Russia has been looking to raise its existing relationship with African countries and Afreximbank is now providing huge support in realizing that long term goal. The bank, with the task of transforming Russia’s trade with Africa, organized an economic conference for more than 1,500 participants from June 20-22 in Moscow. The economic conference and other Russia–African events in 2019 can be described as “the Year of Africa” in the Russian Federation.
The Afreximbank Annual Meetings included Seminar and Meeting of the Afreximbank Advisory Group on Trade Finance and Export Development in Africa and special meetings between Russian and African political and business leaders to discuss trade, industrialization, export, and the implementation of joint investment projects.
Russia continues to strengthen its relationship with Africa due to multiple factors such as untapped abundant natural resources, improvement of the business climate, the rise of the middle-level income class and economic growth, Prime Minister Dmitry Medvedev noted in his speech at conference. He further pointed to Africa’s growing appeal to and demand for high-tech, telecom investors and other products that could make swift business connection with Russia.
“All these things have already made Africa attractive for investments, and not merely in producing industries but, which is of particular importance, in high technologies and telecommunications,” Medvedev said.
According to certain estimates, about a half of the resource potential of the planet is in Africa, he argued “we therefore need to more efficiently use these resources and at the same time promote cooperation in this sphere, just like cooperation in other spheres.”
Besides those factors, there is high desire for mutual-cooperation. “It is also important to have a sincere internal desire, and such a sincere desire is present from the side of the Russian Federation and from the side of African states. We see this at different levels, including the top levels of cooperation,” Medvedev said.
Opening the conference, Foreign Minister Sergey Lavrov reminded conference participants that while relying on the long-time accumulated experience of constructive partnership, Russia and Africa are confidently moving along the road of comprehensively expanding Russian-African ties.
According to the Foreign Minister, the long years of solid friendship, which has been created, gives a fresh impetus to cooperation in many spheres and provides necessary conditions for building up trade, economic and investment exchanges, as well as cooperation in banking, and for encouraging business communities to implement mutually beneficial projects in African countries.
These include the construction of the country’s first nuclear power plant and the establishment of the Russian Industrial Zone in Egypt, as well as the projects that are being implemented in Africa by such leading Russian businesses as Rosneft, Lukoil, Rosgeo, Gazprom, Alrosa, Vi Holding, GPB Global Resources and Renova.
“We can report first achievements in this sphere. Mutual trade is growing – it exceeded US$20 billion last year – and becoming more diversified. Large projects are being implemented in Africa with direct financial support from Russia,” he assertively said, and added: “I am confident that cooperation with Afreximbank, which the Russian Export Centre (REC) has joined as a shareholder, will help promote long-term trade and economic relations between Russian businesses and their African partners.”
As expected, REC predicts the volume of Russian-African trade relations will double within the next 3-4 years. “The Russian Export Center maintains a close partnership with Afreximbank and has already entered the first deals that we are jointly implementing on the African continent. We intend to increase the volumes and we foresee the volume of the Russian-African trade ties in the next three to four years doubling,” said the Russian Export Center’s (REC) chief Andrei Slepnev.
“It goes without saying that the Russian Export Center sees the African region as an important area to promote Russian non-commodity export. Our objective is to use today’s positive market environment to open the access to African markets to as many exporters as possible and expand our geography,” he argued.
The African continent currently has enormous potential as a sales market. Many African countries are enacting economic reforms, demand is growing for high-quality, competitive products. Russian businesses are interested in this niche, and our goods are already competitive in terms of price and quality.
Basic financial instruments of supporting trade between Russia and Africa could be direct loans to foreign buyers (including those secured by the sovereign guarantee of the borrowing country) and loans to banks of foreign buyers under the insurance coverage Exiar, loans to sovereign borrowers, financing receivables against export earnings.
In 2018, for instance, the volume of export-supported Russian products to African countries amounted to US$2.47 billion. The main partners are Egypt, South Africa, Zambia, Morocco, Algeria, Nigeria and Kenya.
Advisor to the President of the Russian Federation, Anton Kobyakov, noting the importance of multilateral cooperation between Russia and Africa: “The current situation in the world is such that we are witnesses to the formation of new centres of economic growth in Africa. Competition for African markets is growing accordingly. There is no doubt that Russia’s non-commodity exporters will benefit from cooperating with Africa on manufacturing, technologies, finances, trade, and investment.”
