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21. Building a Mature UK Trade Policy

Author:
David Henig
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Global Britain has not delivered according to the hopes expressed by supporters of leaving the EU. Trade with the rest of the world has not grown to make up for leaving a bloc with seamless trade, early Free Trade Agreements with Australia and New Zealand are of minor economic significance, and it is hard to discern much of a strategy beyond completing a few more similar deals. Meanwhile the world of trade policy is transformed since 2016, negatively. The US has essentially declared its national interests to be more important than global rules, while the EU wants to act unilaterally as the global regulator. In both, the climate crisis is being used as an excuse to reintroduce protectionist measures threatening economic damage and global stability. Expectations of what a UK outside of the EU could achieve were exaggerated, but nonetheless the country could be doing a lot better in its trade policy. There is no good reason for such tensions as exist with a broad range of frustrated stakeholders, the absence of clear purpose on UK strengths such as services, or the defensiveness that seemingly takes pride in secrecy and resistance to proper scrutiny. Adjustment time was inevitable, but six years should have been enough.
Topic:
Economics, European Union, Free Trade, and Trade Policy
Political Geography:
United Kingdom and Europe

22. Authoritarian kleptocrats are thriving on the West’s failures. Can they be stopped?

Author:
Francis Shin and Ben Judah
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
A hidden web of power revealed itself to Internet users in early 2022. Following a brutal government crackdown in Kazakhstan in January, anyone using open-source flight-tracking websites could watch kleptocratic elites flee the country on private jets. A little more than a month later, Russia’s invasion of Ukraine brought a new spectacle: social media users were able to track various oligarchs’ superyachts as they jumped from port to port to evade Western sanctions. These feeds captured a national security problem in near real time: In Eurasia and beyond, kleptocratic elites with deep ties to the West were able to move themselves and their assets freely despite a host of speeches by senior officials, sanctions, and structures designed to stop them. Kleptocratic regimes—kleptocracy means “rule by thieves”—have exploited the lax and uneven regulatory environments of the global financial system to hide their ill-gotten gains and interfere in politics abroad, especially in the United States, the United Kingdom, and the European Union. They are aided in this task by a large cast of professional enablers within these jurisdictions. The stronger these forces get, the more they erode the principles of democracy and the rule of law. Furthermore, the international sanctions regime imposed on Russia in response to its invasion of Ukraine has little hope of long-term success if the global financial system itself continues to weaken. The West still has a long way to go to rein in the authoritarian kleptocrats who have thrived on the institutional dysfunction, regulatory failure, and bureaucratic weakness of the transatlantic community for far too long. We need to rethink not just how we combat kleptocracy, but also how we define it. Policy makers need to understand that authoritarian regimes that threaten transatlantic security are closely linked to illicit financial systems. As it stands, our thinking about how foreign corruption spreads is too constrained by stereotypes about kleptocratic goals and actions.
Topic:
Corruption, Diplomacy, Intelligence, Politics, Sanctions, Authoritarianism, Reform, European Union, Regulation, Finance, Economy, Rule of Law, and Russia-Ukraine War
Political Geography:
Russia, United Kingdom, Europe, Ukraine, Canada, and United States of America

23. Fossil Fuel Industry Phase-Out and Just Transition: Designing Policies to Protect Workers’ Living Standards

Author:
Robert Pollin
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper focuses on just transition policies targeted at supporting workers now employed in the fossil fuel industries and ancillary sectors within high-income economies. As a general normative principle, I argue that the overarching aim of such policies should be to protect workers against major losses in their living standards resulting through the fossil fuel industry phase-out. The impacted workers should be provided with three critical guarantees to accomplish this, in the area of jobs, compensation and pensions. Just transition policies should also support workers in the areas of job search, retraining and relocation, but these forms of support should be understood as supplementary. Within the framework of these broad principles, the paper first reviews experiences with transitional policies in Germany, the UK, the EU and, more briefly, Japan and Canada. A critical point that emerges is that these just transition policies do not provide the needed guarantees for assuring workers that they will not experience major living standard declines. The paper then describe an illustrative just transition program for workers that includes reemployment, income and pension guarantees, focusing on a case study for the U.S. state of West Virginia. The results show that the costs of the just transition program for West Virginia’s fossil fuel industry dependent workers will amount to an annual average of about $42,000 per worker, equal to about 0.2 percent of West Virginia’s GDP. I briefly summarize results from the seven other studies of U.S. states and for the overall U.S. economy. For the U.S. economy overall, the just transition program’s costs would total to about 0.015 percent of GDP. These findings demonstrate that providing a generous just transition program does not entail unaffordable levels of public spending. Robust just transition policies should therefore be understood as an entirely realistic prospect for all high-income economies.
Topic:
Political Economy, Labor Issues, European Union, GDP, Economy, and Fossil Fuels
Political Geography:
Japan, United Kingdom, Europe, Canada, and Germany

