Geopolitical Monitor https://www.geopoliticalmonitor.com Military, Politics, Economy, Energy Security, Environment, Commodities Geopolitical Analysis & Forecasting Thu, 25 Apr 2024 12:09:34 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.14 Chad Looks to Expel US Forces ahead of Polls https://www.geopoliticalmonitor.com/chad-looks-to-expel-us-forces-ahead-of-polls/ https://www.geopoliticalmonitor.com/chad-looks-to-expel-us-forces-ahead-of-polls/#disqus_thread Thu, 25 Apr 2024 12:09:34 +0000 https://www.geopoliticalmonitor.com/?p=44203 In keeping with a recent theme across the Sahel, the Chadian authorities have threatened to cancel its Status of Forces Agreement with the United States.

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In April 2024, Chadian authorities penned a letter to the US defense attaché in Chad threatening to cancel the Status of Forces Agreement between the two countries. Though the letter stopped short of demanding that US soldiers leave immediately, the letter requested that Washington withdraw all of its forces from the French base in N’Djamena.

The statement mirrors similar demands from Mali, Niger, and Burkina Faso, countries which are currently under military rule. All three have since followed through on their intentions to expel foreign forces. Chad is effectively the last country in the Sahel region that plays host to foreign soldiers. Niger, which was also home to US personnel, requested that the US withdraw its troops in March.

Chad is divided by the arid Sahara Desert to its far north, the tropical savannah to its south, and the Sahel transition zone between them. There are few notable geographic features besides Lake Chad, where the country gets its name. The capital N’Djamena lies near the Cameroonian border on the banks of the Chari River in the west. In the east lies the border region with Darfur in Sudan, to the north Libya, to the south the Central African Republic, and Niger and Nigeria to its west.

Chad has the third youngest population of any country in the world, at an average age of 16.6 years. It is a majority Sunni Muslim country, with a substantial Christian minority inhabiting the south. Most Chadians are secular on political issues, however.

After the death of former Chadian president Idriss Déby in 2021, the military initiated a coup that installed Déby’s son Mahamat. Since then, Mahamat Déby has moved to consolidate power. In 2022, he unilaterally extended the transition period, took up the reins of transitional president, and announced his candidacy for the presidential elections scheduled for May 6. Opposition candidates have had their candidacies rejected. The only candidate left with any hope of challenging Déby in the polls is the current prime minister, Succes Masra. However, Masra’s supportive statements toward the Mahamat Déby administration have tarnished his credibility as an opposition figure. The ultimate result of the upcoming elections will almost surely be a continuation of the present security policy, likely under a Mahamat Deby presidency.

Though only fielding around 30,000 soldiers, the Chadian military has received extensive support from foreign instructors and direct combat assistance. The country has been in a state of war for the better part of 30 years, with a civil war erupting in 2005. The military is battle-tested, not just from delivering the government a victory on the battlefield, but also from years of directly supporting regional militaries in their fight against Islamic extremists, with the 2012 Mali insurgency being one notable example.

Of growing concern to Washington is the potential alignment of Central and West African states like Chad with Russia, specifically through the Wagner Group, a Russian private military company. In an interview with France24, Déby insisted that his country was not a “slave looking to change his master,” suggesting a desire to balance the stakeholders involved. This accords with Chad’s longtime strategy of entertaining foreign backers to maintain a hold over an ethnically and politically fragmented society.

The pivot may be a tactical move by Mahamat Déby meant to boost his chances in the election. Goodwill towards France and the United States regarding their presence in Chad has run thin lately. By appearing to take a stance against historic colonial powers, Déby is galvanizing support from that section of the Chadian electorate.

Electoral politicking, however, may not be necessary. No Chadian election in history has ever been free and fair. Instead, commentators have suggested that it is a bargaining tactic that N’Djamena is using to increase US support for the Chadian government.

Chad’s relationship with France is deeper than France’s relationships with Mali, Burkina Faso, and Niger. As a result, Chad can’t shake the ties off so easily. For now, the French are not likely to immediately follow the Americans should the latter be fully expelled from the country.

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The Gaza War and US-Caribbean Relations https://www.geopoliticalmonitor.com/the-gaza-war-us-caribbean-relations/ https://www.geopoliticalmonitor.com/the-gaza-war-us-caribbean-relations/#disqus_thread Wed, 24 Apr 2024 12:56:31 +0000 https://www.geopoliticalmonitor.com/?p=44195 Washington’s Israel policy is weighing on CARICOM views of the United States, but moral and ethical questions are not fully eclipsing longer-term imperatives in foreign policymaking.

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Just over six months into the Gaza war, Washington’s foreign policy stance on the conflict has placed it at odds with the 14 mostly Anglophone sovereign small states of the Caribbean Community (CARICOM).

This is apparent in a rising chorus of contrarian views in CARICOM member states’ Gaza war-related diplomatic narratives in the United Nations (UN), as compared to the United States’ associated positioning, setting the tone for the daylight between these states and Washington.

Initially, CARICOM adopted a position that was generally more restrained in tone. This was the context in which the bloc began to spend political capital on lending its voice to an already incendiary situation, striving for balance.

This behaviour on the international stage is consistent with the view of international relations scholars that, in international politics, smaller states inter alia “might seek [status-related] recognition by great powers, as useful allies, impartial arbiters, or contributors to systems maintenance” (emphasis added). Yet, in full view of Gazans’ disturbing reality and a region roiled by a metastasizing Gaza war, this type of diplomacy has its limits.