Afreximbank President and Chairman of the Board of Directors, Dr. Benedict Okey Oramah, presented the 2019 African Trade Report, an analytical survey of African trade. “As we gather in this historic city of Moscow, we will explore how we can shape the future of trade and how we can transform our continent,” said Oramah. “Our collective endeavours will impact the economic future and wellbeing of Africans for generations to come.”
In the report, special attention was paid to practical cooperation in the spheres of finances, energy, mining, railway infrastructure, digital technologies, cybersecurity, healthcare, education, food security in Africa.
In 2017, the Russian Export Center became Afreximbank’s third largest non-African financial institution or organization shareholder, which has allowed for the rapid acceleration of investment, trade, and economic relations between Russia and African countries. It’s active in mining projects in Zimbabwe and Sierra Leone, and has expressed interest in attracting Russian partners to the implementation of projects in the oil industry in Africa.
Notable among the Russian-African foreign economic projects include the signing of a memorandum of cooperation between the REC and Joint company Afromet (Vi Holding) regarding the comprehensive development of the Darwendale platinum field project in Zimbabwe, which was signed during a visit by the President of Zimbabwe, Emmerson Mnangagwa, to the Russian Federation in January 2019.
According separate reports, Russia has been developing a number of projects in cooperation with Afreximbank, including a project concerning the shipment of Russian ground transport and projects to finance industrial infrastructure construction and modernization projects in Nigeria and Angola. At the end of 2018, REC, Russian Railways, and Afreximbank signed a memorandum of cooperation. As a result, a trilateral working group was created, tasked with studying export and investment project issues in the railway and related industries, as well as forms of project and investment financing.
The latest description of Africa, which consists of 54 states, to many experts and business investors, is the last frontier. It is the last frontier because it has huge natural resources still untapped, all kinds of emerging business opportunities and constantly growing consumer market due to the increasing population. It has currently become a new business field for global players.
That negative perceptions deeply persistent among political and business elite, middle class and the public towards Russia. For the two past decades, due to Russia’s low enthusiasm, lack of coordinated comprehensive mechanism and slowness in delivering on skyline investment pledges have been identified as the key factors affecting effective cooperation between Russia and Africa.
London based Business Research and Consultancy firm published a new report about global players set to continue broadening economic and business engagement across Africa. The publication has become largely important as Russia with its recognizable global status and among BRICS (Brazil, Russia, India, China and South Africa) dominated headlines that it has played less visible role in sub-Saharan Africa after Soviet’s collapse.
The Russian Export Center, as a state institution for the support of non-primary goods, providing Russian exporters with a wide range of financial and non-financial support, is also working on a number of projects with Afreximbank in various African regions. Afreximbank was founded in 1993 in Abuja, Nigeria, with the authorized capital of US$5 billion. The main objectives of the bank are the development of trade between African countries and abroad. The banks’ headquarters is located in Cairo, Egypt.
Presidents Chakwera and Nyusi toast for laudable Malawi-Mozambican relations
Mozambique and Malawi, largely sharing borders, have agreed to forge cooperation in diverse economic sectors and take advantages offered by the single continental market. A number of African leaders have started looking at the African Continental Free Trade Area (AfCFTA), as it aspires to connect all regions of Africa, to deepen economic integration and to boost intra-African trade and investment. It aspires to create a single market for goods and services across 55 countries and our continent, creating a market of as much as 1.3 billion people with a combined GDP of $3.4 trillion.
On November 22 to 24, President Filipe Jacinto Nyusi of Mozambique went on an official working visit to Blantyre, Malawi. It was to participate in the 5th SADC Industrialization Week in Lilongwe, according a statement from the Malawi’s Ministry or Foreign Affairs.
The first strategy for regional industrialization, he noted at the conference of the Industrialization Week, includes developing synergies linked to value chains, transport corridors, energy, and human potential. It will also involve bringing down barriers at the border to strengthen the economic identity of SADC. According to Nyusi, the impact of this strategy will be amplified through changes to the trade balance as exports are increased and imports substituted.
