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2021. vol. 16. No. 3
Topic of the issue: In Pursuit of Multilateral Solutions for a Resilient World
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7–33
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From the perspective of power transition theory, international relations system is gradually entering the phase of "power transition" where the United States, as a global hegemon, seeks to maintain the existing world order, and China establishes alternative international formats to reorganize the system of international relations and strengthen its structural power. Cyberspace and technological sphere are becoming the field of non-violent competition between states, which makes the study of global governance of cyberspace critical for the understanding of the outlines of the "new bipolarity". The analysis in the paper is focused on U.S. & China approaches to global governance of cyberspace through the prism of Manuel Castells' theory of "network society". The authors aimed to determine the directions of the U.S. and China policy in the course of four types of "power" in cyberspace: networking power, network power, networked power and network-making power. Present analysis concludes that the United States play crucial role in the course of all four types of "power" at the expense of decentralized model of Internet governance which is based on the idea of "multistakeholderism". NGO and other entities play a decisive role in such a model. Nonetheless, China has already developed necessary tools for reforming the present system of global governance of cyberspace based on centralized model with the leading role of United Nations as an international governance organization and state as a basic actor. The main beneficiaries of the centralized model are developing countries, which are unable to influence the global governance of cyberspace under the dominance of private companies from developed countries. |
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34–68
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In this article, the Group of 20’s (G20) networked pluralism and transversal policy practices in the governance of COVID-19 and the pandemic crisis effect are analyzed. The G20 is an important global governance hub, with the strategic capacities and authority to improve cooperation on the pandemic and economic recovery efforts. The forum’s increasingly pluralistic networked-governance processes have been crucial for recent shifts in global governance practices and authority. They were augmented by transversal consequences of the pandemic crisis effect, the latter denoting the consequences of new evidence during a crisis leading to a heightened perception of uncertainty and the repoliticization of background knowledge. The analysis combines a “practice-relational” social constructivist analytical approach with discourse-analytic and sociological insights. It integrates empirical evidence from semi-structured interviews, informal discussions, participant observation, and documentary analysis of G20 engagement on transversal policy dimensions of the COVID-19 pandemic, especially with its interlocutors and governance networks. This indicates the growing significance of networked G20 governance, involving engagement with increasingly pluralistic networks of actors from the Global North and Global South.
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69–84
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Article 6 of the Paris Climate Agreement, adopted in 2015, defines three mechanisms that stimulate reduction of greenhouse gas emissions. These are the trading of the results of emission reductions, the implementation of climate projects, and so-called non-market approaches. However, the rules for the application of Article 6 have not been agreed so far. Among the remaining contradictions in the positions of the participating countries are different understandings of approaches to prevent double counting of the results of project activities, mandatory deductions for adaptation purposes, and the transfer of unused carbon units under the Kyoto Protocol. At the same time, some countries have already initiated pilot projects under Article 6 with the intention that, in the coming years, they will become Article 6 projects. In November 2021, the 26th United Nations (UN) Climate Conference will be held in Glasgow. Experts link the effectiveness of forthcoming forum with completion of Article 6 negotiations. In this article, the main problematic issues in the negotiations are considered and proposals for the Russian position at the upcoming conference are formulated. |
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85–107
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In this article the main aspects of the European Green Deal proposed by the European Commission in December 2019 are analyzed, putting the Green Deal into the broader context of European Union (EU) climate governance in order to assess whether and how it advances the EU’s climate agenda. Four broad and interrelated categories to evaluate the Green Deal are proposed. Its performance depends on whether it is and will remain a policy priority, despite the COVID-19 emergency and the ensuing economic crisis. Second, successful implementation depends on adequate financial endowment, including the shift of public funding from hydrocarbons to renewables and energy efficiency in post-pandemic economic programmes. The legal competence of EU institutions to coordinate and enforce the implementation of the Green Deal is also essential, as highlighted by ongoing discussions concerning governance to achieve zero net emissions by 2050. Furthermore, international cooperation with third partners on issues such as border carbon adjustment, technology transfers, and green industry will influence both the implementation of the Green Deal in the EU and the contribution of other major emitters to the climate agenda. The impact of the European Green Deal on EU-Russia relations is also investigated. In this respect, it is argued that the Green Deal poses a serious challenge to the traditional pattern of EU-Russia energy trade, which has been dominated by fossil fuels. However, the Green Deal also offers new avenues for cooperation and for a more sustainable EU-Russia energy relationship. |
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108–123
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In this article, the influence of the European Union’s (EU) Green Deal on its energy relations with Russia is analyzed. Two models of resilience are identified in the EU’s discourse. One aims at achieving resilience at the level of the EU’s energy sector (the “microsystem” for the purpose of this study) while destroying the system of EU-Russia relations (the “macrosystem”). The other aims at achieving resilience in the micro- and macrosystem at the same time. Empirically, the study relies on EU documents and speeches by its national and supranational representatives. Three cases are studied. The first covers competition of two models of resilience in the principles that the EU defined for its relations with Russia. The second case involves investments that slow down the development of renewable sources of energy in favour of natural gas. This case demonstrates how resilience can be achieved as a return to the previous pattern (bouncing back). Although it can be achieved both at the EU-only level and at the level of the EU and its relations with Russia, it clearly favours the latter. The third case involves the import of hydrogen, which creates possibilities for resilience both at the microsystem alone and at the micro- and macrosystems at the same time. This latter option is achieved through adaptation to new challenges (bouncing forward). The author concludes by comparing the two models of resilience. The model that prioritizes the microsystem’s resilience and challenges the macrosystem is based on the synthesis of environmental and geopolitical logics. The other model is based on economic and market logics, but the EU’s normative leadership is a prerequisite. The EU’s discourse demonstrates the viability of both models and related governance practices. Most likely, the two models will co-exist, but their relative importance will vary over time. This variation will be primarily determined by the EU’s internal constraints. However, Russia’s policy can facilitate the model of resilience, achieved in both the micro- and macrosystem.
