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The 17+1 Framework between China and Europe

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In March 2019, Chinese Prime Minister Li Keqiang made a long trip to Eastern Europe.

  The reference for that trip, full of bilateral meetings, was the one found in the Joint Declaration of the EU-China Summit of April 9, 2019.

 A document in which, as usual, some key points are stated: firstly, the Comprehensive Strategic Partnership, which reaffirms global strategic multilateralism, as well as “sustainable development” – whatever we may mean with this term – but in which, however, the EU reaffirms its One-China policy.

It also reaffirms support to the EU-China Cyber Task Force; the strengthening of the Addis Ababa Action Force; the funding to the joint migration agency; the will to achieve a global and inclusive economy; support to the Joint WTO Reform Group and further support to the G20; the joint action for the “Global Forum on Excess Steel Excess capacity”, as well as the reform of the international financial system and the review for the new IMF quotas; the “Paris Climate Agreement” and its Montreal Protocol; the Blue Partnership for the Oceans.

With regard to foreign policy – as if everything else were not-  reference is explicitly made to the support of both players, namely EU and China, for the 2015 nuclear JCPOA with Iran. Also the peace process in Afghanistan is mentioned, as well as Venezuela.

In this list of bilateral issues there is also the request for a peaceful and democratic solution for Kabul.

Not to mention – of course – the Law of the Sea and finally the situation in Myanmar.

 An encyclopedia of very important international topics, which are only proclaimed and mentioned as headings. But, as far as I know, not even in confidential talks they have gone beyond the good intentions with which, as we all know, the road to hell is paved.

In that Summit, tension could be easily perceived.

 China wanted to have the EU on its side, at a time of maximum trade tension with the United States, while the EU had increasing doubts about the extension – the so-called 17+1 Framework – of the Belt and Road Initiative to the Balkans and former Yugoslavia.

It should be recalled that Italy, Hungary, Greece and Portugal broke EU unity towards China at that time.

Was it just a signal to the EU? Or a well-considered choice based on the fact that the EU was a technocrat structure operating side by side with Member States – as Germany said – but did not replace them? We do not know yet.

What is certain, however, is that the Chinese seduction towards the Mediterranean and Eastern EU is based on two facts: the U.S. slow disengagement from the NATO EU pillar, regardless of its future president, and China’s awareness that it has to deal with an EU which is now a “paper tiger”.

Nevertheless, China carried out an even more practical operation, at least following the Confucian logic: the support for a Belt and Road network, namely the “16+1 Framework of cooperation with countries in Central and Eastern Europe” -which is celebrating its eight anniversary -to which Greece joined.

 The meeting about which we are talking took place in Dubrovnik in April 2019.

 The logic of the Chinese Framework is to be closely related with the “Three Seas Initiative” of 2016, an EU initiative in which China simply participated.

 As stated above, at the time Greece joined the group.

The Framework, however, had been created in Budapest in 2012 to foster cooperation between the (then) 16 European countries plus China, based on the new Chinese Silk Road and investment in infrastructure, with a view to  creating the China-Europe land and sea express line.

Besides Greece, the European countries participating in the Framework are the Czech Republic, Poland, Hungary, Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Estonia, Lithuania, Romania, Serbia, Macedonia, Montenegro, Slovakia and Slovenia.

Among the current participants, 16 are EU Member States, five are members of the Euro area, four are candidates for participating in the single currency and one is even a potential EU Member State.

 From the geopolitical viewpoint, China has built an ad hoc format basically within the EU, a mechanism that minimizes the risks of crisis in the Eurozone, creates an autonomous area of interest for China and can even create a Chinese mainmise within the EU, which could also undermine its future development – if any.

 The Chinese consortium managing the operation is the China-Road and Bridge Corporation, a subsidiary of the China Communication Construction Company– a company included in the Fortune 500 list.

The Eastern European countries’ underlying idea was to use Chinese support to stimulate their development but, in a document of the Czech government, it is pointed out that the bilateral commitments are now scarcely honoured.