The second strategy is based on developing technology, employing thousands of people, creating a market to absorb agricultural surpluses from the rural population with a particular focus on women, agro-processing and associated logistics, which, he said, ends up becoming a “powerful weapon” for the well-being of the population and combating poverty.
While still in Malawi during the visit, Malawi President Lazarus Chakwera took his guest counterpart Filipe Nyusi to launch the construction works for Mozambique-Malawi power transmission interconnection project at Phombeya in Balaka District. The power generation project planned to translate into improved access to electricity supply and ultimately strengthen the industrialization programmes in both countries. Construction of the interconnection project, includes laying transmission lines about 142km from Matambo substation and 76km into Malawi to Phombeya passing through Mwanza and Neno Districts – expected to be completed in 2023.
According to the Integrated Resource Plan of 2017, peak electricity demand will be 1,860MW by 2030 yet currently Malawi’s installed electricity generation capacity is hovering at 50MW. The objectives of the interconnection project include to support economic growth of the region through sustainable power access by integrating Malawi electricity market to the Southern African Power Pool (SAPP) in order to balance power deficit through regional power trading.
Phase 1 of the project included technical and economic feasibility study that was completed in 2017, project definition and scope and environmental and social impact assessment that was completed in 2019.
In his remarks, President Chakwera said like the railway rehabilitation project that the two countries have embarked on to connect Malawi to the Sena Line across the border from Vila Nova de Fronteira to Marka, “this interconnection project is yet another milestone in the linkages between our two nations.” He reminded Nyusi, that during his visit to Songo Province in Mozambique last year, Chakwera was privileged to tour the Cabora Bassa Dam which is the hub of the Southern African Power Pool (SAPP).
“It was at that time that we agreed to hold this joint ceremony launching the construction of the electricity transmission line for Malawi-Mozambique Interconnection. I am, therefore, glad to see this coming to pass as a step in the direction of integrating infrastructure across SADC for sustainable economic development. The project aims at at creating avenues for trade in the SAPP, with the prospect of more exchanges of trade and power in the future,” he asserted in remarks.
President Chakwera says Malawi and Mozambique are strategic development partners and there is a need for the two nations to continue exploring possible areas of cooperation in the areas of trade, transport and mining for the mutual benefit of their people. Both president also identified areas of rail transport, energy and mining for developing bilateral partnership.
With the construction of The Malawi-Mozambique Interconnector, it marchs towards the goal of adding 1,000 megawatts to the national grid over the next four years is making steady progress. The project is co-funded by the World Bank- IDA Credit at US$15 million; European Union through KFW Grant at US$20 million and the Malawi Government at US$3.5 million.
European Council offers €40 million assistance under the EPF in support of Mozambique
With about 3,100 African, European and US soldiers already been deployed to Cabo Delgado province, the security situation has begun stabilizing in Mozambique. Southern African Development Community (SADC) has a Standby Force effectively working, besides the Special Force from Rwanda.
Rwanda was the first foreign army to send troops to Mozambique, deploying 1,000 in July. South Africa has the largest contingent of around 1,500 troops. External countries are enormously helping to stabilize the situation in Mozambique. Mozambique’s former colonizer Portugal and the United States both sent special forces to train local troops.
According reports, the European Union (EU) concretely sent 1,100 soldiers to the country in September and the troops will be in Mozambique for two years to train rapid intervention units. It is supplying the Mozambican army with non-lethal weapons.
“This mission will contribute to operations to defend Mozambique. After finishing the training, we will prepare an operational training plan for the future. The soldiers trained here will be able to go on missions,” Head of Mozambique’s Armed Forces, Joaquim Mangrasse, said in Maputo.
On November 19, the European Council adopted a decision establishing a €40 million assistance measure under the European Peace Facility (EPF) in support of Mozambique. This assistance measure complements an urgent measure amounting to €4 million approved by the Council under the EPF on 30 July 2021 for the most urgently required equipment.
With the measure decided on, the EU will support the Mozambican military units trained by the EU military training mission in Mozambique (EUTM Mozambique), and enable them to conduct security operations in the northern province of Cabo Delgado.
The assistance measure will, in particular provide adequate, non-lethal equipment to strengthen the capacities of the first Mozambican army companies scheduled to be the first to benefit from the EUTM Mozambique’s training. This includes individual and collective equipment, ground mobility assets, technical tools and a field hospital.
