Nightcap

  1. How slaves shape their societies Catherine Cameron, Aeon
  2. Geopolitics and change (pdf) Daniel Deudney, New Thinking in IR
  3. Bernie Sanders?
  4. Liberalizing the liberal order? (podcast) David Hendrickson, Power Problems

Nightcap

  1. Clarence Thomas and the Left Mark Pulliam, Law & Liberty
  2. Religious liberty and the Left Ian Millhiser, Vox
  3. Mughal hegemony Manjeet Pardesi, EJIR
  4. Was Shikha Dalmia purged? George Dance, Political Animal

Biden’s Middle East: Iran, Saudi Arabia, and Israel


Introduction  

As President-elect Joe Biden gets ready to take over, he faces numerous foreign policy challenges. One of the most complex issues is likely to be Washington’s approach vis-à-vis Tehran. A lot of analysis has focused on how Biden has spoken about conditional entry into the Joint Comprehensive Plan of Action (JCPOA)/Iran agreement from which Donald Trump withdrew in 2018 – subject to Iran returning to full compliance. There have been indicators that Biden may get on board with the agreement unconditionally to give some space to the current government of Hassan Rouhani, which will face elections in 2021. Sanctions have taken their toll on the Iranian economy (Foreign Minister Javad Zarif recently stated that sanctions have inflicted damage to the tune of $250 billion), and hardline voices have become stronger – the last thing the US would want is hardliners capturing power.  

For the US and its allies, the concern is about Iran’s nuclear program. In an interview to New York Times on December 2, Biden said “the best way to achieve getting some stability in the region” was to deal “with the nuclear program.”

For Iran, one of the major concerns is the fact that the country’s economy is in the doldrums. Rouhani and Zarif have both indicated this, and on more than one occasion. After Iran’s parliament and its Guardian Council recently gave a go ahead to a law that threatens to not permit UN inspections and to increase the level of uranium enrichment beyond the 2015 deal if sanctions were not removed within two months, Zarif clearly stated that these laws were not ‘irreversible’: 

The Europeans and USA can come back into compliance with the JCPOA and not only this law will not be implemented, but in fact the actions we have taken … will be rescinded. We will go back to full compliance.

Saudi factor

US dealings with Iran hinge on the overall geopolitical dynamics of the Middle East and have been influenced by the relations of Israel and Saudi Arabia with Tehran. During the Trump administration, Israel and Saudi Arabia had a strong influence over American policy towards Iran. Even as Trump prepares to demit office, his administration is making it clear that there will be no change in US ‘maximum pressure’ policy vis-à-vis Iran (in fact Iran has been projected as the main threat to security in the Middle East). This includes imposition of sanctions, and also upping the ante vis-à-vis Iran via Saudi Arabia and Israel (serving and retired US officials point to an Israeli hand in the assassination of Mohsen Fakhrizadeh, which would make US diplomacy vis-à-vis Iran tougher). 

Biden, too, has indicated that he will consult other countries with regard to his Iran policy. In his interview to the New York Timesthe President elect said:

In consultation with our allies and partners, we’re going to engage in negotiations and follow-on agreements to tighten and lengthen Iran’s nuclear constraints, as well as address the missile program.

The key question is to what degree will Biden consult other stakeholders in the Middle East, such as Israel and Saudi Arabia. According to observers, neither will have a veto over Biden’s Iran policy, as they did have during the Trump administration (Trump had a strong personal rapport with Israeli Prime Minister Benjamin Netanyahu as well as the Saudi royal family). Here it would be pertinent to point out that while no US President can afford to neglect Israel or Saudi Arabia, Biden has been critical of Saudi Arabia, specifically in the context of its Human Rights record, in the past.  

Saudi Arabia and the Biden Administration 

Keeping this in mind, Saudi Arabia has sought to build a perception that it is open to removing the economic blockade vis-à-vis Qatar (the blockade was imposed by Saudi Arabia and other Arab countries in June 2017). A statement was made by the Saudi Foreign Minister regarding possible headway between Qatar and other countries which had imposed a blockade.  

Days after Jared Kushner’s visit to the Middle East, where he met with the Saudi Crown Prince as well as the Emir of Qatar, and is supposed to have discussed the resumption of Qatari planes using Saudi and UAE’s airspace, Prince Faisal bin Farhan Al Saud stated: 

We have made significant progress in the last few days thanks to the continuing efforts of Kuwait but also thanks to strong support from President Trump.

Senior Qatari officials, including the Foreign Minister, said that while a resolution was welcome, it needed to be based on ‘mutual respect.’ Iran – which shares cordial ties with Qatar – welcomed the possibility of removal of the blockade. Iranian Foreign Ministry spokesperson Saeed Khatibzadeh stated: 

We straightforwardly and promptly welcomed any settlement of tensions in the Persian Gulf region. The Iranian foreign minister adopted a stance on the issue and said that within the framework of the good-neighbourliness policy, we embrace any move at any level to politically resolve the crisis in the Persian Gulf.

Statement regarding the JCPOA 

Saudis have also indicated that they would like to be consulted with regard to the US getting on board with the JCPOA. Said Saudi foreign minister, Prince Faisal bin Farhan, while speaking at a conference: 

I think we’ve seen as a result of the after-effects of the JCPOA that not involving the regional countries results in a build-up of mistrust and neglect of the issues of real concern and of real effect on regional security.

While the foreign minister indicated that Saudis have not been consulted so far by Biden, he also stated that Riyadh was willing to work with Biden.  

Conclusion 

Biden, unlike Trump, is likely to consult important stakeholders, but on the Iran issue he will have limited space and can not allow other countries to exercise inordinate influence. Biden is likely to work closely with US allies, and is likely to go by the advice of the European Union in general and the E3 in particular. Statements from Tehran indicate that in spite of the Trump administration’s aggressive approach vis-à-vis Iran, there is space for negotiation though Biden may have to give up on his earlier conditionalities of getting on board the JCPOA. Much will depend upon the Trump administration’s approach vis-a-vis Iran for the remaining duration, and whether or not the Rouhani administration can prevent hardliners from setting the agenda.

