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  • Author: Michael Ruhle
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: Since Russia’s hybrid war against Ukraine in 2014, the Western strategic community is trying to come to grips with the concept of hybridity.1 Some ob- servers were quick to point out that the idea of combining military and non-military tools was far from new, and they warned against exaggerating hy- brid warfare.2 However, Russia’s apparently seam- less and effective blending of political, diplomatic, economic, electronic and military tools in order to annex Crimea and support separatists in the Don- bas seemed to herald a new era of hybrid warfare: a revisionist power was using both old and new means to undermine and, eventually, tear down a post-Cold War order it considered unfair and un- favourable.
  • Topic: NATO, Diplomacy, Regional Cooperation, Military Strategy
  • Political Geography: Russia, Europe, North Atlantic, Ukraine, North America
  • Author: Mathieu Boulegue
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: Russia’s military posture in the Arctic is informed by the changing geopolitical environment, and can no longer be considered in isolation from the country’s growing tensions with the West. In this sense, the period of “Arctic exceptionalism” – in which, by convention, the region has been treated as a zone of depoliticized cooperation – is coming to an end. Certainly, the Russian Arctic is not exceptional for Moscow in military-operational terms. Russia’s leadership has accorded the same threat perception to the Arctic as it has to other theatres of operation. It seeks consistent control over foreign military activity in the Russian Arctic, and ensured access for Russian armed forces, particularly the Northern Fleet. Russia’s military build-up in the Russian Arctic and the Kremlin’s intentions are, at least for now, defensive in nature. Russia’s military build-up in the Arctic Zone of the Russian Federation (AZRF) primarily aims to ensure perimeter defence of the Kola Peninsula for the survivability of second-strike nuclear assets. Russia’s “Bastion” defence concept consists of the projection of multi-layered sea denial and interdiction capabilities. Another Russian priority is to ensure the Northern Fleet’s access to, and passage along, the Northern Sea Route (NSR) from the Atlantic Ocean to the Pacific Ocean. This has hitherto been achieved through military infrastructure along the NSR. However, due to the receding ice, Moscow will seek to enforce “border control” over a larger portion of its Arctic area in the future. The revamping of dual-use border control infrastructure and facilities is deemed a priority for safeguarding Russia’s vision of national security in the AZRF. Since the mid-2010s, Russia has deployed substantive force and capabilities along its northern border in the AZRF. Parts of the armed forces, such as the Arctic Brigade, are now Arctic-capable and have developed concepts of operations tailored to that environment. The Northern Fleet has been repurposed with the Arctic environment in mind, and has been provided with Arctic-specific military technology and training. Russia acts as a status quo power and a reluctant rule-follower in the Arctic, partly because international law there plays in its favour, and partly because it is in Russia’s interest to do so. Despite growing tension, cooperation between Russia and other Arctic nations is likely to endure.
  • Topic: Defense Policy, NATO, Regional Cooperation, Military Strategy
  • Political Geography: Russia, Europe, North Atlantic, North America, Arctic
  • Author: Marc Ozawa
  • Publication Date: 07-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: s the growing relationship between Russia and China a short term “axis of convenience” as some have suggest- ed or rather a “stable strategic partnership” described by China’s former vice Foreign Minister, Fu Ying”.1 Based on current events, it is still too early to tell how substan- tive this relationship will develop. On the one hand, there are impressive achievements in cooperation with clear sig- nals from Moscow and Beijing of their future aspirations, which are serious and long-term. On the other hand, there are indications that things could fall apart quickly consid- ering a contentious history that is still in living memory, lingering distrust and socio-cultural obstacles. Although both countries have finally agreed on a mutually recog- nized border, growing Chinese influence and the sheer disparity of populations in the border region raise con- cerns that even Russian leadership privately acknowledge. For the time being, however, the forces bringing both countries together are enough to overcome these obsta- cles. Although the current direction of bilateral relations is towards cooperation, it is still a fragile sort. Because co- operation requires the participation of Russian and Chi- nese leadership, it could recede without their active pro- motion. In the long term much will depend on how the leadership navigates through the phases of cooperation, both military and economic. For NATO, this underscores the need to incorporate Far East developments into its strategic awareness of the Eastern Flank, particularly with respect to the convergence of political, military and eco- nomic forces.
  • Topic: NATO, Diplomacy, Regional Cooperation, Military Strategy
  • Political Geography: Russia, China, Europe, North Atlantic, Asia, North America
  • Author: Niels Schafranek
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: For the past fifteen years, NATO-European Union (EU) cooperation has been expanding with mixed results. Fundamentally, the two organizations are different: NATO, as an intergovernmental military alliance, focuses on collective defence, crisis man- agement and cooperative security. The EU, on the other hand, is a political and economic union that has developed a security agenda under the Common Security and Defence Policy (CSDP). However, there are also overlapping security activities such as the so-called “Petersberg tasks”, involving the EU in peacekeeping, and potentially even tasks of combat for EU forces in crisis management.
  • Topic: Defense Policy, NATO, Regional Cooperation, European Union
  • Political Geography: Europe, North Atlantic, North America
  • Author: Peter Braun
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: Since 2014, all NATO Summit Declarations have pointed to terrorism and hybrid warfare as the main and most immediate threats to the security of the North Atlantic Alliance and its members.1 Surprisingly, the two threats are largely addressed separately – the fact that ter- rorism happens to be an important element of hybrid warfare is not mentioned at all. This pa- per seeks to examine whether NATO’s current concepts of counter-terrorism (CT) are ade- quate for countering potential terrorist threats in a hybrid environment. To do so, the paper be- gins by examining how terrorism could be used in a hybrid scenario. Thereafter, the particular challenges that these threats pose to collective defence, according to Article 5 of the Washington Treaty, are addressed. Finally, this paper considers the extent to which key elements of NATO’s counter-terrorism strategy fit the spe- cific challenges posed by terrorism as a possible component of hybrid warfare.
  • Topic: Defense Policy, NATO, Regional Cooperation, Terrorism, Counter-terrorism
  • Political Geography: Europe, North Atlantic, North America
  • Author: Antonio Missiroli
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: The speed and intensity at which the strategic land- scape has evolved over the past two decades requires constantly updating our analytical and operational tools, capturing change as it occurs, anticipating it whenever possible, and also framing it in terms that facilitate adaptation and cooperation. The recent de- bates over “hybrid” are an excellent case in point.
  • Topic: Defense Policy, NATO, Regional Cooperation
  • Political Geography: Europe, North Atlantic, North America
  • Author: Eyal Rubinson
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: What is the role that democracy and adherence to hu- man rights play in NATO enlargement decisions? Democratic conditionality, a strategy of setting clear benchmarks of liberal-democratic reforms as a pre- requisite for membership, has been a central theme in NATO history. Adherence to democracy and human rights was cited in the Washington Treaty of 1949, and more recently in the 1995 Study on NATO En- largement, the 1994 Framework Document of the “Partnership for Peace” programme, the 1999 Mem- bership Action Plan (MAP) and other fundamental texts. However, despite this repeated insistence on condi- tionality, many candidate states did not satisfactorily improve their records pre-accession, and are increas- ingly unable to meet the requirement of a function- ing democracy, according to internationally renowned indices.
