Africa - Atlantic Council https://www.atlanticcouncil.org/region/africa/ Shaping the global future together Fri, 21 Jul 2023 20:02:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://www.atlanticcouncil.org/wp-content/uploads/2019/09/favicon-150x150.png Africa - Atlantic Council https://www.atlanticcouncil.org/region/africa/ 32 32 Russian War Report: Wagner is still in business in Africa https://www.atlanticcouncil.org/blogs/new-atlanticist/russian-war-report-wagner-still-in-africa/ Thu, 20 Jul 2023 20:22:35 +0000 https://www.atlanticcouncil.org/?p=665774 Despite their Russia-based forces being relocated to Belarus after their failed mutiny, Wagner Group is still alive and active in Africa, including ahead of a referendum in the Central African Republic.

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As Russia continues its assault on Ukraine, the Atlantic Council’s Digital Forensic Research Lab (DFRLab) is keeping a close eye on Russia’s movements across the military, cyber, and information domains. With more than seven years of experience monitoring the situation in Ukraine—as well as Russia’s use of propaganda and disinformation to undermine the United States, NATO, and the European Union—the DFRLab’s global team presents the latest installment of the Russian War Report

Security

Ukrainian attack damages Kerch Bridge

Wagner moves soldiers to Belarus following apparent disbandment in Russia

Wagner vehicle columns are seen driving from Voronezh to Belarus

Tracking narratives

Russian officials and state media change their tune about the Kerch Bridge attack after Kremlin announces terror investigation

Media policy

FSB colonel alleged to be behind popular Telegram channel detained for extortion

International response

Wagner continues to advertise its services in Africa

Wagner troops arrive in Central African Republic ahead of critical referendum

Lavrov to replace Putin at BRICS summit

Ukrainian attack damages Kerch Bridge

Russia accused Ukraine of conducting a drone strike against the Kerch Strait Bridge on July 17. The bridge, also known as the Crimean Bridge, connects Ukraine’s Crimean Peninsula with Russia’s Krasnodar region. The bridge is used for civilian movement and as an essential logistical route for the Russian army.

Explosions were reported at around 3:00 a.m. local time. Footage of the aftermath indicates that a span of the bridge’s road had collapsed while another suffered damage but remained intact. Traffic reportedly resumed several hours after the explosion, but in the interim, occupation authorities asked civilians to consider alternate evacuation routes. Russian Telegram channels reported extensive traffic jams in Crimea’s Dzhankoi area and in the occupied Kherson region towards Melitopol. 

Ukraine defense intelligence spokesperson Andrii Yusov told Suspilne News that damage to the bridge could create logistical difficulties for Russian forces, but said Kyiv would not comment on the cause of the explosion. CNN, citing a source in the Security Service of Ukraine (SBU), reported that the attack on the bridge was a joint operation of the SBU and Ukrainian naval forces. Ukrainian media outlet LIGA also reported that the SBU and Ukrainian naval forces were responsible for the attack, citing sources in the SBU. LIGA also noted that the strike was likely conducted with surface drones. The SBU said that information about the incident would only be revealed once the war ended. Some Russian military bloggers, including former Russian officer and pro-war nationalist Igor Girkin, stated that Russian authorities had focused too heavily on road security and not enough on maritime security. Alexander Kots, another prominent blogger and Kremlin-appointed Russian Human Rights Council member, also blamed Russian authorities for focusing too much on land security.

Natalia Humeniuk, a spokesperson for Ukraine’s Southern Operational Command, speculated without evidence that the attack may have been a provocation by Russia amid talks on prolonging the Black Sea Grain Initiative. The grain deal, brokered by Turkey and the United Nations in July 2022, has been essential for stemming a global surge in food prices. The agreement, necessitated after the Russian navy blocked all Ukrainian ports, permits Ukraine to export products. It has has been prolonged several times, with the last extension expiring on July 17. The Kremlin announced on July 17 that it had suspended its participation in the initiative but claimed that the decision was unrelated to the bridge attack. 

Meanwhile, about twenty-four hours after the attack on the Kerch Bridge, explosions were heard in Odesa in southern Ukraine. Unconfirmed reports claimed the explosions were a response from Russia. The attack on Odesa continued for a second night on July 19, described by Ukrainian officials as “hellish.” Odesa is an essential port for Ukrainian exports and was allowed to remain open under the conditions of the grain deal.

Ruslan Trad, resident fellow for security research, Sofia, Bulgaria

Wagner moves soldiers to Belarus following apparent disbandment in Russia

The Wagner Group appears to have disbanded its operations in Russia and relocated to Belarus, according to footage reviewed by the DFRLab documenting the movements of Wagner military columns in the days following the mutiny through July 18. Additionally, satellite imagery captured the entry of troops and equipment at the Tsel military camp, located near the Belarusian town of Asipovichy.

On July 17, a video shared on Telegram depicted Wagner soldiers taking down the Russian flag and the Wagner flag at the group’s original military base in Molkino, Krasnodar Krai, Russia. In another video published on July 19, Prigozhin addressed Wagner fighters as they left the Molkino base, describing the situation on the front as “a shame.” In addition, he declared that the group is relocating to Belarus and will focus on its activities in Africa. For the time being, he said, Wagner soldiers are no longer participating in Russia’s special military operation in Ukraine, although they “will perhaps return to the special military operation at the moment when [they] are sure [they] will not be forced to shame ourselves.”

Shortly after the mutiny ended, Russian authorities conducted raids on Wagner’s accounting divisions in Saint Petersburg, according to information purportedly shared by the wives and mothers of Wagner fighters in an online forum. Additional raids took place on Prigozhin’s residence. The movements of Prigozhin’s private jet also indicate frequent travel to Belarus over the past three weeks.

An investigation by Belarusian opposition media outlet Motolko.help revealed a photograph of a man resembling Prigozhin in his undergarments allegedly at the Tsel military base, where he reportedly spent the night on July 12. According to flight data posted on the online portal Radarbox, Prigozhin’s personal Embraer Legacy 600 jet, registration number RA-02795, completed four round-trip flights between Belarus’ Machulishchy air base and Russia.

Radar imagery acquired on July 17 also shows the tents where Wagner fighters appear to be housed and several places for vehicles parked inside the military base.

SAR imagery of Tsel military camp in Belarus, taken on July 17, 2023.  (Source: DFRLab via Capella Space)
SAR imagery of Tsel military camp in Belarus, taken on July 17, 2023.  (Source: DFRLab via Capella Space)

Valentin Châtelet, research associate, Brussels, Belgium

Wagner vehicle columns are seen driving from Voronezh to Belarus

On July 16, several videos emerged on Telegram documenting Wagner vehicles departing Voronezh Oblast along Russia’s M-4 Don highway. Utilizing social media footage, the DFRLab determined the location of the vehicles and identified forty registration plates. At least two-thirds of these vehicles displayed military registration plates from the self-proclaimed Donetsk and Luhansk People’s Republic. However, the Belarusian monitoring project Belaruski Hajun reported that many other vehicles used tape to cover their registration plates.

The columns are composed of various buses and trucks, of which only a few could transfer construction equipment. Most of the convoys consist of UAZ Patriot pickup trucks, Ural vans, and Lada cars. No heavy military equipment was observed at the time of writing.

Screenshots show a UAZ Patriot pickup truck (top) and a Mitsubishi pickup truck (bottom) bearing military registration plates from the Luhansk People’s Republic. A police car escorted the trucks one hundred kilometers south of Voronezh on July 14, 2023. (Source: Telegram/archive)

Another video shared on the Russian Telegram channel VChK-OPGU revealed a Wagner convoy of soldiers entering Belarusian territory. According to a post by Belaruski Hajun, at least sixty vehicles entered Belarus through Mogilev Oblast in the early hours of June 15 using the R-43 and M-5 roads. A photograph on Telegram showed the Russian and Wagner Group flags flying at a border outpost.

According to Belaruski Hajun, since July 14, nine distinct military convoys have entered Belarusian territory. They are likely located at the Tsel military camp near Asipovichy. The camp is home to military unit 61732 and was previously identified by Verstka Media as a potential site to accommodate Wagner soldiers. Further, the Belarusian military TV channel VoyenTV posted a video on July 14 showing Wagner soldiers arriving in Belarus and training local forces. According to updated estimates from Belaruski Hajun, as many as 2,500 Wagner members may have relocated to the Tsel military camp since last week.

Valentin Châtelet, research associate, Brussels, Belgium

Russian officials and state media change their tune about the Kerch Bridge attack after Kremlin announces terror investigation

In the immediate aftermath of the July 17 attack on the Kerch Bridge, Russian officials and state media were relatively mild in their initial language addressing the incident, referring to it as an “emergency.” However, once Kremlin agencies began referring to the attack as a “terror act,” state media and officials began changing their language to follow the Kremlin.

“Traffic was stopped on the Crimean bridge: an emergency occurred in the area of the 145th support from the Krasnodar territory,” Sergei Aksenov, the Russian-installed head of occupied Crimea, wrote on his Telegram channel at 4:21 a.m. local time. Notably, Aksenov did not use the words “explosion,” “attack,” or “terror” to describe the destruction of the bridge. Two subsequent posts, made at 5:03 a.m. and 6:59 a.m., also avoided these terms. It wasn’t until 1:51 p.m. that Aksenov used the phrase “terror act” to describe the attack.

In between Aksenov’s posts, Russia’s National Antiterrorism Committee reported at 10:04 a.m. that they had assessed the Kerch Bridge explosion as a “terror act,” according to Kremlin-owned news agency TASS. Several minutes later at 10:07 a.m., Russia’s Investigative Committee announced that it would open a criminal case investigating the “terror act” on the Kerch Bridge. 

Several Kremlin-owned Russian media outlets, including RIA Novosti and TASS, also used the term “emergency” (“чрезвычайное прошествие” or ЧП) to first describe the bridge explosion before later pivoting to using “terror act.” Neither outlet referred to the destruction of the Kerch Bridge as a “terror act” prior to the official announcements from the Investigative Committee and Antiterrorism Committee. In the case of RIA Novosti, they published a story using the word “emergency” in the headline at 11:41 a.m., more than ninety minutes after the terror investigation announcement, while TASS used the term as late as 7:31 p.m., even though it had already published a report on the investigation. Similarly, many other Kremlin-controlled media outlets, like Komsomolskaya Pravda, Gazeta.ru, RBC, Lenta.ru, and Izvestiya used both “emergency” and “terror act” in their publications throughout the day interchangeably.

Nika Aleksejeva, resident fellow, Riga, Latvia

FSB colonel alleged to be behind popular Telegram channel detained for extortion

According to Russian media outlet RBC, former Federal Security Service (FSB) Colonel Mikhail Polyakov, the purported administrator of the Telegram channel Kremlevskaya Prachka (“Kremlin Laundress”), was detained for suspected extortion. The press office for the Moscow court released a statement that said Polyakov is “suspected of extorting 40 million rubles [around $440,000] from JSC Lanit, the leader of the Russian industry of information technology.” 

“According to the prosecution, from 2020 to 2023, Polyakov received a large sum of money from a group of IT companies for not publishing information (the so-called ‘negative block’) that could cause significant harm to the rights and legitimate interests of Lanit JSC and the management of Lanit JSC,” the Moscow court continued. The “negative block” is a guarantee that a channel will not mention a particular person or a company in a negative light in exchange for money; this is reportedly a popular practice among Russian Telegram channels.

The independent Russian media outlet Vazhnyye Istorii (“Important Stories”), citing a source close to Russian intelligence services, reported that Polyakov was behind the Kremlevskaya Prachka Telegram channel. According to the outlet, Polyakov supervised an unnamed service at the FSB’s Office for the Protection of the Constitutional Order. In addition, he reportedly oversaw pro-government Telegram channels and was engaged in promoting the Kremlin’s agenda via media and social networks. According to Important Stories, he worked in coordination with Vladimir Putin’s deputy chief of staff, Sergey Kiriyenko.

Important Stories noted that the Telegram channel 112 also named Polyakov as Kremlevskaya Prachka’s administrator, along with the Telegram channels Siloviki, Nezigar, and Brief, which are not as staunchly pro-govern cited by Kremlin propagandists and proxies.

Kremlevskaya Prachka has not posted since the evening of July 13, corresponding with the reported detainment of Polyakov.

Eto Buziashvili, research associate, Tbilisi, Georgia

Wagner continues to advertise its services in Africa

On July 16, the Wagner-affiliated Telegram channel REVERSE SIDE OF THE MEDAL posted an advertisement offering Wagner’s services to African states. The post included an image from the Prigozhin-funded film, Granite, as well as an email address, seemingly for interested African countries to communicate with Wagner. 

In French, the advertisement reads: “PMC Wagner offers its services to ensure the sovereignty of states and protect the people of African from militants and terrorists.” The fine print emphasizes that “various forms of cooperation are possible,” as long as the cooperation does not “contradict Russia’s interests.” Russia’s interests are not specified.

While the Telegram channel claimed the advertisement was replicated on African social media channels, the DFRLab has not found additional evidence to support this claim.

Wagner-affiliated Telegram channel shared an advertisement for Wagner’s services in Africa, claiming it was widely circulated on the continent. (Source: rsotmdivision)

Tessa Knight, research associate, London, United Kingdom

Wagner troops arrive in Central African Republic ahead of critical referendum

Alexander Ivanov, director of the Officer’s Union for International Security (COSI), released a statement on COSI’s Telegram channel regarding the recent arrival of dozens of Wagner operatives in Central African Republic. According to US authorities, COSI is a front company for the Wagner Group in Central African Republic.

In the statement, Ivanov confirmed the Wagner troop rotation while stressing that the new personnel have no contract with Russia’s Ministry of Defense. He reiterated that both in CAR and across the continent, “security work is carried out by private companies that enter into contracts directly with the governments of sovereign states,” and that these private companies have nothing to do with official Russian state entities. Ivanov also indicated that this staff rotation should not impact the activities of Russia in Ukraine, and he claimed to have been in contact with Yevgeny Prigozhin. 

Notably, Ivanov stated that despite the recent changes in the structure of Wagner’s “African business,” Prigozhin “intends not to curtail, but to expand his presence in Africa.” This is somehow consistent with what some analysts are observing: Wagner appears to be trying to expand its presence in West African coastal states increasingly threatened by a spillover of the jihadist insurgency from the Sahel, or possibly taking advantage of upcoming elections in several fragile African countries. 

Although Ivanov has often remarked on Wagner activities in CAR and Africa in the past, this statement, coupled with other recent comments, suggest that the COSI director might be now exercising a wider role as spokesman for all Wagner activity in Africa, as Wagner reorganizes its structure in the wake of last month’s failed mutiny. 

The statement comes as a U-turn in recent communications over Wagner’s presence in CAR. In past weeks both CAR and Russian officials stated that the African republic had an agreement with Russia and not with a private military company. Ivanov seems to be returning to earlier narratives in which Wagner claimed that the CAR government signed an agreement with the PMC and not the Russian government. This narrative seems to confirm DFRLab reporting in the June 30 edition of the Russian War Report, in which we noted that denying direct links to Wagner’s actions in Africa has become more difficult for the Kremlin after recent events damaged the principle of plausible deniability, which had previously been a key aspect of Wagner’s success in Africa. However, Russia does not want to waste the network of influence built by its state proxy forces and is now attempting to reorganize, rebrand and develop a new narrative around Wagner and the Kremlin’s ability to conduct hybrid warfare.

The arrival of dozens of troops from Russia’s Wagner in CAR comes at a critical time as the country prepares to hold a constitutional referendum on July 30 that would eliminate presidential term limits and allow President Faustin-Archange Touadéra to extend his term. The CAR government stated earlier this month that Wagner operatives will help in securing the referendum. This could be seen as a strong signal from Moscow to reiterate the strategic importance of its influence in CAR and reassure local partners of its continued support, while sending a message of continuity and strength to other countries in the region where Wagner operates.

Mattia Caniglia, associate director, Brussels, Belgium

Lavrov to replace Putin at BRICS summit

The Office of South Africa’s Presidency announced on July 19 that Russian Foreign Minister Sergey Lavrov would replace President Vladimir Putin at the upcoming Summit of BRICS Nations (Brazil, Russia, India, China and South Africa) “by mutual agreement.”

In Russian media, pro-Kremlin and opposition news outlets alike posted articles claiming that Russia had refused South Africa’s proposal to send Lavrov as head of the country’s delegation on July 14. Quoting an interview with South Africa’s deputy president, the Russian pro-Kremlin news outlet RTVI suggested that “negotiations are still ongoing.”

Putin is wanted by the International Criminal Court (ICC) for alleged war crimes committed during Russia’s war in Ukraine. A warrant for the arrest of both the Russian president and Presidential Commissioner for Children’s Rights Maria Lvova-Belova alleges that they were involved in organizing and participating in the deportation of Ukrainian children. As a signatory to the Rome Statute, which established the ICC, South Africa would have been obligated to arrest Putin had he attended the BRICS Summit in August. 

South Africa’s largest opposition party, the Democratic Alliance, took to court in a petition to force the government to arrest Putin if he did attend. In a responding affidavit, South African President Cyril Ramaphosa stated that Russia would view South Africa arresting Putin as a “declaration of war.” 

The Kremlin denied claims that Moscow had threatened South African authorities. However, Kremlin spokesperson Dmitry Peskov said on July 19 that “it is clear to everyone in the world what an attempt to encroach on the head of the Russian Federation means.”

Tessa Knight, Research Associate, London, United Kingdom and Valentin Châtelet, Research Associate, Brussels, Belgium

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“Pariah” Putin forced to cancel travel plans over fears of war crimes arrest https://www.atlanticcouncil.org/blogs/ukrainealert/pariah-putin-forced-to-cancel-travel-plans-over-fears-of-war-crimes-arrest/ Thu, 20 Jul 2023 19:52:16 +0000 https://www.atlanticcouncil.org/?p=665846 Vladimir Putin's pariah status has been confirmed after he was forced to cancel plans to attend a summit of BRICS leaders in South Africa over fears that he may be arrested for war crimes, writes Peter Dickinson.

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Vladimir Putin will not be traveling to South Africa in August for a summit of BRICS leaders, it was confirmed this week. The change of plan reflects fears in Moscow that the Russian dictator may face arrest for war crimes if he attends the annual event in Johannesburg. In early 2023, the International Criminal Court (ICC) issued an arrest warrant for Putin over his alleged role in the mass abduction of Ukrainian children. As an ICC signatory nation, South Africa would have been expected to arrest Putin if he entered the country.

South African officials will likely be relieved by Putin’s decision to skip the summit. For months, they have sought to prevent a potential confrontation with the Kremlin over the issue, with South African President Cyril Ramaphosa even reportedly requesting permission from the International Criminal Court for some form of exemption in order to avoid arresting Putin during the summit. with tensions mounting ahead of the summit, South Africa Deputy President Paul Mashatile admitted in a July 14 interview that the best option would be for Putin to stay away. “The Russians are not happy, though,” he commented. “They want him to come.”

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Moscow’s earlier eagerness for Putin to attend the summit is easy to understand. Following the full-scale invasion of Ukraine in February 2022, Russia’s relationship with the Western world has reached its lowest point since the Cold War. The Kremlin has sought to counter perceptions of mounting international isolation by emphasizing continued engagement with non-Western nations such as the BRICS grouping, which brings together Brazil, Russia, India, China, and South Africa. With this in mind, Putin’s attendance of the August summit was seen as an important signal that Russia could not be isolated and remained a major force in global affairs.

With Russian prestige at stake, Kremlin officials reportedly pressed their South African counterparts hard over the issue. Indeed, in a court affidavit made public earlier this week, President Ramaphosa claimed any attempt to detain Putin could lead to war between Russia and South Africa. “I must highlight, for the sake of transparency, that South Africa has obvious problems with executing a request to arrest and surrender President Putin,” he said. “Russia has made it clear that arresting its sitting president would be a declaration of war.”

Russia’s efforts to pressure South Africa clearly failed, leading to the July 19 announcement that Putin would not be attending. This exercise in damage limitation makes perfect sense. Speculation over Putin’s possible arrest in South Africa was rapidly becoming a PR disaster for the Kremlin, drawing attention to his status as a suspected war criminal and undermining his strongman persona. Meanwhile, headlines claiming Moscow had threatened South Africa with war if the country dared to arrest Putin for war crimes did little to enhance Russia’s reputation as a credible partner. With South African officials unwilling or unable to provide the necessary assurances, the only remaining option was to cancel the visit entirely.

This forced cancellation is the latest in a series of very public humiliations for Putin, who is struggling to maintain his authority as the full-scale invasion of Ukraine continues to unravel. The March 2023 ICC decision to charge him with war crimes dealt a powerful blow to Putin’s standing at a time when unprecedented sanctions and revelations of Russian atrocities in Ukraine had already made him a toxic figure. Weeks later, he was forced to cancel traditional Victory Day parades in cities across Russia amid rumors of shortages in both troops and tanks due to heavy losses in Ukraine.

Putin’s most humiliating moment came in late June, when units of Russia’s state-funded paramilitary Wagner Group staged a mutiny and briefly threatened to seize control of the country. The Wagner uprising ended as suddenly as it had begun, but not before mutinous troops had captured one of Russia’s largest cities without a fight and marched virtually unopposed to within 200 kilometers of Moscow. The mutiny exposed the fragility of the current regime and the lack of popular support for Putin himself; while crowds of ordinary Russians flocked to cheer Wagner rebels, nobody rallied to defend the country’s current ruler.

The Wagner episode may have played a role in this week’s decision to miss the forthcoming summit in South Africa. With Putin looking weaker than at any point in his 23-year reign, there is widespread speculation that it is only a matter of time before he faces fresh domestic challenges. Coups are often staged when dictators leave the security of their capitals and few in Moscow will have forgotten the failed KGB coup of 1991, which took place in August while Soviet leader Mikhail Gorbachev was in Crimea.

The Kremlin’s inability to find a way for Putin to attend next month’s BRICS summit in South Africa is a clear indication of Russia’s declining influence on the global stage. Ten years ago, Putin was a respected statesman and the leader of a G8 nation. Today, he must plan his international travel based on the likelihood of being arrested for war crimes. Commenting on Putin’s canceled South Africa visit, US State Department Spokesperson Matthew Miller said there was “no better illustration” of Russia’s vastly diminished standing in the world. “President Putin can hardly leave his own borders now,” he noted. “He’s an international pariah who can barely leave his own borders for fear of arrest.”

Peter Dickinson is editor of the Atlantic Council’s UkraineAlert service.

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Global Sanctions Dashboard: Sanctions alone won’t stop the Wagner Group  https://www.atlanticcouncil.org/blogs/econographics/global-sanctions-dashboard-sanctions-alone-wont-stop-the-wagner-group/ Wed, 19 Jul 2023 13:23:01 +0000 https://www.atlanticcouncil.org/?p=665011 Existing sanctions against the Wagner Group, limitations around enforcing them, and what more Western allies can do to counter Wagner's influence in Africa.

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On June 23, Russian private military security company the Wagner Group, led by Yevgeny Prigozhin, staged a takeover of the Russian city of Rostov-on-Don and advanced within 125 miles of Moscow. After approximately thirty-six hours, the rebellion concluded with an agreement brokered by Belarusian President Alyaksandr Lukashenka. The incident drew widespread international attention to the Wagner Group and its operations in Ukraine, Africa, and the Middle East. Despite being heavily sanctioned in most Western jurisdictions, the group continues to raise, use, and move money around the world. 

In this edition of the Global Sanctions Dashboard, we walk you through existing sanctions against the Wagner Group, limitations around enforcing them, and what more Western allies can do to counter Wagner’s influence in Africa. Moreover, we identify gaps in beneficial ownership information as the key vulnerability in enforcing sanctions against Russia, including in the case of the oil price cap.

The Wagner Group is heavily sanctioned but keeps making money

The Wagner Group, its affiliates, and leadership are the targets of Australian, British, Canadian, European Union (EU), Japanese, and US sanctions for human rights abuses and serious crimes, among other illicit activity, and for participating in Russia’s war of aggression against Ukraine. There are proposals and discussions in play within the EU and UK governments to designate the group as a terrorist organization. The United States redesignated the Wagner Group as a transnational criminal organization in January 2023. While these types of organizational designations may appear symbolic, they pave the way for more significant sanctions and actions such as prosecution of group members and affiliates pursuant to terrorism or criminal charges, which carry significant penalties. Terrorist organization and transnational criminal organization designations also send a strong signal to foreign governments that they may want to reconsider their relationships with these groups.

Shortly after the Wagner Group’s attempted mutiny against Moscow’s military leadership, the United States issued designations targeting the Wagner Group’s illicit gold activity and affiliated entities in the Central African Republic (CAR), United Arab Emirates, and Russia, exposing Prigozhin’s network and mining operations. Concurrently, the United States issued a twenty-nine-page joint advisory on Wagner’s illicit gold trade in sub-Saharan Africa, encouraging industry participants to apply enhanced due diligence to avoid the risks potentially facilitating the violation of economic sanctions or money laundering. 

Despite sanctions and efforts to curtail the Wagner Group’s illicit activity, the group has successfully evaded financial sanctions through a series of facilitators and front companies around the world and by taking advantage of lack of beneficial ownership to obscure operations and avoid identification. The Wagner Group has made more than five billion dollars since 2017, according to a Forbes assessment, mainly from mining, illicit gold trade, and forestry business in Africa, as well as funding from the Russian state

The restructuring of Wagner Group’s command and control creates new opportunities in Africa

Despite the mutiny, Russia is likely to continue using the Wagner Group as an irregular or “gray zone” instrument of foreign policy and regional influence across Africa, although some rebranding and restructuring of the organization is expected. The Kremlin could change the Wagner Group’s name but will likely keep the existing security contracts with African authorities and continue using the group for disinformation operations. Reportedly, the Kremlin has already begun the “corporate takeover” of the Wagner Group, with Russian law enforcement authorities seizing computers from companies connected to Prigozhin. 

Nevertheless, the Wagner Group’s organizational restructuring in Russia will likely impact the group’s operations in Africa as the Kremlin moves to assert greater control over Wagner Group operations and personnel and demonstrate that Putin is still in power. For example, around six hundred Wagner Group mercenaries left the CAR following Prigozhin’s failed rebellion, however the reason for their departure remains unknown. Russian government officials have been traveling to Africa and the Middle East in recent weeks to reassure regimes that Wagner Group will be able to meet their existing contract requirements under new command and control. In a visit to Damascus on June 26, Russian Deputy Foreign Minister Sergei Vershinin assured Syrian President Bashar al-Assad that Wagner forces would continue operations under the control of the Kremlin. In the CAR and Mali, Russian Minister of Foreign Affairs Sergey Lavrov offered similar assurances

The Kremlin’s attempts to save face and assert control provide Western allies with an opportunity to counter the Wagner Group’s influence and position, particularly in African countries such as CAR and Mali. The United States and its allies can take a “demand-side economics” approach and introduce positive inducements for regimes currently contracting with the Wagner Group, such as diplomatic, economic, and security cooperation that meet the needs of African countries while swaying them away from their reliance on the Wagner Group and ultimately Russia. 

The United States could leverage its designation of the Wagner Group as a transnational criminal organization to share information with foreign partners about the Wagner Group’s criminal activity, human rights abuses, and illicit financial activity to encourage partners to open investigations within their jurisdictions and prosecute Wagner Group personnel as criminals. These prosecutions could be brought to international organizations such as Interpol, to issue Red Notices and engage law enforcement around the world to bring criminals to justice. Further, if the United Kingdom and EU designate the Wagner Group as a terrorist organization, it may deliver a reminder to African governments that terrorism remains a priority and that the West is willing to cooperate with African governments on internal national security threats. A terrorist designation would also allow the EU and United Kingdom to bring terrorism charges against Wagner Group personnel within their jurisdictions and create the ability to further sanction the group and its network, disrupting their financial activity and ability to travel.

Additionally, Western allies can seize the opportunity to raise awareness about Wagner’s lack of success in places like Mozambique and Libya, human rights abuses in African countries, and exploitation of natural resources, to emphasize that their services come at a high cost. Western countries can partner with civil society organizations and African governments to track and identify the complex ownership structures of the Wagner Group-connected companies that enable sanctions evasion, share intelligence on these companies among partners, and take steps to freeze and seize assets of the Wagner Group that run counter to the interests of African countries. 

Identifying a key vulnerability in Russia sanctions enforcement: Beneficial ownership 

The key to understanding who is behind the shell companies and complex ownership structures of companies facilitating the Wagner Group’s activity is identifying the real human beings or organizations that control shell companies. They are called “beneficial owners.” 

The Financial Action Task Force (FATF), the international body responsible for setting global anti-money laundering standards, has called on its members to implement tougher global beneficial ownership standards and give competent authorities adequate information on the true owners of companies. Several countries, including the United States and United Kingdom, have passed legislation and developed or are in the process of developing regulations to bring their countries’ anti-money laundering and countering-the-financing-of-terrorism regimes up to FATF standards on beneficial ownership. 

The FATF and the international Egmont Group of Financial Intelligence Units (FIUs) can collaborate to ensure FATF regional bodies representing African countries and FIUs across the continent have the information they need and the capacity to understand and identify the risks the Wagner Group’s activities present to their respective domestic financial systems as well as the global financial system. 

Lack of knowledge on beneficial ownership also played a key role in obstructing the enforcement of the oil price cap against Russia. The United States and Group of Seven (G7) allies imposed a sixty-dollar cap on Russian crude oil in December 2022, with the goal of keeping oil flowing out of Russia while reducing the revenue stream into Moscow. The effectiveness of the price cap strategy depends on Russian oil exporters and importers accessing maritime services, such as insurance of oil tankers, provided by G7 countries that have sanctioned Russia. If Russian oil importers and exporters want to use these maritime services, which make up 90 percent of the market, they have to comply with the price cap. In response, Moscow built up a shadow fleet of oil tankers whose real owners are unknown. 

Why Russia’s shadow fleet is so dangerous

In February 2023, Russia’s shadow fleet was worth more than two billion dollars and consisted of around six hundred vessels. The fleet includes tankers previously used for Iranian and Venezuelan oil shipments and European tankers sold to Middle Eastern and Asian owners since Russia’s invasion of Ukraine began. The tankers operate without Western insurance and are not up to Western safety standards for oil tankers. Most of them are owned by offshore companies based in countries such as Panama, the Marshall Islands, and Liberia.

A third of Russia’s shadow fleet tankers are more than fifteen years old, which poses heightened risks of oil spills and environmental disasters. Normally, tankers should be demolished when they are around fifteen years old. The average age of the shadow fleet is twelve years and many of them will surpass fifteen years in the coming years. 

Fortunately, Asian nations have strengthened monitoring and inspection of old tankers. For example, Singapore held a record thirty-three tankers for failing safety inspections. Even Chinese port authorities in Shandong province have held at least two tankers older than twenty years for safety checks. Ships under detention for safety violations will have to re-apply for certificates and it’s unclear how long it will take them to get back to the ocean, if at all. 

How to prevent the growth of the shadow fleet

Last year, the number of undisclosed buyers of tankers more than doubled compared to 2021. Buyers of most of these tankers were located outside of G7 countries or the European Union. Specifically, London-based company Gibson Shipbrokers estimates that around one hundred fuel tankers were sold to companies outside of the G7. The undisclosed buyers of European ships most likely were shell companies or individuals acting on behalf of Russian beneficial owners of the shadow fleet tankers. This development is alarming and demonstrates a common theme in the challenges associated with enforcing sanctions against Russia including the oil price cap—beneficial ownership. 

Following FATF’s recommendation to its member states on making the identities of true owners of companies available to competent authorities could make it more difficult for sanctions evaders and money launderers to facilitate transactions for sanctioned Russian companies. It could also help sellers of tankers to identify whether the ultimate benefactor is a Russian entity or an individual. In the meantime, greater information sharing between partner nations on illicit Russian financial activity and the shell companies that are involved will help close this gap in sanctions enforcement and increase global understanding of Russia’s reach.   

Kimberly Donovan is the director of the Economic Statecraft Initiative within the Atlantic Council’s GeoEconomics Center. Follow her at @KDonovan_AC.

Maia Nikoladze is the assistant director at the Economic Statecraft Initiative within the Atlantic Council’s GeoEconomics Center. Follow her at @Mai_Nikoladze.

Ryan Murphy is a young global professional at the Atlantic Council’s GeoEconomics Center.

Castellum.AI partners with the Economic Statecraft Initiative and provides sanctions data for the Global Sanctions Dashboard and Russia Sanctions Database.

Global Sanctions Dashboard

The Global Sanctions Dashboard provides a global overview of various sanctions regimes and lists. Each month you will find an update on the most recent listings and delistings and insights into the motivations behind them.

At the intersection of economics, finance, and foreign policy, the GeoEconomics Center is a translation hub with the goal of helping shape a better global economic future.

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State of the Order: Assessing June 2023 https://www.atlanticcouncil.org/blogs/state-of-the-order-assessing-june-2023/ Tue, 18 Jul 2023 13:23:59 +0000 https://www.atlanticcouncil.org/?p=664396 The State of the Order breaks down the month's most important events impacting the democratic world order.

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Reshaping the order

This month’s topline events

Putin in Peril. Russian President Vladimir Putin faced the most serious challenge to his authority since taking office, as the Wagner Group, a Russian paramilitary organization, mounted an insurrection against the Kremlin’s military leadership. With heavily armed mercenaries seizing the city of Rostov and moving within a few hundred miles of Moscow, a looming conflict was averted as Yevgeny Prigozhin, the group’s chief, agreed to stand down and go into exile in Belarus. But Prigozhin’s whereabouts remained in doubt, as Putin sought to reassert control over the Wagner Group and consolidate his grip on power.

  • Shaping the order. The sudden rebellion by Prigozhin, a longtime close ally of Putin, suggests that the war in Ukraine is placing serious strains on Russia’s political leadership. Though Putin appears safe for now, the insurrection could open the door to future challenges to his rule, with the potential to shake the global order. Moscow appears to be struggling to gain control over Wagner, which has provided a crucial source of funding for Russia’s operations in Ukraine and helped the Kremlin expand its influence across the Middle East and Africa.
  • Hitting home. The fall of Putin could ultimately lead to a more peaceful Russia, but political instability inside the Kremlin could also pose new risks to US security interests.
  • What to do. With Putin forced to shift his focus to domestic challenges, Washington should use this opportunity to accelerate weapons support for Kyiv as Ukrainian forces push forward with their critical counteroffensive.

Blinken in Beijing. US Secretary of State Tony Blinken met with Chinese President Xi Jinping and Chinese Foreign Minister Qin Gang in Beijing, on a trip intended to “stabilize” relations between the two nations. While China refused a US request to resume military-to-military contacts, both sides appeared to view the talks as productive. But Chinese officials reacted bitterly to President Joe Biden’s subsequent reference to Xi as a “dictator,” calling the comments “extremely absurd and irresponsible.”

  • Shaping the order. While it may temporarily help improve the atmospherics surrounding the US-China relationship, Blinken’s visit is unlikely to lead to a shift in the overall trajectory. Tensions will remain high in light of Beijing’s threats against Taiwan and other attempts to undermine the global order, as the US pursues efforts to shift supply chains in critical industries away from China, as part of a new “derisking” strategy.
  • Hitting home. Seeking to maintain stable relations with the world’s second largest economy may be beneficial for the American people, but this will also require sustained efforts to defend against potential threats.
  • What to do. The Biden administration should continue to coordinate with allies on strategies to counter Beijing’s assault on the global order, even as it tries to establish guardrails in the US-China relationship.

Modi’s State Visit. President Joe Biden hosted Indian Prime Minister Narendra Modi at the White House, as the administration sought to bolster economic and geopolitical ties with India. Amid media criticism of India’s backsliding on democracy, Modi was given a White House state dinner – only the third of Biden’s presidency – and invited to speak before a joint session of Congress. The two nations agreed to strengthen defense and technology cooperation, including building GE military jet engines in India and launching joint initiatives on semiconductors, artificial intelligence, and other areas.

  • Shaping the order. Washington’s warm welcome for Modi reflects a desire to cultivate a stronger relationship with India in the context of strategic competition with China. While joint concerns over China appear to be propelling the relationship forward, it remains unclear whether the two nations can reach a more meaningful strategic partnership, especially given New Delhi’s refusal to condemn Russia’s aggression against Ukraine. In addition, Modi’s targeting of religious minorities and crackdown on political dissent have raised questions about the future of the relationship.
  • Hitting home. A stronger US relationship with India could generate new business opportunities for US companies seeking to reduce supply chain dependencies on China.
  • What to do. While seeking to build on the positive momentum coming out of Modi’s visit, Washington should also make clear that it sees a shared commitment to democratic norms as the foundation for closer ties between the world’s two largest democracies.

Quote of the Month

“Democracies must now rally together around not just our common interests, but also our shared values. Preserving and protecting the freedoms that are essential to peace and prosperity will require vigorous leadership…”
– US Secretary of Defense Lloyd Austin in New Delhi, India, June 5, 2023

State of the Order this month: Unchanged

Assessing the five core pillars of the democratic world order    

Democracy ()

  • Guatemala’s ruling government sought to overturn the results of the country’s presidential elections after the results indicated that Bernardo Arévalo, a reformist candidate, gained enough votes to qualify for a run-off. The State Department warned that undermining the election results would constitute a “grave threat to democracy.”
  • With the support of Pakistan’s ruling government, the country’s military began implementing a broad crackdown against the media and political opposition, in the wake of national protests following the arrest of former prime minister Imran Khan.
  • As Indian Prime Minister Narendra Modi made a high-profile visit to Washington, US concerns over democratic backsliding in India appeared to take a back seat in an effort to cultivate closer relations between the two nations.
  • Overall, the democracy pillar was weakened.

Security (↔)

  • Yevgeny Prigozhin, head of the paramilitary Wagner Group, mounted an insurrection against Russia’s military leadership, but agreed to stand down after his heavily armed mercenaries came within a few hundred miles of Moscow.
  • China and Cuba reached a secret agreement to allow Beijing to establish a surveillance facility on the island targeting the United States, and are in the process of negotiating a deal to establish a new joint military training facility.
  • A contingent of leaders from seven African countries, including South African president Cyril Ramaphosa, met with Ukrainian President Volodymyr Zelensky and President Putin, in a bid to initiate peace talks between Russia and Ukraine, though neither side accepted the African proposal.
  • In a further indication of Seoul’s tilt toward a harder line on China, South Korean President Yoon Suk Yeol directly criticized China’s ambassador in Beijing for his comments critical of South Korea’s joining US-led initiatives.
  • On balance, the security pillar was unchanged.

Trade ()

  • The US and Britain issued the Atlantic Declaration, a new economic framework aimed at enhancing cooperation on critical and emerging technology, supply chains, clean energy, and other issues, as a potential counterpart to the US-EU Trade and Technology Council.
  • The US and thirteen other members of the Indo-Pacific Economic Framework reached an agreement on supply chains – one of the framework’s four core pillars – that will result in several new bodies focused on advancing supply chain resiliency.
  • On balance, the trade pillar was strengthened.

Commons ()

  • The United Nations adopted the world’s first treaty aimed at protecting the high seas and preserving marine biodiversity in international waters, which constitute over two-thirds of the ocean.
  • The US announced plans to rejoin the United Nations Educational, Scientific, and Cultural Organization (UNESCO), in an effort to counter China’s growing sway in multilateral fora. After the Trump administration withdrew the US from the organization in 2017, China became one of its largest donors.
  • On balance, the global commons pillar was unchanged.

Alliances (↔)

  • French President Emmanuel Macron expressed opposition to a proposal by NATO Secretary General Jens Stoltenberg to open a NATO liaison office in Japan, suggesting that the alliance should stay focused in the North Atlantic region.
  • On his first trip to the White House since taking office, British prime minister Rishi Sunak met with Joe Biden, as the two leaders committed to closer cooperation on a range of political and economic issues.
  • US-India relations appeared to enter a new chapter as Prime Minister Narendra Modi joined President Joe Biden for an official state visit in Washington.
  • On balance, the alliance pillar was unchanged. 

Strengthened (↑)________Unchanged (↔)________Weakened ()

What is the democratic world order? Also known as the liberal order, the rules-based order, or simply the free world, the democratic world order encompasses the rules, norms, alliances, and institutions created and supported by leading democracies over the past seven decades to foster security, democracy, prosperity, and a healthy planet.

This month’s top reads

Three must-read commentaries on the democratic order     

  • Lucan Ahmad Way, in Foreign Affairs, contends that revolutionary autocracies have demonstrated remarkable staying power, even in the face of mounting challenges.
  • Hal Brands, in Foreign Policy, suggests that Russia, China, Iran, and to some extent North Korea constitute a bloc of adversaries more cohesive and dangerous than anything the United States has faced in decades.
  • Sumit Ganguly and Dinsha Mistree, in Foreign Affairs, argue that in the face of Chinese aggression, a policy of continued non-alignment will not serve India well.

Action and analysis by the Atlantic Council

Our experts weigh in on this month’s events

  • Fred Kempe, in Inflection Points, contends that Ukraine deserves NATO membership, as well as more robust weapons support.
  • John Herbst and Dan Fried, in the Washington Post, suggest that the key to a Ukrainian victory in its war against Russia may lie in a successful advance to retake Crimea.
  • Patrick Quirk and Caitlin Dearing Scott, writing for the Atlantic Council, argue for a fully developed foreign aid strategy to help the US succeed in strategic competition with China and Russia.
  • Peter Engelke and Emily Weinstein, writing for the Atlantic Council Strategy Paper series, set forth a comprehensive strategy for the US and its allies to retain its technological advantage over China.

__________________________________________________

The Democratic Order Initiative is an Atlantic Council initiative aimed at reenergizing American global leadership and strengthening cooperation among the world’s democracies in support of a rules-based democratic order. Sign on to the Council’s Declaration of Principles for Freedom, Prosperity, and Peace by clicking here.

Ash Jain – Director for Democratic Order
Dan Fried – Distinguished Fellow
Soda Lo – Project Assistant

If you would like to be added to our email list for future publications and events, or to learn more about the Democratic Order Initiative, please email AJain@atlanticcouncil.org.

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Russia just quit a grain deal critical to global food supply. What happens now? https://www.atlanticcouncil.org/blogs/new-atlanticist/russia-just-quit-a-grain-deal-critical-to-global-food-supply-what-happens-now/ Mon, 17 Jul 2023 19:31:09 +0000 https://www.atlanticcouncil.org/?p=664732 The last ship under the UN- and Turkey-brokered deal to export grain and fertilizer from Ukraine by sea has left Odesa. Atlantic Council experts explain what to expect next.

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That ship has sailed. Just after 8:00 a.m. local time on Sunday, the bulk carrier TQ Samsun pulled out of the Ukrainian port of Odesa en route to Istanbul. It was the last vessel to leave under the United Nations (UN) and Turkey-brokered deal to export grain and fertilizer by sea from Ukraine amid Russia’s full-scale invasion. On Monday, the Kremlin announced that it would halt the deal, curtailing vital Ukrainian food exports that fed four hundred million people worldwide before 2022, according to the World Food Programme.

Below, Atlantic Council experts answer four pressing questions about what just happened and what to expect next.

1. Why did Russia pull out of the deal?

Moscow’s notification to the UN, Kyiv, and Ankara that it was suspending participation in the grain deal and would not renew the deal further is part of a negotiating strategy to loosen sanctions and gain more freedom of maneuver. Russian standard practice is to make humanitarian measures conditional upon concessions that serve its military, economic, and political interests—as it has with earlier negotiations on the grain deal and numerous times over relief and aid deliveries in Syria. 

Specific demands in this case include readmitting the Russian agricultural lender Rosselkhozbank back into the Society for Worldwide Interbank Financial Telecommunication (SWIFT) mechanism, allowing Russia to import repair parts for agricultural machinery, and unfreezing other assets. Moscow claims that the deal, known as the Black Sea Grain Initiative, has not delivered on points that were to benefit Russia, but this round of pressure is certainly about more than the letter of the deal; it is about easing sanctions pressure.

Rich Outzen is a nonresident senior fellow at the Atlantic Council IN TURKEY and a geopolitical analyst and consultant currently serving private sector clients as Dragoman LLC.

2. What’s the next move for Ukraine and its Western partners?

In October 2022, Russia left the grain deal, actually suspended its participation, and there were only three parties left: the UN, Turkey, and Ukraine. The grain corridors at that time functioned well, in part because the Russian inspectors had been disrupting the grain deals from inside. The most rational way to react to this withdrawal is to proceed in the trilateral format with the UN, Ukraine, and Turkey. I don’t think Russia has a lot of options now. In the northwestern part of the Black Sea, Russia lacks capacity to inflict any major damage. Since Ukrainian armed forces retook Snake Island last year, the maritime area has been largely controlled by the Ukrainian side. So there is little possibility for a major disruption by Russian vessels in this part of the Black Sea.

Russia could say that continuing the deal in a trilateral format crosses a “red line.” But if Russian forces attack a vessel transporting grain, it could trigger a major reaction that Moscow would not want to face, depending on which country the vessel belongs to, who is the owner, and who the sailors are. I would not be surprised if after a meeting or phone conversation with Turkish President Recep Tayyip Erdoğan in the next few weeks, Russia rejoins the grain deal.