 This is due to the coronavirus and the ongoing financial crisis in European countries, as well as to an often high debt burden on the Chinese side.

The EU, however, has changed its political and economic approach towards China – rather quickly considering its normal standards.

 In January 2019, in fact, a paper was published by the Federation of German Industries (BDI), which defined China as a “systemic investor” and asked the EU to make its rules and regulations stricter in view of competing with China and protect its companies.

This was followed in March 2019 by a document from the European External Action Service, the Brussels-based structure that believes it is a secret service – often with comical results.

 The document told us it was necessary a) to strengthen relations with China, albeit carefully, in view of promoting common interests at global level; b) to control Chinese investment in the EU, on an equal footing (fat chance) and c) to push China towards a “sustainable” economy.

 A psycholinguist should still help us to investigate into the effects of the word “global” in the minds of current political leaders.

 The document also informed us that the EU should seek a more robust and, above all, mutual relationship at economic level.

 Finally, it was maintained- coincidentally – that the countries of the 17+1 Framework should operate in a homogeneous relationship with EU laws. We can rest assured they will do so.

 Then there was the same old story about “human rights” and the obvious “sustainable” development, not to mention climate change, China’s claims on the South China Sea which, we imagined, would be pursued with or without the EU “fine souls”, as well as the request for a connection between China and the EU in Eastern Europe – apart from the 17+1 Framework – which would be anyway pursued until China saw its interest, and finally the substantial repetition of the above stated China-EU agreement of 2019.

Just to avoid remaining in an imaginary world, we should recall here a very useful Machiavellian concept: “There is no avoiding war, it can only be postponed to the advantage of others”.

Not to mention that “States are not ruled and maintained with words”.

What is the solution to the dilemma? In all likelihood, the EU has had a very strong warning from the United States, and is trying to bridle, slow down and restrict its relations with China.

With reference to the 5G, a key issue for the United States, the European Commission has signalled a series of “necessary measures”.

 The EU document tells us that the 5G network is very important – just what we needed – and that the Union also supports competition and the global market. It then lists the European agencies that deal with it.

 Finally, the solution for the EU is to foster cybersecurity “through the diversity of suppliers when building the network”.

It should be recalled that Japan signed an agreement with the EU on the same issues in September 2019.

 Everything will be known, however, once the EU’s foreign investment screening mechanism has provided its results, considering that it was launched on April 10, 2019 and will be implemented by October 11, 2020.

It is connected to the Commission’s Communication “A New Industrial Strategy for Europe” which maintains that “we need a new way of doing business in Europe” and that this must “reflect our values and social market traditions”.

It also states that “our industrial strategy is entrepreneurial in spirit and action” but also that “scalability is fundamental in the digitalised economy” – and this is another key point for us.

 An essential topic, but left on the sidelines.

 Let us leave aside the other banalities and trivialities typical of the 1968 protesters newly converted to the market economy.

 Obviously the new Agency will have the following aims: to create a “cooperation mechanism between the European Commission and the Member States to exchange information” – as if it were not already in place – to enable the Commission to make an evaluation (obviously a non-mandatory one) to stop the operations concerning any foreign investment- albeit is not clear whether for SMEs or otherwise – to be authorized by the Member States to “comment” on foreign investment in the EU; to list a sequence – albeit not exhaustive –  of foreign investment sectors that could trigger an analysis by this very powerful organization: critical infrastructure and technology, critical inputs, access to personal data and finally guarantee of media pluralism – that has little to do with it, but “anything goes” and every little bit helps.

 That is all, so far.

In December 2015, China set up the People’s Liberation Army Strategic Support Force(PLASSF), the structure of the Chinese Armed Forces dealing with cyberwarfare, space warfare and electronic operations. Has the EU something similar?

 Obviously not. Furthermore, NATO has a cyber-defence policy, defined at the Wales Summit of September 2014 and at the Warsaw Summit of 2016. But it has no joint agency for cyber policy, which is not only defence, but also attack.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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Iceland’s Historic(al) Elections

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The morning of September, 26 was a good one for Lenya Run Karim of the Pirate Party. Once the preliminary results were announced, things were clear: the 21-year-old law student of the University of Iceland, originating from a Kurdish immigrant family, had become the youngest MP in the country’s history.