  • Topic: NATO, Human Rights, Regional Cooperation, Democracy
  • Political Geography: Europe, North Atlantic, North America, Global Focus
  • Author: Gustav Lindstrom, Thierry Tardy
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: The state of NATO-EU relations is currently high on the political agenda. There are at least three reasons for this. First, there is a genuine expectation that both organisations should increasingly work together and complement each other in an era where threats are multifaceted. There is a recognition that tackling such threats, while having to adapt their respective positions in light of geopolitical muscle flexing in other parts of the world, requires both organisations to strengthen the partnership. In 2016, the two institutions adopted a Joint Declaration that reflected on this necessity: “In light of the common challenges we are now confronting, we have to step up our efforts: we need new ways of working together and a new level of ambition; because our security is interconnected; because together we can mobilize a broad range of tools to respond to the challenges we face; and because we have to make the most efficient use of resources. A stronger NATO and a stronger EU are mutually reinforcing. Together they can better provide security in Europe and beyond”.1 Second, there are concerns over how NATO-EU relations are faring at a time when the transatlantic relationship is going through turbulent times. In particular, US relations with several EU member states and the EU in general are mired in disagreements on issues ranging from the future of the Joint Comprehensive Plan of Action, also known as the Iran nuclear deal, to the possibility of introducing new tariffs on specific goods traded between the two sides. Looming on the horizon there are also concerns about the implications of Brexit for NATO-EU relations – in particular, whether it may inadvertently complicate both organisations’ ability to work together.
  • Topic: NATO, Diplomacy, Regional Cooperation, European Union
  • Political Geography: Europe, North Atlantic, North America
  • Author: Jean-loup Samaan
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: On 3rd April, 2019 in Washington, DC, US Vice Pres- ident Mike Pence addressed an audience of Western current and former statesmen gathered to celebrate the 70th anniversary of NATO. After taking stock of the Alliance’s accomplishments over the previous decades, Pence ventured on the emerging challenges and touched on an unexpected subject, the Indo-Pa- cific region: “By working together, we can maintain a free and open Indo-Pacific where independent na- tions boldly pursue their own interests”.1 Although the Indo-Pacific has by now become a central feature of policy discussions in the US, it has been relatively absent from talks within NATO circles, as the issue is perceived as a matter lying outside the organization’s mandate. But security de- velopments in this region do matter for its member countries. Moreover, there are ways the organization could play a significant role in the Indo-Pacific with- out compromising its pre-existing priorities. Against that backdrop, this Policy Brief aims to contribute to the emerging discussion on NATO’s engagement in the Indo-Pacific by first providing an appraisal of the policy implications of the US strategy towards the region, and then identifying realistic expectations for a NATO engagement in the Indo-Pacific.
  • Topic: Security, Defense Policy, NATO, Regional Cooperation
  • Political Geography: Europe, North Atlantic, North America, Indo-Pacific
  • Author: Christian Leuprecht
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: The enhanced Forward Presence (eFP) is not merely a deterrence mechanism that relies on NA- TO’s reputation to guard the northeastern flank, but an innovative deployment model in response to the spectrum of emerging threats that confront the Alliance and its members. On the one hand, the eFP enables select mem- ber states to support others, harnessing the econ- omies and economics of an alliance with the legit- imacy of a NATO mandate under circumstances where not all member states want to, or are able to, opt in; or when timelines are tighter than a full- fledged NATO mission could meet. On the other hand, the eFP’s potential for crisis management and security cooperation to address the spectrum of traditional and emerging threats identified in the Wales, Warsaw, and Brussels Summit commu- niqués is considerable: collective defence aside, the current eFP is already showing promise in areas such as building societal resilience and improved security cooperation among member states that are deploying and exercising together – but, in the case of the Baltic states, for instance, without a permanent US headquarters or operational pres- ence. This study starts with a summary of the ratio- nale that informs the eFP and situates it as a quint- essential manifestation of NATO’s new mission set beyond the 2014 Wales Summit. The eFP is be- spoke for the highly dynamic and complex threat environment that is challenging NATO resources on multiple fronts, both in- and out-of-area. The Brief explicates the political and deterrence pur- poses of NATO’s enhanced Forward Presence in northeastern Europe. It also considers eFP’s strategic effects, conceptual limits, and the extent to which this new deployment model might lend itself to confronting a myriad of security risks – conventional and unconventional – that member states face in the 21st century. The final sections rationalize the prospects and value of applying the eFP framework for other conceivable in-area op- erations: the benefits that accrue from rotational forces, and in circumstances when there is NATO consensus but absent willingness by all members to make an actual contribution and commitment; all of which embodies the premium put on the shift in deterrence from political reputation to mil- itary preparedness.
  • Topic: Defense Policy, NATO, Regional Cooperation, Collective Defense
  • Political Geography: Europe, North Atlantic, North America
  • Author: Patrick Turner
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: NATO at 70 shows no sign of slowing down. Indeed, the last few years have been marked by a growth in the challenges to which we must respond, and a high tem- po of decisions and adaptation. NATO’s ability to adapt to the changing security environment has always been a core strength – but this ability has been and will continue to be put to the test. In the last five years, since Russia’s illegal annexation of Crimea and intervention in Eastern Ukraine in 2014, NATO has been going back to basics. Its core purpose of defending Allies has come back to the fore. But not to the exclusion of other tasks and priorities such as: NA- TO’s operations and missions, for example in Afghani- stan, Kosovo and Iraq; our broader contributions to the international fight against terrorism; or our work to build partner capacity. This Policy Brieffocuses on NATO’s efforts to strength- en its defence posture. The NATO shorthand for our efforts to improve our collective defence is deterrence, defence and dialogue (the “three Ds”). These are un- derpinned by responsiveness, readiness and reinforce- ment (the “three Rs”), as well as strengthened national resilience to attack. More investment and commitment by non-US Allies in line with the Defence Investment Pledge agreed at the NATO Summit in Wales in 2014, the shorthand for which is cash, capabilities and contri- butions (the “three Cs”), provides the crucial enablers for the three Ds and the three Rs.
  • Topic: Defense Policy, NATO, Regional Cooperation, Military Strategy
  • Political Geography: Russia, Europe, North Atlantic, Ukraine, North America
  • Author: Thierry Tardy
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: Anniversaries are opportunities to look back at what has been achieved and to look forward to what ought to be changed and, possibly, improved. Having reached a mature age, an anniversary can also be an occasion to ponder deeper questions of self-identity, purpose and ambition. In 2019 NATO turned 70, and if, overall, it can be proud of what it has achieved for the security of its citizens since 1949, there are also challenges that con- strain its full success as a security actor. More specifically, since 2014, the combination of the Alliance’s two main missions of “deterrence and defence” and “projecting stability”, furthermore in a context of transatlantic tur- bulence and deep tension among member states, has raised a number of questions about NATO’s capacity to remain united and fit for purpose. While the security environment is increasingly com- plex, with constantly evolving threats, and adversaries challenging established state actors and the way they fight, how should NATO further adapt to remain rel- evant? While conflicts are increasingly “hybrid”, should NATO embrace the largest portfolio possible to match the various layers of hybridity, or should it stay focused on what it does best – delivering hard power? Proba- bly both: staying focused might be an option in an ide- al world, but in fact, broadening the scope of NATO’s mandate will be difficult to resist.