The provision of the assistance will be subject to the compliance of the EUTM-trained units of the Mozambican armed forces with relevant international law, in particular international human rights and international humanitarian law, as well as with relevant legal instruments and best practices based on international and EU rules, standards and policies in the area of the supply of military equipment.
The assistance measure will cover part of the EUTM’s mandate duration. In 2021, partial support packages will be provided to the two companies currently undergoing training by Portugal while, as from 2022, three additional companies will receive support. In total, 11 companies of the Mozambican army and navy will undergo training by the EUTM in several batches and subsequently form a Quick Reaction Force.
The November 19 decision follows the request by the Minister of Foreign Affairs of the Republic of Mozambique in her letter of 27 August 2021 to the High Representative for Foreign Affairs and Security Policy.
Reports said that Islamic-State linked militants have been wreaking havoc in the area since 2017, raiding villages and towns in violence that has claimed at least 3,340 lives and displaced more than 800,000 people. The grave situation attracted international concern when they attacked the key port town of Palma in March, killing dozens as thousands fled into surrounding forest.
The violence forced France’s Total Energies to declare force majeure and evacuate staff from a nearby multi-billion-dollar natural gas project.
Mozambique is a member of the Southern Africa Development Community (SADC). Mozambique is a country located in Southeast Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini (Swaziland) and South Africa to the southwest.
Underdevelopment Mindsets: An Africanizing American Perspective
I took my first international development studies class in the 1970s while pursuing Northwestern University Sociology doctoral studies in the United States. International development studies back in those days was a brand-new field in the various social sciences emerging from growing assessment of scholars, consultants, emerging international development NGO administrators, and so called first world national and international organizational policy makers in the United States, Europe, the United Nations, and the World Bank as American and European colonial powers legally freed their colonies. Such legal freedom called “independence” usually was with strings attached to assure dependent marginal new nations without competition capacity against their former colonial authorities.
Before I began to travel and live in African countries, beginning with Sierra Leone as a 1989-90 Fulbright Scholar, and in other legally decolonized countries, back then labeled the “third world”, I belonged to that liberal naive branch of international development studies which rejected terminologies such as ” underdeveloped” and ” developing” which insinuated that peoples of such lands were somehow inferior humans or not human at all. I still do reject any such insinuations about anyone which are biogenetic or theological which claim some people wherever they are, in this case, so called third or first world peoples, are naturally inferior or superior human beings.
But there are, indeed, psychological, social, economic, and political consequences of what has happened to still dependent legally decolonized peoples with underdevelopment and developing outcomes when compared with what it is like living in the first world. After traveling and living in Africa, the Caribbean, and Latin America off and on since the 1990s and full time in Africa for nearly 10 years now, I can now attest to the realness of what it means to live in a developing or merely, underdeveloped country.
I will here focus on psychological aspects of underdevelopment which I have found to be characteristic in the African and other so called third world countries I have traveled to and especially those I have resided in for a couple of reasons. First, because before my so called third world lived experiences, I used to reject most now classical psychological theorists of societal development and underdevelopment, conventional such as David McClellan and radical such as Franz Fanon. I assumed their views were patronizing over generalizations. Second, what matters the most in human development are the individual cognitions, attitudes, and coping skills we learn institutionally from our families, communities, schools, faith communities, communication technologies, and governments embedded in vastly varied historical sociopolitical, cultural, and socioeconomic contexts. That is, what is generally called our daily mindsets.
What I wish to point out then is: in various historically contextualized ways such as the dominant cultural and linguistic backgrounds of legally former colonizers and thus their colonized oppressed, the status type of historical colonization such as slavery, indentured labor, limited free people, or mode of economic production such as plantation, factory, retail and other consumer sectors, limited businesses and civil service employment, all produced patterns of daily mindsets. As their now neo-colonial continuities, these mindsets contribute greatly to national underdevelopment. Unless they change a nation may adapt more or less to the 21st century well developed world in consuming first world fashion styles, food, car purchases, smart phones, home and commercial office building designs, and legal and health practices but the mindset is in being say a slave, an indentured laborer, or in being a limited freed person used to having limited civil liberties or human rights and human responsibilities.