Several months later, in a Statement on the Ongoing Situation in Gaza, CARICOM leaders underscored that they are “deeply distressed” by the ‘deteriorating’ state of affairs in Gaza.” (In line with K. J. Holsti, who calls attention to the signal importance of such foreign policy actors in foreign policy decision-making, it is apt to unpack their pronouncements on the matter at hand.) While they reaffirmed their condemnation of Hamas’ October 7, 2023 assault on Israel and resultant hostage-taking, they pilloried subsequent “Israeli actions that violate international humanitarian law and the human rights of the Palestinian people.”

It is instructive that while US President Joe Biden eventually described Israel’s conduct of its war against Hamas in Gaza as “over the top,” this did not change Washington’s policy course in respect of support for Israel. Along the way, the U.S. repeatedly scuttled UN-related attempts to call for a ceasefire, tying the UN’s hands. This amid Israel’s apparent refutation of a humanitarian crisis in Gaza, in a context where UN-Israel relations have seemingly “reached an all-time low.”

In stark contrast, CARICOM leaders doubled down on unequivocally calling for “an immediate and unconditional ceasefire in Gaza and safe and unimpeded access for the delivery of adequate and sustained humanitarian assistance.” That said, Jamaica’s Gaza war-related voting record in the UN General Assembly and public pronouncements have caused some consternation among commentators; and Prime Minister Andrew Holness had to set the record straight.

CARICOM leaders also contended that, for the regional grouping, Israel’s excesses in the occupied West Bank contribute to international instability. They tied their criticism of Israel’s wanton disregard of calls from within UN bodies for a ceasefire to the provisional measures-related order in the South Africa v. Israel case at the International Court of Justice.

And they did not pull punches when advocating for a two-state solution in keeping with UNSC Resolution 242.

The bloc continues to raise the alarm over this conflict in the Middle East, citing concerns regarding the wider implications for “regional stability and international peace.”

The normative character of CARICOM’s foreign policy approach is apparent in its Gaza war-related diplomatic trajectory, which is also illustrative of a cumulative tension vis-à-vis the United States’ imprint on the said conflict. This is because the United States’ foreign policy intentions qua state behaviour, in the Middle East and elsewhere, hinge on power.

For its part, Guyana has signalled its impatience with Washington’s Israel policy which, for some scholars, centres on a “special relationship”— one that purportedly plays an outsized role in “the totality of American foreign policy in the Middle East.”

Notably, Guyana abstained from a recent, widely criticized US-led draft resolution in the 15-member UN Security Council (UNSC). Guyana was elected in 2023 to join this UN body, for a two-year term (2024-2025), as a non-permanent member. That measure set a low bar. It just made the case for the imperative of an ‘immediate and sustained ceasefire’ in Gaza, compelling Guyana to underscore that the resolution stopped short of aligning with the international community’s call for an immediate humanitarian ceasefire in Gaza.

Russia and China, two of the UNSC’s five permanent members, voted against the draft resolution. It failed to pass, given the strictures of the UNSC voting system.

Guyana was among the 14 UNSC members which, shortly thereafter, backed another resolution. On this occasion, there was a clarion call qua demand for ‘an immediate ceasefire’ during Ramadan in 2024. The Security Council passed the resolution, with the U.S. conspicuously exercising an abstention regarding the vote-related proceedings.

This only served to further highlight Washington’s growing international isolation regarding foreign policymaking in the face of the decades-old Israeli-Palestinian conflict which, for months now having passed into uncharted waters, has been centre stage in international politics—eclipsing even the Ukraine war.

That the United States is haemorrhaging prestige in the Caribbean has not ceased either. This has ruffled feathers there in this geopolitical moment, putting the most significant strain on US-CARICOM relations since their post-Trump era revamp. No sooner had these relations benefitted from a reset under the Biden administration than have the last few months marked a stress point in those ties, which must be gauged anyway by their historically “mixed success.”

One source of things changing is that as postcolonial states, which are products of the struggle for political independence, CARICOM member states increasingly view the Gaza war through a normative qua ethical prism. In turn, it is a mirror onto their own quest for autonomy and unwavering belief in self-determination. (The fact is that these states’ postcolonial identities anchor their worldview, which is shaped inter alia by legacies of colonialism and the plight of those peoples who are still oppressed.)

Today, countries like Guyana turn to UN bodies like the UNSC to shore up diplomatic positioning in that regard.

In this thinking, all such peoples have a right to self-determination among the community of nations.

Washington’s decidedly skewed Gaza war-related foreign policymaking challenges such postcolonial conceptions anew, having a bearing on these states’ perceptions of their own status in the international system.

This a watershed moment, then, in the sense that coming into focus for CARICOM—indeed, shaping its view of Washington—is how the U.S. will earnestly respond to the international community’s outcry about the devastation wrought by six-plus months of war in Gaza and the ever worsening plight of its peoples.

Reports are Washington has put Israel’s Prime Minister Benjamin Netanyahu on notice that unless his government changes its war strategy, which has stoked the humanitarian crisis in that enclave, it might have to reassess facets of its Israel policy.

Just recently, though, the U.S. House of Representatives passed a legislative package that provides tens of billions of dollars in security assistance—among others—to Israel. The Senate has since passed the bill. And Iran’s recent direct airborne attack on Israel only galvanized US support for the latter, with this great-power rallying to Israel’s defence.

The question is whether such support emboldens Netanyahu to toe the maximalist line of far-right elements in his government by continuing to wage Israel’s war on Gaza—which, according to some analysts, possibly constitutes a never-ending war with ulterior motives. That Netanyahu now openly scoffs at international pressure for a Palestinian state says it all. This against a backdrop where, even if Netanyahu’s days in government are numbered, “his approach to the war [qua ‘use of force’ per defence establishment thinking on Israel’s National Security Doctrine] has broader support.”

The prevailing cosmopolitan view, which stands in opposition to the Netanyahu government’s position on the matter, is for a two-state solution to come to pass—as the only way to end the Israeli-Palestinian conflict.

