The title of these comments is inspired by my personal experience in important areas of public policy both as a politician beginning in the 1970s and more recently as Secretary General of the OECD from 1996 until 2006. That was a very important decade as it ushered in the period which some day we thought would be known as the beginning of globalization on a grand scale.
When I took up my responsibilities in Paris at the end of May 1996 it was a time brimming with optimism about the great future ahead for our children and generations to follow! We were about to say goodbye to one of the most brutal and bloody centuries in human history. Physical human suffering was compounded by poverty and misery of hundreds of millions, especially in the developing world.
Many of us involved at the international level in public policy saw major opportunities to address challenges which had eluded us in the past. Indeed we took a great deal for granted and I must confess that I certainly did. Why? Here are a few examples and the reasons for taking so much for granted.
- We had just witnessed major geopolitical restructuring in the wake of the fall of the Berlin Wall. The Soviet Union had collapsed and we assumed that the threat of nuclear war had disappeared with it;
- With the replacement of the GATT the ( WTO) we took for granted the exciting prospect of global free trade and investment, which would bring economic growth and rising prosperity everywhere, but especially to the developing world. We expected “trade” not “aid” to be the route out of third world poverty;
- The expansion of the proven Marshall Plan formula to regions fractured by division and conflict. We took for granted that such approaches could bring peace to the war torn Balkans and perhaps even to the Middle East and the Arab World;
- We took for granted that with the publication of the Brundtland Report “ Our Common Future” on Sustainable Development followed by the Rio Earth Summit in 1992, followed by the commitments in the Kyoto Protocol of 1997, that the decades long stalemate of slowing green house gas emissions (GHGs) (and therefore global warming) had been broken and that multilateral international commitments would ensure the protection of the biosphere and its natural capital;
- We took for granted that improvements to the stunning success of healthy capitalism through universal principles of good corporate governance, supported by an Anti Bribery Convention, would control the greed inherent in the undue exploitation of unfettered capitalism. We took for granted that the wealth and wage disparities would narrow, especially in the United States;
- We witnessed the remarkable rise of the European Union (EU) uniting former enemies. We took its expansion and global role for granted. Regarding the EU, I often quote a paragraph from the preface of A History of Europe by H. A. L Fisher, a warden at Oxford University in the 1930s. He wrote: “[No] question [would be] more pertinent to the future welfare of the world than how the nations of Europe … may best be combined into some stable organization for the pursuit of their common interests and the avoidance of strife“;
- We also took for granted the gradual spread of democracy and democratic institutions into the former countries of the Soviet Union and elsewhere in central Europe, South America and Asia;
- Early misgivings about the ideological bent of Recep Erdogan as the Prime Minister, and then President of Turkey, were dispelled as he initially seemed supportive of good governance, freedom of the fourth estate, free speech and democratic principles. We believed him and took for granted that the remarkable reforms introduced by Mustafa Kemal, known as Ataturk, would ensure the survival of a secular democratic Turkey;
- We took for granted the United States as a lone global superpower, magnanimous and fair, the first true united nation with people drawn from all corners of the planet to its robust democracy and unlimited opportunities.
As we look back over the past 25 years it is obvious that much too much was taken for granted. Given that so few of the opportunities we assumed would bring the world to a much better place were seized by my generation, what do you perceive as a better way forward? When we open that discussion in a few minutes, I hope I have convinced you to take little for granted. Be wary, if not skeptical, about those who foresee only a prosperous and peaceful future for this wonderful planet.
We need to remind ourselves of the following and address the questions I raise in our general discussion.
1. We failed to engage Russia with the West and as a result are now strengthening NATO in an effort to contain Putin’s aggressive behaviour. History may show this to be the most egregious of all Western public policy failures in the post-Soviet Union period because of its impact on other areas of global concern where Russia should have been a partner. Is it too late to recover from a failure to engage Russia despite the Russian adventures in Crimea and the Ukraine?
2. The EU is increasingly fragile, with concern about the future of the euro common currency and the EU’s capacity to deal with massive immigration from the war-torn areas of the Middle East. Do the weaknesses of the EU reflect a too rapid expansion without strengthening institutions which would move it toward a more federalist structure promoted by the Spinelli group?
