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2051. The Politics of Food and the Myth of the Self-Reliant Refugee in Uganda

Author:
Nina Soudan
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Changing geopolitical dynamics and a widespread ‘donor reset’ have resulted in reduced refugee assistance funding, compelling World Food Programme to make significant cuts to food assistance. This reduction has coincided with a strategic and theoretical shift towards refugee self-reliance in northern Uganda. While this responsibilisation of refugees has been globally praised as progressive and beneficial, refugees’ settlement experiences have questioned the sustainability of this approach, for whom it works, and under what conditions. This brief argues that WFP’s premature reduction of assistance, driven by the promotion of self-reliance, ultimately pushes refugees into greater hardship, while simultaneously highlighting the flaws in Uganda’s refugee model.
Topic:
Food Security, Geopolitics, Refugees, Donors, and World Food Program (WFP)
Political Geography:
Uganda and Africa

2052. Climate Justice and Human Mobility: Bridging EU Commitments and Policies

Author:
Alicia Scodanibbio
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The complex interplay between human mobility and climate change has emerged as a pressing global concern, with profound implications for social, economic, and environmental stability. This policy brief examines the European Union’s response to the climate-migration nexus, tracing its historical evolution and current challenges. It highlights the need for a human rights-centred approach to policymaking, emphasising the importance of addressing the structural inequalities and power imbalances inherent in climate-induced migration. By integrating climate justice principles, the EU can pave the way for a more inclusive and sustainable approach to the challenges posed by climate change and human mobility.
Topic:
European Union, Institutions, Mobility, and Climate Justice
Political Geography:
Europe

2053. Figures on the Billiard Table: EU-China Dynamics in the Wake of the 2024 European Elections

Author:
Bart Dessein and Jasper Roctus
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
While still a powerhouse in its own right, Europe’s relative influence on the world stage has been diminishing over the last few decades. Data, for example, highlight a significant shift in global trade patterns away from the old continent. According to a recent Brookings’ calculation, South-South trade had by 2009, i.e., around the time of the global financial crisis, increased from 10.9 per cent to 25.0 per cent worldwide. South-South trade thus surpassed North-North trade for the first time in world history. Today, 35.0 per cent of global trade is accounted for by South-South merchandise trade, and just 25.0 per cent of global trade is North-North trade. One important factor in this is a surging China-Africa trade. With China’s bilateral trade with Africa rising from 2.7 billion dollar in 1990 to 209 billion dollar in 2022, China has now become Africa’s single largest trading partner.
Topic:
Bilateral Relations, Elections, European Union, Trade, and Strategic Partnerships
Political Geography:
China, Europe, and Asia

2054. Looking towards the North: Belgium’s Role in the Arctic

Author:
Karen van Loon
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The Arctic region has re-emerged as an area of geostrategic importance and is attracting increasing attention from Belgium. Accelerating climate change has altered living conditions in the region. The prospect of greater commercial activity and rapid technological advances, combined with growing interest from non-Arctic states, means that the region is increasingly connected to, and an integral part of, the rest of the world. As this process unfolds, the Arctic could impact the global balance of power and the conditions of rivalry and competition between the great powers. While this may occur peacefully, the possibility of sudden, rapid changes and unpredictable shocks are no guarantee for stability. The Arctic is warming nearly four times faster than the rest of the planet. Climate change is transforming the region and creating significant challenges in the areas of security and defence, access and navigation, energy, infrastructure, cooperation, and governance. As a result, states in the region and elsewhere are turning their attention to the Arctic. This has important implications for the region’s security and stability.
Topic:
Defense Policy, NATO, European Union, and Strategic Interests
Political Geography:
Europe, Belgium, and Arctic

2055. Towards a Comprehensive Mining Strategy for the DRC?

Author:
Erik Kennes
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Former Minister of Mining Willy Kitobo summarizes in a recent book what he considers to be the main problems of the DRC mining sector. He rightly underlines the largely insufficient geological data about the DRC’s mining resources, problems related to the correct implementation of the 2018 mining code, challenges of industrial and artisanal exploitation, and finally the huge environmental problems caused by mining practices in the DRC. While these issues are obviously important, they overlook the national and international political and economic context that frame the choices available to a government in this matter. A narrowing of political to technical problems characterizes the nature of official public debate about the mining sector in the DRC. The strategic choices for the mining sector made by and for the country, on a short, medium and long term, if any, are almost never debated, not only to hide the decisions taken from the public eye, but probably also because the necessary analysis has not been undertaken. Expertise in the academic community for the major part remains technical. Civil society very partially makes up for this gap, but even then, their activity is almost always issue-based and tied to funding for a particular project. Still, civil society for natural resources has developed over the years an impressive level of competence in issues of mining governance. Unfortunately, their expertise is not valued and used beyond the relatively short timeframes they must work in.
Topic:
Civil Society, Natural Resources, Mining, and Domestic Policy
Political Geography:
Africa and Democratic Republic of the Congo

2056. China and Geopolitics as Ontology

Author:
Bart Dessein
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Human beings are storytellers; stories form the cultural framework that gives sense to their behavior and existence. Nations, likewise, “are guided to act in certain ways, and not others, on the basis of the projections, expectations, and memories derived from […] available social, public, and cultural narratives”. Denying a political culture the right to own its story is tantamount to denying that political culture, and the human beings who belong to it, their very right to existence. Territorial integrity and unity After its defeat against European powers in the Opium Wars (1839–1842, 1856–1860), the Manchu government of the Qing Dynasty (1644–1911) was forced into signing the ‘unequal treaties’ (bu pingdeng tiaoyue). This put both the political leadership of the Manchus and the value and effectiveness of the traditional Confucian political ideology to the question. From this, the aspiration developed to create a Han Chinese nation state that would be built on Western political, social, and economic concepts. When the Republic of China (Zhonghua minguo) decided to join World War I in 1917 (in practice, the Chinese participation to World War I consisted of a contingent of some 140,000 laborers – the so-called ‘Chinese Labor Corps’ – who were active in the logistics of the war in Belgium and France), this was partly because of the conviction that this would enable China to position itself as a modern nation state among equals. However, after the war, the 1919 Versailles Treaty stipulated that the territorial possessions Germany had acquired through the ‘unequal treaties’ would not be returned to China, but had to be transferred to Japan.
Topic:
Foreign Policy, European Union, History, and Strategic Partnerships
Political Geography:
Europe and Asia-Pacific

2057. Demographic Jigsaw: Puzzling Out a Resilient EU

Author:
Maria Gargano
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
In December 2019, for the first time, the President of the European Commission Ursula von der Leyen assigned a portfolio containing demography as a policy area to Vice-President Dubravka Suica. As the predictions for the European Union are currently looking at a continent whose population median age is rising increasingly fast, the mission letter tasked the Vice-President to lead the response to the challenges presented by the demographic shift. The modus operandi indicated was to be supporting all the groups concerned – especially the children, the old and those living in rural areas. However, this portfolio’s objectives were not supported by an EU-specific competence to act on demography, nor a dedicated budget or service in the Commission. Also at Member States level, this matter remains scattered around different national ministries dealing with health, territorial planning, regional, interior, among others. Nonetheless, the different areas and groups of the population impacted by demographic changes have presented in the past four years multiple entry-points for the European Commission to promote initiatives such as: the care strategy, the child guarantee and lastly the demography toolbox.
Topic:
Demographics, European Union, Resilience, and European Commission
Political Geography:
Europe

2058. Exploring the Potential of Minilateralism for the Europe-Mediterranean Partnership

Author:
Roee Kibrik
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The Mediterranean and Europe, as interconnected regions sharing geographical spaces and proximity, severe challenges, common interests and intertwined goals, present a compelling opportunity to explore minilateralism as a framework for fostering cooperation and developing resilience. This research examines the potential of minilateralism to contribute to the Europe-Mediterranean partnership, highlighting the rationale, objectives, potential areas of focus, and expected outcomes of promoting minilateral frameworks in this context. Two minilateral frameworks will be examined: Israel-Greece-Cyprus and Israel-Morocco-European Union (EU). Based on this examination, the research will discuss particular insights regarding these specific configurations, and general insights regarding characters, opportunities and challenges of minilateralism in the region as a way to foster the Europe-Mediterranean partnership.
Topic:
Regional Cooperation, European Union, Partnerships, Resilience, and Minilateralism
Political Geography:
Europe, Israel, Greece, Morocco, Cyprus, and Mediterranean