In a further sign of the (geopolitical) times, though, the UNSC failed to recommend full UN membership for the State of Palestine, owing to the United States’ casting a veto regarding the draft resolution in question.

Guyana was among the 12 UNSC members which voted in favour of the draft resolution, which reads:

“The Security Council, having examined the application of the State of Palestine for admission to the United Nations (S/2011/592), recommends to the General Assembly that the State of Palestine be admitted to membership in the United Nations.”

This draft resolution will go down in the annals of UN-anchored multilateral diplomacy as having produced an important moment for a show of support for Palestine, in what is perhaps Gaza’s darkest hour. It faces unprecedented, horrific destruction.

With the international spotlight on the diplomatic moment personified by the aforesaid UNSC vote, on April 19, 2024, Barbados announced its official recognition of Palestine as a State. Considering its timing, this move is likely intended (at least in part) as a rebuke of the United States’ reasoning behind its vote-related stand.

A few days later, the Government of Jamaica indicated that it took the decision to recognize the State of Palestine. In shedding light on this decision, Senator the Honourable Kamina Johnson Smith, Minister of Foreign Affairs and Foreign Trade, called attention to Jamaica’s support for a two-state solution. Minister Johnson Smith said that this is the “only viable option to resolve the longstanding conflict, guarantee the security of Israel and uphold the dignity and rights of Palestinians.” Furthermore, she underscored: “By recognizing the State of Palestine, Jamaica strengthens its advocacy towards a peaceful solution.”

Minister Johnson Smith noted that her country’s decision to recognize the State of Palestine is in keeping with its “strong commitment to the principles of the Charter of the United Nations, which seek to engender mutual respect and peaceful co-existence among states, as well as the recognition of the right of peoples to self- determination.” She also linked the decision to the Gaza war and the resultant humanitarian crisis, reaffirming inter alia Jamaica’s backing of an immediate ceasefire.

Barbados and Jamaica have cast their lot with the 10 other CARICOM member states which have recognized the State of Palestine. They are St. Kitts and Nevis, Saint Lucia, Haiti, Grenada, Antigua and Barbuda, Dominica, Belize, St. Vincent and the Grenadines, Suriname, and Guyana.

Behind the scenes, CARICOM leaders and diplomats have likely (and in no uncertain terms) voiced their misgivings to their American counterparts as regards Washington’s approach to treating escalating tensions in the Middle East. The matter of the groundswell of support in CARICOM for an independent Palestinian State and for it to be afforded all attendant rights have surely come up, too, especially at a time when more countries are prioritizing recognition of that state.

Insofar as it is “embroiled in [the] Gaza conflict,” Washington is regularly in touch with Caribbean capitals. In an attempt to drum up support for what some analysts view as its one-dimensional determinism in foreign policymaking, Washington makes the rounds of these capitals.

This as the influence of the People’s Republic of China—which, along with Russia, is the United States’ strategic competitorgrows in the Caribbean.

To varying degrees—with a healthy respect for long-standing, country-level ties and the record of accomplishment—respective emissaries carry on with the daily business of diplomacy. Having regard to the deep “security and economic ties” between the U.S. and CARICOM, it is also the case that the latter grouping would not lose sight of the importance of the long game in its member states’ respective foreign policy approaches to America.

Still, attuned to their postcolonial identities, CARICOM member states are guarded in this moment. After all, their foreign policy inclination is to embrace “human and global interest.”

Such conviction is side stepped by others—if not rhetorically, then in praxis. For them, the competitive nature of the putative zero-sum international system is such that their own security is the overriding concern.

As CARICOM member states take stock of their contribution to the international community’s contemporary diplomatic manoeuvres on the question of Palestine, they are of the mind that they stand on the right side of history.

Yet for all their attention to the normative grounds for defusing the powder keg that is today’s Middle East, leaning in on the case for approaching the national interest in the same vein, CARICOM members run up against the broader context of their foreign policymaking. Simply put, à la the system-level, international relations are “geopolitically constructed.” This framing is the proximate cause of the Gaza war; but, it is not the only factor that one ought to assess. As already intimated, domestic and “unit-level factors” in foreign policymaking also play a consequential role in the grand scheme of things.

In this schema, it is highly debatable whether the top dogs seriously weigh moral ends.

In standing on principle, strengthening its status-related hand in international politics, CARICOM has notched another victory in the thrust-and-parry of the anarchic global system.

 

The views expressed in this article belong to the author(s) alone and do not necessarily reflect those of Geopoliticalmonitor.com.

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US Shale Resilience Puts Pressure on OPEC+ https://www.geopoliticalmonitor.com/us-shale-resilience-puts-pressure-on-opec/ https://www.geopoliticalmonitor.com/us-shale-resilience-puts-pressure-on-opec/#disqus_thread Wed, 24 Apr 2024 12:11:33 +0000 https://www.geopoliticalmonitor.com/?p=44191 Not only has US shale survived early attempts by OPEC+ to squeeze out its operations, but it’s now coming for longstanding OPEC+ markets.

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The recent surge in US crude oil production and exports represents a significant shift in global oil markets, challenging the traditional dominance of OPEC+ countries. This report explores the economic and geopolitical ramifications of these changes, focusing on the strategies the United States and OPEC+ employ in response to evolving market conditions in the energy sector.

Last year, US crude oil production reached a record high of 4.1 million barrels per day (bpd), underscoring the country’s increasing role as a significant oil exporter. This uptick in production and exports has enabled the United States to penetrate markets in Asia and Europe, traditionally held by OPEC+ members. The exploitation of shale reserves in areas like the Permian Basin, based in the state of Texas, have been central to American export growth. Shale oil is prized for its light density and low sulfur content, which is desirable for refineries as a cheaper alternative to heavier and sour crudes produced by Canada, Mexico, and the Gulf region.