On Joe Biden and America’s relationship with Iran

One of the important foreign policy priorities of President-elect Joe Biden, which will have an impact not just on the US but a number of its allies in the West – such as the UK, Germany, France (the E3), India, and Japan – is Washington’s ties with Iran. 

It will be interesting to see the ultimate shape which Biden’s Iran foreign policy takes place. Days before the announcement of the election result, Iran’s Foreign Minister Javad Zarif stated, in an interview to CBS news, that Iran viewed the statements emanating from the Biden camp positively, though Iran would have to wait and watch. 

While commenting on the Biden-Harris victory, Iranian President Hassan Rouhani urged the US to return to the JCPOA (Joint Comprehensive Plan of Action). Said Rouhani

Now, an opportunity has come up for the next U.S. administration to compensate for past mistakes and return to the path of complying with international agreements through respect of international norms 

Donald Trump’s withdrawal from the JCPOA – Iran/P5+1 agreement in 2018, had been criticized by allies, including the E3, who were signatories to the agreement. 

President-elect Joe Biden has also unequivocally stated that he is open to the US rejoining JCPOA, subject to the fact that Iran returns to compliance with the nuclear agreement. Biden, who also served as Vice President under Obama (who had fervently backed the JCPOA), has been critical of the Trump Administration’s approach towards Iran, dubbing it as a failure. During the midst of the coronavirus pandemic, Biden, along with many US allies, had also advocated that the US relax Iranian sanctions temporarily on humanitarian grounds. 

In recent months, Washington has imposed more sanctions on Iran, the latest instance being sanctions imposed days before the election on Iran’s Ministry of Petroleum, the National Iranian Oil Company, and its oil-tanker subsidiary. The reason cited for sanctions is the financial support provided by these companies to Iran’s Islamic Revolutionary Guards Corps (IRGC). It would be pertinent to point out that the US was unable to snapback Iranian sanctions which had been removed under the JCPOA – UNSC members blocked US attempts. While there is skepticism with regard to the revival of the deal given that incumbent Iranian President Hassan Rouhani himself is likely to face elections soon, and there is limited room for manuevre given that hardliners in Iran (whose clout has increased as a result of Trump’s Iran policy), are averse to any engagement with the West. Senior Iranian officials have also stated that they will not accept any conditionalities from Washington.

Biden may have fundamental differences in his approach vis-à-vis the Middle East as compared to Trump for a variety of reasons. 

First, Biden is likely to be less confrontationalist vis-à-vis Iran as has already been indicated by him. 

Second, Donald Trump had a far better relationship with Gulf Cooperation Council (GCC) countries, like UAE, Saudi Arabia, and others like Turkey and Egypt. Trump made no qualms about getting along with authoritarian leadership of these countries, and turning a blind eye to human rights violations in Saudi Arabia.  

Trump touted agreements between Middle Eastern countries Bahrain, the UAE, and Israel as one of his major achievements. To be fair, even his critics would grant him credit for the same. What puzzled many was his flexibility vis-à-vis North Korea and his obduracy in engaging with Iran. Former President Obama while commenting on the US withdrawal from JCPOA had remarked: 

Indeed, at a time when we are all rooting for diplomacy with North Korea to succeed, walking away from the JCPOA risks losing a deal that accomplishes – with Iran – the very outcome that we are pursuing with the North Koreans

Third, a more flexible engagement will prevent Iran from further swaying towards China, something Washington would want to prevent. One of the key factors cited for the Iran-China 25-year agreement (which will bolster economic and strategic relations between both countries) is the approach of the Trump Administration vis-à-vis Iran. 

Apart from this, Biden, who has repeatedly reiterated the point about engaging with allies, is likely to take their advice. The US President-elect has already proposed a global democracy summit where common challenges confronting the world will be discussed and it is expected that the US will seek the views of allies. 

UK, France, and Germany (E3), and Japan and India, are likely to be in favor of a different approach vis-à-vis Iran, given their economic and strategic interests.  

It is not necessary that Biden is likely to follow a policy identical to Obama’s given that global geopolitical dynamics in general and the situation in the Middle East have witnessed a significant shift. Yet a more flexible and pragmatic US approach towards Iran could prevent Tehran from veering further towards Beijing. It is also important for the US to give more space to its allies to strengthen economic linkages with Tehran. Joe Biden has numerous other challenges, and Iran’s President Hassan Rouhani too has a number of problems to cope with but there is a limited window for at least getting back to the dialogue table and reducing tensions.

Nightcap

  1. Sovereignty and the modern treaty process (pdf) Paul Nadasdy, CSSH
  2. How states wrest territory from their adversaries (pdf) Dan Altman, ISQ
  3. Farage’s dangerous appeal Chris Dillow, Stumbling & Mumbling
  4. Decomposing the nation-state (pdf) Murray Rothbard, JLS

New Zealand’s elections and the geopolitics of the Pacific

Introduction 

The convincing victory of Jacinda Ardern is important for more than just one reason. First, the 40 year-old Ardern’s centre-Left Labour party has won convincingly — securing 49% of the vote, and securing 64 seats in the 120 seat assembly. Ardern has delivered the biggest election victory for her party in half a century. The victory gives Ardern and her party the opportunity to form a single party government.  

Second, while there is often talk of a right-wing political discourse being dominant globally, it is important that a center-left leader has won. Many commentators of course would argue that New Zealand is a small country, with a small population of less than 5 million – and that not much should be read into the electoral result.