Meanwhile, messages from Ukrainian President Volodymyr Zelenskyy have been very clear that there has been no deal between Ukraine and Russia. The deal is among Ukraine, Turkey, and the UN. What Putin undermines now is his agreement with the UN and Turkey, not with Ukraine. Russia’s halt of its participation in the deal will likely further increase insurance costs, but in June the Ukrainian government approved a maritime compensation scheme so that vessels calling at Ukrainian ports will be compensated if they are damaged due to Russian military activity. So, from the Ukrainian side, there is readiness to proceed with the deal.

While trying to keep the grain corridors functioning, it’s also important to step up efforts to restore freedom of navigation in the Black Sea, a basic principle of international law. Crimea must be de-occupied and should not become a bargaining chip in negotiations with Moscow, because Russia will continue to use Crimea to threaten security in the Black Sea and global food markets for as long as it is allowed to do so.

Yevgeniya Gaber is a nonresident senior fellow at the Atlantic Council IN TURKEY and a former foreign-policy adviser to the Ukrainian prime minister. 

In practice, the deal had pretty much collapsed some time ago when ships started to disappear from the horizon off of Odesa’s Black Sea coast. Normally, up to a dozen bulk carriers are waiting to be loaded; in the past couple weeks, one or two at best—indicating things weren’t working well at the joint clearance center in Istanbul. (Ukrainians have blamed Russian inspectors for deliberately slowing down clearance procedures.) 

So what happens next? The UN and Western nations should not succumb to the Kremlin’s blackmailing tactics. Russia should not be given another chance to weaponize food—nor be given sanctions relief in exchange for allowing ships carrying food to sail through international waters.

A global food emergency should be declared and, as I told BBC World News this morning, arrangements made for ships to sail under armed escort through the Black Sea. Of course, such a measure would never get past Russia’s veto in the UN Security Council. So creative diplomacy is required, perhaps with the European Union taking the lead.

In the near term, Ukraine should also be assisted with moving grain transport onto alternative arteries such as the Danube River and onto trains and trucks. Poland can play a key role by alleviating the days-long waits truck drivers currently face entering Poland from Ukraine. 

Michael Bociurkiw is a nonresident senior fellow at the Atlantic Council’s Eurasia Center based in Odesa, Ukraine.

3. What are the prospects for getting the deal back, and what could the UN and Turkey do right now?

The deal will likely survive because Ukraine, Turkey, and Europe more broadly, as well as a number of developing nations, benefit from it, which likely makes modest concessions to the Russian position acceptable to the leaders of those countries. Given the disinclination of either the Turks or NATO to directly intervene in the conflict, it is unlikely that there will be direct military escorts for grain ships rather than a negotiated deal. Nor do the Russian forces appear ready for a major naval escalation in the Black Sea, so there is a fair chance they will settle in the end. The reputational and economic costs of a prolonged end to grain shipments will hurt Russia, too, so I do not expect a prolonged or permanent cancellation of the deal.

—Rich Outzen

4. What impact does this have on the developing world?

The threat to global economic landscape and food security—especially in Africa and other developing regions—is hard to overstate. While once soaring food prices amid pandemic supply chain disruptions and Russia’s war had begun to stabilize, thanks in large part to the more than thirty million tons of wheat exported from Ukraine under this deal, the situation remains volatile. Down from its peak of 160 in March of 2022, the Food and Agriculture Organization’s Food Price Index was at 122 in June, still a third higher than June 2020, when it was 93. Globally, food price inflation remains higher than 5 percent per year in more than 60 percent of low-income countries and nearly 80 percent of lower-middle-income and high-income countries. Real food inflation is as high as 80 percent in Zimbabwe, 30 percent in Egypt, and 14 percent in Laos. And within countries, women and already vulnerable communities tend to be hardest hit. In just the last two weeks, the World Bank reported that wheat prices had decreased by 3 percent globally—gains Monday’s announcement are all but certain to reverse.

Nicole Goldin is a nonresident senior fellow with the Atlantic Council’s GeoEconomics Center and global head, inclusive economic growth at Abt Associates.

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After Tunisia expelled 1,200 Black Africans, here’s how the West can help avoid a humanitarian disaster https://www.atlanticcouncil.org/blogs/menasource/tunisia-black-migrants-humanitarian-disaster/ Fri, 14 Jul 2023 14:48:22 +0000 https://www.atlanticcouncil.org/?p=664274 The West has the opportunity to prevent further deaths while simultaneously establishing resolutions to the migration predicament in Tunisia.

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A human catastrophe is developing on Tunisia’s borders with little international attention. On July 2, Tunisian security forces rounded up over one thousand Black Africans from the city of Sfax. Security forces claimed to have detained their racially selected targets under the pretext of protecting them from civil unrest. However, according to victims’ testimonies provided to Human Rights Watch, Tunisian authorities identified and checked their papers before smashing their cell phones, throwing away their food, violently and sexually abusing them, and expelling them at the borders with Libya and Algeria. Some of these individuals were refugees registered with the United Nations High Commissioner for Refugees (UNHCR). Others were transitory migrants, although most were laborers and students who were residing in Tunisia.

For about ten days, an estimated seven hundred people were stranded in no man’s land between the southeastern Tunisian and Libyan borders, with a further two hundred still stranded in similar circumstances along the western border with Algeria. Tunisian authorities recently resettled most of the migrants stranded on the Libyan border. However, their response remains inadequate, mainly due to the absence of guarantees that this situation will not recur. This is a significant possibility, given local demands for African migrants to be removed from the town of Ben Guerdane, the Tunisian smuggling capital near the Libyan border, where many were resettled, and the aforementioned hundreds that are still stranded at the Algerian border.

Additionally, international organizations remain prohibited from providing crucial humanitarian assistance, and fear dominates the sub-Saharan migrant community. Thus, communication with victims is limited to voice notes and messages from smuggled phones. This means conditions could be even worse—and the numbers of those stranded even greater—than currently reported. And what is known of the conditions is already bad enough; with dwindling food and water and temperatures climbing to over 104 degrees Fahrenheit, victims have reported horrific stories of pregnant women dying in labor and people being driven by thirst to drink seawater.

This catastrophe is brewing against the backdrop of increasing authoritarianism in Tunisia under President Kais Saied and a severely deteriorating economy. Since February, when Saied re-appropriated a local version of the far-right great replacement theory, Tunisia’s president has used Black and migrant communities in Tunisia as a populist scapegoat for the country’s problems. This has stoked mass anti-Black hysteria that is now manifesting as active hostility wherever migrants are settled, as seen with the response in Ben Guerdane.

President Saied has also utilized harsh counter-migration policies to leverage financial support from Europe—specifically Italian Prime Minister Giorgia Meloni—creating an incentivization structure and aura of impunity that have fed into the current crackdown.   

The situation on Tunisia’s borders is not only a humanitarian catastrophe that could cause the death of hundreds of innocent people—it could also catalyze political, criminal, and diplomatic issues across the broader region. Mass arbitrary expulsions and violent abuse incited by inflammatory speeches of Tunisia’s president have already boosted the numbers of sub-Saharan refugees fleeing to Europe across the Mediterranean Sea since February. Systematic and abusive government crackdowns will exacerbate this fear and could trigger a panicked, mass exodus as Tunisia becomes palpably unsafe for Black Africans, creating a new migration crisis for Europe.

This development also bolsters the already burgeoning business of human traffickers, helping them to entrench and expand other criminal activities. Additionally, it could strain relationships between Tunisia, Libya, and Algeria, as no country wishes to claim these stranded peoples, and Tunisian authorities continue ejecting them into sensitive border zones.

It’s imperative for Europe, and especially the United States, to act to avert this catastrophe—not only for humanitarian reasons but also to protect regional stability and defend key regional interests. The United States has invested more than $1.4 billion in Tunisia’s democracy since 2011 and is invested in promoting democracies to counter China and Russia’s authoritarian systems. As a result, the United States is financially, ideologically, and diplomatically invested in supporting its European allies to stabilize an issue of extreme importance in the central Mediterranean.

A Western policy response should focus on the short-term imperative of providing protection and assistance to the stranded while stopping further expulsions. Additionally, medium-term policies to build structural safeguards can prevent this from re-occurring and perhaps even result in a healthier ecosystem for migrants and migration diplomacy in Tunisia.  

Short-term solutions

In light of this ongoing crisis, European and US stakeholders have the opportunity to collaborate in preventing further deaths while simultaneously establishing a solid foundation for holistic and enduring resolutions to the migration predicament in Tunisia.

A first response should come through immediate public statements by senior officials that condemn the crackdown, highlighting Tunisia’s contravention of international conventions it has joined, such as the United Nations and African Refugee Conventions, the Convention Against Torture, and the International Covenant on Civil and Political Rights. All of these accords explicitly forbid the practice of refoulement and forcibly returning or expelling individuals to countries where they may be subjected to torture, threats to their lives or freedom, or other severe forms of harm.

Furthermore, Western governments should call on Tunisian authorities to allow the International Committee of the Red Cross/Crescent (ICRC) and the International Organization for Migration (IOM) to aid the stranded.

Given that the aforementioned suggestions are immediately actionable, uncontroversial, and the most direct way to end the humanitarian crisis, they should be prioritized and enacted as soon as possible. For maximum effect, this could take the form of a joint statement made by the United States, United Kingdom, and European Union (EU), which could be supplemented by senior level phone calls between leaders who have a good relationship with President Saied, like French President Emmanuel Macron.

To create an atmosphere of maximum pressure reflecting the dire situation, further statements condemning the developments and proposing steps forward, such as allowing aid to the stranded, could be issued by the US Congress and the European Parliament—particularly committees such as the Committee on Civil Liberties, Justice, and Home Affairs (LIBE) and the Subcommittee on Human Rights (DROI).

The United States and EU can also provide capacity assistance to the International Organization for Migration (IOM) to help conduct voluntary resettlement for stranded Africans who had been working or studying in Tunisia and no longer feel safe, as well as those who were hoping to migrate onwards but would now rather return home. In addition, Western countries can support the home countries of these migrants by helping them provide consular assistance. In many cases, their embassies lack the personnel and resources required to respond to a crisis of this size.

The United States and EU have strong relationships with Tunisia’s defense ministry and interior ministry, respectively, and they should be leveraged. Given the difficulties of directly influencing the infamously intransigent President Saied—and that Tunisia’s security services are perhaps the only institutions retaining significant influence over the president and are the main implementers of these policies—capitalizing on these relationships represents the West’s most practical means of influencing the situation.

As a last resort, the US should communicate that by facilitating these crackdowns in violation of international conventions—the African Charter on Human and People’s Rights, the United Nations (UN) and African Refugee conventions, the Convention against Torture, and the International Covenant on Civil and Political Rights—that Tunisia’s security services may end up excluding themselves from further funding programs. Meanwhile, Europeans can threaten to revoke the privileges that the Tunisian interior ministry’s officer class enjoys from their close partnership with Europeans to encourage Tunisia’s security services to uphold the law, cease their participation in egregious human rights abuses, and allow humanitarian organizations to tend to the stranded. This could be further communicated in bilateral conversations between European interior ministers who have recently visited Tunisia to meet with their counterparts.

Medium-term solutions

Since February, the African Union (AU) and countries whose citizens have been victimized by the racist crackdowns incited by President Saied have condemned the situation. They also remain better placed to provide diplomatic accountability measures to try and disincentivize Saied’s regime from continuing this course of action.

Alongside the AU’s responses, the EU could provide support to replicate mechanisms trialed elsewhere—such as the EU-AU-UN Tripartite Taskforce on the Situation of Migrants and Refugees in Libya—to develop and oversee sustained policy responses to help ameliorate the worsening situation of migrants and refugees in Tunisia, and build a working relationship with Tunisian authorities that could help avert such scenarios from reoccurring.

On June 11, when announcing the new Memorandum of Understanding (MoU) between Europe and Tunisia, European Council (EC) President Ursula Von der Leyen claimed that the migration part of the comprehensive package would be implemented in full respect of human rights and would become a model for migration deals with other countries. Considering the developments since, there should be clear stipulations added to the MoU to prevent mass arbitrary expulsions and violent abuse from being repeated, including accountability measures.

Alongside making a more focused, robust, and safeguarded migration pact, the European Parliament should more effectively leverage its role in budgetary scrutiny and oversight over EC spending to not only ensure the future deal is effectively implemented, but also look over existing funding packages given to the Tunisian border police. It is rumored that border guards are disgruntled that additional EU funding has yet to reach them in terms of increased salaries or new equipment and accuse the state of simply repurposing that money to its general budget. In this scenario, border guards are more inclined to accept money from traffickers and thereby enable trafficking instead of policing it. Moreover, this dynamic neutralizes any leverage or incentive this financing could provide to ensure that humanitarian standards are upheld. So, it behooves the European parliament to more closely scrutinize how its existing migration funding is being spent.  

The importance of Tunisia’s migration policy—especially given its ability to feed into other delicate issues, such as people smuggling and general regional stability—and its relationship with European migration policy should be routinely highlighted when European and US delegations visit Tunisia. Upcoming visits by European Parliament committees are a prime opportunity to initiate conversations on migration management practices, which can be followed up by identifying robust safeguards to prevent the reoccurrence of such situations.

By implementing these short-term and medium-term policy recommendations, European and US stakeholders can work towards addressing the immediate challenges while laying the groundwork for more comprehensive and sustainable solutions to the migration situation in Tunisia.

Alissa Pavia is associate director at the Atlantic Council’s Middle East Programs’ North Africa Program.

Tarek Megerisi is a senior policy fellow with the Middle East and North Africa program at the European Council on Foreign Relations.

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Progress on debt restructuring provides a glimmer of hope for developing countries https://www.atlanticcouncil.org/blogs/econographics/progress-on-debt-restructuring-provides-a-glimmer-of-hope-for-developing-countries/ Wed, 12 Jul 2023 13:00:00 +0000 https://www.atlanticcouncil.org/?p=663346 As government and private-sector creditors finally take steps to restructure debt, questions remain over their readiness to meaningfully reduce debt burdens.

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After more than three years of debt distress across the developing world, there is a glimmer of hope as government and private-sector creditors finally take the first steps to restructure debt. This progress could provide financial breathing room after a succession of economic shocks from the COVID-19 pandemic, the war in Ukraine, inflation, and sharply rising global interest rates.

But many questions remain about whether creditors truly are prepared to meaningfully reduce debt burdens. These issues likely will be on the table in India this week (July 14 to 18) when the Group of Twenty (G20) finance ministers and central bank governors gather to discuss debt restructuring and other global economic issues.

In Zambia, which defaulted on its debts in 2021, government creditors led by China have resolved months of jostling and agreed to a restructuring of $6.3 billion of the country’s more than $8 billion of debt. The agreement extends for 20 years the country’s debt-repayment schedule and lowers its annual interest bill to one percent until economic growth recovers. Now, the country’s private-sector lenders, who hold billions of dollars of government IOUs, are talking about writing down some of their Zambia loans, and in Ghana are writing off loans and restructuring dollar-denominated bonds. Meanwhile, both classes of creditors are deep in restructuring discussions with Sri Lanka, which has requested a 30 percent haircut on some bonds.

These settlements would pave the way for assistance from the International Monetary Fund (IMF) and provide a way forward—albeit a difficult one—for dozens of low-income countries that are in or nearing debt distress. This represents progress compared with a year ago, when China and the private sector were balking at a transparent negotiating process. But there are still many issues to address—especially how far China really is prepared to go in reducing the burden of its vast lending. Unlike previous global debt episodes, notably the Latin America debt crisis of the 1980s and debt relief to low-income countries early this century, there is unlikely to be a grand bargain this time around.

While the preliminary agreement with Zambia has been heralded as “an epochal shift in global finance,” the reality is that negotiations there and elsewhere are following a well-trodden path: first the seal of approval of an IMF rescue program (which in Zambia’s case was reached in 2022), with promises of IMF money once a debt restructuring is agreed to. Then the hard bargaining with government lenders, followed by talks with private creditors. This slow progress is a far cry from late 2020 when the G20 agreed on a restructuring process for the poorest countries called the Common Framework that briefly raised hopes of a rapid succession of debt reductions—hopes that were dashed largely because of foot-dragging by China and foreign lenders.

Before the emergence of China as a major creditor to middle and low-income countries during the lending spree that accompanied its Belt and Road Initiative, debt negotiations went through the IMF and the Paris Club of advanced-economy lenders. It was arguably a simpler world, not least because private-sector lenders’ debt exposure in developing countries was marginal. That changed after 2010, when institutional investors joined China in shoveling money out the door to what became known as “frontier economy” borrowers. Between 2007 and 2020, an unprecedented 21 African countries accessed international debt markets. Today, debtors must proceed on multiple tracks—the Paris Club, the Chinese government, China’s state banks and state-controlled commercial banks, and Western fund managers and money-center banks.

Some creditors question the true nature of the debt restructuring now on offer. For example, private sector lenders and analysts say privately it is not clear whether, in Zambia’s case, China has negotiated bilateral conditions that have been concealed from other lenders. They say that this could cast doubt on assurances that government creditors have provided to the IMF about restructuring arrangements. In addition, China’s insistence on extending debt repayments for decades conflicts with the Paris Club’s track record of providing relief in the form of reductions in principal owed. That could become an issue if China pursues its approach in countries where other governments are major creditors—for example, India and Japan in Sri Lanka. In that case, the model of the Zambia agreement could quickly become a muddle.

The private sector has arguably made significant strides in recognizing their loan losses, as the situation in Ghana illustrates. Lenders such as the big four South African banks are writing off as much as $270 million of their loan exposures, which equates to a haircut of almost 60 percent. And Standard Chartered Bank has set aside some $160 million for Ghanaian write-downs. This loan-loss recognition serves two purposes. First, it is an effort to inform shareholders about the banks’ overall sovereign exposure and the steps they are taking to reduce it. Second, by setting a floor on the losses they are prepared to absorb, they have a better negotiating hand in the restructuring conversations.

Meanwhile, bondholders are likely to face increasing pressure to restructure Eurobond issues—and accept haircuts—as the repayment schedule accelerates in the next two years.

A looming issue may be the response of Western banks and bondholders to China’s success in having some of its loans by state-controlled banks exempted from the Zambia agreement and classified as commercial lending. How those Chinese loans are treated—in Zambia and elsewhere—while the real private-sector creditors negotiate settlements will be a test of China’s willingness to accept the principle of “comparability of treatment” for all creditors, a key principle that Beijing publicly insisted upon as recently as April.

There are real-world ramifications to these nuts-and-bolts issues that extend beyond the politics of the restructuring process. The human cost of the debt crisis for poor countries has been severe. The UN estimated last year that fifty-four countries with severe debt problems represented about three percent of global gross domestic product, but accounted for more than one-half of the 600 million people worldwide living in extreme poverty. That number has risen sharply since the pandemic hit in 2020.

Debt payments by these countries siphon off resources that are desperately needed for health, education, and other social programs. Defaults and restructuring only make this scarcity worse. That points to the need for new sources of funding. The World Bank is under pressure to free up more money for grants and lending. Meanwhile, the IMF has increased funding for two trusts designed to meet the needs of low-income countries, including one created to help developing countries meet the immediate and long-term challenge of climate change and pandemics. About $100 billion of new resources come, in part, from the 2021 allocation of $650 billion of Special Drawing Rights to IMF member countries.

But demand for help is rising faster than the available resources, especially for the Poverty Reduction and Growth Trust, a perpetually underfunded IMF vehicle that subsidizes zero-interest loans to the poorest countries. As new lending to these nations from China and private creditors dries up, the World Bank and IMF will be hard-pressed to pick up the slack. Debt restructuring that merely extends repayment for decades without any forgiveness will only entrench the imbalance between needy borrowers and lenders whose priority is to recoup their capital.


Jeremy Mark is a senior fellow with the Atlantic Council’s Geoeconomics Center. He previously worked for the IMF and the Asian Wall Street Journal. Follow him on Twitter: @JedMark888.

Vasuki Shastry, formerly with the IMF, Monetary Authority of Singapore, and Standard Chartered Bank, is the author of Has Asia Lost It? Dynamic Past, Turbulent Future. Follow him on Twitter: @vshastry.

At the intersection of economics, finance, and foreign policy, the GeoEconomics Center is a translation hub with the goal of helping shape a better global economic future.

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In brief: The future of US-Africa trade and investment https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/in-brief-the-future-of-us-africa-trade-and-investment/ Tue, 11 Jul 2023 15:04:56 +0000 https://www.atlanticcouncil.org/?p=661930 Since 2000, US trade policy for Africa has been the African Growth and Opportunity Act (AGOA) which gives duty-free access to the US market for eligible countries in sub-Saharan Africa. With AGOA due to expire in 2025, policymakers must decide the future of US-Africa trade going forward to build on its previous achievements.

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Top lines

  • AGOA gives duty-free access to the US market for eligible countries in sub-Saharan Africa, aiming to promote African economic development alongside market liberalization and democratic governance.
  • With AGOA due to expire in 2025, policymakers in the US and Africa must decide the basis for stronger US-Africa trade going forward.
  • The future of AGOA is not guaranteed. AGOA should be renewed by the US Congress for at least a ten-year period as soon as possible. Doing so could allow African economies to capitalize on efforts to diversify supply chains away from China, supporting US strategic interests and a more resilient global economy.

WORTH A THOUSAND WORDS

In 2022, US imports of goods utilizing AGOA (or GSP) benefits was valued at $10.2 billion.  Like overall US imports from Africa, imports from AGOA beneficiaries have changed over time, driven mostly by the value of oil imports from countries like Nigeria and Angola.

THE DIAGNOSIS

Since 2000, the cornerstone of US trade policy for Africa has been the African Growth and Opportunity Act also known as AGOA.

Past work by the Atlantic Council suggests that Africa sits at the nexus of current development, climate, and security challenges. With global competition over resources, technology and influence growing, the strategic importance of establishing a new kind of relationship with Africa has become clear to the United States. With an African market of over 1.3 billion people and a combined Gross Domestic Product (GDP) of over $3.4 trillion, expanding US-Africa trade and investment is now a clear strategic priority for both the United States and African countries.

The Atlantic Council’s Africa Center is examining trade between the US and Africa to date and the impact of AGOA, and analyzing the future of AGOA after its potential expiration in 2025.  Our work draws on a survey and interviews conducted with leaders in government, business, international organizations, and civil society. The report identifies key constraints limiting trade expansion and examines emerging challenges and opportunities that will shape its future. Drawing on this analysis, the report provides actionable recommendations for policymakers and other key stakeholders on the future of AGOA.

AGOA has come to define much of United States’ commercial relationship with Africa. With AGOA set to expire in 2025 and the shifting world economy providing new challenges and opportunities, now is the time to decide the future of US-Africa trade. The analysis in this report, as well as the findings from survey responses and interviews, suggest recommendations covering three areas:

  1. AGOA itself
  2. the future of US-Africa trade more broadly, and
  3. the even broader future of US-Africa relations.

THE PRESCRIPTION

How to seize the moment

AGOA has symbolized the shift in US perceptions of Africa, augmenting aid with trade and commercial opportunity. Recognizing that the next ten years will shape economic trajectories for decades to come, the US must build on its narrative investment by embedding greater certainty for US and African investors.

  1. AGOA should be renewed by the US Congress for at least a ten-year period as soon as possible. Doing so could allow African economies to capitalize on efforts to diversify supply chains away from China, supporting US strategic interests and a more resilient global economy. 
  2. AGOA’s extension should be combined with greater certainty about AGOA eligibility, with fewer short-term eligibility decisions wherever possible. Eligibility is necessary for a country to access AGOA benefits. Doing so will boost investor confidence and support long-term economic development, which is the best way for the US to achieve its broader commercial and political goals. Greater stability in AGOA eligibility will also enhance the United States’ support for African economic integration through the AfCFTA.
  3. Existing US efforts, through USAID, USTR and other agencies, should continue and ensure that support through continental level initiatives is sufficiently attuned to local contexts and barriers. Support to countries and firms in Africa is needed to ensure that the benefits of AGOA in fueling long-term development are achieved. There is a need for stronger capacity building to translate AGOA eligibility into utilization and real export capacity. Investing in re-establishing regional trade hubs could do this, while also supporting regional trade integration and direct links between AGOA and Africa’s Regional Economic Communities. USAID should ensure all regions, including Francophone Central Africa, are supported in this work.
  4. To realize the benefits of AGOA for long-term development, African governments should rapidly develop and regularly update realistic national AGOA strategies and embed them in their economic planning and public investment.The US Congress should ensure sufficient funding for US agencies to support this process, including dedicated staff to work with African governments to draft the plans, if necessary. Support for these strategies could help set the United States’ interaction with Africa apart from other countries like China and India.Selecting a few countries to support early could make a big difference.  This could include eligible countries that are finding it difficult to meet the criteria such as the Central African Republic, Liberia, or the Democratic Republic of Congo. 
  5. To support greater investment in export-oriented sectors within African countries, the US DFC, Millennium Challenge Corporation, and the Prosper Africa initiative should align their financing and commercial facilitation with these AGOA strategies too. The future of US-Africa trade should be situated within a broader reorientation of the US-Africa relationship that builds true partnerships that not only yield economic opportunities and expanded trade but also serve longer-term social and political goals. New forms and arenas for collaboration between US and African actors could drive unique solutions in a multipolar world.  Such strategies could also include countries that are important to US-Africa trade but face eligibility constraints such as Cameroon, Ethiopia, and Somalia.

BOTTOM LINES

With so much written about the future of AGOA itself, the future of US-Africa trade more broadly, and the even broader future of US-Africa relations, a thorough examination of AGOA eligibility in 2023 is an opportunity to begin a longer conversation about the future of AGOA and US-Africa trade and investment.

As the United States reorients its international economic policy and African countries build new approaches to economic integration and collaboration, the future of US-Africa trade is ready to be defined. While setting the course for a renewed AGOA is important for maintaining business confidence, many of the challenges that African countries, firms, and individuals face will require deeper structural responses. In the push to achieve inclusive growth across the continent, capacity and investment constraints are particularly clear.

There are also immense opportunities. The rise of digital, financial, and creative products and services will shape African economies going forward. The expansion of economic and political links across the continent will provide more unified markets and supply chains, with greater economies of scale. The resources, ideas, and human capital needed to deliver global public goods and the green energy transition are already making Africa central to the future economy. Taking steps to broaden and deepen US-Africa trade and collaboration in these directions will provide the basis for more inclusive, sustainable growth and serve strategic economic and political goals for both sides.

Like what you read? Check back for our full report, coming soon.

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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How four cities are building resilience to extreme heat https://www.atlanticcouncil.org/blogs/new-atlanticist/how-four-cities-are-building-resilience-to-extreme-heat/ Fri, 07 Jul 2023 19:14:19 +0000 https://www.atlanticcouncil.org/?p=662268 Cities around the world are facing intense heat waves. But these four are taking proactive steps to prepare for and deal with extreme heat.

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The world broke the record for the hottest day ever this week—twice. On July 3, the average global temperature hit 17.01°C (62.62°F), exceeding the August 2016 record of 16.92°C (62.46°F). Then, on July 4, it rose to 17.18°C (62.92°F).

Already, cities around the world are facing intense heat waves. Several European and Southeast Asian countries broke records for their hottest temperatures. The southern United States has been hit by a long-lasting heat dome; parts of India have sweltered under 47°C (116°F) heat; and areas of North Africa reached temperatures of 50°C (122°F) this year.

The worse news? This summer will likely get even hotter. 

As the urgency of this issue becomes impossible to ignore, many local governments are taking action to build heat resilience. At the Atlantic Council’s Adrienne Arsht-Rockefeller Foundation Resilience Center (Arsht-Rock), we work closely with cities around the world to protect the people most exposed to the dangerous impacts of climate-driven extreme heat. Here are four examples.

Seville: Naming heat waves is changing the way people understand extreme heat

Seville, Spain, has been leading the charge on naming extreme heat events. So far, Seville has experienced two named heat waves: Zoe in July 2022 and Yago in June 2023. 

Seville has named heat waves through a naming and categorization system called proMETEO. This system, piloted by Arsht-Rock in collaboration with the University of Seville and Seville City Council, monitors the weather forecast and categorizes heat waves into three tiers ranging from least (Category One) to most severe (Category Three). 

Seville is in its second year of naming and categorizing heat waves. In addition to better protecting Seville’s residents, this project is creating important social dialogue on the harmful impacts of extreme heat, and it is serving as a model for other cities to pilot similar initiatives.

Miami: The world’s first Chief Heat Officer is tackling heat head-on

Miami, where temperatures routinely hit the high 90s, was the first city in the world to appoint a Chief Heat Officer (CHO). CHOs are officials supported by Arsht-Rock’s Extreme Heat Resilience Alliance who are responsible for unifying their city governments’ responses to extreme heat. 

Miami’s CHO, Jane Gilbert, has more than thirty years of experience working in climate resilience. She has worked closely with Miami-Dade County Mayor Daniella Levine Cava to launch the Miami-Dade County Extreme Heat Action Plan, which outlines nineteen key actions to protect people from extreme heat, including cooling schools and expanding access to shade and water.

In her role as CHO, Gilbert has implemented extensive heat season campaigns to raise awareness on the dangers of extreme heat. She also manages mobile Community Resilience Pods, which empower people to prepare for climate stressors through educational storytelling. 

Freetown: Outdoor market shade covers are providing relief for more than 2,300 women

In Sierra Leone’s capital, extreme heat is devastating for outdoor and informal workers, who spend long hours laboring in extreme temperatures. Many of these workers are women and girls, who face disproportionate health and social impacts from extreme heat.

Arsht-Rock has been working with Eugenia Kargbo, Freetown’s CHO, and a network of partners to address this. Through the Freetown Market Shade Cover project, Arsht-Rock installed shade covers over three outdoor markets, expanding the daily window for safe and comfortable shopping in hot conditions. 

The Market Shade Cover project has given more than 2,300 market women better working conditions and economic opportunities. By minimizing the health impacts, food spoilage, and financial losses resulting from extreme heat, this intervention has benefitted entire communities dependent on the market women. 

Santiago: New partnerships are protecting the most heat-vulnerable workers 

Even though Chile’s capital has a cool and temperate climate, Santiago has been scorched by extreme temperatures in recent years. Local authorities are taking a wide range of approaches to build heat resilience, from advocating for workers’ protection policies to providing air-conditioned ambulances to more than twenty-five communities. 

Santiago’s CHO, Cristina Huidobro Tornvall, partnered with the Chilean Security Association (ACHS), an entity representing more than one million Chilean workers, to promote heat safety measures among outdoor workers. Together, they are educating employers on how to recognize and respond to the dangers of extreme heat. 

The partnership’s goal is for employers to institute practices to protect their workers and provide health coverage for workers injured on the job. To this end, ACHS is planning to monitor how often workers seek medical care for exposure to extreme heat, which will help inform worker protection policies.

Cities are a crucial part of the solution

Severe heat can arrive with little or no warning. However, there are several steps cities can take in advance to prepare for extreme heat events.

  • Cities can conduct baseline heat risk assessments to understand which communities and parts of the city are most vulnerable to extreme heat.
  • Cities can create heat action plans that identify strategies and responsible actors in advance of extreme heat events.
  • Cities can implement educational campaigns in advance of heat seasons to build public awareness of the dangers of extreme heat.

Arsht-Rock’s Heat Action Platform brings together diverse case studies of these solutions with guidance on how to plan for, finance, and implement projects into one comprehensive platform. The platform is designed to be a step-by-step guide for those starting out their heat resilience planning, as well as a reference guide and implementation resource for cities already well into the heat-planning process.

Local leaders are positioned to take these ideas and run with them. Cities have an urgent responsibility to respond to climate change. Billions of people are already living with the impacts of extreme heat, and even more will become more vulnerable as the world continues to urbanize. We already have the solutions, knowledge, and resources needed to protect people from heat—now, we just have to take action.


Kashvi Ajitsaria is a project associate at the Adrienne Arsht-Rockefeller Foundation Resilience Center.

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Mercenary bloodline: The war in Sudan https://www.atlanticcouncil.org/commentary/podcast/mercenary-bloodline-the-war-in-sudan/ Fri, 07 Jul 2023 13:19:16 +0000 https://www.atlanticcouncil.org/?p=661879 Host and Nonresident Senior Fellow Alia Brahimi speaks with Africa experts Cameron Hudson and Munzoul Assal about the mercenary pedigree of the Rapid Support Forces.

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In Season 1, Episode 5 of the Guns for Hire podcast, host Alia Brahimi is joined by two guests. She speaks with Cameron Hudson, the former US government expert on Sudan, about the mercenary pedigree of one of the two main belligerent parties, the Rapid Support Forces, and the determinative impact this has had on the current conflict in Sudan. By fighting as mercenaries in Libya, and especially Yemen, the RSF secured a cash windfall that let it recruit in numbers to rival the size of the national army, it forged regional relationships that are now central to its resupply, and it has committed crimes and abuses in the conduct of the war which represent a detached mercenary mindset.

Alia also chats with Professor Munzoul Assal of the University of Khartoum about the danger of two parallel governments emerging in Sudan along the lines of the bifurcation in Libya; the presence of RSF fighters at the Sudanese border with the Central African Republic where the Wagner Group is deeply entrenched; and the clear and alarming possibilities of a regional conflagration.

“The origin story of the wealth is really sending the RSF out into the region as a mercenary force… Hemedti has now been able to return back to his fighting roots but doing it with a war chest that has allowed him to recruit and to resupply in such a way that he is now a rival to the authority of the country.”

Cameron Hudson, Former US government expert on Sudan

Find the Guns For Hire podcast on the app of your choice

About the podcast

The Guns for Hire podcast is a production of the Atlantic Council’s North Africa Initiative. Taking Libya as its starting point, it explores the causes and implications of the growing use of mercenaries in armed conflict.

The podcast features guests from many walks of life, from ethicists and historians to former mercenary fighters. It seeks to understand what the normalisation of contract warfare tells us about the world as we currently find it, but also about the future of the international system and about what war could look like in the coming decades.

Further reading

Middle East Programs

Through our Rafik Hariri Center for the Middle East and Scowcroft Middle East Security Initiative, the Atlantic Council works with allies and partners in Europe and the wider Middle East to protect US interests, build peace and security, and unlock the human potential of the region.

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Samantha Power on the status of LGBTQI+ rights globally, from Uganda to Ukraine https://www.atlanticcouncil.org/blogs/new-atlanticist/samantha-power-usaid-lgbtqi-inclusive-development/ Fri, 30 Jun 2023 20:15:16 +0000 https://www.atlanticcouncil.org/?p=661151 The USAID administrator addressed the challenges facing global LGBTQI+ human rights and the need for inclusive reconstruction in Ukraine.

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Watch the full event

The passage of Uganda’s law criminalizing LGTBQI+ identity is only one recent example of efforts to turn the global human-rights agenda “on its head,” said Samantha Power, administrator of the US Agency for International Development (USAID). And “it’s not just happening in Uganda,” she warned.

Power spoke at a Pride Month special edition of Atlantic Council Front Page on Wednesday, where she discussed USAID’s role in advancing LGBTQI+ inclusive development globally.

She addressed some of the agency’s most difficult challenges when it comes to achieving its inclusive development goals, including anti-LGBTQI+ discrimination—legal or otherwise—that prevents vulnerable communities from receiving needed services. “Even where there’s not a law,” Power said, discrimination is “a deterrent” that often stops people from accessing care and assistance.

Power also discussed USAID’s efforts to promote the development of a more inclusive postwar Ukraine. “Ukraine’s work to liberalize and build checks and balances and build in human-rights protections”—including for LGBTQI+ rights—“has accelerated,” she said.

She also argued for prioritizing LGBTQI+ human rights on the global stage. If the United States “[goes] quiet,” she said, “I think we would really shortchange what is distinguishing about American foreign policy.”

Power also previewed a new USAID policy promoting LGBTQI+ inclusive development, which she said would be the “first-of-its-kind.”

Below are more highlights from the discussion on USAID’s efforts to advance LGBTQI+ human rights and inclusive development, moderated by Washington Post and MSNBC journalist Jonathan Capehart.

Steps back—and leaps forward

  • Uganda’s recently passed Anti-Homosexuality Act “would set back not only the health of LGBTQI+ communities,” but the health of all Ugandans, Power said. The Biden administration has publicly criticized the bill, joining leaders in thirty-one other countries in condemning the Ugandan law.
  • Power explained that USAID works with local actors when determining how to best oppose discriminatory laws. “It’s the communities that are going to be affected by these laws that provide cues to us on how vocal to be” against anti-LGBTQI+ legislation, the USAID administrator said. Otherwise, the United States could risk becoming the center of attention and “potentially triggering nationalism and other forces.” Such a backlash, Power said, is “just what people who would seek to repress or terrorize vulnerable communities would like to see happen.”
  • Despite challenges and setbacks in some countries, there are nevertheless signs that international LGBTQI+ human-rights norms are gaining ground, Power explained: Same-sex marriage legalization, as was recently accomplished in Estonia, as well as the decriminalization of same-sex relations in countries such as Barbados and Singapore indicate that “these principles are getting traction,” she said.

Inclusive reconstruction in Ukraine

  • Power explained that Ukraine has made progress on LGBTQI+ rights since the start of Russia’s full-scale invasion; she said it is “remarkable that a country that’s fighting for its life and its people” has also managed to extend LGBTQI+ protections through legislative measures, regulations, and judicial vetting.
  • Power argued that Ukraine’s mission to “[integrate] into Europe,” will encourage the Ukrainian legal and social ecosystems to increase their support for LGBTQI+ communities. “The criteria that Ukraine is going to need to meet, the roadmap and so forth, is going to entail much stronger protections than have existed in the past,” she said.
  • The commitment to inclusive postwar reconstruction in Ukraine is in line with the Ukrainian peoples’ motivation for resisting Russian aggression, Power argued. “Part of what Ukraine is fighting for and part of what Russia is trying to squelch is liberalization, is [a] broad understanding of who human rights protections apply to,” she said.

The role of LGBTQI+ human rights in US foreign policy

  • Prioritizing LGBTQI+ human rights is consistent with the United States’ economic development and foreign policy interests, Power said. “It is in our interest to fight repression,” she said. “It is in our foreign-policy interest to stand up for our values.”
  • Power argued that the United States’ human-rights commitments obligate it to advocate LGBTQI+ rights in its foreign policy, leaving no room for neutrality on the issue, Power said. “Imagine the counterfactual,” she said. A US foreign policy that did not promote LGBTQI+ rights would “legitimate some of the [anti-LGBTQI+] rhetoric and actions and legal measures that are being put forward,” she said.
  • Power pushed back on the criticism that promoting global LGBTQI+ human rights abroad interferes with other countries’ affairs. She said that the United States hears such complaints about interference often from Russia—even as it invades Ukraine—as well as from countries that sell surveillance technology and spread disinformation beyond their borders. “The noninterference claim is usually made in a selective way,” she said.

Daniel Hojnacki is an assistant editor of editorial at the Atlantic Council.

Watch the full event

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Russian War Report: Kremlin denies that it targeted civilians in a missile attack on a pizza restaurant https://www.atlanticcouncil.org/blogs/new-atlanticist/russian-war-report-missile-strikes-kramatorsk-restaurant/ Fri, 30 Jun 2023 19:00:00 +0000 https://www.atlanticcouncil.org/?p=661201 A deadly Russian missile strike on a cafe in Kramatorsk leaves a dozen dead and more injured. Post-mutiny, Wagner's future in Africa is up in the air.

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As Russia continues its assault on Ukraine, the Atlantic Council’s Digital Forensic Research Lab (DFRLab) is keeping a close eye on Russia’s movements across the military, cyber, and information domains. With more than seven years of experience monitoring the situation in Ukraine—as well as Russia’s use of propaganda and disinformation to undermine the United States, NATO, and the European Union—the DFRLab’s global team presents the latest installment of the Russian War Report

Security

Military camps for Wagner reportedly under construction in Belarus

Tracking narratives

Pro-Kremlin sources spreading disinformation to justify missile strike in Kramatorsk

Kremlin blames Colombian victims for the injuries they sustained in the Kramatorsk attack

Media policy

Prigozhin’s online assets reportedly blocked in Russia

International Response

Questions abound over the future of Wagner contracts and Prigozhin-linked businesses in Africa

Analysis: With Wagner mutiny, Russia’s loses plausible deniability about its involvement in Africa

Investigation sheds light on how Putin’s childhood friends allegedly evade sanctions

Military camps for Wagner reportedly under construction in Belarus

Russian independent outlet Verstka reported on the construction of camps for Wagner forces near Asipovichi, Mogilev Oblast, located in Belarus approximately two hundred kilometers from the Ukraine border. According to Verstka’s local forestry source, the area will cover 2.4 hectares (5.9 acres) and accommodate eight thousand Wagner fighters. The source also claimed that there will be additional camps constructed. Family members of Wagner fighters also confirmed to Verstka that they were deploying to Belarus. 

Radio Svaboda, the Belarusian-language edition of Radio Liberty, reviewed satellite imagery from Planet Labs that suggested signs of expansion at the Unit 61732 military camp adjacent to the village of Tsel, twenty kilometers northwest of Asipovichi. The outlet interviewed Ukrainian military analyst Oleg Zhdanov, who suggested it was “too early to tell” as to whether the military camp’s expansion is specifically for Wagner forces. “Very little time has passed to start building a camp specifically for the Wagnerites—it’s unreal,” Zhdanov told Radio Svaboda.

Location of possible construction at the Unit 61732 military camp in Tsel, Belarus. (Source: Planet Labs)

On June 27, in his first speech after the Wagner mutiny, Russian President Vladimir Putin reaffirmed the deal that ended the rebellion on June 24 in which Yevgeniy Prigozhin would relocate to Belarus. Putin praised those Wagner fighters who did not participate in the revolt and said they could sign a contract with the Russian Ministry of Defense of other services. He added that other mercenaries who do not want to join could go either home or follow Prigozhin to Belarus.

Eto Buziashvili, research associate, Tbilisi, Georgia

Pro-Kremlin sources spreading disinformation to justify missile strike in Kramatorsk

Pro-Kremlin sources denied Russia targeted civilians when a missile struck a crowded pizza restaurant in Kramatorsk, killing at least twelve civilians and injuring more than fifty others. According to this narrative, RIA Pizza was actually a military base hosting US and Ukrainian soldiers. To support the claims, pictures taken after the strike were published on Telegram and Twitter.

To support the claim that soldiers of 101st Airborne Division were located at the pizza “military base,” pro-Kremlin sources circulated grisly footage of the attack aftermath recorded by freelance journalist Arnaud De Decker. The clip shows a man wearing a morale patch of a US flag with the words “Always Be Ready: 5.11 Tactical.” 5.11 Tactical is a military apparel company that sells branded merchandise, including morale patches, worn to offer support to various causes and slogans but not used official unit patches. Various types of 5.11 Tactical’s “Always Be Ready” patches are readily available for purchase online.

Top: A 5.11 Tactical morale patch for sale on its website. Bottom: Image taken during the aftermath of the Kramatorsk attack showing a man wearing the same morale patch on his helmet. (Source: 5.11 Tactical/archive, top; @arnaud.dedecker/archive, bottom)

Similarly, another post from Aleksandr Simonov’s Telegram channel that a man wearing an 101st Airborne t-shirt was a member of the US Army division. These t-shirts are also readily available from online retailers.

Montage of three screenshots from online retail websites selling 101st Airborne t-shirts. (Sources: top left, Etsy/archive; bottom left, Predathor/archive; right, Allegro/archive)
Montage of three screenshots from online retail websites selling 101st Airborne t-shirts. (Sources: top left, Etsy/archive; bottom left, Predathor/archive; right, Allegro)

Sayyara Mammadova, research assistant, Warsaw, Poland

Kremlin blames Colombian victims for the injuries they sustained in the Kramatorsk attack

In addition to pro-Kremlin accusations that the Kramatorsk attack targeted a base housing US Army soldiers, Kremlin influencers also targeted citizens of Colombia, three of whom were injured in the attack, for being at the site of the incident. Colombian President Gustavo Petro said the attack targeted “three defenseless Colombian civilians” in violation of the protocols of war and called for the Colombian Foreign Ministry to submit a note of diplomatic protest to Russia. While the Kremlin acknowledged launching the attack, it insisted the assault struck military personnel rather than civilians.

The three Colombian citizens injured in the attack include acclaimed Colombian writer Hector Abad Faciolince; Sergio Jaramillo Caro, who previously led Colombia’s peace negotiations with FARC rebels; and Ukrainian-based journalist Catalina Gomez. According to the New York Times, Abad and Jaramillo were in Kramatorsk “collecting material” in support of their initiative, ¡Aguanta Ucrania! (“Hang On Ukraine!”), which seeks to garner support for Ukraine in Latin America.

Following the attack, Colombian influencers and officials criticized the attack through media outlets and social media accounts in Spanish. Danilo Rueda, Colombia’s current high commissioner for peace, issued a statement expressing support for the victims without mentioning Russia, while the Ministry of Foreign Affairs expressed its “strongest condemnation of the unacceptable attack by Russian forces on a civilian target.” 

Gomez, who was injured in the attack, broadcast a video for France 24 from the site of the explosion. Meanwhile, Abad and Jaramillo conducted interviews with Colombian media outlets such as El Tiempo in which they described the incident.