24. How Russia Went to War: The Kremlin’s Preparations for Its Aggression Against Ukraine

Author:
Kalev Stoicescu, Mykola Nazarov, Keir Giles, and Matthew Johnson
Publication Date:
04-2023
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
This report examines Russia’s preparations for its full-scale invasion of Ukraine: domestically, in Ukraine itself, in the global information domain, and in building its relationship with China. For Russia, crushing Ukraine’s quest for democracy was central to meeting its objectives of reshaping the post-Cold War order in Europe and globally, restoring its own status, and reconstituting the Russian empire and Russian world. Its preparations in the political and informational, military, and economic domains for a full-scale war in Ukraine were too extensive and overt to go unnoticed, but they were not acted upon. It is hard to avoid the conclusion that the evidence went against the dominant narrative in the West and was simply brushed aside. In the political and informational domains, Russia’s domestic preparations including cementing the regime’s authority, and taking advantage of the population’s Soviet nostalgia and aspirations for the restoration of the Russian world and the empire. Limited economic preparations were intended to safeguard Russia’s economy against current and future Western sanctions, while Russia’s extensive military preparations involved large-scale defence spending and extensive military modernisation efforts. Russia’s preparations beyond its own territory included: a campaign within Ukraine to divide society and discredit the democratically elected leadership; a campaign directed at the rest of the world about Ukraine, discrediting the country and its people as an object of sympathy and support in their resistance against Russia; and a campaign of intimidation designed to instil in western leaders and populations a fear of obstructing, impeding, or offending Russia. Russia also worked to build a relationship with China. China’s support is essential to Putin’s ambitions. But equally, China’s strategy for confronting the United States – which China cannot do alone – depends on Russia remaining at least a quasi-great power.
Topic:
Security, NATO, Development, Sanctions, Military Affairs, European Union, Resilience, and Information Warfare
Political Geography:
Russia, China, United Kingdom, Europe, Asia, and United States of America

25. UK-EU regulatory divergence tracker Q3 2023

Author:
Joël Reland
Publication Date:
10-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
UK in a Changing Europe’s series of regulatory divergence trackers provide an overview of where and how the UK has used its regulatory freedoms to diverge from EU regulation. It identifies and analyses the most significant cases of divergence between the UK and EU which have taken place since Brexit. It explains what the changes are, what impact they are having, and likely further consequences. This is the ninth edition of the regulatory divergence tracker, covering developments from August to October 2023. There are six cases of active divergence (where the UK, or some part of it, changes its rules); nine of passive divergence (where the EU changes its rules and the UK, or some part of it, does not follow); two of delayed divergence (where active divergence is delayed); and five of active alignment (where the UK takes steps to align more closely with EU rules, systems or programmes). In a what is now a recurring theme under Prime Minister Rishi Sunak, the UK has opted to delay some major cases of upcoming divergence.
Topic:
European Union, Regulation, and Divergence
Political Geography:
United Kingdom and Europe