In historical significance, however, this event was second to another. Iceland, the world champion in terms of gender equality, became the first country in Europe to have more women MPs than men, 33 versus 30. The news immediately made world headlines: only five countries in the world have achieved such impressive results. Remarkably, all are non-European: Rwanda, Nicaragua and Cuba have a majority of women in parliament, while Mexico and the UAE have an equal number of male and female MPs.

Nine hours later, news agencies around the world had to edit their headlines. The recount in the Northwest constituency affected the outcome across the country to delay the ‘triumph for women’ for another four years.

Small numbers, big changes

The Icelandic electoral system is designed so that 54 out of the 63 seats in the Althingi, the national parliament, are primary or constituency seats, while another nine are equalization seats. Only parties passing the 5 per cent threshold are allowed to distribute equalisation seats that go to the candidates who failed to win constituency mandates and received the most votes in their constituency. However, the number of equalisation mandates in each of the 6 constituencies is legislated. In theory, this could lead to a situation in which the leading party candidate in one constituency may simply lack an equalisation mandate, so the leading candidate of the same party—but in another constituency—receives it.

This is what happened this year. Because of a difference of only ten votes between the Reform Party and the Pirate Party, both vying for the only equalisation mandate in the Northwest, the constituency’s electoral commission announced a recount on its own initiative. There were also questions concerning the counting procedure as such: the ballots were not sealed but simply locked in a Borgarnes hotel room. The updated results hardly affected the distribution of seats between the parties, bringing in five new MPs, none of whom were women, with the 21-year-old Lenya Run Karim replaced by her 52-year-old party colleague.

In the afternoon of September, 27, at the request of the Left-Green Movement, supported by the Independence Party, the Pirates and the Reform Party, the commission in the South announced a recount of their own—the difference between the Left-Greens and the Centrists was only seven votes. There was no ‘domino effect’, as in the case of the Northwest, as the five-hour recount showed the same result. Recounts in other districts are unlikely, nor is it likely that Althingi—vested with the power to declare the elections valid—would invalidate the results in the Northwest. Nevertheless, the ‘replaced’ candidates have already announced their intention to appeal against the results, citing violations of ballot storage procedures. Under the Icelandic law, this is quite enough to invalidate the results and call a re-election in the Northwest, as the Supreme Court of Iceland invalidated the Constitutional Council elections due to a breach of procedure 10 years ago. Be that as it may, the current score remains 33:30, in favor of men.

Progressives’ progress and threshold for socialists

On the whole, there were no surprises: the provisional allocation of mandates resembles, if with minor changes, the opinion polls on the eve of the election.

The ruling three-party coalition has rejuvenated its position, winning 37 out of the 63 Althingi seats. The centrist Progressive Party saw a real electoral triumph, improving its 2017 result by five seats. Prime-minister Katrín Jakobsdóttir’s Left-Green Movement, albeit with a slight loss, won eight seats, surpassing all pre-election expectations. Although the centre-right Independence Party outperformed everyone again to win almost a quarter of all votes, 16 seats are one of the worst results of the Icelandic ‘Grand Old Party’ ever.

The results of the Social-Democrats, almost 10% versus 12.1% in 2017, and of the Pirates, 8.6% versus 9.2%, have deteriorated. Support for the Centre Party of Sigmundur Gunnlaugsson, former prime-minister and victim of the Panama Papers, has halved from 10.9% to 5.4%. The centrists have seen a steady decline in recent years, largely due to a sexist scandal involving party MPs. The populist People’s Party and the pro-European Reform Party have seen gains of 8.8% and 8.3%, as compared to 6.9% and 6.7% in the previous elections.

Of the leading Icelandic parties, only the Socialist Party failed to pass the 5 per cent threshold: despite a rating above 7% in August, the Socialists received only 4.1% of the vote.