3. Tensions have grown between China and its neighbours over territorial disputes, convincing the United States to pivot from its European focus and increase its military presence in Asia. Does this refocussing plus a strengthening alliance between China and Russia herald the reigniting of another Cold War like the one my generation grew up with?
4.Now many more nations( and possibly terrorist groups) have access to nuclear weapons. Does that greatly increase the possibility of a 21st century nuclear war?
5.The global free trade agenda is in the doldrums with the failure of the Doha Round and the concomitant rise of protectionist rhetoric, especially in the United States ,at the highest political levels. Does this mean that global free trade is now beyond reach?
6. Is the prospect of eliminating poverty in the developing world through trade and investment dying?
7.Reductions in GHG emissions, especially CO2, but also methane, continueto elude us after decades of effort, showing how ineffectual the United Nations Framework Convention on Climate Change process has been and will be. The widely heralded but unenforceable Paris Agreement in the context of a history of failures is even dangerous because much of the public thinks our leaders have come to grips with this challenge (as we all did after the Kyoto Protocol was adopted in 1997). Do they do not realize that even if the agreed upon targets are achieved they are not sufficient to keep global temperatures below the level that the scientific community tells us is necessary to prevent dramatic and irreversible climate change?Is there resistance to developing a Plan B as a last resort to prevent unacceptable global warming? Solar radiation management , a form of geo engineering, seems to be broadly under consideration. Is that good or of concern? As areas of the world may become uninhabitable, will there be mass migration from areas of the developing word to more temperate climates?
8. For those who believe in democracy and perceived it as beginning to take root after the fall of the Berlin Wall and the collapse of the Soviet Union do subsequent developments undermine the confidence that many democratic governments may be in retreat? In some countries, such as Thailand, there has been a return to a military dictatorship. In others, such as Russia and other countries that were formerly part of the Soviet Union, there is only a pretense of democracy with rigged elections, as in Belarus. There also appears to be backsliding in Turkey, a very important global player and a bridge between Asia and its historic Western allies. The situation in Turkey, which held such promise only a decade ago, is very worrisome. President Erdogan seems increasingly autocratic and intolerant of criticism and dissent. Failure of this democracy could be a sad, even tragic, development. Turkey is a major regional and global power, and through the influence of Atatürk it became an emerging secular democracy with a majority Sunni population straddling Europe and Asia. Atatürk showed the world what individual leadership supported by ethical standards could accomplish in a short period of time.
9. Is the world faced with a growing number of autocratic strongmen who would prefer to destroy the important international infrastructure if it constrains their personal ambitions? It would appear that when one combines the far east, parts of Eastern Europe, Russia, Turkey, China, North Korea, the Philippines, Thailand etc, more than 50% of humanity is or will soon be governed by “strong men“. With few exceptions such as Ataturk, history shows that such people have only one interest “me”.
President Trump gives every indication that he is anxious to join the ranks of these strongmen, initially by withdrawing the United States from the central role it had played through visionary leadership by building and helping to maintain the post war international and institutional architecture. His slogan “America First” should be interpreted for what it really is, namely, “Donald Trump First”.
There is a disquieting commentary in the New York Times of 16 December 2016 entitled “Is Donald Trump a Threat to Democracy” by Professors Steven Levitsky and Daniel Ziblatt of Harvard University. Here is an excerpt:
“Donald J. Trump’s election has raised a question that few Americans ever imagined asking: Is our democracy in danger? … Past stability is no guarantee of democracy’s future survival … Our research points to several warning signs.
The clearest warning sign is the ascent of anti-democratic politicians into mainstream politics. Drawing on a close study of democracy’s demise in 1930s Europe, the eminent political scientist Juan J. Linz designed a “litmus test” to identify anti-democratic politicians. His indicators include a failure to reject violence unambiguously, a readiness to curtail rivals’ civil liberties, and the denial of the legitimacy of elected governments. “
Mr. Trump tests positive on all counts. In the campaign, he encouraged violence among supporters and pledged to prosecute Hillary Clinton;
He hasthreatened legal action against unfriendly media, and continues to suggest that he might not accept the election results saying the election will be rigged. If he loses will he in some way resist leaving office?