  • Topic: Defense Policy, NATO, Regional Cooperation, Collective Defense
  • Political Geography: Europe, North Atlantic, North America
  • Author: Andrea Gilli
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: This volume touches upon this and a set of related messages that ultimately put human beings at the very center of this transformation toward intelligent machines: one of the paradoxes of the second machine age – as Erik Brynjolfsson and Andrew McAfee call it – is in fact that the more tasks computers take over, the more important becomes the role of people.4 Technology replaces tasks, not human beings, and human beings at each round of automation specialize in the tasks with higher added value.5 In other words, technological changes tend to complement human activities, enabling people to specialise in those areas where they have a comparative advantage. However, the transition is not bereft of problems: new skills and new organizational structures are needed to exploit the potentials of new technologies. The emergence of artificial intelligence, machine learning and big data – that in this volume will be interchangeably used alongside terms such as intelligent machines – can potentially represent a major turning point in human history. For the moment, we are dealing – and we will likely continue to do so – with weak or limited AI, namely single- purpose systems, i.e. machines that may reach an outstanding performance in one realm but cannot even fulfill the most basic task in a related field.6 Strong, or general, artificial intelligence – also referred as singularity – will occur when machines will, like human beings, be able to conduct a plurality of multidimensional activities, from driving a car to empatizing with peers, from playing video games to conducting different work activities.7 The contributions in this volume attempt to map the underlying causes, direct implications and broader consequences of the transformation at hand. Their main collective value is that they adopt different, but complementary approaches that ultimately corroborate the underlying theme of the entire volume, namely that as machines become more capable and easily available, the more important become human beings. The world of defense and security often looks with both amazement and concern at other fields. It rarely, however, truly engages with them, also intellectually. Building on a conference jointly organised in December 2018 between the NATO Defense College Research Division and the Paris-based Institut de Recherche Stratégique de l’Ecole Militaire, this volume has tried to address this shortfall by bringing together defense scholars and security practioners, economists and psychologists, historians and lawyers as well as business consultants and roboticists with the goal of looking from different angles at the domain of AI and reason, together, on its possible meanings and consequences.
  • Topic: NATO, Regional Cooperation, Science and Technology, Artificial Intelligence
  • Political Geography: Europe, North Atlantic, North America
  • Author: Andrea Gilli, Mauro Gilli
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: NATO Defense College
  • Abstract: Analysts, academics and observers are worried that NATO countries may lose their industrial leadership in defence production. Globalization and advances in communications are widely believed to enable enemies and adversaries alike to copy NATO countries’ state- of-the-art weapon systems, and possibly even surpass them by developing next-generation weapon systems. Moreover, so-called disruptive technologies like artificial intelligence, quantum computing and additive manufac- turing are believed to offer cheaper and less technologi- cally demanding options to countries that do not possess the decades’ old defence industrial base of NATO coun- tries. These countries could then use such new technolo- gies for weakening NATO force structure. These concerns are real and deserve close scrutiny. However, adversaries and competitors still face signif- icant challenges which are more insidious than those NATO countries are facing. Because of the complexity of modern technology, imitation, innovation and disruption in armaments production have become increas- ingly demanding over the past decades – especially for naval and aerial platforms intended to operate in com- petitive environments. For NATO this implies more tar- geted defence investments and exploitation of industrial specialisation across the Alliance, as well as experimen- tation and innovation with new technologies to favour their future integration into the NATO force structure.
  • Topic: Defense Policy, NATO, Globalization, Regional Cooperation, Science and Technology, Military Strategy
  • Political Geography: Europe, North Atlantic, North America
  • Author: Alice Evans
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This paper re-examines why global collective action problems persist, and how to overcome them. Drawing on 140 interviews with campaigners, politicians, and businesses in 10 European countries, it suggests that many activists are stuck in a despondency trap. Never seeing radical reform, they lower their ambitions, and invest in more feasible but sub-optimal alternatives. This creates a negative feedback loop, in which the dearth of radical reform becomes self-fulfilling. But if reformists see advances at home and abroad, they may become more optimistic about collective mobilisation and break out of their despondency trap. This is shown by tracing the drivers of ground-breaking legislation. From 2018, large French firms must mitigate risks of environmental and human rights abuses in their global supply chains, or else be liable. This bill – the world’s first of its kind – was vociferously contested by businesses. But French campaigners and politicians persisted for four years, because they saw reasons for optimism. These include growing international support; public outcry; the French political culture (state intervention, and distrust of multinationals); together with a Centre-Left Government. Optimism galvanised relentless mobilisation. Legislative success in France then delivered a positive shock to activists across Europe, who were emboldened to launch similar campaigns and escape their despondency trap.
  • Topic: Political Activism, Reform, Business , State, Multinational Corporations, Legislation, Accountability
  • Political Geography: Europe, France
  • Author: Timothy Besley, Anders Jensen, Torsten Persson
  • Publication Date: 09-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: This paper studies individual and social motives in tax evasion. We build a simple dynamic model that incorporates these motives and their interaction. The social motives underpin the role of norms and is the source of the dynamics that we study. Our empirical analysis exploits the adoption in 1990 of a poll tax to fund local government in the UK, which led to widespread evasion. The evidence is consistent with the model’s main predictions on the dynamics of evasion.
  • Topic: Political Economy, Economy, Financial Crimes, Tax Systems
  • Political Geography: United Kingdom, Europe, Global Focus
  • Author: Natasja Reslow
  • Publication Date: 03-2019
  • Content Type: Journal Article
  • Journal: The International Spectator
  • Institution: Istituto Affari Internazionali
  • Abstract: Unintended consequences arising from EU external migration policy are a result of the multi-actor nature of this policy and of policy interactions. In addition, scholars face serious methodological challenges in establishing what the EU’s ‘intent’ is in external migration policy and, therefore, in determining which consequences are intended and which are unintended. The literature on the implementation and evaluation of EU external migration policy is in its infancy, and future work should take into account all policy outcomes – both those that were intended and those that were not.
  • Topic: Migration, Immigration, Governance, Refugees
  • Political Geography: Europe, European Union
  • Author: Olga Burlyuk, Gergana Noutcheva
  • Publication Date: 03-2019
  • Content Type: Journal Article
  • Journal: The International Spectator
  • Institution: Istituto Affari Internazionali
  • Abstract: There is a gap in IR and EU scholarship concerning unintended consequences in an international context, leaving this important phenomenon understudied. To fill this gap, a conceptualisation of unintended consequences is offered, and a set of common research questions are presented, highlighting the nature (what), the causes (why) and the modes of management (how) of unintended consequences of EU external action. The Special Issue contributes to the study of the EU as an international actor by broadening the notion of the EU’s impact abroad to include the unintended consequences of EU (in)actions and by shedding new light on the conceptual paradigms that explain EU external action.
  • Topic: International Relations, Foreign Policy, Politics
  • Political Geography: Europe, European Union
  • Author: Dimitris Bouris
  • Publication Date: 03-2019
  • Content Type: Journal Article
  • Journal: The International Spectator
  • Institution: Istituto Affari Internazionali
  • Abstract: The existing literature on state-building has focused mainly on post-conflict cases and ‘conventional’ examples of statehood, without taking into consideration the particularities of states that remain internally and/or externally contested. The EU’s engagement in Palestinian state-building through the deployment of EUPOL COPPS and EUBAM Rafah has generated various types of unintended consequences: anticipated and unanticipated, positive and negative, desirable and undesirable, some of which fulfill and some of which frustrate the initial intention. These have important reverberations for the EU’s conflict resolution strategies in Israel and Palestine, the most important being the strengthening of power imbalances and the enforcement of the status quo.