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House Select Committee on CCP and the Future of US China Policy https://www.geopoliticalmonitor.com/house-select-committee-on-ccp-and-the-future-of-us-china-policy/ https://www.geopoliticalmonitor.com/house-select-committee-on-ccp-and-the-future-of-us-china-policy/#disqus_thread Tue, 23 Apr 2024 18:13:08 +0000 https://www.geopoliticalmonitor.com/?p=44188 The upcoming 2024 elections will be critical in determining the ongoing effectiveness of a House committee focused on competition with the CCP, along with the direction of Washington’s China policy in general.

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Congressman John Moolenaar (R-Michigan) was appointed Chairman of the House Select Committee on the Strategic Competition Between the United States and Chinese Communist Party (CCP). Earlier this year, in defiance of Beijing’s warnings, he joined a bipartisan congressional visit to Taiwan. Prior to embarking on his official trip to Taipei, he conveyed to the press, “Taiwan is a tremendous ally to the United States, and it is a strong economic partner… Sadly, the people of Taiwan face daily harassment and intimidation from the Chinese Communist Party, and CCP leader Xi Jinping has made no secret of his desire to oppress the people of Taiwan.” This statement not only reflects his sentiments toward the PRC and its leader but also suggests his readiness to embrace a hawkish stance on China, advocating for a more assertive foreign policy in US-PRC relations.

According to its website, the Select Committee on the Chinese Communist Party is a bipartisan congressional committee that aims to build consensus “on the threat posed by the Chinese Communist Party and develop a plan of action to defend the American people, our economy, and our values.” In pursuit of this goal, the committee adopts a holistic approach, addressing the China challenge across multiple domains including military, economics, and technology.

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The Geopolitics of the Central Caucasus https://www.geopoliticalmonitor.com/the-geopolitics-of-the-central-caucasus/ https://www.geopoliticalmonitor.com/the-geopolitics-of-the-central-caucasus/#disqus_thread Mon, 22 Apr 2024 12:28:21 +0000 https://www.geopoliticalmonitor.com/?p=44182 The Central Caucasus is back on the geopolitical map, evident in the Trans-Caspian International Transport Route (TITR) and with it, China’s growing political influence.

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For years, to avoid the confusion between Georgia the country, and Georgia the U.S. state, international media referred to the former as a post-Soviet entity. It seemed that only in the wake of the 2008 Georgian-Russian war (when Americans were finally assured that it was not their state being attacked) did the country rise to global attention. Nowadays, it appears that Georgia, next to its immediate neighbors Armenia and Azerbaijan (together forming the Central Caucasus), draws attention due to its role in the so-called Middle Corridor (TITR). However, it eluded the attention of many that the area has long obtained three distinctive geopolitical roles owing to its location. These were: a bridge of economic interactions, a buffer between Europe, Russia, and the Middle East, and a border of different civilizations.

There were reasons why it evaded the notice of many, but first and foremost, we should mentally map the area. The Central Caucasus, comprised of Georgia, Armenia, and Azerbaijan, is a historically constructed, complex political concord, embodying a geopolitical tapestry woven over centuries and forming a culturally, ethnically, linguistically, and religiously diverse area stretched between the Black Sea and the Caspian Sea.

In the geopolitical discourse, as explained by Saul Bernard Cohen, an eminent American geographer, the axiom stands firm: “Geopolitics is a product of its time.” Each historical period has produced a geopolitical model offering a lens through which to interpret the world map and the world order of that time. In imperialist geopolitical writings of the 19th to early 20th centuries when a state’s greatness lay in its maritime power and/or in domination of the Heartland (the territory ruled by the Russian Empire and later by the Soviet Union), the distance of the Central Caucasus from the Anglo-American space resulted in little to no mention of the region.

Whilst the strategic location of the Central Caucasus temporally escaped the attention of imperialist writers, historically, the region carried geopolitical importance for three major Eastern powers: The Persian Empire, the Ottoman Empire, and the Russian Empire. Already in the early 1800s, the region acted as a buffer zone between Orthodox Christianity and the Muslims of the Middle East. Russia’s expansion into the Caucasus in the sixteenth century additionally carried economic considerations, evident in projects like the Trans-Caspian railway, which facilitated access to Central Asia and control over Caspian oil supplies. Next to its geographical advantages, the Central Caucasus was a boon for natural resources. Besides Petroleum, the region is rich in copper ore. The minerals also attracted foreign investors and as of 1870, Rothschild and Shell was extracting oil, while Siemens mined copper.

After World War II, the political picture drastically changed and a new international system emerged, with multipolarity giving way to bipolarity. During the Cold War, geopolitics became associated with the two leading ideologies of that time: Communism and Western Democracy. Geopoliticians, thus, were mostly preoccupied with the rivalry between the two blocs of the West and the East. When the Soviet Union established its rule over the Central Caucasian states, the region once again became extraneous to the interests of international observers and witnessed its geopolitical role as a bridge for regional and international trade routes reduced to serving the southeastern border of Europe with Communist Russia and the Middle East.

By the 1980s, however, “winds of change” were blowing on the Eastern side of the Iron Curtain, and with Mikhail Gorbachov’s policies of glasnost and perestroika, the Cold War was nearing its logical end, giving way to a new world order. Simultaneously, geopolitical concepts were updated to understand the new world map and where geopolitical pivots had moved, which came to be known as the New World Order in an academic context. While some rejoiced in triumph of the Western ideology and others coined a neologism “Geo-economics” to explain the substantial penetration of economics into geopolitics, a drastically different approach was undertaken by Samuel P. Huntington to explain the geopolitical setting and patterns of this “new world.” He emphasized cultural differences as the primary basis for identity and conflict, predicting that nations would align along cultural lines rather than ideological or economic ones, leading to conflicts at local and global levels. Huntington identified several fault lines, including the Balkans, the Caucasus, and the Middle East, as areas where clashes between civilizations were likely.