Since his 2016 election he has not changed his attitude on any of these issues.
David Frum, a Conservative and traditional Republican and a senior editor at the Atlantic published a book two years ago “Trumpocacy- The Corruption of the American Republic”. It has recently been released in paperback with a new preface by Frum which reviews the appalling record of this individual to whom Americans have entrusted the leadership of the most powerful nation in history.
In a concluding paragraph of the book he writes….” President Trump is cruel, vengeful, ignorant, lazy, avaricious and treacherous…”
Later he adds: “We are living through the most dangerous challenge to the free government of the United States that anyone alive has encountered. What happens next is up to you. Don’t be afraid. This moment of danger can be your finest hour as a citizen and as an American”
Today I cast Frum’s challenge to each of you in a global perspective rather than just American.
Yes, democracy can be fragile everywhere.
We who live in well-established democracies must never be complacent or smug about the success of our societies. The comments of the Harvard professors above echo that concern.
Our democratic societies and their political systems must adapt to a rapidly evolving world. We are increasingly in that global village through forces of globalization amplified by communication and transportation technologies.
In line with the work of Charles Darwin, it has been said that “it is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” The same could be said of democratic governments and even empires.
What happens next to global free government is up to your generation of leadership. It is a humungous challenge, especially in countries where the seeds of democracy have never been planted or where they have enjoyed short life spans, Thailand and especially Turkey come to mind.
The future of democracy across the globe could be destroyed if the autocratic motives and moves of Donald Trump succeed, as they well might if I read the current political climate in the United States correctly. Despite shortcomings which need correction such as the unfortunate influence on elections through Super Pacs, the United States has been perceived for years as a remarkable democracy which others attempt to emulate. This may be about to change as it is increasingly viewed as government by the rich, of the rich and for the rich, and Trump does not appear to feel constrained by the institutional checks and balances of the constitution. He could put American democracy on the terrible path to an autocratic state which he seems to admire, especially in the Russia and Turkey of today.
In summary, what looked to be a promising future in all the major areas of concern in the 1990s has evolved into what could best be described as an economic, social, and geopolitical mess. But as bad as that story is, we have succeeded in making the future even more problematic with the arrival of global terrorism.
My generation must recognize the extraordinary failures of the past decades. Your generation must do better.
It seems that efforts to create consensus on major issues amongst many sovereign nations does not work. Is there not a better way forward in global governance? This is the last question I leave you with.
Have 190 counties not offered proof of the impossibility of finalizing an international and binding free trade agreement known as the Doha Round, or as almost 200 countries have done in their efforts to find consensus on concrete solutions to address the challenges of climate change. Neither set of efforts, the first initiated through the WTO process and the second through the United Nations Framework Convention on Climate Change process, has delivered the results sought and it is unlikely they ever will.
Is starting small and gradually broadening an international consensus a better option? The EU successfully evolved from a small base but has it expanded too rapidly to consolidate and build upon its remarkable and successful beginnings? Even the G20 may be ineffectual because of size and economic and social diversity.
Does the difficulty of building broad consensus on these issues suggests that a structure more resembling the UN Security Council would be more effective? Could the Security Council itself with a limited membership of powerful countries become a global steering group and replace the G-7 process?
Whether we like it or not, each major power has spheres of influence over smaller regional powers through shared history, culture (sometimes language), and trade and investment.
When we compare human and societal evolution to a relay race one generation must pass the baton on to the next. In a small way that is what I am saying to you today. I hope our discussion will touch upon a number of these important and often controversial issues.
We have fallen behind in many respects in the early years of this 21st century, perhaps even forfeiting many of the hard-earned benefits of good capitalism and democracy to an ever increasing number of corrupt strong men and autocratic regimes.
Is that the future?
Remember the words Shakespeare attributed to Brutus:
“There is a tide in the affairs of men, Which, taken at the flood, leads on to fortune; Omitted, all the voyage of their life is bound in shallows and in miseries.”