Coronavirus, climate & economy

Healthcare and the fight against COVID-19 was, expectedly, on top of the agenda of the elections: 72% of voters ranked it as the defining issue, according to a Fréttablaðið poll. Thanks to swift and stringent measures, the Icelandic government brought the coronavirus under control from day one, and the country has enjoyed one of the lowest infection rates in the world for most of the time. At the same time, the pandemic exposed a number of problems in the national healthcare system: staff shortages, low salaries and long waiting lists for emergency surgery.

Climate change, which Icelanders are already experiencing, was an equally important topic. This summer, the temperature has not dropped below 20°C for 59 days, an anomaly for a North-Atlantic island. However, Icelanders’ concerns never converted into increased support for the four left-leaning parties advocating greater reductions in CO2 emission than the country has committed to under the Paris Agreement: their combined result fell by 0.5%.

The economy and employment were also among the main issues in this election. The pandemic has severely damaged the island nation’s economy, which is heavily tourism-reliant—perhaps, unsurprisingly, many Icelanders are in favor of reviving the tourism sector as well as diversifying the economy further.

The EU membership, by far a ‘traditional’ issue in Icelandic politics, is unlikely to be featured on the agenda of the newly-elected parliament as the combined result of the Eurosceptics, despite a loss of 4%, still exceeds half of the overall votes. The new Althingi will probably face the issue of constitutional reform once again, which is only becoming more topical in the light of the pandemic and the equalization mandates story.

New (old) government?

The parties are to negotiate coalition formation. The most likely scenario now is that the ruling coalition of the Independence Party, the Left-Greens and the Progressives continues. It has been the most ideologically diverse and the first three-party coalition in Iceland’s history to last a full term. A successful fight against the pandemic has only strengthened its positions and helped it secure additional votes. Independence Party leader and finance minister Bjarni Benediktsson has earlier said he would be prepared to keep the ruling coalition if it holds the majority. President Guðni Jóhannesson announced immediately after the elections that he would confirm the mandate of the ruling coalition to form a new government if the three parties could strike a deal.

Other developments are possible but unlikely. Should the Left-Greens decide to leave the coalition, they could be replaced by the Reform Party or the People’s Party, while any coalition without the Independence Party can only be a four-party or larger coalition.

Who will become the new prime-minister still remains to be seen—but if the ruling coalition remains in place, the current prime-minister and leader of the Left-Greens, Katrín Jakobsdóttir, stands a good chance of keeping her post: she is still the most popular politician in Iceland with a 40 per cent approval rate.

The 2021 Althingi election, with one of the lowest turnouts in history at 80.1%, has not produced a clear winner. The election results reflect a Europe-wide trend in which traditional “major” parties are losing support. The electorate is fragmenting and their votes are pulled by smaller new parties. The coronavirus pandemic has only reinforced this trend.

The 2021 campaign did not foreshadow a sensation. Although Iceland has not become the first European country with a women’s majority in parliament, these elections will certainly go down in history as a test of Icelanders’ trust to their own democracy.

From our partner RIAC

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EU-Balkan Summit: No Set Timeframe for Western Balkans Accession

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From left to right: Janez JANŠA (Prime Minister, Slovenia), Charles MICHEL (President of the European Council), Ursula VON DER LEYEN (President of the European Commission) Copyright: European Union

On October 6, Slovenia hosted a summit between the EU and the Western Balkans states. The EU-27 met with their counterparts (Albania, Bosnia-Herzegovina, Serbia, Montenegro, North Macedonia and Kosovo) in the sumptuous Renaissance setting of Brdo Castle, 30 kilometers north of the capital, Ljubljana. Despite calls from a minority of heads of state and government, there were no sign of a breakthrough on the sensitive issue of enlargement. The accession of these countries to the European Union is still not unanimous among the 27 EU member states.

During her final tour of the Balkans three weeks ago, German Chancellor Angela Merkel stated that the peninsula’s integration was of “geostrategic” importance. On the eve of the summit, Austrian Chancellor Sebastian Kurz backed Slovenia’s goal of integrating this zone’s countries into the EU by 2030.