Now, in addition to its geographically determined strategic function as a buffer and bridge on two axes – West-East and North-South, the region’s ethnoreligious mosaic was also put under the spotlight of geopolitical works and international actors. Geographically situated between Orthodox and Islamic civilizations, the region has fostered a diverse ethno-religious mosaic. Despite religious differences, examples of religious tolerance can be found in cities like Derbent, Dagestan, and Tbilisi, Georgia. Additional emphasis is given to the role of customs, which in the Caucasus is referred to as ‘adat.’ It is argued that customs (or adats) in the region are stronger than confessions, and even contend for superiority over the latter. The custom-based relationship between the peoples of religion facilitated their peaceful coexistence, tolerance, and mutual understanding. The historical background of peaceful coexistence and distinct patterns of Caucasian, custom-based relations between different religions and ethnicities, provided the understanding behind the harmonious relationship between the Caucasian people.

 

The Russian Effect

The demise of the Soviet Union, however, did not mean the end of the Cold War rationale. Russia – as the heir of the Soviet Union – after disappointing the hopes of anticipated democratization was still considered a power whose influence had to be contained. Zbigniew Brzezinski, like many of his contemporaries and those before him, assumed that Russia at some point in post-Cold War history, whether voluntarily or not, would choose the path of Western development, a hope that remains unrealized to this day. The reasons behind this can be traced back to the Russian understanding of the world system, which has been incautiously neglected by Western academia and which is vividly illustrated by the Russian geopolitical school: Eurasianism. All important contributors to the development of Russian Geopolitics (Nikolai Trubetzkoy, Peter Savitsky, Lev Gumilev, Aleksandr Dugin) emphasized Eurasia’s distinct cultural-geographic and socio-historical pattern and rejected Western universal ideas of the cultural and historic development of mankind. It was believed that it was Russia’s mission to unify Eurasia and maintain this unity, asserting that it was the destiny of the Eurasian people to be concerted.

It is important to understand that Eurasianinism and Moscow’s approaches toward the Caucasus correspond to each other. In this regard, the Central Caucasus is considered as Russia’s backyard. Georgia, Azerbaijan, and Armenia, the Black Sea, and the Caspian Sea constitute strategic dimensions for Russia. The latter is determined to dominate the region and uses the “ethnic card” to keep the countries of the Central Caucasus off balance. From the Russian standpoint, any foreign influence in its “near abroad” is seen through the prism of its national security. Such a menace should be thwarted by any means, as Moscow made clear more than once that it does not entertain any notion of conceding territories of its utmost geopolitical interests.

As the successor of the Soviet Union, Russia experienced the heaviest losses in terms of territory, resources, influence, economy, as well as international image. Its borders were pushed back from the west, south, and east. To add fuel to the fire, the divorce of the Central Caucasian states from Russian influence and the emergence of newly independent states in Georgia, Armenia, and Azerbaijan with nationalist-minded political elites reinforced the fears of a resurgence of the deep-rooted Russian-Turkish rivalry over influence in the region. A prominent Eurasianist Alexandr S. Panarin argued, that “the geopolitical concessions which post-Soviet Russia made to the West are the maximum Russia will ever concede. Any further attack by the West Belt in the form of further enlargement of NATO or by playing the Ukrainian, Georgian, Azeri, or Central Asian ‘cards’ would mean that the aforementioned concessions by Russia were like the concessions to Hitler at Munich.”

Dominating the Caucasus for Russia also translates into being closer to the Mediterranean and Balkans. Some of the imperialist-minded politicians, such as Vladimir Zhirinovsky, expressed the ambition of obtaining access to a warm water port on the Indian Ocean. Needless to say, conceding the vital Caspian Sea resources it could potentially lose with the opening of the market to the west – along with flows of Western investment following the breakup of the USSR – would substantially weaken Russia.

 

The Caucasian Chalk Circle

In the context of the so-called emerging New World Order, Russia was at first left on the periphery, while Turkey and Iran were the first countries affected by geopolitical turbulence. Entering the ‘Mittlespiel’ of this ‘Great Chess Game,’ the United States and the European Union quickly exploited the opportunity to increase their influence in the region of the Central Caucasus. Hence the latter soon became a space of competition between original geopolitical players and so-called ‘newcomers.

Iran is one of the classical players in the Central Caucasus, however, due to its internal turbulence and international pressures, it was forced to temporarily retreat from the contest. The latest trends show the revitalization of Iran’s interests in the Central Caucasus. In the regional context, Iran is an ally of Armenia and Russia.

Turkey, as Brzezinski suggests, must not be alienated from geopolitical calculations, because a rejected Turkey can not only become strongly Islamic but will be able to upset the region’s stability. Turkey’s role in this contest, along with its geopolitical inclinations, is to counter-balance Russia’s domination over the region. That is why Brzezinski argues that political developments in Turkey and its orientation will be crucial for the states of the Central Caucasus.

The EU presence in the region is perceptible as well. In the framework of its Eastern Neighborhood Partnership, the Union encouraged countries of the region toward reform and as an accolade granted Georgia candidacy status. Furthermore, the location and the mentioned potential to provide transit roads allow Central Caucasus to serve as an energy security guarantee to Europe. In line with this, Europe needs to assist the region in its peaceful development and assure its security as a strategic partner.

