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1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. The war-induced exodus from Russia: A security problem or a convenient political bogey?

Author:
Margarita Zavadskaya
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Since 24 February 2022, around 800,000 Russians have left Russia in reaction to the full-scale invasion of Ukraine. The largest proportion of new migrants was accepted by Kazakhstan, Georgia, Turkey, and Armenia. War-induced migration should be handled like any other migration, whether it involves asylum-seekers, economic migrants, or repatriates. Excessive politicization and fearmongering around migration, including political refugees and political oppositionists, is counterproductive, as it feeds into Kremlin propaganda and belligerent narratives. While there may be concerns about espionage or saboteurs, the primary focus should be on the socio-economic impact of Russian immigration. For the receiving states, especially in the post-Soviet space, the Russian migrants pose a socio-economic challenge rather than a political one. With an increasing probability of cross-border repression – persecution or intimidation of political migrants abroad – it is essential that the EU adopts a consistent response towards political migrants, including those from Russia.
Topic:
Security, Refugees, Borders, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and Eastern Europe

11. Russia’s regime transformation and the invasion of Ukraine: From a failed blitzkrieg to war as the new normal

Author:
Jussi Lassila
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia’s increasingly dictatorial and Soviet-nostalgic political leadership sees the invasion of Ukraine not only as a necessity when it comes to prevailing in the conflict with the West, but also as a chance to break free from Western influences. Vladimir Putin is acting as a referee in the elite’s hidden competition, which has been transformed into open rivalry in the context of the war. The competition over who is the most loyal to Putin’s war policy radicalizes the political discourse throughout. The Kremlin’s key challenge is to maintain the balance between citizens’ political apathy and the mobilization of society required in times of war. Civic passivity is central to the regime’s security, while justifying the continuation of the poorly progressing war requires an increasing militarization of society. The Russian public’s approval of the war has gradually diminished, and efforts to mobilize society in revenge for perceived losses have not changed the trend. Hence, Russia’s poor military success is thus far the fastest way to vitiate the legitimacy of Putin’s war regime.
Topic:
Security, Authoritarianism, Vladimir Putin, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

12. Centre-right parties in Germany and Sweden: Challenges and strategies in a changing political landscape

Author:
Sanna Salo and Tuomas Iso-Markku
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Centre-right parties have played a central role in stabilising European party politics and advancing European integration, but the increased fragmentation of party systems and the rise of the radical right present serious challenges to them. The way that centre-right parties respond has important implications for domestic and EU politics alike. Many European centre-right parties have become divided on their political profile and programme, debating between leaning towards the progressive-liberal or the conservative-authoritarian end of the political spectrum. In Germany, the rise of the radical-right AfD has fuelled disagreements within the CDU/CSU and generated demands to sharpen its profile. However, this has thus far not led to major changes to the CDU/CSU’s platform, as it is also challenged from the political centre by the SPD and the Greens. In Sweden, the Moderates have clearly reshaped their political agenda in the last decade, focusing on immigration and law-and-order issues, as well as adopting positions and rhetoric reminiscent of the SD. This shift culminated in the formation of a Moderate-led coalition government supported by the SD in late 2022.
Topic:
Politics, European Union, and Political Parties
Political Geography:
Europe, Germany, and Sweden

13. Mexico’s domestic decay: Implications for the United States and Europe

Author:
Lauri Tahtinen
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
President Andrés Manuel López Obrador (AMLO) has challenged Mexico’s democratic institutions, including the electoral commission INE, and relies on the military to run sectors of the economy and to provide internal security. Recognizing the continuing strategic importance of its southern neighbor, the United States is attempting to “friend-shore” American industry to Mexico despite trade disputes. Mexico’s economic convergence with the US is giving way to ideological divergence. In the past year, Mexico has called NATO’s stance on Ukraine “immoral” and openly aligned with the leftist, anti-US dictators of Cuba, Nicaragua, and Venezuela. Mexico’s internal development and shifting external stance could spark a return to a United States focused on the protection of its 19th-century borders instead of its 20th-century global footprint. European attention to the future of Mexico can help diversify the country’s trade and other partnerships, as well as shine a light on its democratic decay.
Topic:
Security, Defense Policy, Democracy, Europe, and Economic Policy
Political Geography:
Europe, Latin America, North America, Mexico, and United States of America

14. US-China geoeconomic rivalry intensifies: A risk or an opportunity for European companies?

Author:
Jana Titievskaia
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
As the US and China balance between the pursuit of strategic security interests and ambitions to attain economic growth, novel sources of risk are emerging for globally active businesses, ranging from sanctions to export controls. The Biden presidency will offer only moderate respite from the escalation of this geoeconomic rivalry, even as US-China trade recovers in the aftermath of the pandemic. In the face of US-China rivalry, the EU and its member states have opted for the third way of “open strategic autonomy”, including a range of trade instruments that will allow the EU to support the competitiveness of its companies more effectively. European companies need to closely monitor their risk exposure in various transmission channels and stay attuned to unexpected opportunities that can materialise in the form of market entry possibilities and the development of new niches.
Topic:
Hegemony, Rivalry, Strategic Interests, and Competition
Political Geography:
China, Europe, Asia, North America, and United States of America

15. Turkey in Central Asia: Possibilities and limits of a greater role

Author:
Toni Alaranta and Kristiina Silvan
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Turkey’s long-term search for strategic autonomy, shifting global power relations, and Central Asian governments’ desire to foster multi-vector foreign policies have prompted Turkey to successfully intensify its activities in Central Asia. From the 1990s onwards, Turkey’s activism in Central Asia has strengthened cultural, trade, and diplomatic relations. Its multilateral coordinating body, the Cooperation Council of Turkic Speaking States, is being further institutionalized into the Organization of Turkic States. Turkey’s potential for acquiring a greater role in the region is limited. Its economic engagement remains modest, and Central Asian states’ responses to the Taliban takeover in Afghanistan indicate that Russia and China remain the region’s preferred security partners. Although Turkey, China, Russia, and other external actors compete in Central Asia, no full-fledged confrontation has taken place in the region so far. Turkey’s new initiatives are unlikely to change this dynamic, as long as they are conducted in the spirit of inclusive multipolarity.
Topic:
Security, Foreign Policy, Strategic Interests, and Power
Political Geography:
Europe, Central Asia, Turkey, and Asia

