Blog Header: Sustainable Futures. Debates to shape a collaborative multipolar world
  • “Zeitenwende”: The heat is on!

    “Zeitenwende”: The heat is on!

    Photo: Bright Sun on a landscape Photo by jplenio on Pixabay

    Europe is facing some heat. Literally – with another heat wave grasping the continent – and figuratively with threats to the global order through Russia’s invasion of Ukraine. Profound shifts are happening – with political answers too quick for some, and painfully slow when looking at evidence on the ultimate challenge: human-made climate change and its effects. We have seen indicators for disruptive change in the global order before: terrorism (after 2001), a financial crisis (2008), a global pandemic (since 2020), and, after a long build-up, the drastic effects of a climate crisis coming into focus with numerous extreme weather events. This blog is about the future of globalisation, in times of uncertainties and while we find ourselves with multiple challenges in a volatile, if not “reeling global order”. Let’s get to the fundamental then.

    Political reactions to crises created a year of multilateralism in 2015, with the Paris Agreement and the creation of the Agenda 2030. Even through years of backlash, with destructive populist agendas like Brexit, the presidencies of Donald Trump, of Jair Bolsonaro, the global community continued working around political bottlenecks, be that by pledging individual “nationally determined contributions” (too little, according to scientific evidence), be that by establishing informal club-like coordination mechanism like the G20. These formats aimed at short-circuiting blockages in established multilateral global institutions. And yet, they inadvertently also undermined multilateralism, creating excuses for those who did not believe in it in the first place.

    We cannot ignore the (literal and figurative) heat, we need to face it! We do not inevitably relive the at the turn of the last century, when “progress” was disruptive, did away with old certainties and made societies dizzy, as Philipp Blom described it. It’s the 2020s, not the 1900s. Russia’s attack on Ukraine drastically added political momentum for change, destroyed old certainties (or delusions?) about a rules-based global order, as seen in Europe – and brought afore differences in perspective across the globe, where the war is often seen as a European conflict.

    Messy realpolitik – globally

    Global politics is more than the pursuit of self-interests; we are interdependent, living on the same small planet with limited resources. Thus, a rules-based order working towards sustainability is ever more important. At the same time, cooperation is based on interaction – and broad-based personal contacts are disrupted due to a pandemic. Effects on cooperation between societies and economies are illustrated by the continued Zero-COVID-policy in China, for instance, which leads to backlogs before Shanghai harbour and disrupts production lines and value-chains. This creates even more incentives to further loosen transnational connections and disentangle relations. To this contradictory concoction came Russia’s invasion of a neighbouring country.

    Previously, we were certain that Interdependencies have a stabilising effect. We thought that we can tip the scales in favour of “peaceful coexistence” by working on interconnectedness, making a unilateral change of the status quo very costly for all sides. Some actors might be aiming to shift boundaries gradually, trying to bully neighbours over contested territories. Alas, the saying was “we are all in the same boat”. The Russian invasion in the face of global challenges reminded us that while we are on the same ocean, we might be steering different boats. The invasion of Ukraine illustrates that it’s not only the economy, stupid: Russia threw its economic self-interests out of the window and went for an invasion despite high human and economic costs! While this might have been due to miscalculation of reactions to the war by “the West”, we still need numerous other players to bring the message to Moscow that this is an unacceptable violation of the international order.

    We need to understand the various perspectives and motivations of countries: How much do they have to gain or lose from the current setting? How do they navigate global challenges? European politicians engage with counterparts such as Qatar for diversity of gas resources. Morally questionable, and yet necessary. It’s Realpolitik and it’s messy.

    Listening rather than preaching

    We need to be able to make our point – and still hear different, nuanced views. We are dealing with a more diversified world, in which engaging with China is a different matter from engaging with, say, Senegal, Ghana or Tunisia. While China is an economic partner and systemic rival, the latter are equally democratic states, yet with massive social, economic and ecological challenges, different historical experiences and locations, different power potential, which all makes for variations in priorities and sensitivities.