Contrary to Armenia and Georgia, Azerbaijan does not openly express willingness to join either military or economic blocs. The country is neither pro-Russian, nor pro-Western, but emphasizes the importance of regional cooperation. Consequently, the countries are at different steps in the process of Europeanization. Nevertheless, the EU’s need for a reliable partner in the Central Caucasus is currently at odds with Turkey’s estrangement from the Union and Russia being non-responsive to sanctions.

The United States has long viewed the region, and especially Georgia as a strategic buffer zone to assist its interests in the Middle East, as well as against the expansion of terrorism. In 2016, Donald Rumsfeld, former US Secretary of Defense, highlighted the strategic location of Georgia in his article in The Wall Street Journal, by stating that “[Georgia] provides a barrier to the flow of jihadists from other parts of the former Soviet Union to the Middle East. And it will doubtless figure large in the strategies of any NATO consortium for securing the Black Sea and ‘New Europe’ against Russian adventurism.”

An additional newcomer to the regional chess game is China with its growing geopolitical influence, making the region’s importance even greater through participation in the Chinese Silk Road project and, since 2017, in the Trans-Caspian International Transport Route project.

The cultural dimension, specifically the ethno-religious factor, in a time of growing resurgence of nationalism and fundamentalism, is a factor directly influencing geopolitical considerations. Historical differences have shaped difficult relations between Turkey-Armenia and Armenia-Azerbaijan, leading to friendship between Russia and Armenia. Russia’s betrayal and mistreatment of Georgia has alienated the country from its northern neighbor, with whom it shares a common religion. Despite diverse religions, Georgia maintains a friendly relationship with Turkey and Iran, with the latter enjoying a somewhat positive attitude among all the Caucasian republics.

Its location and its experience as a borderland of various religions and ethnicities permit the region to be crucial in what is claimed to be the primary menace and security challenges of the 21st century- terrorism, further enhancing the Central Caucasus’s role as a border of civilizations.

As observed, the developments of the post-Soviet era brought new actors such as the US, EU, and China into the contest of imposing influence over the region, as well as extracting benefits from it. Such unfolding of events, however, runs contrary to the aspirations of the major neighboring geopolitical powers, such as Russia, Turkey, and Iran; the concentration of political interests of the great powers in such a small region emphasizes its favored geopolitical position and economic advantages.

Borrowing from Bertolt Brecht’s theatrical play The Caucasian Chalk Circle, the configuration of international interests in the region spotlights power conflicts. Such concentration of global powers in its turn shapes the foreign orientations of the countries of the Central Caucasus. In the realm of geopolitical discourse, a region can be geopolitically significant if it serves the geopolitical and economic benefits of major geopolitical players or has the potential to challenge such political-economic aspirations of great powers. The Central Caucasus, as a result of its strategic location and diversity, possesses both characteristics. Consequently, Central Caucasus stands amid a complex geopolitical landscape, and next to presenting economic opportunities for great powers, finds itself in the hotspot of 21st-century security considerations.

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War Drums on the Horizon: Will Europe Wake Up in Time? https://www.geopoliticalmonitor.com/war-drums-on-the-horizon-will-europe-wake-up-in-time/ https://www.geopoliticalmonitor.com/war-drums-on-the-horizon-will-europe-wake-up-in-time/#disqus_thread Mon, 22 Apr 2024 11:49:08 +0000 https://www.geopoliticalmonitor.com/?p=44179 It’s time for the European public to acknowledge the uncomfortable truth that the specter of war has returned to the continent.

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Europe hums with the normalcy of daily life – cafes bustling, children playing, tourists snapping photos. Yet, a shadow hangs low on the horizon, a shadow cast by the rumble of tanks on Europe’s eastern border. Senior EU officials, including EU’s top diplomat Josep Borrell, warn of a potential war erupting on European soil, but the sense of normalcy persists. This disconnects between official pronouncements and public perception reveals a continent deeply divided in its understanding of the current threat.

The question remains: is a European war a genuine possibility, or simply a tactic to garner support for Ukraine? Perhaps it’s both. The warnings could serve as a dual message, deterring Russia while simultaneously pushing for increased aid to Ukraine. However, recent developments, such as the deployment of advanced Russian weaponry and the potential for a renewed offensive this summer, paint a concerning picture regarding the possibility of conflicts.

The tactics employed by both Russian and Ukrainian forces in this ongoing conflict could be readily and easily adapted for a potential hybrid war fought on European soil. The Iranian Shahed-136 drones, with their distinctive motorcycle-like engine roar, have become a constant presence in Ukrainian skies during Russian offensives. It’s not inconceivable to imagine these drones buzzing ominously over European airspace in the not-so-distant future. The geographical proximity of major European cities like Berlin and Warsaw to Ukrainian battlegrounds like Sevastopol and Kyiv (both less than 2,000 miles away) underscores the potential reach of these drones, even if they are not the most cutting-edge technology at Russia’s disposal.

Recent developments, including heavy Russian artillery going over the Polish border, paint a worrying picture. Despite these advancements, there seems to be a collective lack of urgency in acknowledging the seriousness of the situation. This perception, however, is not uniform across Europe.

Despite the increasing concerns, indeed, there is a clear divide between the proactive response of Eastern European countries and the apparent inaction of their Western counterparts.

Living in the shadow of the Russian bear, Eastern European nations have spent the past few months expressing a palpable sense of alarm and actively strengthening their defenses. Lithuania, a NATO member state that is eclipsed in size by countries such as France or Germany, stands out as a leader in dedicating a large portion of its GDP to bolstering its defenses and honing its military muscle – significantly outpacing its Western allies. Similarly, Poland, despite a recent shift in government, continues to grapple with historical and cultural tensions with Russia. Here, the specter of war is a constant vigil, a chilling reality that casts a long shadow over daily life. However, suggesting that their heightened awareness stems solely from geographical proximity would be a dangerous oversimplification. As the conflict in Ukraine tragically demonstrates, modern warfare can transcend mere kilometers.