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124–160
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The European Union (EU) aspires to become a global climate power. Climate neutrality became the guiding principle, the goal, and the pillar of the EU’s external policy after the Green Deal endorsement. The Green Deal is internationalized through a system of external policy instruments, including financial, trade and investment mechanisms, carbon border adjustment and emission trading, agreements with other countries, development support, and promotion of the EU’s regulation and standards through cooperation in international institutions. The normative documents and proposals on the key initiatives have been put forward, and the formats and plans for implementation are being discussed and defined. In this context, it is important to analyze the EU’s initiatives for internationalization of green transformation goals and to identify risks and opportunities related to their implementation. This article reviews the array of external policy instruments and initiatives deployed by the EU: the new trade policy of “open strategic autonomy” and the initiative on trade and sustainable development in the World Trade Organization (WTO); the framework for the screening of foreign direct investments and the taxonomy of environmentally sustainable investment and economic activity; new approaches to energy security and the building of global energy markets, including norms and standards for hydrogen markets; and the new neighbourhood policy, including the new strategy for Central Asia and the Neighbourhood, Development and International Cooperation Instrument. Giventheinitialstageofthe initiative’s implementation,thestudyfocusesonthe adopted documentsandplanned actions. The author assesses the potential impact of climate policy internationalization instruments on EU-Russia economic cooperation and on EU leadership in shaping global climate governance. Theauthorassertsthatanumberofinstrumentsbearrisksforthe Russian Federation’s economicprojects and proposes recommendations for abating them. With regardtoglobalgovernance, the EU’s commitment to integrate climate goals into the global agenda may serve as a bridge for inclusive governance. At the same time, the EU’s determination to impose its priorities through carrot and stick incentives, including through economic measures, on partners not sharing the EU’s approach may be destructive. The author concludes that the EU’s capacity to build constructive engagement with partners will be a test of the EU’s real leadership. Given that the Green Deal’s external dimension is intended not only to promote EU priorities and values, but also to advance the global public good, controversies arise with regard to the instruments, not the goals. Thus, it is in the interests of Russia, as well as other partners directly affected, not to oppose the export of the EU’s climate policy, but to cooperate to mitigate unintended consequences of its deployment and to shape inclusive global governance. |
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161–182
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In 2021, the European Union (EU) is entering a new phase of energy transition, reducing the use of fossil fuels to achieve climate neutrality by the mid-century. For a qualitative assessment of the impact of the EU gas market’s green policy, transaction cost theory and the concept of asset specificity is referenced in this article. During the first stage of market development, the level of asset specificity was high, while a decline can be observed with market liberalization. However, at the current stage, a radical transformation of specificity in the context of energy transition can be seen. Assets that used to guarantee higher profitability (gas pipelines, gas processing plants, liquified natural gas (LNG) terminals) will soon be disqualified. In this article, the long-term prospects for the natural gas market in Europe, and what will happen to key assets if the climate agenda dominates the issue of energy security, are considered; qualitative assessment of the changes and of the future of the assets on the European gas market is undertaken. |
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183–202
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The study examines the dynamic relationship between foreign direct investment (FDI) inflows, economic growth, and environmental degradation and investigates the long-run validity of the environmental Kuznets curve (EKC) and the pollution haven hypothesis (PHH) for selected Asian countries over the period 1990–2019. Additionally, this study aims to discover the long-run impact of energy consumption, globalization, and population density on environmental degradation by employing a panel cointegration approach, fully modified ordinary least squares (FMOLS), and dynamic ordinary least squares (DOLS). The findings provide clear evidence of the existence of EKC and PHH in Asian countries for the period 1990–2019 in the long run. The findings reveal that economic growth has a highly significant and positive role in depleting environmental quality, but this effect gets reversed in the long run as, after a certain turning point, economic growth increases, and the quality of the environment gets better. Moreover, FDI inflows and energy consumption have a positive long-run impact on CO2 emissions, thus contributing to environmental degradation. The study recommends that governments and policymakers should strategically devise and implement CO2 reduction policies, such as carbon pricing, to encourage economic growth and to improve the quality of the environment, with the ultimate goal being to achieve sustainable development. Moreover, the use of cleaner energy should be promoted, and innovations and technological developments should be encouraged for hydropower, wind power, solar energy and other facilities around the world.
