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Is the EU risking geopolitical irrelevance in its own backyard? Lessons from Covid-19

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Covid-19 and the global landscape

Undoubtedly, it is hard to make complete sense of the impact of such an unprecedented – at least in our modern times- global crisis and it would be premature to make any definite assessment. However, from a geopolitical perspective, it would be safe to assume that it has reinforced existing tendencies that were already underway over the last decade: On the one hand, a retreat to the nation-state. On the other hand, it has led to an acceleration of re-regionalisation, mainly due to the decoupling of global supply chains. These two apparently opposite trends are in fact two sides of the same coin, signalling a departure from hyper-globalisation.

Multilateralism has suffered a serious blow in the aftermath of the pandemic. President Trump’s decision for the withdrawal of the US from the WHO is indicative. The escalating US-Chinese trade war has now been coupled with a war of narratives, with each side blaming the other for ineffective response to the pandemic.

Caught between this new wave of competition, the image of EU has also suffered a blow, due to the late response of the majority of member states to the pandemic, and more significantly, due to the early lack of solidarity between its very own members.

Amid this current unpredictable landscape, with eroding post-WWII international institutions, Washington’s self-isolation, a rising China and an assertive and regionally present/emerging Russia, the need for greater strategic autonomy is evident. EU has the opportunity but also the responsibility to step up as a champion of multilateralism. Hence, on FP level, a more strategic EU could finally justify von der Leyen’s characterisation of her Commission as a ‘’geopolitical’’ one.

However, in order to do so, the EU should begin with its own backyard, the seriously-affected and volatile Western Balkans.

EU and the WB, the enlargement’s state of play

It was in October 2019, when a much-anticipated green light for the start of the negotiating process for Albania and North Macedonia was denied by France, followed by Denmark and the Netherlands, on the grounds that the entire framework of the membership process should first be revised.

Sympathisers perceived it as an honest questioning of the effectiveness of the existing framework. Critics attributed this decision either to president Macron’s need to bolster his leadership image at the European level or the need to satisfy the French public’s increasingly sceptical attitude towards EU enlargement. Regardless of the rationale of this decision, it was still another indication of intergovernmentalism’s privacy in its FP setting, threatening to impel the progress achieved over the last years in the Western Balkans and an additional blow to its credibility vis-a-vis its neighbours.

Even though this (myopic) veto was revoked in April 2020, following the promise of a revised enlargement methodology, accession negotiations are expected to last several years.  The EU needs to step up in support in multiple ways in order to secure its credibility towards the WB states, while preventing further democratic backsliding in the region.

Impact of Covid-19 on WB

Covid-19 hit WB at a particularly peculiar period, with Serbia, North Macedonia, and Montenegro having their elections in 2020, whereas Kosovo’s fragile governmental coalition under former PM Kurti was overthrown in late March.

Even though the average number of Covid-19 cases per capita stayed significantly lower than the majority of European states, the WB were particularly affected due to their weak health systems and vulnerable economies. The political effects of the pandemic are also significant, having resulted to rising populism and centralisation of power. Some leaders even attempted to politicise the pandemic, treating it as a political issue instead of a severe public health crisis. Susceptible to their long-tradition of playing their ‘’nationalist card’’ at times of crises, the leaders of the WB have also increased their anti-EU rhetoric during the pandemic. Moreover, the instrumentalisation of the pandemic as a legitimising tool for additional authoritarian measures has exacerbated phenomena of state capture, especially in Serbia.