    Many countries are well aware of asymmetries in power, which means that pressure can be exercised more easily in one direction. In its strive to diversify partners, many countries beyond Europe also find themselves in quagmires when trying to diversify relations. Countries and their political actors might not want to alienate any partner. And yet, their perspectives on partners might still be different from the Europeans’. Is China a flawless partner? – No. Would you still rather take a credit from Beijing than not have the infrastructure at all? – Sure.

    Cooperation isn’t about whether partners “love us more”; it is about where we have common interests. Acknowledging that countries define their interests, that these are not necessarily identical to European choices and yet seeking communalities, is a first step in revamping relations. This does not mean that we agree to all arguments; some we will regard as profoundly wrong. But we need to understand the other, which requires listening rather than preaching.

    A principled – and self-critical – Europe needed

    Europe cannot claim to always be the morally superior part in cooperation. Historically, the effects of climate change are due to “the North’s” industrialisation, its exploitation of resources and peoples. This is the rich countries’ responsibilities, notwithstanding that this increasingly includes those who got rich recently by replicating the – unsustainable, fossil-fuel based – European/North American pathway. In fact, Europe over-consumes, under-recycles and uses way more resources than planet Earth has. At global scale, our lifestyle is the problem. In other words: we cannot simply teach, but need to learn with each other and be part of the solution.

    Speaking of responsibilities is not to shun us into guilty silence because of choices of our forefathers. Current generations need to speak (and live up to) values, condemn Russia’s atrocities, and seek to convince others of our perspective. However, we need to overcome complacency, transform and avoid moral hubris!

    Human cooperation is based on trust, and trust is in short supply. Where violence takes over – see Russia’s war, for instance – cooperation becomes impossible. Between Europe and Africa, historical experiences were traumatic on the African side, and have, to a large extent, been fast forgotten or even continue to be glorified by Europeans. Inequalities persist, racism is alive, and injustices within countries also continue to hurt societies. True, many countries have been independent for decades now, and some of their ruling elites have made wrong choices. Yet, the structural stacking of cards by (former) colonial powers persists. In this context, the return of stolen cultural artefacts might be symbolic, but it is one element in allowing for some healing. On the European side, it allows for – and ideally triggers – critically revisiting history. If we ignore historical responsibilities, cooperation has no future. Europe needs to continue engaging in self-critical debates, if it aspires to be(come) credible on its principles.

    More and broader-based cooperation!

    The Russian war on Ukraine questions fundamentals of the global order – ultimately: peaceful coexistence and sovereignty. To be clear: Military action is unacceptable, requires a firm answer to the aggressor, and we should certainly engage with third countries to clarify and promote our approach. The new setting should, however, not make us slip into a “with-or-against-us”-mentality towards those who do not fully share our perspectives. We might need to take a step back and discuss the fundamentals again, as Alexander Stubb suggested. And thereby discuss the future of global governance, and cooperation.

    While the war seems to have revived “the West” as an entity for closer coordination, the discussion clearly has to be broader and more inclusive. We need to engage for the sake of our common future! This will certainly not exclude rivalry between different political systems and core values if practiced as a competition of ideas. Aggressive denial by some does not wipe out scientific evidence, and it cannot take efforts hostage to strive for more sustainability, if we are serious in our interest to survive as a species. Global challenges persist and we need to continue cooperation for the benefit, if not simply: the survival, of all – despite different world views.

  • The Twelfth Ministerial Conference of the WTO: More than expected but still short of a success story

    The Twelfth Ministerial Conference of the WTO: More than expected but still short of a success story

    Photo: ©WTO/Jay Louvion
    ©WTO/Jay Louvion via Flickr

    The WTO’s Twelfth Ministerial Conference (MC12) was finally held in mid-June 2022, after being postponed twice due to COVID-19 pandemic. Ministerial Conferences are the WTO’s highest decision-making body bringing together high-level representatives of all members to take decisions on pertinent trade issues. MC12 was important because the members have been struggling to respond to the WTO institutional crisis and its inability to adress critical cross-cutting issues ranging from sustainability, environment, health, digital technologies, food security, energy policy to national security matters.

    The outcomes of MC12 were definitely more remarkable than those reached at the last ministerials in Bali 2013, Nairobi 2015 and Buenos Aires 2017. In the closing session Dr. Ngozi Okonjo-Iweala, Director General of the WTO, declared that members “secured an unprecedented package of deliverables”. The package may, however, neither be comprehensive nor ambitious enough, but nevertheless confirms that the WTO is still a relevant body to respond to global trade challenges, and more importantly helped the organisation avoid an “existential crisis”.