However, the unanimity required to begin the hard negotiations is still a long way off, even for the most advanced countries in the accession process, Albania and North Macedonia. Bulgaria, which is already a member of the EU, is opposing North Macedonia’s admission due to linguistic and cultural differences. Since Yugoslavia’s demise, Sofia has rejected the concept of Macedonian language, insisting that it is a Bulgarian dialect, and has condemned the artificial construction of a distinct national identity.

Other countries’ reluctance to join quickly is of a different nature. France and the Netherlands believe that previous enlargements (Bulgaria and Romania in 2007) have resulted in changes that must first be digested before the next round of enlargement. The EU-27 also demand that all necessary prior guarantees be provided regarding the independence of the judiciary and the fight against corruption in these countries. Despite the fact that press freedom is a requirement for membership, the NGO Reporters Without Borders (RSF) urged the EU to make “support for investigative and professional journalism” a key issue at the summit.”

While the EU-27 have not met since June, the topic of Western Balkans integration is competing with other top priorities in the run-up to France’s presidency of the EU in the first half of 2022. On the eve of the summit, a working dinner will be held, the President of the European Council, Charles Michel, called for “a strategic discussion on the role of the Union on the international scene” in his letter of invitation to the EU-Balkans Summit, citing “recent developments in Afghanistan,” the announcement of the AUKUS pact between the United States, Australia, and the United Kingdom, which has enraged Paris.

The Western Balkans remain the focal point of an international game of influence in which the Europeans seek to maintain their dominance. As a result, the importance of reaffirming a “European perspective” at the summit was not an overstatement. Faced with the more frequent incursion of China, Russia, and Turkey in that European region, the EU has pledged a 30 billion euro Economic and Investment Plan for 2021-2027, as well as increased cooperation, particularly to deal with the aftermath of the Covid-19 pandemic.

Opening the borders, however, is out of the question. In the absence of progress on this issue, Albania, North Macedonia, and Serbia have decided to establish their own zone of free movement (The Balkans are Open”) beginning January 1, 2023. “We are starting today to do in the region what we will do tomorrow in the EU,” said Albanian Prime Minister Edi Rama when the agreement was signed last July.

This initiative, launched in 2019 under the name “Mini-Schengen” and based on a 1990s idea, does not have the support of the entire peninsular region, which remains deeply divided over this project. While Bosnia and Herzegovina and Montenegro are not refusing to be a part of it and are open to discussions, the Prime Minister of Kosovo, Albin Kurti, who took office in 2020, for his part accuses Serbia of relying on this project to recreate “a fourth Yugoslavia”

Tensions between Balkan countries continue to be an impediment to European integration. The issue of movement between Kosovo and Serbia has been a source of concern since the end of September. Two weeks of escalation followed Kosovo’s decision to prohibit cars with Serbian license plates from entering its territory, in response to Serbia’s long-standing prohibition on allowing vehicles to pass in the opposite direction.

In response to the mobilization of Kosovar police to block the road, Serbs in Kosovo blocked roads to their towns and villages, and Serbia deployed tanks and the air force near the border. On Sunday, October 3, the conflict seemed to be over, and the roads were reopened. However, the tone had been set three days before the EU-Balkans summit.

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German Election: Ramifications for the US Foreign Policy

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Image source: twitter @OlafScholz

In the recent German election, foreign policy was scarcely an issue. But Germany is an important element in the US foreign policy. There is a number of cases where Germany and the US can cooperate, but all of these dynamics are going to change very soon.

The Germans’ strategic culture makes it hard to be aligned perfectly with the US and disagreements can easily damage the relations. After the tension between the two countries over the Iraq war, in 2003, Henry Kissinger said that he could not imagine the relations between Germany and the US could be aggravated so quickly, so easily, which might end up being the “permanent temptation of German politics”. For a long time, the US used to provide security for Germany during the Cold War and beyond, so, several generations are used to take peace for granted. But recently, there is a growing demand on them to carry more burden, not just for their own security, but for international peace and stability. This demand was not well-received in Berlin.