  • Topic: Conflict Resolution, Foreign Policy, State, State Building, Police
  • Political Geography: Europe, Middle East, Palestine, European Union
  • Author: Assem Dandashly, Gergana Noutcheva
  • Publication Date: 03-2019
  • Content Type: Journal Article
  • Journal: The International Spectator
  • Institution: Istituto Affari Internazionali
  • Abstract: The European Union’s (EU) impact on the political governance of the European neighbourhood is varied and sometimes opposite to the declared objectives of its democracy support policies. The democracy promotion literature has to a large extent neglected the unintended consequences of EU democracy support in Eastern Europe and the Middle East and North Africa. The EU has left multiple imprints on the political trajectories of the countries in the neighbourhood and yet the dominant explanation, highlighting the EU’s security and economic interests in the two regions,cannot fully account for the unintended consequences of its policies. The literature on the ‘pathologies’ of international organisations offers an explanation, emphasizing the failures of the EU bureaucracy to anticipate, prevent or reverse the undesired effects of its democracy support in the neighbourhood.
  • Topic: Security, Foreign Policy, Democracy, Economy, Bureaucracy
  • Political Geography: Europe, Middle East, Eastern Europe, North Africa, European Union
  • Author: Frank de Zwart, Karolina Pomorska
  • Publication Date: 03-2019
  • Content Type: Journal Article
  • Journal: The International Spectator
  • Institution: Istituto Affari Internazionali
  • Abstract: “Unintended consequences” is an umbrella concept. It comprises phenomena that differ in crucial respects and consequently, without refinement, it remains a rather blunt instrument for policy analysis. The contributions in this volume, however, show that disentangling unintended consequences by making clear distinctions between various types, makes the concept much more useful for policy analysis. Assessing the impact of EU foreign policies as studied in this volume, we show that “bonuses”, “windfalls”, “accidents”, and “trade-offs” – all unintended – are very different when it comes to the explanation of policy outcomes, or to allocating responsibility for them.
  • Topic: Foreign Policy, Political Science, Unintended Consequences
  • Political Geography: Europe, European Union
  • Author: Ferdinando Nelli Feroci
  • Publication Date: 11-2019
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: A few months after the European Parliament elections, and a few weeks before a new European Commission is fully operational, the European Union is facing old and new challenges, both domestic and international. Internally, the EU will soon be testing these new institutions. In the recently elected European Parliament, nationalist and Eurosceptic political forces are a minority, but pro-European mainstream parties, which have the numbers to control the proceedings of the Parliament, have not been able to consolidate a stable and comfortable majority. The new European Commission has encountered setbacks in the confirmation procedure of three of its members and will therefore fully assume its responsibilities with some delay on 1 December.
  • Topic: Government, Nationalism, Politics, Elections, Transatlantic Relations
  • Political Geography: Europe, North America, United States of America, European Union
  • Author: Sandra Lavenex, Ivo Križić
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: In light of rising internal cleavages and centrifugal tendencies, differentiated integration (DI) has (re)arisen as a major topic in debates on the future of the European Union. As new forms of participation below the threshold of full membership are needed, this paper provides a conceptualisation of effective and legitimate DI. Going beyond existing scholarship’s focus on the legal dimension of DI, the paper emphasises its organisational component, meaning the variegated participation of EU member states, sub-state entities and third-country actors in the panoply of EU policy-making institutions, such as regulatory agencies and transgovernmental networks. The paper subsequently discusses how to measure effectiveness of such differentiated arrangements in terms of their output, outcome and impact, before theorising under what conditions we are likely to see effective DI. Finally, the paper turns to the question of legitimacy of DI, discussing its meaning, measurement and determinants.
  • Topic: Governance, Democracy, Regional Integration, Accountability, Legitimacy
  • Political Geography: Europe, European Union
  • Author: Sinan Ülgen
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The evolving external threat environment is impacting the internal political dynamics of NATO nations and is accentuating a series of already existing trends – differences in threat perceptions, burden-sharing difficulties, challenges to respond to sub-threshold threats and the rise of populism – which altogether affect the cohesiveness and potentially the effectiveness of NATO as a political and military alliance. NATO’s operational future over the next decades will be shaped by the ingenuity of the transatlantic leadership in developing new arrangements of institutional cooperation between the Alliance and the burgeoning forms of the “coalition of the willing”. The Alliance should nonetheless remain the main transatlantic political forum, given Brexit as well as the rising need for a common political response to the many challenges ranging from migration to failed states. NATO has been relatively successful in adapting to the changing security environment. Its military capabilities remain unparalleled and unrivalled. The more interesting question is however the political one. Namely how the politics of sustaining this Alliance are being shaped by the underlying dynamics that are transforming the global political, economic and military context. The paper is divided in three chapters.
  • Topic: Defense Policy, NATO, Politics, Institutions, Transatlantic Relations
  • Political Geography: Europe, United States of America, European Union
  • Author: Andrea Dessì
  • Publication Date: 12-2019
  • Content Type: Special Report
  • Institution: Istituto Affari Internazionali
  • Abstract: This study on Libya is one of a series of reports prepared within the framework of the EU-LISTCO project, funded under the EU’s Horizon 2020 programme. Libya is a special case within the EU-LISTCO project. It is in the western region of North Africa, bordered by the Mediterranean Sea to the north, Algeria and Tunisia to the west, Chad and Niger to the south, Sudan to the south-east and Egypt to the east. The security and stability of Libya is fundamental for the economic and political future of Europe, particularly in relation to migration, radicalisation and political economy. Because of the NATO-led intervention that brought about the collapse of the Libyan Arab al-Jamahiriyah, the country has now entered an interrelated social, economic and political crisis, and violence has been simmering for the past eight years. While the collapse of the previous government has been beneficial for some, numerous armed political actors now control the Libyan territory, supported and funded by external powers that often have contradictory political agendas. The purpose of this report is to answer the following research questions: what is the background of areas of limited statehood and contested order in Libya?; how and when can areas of limited statehood and contested order in Libya turn into governance breakdown and/or violent conflict, and how can these threats affect the security of the EU?; what are the resilience mechanisms in Libya?
  • Topic: Security, Governance, Political stability, State, Crisis Management, Resilience
  • Political Geography: Europe, Middle East, Libya
  • Author: Nathalie Tocci
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Much is being said about European power these days. From the new European Commission President von der Leyen and new High Representative Borrell to French President Macron, the idea that Europe must exert power on the global scene is gaining traction. The political intuition behind these statements is absolutely correct. The 21st century rationale for the European project is a profoundly global one. However, to turn it into a practical reality, it’s worth delving into the detail of European power, what it meant, how it has transformed, and what should be done to exercise it in future.
  • Topic: International Relations, Power Politics, Transatlantic Relations
  • Political Geography: Europe, European Union
  • Author: Nicoletta Pirozzi, Francesco Musi
  • Publication Date: 12-2019
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: The civilian dimension of conflict prevention, conflict resolution and post-conflict stabilisation has long been prominent in EU crisis management missions. From 2000 onwards, the EU has developed its monitoring, capacity-building, strategic advice and training tools, deploying a total of 22 civilian missions beyond its borders. Currently, there are 11 active civilian missions, stretching from the Balkans (EULEX Kosovo) to the Middle East (EUBAM Rafah, EUPOL COPPS, EUAM Iraq), from Eastern Europe and Caucasus (EUAM Ukraine, EUMM Georgia) to Africa (EUBAM Libya, EUCAP Sahel Mali, EUCAP Sahel Niger, EUCAP Somalia). Their main tasks include policy reforms on the rule of law, the fight against organised crime and security sector reform.