Actualidad RT, a Russian media outlets with enormous reach in the Spanish-speaking world, insisted that the victims of the attack were mercenaries and instructors of NATO and Ukraine rather than civilians. Actualidad RT quoted statements from Igor Konashenkov, spokesperson for the Russian Ministry of Defense,  and Kremlin spokesperson Dmitri Peskov, who said the attack struck “military targets” and that “Russia does not attack civilian infrastructure.” Actualidad RT promoted its claims via Twitter and Facebook multiple times on June 28.

Colombian radio station WRadio interviewed Kremlin foreign policy spokesperson Maria Zakharova on the morning of June 28. Zakharova stated that the restaurant was a Russian military target and called for an investigation into Victoria Amelina, a Ukrainian writer who was gravely injured while purportedly hosting the Colombians at the restaurant, claiming without evidence that Amelina had prior knowledge that the restaurant was a military target. Zakharova reiterated this statement after a WRadio journalist asked her to confirm the accusation. In contrast, Abad stated that it was Gomez who suggested they visit the restaurant, and that she apologized for doing so after the attack.

The Russian embassy in Colombia amplified Zakharova’s narrative later that same afternoon and evening. On Twitter, the embassy insisted that the city was “an operational and logistical-military hub, not a suitable place to enjoy Ukrainian cuisine dishes.” It also seemed to celebrate that the “reckless trip [of the Colombians] did not turn into an irreparable tragedy.”

Daniel Suárez Pérez, research associate, Bogota, Colombia

Prigozhin’s online assets reportedly blocked in Russia

Over the course of the thirty-six-hour Wagner mutiny, the Kremlin attempted to limit information about Yevgeniy Prigozin on Russian social media and search engines, eventually blocking websites affiliated with Prigozhin. On June 24, the Telegram channel of Russian state-owned propaganda outlet RT reported that several Prigozhin-controlled media outlets including RIA FAN, People’s News, and Patriot Media Group were no longer accessible in parts of Russia. RT added that the reason for their disappearance was unknown. Similar reports appeared in Mediazona and several Telegram channels

The DFRLab used the Internet censorship measurement platform OONI to verify the claim and check the accessibility of RIA FAN within Russia. OONI detected signs that riafan.ru was blocked in the country. 

Internet censorship measurement platform OONI detected the apparent blocking of Prigozhin-owned media outlet RIA FAN. (Source: OONI)

On June 29, independent Russian outlet The Bell claimed the Kremlin was searching for a new owner for Patriot Media Group, which includes media assets associated with Prigozhin. The following day, multiple Russian outlets reported that Prigozhin had dissolved Patriot Media Group.

Eto Buziashvili, research associate, Tbilisi, Georgia

Questions abound over the future of Wagner contracts and Prigozhin-linked businesses in Africa

For years, Wagner has acted as Russia’s primary form of influence in Africa—spreading disinformation and propaganda, securing military contracts, and exporting natural resources to support Putin’s war effort. Following Prigozhin’s attempted mutiny, the future of Wagner’s operations on the continent has come into question. While it is highly unlikely the Kremlin would willingly abandon its influence in Africa, if Wagner is retired or its troops absorbed into the Ministry of Defense, it is uncertain who would maintain the group’s operations on the continent.

Russian Foreign Minister Sergei Lavrov confirmed that Russia’s work in Africa will continue. In a TV interview with Russia Today, Lavrov said, “In addition to relations with this PMC the governments of CAR and Mali have official contacts with our leadership. At their request, several hundred soldiers are working in CAR as instructors.”

A top advisor to Central African Republic President Faustin-Archange Touadéra appeared unconcerned about the weekend’s events. Speaking of Wagner’s military instructors, Fidèle Gouandjika said, “If Moscow decides to withdraw them and send us the Beethovens or the Mozarts rather than Wagners, we will have them.” In a statement released to its Telegram channel, the Officer’s Union for International Security—a US-sanctioned Wagner front company operating in CAR—claimed CAR’s defense minister had apologized for Gouandjika’s remarks. It quoted Defense Minister Claude Rameaux Bireau as saying, “The people of the CAR are grateful to the Russian instructors of Wagner, ask any Central African on the streets of Bangui or in the village of the CAR—he will confirm my words.”

In Mali, where Wagner forces have taken over responsibility for pushing back jihadists after the departure of French forces, the online outlet Mali Actu reported that the situation could dramatically impact Mali. “This situation raises major concerns about the security, stability and sovereignty of Mali, as well as the impact on the local population and counter-terrorism efforts,” it wrote.

Tessa Knight, research associate, London, United Kingdom

Analysis: With Wagner mutiny, Russia loses plausible deniability about its involvement in Africa

While Wagner’s future in Africa remains uncertain, it is important to consider that the Wagner Group not just a paramilitary force. It is also a conglomerate of companies active in different sectors, from mining and logistics to political warfare and moviemaking, able to travel the spectrum between private entrepreneurism to state proxy. This flexibility has previously allowed Moscow to deploy Wagner to act as a force multiplier in Africa while simultaneously denying Russia’s direct presence on the continent. In Africa, Russia has used Wagner multiple times as part of a strategy to help authoritarian leaders stay in power and gain a pro-Russian military presence on the ground, all while maintaining plausible deniability. Until now, the positive outcomes of this strategy have far exceeded the costs for the Kremlin, as Russia has built a strong network of African influence with relatively little effort, securing concessions in strategic extractive industries, and expanding military-to-military relations on the continent.

However, this principle of plausible deniability, which made Wagner so successful and so useful for Moscow as an extension of its foreign policy and influence, is now damaged. As previously noted, Russian Foreign Minister Sergei Lavrov, as well as Putin, publicly confirmed direct links between Wagner and the Russian state apparatus.

Africa is intimately linked to Wagner: In the wake of Wagner’s involvement in Syria, Africa became the scene of the group’s expansion. Engaging in Sudan, the Central African Republic, Libya, Mozambique, Madagascar, and Mali, Wagner employed an opportunistic strategy of supplying security while taking concessions to mine natural resources. While its forces were in most cases invited to stabilize fragile states, its actions actively invited further instability, creating more opportunities and a greater demand signal for its services, ultimately granting renewing opportunities to Moscow to reinforce its footprint in the continent.

While denying direct links to Wagner’s actions in Africa might have become more difficult for the Kremlin, Russia is unlikely to waste the network of influence built by the group in recent years. Instead, Moscow will likely continue to deploy hybrid tools such as Wagner, although organized in different shapes and forms, so Russia can continue displacing Western influence, exploiting natural resources, and evading sanctions through dozens of front companies.

Mattia Caniglia, associate director, Brussels, Belgium

Investigation sheds light on how Putin’s childhood friends allegedly evade sanctions

On June 20, the Organized Crime and Corruption reporting project (OCCRP) published a series of investigations titled “The Rotenberg Files” that shed light on the business dealings and alleged sanctions evasion attempts of Boris and Arkady Rotenberg, close friends of Russian President Vladimir Putin. The report is based on fifty thousand leaked emails and documents, examined by journalists from seventeen outlets. The OCCRP said the leak came from a source who worked for the brothers at a Russian management firm. The OCCRP investigation was conducted in partnership with the Times of London, Le Monde, and Forbes, among others.

Boris and Arkady Rotenberg are childhood friends of Putin. The billionaire brothers faced Western sanctions amid Russia’s 2014 annexation of Crimea, but their lavish lifestyles do not appear to have been impacted. 

According to the OCCRP, the leaked documents demonstrate how the Rotenberg brothers allegedly used Western lawyers, bankers, corporate service providers, and proxies to evade sanctions. 

One of the report’s findings also alleges the brothers maintain business links to Prince Michael of Kent, a cousin of the late Queen Elizabeth II who was previously accused by the Sunday Times and Channel 4 of profiting off close access to the Kremlin. According to the latest investigation, “Prince Michael distanced himself from earlier ties to the Putin regime in the wake of the 2022 invasion of Ukraine. But leaked emails and corporate records show he co-owns a company with two Russian businessmen who helped billionaire oligarch and Putin ally Boris Rotenberg dodge Western sanctions.” 

Another investigation from the Rotenberg files reported that Putin’s eldest daughter regularly visited a holiday property financed by Arkady Rotenberg in an exclusive Austrian skiing destination. Documents reviewed by the OCCRP suggest that the house was purchased by a Cypriot company in 2013 with a loan from a bank then owned by Arkady, using funds invested by another company he owned. Other records suggested that the former romantic partner of Putin’s daughter is connected to the company that owns the Austrian property. Residents claim to have seen Putin himself at the Kitzbühel residence, though this has not been confirmed. 

The Rotenberg brothers and Prince Michael declined to comment to the OCCRP investigative consortium.

Ani Mejlumyan, research assistant, Yerevan, Armenia

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Boko Haram is a ghost. The US needs to recognize that. https://www.atlanticcouncil.org/blogs/africasource/boko-haram-is-a-ghost-the-us-needs-to-recognize-that/ Fri, 30 Jun 2023 17:21:53 +0000 https://www.atlanticcouncil.org/?p=660368 Nigeria's new president will need to get all the help he can get—including from the United States—to address the jihadist insurgency that has engulfed the country’s north.

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As Nigeria’s newly elected President Bola Tinubu takes stock of what lies ahead for him, he faces the challenge of achieving a lasting peace and keeping civilians safe, an issue with which his predecessors significantly struggled. To finally accomplish this task, he’ll need to address the jihadist insurgency that has engulfed the country’s north for the last decade.

Despite a long-term military counterterrorism effort, Nigeria still ranks as the eighth most-affected country on the Global Terrorism Index. Because of the persistence of the problem, Tinubu will need all the help he can get, including from the United States. Thus—especially at a time when the Sahel and coastal West Africa are embroiled in ever-worsening security crises—it may seem illogical for the US State Department to remove Boko Haram, once considered the world’s deadliest terrorist groups, from the list of Foreign Terrorist Organizations (FTO).

However, this action is long overdue. To designate a group as an FTO, the State Department must demonstrate that 1) the group is a foreign organization, 2) the group is engaged in, or retains the capability and intent to engage in, terrorist activity and 3) this activity threatens US citizens, interests, or national security. The US secretary of state must revoke a listing if they find “that the circumstances that were the basis of the designation have changed in such a manner as to warrant a revocation.”

Sure, the circumstances have not changed. But the circumstances never met these criteria to begin with because Boko Haram, one of Africa’s most well-known terrorist organizations, does not exist at all. Ultimately, “unlearning” this term will yield more accurate and valuable insights into the reality of the threat. Revoking the designation will set the United States and its partners on a more productive path toward finally resolving the violence in Nigeria.

The source of the misnomer

Around 2005, a fundamentalist Islamist sect emerged in northern Nigeria under the direction of Mohammed Yusuf. He began preaching a specific interpretation of the Quran, and one of his core arguments was that Nigerian Muslims should reject Western education and schools that had been introduced under British colonial rule. Because of this message, locals began calling him and his followers “Boko Haram,” which translates to “Western education is forbidden” in the Hausa language. Outsiders used this phrase as a derisive term to refer to this secretive sect, their followers, and other suspected affiliates.

In 2009, Yusuf’s sect staged an uprising across several northern states following escalating tensions with the state police. Within a matter of days, the movement was essentially eliminated by security services in a brutal crackdown (killing approximately eight hundred members in just a few days) and Yusuf was taken into custody and then executed shortly after. Since then, several movements have emerged in the region. The most active group has been Jamāʿat Ahl al-Sunnah li-l-Daʿawah wa al-Jihād (JAS), which was founded around 2010 under the leadership of Abubakar Shekau. His organization is responsible for many of the murders and violent incidents in the country over the last decade. Several factions have split from JAS, including Ansaru in 2012, which later rejoined JAS and then splintered again. In 2016, a third group emerged that called itself Islamic State-West Africa Province. They have all, at various times, been active across the region.

What’s in a name?

“Boko Haram” doesn’t really fit into that history. From the first uses of the term to describe Yusuf’s sect, locals have repurposed the name to describe suspected fundamentalist and Islamist extremism in the region. All these operations and more, including a wide array of non-terrorist criminal and gang activity, have variously been attributed to “Boko Haram” by government officials, state security forces, journalists, and locals who lacked complete information about what they were describing.

In short, the use of the name survived even as the actual insurgent organizations in the region changed affiliations, splintered, or disbanded.

Thus, since the early years of the violence, many observers believed they were witnessing the rise of “Boko Haram,” but this perception did not correspond with the activity on the ground and the constellation of terrorist organizations (none of whom used the name) in the region. The ultimate challenge, therefore, isn’t just the use of the wrong name, but what it signifies: It gives an inaccurate impression that there is a singular operational group with a clear ideology and an organizational history. Researchers and experts have analyzed the activity in the region through this lens, bringing a host of largely unrelated activity under the umbrella of the supposed entity. In late 2013, when the State Department designated “Boko Haram” as an FTO, US decision makers seemed to be influenced by what the British anthropologist Ruben Andersson has called “the Timbuktu syndrome”—the mapping of the West’s jihadist fears onto the world’s less familiar peripheries.

Why delisting matters

The State Department’s FTO designation is essentially targeting a ghost. Delisting the organization would have several tangible benefits.

Most importantly, it would streamline the resources the United States dedicates to countering terrorist activity in northern Nigeria. An FTO designation unlocks new authorities for government agencies to target terrorists, but it also requires agencies to follow through and enforce these designations. Due to the host of violence and petty criminal activity that has mistakenly been attributed to “Boko Haram,” the United States is pouring resources into addressing unaffiliated crime and issues that fall solely under the jurisdiction of the Nigerian government without realizing any stabilizing counterterrorism benefits.

Removing “Boko Haram” and instead correctly listing JAS will also benefit the national research apparatus, including academic institutions, think tanks, and government agencies. Since the early years of the violence, independent researchers have helped shape the US approach toward “Boko Haram” and informed US counterterrorism strategies, including military involvement, intelligence collection, and humanitarian assistance. Researchers and academics have had no reason to question the existence of “Boko Haram” when conducting research on the region, which has allowed for persistent uncertainty to dominate the field. As a result, attempts to analyze the confusing array of activity and operations that have been linked to “Boko Haram” have yielded weak insights and less productive recommendations.

For example in 2021, two of the most influential and long-standing leaders in the region—Shekau and Abu Musab Al-Barnawi—were declared dead. For counterterrorism officials, whom Shekau had eluded for almost a decade, this development marked a welcome shift. With the en masse surrender of fighters formerly associated with JAS, some hoped that they had finally witnessed the end of “Boko Haram.” However, many scholars and experts believe that a fundamental aspect of the “group” is its perpetual adaptability, which in fact is largely driven by the loose application of the term to violent events in Nigeria. Thus media organizations, for example, are still publishing articles on new purported attacks by the “organization.” Absent a rejection of “Boko Haram,” the reliance on the term thus ultimately invites a perpetual motion of resurgence that leaves no real end to the violence in sight.

By delisting “Boko Haram,” the State Department will serve its own interests by setting new analyses and inquiries on the right track to accurately identifying terrorist activities and trends in the region. Without this change, there are two grim yet likely consequences. Counterterrorism research projects and resulting US strategies will continue to operate based on avoidable misconceptions and incomplete information on the violence. And more concerningly, without a real reckoning over the existence of the “group,” every new instance of violence in northern Nigeria risks becoming engulfed in the thickening fog of suspected “Boko Haram” activity.

The responsibility now lies with the global collective, and with these US State Department officials in particular, to consciously and deliberately unlearn the deep-seated belief in the “organization’s” very existence.

Alexandra Gorman is a young global professional with the Africa Center and is a masterscandidate at Johns Hopkins University in the Global Security Studies program. As an undergraduate at Duke University, she received high honors on her senior thesis, Nigerias Militant Jihadism in the Mirror of the Media: the Creation of Boko Haram.’”

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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Maximizing US foreign aid for strategic competition https://www.atlanticcouncil.org/in-depth-research-reports/report/maximizing-us-foreign-aid-for-strategic-competition/ Thu, 29 Jun 2023 14:30:00 +0000 https://www.atlanticcouncil.org/?p=657115 A fully developed strategy for using foreign aid across all sectors—economic, education, security assistance, and democracy support—can provide critical reinforcement to the military and economic pillars of strategic competition.

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Introduction

The United States has reshaped how it uses military and economic tools to compete with China, Russia, and other adversaries. The United States is increasingly adept at deploying military assets, as well as a range of financial sanctions or trade deals, to weaken China or Russia’s position and advance its own. Yet, the United States has not calibrated all statecraft tools for this competition. This includes how and where it uses foreign aid.

For more than fifty years, foreign aid has been a core form of US engagement in the developing world. To advance its interests, the United States has provided loans, technical assistance, and direct budget support to developing nations to promote economic growth and more representative forms of governance.

A fully developed strategy for using foreign aid across all sectors—economic, education, security assistance, and democracy support—can provide critical reinforcement to the military and economic pillars of strategic competition. To be sure, the United States has reorganized parts of its bureaucracy and launched new initiatives to enhance how it uses foreign aid to compete with China. The US Department of State recently launched a new Office of China Coordination, informally known as China House, to coordinate China policy. The Biden administration announced a flagship Group of Seven Plus (G7+) initiative for the advancement of strategic, values-driven, and high-standard infrastructure and investment in low- and middle-income countries. Congress initiated foreign-aid funds dedicated to countering Chinese malign influence in foreign political systems.1 New embassies in Vanuatu, the Solomon Islands, and Tonga, among other potential locations, are welcome developments that will provide the sustained presence necessary to engage governments and push back against Beijing’s influence, as well as help identify ways to use foreign aid to compete.

These changes are necessary, but far from sufficient to maximize the impact of foreign aid to compete with China and Russia. The power of foreign aid as a tool of US influence is not lost on its adversaries. The most prevalent example is China’s Belt and Road Initiative (BRI), through which the People’s Republic of China (PRC) has spent hundreds of billions of dollars for years to expand its influence in developing nations. Recently, China has increased BRI spending and shifted from its original focus on infrastructure megaprojects to the less capital-intensive, but still impactful, fields of governance (e.g., training elected officials in Beijing’s governance model); funding for academic departments to promote pro-Chinese narratives; green-energy projects; and funding for pro-China media outlets.2 Under the BRI umbrella, China uses foreign aid in these and other sectors to promote policies and politicians favorable to PRC interests. The United States is, therefore, compelled to play a game of catchup.

Fully harnessing the potential of US foreign aid in this struggle requires fundamental reforms to the congressional processes involved in overseeing aid allocations and earmarks; reforms to bureaucratic agencies tasked with spending foreign aid; improvements to US modes for delivering this assistance; and a narrowing of scope to areas most critical for advancing US interests. Needed reforms include the following.

  • Realign spending to focus on allies and countries strategically important to US competition with China and Russia, including reconsidering assistance mechanisms based solely on income level, with an aim of investing in allies and partners that advance US interests.
  • Make delivering for allies and shoring up democracy core pillars guiding how the United States uses foreign aid to compete with China and Russia. Investments in strong democratic institutions—such as political parties, independent legislators, independent media, and civil society—will yield dividends in countering foreign authoritarian influence.
  • Invest to empower pro-democracy elements in backsliding or authoritarian countries. The United States must respond asymmetrically in countries with pervasive authoritarian capture, using foreign assistance in ways that empower individuals and institutions to expose and put pressure on the regime elements that perpetuate corruption and enable foreign influence.
  • Congress should pass legislation (the Non-Kinetic Competition Act) requiring the executive to submit multiyear plans outlining the US approach—harnessing all nonmilitary statecraft tools, including foreign aid—to competing with China in select priority countries.
  • Focus on geography and interests, rather than sectors, to ensure maximum flexibility, strategies rooted in country-specific needs, and longer-term planning.
  • Increase spending to expand partner-nation resilience to Beijing and Moscow coercion and cooptation. Strong democratic institutions increase a country’s ability to detect, prevent, and mitigate Chinese Communist Party (CCP) influence operations. Priorities should include support for independent media, parliamentary diplomacy, and educational and technical exchanges, all of which have proven effective at building democratic resilience to foreign authoritarian influence.
  • Empower the State Department’s Office of Foreign Assistance Resources to fulfill its mandate of aligning foreign aid with policy goals and maximizing impact. Enabling the Department of State to take the lead on foreign policy and control aid allocations will ensure that aid is appropriately leveraged to advance specific foreign policy objectives.
  • Lengthen the time horizon for US foreign-aid programs and objectives from a single year to ten. Democracy, rights, and governance programming—as well as initiatives in other sectors germane to competition—requires longer-term investment to develop strong and resilient institutions, political parties, and processes. US agencies and implementing partners need longer project times to maximize impact.
  • Limit branding waivers. The United States benefits from populations and governments knowing who provides aid, and its marketing needs to reflect as much.
  • Focus on advancing interests, rather than “localization” targets. The US Agency for International Development (USAID) and State Department should pursue partnership approaches best positioned to achieve US interests in the target country. In most, if not all, cases, this will involve working through international nongovernmental organizations (NGOs) that collaborate with and, as needed, build the capacity of local partners.

With the aim of encouraging the United States to more strategically use foreign assistance to advance its policy objectives, this paper outlines why the threat posed by China and Russia requires more than a kinetic solution, and why and how foreign aid is essential to winning this competition; the current US approach to foreign assistance—where it spends, on what, and via which bureaucratic mechanisms—and its strengths and shortcomings; historical lessons from using US foreign aid for strategic competition, principally during the Cold War, that are applicable today; and recommendations for reforming the US foreign-aid infrastructure, regulations, and approach to better position the United States to compete.

I. The authoritarian threat has no purely military solution

China and Russia are often portrayed as purely military threats that warrant entirely kinetic solutions. To be sure, US military deterrence through a strong Army, Navy, and Air Force—with nuclear capabilities as a foundation—will remain essential to strategic competition. Kinetic options are necessary, but not sufficient. Competition with China and Russia is playing out not only in the sea lanes of the Indo-Pacific or Ukraine’s battlefields, but in the halls of parliaments in developing nations, in efforts to influence the post-conflict political systems of war-torn countries, and at the United Nations (UN), where both China and Russia endeavor to reshape the liberal world order.

China’s primary threat to the United States is undoubtedly a military one. It is amassing weapons sufficient to invade Taiwan, and has expanded its blue-water navy with an eye toward rivaling, if not supplanting, US capabilities. Yet, the PRC is also using political and economic tools to expand its influence in developing states at the expense of US objectives.

The CCP is increasingly using economic leverage and elite capture to exert political influence, deploying information operations, party-to-party ties, and, in some cases, export of its authoritarian governance model to create favorable conditions in other countries that enable the PRC to advance its local and global interests. This includes extracting natural resources critical to its domestic production and economic growth, expanding military basing essential to Chinese military deterrence and expanded control, and coopting politicians who serve these ends and can be counted on to vote with China at the UN on issues ranging from criticism of human-rights violations in Xinjiang to the future of the International Telecommunications Union and global internet governance. Together, these tactics are corroding democratic governance and popularizing authoritarian governance in countries the world over.

The BRI has been the crown jewel in the CCP’s global influence campaign. Nearly one hundred and fifty countries from every region of the world have signed on to the BRI, presenting a significant opportunity for the PRC to exert economic and political influence on a regional and global scale.3 According to research conducted by the International Republican Institute looking at PRC influence across country contexts, “growing trade, financial, and business ties are the foundation of the PRC’s efforts to build influence in other countries’ politics.”4 The CCP strategically deploys economic dependence, leverage, and coercion, in addition to elite capture, to develop pro-PRC constituencies in partner countries and advance pro-PRC policies. Thus, the BRI fits into the CCP’s broader efforts to create a world safe for the party and its interests, which Chinese leader Xi  Jinping proposes achieving via three initiatives that collectively articulate the CCP’s vision for the globe, titled the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative.5

The Global Development Initiative (GDI) seeks to expand the BRI to advance “people-centered” development, China’s catchphrase for its model of development that prioritizes economic advancement at the expense of human rights. The GDI—and PRC promotion of it—is explicit in its rejection of “Western” definitions of development, which incorporate human rights as a core tenet.6 China has been rallying countries to join the GDI, with vague promises of PRC support to help them achieve their Sustainable Development Goals for 2030, with a focus on poverty and hunger alleviation and increased access to clean energy. The PRC has established a group of “Friends of the Global Development Initiative” at the UN, which counts some sixty members.7 The Global Security Initiative (GSI) is the CCP’s vision for building a new global “security architecture” rooted in the CCP’s definition—and model—of security and stability.8 With aims to increase CCP influence at the UN through increased funding and diplomatic engagement, the expansion of PRC training programs to military and police, and an expanded role serving as an arbiter in international conflicts, the GSI signals China’s intent to return to its self-avowed rightful place at “the center for the world stage.”9 Without naming the United States and Europe, the CCP through GSI makes clear that it seeks to provide an alternative model of alliances or “circle of friends” to counter US interests, with a particular focus on the developing world in Africa, Southeast Asia, the Middle East, Latin America, and the Pacific islands.10

The Global Civilization Initiative (GCI) is the PRC’s new framework for promoting its governance model globally, building on the foundational work of the International Liaison Department supporting political parties around the world. Whereas such party-to-party exchanges once sought to build the legitimacy of the CCP, they are now focused on advertising the value of the PRC’s system of governance more generally. The GCI formalizes this recent trend, emphasizing the need for respect for a plurality of governance models. Speaking at the World Political Parties’ Conference, organized by the CCP in March 2023, General Secretary Xi Jinping extolled the PRC’s model of “a better social system,” noting that China’s experience has broken the myth that “modernization=Westernization.”11 Implicit in the GCI, with its calls for understanding “different civilizations’ understanding of values” and models, is an attempt to popularize the CCP’s model of governance and help it realize its vision of a revised global order with a CCP-led China as the central node of globalization and global governance in the decades to come.

Collectively, these three initiatives are part of China’s overall strategy to promote authoritarian solutions to the mounting challenges facing developing democracies. They have the potential to undermine the principles of liberal democracy that buttress the extant rules-based world order. For many developing countries, PRC investment and trade are an economic necessity. They are, however, never free of conditions, despite PRC claims to the contrary. Whether the terms mandate that PRC-financed infrastructure be awarded to PRC-based companies, eschew existing environmental standards, or subvert transparency and accountability disclosure terms on the contractual arrangements, PRC entities’ business and negotiating practices often have adverse effects on the recipient countries’ finances and political systems.12

From a security standpoint, China’s promotion of the concept of “indivisible security,” used to justify Russia’s invasion of Ukraine, and its “aims to reshape norms of international security to be favorable to China and other authoritarian regimes while delegitimizing traditional military alliances,” as the US-China Economic and Security Review Commission has noted, are deeply worrying.13 Moreover, its proclivity to export repression beyond its borders poses a serious threat to developed and developing nations alike.

China has utilized “public security” as an entry point for establishing overseas police stations in fifty-three countries around the world, providing an entry point for PRC law enforcement to engage in transnational repression and crack down on dissent and political expression among the Chinese diaspora.14 In countries with large diaspora populations, the CCP has also relied upon triads, or crime syndicates, to intimidate its critics and further its objectives at the local level. Moreover, politically, China’s promotion of its authoritarian governance model undermines good governance globally, fueling democratic backsliding and legitimizing the rise of authoritarian actors from El Salvador to Belarus.

All of this has the potential to undermine US interests on everything from internet governance to human rights, while undermining US global leadership. These tactics have dire consequences for the United States, yet the United States cannot effectively address them with purely military or trade/sanctions solutions. Military responses, whether ship deployments or arms transfers, do not help strengthen the institutions and civil society needed for countries to be resilient to PRC influence operations, or to build an alliance of democracies to counter a growing autocratic threat.

Like China, Russia poses a threat to US interests that cannot be countered with armaments or economic tools alone. Russia is squarely focused on winning its illegal war with Ukraine. Even so, we can expect Vladimir Putin’s regime will continue using a range of non-kinetic means to advance its interests in Europe, Latin America, Africa, and Asia. The Kremlin’s principal goal is to foster instability and undermine alliances that counter its influence regionally and globally. It deploys a mix of political, economic, and military tactics to divide and rule.15

In the political arena, the Kremlin directly interferes in other countries’ political and electoral processes. Russia tries to influence the political playing field to be more amenable to its interests, and to inject the Kremlin’s point of view into the political discourse. The Kremlin and its affiliated entities provide financial and other incentives to political parties and politicians willing to represent and advance favorable policies in national parliaments or international institutions. Such support can include legal and illicit campaign contributions, often made by organizations set up by Russia’s agents of influence, individuals linked to Russia and Russian businesses, or Russian organizations directly. According to a recent report by the US State Department, Russia has covertly given at least $300 million to officials and politicians in more than two dozen countries since 2014, with plans to transfer more.16

Russia also targets electoral processes. Russian hackers have been accused of interfering in many elections and electoral campaigns around the world. In the 2018 presidential election in Mexico, they were reportedly involved in the spread of false information aimed at discrediting candidates to stir up divisions and polarization among voters.17 Russia similarly deploys cyberattacks, internet trolling, social media campaigns, and intrusions into state voter-registration systems to undermine political and electoral processes and create confusion as people head to the polls.18

Economically, the Kremlin employs strategic corruption to coopt elites and create pro-Kremlin proxies in media, politics, and business to push its agenda. This strategy aims to influence debates, gain support, and shape legislation in the Kremlin’s favor. This tactic is particularly effective in countries with favorable views of Russia. It helps galvanize public support and weakens alliances that conflict with the Kremlin’s interests. The Organized Crime and Corruption Reporting Project (OCCRP), a group of investigative journalists, recently revealed an expansive Kremlin operation to bribe politicians and businesspeople in Europe.19 The International Agency for Current Policy, an informal group connected to Moscow, is behind the bribes, arranged payments, and all-expenses-paid trips to luxury resorts for numerous European politicians and investors to encourage pro-Russian political and economic actions.

Militarily, the Kremlin is deploying proxy forces like the Wagner Group to support authoritarian governments or provoke low-scale conflict across Africa, including in Mali and the Central African Republic.20 Wagner Group security deployments across the continent have been at the forefront of Russian efforts to influence African politics, and have been accompanied by disinformation campaigns to advance Russia’s political and security influence.21 The Wagner Group has also led Kremlin efforts to develop a pro-Russia infrastructure across Africa. This infrastructure includes the Internet Research Agency troll farm to conduct disinformation campaigns, captured antidemocratic political elites, coopted companies that exploit Africa’s natural resources, and front companies posing as nongovernmental organizations.

Russia’s influence efforts around the world are supported by wide-scale propaganda and disinformation campaigns to delegitimize independent, expert journalism—and the very concept of truth—in the eyes of consumers, exploit fissures in democratic societies and exacerbate polarization in conflicted ones, undermine support for democracy and the West, and advance pro-Kremlin narratives and policies. One approach Moscow deploys are Russian-funded media outlets like RT and Sputnik. RT, formerly Russia Today, is part of a state-sponsored propaganda corporation that masquerades as a legitimate, Western-looking news and opinion-making outlet that produces content in seven languages.22 With almost $400 million coming from Russian state subsidies in 2022 alone, the company has hired Western journalists to mislead its viewers, and to make its false content seem credible to legitimate media outlets around the world. Another tactic Russia uses is fake media outlets and social media accounts to dilute legitimate media reporting and inject messaging that serves Russia’s strategic objectives. Social media have been a particularly powerful tool for Russia, whose agents have been creating tailored content to influence the beliefs of groups of voters and sway them away from anti-Russia political forces. 

The contours of this challenge—from Beijing and Moscow—make clear that military and economic tools are not enough for the United States to compete and win. Kinetic efforts cannot bolster partner countries against the malign influence of the CCP and Kremlin and the associated cooptation of elites. Military tools, either security assistance or indirect effects of deterrence, cannot shape the politics and development trajectories of partner countries so that they take forms more favorable to the prosperity of their own people and US interests.

Economic-statecraft tools are more amenable to these ends—and complementary to foreign aid—but still not sufficient. Trade deals can increase US economic competitiveness vis-à-vis China by bolstering the US industrial base through opening markets to US citizens and businesses. The United States can use trade deals as an incentive for potential allies to align with US interests over those of the PRC or Kremlin and to help countries reduce their economic dependence on China and Russia. The United States can use economic sanctions to punish countries or individuals for a range of behaviors—from repressing their citizens, as in Belarus, to invading Ukraine, as with Russia—with the aim of stopping said targets from continuing these actions. Moreover, the United States can use economic measures to build a collective economic defense against economic coercion, and to deter PRC and Kremlin economic aggression.

Foreign aid is a necessary complement to kinetic and economic tools. It cannot single-handedly address all challenges listed above, but can help lead to changes—like making a country’s governance systems more resilient to foreign interference—that benefit the United States at the expense of its rivals.

II. US foreign aid: Effective tool, dated toolbox

The United States has utilized foreign assistance to advance its geopolitical interests since the end of World War II, and introduced the Marshall Plan to secure Europe’s (and Japan’s) social and economic foundations in the face of Soviet expansionism and restive communist factions.23 The United States continued to use foreign aid as part of its strategy of containment over the next four decades, providing valuable lessons for advancing US interests in a new age of competition.

Foreign aid (interchangeably referred to as “foreign assistance”) consists of money, technical assistance, or commodities the United States provides to another country to advance a common objective. US foreign assistance can be organized into three overarching categories based on intent of spending: economic and development assistance that addresses political, economic, and development needs; humanitarian assistance that supports disaster relief and emergency operations to alleviate suffering and save lives; and security assistance, which strengthens the capacity of the military and law enforcement in other countries.24

Across these three categories, foreign-aid-funded initiatives can include training rural farmers in more sustainable harvesting techniques, helping construct roadways linking peripheral towns to urban centers, or deploying specialists to advise government ministries on economic or political reform options.

The throughline connecting the three foreign-aid types—and the variation therein—is that US taxpayer dollars spent to fund these initiatives help lead to changes in the target country that benefit US interests. For instance, spending to increase the capacity and independence of government institutions can enhance transparency and provide more favorable investment conditions for US companies.

Yet, the United States spends less than 1 percent of its discretionary budget on foreign assistance, which for fiscal year (FY) 2022 amounted to$52.76 billion.25 Comparatively speaking, this is a small portion of the federal budget. For the sake of contrast, it is 7 percent of the military’s FY22 $777.7-billion budget, and is nearly the exact amount the Department of Defense paid for fewer than one hundred new aircraft in FY22.26

Illustrating the overall downward trend in foreign-aid spending, the United States spends roughly 50 percent less on foreign aid today, as a portion of gross domestic product (GDP), than it did during Ronald Reagan’s presidency. The similarities in the challenges the United States faced in the 1980s and today—and the disparity in resources it is marshalling to address those threats—is stark.

The United States allocates foreign aid through several departments and agencies, with the main entities being USAID and the Department of State. President John F. Kennedy established USAID in 1961 to lead the implementation of US foreign aid. Through the 1970s, USAID provided emergency food assistance that helped avert famines and helped newly independent countries establish basic governing structures. In the 1980s, USAID assistance guided economic reforms across Latin America and other regions around the world, helping stabilize economies in the face of currency and debt crises. After the Soviet Union’s fall, USAID helped new countries transition from autocracies to nascent democracies. From 2000 onward, USAID has played a central role in combatting HIV/AIDS, addressing violent extremism in fragile states, and solidifying democratic gains from the immediate post-Cold War era. In 2004, the United States expanded the agencies responsible for allocating foreign aid by establishing the Millennium Challenge Corporation (MCC) and, in 2019, the International Development Finance Corporation (DFC).27 These changes that foreign aid helped enable or cause have, directly or indirectly, benefited US security and economic prosperity.

What the United States has gained in scope and scale through this range of foreign-aid entities, it has lost in not having them unified by a common directive and mission for spending. The George W. Bush administration worked to address this drift by disbanding USAID policy offices, and transferred those associated oversight and policy responsibilities to a new Office of Foreign Assistance Resources at the Department of State. This change aimed to further align foreign-aid spending with foreign policymaking, which is the State Department’s purview (USAID, per a 1988 law, reports to the secretary of state). Despite this change, the United States continues to struggle with developing comprehensive strategies for issues and countries—and harnessing all elements of US foreign assistance (in tandem with other statecraft tools, like diplomacy and economic engagement) toward a common end. Some feel USAID operates too independently, and its spending is insufficiently aligned with US foreign policy objectives.

Why foreign aid is critical to strategic competition

A solid base of rigorous research shows that foreign aid is effective across a range of sectors in contributing to changes in recipient countries that favor the United States and advantage it in its competition with China, Russia, and other rivals.

Foreign aid can lead to three primary types of impact that are beneficial to strategic competition: economic development that opens markets to US businesses, which increases US economic competitiveness with China and Russia; stronger governance and political institutions, which can serve as a robust check on Russian and Chinese attempts to undermine or coopt allies or potential partners; and more favorable views of the United States by a government and/or its people, which the United States can then leverage for cooperation on mutually beneficial interests or against China and Russia.

Foreign aid supports US economic competitiveness by helping develop new economies for US businesses and trade. It does so by promoting a country’s overall development, as well as sound, transparent regulation.28 Foreign assistance increases economic potential within a state, especially when developing basic industry, improving basic infrastructure, or rebuilding an area after conflict. Today, for example, eleven of the United States’ top fifteen trade partners are previous recipients of foreign aid. Access to overseas markets matters for people at home; roughly one in five US jobs is linked to international trade, and one in three US manufacturing jobs is linked to exporting US products overseas. When considering investments overseas, US businesses need predictable regulations managed by independent institutions, which, collectively, minimize risk of loss of capital. By fostering foreign markets for US goods and businesses, foreign aid can help bolster the United States’ industrial base.

Foreign aid also helps strengthen governance and democracy in countries around the world. A study of US foreign assistance focused on “democracy promotion” programs from 1990 to 2003 found that democracy assistance had “clear and consistent impacts” on overall democratization—as well as civil society, judicial and electoral processes, and media independence.29 Despite a global democratic recession from 2012 to 2022, eight countries that were autocracies actually bounced back and are now democracies in 2023—with international democracy support and protection being an important factor in securing these gains.30 The benefits of these changes, enabled by foreign aid, are clear. The world is safer and more secure with more—not fewer—democracies. Democracies do not launch wars against other democracies, are more reliable allies to the United States, and are far less prone to intrastate civil conflict.31 By strengthening independent institutions and civil-society oversight, foreign aid can help make countries more resilient to interference from foreign rivals like China and Russia. Robust institutions and vibrant civil society make it difficult for China and Russia to exert influence and coopt elites.

Finally, foreign aid can help improve citizens’ and governments’ views of the United States, often at the expense of its principal rivals. The long-term aspect is important here. Chinese and Russian foreign-assistance programs tend to favor physical projects that advance their economic interests and solidify partnerships with authoritarian actors.32 Populations, genuinely appreciative and benefiting from such investments, look favorably upon these efforts in the short term. Over time, there is growing evidence that these projects eventually begin to erode local support for Beijing and Moscow.33 In the case of China, this is partially due to shoddy construction work, a feeling of Chinese neocolonialism and loss of sovereignty, and discomfort with authoritarian moves by parties in power. While there is much reporting on China’s BRI and Russia’s recent use of Wagner Group mercenaries in Africa, both countries’ programs lack transparency—increasingly alienating potential local partners as long-term consequences become more apparent.34

By contrast, US foreign-assistance spending is transparent, involves clear conditions guiding where and how funds are to be used, and favors working with local partners to identify real needs and inform project design and implementation.35 Well-implemented, effective, and large-scale initiatives focused on addressing pressing needs of populations—like the President’s Emergency Plan for AIDS Relief (PEPFAR)—solve problems for local populations and generate positive perceptions of the aid provider, the United States. Several studies find that US investments in PEPFAR foreign assistance (as one example) are strongly associated with improved perceptions of the United States across the globe.36 A potent mix of project transparency, exposure to US government institutional practices and customs, and an earnest desire to help recipient countries prosper underpins US foreign aid’s impact and success.37

III. Looking back to chart a path forward: Lessons from the Cold War

Today’s threat landscape is not analogous to the Cold War for several reasons: China and the United States are far more intertwined economically than the United States and Soviet Union; technological advances have minimized geographical advantages; and states and citizens are more connected, with a magnitude of information access that was unthinkable in the immediate post-World War II era.

Despite these differences, the period in which the United States was grappling with a seemingly mighty Soviet Union and today’s competition with China share some similarities. Today, like then, the United States faces an array of threats across military, social, economic, and political domains from a formidable power that kinetic tools alone cannot address; as a result, the United States is looking to harness all statecraft tools to its advantage. Three key lessons from how the United States used foreign aid during the Cold War can help inform how it uses this non-kinetic tool for strategic competition today.

To maximize foreign aid’s impact, strategic patience is essential. Foreign aid can produce meaningful outcomes, but changes can take years to occur.38 It took a decade for the Marshall Plan and associated US foreign assistance to transform Western European nations into the staunch democratic-minded, market-oriented partners that they are today. While US foreign aid that began in 1948 helped prevent socialist uprisings across Europe, NATO integration and rearmament took the 1950s to accomplish.39 The European Economic Community only truly began to develop in the 1960s.40 And the dismantling of European colonial empires and the move toward the US view of the liberal order took until the 1970s to be fully realized.41

Beyond Europe, US foreign assistance to African and Latin American governments highlights how approaching regions with a longer-term perspective and approach provides opportunities to augment engagement when conditions become more favorable.42 Throughout the 1960s and 1970s, US work in both regions haphazardly shifted between supporting anticommunist militarism, encouraging economic liberalization and development, and improving living conditions.43 Moreover, post-colonial struggles in Africa and regional interference from the Cubans and Soviets in Latin America limited the overall effectiveness of US foreign-assistance programs until the 1980s.44 Previous US engagement then allowed it to become a preferred partner as the Soviet Union began to withdraw from the “third world” and the global financial order introduced new requirements for integration and development.45

Just as foreign assistance takes time to generate outcomes, assistance strategies should have flexibility to adapt to changes in the country or region over the lifetime of a given initiative. Identifying an end state, and methodically working toward it over the course of years or decades, allows second- and third-order effects of investments to occur.

Second, policymakers need to be realistic about what foreign aid can achieve—and avoid overpromising and under-delivering. More often than not, success has been achieved when US policymakers used foreign assistance to secure practical and realistic outcomes. While often criticized for partnering with autocrats over the course of the Cold War, the United States’ incremental investments slowly eroded the Soviet Union’s theory of victory and allowed the United States to encourage democratic progress over time.46 US foreign assistance supported strategic aims that ultimately led to a more peaceful, prosperous, and representative world.

A final lesson is that foreign assistance works best when it is part of a broader whole-of-government strategy.47 When the United States synchronizes foreign-aid interventions, these efforts tend to build on each other to promote long-term cultural change and alignment with US interests and policy.48 Some clear examples of whole-of-government success are Western Europe, Colombia, South Korea, and Chile.49 Each of these examples shares a US assistance approach and series of programs that combined security guarantees with cooperation and reform programs; economic-development packages that paired investment monies with revitalization of key industries; social initiatives intended to soften cultural cleavages while improving social determinants of health; and incentives for local governments to improve their capacity, resiliency, and responsiveness. When foreign-assistance efforts remained siloed between agencies, efforts fell short and minimized impact of taxpayer dollars.

IV. Recommendations: Maximizing US foreign aid to compete

The United States has the infrastructure and expertise to re-elevate foreign aid as a tool of statecraft and use it to help compete with China, Russia, and other adversaries. Doing so will require making changes to where the United States spends foreign assistance and on what, and reforming structures within the US government that dictate how said funds are allocated. These changes are based on lessons from the past, as well as a sober assessment of today’s threat landscape and the need to position the United States for today’s challenges.

1. Where the United States allocates foreign aid and on what

The United States should realign spending to focus on allies and countries strategically important to competition with China and Russia. Foreign aid can help lead to changes in countries that advantage the United States in that competition (e.g., by making a country’s political system more resilient to Chinese or Russian influence), as well as address other pressing challenges (e.g., by addressing causes of migration in Central America to curb flows of people into the United States). Foreign aid can also be used to help US allies or countries of strategic importance in ways that maintain or cement extant alignment of interests (e.g., via infrastructure development that benefits the government in power) or help move a country that is on the fence between cooperating with China and the United States (e.g., Pacific islands).

The current approach to, and regulations governing, allocating foreign aid is not set up to enable the United States to use funds in ways that directly and efficiently advance US interests. It forces the United States to center spending in many aid sectors on predominantly low-income countries (where the perceived greatest development needs are) and disincentivizes spending on middle-income nations (with some plans in place to phase out spending in middle-income states), disregarding how important these nations, despite their income level, might be to the United States.

The Trump administration explored realigning how the United States uses foreign assistance of all stripesfrom economic aid to health assistance—to make competing with China the primary objective. This realignment did not gain traction. However, the review elements that called for revisiting stipulations to spend based on a country’s income level—and instead center decisions around a country’s importance to the United States—are welcome and worth revisiting.

The United States should make delivering for allies and shoring up democracy core pillars guiding how it uses foreign aid to compete with China and Russia. The United States has rightfully increased funding for infrastructure projects in developing nations—along and through multilateral forums—to offer an alternative to China’s BRI. These projects, from highways to hospitals, help the United States compete with China because they buy goodwill with recipient governments and—given the transparent way in which they are managed—provide important investment to support countries’ development needs. But they only address one part of the China challenge, and do not address the root causes enabling Chinese interference and influence—weak governance and political institutions.