16. Russia’s shifting foreign and security policy in Northern Europe: The new geopolitical meaning of ‘good neighbourliness’

Author:
Sinikukka Saari and Jyri Lavikainen
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Since the start of Putin’s third presidential term in 2012, geopolitical competition has also become rooted in the Nordic region, and small states’ room for manoeuvre in security policy has shrunk. In Russia’s view, maintaining ‘good neighbourly relations’ is primarily the responsibility of small states that always need to negotiate the limits of their sovereignty with great powers, such as Russia. From the Nordic point of view, the relations may require walking on eggshells. Prior to 2014, Norway was often mentioned among Russia’s ‘good neighbours’, but now Russia regularly calls off its policy of ‘reassurance and deterrence’. There are increasing signs that, in Russia’s view, a ‘good neighbour’ should refrain from extensive security collaboration and training with NATO and the US. Hence, Finland and Sweden cannot wholly avoid political tension with Russia merely by staying outside of the Alliance.
Topic:
Security, Foreign Policy, Military Strategy, and Strategic Interests
Political Geography:
Russia and Europe

17. Schengen reform and the instrumentalisation of asylum-seekers: New Commission proposals legitimate states’ existing practices

Author:
Saila Heinikoski
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The European Union lacks a consistent asylum and migration policy, which makes it vulnerable to the instrumentalisation of asylum-seekers, most recently visible in the Belarusian actions at its borders with EU countries. In December 2021, the European Commission published proposals on tackling the instrumentalisation of migrants and reforming Schengen rules, but they appear to miss their targets. Instead of addressing the hostile third country, the instrumentalisation proposal weakens the rights of asylum-seekers at the border. Schengen reform proposes the possibility of an indeterminate period of reintroduced internal border controls, legitimating the years-long border controls in six Schengen countries (France, Germany, Denmark, Austria, Sweden and Norway). Asylum and migration policy is also progressing, as the 18-month-old proposal for the New Pact on Migration and Asylum is expected to move forward, contributing to the badly needed harmonisation of policies.
Topic:
Migration, Reform, Asylum, and Humanitarian Crisis
Political Geography:
Europe

18. The EU´s quest for geoeconomic power: Pursuing open strategic autonomy

Author:
Niklas Helwig and Mikael Wigell
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The EU is adapting its policy toolkit under the heading of ‘open strategic autonomy’, which combines the Union’s market-liberal preferences with more assertive economic policies. While the EU is largely deploying defensive measures to protect itself from unfair trade practices and economic coercion, it is also increasingly moving towards a more strategic use of economic tools. The EU’s economic defence capabilities include initiatives to improve competitiveness in key strategic sectors (such as cloud computing, semi-conductors, and pharmaceuticals) as well as instruments to deter, block or retaliate against distortive or coercive measures by other powers. The strategic policies of the EU include trade and investment instruments for economic ‘binding’, such as the new ‘Global Gateway’ initiative, as well as means for leveraging the attractiveness of access to the single market to promote the EU’s norms and interests. The EU’s recent sanctions against Russia demonstrates the Union’s coercive capabilities in the economic domain, and its potential as a geoeconomic power.
Topic:
Regional Cooperation, European Union, Strategic Interests, and Strategic Autonomy
Political Geography:
Europe

19. Germany’s shifting policy towards Russia: The sudden end of Ostpolitik

Author:
András Rácz
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
A reassessment of Germany’s relations with Russia started after the annexation of Crimea in 2014, and was catalyzed by several offensive actions taken by Moscow, including hacking attacks against the national parliament, disinformation campaigns, as well as an attempt on the life of Russian opposition politician Alexei Navalny. The new German government, formed following the September 2021 Bundestag election, is different from its predecessors in all important respects regarding foreign policymaking towards Russia. The Chancellor, the governing coalition, as well as the composition of the parliament have all changed. These changes have been pushing Germany towards a gradual reconsideration of its traditional Ostpolitik, which perceived mutually beneficial economic cooperation with Moscow as a guarantee of stability and predictability in Europe. Russia’s full-scale war against Ukraine, launched on 24 February, marks the point of no return. The war made Berlin cross several important red lines of German foreign policy, such as agreeing to very heavy sanctions against Russia, halting the Nord Stream 2 pipeline, and delivering weapons to Ukraine. This de facto marks the end of Ostpolitik.
Topic:
Security, Foreign Policy, Defense Policy, and Strategic Interests
Political Geography:
Russia, Europe, and Germany

20. France in the Eastern Mediterranean and the MENA region’s geopolitical competition: French grandeur or European sovereignty?