Foreign actors – disinformation campaigns on WB

Apart from risking a prolonged democratic setback, the pandemic’s effect in the region has also a geopolitical dimension in an area characterised by geopolitical pluralism:

Since 2013, China has increased its (geo)economic presence through the ‘’Belt and Road’’ project and the ‘’16+1’’ format with questionable practices and no conditionality strings attached for the local political leaderships. The EU’s late response to the crisis paved the way for greater Chinese involvement in the area. Beijing, attempting to switch the narrative of its own early inertness in dealing with the virus in its territory, launched a ‘’mask diplomacy’’ campaign, providing with masks and essential medical equipment countries in need, including candidate states such as Serbia but even EU member states like Italy.The Serbian leadership seized this opportunity to blast criticism towards the EU, thanking China and ‘’brother Xi’’ (in his own words) personally

Russia is frequently engaging in covert operations and disinformation campaigns, especially in Serbia and in one of Bosnia’s entities, Republika Srpska. Kremlin also attempted to undermine the Prespa agreement between Greece and North Macedonia and is openly against the recognition of Kosovo. It also uses energy as a bargaining chip for political gains; In this case, sticking to its usual ‘’divide and rule’’ strategy Kremlin has supported disinformation campaigns ran by state-owned media. The majority of them emphasise on EU’s lack of solidarity and weaknesses, portraying Russia and other authoritarian models of governance like China as the ones that can guarantee efficiency/effectiveness and decisiveness in managing an imminent crisis.

Turkey, a candidate for membership itself, exercises its own influence through soft power (culture and religion), mainly in Muslim-populated Bosnia, Kosovo and Albania, but also in Serbia and North Macedonia, through economic means, adding to the region’s complexity of overlapping and contrasting foreign interests.

These actors pose no threat to EU’s prominence in the region (indicatively enjoying 75% share of the total trade) but could significantly sabotage democratisation. The more distant the European perspective will look, the less constrained the leadership of states like Serbia will feel to conduct business with them. Albania is one of the two (together with Montenegro) candidate states with full alignment to the EU foreign and security policy. Yet its candidacy status has stalled.

EU’s economic presence in the region is disanalogous to its visibility and soft power, especially compared to the aforementioned foreign actors, partially due to their disinformation campaigns. Thus, in the dawn of the outbreak pandemic a similar pattern was repeated: EU was originally criticised for placing export restrictions on protective equipment during the virus’ outbreak in Europe.  Even though the restrictions were lifted quickly, as the European Commission first pledged €38 million for the immediate healthcare needs of the WB states in March, followed by a lucrative support package of €3,3 billion that was announced on 29 April, the reputational damage was already done.

Instead, rather than affecting EU’s position vis-a-vis its Balkan partners, the current crisis should pave the way for a ‘’positive instrumentalisation’’ of the crisis in order to avoid risking its geopolitical (ir)relevance.

Thus, the current crisis could be the start for greater, deeper and wider EU engagement in the region for the following reasons:

Increasing need for supply diversification in Europe and WB

As Mark Leonard recently noted ‘’the current pandemic could mark a paradigm shift in EU-China relationship. Thus, the pandemic’s spill-over effect on supply chains will lead to a re-regionalisation process in an attempt to a partial decoupling of economic ties with China. This could give EU an advantage, consolidating its geographic proximity and economic primacy in the region and halting Chinese geo-economic overextension. China’s ‘’Health silk road’’ can generate asymmetries and the debt-trap phenomena in several states across its silk road map (Sri Lanka etc.) should be a point of concern among WB states.

US decline as a global hegemon and the eroding trust of its allies

The current US leadership is too inward-oriented, strongly committed to its ‘’America first’’ doctrine. The President’s counterproductive obsession in insisting on the Chinese origin of the virus and his decision to leave the WHO were just two recent examples that added to Washington’s unwillingness to continue its post-WWII role as the provider of global public goods. Domestically, the political landscape is deeply polarised and divided before the upcoming elections. This overall decline is also reflected on the eroding trust of EU citizens and citizens of other traditional allies towards Washington.

Indeed, Beijing has managed to boost its leadership credentials globally, amid an increasingly introvert and isolationist US leadership. Nevertheless, the lack of transparency and credibility, two essential elements of hegemonic/stability theory/global leadership, coupled with the authoritarian character of its regime render China ill-suited for leading an increasingly ‘’headless’’, also known as’’G-Zero’’ world.

