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1. Stabilisation and the Central Sahel

Author:
Ekaterina Golovko and Kars de Bruijne
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The international community hasn’t been successful in its efforts to support ‘stabilisation’ in the central Sahel. To learn lessons from recent engagement, this policy brief seeks to make three contributions to an already long list of ‘strategic misfits’. First, that ‘stabilisation responses’ are built on the wrong assumption “to bring back the state” and “expand state presence”, without serious work on how to reform the state that had to be brought back. Second, that external actors – and in particular Western governments – consistently overestimated their ability to influence and effect real change in the region and have to become more modest in their objectives. Third, that there is an urgent need to apply these lessons to the new area of policy attention: coastal countries of West Africa and the fight against violent extremism. This policy brief calls for a stronger reflection on what decades of largely failing Sahelian policy can tell us about how to engage with Coastal West Africa.
Topic:
Foreign Policy, Countering Violent Extremism, and Stabilization
Political Geography:
Africa and Sahel

2. UNDP’s stabilization programme in and around Mosul, 2017–2022

Author:
Hugo de Vries
Publication Date:
08-2024
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Between 2014 and 2017, the occupation of northwestern Iraq by the Islamic State in the Levant and the military campaign to defeat it left chaos and destruction in its wake. Six million people were displaced and damages ran to an estimated USD 88 billion. At the time, the international community swiftly threw its support behind the Iraqi government to reconstruct the affected areas. This paper tells the story of a major programmatic contribution to the reconstruction effort by assessing the rollout, implementation and impact of UNDP’s USD 1,5 billion USD Funding Facility for Stabilization (FFS) with a focus on Mosul. Tracing the frontline as it advanced, the program worked via the private sector to rebuild thousands of houses, water treatment plants, electrical stations, hospitals, schools and other key infrastructure and provided thousands of temporary jobs to people. To accomplish this, it had to negotiate security arrangements, deal with the limited capacity of the Iraqi state and above all, anticipate corruption by different actors. While the FFS was a programmatic success in terms of its own original objectives, one can also argue that the program did not significantly increase trust in the Iraqi government, positively influence Iraq’s political economy or mitigate local conflict dynamics ‘beyond the numbers’ of its concrete deliverables. As the paper has been written by the FFS’s former program coordinator in Mosul, it provides an insider perspective into the operational dynamics of a major UN program.
Topic:
Humanitarian Aid, Infrastructure, United Nations Development Program (UNDP), and Stabilization
Political Geography:
Iraq, United States of America, and Mosul

3. Stabilization Policies After the Sahel Coups

Author:
Florence Schimmel and Armin Schäfer
Publication Date:
06-2024
Content Type:
Commentary and Analysis
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The Sahel is increasingly ruled by authoritarian military regimes; co-­operation with them towards goals such as stability and peace is becoming more and more difficult for Germany. Following the recent coups in Mali and Niger in particular, the question now is whether and how the previous stabilization policies can be continued. For around ten years, Germany, together with the Netherlands, the United Kingdom, and the United States, has been pursuing stabilization policies that focus on strengthening fragile governments. In the future, Germany must more clearly define which partners are considered legitimate and which fundamental principles should apply, notwithstanding the high degree of context-specificity.
Topic:
Security, Foreign Policy, Coup, and Stabilization
Political Geography:
Africa, United Kingdom, Germany, Sahel, and United States of America

4. Towards a Post-neoliberal Stabilization Paradigm: Revisiting International Buffer Stocks in an Age of Overlapping Emergencies Based on the Case of Food

Author:
Isabella Weber and Merle Schulken
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The neoliberal stabilization paradigm of interest rate hikes and austerity left economies around the world unprepared for the shocks to essentials experienced in the overlapping emergencies of war, conflict, climate change, and pandemic. This presents a window of opportunity for a paradigm shift. Neoliberalism became hegemonic through stabilization policy. Post-neoliberalism will require an alternative stabilization paradigm. In this paper we revisit the classic reasoning for buffer stocks by Keynes, Kaldor, Graham, and others as a starting point for this paradigmatic shift. At the core of the neoliberal stabilization paradigm are the assumptions that competitive markets are efficient and that relative price changes ought to be separated from macro-outcomes. In contrast, buffer stock reasoning starts from the inherent instability and inefficiency of commodity markets. Price volatility in essential commodities can lead to sellers’ inflation because of the interaction with administered prices in the industrial sector and can hamper growth and development prospects. We illustrate that the buffer stock reasoning can help understand the 2020-2023 world food price crisis and propose a multi-layered buffer stock system for food staples as a steppingstone in a gradualist transition to post-neoliberalism and a tool for a green transformation of agriculture.
Topic:
Food Security, Finance, Neoliberalism, Macroeconomics, and Stabilization
Political Geography:
Global Focus