Author:
Toni Alaranta
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The global rivalry between the US and China, as well as geopolitical competition and instability in the EU’s southern neighbourhood, are perceived by France as urgent matters requiring stronger EU foreign policy, conceptualized as European sovereignty. The French foreign policy elite are still largely committed to the idea of France’s exceptional role in the world, and to the extent that the EU as a whole fails to live up to the tasks presumed by France, continue their attempts at forging coalitions of the willing. France has in recent years built a web of strategic partnerships, for example with Greece, the Republic of Cyprus, the United Arab Emirates, and Egypt, through which it aims to govern the instability in the EU’s southern neighbourhood. The aim is also to deter regional adversaries such as Turkey, a strategy that needs to be re-evaluated due to the Russian invasion of Ukraine. France often equates its national interests with those of the EU. While this can be seen to enhance European sovereignty, it also risks increasing the perception that the EU would be a participant in various Middle Eastern conflicts. This undermines the EU’s ability to function as an objective broker and anchor of norms.
Topic:
Regional Cooperation, Hegemony, Foreign Interference, and Competition
Political Geography:
Africa, Europe, Middle East, France, North Africa, Mediterranean, and MENA

21. European politics in times of crisis: Developments in Germany, France and Italy, and consequences for the EU

Author:
Marco Siddi, Niklas Helwig, and Tuomas Iso-Markku
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The war in Ukraine and the long-term consequences of the Covid-19 pandemic have put the spotlight on important political developments in the three largest EU members, Germany, France and Italy. In Germany, the new coalition government led by Olaf Scholz is trying to adapt the country’s foreign, energy and fiscal policies to the new international scenario, relinquishing some of its long-term tenets. France has just re-elected Emmanuel Macron as President, who is likely to advocate more flexibility in EU fiscal rules and strategic autonomy in foreign, defence and energy policy. Mario Draghi’s government has attempted to steer Italy out of the economic and health crisis and has sought closer cooperation with France. Italy will hold a general election by June 2023, with four parties vying for pre-eminence. In the wake of Brexit, Berlin, Paris and Rome have tried to revive the integration process. In the near future, it is expected that they will continue to drive EU politics, even if sometimes with different priorities, in close consultation with European partners.
Topic:
Politics, Regional Cooperation, European Union, Leadership, and Political Crisis
Political Geography:
Europe, France, Germany, and Italy

22. Western financial warfare and Russia’s de-dollarization strategy: How sanctions on Russia might reshape the global financial system

Author:
Maria Shagina
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Since 2014, Russia’s de-dollarization plan has been guided by security and geopolitical considerations. By dumping the US dollar from its foreign currency reserves, Russia diverted from the traditional approach where liquidity and the credibility of the issuer determine the choice of currency. In 2022, Russia has doubled down on its efforts to de-dollarize the economy. What started as de-dollarization in 2014, transformed into full-blown rouble-ization in 2022. Following the dynamic of an emerging multipolar world order, the global financial system is also gravitating towards fragmentation and currency multipolarity. The overuse of sanctions could strengthen revisionist countries’ desire to increasingly conduct their trade in non-dollar currencies in an attempt to avoid US oversight. If current trends continue, the de-dollarization effort could gain ground and undermine the primacy of the US dollar.
Topic:
Monetary Policy, Sanctions, Finance, and Conflict
Political Geography:
Russia, Europe, and Global Focus

23. Russia’s connectivity strategies in Eurasia: Politics over economy

Author:
Kristiina Silvan and Marcin Kaczmarski
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia has been attempting to strengthen connectivity within Eurasia since the early 2000s as a part of its policy to “pivot to the East”. Yet due to limited resources and political will, the tangible effects of its connectivity strategy have remained limited. The Russian Far East would greatly benefit from an improved connectivity infrastructure, given its proximity to Asian markets and the abundance of natural resources in the region. However, the attempts to accelerate regional socio-economic development by strengthening the region’s connectivity have failed to make a difference. In post-Soviet Central Asia, Russia adopted a passive approach to connectivity in the 1990s and 2000s, which meant focusing on maintaining and protecting the links inherited from the Soviet Union. It was only the pressure of external actors – both China and the West – that prompted Moscow to take a more active stance in the region in the 2010s. The launch of China’s Belt and Road Initiative pushed Russia to promote its own grand vision of trans-continental connectivity, the Greater Eurasian Partnership, designed to reaffirm Moscow’s great-power status and its equal standing with China. While it lacks economic and administrative foundations and its implementation is highly implausible, it has fulfilled a symbolic role as Russia’s grand connectivity project for Eurasia.
Topic:
Economics, Infrastructure, Belt and Road Initiative (BRI), Rivalry, and Resource Allocation
Political Geography:
Russia, China, Europe, and Asia

24. A policy agenda for Finland’s entry into NATO: From ‘one for one’ to ‘one for all’

Author:
Edward Hunter Christie
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
At the NATO Madrid Summit in June 2022, Allies invited Finland and Sweden to join the NATO Alliance. In preparing for its membership, Finland will need to go through a reflection process on how it intends to contribute to NATO’s core tasks and make the most of its membership. Finland should consider making substantial contributions to the deterrence and defence posture in the Baltic Sea region, including in the Baltic states, and elsewhere on the Eastern Flank. In parallel, Finland should also ensure it contributes to the Southern Flank. Finland should aim to hit the ground running into the next cycle of the NATO Defence Planning Process (NDPP) and fulfil all relevant capability targets. Finland should also aim to “start strong to stay strong” on all existing NATO Pledges, notably those on defence investment, cyber-defence, and resilience. It is typical for individual NATO Allies to seek a salient role when it comes to certain specific topics. For Finland, the Arctic (Northern Flank) and resilience seem most promising.
Topic:
Security, Defense Policy, NATO, Regional Cooperation, and Military Strategy
Political Geography:
Europe and Finland

25. The EU’s strategic multilateralism: Global engagement in an era of great-power competition

Author:
Niklas Helwig
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The crises of previous years and the rise of strategic competition have put the EU’s traditional approach to multilateralism under pressure. The EU’s pledge for “a more stringent and strategic approach to multilateralism” has become even more relevant with Russia’s war of aggression against Ukraine. Three adjustments to the EU’s approach to multilateralism signify a more strategic approach. In a move towards a more instrumental engagement, the EU is using international cooperation as an avenue to protect its interests in the global competition. The EU is displaying more willingness than before to leverage its power bilaterally and through its work in international organisations. It is also more willing to focus on ad hoc frameworks in order to preserve the effectiveness of global cooperation and extend it to new areas of governance. Strategic multilateralism comes with certain risks attached. It can undermine the legitimacy of the formal multilateral system and the global protection of fundamental rights. The EU needs to weigh the benefits of a more strategic approach against the risks of global fragmentation.
Topic:
Regional Cooperation, European Union, Multilateralism, and Strategic Interests
Political Geography:
Europe

