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201. Exposure to War and Its Labor Market Consequences over the Life Cycle

Author:
Sebastian T. Braun and Jan Stuhler
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
With 70 million dead, World War II remains the most devastating conflict in history. Of the survivors, millions were displaced, returned maimed from the battlefield, or spent years in captivity. We examine the impact of such wartime experiences on labor market careers and show that they often become apparent only at certain life stages. While war injuries reduced employment in old age, former prisoners of war postponed their retirement. Many displaced workers, particularly women, never returned to employment. These responses are in line with standard life‐cycle theory and thus likely extend to other conflicts.
Topic:
History, Displacement, World War II, Welfare, Prisoners of War, and Labor Market
Political Geography:
Europe and Germany

202. NATO in the North: The emerging division of labour in Northern European security

Author:
Matti Pesu
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The Russian war of aggression has rendered Northern Europe an increasingly significant region for Euro-Atlantic security. A stable and secure Northern Europe is a critical precondition for a safe and stable Euro-Atlantic region. The alliance should treat Northern Europe as a strategic whole although the different subareas of Northern Europe have their distinctive security dynamics and concerns. NATO is currently improving its deterrence and defence posture. It is simultaneously shifting its military strategy from a model of deterrence by reinforcement to one of deterrence by denial. NATO’s evolving posture and strategy in Northern Europe should be underpinned by a more explicit division of labour. The regional allies and stakeholders can be divided into four categories in terms of their role in regional security: frontline nations, hubs, security providers and the ultimate security guarantor. The regional frontline nations include the Baltic states, Finland and Poland, which can also play a role as hubs and even security providers along with the United Kingdom and Germany. Denmark, Sweden and Norway are first and foremost hubs. The United States remains the ultimate security guarantor of the area.
Topic:
Security, Defense Policy, NATO, and Deterrence
Political Geography:
Europe, Nordic Nations, Arctic, and Baltic Sea

203. US-EU climate change industrial policy: Pulling in different directions for cooperation, competition, and compromise

Author:
Cordelia Buchanan Ponczek
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The United States and the European Union agree on prioritizing policies to address climate change, which includes securing supply chains for components essential to low-carbon technology. Despite this agreement, their policies to address climate change and low-carbon technology could foster competition. The US Inflation Reduction Act (IRA) reflects the competitive advantage of the US to draw in the best talents, capabilities, and resources from outside sources. This leads to a disconnect between the industrial policy benefits of the IRA within the US and the potential competitive impact the IRA has on US relationships with allies. The EU’s policies are shaped by the bloc’s desire to respond to external actors—including China and Russia—while protecting the common market and building up its internal capability to ensure security of supply. This is complicated by individual member-state objectives. The 2024 US presidential election could bring change: A Republican administration might not share the EU’s outlook on climate change, the need for government intervention, or even the close transatlantic relationship seen during the Biden administration.
Topic:
Climate Change, Governance, European Union, Economic Policy, and Geoeconomics
Political Geography:
Europe, Finland, and United States of America

204. The geoeconomics of the hydrogen era: Towards a new global energy architecture

Author:
Timo Behr
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Clean hydrogen is crucial for ensuring the transition to a carbon-neutral economy, and large quantities of it will be needed in the future. The transition from a hydrocarbon to a hydrogen economy will have significant geopolitical and geoeconomic consequences. Due to its unique properties, hydrogen will not become the “new oil”. While oil and gas have encouraged a concentration of power – in the hands of producer countries, major oil companies, and around strategic choke points – hydrogen will favour a dispersion of power. The transition to a hydrogen economy will see strong competition over technologies, raw materials, and regulatory standards. Hydrogen has the potential to make the world energy trading system more balanced, more democratic, and less prone to price fluctuations, but it could equally lead to fragmentation, inadvertently contributing to current geopolitical divisions. For the EU and Finland, the transition towards a hydrogen economy presents both challenges and opportunities. Concerted action and active diplomacy will be needed to prevent Europe from being overtaken by others and slipping into new dependencies.
Topic:
Climate Change, Governance, Hydrogen, Energy, and Geoeconomics
Political Geography:
Europe and Finland

205. The role of space technologies in power politics: Mitigating strategic dependencies through space resilience

Author:
Markus Holmgren
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Space activity is experiencing a boom with the scope and importance of space technologies and services fuelling rapid growth upon growth. While the space boom is catalysing transferral of the ownership of previously public infrastructure and capabilities to corporate control, many space technologies have critically important military and civilian applications. As the importance of space sectors grows, both public and private cyberoperations targeting space infrastructure proliferate. This makes it more difficult to attribute the perpetrators of cyber operations. The United States’ lead in the space sector is increasing. Starlink, a satellite internet constellation operated by the US-based company SpaceX, will serve to bind many nations to one more US-controlled communication architecture. As a result of the implications of space technologies for comprehensive security, building space resilience is becoming paramount. States must diversify their supply of space-related services and tighten cooperation with like-minded states.
Topic:
Security, Foreign Policy, Defense Policy, Economic Policy, and Geoeconomics
Political Geography:
Europe and Finland