Third, Ardern’s successful handling of the Covid19 pandemic, along with other women leaders – including German Chancellor Angela Merkel, Taiwanese President Tsai Ing Wen, Bangladeshi Prime Minister Sheikh Hasina, and Denmark’s Mette Frederiksen – has been acknowledged globally. A study published by the World Economic Forum and The Center for Economic and Policy Research makes this point and has cited some of the reasons for the success of the these leaders. The success has been attributed to the fact that all these leaders were quick to react to the crisis. 

Fourth, at a time when the world is becoming insular, the New Zealand PM has been firmly pitching for open immigration policies, has taken a strong stance vis-à-vis Islamophobia (something which leaders of other liberal democracies have failed to do), and repeatedly argued in favor of a more inclusive society. In March 2019, shootings at a Mosque in Christchurch by white supremacists had resulted in the killing of 50 people. Ardern, while expressing solidarity with members of the community, donned a head scarve, or hijab, and this gesture was appreciated. In her victory speech the New Zealand PM stated that the world is becoming increasingly more polarized and that “New Zealanders have shown that this is not who we are.” 

The New Zealand PM has her task cut out on issues related to the economy (the economy had shrunk by 12% in the second quarter thanks to the impact of the lockdown). Like other countries, there have been many job losses. Some of the sectors which have witnessed job losses, such as retail, hospitality, and tourism – employ women (according to some estimates a whopping 90% of people who have lost jobs are women). Some commentators also believe that the Labour government has not been able to deliver on key promises related to housing, child welfare, and the economy. There is also an argument that Ardern’s first tenure was not transformational, and after her win the expectations from her will be much higher.

Foreign Policy Challenges  

New Zealand, in spite of being a small country, is important in the context of foreign policy issues. There are two important dimensions: New Zealand’s ties with China, and as a part of the 11-member Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP).

As far as New Zealand’s ties with China are concerned, there are various layers to the bilateral relationship. Jacinda Ardern’s government has largely gone along with other 5 eye countries when it comes to the issue of allowing Huawei entry into New Zealand’s 5G network. On issues pertaining to Hong Kong, the Uygurs, and the South China Sea too, New Zealand has taken a firm stance vis-à-vis Beijing. After the imposition of the National Security Law in Hong Kong, New Zealand suspended its extradition treaty with Hong Kong, and it also made revisions with regard to its policy on military and dual-use goods and technology exports to Hong Kong, subjecting the city to the same as the People’s Republic of China (PRC). 

During her speech at the China-New Zealand Summit, Ardern said: 

As you know, this has come to the fore recently around developments like Hong Kong’s new security law, the situation of the Uyghur people in Xinjiang province, and Taiwan’s participation in the World Health Organisation.

Like its neighbour Australia, New Zealand has also been taking cognizance of increasing political interference in its domestic politics, via governments, political parties, and universities. There has been bipartisan support for taking measures to check the same. Some policies have been introduced with regard to political donations as well as Foreign Direct Investment. 

At the same time, New Zealand has a close economic relationship with China and this is strong reiterated by figures. In 2019, China accounted for a staggering 33% of New Zealand’s dairy exports, over 40% of meat experts and contributed to 58.3% of international education earnings (it is estimated that in 2019, 87% of New Zealand’s service export earnings from China came from education-related travel and personal tourism).

While there has been a shift in New Zealand’s approach vis-à-vis China, officials have also repeatedly made the point, that it will not blindly toe any other country’s stance vis-à-vis China. 

CPTPP

Another important foreign policy component of New Zealand is as member of the 11-member CPTPP. Along with other countries, New Zealand worked towards keeping supply chains going in the midst of the pandemic. For instance in April, New Zealand sent a first plane load of essential supplies to Singapore. (This included commodities like lamb and beef which were sent by a chartered plane.)

New Zealand and other CPTPP members have also been working to resume essential travel, while Singapore opened a travel bubble with New Zealand on September 1, 2020 (which means that quarantine-free travel will be allowed). 

New Zealand and its neighbour Australia, another member of CPTPP, have opened an air bubble too (though this is one-way as yet only passengers from New Zealand can travel to Australia). The bubble currently is applicable only to two Australian states New South Wales and the Northern Territory.

Conclusion  

In conclusion, the election result is important not just in the context of domestic politics, but in sending a message that there is space for centrist and inclusive politics and that it is not necessary to have a Strong Man image cultivated by many right-wing leaders. It is also important to bear in mind that liberal democracies, which respect diversity, are in a far better position to provide an alternative narrative to that of China. Apart from this, while the shortcomings of globalization do need to be acknowledged and addressed, inward looking economic and immigration policies need to be firmly rejected.

Nightcap

  1. The political economy of U.S. Territories and Indian Country (pdf) Rachel Wellhausen, PS: Political Science & Politics
  2. The U.S. Empire, the Surveillance State, and the Imperial Boomerang Connor Woodman, Verso
  3. Unpacking the Sino-American relationship Paul Poast, War on the Rocks
  4. Worlds without nation-states: Five scenarios for the long term (pdf) Andreas Wimmer, Nations and Nationalism

A short note on Iran and India

Introduction

Ever since the withdrawal of the US from the JCPOA (Joint Comprehensive Plan of Action), or the Iran nuclear deal, in 2018, Iran-India economic linkages have taken a hit. The impact on the bilateral economic relationship between New Delhi and Tehran became even more pronounced after India stopped purchasing oil from Tehran in 2019. The US had ended the waiver from sanctions, which had provided to India and a number of other countries, the continued ability to import oil from Iran.

In 2018-2019, bilateral trade between India and Iran was estimated at over $17 billion (mineral oil and fuel imports accounted for a significant percentage of the $17 billion). In 2019-2020, for the period from April-November, bilateral trade was estimated at $3.5 billion. There was a significant drop in Iran’s imports to India, owing to the reduction of Iranian petroleum imports by India to zero.