To capitalise of the current situation while staying in line with its own set of values, the EU will have to:

Apply greater scrutiny using updated screening mechanisms on foreign investments, including Chinese ones, pushing sustainability and ESG (Environmental, Social, Governance) criteria. EU can lead the path towards greater sustainability in trade and investments, boosting its geo-economic credentials as a global regulatory power. EU should explore ways to include the WB in the European Green Deal and its ambitious economic goals for climate neutrality by 2050 for the avoidance of price disparities in energy. The EU could assist by sharing best practices and by outlining a clear ‘’green agenda’’ for the Western Balkans, unlocking their significant potential in renewable energy, especially in hydro-energy. Overall, this crisis has been a reminder that supply chains in critical sectors should be reviewed.

Regardless the outcome of the global efforts for an effective vaccine and a return to normality, the economic recovery in the region will not be easy, according to World Bank report. Therefore, the full inclusion of the WB is a dire need for any post-reconstruction plan on behalf of the EU, regardless of the accession status stage/level. In other words, new carrots will have to be invented, complementary to the one of accession, as the accession carrot is losing ground in the near future due to low prospects and/or slow progress.  Of course, economic support should go hand in hand with strings attached.  The EIB as primary funding instruments, should outline clear conditionality criteria related to green economic goals, justifying its recent self-branding as the ‘’European Climate Bank’’.

On a diplomatic level, other possible moves on behalf of the EU with constructive orientation could be finally granting visa liberalisation for the citizens of Kosovo.  Finally, EU will have to keep demonstrating active support for the continuation of dialogue and the negotiations between Pristina and Belgrade, bypassing US involvement. Finally, upon approval of the negotiating frameworks for Albania and North Macedonia by the European Council, the EU should not let go of the momentum and carry on with the first intergovernmental conferences that will mark the formal start of the accession negotiations. This will be another strong sign of support to the progressive, pro-EU forces in the two countries.

In order to counter false narratives and improve EU’s visibility in the region, an increase in the efforts to pushback disinformation campaigns of Russia and China both in the Western Balkans but also in its own territory and members, securing its own coherence and its external positive outlook. The new initiative in fighting disinformation is a step towards the right direction and the Western Balkans should be prioritised as a focal point. It has been proven that economic assistance per se is not enough to win hearts and minds.

Of course, internal coherence is a precondition. It was tested once again, bringing into the surface the traditional division between North and South, however, the capping stone of the negotiations led to a compromise, indicative of the Union’s resilience.  Greater internal coherence will result to greater credibility abroad, especially in the candidate Balkan states. For example, the EU member states have yet to reach an agreement on the migration pact. Also, it is hard to capitalise on its strong record of human right and RoL when still showing an ambiguous attitude vis-a-vis serious violation by the governments of Hungary and Poland. Emphasising on its strengths (social state, transparency) and capitalising on its recent economic agreement will send the right message to the WB states.

Kevin Rudd, the former prime minister of Australia, in an early Covid-19 essay warned that international institutions are becoming arenas of competition. The EU, with its 27 member states and diversity of voices, has been an arena of conflicting interests in its own. Paradoxically, it could be argued that its own tedious, yet successful – experience with multilateralism and fair compromises puts the EU in a better position to contribute to efforts of repairing multilateralism. However, it should start being taken more seriously by its very own people and why not, by the people that aspire to join it one day. This goal cannot be reached unless its first achieved in its very own backyard, the WB, through an increase of its credibility-visibility and active/practical role on multiple levels.