  • Topic: Politics, Reform, Budget, Crisis Management, Institutions
  • Political Geography: Europe, European Union
  • Author: Funda Tekin, Vittoria Meissner, Nils Fabian Müller
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Heterogeneity among countries in the European Union has continuously grown through enlargement processes or the outbreak of specific crises. After reaching important outcomes such as the European Monetary Union or the Schengen Agreement, in the face of the “big bang” enlargement of 2004 both national and European Union representatives subsequently committed to the motto “united in diversity”, confident that the European project would progress and deepen. Nevertheless, the crises in the euro area posed a number of new internal and external challenges to the overall European integration process as well as the EU’s political unity in terms of member states sharing the same rights and obligations, making permanent forms of differentiated integration more likely. Against this background, the paper presents a new collected dataset to outline how the EU narrative of political unity changes during times of increasing political differentiation and consequent differentiated integration. As such, it conducts a narrative analysis in two selected cases, the period between 2000 and 2004 preceding the big bang enlargement as well as the years of the crises in the euro area between 2010 and 2014. Although the existing narrative of political unity in the EU has changed in response to the crises under the more sceptical phrase “divided in unity”, our analysis shows that differentiation is not a threat to political unity.
  • Topic: Foreign Policy, Politics, Regional Integration, Institutions, Integration
  • Political Geography: Europe, France, Poland, Germany, Italy, European Union
  • Author: Nicola Casarini
  • Publication Date: 12-2019
  • Content Type: Commentary and Analysis
  • Institution: Istituto Affari Internazionali
  • Abstract: Should the EU enforce a containment policy towards the People’s Republic of China (PRC – or simply China), joining efforts undertaken by US President Donald Trump, who has unleashed a trade and technological war against Beijing with the aim of permanently subordinating the Asian giant to the West? Or should the EU continue its engagement policy towards Beijing – and even seek to maximise Sino-European ties to put limits on those US unilateral policies that are detrimental to Europe’s interests and fundamental values? What would be the best policy mix of engagement and containment for EU–China relations? And to what extent should the EU align its China policy with that of the US?
  • Topic: International Relations, Politics, Institutions
  • Political Geography: China, Europe, Asia, United States of America, European Union
  • Author: Sine Plambech, Maria Brus Pedersen
  • Publication Date: 08-2019
  • Content Type: Special Report
  • Institution: Danish Institute for International Studies
  • Abstract: In recent decades, news media all over the world have increasingly covered the issue of human trafficking. Human trafficking is a notoriously complex subject involving migration, border politics, gender, consent, agency and morality. Yet, simplistic ideas and framings of human trafficking often end up shaping broader understandings of human trafficking in policy and the public sphere. This report is written by DIIS Senior Researcher Sine Plambech and journalist Maria Brus Pedersen. The aim is not only to provide insights into the framing of human trafficking in the Danish media, but furthermore to serve as a learning tool for journalists covering human trafficking. An analysis of this type has not been undertaken in Denmark before and thus provides the reader with new insights into the evolution of how the Danish media framed human trafficking from 2010 to 2019. The report has three main findings: First, the framing of human trafficking in the Danish media has changed significantly over the past decade, from mainly covering human trafficking solely as a matter of prostitution and a human rights issue for women in 2010 to becoming an issue of migration with security and legal implications in 2019. As such there has been a development away from a focus on women’s ‘bodies’ to a focus on ‘borders’ and migration politics. Secondly, in comparison to 2010, today the media more commonly describe the trafficking of men to forced labor and human trafficking generally to other sectors than prostitution. Yet, the framing continues to be significantly gendered. Though identified victims of trafficking in Denmark are most usually migrants, the men are framed primarily as migrant workers in exploitative situations, whereas the women are described as victims of trafficking. This gendered framing derives primarily from the perspective that prostitution is victimizing by default and is not seen as a kind of work. Thirdly, despite the more nuanced framing, a simplistic sensationalist language still risks dehumanizing and overshadowing the complexity of human trafficking. In particular, this is because it is the media, rather than those who have been identified as victims of trafficking, who use these terms to describe their situation, as some of the journalists also confirmed. The report has a number of suggestions for journalists covering issues of human trafficking, some of them being; Be cautious with language. There is often a difference between the language used by politicians and NGOs and the language used by migrant workers to describe their situations. Sensationalist language like ‘prostitutes’, ‘sex slaves’ and ‘meat markets’ are loaded terms that contribute to marginalization and stigmatization. Migrant workers are not only victims of trafficking, they have agency in respect of their own migration trajectories: the one does not exclude the other. Human trafficking can be used as a yardstick for many different political agendas: consider which agendas you might be contributing to. Consider using counter narratives, activist reporting and investigative journalism as these approaches contribute to expanding our understanding of human trafficking.
  • Topic: Foreign Policy, Development, Migration, Media, Borders, Human Trafficking
  • Political Geography: Europe, Denmark
  • Author: Jessica Larsen
  • Publication Date: 11-2019
  • Content Type: Special Report
  • Institution: Danish Institute for International Studies
  • Abstract: In the light of the EU’s recent initiative to step up its Common Security and Defence Policy (CSDP) framework, a new DIIS report by Researcher Jessica Larsen examines the role of the EU as security actor in the maritime domain. The report analyses the EU’s maritime security operations so far undertaken under the CSDP, the counter-piracy operation ATALANTA in the Indian Ocean and the counter-smuggling operation SOPHIA in the Mediterranean Sea. The report finds that the EU filled a range of roles at sea, in particular as a: first responder, because the EU established operations ahead of other more obvious security actors, such as NATO and the US broad responder, because the EU applied its characteristic integrated approach of combining military and civilian policy instruments to address the security issue legitimate responder (to some extent), because the EU was able to use its political and diplomatic arm to establish bilateral agreements that sought to ensure the rule of law in operations and engage regional state authorities While the EU has pursued a comprehensive role in addressing maritime crime, the report argues that the EU on a strategic and operational level is neglecting a range of geopolitical tensions currently playing out in various maritime domains. The report argues that the EU needs to acknowledge this more explicitly. As the EU seeks to step up its common security and defence policy, the report calls for dedicated analysis of and decision-making about how the EU as security actor wishes to face this development and position itself in the maritime domain on both strategic and operational levels.
  • Topic: International Relations, Security, Defense Policy, Migration, European Union
  • Political Geography: Europe, Denmark
  • Author: Mikkel Runge Olesen, Camilla Tenna Nørup Sørensen
  • Publication Date: 12-2019
  • Content Type: Special Report
  • Institution: Danish Institute for International Studies
  • Abstract: The Arctic is increasingly becoming a region marked by great power competition between the US, Russia and China. This has caused trouble for the Nordic countries in the Arctic, who has had to handle and defuse both potential tensions with both Russia and China, and at the same manage relations with the US – their great power protector – whose new approach to the Artic now openly focuses on Russian and China as strategic competitors in the Arctic. Building on interviews, official documents and the existing literature, this report looks into the experiences from Finland, Norway and Iceland in dealing with this dilemma with the aim of identifying points for consideration by Denmark.
