Russia, Europe, Middle East, Asia, North America, and United States of America

51. Making Energy Resilient: State Strategies, Progress, and Opportunities

Author:
Morgan Higman
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
Amidst energy transitions and the rising impacts of climate change, resilience is a growing part of state energy strategies. But there is relatively little consolidated information describing what states are doing to build adaptive capacities in the power sector. This report fills this gap. It examines how resilience is addressed in planning and policy resources from a selection of representative states. These resources describe anticipated hazards and vulnerabilities, use-cases for emerging clean energy technologies, and broader efforts to create new resilience institutions and authorities. Though resilience garners considerable policy attention, most state initiatives are not guided by well-defined performance goals or measures or a plan that provides an overarching vision for grid resilience. This paper highlights challenges in these areas and describes new, innovative, and replicable approaches to promote more complete and robust resilience strategies.
Topic:
Climate Change, Energy Policy, Governance, Renewable Energy, Resilience, and Strategic Interests
Political Geography:
Global Focus

52. 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

53. The Coming Storm: Insights from Ukraine about Escalation in Modern War

Author:
Benjamin Jensen and Adrian Bogart
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
Based on three crisis simulations held in late March 2022 with think tank fellows, military planners, and congressional staffers, The North Atlantic Treaty Organization (NATO) will likely struggle to address escalation vectors almost certain to push the current war in Ukraine beyond the country’s borders. This paper captures key insights from across these simulations based on two triggering events: (1) a Russian surgical strike on a NATO logistics hub used to provide weapons to Ukraine in southeast Poland, and (2) Russian use of chemical weapons along the Polish border while simultaneously mobilizing to threaten the Baltics. As the conflict crossed a key threshold and risked becoming a regional war, most participants found a natural pull to escalate in each scenario despite limited expectations of achieving a position of competitive advantage. Analyzing how individuals and teams approached decision making provides insights on rethinking escalation models in the twenty-first century and taking advantage of new concepts and capabilities to better support signaling during a crisis.
Topic:
Security, Military Strategy, Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

54. Localizing Humanitarian Action in Africa

Author:
Mvemba Phezo Dizolele, Kurtzer Jacob D., and Hareem Fatima Abdullah
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
The international humanitarian community is increasingly focusing on the need for local and national actors to lead humanitarian response and recovery efforts in conflict-affected or disaster-prone regions, especially in the Global South. Local and national actors responding to crises remain severely underfunded, particularly in Africa, where civil society organizations (CSOs) receive insufficient funding from African and international actors alike. African funders reportedly directed 9 percent of large gifts to African CSOs between 2010 and 2019, while non-African philanthropists provided 14 percent of their funding to these groups. The United States is the world’s largest foreign assistance donor, having contributed $35.5 billion in overseas development assistance (ODA) in 2020. Much of this aid goes to sub-Saharan Africa, including $8.5 billion to 47 countries and 8 regional programs in 2020. Yet national and local organizations receive little of this funding directly. At the same time, Washington has repeatedly signaled a commitment to the “localization” of humanitarian aid, or the shift of decisionmaking power, program implementation, and resources to local and national actors. Yet localized humanitarian assistance in Africa has failed to materialize. Bureaucratic and regulatory hurdles, as well as geostrategic calculations, pose a challenge to localization efforts. African voices are excluded from the decisionmaking landscape—in donor discussions and localization efforts themselves—resulting in a gap in cultural competency. The conversation on localization in Africa cannot be limited to the African continent; it must occur in donor capitals, with African voices leading the dialogue. To achieve sustainable localization, the U.S. and African policy landscapes should resolve bureaucratic obstacles and shift an exclusionary aid paradigm to one that is inclusive and builds on existing successes.
Topic:
Security, Humanitarian Aid, Humanitarian Intervention, and Humanitarian Crisis
Political Geography:
Africa

55. Russia’s Ill-Fated Invasion of Ukraine: Lessons in Modern Warfare

Author:
Seth G. Jones
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
Russia has failed to achieve most of its objectives in Ukraine because of poor military planning, significant logistical problems, low combat readiness, and other deficiencies, which undermined Russian military effectiveness. These and other challenges—including Ukrainian military efforts and Western aid—severely impacted Russian air, ground, cyber, and maritime operations. Russia’s failures will force the Russian military to fundamentally rethink its training practices, organizational structure, culture, logistics, recruitment and retention policies, and planning efforts. Nevertheless, Russia is still attempting a de facto annexation of parts of eastern and southern Ukraine that it controls.
Topic:
Security, Military Strategy, Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