26. Exploring ‘Bregret’: public attitudes to Brexit, seven years on

Author:
Ines Wittke, James Frayne, Seb Wride, and Sophie Stowers
Publication Date:
10-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
Brexit refuses to go away. Over seven years since the referendum, and over three and a half since the UK finally left the European Union, the issue continues to generate headlines and spark furious debate. One reason for this is a sense that public opinion is still evolving. There has been much talk of ‘Brexit regret’ among Leave voters. Given this, Public First and UK in a Changing Europe decided to talk to Leave voters to hear from them what they thought. In a survey carried out in May and June 2023 and a series of focus groups held between May and September, a series of questions were posed to them about what they think about Brexit, how it has gone, whether they have changed their minds and what they think the future holds. This report describes the findings. DOWNLOAD THE REPORT
Topic:
Politics, Public Opinion, European Union, Brexit, and Society
Political Geography:
United Kingdom and Europe

27. Reviewing the Trade and Cooperation Agreement: potential paths

Author:
Jannike Wachowiak and Joël Reland
Publication Date:
09-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
On Christmas Eve 2020 the UK and EU finally agreed a treaty to regulate their relationship post Brexit. The Trade and Cooperation Agreement was provisionally applied from 1 January 2021 and formally ratified in April. Among its numerous provisions, the treaty contains Article 776 stating that, ‘The Parties shall jointly review the implementation of this Agreement and supplementing agreements and any matters related thereto five years after the entry into force of this Agreement and every five years thereafter.’ Within the UK at least, many are looking to this review to deliver significant changes to the relationship. This report examines those provisions within the TCA and reflects on what might or might not reasonably be achieved in the context of the review. The report proposes three models which the review could follow: a technical check, acting on unfulfilled commitments, and widening the scope of the TCA.
Topic:
Treaties and Agreements, European Union, Trade, and Economic Cooperation
Political Geography:
United Kingdom and Europe

28. The investment gap: the UK’s efforts to replace the European Investment Bank

Author:
Peter Jurkovic and Stephen Hunsaker
Publication Date:
09-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
Following Brexit, the UK lost access to funding from the European Investment Bank. In this report, Stephen Hunsaker and Peter Jurkovic detail the impact this has had on the UK development finance landscape. The report outlines not only the role that development banks play in providing longer term financing for projects the private sector might be reluctant to support, but also the specific role the European Investment Bank played in infrastructure investments in the UK prior to 2020. It also explores the potential and ongoing implications of a lack of access to that investment despite the existence of a number of UK based banks intended to fill the gap.
Topic:
European Union, Finance, Economy, Brexit, Investment, Banking, and European Investment Bank
Political Geography:
United Kingdom and Europe

29. Policy landscape 2023

Author:
Ben Zaranko, Jonathan Portes, Mike Brewer, Paul Cheshire, and Carole Willis
Publication Date:
09-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
What are the public policy challenges confronting the UK? What plans do the parties have for addressing them? To what extent are these plans fit for purpose? As Parliament returns from its summer recess, Full Fact and UK in a Changing Europe have partnered to produce a series of evidence led, research-based assessments of the key issues that politicians will confront. To do this, we brought together a group of leading experts from respected institutions including the Health Foundation, the Institute for Fiscal Studies, and the Royal United Services Institute. We asked each of them to consider, based on the findings of their own research, the challenges the country faces in their area of expertise, the immediate and longer-term issues politicians will need to address, and the potential implications of any choices they might make. We selected the issues based on the Ipsos issues index, and added security, defence and foreign affairs, which did not figure amongst the public’s priorities in July of this year. The intention of the collection is to inform and not persuade. Each article in this collection is the responsibility of its author.
Topic:
Climate Change, Education, Health, Politics, European Union, Economy, Brexit, Economic Growth, Public Policy, Fiscal Policy, Housing, and Standard of Living
Political Geography:
United Kingdom and Europe

30. UK-EU relations tracker: April – June 2023

Author:
Cleo Davies and Jannike Wachowiak
Publication Date:
07-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
This is the second edition of the UKICE UK-EU Relations Tracker, covering developments in relations between the UK and EU and between the UK and EU member states from April to June 2023. This edition looks at key developments in the relationship since the formal adoption of the Windsor Framework on 24 March 2023 which had raised hopes for a reset in relations. Whilst some progress has been made within the framework of the Trade and Cooperation Agreement (TCA), other areas remain stalled.
Topic:
Treaties and Agreements, European Union, Brexit, and Trade
Political Geography:
United Kingdom and Europe