26. NATO’s Nordic enlargement and Turkey’s reservations: Trilateral Memorandum of Understanding in the context of Turkey’s wider strategic interests

Author:
Toni Alaranta
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
With the signing of the trilateral Memorandum of Understanding (MoU), Turkey dropped its initial objection to Finland’s and Sweden’s NATO membership, but has since argued that the conditions agreed in the MoU have not yet been fulfilled. In addition to requiring Sweden and Finland to take a more vigorous stance regarding the Kurdistan Workers’ Party (PKK) and its extension in Syria, Turkey has used Nordic NATO applications as a tool to raise these issues on NATO’s agenda, pressuring the US in particular for a change in its Syria policy. Turkey’s reservations need to be conceptualized within its determined search for strategic autonomy, increased room for manoeuvre, and an ideological decoupling from the West. Turkey’s strategic interests have increasingly diverged from the rest of the alliance, likely leading to a more permanent intra-alliance opposition position in the coming years, part of which are the ongoing trilateral talks between Turkey, Finland and Sweden.
Topic:
Security, Defense Policy, NATO, and Regional Cooperation
Political Geography:
Europe, Turkey, and North America

27. Russian policy towards Central Asia 30 years after the collapse of the Soviet Union: Sphere of influence shrinking?

Author:
Kristiina Silvan
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia views Central Asia as its sphere of influence and attempts to keep the five post-Soviet countries, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, in its geopolitical orbit. Central Asian countries’ dependency on Russia is decreasing, albeit at a different pace in different policy spheres and geographical areas. This variation depends upon factors ranging from Moscow’s priorities, the presence and capability of Russia and other actors, and Central Asian domestic issues. Russia’s policy in Central Asia is rooted in bilateral relations, but from the early 2000s onwards, Moscow has sought to integrate the region’s states into multilateral organizations that it leads, primarily in the spheres of economy and security. Russian influence in the region is greatest in the security sphere and, due to the rise of China, smallest in the economic sector. People-to-people contacts remain strong as a result of the common Soviet past and current migration flows. Central Asian countries share Russia’s authoritarian outlook on politics. Russia remains a powerful player in Central Asia, but Moscow’s lack of a forward-looking strategy and its current great-power posturing threaten its dominance in the future.
Topic:
Foreign Policy, Hegemony, Post-Soviet Space, and Influence
Political Geography:
Russia, Europe, Central Asia, and Asia

28. Climate change and Finnish comprehensive security: Insights into enhanced preparedness

Author:
Emma Hakala
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Climate change is already threatening the security and stability of societies in various ways, and the impacts will only be exacerbated in the future. The security consequences of climate change can be broadly categorised into direct, cascading and transition impacts. Direct impacts refer to the damage to people and infrastructure caused by extreme weather and other climate phenomena, while in cascading impacts climate change is combined with political, economic and cross-border effects. Transition impacts are linked to the adverse consequences of climate change mitigation and adaptation. It is increasingly imperative to comprehensively integrate climate change into foresight and preparedness activities. In addition to the identification of individual climate security impacts, it is also necessary to identify and continuously monitor broader political and economic developments relevant to climate security. Cooperation across national borders is important for advancing the climate security agenda. International organisations and individual countries should coordinate and exchange information in order to develop preparedness mechanisms and practices.
Topic:
Security, Climate Change, Environment, and Infrastructure
Political Geography:
Europe and Finland

29. The geopolitics of the energy transition: Global issues and European policies driving the development of renewable energy

Author:
Marco Siddi
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Fighting climate change makes a green energy transition imperative. The transition will have significant geopolitical consequences, notably a shift of power away from fossil fuel producers that do not adapt to a decarbonizing world. Access to critical minerals, rare earth elements and storage technology for renewable energy applications will be essential, and will determine the new geopolitics of energy. Some critical elements such as cobalt are only found in a few areas of the globe. Hydrogen is a carbon-free energy carrier that will allow the storage and dispatch of energy produced by intermittent renewable sources such as solar and wind. While hydrogen trade could lead to new dependencies, it will provide a back-up for the electricity system and strengthen energy security. Currently, China is a leader in securing resources for the energy transition. The Belt and Road Initiative could consolidate its position. As it strives to be a leader in the energy transition, the EU is focusing on securing relevant supply chains, deploying technology and developing hydrogen capacity. International cooperation will accelerate the transition and give the world a chance to avoid catastrophic climate change.
Topic:
Energy Policy, Environment, Green Technology, Renewable Energy, and Green Transition
Political Geography:
Europe and Global Focus

30. Russia’s quest for digital competitiveness: The role of private businesses in securing state interests

Author:
Andrey Indukaev
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Russian leadership prioritizes digital technology for the country’s security and international standing, but also for its economic and technological success and development. These diverse goals are closely intertwined within the logic of geoeconomic competition. The Russian authorities have increased their involvement in the ICT sector over the years and this has led to the hybridization of business and state logic of action at all levels. While the state has an upper hand in the relationship, this does not exclude the possibility of mutually beneficial partnerships. Moscow-based start-up NtechLab’s close collaboration with the city of Moscow is a case in point. For private businesses, the Russian state’s proximity is a mixed blessing that creates business development opportunities but also major risks. These risks limit Russia’s capacity to make digital technology the driver of modernization of its economy.
Topic:
Business, Private Sector, Strategic Interests, and Digitalization
Political Geography:
Russia and Europe