I am persuaded that the latter may be our fate. We did not take the flood of opportunities at hand in the 1990s. Is it too late to recover through hard work, sacrifice and creativity in restructuring global governance for a better world.
What should we do? What can you do?
It will depend to a large extent on your personal values which I hope have not been irreversibly warped by admiration for the material success of greed and visible wealth of the famous 1% who dominate power and politics in the USA and increasingly elsewhere.
I have described the state of the world today as analogous to the fireplace at my country home. It is usually fully loaded with tinder, kindling and dry wood. All it awaits is a match. Unfortunately, in the world today there are many matches waiting to be lit and spread their deadly destruction to regions, if not the planet as a whole.
*This text is exclusively made as supplementary for a university lecture held on 28 OCT 2020. It is a part of the so-called ‘Geneva Lecture Series – Contemporary World of Geo-economics’, concepted and considered by prof. Anis H. Bajrektarevic for the Swiss University in Geneva.
If Paris sneezes, will Europe catch cold?
The Austrian Chancellor Metternich once said “Quand Paris s’enrhume, l’Europe prend froid” (“When Paris sneezes, Europe catches cold”). With the French President Emmanuel Macron all set to visit Beijing in early April, can France lead the rapprochement between the European Union and China?
“Une voix européenne”
Set to be accompanied by the President of the European Commission Ursula von der Leyen, the French President plans to “carry a European voice” on his state visit to China, the details of which were revealed by L’Élysée on Friday. On top of his list is the agenda to end the Ukraine War. Macron has called China’s engagement in resolving the Russia-Ukraine conflict that came in the form of a 12 point plan a “good thing“. Beijing’s position paper urges all parties to support Russia and Ukraine in negotiating a way out of the conflict while upholding the UN Charter and values such as respect for territorial sovereignty, abandoning Cold War mentality, non-interference in internal affairs among others.
The French President has further urged China not to militarily aid Moscow, an accusation made by the Western powers that Beijing has consistently denied. He plans to push China to use its influence over Russia so as to prevent the latter from using chemical or nuclear weapons. Macron noted that the War would only come to an end if “Russian aggression was halted, troops withdrawn, and the territorial sovereignty of Ukraine and its people was respected”. Spanish Prime Minister Pedro Sanchez has also expressed a similar willingness and is ready to visit China in April. Luxembourg too resonates the opinion of engaging closely with Beijing.
Both Chinese and Western media reports note that this “competition to book flights to China” among EU leaders stems from their realisation that they “cannot lose China” owing to the latter’s increasing international significance. While many have voiced support for engaging with Beijing, not all are on the same boat.
A House Divided
The European Council meeting earlier this week, which remained focussed on Germany’s tussle with EU leaders on its decision to end the use of traditional combustion engine cars, did discuss China albeit in an inconclusive manner. While France, Germany, Spain and Luxembourg have signalled their intentions to engage with Beijing; Latvia, Lithuania, Sweden, Poland have expressed concerns over Chinese President Xi Jinping’s recent high profile visit to Moscow which is being seen as “cementing of a dangerous alliance”. The concern is not just suspected military aid to Moscow but also the growing threat of a war between Beijing and Washington over Taiwan where Europe finds itself caught in the middle. Apprehensions too remain over increasing economic reliance on China.
While there has been no consensus on how the EU as a bloc must shape its China policy, Macron has clarified– although France values EU’s coordination, it follows an “independent foreign policy” thus highlighting that he would push to negotiate with China, with or without his regional allies.
Paris et Pékin
Beijing is not only France’s 7th largest customer and 2nd largest supplier (with a 9% market share in France) but also presents an opportunity for the French President who idealises Former leader General Charles de Gaulle to challenge what the French call hyperpuissance or unchallenged “hyperpower” of the United States. For Macron, relating himself to General de Gaulle is equivalent to “claiming to own a piece of the true cross”. Afterall, it was the General who defied Western allies to establish ambassadorial relations with Beijing in 1964, a period of simmering Cold War tensions that brought Paris seething criticism. Though Macron has no serious qualms with Washington, he does seek a voice that crafts his role as a major leader on the international stage.