  • Topic: Security, Foreign Policy, Defense Policy, Power Politics
  • Political Geography: Europe, Finland, Norway, Denmark, Iceland, Arctic
  • Author: Jessica Larsen, Christine Nissen
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: Danish Institute for International Studies
  • Abstract: In December 2018, Denmark published a new priority paper guiding its future engagement in the Gulf of Guinea to combat piracy and other types of maritime crime. Against such background, this DIIS report presents the main challenges to maritime security in the region and maps the actors and activities addressing it in order to draw out the role that Denmark should play in this context. The report shed light on the regional and international strategies and interventions that are at play at a time when Denmark is a relatively new actor in the process of defining its role in the region’s maritime security infrastructure. As such, the report offers Denmark three sets of pointers for how to prioritise its activities in the Gulf of Guinea: ■ Regionalise engagement by promoting local ownership ■ Focus on the ‘in between’ by enhancing coordination and deconfliction ■ Look landward by strengthening legal structures
  • Topic: Security, Foreign Policy, Defense Policy, Fragile States
  • Political Geography: Europe, Denmark
  • Author: Yang Jiang
  • Publication Date: 02-2019
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: Beijing has imposed sanctions on North Korea each time the latter has conducted a nuclear test, sometimes leading Pyongyang to return to the negotiating table. The aim is to make North Korea abandon its nuclear program and open up its economy. RECOMMENDATIONS: ■ Denmark should support UN inspections of North Korea’s denuclearization activities, as well as the implementation of the Non-Proliferation Treaty (NPT) by the signatory states. ■ Denmark, in collaboration with other countries, can monitor the implementation of economic sanctions against North Korea while at the same time joining the EU’s discussions on the option of gradually easing sanctions. ■ Denmark should also prepare for the possibility of diplomatic and political normalization between North Korea and the rest of the world in the medium to long term....
  • Topic: Diplomacy, Power Politics, Disarmament, Nonproliferation
  • Political Geography: China, Europe, Asia, North Korea, Denmark
  • Author: Luke Patey
  • Publication Date: 10-2019
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: A common refrain in Denmark is that China is too far away to be a threat to Danish economic, foreign and security policy interests. This is no longer the case. Danish policy-makers acknowledge that China’s rise as a global superpower presents Denmark with new challenges. However, transforming this strategic thinking into practice is no simple task. Recommendations Intensify cooperation between the Ministries of Defense and Foreign Affairs to ensure Denmark’s initiatives in foreign policy, security and economic relations with China are more closely integrated. Beware of the bilateral. Beijing’s new assertive foreign policy and US-China strategic competition require that Denmark leverage its interests increasingly through the EU, NATO and other multilateral bodies. Assess the economic vulnerabilities of Danish industries in China and diversify trade and investment across Asia’s emerging markets and developed economies in the G7/EU.
  • Topic: Security, Foreign Policy, Defense Policy, Power Politics, Bilateral Relations, Cybersecurity, Global Political Economy
  • Political Geography: China, Europe, Asia, Denmark
  • Author: Gary Clyde Hufbauer , Zhiyaou (Lucy) Lu
  • Publication Date: 10-2019
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: In early 2019, several important members of the World Trade Organization (WTO) submitted noteworthy proposals in a realm of international commerce that has evolved faster than rules to govern it: e-commerce or digital trade. While countries agree on less controversial subjects like banning unsolicited commercial electronic messages, the three leading WTO members—China, the European Union, and the United States—have big differences in their approaches to more challenging issues: data flows, data localization, privacy invasions by data collectors, transfer of source code, imposition of customs duties and internet taxes, and internet censorship. Their differing viewpoints lead Hufbauer and Lu to conclude that the prospect of reaching a high-level WTO e-commerce agreement is not promising. To reach an agreement, either most of the contentious issues must be dropped or the number of participating countries must be sharply reduced. A WTO accord, even of low ambition, would have value if only to establish basic digital norms on matters such as banning unsolicited commercial messages and protecting online consumers from fraudulent practices. A more ambitious accord covering the controversial issues should be negotiated in bilateral and/or plurilateral/regional pacts rather than in the WTO.
  • Topic: Economics, World Trade Organization, Finance, Privacy, Data
  • Political Geography: China, Europe, Asia, North America, United States of America, European Union
  • Author: Chad P. Bown, Jennifer A. Hillman
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: The United States, the European Union, and Japan have begun a trilateral process to confront the Chinese economic model, including its use of industrial subsidies and deployment of state-owned enterprises. This paper seeks to identify the main areas of tension and to assess the legal-economic challenges to constructing new rules to address the underlying conflict. It first provides a brief history of subsidy disciplines in the General Agreement on Tariffs and Trade and the World Trade Organization (WTO) predating any concerns introduced by China. It then describes contemporary economic problems with China’s approach to subsidies, their impact, and the apparent ineffectiveness of the WTO’s Agreement on Subsidies and Countervailing Measures to address them. Finally, it calls for increased efforts to measure and pinpoint the source of the problems—in a manner analogous to how the Organization for Economic Cooperation and Development took on agricultural subsidies in the 1980s—before providing a legal-economic assessment of proposals for reforms to notifications, evidence, remedies, enforcement, and the definition of a subsidy.
  • Topic: Economics, World Trade Organization, Tariffs, Trade
  • Political Geography: Japan, Europe, Asia, North America, United States of America, European Union
  • Author: Joseph E. Gagnon, Christopher G. Collins
  • Publication Date: 11-2019
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: Central banks in the three largest advanced economies (the United States, Japan, and the eurozone) have only limited ammunition to fight a recession based on the tools used to date. The Federal Reserve has the most amount of tried and tested ammunition in this group. If a recession were to hit the US economy now, the Fed would be able to deliver monetary stimulus equivalent to a cut in the short-term policy interest rate of about 5 percentage points, which is sufficient to fight a mild but not severe recession. The European Central Bank and the Bank of Japan have little ability to ease policy with tools used to date, about the equivalent of a 1 percentage point cut in the policy rate. But they can engage in more exotic forms of monetary policy, such as large-scale purchases of equity and real estate and direct transfers to households, which the Fed cannot do. These tools, however, are largely untested and face political resistance. An important implication of this analysis is that raising expected inflation before a recession hits has a much larger benefit than has been widely recognized. A higher long-run inflation rate gives central banks more room to not only cut their policy rates but also use forward guidance and quantitative easing to reduce longer-term rates.
  • Topic: Global Recession, Economy, Central Bank
  • Political Geography: Japan, Europe, North America, United States of America
  • Author: Alvaro Leandro, Jeromin Zettelmeyer
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper explains and evaluates three proposals to create “safe assets” for the euro area based on sovereign bonds, in which sovereign risk is limited through diversification and some form of seniority. These assets would be held by banks and other financial institutions, replacing concentrated exposures to their own sovereigns. The paper focuses on three ideas: (1) to create multitranche “sovereign bond-backed securities” (SBBS), of which the senior tranche would constitute a safe asset; (2) to create a senior, publicly owned financial intermediary that would issue a bond backed by a diversified portfolio of sovereign loans (“E-bonds”); and (3) to issue sovereign bonds in several tranches and induce banks to hold a diversified pool of senior sovereign bonds (“multitranche national bond issuance”). Public attention (including public criticism) has so far focused on the first idea; the other two have not yet been seriously debated. The authors find that none of the competing proposals entirely dominates the others. SBBS do not deserve most of the criticism to which they have been subjected. At the same time, E-bonds and multitranche national bond issuance have several interesting features—including inducing fiscal discipline—and warrant further exploration.