31. Russia’s domestic politics have become part of the West’s Russia policy: The stakes are rising when Navalny returns to Russia

Author:
Jussi Lassila
Publication Date:
01-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
Among the most signifcant events in Russia in 2020 were the Covid-19 pandemic, reactions to the protests in Belarus, and the poisoning of top opposition politician Aleksey Navalny. Te frst two were clearly events of international signifcance, but so was the medical treatment given to Navalny, frst in Omsk and then in Berlin, after he suffered from symptoms of poisoning dur- ing a flight from Tomsk in Siberia to Moscow in August. In December, a joint study by the investigative journalist groups Bellingcat and The Insider, along with CNN, Der Spiegel and Naval- ny’s FBK Foundation, showed that it was difficult to find more con- clusive evidence of the Kremlin’s involvement in the assassination attempt by a chemical weapons- related poisoning group under the FSB that had been following Na- valny for years. This kind of op- eration would hardly have been possible without the blessing of high-level intelligence. Te ques- tion of whether the FSB leader- ship was proactive in resolving the “Navalny problem” or whether the order came from the Kremlin is irrelevant. Te revealed pattern confrms the long-standing trend of the strengthened role of the se- curity services, especially the FSB, in Russian politics. It is consistent with Putin’s approach to political processes being increasingly seen as issues of national security. Navalny’s self-confidence and style in the revelation videos related to the investigation, receiving ap- proximately 45 million views in less than a month, underscore the extent to which the FSB failed. The target did not die or become paralyzed, but recovered relatively quickly and bounced back, playing for higher and more radical stakes than before. Navalny’s role and reputation as the Kremlin’s most prominent critic has been based on the political pressure on the Kremlin generated by expos- ing elite corruption. While the will- ingness of citizens to see Navalny as an alternative to Putin varies consid- erably – with the majority indifer- ent to politics as a whole – Navalny’s numerous revelations have created an alternative to Russia’s ofcial re- ality, the political potential of which the regime obviously fears.
Topic:
Security, Foreign Policy, Conflict, Regionalism, and Domestic Policy
Political Geography:
Russia and Europe

32. An Abrupt Awaking to the Realities of a Pandemic: Learning Lessons From The Onset of COVID-19 in the EU and Finland

Author:
Mika Aaltola, Johanna Ketola, Aada Peltonen, and Karoliina Vaakanainen
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Although their timing and nature is unexpected and disrupts normality, pandemics are not black swans, but rather an expected feature of a feverishly con- nected and globalizing world. Since the end of the Cold War, there have been several serious cases of and close calls with pandemics, including SARS in 2003, H1N1 infuenza (“swine fu”) in 2009 and Ebola in 2014. By now, we know the usual features of pandemics, how they emerge and the shape of their temporal context: rapid onset leading to a politically compelling impact followed by decreasing attention and lessening restric- tive policies resulting, in some cases, in the return of the disease. Te most serious pandemics, like the 1918 infuenza pandemic (“Spanish fu”), come in waves. Te less restrictive policies are followed by subsequent waves, partially propelled by diminishing attention and wishful policies until a cure or vaccination is found, or immunity achieved. Despite the growing awareness, pandemic diseases nevertheless often catch us of guard and bring about human misery. Te latest form of Severe Acute Res- piratory Syndrome caused by a novel coronavirus, Covid-19, which spread like wildfre around the globe in 2020, came as a surprise even though the point of origin and secrecy surrounding its emergence were similar to that of its predecessor, SARS, in 2003. In other words, pandemics continue to include “un- known” aspects, which have to do with their specifc characteristics, perhaps most notably their timing, but also other features such as infection and fatality rates, patterns of spread, and the outbreak location zone(s). Our starting point in this Working Paper is that se- rious contagious diseases are political as their cascad- ing and nonlinear efects impact people’s livelihoods and disrupt normality. Tis applies to the most recent coronavirus pandemic, as highlighted in this paper. Te key research question concerns how the European Union (EU) and its member states, illustrated through the case of Finland, became aware of the prevailing health crisis, and the kind of political ramifications that the response had, and could have had. Te focus of this paper is on the frst two and a half months of the coronavirus pandemic, from January to mid-March 2020, by which time the pandemic had replaced the prevailing agendas in the EU and in its member states and saturated the public debate, reach- ing a tipping point. Te onset entails a build-up to a clear situational policy necessity, a sentiment that drastic, exceptional actions need to be taken to con- tain or at least to slow down the pandemic outbreak, as well as a remorseful debate and fnger-pointing at actions that should have been taken sooner. Te paper studies this build-up phase while recognizing that the next phase of political reaction to a pandemic tends to include the sentiment that enough has been done or even that the actions that were taken earlier were somewhat excessive and overblown.1 Tis phase may be followed by – and is an important constituent of – yet another phase, the second wave of the pandemic. The timeframe for the Working Paper extends to mid-March 2020 when Covid-19 became the prevail- ing topic of public concern in Europe. We refer to this prevalence as the tipping point. Te term tipping point is used to identify the critical juncture, both nation- ally as well as in the EU, when sudden changes to be- haviour took place at the public and political levels. At such moments, public attention becomes heightened, single-issue focused, and rushed. Te pressure for po- litical action becomes paramount. Te mobilization of resources as well as the introduction of diferent states of emergency suddenly seem possible. Te emergent, situational requirements become the context for pol- icymaking, instead of the requirements of the then prevailing normality; namely, exceptional political acts can prevail when urgency seems to necessitate them. Te situated characteristics of a pandemic include a heightened sense of exceptionality, particularly if there is a sense that prior preparations at national, regional, and global levels were inadequate and the contingency planning insufcient. Any delays and hesitations are easily seen as weaknesses although, in normal times, they are often the keys to stable and rational political deliberation. Tis was the scenario that actualized with Covid-19, as the preparedness planning for pandem- ic security was largely perceived as defcient and the global as well as the European regional coordination in short supply.
Topic:
Security, Regional Cooperation, European Union, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Finland