206. Outlining EU-Turkey relations: The impacts of the Ukraine war and Turkey’s crucial elections

Author:
Toni Alaranta
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Turkey-EU relations are affected by Russia’s war on Ukraine and its consequences for the EU’s place in the world. Another major factor is Turkey’s presidential and parliamentary elections held in May, which are defining the prospects for the country’s democratic future and its foreign policy. The second round of the presidential election took place on 28 May. The re-election of President Erdoğan indicates that the unilateral foreign policy and strained relationship with the West is likely to continue, although there is a chance of a short-term burst of cooperation due to Turkey’s economic troubles. There are increasingly divergent views about Turkey in the West, and the EU’s future relationship with Turkey needs to accommodate these different conceptualizations of the country as a state actor. The EU needs to be flexible in the coming months and to find ways to engage with Turkey in a more fruitful manner, irrespective of the election results.
Topic:
Bilateral Relations, Elections, European Union, and Russia-Ukraine War
Political Geography:
Europe and Turkey

207. EU reform is back on the agenda: The many drivers of the new debate on treaty change

Author:
Steffen Müller
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Institutional reform is back on the European Union’s agenda, with the European Parliament, the Commission and large member states like Germany and France all supporting changes to the way the EU operates. While opening the EU treaties is not without political risk and there is still no consensus on doing so among member states, this momentum for reform is unlikely to wane in the near future. There are several reasons for the new reform drive. In particular, reforms are intended to strengthen the EU’s democratic credibility, to prevent institutional erosion in a time of permanent crisis, to make the EU more resilient to blockades by individual governments, and to lay the groundwork for the accession of new member states. While some of the proposed changes could be achieved without treaty change, the number and variety of issues at stake entails the risk of getting bogged down in parallel debates and missing opportunities for package deals. The most efficient way to deal with the EU’s reform needs would therefore be the launch of a treaty convention.
Topic:
Treaties and Agreements, Reform, and European Union
Political Geography:
Europe

208. Europe’s policies for a green transition: The European Commission’s geopolitical turn and its pitfalls

Author:
Marco Siddi
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The European Commission has published numerous policy documents concerning the European Green Deal and the energy transition since 2019. Several have an important foreign policy component. Following the Covid-19 crisis and especially Russia’s attack on Ukraine in February 2022, the discourse and policy objectives of these documents have taken a ‘geopolitical turn’, meaning that the EU’s security, interests and cooperation with Western allies have become more prominent than before. The REPowerEU plan, the new External Energy Strategy and the Green Deal Industrial Plan exemplify this shift by combining green and geopolitical objectives. The EU’s geopolitical turn in external energy politics involves several risks. Third countries could perceive some policies as ‘green protectionism’ or ‘green colonialism’. Domestically, some business actors dislike restrictions on imports of critical raw materials and green technology from abroad, whereas additional mining in the EU may not be compatible with biodiversity and environmental protection. At the same time, ‘offshoring’ mining outside the EU may transfer the ecological consequences to contexts with laxer regulation.
Topic:
Geopolitics, European Commission, and Green Transition
Political Geography:
Europe

209. The changing dynamics of the G7, G20 and BRICS: Informal multilateral cooperation is increasingly important in an era of strategic competition

Author:
Juha Jokela and Alana Saul
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Increasing strategic competition among major powers has had a negative effect on the efficacy of formal multilateral cooperation. This has also been reflected in informal forums such as the G7, G20 and BRICS. Yet some new dynamics have emerged. Since Russia was excluded from the G8 in 2014, the G7 has become a key forum for Western cooperation. Russia’s full-scale invasion of Ukraine has further geared the group towards a stronghold of Western economies and democracies. The BRICS group has continued to meet at leaders’ level, and has consolidated its position. Despite variation in its members’ interests, the group aims to balance the G7, and its importance for China and Russia has been elevated. Currently, the G20 constitutes a forum in which strategic competition can potentially be managed. Along with the G7 and BRICS countries, other powers play an increasingly notable role. The dynamics of the group also displays an increasing “Southernization” of informal multilateral cooperation.
Topic:
European Union, Democracy, Multilateralism, and Strategic Competition
Political Geography:
Russia, China, Europe, Asia, and United States of America

210. Russian aggression and the European Arctic: Avoiding the trap of Arctic exceptionalism

Author:
Harri Mikkola, Samu Paukkunen, and Pekka Toveri
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
In its efforts to limit the Western defence posture in the Arctic, Russia has successfully exploited the “High North, low tension” mantra and the notion of the Arctic as an exceptional region of peace and cooperation. At the same time, Russia has managed to build its position of relative strength in the Arctic through systematically developing its military capabilities. To create a threat of escalation, Russia has also used offensive military exercises and disruptive hybrid operations against the Western Arctic states in the region. Arctic economic resources and military assets continue to play an essential role for Russia in pursuing its strategic goals, and for its ability to carry out acts of aggression. Through regional cooperative practices, the West has unintentionally facilitated this capacity. The West has limited its military activity in the Arctic to mitigate tensions. This has been a one-sided effort. The Western Arctic states should thus focus on building comprehensive deterrence in the region.
Topic:
Security, Defense Policy, Military Affairs, and Deterrence
Political Geography:
Russia, Europe, and Arctic