  • Topic: Economics, Sovereign Wealth Funds, Banks, Risk
  • Political Geography: Europe, Global Focus
  • Author: Jacob Funk Kirkegaard
  • Publication Date: 09-2019
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: For years China has been one of the world’s most rapidly growing sources of outward foreign direct investment. Since peaking in 2016, however, Chinese outward investments, primarily to the United States but also the European Union, have declined dramatically, especially in response to changes in China’s domestic rules on capital outflows and in the face of rising nationalism in the United States. Concerns about growing Chinese influence in other economies, the ascendant role of an authoritarian government in Beijing, and the possible security implications of Chinese dominance in the high-technology sector have put Chinese outward investments under intense international scrutiny. This Policy Brief analyzes the most recent trends in Chinese investments in the United States and the European Union and reviews recent political and regulatory changes both have adopted toward Chinese inward investments. It also explores the emerging transatlantic difference in the regulatory response to the Chinese information technology firm Huawei. Concerned about national security and as part of the ongoing broader trade friction with China, the United States has cracked down far harder on the company than the European Union.
  • Topic: Economics, International Trade and Finance, National Security, Foreign Direct Investment, Investment
  • Political Geography: China, Europe, Asia, North America, United States of America
  • Author: Maria C. Latorre, Zoryana Olekseyuk, Hidemichi Yonezawa, Sherman Robinson
  • Publication Date: 03-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper examines 12 economic simulation models that estimate the impact of Brexit (Britain’s exit from the European Union). Most of the studies find adverse effects for the United Kingdom (UK) and the EU-27. The UK’s GDP losses from a hard Brexit (reversion to World Trade Organization rules due to a lack of UK-EU agreement) range from –1.2 to –4.5 percent in most of the models analyzed. A soft Brexit (e.g., Norway arrangement, which seems in line with the nonbinding text of the political declaration of November 14, 2018, on the future EU-UK relationship) has about half the negative impact of a hard Brexit. Only two of the models derive gains for the UK after Brexit because they are based on unrealistic assumptions. The authors analyze more deeply a computable general equilibrium model that includes productivity and firm selection effects within manufacturing sectors and operations of foreign multinationals in services. Based on this latest model, they explain the likely economic impact of Brexit on a wide range of macroeconomic variables, namely GDP, wages, private consumption, capital remuneration, aggregate exports, aggregate imports, and the consumer price index.
  • Topic: Economics, World Trade Organization, Brexit, Multinational Corporations
  • Political Geography: Britain, Europe, European Union
  • Author: Jeromin Zettelmeyer
  • Publication Date: 03-2019
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: ermany’s new National Industrial Strategy 2030, unveiled by Economy Minister Peter Altmaier in February 2019, advocates an aggressive industrial policy. Although it stays clear of the virulent economic nationalism of the 1930s and the protectionism of President Donald Trump, its tone and much of its content are unmistakably nationalist. Zettelmeyer concludes that three of Altmaier’s five proposals—attempting to further raise the German share of manufacturing, restricting non-EU imports of intermediate goods, and promoting national champions in Germany and the European Union—are bad policies. The two remaining ideas—preventing some foreign takeovers and ramping up state support for certain technologies—are somewhat easier to justify, based on either market failures or the risk of technological dependence on foreign companies susceptible to political interference. But even in these areas, the specific policies proposed may well do more harm than good.
  • Topic: Economics, Nationalism, European Union, Donald Trump
  • Political Geography: Europe, Germany
  • Author: Felipe González, Nicolas Véron
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: China's rapid rise and unique economic system and the increasingly aggressive and disruptive US trade policy are posing an unprecedented threat to the global rules-based trading and economic system. The European Union has critical interests at stake in the current escalation, even as it has so far been comparatively spared from US trade policy belligerence and China's reactions. In this context, the European Union should adopt an independent and proactive stance, building on recent efforts and going beyond them. The European Union, even more than the United States or China, has a strategic interest in the preservation of the global rules-based order embodied by the World Trade Organization (WTO). It must play a leading role in steering WTO reform and modernization, working closely with broadly aligned third countries such as Japan and other players. It should expand its outreach beyond its immediate negotiating counterparts in both the United States and China, and leading European officials at both the EU and member state levels should work at better understanding China. While strengthening its domestic policy instruments to address new challenges, such as the screening of foreign direct investment for security purposes, the European Union must also resist its own temptations of protectionism and economic nationalism. In support of these objectives, the European Union should prepare itself for difficult decisions, which may involve revising some of its current red lines in international trade negotiations. Conversely, the European Union should stand firm on principles such as refusing one-sided agreements and rejecting abusive recourse to national security arguments in trade policies. The European Parliament, in working with the European Council and the European Commission, will have a critical role to play in steering the European Union through these challenging times.
  • Topic: International Relations, Economics, Trade Wars, Trade Policy
  • Political Geography: China, Europe, Asia, North America, United States of America, European Union
  • Author: Alvaro Leandro, Jeromin Zettelmeyer
  • Publication Date: 08-2019
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: This paper explains and evaluates three proposals to create “safe assets” for the euro area based on sovereign bonds, in which sovereign risk is limited through diversification and some form of seniority. These assets would be held by banks and other financial institutions, replacing concentrated exposures to their own sovereigns. The paper focuses on three ideas: (1) to create multitranche “sovereign bond-backed securities” (SBBS), of which the senior tranche would constitute a safe asset; (2) to create a senior, publicly owned financial intermediary that would issue a bond backed by a diversified portfolio of sovereign loans (“E-bonds”); and (3) to issue sovereign bonds in several tranches and induce banks to hold a diversified pool of senior sovereign bonds (“multitranche national bond issuance”). Public attention (including public criticism) has so far focused on the first idea; the other two have not yet been seriously debated. The authors find that none of the competing proposals entirely dominates the others. SBBS do not deserve most of the criticism to which they have been subjected. At the same time, E-bonds and multitranche national bond issuance have several interesting features—including inducing fiscal discipline—and warrant further exploration.
  • Topic: Economics, Regional Integration, Risk, Fiscal Policy
  • Political Geography: Europe
  • Author: Steven Pifer
  • Publication Date: 03-2019
  • Content Type: Journal Article
  • Journal: The Ambassador's Review
  • Institution: Council of American Ambassadors
  • Abstract: For nearly five decades, Washington and Moscow have engaged in negotiations to manage their nuclear competition. Those negotiations produced a string of acronyms—SALT, INF, START—for arms control agreements that strengthened strategic stability, reduced bloated nuclear arsenals and had a positive impact on the broader bilateral relationship. That is changing. The Intermediate-range Nuclear Forces (INF) Treaty is headed for demise. The New Strategic Arms Reduction Treaty (New START) has less than two years to run, and the administration of Donald Trump has yet to engage on Russian suggestions to extend it. Bilateral strategic stability talks have not been held in 18 months. On its current path, the U.S.-Russia nuclear arms control regime likely will come to an end in 2021. That will make for a strategic relationship that is less stable, less secure and less predictable and will further complicate an already troubled bilateral relationship.