33. EU Strategic Autonomy in the Shadow of Geopolitical Rivalry: A View from Moscow

Author:
Sergey Utkin
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The EU is determined to maintain the transatlantic bond, while Russia tends to interpret the EU’s strategic autonomy precisely as autonomy from the US. The Western unity effort is significantly strengthened by the poor state of the EU’s relations with Russia. Russia is ready to pay lip service to the idea of a more capable EU, but instead it sees opportunities in areas where bilateral cooperation with member states is possible. The EU-wide consensus is doomed to remain critical vis-à-vis Russia for the foreseeable future. The EU will increasingly focus on gaining autonomy from Russia, primarily in the energy field and in terms of hard security deterrence. The EU-Russia geopolitical tension, centred on the common neighbourhood, is long-term and might cause as yet unseen damage to the relationship if it is not handled carefully.
Topic:
Security, Regional Cooperation, European Union, Conflict, Regionalism, Autonomy, Rivalry, and Strategic Interests
Political Geography:
Russia and Europe

34. Rule-Bending Debates in Recent Finnish EU Policy: Pacta Sunt Servanda?

Author:
Saila Heinikoski
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Finnish EU policy line has traditionally been adaptable and compromise-seeking, but recent examples related to the rule-bending of EU law reveal some new tendencies. Finland has stood out from the European mainstream in several cases that relate to the rule-bending of EU law in three different ways: rule-bending by others, collective rule-bending, and its own rule-bending. First, intervening in rule-bending by others has found support in Finnish EU policy. Finland prioritized the rule of law in its 2019 Council presidency, as well as in the Government Report on EU policy published on 28 January 2021. Second, alleged collective rule-bending seems to be linked to the threat of federalism. In negotiations on the recovery and resilience facility in 2020, there was a wide domestic debate on whether the result was consistent with the traditional interpretation of EU treaties. Third, Finland’s own rule-bending of the Schengen Border Code’s six-month limit for internal border controls during the Covid-19 crisis seems to have been quietly accepted, with the Interior Minister acknowledging the existence of an “illegal state of affairs”.
Topic:
Regional Cooperation, Treaties and Agreements, European Union, Rule of Law, Regionalism, and Federalism
Political Geography:
Europe and Finland

35. Transatlantic relations and European strategic autonomy in the Biden era: Neglect, primacy or reform?

Author:
Ville Sinkkonen and Garret Martin
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The relief in Europe following Joe Biden’s election has been tempered by uncertainty as to how the new administration might approach transatlantic relations. This paper lays out three paths that the US could take. The benign neglect model assumes that Washington will be consumed by domestic challenges and competition with Beijing, de facto downgrading Europe as a priority. In the primacy model, the US sees its leadership as indispensable for sustaining the international order and battling authoritarianism. The US would expect Europe to follow its lead, while old reservations about European strategic autonomy would resurface. The major reform model would see a humbler US foreign policy, understanding that it cannot repair the fragile international liberal order alone. Supporting European strategic autonomy would be key in devising a new transatlantic division of labor. Domestic challenges and ingrained policy habits mean that the US will likely gravitate toward neglect or primacy in its dealings with Europe. A major reform of the transatlantic relationship, while desirable, would require significant political will and investment on both sides of the Atlantic.
Topic:
Security, International Cooperation, Leadership, Transatlantic Relations, Autonomy, and Strategic Interests
Political Geography:
Europe, North America, and United States of America

36. The Eastern Mediterranean conflict: From Turkey-Greece confrontation to regional power struggles

Author:
Toni Alaranta
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
For several decades, the Eastern Mediterranean confict consisted of a three-part struggle over territorial wa- ters, sovereignty and exclusionary national narratives between Turkey, Greece, and the Republic of Cyprus. Its origins can be traced as far back as the Greek War of Independence in the 1830s, the Lausanne Peace Trea- ty determining the current borders of the Republic of Turkey in 1923, and the failed bicommunal federal state established in Cyprus in 1960. Regarding the Cyprus confict, the best – but ultimately lost – opportunity to resolve the issue was the 2004 Annan Plan for a bicom- munal federal state. Today, the Eastern Mediterranean confict is a multi-level and multi-actor power strug- gle that is unlikely to wane any time soon. In addition to Turkey, Greece, and Cyprus, it also includes actors such as France, Italy, Libya, Egypt, and the United Arab Emirates. Tis Briefng Paper frst identifes the main actors involved, and then proceeds to analyze the key de- terminants of the confict. Te paper concludes that tension in the Eastern Mediterranean will continue in the foreseeable future. A full military confrontation is unlikely, however, as NATO can provide a necessary platform for a Greece-Turkey de-escalation. Tis is likely to prevent an actual war, but will not be enough to produce any lasting solution in the increasingly confict-ridden Eastern Mediterranean regional power struggle.
Topic:
Security, Conflict, Regionalism, and Rivalry
Political Geography:
Europe, Turkey, and Greece

37. Russia Meets Climate Change: The Domestic Politicization of Environmental Issues and External Pressure to Decarbonize

Author:
Jussi Lassila and Marco Siddi
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia’s role in international climate policy is central. Russia is the fourth largest emitter of carbon dioxide and has vast potential for developing renewable energy. However, its fossil fuel-based economy and the legitimacy it creates for the Kremlin make climate action inherently difficult. Thanks to the growing politicization of environmental issues, the relevance of climate change may increase in the Russian public debate. The effects of climate change, such as melting permafrost and the Siberian forest fires, could catalyze this process. Climate-sceptical populism may sometimes feature in the rhetoric of the political elite, but its proliferation in society is unlikely. Most Russians are concerned about climate change, even if less so than Western Europeans. However, Russia’s decision-making on climate policy is highly centralized, with little or no input from civil society actors. The energy transition in Europe can eventually deprive Russia of its main market for fossil fuel exports, but it also creates new prospects for cooperation in green energy development.
Topic:
Civil Society, Climate Change, Environment, Carbon Emissions, and Decarbonization
Political Geography:
Russia and Europe