    MC12 with concrete results breaks WTO’s long silence

    Ministerial Conferences are not only technical talks, but are also politically important events navigating diverse positions and approaches of members on sensitive matters.  Therefore, it is not easy to predict beforehand if they ever lead to successful outcomes. They can bring a breakthrough or end up in political stalemate. However, the WTO (and its members), this time, did not have the luxury to produce another deadlock. The agenda was a mixture of a long-standing debate about the future of the WTO and immediate crises related to the pandemic, climate change, rising energy and food prices and disruptions in global supply chains. Against this background, nine Ministerial decisions and declarations were adopted as parts of MC12.

    The most significant outcome of MC12 was the Agreement on fisheries subsidies which had been negotiated for two decades. The objective of the Agreement is to prohibit and control harmful subsidies causing overfishing, and eliminate those that contribute to illegal, unreported and unregulated fishing. This was an achievement for two reasons: it was the first new multilateral trade agreement being adopted since the Trade Facilitation Agreement almost a decade ago. Also, it is the first multilateral trade agreement addressing the United Nations Sustainable Development Goals, in particular goal 14 on life below water.

    Apart from fisheries, food security is another important SDG aming at ending hunger by 2030. MC12 addressed the challenge of food shortages resulting from the war in Ukraine. Rising food prices led many countries to apply export restrictions and trade bans. However, many vulnerable members are dramatically affected by reduced supply and high prices. Food security issues became a global concern as agricultural supply chain disruptions started to emerge. At MC12, WTO members affirmed the need to avoid export restricytions on food and declared export restrictions should not include World Food Program’s food purchases.

    Furthermore, members have agreed to “maintain their practice of not imposing customs duties on electronic transmissions”. The moratorium is important for consumers to have easier and affordable access to digital platforms, and for millions of small businesses to market their products and services globally. The agreement helps digitalisation, a twin sister of sustainability.

    The Covid-19 pandemic resulted in rising trade restrictions in medical products and equipment and difficulties in access to vaccines especially by developing countries and least-developed countries (LDCs) due to patent constraints. An earlier decision by G20 trade ministers asked such measures to be targeted, proportionate, transparent, temporary, and not create unnecessary disruptions in supply chains. For achieving global justice in the provision of vaccines, MC12 delivered a waiver of parts of the TRIPS agreement to facilitate the manufacturing and exportation of Covid-19 vaccines. It also provides a response to Covid-19 and future pandemics by emphasising the role of transparency and notifications (i.e. trade monitoring), another important function of the WTO.

    Despite wide differences in their positions on critical issues, members drove the process soberly converging on substantial matters to keep the WTO alive. Equally important in the MC12 outcome document was that members committed to undertake necessary reform of the WTO. The General Council is expected to launch a process to conduct its work on the matter, and review the progress until the next Ministerial Conference.

    Are piecemeal steps sufficient to save WTO’s future?

    Outcomes of the MC12 demonstrated that members were in need of adopting new rules and texts; and, more generally, to negotiate global problems at the multilateral level. They also acknowledged their concerns with respect to the other functions, such as trade monitoring and dispute settlement. But, the challenges facing rules-based multilateral system are deeper and more complex than what has been addressed during the MC12.

    Many earlier calls by major players for reforming the WTO revealed gaps in their positions. Many members do not want their existing “rights” for special and differential treatment to be challenged. Many are reluctant to eliminate trade-distorting subsidies and measures. A clash between market-oriented and state-driven capitalism continues. Accomodating such diverse interests in a “balanced” way is a formidable task. More importantly, trade policy is becoming increasingly linked to cross-cutting and non-trade issues, and pushing many topics to be brought to the WTO agenda. However, the more incremental the agenda, the more exhausting it becomes to “reform” the organisation to achieve its objectives. The General Council in its work programme has to respond to many daunting and mounted issues:

    First, the complex nature of multilateral trade negotiations proves they are time-consuming and requires high levels of patience, sobriety and creativity and more importantly unanimity among the members with differing interests and developmental concerns. The failure to reach concensus drives many members to venue-shifting into regional or plurilaterals negotiations. Plurilateral talks are preferred in many topics like e-commerce, domestic regulation of services and investment facilitation for development and other so-called Joint Statement Initiatives (JSIs) are in the pipeline. Successful completion and ratification of those JSIs can revitalise the WTO’s negotiation function. However, such initiatives need more structured and institutionalised approaches to mitigate concerns of many developing countries with respect to fragmentation of the multilateral system. The WTO reform process to be undertaken by the General Council needs to search for possible ways of ensuring transparent, inclusive and development-friendly plurilaterals with capacity-building mechanisms for developing countries and LDCs.

    Second, special and differential treatment will continue to be a controversial issues. A tailor-made differentiation rather than accross-the-board exemptions without indefinite transition periods need to be contemplated to maket hem “precise, effective and operational” as stipulated in the MC12 outcome document (para. 2).

    The third issue that deserves a major discussion is subsidies. The General Council should launch a work programme to gather information about the scale of subsidies, their trade-distortive effects, and to identify main aspects to be addressed.

    On the way to MC13 due to take place by the end of 2023, members need to work on their differences on agriculture. Efforts to modernise agricultural rules, including issues of market and trade-distorting subsidies and tariff liberalisation must reflect today’s global concerns like fragilities in food supply chains, export restrictions, public stokholding, vulnerabilities arising from poverty and must be re-built confidence.

    Last but not least, reforming the WTO will be incomplete without reforming the dispute settlement system. Interim solutions help the system to function and retain the rights of some members, but the multilateral system should go beyond it to overcome the impasse over the Appellate Body.

    In assessing the MC12 let us go one step further than Dr. Ngozi and claim that members secured WTO’s reputation and avoided a collapse in their trust to the system for now. However, WTO’s future depends on a root-and-branch reform. Let us hope the process initiated in MC12 paves the way for it.

  • China in the Pacific: economic interests and security cooperation in a contested region

    Photo: Boats at Sundawn in the water

    Rivalry between an increasingly assertive China and the United States is mounting in Asia and the Pacific. On several occasions, China has seen its interests threatened by the United States in the region. The US president’s recent visit to Japan and the so-called Quad summit between the US, Australia, Japan and India, which took place during his stay have driven the attention and interests of Beijing’s officials to make a trip to the Pacific Islands in order to negotiate and sign a security agreement with countries of the region. China’s officials see Joe Biden’s recent trip to Asia, as an effort to counter Beijing’s economic, political and diplomatic influence as well as the recognition of China over Taiwan in the region. Wang Yi’s visit to the Pacific Islands in late May for a ten-day tour in eight countries was meant to contribute to securing China’s political, economic and diplomatic stance in the region. (mehr …)

  • 30 years with common but differentiated responsibility, why do we need it ever more today?

    Photo: Colorful windows in Bords de la Nive, Bayonne, FranceBords de la Nive, Bayonne, France

    The principle of “common but differentiated responsibility” (CBDR), formalized at the 1992 United Nations Conference on Environment and Development in Rio de Janeiro, is ultimately pertaining to the matter of climate justice. Its basic meaning is first and foremost a “shared” moral responsibility between different groups of countries to address global climate change, nevertheless the proportions of such responsibility are differentiated. CBDR’s underlying concepts of fairness and equity has also been manifested in other global governance architectures than just the climate. The World Trade Organization, for example, knows the principle of “special and differential treatment” for developing and least-developed countries. The CBDR principle has gone through “ups and downs” in the past 30 years and the world has further evolved. While it is entering the fourth decade, it still remains relevant today.

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  • Elusive vaccine solidarity – A long shadow over globalisation

    Photo: Lady Justice with scales, Image to picture global vaccination justice

    If there ever was a litmus test on whether the world would cooperate in solidarity in the midst of the greatest global challenges, the COVID-19 pandemic provided such a test given its transferability across borders and the need for a rapid global response. In this blog post I argue that the onset and response to the COVID-19 pandemic has been a watershed event that has significantly – or perhaps irreversibly – ushered the world where cooperation will be more challenging than ever before.

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