 

A continent sleepwalking into conflict?

The European public seems largely oblivious to the potential consequences of war on their doorstep. While media coverage of the war in Ukraine has been extensive, it may not be adequately conveying the seriousness of the situation for Europe itself. Additionally, the daily news cycle often prioritizes domestic issues, potentially creating a sense of detachment from the larger geopolitical picture. This lack of urgency, particularly in contrast to the proactive stance taken by Eastern European nations, raises concerns about Europe’s overall preparedness.

The disparity in perception across Europe can be attributed to several factors. Eastern European nations may well have a historical memory of living under Soviet rule, which shapes their present outlook. They understand the potential brutality and unpredictability of Russia’s leadership, as did Ukrainians after the Crimea invasion. Western Europe, on the other hand, may be experiencing a form of war fatigue. Decades of relative peace have fostered a sense of complacency. Additionally, the economic anxieties associated with a potential conflict could create a strong disincentive to acknowledge the threat.

There may also be a lingering hope for diplomacy to prevail. European leaders and citizens alike may be clinging to the belief that negotiations can de-escalate tensions with Russia. Recent diplomatic efforts by Western European nations might further fuel this hope. However, a healthy dose of realism is necessary. While diplomacy should continue, a failure to adequately prepare for all possible scenarios would be a grave mistake.

A war on European soil could have a profound impact that extends far beyond the immediate conflict. Existing security architecture and alliances could be fundamentally reshaped. Political landscapes would undoubtedly shift, with potential for both increased cooperation and further fractures. The economic impact would be devastating, impacting trade, investment, and overall stability for years to come.

In the aftermath of COVID, a complacent Europe can ill-afford to ignore the gathering storm. The time for denial is over. Europe must confront the threat head-on. Open dialogue with European citizens about the potential for war and its consequences is crucial. This dialogue must move beyond the realm of political rhetoric and delve into the stark realities of the situation.

A multi-pronged approach is the only way to avert the looming shadow of war and ensure a peaceful future for Europe. Continued diplomatic efforts with Russia must remain a priority, but they should be coupled with responsible military preparation. Increased investment in defense capabilities and a renewed commitment to collective security through NATO are essential steps.

However, security goes beyond just military might. Europe needs to work towards a more unified foreign policy and a stronger economic foundation. This will require a renewed commitment to European integration and a willingness to overcome historical divisions.

 

The views expressed in this article belong to the authors alone and do not necessarily reflect those of Geopoliticalmonitor.com.

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South China Sea Dispute: China’s ‘Gray Zone’ Is Shrinking https://www.geopoliticalmonitor.com/south-china-sea-dispute-chinas-gray-zone-is-shrinking/ https://www.geopoliticalmonitor.com/south-china-sea-dispute-chinas-gray-zone-is-shrinking/#disqus_thread Thu, 18 Apr 2024 16:55:08 +0000 https://www.geopoliticalmonitor.com/?p=44175 Major advances in US-Philippines cooperation, backed by growing involvement from Japan and Australia, are neutralizing the gray zone tactics that have helped China alter the map of the South China Sea.

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Key Takeaways:

  • The Marcos administration in the Philippines is internationalizing the South China Sea conflict, scrapping the bilateral approach of the Duterte years.
  • US President Biden has reiterated that the US-Philippines mutual defense treaty applies to the South China Sea.
  • ‘Gray zone tactics’ that may have worked previously are now more likely to elicit a response from Washington and other littoral claimants.

 

The United States and Philippines are planning their first-ever military training exercises outside of Philippines’ waters. The exercises are the latest in a series of moves suggesting a more active US stance on defending its allies’ sovereignty in the South China Sea. The overall objective is clear: remove the diplomatic and military ambiguity that China’s gray zone tactics thrive in.

 

Background

The South China Sea is a critical theater for Beijing, holding out the possibility of material wealth in its underseas mineral deposits and greater military security by pushing out the PLA’s defense perimeter from China proper. But Beijing’s sweeping claims to the waters overlap with other littoral states, namely Vietnam, the Philippines, Brunei, Malaysia, and Taiwan. The resulting clashes have played out for decades, sometimes producing a sudden redrawing of the map, as was the case after China’s occupation of the Paracel Islands in 1974, and other times leading to a more gradual ‘slicing of the salami’ where a previous status quo slowly gives way to a new one, often by way of gray zone tactics designed to fall short of producing a direct military response.

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Winners and Losers in the Greenback Rally https://www.geopoliticalmonitor.com/winners-and-losers-in-the-greenback-rally/ https://www.geopoliticalmonitor.com/winners-and-losers-in-the-greenback-rally/#disqus_thread Wed, 17 Apr 2024 14:04:45 +0000 https://www.geopoliticalmonitor.com/?p=44170 A stronger-than-expected US inflation report is giving new impetus to the rallying US dollar. Here are some of the winners and losers.

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An upside surprise in the latest US inflation report is fueling speculation of interest rates that remain higher for longer, a trend that will ratchet up the financial pressure on highly indebted US consumers (not to mention their government). But there’s another aspect of a (forced) high-rate environment that bears further examination: a stronger-than-normal US dollar. The greenback was already undergoing an extended post-pandemic rally, of which the latest US inflation report has given renewed impetus, and these rising valuations continue to ripple through the global economy.