38. EU-China Investment Agreement: the EU’s Balancing Act between Values and Economic Interests

Author:
Saila Turtiainen
Publication Date:
03-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
The ratification process for the EU’s new investment agreement with China is expected to be very difficult. Although the aim is to improve EU-China relations, the process of getting the agreement approved in the EU will end up causing further tensions with China as the EU tries to strike a balance between promoting its values and economic interests.
Topic:
International Cooperation, International Trade and Finance, European Union, Conflict, and Economic Cooperation
Political Geography:
China, Europe, and Asia

39. Ukraine’s Half-Hearted Reforms: What Needs to Change in the West’s Approach?

Author:
Arkady Moshes and Ryhor Nizhnikau
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Comprehensive internal reforms, along with security cooperation, are a key pillar of West-Ukraine interaction. Thus far, however, the Western effort has not sufficed to overcome the resistance of the local elites and make the reforms irreversible. High hopes raised by Volodymyr Zelensky’s election as Ukraine’s president in 2019 were short-lived. In three priority areas – anti-corruption, the judiciary and the economy – reforms have stalled. Instead, Zelensky has started to adapt the same socio-political system that the West aims to transform to his own political purposes. Western support – or even leadership – is once again becoming crucial in keeping Ukraine on the reform track. Ongoing domestic developments seriously challenge Zelensky’s administration, creating a window of opportunity for a more successful application of reform conditionality. In turn, a new US administration may be much more capable of using this emerging opportunity than its predecessor. If they are to promote reforms more efficiently, Western actors should go beyond the technocratic approach and recognize their own “ownership” of the process. Progress with reforms requires direct and high-level political engagement to enforce the implementation of agreements and to empower pro-reform forces inside the country.
Topic:
Security, Science and Technology, Reform, and Leadership
Political Geography:
Europe and Ukraine

40. President Niinistö’s two-track initiative: towards stronger Arctic dialogue and revitalization of the Helsinki Spirit?

Author:
Matti Pesu and Henri Vanhanen
Publication Date:
04-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
In his recent op-ed, President Sauli Niinistö reintroduced the idea of an Arctic summit. The timing of the meeting could be favourable. As the 50th anniversary of the 1975 Helsinki Final Act is approaching, Niinistö also hoped for a revitalization of the “Spirit of Helsinki”. The aim is hampered by global tensions, however.
Topic:
Security, Foreign Policy, Diplomacy, and International Cooperation
Political Geography:
Europe, Finland, and Arctic

41. Russia's Redefined View on Strategic Stability: A Security Dilemma in Northern Europe?

Author:
Jyri Lavikainen
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Te concept of strategic stability has traditionally been associated with a stable nuclear relationship between leading nuclear powers, the US and USSR/Russia. Teir last commonly agreed defnition of the concept in 1990 formed the basis of the START negotiations, defning strategic stability as a nuclear relationship, where neither side has an incentive to attempt a disarming strike. In 2016, Russia and China suggested replacing the concept of strategic stability with ‘global strategic stability’ by arguing that the conventional defnition of strategic stability as a military category concerning only nuclear weapons was outdated.1 Instead, they seek to redefne strategic stability as a concept con- cerning the state of great-power relations, with both political and military categories, the military category being the focus of analysis in this paper.
Topic:
Military Strategy, Conflict, Strategic Stability, Rivalry, and Strategic Interests
Political Geography:
Russia, China, Europe, and Asia

42. Strategic Autonomy and the Transformation of the EU: New Agendas for Security, Diplomacy, Trade and Technology

Author:
Niklas Helwig
Publication Date:
04-2021
Content Type:
Special Report
Institution:
Finnish Institute of International Affairs
Abstract:
The EU is caught up in a debate over whether to increase its autonomy with regard to the wider world. International developments and crises of recent years have raised the question of whether Europeans should be more capable of managing the risks stemming from their exposure to global trade and possible over-reliance on allies for their security. This report analyses how the pursuit of strategic autonomy transforms EU policies in the field of security, diplomacy, trade, and technology. The report makes recommendations on how the EU can advance strategic autonomy, while striking a balance between protectionist tendencies and the need to stay open to international engagement and cooperation. Instead of focusing on the divisive question of strategic autonomy from others, member states should pay attention to more constructive approaches and concrete actions to strengthen strategic autonomy. In each of the policy fields, the right mix of protection of European assets, provision of the economic and political basis, and the projection of European interests and values abroad will be vital.
Topic:
Security, Diplomacy, International Trade and Finance, Regional Cooperation, Science and Technology, European Union, Regionalism, Autonomy, and Strategic Interests
Political Geography:
Europe

43. The EU’s new trade strategy: Gearing up for competition over values

Author:
Okko-Pekka Salmimies and Saila Turtiainen
Publication Date:
05-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
The EU’s new trade strategy instrumentalizes trade policy more forcefully in order to promote EU values such as democracy and human rights. A value-based and more defensive trade policy can lead to conflicts spirals, especially with China. The EU also needs to be prepared for potential setbacks in developing the transatlantic relations.
Topic:
International Trade and Finance, Regional Cooperation, European Union, Regionalism, and Strategic Competition
Political Geography:
Europe