Downward trajectory in the bilateral relationship

2019 witnessed a downward trajectory as far as New Delhi-Tehran ties were concerned, with Iran expressing its disappointment with New Delhi for not taking a firm stance against Washington. Iranian Foreign Minister, Javad Zarif, in 2019, while making the above point in an interaction with Indian journalists, also stated that ‘if you can’t lift oil from us, we won’t be able to buy Indian rice.’

Chabahar Port and the India-Iran relationship

The US on its part has exempted the strategically important Chabahar Port Project, India’s gateway to Afghanistan, from sanctions. The Port was earlier touted by many as India’s counter to the Gwadar Port (Balochistan Province, Pakistan), which is at a distance of 70 kilometres and an important component of the China-Pakistan Economic Corridor (CPEC). The Government of India had taken over Phase 1 of the Shahid Beheshti Port in December 2018 (according to an agreement India was to operate two berths within Phase 1 of the project). During the Covid-19 pandemic, India had used the Chabahar Port to deliver relief materials to Afghanistan.

After India’s decision to stop the purchase of oil from Iran, and the souring of ties between both countries, Iran has given indicators that it is keen to get Pakistan (Iran had proposed to connect the Chabahar Port with Gwadar Port) and China on board. Iran has also complained that progress on the Chabahar Port was slow due to India’s cautious attitude towards the project, (as a result of both American pressure and delays in funding).

In the aftermath of the Iran-China 25-year agreement, India has been paying greater attention to ties with Iran in general, and the Chabahar Project in particular, a point strongly reiterated by the back-to-back visits of India’s Defence Minister, Rajnath Singh, and External Affairs Minister S. Jaishankar, to Tehran respectively. Connectivity, economic linkages, and issues of regional security (specifically Afghanistan) were discussed during both visits.

There were reports that India had been elbowed out of the Chabahar-Zahedan railway project, an important component of the Chabahar Project, but Iran has categorically dismissed this claim.

Indian exports of Basmati to Iran hit by sanctions

While the India-Iran bilateral relationship is often viewed from the prism of the Chabahar Port and Oil, Iran also accounts for a large percentage of India’s Basmati (an aromatic long grain rice) exports – 34%. There is likely to be a dip this year, due to sanctions, and Iran is already substituting Indian Basmati with Pakistani basmati.

The North Indian states of Punjab and Haryana account for 75 percent of Basmati exports. Indian Basmati exporters and growers have expressed their concern over the likely fall in exports to Iran (which is an important market).

Conclusion

The impact of US sanctions on Iran’s economic ties with India, with Basmati exports being an important example, reiterate the point that the Iran-India relationship is far deeper and multifaceted than is often perceived. While the thrust is on connectivity and geopolitics, the economic links are often overlooked. It is important for New Delhi to seek the views of all domestic stakeholders as far as economic ties with Iran are concerned.

New Delhi should also take a cue from the UK, France, and Germany – also referred to as the E3 – which set up a special purpose vehicle (SPV), known as Instrument in Support of Trade Exchanges (INSTEX), in 2019, to circumvent US sanctions. (During the Covid-19 pandemic, INSTEX was used to provide relief materials to Iran). New Delhi clearly needs to think out of the box, and accord its ties with Iran greater priority given the economic, historical, and political context. The visits of India’s Defence Minister, Rajnath Singh, and External Affairs Minister S. Jaishankar to Tehran in the month of September clearly emphasize the point that India is doing a re-think with regard to its Iran policy, factoring its strategic and economic importance. There is also a realization that Washington’s approach towards Tehran may witness a significant shift if there is a change of guard in November 2020 (which can not be ruled out).

Nightcap

  1. The iron wall versus the villa in the jungle Michael Koplow, Ottomans & Zionists
  2. The pragmatic case for a unitary executive John McGinnis, Law & Liberty
  3. Catholic Social Teaching in the West today Bernard Prusak, Commonweal
  4. Ayn Rand’s philosophy might be questionable – but what about her prose? Sam Leith, TLS

Post-pandemic trends in post-Brexit British foreign policy: Asia or the Atlantic?

Introduction

In January 2020, the UK had given a go-ahead to Chinese telecom giant Huawei to participate in its 5G network – with restrictions and conditions. The Trump administration conveyed its displeasure to the Boris Johnson administration. Not just the US President, but senior officials of the US administration are supposed to have said that this decision would impact economic and security relations between the UK and the US.

In the aftermath of the Covid-19 pandemic, ties between the UK and China have steadily deteriorated. As a result of increasing strains with Beijing, and the imposition of strong US sanctions against Huawei, London began to rethink its approach towards Huawei’s role in its 5G network.

First, it was decided that Huawei’s participation would be reduced to zero by 2023. In May, Britain had also proposed a multilateral grouping of 10 countries, D10 (G7+ India, South Korea and Australia), which could work collectively for reducing dependence upon Chinese technologies.

UK-China ties after the imposition of the National Security Law in Hong Kong

London further hardened its stance vis-à-vis China after the imposition of the National Security Law in Hong Kong, which, according to the UK, is a violation of the ‘one country two systems’ arrangement safeguarded by the ‘Basic law’ of Hong Kong and the Sino-British joint declaration signed in 1985. According to the Boris Johnson administration, the National Security Law will impinge upon not just the autonomy of Hong Kong but freedoms and rights of the residents of the former British colony, guaranteed by the 1985 declaration (these rights were to remain in place for a period of fifty years from 1997 – the year in which British left Hong Kong and handed over sovereignty to China).

Decision regarding Huawei

On July 14, 2020, on the recommendation of National Cyber Security Centre (NCSC), the Boris Johnson administration decided that Huawei will be removed from the 5G network by 2027. It was also decided that the purchase of 5G kits from Huawei will not be allowed after the end of December 2020.