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Can Blockchain Revolutionize Commodities Trading? https://www.geopoliticalmonitor.com/can-blockchain-revolutionize-commodities-trading/ https://www.geopoliticalmonitor.com/can-blockchain-revolutionize-commodities-trading/#disqus_thread Wed, 17 Apr 2024 11:42:46 +0000 https://www.geopoliticalmonitor.com/?p=44165 New technology is upending old certainties in commodities trading, and for the first time ever grassroots investors can lead the way.

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If the graphite in your smartphone could talk, what story would it tell? From the miners who extract it under unsafe working conditions to the traders who make or lose fortunes bringing it to market, graphite and other commodities steer the course of human lives up and down the supply chain. The precise details, however, have long remained a mystery to consumers. They might see news reports of conflict minerals fueling civil war, children working in mines, and environments razed and ruined by unsustainable practices, and can only hope that they are not complicit. Commodity traders and investors are similarly forced to grope their way through the dark, not just on point of origin but also pricing, as many of the strategic commodities fueling the green transition are not traded on public markets, muddying the waters on business planning and procurement.

Such unknowables have existed for as long as commodities have been traded. But technology is now intervening to disrupt convention, paving the way for new and ultimately more sustainable paradigms. Asset tokenization via blockchain technology specifically holds out the promise of revolutionizing supply chains by disclosing the mine source, chain of custody, and ESG practices of a given commodity. This information is a game-changer for consumers looking to make informed purchasing decisions: the graphite in their smartphones will finally be able to tell its story.

Technology alone is not enough; traders, investors, and consumers must be able to put it to good use. What’s needed is for companies to step up and bridge the gap. One notable example is Savala, which has partnered with DComm Blockchain to launch an innovative trading platform that will initially focus on premium graphite before expanding into other commodities. Transactions on the platform will be facilitated via the DComm Blockchain Coin ($DCM), marking a leap forward in the marriage of digital currency and commodity trading. But unlike cryptocurrencies, which tend not to be backed by any hard assets, every token will represent one ton of graphite.

This novel approach can help alleviate longstanding issues in the commodity trading space. For one, it allows grassroots investors to engage directly in commodity markets for the first time, thus encouraging the democratization of a market that has historically been dominated by elite interests. Two, it provides a level of transparency hitherto impossible for traders and investors, opening the door to better investment decisions. For example, investments can be guided by a sense of social responsibility (purchasing from miners with a record of ESG best practices) or geopolitical considerations (purchasing from miners unlikely to be targeted by sanctions). And most importantly, trading portals can act as a conduit for ESG-minded miners to raise capital, linking them up with publics that had previously lacked the opportunities and technological means to invest in commodities on their own terms. Commodity traders also benefit from improved price discovery since portals can help pull the curtain back on the opaque and top-heavy arena of privately traded commodities. End users such as auto OEMs can leverage this price discovery to hedge or even buy necessary inputs directly.

It’s no coincidence that Savala has opted to focus on the premium graphite market, as the commodity exemplifies many of the pitfalls of the status quo. In terms of its importance, there can be no question – as a durable and excellent conductor of heat and electricity, graphite finds its way into all manner of industrial and consumer products. Chief among them, at least in the context of the global energy transition, is lithium-ion batteries, which are expected to propel graphite demand to new heights over the coming years. Yet sources of this highly strategic commodity remain restricted to jurisdictions that carry significant geopolitical or ESG risk. China, for example, accounts for 65% of global graphite production and 90% of global refining, but its government instituted export curbs in late 2023 citing national security concerns. Rights organizations have expressed concern about Mozambique, the world’s second-largest graphite producer at approximately 13% of global output, where local livelihoods and ecosystems have allegedly been upended by large-scale mining. In particular, nearly all graphite mining takes place in Cabo Delgado province, home to a bloody and ongoing insurgency that has caused thousands of deaths.

In light of these supply chain issues, it comes as no surprise that Western governments are scrambling to secure new avenues of graphite production and refining capacity. The Savala portal can assist in the effort by tapping into new sources of capital and channeling it toward responsible operators. Amid a global energy transition at a critical time, the stakes couldn’t be higher. But for the first time in human history, we can at the very least hold out hope for a commodity boom that leaves the planet in a better state than what it found it in.

 

Richard Garner has acted as an advisor to Savala Global. The views expressed in this article belong to the authors alone and do not necessarily reflect those of Geopoliticalmonitor.com.

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Sagging Real Estate and Bad Debts: China’s Banking System Risk https://www.geopoliticalmonitor.com/sagging-real-estate-and-bad-debts-chinas-banking-system-risk/ https://www.geopoliticalmonitor.com/sagging-real-estate-and-bad-debts-chinas-banking-system-risk/#disqus_thread Tue, 16 Apr 2024 13:00:45 +0000 https://www.geopoliticalmonitor.com/?p=44162 China’s banking system is shouldering the burden of a struggling real estate market, but there’s only so much pressure it can take before the risk becomes systemic.

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China is facing a looming banking crisis that is closely tied to an ongoing meltdown in the real estate sector. While much attention has been given to the real estate bubble, the interconnectedness between the real estate sector and the banking industry poses significant risks to China’s overall financial stability. Understanding the magnitude of the potential crisis requires an analysis of the complex relationship between the real estate crisis, banking system strains, shadow banking activities, and the solvency of local governments.

The real estate crisis in China has been characterized by a slowdown in the market and declining property prices, placing financial strain on developers and homebuyers alike. Evergrande, the country’s largest developer, was ordered to liquidate last year after missing two years of payments on its $300 billion in debts. Similarly, Country Garden slipped into default while carrying approximately $187 billion in liabilities. About two-thirds of the remaining real estate developers have already defaulted or are facing defaults on upcoming payments. This downturn has direct implications for the banking sector, as real estate loans account for a quarter of bank loan portfolios. If the market continues to slump, defaults on these loans could jeopardize the stability of financial institutions.

 

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