2059. Europe as a Geopolitical Actor: Reforming the EU’s Narrative in North Africa

Author:
Zine Labidine Ghebouli
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
This paper will examine the gap between the promises and self-perception of the EU and its member states in North Africa, and the realities of implemented policies. It is true that the founding principle of the EU, i.e., to promote peace and prosperity, has never been more pivotal in policy frameworks. However, Europe on the level of both the EU and its member states is confronting complex post-COVID dynamics such as major life changes, further weakening of vulnerable economies, and deeper sociopolitical fractures. Added to this dangerous mix of challenges, the invasion of Ukraine is not only a violation of the latter’s territorial integrity and sovereignty but is also a symptom of an overall weakened security order both in Europe and abroad (De Clerck-Sachsse, 2022). At a time of multiple crises, it is imperative to reassess Europe’s partnerships in North Africa to develop a new narrative that is based on realistic advantages and limitations.
Topic:
Sovereignty, Reform, European Union, Geopolitics, and Russia-Ukraine War
Political Geography:
Europe and North Africa

2060. Mask Off: Implications of the EU’s “Geopolitical Awakening” for its Relations with the MENA Region

Author:
Johannes Späth
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
Russia’s invasion of Ukraine has forced European foreign policy-makers to reassess their view of international relations and reconceptualise the European Union (EU)’s approach to it. A broad consensus has emerged that the foreign policy of the EU needs to become more geopolitical. A sentiment echoed and championed by Ursula von der Leyen, who, since assuming the role of President of the European Commission in December 2019, has actively advocated for a more assertive and strategic EU presence on the global stage (Bayer, 2019). The High Representative of the European Union for Foreign Affairs and Security Policy, Josep Borrell, has labelled these developments as “the awakening of geopolitical Europe” (Borrell, 2022). He further insisted that a more geopolitical European outlook on the world should not be temporary but should become the “new normal” (Borrell, 2022). This suggests a fundamental and lasting shift in the EU’s approach to external relations. Given the ambiguity of the term ‘geopolitics’, which has at least five different meanings (Kundani, 2023), many questions about the EU’s new normal remain to be answered: What does a more geopolitical foreign policy entail? What would be the implications of such a new approach regarding the European Neighbourhood, in particular the Middle East and North Africa (MENA) region? And how can such an approach be reconciled with the EU’s liberal principles? This paper aims to assess these questions from a realist perspective. The article proceeds as follows. The first part examines the different conceptualisations of geopolitics and assesses which of them EU policy-makers refer to. The second part examines whether a more geopolitical EU foreign policy towards the MENA region can be seen as a paradigm shift or rather a continuation of existing policies. The third part considers how the “geopolitical awakening” can be reconciled with the EU’s liberal principles. The paper concludes by drawing on the findings to develop concrete recommendations.
Topic:
International Relations, Foreign Policy, European Union, Geopolitics, and Russia-Ukraine War
Political Geography:
Middle East and North Africa

2061. Türkiye-EU Relations and the European Political Community in the Aftermath of Russian Invasion: Is the Transactional Turn Here to Stay?

Author:
Başak Alpan
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
Bilateral relations between Türkiye and the European Union (EU) acquired an EU conditionality dimension with the 1999 Helsinki decision, granting the country the EU candidacy status. Nevertheless, especially since the March 2016 EU-Turkey Statement, also known as Türkiye-EU Refugee Deal, what we see is a thorough shift in Türkiye-EU relations from a conditionality perspective to transactionalism, coupled with several domestic and international developments. In the aftermath of the Russian invasion of Ukraine, the significance of geopolitics and the heightened relevance of realpolitik also contributed to a renewed focus on strategic and pragmatic issues, relegating normative concerns to the background within Türkiye-EU relations. All in all, the shift from a conditionality perspective to a security-based logic within the framework of Türkiye-EU relations was mainly determined and characterised by the so-called “transactional turn”. Within this very transactionalist paradigm, both the EU and Türkiye want to pursue their short-term interests at the expense of a long-term principled engagement for some time. The launch of the European Political Community (EPC) on 6 October 2022 with 44 European heads of state and government (including all 27 EU member states as well as Türkiye) also contributed to this transactional tide, which aimed to “emphasise European geopolitical cooperation in light of Russia’s aggression against Ukraine; to remedy enlargement fatigue by providing an additional forum for exchange between EU candidates and member states; as well as create a forum for exchange with non-EU security actors” (Tcherneva, 2023). The EPC’s rather flexible structure and focus on mini-lateralism, which could provide greater freedom for leaders to focus on their immediate concerns, also raises eyebrows about whether the EPC would be attentive enough (and even have the mandate) to safeguard human rights, democracy, and the rule of law (Jurkovic, 2023). In light of these debates, the aims of this paper are twofold. First, it aims to explore how recent transactional initiatives between Türkiye and the EU in general and the EPC initiative in particular have unfolded and have been perceived by the Turkish diplomats and foreign policy experts. This endeavour to understand the Turkish perceptions of Türkiye-EU relations mainly focusing on recent transactionalism between the parties will be explored with a particular focus on three thematic layers, namely the foreign policy, migration and energy through semi-structured interviews with Turkish diplomats and foreign policy experts. The main rationale behind picking up these thematic layers is to identify, analyse and describe better the complex nature of Türkiye-EU relations with a particular focus on these policy fields (namely foreign policy, migration and energy), which recently witnessed the highest intensity of interactions between two parties. Second, the paper discusses the significance of the EPC within this very transactional turn and aims to understand whether the EPC is another repercussion of the increasing transactionalism. The final aim of the paper will be to understand whether the EU foreign policy, on the one hand, and the bilateral Türkiye-EU relations, on the other, would evolve in a completely transactional and security-based manner leaving no room for normativity amidst the current global uncertainties and challenges, as well as bringing together policy recommendations for the future.
Topic:
Foreign Policy, Migration, Bilateral Relations, European Union, and Russia-Ukraine War
Political Geography:
Europe, Turkey, and Middle East

2062. Securing European Interests from the Mediterranean to the Persian Gulf: Rethinking EU Strategic Autonomy at Sea

Author:
Jean-Loup Samaan
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The discussion about the implications of an objective like strategic autonomy has primarily circled around the question, could the Europeans defend themselves against a Russian offensive without US support? (Barrie et al., 2019; Meijer & Brooks, 2021). This scenario is a critical one, especially considering the long-term implications of the Russia-Ukraine war. Nevertheless, it presents a narrow view of European security interests shaped only by challenges from its eastern flank. As a result, the debate tends to put an emphasis on the need to invest in European ground and air capabilities for a Cold War-like scenario of military operations on the continent. This paper does not discount the demands of the Russian challenge on Europe’s military posture, but it offers a different perspective by looking at an under-researched topic: the concurrent need to secure European interests in the maritime domain vis-à-vis threats originating from the area going from the Mediterranean to the Strait of Hormuz.
Topic:
Defense Policy, European Union, and Strategic Autonomy
Political Geography:
Europe and Mediterranean

2063. The Migration Agreements in Euro-Mediterranean Relations for a Geopolitical Europe

Author:
Ezgi Irgil
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The discussion about the implications of an objective like strategic autonomy has primarily circled the question, could the Europeans defend themselves against a Russian offensive without US support? (Barrie et al., 2019; Meijer & Brooks, 2021). This scenario is a critical one, especially considering the long-term implications of the Russia-Ukraine war. Nevertheless, it presents a narrow view of European security interests shaped only by challenges from its eastern flank. As a result, the debate tends to emphasize the need to invest in European ground and air capabilities for a Cold War-like scenario of military operations on the continent. This paper does not discount the demands of the Russian challenge on Europe’s military posture, but it offers a different perspective by looking at an under-researched topic: the concurrent need to secure European interests in the maritime domain vis-à-vis threats originating from the area going from the Mediterranean to the Strait of Hormuz.
Topic:
Security, Migration, Geopolitics, and Strategic Autonomy
Political Geography:
Europe and Mediterranean

2064. Infrastructures, energy and digitalisation: pillars for the sustainable development of transport in the Western Mediterranean