China reacted strongly to the UK’s recent announcement, while it was welcomed by US President Donald Trump. China stated that the UK’s decision will exacerbate tensions, while the US President stated that the Johnson administration took this decision as a result of pressure from Washington. A top official in Boris Johnson’s administration stated that this decision was not driven by US pressure. Said the British Foreign Secretary Dominic Raab:

But I think that decision was made not because the US said it was a good decision but because the leadership in the UK concluded the right thing to do was to make that decision for the people of the UK.

Interestingly, some media reports suggest that British officials have stated that the recent ban on Huawei was imposed with a view to placate Trump, and the UK could revise its decision, if the mercurial US President is voted out in November 2020.

UK-Japan relations

Britain has already begun to look for alternatives to Huawei for developing its 5G network. On July 16, 2020, just two days after the decision was taken to remove the Chinese telecom giant altogether by 2027, British officials are supposed to have met with their Japanese counterparts and sought assistance for developing Britain’s 5G network. Two companies which were discussed as possible alternatives to Huawei were NEC Corp and Fujitsu Limited.

It would be pertinent to point out that in recent months Britain has been aiming to strengthen trade ties with Japan, and is also looking to secure a Free Trade Agreement (FTA) with Japan. Both countries have also been at the forefront of pitching for diversifying global supply chains.

Conclusion

While it remains to be seen whether Britain and Japan can work together for developing the former’s 5G network, the London-Tokyo relationship has witnessed an upswing in the aftermath of Covid-19. Both countries have already begun to take steps for reducing economic reliance on China. It would be interesting to see if Britain sticks to its announcement of removing Huawei from its 5G network by 2027, in case Donald Trump loses in 2020. While Britain is seeking to strengthen ties with countries wary of China’s increasing economic dominance, the former would not likely to be perceived as a mere appendage of Washington.

The View from New Delhi: Trump vs. Biden

Introduction

In the run-up to the US elections, presumptive Democrat candidate Joe Biden’s lead over Donald Trump has been steadily rising, and is well over 10%, according to various polls. There are four months to the election, however, and it is too early predict the outcome. Many believe that the mercurial Trump is likely to have an ace up his sleeve, and that his popularity within his core constituency is very much intact. Interestingly, one area where Trump has a lead over Biden is confidence with regard to handling the US economy. Trump also scores over Biden in terms of enthusiasm. The current President is lagging behind Biden in terms of important issues like law enforcement and criminal justice issues, foreign policy, the coronavirus outbreak, race relations, and keeping the country united.

Commentators, strategic analysts, and policymakers the world over are keeping a close watch on the US election. The question on everybody’s mind is whether Biden’s foreign policy will be similar to earlier Democrat Presidents like Clinton and Obama, or distinct given the massive economic and geopolitical changes which have taken place globally. According to Trump’s former National Security Advisor, John Bolton – whose memoirs The Room Where it Happened: A White House Memoir have stirred up controversy and come at the wrong time for Trump – a Biden Presidency would essentially mean ‘another four years’ of Obama’s foreign policy.

It is true that Biden has been part of what is dubbed as the ‘Beltway.’ and would be preferred by US liberals and the class of ‘East Coast Intellectuals’ who are dominant not just in academic circles, but the policy circuit as well, given the fact that he may not be as isolationist as Trump, and is likely to be less abrasive vis-à-vis US allies.

In the changed economic and geopolitical environment, globally, the former Vice President will need to tweak his approach on complex economic and geopolitical issues. We may thus witness a significant departure from the policies of Bill Clinton and Barack Obama, for example, as attitudes towards trade had already begun to change during the Obama presidency.

One strong reiteration of the above point is Biden’s stand on the Trans Pacific Partnership (TPP), which was former President Barack Obama’s brainchild, and an important component of what had been dubbed the ‘Pivot to Asia’ policy, which sought to contain China’s growing role in the Asia-Pacific region. (The Trump Administration has sought to build strategic partnerships in Asia through the ‘Free and Open Indo-Pacific’ narrative.) Biden said that he would only join a ‘re-negotiated TPP’ (one of the first steps which Donald Trump had taken when elected to office was to pull the US out of the TPP).

On China, too, Biden is likely to be more hawkish than Obama, though maybe he is less predictable and abrasive than Trump. Biden has already referred to some anecdotes in Bolton’s memoirs, where the Former NSA highlights the point that Trump, in a meeting with Chinese President Xi Jinping on the sidelines of the G20 Summit in Osaka, lent support to draconian measures against the Uighur minority in Xinjiang

Interestingly, in spite of Trump’s tough stance against China on economic issues, such as the imposition of trade tariffs as well as sanctions against Huawei (only recently, Chinese telecom vendors Huawei and ZTE Corporation were declared ‘national security’ threats), a number of Chinese commentators seem to prefer Trump, mostly because he has a simplistic approach, with US business interests being his primary concern. The US President has also not been very vocal on Human Rights Issues. Apart from this, Trump has given mixed signals vis-à-vis US allies. On the one hand, the Administration has spoken about the US working closely with its allies to take on China, and on the other hand Trump has taken measures which have riled allies. A recent instance being the Trump Administration’s announcement of withdrawing US troops stationed in Germany.

Similarly, Trump’s call for reforming the G7 and including Russia was not taken too kindly by countries like Germany and Canada, who believe that an expanded G7 should consist of democracies.

Trump’s rapport with authoritarian leaders

While Trump’s lack of gravitas in foreign policy has had an adverse impact on relations with US allies, he has got along well with authoritarian rulers like Russian President Vladimir Putin, North Korean dictator Kim Jong-un, and Chinese President Xi Jinping, and even praised them. Trump has not just turned a blind eye to human rights violations in Xinjiang, but looked the other way when it came to the brutal killing of Egyptian journalist Jamal Khashoggi in 2018 (the CIA concluded that the Saudi Crown Prince, Muhammad Bin Salman, with whom Trump shares a close rapport, was involved in the killing of Khashoggi).