Strong democratic institutions are the most reliable form of defense against Russian, Chinese, and other external efforts to shape a country’s domestic politics to the benefit of the external actor. Political parties channel citizens’ views into policy and law. Independent legislatures and capable executives craft and enforce legislation that makes markets favorable to foreign (and US) investment, and inhibit the type of opaque deals favored by the PRC. Independent media play a crucial role in identifying and exposing harmful authoritarian influence, while civil-society organizations (CSOs) work to push governments to take corrective action. Across borders, a diverse group of activists, media figures, religious leaders, researchers, and policymakers is collaborating to confront the challenge of foreign authoritarian influence, forming a strong and growing network of likeminded individuals committed to building democratic resilience worldwide. This network is using innovative methods to uncover and bring attention to the harmful influence of authoritarian actors, such as the PRC and Kremlin. They are devising advocacy and policy solutions tailored to the individual needs of local communities, with the goal of promoting lasting change and ensuring accountability from domestic and foreign authoritarian actors. They need US support.

Invest to empower pro-democracy elements in backsliding or authoritarian countries. In democratically backsliding or authoritarian countries, the scope and scale of elite capture by the PRC or the Kremlin—and conditions on US foreign assistance over human-rights concerns and corruption—limit the potential for political change to build democratic resilience to foreign authoritarian influence. In such contexts, it is extremely challenging to compete symmetrically with the PRC or the Kremlin, which do not impose conditions related to human rights or democracy, and routinely end up worsening both. The United States must respond asymmetrically, using foreign assistance in ways that empower individuals and institutions to expose and put pressure on the regime elements that perpetuate corruption and enable foreign influence. Ongoing investments in media, civil society, and small “d” democratic political parties and opposition movements can sustain important pro-democracy elements to effectively push back against authoritarian influence, in closed and closing countries.

2. Congressional action

Given its constitutional role of oversight and resource appropriation, Congress has an important role to play in ensuring the United States maximizes use and impact of foreign aid in its competition with China and Russia.

Congress should pass legislation (the Non-Kinetic Competition Act) requiring the executive to submit multiyear plans outlining the US approach—harnessing all nonmilitary statecraft tools, including foreign aid—to compete with China in select priority countries. Absent congressional requirements or oversight, it is unclear if the executive branch will be able to swiftly make the needed changes outlined above to where and how the United States spends aid, including ensuring whether it is part of a broader strategy for each country. To accelerate these efforts, Congress could pass legislation requiring the executive to deliver plans for select priority countries, outlining how it intends to use all aspects of US power and resources—including foreign aid, linked to diplomacy—to compete with China. The strategies should include a clearly defined goal, as well as a theory of the case. The legislation could be modeled on the Global Fragility Act (GFA), which requires the executive to deliver a strategy for preventing violent conflict and promoting stability globally, and ten-year plans for achieving these aims in select priority countries. Unlike the GFA, however, the legislation proposed here need not require the executive to publicly release plans, given the sensitive nature of the content.

Focus on geography and interests, rather than sectors. US foreign aid is largely organized around sectors (e.g., health, education) and driven by congressional earmarks. This makes it exceedingly difficult for the United States to craft geography-specific strategies (e.g., for sub-Saharan Africa) with a single source of foreign aid as an available resource. Ideally, the United States would craft a competition strategy for a given region that clearly identifies an end state, theory of the case, and associated inputs required to realize it (kinetic and non-kinetic, including foreign aid). Instead, the current system predetermines (via earmarks) how the United States spends a significant portion of foreign aid (with some exceptions), forcing planners to use aid in suboptimal ways that seldom advance country-specific strategies.

Congress, considering its increased attention to position the United States to prevail against China, should review extant earmarks, do away with as many as feasible, help the executive conduct longer-term planning, and provide greater flexibility in using foreign aid to compete. The legislation cited below could help set parameters and ensure funds are spent on the highest priorities.

Increase spending to expand partner-nation resilience to Beijing and Moscow coercion and cooptation. Strong democratic institutions increase a country’s ability to detect, prevent, and mitigate CCP influence operations, but must be coupled with other work focused squarely on detecting, preventing, and countering CCP and Kremlin interference—whether attempts by the PRC to train political parties in Kenya on the China “model” or direct Kremlin funding to political parties to influence electoral outcomes and ensure pro-Kremlin voices are voted into office. Foreign assistance in this category can fund a range of programming, from technical assistance to countries negotiating BRI deals to support for independent media in countries vulnerable to foreign influence. Priorities should include the following types of democracy, rights, and governance programming, which have proven effective in building democratic resilience to foreign authoritarian influence.

  • Supporting independent media: Supporting independent journalism can be a powerful tool in countering the influence of the PRC and Kremlin in the Global South. It is a wise investment of limited US resources to empower well-trained journalists in vulnerable countries, who can provide free and unbiased reporting to expose the impact of foreign authoritarian influence. Every dollar spent in this direction can make a significant difference.
  • Legislative dialogues: In legislatures throughout the world, a growing number of elected officials are committed to democratic resilience. From engaging with partners like Taiwan and Ukraine to exposing concerns around the domestic impacts of deepened political and economic engagement with China and Russia, these officials have been successful in advocating for measures to counteract foreign influence and building global democratic unity to confront it. Facilitating and supporting such dialogues, by both the US Congress and parliaments globally, is a critical and effective means to counter PRC and Kremlin influence.
  • People-to-people exchanges: China is making a significant investment in people-to-people exchanges, sponsoring fellowships, scholarships, and exchanges to showcase the China model across the Global South. This soft-power initiative is an area in which the United States has a strategic advantage; it just needs to leverage it. The exchange programs sponsored by the Department of State’s Bureau of Educational and Cultural Affairs are an effective mechanism for engaging youth, students, educators, artists, athletes, and rising leaders to promote US interests—and democracy. More than 99 percent of participants in the bureau’s Sports Visitors exchange program come away expressing positive views of the United States, while its exchange programs have brought almost seven hundred officials who would go on to run their countries’ governments to the United States. However, only forty thousand international participants engage in such programming annually, given the bureau’s $777.5-million annual budget for exchanges. By comparison, in 2018, the PRC provided scholarships to sixty-three thousand students to study in China, a figure that doesn’t include party-to-party exchanges run by the International Liaison Department or journalist and parliamentary exchanges. Additional investment in this area would be a cost-effective win-win.

The United States spends a paltry amount combatting Russian and Chinese malign influence around the world, despite this being the foremost challenge of the time. The United States spends less than $325 million a year countering Chinese influence and $300 million countering Russian influence via foreign aid. In fact, the $625 million the United State spends annually on this threat from China and Russia is less than the Defense Department spends on printing each year.50

US policymakers argue that prevailing against China is a national imperative, but have only appropriately resourced its kinetic toolkit. Foreign-aid spending focused on this aim needs to increase fourfold, to $1 billion annually. It should center on countries already exposed to CCP and Kremlin interference, at the cusp of such interventions, or likely to experience them moving forward.

3. Intra-US government structural changes

Several changes to intra-US government processes and structure would help better align foreign-aid spending with core national security interests and increase its impact in the competition with China and Russia.

Empower the State Department’s Office of Foreign Assistance Resources to fulfill its mandate of aligning foreign aid with policy goals and maximizing impact. US foreign-aid spending should directly align with, and advance, US interests in priority states, competing with China and Russia chief among them. This means enabling the Department of State to take the lead on foreign policy and control aid allocations in a way that concretely advances specific foreign policy objectives, rather than a development goal that might be tangentially related to US interests. The secretary of state should empower the Office of Foreign Assistance Resources to truly lead on foreign-aid coordination and alignment, deputizing its director to ensure aid spending aligns with policy goals. The USAID administrator should continue reporting to the secretary. The United States needs to maximize the impact of foreign aid for immediate political wins and incorporate foreign aid into longer-term planning.

Lengthen the time horizon for US foreign-aid programs and objectives from a single year to ten. The United States used foreign aid to significant effect during the Cold War. Flexibility in what and how to spend, as well as the time horizon on which success was measured (noting the struggle with the Soviet Union was the central objective) were extremely important. In the last 15–20 years, and in line with shorter-term goals (e.g., health), the time horizon for gauging success has shortened to 1–2 years. This is counterproductive. Democracy, rights, and governance programming—as well as initiatives in other sectors germane to competition—requires longer-term investment to develop strong and resilient institutions, political parties, and processes. US agencies and implementing partners need longer project times to maximize impact.

Limit branding waivers. Projects or initiatives funded by US foreign aid typically are branded as “from the American people,” and include the funding agency’s logo (e.g., that of USAID) to enable attribution for the work to the United States. Yet, the United States often allows organizations implementing foreign-aid projects to forego this branding requirement—thereby granting a waiver—on security or other grounds. For example, an NGO offering training to local farmers in an area contested by militias known to have anti-American views might request a waiver citing potential risk to personnel from said armed groups. Similar exceptions are granted for construction or other projects in areas perceived to be contested or at risk. Meanwhile, there are hospitals, schools, trainings, and so on in the same areas with “from China” branding readily visible. The United States benefits from populations and governments knowing who provides aid, and its marketing needs to reflect as much. The United States should only issue waivers when said branding could pose harm to implementers or beneficiaries, or when it is counterproductive to achieving results.

Focus on advancing interests, rather than “localization” targets. Under current Administrator Samantha Power’s leadership, USAID has articulated a commitment to the localization of US foreign assistance. This includes, but is not limited to, channeling a greater portion of US foreign assistance to local partners and taking additional steps to ensure US-funded projects build sustainable capacity of these local organizations. The United States has considered requiring international nongovernmental organizations that receive the “primary” grant from USAID to allocate a set percentage—up to 20 percent—to go directly to local partners. The rationale for this change, which the Barack Obama administration shared, is that US foreign assistance should help build local capacity to address needs. The intent is noble, but this arguably detracts from US foreign assistance achieving its actual and main intent—advancing US interests.

Rather than set aside an arbitrary amount of foreign aid for channeling to local NGOs, USAID and the State Department should pursue partnership approaches best positioned to achieve US interests in the target country. In most, if not all, cases, this will involve working through international NGOs that collaborate with—and, as needed, build the capacity of—local partners. Foreign aid should focus on building capacity and localizing aid, insofar as doing so advances US interests.

Conclusion

The United States’ overall approach to statecraft—how it forms strategy and uses tools to execute that strategy—has not caught up to the state of the world today. The current approach too often places bureaucratic prerogatives above policy priorities. The United States needs to be on high alert, shaping all aspects of government work toward its competition with China.

Patrick Quirk, PhD, is vice president for strategy, innovation, and impact at the International Republican Institute (IRI) and nonresident senior fellow in the Atlantic Council’s Scowcroft Center for Strategy and Security.

Caitlin Dearing Scott is the director for countering foreign authoritarian influence at the International Republican Institute.

The authors would like to thank Owen Myers for his research assistance.

The Scowcroft Center for Strategy and Security works to develop sustainable, nonpartisan strategies to address the most important security challenges facing the United States and the world.

1     See, for example: the Countering the PRC Malign Influence Fund Authorization Act, https://www.congress.gov/bill/118th-congress/house-bill/1157/text?format=txt&overview=closed.
2     Matt Schrader and J. Michael Cole, “China Hasn’t Given up on the Belt and Road,” Foreign Affairs, February 7, 2023.
3     “Countries of the Belt and Road Initiative,” Green Finance and Development Center, last visited April 3, 2023, https://greenfdc.org/countries-of-the-belt-and-road-initiative-bri/?cookie-state-change=1678461024145.
4    David Shulman, ed., “A World Safe for the Party: China’s Authoritarian Influence and the Democratic Response,” International Republican Institute, February 2021, https://www.iri.org/wp-content/uploads/2021/02/bridge-ii_fullreport-r7-021221.pdf; Caitlin Dearing Scott  and Matt Schrader, eds., “Coercion, Capture, and Censorship: Case Studies on the CCP’s Quest for Global Influence,” International Republican Institute, September 2022, https://www.iri.org/resources/coercion-capture-and-censorship-case-studies-on-the-ccps-quest-for-global-influence/.
5    Jonathan Cheng, “China Is Starting to Act Like a Global Power,” Wall Street Journal, March 22, 2023, https://www.wsj.com/articles/china-has-a-new-vision-for-itself-global-power-da8dc559.
6    “China’s Global Development Initiative Is Not as Innocent as It Sounds,” Economist, June 9, 2022, https://www.economist.com/china/2022/06/09/chinas-global-development-initiative-is-not-as-innocent-as-it-sounds.
7    Ibid.
8    Caitlin Dearing Scott and Isabella Mekker, “How China Exacerbates Global Fragility and What Can be Done to Bolster Democratic Resilience to Confront It,” Modern Diplomacy, September 18, 2021, https://moderndiplomacy.eu/2021/09/18/how-china-exacerbates-global-fragility-and-what-can-be-done-to-bolster-democratic-resilience-to-confront-it/.
9    Alice Ekman, “China’s Global Security Initiative,” European Union Institute for Security Studies, March 2023, https://www.iss.europa.eu/sites/default/files/EUISSFiles/Brief_5_China%27s%20Global%20Security%20Initiative.pdf; “China’s Paper on Ukraine and Next Steps for Xi’s Global Security Initiative,” US-China Economic and Security Review Commission, March 7, 2023, https://www.uscc.gov/sites/default/files/2023-03/Chinas_Paper_on_Ukraine_and_Next_Steps_for_Xis_Global_Security_Initiative.pdf; “Xi Jinping: Time for China to Take Centre Stage,” BBC, October 18, 2017, https://www.bbc.com/news/world-asia-china-41647872.
10     Ekman, “China’s Global Security Initiative.”; “China’s Paper on Ukraine and Next Steps for Xi’s Global Security Initiative.”
11     Bill Bishop, “Xi Proposes a “Global Civilization Initiative; PBoC; Missing Bond Date; Guo Wengui,” Sinocism, March 15, 2023, https://www.sinocism.com/p/xi-proposes-a-global-civilization.
12     Shulman, “A World Safe for the Party.”
13     “China’s Paper on Ukraine and Next Steps for Xi’s Global Security Initiative.”
14     “Patrol and Persuade,” Safeguard Defenders, December 2022, https://safeguarddefenders.com/sites/default/files/pdf/Patrol%20and%20Persuade%20v2.pdf.
15     See, for example: Paul Stronski, “The Return of Global Russia: An Analytical Framework,” Carnegie Endowment for International Peace, December 14, 2017, https://carnegieendowment.org/2017/12/14/return-of-global-russia-analytical-framework-pub-75003.
16     Edward Wong, “Russia Secretly Gave $300 Million to Political Parties and Officials Worldwide, U.S. Says,” New York Times, September 13, 2022, https://www.nytimes.com/2022/09/13/us/politics/russia-election-interference.html.
17     David Alere Garcia and Noe Torres, “Russia Meddling in Mexican Election: White House Aide McMaster,” Reuters, January 7, 2018, https://www.reuters.com/article/us-mexico-russia-usa/russia-meddling-in-mexican-election-white-house-aide-mcmaster-idUSKBN1EW0UD.
18     See, for example: “Pillars of Russia’s Disinformation and Propaganda Ecosystem,” Global Engagement Center, August 2020, https://www.state.gov/wp-content/uploads/2020/08/Pillars-of-Russia%E2%80%99s-Disinformation-and-Propaganda-Ecosystem_08-04-20.pdf; “Disinformation: A Primer on Russian Active Measures and Influence Campaigns,” Select Committee of Intelligence of the United States Senate, March 30, 2017, https://www.govinfo.gov/content/pkg/CHRG-115shrg25362/html/CHRG-115shrg25362.htm.
19     Cecilia Anesi, Lorenzo Bagnole, and Martin Laine, “Italian Politicians and Big Business Bought into Russian Occupation of Crimea,” Organized Crime and Corruption Reporting Project, February 3, 2023, https://www.occrp.org/en/investigations/italian-politicians-and-big-business-bought-into-russian-occupation-of-crimea.
20     Paul Stronski, “Russia’s Growing Military Footprint in Africa’s Sahel Region,” Carnegie Endowment for International Peace, February 28, 2023, https://carnegieendowment.org/2023/02/28/russia-s-growing-footprint-in-africa-s-sahel-region-pub-89135.
21    “Wagner Group, Yevgeniy Prigozhin, and Russia’s Disinformation in Africa,” Global Engagement Center, May 24, 2022, https://www.state.gov/disarming-disinformation/wagner-group-yevgeniy-prigozhin-and-russias-disinformation-in-africa/.
22     “About RT,” RT, last visited April 7, 2023, https://www.rt.com/about-us/.
23     James P. Grant, “Perspectives on Development Aid: World War II to Today and Beyond,” Annals of the American Academy of Political and Social Science 442 (1979), 1–12, http://www.jstor.org/stable/1043475.
24     For an overview of US foreign-assistance categories, purposes, and spending, see: “About Us,” US Office of Foreign Assistance Resources, last visited June 8, 2023, https://www.state.gov/about-us-office-of-foreign-assistance.
25     Cory R. Gill, Marian L. Lawson, and Emily M. Morgenstern, “Department of State, Foreign Operations, and Related Programs: FY2022 Budget and Appropriations,”Congressional Research Service, January 23, 2023, https://crsreports.congress.gov/product/pdf/R/R47070.
26    “Summary of the Fiscal Year 2022 National Defense Authorization Act,”US Senate Armed Services Committee, last visited June 8, 2023, https://www.armed-services.senate.gov/imo/media/doc/FY22%20NDAA%20Agreement%20Summary.pdf;“Program Acquisition Cost by Weapons System,” US Department of Defense, Under Secretary of Defense (Comptroller)/Chief Financial Officer, June 8, 2023, https://comptroller.defense.gov/Portals/45/Documents/defbudget/FY2022/FY2022_Weapons.pdf.
27     DFC was authorized in October 2018 and officially created in 2019. Authorized by the BUILD act, DFC was formed by merging the Overseas Private Investment Corporation (OPIC) and the Development Credit Authority (DCA) of USAID.
28     “The Case for Democracy: Does Democracy Cause Economic Growth, Stability, and Work for the Poor?” Varieties of Democracy Institute, May 11, 2021, https://v-dem.net/media/publications/c4d_1_final_2.pdf.
29     Steven E. Finkel, Anibal Perez-Linan, and Mitchell A. Seligson, “The Effects of US Foreign Assistance on Democracy Building, 1990–2003,” World Politics 59, 3 (2007), https://www.jstor.org/stable/40060164.
30    “Democracy Report 2023: Defiance in the Face of Autocratization,” Varieties of Democracy Institute, 2023, https://www.v-dem.net.
31    “The Case for Democracy.”
32     Kristen A. Cordell, “Chinese Development Assistance: A New Approach or More of the Same?” Carnegie Endowment for International Peace, March 2023, https://carnegieendowment.org/2021/03/23/chinese-development-assistance-new-approach-or-more-of-same-pub-84141; Gerda Asmus, Andreas Fuchs, and Angelika Müller, “BRICS and Foreign Aid,” AIDDATA, August 1, 2017, https://www.aiddata.org/publications/brics-and-foreign-aid; Axel Dreher, et al., “African Leaders and the Geography of China’s Foreign Assistance,” Journal of Development Economics 140 (2019), 44-71, https://doi.org/10.1016/j.jdeveco.2019.04.003.
33    Robert A. Blair, Robert Marty, and Philip Roessler, “Foreign Aid and Soft Power: Great Power Competition in Africa in the Early Twenty-First Century,” British Journal of Political Science 52, 3 (2022), 1355–1376, https://www.cambridge.org/core/journals/british-journal-of-political-science/article/abs/foreign-aid-and-soft-power-great-power-competition-in-africa-in-the-early-twentyfirst-century/55AECCCE48807135072DCB453ED492F1 .
34    Pierre Mandon and Martha T. Woldemichael, “Has Chinese Aid Benefited Recipient Countries? Evidence from a Meta-Regression Analysis,” International Monetary Fund, February 25, 2023, https://www.imf.org/en/Publications/WP/Issues/2022/02/25/Has-Chinese-Aid-Benefited-Recipient-Countries-Evidence-from-a-Meta-Regression-Analysis-513160; Paul Stronski, “Late to the Party: Russia’s Return to Africa,” Carnegie Endowment for International Peace, October 16, 2019, https://carnegieendowment.org/2019/10/16/late-to-party-russia-s-return-to-africa-pub-80056; Rosana Himaz, “Challenges Associated with the BRI: a Review of Recent Economics Literature,” Service Industries Journal 41 (2021), https://www.tandfonline.com/doi/abs/10.1080/02642069.2019.1584193.
35     Michael J. Mazar, et al., “Stabilizing Great-Power Rivalries,” RAND, 2021, https://www.rand.org/pubs/research_reports/RRA456-1.html.
36    See, for example: Benjamin E. Goldsmith, Yusaku Horiuchi, and Terence Wood, “Doing Well by Doing Good: the Impact of Foreign Aid on Foreign Public Opinion,” Quarterly Journal of Political Science, December 1, 2013, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2361691.
37    Daniel F. Runde, “US Foreign Assistance in the Age of Strategic Competition,” Center for Strategic and International Studies, May 14, 2020, https://www.csis.org/analysis/us-foreign-assistance-age-strategic-competition.
38     Andrew S. Natsios, “Foreign Aid in an Era of Great Power Competition,” Prisms 8, 4 (2020), 101–119, https://ndupress.ndu.edu/Media/News/News-Article-View/Article/2217683/foreign-aid-in-an-era-of-great-power-competition/.
39    Curt Tarnoff, “The Marshall Plan: Design, Accomplishments, and Significance,”Congressional Research Service, January 18, 2018, https://sgp.fas.org/crs/row/R45079.pdf; Hal Brands, “Forging a Strategy” in The Twilight Struggle: What the Cold War Teaches Us about Great-Power Rivalry Today (New Haven, CT: Yale University Press, 2022), 13–29, https://doi.org/10.2307/j.ctv270kvpm.5.
40    Najam Rafique, “US Foreign Assistance: A Study of Aid Mechanism,” Strategic Studies 12, 1 (1988), 55–77, http://www.jstor.org/stable/45182762.
41    Brands, “Forging a Strategy.”
42     Hal Brands, “Contesting the Periphery” in The Twilight Struggle: What the Cold War Teaches Us about Great-Power Rivalry Today (New Haven, CT: Yale University Press, 2022), 76–102, https://doi.org/10.2307/j.ctv270kvpm.8.
43    “U.S. Foreign Assistance to Latin America and the Caribbean: FY2022 Appropriations,”Congressional Research Service, March 31, 2022, https://sgp.fas.org/crs/row/R47028.pdf; Keith Griffin, “Foreign Aid after the Cold War,” Studies in Globalization and Economic Transitions (London: Palgrave Macmillan, 1996), https://doi.org/10.1057/9780230372139_3.
44    Feraidoon Shams B., “American Policy: Arms and Aid in Africa,” Current History 77, 448 (1979), 9–13. http://www.jstor.org/stable/45314708.
45    Mark Webber, “The Third World and the Dissolution of the USSR,” Third World Quarterly 13, 4 (1992), 691–713, http://www.jstor.org/stable/3992384.Ibid, Brands 2022.
46     Alexander R. Alexeev, “The New Soviet Strategy in the Third World,”RAND, 1983; Hal Brands, “American Grand Strategy: Lessons from the Cold War,” Foreign Policy Research Institute, January 25, 2016, https://www.fpri.org/article/2015/08/american-grand-strategy-lessons-from-the-cold-war/.
47     Susan B. Epstein and Matthew C. Weed, “Foreign Aid Reform: Studies and Recommendations,” Congressional Research Service, July 28, 2009, https://sgp.fas.org/crs/row/R40102.pdf.
48    Ibid.
49    Forrest Hylton, “Plan Colombia: The Measure of Success,” Brown Journal of World Affairs 17, 1 (2010), 99–115, http://www.jstor.org/stable/24590760.
50    “Document Services: DOD Should Take Actions to Achieve Further Efficiencies,”Government Accountability Office, October 2018, https://www.gao.gov/assets/gao-19-71.pdf. Printing costs have continued to rise in the service-branch budget through FY23, based on analysis of Department of Defense budget-justification documents.

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What policymakers need to know about artificial intelligence https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/what-policy-makers-need-to-know-about-artificial-intelligence/ Thu, 29 Jun 2023 13:00:00 +0000 https://www.atlanticcouncil.org/?p=660056 Behind the hype and fear lies a crucial truth—AI is designed to augment human intelligence, not replace it. This primer explains how developers strive to create systems that mimic human capabilities by finding patterns, making predictions, and generating meaningful and actionable insights using data generated by our information-rich world.

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Table of contents

Despite an abundance of books, articles, and news reports about artificial intelligence (AI) as an existential threat to life and livelihoods, the technology is not a grave menace to humanity in the near term. Undeniably, the comments of deep learning pioneer Geoffrey Hinton, who resigned from Google, are concerning. “I have suddenly switched my views on whether these things are going to be more intelligent than us. I think they’re very close to it now and they will be much more intelligent than us in the future. How do we survive that?” Hinton said in a recent interview. Hinton fears that AI may come to intentionally or inadvertently exert control over humanity, a hypothetical scenario known as an “AI takeover.” He is also worried about the potential spread of AI-generated misinformation or the possibility that an oppressive leader may attempt to use AI to create lethal autonomous weapons systems (LAWS). But AI programs have no agency to act on their own. Generative AI language models currently operate only within the controlled environments of computer systems and networks, and their capabilities are constrained by training datasets and human uses.

The generative transformer architecture that is powering the current wave of artificial intelligence may reshape many areas of daily life. OpenAI CEO Sam Altman has been making a global tour to engage with legislators, policymakers, and industry leaders about his company’s pathbreaking Generative Pre-trained Transformer (GPT) series of large language models (LLMs). While acknowledging that AI could inflict damage on the world economy, disrupt labor markets, and transform global affairs in unforeseen ways, he emphasizes that responsible use and regulatory transparency will allow the technology to make positive contributions to education, creativity and entrepreneurship, and workplace productivity.

At present, however, Altman’s generative AI is most useful in improving natural language processing and machine translation. Generative transformers are flexible and scalable models that outperform recurrent neural networks—which made voice-activated assistants on smartphones possible—in certain tasks, such as capturing relationships between different words within long documents and answering questions about them. Examples include GPT, BERT, T5, and LaMDA. They do not on their own possess independent capabilities associated with artificial general intelligence or superintelligence, and it is unlikely that a truly versatile human-like cognitive AI will become a reality before 2050. Even an ultrasmart AI program may never bootstrap itself into consciousness. And there is almost zero chance that—as in the Roko’s Basilisk thought experiment—a spiteful and malicious AI will emerge that rewards those humans who assist it and punishes any who dare attempt to stop it. As Sam Altman puts it “GPT4 is a tool not a creature.”

What is certain is that AI tools and methods will be crucial for confronting a slew of slow-motion catastrophes unfolding across the world. COVID-19 has claimed almost seven million lives worldwide, and based on excess mortality likely many more. Strife, stress, and conflict endangers democracies on both sides of the Atlantic. Unschooling and remote work movements mingle with cultural and political divisions and societal disruptions. Climate change brings extremes in heat, drought, and wildfires along with melting ice caps and sea level rise. 

Machine learning (ML) is able to tackle these issues head-on. Admittedly, it has a long way to go before it’s a feasible tool for pandemic control, but AI is attaining good performance in the diagnosis, evaluation, and prognosis of infected individuals; predictions of pandemic spread; and COVID-19 drug discovery as well as vaccine development. Responsible applications of AI are strengthening communities and empowering democracies. Over the past few years, this technology played a particularly powerful role in knitting humanity together virtually amidst the spread of disease, snarled traffic, scarce fuel, and the high cost of living. AI-enabled technologies are also monitoring the world’s climate, agriculture, and economies, as well as providing solutions to feed and clothe the world without further damaging the environment. They can facilitate many paths to sustainable planet-wide development. Green AI technologies representative of the convergence of social innovation and technological change include ecobots, biodiversity and ecosystem services, and renewable energy solutions

Nonetheless, humanity is living in uncertain, complex, and ambiguous times. But as Sun Tzu explained in The Art of War, in the midst of chaos, there is also opportunity. It is not surprising that the current generation has invented AI and social media-fueled empathy scorecards intended to replace or supplement credit scores, prescription video games and other “calmtainments,” and AI-assisted chatbot therapists (Woebot and Wysa). AI is being brought to bear against the labor squeeze and workers’ demands for higher wages, supply chain disruptions and volatilities in manufacturing, and the omnipresent threats of wars of occupation. 

Defining artificial intelligence

The ultimate goal of AI is to emulate human-like thinking or perform tasks that normally require human activity. John McCarthy, Marvin Minsky, Nathaniel Rochester, and Claude Shannon, in their original proposal to bring together mathematicians, cyberneticists, and information processing innovators for a formative 1956 summer research workshop on AI at Dartmouth College, contended that “every aspect of learning or any other feature of intelligence can be so precisely described that a machine can be made to simulate it.” AI can be subdivided in several different ways, but the major branches are usually described as artificial narrow intelligence (ANI), artificial general intelligence (AGI), and artificial superintelligence (ASI). 

ANI is the branch where the overwhelming majority of AI-inclined developers work. ANI thereby represents the state of the art in AI. It is a category that includes all useful applications of AI to specific problems such as calculating risks and reducing errors, handling repetitive or boring tasks, making informed recommendations or decisions quickly, or automating job duties that are difficult or dangerous. ANI developers are rarely concerned about whether their AI systems are capable of true cognition, awareness, metacognition, or affectivity. Instead, they are content to regard them as models for understanding intelligent behavior and building useful tools. Common areas of activity in ANI are speech recognition, natural language processing, chatbots, search engines, recommender systems, digital assistants, computer vision, image recognition, and machine translation. Every sort of machine intelligence encountered in daily life is limited to specific tasks and knowledge domains that are not readily translated into other tasks or domains irrespective of how sophisticated they are.

On the other hand, AGI and ASI have as their shared goal the achievement of a complete or comprehensive range of human intelligence capabilities, including perhaps even consciousness. In AGI and ASI, the model is the mind; the map is the territory. Should the goal be reached, some researchers believe ASI will surpass human intelligence, with cognitive capacities well beyond those of the smartest people and in a wide variety of domains. An ASI’s “mind” would not just be different in degree from the human one; it would be different in kind. Indeed, some researchers assume that any potential candidate for ASI would require a self-modifying property. Many people, including, most famously, Bill Gates, Stephen Hawking, and Elon Musk, have spoken out about AGI/ASI safety and control. Stuart Russell and Peter Norvig, authors of the leading textbook on AI, note that “[a]lmost any technology has the potential to cause harm in the wrong hands, but with AI and robotics, we have the new problem that the wrong hands might belong to the technology itself.” Others have been more sanguine. Neuroscientist Anthony Zador and computer scientist Yann LeCun, for example, suggest that there is no reason why a machine would develop a self-preservation instinct or evolve into a dangerous competitor. 

How artificial intelligence works

The typical AI developer writes code—sometimes employing the assistance of context-aware intelligent code-completion software like IntelliSense or Copilot. At the core of all AI systems written today are intelligent agents. The classical approach to AI is in the form of sense-think-act: agents perceive their environment using sensors, consider choices and make decisions, and react using effectors. They may be physical (robots) or virtual (software) and are often both. Agents now have all sorts of different abilities, goals, preferences, knowledge representations, and memories of past experiences. Humans themselves are considered very complex intelligent agents by AI developers, albeit biological ones. This is why it is sometimes said that the “holy grail” of AI is to understand man as a machine.

Agents are ubiquitous in everyday life. Siri, Cortana, and the Google Assistant are agents, as are tabletop smart home appliances like Amazon Echo, Google Home, Samsung Bixby, Xiaomi Xiao Ai, and Apple HomePod. Agents are also embedded in many autonomous and semiautonomous robotic devices like the Roomba vacuum cleaner, Tesla driver-assistance system, and General Atomics Gray Eagle Extended Range unmanned aerial military drone. Large, pretrained language models are the foundation of the latest—potentially disruptive and transformative—conversational agents like Google Bard, Jasper Chat, OpenAI’s ChatGPT, and Microsoft’s Bing chatbot.

Practitioners of symbolic AI, a dominant early approach to simulating humanlike cognition, compared the brain to a sophisticated computer program. From the mid-1950s and continuing into the 1980s, computer scientists created general and specific problem solver programs. Software developers also created general inference engines upon which specialized rule bases could be applied interchangeably. These so-called expert systems consisted of heuristics or rules of thumb developed from direct interviews with experts and professionals (e.g., physicians, lawyers, mechanics, and chemists). Heuristic programming assumed as a given that an expert is a specialist. 

Expert knowledge, however, is rarely fixed. Indeed, it is regularly updated through new discoveries and experience. Heuristic systems struggle to keep up with all but the most predictable definitions and structured reasoning methods. AI researchers describe this as the “knowledge acquisition bottleneck.” Training an AI program to serve as a clinical decision support system, for example, is only feasible if there is a reasonably efficient way to keep up with an exponentially growing reservoir of medical knowledge and know-how. Often, the domain expert and the programmer find it difficult to maintain their systems and keep them current.

Knowledge engineers argue among themselves about whether the right approach is to carefully simulate the reasoning abilities of experts in models of human information processes or rather to discover entirely new methods for weighing evidence that can only be accomplished using computers. Ironically, as expert system prototypes proliferated, they became more specialized, limited in scope, and fragmentary. The history of expert systems has proven that machines, like humans, perform better in specialized domains. Exceptional general-purpose thinking is rare among machines, and perhaps also among human beings.

Expert systems gave way to directly mining the data of extremely large numbers of cases. Data mining requires figuring out how to represent knowledge and extract useful patterns through automatic or semiautomatic analyses so that they might be used effectively. Data mining techniques include cluster analysis, anomaly detection, and association rule mining. This movement away from the primacy of experts has been likened to the demise of the Greek Oracle of Delphi.

By the 1990s, connectionist approaches featuring artificial neural networks (ANNs) eclipsed symbolic AI in popularity. The metaphor for the connectionist approach to AI is the brain as a collection of billions of neurons that both wire and fire together. The application of neural networks to AI also dates to the 1950s but had fallen out of favor until resuscitated by Hinton, the cognitive psychologist who recently left Google, and others who described a new procedure called “backpropagation” for training multilayered neural networks. The connectionist approach became even more exciting as advances in computing hardware and schemes for handling large volumes of structured, semi-structured, and unstructured data (“big data”) made it possible to improve the efficacy of neural networks.

Machine learning

ML today is a subset of AI which relies on both the symbolic and neural network approaches. The synthesis of neuro-symbolic AI and development of hybrid architectures is relatively new. Computer scientists use ML and data analytics to train algorithms and neural networks with statistical methods to discern patterns, make classifications, predict outcomes, and uncover significant insights from available masses of information. In ML, models of learning are used to dexterously organize the capabilities of intelligent agents as they improve themselves using data extracted from online systems or the environment. ML is divided into roughly three categories—supervised, unsupervised, and reinforcement learning.

In supervised learning, labeled data are used to train algorithms. The computer is “taught” to recognize general rules using “training data” (labeled inputs and desired outputs). Supervised learning algorithms may engage in active learning to label new data points with desired outputs, classification to organize data into relevant categories, regression analysis to investigate relationships between independent features or variables and dependent variables or outcomes, or similarity learning, where the goal is to measure the resemblance or relatedness between things. 

In unsupervised learning, the algorithm discovers structure, features, and insights from unlabeled data. Unsupervised learning is helpful where common properties of the dataset are unknown or poorly understood. Additionally, unsupervised learning is helpful in solving clustering and association-type problems. Clustering algorithms group data based on similarities and differences. Marketing companies often use clustering and demographic segmentation of customers to identify and group households that are similar to one another in wealth, buying behavior, or lifestyle. These clusters are given names like Married Sophisticates, Penny Pinchers, Skyboxes and Suburbs, Summit Estates, Shotguns and Pickup Trucks, Rolling Stones, Single City Struggles, Aging Upscale, and Timeless Elders. Association algorithms find interesting relationships between variables. Association rule learning can be useful in market-based analyses of customer purchases, allowing retailers to recognize relationships between items that customers frequently buy together and predict the likelihood of purchases of an item based on the occurrence of other items in an individual transaction.

A computer performs reinforcement learning when it learns through interaction with the environment and feedback to achieve a predefined goal or maximize a reward. In reinforcement learning, the AI improves by first making mistakes. Reinforcement learning has applications in teaching self-driving cars to avoid obstacles and stay on the road, training AI non-player characters in video games, and instructing caregiver robots on how to grasp common household objects.

Deep learning

Deep learning is a type of ML that depends primarily on ANNs and training data. The neural networks train by imitating the natural neural interconnectivity of the brain using layers of nodes and connections. These nodes are composed of various inputs and weights, a given threshold, and an output value. When the output value surpasses the predefined threshold, it “fires” like a biological neuron, activating the node and passing data along to the next layer of the network. AlexNet, one of the pioneering technologies in the field of computer vision, was designed by Hinton and his students. This deep learning tool used to analyze visual imagery is composed of eight layers—five convolutional layers, two hidden layers, and one output layer. AlexNet was trained on graphics processing units (GPUs). It outperformed all other challengers in the 2012 ImageNet Large Scale Visual Recognition Challenge. Deep neural networks and platforms are employed in many contexts today; they promote cybersecurity (Deep Instinct), predict criminal recidivism (COMPAS Core), make early diagnoses in oncology (Behold.ai), teach next-gen driverless cars (Tesla, Waymo, Nvidia), and boost the creativity of artists (DALL-E, Stable Diffusion) and writers (GPT-4, Charisma). Generative transformer models are a prime example of deep learning, and they are revolutionary in their ability to quickly find relationships and capture context across large datasets.

Computational creativity is one subfield of AI that has been dramatically reshaped by deep learning. Computational creativity applications attempt to generate original ideas and artifacts. These “generative AI” applications are transforming our understanding of machines as helpmates to humans and altering bedrock conceptions of novelty. Is the goal to replicate human storytelling or to create new media for storytelling? Can an AI agent create a real emotional connection with a person? Can a machine have an original thought or imagination? How would an AI program recognize that something is imaginary? In a world of computational creativity, some common tropes and normative modes of seeing, hearing, and knowing may have to be unlearned. 

All sorts of possibilities are being explored with generative AI. The annual National Novel Generation Month (NaNoGenMo) contest is the brainchild of computer programmer and internet artist Darius Kazemi. NaNoGenMo is the artificial spiritual twin of the National Novel Writing Month (NaNoWriMo), a nonprofit organization that encourages human authors to find their voices by banging out drafts of fifty-thousand-word novels in November. Programmers following Kazemi’s rules instead write code that generates fifty thousand words of machine-made fiction. NaNoGenMo provides a standard corpus of public domain lists and texts for rapid prototyping, but participants use all sorts of public domain writings to train their AIs. In the NaNoGenMo submission The Seeker, the intelligent agent is at once algorithm, agent, protagonist, and narrator. The Seeker reads differently each time because the code randomly shuffles in a new selection from its corpus to parse, deconstruct, and reconstruct. 

Today, humans and artificial intelligences have joined forces to tell prize-worthy stories like The Day a Computer Writes a Novel, which passed the first round of screening for the Hoshi Shinichi Literary Award in Japan, and 1 the Road published by Jean Boîte Éditions. The author of 1 the Road, Ross Goodwin, was a speechwriter in the Obama administration. Goodwin trained a Long Short-Term Memory Recurrent Neural Network (LSTM-RNN) with three different sets of texts (science fiction, poetry, and “bleak” writings) totaling sixty million words. 1 the Road is particularly interesting because the AI’s input is supplemented using sensors—a video camera, microphone, GPS device, and clock timer—exposed to the sights and sounds of a road trip from New York to New Orleans. Typically, large language models are trained on massive amounts of textual data and can be tens of gigabytes—even petabytes—in size. Researchers are concerned about running low on this kind of data to train models, which means that accessing data from other sources such as audio dialogue, images, spreadsheets and databases, and video clips will become increasingly important.

In this networked world exposure to content is constant. Generative AI promises to exponentially increase the amount created annually. Generative AI applications today are spiritedly responding to an apparent “creativity crisis” among human beings as measured by a thirty-year decline in scores on the Torrance Tests of Creative Thinking, a prominent test for human creativity. Generative AI has manufactured all sorts of objects, discoveries, and/or performances. However, some examples of computer-aided creativity are quite old. One precedent is Alan Turing’s imitation game. Another is the general problem solver of AI pioneers Herbert Simon, Allen Newell, and John Clifford Shaw. 

In 1958, Simon and Newell wrote that “within ten years a digital computer will write music that will be accepted by critics as possessing considerable aesthetic value.” This prediction has now been fulfilled by the subfield of generative music and algorithmic composition. One of the most famous examples is David Cope’s Experiments in Musical Intelligence (“Emmy”). Emmy is an algorithmic composer capable of analyzing existing musical compositions, rearranging and recombining them, and ultimately inventing new works that are indistinguishable from those of Johann Sebastian Bach, Frédéric Chopin, and Wolfgang Amadeus Mozart. Shimon at Georgia Tech University is a marimba-playing improvisational jazz-bot musician. DeepMusic.AI, OpenAI’s MuseNet, and the Magenta Music Transformer are all online tools for creating music with deep learning and generative AI. Recently, two programmers have been trying to make music infringement lawsuits obsolete by securing copyright to every combination of eight quarter notes in the C major scale using tones generated with the Musical Instrument Digital Interface (MIDI) standard electronic music protocol. And, similar to NaNoGenMo, a song contest has sprung up that is exclusively for artificially generated music. The first AI “Eurovision Song Contest” winner, the Australian group Uncanny Valley, sampled kookaburra bird calls and koala grunting noises. Additionally, there are AI painters, Dungeons & Dragons dungeon masters, journalists, filmmakers, dancers, stunt performers, and theater players. 

Global competition and controversies

A number of countries have established national strategies, initiatives, and funding mechanisms to promote AI innovation and adoption. Former US President Donald J. Trump established the American AI Initiative by signing an executive order in 2019. The order did not allocate any direct federal funding, but it highlighted the significance of employing AI in a responsible manner and taking action to respond to significant investments made by other nations. In 2020, the US Congress passed the National AI Initiative Act. The National AI Initiative (NAII) establishes a coordinated program that spans the federal government. It is aimed at expediting AI research and development (R&D) to strengthen the country’s economic growth and national security. The act provides almost $6.5 billion in funding over five years for R&D, education, and standards related to AI. The National Science Foundation, the Department of Energy, the Department of Commerce, the National Aeronautics and Space Administration, and the Department of Defense will jointly oversee a nationwide network of interdisciplinary AI research institutes.

The US government’s efforts are partially motivated by China’s substantial investments in AI technology. The New Generation Artificial Intelligence Development Plan, announced in 2017, is the Chinese government’s national strategy for AI R&D. China hopes to overtake the United States by 2030 and establish the country as a global leader in the production of AI technology and talent. The major port city of Tianjin in northern China has declared its intention to establish reserves totaling ¥100 billion (equivalent to $15.7 billion) to bolster the AI industry, as well as a separate ¥10 billion fund to advance intelligent manufacturing. China passed a national law aimed at addressing ethical and regulatory concerns related to AI in 2021. In April 2023, the Cyberspace Administration of China issued regulations mandating that content generated by AI must align with the fundamental principles of socialism.

The Russian Federation also has a National AI Development Strategy designed to bolster investment in AI research, education, and industrial development. Somewhat surprisingly, the 2019 Russian AI strategic decree does not mention national defense, though it does emphasize the importance of AI for economic development and healthcare. The decree also does not mention budget, deadlines, or enforcement mechanisms. Due to the recent military conflicts in Libya, Syria, Nagorno-Karabakh, and Ukraine, it is anticipated that Russia will allocate significant resources toward developing AI systems for unmanned aerial drones, counter-drone technologies, and AI-powered surveillance systems. 

Significant and unheralded projects are also underway in Africa. The African Union has unveiled an Artificial Intelligence Continental Strategy for Africa, which is intended to facilitate the participation of stakeholders, initiate capacity-building efforts, and fortify regulatory frameworks for AI technology and data management. Artificial Intelligence for Development in Africa (AI4D) is a four-year initiative launched in 2020 by Canada’s International Development Research Centre and Sweden’s International Development Cooperation Agency. The objective of AI4D is to team up with Africa’s government and scientific communities to encourage AI research, innovation, and talent. The ultimate aim is to elevate the standard of living for people in Africa and beyond. African nations are particularly concerned with issues of machine bias and ethics and wary of patterns of manipulation and abuse in the form of automated imperialism, algorithmic colonialism, and digital extractivism

Canada, Australia, Japan, South Korea, Germany, France, and the United Kingdom also have significant national strategies to address challenges posed by a future empowered by AI. Many of these nations are worried about the likelihood of global competition in AI leading to an arms race or authoritarianism fueled by information technologies. Entrepreneurs, politicians, and engineers warn of an impending “AI Cold War.” An AI arms race to create near-autonomous weapons systems is in full swing, despite being a topic of controversy. The banning of these so-called killer robots may not even be practical. Governments around the world have developed a number of other controversial applications of AI, such as image recognition and mass surveillance, predictive policing, deepfakes and misinformation campaigns, and social credit scoring.