Author:
Mark Furness, Jordi Selfa, Sassi Hammami, Pier Paolo Raimondi, and Michel Noussan
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
With the Russian aggression on Ukraine and the war in Gaza being prolonged over time the Mediterranean region at large is in total turmoil. The Policy Study entitled “Infrastructures, energy and digitalisation, pillars for the sustainable development of transport in the Western Mediterranean” aims at contributing with shared reflections and formulation of policy proposals to the challenges and strategies that the region faces in the field of promoting sustainable development in the transport sector. To this end, the Policy Study delves into this topic from these three cross-cutting dimensions in the Western Mediterranean: infrastructures, energy and environment, and digitalisation. The European Institute of the Mediterranean (IEMed) and the Centre for Transportation Studies for the Western Mediterranean (CETMO) have taken on this stimulating task by continuing for a third year the preparation of a Policy Study that involves various authors who are experts in the field, while also unveiling some recommendations of public policy addressed to the Presidency of the Group of Transport Ministers for the Western Mediterranean (GTMO 5+5). Indeed, this publication released as a Policy Study comes within the framework of the Med Think 5+5 network of Western Mediterranean think tanks, a multidisciplinary platform of exchange associated with the 5+5 Dialogue, which brings together policymakers, practitioners and academics from the Western Mediterranean area. Considering transport and logistics as one of the most relevant sectors to foster socio-economic development and regional integration in the Western Mediterranean, the Med Think 5+5 network has been committed to promoting debate and knowledge-sharing on the issue, building upon support and expertise of the CETMO as Technical Secretariat of the Group of Transport Ministers for the Western Mediterranean (GTMO 5+5). As a matter of fact, the Med Think 5+5 convened seminars (2018, 2021) dedicated to the analysis of trends in the Western Mediterranean transport and logistics sectors, organised back-to-back with the GTMO 5+5. In this context, this Policy Study, which is part of the work programme of GTMO 5+5 under the Maltese presidency, aims at giving response to the challenges posed by climate change in the region and how the transport sector can counter it and adapt to it through digitalisation, the transformation and connection of transport with infrastructures and energy.
Topic:
Infrastructure, European Union, Transportation, Energy, and Sustainable Development
Political Geography:
China, Europe, North Africa, and Mediterranean

2065. Towards Inclusive Mediterranean Economies: Advancing Women’s Economic Empowerment in the Region

Author:
IEMed/EuroMeSCo
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
In this first publication of the MedWE programme, the IEMed and the Union for the Mediterranean aim to contribute to applied research on the crucial area of gender equality and women’s empowerment. In the contemporary Mediterranean landscape, women face many obstacles that hinder their complete economic and social advancement. This publication is the result of the conference organised in cooperation with LECE in October 2023 in Barcelona. During this conference, the MedWE program brought together experts, policymakers, and entrepreneurs to explore strategies for overcoming barriers and promoting women’s economic empowerment in the Mediterranean region. Through a series of panel discussions, key challenges, opportunities in the areas of education and workforce participation, entrepreneurship, access to finance, legal and regulatory reform, and gender equality in the work environment were examined. Various stakeholders shared expertise and effective practices to foster women’s economic empowerment across different sectors and levels within the Euro-Mediterranean region. This policy study, combined with the work of the Union for the Mediterranean, intends to establish a new line of work which addresses gender as a central element for advancing towards a more inclusive Mediterranean. Through recommendations that will serve as a valuable resource for policymakers, business leaders, activists, and scholars committed to forging a fairer and more just future for all inhabitants of the Mediterranean, the paper seeks to foster greater gender equality and social inclusion in the region. By identifying key challenges and proposing strategies, it contributes to promote women’s economic empowerment across the Mediterranean.
Topic:
Women, Equality, Inclusion, Empowerment, and Gender
Political Geography:
Europe, North Africa, and Mediterranean

2066. Renewable Energy and Electricity Interconnection Megaprojects in North Africa: Prospects for Euro-North Africa Cooperation

Author:
Michaël Tanchum, Hussein Suleiman, Alexander P. Martin, Tristano Sainati, and Jose Rodrigo Juarez Cornelio
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
This Joint Policy Study delves into North Africa’s renewable energy landscape, examining the potential and challenges of megaprojects in the region. With a specific focus on renewable energy production and exports, it explores the intricacies of megaprojects in Morocco, Egypt, Algeria and Tunisia, assessing their successes, hurdles, and future potential. North Africa, especially the Sahara Desert, has vast potential for renewable energy production due to its exceptionally high solar irradiation levels, positioning it as an ideal site for solar energy projects. Economically and geopolitically, there is a strong rationale for Euro-North African collaboration to enhance North Africa’s ability to generate and export renewable energy in a way that benefits both regions. However, despite this significant potential, North African countries have faced numerous geopolitical, economic, societal and infrastructural obstacles in fully capitalising on these resources.
Topic:
Development, Infrastructure, Electricity, Renewable Energy, and Solar Power
Political Geography:
Europe and North Africa

2067. Policy impacts of the Climate Change Conferences in the Mediterranean

Author:
Jérémie Fosse and Haiat Jellouli
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
The Mediterranean region, a recognized climate and biodiversity hotspot, faces accelerated and multifaceted impacts from climate change, with implications for its socio-economic stability, ecosystems, and public health. Rising temperatures, extreme climate events, sea-level rise, water scarcity, and biodiversity loss threaten the environmental, social and economic foundations of the region, especially in sectors like agriculture, tourism, and fisheries taking place in densely populated areas with fragile ecosystems. Both terrestrial and marine temperatures in the region have already increased by 1.5°C above pre-industrial levels. This trend is expected to continue, with projections suggesting a further rise of between 0.5 and 6.5°C by the year 2100. Other alarming projections include an increase in surface water temperatures by 1 to 4°C throughout the century and a significant reduction in rainfall. Furthermore, sea levels in the Mediterranean have already risen by 6 cm over the past two decades, with an expected increase of 43 to 84 cm by the end of the century. The United Nations Framework Convention on Climate Change (UNFCCC) Conferences of the Parties (COP) have been instrumental in galvanizing global attention and action on climate issues. From the early COPs that focused on foundational agreements like the Kyoto Protocol to the more recent and ambitious Paris Agreement at COP21, these conferences have played a crucial role in shaping the global climate regime. For the Mediterranean, the COP process has provided a framework within which regional and national efforts can align with broader global objectives, particularly in reducing greenhouse gas emissions and enhancing climate resilience. The Paris Agreement, with its goal to limit global warming to well below 2°C, and ideally to 1.5°C, is especially significant for the Mediterranean, where even small increases in temperature can have outsized impacts. The commitment to both mitigation and adaptation, alongside the establishment of mechanisms for climate finance, technology transfer, and capacity building, has offered Mediterranean countries the tools to confront their unique challenges. The post-COP21 era has seen Mediterranean countries implement adaptation measures in critical areas, such as water management and coastal resilience, while also working to enhance renewable energy sources like solar and wind. However, regional progress is uneven, hampered by financial limitations, political instability, and capacity gaps. Scaling up climate finance, strengthening regional cooperation, and bridging technological and institutional divides are essential for the region to meet Paris Agreement commitments effectively. The future of the Mediterranean depends on the region’s ability to build resilience and adapt to these multifaceted climate challenges. This will require enhanced regional cooperation, as no country can effectively tackle these issues in isolation. Regional frameworks such as the Union for the Mediterranean and the Barcelona Convention must be strengthened to foster collaboration on climate action, with a particular focus on shared resources like water and energy. Equally important is the need to scale up climate finance. Mediterranean countries, particularly those with fewer resources, need more robust support from international funding mechanisms like the Green Climate Fund and the Adaptation Fund. These resources must be directed towards projects that address the most pressing issues, such as water management, renewable energy infrastructure, and coastal protection. Reinforcing institutional capacity is therefore a critical step. Many Mediterranean countries face significant governance and technical challenges that impede the effective implementation of climate policies. Investing in education, capacity building, and governance reforms can help bridge this gap, enabling countries to better execute national climate plans and make use of international support. Furthermore, technology transfer must be accelerated. For Mediterranean nations to effectively mitigate emissions and adapt to climate impacts, they need access to cutting-edge technologies that can enhance energy efficiency, improve water use, and protect ecosystems. In conclusion, urgent and coordinated action is needed to safeguard the Mediterranean from escalating climate risks. Strengthening regional frameworks, enhancing access to international funding, and accelerating technology transfer will be vital in supporting Mediterranean countries. By fostering resilience through sustained commitment to climate adaptation and mitigation, the Mediterranean region can protect its future and offer valuable insights for other vulnerable areas worldwide.
Topic:
Climate Change, Environment, Treaties and Agreements, Resilience, and Conference of the Parties (COP)
Political Geography:
North Africa and Mediterranean