Ioannis Alexandris is a political scientist, holder of an MA in International Relations from King's College London and a BA in Political Science & Public Administration from the University of Athens. Currently, he is working in the field of migration and asylum. He was previously based in Brussels, following a traineeship at the Council of the European Union. He has also worked as a freelance researcher and independent consultant. Among his key topics of interest are Foreign Policy Analysis, Geoeconomics, the Conflict-Development nexus and International Migration

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American diplomacy’s comeback and Bulgaria’s institutional trench war

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Official White House Photo by Adam Schultz

Even though many mainstream media outlets have not noticed it, US diplomacy has staged a gran comeback in the Balkans. The Biden administration chose Bulgaria as the stage on which to reaffirm America’s hold on the region. Putting strong sanctions on Bulgarian oligarch, Washington is signalling not-so subtly to Russia that its reach goes far and wide. But there are sensible implication for the little South-Eastern European country’s future as well. Perhaps, the fight against systemic corruption is finally reaching its apogee. Could this be the end of misgovernance?

A corrupted country — Introduction

Many argue that corruption in Bulgaria and South-Eastern Europe is but a remnant of national Communist Parties’ half-century long rule. Thus, the EU’s threat to metaphorically swap the carrot for the ­­stick should have favoured a thorough clean-up. Instead, it merely yielded some short-term successes for anti-corruption campaigners, activist judges and specialised procurators. Yet, State capture and malpracticesremain endemic for one reason or another amongst post-socialist countries inside and outsidethe Union. More specifically, these efforts were vain and Bulgaria was still ill-equippedwhen it joined the Union on January 1, 2007. Hence, Brussels allowed in a deeply corrupted country where hidden interest behold even those occupying the highest echelons of power.

If not membership in the European Union, at least internal politics could have helped the country fend off endemic maladministration. Yet, the status quo has preserved itself intact despite calls and promises to root out corruption having been getting louder. In a sense, corruption’s pervasiveness is a feature and not a bug embedded in Bulgaria’s imperfect liberal free-market democracy. These conservative – and, in a sense, perverting – forces have found their embodiment in Prime Minister Boyko Borisov and his associates. Therefore, governmental agencies, political parties, courts and the entire extant structure of power contribute to prevent any change.

The wind of change: Popular unrest and institutional trench war

That notwithstanding, the proverbial ‘wind of change’ may have begun to lash across Bulgaria in summer 2020. After having taken to the streets against the party of power’s abuses and failures, voters abandoned Borisov in the April 2021 elections. Conversely, new parties and loose coalitions of civil-society organisations, formed shortly before the contest, won a relative majority of preferences. And, as many analysts noticed, these newcomers do not share much besides the desire to “dismantle the Borisov system”.

Nonetheless, these new actors failed to form a governing coalition due to the heterogeneity and inherent negativity of their agendas. Thus, President Rumen Radev scheduled new elections on July 11 and appointed a caretaker government.

Political reconfigurations

Indeed, there is an institutional custom prescribing such cabinets to limit their activities to managing current affairs. Nonetheless, these technocrats – many of whom supported Radev in his feud with Borisov – started an extensive review of past governments. In the process, the cabinet reshuffledbureaucracies, suspended Sofia airport’s concession and halted other public tenders for suspected irregularities. More importantly, the ministry of interior has confirmed prior suspects that Borisov-appointed officers may have illegally wiretapped opposition politicians.

In a word, President Radev’s ministers are endeavouring to tear apart the ‘Borisov system’ before the next elections. However, simply ousting most – or even all – of the previous government’s men in key positions within State apparatuses is uncomplicated. Especially when pushing such an agenda is the President,with the palpable backing of an absolute majority of the population. But the Borisov system has also an economic component. In fact, the party of power has set up a tentacular network of supportive oligarchs funding and favourable media coverage. Putting them out of the game is equally, if not more, important than firing bureaucrats — but also much more difficult.

Chasing the oligarchs

In other words, undoing the Borisov system’s appointments and putting trustworthy officers in those posts in just the first step. But real change requires leaving the wealthy individuals and organisations benefitting from the status quo clawless and teethless. Such a task entails deep economic transformations that would surely evoke immense opposition from powerful pressure groups. Evidently, there is not enough time before Bulgarians vote again and their representatives pick up a new executive. But the caretaker government is powerless in front of Bulgaria ‘s condemnation to persistent corruption no matter what.

