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2141. Putin's reactive reforms: Unfavourable conditions are forcing the Kremlin to change the rules of the game

Author:
Sean Roberts
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Following Vladimir Putin's presidential election victory in March 2012, the Russian political system has undergone significant change. The latest changes affect the way regional elections are conducted. However, a number of puzzles remain, not least the intentions of the Putin administration. Alongside liberalising reforms, such as the return of direct elections for regional governors and the easing of party registration requirements, we see new restrictions that close the political field. Nonetheless, the events of the past 20 months do reveal a distinct change in the reform process, as the Putin administration reluctantly adjusts to unfavourable political and economic conditions. In Putin's first two presidential terms, 2000-2008, reform was 'progressive', aimed at extending the Kremlin's power and authority. The latest changes, in contrast, are 'reactive' and involve an inevitable loss of control over political processes. One immediate implication is that political processes will become less predictable, as the Kremlin tries to reorganise its system of governance. But, in the longer-term there is a danger that the use of political reform as a substitute for democratic change will undermine the legitimacy of the entire political system.
Topic:
Corruption, Democratization, Political Economy, and Governance
Political Geography:
Russia

2142. European Defence Under Scrutiny: What can be expected from the European Council?

Author:
Tuomas Iso-Markku
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The decision to place security and defence policy on the agenda of the December European Council and the intensive pre-summit preparations have given renewed impetus to this policy area and raised the level of expectations ahead of the meeting. While there is now widespread agreement among the member states on the main challenges facing the EU in the area of security and defence, conflicting political and economic interests still exist and continue to hamper the Union's efforts. The December summit is unlikely to engage in a major strategic debate, but it will discuss steps to improve the implementation of the Union's security and defence policy, to enhance cooperation in the area of capabilities, and to support the European defence industry. A major novelty is the European Commission's stronger involvement, which remains controversial, however. The most crucial task for the EU heads of state and government is to translate the momentum created by the pre-summit process into a lasting commitment on the part of all actors involved, by putting forward binding timelines, specific targets and concrete follow-up projects.
Topic:
Security, Foreign Policy, Defense Policy, and Arms Control and Proliferation
Political Geography:
Europe

2143. UN Statebuilding at a Turning Point: What's new about the intervention brigade and peacekeeping drones?

Author:
Touko Piiparinen
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Last March the UN Security Council authorised the so-called Intervention Brigade to undertake 'targeted offensive operations' against illegal armed groups operating in the Eastern part of the Democratic Republic of the Congo (DRC). The Brigade, which undertook its first operations in August, differs from traditional UN peacekeeping in terms of its robust mandate and mobility. The UN has simultaneously adopted a new technology, unmanned aerial vehicles (UAVs), in the DRC, which represents the first-ever use of UAVs as a part of UN peacekeeping. UAVs will be deployed in the DRC at the end of November, and start operating in early December The Intervention Brigade and UAVs have been hailed as a turning point in UN peacekeeping. However, they should not be perceived as completely new or standalone instruments of UN conflict management. They could instead be best understood as a continuum and extension of the long held state building doctrine applied by the UN. These new instruments enable the UN to perform one of its key functions of state building and protection of civilians, namely controlling and policing the whole territory of a state where an intervention has been undertaken more effectively than before. The lessons learned from the UN peace operation in the DRC indicate that the UN state building doctrine remains self-contradictory on account of the tendency of UN state building missions to spill over into wars and the mismatch between the ambitious goals set for state building and the chronic lack of resources. The Intervention Brigade and UAVs can potentially help the UN to resolve that mismatch by enhancing the UN's state building and protection capacities. However, they cannot resolve the other major disadvantage of state building, namely collateral damage inflicted in state building wars, and may even aggravate that problem.
Topic:
Conflict Resolution, Development, Humanitarian Aid, Science and Technology, Fragile/Failed State, and Peacekeeping
Political Geography:
Africa

2144. Updating The EMU: Differentiated economic integration in the European Union

Author:
Samu Kurri
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The financial and economic crisis has reinforced the two-layer economic integration structure in the EU. Many of the new rules and structures created during the crisis have focused on a solution to the euro crisis and are thus euro area-specific. There is little evidence, however, that the situation would have dramatically changed compared to the Maastricht EMU. All of the changes are still in line with the basic idea that all EU countries will join the euro when they are ready to do so. One of the key questions in the near future is likely to centre on the contours of the euro area specific decision-making, its relationship to the EU as a whole, and its institutions and procedures. Even if the Euro group remains 'formally informal', it has managed to transform itself into a de facto institution within the EU, and its role and weight is likely to increase rather than decrease.
Topic:
Debt, Economics, Monetary Policy, Financial Crisis, and Reform
Political Geography:
Europe