2068. Mapping Fragility – Functions of Wealth and Social Classes in US Household Finance

Author:
Orsola Costantini and Carlo D'Ippoliti
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Which households are more exposed to financial risk and to what extent is their debt systemically relevant? To provide an answer, we advance a new classification of the population, adapted from Fessler and Schürz (2017), based on the type of wealth families own and their sources of income. Then, we investigate data from eleven waves of the Survey of Consumer Finances (SCF), a triennial survey run by the U.S. Federal Reserve, to explore the association of different debt configurations and motives to get into debt with our class distinctions. Our new approach allows us to assess competing hypotheses about debt and financial vulnerability that have so far been analyzed separately in disconnected strands of literature. The results of our study reinforce and qualify the controversial hypothesis that relative poverty and inequality of income and access to services have been important factors explaining household indebtedness and its relationship with economic growth over time.
Topic:
Debt, Poverty, Inequality, Finance, Fragility, and Income Distribution
Political Geography:
North America and United States of America

2069. Labor Market Volatility and Worker Financial Wellbeing: An Occupational and Gender Perspective

Author:
Julie Yixia Cai
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
One emerging but underexplored factor that is likely to contribute to group racial earnings disparity is unstable work schedules. This is often detrimental for hourly workers when volatility is frequent, involuntary, or unanticipated. Using data from 2005-2022 monthly Current Population Survey and its panel design, this study follows a group of hourly workers across a four-month period to assess whether labor market volatility relates to their financial well-being, focusing on low-wage care and service occupations as well as female workers and workers of color. The findings are threefold: In general, during economic expansion periods, nonwhite workers often benefit more in terms of wage growth compared to their white counterparts. Second, net of other characteristics, on average, greater volatility is associated with lower earnings, and this is mostly driven by those holding jobs in low-wage service sectors and healthcare support roles. Last, the earnings consequences of volatility vary significantly by the type of low-wage jobs a worker holds and their gender and race, but this is only true when volatility happens in a job. Specifically, when working within the same employment spell, female workers, particularly those of color and those working in low-wage service and care jobs, earn significantly less when facing greater volatility than their male counterparts or those working in non-service, non-care occupations.
Topic:
Economics, Inequality, Finance, Labor Market, and Gender
Political Geography:
Global Focus and United States of America

2070. Bagehot’s Classical Money View: A Reconstruction

Author:
Perry Mehrling
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Bagehot is difficult for modern economists to read with understanding, for three reasons. He was a classical economist not neoclassical, his orientation was global not national, and, most importantly, his intellectual formation was as a practicing country banker not an academic. This paper adopts all three perspectives, and uses this frame to reinterpret his mature work, both Lombard Street and the unfinished Economic Studies, as the origin of the key currency tradition which continues as a minority view in modern economics.
Topic:
Globalization, History, Macroeconomics, and Walter Bagehot
Political Geography:
Global Focus

2071. Monetary Policy and Illiquidity

Author:
Jan Toporowski
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The discussion of financial stability, and the role of monetary policy, is incoherent because there is very little agreement on what constitutes financial stability (and, by implication, instability) - exchange rate stability, asset price stability, absence of debt default. By implication, there is a gap between the claims of various authors to the general applicability of their respective analyses, and the actual applicability of their conclusions, let alone the usefulness of some of their policy recommendations. The paper argues that the key issue is the regulation of the liquidity of all financial markets, and not just that of the banking system, through the markets for government securities. The paper examines the sources of this liquidity in the financial portfolios of the private sector, and how that liquidity may be managed through the open market operations of central banks and the debt management operations of governments. An implication of this approach is yield curve control and the use of (government) debt management to control the liquidity of the markets. These elements of monetary policy have been neglected in theory and policy since the 1950s.
Topic:
Debt, Economics, Monetary Policy, Banking, and Liquidity
Political Geography:
Global Focus

2072. Considering Returns on Federal Investment in the Negotiated “Maximum Fair Price” of Drugs Under the Inflation Reduction Act: an Analysis

Author:
Edward W. Zhou, Paula G. da Silva, Debbie Quijada, and Fred D. Ledley
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The Inflation Reduction Act (IRA) of 2022 contained landmark provisions authorizing government to negotiate a “maximum fair price” for selected Medicare Part D drugs considering the manufacturer’s research and development costs, federal support for discovery and development, the extent to which the drugs address unmet medical needs, and other factors. This working paper describes federal investment in the discovery and development of the ten drugs selected for price negotiation in the first year of the IRA as well as the health value created through Medicare Part D spending on these drugs. We identified $11.7 billion in NIH funding for basic or applied research leading to approval of these drugs with median investment costs of $895.4 million/drug. This early public investment provided a median cost savings to industry of $1,485 million/drug, comparable to reported levels of investment by industry. From 2017-2021, Medicare Part D spent $126.4 billion (median $10.7 billion) for these products before rebates. Excluding two products for diabetes, Medicare Part D spending was $97.4 billion and the total health value created was 650,940 QALYs or $67.7 billion (WTP/QALY=$104K) representing a negative residual health value of -$29.7 billion (before rebates). We argue that a negotiated fair price should provide returns on both private and public investments in these products commensurate with the scale and risk of these investments, with the principal return on public sector investments being the residual health value (net price) accruing to those using the product. These empirical data provide a cost basis for negotiating a fair price that rewards early government investments in innovation and provides social value for the public.
Topic:
Economics, Health, Public Health, Pharmaceuticals, and Public Investment
Political Geography:
North America and United States of America

2073. Tilting at Windmills: Bernanke and Blanchard’s Obsession with the Wage-Price Spiral

Author:
Servaas Storm
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Bernanke and Blanchard (2023) use a simple dynamic New Keynesian model of wage-price determination to explain the sharp acceleration in U.S. inflation during 2021-2023. They claim their model closely tracks the pandemic-era inflation and they confidently conclude that “… we don’t think that the recent experience justifies throwing out existing models of wage-price dynamics.” This paper argues that this confidence is misplaced. The Bernanke and Blanchard is another failed attempt to salvage establishment macroeconomics after the massive onslaught of adverse inflationary circumstances with which it could evidently not contend. It misrepresents American economic reality, hides distributional issues from view, de-politicizes (monetary and fiscal) policy-making, and sets monetary policymakers up to deliver significantly more monetary tightening than can be justified on the basis of more realistic model analyses.
Topic:
Economics, Monetary Policy, Inflation, Macroeconomics, and Wages
Political Geography:
North America and United States of America

2074. The Diffusion of New Technologies

Author:
Aakash Kalyani, Nicholas Bloom, Marcela Carvalho, Tarek A. Hassan, Josh Lerner, and Ahmed Tahoun
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
We identify phrases associated with novel technologies using textual analysis of patents, job postings, and earnings calls, enabling us to identify four stylized facts on the diffusion of jobs relating to new technologies. First, the development of economically impactful new technologies is geographically highly concentrated, more so even than overall patenting: 56% of the most economically impactful technologies come from just two U.S. locations, Silicon Valley and the Northeast Corridor. Second, as the technologies mature and the number of related jobs grows, hiring spreads geographically. But this process is very slow, taking around 50 years to disperse fully. Third, while initial hiring in new technologies is highly skill-biased, over time the mean skill level in new positions declines, drawing in an increasing number of lower-skilled workers. Finally, the geographic spread of hiring is slowest for higher-skilled positions, with the locations where new technologies were pioneered remaining the focus for the technology’s high-skill jobs for decades.
Topic:
Development, Economics, Science and Technology, Innovation, and Labor Market
Political Geography:
North America and United States of America