On the contrary, the government has endeavoured to chase and derail some of these Borisov-connected oligarch. For instance, the finance minister appointed an Audit Committee with the task of reviewing the Bulgarian Development Bank’s (BBR) activities. As a result, the public discovered that oligarchs had steered the BBR away from its mandate of supporting small companies. In fact, eight large private companies have received more than half of the BRR’s total credits or ca. €473 million. On average, each of them has borrowed almost €60mln — and “this is not a small and medium business. In addition, these companies borrowed against a 2% rate instead of the average 5–7%. Following this leak, the Minister of Finance fired the entire board of the BBR. He also instructed the Bulgarian National Bank (BNB) to appoint a new directorate.

The US strike back

Quite surprisingly, the United States has just given Radev and his government a valuable assist. On June 2, the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned several “individuals for their extensive roles in corruption”. In first instance, the sanctions target Vasil Bozhkov, a Bulgarian businessman currently hiding in Dubaito escape an arrest warrant for accusation of bribery; Delyan Peevski, prominent figure of and former member of the Parliament for the predominantly Turk Dvizhenie za Prava i Svobodi as well as the owner/controller four of the companies involved in the BBR’s scandal;  and Ilko Zhelyazkov, former appointee to the National Bureau for Control on Special Intelligence-Gathering Devices. Secondarily, the US have sanctioned “their networks encompassing 64 entities” with which no transaction in dollars is possible.

The US chose to hit Bulgaria, a NATO ally, with “the single largest action targeting corruption to date”. On the one hand, this falls within the boundaries of the current administration’s effort to restore America’s moral stewardship. More to the point, one may interpret the sanctions as a not-so/veiled message to Russia — which heavily influences Bulgarian politics. Still, those who had been looking at US-Bulgaria bilateral relations should have expected a similar decision. After all, the sanctions came after US ambassador Herro Mustafa’s reiterated criticisms of pervasive corruption in the country. Mustafa has also refused symbolically to meet Chief Public Prosecutor Ivan Geshev, who embodies systemic corruption in Bulgaria.

Consequently, the game has scaled up to a whole new quality now. The BNB barred all Bulgarian banks to entertain commercial relationships with people under US sanctions. Moreover, the BNB had already froze some of Peevvski’s, Bozhkov’s and Zhelyazkov’s deposits, means of payment, and assets earlier. However, after the OFAC’s decision, the block extended to their entire network of affiliates and related entities.

Conclusion: The US are reclaiming the Balkans, and it may not be bad for Bulgarians

Officially, corruption’s malign influence on democracy provides the US with a moral justification to sanction any corrupt individua. Namely, the Treasury argues that it

undermines the values that form an essential foundation of stable, secure, and functioning societies; ha[s] devastating impacts on individuals; weaken[s] democratic institutions; degrade[s] the rule of law; perpetuate[s] violent conflicts; facilitate[s] the activities of dangerous persons; and undermine economic markets.  

Surely, the soon-to-come meeting with Russia’s President Vladimir Putin also played a role in this decision.

Yet, the sanctions’ timing suggests that there might be other forces at play. Rather, it seems that Washington decided to pick a side in the ongoing institutional trench war between Presidency and Government.

From Bulgaria’s perspective, even though most American media have not noticed it, the impression is quite clear. To quote President Biden: “America is back, diplomacy is back”. Specifically, this resurgence has a special meaning in the Balkans, a region of immense relevance for Europe’s energy security. Concretely, the US is taking the lead in the West’s effort to keep China, Russia, and Turkey out.