56. Strengthening a Transnational Semiconductor Industry

Author:
James Lewis
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
If data is the new oil, it could be said that chips are the new steel—a fundamental component of national power similar to the foundational role steel production played in the industrial age. As such, semiconductor chips are a natural focus for government intervention and support to accelerate growth and build secure supply chains. The specific goals for U.S. semiconductor policy are to increase reliability and trust in supply, reinforce all elements of chip-making capacity, and reduce China’s role in the supply chain. Chip production is based on complex, globally distributed, specialized supply chains involving many stages in production, including specialized materials, production equipment, design and related software, fabrication, testing, and packaging. In some stages of production, labor costs are important; in others, it is capital costs because a cutting-edge fabrication plant, or fab, can cost more than $12 billion. Taiwan, South Korea, the United States, Japan, Singapore, and China are the leading chip-producing nations. There are also important facilities (often subsidiaries of a leading producer) in Europe, Southeast Asia, South America, and Israel. This global distribution has led some to push for greater production in the United States, but trying to “reshore” a global supply chain spread across many countries would be counterproductive if the goal is a reliable and more productive supply chain. The problem is China, not global production. The politics of the chip industry are generally favorable to the United States. One leading producer, South Korea, is a treaty ally and faces less risk of disruption from China than does Taiwan. Another leading producer, Japan, is one of the most important U.S. security partners and, with the United States, dominates the production of semiconductor manufacturing equipment (SME). ASML, another leading producer of SME, based in the Netherlands, is also an important ally. Singapore, while it would prefer not to be caught in a battle between giants, is also a dependable partner. These countries share democratic values and in many instances are treaty allies. The global distribution of chip-making in countries friendly to the United States is an advantage.
Topic:
Science and Technology, transnationalism, Emerging Technology, and Semiconductors
Political Geography:
Global Focus

57. CCP Inc. in West Africa: How Chinese Party-State Actors Secured Critical Minerals in Guinea

Author:
Briana Boland, Lauren Maranto, and Jude Blanchette
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
This CCP Inc. case study explores how Chinese diplomatic, regulatory, financial, and commercial actors work in concert to secure critical minerals in the West African nation of Guinea. Efforts in Guinea to mine bauxite and iron ore, the primary inputs for aluminum and steel, illuminate Beijing’s conduits for influencing and supporting its geo-economic objectives. Examining one key Chinese player in Guinea’s mining sector, this study highlights state actors’ connections with nominally private Chinese companies and the importance of partnerships with state-owned enterprises for building costly infrastructure. Across multiple bauxite and iron ore mining ventures, Chinese diplomatic support and state financing provided conduits to help further favored projects and increase Chinese companies’ access to Guinea’s mining industries.
Topic:
International Cooperation, Natural Resources, Hegemony, Mining, and Superpower
Political Geography:
Africa, China, Asia, and Guinea

58. Donor Funding Models for Innovation: A Review

Author:
Conor M. Savoy
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
Donors have rhetorically supported the importance of innovation in global development, but the level of resources committed has seldom matched the level of this rhetoric. There are clear barriers to expanding funding for the innovation ecosystem: (1) innovation remains under-resourced, and models that are providing clear results are not properly supported; (2) pathways to scale remain limited because of the total funding available; and (3) the risk appetite of donors remains too conservative to properly support and scale innovation. Recent impact evaluations suggest that innovations supported by the United States Agency for International Development’s (USAID) Development Innovation Ventures (DIV) and the Global Innovation Fund (GIF) have yielded impressive returns. But more importantly, innovation also leverages scarce funding resources and engages with locally based partners.
Topic:
Development, Natural Resources, Innovation, and Donors
Political Geography:
Global Focus

59. Pariah or Partner? Clarifying the U.S. Approach to Cambodia

Author:
Gregory B. Poling, Charles Dunst, and Simon Tran Hudes
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
U.S. policy toward Cambodia is conflicted, contradictory, and unsustainable. Is Cambodia an authoritarian pariah to be punished until it undergoes systemic political change? Or is it a necessary partner on the front lines of great-power competition? The U.S. government has spent the last decade torn between righteous indignation over democratic backsliding and pragmatic engagement given U.S. interests in the region. For a while, muddling through was understandable, maybe even wise. The United States only recently cemented a bipartisan consensus on the importance of the wider Indo-Pacific in strategic competition with China. And without that consensus, it was unclear how much Cambodia really mattered to U.S. national interests. Plus, authoritarian shifts under Prime Minister Hun Sen were initially tempered by political compromises. But now it is time to stop muddling. Cambodia sits in a neighborhood too important to ignore. If political change comes to the country, it will be generational and have little or nothing to do with foreign pressure. In the meantime, Washington should not embrace Hun Sen’s regime but should be more strategic in working with it.
Topic:
International Relations, Foreign Policy, Hegemony, and Superpower
Political Geography:
Asia, Cambodia, North America, and United States of America

60. Allied Smart Cities

Author:
Matthew Goodman, Akhil Thadani, and Matthew Wayland
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
Population growth and rapid urbanization are reshaping global networks and driving demand for digital infrastructure beyond advanced economies. These trends are accelerating U.S.-China commercial competition in third markets, where governments must decide which communication and technology governance systems to adopt. Developing a high-standard smart city model can help to successfully rejuvenate domestic infrastructure, close the global digital divide, and promote democratic values in digital infrastructure.
Topic:
Urban, Cities, Sustainability, and Digital Revolution
Political Geography:
Global Focus