On the domestic front, Monsieur le Président finds himself in trouble. The highly unpopular Pension Reform Bill that raises retirement age from 62 to 64 was passed without a Parliamentary vote, resulting in nationwide protests. Opponents suggest other measures such as increasing taxes for the rich and the corporates, a move refuted by Macron for the possibile harm it might bring to the financial system. Amidst a scenario where things have gotten as serious as nationwide halts in services and a no-confidence motion against the President, enhanced ties that bring more investments from China can help, an opportunity Macron will try hard to clinch. But the political environment certainly makes things difficult.
Worsening ties and a Confident China
The “Balloongate” controversy was yet to cool off when a new crisis in Sino-US relations erupted in the form of calls to ban the TikTok app over alleged illegal data collection which many in the US Congress suspect land in the Chinese Communist Party’s records. Parallely can be seen a change in Chinese attitudes towards Washington.
Amidst the recent session of the National People’s Congress, President Xi criticised “Washington-led attempts” to “contain, encircle and suppress” China which pose “serious challenges to Beijing’s development” (“以美国为首的西方国家对我实施了全方位的遏制、围堵、打压，给我国发展带来前所未有的严峻挑战。”), a rare moment when the Chinese leadership has clearly named the United States in its criticism.
A policy shift too seems to be on the cards. Xi’s new 24 Character Foreign Policy, which Dr. Hemant Adlakha believes, marks “China’s new foreign policy mantra in the ‘New Era’ ” acting as its “ideological map to attain national rejuvenation by 2049”, has replaced Deng Xiaoping’s 24 Character Strategy focussed on never seeking leadership and assuming a low profile. The characters “沉着冷静；保持定力；稳中求进；积极作为；团结一致；敢于斗争 ” which translate as “Be calm; Keep determined; Seek progress and stability; Be proactive and go for achievements; Unite under the Communist Party; Dare to fight” clearly demonstrate a more pronounced international role that China envisages for itself.
China’s confidence is further elevated by its success in brokering peace between staunch rivals Saudi Arabia and Iran. With the handshake that brought the Sunni Arab Kingdom and the Shiite Persian theocracy together, Beijing has not only garnered accolades from nations across the region but has also succeeded in pulling American allies such as Riyadh to its side to some extent. Xi’s Moscow visit shows how he is determined to craft Beijing as an alternative negotiator to Washington, no matter how much criticism comes his way.
How much can France influence the EU?
As the political climate between US and China heatens, those trying to balance between the two would find the alley narrowing. But considering the stakes, Macron will try. The question however arises, how much of an influence could France exert on the EU?
Being the only Permanent seat holder of the United Nations Security Council post-Brexit, France certainly has a heavy weightage when it comes to policy making in the European Union. Macron too is a leader with a vision. His “grand plan” includes uniting the regional body as a strong political, economic and social bloc by shedding off the influence of the United States. However, there have being many tussles and Paris has found itself at loggerheads with many in the bloc including Turkey and Germany.
Macron has also raised eyebrows over his stance on Russia. After attempts to charm Putin failed, the French President assumed an ambiguous position which included criticising the war but not commiting to defend Ukraine. As expected, it did not fare well with the allies in Europe.
The air has finally cleared and a “defeat Russia but don’t crush it” stance has appeared. Monsieur le Président certainly wants to chart a pragmatic path that inflicts minimum harm and that’s what would be a priority when he lands in Beijing to talk about the war. Would he receive the support of EU allies? Seems difficult, given his past misjudgements and the regional organisation’s recent tussles with Beijing ranging from trade negotiations to the issue of human rights violation.