True, whether this external support will suffice for Bulgaria to finally eradicate corruption is debatable. Nevertheless, the US’s return may spur a positive competition dynamic in which Washington and Brussels compete for limited normative power. If this was the case, increase international pressures on Bulgaria to limit corruption may reach a breaking point relatively soon. At which point, either a fundamental shift will take place; or Bulgarian elites will entrench further

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Indo-European rapprochement and the competing geopolitics of infrastructure

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Current dynamics suggest that the main focus of geopolitics in the coming years will shift towards the Indo-Pacific region. All eyes are on China and its regional initiatives aimed at establishing global dominance. China’s muscle-flexing behavior in the region has taken the form of direct clashes with India along the Line of Actual Control, where India lost at least 20 soldiers last June; interference in Hong Kong’s affairs; an increased presence in the South China Sea; and economic malevolence towards Australia. With this evolving geopolitical complexity, if the EU seeks to keep and increase its global ‘actorness’, it needs to go beyond the initiatives of France and Germany, and to shape its own agenda. At the same time, India is also paying attention to the fact that in today’s fragmented and multipolar world, the power of any aspiring global actor depends on its diversified relationships. In this context, the EU is a useful partner that India can rely on.

Indo-European rapprochement, which attempts to challenge Chinese global expansion, seeks also to enhance multilateral international institutions and to support a rules-based order. Given the fact that India will hold a seat on the UN Security Council in 2021-22 and the G20 presidency in 2022, both parties see an opportunity to move forward on a shared vision of multilateralism. As a normative power, the EU is trying to join forces with New Delhi to promote the rules-based system. Therefore, in order to prevent an ‘all-roads-lead-to-Beijing’ situation and to challenge growing Chinese hegemony, the EU and India need each other.

With this in mind, the EU and India have finally moved towards taking their co-operation to a higher level. Overcoming difficulties in negotiations, which have been suspended since 2013 because of trade-related thorny topics like India’s agricultural protectionism, shows that there is now a different mood in the air.

The Indian prime minister, Narendra Modi, had been scheduled to travel to Portugal for  a summit with EU leaders, but the visit cancelled because of the Covid-19 pandemic. As a result, the European Commission and Portugal – in its presidency of the European Council – offered India to hold the summit in a virtual format on 8 May 2021. The talks between these two economic giants were productive and resulted in the Connectivity Partnership, uniting efforts and attention on energy, digital and transportation sectors, offering new opportunities for investors from both sides. Moreover, this new initiative seeks to build joint infrastructure projects around the world mainly investing in third countries. Although both sides have clarified that the new global partnership isn’t designed to compete with China’s Belt and Road Initiative (BRI), the joint initiative to build effective projects across Europe, Asia and Africa, will undoubtedly counter Beijing’s agenda.  

The EU and its allies have a common interest in presenting an alternative to the Belt and Road Initiative, which will contain Chinese investment efforts to dominate various regions. Even though the EU is looking to build up its economic ties with China and signed the EU-China Comprehensive Agreement on Investments (CAI) last December, European sanctions imposed on Beijing in response to discrimination against Uighurs and other human rights violations have complicated relations. Moreover, US President Joe Biden has been pushing the EU to take a tougher stance against China and its worldwide initiatives.

This new Indo-European co-operation project, from the point of view of its initiators, will not impose a heavy debt burden on its partners as the Chinese projects do. However, whilst the EU says that both the public and the private sectors will be involved, it’s not clear where the funds will come from for these projects. The US and the EU have consistently been against the Chinese model of providing infrastructure support for developing nations, by which Beijing offers assistance via expensive projects that the host country ends up not being able to afford. India, Australia, the EU, the US and Japan have already started their own initiatives to counterbalance China’s. This includes ‘The Three Seas Initiative’ in the Central and Eastern European region, aimed at reducing its dependence on Chinese investments and Russian gas. Other successful examples are Japan’s ‘Expanded Partnership for Quality Infrastructure’ and its ‘Free and Open Indo-Pacific Strategy’. One of the joint examples of Indo-Japanese co-operation is the development of infrastructure projects in Sri Lanka, Myanmar and Bangladesh. The partners had been scheduled to build Colombo’s East Container Terminal but the Sri Lankans suddenly pulled out just before signing last year. Another competing regional strategy is the Asia-Africa Growth Corridor (AAGC), initiated by India, Japan and a few African countries in 2017. This Indo-Japanese collaboration aims to develop infrastructure in Africa, enhanced by digital connectivity, which would make the Indo-Pacific Region free and open. The AAGC gives priority to development projects in health and pharmaceuticals, agriculture, and disaster management. 