5. Can Price Controls Be Optimal? The Economics of the Energy Shock in Germany

Author:
Tom Krebs and Isabella Weber
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
In the wake of the global energy crisis, many European countries used energy price controls to fight inflation and to stabilize the economy. Despite its wide adoption, many economists remained skeptical. In this paper, we argue that price controls should be part of the policy toolbox to respond to shocks to systemically important sectors because not using them can have large economic and political costs. We put forward our arguments in two steps. In a first step, we analyze the impact on the German economy and society of the global energy crisis that followed Russia’s attack on Ukraine in February 2022. Our analysis shows that energy shocks matter. Specifically, the one-year GDP loss of the energy crisis 2022 amounts to 4 percent and is of a comparable magnitude to the short-run output losses during the COVID-19 crisis 2020 and the global financial crisis 2008. In addition, during the energy crisis 2022 inflation rates rose dramatically and real wages dropped more than in any other year in post-war Germany. There are also clear signs that the crisis is causing severe long-term economic damage (hysteresis effects). At the beginning of 2024, GDP is 7 percent and real wages are 10 percent below their pre-COVID-19 trend. We argue that the German government handled the immediate response to the energy shock well, but subsequently waited too long to introduce an energy price brake in 2022. This failure to act decisively in response to heightened economic insecurity coincided with a strong rise of the approval rates of the far-right AfD in the summer of 2022. We also show that the German energy price brake was an effective price stabilization policy for households, but did not protect the industrial base appropriately making it more likely that the German economy will continue to stagnate. In a final step, we turn to the use of price controls as an optimal policy response to an energy shock within a general equilibrium framework. We develop a simple production model with an energy sector and shows that price controls are socially optimal whenever selffulfilling expectations generate endogenous price uncertainty in the wake of an energy shock. We also link our analysis to the so-called sunspot literature that was developed in the 1980s as a response to the rational-expectations revolution in macroeconomics. Finally, we use our theoretical analysis to shed some light on the economic policy debate and the resistance of German mainstream economists to the introduction of energy price controls in 2022.
Topic:
Economics, Inflation, Macroeconomics, Price Control, Energy, and Stabilization
Political Geography:
Europe and Germany

6. Economic Impacts of the Sanctions on the Russian Economy and Stabilization Measures for Economic Cooperation between Korea and Russia

Author:
Minhyeon Jeong
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
There are concerns that the economic sanctions imposed by the West on Russia will continue even after the end of the Russia-Ukraine war, which began in 2022 and has since prolonged. This is because the nature of the war encompasses a multifaceted structure that cannot be easily explained by the mere clash of interests between Russia and Ukraine, the primary parties involved. Therefore, it may be overly optimistic to expect that the Western sanctions against Russia will be fully lifted following the conclusion of the war. If there is a high likelihood that the Western economic sanctions against Russia will be prolonged, it is necessary to systematically analyze the long-term impact of these sanctions on the Russian economy. Even though Russia's economic growth rates in 2022 and 2023 were more favorable than anticipated by the West, it cannot be definitively stated that the long-term effects of the sanctions will be negligible. This is because the intrinsic nature of the sanctions against Russia is to "impose economic isolation," suggesting that the prolonged duration of these sanctions is likely to have structurally adverse long-term effects on the Russian economy. Meanwhile, the Government of the Russian Federation is devising and establishing various domestic and international strategies in order to minimize the structural adverse impacts on the economy. By thoroughly re-viewing these domestic and international strategies, it is essential to systematically understand the direction of development within the Russian economy and the demand for international economic cooperation. This understanding will allow for the rapid restoration of economic cooperation between Korea and Russia, and the enhancement of cooperative synergy amid prolonged sanctions. Given this backdrop, this manuscript aims to summarize three key conclusions from the work of Jeong et al. (2023). First, we provide a theoretical and empirical analysis of the long-term impact of Western sanctions on the Russian economy. Second, we review the foreign and domestic policies of the Russian Federation in response to the prolonged sanctions following the war. Third, based on the findings of the first and second analyses, we explore measures to stabilize economic cooperation between Korea and Russia under the anticipated prolonged sanctions.
Topic:
Sanctions, Economy, Economic Cooperation, and Stabilization
Political Geography:
Russia, Asia, and South Korea