How successful Macron gets in making EU negotiate with China also depends on how successful Beijing gets in getting Moscow on board, which after all is more difficult than dealing with Tehran and Riyadh. While Russia seems agreeable to China’s plan of ending the war, Putin has bigger ambitions and far lower stakes in launching an all-out war with Washington and allies than Beijing does. The deepening “comprehensive strategic partnership of coordination for new era” between China and Russia remains unclear and so is how much dependence on Beijing would dictate any change in Putin’s plans. Even if China’s actions embolden Russia as claimed, Beijing knows it is in its favour to tone down Moscow’s belligerence considering the economic costs and military harm that Washington is capable of lashing. Macron too is unsure about how tightly he would like to embrace China. For now, better ties is what he eyes. The question arises – If Paris sneezes in favour of resetting ties with Beijing, would the rest of Europe catch the cold? Only time will tell.
Powerful Protest in Geneva Indicates India’s Human Rights Abuses
On March 3, 2022, a unique protest was held in front of the UN Headquarters in Geneva. This peaceful protest was made by placing standees, 4D view tents, posters and banners bearing details of Indian human rights abuses. The protest depicted pictorial messages regarding the treatment of women in India, child marriages, Indian Christian persecution, religious extremism, state of minorities, state-sponsored terror attacks on minorities, treatment of Dalits, and burning of Christian churches and religious preachers.
The protest was organized by several human rights organizations, including Amnesty International, Human Rights Watch, and the International Commission of Jurists. The aim of this protest was to highlight the human rights abuses that are taking place in India and to draw attention to the plight of the victims of these abuses.
One of the most significant issues highlighted in this protest was the treatment of women in India. India has a poor record when it comes to women’s rights, with high rates of sexual violence, domestic violence, and child marriages. According to a report by the National Crime Records Bureau, there were 88 rape cases reported every day in India in 2019. The protest aimed to draw attention to this issue and to put pressure on the Indian government to take action to protect women’s rights.
Another issue highlighted in the protest was Indian Christian persecution and religious extremism. India is a secular country with a diverse population, but there have been numerous incidents of violence against religious minorities, particularly Christians and Muslims. The protest aimed to draw attention to the growing intolerance and extremism in India and to call on the Indian government to take action to protect religious minorities.
The protest also highlighted the treatment of Dalits, who are considered to be the lowest caste in India’s caste system. Dalits face discrimination and violence on a daily basis, and their rights are often ignored by the Indian government. The protest aimed to draw attention to this issue and to call on the Indian government to take action to protect the rights of Dalits.
Another issue highlighted in the protest was the burning of Christian churches and religious preachers. There have been numerous incidents of violence against Christians in India, including the burning of churches and attacks on religious preachers. The protest aimed to draw attention to these incidents and to call on the Indian government to take action to protect the rights of religious minorities.
The protest in front of the UN Headquarters in Geneva was a significant event, as it drew attention to the human rights abuses taking place in India. The Indian government has been facing criticism from human rights organizations for its poor record on human rights, and this protest added to the pressure on the government to take action to protect the rights of all its citizens.
Reports suggest that there has been an increase in incidents of Christian persecution and religious extremism in India in recent years. There has been an increase in attacks on Christians and their places of worship in India. According to the Evangelical Fellowship of India (EFI), there were 366 incidents of violence against Christians in 2019, including 40 incidents of violence against churches. Christians in India are often accused of forcibly converting Hindus to Christianity. However, Christian leaders deny the allegations and claim that they are baseless.
Moreover, human rights organizations and activists have accused the Indian government of being involved in state-sponsored terror attacks on minorities, including Christians. The government has denied the allegations. Some Indian states have enacted anti-conversion laws, which make it illegal to convert someone to a different religion through force, fraud or inducement. Critics say the laws are often used to target Christians and other religious minorities. Religious minorities in India, including Christians, face discrimination in various aspects of life, including education and employment. Some reports suggest that Christians are often denied access to government benefits and services.
Overall, the issue of Christian persecution and religious extremism in India is a complex and sensitive one, with various factors contributing to the problem. It is important for the Indian government and society to address the issue and work towards creating a more tolerant and inclusive societyTop of Form
Bottom of Form
Indian claims to have a rich culture and history, but its obsession with Pakistan has brought criticism in international diplomatic circles. It is time for the Indian government to take action to protect the rights of all its citizens, regardless of their caste, religion, or gender. The protest in front of the UN Headquarters in Geneva was a reminder that the world is watching, and the Indian government must take action to address the human rights abuses taking place in the country.