2145. The WTO Under Pressure: Tackling the deadlock in multilateral trade

Author:
Marikki Stocchetti and Johanna Jacobsson
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Multilateral trade liberalisation is in crisis. The WTO's ambitiously named Doha Development Round has been ongoing for more than a decade. Only a few limited issues remain on the negotiation agenda. While the round is being increasingly declared dead even by WTO members themselves, the same countries are concluding deeper trade agreements than ever before. Such progress, however, takes place at the bilateral and regional level. Another major development is the appearance of deep regulatory issues on the trade agenda. The shift from customs tariffs to countries' internal policies requires a certain like-mindedness from negotiation partners and poses challenges for national decision-making policies. Developing countries have gained less from multilateral trade liberalisation than what they had hoped for. The shift towards more fragmented trade regimes makes them even more prone to remain bystanders in global trade. At the WTO's next ministerial conference in Bali, progress on agriculture, trade facilitation and the treatment of the poorest countries would give a much-needed signal that the WTO can still benefit all of its members.
Topic:
Economics, International Cooperation, International Organization, International Trade and Finance, Treaties and Agreements, and World Trade Organization
Political Geography:
Europe

2146. The Asset Quality Review and Capital Needs: Why re-capitalise banks with public money?

Author:
Daniel Gros
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
There are three aggregate numbers that describe the problem the Single Supervisory Mechanism (SSM) is inheriting: the 130 banks under its direct supervision hold assets worth 250% of the euro area's GDP, their capital is equivalent to only 4% of their assets' value and they have made zero profits, in the aggregate, over the last four years.
Topic:
Debt, Economics, Markets, Financial Crisis, and Reform
Political Geography:
Europe

2147. Net Neutrality and Mandatory Network-Sharing: How to disconnect the continent

Author:
Andrea Renda
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
A lively debate emerged on the proposed "Connected Continent" legislative package presented by the European Commission in September 2013. The package contains a proposed rule on the 'open Internet', which was heavily discussed in European Parliament hearings in early December. This commentary argues that while the proposed rule is in principle balanced and appealing, it is utterly impractical due to the enormous uncertainty that its application would entail. At the same time, the rule is very far from what neutrality proponents have argued for almost a decade: rather than the place for internet freedom, it would transform the Web into a place requiring constant micro-management and tutoring of user behavior. Both arguments lead to the conclusion that the current proposal should be at once reformed and analysed under a more holistic lens. On the one hand, Europe should launch an ambitious project for the future, converged infrastructure by mobilising resources and reforming rules to encourage investment into ubiquitous, converged, 'always on' connectivity. On the other hand, enhanced legal certainty for broadband investment could justify a more neutrality-oriented approach to traffic management practices on the Internet. The author proposes a new approach to Internet regulation which, altogether, will lead to a more balanced and sustainable model for the future, without jeopardising user freedom.
Topic:
Debt, Economics, Monetary Policy, Infrastructure, and Financial Crisis
Political Geography:
Europe

2148. The Governance Gap in European Security and Defence

Author:
Giovanni Faleg
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Let us take three assumptions: The demand for security provision continues to increase in Europe's fragile neighbourhood (notably following the 'Arab Spring'); Austerity restrictions have hit national defence budgets heavily; The balance of power is shifting 'from the West to the rest' and the Americans are pivoting eastwards. Under these circumstances, it is no surprise that the EU is struggling to establish itself as a credible and effective security actor. The final report of High Representative Catherine Ashton, released in preparation for the December 2013 European Council on Security and Defence, admits that Europe "faces rising security challenges within a changing strategic context while the financial crisis is increasingly affecting its security and defence capability". But these are not the true causes of CSDP inertia.
Topic:
Defense Policy and Regional Cooperation
Political Geography:
Europe

2149. Policy Lessons for Macroeconomic and Financial Crisis Management in the Southern and Eastern Mediterranean

Author:
Rym Ayadi and Willem Pieter De Groen
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The 2007-09 global financial crisis led to a virtual collapse in economic activity and increased financial volatility worldwide. For the developing countries, the main channel of transmission has been a drop in external transactions, such as trade, financial and capital flows, and remittances. The southern and eastern Mediterranean countries (SEMC) have also faced declining economic activity, although there seems to be considerable variation in the relative magnitudes and timing of the decline. Most of the economies in the Mediterranean basin have had delayed but longer-lasting consequences as a result of the crisis, driven mostly by their endemic trade and investment ties with the EU and the Gulf Cooperation Council (GCC) countries.
Topic:
Debt, Economics, Markets, Monetary Policy, and Financial Crisis
Political Geography:
Europe

2150. REACH: A killer whale for SMEs?

Author:
Jacques Pelkmans, Ineke Gubbels-van Hal, and Lorna Schrefler
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Right from the start of the REACH debate, following the Commission proposal of October 2003, one of the more serious concerns was whether and how SMEs could cope with REACH. Indeed, there were doubts whether one of the main objectives of REACH – competitiveness of chemical and downstream companies – is consistent with the design and detailed implementation of REACH. Already in 2005, the European Parliament adopted a resolution on this aspect, insisting e.g. on lower fees for SMEs as one remedy to reduce the expected regulatory burden for smaller companies. The fear of REACH being unduly heavy and costly for SMEs has never gone away (see e.g. Gubbels Pelkmans, 2009) but merely receded in the background when the Commission and the European Chemical Agency (ECHA) were in the process of building and elaborating the REACH machinery in operational terms. This year, the problem is rearing its head again in a magnified fashion and it will not go away so easily this time.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
Europe