7. Economic Cooperation: A Driver of Stability in the MENA Region?

Author:
Valeria Talbot
Publication Date:
12-2024
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
The Middle East and North Africa (MENA) region faces a complex landscape where economic cooperation is increasingly linked to regional stability. For decades, economic factors have influenced the foreign policy of MENA countries. However, since 2020, shared economic challenges – exacerbated by the Covid-19 pandemic, oil market fluctuations and the global repercussions of Russia’s invasion of Ukraine – have spurred initiatives for rapprochement. The October 7 attacks and subsequent Gaza and Lebanon conflicts pose a threat to such progresses. Can economic partnerships serve as a basis for lasting peace in MENA region? What forms of collaboration could enhance stability in the face of persistent security challenges? What are the primary constraints and challenges that limit the potential of economic cooperation as a stabilizing force in the MENA region?
Topic:
Foreign Policy, Economic Cooperation, COVID-19, Armed Conflict, Abraham Accords, Russia-Ukraine War, and Stabilization
Political Geography:
Iran, Middle East, North Africa, and Gulf Nations

8. Sahel: Why stabilization efforts should address internal displacement

Author:
Ekaterina Golovko
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The conflict situation in the Sahel has created one of the fastest growing displacement crises in the world with more than 2.5 million people displaced over the past decade. International donors have largely dealt with the crises by supporting humanitarian efforts to provide emergency aid to IDPs. This policy brief argues that this response is important but ultimately inadequate; donors should start viewing IDPs as a key element to enable (regional) stability. Moving IDPs from the exclusive realm of humanitarians to stabilization, brings to the fore a policy tension that carries the promise a policy reconciliation. National governments in the Sahel push for the return of IDPs to their regions of origin in an effort to secure, re-populate and ‘stabilize’ abandoned territories (a effort that remains complex in a dire security context). But those international donors who do ‘stabilization’ leave IDPs completely off the radar and miss their constructive potential. This brief calls for international partners to pay greater attention to the crisis of internal displacement in the Sahel. Such policies have to make IDPs themselves one of the actors that can help bring ‘stability’ to conflict affected settings and, in that way, also speak to their (humanitarian) needs by providing long-term prospects of rebuilding their lives and livelihoods.
Topic:
Humanitarian Aid, Displacement, and Stabilization
Political Geography:
Africa and Sahel

9. Out of the Box: How to Rebalance U.S. Somalia Policy

Author:
International Crisis Group
Publication Date:
06-2023
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
U.S. President Joe Biden promised to end the “forever wars” launched after the 9/11 attacks. In Somalia, however, his administration has reinvigorated a flawed military-first approach to battling Islamist militants. Washington should complement those efforts with others aimed at stabilisation and political reconciliation.
Topic:
Foreign Policy, Violent Extremism, Islamism, Reconciliation, and Stabilization
Political Geography:
Africa, North America, Somalia, and United States of America

10. China's Contribution to the Stabilization of 'Democratic' Afghanistan

Author:
Lukasz Jurenczyk
Publication Date:
08-2022
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The People’s Republic of China and Afghanistan established diplomatic relations in 1955. In the following decades of the Cold War, however, relations between the countries were limited, which was due to the main directions of the foreign policies of both countries. Afghanistan focused on balancing the influence of the USSR and the US on its territory. China, in turn, adopted a rotational stance towards superpowers, and in the region, it strengthened political, economic and military cooperation with Pakistan (Zaborowski 2012, 142). In the 1970s, China supported the pro-communist Shu’lai Javid (Eternal Flame) party operating in Afghanistan. Members of Parcham, the pro-Moscow wing of the People’s Democratic Party of Afghanistan (PDPA), contemptuously described its members as Maoists (Levi-Sanchez 2017, 46). During the Soviet occupation of Afghanistan, Beijing allowed Xinjiang Uyghur Muslim fighters to pass through the Wakhan Corridor into Afghanistan to support the mujahideen insurgency there. At that time, political relations between states were maintained only at the consular level.By February 1989, the Soviets withdrew their troops from Afghanistan, and in September 1992 the last communist president - Mohammad Najibullah (09.1987-09.1992) was overthrown. However, this did not end the civil war, as individual mujahideen groups fought for influence in the country. The war destabilized not only Afghanistan, but also the border areas of neighboring countries, including the Western border of the PRC. In 1992, the President of Afghanistan - Burhanuddin Rabbani (06.1992-09.1996) tried to normalize relations with Beijing, but due to increasing military operations in 1993 China withdrew its diplomatic representation from Kabul. When the Taliban took power in Afghanistan in 1996, the country fell into international isolation in which China participated. During the Taliban regime, Afghanistan hosted al-Qaeda, which trained around 1,000 Uyghur fighters in the camps there. In Beijing, this caused serious concern and encouraged the Chinese authorities to intensify security cooperation with Pakistan. According to leaders of the Chinese Communist Party (CCP), most of the security problems in the Muslim-dominated Xinjiang province were to be caused by neighboring Afghanistan. For example, the 1997 incidents in the province, known as the Yining riots, were considered to be Taliban-inspired (Cheema 2002, 308)
Topic:
Diplomacy, Hegemony, Democracy, and Stabilization
Political Geography:
Afghanistan, China, Middle East, Asia, North America, and United States of America