EU’s Energy and Politic Approach to Indonesia: Between Hate and Love
Authors: Akhmad Hanan and Mayora Bunga Swastika
Since Russia invaded Ukraine in February 2022, Europe has been forced to seek alternative energy sources other than Russian gas. Previously, Russia supplied around 40% of Europe’s gas needs through pipelines owned by Russia’s Gazprom. However, Russia decided to cut their gas supply to Europe as a counter action of US and its ally economic sanction. As a result, Europe has left no choice but to buy expensive LNG, optimize renewable energy sources, and tap other coal-producing countries.
Winter came, and it tormented Europeans even more. The energy scarcity due to the absence of Russian gas put many European countries into crisis. They had to pay higher for alternative energy sources as a domino effect of the Russia-Ukraine war. They also decided to utilize coal, contradicting their robust commitment towards energy transition goals and the Paris Agreement. Europe’s decision to turn back on coal has also altered the global energy transition’s geopolitical landscape. Europe is seen as a region supporting accelerated energy transitions and encouraging countries outside the region to follow suit. However, currently, Europe is taking steps contrary to efforts to accelerate the energy transition.
At the same time, Indonesia got their windfall profit through the European situation due to the rising coal price in the market. Europe has been one of Indonesia coal exporters, and following the disruption in Europe’s energy supply, Indonesia attempted to capitalize on the situation by increasing export quotas to Europe. This strategy was taken since Indonesia is one of the world’s largest coal producing countries.
Indonesia’s Ministry of Trade reports coal exports to Europe reached 6.6 million tons in December 2022. Previously, Indonesia only exported less than 1 million tons per year to the same region at the same time. The main reason was some European countries such as Spain, Italy, Switzerland, Greece, Poland, the Netherlands, and Germany increased their demand for Indonesian coal significantly.
Additionally, Indonesia became the top global coal exporter in 2022, with a total of 469 million tons, 9% higher than the previous year. Indonesia used to export coal to developing countries, mainly in Asia. As a result, Indonesia’s state revenue exceeded the targets by almost three times higher than expected. The Indonesia’s ministry of finance calculated the realization of state revenue reached 7.8 million USD, 2.8 million USD higher, and it was highly contributed from the coal trading.
Relations between Indonesia and Europe regarding energy commodities are indeed often tug-of-war. Hitherto, the European Union’s relationship with Indonesia was strained due to Indonesia’s decision on palm oil and nickel commodities. Indonesia’s decision to utilize palm as a biofuel source was feared to increase land use change in tropical forests and reduce its capacity to be a natural based solution in climate change mitigation.
Indonesia’s decision to ban nickel export was also being challenged by the European Union at the WTO in November 2019. The EU claimed this decision was unfairly harming its stainless steel industry. However, Indonesia insisted this decision was made for national development. From Indonesia’s point of view, Indonesia’s decision is one of the efforts to protect its national interests to fulfill domestic supply. Indonesia’s downstream plans will be threatened if Indonesia lifts the nickel export ban as desired by the EU. The Indonesian government has a target to build a nickel smelter in Indonesia. However, Indonesia lost the EU lawsuit regarding the nickel export ban.
Indonesia-Europe relations and Indonesia’s defeat in the nickel export ban lawsuit show that the issue of international relations is still closely interdependent. A country cannot only pay attention to its domestic interests but also pay attention to common interests. In this case, Indonesia and EU benefit from each other when conducting economic cooperation, especially export-import. This can be seen from the benefits when coal exports to the EU increase. Of course, the benefits of this cooperation will not be obtained if the two countries do not cooperate.
Apart from Indonesia’s interest in securing domestic supply, Indonesia should be able to take opportunities to cooperate with other countries, including the EU, in the energy sector. Cooperation between countries that cannot be avoided in the era of globalization should be the foundation for Indonesia in making and carrying out foreign policy. Indonesia must find a win-win solution in its relations with other countries because doing protection in this era is not a solution.
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