2075. Implications of the Inflation Reduction Act for the Biotechnology Industry

Author:
Cody Hyman, Henry Dao, Gregory Vaughan, and Fred D. Ledley
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The Inflation Reduction Act of 2022 contains landmark provisions authorizing the government to negotiate the price of selected drugs covered by Medicare Part D. The biopharmaceutical industry has criticized these provisions as a threat to innovation arguing that reducing future revenues could disincentivize equity investment in biotechnology. This research examines the sensitivity of private and public equity investment in the biotechnology industry to drug price indices and market conditions from 2000-2022. The analysis shows that equity financing and valuation in the biotechnology industry were strongly associated with equity market conditions but not indices of either producer or consumer drug prices. These results do not support claims of an association between changing drug prices and the availability of equity capital to emerging biotechnology companies, which currently sponsor the majority of all clinical trials. These results add to evidence that the IRA may not have a negative impact on pharmaceutical innovation.
Topic:
Economics, Health, Inflation, Innovation, Biotechnology, Public Investment, and Inflation Reduction Act
Political Geography:
North America and United States of America

2076. Scale and Scope in Early American Business History: The “Fortune 500” of 1812

Author:
Richard Sylla and Robert E. Wright
Publication Date:
08-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Fortune magazine began publishing annual rankings of U.S. corporations by revenue in 1955. Ever since, scholars and forecasters have analyzed changes in the Fortune 500 to help inform their judgments about industry concentration and the relative importance of different sectors of the economy. Unfortunately, earlier data are scarce, especially before the Civil War. Through extensive research we have created a sort of historical “Fortune 500” going back to 1812, ranked by corporate capitalization, which we share here. Numerous insights can be drawn from this dataset, including the historical dominance of the banking and finance sectors and the early importance of manufacturing. Perhaps the larger significance of being able to come up with a Fortune 500 for 1812, though, is the fact that even with a population of only about 7.5 million, U.S. already had more business corporations than any other country, and possibly more than all other countries put together, securing its role as the world’s first “corporation nation.” The ease of incorporating businesses released a lot of entrepreneurial energy that helped to build an ever-expanding economy and by the end of the 19th century, the U.S. would be the world’s largest national economy with tens of thousands of corporations.
Topic:
Economics, History, Business, and Industry
Political Geography:
North America and United States of America

2077. Tesla as a Global Competitor: Strategic Control in the EV Transition

Author:
Matt Hopkins and William Lazonick
Publication Date:
09-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
In this paper, we assess the implications of Elon Musk’s strategic control over Tesla, the pioneering company that has become central to the electric vehicle transition. We document how, as Tesla’s CEO for 16 years, Musk has exercised strategic control to direct the transformation of the company from an uncertain startup to a global leader. Now that Tesla is profitable corporate predators (aka hedge-fund activists) may challenge Musk’s strategic control—a possibility of which the CEO is well aware. To retain his control over Tesla as a publicly listed company, Musk depends on holding a sufficient proportion of Tesla’s shares outstanding to possess the voting power to fend off predatory value extractors. In addition to accumulating Tesla shares by investing $291.2 million at early stages of the company’s evolution, Musk has relied upon massive stock-option grants from the Tesla board, under the guise of “compensation”, in 2009, 2012, and 2018, to boost his shareholding and, with it, his voting power. Hence the Delaware Court of Chancery’s decision in January 2024 to rescind Musk’s 2018 stock-option package—by far the largest ever granted to a corporate executive—poses a threat to Musk’s strategic control at Tesla. As the “Technoking” of Tesla strategizes to maintain his control over the company’s decision-making, anyone concerned with the role that Tesla will play in the evolving EV transition should be asking how CEO Musk might use, or abuse, his powerful position.
Topic:
Science and Technology, Economic Competition, Electric Vehicles, Tesla, and Energy Transition
Political Geography:
Global Focus and United States of America

2078. Setting Pharmaceutical Drug Prices: What the Medicare Negotiators Need to Know About Innovation and Financialization

Author:
Öner Tulum and William Lazonick
Publication Date:
09-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Mandated by the Inflation Reduction Act of 2022, the U.S. government through the Centers for Medicare and Medicaid Services (CMS) is negotiating with pharmaceutical companies over the “maximum fair price” of ten drugs in wide use by Medicare patients. Over the next few years, the number of drugs whose prices are subject to negotiations will increase. The pharmaceutical companies contend that a “fair” price would be a “value-based price” that enables the companies’ shareholders to capture the value that the drug creates for society. Invoking the dominant “maximizing shareholder value” ideology, the argument for value-based pricing assumes that it is only a pharmaceutical company’s shareholders who make the risky investments that fund drug innovation. Pharmaceutical executives and their lobbyists warn that a lowering of drug prices will reduce investments in new drugs. The purpose of this paper is to enable CMS negotiators to respond to these arguments by showing a) why drug-price regulation is required, given the relation between scale economies in supplying drugs and price inelasticity of drug demand; b) how the pharmaceutical companies with which they are negotiating prices are, in general, not using their profits from unregulated drug prices to fund drug innovation but rather to fund distributions to shareholders in the form of cash dividends and stock buybacks; c) that publicly listed pharmaceutical companies do not typically rely upon investment by shareholders to fund drug innovation; and d) that investment in drug innovation entails “collective and cumulative learning” in foundational and translational research that is both antecedent and external to the investments in clinical research that a pharmaceutical company may make to bring a safe and effective drug to market.
Topic:
Economics, Health, Finance, Innovation, Pharmaceuticals, and Medicare
Political Geography:
North America and United States of America

2079. Good Policy or Good Luck? Why Inflation Fell Without a Recession

Author:
Thomas Ferguson and Servaas Storm
Publication Date:
09-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper analyzes claims that the Federal Reserve is principally responsible for the decline of inflation in the U.S. We compare several different quantitative approaches. These show that at most the Fed could plausibly claim credit for somewhere between twenty and forty percent of the decline. The paper then examines claims by central bankers and their supporters that a steadfast Fed commitment to keeping inflationary expectations anchored played a key role in the process. The paper shows that it did not. The Fed’s own surveys show that low-income Americans did not believe assurances from the Fed or anyone else that inflation was anchored. Instead, what does explain much of the decline is the simple fact that most workers nowadays cannot protect themselves by bargaining for higher wages. The paper then takes up the obvious question of why steep rises in interest rates have not so far led to big rises in unemployment. We show that recent arguments by Benigno and Eggertson that shifts in vacancy rates can explain this are inconsistent with the evidence. The biggest factor in accounting for the strength in the economy is the continuing importance of the wealth effect in sustaining consumption by the affluent. This arises, as we have emphasized in several papers, from the Fed’s quantitative easing policies. Absent sharp declines in wealth, the continuing importance of this factor is likely to feed service sector inflation in particular.
Topic:
Economics, Monetary Policy, Federal Reserve, Inflation, and Macroeconomics
Political Geography:
North America and United States of America

2080. Concentrating Intelligence: Scaling and Market Structure in Artificial Intelligence

Author:
Anton Korinek and Jai Vipra
Publication Date:
10-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper examines the evolving structure and competition dynamics of the rapidly growing market for foundation models, focusing on large language models (LLMs). We describe the technological characteristics that shape the industry and have given rise to fierce competition among the leading players. The paper analyzes the cost structure of foundation models, emphasizing the importance of key inputs such as computational resources, data, and talent, and identifies significant economies of scale and scope that may create a tendency towards greater market concentration in the future. We explore two concerns for competition, the risk of market tipping and the implications of vertical integration, and use our analysis to inform policy remedies to maintain a competitive landscape.
Topic:
Markets, Economy, Business, Innovation, Artificial Intelligence, and Large Language Models (LLMs)
Political Geography:
Global Focus

2081. Macroeconomic Modeling in the Anthropocene

Author:
Yannis Dafermos, Andrew McConnell, Maria Nikolaidi, Servaas Storm, and Boyan Yanovski
Publication Date:
10-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Recent years have seen an increasing use of environmental dynamic stochastic general equilibrium (E-DSGE) models for analyzing the macroeconomic effects of the climate crisis. This paper explores to what extent these models are fit for purpose. We identify the limitations of the benchmark E-DSGE framework and explain how these limitations restrict the ability of this framework to meaningfully capture the macroeconomics of the climate crisis. We then explain how the assumptions behind these limitations can be relaxed, but argue that simply relaxing some of these assumptions in isolation is insufficient to address the problem. We therefore call for a broader use of other macroeconomic models, such as ecological stock-flow consistent (E-SFC) and ecological agent-based (E-AB) models, that address these limitations simultaneously. We explain how these models do not suffer from the pitfalls of the E-DSGE framework and outline how they need to improve to increase their usefulness as tools that can inform macroeconomic policy making in the Anthropocene.
Topic:
Climate Change, Environment, Monetary Policy, and Macroeconomics
Political Geography:
Global Focus