Dangers, myths, and misconceptions

AI can be destructive even when used as an instrument for creative discovery. One of the dangers of unleashing computational creativity tools is being submerged by a culture of automation that dampens individual creative expression and dialogue with human audiences, participants, and partners. In 2022, an AI-generated artwork took first place in a fine arts competition at the Colorado State Fair, which outraged many. Only months later, an internationally acclaimed photography competition—the Sony World Photography Awards—was won by an image generated using AI. Getty Images and established art communities are refusing to accept AI-generated masterpieces. But in general, AI is valuable because it empowers humanity with tools that extend bodies and minds and mitigates risks and perilous circumstances.

Deep learning pioneer and serial entrepreneur Andrew Ng has said that worrying about AI is like worrying about overpopulation on Mars. Artificial agents will not need to be excused or incarcerated for crimes and misdemeanors that upon analysis and reflection can be traced to human error, indifference, or greed. Whole brain emulation, artificial consciousness, technological singularity, and AI apocalypse are all well over the horizon. The threats that remain are still significant. The chief near-term dangers of AI technology are pervasive and more subtle. They include risks such as over-optimization, weaponization, deception and distraction, complexification, moral and practical deskilling, amplification of competition and conflict, job losses due to automation, and harms to human uniqueness, privacy, and accountability.

What lies behind the hype and fear of AI is a fundamental misunderstanding of current objectives, as well as severe shortsightedness. Most AI is meant to supplement human intelligence, not replace it. AI is intelligence augmentation until—and only if—humanity commits and finds ways to entirely remove human beings from the loop as creators, controllers, and decisionmakers. “Exiting the loop” will prove difficult: Humans are extraordinarily skilled at handling ambiguous situations, such as intuiting the emotional state of other drivers on the road. AI will not become human-like merely because humans anthropomorphize it either. An AI program does not try to learn (although it can improve through reinforcement learning methods); it plucks statistical patterns and distributions from training data using pipelines, algorithms, and parameters unglamorously selected behind the scenes by programmers. ANNs are not reasoning the way brains do, and adversarial ML involves no clashing of titans. Thinking about the past, present, and future of AI is imperative. When IBM said that the Jeopardy!-winning Watson AI would also revolutionize medicine, it in effect denied a century of hard-won gains in health informatics R&D (and has yet to achieve its lofty promises). It is not possible to simply wave our hands and say that quantum computing, DNA data storage, and neuromorphic chips will pave the way for an AI-infused next industrial revolution. Real progress in AI comes much more slowly, albeit with occasional surprising leaps forward, and ultimately depends on the real wants and needs of human beings.


Philip L. Frana is an associate professor in the Interdisciplinary Liberal Studies and Independent Scholars programs at James Madison University. His scholarly interests focus on the social and cultural aspects of robotics, automation, and information technology.

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The disinformation landscape in West Africa and beyond https://www.atlanticcouncil.org/in-depth-research-reports/report/disinformation-west-africa/ Thu, 29 Jun 2023 09:00:00 +0000 https://www.atlanticcouncil.org/?p=655037 A look at West Africa’s information environment, with particular emphasis on local and international disinformation campaigns targeting the region and beyond.

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Introduction

The prominence of West Africa, and Africa as a whole, within the global disinformation ecosystem cannot be ignored. A report by the Africa Center for Strategic Studies released in April 2022 identified twenty-three disinformation campaigns targeting African countries dating back to 2014. Of these campaigns, sixteen are linked to Russia.

The listed disinformation campaigns—nine of which were identified by the DFRLab—reveal two key points. First, there has been a marked increase in the number of publicly identified disinformation campaigns in recent years. Whether this is due to an increase in the scrutiny, analytical capacity, or efforts on the part of bad actors is unclear. Second, the characteristics of each of these influence operations are distinct—these operations target a wide variety of issues, such as elections, the war in Ukraine, commercial interests, and domestic and international politics.

Further, relations between France and francophone West Africa have, following years of amicable relations built on the back of military cooperation, seen a marked erosion that was underscored by the exit of the last of the French troops from Mali in August 2022. Anti-France and pro-Russia sentiments have surged contemporaneously, with overlapping narratives positioning Russia as a viable alternative to Western aid. When French forces began their departure from Mali in June 2022, Russian private military companies (PMCs) such as the Wagner Group stood ready to fill the void.

This report examines several influence operation case studies from the West African region, with a particular emphasis on Mali, Burkina Faso, Côte d’Ivoire, and Niger. The narratives, actors, and contexts supporting these influence operations are summarized alongside their impact on regional stability. Russian influence plays a significant role in these case studies, an unsurprising fact considering the geopolitical history of this region.

This report also includes case studies from outside the Sahel region, consisting of thematically distinct but strategically noteworthy influence campaigns from elsewhere on the continent. For example, the Nigerian government used social media influencers to suppress citizen participation in the #EndSARS movement. Elsewhere, the Ethiopian diaspora used innovative click-to-tweet campaigns to spread international awareness of the conflict in Ethiopia’s Tigray region. In South Africa, the rise in violent xenophobic demonstrations was precipitated by a popular social media campaign that normalized prejudice against foreign nationals.

The plethora of actors, targets, strategies, and tactics make a blanket approach to studying African disinformation networks difficult. The depth and breadth of these campaigns shows that Africa is facing the same challenges as the rest of the world insofar as disinformation is concerned. Moreover, the interest shown by foreign governments attests to the region’s geopolitical significance. This combination of geopolitical importance and a vulnerability to influence campaigns makes Africa a notable case study.

Background

Africa’s information environment is not monolithic Analog channels such as radio and film are used in conjunction with digital efforts to reach audiences, but Internet penetration rates and the accompanying reli- ance on analog media differ significantly from country to country For example, as of January 2022, Morocco, the Seychelles, and Egypt maintained Internet penetration rates of higher than 70 percent, nearly ten times the rate of the country with the lowest penetration rate, the Central African Republic (7 percent).

In the countries mentioned in the table above, Facebook and Instagram maintain a leading position insofar as social media penetration is concerned This can be partly ascribed to Facebook’s Free Basics service that “zero-rates” data (including Facebook and Instagram data) on participating mobile networks. These mobile networks can then bundle Facebook and Instagram data into a consumer’s service plan without the consumer having to pay extra for that data use Considering that mobile connections outstrip desktop connections, and that mo- bile data is more expensive than fixed broadband, it is clear why this has been effective to expand Facebook and Instagram’s footprint Meta shuttered the Free Basics program in some regions at the end of 2022 as the program’s spiritual successor – Meta Discover – was being rolled out The impact this will have on the information environment remains to be seen.

Social media and internet penetration rates in some of the African countries referenced in this report

Breakdown of Social Media and Internet Penetration Rates in Some of the African Countries Referenced in This Report

With contributions from

Code for Africa

The Atlantic Council’s Digital Forensic Research Lab (DFRLab) has operationalized the study of disinformation by exposing falsehoods and fake news, documenting human rights abuses, and building digital resilience worldwide.

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CBDC tracker cited by Statista https://www.atlanticcouncil.org/insight-impact/in-the-news/cbdc-tracker-cited-by-statista/ Wed, 28 Jun 2023 16:11:23 +0000 https://www.atlanticcouncil.org/?p=661596 Read the full piece here.

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Building a biofuels industry in Africa https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/policy-sprint-building-a-biofuels-industry-in-africa/ Wed, 28 Jun 2023 14:30:00 +0000 https://www.atlanticcouncil.org/?p=659852 In numerous African nations, the expansion of the biofuels industry could serve as a solution, albeit a partial one, to support the interlocking imperatives of achieving universal access to modern energy services and attaining a high-growth, low-carbon economy.

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Many African nations are faced with simultaneous development imperatives to achieve a high-growth, low-carbon economy, while increasing access to modern energy services. Expansion of the biofuels industry across the continent, particularly in regions outside of North Africa, could potentially serve as a solution, albeit a partial one, to support these imperatives. When produced in localized or regionalized supply chains, biofuels—which are made from plants and other biological materials—can serve as a clean energy source to meet two fundamental needs of developing economies in African regions: transportation and—perhaps less intuitively—cooking. However, ensuring the availability of crops for food security is a prerequisite for expanding the biofuels industry.

Further expanding this nascent industry will require chipping away at a web of challenges facing continent-wide biofuels production and biorefining, including first ensuring crops for food security are not diverted to biofuel manufacturing. To build out the potential of the biofuels industry in Africa, it is imperative that agricultural practices modernize, and adequate infrastructure be developed to enable the storage, transport, and conversion of feedstocks and fuels.

To realize this vision, the value chain for biofuel products will require substantial support from private and public sources of investment, regulators, and local market participants. Across the continent, establishing a biofuels industry will require coordinated efforts to build a supply of feedstocks and to develop adequate market-driven mechanisms for the collection and transport of feedstock to processing or refining facilities. Expanding the industry will also require feedstock-calibrated refining capabilities and distribution systems to transport biofuels to end users. Progressing to this end state will hinge on the presence of public-private partnerships to match suppliers with demand sources, technology-sharing initiatives between African nations and other economies with large biofuel industries, and targeted efforts to de-risk investment in pioneering projects and facilities through the use of concessional finance or innovative blended-finance structures, paired with technical assistance.

While full-scale deployment of biofuels may require the synchronization of several intermediate steps, the benefits are clear. Developing the biofuels industry in African countries can partially incentivize much-needed agricultural modernization across the continent, produce valuable low-carbon fuels to meet growing domestic and worldwide demand, and promote access to clean cooking, provided that food security is addressed as a prerequisite—although such efforts may be mutually reinforcing.

AUTHORS

Maia Sparkman is an assistant director with the Atlantic Council Global Energy Center (GEC), where she focuses on energy and climate policy. She supports the GEC’s research on energy access and energy system transformation in Africa; city-level climate action; and industrial decarbonization.

Prior to joining the Council, Sparkman served in the Peace Corps as a sustainable agriculture specialist in Zambia, where she worked closely with small-holder farmers and liaised with Zambia’s Ministry of Agriculture and the US Forest Service to promote climate-smart agriculture practices and diversify household nutrition.

William Tobin is a program assistant at the GEC, where he focuses on energy and climate policy. William’s research efforts center on energy transitions in emerging markets; clean energy supply chains and critical materials; the future of oil and gas; and emerging technologies such as clean hydrogen and advanced batteries.

Tobin served previously for the US Department of State at a Regional Environment, Science & Technology, and Health Office; and for two members of the US House of Representatives. He is a graduate of the University of Florida, where he earned a Bachelor of Science in biology.

Maxwell Zandi is a former young global professional at the GEC. His research interests include the geopolitical dimensions of energy policy and the water-energy-food nexus. Prior to his time at the Atlantic Council, Zandi interned at the Wilson Center and Green Powered Technology. 

Zandi holds a master’s degree in international affairs from George Washington University with a concentration in international security and US foreign policy. He also has a bachelor’s degree in political science from Villanova University. 

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The Global Energy Center develops and promotes pragmatic and nonpartisan policy solutions designed to advance global energy security, enhance economic opportunity, and accelerate pathways to net-zero emissions.

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CBDC tracker cited by Decrypt https://www.atlanticcouncil.org/insight-impact/in-the-news/cbdc-tracker-cited-by-decrypt/ Mon, 26 Jun 2023 16:17:07 +0000 https://www.atlanticcouncil.org/?p=661600 Read the full piece here.

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Mühleisen quoted in Axios on Zambia debt restructuring deal https://www.atlanticcouncil.org/insight-impact/in-the-news/muhleisen-quoted-in-axios-on-zambia-debt-restructuring-deal/ Mon, 26 Jun 2023 14:55:18 +0000 https://www.atlanticcouncil.org/?p=659311 Read the full article here.

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Less than half of 1 percent of human trafficking victims are identified. That needs to change. https://www.atlanticcouncil.org/blogs/new-atlanticist/less-than-half-of-1-percent-of-human-trafficking-victims-are-identified-that-needs-to-change/ Fri, 16 Jun 2023 13:36:22 +0000 https://www.atlanticcouncil.org/?p=656229 The US Department of State just published its latest Trafficking in Persons Report, but the number of identified victims is a rounding error of the total global estimated victims.

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Human trafficking victims suffer because governments lag behind. On Thursday, the US Department of State published its annual Trafficking in Persons Report (TIP report), and the facts should shock us all. Traffickers operate with impunity, forced labor sustains global supply chains, predators rent children for commercial sex, and governments fail to implement strong enough action plans, laws, and treaties to stop them.

One of the most glaring examples of governments’ poor performance is the egregiously low number of victims governments identify—a problem I routinely faced over the last two decades working on this issue as a federal prosecutor, nongovernmental organization leader, and US ambassador. The United Nations (UN) Protocol to Combat Trafficking in Persons is one of the most widely subscribed instruments of international law, under which governments commit to identifying the people whom traffickers exploit. According to the latest TIP report, however, governments around the world reported identifying only 115,324 human trafficking victims in the last year. This number comes from data governments provide to the US State Department about the number of victims whom law enforcement or nongovernmental organizations identify and who receive protection services. Although this number is higher than last year’s number, it is slightly lower than the high of 118,932 victims identified in 2019.

The UN estimates that traffickers are compelling 27.6 million people into forced labor or sex trafficking.

Meanwhile, the estimated number of human trafficking victims is increasing. Compare the number of victims that governments reported identifying with the UN estimate based on surveys and data modeling. The UN estimates that traffickers are compelling 27.6 million people into forced labor or sex trafficking.

If 27.6 million victims exist and governments are only identifying 115,324 victims, then the world only identifies less than half of 1 percent of the estimated victims (0.4 percent). This means that 99.6 percent of victims remain trapped by their traffickers, unable to decide where they work or who touches their bodies.

Sex trafficking dominates the discussion of governments’ lackluster victim identification efforts. Forced labor has received less attention, but in this year’s TIP report governments identified a higher number of forced labor victims than in any prior year: 24,340. This improvement, along with governments prosecuting the largest number of labor traffickers, is encouraging. However, when the victim identification statistics are isolated for just forced labor, governments are only identifying 0.1 percent of the total estimated forced labor victims.

Victim identification is made even more difficult due to state-sanctioned human trafficking. The TIP report found that in eleven countries, the governments themselves trafficked people. These offenders include Cuba, North Korea, Eritrea, and China, where millions of Uyghurs are forced to work in Xinjiang reeducation camps. It is especially odious when the government charged with identifying victims is, in fact, the perpetrator.

Without effective victim identification, governments cannot hold traffickers accountable, and people of goodwill cannot offer tailored, trauma-informed services to trafficking survivors. Society cannot address what it cannot identify. Victim identification is the prerequisite to successful prosecution and prevention of this crime. Yet, governments’ rate of victim identification is appallingly low.

It is time for governments to match their rhetoric with their resources and dramatically increase funding for prevention efforts, investigators, prosecutors, service providers, and trauma-informed care. Specialized investigative units should no longer be paper tigers. Survivor leadership should no longer be an ornamental add-on. Holding companies and individuals accountable for committing human trafficking crimes should no longer be elective. Human trafficking victims should no longer be prosecuted for the unlawful acts their traffickers compel them to commit.

Improvement and success must begin with increased victim identification. There are several practical steps that concerned citizens should ask their governments to take:

  • Mandate that educators and health care providers become mandatory reporters.
  • Invest in specialized investigative units and prosecutors focused on stopping traffickers. 
  • Create pathways for survivors to rid themselves of criminal records caused by their traffickers. 
  • Ensure companies are not using forced laborers to produce solar panels, electric vehicles, apparel, tomatoes, and batteries. 
  • Fund trauma-informed services for survivors. 
  • Elevate and center survivors in the fight to put traffickers out of business.

Traffickers thrive in an ecosystem where mere intentions and underfunded public justice systems are their only challenges. It is time for leaders to arise and become champions for freedom. Millions of victims count on governments, civil society, and faith communities to do more than merely care about their plight, designate awareness days, and think good thoughts. Survivors need the world to accelerate its strategic investment and meaningful action to increase victim identification.


John Cotton Richmond is a nonresident senior fellow at the Atlantic Council, chief impact officer at Atlas Free, president of the Libertas Council, and former US ambassador-at-large to monitor and combat trafficking in persons.

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Give Africa’s peace delegation for Ukraine a chance https://www.atlanticcouncil.org/blogs/africasource/give-africas-peace-delegation-for-ukraine-a-chance/ Thu, 15 Jun 2023 16:39:46 +0000 https://www.atlanticcouncil.org/?p=653542 The African presidents aiming to bring an end to Russia’s war in Ukraine can be a part of the solution to a global problem rather than sit on the sidelines of geopolitics as collateral victims.

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A delegation of African presidents and diplomats—from Senegal, Uganda, Egypt, Republic of Congo, Zambia, and South Africa—will soon present Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy, in Moscow and Kyiv respectively, a peace plan for ending Russia’s war on Ukraine.

The initiative is rare enough to draw some sarcasm about African presidents who are seeking to stop a European war when they can’t stop wars closer to home. For those critics—who overlook the work done in an effort to end the conflict in Ethiopia last year—it is hard to remember the last time such a delegation of African presidents assembled together to respond to a war on African soil. They point to cases in Khartoum, Sudan, and Goma, the Democratic Republic of the Congo, where any conflict-resolution efforts were ineffectual.

Other observers see this new delegation of African leaders as an attempt by South Africa to distract people from troubles at home. The announcement of the delegation came just days after US Ambassador to South Africa Reuben Brigety’s allegation that a Russian cargo ship stocked up on ammunition and arms at a port in Cape Town in December 2022.

The recent (albeit cautious) support from United Nations Secretary-General António Guterres, Washington, and European capitals—along with the varied geopolitical positions of these African countries—lent enough credit to the initiative to give it a chance. In the United Nations General Assembly’s recent vote to condemn Russia over its invasion of Ukraine—held on February 23 this year, around the one-year mark of the full-scale invasion—thirty African countries voted to condemn Russia, twenty-two countries abstained, and two supported Russia. These African leaders, representing both countries who voted to condemn Russia and countries who abstained, form the optimal group to propose a peace plan, as several of them see this as an opportunity to justify their varied positions—including neutrality—and find a diplomatic end to the war.

What does this peace plan say? Frankly, not much—at the moment. South African President Cyril Ramaphosa spoke of vague preparations and of having separate phone calls, but avoided critical details. Russian Foreign Minister Sergei Lavrov said he was looking forward to seeing the delegation’s “concrete initiatives.”

What African leaders are weighing

Russia’s links to the African continent date back to the Cold War and a desire to support communist regimes (in places such as Guinea, Congo, and Ethiopia) and social-democratic or socialist political movements (in places such as South Africa, Angola, Mozambique, and Zimbabwe). The Soviet Union deployed forty thousand advisers across Africa between 1970 and 1975, and, over the course of the Cold War, received about sixty thousand African students—notably at the Patrice Lumumba Peoples’ Friendship University of Russia, which drew students from developing countries across the world. Some major African infrastructure projects are products of partnerships with the Soviet Union, Russia, or Russian companies. Those include the Aswan Dam in Egypt, the Capanda hydroelectric dam, and power plants planned in Congo and Nigeria. These are all countries that Putin hopes to rely on in order to find the support he lacks in the Global North.

Yet, while the USSR and, later, Russia have supported Africa in these ways, Africans are unlikely to blindly align themselves with Russia. It is impossible to ignore that previous support was more inspired by a desire to compete against the United States than by a love for freedom or Africa. Today, outside observers and African publics alike cannot ignore the humanitarian cost posed by Russia’s Wagner Group militias in the Sahel, Libya, the Central African Republic, or Mozambique. It is also difficult to see African youth seduced by the Russian way of life rather than the American dream, the latter of which has been able to increase its appeal to African youth via Netflix and Silicon Valley.

In fact, even if the West can’t see what Russians could seriously offer to Africans now, it has not been very difficult for Russia to fuel the very real African resentment towards the West. For Russia and the West, Africa is a coveted asset—one that holds 28 percent of the votes at the United Nations. In the post-Cold War period, Ukraine had neither the resources nor the geopolitical interest to engage in Africa like Russia did. That gave Russian views justifying aggression a hearing in Africa that it otherwise would not have received.

The complicated relations between African countries and also between African countries and global competitors such as Russia, the United States, and others leaves African policymakers in a bind. Those policymakers must carefully balance their economic interests and historical ties.

Further complicating the choice for African policymakers is the overwhelming US and Western support for Ukraine, in contrast to the lack of support and attention for African countries facing conflict. African countries, out of national interest, are looking to diversify their partnerships; they will need to balance their specific needs and local contexts in this geopolitical chaos.

A change in the narrative

The delegation of African presidents aiming to bring an end to Russia’s war in Ukraine offers a unique opportunity for these leaders to be a part of the solution to a global problem and no longer rest on the sidelines of geopolitics as collateral victims.

Russia’s full-scale invasion of Ukraine caused a considerable increase in the price of grains, worsening food security particularly in the Horn of Africa; at the same time,it has also allowed Africa to step up as an alternative producer of some critical goods. For example in the energy sector, as Europe diversified away from Russian energy supplies, Africa helped fill the void, with Algeria now among the top four exporters of gas to Europe and with Egypt also bolstering its gas-export capacity, according to its Ministry of Petroleum and Mineral Resources. Recent hydrocarbon discoveries in Senegal and Mozambique are set to come online in the years ahead. These significant actions show that Africa is playing a leadership role and refusing to sit on the sidelines as a victim of geopolitical fallout.  

Africa has the peace and conflict-resolution experience to put forward in ending Eastern Europe’s geopolitical crisis. Even if African efforts have not always been successful, these efforts are valuable; the leaders behind them still have crucial experience in conflict management. Some might argue that the existence of countless conflict resolution tools, demobilization programs, peace-building mechanisms, and strategic frameworks such as the Peace and Security Council of the African Union indicate that African leaders fail to settle the conflicts and wars happening in their own countries; but in reality, the existence of these initiatives shows that African leaders have created dialogue where there were voids, demobilized fighters so they could return home, and, in some cases, helped societies address the horrors of war and build a lasting peace. Several of the leaders in the African peace delegation have participated in responding to violent conflict or have worked to end conflict. That experience may be usefully applied to Russia’s war on Ukraine.

By bringing the unique peace initiative together, African presidents are attempting to advance their leadership on the global stage. This is an incredible challenge for a continent that has often been applauded for its potential, but which must now deliver.

Rama Yade is the senior director of the Atlantic Council’s Africa Center and a senior fellow at the Europe Center. She is a professor at Sciences Po Paris and Mohammed 6 Polytechnic University in Morocco. She was a member of the French cabinet, serving as deputy minister for foreign affairs and human rights and ambassador to UNESCO.

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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Prosperity that lasts: The 2023 Freedom and Prosperity Indexes  https://www.atlanticcouncil.org/in-depth-research-reports/report/prosperity-that-lasts-the-2023-freedom-and-prosperity-indexes/ Thu, 15 Jun 2023 11:55:19 +0000 https://www.atlanticcouncil.org/?p=653189 The 2023 Freedom and Prosperity Indexes measure the distribution of freedom and prosperity in 164 countries. The report explores the relationship between the two and identifies global and regional trends over the last twenty-eight years.

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Executive Summary

Is freedom a precondition of prosperity? Do countries that become freer also become more prosperous? How are freedom and prosperity distributed around the world today? What has been the evolution of these measures in the past twenty-eight years and why? What components of freedom and prosperity have increased or decreased the most, and where?
 
The Atlantic Council’s Freedom and Prosperity Center created these indexes to provide a snapshot of the current distribution of freedom and prosperity, gain a sense of the evolution of both over the last twenty-eight years at global, regional, and country levels, and facilitate an exploration of the relationship between freedom and prosperity. Our analytical work uncovered several facts.
 
First, freedom and prosperity are not evenly distributed around the world, with evident regional differences. Using the four categories of our rankings, Europe and North America are by far the “freest” regions of the world; Latin America is generally “mostly free”; while the Middle East and North Africa (MENA) region is generally “unfree.”
 
Second, the distribution of prosperity highly resembles that of freedom: regions and countries with higher scores in our Freedom Index also attain higher levels of prosperity. The statistical analysis presented in this report conveys a close association between freedom and prosperity, not only at a global level but also within regions and other subgroups of countries. Being both a free and prosperous society is not particular to Europe and North America. In all regions, countries that are free tend to also be prosperous.
 
Third, the scores for our Freedom Index, which are an average of the scores of our economic, political, and legal freedom subindexes, improved in most years between 1995 and 2012. After 2012, they mostly stagnated until the start of the COVID-19 pandemic in 2019, following which they declined. This is explained by decreases in political and legal freedom scores after 2012, offset by increases in economic freedom.
 
The women’s economic freedom global score, an indicator in the economic freedom subindex, has shown a steady and dramatic improvement. It increased 34 percent over our analysis period, from 54.0 in 1995 to 72.4 in 2022. Improvements occurred in all seven geographic regions of our indexes.
 
Fourth, global prosperity grew every year between 1995 and 2019, after which the COVID-19 pandemic caused a decline. The rate at which prosperity increased was slower after 2012, the year when political and legal freedom started their decline. Prosperity increased an average of 0.4 points per year between 1995 and 2012, but only 0.1 points between 2012 and 2022. Our only prosperity declines were in 2020 and 2021, caused by the pandemic.

On the positive side, sub-Saharan Africa is the region where prosperity has grown fastest. Meanwhile, prosperity growth performance in both the MENA region and South and Central America did not keep up with the global pace.

There are several regional trends of note. On the positive side, sub-Saharan Africa is the region where prosperity has grown fastest. Meanwhile, prosperity growth performance in both the MENA region and South and Central America did not keep up with the global pace.
 
The Freedom and Prosperity Center’s mission is to increase the well-being of people everywhere—and especially of the poor and marginalized in developing countries—through unbiased, data-based research on the relationship between freedom and prosperity.
 
To help in this task, the Center developed these indexes as tools to assess the freedom and prosperity performance of virtually all countries of the world and to help agents of change in their efforts to place their nations on the way to prosperity.
 
To be sure, there are several credible indexes and measures that quantify different aspects of freedom (democracy, economic freedom, civil liberties, and so on) or prosperity (income per capita, inequality, happiness, etc.) produced by respected organizations. The contribution of the indexes comes from their comprehensive exploration of both freedom and prosperity and the relationship between the two.
 
The Freedom Index includes measures of legal, economic, and political freedom. Legal freedom measures the degree to which a country abides by the rule of law. Political freedom reflects a country’s institutional framework for the selection of those holding executive political power and the limits and controls imposed on its exercise. Economic freedom measures whether the bulk of economic activity in a country is guided by the principles of free and competitive markets. We believe that all three are necessary for a society to be fully free.
 
The Prosperity Index takes a similarly broad view, going beyond the measurement of pure material well-being and also evaluating several other social aspects that we believe are necessary in a prosperous society. Our Prosperity Index has six indicators: income, health, education, environment, minority rights, and inequality.
 
The 2023 Freedom and Prosperity Indexes presented in this report introduce significant improvements over last year’s pilot version, in terms of theoretical soundness and time coverage. First, we have refined our conceptualization of freedom and prosperity following well-established economic, legal, and political science definitions. Second, we have significantly extended the time coverage of our indexes, which are now calculated yearly from 1995 up to 2022, allowing for an analysis of the medium- and long-term trends of our measures and the use of sophisticated econometric techniques.
 
We start with a descriptive portrayal of freedom and prosperity in the world. But we then go one step further, providing a preliminary empirical analysis of the nature of the relationship between the two variables, and concluding that freedom tends to lead to prosperity. Countries with the largest positive changes in freedom between 1995 and 2022, such as Sierra Leone, Peru, or Georgia, have also experienced large increases in prosperity. Conversely, cataclysms in terms of freedom in, for example, Venezuela, Nicaragua, Belarus, Turkey, Russia, or Yemen have been followed by severe drops in prosperity.
 
The analysis presented in this report is just a first step. Several questions and intuitions deserve further research, and we are committed to such a task in the coming years. At the same time, we urge researchers to use our indexes to further explore the relationship between freedom and prosperity, dig deeper into specific country cases, and suggest policy reforms as appropriate.
 
Similarly, we encourage agents of change around the world to take advantage of our data to identify the areas calling out for reform and to assess the effects of policies. In this sense, international organizations and the international donor community can play an important role in smoothing the transition toward representative institutions, cushioning the short-term costs of freedom-promoting reforms, and supporting agents of change in the least developed countries with the vision and commitment to place their nations on the path of freedom and prosperity.

The 2023 Freedom and Prosperity Indexes

One year ago, the Atlantic Council created the Freedom and Prosperity Center with the mission to increase the well-being of people everywhere—and especially of the poor and marginalized in developing countries—through unbiased, data-based research on the relationship between freedom and prosperity. To help in this task, the Freedom and Prosperity Center last year introduced a pilot version of the Freedom and Prosperity Indexes, a quantification effort using 2021 data to assess the performance in terms of freedom and prosperity for virtually all countries of the world. With this report, we present the updated and improved 2023 Freedom and Prosperity Indexes, using annual data from 1995 to 2022.

A distinctive aspect of the Freedom and Prosperity Indexes is their root in and reflection of an expansive understanding of what constitutes a free and prosperous society. The Freedom Index includes measures of economic, political, and legal freedom. This broader definition of freedom differentiates the index from other measures focused on specific institutional aspects (electoral, corruption, economic openness, and so on). Likewise, the Prosperity Index is more exhaustive than previous measurement projects such as the United Nations Human Development Index or various poverty indexes. The rationale for our approach is based on the premise that we can gain new insights and better understand the mechanisms that lead to overall prosperity by analyzing the relationships and interconnections between different dimensions of freedom.

During the past twelve months, the Freedom and Prosperity Center team has discussed the construction of the indexes with a wide variety of experts, academics, and policymakers, receiving useful feedback and suggestions on potential improvements. The First Annual Freedom and Prosperity Research Conference, held in Washington in February 2023, was a significant milestone in this discussion process. As a result, the new 2023 Freedom and Prosperity Indexes introduce a series of methodological changes intended to improve the time coverage and theoretical soundness of our measures, while otherwise maintaining the construct of the pilot version.

The analysis presented in last year’s report focused on scores for 174 countries based on 2021 data. That data suggested a clear, positive correlation between freedom and prosperity. The most prosperous countries in 2021 were those obtaining the higher scores in overall freedom and also in the economic, political, and legal freedom components. Nonetheless, we could not analyze rigorously the time dimension of the relationship between freedom and prosperity (and their components), and in particular the direction of causality, because of the limited time coverage of some of the sources used. To tackle this shortcoming, we have made the necessary changes in terms of data sources so that the new version of the indexes, presented in this report, are calculated annually for the 1995-2022 period. Enhanced time coverage in the second annual edition of the indexes allows for an analysis of the trends of freedom and prosperity over the last twenty-eight years, and thereby permits the use of more sophisticated econometric techniques that will help identify the causal mechanisms that drive the relationship.

Based on discussions with experts and academics, as well as on a thorough review of the literature, we have refined our conceptualization of the three dimensions of freedom—especially legal freedom—and better grounded them on solid and generally accepted legal and political science definitions.

Moreover, in our selection of data sources, we tried to maximize the identification between such definitions and their empirical counterparts, avoiding overlaps or unmeasured attributes. We also have modified our definition of prosperity, eliminating highly subjective attributes (e.g., happiness), and incorporating two new elements that are generally accepted as defining a prosperous society by the international development community (education and economic equality).

Overall, we believe that the new 2023 Freedom and Prosperity Indexes together constitute a product that is conceptually sound and will appeal to scholars and researchers as a quantification tool. It will allow the further exploration of the nature of the relationship between freedom and prosperity.

Also, the Freedom and Prosperity Indexes can aid policymakers and other agents of change in identifying areas of institutional reform with the biggest opportunity for improvement, and the highest dividends in terms of sustained and inclusive prosperity.

Indexes construction

The guiding principles for the construction of the Freedom and Prosperity Indexes are transparency, simplicity, and consistency in the methodology. We started by selecting empirical indicators with ample coverage across time and space, maximal identification with the theoretical concepts, and put out by rigorous and well-established institutions. The result is a total of thirty-four variables that are combined to form nineteen indicators, which are used to build the Freedom and Prosperity Indexes.

We use original data from eleven different institutions including the World Bank, the Varieties of Democracy (V-Dem) Project, the United Nations, and the Fraser Institute—all publicly available and widely used in academic and policy research. Besides the necessary scaling so that all components lie in the same range (zero to one hundred), we do not make any additional transformations except for gross domestic product (GDP) per capita, which is linearized before scaling by taking the natural logarithm. For the few cases for which we do not have data for a variable from a preferred source, we use alternative sources of data1. If a country-year observation is missing for a given variable, we use the value of the closest precedent year.

The aggregation method is also simple and transparent. When more than one variable is used to obtain a component, these are averaged with equal weights. Legal, economic, and political freedom subindexes are calculated as the equal weighted average of their respective components, and the overall Freedom Index is just the unweighted average of the three freedoms. The Prosperity Index is given by the equal weighted average of its six constitutive components.

The complete dataset of components, subindexes, and indexes for the period 1995 to 2022 is available on our website, as is a detailed discussion of our methodology. Therefore, researchers can use the indexes to further explore particular questions on the mechanisms and linkages between freedom and prosperity, as well as generate alternative measures based on different conceptualizations, aggregation methods, and so on. The full disclosure of the dataset will also enable policymakers to identify specific areas of reform, compare their country’s performance with that of neighboring nations, and assess the effects of different policies. Finally, we will publish annual updates of the indexes to estimate changes in the degree of freedom and prosperity across the world.

Trackers and Data Visualizations

Jun 15, 2023

Freedom and Prosperity Indexes

The indexes rank 164 countries around the world according to their levels of freedom and prosperity. Use our site to explore twenty-eight years of data, compare countries and regions, and examine the sub-indexes and indicators that comprise our indexes.

The Freedom Index

Free societies are comprised of a bundle of institutions. We think of freedom comprehensively as a combination of political freedom (democracy and individual rights), legal freedom (the rule of law), and economic freedom (free market economy). Therefore, the Freedom Index aggregates three subindexes (legal, economic, and political freedom), each of them covering several components. This section gives an overview of the operationalization of each of these freedoms, providing a theoretical justification for the choice of components based on well-established definitions in the academic literatures of law, political science, and economics.

Figure 1: Freedom Index structure

(all indicators receive equal weight)

The legal freedom subindex measures the degree to which a country abides by the rule of law. To be sure, there is no uncontested definition of the rule of law, and legal theorists and scholars disagree on the necessary attributes of the concept2. Given our separate measurement of economic and political freedom, we followed the formal conceptualizations of the rule of law given by jurists such as Lon Fuller, Joseph Raz, or John Finnis3. A simple definition that summarizes this notion is given by Brian Tamanaha: “The rule of law means that citizens and government officials are bound by and abide by the law.”4 Therefore, our measure of legal freedom is stripped of any substantive content, in particular the protection of any individual rights that are included in the political and economic freedom subindexes. The Legal Freedom Index measures the degree to which a country’s citizens and government officials comply with and fairly apply the established laws and regulations, and is thus linked to the ideas of certainty, stability, and predictability. When a country, especially its government, generally abides by the rule of law, individuals can form rational and accurate expectations about the future and consequently make better informed decisions regarding economic, family, or political issues.

We operationalize our selected definition of legal freedom with five components:

  • Clarity of the law
  • Judicial independence and effectiveness
  • Bureaucracy quality and corruption
  • Security
  • Informality

The political freedom subindex reflects a country’s institutional framework for the selection of those holding executive political power and the limits and controls imposed on its exercise. That is, it is a concept that closely resembles the ideals of democracy and individual rights. The political freedom measurement has four components:

  • Elections
  • Political liberties
  • Civil liberties
  • Legislative constraints on the executive

The first component captures the electoral core of democracy: whether political leaders are chosen by the citizenry in open, clean, and fair elections with comprehensive suffrage. Political liberties encompass individual rights directly linked to the democratic political process, such as freedom of expression or association. Jointly, the first two components of the political freedom subindex cover all the attributes and requisites of Robert Dahl’s concept of polyarchy5, the most widely accepted definition of democracy among political scientists. Civil liberties include an array of individual rights in the liberal tradition (e.g., criminal procedural rights, absence of torture, freedom of movement, and so on) that limit the scope of governmental action—guaranteeing an area of individual autonomy and freedom in personal affairs. Finally, a democratically elected legislative branch imposes an additional level of control and accountability on the executive’s exercise of power which is captured in the fourth component.

Overall, the political freedom subindex is intended to measure the extent to which governments and lawmakers are responsive to the demands of citizens and respect their individual rights and liberties. The more inclusive the political system, and the more it allows for citizens to oppose and contest those in power, the closer public policies are expected to reflect the preferences of a majority of the population, ultimately producing sustained and shared prosperity for all.

The economic freedom subindex is designed to measure whether the bulk of economic activity in a country is guided by the principles of free and competitive markets. It comprises four components:

  • Property rights
  • Trade freedom
  • Investment freedom
  • Women’s economic opportunity

Well-defined and secure property rights are the foundation of a market economy, and the degree to which governments back and enforce such rights is crucial to generate the incentives to work and invest, favoring the level and efficiency of economic activity. Trade freedom refers to the ability to engage in international transactions of goods and services, which allow businesses and individuals to capture the gains of comparative advantage, expanding the country’s production possibility frontier and the efficiency of the allocation of resources by encouraging domestic market competition. Investment freedom addresses the ease of moving capital within and across borders, which can enable the allocation of capital to its most efficient uses, enhancing saving and investment. Finally, women’s economic freedom refers to gender equality in economic affairs. This component reflects the degree to which property rights, trade, and investment freedoms also benefit the female share of the population. Countries where economic freedom is partly or completely absent for the 50 percent of their citizens who are women are necessarily renouncing a significant portion of their economic potential.

Each component is scaled so that all are in the zero to one hundred range. Each subindex (legal, political, and economic freedom) is calculated as the unweighted average of its components. The aggregate Freedom Index also is calculated as an unweighted average of the three subindexes. Figure 1 depicts the complete structure of the Freedom Index. 

After arriving at an aggregate score for each country, which ranges from zero to one hundred, we placed countries into four categories: free, mostly free, mostly unfree, and unfree. To do so, we divided the range of scores for all countries in the sample (maximum score minus minimum) and divided it into four equal parts. This procedure generates the thresholds used to assign categories for each country. With the 2022 data, the cutoff levels that divide the four categories of the Freedom Index are 74.88, 54.71, and 34.53.

The Prosperity Index

The Prosperity Index also takes a broad view, going beyond the measurement of pure material well-being and including additional social aspects that are necessary to talk about a prosperous society. To be sure, the choice of constitutive components for a measure of overall prosperity involves a significant degree of subjectivity, making it harder to ground on undisputed social science theory. We are not the first to construct a measure of standards of living that transcends the imperfect measure of GDP per capita, and thus we rely on previous indexes such as the Human Development Index of the United Nations, as well as our extensive discussions with experts and academics, to guide the choice of our prosperity components (see Appendix 2).

Figure 2: Prosperity Index structure

(all indicators receive equal weight)

The Prosperity Index has six components:

  • Income
  • Health
  • Education
  • Environment
  • Minority rights
  • Inequality

Adequate data is found for each of them, and each component is then rescaled so that it ranges from zero to one hundred, with higher values denoting better scores. Higher scores in the minority rights or inequality components imply better protected minority rights and greater equality, respectively. The aggregate Prosperity Index is calculated as the unweighted average of the six components.

We recognize the debatable choice of prosperity components and the simple aggregation method we use (see appendix on methodology for context). Thus, whenever possible, we present the results of our analysis not only in terms of an overall index, but also for each individual component. Moreover, we make all our data available to encourage researchers to construct alternative prosperity measures by adjusting the components and aggregation method to the one that best fits their research questions.

Income per capita is the most widely used indicator of prosperity in economic and social science research. A prosperous society is necessarily one that has escaped generalized poverty and misery (i.e., a society where the average household income can comfortably cover basic needs). Our income measure is GDP per capita in constant international dollars6, adjusted for inflation and for purchasing power across countries. Notably, economists and social scientists are aware of the shortcomings of income per capita as an indicator of well-being. In particular, income per capita does not consider distributional aspects; nonmarket activities that may be highly prevalent in less developed countries; and nonmarket externalities such as pollution. Furthermore, other social aspects such as education or health are only imperfectly correlated with income per capita. In our aim to conceptualize prosperity comprehensively, we introduce additional attributes in the Prosperity Index that complement income per capita.

Health and education are standard dimensions of an integral view of human flourishing. Having a long and healthy life, and the opportunity to acquire knowledge, are signs of a prosperous society. The Human Development Index produced by the United Nations—the most popular measure of broad human development—is composed of these three dimensions (income, health, and education), and we follow the UN’s lead by measuring health and education with the same indicators. Health is assessed by life expectancy at birth, while education is captured by the mean years of schooling for adults aged twenty-five years or more, and by expected years of schooling for children of school-entering age.

Our Prosperity Index assesses not only the level of prosperity today, but also whether it is sustainable in the future.

None of the previous three components capture distributional aspects, as all are average measures across the population. Nevertheless, a prosperous society requires that material well-being is shared among citizens and not concentrated in a small group. Given the positive correlation between income, health, and education, we decided to measure inequality in terms of income. In particular, we use the share of a country’s pretax income accruing to the top 10 percent of earners. We do not use the Gini coefficient, a very popular measure of inequality, because the most reliable and comparable data on this indicator is based on post-tax and post-transfer income, thus capturing not only market inequality but also the capacity of the state to redistribute income through fiscal policy.

The minority rights component also captures the idea of shared prosperity, as it is intended to assess the degree to which citizens in a country enjoy equal opportunity to choose their way of life and pursue human flourishing in an environment of freedom and tolerance, regardless of background. We measure respect for minorities through surveys of acceptance of religious minorities, which serves as a proxy for tolerance of minorities in general (in terms of race, gender, sexual orientation, and so on).

Finally, the Prosperity Index includes environmental quality, which is measured by the death rate from air pollution. The rationale for this component is twofold. First, the ability to live in a clean and sustainable environment is highly valued by citizens across the world, as it significantly enhances quality of life. Second, it serves as a proxy to capture nonmarket negative externalities (i.e., pollution), addressing the previously mentioned shortcoming of income per capita as an overall measure of standards of living. In this way, our Prosperity Index assesses not only the level of prosperity today, but also whether it is sustainable in the future.

After arriving at an aggregate score for each country, which ranges from zero to one hundred, we placed countries into four categories: “prosperous,” “mostly prosperous,” “mostly unprosperous,” and “unprosperous.” For consistency, we follow the same categorization method used for the Freedom Index, dividing the range of prosperity scores into four equal parts, which provides the thresholds between categories. For the 2022 data, these are set at 78.62, 64.85, and 51.08.

Results

This section reviews the findings of the Freedom and Prosperity Indexes during the 1995-2022 period, at a global, regional, and country level.

The Freedom Index

The map in figure 3 (below) depicts a visual representation of the Freedom Index scores around the world using 2022 data and the categories of free, mostly free, mostly unfree, and unfree countries. Detailed freedom scores and ranks for all countries are presented in the table in figure 3.

We also encourage researchers and anyone interested in a specific country to visit the Freedom and Prosperity Indexes website, where we have made available all our data and documentation, as well as interactive capabilities to analyze, plot, and compare scores for the Freedom and Prosperity Indexes, the legal, economic, and political subindexes, and all their components, for all countries covered over the period of 1995 to 2022.

Figure 3. Freedom Index map and ranking table

To see freedom rankings and prosperity rankings side by side, please visit our website.

Freedom around the world 

The updated Freedom Index shows that freedom varies greatly across the regions of the world. Based on the index components, Europe (and especially Western Europe) appears far and away the freest. Out of forty-five countries scoring in the “fully free” range, thirty are European. Moreover, the top ten countries in this freedom category are all in Europe. In the North American region, two nations are in the free range (the United States and Canada) and one is in the mostly free category (Mexico). The second region with the highest number in the free category is South Asia and the Pacific, with six out of eighteen economies (Australia, New Zealand, Japan, Taiwan, South Korea, and Singapore). The remaining countries in the free category are clear exceptions within their regions: Cape Verde and the Seychelles in sub-Saharan Africa; Costa Rica, Chile, Uruguay, and Barbados in South and Central America; and Israel in the MENA region.

The list of fully free countries produced by the Freedom Index is not unexpected. It mainly contains the Western world and a handful of nations that have outperformed for many years their regional peers in terms of institutional stability and quality (i.e., the extent to which these institutions are able to provide a stable, predictable, and transparent framework for economic, social, and political activities within a country).

The only nonstandard case is Singapore, an autocracy by many standards, included in the free category. This is a consequence of our comprehensive view of freedom. Our Freedom Index gives equal weight to its three components (economic, legal, and political freedom). It is therefore possible for a state to score relatively high in the overall index even if it significantly underperforms in one dimension. This is the case with Singapore, which has a low score on political freedom (it ranks one hundredth out of 164 countries) but very high scores on legal and economic freedom (ranking sixth and fifteenth, respectively). Yet, Singapore’s success may not be replicable due to its unique small size and open trade policies. The centralized government has prioritized economic and legal freedom, but there is a risk that future leaders may restrict these freedoms to protect their political power. More political freedom could provide safeguards against arbitrary changes and secure Singapore’s prosperity in the long term.