What are some of the more common neo-colonial mindsets generating continued underdevelopment where I have casually observed and experienced over the years in Africa and elsewhere in the so called third world?
1.Transactional relationships meaning building relationships with others especially those with means perceived or real is an end to get something rather than to build authentic caring friendships and other trusting and loyal meaningful rather than ends oriented relationships. The person is important to get to know as long as you get something out of it– money, position, property, a child, and is tossed away as soon as use value is depleted. The more people place value in sincere private and public caring (charity) relationships, the more a country like its communities and institutions within develops.
2. Little value for efficiency. This means other things matter besides time management, setting and reaching goals, and being productive in workplaces and in general life such as beauty maintenance, gossiping, family affairs, leisure, and pursuing romance. Work is organized around playtime not playtime around work so having time off like short standard work hours, and long weekends and breaks and many holidays are top priority.
3.Buying status symbols such as cars and homes, makeup, facelifts, and fashions through great loan debt beyond real cost of living finances is an obsession which causes great stress, waste of time and energy in constant comparisons competition while ignoring holistic life values and practices. All of this comes crashing down at the least economic crisis such as unemployment, ill health or death of breadwinners as seen in COVID-19 pandemic impacts disproportionately impacting personal and societal indebted so called third world countries with their easy loan opportunities.
4. Looking Outward and Upward. Rather than having an attitude and commitment value to advocate for national pride rooted in good governance and genuine economic and sociopolitical human rights for everyone including the riddance of societal and institutional insufficiencies such as corrupt governments and corrupt institutions such as police, hospitals, media, and schools, one dreams about going to America, France, New Zealand, UK, Canada, or Australia as promised lands of milk and honey. It is a mindset that few in developing countries can realize. It causes negativity, stagnation, and apathy rather than effective human rights movement mobilization. It also encourages casting blame at the wrong causes of corruption, poverty, marginality which keeps citizens in mindsets of blaming their leaders for forced choices they must make due to the neo-colonial boxes they are locked into. It is ironic that such common dreamers wish to run to the very so called first world countries which are the sources of their societal miseries. By the way, this “looking outward and upward” mindset refers as well to the tendency to view anything made in the West in terms of consumer goods and anything sounding western like an accent or being Western such as a potential mate is superior to anything native, providing of course that which is western is somehow white.
5. Having mass consumer literary rather than real life reading and understanding which means buying the ” I love New York” t-shirt or working or eating in a KFC restaurant without knowing or caring about what the words mean or the history of the company hiring you or selling you chicken. Using Internet search engines such as Google to find video games or latest American movie or pop song or to do online shopping without using search engines let alone bookstores and libraries to read about what’s going on in the world or about historical issues. Wanting to only read a few soundbite Instagram words with photos while reading more than a couple of paragraphs is too much.
6. Thinking about “success,” “achievement,” “making it” are magical things which happen to you absent of loyalty, faithfulness, sacrificial hard work, and a committed value for needing to be mentored and at times criticized not just praised. So, dream and do nothing or little and quit the first time someone makes you feel bad or disagrees with you or criticizes you. This is a mark of a low self-esteemed mindset which makes developing countries filled with dreamers rather than doers; those afraid of taking risks and taking criticism it takes to achieve. Always talking never doing. Just dreaming.
7.Mindless development means taking development ideas from the West and applying them to non-western contexts usually through some exorbitant international loan or government funding or international development NGO support which does not fit the realities of the country. But it feeds well the pockets of those who cook up the plans to copy the West in being Western in image though does great harm to the ordinary citizens of their country. What happened in Afghanistan with its 12,000 contractors propped up for twenty years as mindless projects making money is characteristic of what has been going on in the so-called world for decades now. Building schools which have failed to educate. Building unnecessary skyscrapers which come to collapse. Building unnecessary bridges and tunnels. Building clinics and research labs which for years chase chronic diseases seemingly unable to cure and capture while building resumes and providing the income and comfortable accommodations of so called third world health experts be they Westerners or the Westernized. Missionaries of so many faiths coming over by the boatloads to the shores of Africa and to the continent’s many nations who after they leave things remain the same. The morality problems, the poverty, the massive lack of genuine conversion, etc. Such contemporary missionary work, in more cases than a few done in great material comfort, is another example of mindless development which perpetuates underdevelopment adorned in the usual smiles and well intentions that mindless development displays though in different flavors and fabrics.