Then, the environment around Germany changed and new threats loomed up in front of them. The great powers’ competition became the main theme in international relations. Still, Germany was not and is not ready for shouldering more responsibility. Politicians know this very well. Ursula von der Leyen, who was German defense minister, asked terms like “nuclear weapons” and “deterrence” be removed from her speeches.

Although on paper, all major parties appreciate the importance of Germany’s relations with the US, the Greens and SPD ask for a reset in the relations. The Greens insist on the European way in transatlantic relations and SPD seeks more multilateralism. Therefore, alignment may be harder to maintain in the future. However, If the tensions between the US and China heat up to melting degrees, then external pressure can overrule the internal pressure and Germany may accede to its transatlantic partners, just like when Helmut Schmid let NATO install medium-range nuclear missiles in Europe after the Soviet Union attacked Afghanistan and the Cold War heated up.

According to the election results, now three coalitions are possible: grand coalition with CDU/CSU and SPD, traffic lights coalition with SPD, FDP, and Greens, Jamaica coalition with CDU/CSU, FDP, and Greens. Jamaica coalition will more likely form the most favorable government for the US because it has both CDU and FDP, and traffic lights will be the least favorite as it has SPD. The grand coalition can maintain the status quo at best, because contrary to the current government, SPD will dominate CDU.

To understand nuances, we need to go over security issues to see how these coalitions will react to them. As far as Russia is concerned, none of them will recognize the annexation of Crimea and they all support related sanctions. However, if tensions heat up, any coalition government with SPD will be less likely assertive. On the other hand, as the Greens stress the importance of European values like democracy and human rights, they tend to be more assertive if the US formulates its foreign policy by these common values and describe US-China rivalry as a clash between democracy and authoritarianism. Moreover, the Greens disapprove of the Nordstream project, of course not for its geopolitics. FDP has also sided against it for a different reason. So, the US must follow closely the negotiations which have already started between anti-Russian smaller parties versus major parties.

For relations with China, pro-business FDP is less assertive. They are seeking for developing EU-China relations and deepening economic ties and civil society relations. While CDU/CSU and Greens see China as a competitor, partner, and systemic rival, SPD and FDP have still hopes that they can bring change through the exchange. Thus, the US might have bigger problems with the traffic lights coalition than the Jamaica coalition in this regard.

As for NATO and its 2 percent of GDP, the division is wider. CDU/CSU and FDP are the only parties who support it. So, in the next government, it might be harder to persuade them to pay more. Finally, for nuclear participation, the situation is the same. CDU/CSU is the only party that argues for it. This makes it an alarming situation because the next government has to decide on replacing Germany’s tornados until 2024, otherwise Germany will drop out of the NATO nuclear participation.

The below table gives a brief review of these three coalitions. 1 indicates the lowest level of favoritism and 3 indicates the highest level of favoritism. As it shows, the most anti-Russia coalition is Jamaica, while the most anti-China coalition is Trafic light. Meanwhile, Grand Coalition is the most pro-NATO coalition. If the US adopts a more normative foreign policy against China and Russia, then the Greens and FDP will be more assertive in their anti-Russian and anti-Chinese policies and Germany will align more firmly with the US if traffic light or Jamaica coalition rise to power.

Issues CoalitionsTrafic LightGrand CoalitionJamaica
Russia213 
China312 
NATO132 

1 indicates the lowest level of favoritism. 3 indicates the highest level of favoritism.

In conclusion, this election should not make Americans any happier. The US has already been frustrated with the current government led by Angela Merkel who gave Germany’s trade with China the first priority, and now that the left-wing will have more say in any imaginable coalition in the future, the Americans should become less pleased. But, still, there are hopes that Germany can be a partner for the US in great power competition if the US could articulate its foreign policy with common values, like democracy and human rights. More normative foreign policy can make a reliable partner out of Germany. Foreign policy rarely became a topic in this election, but observers should expect many ramifications for it.

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