In the midst of the pandemic, and India’s escalating tensions with China, the US President also suspended non-immigrant work visas, including H1Bs (in recent years, Indians have received well over two-thirds of the total H1B visas which have been issued) until the end of the year. Biden, on the other hand, has been an ardent advocate for closer economic ties with India. The former Vice President had also backed the Indo-US Nuclear deal in 2008 (Biden was then a Senator), and during his visit to India in 2013 he also spoke in favour of a greater role for India in Asia, and the need for both countries to work closely towards this goal.

What has irked many in India, however, is Biden’s criticism of the CAA (Citizenship Amendment Act), NRC (National Register of Citizens), and his support for the restoration of liberties in Kashmir on Biden’s campaign website. It would be important to note that not just Democrats, but even many Republicans, have criticised the increasing religious polarization in India in recent years, and a US government report also underscored the need for religious pluralism in India, highlighting cases of discrimination against minorities. Many right-thinking Indians, too, have been emphasizing on the point that India can not progress without social cohesion and warned against the perils of religious polarization and social divisions.

Conclusion

No US administration can afford to be soft on China any longer, and neither can India with its rising clout be ignored. The US under Biden is likely to cement ties with countries like India and Vietnam while ensuring that allies like Germany, France, and Australia are kept in good humor. What could change is the simplistic approach of Trump, where even links with allies are driven by short term economic gains. It is important to realize that US-India relations are driven by mutual interests, not just individual chemistry between leaders.

The Three T’s in a post-coronavirus world

As countries look to recover from the economic setback caused by the coronavirus pandemic, the three t’s – trade, travel, and technology – are likely to play an important role in getting the global economy back on the rails.

Trade

Even in the midst of the pandemic, countries have been in talks regarding Free Trade Agreements (FTA’s). The UK is seeking to sign an FTA with not just the US but also Japan, so as to buttress the bilateral economic relationship and get entry into the 11-member Comprehensive Partnership for Trans Pacific Partnership (CPTPP). Vietnam’s national assembly also ratified an FTA with the European Union known as EUVFTA (European Union Vietnam Free Trade Agreement) on June 8, 2020. According to the FTA, the EU will lift 85% of its tariffs on Vietnamese exports, while the remaining tariffs will be removed over a period of 7 years. Vietnam on the other hand will lift nearly half (49%) of its import duties on EU goods, while the rest of the tariffs will be removed over a period of 10 years.

The CPTPP is also likely to expand in the near future. Japan is seeking to get Thailand, Taiwan, Indonesia, and the Philippines on board. Tokyo’s aim is to reduce dependence on China by creating an alternative set of supply chains through multilateral networks.

Technology

In recent weeks, there has also been a growing debate with regard to creating new technologies, so that the dependency upon Chinese technologies is reduced. One important step in this direction is the UK’s suggestion for creating an organisation, called D10, which consists of the original G7 countries plus India, South Korea, and Australia. The aim of the D10 is to provide alternative technologies so that dependence upon Chinese technologies is reduced.

At London Tech Week, a report titled “Future Tech Trade Strategy” was given by British Trade Secretary Elizabeth Russ. Russ spoke about a new £8 million initiative which would enable British companies to expand tech ties with Asia-Pacific countries, especially Japan and Singapore. British companies will also be assisted by tech experts stationed in its high commissions and embassies in these countries.

Travel

In recent days, the resumption of international air travel has also also been an important matter of discussion. Three members within the 11-member CPTPP – Japan, New Zealand, and Australia – have already been in talks for resuming air connectivity. Japan is also likely to ease its entry ban from countries like Vietnam and Thailand where Covid-19 cases have reduced.

Singapore, another member of the CPTPP, is also in talks with South Korea, Malaysia, and New Zealand for resumption of air connectivity. (Singapore Airlines and Silk Air have been flying passengers from select destinations in Australia and New Zealand to Singapore’s Changi Airport throughout the pandemic.)

China, too, has been seeking to revive air travel. While China has recently set up a travel corridor with South Korea, it has also signed an agreement with Singapore for reciprocal travel for essential purposes – business and official. Initially, this arrangement will be for 6 provinces – Shanghai, Tianjin, Chongqing, Guangdong, Jiangsu, and Zhejiang (travellers will need to apply for a visa in advance, and get tested for the corona virus both before departing for China and after arriving there).

Vietnam, which removed its lockdown at the end of April and resumed domestic flights, is also reviving international travel with a few select countries, such as South Korea (South Korean students can enter the ASEAN country through a special permit).

The EU is seeking to resume air connectivity with non-EU countries by the 1st week of July (the EU has already opened travel within EU member states), and it is likely that air connectivity with countries considered low risk will also resume shortly.

The resumption of travel will of course be undertaken on a step-by-step basis. Japan, for instance, has indicated that it will open its air connectivity with other countries in stages; first for businessmen, then students, and finally tourists. What is fascinating to observe is that the narrative with regard to the three t’s is not being set by the West, it is being set by Asian countries. Even within Asia, it is not just a China-driven narrative. Japan is playing an important role and, from within ASEAN, it is not just Singapore but Vietnam as well which has emerged as an important stakeholder.

Conclusion

In a post-corona world there are likely to be a number of changes, with geopolitical and economic dynamics in Asia likely to witness a significant shift.

What is also interesting to note is that travel and technology – two of the three t’s – were broadly thought of as key ‘soft power’ tools prior to the Covid-19 pandemic. Post the pandemic, there will be a strong ‘hard Power’ component to these two t’s. While in the context of travel, each country will be cautious with regard to opening up air travel, and stick to linkages with countries that have managed to control the corona virus; as far as technology is concerned, due to the rising tensions with China, the creation of alternative technologies is likely to be viewed as a security requirement (trade, the third t, had already acquired a strong strategic component even before the outbreak of the pandemic).

