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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