Some regions are moderately homogenous in terms of freedom. In South and Central America, most countries ranked mostly free, with Jamaica, Peru, and Trinidad and Tobago at the top of the fourteen in that category (and behind the four free countries already mentioned). Only three countries from the region are labeled as mostly unfree (El Salvador, Haiti, and Nicaragua), and just Venezuela is in the unfree camp7. And MENA countries are generally found in the unfree category, with ten countries ranked as mostly unfree and four as unfree (Iran, Libya, Yemen, and Syria). Besides Israel, only four countries in the MENA region are within the mostly free category (Tunisia, Jordan, Kuwait, and Morocco).

In our ranking, nations with available data in sub-Saharan Africa—the area with the highest number of nations (forty-six)—primarily placed in the mostly free and mostly unfree categories (twenty-one and eighteen countries, respectively). For example, Mauritius, Namibia, Botswana, and Ghana scored among the mostly free nations, while Gabon, Rwanda, Mozambique, and Uganda ranked as mostly unfree, but are close to moving into the next higher category. There are a few exceptions: two listed as fully free (Cape Verde and the Seychelles, as mentioned above); and five fully unfree (Chad, Equatorial Guinea, Sudan, South Sudan, and Eritrea)—all long-term, closed dictatorships or nations involved in civil conflict.

Asia is probably the most heterogenous continent in terms of freedom. Besides the six free countries mentioned before, there are eleven mostly free countries, ten mostly unfree, and three fully unfree countries. The two most populous countries of the world, China and India, rank 144th and 104th in the 2023 Freedom Index, respectively. Both countries obtain similar scores for legal and economic freedom, but there is a significant difference in overall freedom due to the much lower level of political freedom in China.

Global and regional trends in freedom since 1995

The extended time coverage of the new version of the Freedom and Prosperity Indexes allows us to analyze the evolution of freedom in the world since 1995. Several interesting preliminary results emerge regarding the variation of freedom and its dimensions in the last three decades. Figure 4 shows the evolution of the average Freedom Index scores for all countries, together with the legal, economic, and political dimensions. Aggregate freedom increased consistently between from 1995 and 2012 but has stagnated since then.

Our Freedom Index signals a clear decrease in freedom starting in 2020, attributable mostly to the COVID-19 pandemic. Given the strict government restrictions imposed around the world8, the magnitude of the decrease is probably understated, especially in terms of economic freedom. Our economic freedom subindex captures only indirectly the bulk of the freedom-limiting regulations implemented in most countries, given the difficulty in determining the magnitude and, most importantly, the persistence of such regulations.

Looking at the evolution of the scores for legal, economic, and political freedom, one can identify certain patterns.

First, political freedom presents a hump-shape trend in the 1995-2022 period. The increase in political freedom up until 2012 may reflect a continuation of the last part of the third wave of democratization9. Our political freedom subindex shows a decline since 2012, a phenomenon often referred to as “democratic backsliding” in the political science literature10.

Moreover, when analyzing the components of political freedom, we observe that the process of democratic decrease is mainly driven by a decline in civil and political liberties. The electoral component (free and fair elections) and the legislative constraints component are generally flat from 2010 up to the onset of the pandemic, but the deterioration in the recognition and protection of political and civil rights has dragged political freedom down in the last decade (figure 5).

Perhaps these political freedom trend lines lend support for Francis Fukuyama’s claim that the crisis of liberal democracy the world is facing is more a crisis of liberalism than a crisis of democracy11.

The economic freedom data in this study suggest a sharp and steady increase, with the global score rising around 14 percent between 1995 and 2019. This positive evolution is mainly explained by the significant increases in women’s economic freedom around the world, a component with a 25 percent weight in our economic freedom subindex, and to a lesser extent by an improvement in investment freedom (figure 6). Again, we observe a minor decline in economic freedom starting in 2019, especially in trade freedom, attributable to the pandemic. 

Legal freedom shows a trend that resembles that of political freedom, but of smaller magnitude. Regarding the components of legal freedom, we observe a mild increase in judicial independence throughout the period, together with a worrisome decline in the component capturing formal legality requirements of the legal system (clarity of the law) since 2010 (figure 7).

Interesting patterns emerge in the evolution of aggregate freedom across regions of the world. First, Europe has closed the initial gap with North America and now has similar levels of freedom. This is mostly because of freedom increases in Eastern Europe and the more pronounced dip in freedom in North America than in Europe between 2015 and 2019 (figure 8, top). The regions of Central and South America, and East Asia and the Pacific both score above the global average, but their evolution differs beginning in 1995 (figure 8, bottom). The former presents a flat trend, and average freedom in 2022 is slightly below the 1995 level; however, it was the 2019 pandemic that interrupted steady increases in freedom in East Asia and the Pacific.

Figure 8. Average freedom by region (1995-2022)

Sub-Saharan Africa shows steady progress in freedom between 1995 and 2019, with a total increase of around 11 percent on the average score of the region in the period. The freedom subindexes for the region suggest that the main drivers of this positive evolution are economic freedom and, to a lesser extent, political freedom. This is certainly good news, but sub-Saharan countries still have ample room for improvement in political and especially legal freedom (figure 9).

The MENA region offers a bleaker picture following the spark of hopes for democratization and liberty during the Arab Spring in the early 2010s. The average level of freedom in 2022 is even lower than in 2010: the level of political freedom in the region is sharply lower than before 2010; and legal freedom has significantly dropped in the last decade (figure 10).

Finally, the South and Central Asia region presents a rather volatile evolution in aggregate freedom (figure 8, right) and also its dimensions, but the overall trend is positive. The average level of freedom in the region has been above MENA’s level for much of the past six years.

The Prosperity Index

Prosperity in the world

Figure 11 (prosperity map) shows the Prosperity Index scores around the world using data through 2022 and our categorization of “prosperous,” “mostly prosperous,” “mostly unprosperous,” and “unprosperous” countries. Detailed prosperity scores and ranks in this 2023 Prosperity Index for all countries are presented in the table in figure 11.

To see freedom rankings and prosperity rankings side by side, please visit our website.

The prosperity map resembles the one for freedom, but there also are clear differences. First, all countries ranked as fully prosperous also rank as fully free, but not all free countries are in the top prosperity category. This may give support to two intuitions: freedom could be a necessary condition for prosperity—but it might not be sufficient, or at least there’s no proof that freedom instantly translates into prosperity. Put differently, freedom and its dimensions may take time to have an effect on prosperity, a hypothesis that we further explore in section 3 below.

The distribution of countries across categories is generally not surprising, but some individual countries present unexpected results. Prosperous economies are located mainly in the Western world (Europe and North America). Australia, New Zealand, Japan, South Korea, Taiwan, and Israel are outside of Western Europe and North America and are included in our prosperous category.

The mostly prosperous category includes forty-one countries, with Lithuania, Argentina, Croatia, and Poland leading the list.

The United Arab Emirates is ranked fortieth overall in terms of prosperity and enters the mostly prosperous category. Propelled by high scores on income, health, and environment, the UAE is the highest ranked mostly unfree nation and outperforms almost all mostly free countries in our analysis.

Other resource-rich countries face a similar situation, reaching higher levels of prosperity than what we would have expected, given their freedom scores (Oman, Qatar, Gabon). In general, the mostly prosperous nations are located in Eastern Europe and Latin America. Mauritius and Seychelles are the only sub-Saharan countries to reach our mostly prosperous level.

A total of eighty-nine countries (54.2 percent of the total) are categorized in the two lowest categories: fifty-nine ranked as mostly unprosperous and thirty as unprosperous. In terms of world population, the numbers are even more disappointing, as some of the most populous countries of the world (China, India, Indonesia, Nigeria, Pakistan) all fall in these two categories. In particular, 49 percent of the world population live in mostly unprosperous countries, and 29 percent in fully unprosperous nations.

Countries among the mostly unprosperous group are predominantly from the MENA and sub-Saharan Africa regions, with the latter group usually located at the bottom of the category.

Cape Verde and Georgia are the only fully free countries that do not reach the prosperous or mostly prosperous categories. Both are cases in which the initial level of prosperity was very low; even if the movement toward free institutions has been clear and sustained for a long time now, the initial level effect persists. China also is among the mostly unprosperous countries, ranking 119th overall.

Finally, a total of thirty countries are labeled as unprosperous. Most of them are in sub-Saharan Africa (twenty-two), together with Laos, Haiti, India, Pakistan, Myanmar, Syria, Afghanistan, and Yemen. Some of the worst performers in our study of prosperity are or were experiencing war and conflict (Yemen, Afghanistan, South Sudan, Syria).

Global and regional trends in prosperity since 1995

Figure 12 shows the evolution of the Prosperity Index and its components since 1995, at a global level (average across countries). It is important to note that we have data through 2022 for just one indicator of our Prosperity Index: minority rights. For the income, health, and inequality components, the last year of available data is 2021; and for environment and education, it is 201912. This is relevant for the interpretation of the trends in prosperity, as the straightlining observed in the figure in the last two to three years of the period most likely does not completely reflect the actual situation.

Notwithstanding the previous caveat, the trend in overall prosperity since 1995 is positive and sustained. The average global score has increased by ten points, an 18 percent rise from the 1995 level. The education, health, and environment components are the main drivers of the positive aggregate trend, and to a lesser extent income. The inequality component presents a flat trend, with a very mild decrease from 1995 to 2007, followed by a slow recovery to a 2022 level slightly above the one in 1995.

The most worrisome trend among the components of prosperity is that of minority rights, which has been worsening since 2012 and is now below the level in 1995. Minority rights are closely linked to democracy and political freedom more generally13, and the democratic backsliding mentioned above seems to affect this component. Moreover, as we will see below, this decrease is especially pronounced in developed countries in Europe and North America, the very birthplaces of democracy.

The evolution of prosperity and its components across regions is very heterogenous, especially when we compare Europe and North America on the one hand, with the rest of the developing and least-developed areas on the other. The reason is clear. Because developed countries started the period of study at a higher level of health, income, education, and minority rights, it is appropriate to analyze these two groups of regions separately.

Aggregate prosperity levels for Europe and North America are shown in figure 13: Europe has a steep upward trend line until 2019; North America logs a mild increase until 2016 and a slight fall in the last few years. As a result, Europe surpassed North America as the most prosperous region of the world in 2007. Since then, we have observed a growing disparity between these two regions, although the numerical discrepancy remains relatively modest when considering it as a percentage. We can further diagnose this result by looking at the components of prosperity, as well as focusing on the United States, the driver of the North American trend (see figure 14).

First, Europe has improved faster than the United States in education and health, and to some extent in income. Our data suggests that Eastern European countries are causing these movements. Second, the deterioration of minority rights is obvious in both regions since 2015, but the absolute decline is larger in the United States. Finally, while inequality shows a mainly flat trend for Europe, the United States has experienced an increase in inequality of twelve points in this component since 1995.

The advancement in prosperity among the rest of the regions of the world is shown in figure 15. All of them present positive progress in overall prosperity, but with different growth rates. Regions that started with a lower level of prosperity in 1995 (sub-Saharan Africa and South and Central Asia) have grown faster and caught up with those starting from higher levels (Central and South America and East Asia and the Pacific). The MENA region is the one that presents a slower growth rate in prosperity, especially since 2011, causing the region to diverge from the rest of the developing world. The region increased its prosperity score by 10.7 percent, compared to the global increase of 15.7 percent.

The components driving the overall increase in prosperity are also different across regions (figure 15). Sub-Saharan African countries have mainly improved in terms of environment and health, 25.7 points and 15 points, respectively. Education has grown quickly in the region, but it started from a very low initial level, so the average score on this component for the region is still much lower than for the rest of the world. In East Asia and the Pacific as well as South and Central Asia there is growth in education, health, and environment—plus remarkable growth in income per capita. The Central and South America region presents a positive trend in reducing inequality (14 percent), differentiating it from the rest of the world, that shows a negative or flat trend in this component. Finally, the MENA region has experienced clear, positive trends only in education, where the regional average doubled, and, to a lesser extent, health, while all other prosperity dimensions are mainly stagnant.

Countries with the biggest increases and declines in scores

It is interesting to see which countries have experienced the biggest changes in freedom since 1995. On the positive side, Sierra Leone, Indonesia, Gambia, Peru, Georgia, and Croatia show the biggest improvements in terms of their freedom scores, with gains of more than 25 points (figure 16). On the other hand, the freedom scores of fifty-three countries out of 164 declined since 1995. Many of them logged small negative changes and often due to restrictions imposed amid the COVID-19 pandemic in the last three years; however, other nations’ scores suggest significant deterioration in freedom including Venezuela, Nicaragua, Belarus, Turkey, Russia, and Yemen, with declines of thirteen points or more in scores (figure 16). Many of these cases—of success or failure—are analyzed in more detail in section 3 below.

Figure 16. Biggest improvers and decliners (Freedom score, 1995-2022)

Finally, figure 17 shows the evolution of the prosperity score for the countries with the largest movements across the whole period of analysis. Top performers are mainly in sub-Saharan Africa including Ethiopia, Rwanda, and Sierra Leone, all with increases of around twenty points in their prosperity score (figure 17).

The global prosperity score increased steadily and meaningfully in the period of study until the COVID-19 outbreak caused a flattening and slight decrease in this trend. Only very few countries saw an absolute decrease in their prosperity score, among them Syria, Lebanon, and Venezuela (figure 17, center).

We also identified nine countries that had a 1995 prosperity score above the global average—but a 2022 prosperity score below the global average including Brazil, Jordan, Libya, Mexico, the Philippines, and South Africa.

Figure 17. Biggest improvers and decliners (Prosperity score, 1995-2022)

Key Takeaways

The new version of the Freedom and Prosperity Indexes allows us not only to describe the evolution of freedom and prosperity across space and time but also to tackle the main question of this project, namely, the relationship between these two measures. In this section, we provide some preliminary results in terms of the contemporaneous relation between freedom and prosperity, and the most probable direction of causality. We complement our aggregate empirical analysis with qualitative assessments of specific countries that either support our main conclusions or are outliers that contradict our premises.

Overall, we find that freedom and prosperity are closely correlated, and this positive association is robust. Second, freedom tends to lead to prosperity, even if this effect is usually not instantaneous and arrives with a lag. Finally, outliers that have produced improvements in prosperity despite a lack of freedom in some dimension are exceptional (Singapore, China), and the question of whether this situation is sustainable in the long run is still open.

Prosperity is highly correlated with freedom

Figure 18 shows the relation between the scores in the Freedom Index and the Prosperity Index for all countries during the period of study. Based on a correlation coefficient of 0.80, we conclude that freedom and prosperity are highly correlated. Countries with higher levels of freedom also have higher levels of prosperity, and those with low levels of freedom have relatively low levels of prosperity. The regression line depicted in figure 18 yields a coefficient of 0.58, which implies that an additional point in the Freedom Index score is associated with more than half a point higher score on prosperity. Furthermore, the R^2 statistic of this univariate regression implies that 63 percent of the variance in prosperity can be explained by differences in freedom. Given our descriptive analysis of section 2 above, this is not a surprise, as the results of figure 18 resemble very closely the overlap between freedom and prosperity visually apparent in the freedom and prosperity maps.

A question raised by the conclusion of a close relationship between freedom and prosperity comes from the fact that we are pooling together countries from all continents, and thus disregarding significant differences among regions. However, a strong positive association between freedom and prosperity scores is also present within regions. The correlation coefficient is above 0.6 for all regions, except South and Central Asia (0.41), which is probably due to the small number of countries (twelve) in that region. So across all regions, we observe that countries with higher freedom scores also have higher levels of prosperity.

Freedom tends to lead to prosperity

The enhanced time coverage of the 2023 version of the Freedom and Prosperity Indexes permits us to go beyond the contemporaneous correlation identified in the previous section and study the direction of causality between freedom and prosperity.

In a nutshell, freedom and prosperity are closely associated, but which causes which? Does freedom today lead to prosperity tomorrow or is the demand for freedom a consequence of societies becoming more prosperous? To be sure, this is a question that has received extensive attention from economists and political scientists, and is still a matter of heated debates14. We hope that our indexes will be useful to researchers exploring this crucial issue. In this section, we provide some preliminary evidence that we think indicates that freedom tends to lead to prosperity.

One can start by noting that freedom in 1995, at the start of the sample period, is positively correlated with prosperity in 2022, at the end of the sample period. This association is statistically significant at the one percent level. The time lapse between the explanatory variable (freedom) and the dependent variable (prosperity) is sufficiently long to ensure that no feedback loop—from higher prosperity to increased freedom—is responsible for the result (figure 19). When running the reverse regression (freedom in 2022 on prosperity in 1995), the R2 statistic is lower, at 0.553, which provides some support for the argument that the direction of causality runs from freedom to prosperity.

We look for outliers in the data to see whether some countries defy this long-term pattern. Yemen is such a country: in recent years, it has become a failed state and regional powers vie for a dominant positions at the expense of the prosperity of the population. These dynamics are consistent with Yemen’s relative standing: more freedom and less prosperity relative to the sample trend line. In essence, past freedoms were insufficient to lead to prosperity in 2022—as the civil war (engulfing the country since 2014) undermined it.

The case of Yemen demonstrates a general pattern: countries in civil war or countries involved in other recent conflicts tend to be below the trend line. Examples include Burkina Faso (2015-16 conflict), Chad (2005-2010), Mali (2012-present), and South Sudan (2013-2017).

At the other end of the spectrum, the United Arab Emirates stands out as having a high level of prosperity in 2022 and fewer freedoms at the start of the sample period. This seeming discrepancy can be explained by the able management of natural resources.

To further explore causality, our analysis looks at the effect of changes in freedom on the changes in prosperity during the 1995-2022 period of study. The intuition we test here is that countries that increased their freedoms the most should also be the countries where prosperity increased the most. This approach removes the effect of such constant determinants of prosperity as natural resource abundance, geography, culture, and institutional quality. We find that the evolutions in prosperity are affected by changes in freedom (figure 20).

Our analysis applies a stricter test of causality by eliminating from our analysis all countries with little change in freedom over the sample period: in this way we restrict the causality link only to true “movers” on the freedom spectrum. We only included in our analysis countries whose freedom score increased or decreased by at least five points between 1995 and 2022. When this stricter analysis is performed, there is again evidence for the causality running from freedom to prosperity.

At the bottom left corner, decreased freedoms in Venezuela during the regimes of Hugo Chavez and Nicolas Maduro, starting in 1999 and continuing to the present day, have resulted in the largest drop in prosperity anywhere in the world—except for Syria, suffering under the tyranny of the Assad family (Hafez and then, beginning in 2000, his son Bashar). Belarus under Alyaksandr Lukashenka and Russia under Vladimir Putin are in this category as well.

At the other end of the spectrum, Rwanda and Sierra Leone are examples of countries with rapid positive changes in their total freedom score that have also experienced increased prosperity, albeit from initially low levels.

To be sure, changes in freedom do not immediately bring about changes in prosperity. The lag depends on various place-specific factors, and also factors related to the condition of the global economy. One can, for example, speculate that the increased levels of freedom in Taiwan have not yet resulted in a commensurate increase in prosperity due to the effect of the COVID-19 pandemic that severely limited global trade and investment. Conversely, the limits to freedoms in Mali may yet reduce prosperity as the effects of the protracted civil war are now manifesting themselves in reduced social and economic indicators.

The relationship between changes in freedom and change in prosperity is disrupted, however, by civil conflict or war if there is a shift toward dictatorship and closed economic policies. Over time, such shifts will become evident in prosperity measures. This is why the explanatory power of freedom on prosperity is around 60 percent (as measured by the regression analysis behind figure 20). The remainder of the explanation lies in sudden shocks such as war and civil conflict, the rise of dictatorships, and the advent of global crises, be they economic, financial, or healthcare in nature.

Based on the data, one can also speculate that the imperfect relation between a change in freedom and the change in prosperity is asymmetric. Losses in freedom result in swift losses in prosperity, as illustrated by Yemen, Venezuela, and Syria. In contrast, improvements in freedom take a longer time to result in improved prosperity. In other words, it takes a longer time to build than to destroy. The manifestation of this pattern is that the largest number of countries in figure 20 are in the bottom right quadrant, with significant changes in freedom, but relatively lower increases in prosperity than what the trend line would suggest.

Autocracies tend to be unprosperous

Some argue that a ruler with complete control over a country can bring stability, make needed economic and social changes, and increase prosperity. But such examples in the period we studied are rare. In societies without freedom, decisions are made by those in power rather than through fair institutions. Sometimes these decisions may benefit the economy in the short term by directing resources to more productive areas. But without increases in freedom, these authoritarian leaders are likely to harm in the long term any progress they make in the short term. Our data support the view that free markets are a better way to develop the economy than the decisions made by one person or a central group.

Today, no countries ranked unfree or mostly unfree are in the prosperous category. Only ten of the forty-five mostly unfree countries managed to make it to the mostly prosperous category and none are in the prosperous category.

Former European republics of the USSR

A great natural experiment that illustrates the claim that freedom tends to lead to prosperity is provided by developments in the former European Soviet republics. At the time of the break-up of the USSR, Russia, Ukraine, Belarus, Moldova, Lithuania, Estonia, and Lithuania all had the same (very limited) level of freedom.

Our data shows that by 1995 (the beginning of our period of study), the Baltic republics made a clearer choice for freedom than the other countries in the group. Throughout our sample period, this gap in the data only increased, with the Baltic states (and Moldova after 2009) increasing their levels of freedom, while the scores of Russia and Belarus trailed them by more than fifteen points.

The evolution of the prosperity scores resembles this divergence in freedom: Latvia, for example, scored only 2.5 points above Russia in 1995 but was almost fifteen points higher by 2022 (figure 21).

Peru and Venezuela

Another interesting comparison involves Peru and Venezuela. In 1995, Venezuela outperformed Peru on the freedom measure by almost twenty points; now, however, Peru is nearly forty points ahead, after making a clear turn toward freedom around the year 2000. Venezuela, meanwhile, shows the largest fall on the freedom scale in our sample—shedding around thirty points.

The effect on prosperity for each country is equally astonishing. Despite the higher initial level of prosperity of Venezuela in 1995 and the effect of high oil revenue in the early 2000s, the country is now below its initial prosperity level of 1995. In contrast, Peru has seen a clear increase in prosperity, and now significantly surpasses Venezuela (figure 22).

Burundi and Rwanda

Our final country comparison comes from sub-Saharan Africa. Rwanda and Burundi are among the biggest movers in terms of freedom. Rwanda’s freedom score rose by more than twenty points in the 1995-2022 period, following a civil war in 1994—the legal and economic freedom components drove most of the increase. In contrast, Burundi’s freedom score dwindled by more than four points (about 10 percent). In terms of prosperity, Rwanda has clearly outperformed the global average, with a rise of nearly twenty points and surpassed Burundi by the middle of our sample period (figure 23).

Figure 23. Side-by-side charts of Burundi and Rwanda

Rwanda is but one example of a nation that chose the path to economic and legal freedom while not simultaneously increasing its political freedom. South Korea and Taiwan followed a similar progression in the 1960s and 1970s, first scoring gains in economic and legal freedom, and only later adding political freedom. Today, Singapore and the United Arab Emirates have high scores in economic and legal freedom, but lower scores in political freedom.

Should political freedom take too long to evolve, however, the gains from economic and legal reforms may be reversed. Russia in the 1990s and 2000s is a prime example of such a reversal. And China seems to have been following the same path in recent years: economic freedom and legal freedom have remained stable in our sample, but political freedom has declined by 26 percent since Xi Jinping took office in 2013. Prosperity had increased 17 percent from 1995 to 2013, but has since plateaued.

Conclusions and policy recommendations

The preliminary data and analysis in this report strengthen the case for liberal democracy, understood as the combination of strong rule of law, democracy, and a market economy, as the surest path to overall prosperity. All truly prosperous countries of the world present high levels of freedom in all three dimensions.

Furthermore, freedom is neither the “Western recipe” for prosperity nor just one among many avenues for success. Within regions, freer countries are outperforming their peers and reaching higher levels of prosperity. Reformers in the least developed countries, as well as international organizations in the development community, should be more confident than ever in promoting a development model based on freedom.

The argument that outlier cases contradict the general conclusion that freedom is necessary for prosperity should be taken with caution, for several reasons.

First, while there are clear exceptions, they are usually explained by very specific country characteristics that are extremely difficult to replicate elsewhere. Instead, the comprehensive freedom model has proved its benefit in different regions and periods of time.

Those willing to advocate and put in place institutions and policies that promote freedom must understand that the positive effects of freedom on prosperity are not instantaneous. It takes time to establish and consolidate free institutions, and the effects on prosperity accumulate in the medium to long run.

Second, relatively unfree countries that have experienced above average increases in prosperity in the last few decades are still far below free countries. For example, despite the strong economic growth of China since the 1980s, its level of prosperity is still just around 60 percent of that of the freest and most prosperous countries of the world. Only time will tell whether China can continue to catch up with the developed world without a significant increase in political freedom, but the development slowdown observed in recent years casts serious doubts on this hypothesis.

Third, countries that have increased their prosperity based on an unbalanced combination of freedom (especially a lack of political freedom) tend to underperform and deteriorate in terms of the more inclusive dimensions of prosperity. Equality, minority rights protection, and generalized education typically suffer under politically “unfree” regimes.

If sustained improvements in all three dimensions of freedom have proved to generate overall prosperity, our results also indicate that the erosion of institutions can have devastating effects. Sustained regressive processes in legal, political, and/or economic freedom can destruct prosperity as much as outright war and civil conflict, as the relative performances of Venezuela and Syria show. Therefore, free and prosperous countries in the developed world should not underestimate the significance of losses in civil and political liberties, both due to their intrinsic undesirability and their potential to diminish prosperity in the future

The Freedom and Prosperity Indexes represent a useful tool for both agents of change and reformers in countries around the world, and for international development organizations. The indexes provide clear benchmarks to identify areas of improvement and a template to design and implement specific and tailored country reforms.

Importantly, those willing to advocate and put in place institutions and policies that promote freedom must understand that the positive effects of freedom on prosperity are not instantaneous. It takes time to establish and consolidate free institutions, and the effects on prosperity accumulate in the medium to long run. Moreover, reforms toward freedom often generate increased uncertainty and costs in the short run. Long-term prosperity requires a commitment to stay the course.

In this sense, international organizations and the international donor community should play a role in smoothing the transition toward free institutions, cushioning the short-term costs of pro-freedom reforms, and supporting agents of change within least developed countries with the vision and commitment to place their nations on the path of freedom.

Appendix 1: Freedom and Prosperity Indexes Methodology

The Freedom and Prosperity Indexes are a creation of the Atlantic Council’s Freedom and Prosperity Center. The center’s mission is to increase the well-being of people everywhere—and especially of the poor and marginalized in developing countries—through unbiased, data-based research on the relationship between freedom and prosperity.

The center’s work is both theoretical and practical. It aims to produce research regarding the best path to development, but also to apply the conclusions of this research through reform proposals, education, and an active media presence around the world. It is in this spirit that we created the Freedom and Prosperity Indexes.

They are two separate indexes that rank 164 countries around the world according to their levels of freedom and prosperity. All index measurements are weighted equally and the score for each index is simply the average of its component parts. Scores range between zero and one hundred, with higher values indicating more freedom or prosperity. The indexes are constructed using publicly available datasets produced by other prominent organizations and international institutions.

The Freedom Index ranks countries according to the equally weighted average of three subindexes: economic freedom, political freedom, and legal freedom. Each country’s score ranges between zero and one hundred, with higher values indicating more freedom.

Countries are placed into four categories based on their scores: “free,” “mostly free,” “mostly unfree,” and “unfree.” For each given year, we use the range of scores for all countries in the sample (maximum score minus minimum score) and divide it into four equal parts. This procedure generates the thresholds used to assign categories for each country. For the year 2022, the cutoff levels of the freedom score dividing the four categories are 74.88, 54.71, and 34.53.

The Prosperity Index ranks countries according to the equally weighted average of six indicators: income, health, education, environment, minority rights, and inequality. The index is scaled so that a country’s score ranges between zero and one hundred, with higher values indicating more prosperity.

The definition of a prosperous society is the subject of an ongoing theoretical debate that involves various perspectives from fields such as economics, sociology, political science, and philosophy. One view is that prosperity is characterized by high levels of economic growth and material wealth, as measured by metrics like GDP per capita. This approach emphasizes the importance of policies that promote free markets, investment, and innovation to achieve sustained prosperity. However, critics of this view argue that a narrow focus on economic growth can lead to negative consequences for society, including income inequality, environmental degradation, and social exclusion.

Another perspective on prosperity suggests a more holistic approach that considers social cohesion, environmental sustainability, and human well-being as key components of a prosperous society. Proponents of this view argue that policies should be designed to promote these outcomes, in addition to economic growth and material wealth.

There is also a debate about the contested and value-laden nature of the concept of prosperity, with some arguing that different societies may have different ideas about what constitutes prosperity and that these ideas may evolve over time.

Here we took the holistic approach and captured the most commonly accepted components in the literature and for which data was available. We decided to give equal weight to all to remain neutral.

Countries are placed into four categories based on their scores: “prosperous,” “mostly prosperous,” “mostly unprosperous,” and “unprosperous.” For each given year, we use the range of scores for all countries in the sample (maximum score minus minimum score) and divide it into four equal parts. This procedure generates the thresholds used to assign categories for each country. For the year 2022, the cutoff levels of the prosperity score dividing the four categories are set at 78.62, 64.85, and 51.08.

The indexes use data produced by the Fraser Institute, the Global Burden of Disease Collaborative Network, the Heritage Foundation, the United Nations, the Varieties of Democracy (V-Dem) Institute, the World Bank, World Economics, and the World Inequality Database. In the few exceptional cases in which we do not have data for a variable from our preferred source, we use alternative sources of data. These instances are listed in each relevant section.

The Freedom and Prosperity Indexes cover the period of 1995 to 2022. For the most recent year, the indexes use the most recent data available. For the Freedom Index, most of these data are from 2022. For the Prosperity Index, most of these data are from 2021. If a country-year observation is missing for a given variable, we use the value from the closest preceding year.

Besides the necessary scaling to ensure that all components lie in the same range (zero to one hundred), we do not make any additional transformations except for gross domestic product (GDP) per capita, which is linearized before scaling by taking the natural logarithm.

Freedom Index

The Freedom Index has three subindexes that measure economic freedom, political freedom, and legal freedom, respectively. Each subindex is comprised of multiple indicators. The indicators used to construct each subindex are listed below, together with the original sources of data and analyses.

I. Economic Freedom

Economic freedom refers to an economic system that upholds the rights of all businesses and entrepreneurs. Economic freedom is measured as an equally weighted average of four indicators: property rights, trade freedom, investment freedom, and women’s economic freedom.

a. Property Rights
The property rights indicator assesses the extent to which a country’s legal framework allows individuals to acquire, hold, and utilize private property, secured by clear laws that the government enforces. It provides a quantifiable measure of the degree to which a country’s laws protect private property rights and the extent to which those laws are respected.

Source of data: Fraser Institute, Component 2C Protection of Property Rights, Economic Freedom. For details on the methodology of Component 2C, see “Appendix Explanatory Notes and Data Sources,” Fraser Institute, accessed May 4, 2023.

b. Trade Freedom
The trade freedom indicator covers a diverse range of trade restrictions, encompassing tariffs, quotas, hidden administrative restraints, and regulations on exchange rates and capital mobility. A high score reflects a nation that maintains low tariffs, enforces streamlined and effective customs clearance processes, has a freely convertible currency, and imposes minimal restrictions on the movement of both physical and human capital.

Source of data: Fraser Institute, Component 4 Freedom to Trade Internationally, Economic Freedom of the World. For details, see “Appendix Explanatory Notes and Data Sources.”

c. Investment Freedom
The investment freedom indicator assesses several regulatory limitations that are usually enforced on investments. Points are subtracted from a country’s investment regime’s perfect score of one hundred for each restriction present. An ideal score indicates a country with unrestricted flow of investment capital, allowing individuals and firms to transfer their resources freely into and out of specific activities, both within the country and across its borders.

Source of data: Heritage Foundation, Index of Economic Freedom. See “Methodology,” Heritage Foundation, accessed May 4, 2023.

d. Women’s Economic Freedom
The women’s economic freedom indicator attempts to capture inequality in legislation between men and women throughout the duration of a woman’s working life, from the time she can enter the labor force through retirement. It is the average of four equally weighted components: mobility (including women’s agency and freedom of movement), pay, entrepreneurship, and assets. Each component is measured on a scale of zero to one hundred, with higher values representing more equality.

Sources of data: World Bank indicators on mobility, pay, entrepreneurship, and assets, Women Business and the Law. For details, see World Bank.

II. Political Freedom

Political freedom measures the institutional framework for the selection of those holding executive political power and the limits and controls imposed on exercising this power. It is a concept that closely resembles the ideals of democracy and individual rights. Political freedom is measured as an equally weighted average of the following four indicators: elections, civil liberties, political rights, and legislative constraints on the executive.

a. Elections
The elections indicator captures the electoral core of democracy, that is, whether political leaders are chosen by the citizenry in open, clean, and fair elections with ample suffrage. It is an equally weighted average of four components: alternative sources of information, share of population with suffrage, clean elections, and elected officials.

Sources of data: V-Dem dataset including Alternative Sources of Information Index (v2xme_altinf), share of population with suffrage indicator (v2x_suffr), Clean Elections Index (v2xel_frefair), and Elected Officials Index (v2x_elecof). For details on the methodology of each component, see “V-Dem Codebook V13,” V-Dem website, accessed May 4, 2023.

b. Civil Liberties
The civil liberties indicator includes an array of individual rights in the liberal tradition (i.e., criminal procedural rights, absence of torture, freedom of movement, etc.) that limit the scope of governmental action guaranteeing an area of individual autonomy and freedom in personal affairs. It is an equally weighted average of two components: private liberties and physical violence.

Sources of data: V-Dem dataset including private liberties indicators (simple average of v2xcl_slave, v2clfmove, v2xcl_dmove, v2csrlgrep) and Physical Violence Index (v2x_clphy).

c. Political Rights
The political rights indicator encompasses individual rights directly linked to the democratic political process, such as freedom of expression or association.

Source of data: V-Dem dataset, Political Civil Liberties Index (v2x_clpol).

d. Legislative Constraints on the Executive
The legislative constraints on the executive indicator evaluates the level of control the democratically elected legislative branch has on the executive’s exercise of power.

Source of data: V-Dem dataset, Legislative Constraints on the Executive Index (v2xlg_legcon).

III. Legal Freedom

Legal freedom measures the degree to which a country abides by the rule of law, has a legal system that fairly protects property and contract rights, and prevents corruption and the arbitrary abuse of power. Legal freedom is measured as the equally weighted average of five indicators: clarity of the law, judicial independence and effectiveness, bureaucracy and corruption, security, and informality.

a. Clarity of the Law
The clarity of the law indicator measures the basic formal requirements of the legal system, in particular if laws are general, clear, public, noncontradictory, consistent, and are predictably enforced.

Source of data: V-Dem dataset, Transparent Laws with Predictable Enforcement Index (v2cltrnslw).

b. Judicial Independence and Effectiveness
The judicial independence and effectiveness indicator measures the strength of an efficient and fair judicial system, which ensures that laws are fully respected and that any violations are met with appropriate legal action. It is an equally weighted average of two components: Judicial Constraints on the Executive Index, and independent and accessible justice components.

Sources of data: V-Dem dataset including Judicial Constraints on the Executive Index (v2x_jucon), and independent and accessible justice data (simple average of v2xcl_acjst, v2juaccnt, v2jureview, v2jupurge, v2jupoatck).

c. Bureaucracy and Corruption
The indicator on bureaucracy and corruption measures the degree to which government officials are subject to and comply with the law. It is an equally weighted average of two components: government effectiveness and control of corruption.

Sources of data: World Bank, Worldwide Governance Indicators (WGI) for government effectiveness and control of corruption. See World Bank WGI website, accessed May 4, 2023.

d. Security
The security indicator measures whether the citizenry generally observes the country’s legal norms and regulations. It is based on perceptions of the likelihood of political instability or violence driven by political motives, such as terrorism.

Sources data: World Bank, Worldwide Governance Indicators for political stability and absence of violence/terrorism.

e. Informality
The informality indicator measures informal economic activity. Data for this indicator is expressed as a percentage of GDP made up by the informal economy. To convert to a scale of zero to one hundred, we subtract that value from the perfect score of one hundred. High scores represent less informality.

Sources of data: The simple average of the World Bank’s Dynamic General Equilibrium model-based estimates of informal output and the World Economics Quarterly Informal Economy Survey.

Prosperity Index

The Prosperity index attempts to capture both the average level of prosperity, through the level of purchasing power and human capital that an average citizen displays, and shared prosperity, through measures of environment quality as well as income inequality and the well-being of minority group. Countries are scored and ranked according to the equally weighted average of six indicators. The index scores are indicated on a scale from zero to one hundred, where zero represents the worst performance in the sample and one hundred the best. The indicators are listed below.

I. Income
The income indicator is measured according to GDP per capita, expressed in constant 2017 US dollars and adjusted for purchasing power parity (PPP). The original data is linearized before scaling by taking the natural logarithm. Higher scores indicate greater GDP per capita.

Sources of data: “GDP per capita, PPP, constant 2017 international $,” World Bank; for data for Eritrea, South Sudan, Venezuela, and Yemen, see the IMF’s “World Economic Outlook” databases; for data for Syria, see Penn World Table; and for data for Afghanistan and Taiwan see World Economics.

II. Environment
The environment indicator is measured through death rates from air pollution. Death rates are measured as the number of deaths per 100,000 people from both outdoor and indoor air pollution. Rates are age-standardized, meaning they assume a constant age structure of the population to allow for comparisons between countries and over time. Higher scores indicate fewer deaths.

Sources of data: Institute for Health Metrics and Evaluation, 2019 Global Burden of Disease study.

III. Minority Rights
The minority rights indicator is measured through surveys on the acceptance of religious minorities. The level of acceptance of religious minorities is used as a proxy for the acceptance of minorities in general. This indicator specifies the extent to which individuals and groups have the right to choose a religion, change their religion, and practice that religion in private or in public as well as to proselytize peacefully without being subject to restrictions by public authorities.

Source of data: V-Dem dataset, religious rights indicator (v2clrelig).

IV. Health
The health indicator is measured through life expectancy. The measurement of life expectancy is expressed in years that a newborn infant would be expected to live if the prevailing patterns of mortality at the time of birth were to stay the same throughout the individual’s life.

Source of data: United Nations, Department of Economic and Social Affairs, Population Division, “World Population Prospects 2022: Data Sources,” UN DESA/POP/2022/DC/NO. 9, 2022.

V. Education
The education indicator is measured through both expected years of schooling and mean years of schooling. Both values are multiplied, and the result is converted to a scale of zero to one hundred.

Source of data: United Nations Human Development Index.

VI. Inequality
The inequality indicator measures the equal distribution of income across the population. It is measured through the share of a country’s pretax income accrued to the top 10 percent of earners. Higher scores indicate lower inequality.

Source of data: World Inequality Database, Top 10 Percent Share of Pretax National Income.

Limitations

The Freedom and Prosperity Indexes methodology is designed to be an easily replicable way to benchmark specific characteristics. But it also has limitations that should be understood.

Ensuring comparability of the data across a global set of countries is a central consideration. When selecting sources to be included in the indexes, coverage has been a determining factor. In the rare case of missing data for a certain year, we have used data from the closest precedent year as a replacement.

Data were collected over the past year, using the most recent information available. They might not reflect the latest political or economic developments. These indexes should not necessarily be taken as an accurate reflection of the most recent current events.

We will, however, update the indexes over time to capture real-world changes on an annual basis. We did our best to collect the most reliable information available. The objective of these indexes is to provide standardized measures that can be applied to every country. One might argue that the methodology or the data collected are irrelevant to certain types of political situations or specific countries. That might be the case in some instances, but rarely so. Moreover, there is an inherent tension between generalizable and specific knowledge. In this study, we self-consciously opt for the former. We encourage other researchers to explain how our indexes illuminate or obscure country-specific dynamics.

Appendix 2: List of participants to the 2023 Freedom and Prosperity Research Conference

Authors and technical advisers

About the authors

Technical advisers

Acknowledgements

We are grateful for the contribution of Ben Powell, PhD, a professor at Texas Tech University and a Director of the Free Market Institute, and of Yomna Gaafar.

The Freedom and Prosperity Indexes are a creation of the Atlantic Council’s Freedom and Prosperity Center. The center’s mission is to increase the well-being of people everywhere—and especially of the poor and marginalized in developing countries—through unbiased, data-based research on the relationship between freedom and prosperity.

1    This situation mainly applies to GDP per capita data for seven economies for which World Bank data, our preferred source, are unavailable. We thus obtain from data series from alternative sources such as the International Monetary Fund’s World Economic Outlook Database (for Eritrea, South Sudan, Venezuela, and Yemen), the Penn World Tables (Syria), and World Economics data (Afghanistan and Taiwan).
2    For discussions on the different conceptualizations of the rule of law, see J. Waldron, “Is the Rule of Law an Essentially Contested Concept (in Florida)?,” Law and Philosophy 21, no. 2 (2002), 137–164; B. Z. Tamanaha, On the Rule of Law: History, Politics, Theory (Cambridge, United Kingdom: Cambridge University Press, 2004); or T. Bingham, The Rule of Law (London: Allen Lane, 2010).
3    L. L. Fuller, The Morality of Law: Revised Edition (New Haven, Connecticut: Yale University Press, 1969); J. Raz, The Authority of Law: Essays on Law and Morality (Oxford, UK: Oxford University Press, 1979); and J. Finnis, Natural Law and Natural Rights (Oxford: Clarendon Press, 1980).
4    B. Z. Tamanaha, “The History and Elements of the Rule of Law,” Singapore Journal of Legal Studies (2012): 232–247.
5    R. A. Dahl, Polyarchy: Participation and Opposition (New Haven: Yale University Press, 1971).
6    An international dollar in a cited country would buy a comparable amount of goods and services as a US dollar would in the United States, per the World Bank.
7    Cuba is not included in the sample due to a lack of reliable data for most of the variables used to construct our indexes. North Korea, another closed dictatorship, is also excluded for the same reason.
8    Some authors argue that the reduction in economic freedom due to COVID-19 regulations is far larger than what the Freedom Index shows. See, for example, Vincent Miozzi and Benjamin Powell, “Measuring Economic Freedom during the COVID-19 Pandemic,” Journal of Institutional Economics, Free Market Institute Research Paper No. 4212755, Social Science Research Network, last revised November 25, 2022, http://dx.doi.org/10.2139/ssrn.4212755.
9    See Samuel P. Huntington,The Third Wave: Democratization in the Late Twentieth Century (Norman, Oklahoma: University of Oklahoma Press, 1991.)
10    See Anna Lührmann and Staffan I. Lindberg, “A Third Wave of Autocratization Is Here: What Is New About It?,” Democratization 26, no. 7 (2019): 1095–1113; and/or L. Diamond, “Facing Up to the Democratic Recession,” Journal of Democracy 26, no. 1 (2015): 141–155.
11    See Francis Fukuyama, Political Order and Political DecayFrom the Industrial Revolution to the Globalization of Democracy (New York: Farrar, Straus and Giroux, 2014); and Francis Fukuyama, Liberalism and Its Discontents (Farrar, Straus and Giroux, 2022).
12    Data for education are obtained from the United Human Development Index (HDI). While this source provides data up to 2021, a vast majority of the national statistical offices on which the UN relies do not seem to have updated their estimates since 2019, and thus the education scores are flat for almost all countries since then.
13    See, for example, Iris Marion Young, Inclusion and Democracy, 2002; Francis Fukuyama, The Origins of Political Order, 2011; and Arend Lijphart, Democracy in Plural Societies: A Comparative Exploration, 1977.
14    See Daron Acemoglu and James A. Robinson, The Narrow Corridor: States, Societies, and the Fate of Liberty (New York: Penguin Press, 2019); Daron Acemoglu et al., “The Economic Consequences of Democracy and Dictatorship,” Journal of Political Economy 127, no. 5 (2019): 2431–2485; Esther Duflo and Abhijit V. Banerjee, Good Economics for Hard Times: Better Answers to Our Biggest Problems (New York: PublicAffairs, 2019); Francis Fukuyama, The End of History and the Last Man (New York: Free Press, 1992); Marek Hanusch and Philip Keefer, “The Impact of Economic Freedom on Corruption: Different Patterns for Rich and Poor Countries,” World Development 78 (2016): 308–323; Thomas Piketty, Capital in the Twenty-First Century, trans. Arthur Goldhammer (Cambridge, Massachusetts: Belknap Press imprint, Harvard University Press, 2014); Adam Przeworski, Democracy and Development: Political Institutions and Well-Being in the World, 1950-1990 (Cambridge, UK: Cambridge University Press, 2000); and Joseph E. Stiglitz, “Does Economic Freedom Really Cause Good Economic Outcomes?,” Challenge 56, no. 6 (2013): 53–69.

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State of the Order: Assessing May 2023 https://www.atlanticcouncil.org/blogs/state-of-the-order-assessing-may-2023/ Tue, 13 Jun 2023 14:31:25 +0000 https://www.atlanticcouncil.org/?p=654364 The State of the Order breaks down the month's most important events impacting the democratic world order.