What will a post-pandemic British foreign policy look like?

Introduction

The United Kingdom’s post-corona foreign policy is likely to be driven by some crucial economic factors. On the one hand, it will continue to work closely with countries like the United States, Japan, Australia, and India to reduce its dependence upon China. On the other hand, the UK cannot totally bank on the US for achieving its economic goals, given the unpredictability of US President Donald Trump.

The UK needs to look at new Free Trade Agreements (FTA’s) and also be part of multilateral arrangements, such as the Trans Pacific Partnership, which will enable it to diversify its supply chains.

Important upcoming economic decisions

Given the changing environment of the post-corona world, London now has an eye on enhancing self-sufficiency and reducing reliance on China.

The Boris Johnson government has set up a committee — ‘Project Defend’ — which seeks to study the UK’s economic dependence with hostile countries (with a specific thrust on China), especially for sensitive imports. Based on the findings of Project Defend’s report, for example, the UK will work towards the relocation of pharmaceutical companies. While changing supply chains overnight may not be an easy task, the Boris Johnson Administration has made an important decision.

The UK’s recent decision on Huawei

The Boris Johnson Administration has also recently decided to reduce Huawei’s participation in the 5G network to zero by 2023. In January 2020, Boris Johnson had given a go ahead to Huawei’s participation in the ‘non-core’ element of the 5G network, with important restrictions, as well as a 35% market share cap. This decision drew flak from a section of Conservative Party politicians, who for long have been arguing that the UK needs to be cautious with regard to close economic ties with China, since this has serious security implications. The Trump administration had also expressed its displeasure with the Boris Johnson administration. The US President and senior officials in his administration have publicly expressed their unhappiness, saying that this decision could have an impact on security cooperation between both countries.

In the aftermath of the coronavirus pandemic, ties between the UK and China have gone downhill (senior officials of the Johnson administration have criticized China for suppressing information with regard to the outbreak of the pandemic), and Johnson’s decision was driven by two factors: 1) increasing pressure from Conservative MP’s who had threatened to vote against the government’s decision, and 2) the fact, that the UK is keen to go ahead with an FTA with the US (there have been differences between the US and UK, however, on the issue of the FTA, with the US urging the UK to make a choice between China and the US).

Apart from this, the recent US sanctions imposed on Huawei have also played a role in Johnson’s decision of reducing Huawei’s participation by 2023 (the Trump administration has made it compulsory for foreign manufacturers using U.S. chipmaking equipment to obtain a license before being able to sell chips to Huawei).

D10 network

Interestingly, the UK has also proposed that a group of 10 countries, dubbed as D10, joins hands to provide an alternative to Huawei’s 5G network and other technologies with the aim of reducing dependence upon China. The proposed grouping would consist of the US, Italy, Japan, the UK, South Korea, India, Germany, France, Canada, and Australia.

The UK has thus taken the lead in providing an alternative to the now bipolar status quo. Significantly, Trump has also stated that he is keen to expand the G7 and include not only India and South Korea but Russia as well.

UK also keen to play an important role in the TPP

While on the one hand the UK is trying to reduce its dependence upon China by joining hands with the US and like-minded countries, on the other the UK is also seeking membership within the Comprehensive and Progressive Agreement for Trans Pacific Partnership (TPP), which consists of 11 members (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam).

While the idea of the TPP was proposed by former US President Barack Obama, the first decision taken by Trump after his electoral triumph in 2016 was to withdraw from the agreement. Japan has been playing an important role in the TPP, and efforts are being made to expand its membership so that democratic dependence on China is still further reduced.

The UK faces numerous challenges and while it does need to reshape its economic relationship with China, London recognizes that this cannot be done overnight, so enhancing FTAs and joining the TPP are important steps in geopolitical context.

From a purely strategic perspective, the UK-US relationship has been important and with Johnson and Trump at the helm, and increasing convergence on attitudes vis-à-vis China, this is likely to get further strengthened (though of course there will be differences on both economic and geopolitical issues). The idea of the D10 grouping mooted by the UK has also sent a clear message that in spite of numerous economic challenges, the UK is keen to emerge as an important player, in its own right, in the post-corona world order.

The Private Production of Defense

Lucas’ post reminded me of a piece that I wrote for his website ThinkIR, in 2013. Most of it I re-used in my book Degrees of Freedom (2015). Of course it is also a piece on its own, that readers of NoL may find of interest. Thanks Lucas!

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It is fun to think about the almost unthinkable. Therefore this contribution is about the idea that no state is needed to provide military security against foreign attack. In modern times the idea goes back to at least the French-Belgian economist Gustave de Molinari and his 1849 pamphlet The Production of Security. The most prominent current defender of this idea is the German economist Hans-Herman Hoppe, a leading anarcho-capitalist thinker, in his essay The Private Production of Defense (also see The Myth of National Defense, which was edited by Hoppe).

Hoppe rightly notices (p.1) that the legitimacy of the modern state is strongly related to the belief in collective security. Following Rothbard in The Ethics of Liberty, he argues that states will always expand, due to the governmental monopoly to tax its inhabitants. This also applies to governments that only have the limited task of protection against aggression and administrating and justice. The only proper solution is therefore to abolish the state altogether, in order to ensure true liberty and individual justice. Consequently, this also means that the provision of security needs to be privatized, as Hoppe does not expect the world to turn into a peaceful utopia (pp. 1- 5).