2082. Hitler and the German Coal Industrialists: Passing the Keys to A Kingdom

Author:
Karsten Heinz Schönbach
Publication Date:
11-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Ever since the publication of Henry Turner’s German Big Business and the Rise of Hitler, most historians in both Germany and the United States have dismissed the idea that support from German major industry played a key role in bringing Hitler to power. This consensus is wrong, as I have shown in a series of works that began with my doctoral dissertation at the Free University of Berlin and now extends to more than ten different works, including two books. These works rely extensively on archival resources that were either inaccessible or only selectively open to earlier researchers. This paper analyzes in detail one of the most crucial episodes in Hitler’s rise to power – one that previous historians, particularly Turner, have profoundly misjudged thanks in part at least to the shortcomings in the documentary sources available to them. This is the history of the political relations between Hitler, the NSDAP leadership, and the German “coal industrialists” in the period from 1926 to 1933 and the key role these firms played in supporting and financing the eventual Nazi triumph.
Topic:
History, Business, Coal, Industry, and Adolf Hitler
Political Geography:
Europe and Germany

2083. Grand Strategy: Shield of the republic

Author:
Christopher McCallion
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Defense Priorities
Abstract:
Grand strategy is a state’s theory about how to provide for its own security. Leaders must decide how to best translate scarce means into political objectives. Limited resources and the high stakes of national survival force leaders to prioritize. Military power is dependent on wealth, industry, geographical endowments, population size, and effective domestic institutions. The various conditions in which states find themselves help motivate and constrain the grand strategy formulated by their leaders. The United States is still the most powerful, secure, and prosperous country in the world, with a favorable geographic position and many internal advantages. U.S. grand strategy has historically been concerned with preventing the rise of a regional hegemon in Eurasia by maintaining the balance of power. With the collapse of the Soviet Union, the United States became the only great power in the world. Unfortunately, it squandered the “unipolar moment” by pursuing a costly and counterproductive grand strategy of “liberal hegemony,” which has left it overextended. The United States’ secure geostrategic position and the improbability of a Eurasian hegemon allows it to adopt a grand strategy of restraint. This shift will help the United States to preserve its power, minimize risks, and adapt to the rise of new great powers. This strategy requires the United States to adopt a more rigorous definition of its vital interests and to shift to its allies the main burden of defending themselves.
Topic:
Security, Defense Policy, Geopolitics, Grand Strategy, and Unipolarity
Political Geography:
North America and United States of America

2084. Grand Strategy: The Balance of Power

Author:
Christopher McCallion
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Defense Priorities
Abstract:
The “balance of power” refers to the distribution of capabilities among states, as well as a possible equilibrium between them. A state’s military power is based on several factors, especially its economy and population. To survive in an anarchic world, states “balance” against rivals that threaten to become overwhelmingly powerful. This can include “internal balancing,” by which states build up their own capabilities, and “external balancing,” where states form alliances. Primacists and restrainers disagree about the balance of power. Primacists believe global hegemony is optimal and stable. Restrainers believe the pursuit of global hegemony is quixotic and self-defeating, leading to overextension and provoking counterbalancing by other powers. The United States is extremely powerful and secure thanks to its economy, geography, population, and military, among other factors. The prospect of a potential Eurasian hegemon emerging is remote. China is a formidable great power that warrants attention, but its geography makes expansion difficult, and it can be counterbalanced principally by other states in East Asia. A rough balance of power exists in both Europe and the Middle East, and therefore there’s no potential hegemon on the horizon in either region. The United States’ pursuit of primacy discourages allies from providing for their own defense to balance against threats, while uniting adversaries seeking to counterbalance the United States. The United States should instead encourage its capable allies to take responsibility for their own defense while seeking to keep its competitors divided through prudent diplomacy.
Topic:
Defense Policy, Diplomacy, Grand Strategy, and Balance of Power
Political Geography:
North America and United States of America

2085. Challenges to Chinese blue-water operations

Author:
Mike Sweeney
Publication Date:
04-2024
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
Despite having the world’s largest navy, important questions can be asked about China’s ability to challenge the U.S. Navy on a global scale. A number of factors—geography, logistical infrastructure, force structure, and command culture—all argue that China cannot do so at this time. In particular, China would need to significantly expand the number and caliber of its overseas bases in order to support large-scale, blue-water operations by the People’s Liberation Army Navy (PLAN). China currently has just two overseas bases—at Djibouti and Cambodia—and both are of limited capacity. Absent such a basing network, the PLAN is reliant on at-sea replenishment, a capability that is inherently vulnerable in wartime. China possesses some quality at-sea replenishment vessels but not nearly in sufficient quantities to support widespread global operations. While Chinese naval aviation has shown important improvements over the last year, the PLAN does not appear to have the logistical capacity to sustain high-tempo carrier operations outside the First Island Chain for an extended period of time. Super-quiet Chinese nuclear submarines would be game-changers in terms of Chinese blue-water operations. But thus far China has not shown mastery of the requisite technologies to build boats with this capability. It would also take China several years to grow a fleet of super-quiet submarines once the necessary technological challenges have been solved. Structural issues with the Chinese economy raise new concerns about Beijing’s ability to fund a blue-water navy over the long term. Such calculations must include the expense of ship construction, but also the massive operations and maintenance budget needed to deploy a potential navy of over 400 ships.
Topic:
Defense Policy, Armed Forces, Navy, Economy, and Submarines
Political Geography:
China, Asia, North America, and United States of America

2086. Grand Strategy: Geography

Author:
Christopher McCallion
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Defense Priorities
Abstract:
Geographic distance and the current state of military technology interact to favor defense while diminishing the threat of conquest. The stopping power of water in particular obstructs the ability of even the most powerful states to project power overseas. Proximate land powers are the most likely to engage in security competition and conflict, while distant or sea powers are relatively isolated from potential adversaries. This strategic insularity is even greater if a state has a large and diversified economy and the resources to be relatively self-sufficient. The United States is separated from other great powers by thousands of miles of ocean to both its east and west, and is the most powerful, prosperous, and secure state in the world. However, many of the same conditions which make the United States secure also make it difficult to project power, carry out wars far abroad, and maintain military primacy on land in Eurasia. The United States should both embrace its abundance of security and accept the limits to its offensive power, using its position as a continent-sized maritime power to act as an offshore balancer rather than a hegemon on the flanks of the Eurasian landmass.
Topic:
Security, Grand Strategy, Geography, and Balance of Power
Political Geography:
North America and United States of America

2087. No silver bullet: Aid is not a shortcut to victory for Ukraine

Author:
Michael DiMino
Publication Date:
06-2024
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
Delayed or insufficient Western aid is often blamed for Ukraine’s lack of success on the battlefield. The truth is more complicated. There is no aid “silver bullet” for what ails Ukraine’s war effort. More aid alone is unlikely to make a decisive difference in the outcome of the war, especially if Ukraine’s structural disadvantages and strategic deficiencies remain unaddressed. More aid is unlikely to fundamentally change the conflict because Ukraine lacks the manpower necessary to use it to generate enough new combat power to retake lost territory. Moreover, the West does not currently possess the industrial capacity needed to fulsomely sustain an indefinite Ukrainian war effort. Russian adaptability and battlefield innovation have successfully blunted the effectiveness of several Western weapon systems. And Ukrainian doctrine and tactics remain suboptimal even in the third year of the war, meaning Kyiv has failed to employ the aid it does receive with maximal effectiveness. Neither Washington nor Kyiv has articulated a clear theory of victory for Ukraine. Western aid was always a stopgap to buy Ukraine time, not a regime-change project to bring about the dissolution of the Russian state. Instead of continuing to placate maximalist fantasies of total victory, the U.S. should advocate for a shift to a defensive strategy and openness to a negotiated settlement that ends the war, such that a sovereign and independent Ukrainian state can be preserved in the face of fighting to collapse.
Topic:
Weapons, Military Aid, and Russia-Ukraine War
Political Geography:
Russia, Europe, Eurasia, Ukraine, and United States of America