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Reshaping the order

This month’s topline events

G7 Unites on China. At a G7 summit meeting in Hiroshima, Japan, President Joe Biden and other democratic leaders came together on China, pledging to “derisk” without “decoupling” from China’s economy and agreeing on a coordinating mechanism to counter economic coercion and an initiative to diversify supply chains. The G7 also called out Beijing’s militancy in the Indo-Pacific and political interference in democracies, while making clear it was prepared to “build constructive and stable relations” with China. With European allies eager to calm tensions, Biden also indicated he expected a thaw in relations with Beijing, as US officials began a new round of bilateral meetings with their Chinese counterparts.

  • Shaping the order. The summit’s success in projecting a common front on China could set the table for meaningful policy coordination between the US and its allies, particularly on economic issues. The prospects of a more unified approach appear to have garnered concern in Beijing, which summoned Japan’s ambassador to rebuke the G7’s effort to “smear and attack China.” But as highlighted by French President Emmanuel Macron’s recent visit to Beijing, the US and its allies still have a ways to go to coordinate efforts on engaging with the world’s second largest economy.
  • Hitting home. America’s economy will be more secure over time if the US and its allies are able to reduce dependence on Chinese products in critical industries and limit Beijing’s ability to engage in economic coercion.
  • What to do. Building on the momentum generated by the summit, the Biden administration should seek to formulate a common allied strategy for how to deal with China over the longer term.

Ukraine Gets F-16’s. With Ukrainian president Volodymyr Zelensky traveling to Japan to join the G7 leaders summit, President Biden indicated that the US had agreed to allow allies to deliver US-built F-16 fighter planes to Ukraine and will participate in a joint effort to train Ukrainian pilots. The move comes as Russian forces appeared to take full control of Bakhmut, ending a monthslong battle for the eastern city and constituting Russia’s first battlefield victory in nearly a year. But the success may be fleeting, as Ukraine prepared for the launch of a major counteroffensive operation.

  • Shaping the order. Biden’s decision on F-16’s marks another major shift on weapons support that could substantially bolster the ability of Ukrainian forces to push back Russian forces, though it will be several months before Ukrainian pilots will be able to use the planes in combat. More broadly, Zelensky’s appearance at the G7 summit served as a further demonstration of democratic solidarity and an indicator for how significantly relations with Russia – once a member of the G7 (then the G8) – have deteriorated.
  • Hitting home. Americans will be safer if Ukraine succeeds in standing up to Russia’s aggression and flagrant assault on its democratic neighbor.
  • What to do. The Biden administration should work with allies to expedite the training of Ukrainian pilots and facilitate the delivery of the F-16’s, while also reconsidering its position on providing ATACMS, the longer range missile system that could also bolster Ukraine’s ability to succeed.

Arab League Welcomes Assad.  After years of diplomatic isolation following his use of chemical weapons and commission of widescale atrocities against civilians to crush a popular uprising, Syrian President Bashar al-Assad was warmly received by Saudi crown prince Mohammed bin Sultan and other Arab leaders at an Arab League Summit in Jeddah. The move comes as Assad continues to consolidate his grip on power, while Saudi Arabia and other Gulf states enter a rapprochement with Iran.

  • Shaping the order. The Arab League’s normalization of relations with Assad – a murderous dictator responsible for the deaths of thousands of innocent civilians – is a demoralizing setback for efforts to advance a rules-based, democratic order. Assad’s resurrection appears to be part of a global trend of welcoming authoritarian leaders back from the cold, as Venezuelan dictator Nicolas Maduro was invited by Brazil to participate in a South American leaders summit, sending the message to autocrats that violent repression ultimately pays dividends.
  • Hitting home. The rehabilitation of autocrats like Assad undermines American values and US interests in a stable and prosperous world order.
  • What to do. The US and its democratic allies should stand together in opposing Assad’s reintegration into the international community, and maintain sanctions and other efforts to ensure that Assad is ultimately held accountable for his actions.

Quote of the Month

“Russia’s aggression against Ukraine… has shaken the international order… [Japan] has a mission to uphold the free and open international order based on the rule of law, and to demonstrate to the world its determination to fully defend peace and prosperity.”
– Japanese Prime Minister Kishida, speaking at the G7 Summit in Hiroshima, May 21, 2023

State of the Order this month: Unchanged

Assessing the five core pillars of the democratic world order    

Democracy ()

  • Syrian President Bashar al-Assad was given a warm welcome at an Arab League Summit in Jeddah, after years of diplomatic isolation following his use of chemical weapons and commission of widescale atrocities against civilians.
  • After facing his biggest election challenge in over two decades, Turkish president Recep Tayyip Erdogan won re-election amidst a campaign process marred by pro-government media bias, limits on free speech, and other obstacles on the opposition.
  • Venezuela’s authoritarian leader Nicolas Maduro was invited to participate in a summit of South American leaders in Brazil, as Brazilin president Lula de Silva joined Maduro in criticizing US sanctions against Venezuela.
  • Overall, the democracy pillar was weakened.

Security (↔)

  • President Biden agreed to allow NATO allies to deliver US-built F-16 fighter planes to Ukraine, while pledging US participation in a joint effort to train Ukrainian pilots.
  • The US signed a new defense cooperation agreement with Papua New Guinea – the largest island nation in the Pacific – that will deepen security ties between the two nations, as Washington seeks to counter China’s rising influence in the region.
  • In a show of solidarity, Chinese President Xi Jinping told visiting Russian Prime Minister Mikhail Mishustin that Beijing will maintain “firm support” for Moscow’s “core interest.”
  • The US accused South Africa of secretly supplying arms to Russia, despite the country’s professed neutrality on the war in Ukraine – a claim South African leaders initially denied and then promised to investigate.
  • Russia and Belarus signed an agreement formalizing the deployment of Russian tactical nuclear weapons in Belarus, a move that appears intended as a warning to the West as it steps up support for Ukraine.
  • On balance, the security pillar was unchanged.

Trade ()

  • The US and its G7 partners agreed to establish a new coordinating mechanism to counter economic coercion and launch a new initiative to diversify supply chains away from China, while pledging to “derisk” without “decoupling” from China’s economy.
  • The US and Taiwan reached a trade and investment agreement in an effort to liberalize and deepen economic ties between the two nations.
  • China signed a free trade agreement with Ecuador, as Beijing looks to deepen its economic ties and influence in Latin America.
  • G7 leaders agreed to new economic sanctions against Russia for its war in Ukraine, and the US announced a slate of new measures to restrict Russian trade. The UK followed suit, announcing a ban on Russian diamonds.
  • On balance, the trade pillar was strengthened.

Commons (↔)

  • G7 Leaders released a Clean Energy Action Plan, providing commitments across seven specific areas, including promoting clean energy technologies, with goal of reaching net-zero emissions by 2050 and limiting global temperature rise to 1.5 degrees Celsius.
  • A joint report by the United Nations’ Food and Agriculture Organization and World Food Programme contends that, unless immediate action is taken, acute food insecurity will likely be exacerbated over the next six months.
  • The World Health Organization declared an end to the COVID-19 global health emergency, marking an end to one of the most deadly and devastating pandemics in modern history.
  • On balance, the global commons pillar was unchanged.

Alliances ()

  • Meeting in Hiroshima, President Biden and his G7 counterparts reaffirmed their solidarity to support Ukraine “for as long as it takes,” as Ukrainian President Volodymyr Zelensky joined the summit in-person. G7 leaders also came together on China, pledging to counter economic coercion and voicing opposition to Beijing’s militarization of the Indo-Pacific.
  • President Biden joined leaders of the Indo-Pacific Quad – US, Australia, India, and Japan – for a summit in Hiroshima, resulting in a joint pledge to cooperate toward a region where “where all countries are free from coercion” – an indirect reference to China.
  • US Secretary of State Tony Blinken traveled to Oslo for a NATO foreign ministers meeting to discuss potential security guarantees for Ukraine, including the possibility of NATO membership, though allies remain divided on the issue.
  • Overall, the alliance pillar was strengthened. 

Strengthened (↑)________Unchanged (↔)________Weakened ()

What is the democratic world order? Also known as the liberal order, the rules-based order, or simply the free world, the democratic world order encompasses the rules, norms, alliances, and institutions created and supported by leading democracies over the past seven decades to foster security, democracy, prosperity, and a healthy planet.

This month’s top reads

Three must-read commentaries on the democratic order     

  • Liza Tobin, in Foreign Policyargues that US policy toward China should be reoriented to achieve what should be American’s long-term goal of a democratic China.
  • Emile Hokeinam, in Foreign Affairssuggests that Syrian president Assad has turned a weak hand into a winning one, and that the Arab embrace of Assad will only encourage more brutality.
  • Soner Cagaptay, in Foreign Affairsopines that President Erdogan’s victory in the Turkish elections could solidify Turkey’s shift from an illiberal democracy to a Putin-style autocracy.

Action and analysis by the Atlantic Council

Our experts weigh in on this month’s events

  • Fred Kempe, in Inflection Pointscontends that the drama of US debt ceiling negotiations underscores the enduring promise of America’s global leadership and the growing perils of its decline.
  • Dan Fried and Aaron Korewa, in the New Atlanticistexplore the potential for Poland to serve as a leader in Europe amidst the ongoing political turmoil.
  • Ash Jain was quoted in Foreign Policy on US efforts to win over countries in dealing with China, by not talking about China.
  • Joslyn Brodfueher and Zelma Sergejeva, writing for the Atlantic Council, highlight the potential to fortify NATO’s unified front against Russian aggression as the alliance prepares for its upcoming summit in Vilnius.
  • Matthew Kroenig, in Foreign Policysuggests that even Machiavelli preferred democracy over tyranny, because democracies have stronger political institutions that provide the source for greater national power and influence.

__________________________________________________

The Democratic Order Initiative is an Atlantic Council initiative aimed at reenergizing American global leadership and strengthening cooperation among the world’s democracies in support of a rules-based democratic order. Sign on to the Council’s Declaration of Principles for Freedom, Prosperity, and Peace by clicking here.

Ash Jain – Director for Democratic Order
Dan Fried – Distinguished Fellow
Soda Lo – Project Assistant

If you would like to be added to our email list for future publications and events, or to learn more about the Democratic Order Initiative, please email AJain@atlanticcouncil.org.

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Chhibber, Mohseni-Cheraghlou, and Narayanan cited in ORF report on Bretton Woods and development https://www.atlanticcouncil.org/insight-impact/in-the-news/chhibber-mohseni-cheraghlou-and-narayanan-cited-in-orf-report-on-bretton-woods-and-development/ Fri, 09 Jun 2023 20:21:00 +0000 https://www.atlanticcouncil.org/?p=660255 Read the full report here.

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Read the full report here.

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Through carbon markets, corporations have a role to play in Africa’s development. They should take it seriously. https://www.atlanticcouncil.org/blogs/africasource/through-carbon-markets-corporations-have-a-role-to-play-in-africas-development-they-should-take-it-seriously/ Fri, 02 Jun 2023 14:22:45 +0000 https://www.atlanticcouncil.org/?p=650494 By purchasing high-quality carbon credits, companies can support the sustainable growth of low- and middle-income populations in the world's fastest-growing regions.

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Corporations are in a unique position to responsibly engage in the “wild west” that is the carbon-offset market, all while supporting Africa’s rising low- and middle-income populations.

Through the purchase of carbon credits, corporations can immediately reduce their global carbon footprints while also serving their long-term economic interests to expand their market bases. That is in part because, by purchasing high-quality carbon credits in voluntary carbon markets, these companies can support the sustainable growth of low- and middle-income populations in the world’s fastest-growing regions—including across the African continent.

Voluntary carbon markets allow entities like corporations and individuals to buy carbon credits entirely at their discretion to offset their emissions. These markets differ from compliance markets, which feature legally binding emissions-reduction obligations, often under cap-and-trade structures like those in the European Union and California. Carbon credits are not intended to replace corporate emissions-reduction efforts; rather, they can serve as an additional mechanism to accelerate transitions to net zero, offset unavoidable emissions, and direct capital to regions with insufficient local investment.

Although still relatively immature, voluntary carbon markets have grown considerably—in 2022, their overall value surpassed two billion dollars, a fourfold increase from 2020, and African credits have grown 36 percent on average over the last five years. However, this rapid growth coupled with a lack of underlying structure has led to various issues, including concerns about the quality and legitimacy of many carbon credits sold, which cast doubt on the credits’ actual contributions to climate-change mitigation and stall market growth. Additionally, some carbon credits, which are primarily purchased by corporations based in the Global North, have hindered development in the Global South. For example, some governments in the Global South have forced local communities to sell land for the purpose of creating carbon credits. Organizations such as the Integrity Council for the Voluntary Carbon Market are working to solve the various issues related to the voluntary carbon market; in March, it released the first part of its “Core Carbon Principles,” outlining standards around carbon credits to ensure that offset efforts create verifiable impact.

Carbon-credit prices currently lack standardization, with prices being determined by the type or specific characteristics of the credits. They typically range from under four dollars per ton for lower-quality credits, often renewable energy projects, to over one hundred dollars for higher-quality credits, mainly tons removed from the atmosphere through carbon-removal technologies such as direct air capture. However, with large-scale removal technology still in development stages, removal projects accounted for just 3 percent of all projects issuing credits in 2022. In recent years, low-priced or “junk” credits have flooded the market, enabling dozens of companies to claim carbon-neutral status while only making limited environmental impact. At the twenty-seventh United Nations Climate Change Conference of the Parties, Kristalina Georgieva, head of the International Monetary Fund, asserted that unless carbon credits are priced on a trajectory that attains a seventy-five-dollar average price per ton by 2030, climate goals will remain out of reach. While Georgieva’s comments were likely targeted at compliance markets, pricing between the two markets is inherently connected, and there’s interest in formalizing that connection. By adopting thoughtful carbon-credit-purchasing strategies, including by supporting higher-quality credits that accurately reflect the value of a carbon ton, corporations can strengthen the voluntary carbon market and help it integrate it with compliance markets, rather than delegitimize it.

As rating agencies in the industry mature, corporations will need to take it upon themselves to work with these players and do their own due diligence to ensure that the carbon credits they purchase are high quality, as determined by key characteristics. For example, high-quality credits are “additional”: In other words, the emission reduction would not have occurred without the offset financing activity, an increasingly difficult hurdle for renewable energy credits. A high-quality credit is also quantifiable, in that it is produced by a project that can properly track resulting emissions reductions, and brings other environmental benefits such as improving air quality or enhancing biodiversity. Corporations may need to hire teams to analyze and determine the best partners to purchase credits from or work with trusted brokers with shared values. It will require collaborating with governments, banks, and other industry players to help build the necessary infrastructure and integration with compliance markets.

Workers walk near a hot spring at the Olkaria Geothermal power plant, near Naivasha west of Kenya’s capital Nairobi on October 10, 2014. Photo via REUTERS/Noor Khamis.

Thoughtful participation comes at a price, leaving open the question of why corporations should, if not mandated, participate sincerely or meaningfully in voluntary carbon markets at all. Engaging cheaply just to claim carbon-neutral status, what many call “greenwashing,” will likely become meaningless to consumers soon. While corporations may be incentivized to invest in credits to get ahead of regulatory risk or to appease investors, another often unmentioned reason is to support and grow their future consumer bases. Many opportunities for high-quality carbon credits are in the Global South, which will be disproportionately affected by climate change—and also host the largest urban centers and burgeoning middle-income populations. By the end of the century, Africa is projected to be the only continent experiencing population growth and will be home to thirteen of the world’s twenty largest urban areas. India’s population just surpassed China’s. If the Global South is not supported in its sustainable growth, achieving climate goals will become nearly impossible, and economic environments will become less prosperous.

Instead, by purchasing high-quality carbon credits, corporations can help build a sustainable future that expands economic opportunity in the Global South. For example, corporations can purchase reduction credits by supporting organizations like KOKO Networks, which developed a bioethanol cooker and fuel dispensary service in the hopes of transitioning the third of the world’s population that currently cooks on charcoal or wood (particularly in Africa and Southeast Asia) to a less carbon-heavy and less pollutive fuel source. By integrating hardware (their cookstove) with software (data collected at their dispensaries) KOKO Networks is able to properly measure its carbon impact and issue carbon credits to account for the reduction in emissions. Other such organizations are LifeStraw, which prevents carbon-dioxide emissions generated from boiling water via wood or charcoal by offering a drinking straw that filters water, and Mauto, which recently closed a five-million-dollar transaction to deploy electric two-wheelers across Africa. While more advanced technologies for carbon removal may prove fruitful in the future, corporations should not overlook the credits available today via initiatives like these that can have an immediate impact on ensuring Africa and other regions’ low- and middle-income populations grow sustainably.

Carbon-reduction credits (in contrast to carbon-removal credits) can help shift high-polluting consumer behaviors to sustainable practices in the world’s fastest-growing markets. When purchasing a bioethanol cookstove or an electric vehicle is not financially feasible in African markets, the sale of carbon credits could effectively subsidize these products and make them available to consumers at competitive prices. On the individual level, a mother in Nairobi can cook cleanly in her home, improving her family’s health, resulting in possibly lower medical costs or fewer days of missed work. On a larger scale, avoiding deforestation can help lessen the local impact of climate change because forests regulate weather conditions and help to avoid massive droughts or monsoons that can destroy crops and livelihoods. It is in corporations’ best interest to ensure African consumers are increasingly economically advantaged, a reality that is only possible through sustainable expansion, and carbon credits serve as one tool to support this growth.

By participating in the voluntary carbon market and purchasing high-quality carbon credits, corporations can contribute to sustainable development in the urban centers of tomorrow, while serving their own business interests. Rather than turning away from carbon credits due to the difficulties involved, corporations should lean in and consider which credits can best support their future customers.

Aubrey Rugo is co-president of the London Business School Tech & Media Club.

Further reading

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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Is Egypt planning a full-scale invasion of Sudan?  https://www.atlanticcouncil.org/blogs/menasource/egypt-sudan-military-invasion/ Thu, 01 Jun 2023 14:27:15 +0000 https://www.atlanticcouncil.org/?p=650746 With the evacuation of foreigners from Sudan nearly complete, expectations are that an Egyptian military invasion of Sudan is imminent.

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The crisis in Sudan, which has now entered its second month, has serious implications for neighboring states. This is particularly the case for economically-challenged Egypt, which is watching a humanitarian crisis unfold on its side of the border as tens of thousands of Sudanese refugees flee the conflict. 

Since the fighting erupted in mid-April, at least 259,000 people have crossed over from Sudan into neighboring countries—namely Egypt, Chad, Eritrea, and the Central Africa Republic—according to the International Organization for Migration (IOM). But Egypt—which shares its southern border with Sudan—is the worst affected.  

A primary destination for people fleeing the violence, Egypt has received more than fifty thousand people from across the border. Hundreds of thousands more are expected to cross into the country in the coming months if the fighting continues. The mass influx not only threatens to aggravate the humanitarian crisis on Egypt’s side of the border, but it also threatens to overstretch the country’s resources at a time when it faces a deepening economic crisis, which risks further disgruntling its disaffected population.   

But the Egyptian government has a lot more to worry about than rising public discontent caused by the immense economic pressure. The possible infiltration of extremist groups into Egypt is currently a prime concern for authorities. It’s a case of once bitten, twice shy.

Over the past decade, the Egyptian army and police have been the target of multiple terrorist attacks by Islamic State of Iraq and al-Sham (ISIS)-affiliated jihadists that crossed into Egypt from the shared eastern border with the Gaza Strip. Meanwhile, troops have been deployed along Egypt’s Western border with Libya to curb terrorist infiltration and a repeat of similar attacks. The recent release of pro-Muslim Brotherhood figures from a prison in Sudan has heightened Cairo’s fears of the opening of a new front in Egypt’s war on terrorism

Another major concern for Egypt is the Rapid Support Forces’ (RSF) strong ties with Ethiopia. Egypt has sought the backing of Sudan in its ongoing dispute with Ethiopia over the downstream country’s share of Nile waters. This, following the construction and filling of the Grand Ethiopian Renaissance Dam (GERD), considered by Egypt to be an “existential threat.” Should Egypt decide to use the military option against Ethiopia at any time in the future, it may have to do so unilaterally, as it would no longer have Sudan on its side.

President Abdel Fattah El-Sisi has ruled out any intervention in Sudan, arguing that the Sudanese crisis was an “internal” matter. He has also pledged that Egypt would not take sides in the conflict and has offered to mediate between Sudan’s rival factions. However, skeptics suggest that Egypt is already deeply involved in Khartoum. They affirm that the Egyptian military backs the Sudanese army with which it forged strong ties following the overthrow of the Islamist-leaning former Sudanese President Omar al-Bashir in 2019.  

Some analysts argue that the stakes are too high for Cairo to stand idly by and watch as the situation deteriorates.

It is no secret that Cairo has long backed the Sudanese army with the conviction that it is the sole institution that can restore stability in Sudan. Egypt cemented its ties with the Sudanese army by conducting joint military exercises with Sudan after Bashir was deposed by the military in the wake of mass protests in Sudan. Egyptian authorities are looking to Abdel Fattah El-Burhan, Sudan’s de facto military leader, to quash the nascent pro-democracy movement that emerged during Sudan’s 2019 mass uprising and to restore security and stability in Sudan—moves that Cairo perceives as serving its interests. 

The capture of two hundred Egyptian soldiers—the majority of whom were air force personnel—at a military base in the northern Sudanese town of Meroe by the RSF in mid-April, as well as a leaked video showing the soldiers in a state of defeat, were perceived as an act of provocation by Cairo. The humiliating episode also provoked an outcry on social media platforms. 

The RSF believed Egyptian soldiers were siding with the Sudanese Armed Forces (SAF) but later apologized for releasing the video. Meanwhile, in an apparent attempt to save face, Sisi insisted that the Egyptian troops were in Sudan “for training purposes” and gave the RSF a seventy-two-hour ultimatum to return the soldiers home safely. The troops were indeed sent back to Egypt on April 19, but some analysts believe that the incident has not been forgotten and are guessing Cairo may be waiting for the right moment to retaliate.      

There have been unconfirmed reports that Egypt has provided the SAF with military intelligence and tactical support. Sources have also cited unconfirmed bombings of RSF positions by Egyptian fighter jets and say Egypt is contemplating invading Sudan to fight the powerful paramilitary forces (RSF) led by Mohamed Hamdan Daglo, known as Hemetti. 

If the reports are accurate, this will this pit Egypt against the United Arab Emirates (UAE)—Egypt’s longtime ally and principal financial backer—which has thrown its weight behind the RSF. It would also pit Egypt against Libyan warlord General Khalifa Haftar,  another RSF supporter, whose forces control much of eastern Libya and who was backed by Egypt and the RSF during his failed onslaught on Tripoli in 2019.

All of this puts Egypt in a dilemma. On the one hand, it would like to see stability and security restored in Sudan for fear of violence spilling over into its territory. On the other, Sudan’s northern neighbor does not wish to risk ruffling the feathers of the UAE by overtly taking an opposing side in the conflict. Cash-strapped Egypt has been selling government-owned assets to the wealthy Gulf nation to shore up its troubled economy. Agitating the UAE may cause it to halt its investments in Egypt, denying the North African country the cash it badly needs to plug a financing gap of $17 billion over the next four years.  

It is safer for Egypt to continue to support the SAF covertly or indirectly without publicly announcing its anti-RSF position. Still, with the evacuation of foreigners from Sudan nearly complete, expectations are rife that a full-scale Egyptian military invasion of Sudan is imminent—assuming the conflict drags on. According to some analysts, invading Sudan would give Egypt an opportunity to reassert its leadership role in the region.

By brokering a truce between rival factions in Sudan, Egypt also stands to win favor with global powers—the United States in particular—which had been pinning their hopes on a  handover of power to a civilian government. A return to civilian rule had been a bone of contention between Burhan and the RSF, with the latter accusing Sudan’s military leaders of clinging to power

Helping end the conflict in Sudan would also allow Egypt to align its foreign policy and interests with the United States, reversing a previous trend of having conflicting viewpoints on regional issues. This would pave the way for greater cooperation between the US and its longtime Middle Eastern ally, and would undoubtedly help in defusing tensions over opposing stances on several issues, including Egypt’s backing of Haftar during the civil war in Libya and recently leaked reports of Egypt’s secret plans to supply rockets to Russia.  

Egypt’s strategic relations with Russia have irked the United States the most. It may now be the time for Cairo to show the Biden administration that Egypt’s cooperation with Russia—which has included arms deals and a contract for a civilian nuclear facility—is not an attempt to turn its back on US support, but rather, diversify its sources of support. 

Thus, while there are many complex factors that might dissuade Egypt from intervening overtly in Sudan, the possibility of an invasion cannot be ruled out. The chance to smooth over ties with the US is a juicy incentive, as are the benefits that would arise from bringing stability and security to the surrounding region. 

Shahira Amin is a nonresident senior fellow at the Atlantic Council’s Scowcroft Middle East Security Initiative and an independent journalist based in Cairo. A former contributor to CNN’s Inside Africa, Amin has been covering the development in post-revolution Egypt for several outlets including Index on Censorship and Al-Monitor. Follow her on Twitter @sherryamin13.

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Global Sanctions Dashboard: US and G7 allies target Russia’s evasion and procurement networks https://www.atlanticcouncil.org/blogs/econographics/global-sanctions-dashboard-us-and-g7-allies-target-russias-evasion-and-procurement-networks/ Thu, 25 May 2023 13:42:39 +0000 https://www.atlanticcouncil.org/?p=649118 Tackling export controls circumvention by Russia; the enforcement and effectiveness of the oil price cap; the failure of the US sanctions policy towards Sudan, and how to fix it.

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A few days ago, the Group of Seven (G7) allies met in Hiroshima and reasserted their determination to further economically isolate Russia and impose costs on those who support Russia’s war effort. To do so, they will have to close loopholes in existing sanctions and export control regimes, which in turn requires enhancing interagency coordination within the US government and developing a common vernacular among allies on the targeting of sanctions and export control evasion networks. 

In this edition of the Global Sanctions Dashboard, we cover:

New sanctions packages against Russia released ahead of the G7 Summit

The Ukrainian intelligence assessment from 2022 indicated that forty out of fifty-two components recovered from the Iranian Shahed-136 drone that was downed in Ukraine last fall had been manufactured by thirteen different American companies, while the remaining twelve were made in Canada, Switzerland, Japan, Taiwan, and China. The case revealed that it was not enough to impose sanctions and export controls on Russian defense companies. Not only was Iran providing drones to Russia, but also certain entities and individuals in countries such as Switzerland and Liechtenstein have procured materials on Russia’s behalf. This is why the United States released a new sanctions package ahead of the G7 summit, targeting a much wider international network of Russia sanctions and export controls evasion. 

Finland, Switzerland, Cyprus, United Arab Emirates, India, Singapore—these are just a few locations associated with individuals and entities included in the Treasury Department’s newest designations against Russia. Entities and individuals located in these countries have aided Russia’s circumvention efforts or provided materials for Russia’s military procurement. Among the sanctioned individuals are Swiss-Italian businessman Walter Moretti and his colleagues in Germany and India, who have sold advanced technology to Russian state-owned enterprises. Liechtenstein-based Trade Initiative Establishment (TIE) and its network of two companies and four individuals have been procuring semiconductor production equipment for sanctioned Russian entities since 2012. 

Along with the United States, the United Kingdom also imposed sanctions against eighty-six individuals and entities from Russian energy, metals, financial, and military sectors who have been enhancing Russia’s capacity to wage the war. Additionally, the European Union (EU) is developing its eleventh package of sanctions which will reportedly, for the first time, target Chinese entities facilitating Russia’s evasion efforts. Coordinating the designation and enforcing processes among the G7 allies will be key in synchronizing the targeting of Russia’s evasion and procurement networks.

Export controls circumvention: How the US is tackling it and what should improve moving forward

While sanctions aim to cut entities and individuals procuring technology for the Russian military out of the global financial system, export controls are designed to prevent them from physically acquiring components. G7 allies have levied significant export controls on Russia, but enforcing export controls is easier said than done. Third countries from Russia’s close neighborhood have stepped up to fill Russia’s technology shortages caused by other countries complying with export controls. Central Asian and Caucasus countries had a significant uptick in exports of electronic components to Russia, while Turkey, Serbia, and Kazakhstan have been supplying semiconductors to Moscow. Even if exported electronic components are not designed for military application, Russians have been able to extract semiconductors and electronic components for military use even from refrigerators and dishwashers. The sudden boost in electronic equipment exports from Central Asia and the Caucasus to Russia can only be explained by Russia’s efforts of repurposing them for military use. 

In response to Russia’s efforts to obtain technology by all means possible, the US Departments of Commerce and Justice have jointly launched the Disruptive Technology Strike Force. The goal of the Strike Force is to prevent Russia and adversarial states such as China and Iran from illicitly getting their hands on advanced US technology. The Strike Force recently announced criminal charges against individuals supplying software and hardware source codes stolen from US tech companies to China. The Strike Force embodies the whole-of-government approach the United States has been taking in investigating sanctions and export controls evasion cases. The prosecutorial and investigative expertise of the Justice Department, coupled with the Treasury’s ability to identify and block the sanctions evaders from the US financial system, will amplify the impact of the Commerce Department’s export controls and enhance their investigations and enforcement.  

The US Department of Commerce has also teamed up with Treasury’s Financial Crimes Enforcement Network (FinCEN) to publish a joint supplemental alert outliniing red flags for potential Russian export controls evasion that financial institutions should watch out for and report on, consistent with their compliance reporting requirements. The red flags include but are not limited to:

Providing information to the public in the form of alerts and advisories is an effective step to increase awareness, financial institution reporting, and compliance with Western sanctions and exports controls. The Disruptive Technology Strike Force should consider issuing a multilateral advisory on export control evasion with G7 allies to bring in foreign partner perspectives, similar to the multilateral advisory issued in March on sanctions evasion by the Russian Elites, Proxies, and Oligarchs Task Force (REPO)

Regarding third-country intermediaries suspected of supplying Russia with dual-use technology, G7 allies should prioritize capacity building and encouraging political will in these countries to strengthen sanctions and customs enforcement. Building up their capacity to monitor and record what products are being exported to Russia could be the first step towards this goal. For example, Georgian authorities returned goods and vehicles destined for Russia and Belarus in 204 cases. However, registration certificates did not identify the codes of returned goods in fifty cases, and clarified that the goods were sanctioned only in seventy-one cases. Developing a system for identifying controlled goods and making the customs data easily accessible to the public could both salvage Georgia’s reputation and enhance export control enforcement against Russia.

The enforcement and effectiveness of the oil price cap

The US Department of the Treasury recently published a report analyzing the effects of the oil price cap, arguing that the novel tool has achieved its dual objective of reducing revenue for Moscow while keeping global oil prices relatively stable. A recent study by the Kyiv School of Economics Institute backs up this statement with detailed research of the Russian ports and the payments made to Russian sellers. However, Russian crude oil exports to China through the Russian Pacific port of Kozmino might be examples of transactions where the price cap approach does not hold.

In response, the Department of the Treasury warned US ship owners and flagging registries to use maritime intelligence services for detecting when tankers are disguising their port of call in Russia. Meanwhile, commodities brokers and oil traders should invoice shipping, freight, customs, and insurance costs separately, and ensure that the price of Russian oil is below 60 dollars. 

Despite China’s imports of Russian crude oil, the world average price for Russian crude oil in the first quarter of 2023 was 58.62 dollars, which supports the claim about the success of the oil price cap, at least for now. Notably, Russia’s energy revenues dropped by almost 40 percent from December 2022 to January 2023, likely in part due to the price cap combined with lower global energy prices.

Beyond Russia: The failure of US sanctions policy towards Sudan, and how to fix it.

While the world has been focused on the G7 summit, the crisis worsened in Sudan. In April 2023, President Biden issued Executive Order 14098 (EO 14098) authorizing future sanctions on foreign persons to address the situation in Sudan and to support a transition to democracy and a civilian transitional government in Sudan. The use of sanctions to support policy goals in Africa is not new. In the case of EO 14098, policymakers seek to use future sanctions on individuals responsible for threatening the peace, security, and stability of Sudan, undermining Sudan’s democratic transition, as well as committing violence against civilians or perpetuating other human rights abuses. 

Much has been written and studied about the effectiveness of sanctions programs in Africa with many programs suffering from being poorly designed, organized, implemented, or enforced. Sudan faced statutory sanctions from its designation as a State Sponsor of Terrorism from 1993 to 2020 and US Treasury sanctions from 1997 to 2017 both of which produced limited results due to ineffective enforcement and maintenance of the program. A near-total cut-off of Sudan from the US financial system pushed Sudan to develop financial ties beyond the reach of the US dollar.

Sanctions in Sudan can be useful if applied in concert with more concrete action. US policymakers must elevate Sudan on their priority list and engage their counterparts at sufficiently senior levels in the United Arab Emirates (UAE), Egypt, Saudi Arabia, Turkey, and elsewhere to encourage them to apply pressure on the Sudanese generals. This could be done by freezing and seizing their financial, business, real estate, and other assets in these relevant countries. Cutting off those links will impede the two generals’ ability to fight, resupply weapons, and pay their soldiers, which could force them back to the negotiating table.

Kimberly Donovan is the director of the Economic Statecraft Initiative within the Atlantic Council’s GeoEconomics Center. Follow her at @KDonovan_AC.

Maia Nikoladze is the assistant director at the Economic Statecraft Initiative within the Atlantic Council’s GeoEconomics Center. Follow her at @Mai_Nikoladze.

Benjamin Mossberg is the deputy director of the Atlantic Council’s Africa Center.

Castellum.AI partners with the Economic Statecraft Initiative and provides sanctions data for the Global Sanctions Dashboard and Russia Sanctions Database.

Global Sanctions Dashboard

The Global Sanctions Dashboard provides a global overview of various sanctions regimes and lists. Each month you will find an update on the most recent listings and delistings and insights into the motivations behind them.

At the intersection of economics, finance, and foreign policy, the GeoEconomics Center is a translation hub with the goal of helping shape a better global economic future.

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Quirk in Just Security on adapting the US strategy towards hybrid regimes https://www.atlanticcouncil.org/insight-impact/in-the-news/quirk-in-just-security-on-adapting-the-us-strategy-towards-hybrid-regimes/ Fri, 19 May 2023 14:06:14 +0000 https://www.atlanticcouncil.org/?p=647646 On May 17, Scowcroft Strategy Initiative Nonresident Senior Fellow Patrick Quirk co-authored a piece for Just Security on the importance of developing a US strategy towards hybrid regimes that promotes US interests whilst remaining steadfast in the US' commitments to democratic values.

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original source

On May 17, Scowcroft Strategy Initiative Nonresident Senior Fellow Patrick Quirk co-authored a piece for Just Security on the importance of developing a US strategy towards hybrid regimes that promotes US interests whilst remaining steadfast in the US’ commitments to democratic values.

The authors go on to posit that prolonged engagements with hybrid regimes, in the long term, risks impeding upon the US’ global interests, as non-democratic regimes are less likely to uphold the US’ interests on the global stage, and may prove detrimental to the US’ posture in its strategic competition with China.

Failing to address the democratic deficiencies of hybrid regimes sets up the United States for long-term strategic failure and hinders American economic prosperity. To avoid these outcomes, the United States must carve out a new path forward that preserves near-term US interests while also pressing these States to make democratic progress.

Patrick Quirk

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The 2023 Distinguished Leadership Awards: Honoring the women shaping the global future https://www.atlanticcouncil.org/blogs/new-atlanticist/the-2023-distinguished-leadership-awards-honoring-the-women-shaping-the-global-future/ Fri, 12 May 2023 03:24:25 +0000 https://www.atlanticcouncil.org/?p=645011 Women play a leading role in problem solving, making a historic difference on battlefields, in protests, and in boardrooms. Our annual awards honored awardees embodying this role.

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From Russia’s all-out invasion of Ukraine and gender oppression in Iran to widespread energy and food crises, the past year has been one of global upheaval. And the pivotal problem-solvers in these crises are often women—who are making a historic difference on battlefields, in protests, and in boardrooms. 

In recognition of this reality, the Atlantic Council’s Distinguished Leadership Awards in Washington, DC on Thursday evening honored an all-female slate of awardees who embody “the rising role of women’s leadership in shaping a better world,” as Atlantic Council Chairman John F.W. Rogers put it.  

World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala is the first woman to serve in her role, leading the trade body as it has navigated unprecedented challenges caused by the COVID-19 pandemic and global instability. US Director of National Intelligence Avril Haines is also a path-paver. As the first woman to oversee the US Intelligence Community, she has steered its work to address escalating global threats. 

Nasdaq Chair and CEO Adena T. Friedman, the first woman to lead a major US stock exchange operator, has focused her tenure on modernizing and diversifying Nasdaq. And General Laura J. Richardson, commander of US Southern Command, has used her passion for global security to promote the rule of law, human rights, and democracy in Latin America and the Caribbean. 

Rounding out the roster are the brave Iranian women and girls who have stood up, despite enormous risks, to fight the Iranian Republic’s discriminatory laws, drawing support and attention from across the world.  

“This group is a representation of how far we have come,” Richardson said as she accepted her award, “but also a reminder of how much work there is to be done.”  

Below are more highlights from the gala. 

Laura Richardson: “A solution to these complex challenges… starts with the United States” 

  • The four-star general issued a call to action for Latin America and the Caribbean: “Our partners are struggling to deliver for their people,” she warned. 
  • The region, Richardson explained, is getting hit by the effects of poverty, crime, climate change, and the COVID-19 pandemic. “This desperate situation allows the Chinese Communist Party to step in,” she said, adding that China presents its Belt and Road Initiative to Latin American countries under the guise of wanting to invest. But it’s “really to extract countries’ critical infrastructure,” she explained, with China providing “its debt traps of loans, shoddy work, cost overruns, and bribery of senior officials.” 
  • In addition to that, Russia’s “prolific disinformation campaign”—delivered through media companies with audiences in the tens of millions in Latin America—“only further exacerbates” the difficulties these countries face, said Richardson. 
  • Solutions for Latin America and the Caribbean’s challenges start with the United States, Richardson argued. “Team USA is committed to democracies across the globe,” she said, explaining that the United States is bringing together all elements of national power to help: diplomatic, economic, military, and informational. “This region is our shared neighborhood, and good neighbors take care of each other,” she said. 
  • Richardson noted that women, peace, and security—a policy framework that calls for the participation of women in peacebuilding and conflict resolution—is “a critical component of successful democracies.” Shaping the global future together will take a community, she explained. So “we must be intentional about recruitment, retention, training, and [the] advancement of women,” she said, “because if we take our eye off the ball, we risk losing an entire generation.”  

Ngozi Okonjo-Iweala: “Support strategic interdependence, not overdependence”  

  • Okonjo-Iweala spoke of trying to find the positives in “a world of doom and gloom.” And one place to do that is multilateral organizations such as her own. “We need places where nations can come together,” the WTO head said. “And truly interact even when they disagree—in fact, especially when they disagree.”
  • Okonjo-Iweala pointed out that at the WTO, geopolitical rivals such as the United States and China can sit down and talk trade to the benefit of their citizens. “We need to shore up the multilateral institutions we have instead of taking for granted the services they provide,” she said.
  • Okonjo-Iweala nodded to the many criticisms of the WTO and acknowledged that multilateral institutions “need to be reformed to be fit for purpose for the twenty-first century.” While there were job losses in recent decades, she added, not all were due to trade—technology and other factors played a role. 
  • Meanwhile, Okonjo-Iweala added, “our biggest successes go almost unnoticed.” One she called out was the Information Technology Agreement, a 1996 agreement that has grown to eliminate tariffs on what Okonjo-Iweala said was nearly three trillion dollars in trade in 2021. 
  • “So if we let multilateral fora wither, if we fail to preserve what they are doing well and improve what needs improving, the costs will be high,” Okonjo-Iweala said. “Support strategic interdependence, not overdependence.” 

Avril Haines: “Success of our mission depends on our ability to work with others” 

  • In accepting her award, the director of national intelligence recalled how in its annual threat assessment—published in February—the US Intelligence Community identified two strategic challenges to national security: competition among great powers, rising regional powers, and nonstate actors for influence over the international system; and challenges that transcend borders such as climate change, health, and security.  
  • “The intersection of these challenges [underscores] the importance of working together with partners and allies, private industry, and organizations like the Atlantic Council,” explained Haines, “which bring us together and raise the standard of our work… with the belief that through civil discourse, we can advance our common cause.” 
  • That underlying common conviction, according to Haines, is “that a healthy transatlantic relationship is fundamental to the strength and quality of an international system that is capable of addressing today’s challenges.” 
  • In guiding policymakers with valuable intelligence, the Intelligence Community must interact with people outside of the community who can test hypotheses, provide alternative perspectives, and challenge biases and underlying assumptions, Haines explained. “The success of our mission depends on our ability to work with others across a range of fields and disciplines,” Haines said, “and it requires us to engage with diverse voices and perspectives from all backgrounds and walks of life.” 

Nazanin Nour: “Stay the course on equal rights for all

  • Iranian-American actress and activist Nazanin Nour joined Iranian women’s rights lawyer Mehrangiz Kar and Iranian women’s rights advocate Azam Jangravi on stage to receive the Distinguished Humanitarian Leadership Award on behalf of the women and girls of Iran. (Mahnaz Afkhami, CEO of the Women’s Learning Partnership, received the award in absentia.) Despite “great personal risk,” Nour said, the women and girls of Iran “are pressing for a brighter future.” 
  • Nour explained how after the 1979 revolution, new leader Ayatollah Ruhollah Khomeini banned women from holding jobs, obtaining an education, accessing contraceptives, and more. “To this day, the clerical leadership of the Islamic Republic has hinged on the repression of women,” Nour argued. “Time and again, the regime’s response to women’s calls for greater freedom has been swift and brutal. But the extraordinary women of Iran have persevered.” 
  • Those women have not only persevered, Nour added, but they have also “been in the vanguard demanding change” and learning from the rest of the world about how to secure rights and freedoms. She pointed to the Woman, Life, Freedom movement, which surged following the death of Mahsa Amini in 2022. “Today, women and men are marching side-by-side in support of a revolution that was launched by women and girls,” Nour noted.  
  • Nour described the movement as “modern… in its language, slogans, and approach,” as women and girls have disseminated their message worldwide by using social media. That, Nour said, has helped create “a truly global movement which, at this moment, is in dire need of collective action; and we can all agree on that.” 
  • Nour encouraged the audience to “publicly condemn” the United Nations Human Rights Council’s decision to appoint the Islamic Republic of Iran as chair of its Social Forum. “The Islamic Republic and human rights is an oxymoron, and it’s a slap in the face to the people of Iran that have been brutalized, oppressed, and tortured.” 
  • “It is easy for the sacrifices of the protestors to disappear from the headlines,” Nour noted. “I implore you to continue your solidarity. I implore you to support democracy. I implore you to stay the course on equal rights for all.” 

Adena T. Friedman: “When faced with global challenges, we must find global solutions” 

  • In line with the Atlantic Council’s mission to advance global prosperity, Friedman noted that “markets are foundational to strong economies and to vibrant entrepreneurial ecosystems.”
  • “When faced with global challenges, we must find global solutions,” Friedman said. Nasdaq, she explained, aims to use its expertise and technology to “help build trusted market infrastructure all over the world.”
  • Nasdaq has a role to play not only in established markets, but in emerging markets as well, Friedman said. “We can support their efforts to bring in more foreign investment through well-functioning, high-integrity, and vibrant capital markets,” she explained. 

The global fight for freedom 

  • Almar Latour, the CEO of Dow Jones and publisher of the Wall Street Journal, implored attendees in a special address to cast their thoughts to a Russian prison, where Wall Street Journal reporter Evan Gershkovich remains detained six weeks after he “was unjustly arrested,” Latour said, “on false charges of espionage.”  
  • But while Gershkovich is the highest-profile journalist persecuted for doing his job of late, he’s not the only one. Latour noted the kidnapping of journalist Austin Tice in Syria, the arrest of publisher Jimmy Lai in Hong Kong, and the arrest just last week of Nicaraguan journalist Hazel Zamora. “Dictators around the world are determined to stamp out independent reporting,” Latour said. “And we cannot allow them to succeed… The world is watching. It’s watching how the US and democracies around the world respond to this assault on the press. The world is watching how we in this room are responding.” 
  • Russia’s war in Ukraine is “a historic inflection point of breathtaking significance,” said Atlantic Council CEO Frederick Kempe.  “Some people say we have to separate the war in Ukraine from China and China’s challenge. I think the challenges are inseparable. This is not a time for half measures. The future of the global order is at stake. Its institutions, its principles, its values, as imperfect as they are, are worth defending. And that is what motivates the Atlantic Council.” 

Katherine Walla is the associate director of editorial at the Atlantic Council.

Daniel Malloy is the deputy managing editor at the Atlantic Council.

Watch the full event

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Full transcript: 2023 Distinguished Leadership Awards celebrate the game-changing role of women in the world https://www.atlanticcouncil.org/commentary/transcript/full-transcript-2023-distinguished-leadership-awards-celebrate-the-game-changing-role-of-women-in-the-world/ Fri, 12 May 2023 01:35:51 +0000 https://www.atlanticcouncil.org/?p=645015 The Atlantic Council celebrated its first all-female honoree slate, inspired by the past year of remarkable accomplishments by women around the world.