  • Topic: Diplomacy, Military Strategy, Nuclear Power, Deterrence, Denuclearization
  • Political Geography: Russia, United States, Europe, North America
  • Author: Julius Tsal
  • Publication Date: 03-2019
  • Content Type: Journal Article
  • Journal: The Ambassador's Review
  • Institution: Council of American Ambassadors
  • Abstract: In 2018, the U.S. Embassy in Tbilisi initiated people-to-people (P2P) exchanges to the United States for agricultural scientists and university leaders from the Russian-occupied Georgian territory of Abkhazia. An initial study tour in the spring of 2018 focused on mitigating the devastating agricultural damage from the Brown Marmorated Stink Bug (BMSB), and a second tour in the fall of 2018 focused on higher education leadership. Despite political sensitivities and logistical hurdles, such people-to-people programs increase participants’ understanding of the United States and give them an unbiased, first-hand experience of American civil society, its culture of innovation and democratic values. For otherwise isolated Abkhaz thought leaders, these experiences directly counter Russian anti-Western propaganda and demonstrate the benefits of Georgia’s pro-Western choice.
  • Topic: Agriculture, Civil Society, Imperialism, Propaganda
  • Political Geography: Russia, United States, Europe, Eastern Europe, Georgia, North America
  • Author: Dalibor Rohac, Matt Browne, Max Bergmann, Ismaël Emelien, Karin Svanborg-Sjövall, Andreas Johansson Heinö, Agata Stremecka
  • Publication Date: 10-2019
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Since 2016, concern over the resurgence of illiberal populist political parties and movements has been palpable in Europe and the United States. The election of Donald Trump, the United Kingdom’s referendum to leave the European Union, and the electoral advances of far-right parties in many European states, including France and Germany, created the sense that populist parties were a new, unstoppable political force in democratic politics.1 Yet in 2019, the notion that populist parties are the future of European politics seems far less certain. The term “populism” itself may have outlived its usefulness. Originally, it referred to parties and leaders who described themselves as true voices of the people against self-serving, out-of-touch elites—and it was prone to run roughshod over established political norms and institutions. Over the past three years, differences in approaches, tactics, and outlooks between different populist parties have emerged, making it clear that there is no clear populist governing strategy. Accordingly, beyond disrupting the current order, anti-establishment political forces in Europe share no actual transnational policy agenda. Yet populist and anti-establishment forces have upended European politics and contributed to fragmentation and uncertainty. As the example of the record turnout in the 2019 European parliamentary election illustrates,2 the EU itself has become an important dividing line for voters. The high turnout and raucous nature of the 2019 election portends animated debates over European policies. Gone are the days when the EU could move initiatives forward without much public attention or concern. In short, Jean Monnet’s “salami-slicing” method of incremental, technocratically driven European integration3 is dead. A more engaged and aware European public is in itself a positive development. Yet simultaneously, for better or worse, the sudden salience of European policies can present an obstacle to policy initiatives that otherwise would be seen as uncontroversial. Just as partisan divisions in the United States have plagued Washington with significant policy paralysis, the emergence of a similarly contentious and partisan politics in Europe may make it hard for Brussels to act. Europe has proven resilient over the past decade, but that resilience should not be taken for granted. The EU largely has failed to address its structural weaknesses that were exposed following the 2008 financial and fiscal crisis, meaning that the EU would confront a future economic crisis with the same limited toolbox it had in 2008.4 To make matters worse, influential populist actors could also obstruct swift action while benefiting politically at home from the EU’s failings. Unlike only a few years ago, fears of the EU’s sudden unraveling seem farfetched. Yet a protracted death by a thousand cuts, caused by populist leaders undermining EU rules and norms, remains a distinct possibility. The new instability of European politics poses a real challenge to the trans-Atlantic alliance. Unity among free and democratic states of the West is hard to sustain in the current political environment on both sides of the Atlantic. Yet at a time when the alliance faces a rising challenge from autocratic powers such as China and Russia, the case for unity and cooperation is stronger now than at any point since the end of the Cold War. This report seeks to chart a course for the EU and for the trans-Atlantic alliance, while acknowledging that the anti-establishment sentiments that reverberate through European politics are here to stay. While there is a strong case to be made for a Europe that works together to defend democratic values at home and abroad as well as a trans-Atlantic alliance that is willing to work in proactive partnership to tackle big global challenges—from climate change to terrorism to nuclear proliferation—that goal is still a long way off.
  • Topic: Foreign Policy, NATO, Authoritarianism, European Union, Populism
  • Political Geography: Europe, Eurasia
  • Author: Derek Scissors
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Official Chinese economic data are often the only game in town, but they are untrust­worthy. Sometimes they prove inaccurate; during downturns they are falsified outright. Finding inconsistency in official statistics demonstrates the problem but offers no solution, since it is rarely clear which series is better. Examining 15 major indicators for importance and reliability shows that growth in gross domestic product (GDP) and GDP per capita should be deemphasized. To illustrate, China’s GDP per capita is twice as high as official per capita disposable income. The latter can be spent; the former is an accounting result. Another conclusion: Arguably the most valuable indicators are the worst measured. Debt is reasonably estimated at present, but factor productivity and human capital are vital to medium-term performance and receive far too little attention.
  • Topic: Foreign Policy, Monetary Policy, GDP, Economy
  • Political Geography: China, Europe, Beijing
  • Author: Martin Höpner
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Max Planck Institute for the Study of Societies
  • Abstract: Germany is an undervaluation regime, a regime that steers economic behavior towards deterioration of the real exchange rate and thereby towards export surpluses. This regime has brought the eurozone to the brink of collapse. But it is much older than the euro. It was established during the Bretton Woods years and has survived all subsequent European currency orders. The regime operates in two steps: competitive disinflation against trading partners; and resistance against correcting revaluations. The Bretton Woods order provid- ed perfect conditions for the establishment and perpetuation of the regime: it was flexible enough for sufficient macroeconomic policy autonomy to bring about differential inflation rates, and sticky enough to delay and minimize revaluations.
  • Topic: Political Economy, Regional Cooperation, Capitalism, Inflation
  • Political Geography: Europe, Germany, Central Europe
  • Author: Mark Lutter, Martin Schroder
  • Publication Date: 02-2019
  • Content Type: Working Paper
  • Institution: Max Planck Institute for the Study of Societies
  • Abstract: Based on data that tracks CV and publication records as well as survey information from sociologists in German academia, we examine the effects of parenthood on the publication output of male and female academics. Results indicate that having children leads to a sig- nificant decline in the number of publications by women, while not affecting the number of publications by men. We also find that the gendered effect of children on productivity hardly mitigates differences in publication output between men and women, as women still publish about 20 percent less than men after controlling for the adverse effects of chil- dren on productivity. We further find that the gendered effect of childbearing depends partly on prior levels of women’s academic achievements, which suggests mechanisms of performance-driven self-selection. Lower-performing women tend to suffer a stronger motherhood penalty, while the publication output of more successful women (who have been granted academic awards) is not reduced through childbirth. The results indicate that women are better at managing the “double burden” of parenthood and career if external, award-giving committees have bestowed prestige upon them and indicated their potential for a scientific career. Overall, these findings contribute to a better understanding of how to reduce the adverse effect of children on female publication output.
  • Topic: Gender Issues, Children, Women, Feminism, Academia
  • Political Geography: Europe, Germany, Central Europe