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203–219
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In this article, the prospectsor changing the status of unrecognized states in Greater Eurasia are analyzed. Status and recognition are close but distinct categories in international relations (IR) theory and international law. Status defines a state’s rank in the hierarchical international system. Recognition is a different category; legally, it defines whether other states recognize a particular state as fully established and sovereign. Sovereignty is a third category related to the issue of recognition but not equal to it since it includes internal and external (international) sovereignty. There are examples of sovereign states that effectively control their territories and collect taxes, but which are not recognized as sovereign by other states. The analysis in this article focuses on whether an unrecognized state can strengthen its status and improve its position in the international system. It is argued that this is possible, and that the absence of international recognition should not be regarded as an unsurpassable impediment to the economic development of the country. |
10 Years of Russia’ Accession to the WTO
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220–237
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This article begins with a brief discussion of the background of the USSR/Russia rapprochement with the General Agreement on Tariffs and Trade/World Trade Organization (GATT/WTO) and some of the acute problems of the negotiation process. It is argued that the Russian Federation has received acceptable, balanced conditions of membership. The advantages gained during the first years of WTO membership are listed, both for the national economy and in the foreign arena. However, it is shown that, 10 years later, the benefits of membership are significantly lower in comparison with initial projections. This gap is attributed to the state of the Russian economy and the extinction of the continuing economic model based on the extraction and export of raw materials. The Russian economy needs real structural reforms and modernization, which would change the structure of exports in favour of finished products and modern services. Only in this case can the benefits of WTO membership increase significantly, justifying the original forecast. The article concludes with a discussion of current challenges in the world economy and trade, the crisis experienced by the WTO, and the active position of the Russian Federation on the future reform of the WTO.
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238–255
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The World Trade Organization (WTO) is one of the leading institutions involved in global economic regulation. Its purposes are to ensure multilateral cooperation on the liberalization of international trade, harmonize existing standards and requirements, and peacefully resolve trade disputes between countries. Since 11 December 2019, dispute resolution has been handicapped due to the consistent blocking of the appointment of members to the WTO Appellate Body (AB) by the United States. This has reduced the multilateral trading system’s (MTS) predictability and threatens its final decay. In this article, the fundamental and formal causes of the collapse are described, and its circumvention mechanisms and effectiveness are discussed. At the same time, an assessment is given of the possibility to overcome the collapse in 2021, considering the change of the U.S. president and other events. Special attention is paid to Russia’s position and its current and potential losses. Finally, the issue of dispute resolution through regional trade agreements is proposed for discussion. The fundamental reasons for the collapse were the shifting balance of power in the world order and the WTO’s inflexibility in adjusting the rulebook and its procedures. The main reasons for the U.S.’ dissatisfaction are objective but based on formalities; the blockage of the AB is an overreaction. Moreover, the U.S.’ position on this issue has not changed with the new president. As a result, there is abuse of the current situation as WTO members file appeals “into the void.” Existing tools to circumvent the collapse are partial and not yet popular among WTO members. Russia needs to resume the AB’s work to complete previously started high-profile disputes and to defend its interests in the future. |
Analytical Reviews
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256–272
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The European Union (EU) is trying to increase its influence on the international regulation of the digital economy through domestic and foreign policy initiatives. The EU’s digital strategy, adopted in 2020, envisages measures to further consolidate the single digital market and promote EU standards and regulation internationally. The main goal of the strategy is to ensure the EU’s digital sovereignty. This objective is at the core of policy measures in three priority areas: the elimination of remaining barriers in the internal market, the development of advanced technologies, and the safeguarding of the rights, freedoms and development of democracy in Europe. These three strategic priorities determine sectoral policies: 5/6G development, high performing computers, regulation of digital markets and platforms, cybersecurity, and data governance. The EU uses regulatory, economic, institutional, networking, and foreign policy instruments and mechanisms to achieve its objectives in specific policy areas. Regulation includes further raising standards for personal data protection and consumer rights, control over digital platforms, laying down a legal framework for the development of cutting-edge technologies, attracting investments, and allocating the EU’s own resources to potentially occupy niches in international markets in the future, all of which will strengthen the EU’s claim to leadership in regulating the digital economy and ensure its digital sovereignty. Foreign policy mechanisms are an important part of the toolkit and include a developed European diplomacy, established ties through the Neighbourhood Policy, and the conditionality of development aid
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273–287
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The COVID-19 pandemic has prompted a rethinking of the approaches to the implementation of the 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals, both nationally and within the multilateral system. The crisis has forced international actors not only to reassess humanity's capability to achieve the Goals by 2030, but to question the relevance of the Agenda's priorities in the new environment. This work reviews the positions of key international institutions on sustainable pathways to global economic recovery
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