2088. A new NATO agenda: Less U.S., less dependency

Author:
Benjamin Friedman
Publication Date:
07-2024
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
The United States should aggressively reduce its force presence in Europe. This would be consistent with NATO’s original balancing purpose and U.S. expectations then that garrisoning Europe was a temporary expedient, not a permanent tool of U.S. dominance. The Russian threat, despite being energized by NATO expansion, is insufficient to demand the current defense effort devoted to it in Europe, whether it’s Americans or Europeans making that effort. The results of Russia’s invasion of Ukraine underline this happy point: Russia has proven weaker than conventional wisdom held, and the advantages of defense evident in the war bode well for the territorial status quo NATO defends in Europe. A U.S. drawdown in Europe is unlikely to spark a European defense renaissance, but even so, the balance of power in Europe will remain intact, and the United States will be better off with the freed-up resources and reduced risks.
Topic:
Defense Policy, NATO, Russia-Ukraine War, Dependency, Balance of Power, and Burden Sharing
Political Geography:
Russia, Europe, North America, and United States of America

2089. Grand strategy: Alliances

Author:
Christopher McCallion
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Defense Priorities
Abstract:
Alliances are usually temporary arrangements among states to counter—or “balance” against—a specific common threat. The United States’ Cold War alliances, by contrast, have become seemingly permanent. States tend to balance power when they face a major threat. Bandwagoning, by contrast, is a particularly poor option for states with the capability to put up a fight. When threatened, states tend to join forces in alliances rather than surrender their national survival to the whims of a more powerful aggressor. Alliances, however, entail costs and risks. These include the dangers of being drawn into war through entanglement and entrapment, the deleterious effect on deterrence by allies that neglect their defense by “free-riding,” and the moral hazard produced by enabling allies to act like “reckless drivers.” Over time, the United States has shifted from a deep skepticism of “entangling alliances” to a global network of security dependents that are treated as an end in themselves, rather than a means to an end. This posture has left the United States overextended, while encouraging allies to neglect their own capabilities and preparedness. The United States can and should significantly reduce its alliance commitments, particularly in Europe and the Middle East, where threats to the U.S. are remote and local powers can balance adversaries. In Asia, the United States should act as a backstop to the regional balance of power rather than a vanguard.
Topic:
Foreign Policy, NATO, Grand Strategy, Alliance, Balance of Power, and Burden Sharing
Political Geography:
Europe, North America, and United States of America

2090. Rethinking Africa Command

Author:
Mike Sweeney
Publication Date:
10-2024
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
As debate grows over U.S. policy towards Africa, consideration should be given to altering the continent’s status under the Department of Defense’s Unified Command Plan (UCP). Eliminating Africa Command (AFRICOM) under the UCP would both signify a policy shift away from a counterterrorism focus and ease the process of implementing that change within the policymaking bureaucracy. Establishing a three-star subcommand, nested under European Command (EUCOM), would still allow the United States to use force in Africa, when necessary, but would reduce the prominence of military power in U.S. policy toward the continent. AFRICOM and EUCOM essentially share much of their force structure; this unique relationship would facilitate the transition to the proposed three-star subcommand. Altering the U.S. military footprint in Africa should also be considered in the context of any changes to policy and command arrangements. Making specific recommendations at this time is complicated by the opaqueness of the current footprint.
Topic:
Foreign Policy, Defense Policy, Armed Forces, Counter-terrorism, Africa Command (AFRICOM), and European Command (EUCOM)
Political Geography:
Africa, North America, and United States of America

2091. A defensive approach to Ukraine military aid

Author:
Jennifer Kavanagh
Publication Date:
11-2024
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
The next administration is likely to continue U.S. military aid to Ukraine to some degree, yet thus far decisions about what aid to provide have been reactive and not connected to any strategy. The United States should use its military aid to push Ukraine to adopt a defensive strategy that will be more sustainable for the Ukrainians given manpower shortfalls and more responsible and fiscally feasible for the United States, while also reducing the risk of Russian escalation. This would be in line with America’s priorities in Ukraine, including preventing a Russian victory and preserving a sovereign Ukraine at lowest possible cost and without direct involvement in the war. This strategy would also put Ukraine in a good position for a settlement that trades some land for a ceasefire and supports Ukraine’s longer-term defense. A Ukraine aid framework centered on a defensive strategy would see the U.S. provide air defense, anti-tank mines, the material and equipment to build fortifications, short-range artillery and limited short-range missile variants, small uncrewed aerial systems, and some armored vehicles for transport. In many cases, however, quantities would be limited by the needs of U.S. forces or other U.S. partners. The U.S. would not provide most types of aircraft, long-range missiles, tanks, or other weapon systems that are primarily offensive in nature and could cross a redline for Vladimir Putin.
Topic:
Defense Policy, Weapons, Military Aid, and Russia-Ukraine War
Political Geography:
Russia, Europe, Eurasia, Ukraine, and United States of America

2092. Synergising DPI and digital commons

Author:
Vy Dang, Aliasger Bootwalla, Eva Maria Lynders, and Wulf Reiners
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Gateway House: Indian Council on Global Relations
Abstract:
Digital Public Infrastructure (DPI) and digital commons have the potential to accelerate achievement of the sustainable development goals. Both India and the European Union recognise this: India is a pioneer in DPI, while the concept of digital commons is gaining better attention within the EU. The partners must now work towards a joint understanding of the core principles that govern digital resources.
Topic:
Infrastructure, European Union, Sustainable Development Goals, and Digital Policy
Political Geography:
Europe, South Asia, and India

2093. Uganda’s Oil Refinery: Gauging the Government’s Stake

Author:
Paul Bagabo and Thomas Scurfield
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Uganda’s planned oil refinery will have several benefits for the country, including for its security of fuel supply and balance of payments. The refinery could be reasonably profitable, generating an internal rate of return of 13 percent in a baseline scenario. The government is planning to take a 40 percent stake but may ultimately pay a higher price for this equity than it expects. Even if it borrows to cover its upfront contribution to costs, it will need to divert around $330 million in present value terms from the national budget for loan repayments in the 2030s. This price will increase if downside risks, such as cost overruns or lower global oil prices, materialize. The government can take several steps to increase interest from other investors, including by reducing the risk of cost overruns, ensuring deregulated product prices continue, and providing less risky forms of state support such as tax incentives. These should reduce the need for the government to take a large stake.
Topic:
Oil, Regulation, and Investment
Political Geography:
Uganda and Africa

2094. Responsible Change: How Governments Can Address Environmental, Social and Governance Challenges When Petroleum Assets Change Hands

Author:
Nicola Woodroffe
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
As the world moves toward a future beyond oil and gas, petroleum assets will change hands, with different kinds of companies replacing others. Since 2014, around USD 88 billion in assets have moved from publicly listed to private companies. The roles of sub-Saharan African and Latin American companies in their home countries have expanded. Globally, the role of national oil companies (NOCs) is growing. NOCs have acquired around $24 billion in assets from non-NOCs since 2014. The growing role of private and local companies and NOCs potentially gives producer countries greater control over their petroleum sectors, including the pace of an eventual phaseout. However, these companies often have less capacity and fewer transparency, environmental, social and governance commitments than publicly listed international companies. This increases the risk that these companies’ operations will negatively impact the environment and communities, and that they will be unable to pay for decommissioning when production ends. Many assets that sub-Saharan African and Latin American NOCs have acquired appear vulnerable to energy transition risks. Governments should exercise approval rights over asset transfers to ensure buyers have requisite capacity to operate with high standards. They should ensure transparency to allow host communities and the public to better understand transfer impacts and how the government and/or companies will manage them, and strengthen regulations to address key issues arising from transfers including emissions management and reporting, and decommissioning funding. Governments should require NOCs to make adequate disclosures about their acquisitions to ensure NOCs manage risks to the public purse.
Topic:
Environment, Oil, Governance, and Energy Transition
Political Geography:
Global Focus

2095. Guidebook on Nigeria’s Energy Transition

Author:
Tengi George-Ikoli and Nafi Chinery
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
This guidebook serves as a comprehensive reference tool for the Nigerian government, as well as an accountability tool that enables Nigerian civil society actors to track the government’s implementation of its commitments to the energy transition. Nigerian government has designed to transition from fossil fuels—oil, gas and coal—to renewable energy technologies, including institutional, policy, legal and fiscal frameworks. It is informed by engagements with state and non-state actors including representatives of the government, the private sector, communities, youth and women’s groups, and by their views of the strengths and weaknesses of Nigeria’s energy transition plans. Accounting for Nigeria’s unique context and peculiarities as a fossil-fuel-dependent nation, the guidebook seeks to provide greater clarity on ways to navigate the energy transition for the Nigerian government, civil society, the media, the country’s citizens and the international community. It also seeks to mitigate transition led shocks and strengthen the overall transition process in Nigeria. The guidebook can enhance stakeholder knowledge of Nigeria’s energy transition process and government action to accelerate the transition. This should encourage the adoption of a comprehensive plan aligned with the needs and realities of most Nigerians. The insights provided in the guidebook may also inspire and influence regional conversations across the African continent, creating a collective demand for a people-centered and just energy transition in multiple countries.”
Topic:
Climate Change, Oil, Gas, Fossil Fuels, and Energy Transition
Political Geography:
Africa and Nigeria