44. Russia’s Nationalities Policy before and after the 2020 Constitutional Amendments: Is the “Ethnic Turn” Continuing?

Author:
Veera Laine
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
In January 2020, Russian President Vladimir Putin proposed a set of constitutional amendments, aiming to secure the continuity of his power in the years to come. At the same time, the amendments allowed ideological visions on national identity to be inscribed in the Constitution. Since summer 2020, the Constitution has enhanced the symbolic status of the Russian language, which is now not only the state language but also the language of those who speak it (i.e. of “ethnic” Russians or “Russian-speakers”), implicitly referred to as the state-founding people. These provisions, together with support for compatriots abroad, not only continue the turn observable since the 2010s in Russia’s nation-building from a civic vision towards an ethnic vision of nation, but also challenge the existing interpretations of state borders. The provisions on safeguarding the “historical truth” and establishing a single framework for education hinder the republics from pursuing their identity policies. This Working Paper argues that the amendments both adjust the earlier changes and signal new ones in the official discourse and nationalities policy.
Topic:
Corruption, Governance, Authoritarianism, Democracy, Constitution, and Leadership
Political Geography:
Russia and Europe

45. Russia’s Corona Diplomacy and Geoeconomic Competition: A Sputnik Moment?

Author:
Sinikukka Saari
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Russian science, technology and innovation (STI) system is geared towards global geoeconomic competitiveness and is based on three S’s: state control, sovereignty and self-sufficiency. State-sponsored biotechnological innovation is a component in Russia’s geoeconomic strategy: in the case of Sputnik V, Russia’s commercial and strategic objectives are intertwined. The Russian state’s close involvement in development, marketing and propagating Sputnik V – as well as its readiness to skip standard practices in order to make headway with the product – create well-founded distrust towards it in Western markets. In the emerging and developing markets, Sputnik V suffers from insufficient manufacturing capacity. In many countries, only a fraction of promised doses have been delivered, and setting up local manufacturing capacity outside the EAEU takes time. The European states should pay more attention to linkages between Russian innovation policies and its foreign, security and military policies. For Russia, these are not separate silos but build upon and support each other.
Topic:
Diplomacy, International Cooperation, Public Health, Strategic Competition, Pandemic, and COVID-19
Political Geography:
Russia and Europe

46. The Belarusian Revolution of 2020: Afterword

Author:
Arkady Moshes and Ryhor Nizhnikau
Publication Date:
08-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
The Belarusian Revolution challenged the Lukashenka regime but did not bring it down. It is, however, clear that the structural factors behind the revolution have been sustained. The West should increase efforts to achieve political and economic transformation in the country.
Topic:
Development, International Cooperation, Authoritarianism, Democracy, Revolution, and State Building
Political Geography:
Europe and Belarus

47. Turkey’s relations with the US and the EU at the beginning of the Biden presidency: Prospects for change?

Author:
Toni Alaranta
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
US-Turkey ties are strained because of conflicting interests in Syria and on a more fundamental level due to Turkey’s different interpretation of the ongoing global power shift, and its concurrent search for strategic autonomy and cooperation with Russia and China. EU-Turkey ties have long been dysfunctional, with the EU focusing on maintaining the refugee deal, while Turkey has become increasingly authoritarian and aggressive in its external relations, resulting in a permanent ‘wait-and-see’ approach by the EU. While the US and the EU have recently agreed that they should synchronize their stance on Turkey, both are also characterized by an increasingly feverish internal debate about how best to respond to Turkey’s behaviour. A genuine fresh start in Turkey-West relations is somewhat illusionary as most of the underlying problems are more likely increasing rather than decreasing, pointing to a more permanent dual-track policy of cooperation and containment, both by the US and the EU.
Topic:
Diplomacy, International Cooperation, European Union, Leadership, Conflict, and Transition
Political Geography:
Europe, Turkey, North America, and United States of America

48. Russian Duma Election 2021: Kremlin Supremacy Achieved Through Unprecedented Pressure and Fraud

Author:
Jussi Lassila
Publication Date:
09-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
Maintaining the ruling party’s overwhelming majority was an obsession for the Kremlin, regardless of the growing dissatisfaction. The election result, achieved through blatant fraud, further undermines the Kremlin’s connection with citizens.
Topic:
Corruption, Governance, Authoritarianism, Elections, Democracy, and Leadership
Political Geography:
Russia and Europe

49. Engaging Brazil in the era of climate action: Can Europe and the United States devise a new globalisation?

Author:
Lauri Tahtinen
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Increased deforestation in the Amazon is the outcome of Brazil’s long political crisis. What started in 2013 with a bus fare hike has traversed through contestable impeachment and populist uprising into a constitutional stalemate. European institutional investors have been in the vanguard of checking Brasília’s lax approach to deforestation and other environmental challenges. While investors continue to carry a big stick, European and US political leadership should consider what carrots they can offer Brasília. Brussels and Washington have changed course rapidly from an approach that emphasised closer ties with Brasília to one of dissatisfaction and distancing. This is both a cause and an effect of Brazil’s international standing diminishing both in terms of economy and country brand. In recent years, Brazil has simultaneously tried to raze more rainforest and build North Atlantic trading relations; the two cannot be done at the same time. A politics of rapprochement with Brazil requires much closer coordination between Europe and the United States than the parties are accustomed to; a commitment to a climate-sensitive globalisation is necessary from Brasília.
Topic:
Climate Change, Environment, Globalization, and International Cooperation
Political Geography:
Europe, Brazil, South America, and North America

50. Finland Elected to the UN Human Rights Council: Hard Work and Responsibility are Key to a Successful Membership

Author:
Katja Creutz
Publication Date:
10-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
Finland will be a member of the UN Human Rights Council, whose task is to promote and protect human rights. The outlook seems gloomy for the upcoming three-year period, with human rights coming under increasing pressure. Finland needs to be active, and to consider taking the lead on the situations in different countries.
Topic:
Human Rights, International Cooperation, United Nations, Leadership, and UN Human Rights Council (HRC)
Political Geography:
Europe and Finland