Undoubtably, this evolving infrastructure-building competition may solve the problems of many underdeveloped or developing countries if their leaderships act wisely. The newly adopted Indo-European Connectivity Partnership promises new prospects for Eastern Europe and especially for the fragile democracies of Armenia and Georgia.

The statement of the Indian ambassador to Tehran in March of this year, to connect Eastern and Northern Europe via Armenia and Georgia, paves the way for necessary dialogue on this matter. Being sandwiched between Russia and Turkey and at the same time being ideally located between Europe and India, Armenia and Georgia are well-placed to take advantage of the possible opportunities of the Indo-European Partnership. The involvement of Tbilisi and Yerevan in this project can enhance the economic attractiveness of these countries, which will increase their economic security and will make this region less vulnerable vis-à-vis Russo-Turkish interventions. 

The EU and India need to decide if they want to be decision-makers or decision-takers. Strong co-operation would help both become global agenda shapers. In case these two actors fail to find a common roadmap for promoting rules-based architecture and to become competitive infrastructure providers, it would be to the benefit of the US and China, which would impose their priorities on others, including the EU and India.

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The Leaders of the Western World Meet

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The annual meeting of the G7 comprising the largest western economies plus Japan is being hosted this year by the United Kingdom.  Boris Johnson, the UK Prime Minister has also invited Australia, South Korea, South Africa and India.  There has been talk of including Russia again but Britain threatened a veto.  Russia, which had been a member from 1997, was suspended in 2014 following the Crimea annexation.  

Cornwall in the extreme southwest of England has a rugged beauty enjoyed by tourists, and is a contrast to the green undulating softness of its neighbor Devon.  St. Ives is on Cornwall’s sheltered northern coast and it is the venue for the G7 meeting (August 11-13) this year.  It offers beautiful beaches and ice-cold seas.

France, Germany. Italy, UK, US, Japan and Canada.  What do the rich talk about?  Items on the agenda this year including pandemics (fear thereof) and in particular zoonotic diseases where infection spreads from non-human animals to humans.  Johnson has proposed a network of research labs to deal with the problem.  As a worldwide network it will include the design of a global early-warning system and will also establish protocols to deal with future health emergencies.

The important topic of climate change is of particular interest to Boris Johnson because Britain is hosting COP26  in Glasgow later this year in November.  Coal, one of the worst pollutants, has to be phased out and poorer countries will need help to step up and tackle not just the use of cheap coal but climate change and pollution in general.  The G7 countries’ GDP taken together comprises about half of total world output, and climate change has the potential of becoming an existential problem for all on earth.  And help from them to poorer countries is essential for these to be able to increase climate action efforts.

The G7 members are also concerned about large multinationals taking advantage of differing tax laws in the member countries.  Thus the proposal for a uniform 15 percent minimum tax.  There is some dispute as to whether the rate is too low.

America is back according to Joe Biden signalling a shift away from Donald Trump’s unilateralism.  But America is also not the sole driver of the world economy:  China is a real competitor and the European Union in toto is larger.  In a multilateral world, Trump charging ahead on his own made the US risible.  He also got nowhere as the world’s powers one by one distanced themselves.

Secretary of the Treasury Janet Yellen is also endorsing close coordination in economic policies plus continued support as the world struggles to recover after the corona epidemic.  India for example, has over 27 million confirmed cases, the largest number in Asia.  A dying first wave shattered hopes when a second much larger one hit — its devastation worsened by a shortage of hospital beds, oxygen cylinders and other medicines in the severely hit regions.  On April 30, 2021, India became the first country to report over 400,000 new cases in a single 24 hour period.

It is an interdependent world where atavistic self-interest is no longer a solution to its problems.

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