2096. Assessing the Fiscal Regime in Ghana’s Lithium Agreement

Author:
Thomas Scurfield and Denis Gyeyir
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
NRGI modeling indicates that the Ghanaian government has negotiated a government take for the country’s first lithium mine that is higher than Ghana’s legislated fiscal regime and the regimes of many other current and imminent lithium hard rock producers, such as Australia, the Democratic Republic of Congo and Zimbabwe. Modeling suggests an average effective tax rate (government revenues as a share of mine profits) of 58 percent (excluding paid state equity). Seventy percent of these government revenues depend on the profits that mine leaseholder Barari DV Ghana reports. To limit the risk of revenue shortfalls, the agreement should define the process for pricing the lithium, limit the deductibility of interest from taxable income, ensure state equity is non-dilutable and establish rules in the shareholders’ agreement about dividend payments. Given that modeling indicates an after-tax internal rate of return for investors in the Ewoyaa mine of around 102 percent (after debt financing), the government may be able to negotiate an even higher take in future deals for similarly profitable mines. A variable rate royalty could help achieve this higher take. To increase the prospects for a lithium refinery in Ghana—the government’s other key objective—the government should ensure Barari conducts a rigorous feasibility study, publish it and then hold a multistakeholder consultation to agree on subsequent actions.
Topic:
Tax Systems, Fiscal Policy, Lithium, Revenue Management, and Minerals
Political Geography:
Africa and Ghana

2097. Strengthening Methane Emissions Reduction in Nigeria’s Oil and Gas Sector

Author:
Ahmad Abdulsamad and Tengi George-Ikoli
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Nigeria, with the world’s ninth-largest gas reserves, is a major methane emitter, accounting for 16 percent of sub-Saharan African methane emissions from 2010 to 2020. As the Federal Government aims to expand domestic gas use and exports, immediate action is needed to prevent increasing methane emissions from the oil and gas sector. Unchecked oil and gas sector methane emissions threaten to exacerbate the climate change crisis, harm community health and safety, and undermine Nigeria’s capacity to trade in the global market and leverage the proceeds to sustain its economy. Nigeria needs a robust methane emissions framework to address technical and regulatory gaps across the oil and gas value chain. Frameworks should deliver tailored monitoring reporting and verification (MRV) systems that combine satellite and leak detection and repair (LDAR)technologies, create synergy among stakeholders, and incentivize methane emissions reduction. Oil and gas companies, including Nigerian National Petroleum Corporation Limited (NNPCL), must prioritize investments in methane emissions reduction technologies, reflect global environmental commitments in local operations, and participate in independent data disclosure initiatives, such as the new Extractive Industries Transparency Initiatives (EITI) requirements for greenhouse gas emissions and the Nigeria EITI (NEITI) audit process. Civil society organizations should raise awareness, demand robust methane emissions frameworks and leverage tools such as the EITI standards to monitor company and government compliance with national and global commitments.
Topic:
Climate Change, Fossil Fuels, Methane, and Carbon Emissions
Political Geography:
Africa and Nigeria

2098. Senegal’s Gas-to-Power Ambitions: Securing Scale and Sustainability

Author:
Papa Daouda Diene, Thomas Scurfield, Aaron Sayne, and Jessica Obeid
Publication Date:
07-2024
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Senegal will benefit from generating electricity from some of its gas, but authorities should carefully consider the scale of the country’s “gas-to-power” ambitions and how they relate to its renewable energy plans. This is a pivotal moment for achieving the government’s energy and sustainable development objectives. Recent plans to develop over 3 gigawatts (GW) of gas-to-power capacity by 2050 may face obstacles. Senegal may not be able to extract enough gas to feed the power plants; it may also struggle to raise sufficient funds (at least USD 2.2 billion) to build the necessary infrastructure. A more balanced energy mix, with a stronger emphasis on renewables alongside gas, offers Senegal a more secure pathway, but necessitates a cohesive long-term strategy and international support. Senegal’s participation in a Just Energy Transition Partnership (JETP) has led to increased medium-term renewable power generation goals—possibly to around 1 GW by 2030. To reach them, Senegal’s development partners must deliver the promised financial and technical support. If Senegal realizes only those plans that are published, gas will comprise 75 percent of installed capacity in the long term. The absence of a long-term plan for renewables could lock the country into this large role for gas, inhibiting the intended catalytic effect of the JETP and preventing the government from fully leveraging the country’s solar and wind potential. A more transparent and inclusive approach will help Senegal’s government to refine and implement its energy plans, helping to manage public expectations, foster public trust and increase credibility with investors.
Topic:
Gas, Fossil Fuels, Sustainability, and Energy Transition
Political Geography:
Africa and Senegal

2099. Reducing Methane Emissions in Senegal’s Hydrocarbons Sector: A Call for Proactive and Transparent Action

Author:
Papa Daouda Diene and Aida Diop
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Senegalese authorities, and oil and gas companies must urgently take preventive measures to mitigate future methane emissions in Senegal’s oil and gas industry. With planned extraction expansions, these emissions could impact climate, public health, the environment and more directly, competitiveness of projects. Senegal currently emits low levels of methane, and there is political will to reduce methane emissions. However, the government should clearly spell out the country’s ambitions in national strategic documents such as the Nationally Determined Contribution (NDC), the Energy Sector Development Policy Letter (LPDSE), and the upcoming long-term low-emission development strategy. Greater transparency and disclosure of disaggregated data are needed to boost the confidence of local stakeholders and improve the evaluation of emission reduction measures. The Extractive Industries Transparency Initiative (EITI), with its multi-stakeholder structure and new 2023 standard, can help the government and compagnies to improve transparency in methane emissions reporting. As officials are drafting the implementing decree for the new environmental code, the government should reinforce regulations with transparency and accountability obligations, such as requiring companies to share their methodologies to improve data accuracy for public decision-makers. The government should also clarify what constitutes “emergency situations”, such as authorized flaring. Senegal must advance its MRV (measuring, reporting, and verification) system with independent audits and standardized estimation methods for reliable data. While MRV is crucial long-term, a practical short-term system is needed to track progress without stifling action. Additionally, the government should enhance its teams' technical skills to efficiently reduce methane emissions in the oil and gas sector. PETROSEN should proactively manage methane emissions in order to strengthen its global position and meet growing expectations in terms of environmental performance. In the short-term, it should sign the Oil & Gas Decarbonization Charter, demonstrating a stronger commitment to methane emissions. Civil society actors and journalists should be better informed and involved in the management of methane emissions. Their active participation can enhance transparency, make companies more accountable, and raise public awareness of the environmental and health impacts of methane emissions.
Topic:
Transparency, Methane, Carbon Emissions, and Hydrocarbons
Political Geography:
Africa and Senegal

2100. Responsible Exit Principles for Oil and Gas Companies

Author:
Nicola Woodroffe and Erica Westenberg
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Asset transfers in the oil and gas industry are not new. Yet, as the energy transition accelerates, there is a growing risk that oil and gas companies sell assets in response to pressures to decarbonize. However, transferring assets to operators with lower standards can lead to higher emissions and increased risks. This briefing offers a framework to guide these transactions and ensure that environmental and operational integrity is upheld. Designed for use by a range of stakeholders, these principles set out best practices to help companies manage financial, legal, environmental and reputational risks during asset transfers. They were developed with input from representatives of the oil and gas industry; investors, the financial, legal and accounting professions; the insurance industry; standard-setting bodies; academia; and civil society. All stakeholders can adopt and refine these standards to support a responsible, low-emissions future and harmonize regulatory practices across the industry.
Topic:
Corruption, Environment, Oil, Gas, Accountability, Fossil Fuels, and Energy Transition
Political Geography:
Global Focus