Mindless development also relates to the misapplication of Eastern and Western ideologies imposed on the ex-colonial Non-West such as communism or democracy which don’t even fit or do well in originating Eastern or Western countries and overtime have evolved into different forms of governance than original constitutional mandates. And then everyone seemingly in East and West elite foreign policy making circles become disappointed when collective farms, multiparty, and even human rights and responsibilities don’t work in neocolonial impositions in African or other so called third world countries. Or shock or dismay occurs if such nation building practices occur in ways apart from Eastern and Western scripts and prescriptions. The emergence of bubbling up citizen movements against standing African governments in recent years in Egypt, Tunisa, Nigeria, Botswana, The Gambia, Zimbabwe, and South Africa have Easterners and Westerners scratching their heads, since after all, according to their paradigms, African countries don’t have civil societies. African citizens are conventionally viewed in the East and West as being merely passive pawns, especially those claiming to be in what has been called authoritarian states or because they are in democracies which are poorly lead and managed.
Anyone who is honest rather than in denial due to ideological blinders or blind nationalism would have to admit the observational points made are worthy of further investigation and acting on to eradicate and thus authentically liberate those who remain victimized by the neo-colonial underdevelopment which plagues their countries. As well, underdevelopment mindsets learned in the homeland can come to hinder their own individual development if they have been able to emigrate elsewhere since changing sovereignty geography does not necessarily change well internalized psychological mindsets. Such a geographical change in life can merely allow for a mindset to find new fertile soil for germinating a transplanted mental inclination causing just as much individual underdevelopment as the structural underdevelopment continues to do back home.
It would be a grave inconsideration if I did not raise the point that even though what I have been casting here as the mindset psychology of underdevelopment pertains to the so called the third world, it can be said to also refer to human developmental problems in the so called first world. The American mindset claiming we are so superior allows us to forget our own chronic areas of individual and societal underdevelopment and the mindsets which maintain such dominant mythologies. American medical systems and our higher education systems rank among the lowest in the world. Our election of Donald Trump as President of the United States in 2016 and his behavior while in office and his refusal to concede losing to Joe Biden is a script expected in a so-called Banana Republic or African country as much as members of a national legislative branches well in the deep pockets of donors rather than representing the quality of life needs of their constituencies and of the nation. The Republican effort to repress voter rights of Non-Whites to win future elections is something you would expect in a so called third world country as is the paralysis of Democrats as national political rulers claiming to be for the people but too much in the pockets of Wall Street with no energy to standup to racial injustices in effective ways as an empty campaign promise. The recent Kyle Rittenhouse court decision to acquit a White Supremacist vigilante is something you would stereotypically expect in a so called third world country where we are taught miscarriages of justice for such violent people is expected. So, like the underdeveloped nations we Americans enjoy looking down to and patronizing with our smug media remarks and foreign charity aid, we continue to in many respects look like because we are, an underdeveloped country with the psychological mindsets of underdevelopment listed earlier but of course with our own twists and turns. The extremely rural and urban poverty. The deep problems the middle class as well as the poor is having paying the house note, being gainfully employed, and having quality food to eat and air to breath. The deep discrimination against women, especially the Non-White, the lack of decent healthcare and education of the poor, especially those who are Non-White, and the massive illiteracy of all of us which makes us so vulnerable to emotional manipulation such as who we decide to vote for even against our quality-of-life interests.
So increasingly, and tragically ironically, what I have listed as mindsets of underdevelopment in the formerly colonized Non-West is in many respects attitudes and behaviors the ex-colonized pick up and internalize as mindsets from the East and West in this information and social media digital age where emulation, too often of things which injure rather than help and empower run rampant without needed reflection, critique, and prevention. So that goes as well to explain why and how too often the ex-colonized watch and copy the xenophobia, racism, elitism, and corruption of not only Americans but also of their former European colonizers in their distorted mindsets of dominance through which they afflict their own underdevelopment. It is why when people arrogantly point to corruption on the part of African leaders or about how African leaders do not take of their own people, my first response is a question, not to excuse but to put in proper context: where did they learn it from?
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