So how would this work? Basically, to regard the production of security as an insurance, where the expenditures for defense are to be paid by premiums paid by individuals (pp.5-8). The insured people can choose from competing insurance firms, just like in other parts of the insurance market. This is not as improbable at it may seem at first sight. Importantly, insurance companies are already used to deal with risk and other real world dangers. There are already many private security companies in existence, also at the battlefield. The cost of defense in relation to other parts of the insurance market appears large, but do not discount the idea beforehand. For example: Dutch defense expenditure in 2013 is around 7 billion Euro, less than 1% of GDP, while annual turnover of the two largest insurers is around 20 billion. Of course Hoppe would point out that the 7 billion in current defense expenditures needs to be returned to the taxpayers, hence widening the premium base. Presumably, this would work the same in other countries with smaller economies and/or smaller financial sectors (but see the remarks below).

A world without states, but with private security insurance is less war prone, Hoppe argues (p.11-12). Insurers will have an interest in keeping costs down, and will therefore only make unprovoked attacks insurable. People who provoke, or have known to provoke violence in the past, will be excluded from the insurance. After a while, the number of uninsured people will be small. They will face big defense insurance companies if they violate somebody’s property, making this unlikely to happen often, in contrast to interstate war. Yet in my view here Hoppe relies too much on his stated view on human nature: man as rational animal.

A related main defect of the essay is its focus on the role of insurers and their (economic) incentives. This is fine, but the argument quickly loses any of the convincing power it has when Hoppe turns to an analysis of international war. Or more precise, a violent conflict between a free territory, defended by one or more insurance companies, and a state, financed by compulsory taxation. He simply asserts (p. 14) that the state would be in a disadvantage because it is less efficient and that its leaders would lose their legitimacy, because they necessarily fail to convince the population of the justification of an attack on the inherently peaceful free territory.

Yet if an attack would still happen, Hoppe continues, the state-led army of specialists would not only face the defense force of the insurance company (or several insurers and re-insurers cooperating), but also an armed population (p.15). Without much analysis he simply asserts the companies will always be more efficient and also capable to counter all attacks by any state, perform counter-operations in the state territory and be able to kill its leaders, while making sure to minimize any collateral damage. All because they have to justify their insurance fees.

That is as far as Hoppe goes in his argument. He offers no further analysis or other scenario’s, no additional arguments, does not provide any international political analysis, none whatsoever. Only the fact that the insurance companies are private suffices for Hoppe as they must be more efficient and thus able to overcome all possible attack. That is too simplistic, as just three examples illuminate.

Hoppe overlooks some important geopolitical aspects. Take size of territory and population for instance. How likely is it really that a small free territory, say the size of Luxembourg, or The Netherlands for that matter, would be able to raise enough insurance premiums to enable a good defense structure to counter attacks by much larger states? There is a difference between collecting enough money to match current defense expenditures and ensuring defense against all possible attacks, especially given the anarcho-capitalist dislike of international alliances such as NATO.

Apparently Hoppe thinks all necessary technology is either invented by the research and development people of the insurance company, or freely available at the market. This is improbable as far as the state-side of the argument concerns, given today’s relative secrecy in military procurement. Also, the cooperation between insurance companies may fail in this respect. If one company has a superior weapon system, it will be a ground for competition with the other insurer(s). The superiority of one company may quickly make it a monopolist. It may become a threat to its insured, just like states may be threats to their taxpayers. Once the armed forces of the private insurer are in full operation it only takes a powerful CEO with his or her own agenda to turn things sour. Just the fact of private financing does not make much difference.

Also, does economic efficiency always trump state inefficiency? The history of warfare is full of examples where the supposedly superior army loses unexpectedly. So if the state deals a decisive blow it effectively robs the remains of the insurance company, and it’s successors, of its premium paying clients.

To conclude, for liberty loving people the prospect of stateless private security may be tantalizing. However, the quality of the argument as presented by Hoppe thus far is poor and unconvincing. His theoretical arguments largely stem from economics and overlook other relevant facts and arguments, including those from IR. Hoppe’s private production of defense remains a fairy tale.


Links:
Molinari:
http://mises.org/document/2716/The-Production-of-Security

Hoppe:
http://mises.org/document/1221/The-Private-Production-of-Defense

http://mises.org/document/1092/Myth-of-National-Defense-The-Essays-on-the-Theory-and-History-of-Security-Production

Rothbard:
http://mises.org/document/1179/The-Ethics-of-Liberty

First Contact, libertarianism, and astropolitics

Permit me to speculate.

Earth is currently composed of 193 or 195 states, depending on who you ask. There are several more states that have an ambiguous status within the world order. Of these states, dozens have bureaucracies dedicated to scientific research in outer space.

Now suppose there is life on a planet close to ours, say on Proxima centauri b, and suppose further that the life there harbors an intelligence that mirrors our own.

How many countries would be on Proxima centauri b? Given how difficult it has been here on Earth to establish global dominance, I have to assume that the same difficulties face other extraterrestrial life in nearby star systems. I assume this because if they haven’t been able to contact us, or are unable to contact us, they are likely on the same playing field as us when it comes to intelligence.

What if the United States or its much more libertarian successor, the Federation of Free States, allies with a country on Proxima centauri b, while China allies itself with another country on proxima centauri b and Russia allies itself with a third Centaurian country?

I think this would be the most realistic scenario for First Contact. If there are species out there with higher intelligence and better technology, I don’t think they would even bother with us or with the Centaurians, not even if they needed our help. Would we, as humans, ask for the help of baboons if we were stranded in the desert with a broken arm? Have we ever thought it necessary to eliminate another species simply because it existed or even because it might pose a future threat? I think those of us who can achieve the same type of reasoning based on the same limited cognitive ability of our brains will be brought together in our section of the Milky Way.

Basically, I think when First Contact happens, it will be the same ol’ geopolitics playing out, but instead of being geopolitics it will be astropolitics. All the more reason for libertarians to eschew unilateralism in favor of federation.

Cixin Lui’s trilogy has been on my mind, as has Neill Blomkamp’s short film Rakka.