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Watch a playlist of the event

Event transcript

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JOHN F.W. ROGERS: I’m delighted to be with all of you tonight as we salute the recipients of the Atlantic Council’s Distinguished Leadership Awards. Each year, we recognize a select few who represent the best pillars of our transatlantic relationship, whether as political or policy leaders, business executives, military officers, or artistic and humanitarian champions. What they have in common is that each honoree has made an indelible impact on our world, both in their personal and professional accomplishments, and in their vision for creating a better future with our friends and allies.

Tonight, as chairman of the Atlantic Council, it’s a privilege to be able to say that, for the first time in the Council’s history, we are recognizing a group of all women honorees. And we’re calling attention to the rising role of women’s leadership in shaping a better world.

Now of course, as we gather to celebrate, we do so at a time when such leadership has seldom, if ever, been as crucial as it is today. And while just last week the director-general of the World Health Organization declared that COVID-19 was over as a global public health emergency, new challenges continue to emerge.

A year to the day since we awarded the people of Ukraine a special Distinguished Leadership Award, the war in the Ukraine rages on, shaping a new era of global competition, exposing fragility in international trade ties, and furthering geopolitical uncertainty. It is innocent people who pay the price for war. Their suffering must not be forgotten. What’s more what’s more, with the souring of the US-China relationship, increased tensions and potential systemic threat to world order, the post-World War II sense of stability has never been more threatened.

The task now before the Atlantic Council is not just to diagnose the geopolitical moment in which we find ourselves, but also to inspire the United States and its partners to enhance their collective efforts to shape a better, more prosperous world. As an Atlantic Council community, we can be encouraged by how our organization is rising to the moment. We have provided action-oriented solutions for protecting Ukraine’s sovereignty and freedom, and we have made clear why this war and the US-China rivalry are struggles over what forces, principles, and practice will determine our global future.

As we recognize each honoree at this evening’s historic all-female lineup, we do so in [an] era increasingly in search of role models for women and girls. So tonight, we celebrate not just what each of these extraordinary women have done individually to shape our global future, but what they have done collectively for other women to ensure a better future.

So in considering my remarks this evening and where words can sometimes fall short of the physical and the visual expression in terms of rising to the moment, I was transported to an exhibit that was unveiled a few years ago at the Venice Biennale by a Nigerian artist, Peju Alatise. She is a Nigerian artist, poet, and writer. You’ll see her exhibition here.

Now in her cultural and sculptural installation, “Flying Girls,” she has called for a more just future for girls and imbued the girls with an immense transformative ethos and power in her moving exhibit. We see a striking collection of eight life-size figures of girls united in a circle, adorned with wings, and surrounded by birds and butterflies shaping a pattern that appears to be a murmuration. That’s a large group of birds that all fly together, and then they change direction together. You’ve seen this when you look up at the skies as birds switch their line and move.

Notably, the butterflies are seen surrounding the figures on the ground, suggesting a metamorphosis as they emerge from their cocoons and prepare to take their first flight. And we seem to be witnessing a powerful collective transformation of sorts coming from within these girls and future women, preparing them for their first flight with a momentum from the ground up. Using this artistic expression to guide the future, the artist—she transports us to a future where identity is shaped rather than predetermined.

This is the same transformation that we are witnessing here tonight, a movement embracing and driven by women and girls globally. In “Flying Girls,” the murmuration is a winding upward spiral, not only enveloping the girls but also empowering them. The shape is especially significant as the paths of women in leadership roles itself, because those have never been linear—a befitting segue to the personal and professional stories of our honorees this evening.

So for tonight’s distinguished leaders, it’s not just how far they have traveled but the way they have traveled along their past, not weighted down by obstacles or cynicism about what’s possible; instead, buoyed by a single-minded resolve in their vision for what the future can be.

One of our honorees, the honorable Avril Haines, whom we are awarding the Distinguished International Leadership Award, is the US Director of National Intelligence. She is the first woman in our nation’s history to lead the US intelligence community. And given Director Haines’ and given Director Haines’ significant national-security experience obtained through her service in all three branches of government, a commitment to building a more resilient, inclusive nation through innovative intelligence, few are more deserving of our recognition.

Avril grew up in an apartment in Manhattan’s Upper West Side; her father, a biochemist. Her mother was a painter. And her mother became seriously ill when she was twelve years old. And still a child herself, she spent four years as her mother’s principal caregiver, up until the moment of her passing.

Left without her own mother as a role model, a young Avril did not let her grief defeat her. She gathered her strength. She changed directions and she deferred college for a gap year. She went to study Japanese, martial art, judo, at Tokyo’s Kodokan Institute, where she achieved an incredible feat, rising to a brown belt in just one year.

Later, as a student of theoretical physics, Avril pursued a dream project of restoring a second-hand plane and flying it into Europe. With her flight instructor, she found a 1961 Cessna and she rebuilt the navigation, communication and other electronic systems. Not long into their flight, however, they had an emergency landing. But one upside to the failed adventure at that point was that Avril found a lifelong travel companion in her flight instructor, whom she is married to today.

Our next honoree, Dr. Ngozi Okonjo-Iweala, whom we are awarding the Distinguished International Leadership Award, is the director general of the World Trade Organization. She is the first woman to serve in that capacity, the first African in history to serve in that role. Her more than thirty years of public service includes a remarkable career at the World Bank and serving as finance minister of Nigeria, where she navigated intense personal institutional challenges to implement far-reaching economic reforms.

I can say, on a personal note, when we started at Goldman Sachs our 10,000 Women program, it was Ngozi who herself said to us that we don’t have a program; we have a movement. And for the last fifteen years, her idea has impacted our work on behalf of women and girls across the world.

She was born in the Delta state in Nigeria, where her father was the obi, or king, of the Obahai royal family, which makes her a princess. Now, our cultures often assign a narrative that portrays women waiting for a prince to bring some kind of glass slipper to decide if they are fit. Well, she rewrote this, if not demolished that narrative for herself and future girls. She did not wait for a glass slipper. Instead she shattered the glass ceiling. And along the way, she made sure to create the same opportunities for all girls, especially those who do not come from a royal background, to have this path of economic empowerment.

Our third honoree, Adena Friedman, whom we are awarding the Distinguished Business Leadership Award, she’s the chair and CEO of Nasdaq. Adena went from working as an intern at Nasdaq to making history as the first woman to lead a global exchange. However, this path this path from intern to CEO was not a straight line. And after eighteen years of working at Nasdaq, she left to join the distinguished Carlyle Group. She became the chief financial officer and managing director, and played an integral role in taking the company public during her time there. She returned to Nasdaq three years later, served as its president and chief operating officer, and then she was named the CEO in 2017. And now she serves as chair and chief executive.

And as a student, Adena, she was educated at an all-girls private school. And given the stereotypes at the time, she didn’t see herself on a path to finance. After watching Sally Ride become her first American woman to go into space, she dreamt of flying high into space and becoming an astronaut. But closer to home, she found a role model in her own mother. Originally a stay-at-home mom, her mother later followed her own calling, and went to get her law degree, and became the first woman named at her law firm. Later in life, as a mother herself, Adena had a similar moment of awakening. And after years of taking her two sons and husband to martial arts classes, she decided to follow her interest and pursue classes herself. And similar to all our other panelists but particularly to Avril, Adena rose to a black belt in Korea taekwondo which she now credits for helping her become more fearless in business. And fearless she is. And I can tell you firsthand she’s quite fearless.

And tonight’s fourth honoree, General Laura Richardson, whom we are awarding the Distinguished Military Leadership Award.  She’s the commander of the US Southern Command.  And General Richardson became the first woman Army officer to officially hold the position of deputy commanding general of Forces Command and the only second time that a woman four-star has led a combat command. With a more than thirty-year storied career in the United States Army, her command is the largest in the US Army, responsible for training and preparing active, Reserve, and National Guard troops to meet the requirement of commanders around the globe.

And as a student, Laura was an all-American swimmer. Her path in life has seen her thrive on land and on sea and in the air, because when we talk about flying girls, General Richardson got her pilot’s license at the young age of sixteen—a literally flying girl, joining, I suppose, her copilot here tonight, Avril Haines. So between the martial arts and the air travel, we see some common central themes emerging, if not symbolic of the empowerment and the uplifting of all women and girls.

And then, finally, ladies and gentlemen, tonight we pay special tribute to the women and the girls of Iran.

We are awarding the Distinguished Humanitarian Leadership Award by honoring a delegation of Iranian female activists. The tragic death of a twenty-two-year-old, Mahsa Jina Amini, in the custody of Iran’s so-called morality police has brought the Islamic Republic of Iran’s gender discriminatory laws into clear focus, and the subsequent women-led uprising has stirred the international community.

It’s a privilege to recognize the vast efforts of the activists who will accept this award this evening: Dr. Mahnaz Afkhami, the former Iranian minister of women’s affairs and president and CEO of the Women’s Learning Partnership, who unfortunately herself fell ill and couldn’t be with us tonight; Azam Jangravi, one of the Girls of the Revolutionary Street who was arrested for protesting against Iran’s laws requiring women to wear a hijab in public; Dr. Mehrangiz Kar, Iran’s women’s rights lawyer and writer; and Nazanin Nour, Iranian actress, writer, and activist.

The bravery of Iranian women and girls in risking their safety to achieve change is unquestionable. And together, this delegation’s advocacy, utilization of their public platforms to raise awareness of the circumstances in Iran has been crucial to accountability efforts. In their honor, I wanted to offer just a closing piece, a closing art piece—intentionally using a double entendre on the word “piece” as the artistic expression is meant as a global peace offering.

The picture that you see here is by an Iranian artist, Shirin Neshat as part of a collection of black-and-white photographs of women symbolizing Iranian women’s involvement in efforts to improve women’s education, increase representation in government, securing new legal rights, and expanding their economic opportunities. In this particular detail, the women’s hand, its gesture suggests prayer. And the handwritten calligraphy on the edge of her white veil translates from Farsi: “Give a hand so I can hold a hand.”

Now, this message—“give a hand so I can hold a hand”—conveys a peaceful and powerful message of unity that symbolizes tonight’s event, its theme, and all of our women honorees. It calls out to our global community, especially poignant in this pandemic-recovery era, to reconnect our hands literally and figuratively.

So, ladies and gentlemen, thank you for all being here to celebrate these remarkable women. On behalf of the Atlantic Council, our co-chairs for this evening, I just want to take this moment to offer our hands in celebration of their honors. Thank you.

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STEPHEN J. HADLEY: Avril Haines, deputy—director of national intelligence, assistant to the president and principal deputy national security adviser, deputy director of the Central Intelligence Agency. The first woman to hold each of these positions. Two decades of service in all three branches of the federal government. This is the official record of Avril Haines’ life as a public servant and her enormous contribution to the safety, security, and prosperity of our nation.

But there is another story here of a truly remarkable person. For this story, we must turn to the unofficial record of her life as contained in a Newsweek article dated June 26, 2013. The picture here is of a person with a flair for adventure, an appetite for risk-taking, and an ability to overcome adversity.

Some examples. From age twelve through fifteen, caring for a critically ill parent. After high school, as John mentioned, taking a year off to earn a brown belt at an elite judo school in Tokyo, Japan. Studying theoretical physics at the male-dominated and unwelcoming Physics Department of the University of Chicago. While in college, working as an auto mechanic helping to rebuild Subaru internal combustion engines. Fighting her way back from a serious biking accident between her sophomore and junior years of college. The following summer, taking flying lessons in Princeton, New Jersey. Rebuilding the avionics of a 1961 twin-engine Cessna 310 aircraft and outfitting it with extended-range fuel tanks. Taking off in that rebuilt airplane from Bangor, Maine, to cross the Atlantic Ocean; losing one engine, then the other to North Atlantic ice; and through fog making an emergency landing at a small airport in Newfoundland. After graduating from college, moving to Baltimore, Maryland; buying at auction an old bar in a then-transitional neighborhood; and turning it into an independent bookstore and café. Becoming a community activist and pursuing a law degree at Georgetown Law School. Graduating, clerking for a federal appellate judge, and then working in the State Department’s Legal Advisor’s Office. A two-year stint working for the Senate Foreign Relations Committee under then-chair Joe Biden. And in 2011, becoming deputy legal counsel to the president for national security affairs. And, as they say, the rest is history.

An unusual route to the top, but then Avril Haines is an unusual and extraordinary person. All of this by someone described as having a sweet personality, humility bordering on shyness, and a deep empathy for others. Or, as Denis McDonough, President Obama’s then-White House chief of staff, is quoted as saying, “She is as caring and decent a person as I’ve ever had the blessing to work with, full stop.” A person of humility, intellect, integrity, judgment, and a strong work ethic.

Tonight, it is a privilege for the Atlantic Council to be able to honor the director of national intelligence, Avril Haines. Please join me on the stage.

DIRECTOR AVRIL HAINES: All right. That was utterly terrifying. I am just—Steve, it is genuinely overwhelming to be honored alongside, first of all, such an extraordinary group of female leaders by an institution that I have so much respect for and whose leadership, in the form of all of you and the many remarkable board members who are here tonight in particular, embodies the best of what I aspire to in public service. It does not feel quite real, to be honest.

I also realize that this award is really more of a testament to the work of the intelligence community that I have the privilege to represent and the many thousands of officers who, day and night around the world, relentlessly work to advance our and our allies’ national security, of which there are many, many women who are just, I think, looking out today at the extraordinary awardees who I am put up against, which I have no business to be, but nevertheless, and are inspired by them.

To the Council and the board, thank you so much for this honor. But even more so, thank you for the years of extraordinary service that all of you have engaged in, based on our common conviction that healthy transatlantic relationship is fundamental to the strength and quality of an international system that is capable of addressing today’s challenges in a way that is consistent with our values.

And Fred, you recently noted in testimony that we’re living in an inflection point in our history where US leadership alongside allies and partners will have global and generational consequences. And I quite agree with that perspective. In our annual threat assessment, we talk about two sets of strategic challenges that are intersecting with each other and existing trends to intensify their national-security implications in today’s world.

First, great powers, rising regional powers, and an evolving array of non-state actors are vying for influence and impact in the international system, including over the standards and rules that will shape the global order for decades to come; and second, challenges that transcend borders, including such issues as climate change and global health security and transnational criminal activity, are intensifying as the planet emerges from the COVID-19 pandemic.

And further compounding this dynamic is the impact that rapidly emerging technologies such as generative AI are having on governance, economies, and communities around the world. And the intersection of these challenges [underscores] the importance of working together with partners and allies, private industry, organizations like the Atlantic Council, which bring us together and raise the standard of our work on a nonpartisan basis with the belief that through civil discourse we can advance our common cause.

And much like you, we in the intelligence community are trying to understand and reflect on the world around us and to provide policymakers and operators with insights that will help them make better decisions. But we know the interactions with those outside our community, who will test our hypotheses, provide alternative perspectives, identify our biases and challenge our underlying assumptions, are absolutely critical to our success.

We know that the success of our mission depends on our ability to work with others across a range of fields and disciplines, and it requires us to engage with diverse voices and perspectives from all backgrounds and walks of life—voices and perspectives that are here tonight—as a hallmark of what the Atlantic Council represents, demonstrating the degree to which you can and do enrich our daily work.

In short, thank you for your tremendous dedication to global cooperation and for bringing together the right people to solve some of the world’s most pressing problems. And thank you again for this incredible honor. And congratulations to the other recipients, all of whom really outclass me. Thank you.

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ADRIENNE ARSHT: It’s really such a pleasure to be here to present this next award to someone whose life and career have been dedicated to the protection and prosperity of each of us here tonight.

Now let me provide a bit of context for you. How and when did I meet General Richardson? I attended the change of command at SOUTHCOM in October of 2021 to celebrate the retirement of the SOUTHCOM commander, Admiral Craig Faller. And thus I met the incoming chairman—commander, Laura Richardson. And as a footnote, Craig Faller has become a distinguished fellow at the Adrienne Arsht Latin America Center and the Scowcroft Center for Strategy and Security here at the Atlantic Council.

General Richardson has served in the United States Army for the past thirty-seven years. She leads by example, showing others—in particular, men—that it’s possible to forge a path many would deem impossible.

From an early age, General Richardson set goals that few would think achievable. She earned her private pilot’s license by the age of—I was told fifteen; John said sixteen—but you get it. Don’t you love it that two honorees were pilots before they could vote?

And if you think she spent all of her time in the air, think again. She was also an accomplished competitive swimmer, and I might say, like Christine Lagarde, who was equally a synchronized swimmer in France.

It’s easy to see why the Army was eager to recruit a person with such gumption, and it certainly makes sense that her accomplishments wouldn’t have stopped there. From commanding an assault helicopter battalion in combat in the 101st Airborne Division, to serving as the chief of Army Legislative Liaison to the US Congress, and now, as a decorated four-star general, she has consistently earned accolades for her contributions.

Obviously, it’s particularly special to me that General Richardson has had such extraordinary accomplishments across South and Central America, and the Caribbean. As you know, that’s my wheelhouse.

In addition to strengthening military relationships with our neighbors to the south, General Richardson has maintained a steadfast US presence in Latin America and the Caribbean by providing COVID-19, climate, and humanitarian crisis relief, focusing on how to impede the illicit drug trade, and prioritizing twenty-first century security challenges.

Now more than ever, General Richardson’s role in working with regional partners across the Americas will be pivotal in building a more secure, equitable, and prosperous future for the region. Simply put, she is a beacon of leadership for women and girls who wonder if a career in the military in a cockpit or in a room often filled only with men is a career worth pursuing. She is an undeniable example of leadership, integrity, and determination.

And now it is my great honor to present the Atlantic Council Distinguished Military Leadership Award to my friend, badass General Laura Richardson.

GENERAL LAURA J. RICHARDSON: Well, good evening and thank you. I’m deeply humbled to be here this evening. And I’m honored to serve this great nation in uniform and to represent the men and women of America’s armed forces.

Adrienne, thank you for introducing me tonight. I, like many others, are so grateful for your example and your life’s work in giving back. Everything you do through the Atlantic Council’s Adrienne Arsht Latin America Center [makes] this world a better place. Thank you for your leadership and your friendship.

To the Atlantic Council, I am enormously grateful to receive this award this evening. A special thank you to Chairman John Rogers and CEO Fred Kempe for your exemplary leadership and the amazing work the Council does day in and day out to provide in-depth analysis on overwhelming, complex issues across our globe.

As the thirty-second commander of the United States Southern Command, I can tell you that we have benefitted immensely from the in-depth analysis for six decades that the Atlantic Council provides. I’m proud to say that US SOUTHCOM will celebrate its sixtieth anniversary on the eleventh of June this year.

Latin America and the Caribbean is a vast region of thirty-one countries with twenty-eight likeminded democracies, and US Southern Command works very closely with their military and public security forces on security cooperation initiatives. All of this is based in human rights, the rule of law, and the professionalization of their forces.

But now this region requires a call to action. All of our partners are struggling to deliver for their people. There is suffering from the devastating impacts from COVID and the 170 million people that were thrown into poverty. This is a vicious cycle of insecurity and instability that transnational criminal organizations create. They are more powerful, they’re violent, and they have diversified their portfolio. They not only traffic drugs; they traffic humans. They conduct illegal mining, illegal logging, deforestation, and illegal fishing. This, combined with climate change, severe droughts, extreme storms, and seven million Venezuelans who have fled into an already-desperate Western Hemisphere, is causing people and families to leave their homes for a better life in historic numbers of irregular migration.

If that weren’t enough, this desperate situation allows the Chinese Communist Party to step in with its Belt and Road Initiative under the disguise of investment, but really to extract the country’s critical infrastructure. With its debt traps of loans, shoddy work, cost overruns, and bribery of senior officials, countries have no other choice other than to turn to the CCP to try and show some sort of progress for their people. And Russia, with its prolific disinformation campaign delivered through Russia Today Español, Sputnik Mundo, teleSUR, with over thirty-one million followers in Latin America, it only further exacerbates the situation, and especially during presidential elections.

But there is a solution to these complex challenges, and it starts with the United States because team USA is committed to democracies across the globe, bringing together all of the elements of national power in a strategic-focused effort at the same time to form team democracy and assist struggling democracies to overcome these challenges and so they don’t have to rely on a communist government such as the CCP for help. It’s diplomatic by having our US ambassadors confirmed and in the seat; economic through our private-sector investment, which we need to bring to bear and showcase; military, which I represent with US Southern Command; and informational by flooding the information space and capturing the narrative with what team democracy is doing for partner democracies in the region.

As you can tell, I’m very passionate about this topic and about this hemisphere. President Biden says that this—that in his National Security Strategy that no region impacts the United States more than the Western Hemisphere. I agree. And this region is our shared neighborhood, and good neighbors take care of each other.

I’m honored to accept this award on behalf of United States Southern Command, and on behalf of the twenty-eight democratic Western Hemisphere military and public security forces who are working overtime every day on the stopwatch to deliver safety and security for their people.

And what a privilege to be recognized tonight alongside such amazing women who have accomplished so much. This group is a representation of how far we have come, but also a reminder of how much more work there is to be done.

Tonight I stand in awe of the courage and the resilience of all Iranian women and girls.

Women, peace, and security is a critical component of successful democracies, and it’s a key part of all the engagements that I do in the hemisphere. We must be intentional about recruitment, retention, training, and advancement of women, because if we take our eye off the ball we risk losing an entire generation.

As we set out to shape the global future together, none of us can do it alone. We need a community like the Atlantic Council and everyone here tonight. I’ve been fortunate to have a great community of support made up of family, friends, and colleagues. I’d like to thank my husband, Jim, who served in the Army for forty years and spent thirty-five of it married to me—our daughter Lauren, and my granddaughter Anna who are here with me tonight for all the love and support they provide.

Thank you, Atlantic Council. And, ladies and gentlemen, I just want to thank everyone and really appreciate everything that the Atlantic Council does, Adrienne Arsht and all of you here this evening. Thank you very much.

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DAVID M. RUBENSTEIN: Over the years I’ve made a number of personnel decisions at Carlyle. I hired a young man out of Harvard Business School, Glenn Youngkin, and he was OK. I don’t know what he did. He decided to leave. I hired another person out of government, Jay Powell. He decided to leave also. I don’t know what he’s doing either. But in some of my personnel decisions, I’ve made some pretty good decisions and some pretty bad decisions. I’ll let you judge whether those decisions were good.

But there was one person I interviewed once who was simultaneously the best personnel decision I made and the worst personnel decision I made, and that was Adena Friedman. And let me explain.

Carlyle was looking for a chief financial officer. And we interviewed a number of people, weren’t happy with any of the people we saw. And then I interviewed Adena Friedman, and in 10 minutes I said excuse me, I called my partners, and said: Stop all the interviewing. I’ve just spent 10 minutes with a person. This is the perfect person. She’s smart, experienced, hardworking, and she really knows finance. And perfect. And so we immediately hired her and she served as our chief financial officer at a period of great growth for our firm, and she helped us go public in 2012.

At that time, I thought she would—you know, if she stayed she would wind up probably running the company someday, and she was extremely talented. But she told me that she had an offer not too long after to go back to the place she’d previously been, Nasdaq, where once she did some interim job she would wind up most likely as the CEO, which she did in 2017. And the worst personnel decision was we let her go, in the sense that we should have said: Become the CEO of Carlyle now. The founders, get rid of us. Put her in. If we put her in, the company would be much more valuable today than it is and would be doing much more successfully than it is.

That was my worst personnel decision, is letting her go back to Nasdaq, because let me tell you what she’s done at Nasdaq. When she took over at Nasdaq, the market capitalization was roughly $11 billion. Now it’s roughly about $28 billion, so it’s up about 146 percent. Their stock is up about 144 percent, or 15 percent a year. And honestly, Carlyle has not gone up 15 percent a year. So many times at night I think about what a mistake I made to not let her be the CEO right away, but she’s done better things and she’s done a terrific job and she has a great future.

I thought she should be the secretary of treasury in the beginning of this administration. I thought and I told a number of people we should finally have a woman be secretary of the treasury.  Finally time. They found another woman who was available. And Adena was not really interested in leaving, and she was really interested in continuing to run Nasdaq. And she’s done a great job there but there are other great things in her future, there’s no doubt, because she’s so smart, talented, knows how to get along with people. And what she’s done for Nasdaq has not only increased its market value, but she’s made it more than an exchange.

Many of you who are not in the business world may think it’s like the New York Stock Exchange. It’s not. It does have an exchange element to it, but it provides enormous amounts of technology to exchanges around the world and it has technology relating to cyber technology and cybersecurity that is really second to none. So she’s really modernized the exchange, she’s made it global, and she made it one of the most-admired companies in the financial service world.

So, as I’ve said to some of you before—perhaps you’ve heard me say this—it is a strange situation that in our country, when we only had—we only had—we had about 3 million people in this country we produced George Washington, Thomas Jefferson, James Madison, John Jay, Alexander Hamilton. Now we have 330 million people in the country. Where are the George Washingtons and the Thomas Jeffersons and the James Madisons? Well, I’ve often thought they were in private equity. But actually, there is one person who is not in private equity who is as good as the people that I just mentioned, and that is Adena Friedman.

Now, wouldn’t it be wonderful if we had a president of the United States someday who would be, you know, a great financial executive, somebody who’s run a company, knows how to get along with people, very smart, respected all around the world? And so someday I think that Adena Friedman will be the first female to be president of the United States, which would be a good thing.

Now, the principal problem with that is she’s about four decades too young. You need to be about seventy-five to eighty to be taken seriously as president. So she’s got a long way to go. But mark my words. At some point we will have a female president, and I think her first name is going to be Adena.

Adena, thank you for everything you’ve done for Carlyle, and thank you for what you’ve done for our financial-service system around the world. Could you please come up and accept the award?

ADENA T. FRIEDMAN: Well, that was unexpected. Good evening, everyone. What a great honor it is to be recognized tonight as a recipient of the Distinguished Leadership Award. I am truly humbled to be among this amazing and incredible group of accomplished and groundbreaking leaders receiving this award tonight.

It’s also an honor to be recognized by the Atlantic Council, an organization that recognizes a fundamental truth about the moment that we’re living in, when, faced with global challenges, we must find global solutions. And this is, in fact, the ethos at Nasdaq. We know that markets are foundational to strong economies and to vibrant entrepreneurial ecosystems. And that’s why we’re committed to using our expertise and our technology to help build trusted market infrastructure all over the world.

In addition to serving our own markets, both in the United States, and we also own many of the markets in the Nordics, with our technology and expertise, our technology powers mission-critical operations at more than 2,300 financial institutions and 130 marketplaces worldwide. Our marketplace clients rely upon us to help them build vibrant capital markets within their countries, which then serve as the underpinning of their economies.

Additionally, our bank clients turn to us to help them eradicate criminal activity within their banking networks with our world-class anti-financial-crime technology solutions. While our technology serves many economies in the established market, such as Switzerland, Japan, Singapore, to name a few, we are very proud in the emerging markets as well. We serve markets in places like Indonesia, Thailand, Chile, just to name a few as well. We have many markets in the emerging world.

And there we can support their efforts to bring in more foreign investment through well-functioning, high-integrity and vibrant capital markets. And that kind of reach and that kind of responsibility is what makes our team at Nasdaq really excited to get up every single day, come to work, and to power markets for the future. It’s also what drives our commitment to becoming the trusted fabric to the global financial system.

So I want to thank all of you here. I want to thank John Rogers. You have been such a supporter and a friend over many years. I also want to thank my husband, Mike. And my best friend Nancy is here tonight. It’s so nice of them to join me for this. And I want to thank all of you for this great recognition.

Thank you very much.

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FREDERICK KEMPE: How exciting it is to be here yet again. Avril Haines, you know, what you represent—thank you so much for mentioning my own testimony to the House Intelligence Committee. It is a historic inflection point. Our leadership as a community is absolutely to how this turns out, but thank you for your leadership.

General Richardson, we heard about a lot of your firsts from Adrienne Arsht, but I want to mention another first, which is this is the first time we’ve had an awardee who has come here with three generations of family: her daughter Lauren, her six-year-old granddaughter Anna. I met them both before we began this evening. You may be very respected—impressed by military leadership, and her leadership, but a six-year-old girl at a dinner like this, any of you who have had children, that is real leadership.

Adena Friedman and David, this is the first time we’ve had a presidential nomination at the Atlantic Council dinner.

I really want to salute our chairman, John Rogers, for his inspiration at the beginning of the evening putting all of this in context, and thank you, as well, for your leadership as chairman of the Atlantic Council.

As John said at the outset of this evening, we provided our greatest honor last year—for the first time ever collectively—to an entire people: the people of Ukraine. President Zelenskyy accepted the award by video, telling the stories—harrowing stories of several individual heroes.

Said Zelenskyy, and I quote, “Behind the courage and wisdom of our people, there are thousands of real stories, names and heroic feats.” Fifteen months later, that Ukrainian courage and historical unity of its democratic allies has held thus far. As we brace for a potentially decisive spring counteroffensive, the response to Russian aggression has been remarkable thus far. But it has thus far also remained insufficient to turn the tide.

At this historic inflection point, we stand with Ukraine.  We are resolute in our commitment to this generational fight for freedom, democracy, national sovereignty, and a global system based on the principles, institutions, and values that the Atlantic Council has defended for more than sixty years.

As we affirm our commitment to Ukraine tonight, and as we head into the dinner break, I am honored that we are joined by a remarkable Ukraine pianist, Myroslav Mykhailenko, who will perform for us as we prepare for our break. He was born in Kyiv and began studying piano at the age of six. In 2017, at age thirteen, he and his family moved to the United States to continue his studies.

In the years since, Myroslav has gone on to receive high honors and critical global acclaim. He will perform Melody, the greatest piece by the Ukrainian composer, Myroslav Skoryk. It was scored for a heavily censored Soviet war film in 1982, and the very piece of music was meant to find a way—and a better way—toward freedom.

So with that, Myroslav, it’s our honor to hear you play this remarkable piece of music.

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FREDERICK KEMPE: We’re about to have a special message regarding the reporter Evan Gershkovich of the Wall Street Journal, who was arrested in Russia just doing his job.

And we have here to give you that message Almar Latour, the CEO of Dow Jones, the publisher of the Wall Street Journal. I’ll say a little bit more about him in a second.

The famed American basketball coach John Wooden, who as you know is a very famous transatlanticist—that’s actually not true, but he is a famous basketball coach—but the famous basketball coach John Wooden once said, quote, “The true test of a man’s character is what he does when no one is watching.” Perhaps it is Almar Latour’s character that I most admire about him. His personal decency, his integrity, his humility, his consistency of devotion to the First Amendment and to our journalistic craft has been unflinching, whether as a young reporter or as one of global journalism’s most influential executives at Dow Jones and the Wall Street Journal.

Oh, yes, I think I should reveal my bias. Almar in 1995 was my intern. He worked as my intern in Brussels when I was the managing editor of the Wall Street Journal Europe.

A prime case study of Almar’s character is how he is now championing the ongoing global response to the imprisonment last month of Evan, the Wall Street Journal reporter in Europe. Almar’s been on the front lines as a reporter. I’ve been on the front lines in various warzones as a reporter. If you’ve done that, you feel even more deeply that you would otherwise about what it takes to defend the First Amendment and then what it takes of all of us to respond in a moment like this.

With great pleasure, and great affection, ladies and gentlemen, welcome to the stage my friend—and also an Atlantic Council Board director—Almar Latour.

ALMAR LATOUR: Well, Fred—I believe Fred made clear one thing: always be nice to the intern. So thank you, Fred, and thank you, Atlantic Council, and thank you, everybody here for your brief attention. And congratulations amazing honorees.

There’s probably no group gathered in one room together that’s as committed to freedom as all of you are. You have dedicated your professional lives to that, and I know many of you have put your actual lives on the line for freedom, so thank you.

Tonight I come to you to talk about a shared commitment to freedom. As Fred mentioned, six weeks ago, our colleague, Wall Street Journal reporter, Evan Gershkovich, was unjustly arrested in Russia. He remains today incarcerated in a Russian prison on false charges of espionage.

Ever since, we are so grateful for the outpouring of support from colleagues and partners around the world; from the US administration, including the White House and State; and from all of you here today. And just today, actually here in Washington, we saw more bipartisan support for Evan as seventy members of Congress wrote a letter to Evan directly condemning the time that was stolen from his life and vowed to continue fighting for his release.

As all of you know, there was no espionage. He was merely doing his job. Evan is an accredited reporter dedicated to explaining the evolving story of Russia to the world. Not only did Russia take away one man’s freedom, but his arrest is also an assault on a broader freedom, and that’s the freedom of the press. And as we all know in this room, there is no free society without free press.

Sadly, Evan’s case is the latest in a long and very disturbing trend. Reporter Austin Tice was kidnapped in Syria almost eleven years ago and remains missing today. More recently, publisher Jimmy Lai remains in prison today in Hong Kong, and just last week, Nicaraguan journalist, Hazel Zamora, was arrested and charged with spreading false news. She now faces up to ten years in prison.

All in all, a record number of journalists—363 of them—were imprisoned in 2022 alone, and that figure has nearly doubled since 2015. So we all know this: journalism is under attack. Like Vladimir Putin, dictators around the world are determined to stamp out independent reporting, and we cannot allow them to succeed.

Evan’s arrest is a symbolic reminder of the fight that we find ourselves in today. It’s autocrats versus the power of the pen; disinformation versus reliable information as the bedrock of free society.

The world is watching. It’s watching how the US and democracies everywhere respond to this assault on the press. The world is watching how we, in this room, are responding.

As defenders of freedom in this room, we have to form a united front. We cannot rest until press freedom is secured. We will not rest until Evan’s freedom is secured. He and others like him need to come home now.

The fight for their freedom ultimately is a fight for all of ours. So please keep Evan at the forefront of your conversations and do what you can in your position of responsibility to make sure that the strongmen the world over know that this room will not let freedom whimper away.

Thank you again for all that you are doing every single day, and God bless.

MR. KEMPE: Thank you for that, Almar. It’s an incredibly important message. There’s so much we have to do on the front lines of freedom now. I know it surprised a lot of you who know me well that Almar was my intern since we look pretty much the same age.

But thank you all for a remarkable first half of the evening. As always, thank you to Luke Frazier and the American Pops Orchestra. Big round of applause, please.  And also to the remarkable Robert Pullen and Nouveau Productions for the staging, and to the breathtaking Atlantic Council team that put all this together.

Thanks as well to Markus Dohle of Penguin Random House for the books you will see in your gift bags as you leave; Markus Dohle, a member of our International Advisory Board. He always gets a big round of applause from the crowd here.  Don’t forget to take your bags. The books are always one of the highlights here.

Most of all, thank you for gathering tonight as a community of common cause—550 of you from more than forty countries, including former heads of state, cabinet ministers, members of Congress, CEOs and business executives, civil society, media leaders, artists, and previous Atlantic Council honorees, including Adrienne Arsht, Lord George Robertson and Luis Alberto Moreno, who are all here this evening.

Thank you for being here.

It was nearly forty-three years ago this summer that I arrived in Poland at the beginning of the Solidarity strikes as a young correspondent, as a very young correspondent, covering a story that would change Europe and I believe would also change the world for the better.

I was sent to Poland by my employer at the time, Newsweek Magazine, to cover rapidly spreading national labor unrest of the Solidarity movement that united not only ten million members, but all of that country of thirty-nine million, and then millions more across the entire Soviet bloc that were looking for sparks of freedom and hope to change a long period of oppression.

I only came to appreciate the freedoms that were my American birthright, as the son of German immigrants, when I witnessed close up an entire country that was risking everything—their freedom, their jobs, their safety—to attain the freedoms that I had taken for granted. It was a time for me, at a very young age, of dark foreboding, fear of Soviet invasion and even worse oppression, but also it was a time of opportunity and ultimately would bring about the collapse of one of the most oppressive systems history has seen.

I feel that same sense of foreboding and opportunity today as we watch Putin’s war, Russia’s war, in Ukraine. I also feel a similar sense of gratitude that I felt then to the Polish people to the Ukrainian people to remind me once again of what it takes to defend freedoms we take for granted.

Yet, in Poland the trick was stopping an invasion and then ultimately attaining freedom that was not theirs. In Ukraine, it’s defeating the invader that is trying to rob the freedom that has been spreading and to reverse a period of hope that was set off by the triumph at the end of the Cold War. It is a historic inflection point of breathtaking significance.

Putin’s war in Ukraine has shone a bright light on the fragility of the post-World War II order that has sustained peace and stability on the global stage for nearly eight decades. Against that backdrop, China’s rise as a global superpower poses an even more significant challenge to that world order, which has guided our community for decades. It’s a time for common cause—not for war, not for violence; for common cause to reestablish our belief in our values and what it takes to defend them, and then to adjust to a new period of time.

Some people say we have to separate the war in Ukraine from China and China’s challenge. I think the challenges are inseparable. This is not a time for half-measures. The future of the global order is at stake. Its institutions, its principles, its values, as imperfect as they are, are worth defending.

And that is what motivates the Atlantic Council and our mission and our purpose of, quote, “shaping the global future together with our partners and allies.” And I hope that’s why many of you are here tonight.

These headwinds have produced a stronger, more relevant, and more global Atlantic Council, as our chairman, John Rogers, said earlier this evening. So, first and foremost—and this is the time of the night where we get to salute all of you who are participating in this community.

I would like to ask the following groups to stand. Atlantic Council board members, please stand. Atlantic Council international board members, please stand, and International Advisory Board members, please stand. And Atlantic Council staff, please stand. Please join me in applauding this remarkable group.  God, I’m so lucky to have my job.

As is our tradition, I also want to salute tonight’s co-chairs who are in attendance and whose generosity allows us to do our work. Please stand as I call your names, but I also ask the audience to hold its applause until I conclude.

Adrienne Arsht; John F.W. Rogers; Airbus, represented by Jeff Knittel; Blackstone Charitable Foundation; Bradley, represented by Jon Skeeters and Karl Hopkins; Georgetown Entertainment, represented by Franco Nuschese; Chevron, represented by Colin Parfitt…; Ahmed Charai; Edelman, represented by Gurpreet Brar…; FedEx, represented by Gina Adams; Hunt Consolidated, represented by Paul Schulze; Kirkland & Ellis; John and Susan Klein; KNDS, makers of the Leopard, represented by Bob Schultz and Ron Phillips; Krull+, represented by Alexander Mirtchev; Leonardo DRS, represented by William Lynn; Mapa…; William Marron; Nasdaq, represented by Adena Friedman; OneAmerica Bank, represented by George Lund; Ahmet Oren; Penguin Random House, represented by Markus Dohle; Charles O. Rossotti; SAIC, represented by Nazzic Keene and John Bonsell; Thales, represented by Alan Pellegrini; a round of applause, please, to everyone.

And finally, please applaud yourselves, 550 people from forty-one countries, for being here at this historic time to salute these remarkable honorees and to support our work. Thank you so much to all of you.

With that, ladies and gentlemen, please turn to your screens again for the next element of our program, our Distinguished International Leadership Award.

Watch the remarks

SYLVIA MATHEWS BURWELL: Thank you. It’s an honor to be here. I am particularly proud to celebrate the first all-women slate of Atlantic Council Distinguished Leadership Awardees.

I have had the honor of knowing Dr. Ngozi Okonjo-Iweala for over two decades. We first crossed paths when she was the finance minister of Nigeria and I was working at the Bill and Melinda Gates Foundation, and we collaborated to improve health and increase economic well-being on the continent of Africa and beyond. And since then, we’ve had the opportunity to work together on many other economic and health issues. And over the course of our friendship, I have been lucky to bear witness to her dedication to service, her incredible range of abilities and talents, and her warmth as a human being.

Ngozi and I recently sat down together for a discussion at AU School of International Service, and during our conversation she reflected on her childhood growing up in Nigeria raised in her early years by a grandmother who taught her that our worth in life is defined by how we serve our community. She shared how this belief has always led her to ask this one simple question before taking on a new task: How will this help others?

Ngozi has carried that commitment to community through her time when she first came to the United States as a teenager to go to school through to her work as a two-time finance minister in Nigeria and foreign minister—the first female in both positions.

Her twenty-five years of impact and record-breaking at the World Bank included the $49-billion International Development Association replenishment of concessional resources to assist poor countries, her contributions to United Nations and Group of Twenty commissions as chair of the Board of Gavi, her many academic achievements, and her role as a mother and grandmother, and now as the director general of the World Trade Organization.

As the leader of the WTO, she is committed to ensuring that the preeminent global trade organization works to enhance living standards, to help create employment, and support sustainable development. She is a global visionary who believes that trade can help women and other marginalized populations beat inequality and that the WTO has an important role in increasing economic wellbeing for all.

It is truly my honor to present my friend, Dr. Ngozi Okonjo-Iweala, with the Atlantic Council’s 2023 Distinguished International Leadership Award. Welcome.

NGOZI OKONJO-IWEALA: Well, good evening, everyone. And thank you, Sylvia. That was really beautiful. You yourself, you are a prime example of the kind of leader that women and girls look up to.

I want to start by thanking my family, because I wouldn’t be here today without their love and support. And I have today my sister Dr. Njide Udochi, my son Uchechi Iweala, and my indefatigable adviser Nicole Mensa. Thank you for being here with me today.

Chairman Rogers, President Kempe, dear Fred, thank you so much for this recognition by the Atlantic Council. Thank you for the work you do to make the world a better place. And thank you in particular for the work you are doing in Africa with Rama Yade, trying to look at the glass half full rather than the glass half empty, at the innovation, the creativity and the wellspring of knowledge in the continent.

Excellencies, ladies and gentlemen, it’s wonderful to be here tonight. And when I see familiar faces like Luis Alberto, like Melanne, it really makes me feel at home. Thank you for this immense honor. I’m humbled to share this podium with the sterling cast of women that we’re seeing today.

I don’t know if Avril Haines remembers, but when I was competing for the job of WTO, I had the occasion to ask her for advice. I was introduced to her by someone. And she was absolutely supportive and helpful. Thank you.

We live in what feels like an era of unending crises. When I talk to young people, they’re on edge. Instead of hope, there is fear—fear for a future of uncertain jobs, climate crisis and geopolitical tensions that could escalate into catastrophe.

In this kind of world, we all need to sit up and take action. We must believe that there is still reason and room for hope, that there’s a more prosperous, more sustainable future for people everywhere. In a world of doom and gloom, we must remember the positives.

So my message to you this evening is that, in an uncertain world, we need multilateralism more than ever. We need places where nations can come together and truly interact, even when they disagree—in fact, especially when they disagree. The World Trade Organization is one such arena, a platform where nations, including the United States and China, are able to engage on the trading relationships that deliver benefits to and connect the lives of billions of people each day.

We need to shore up the multilateral institutions we have instead of taking for granted the services they provide. Yes, of course, these multilateral institutions, WTO included, need to be reformed, to be fit for purpose for the twenty-first century. But we must bear in mind the good they’ve done for three-quarters of a century. This cannot be wished away.

The WTO and its predecessor, the General Agreement on Tariffs and Trade, GATT, helped deliver seventy-five years of what, by historic standards, has been an era of peace and unprecedented prosperity. Over a billion people were lifted out of poverty, not only in China but elsewhere. Trade helped deliver decades of disinflation for central banks and brought a wider selection of more affordable goods to consumers in the US and around the world.

Yes, there were job losses, but not all were due to trade. Technology played a large part, as did the failure in some countries to deploy active labor-market and social policies on the necessary scale to deal with dislocation.

At the WTO, some of our biggest successes go almost unnoticed. For instance, our Information Technology Agreement, which is very popular with the business community, especially the semiconductor industry, has eliminated tariffs on what in 2021 was close to three-trillion-dollars worth of trade in products like service, manufacturing equipment, computers and mobile phones. The physical goods and capital investment that power the digital economy would be significantly more expensive without it.

So if we let multilateral fora wither, if we fail to preserve what they are doing well and improve what needs improving, the costs will be high. From our trade perspective, some of these costs are quantifiable. For instance, WTO economists estimate that if the world economy decouples into two isolated trading blocs, it would reduce long-term global GDP by at least 5 percent from the current trend. That’s a much bigger hit to output than what advanced economies sustained after the global financial crisis. And we know how that played out. Poor countries and their development aspirations would be hit hardest.

So my message to you today is to support multilateralism. Support strategic interdependence, not overdependence. Back the WTO to complete the reforms it’s now undertaken to be fit for the twenty-first century. And the multilateral trading system, underpinned by a reformed WTO, can continue to deliver for the world. I want to thank the members of the WTO for their work, my staff in Geneva, and all of you, for making this possible today. Thank you. Thank you so much from the heart.

Watch the remarks

MELANNE VERVEER: What a glorious celebration this is this evening of women’s leadership. Thank you, Atlantic Council. And congratulations to all of the honorees.

I also want to thank the Atlantic Council for the impactful work the Council does every single day and the difference it makes around the world. And one of the many places in the world our focus needs to be is on Iran.

Last September a young Iranian Kurdish woman, Mahsa Jina Amini, died after being held by the brutal morality police for, in their eyes, wearing the mandatory hijab improperly. Her death sparked an unprecedented protest movement across Iran that continues to this day. Young women were on the front lines of the massive peaceful demonstrations, and they were quickly joined by students and university communities, by men and women of all ages from all walks of life. They joined together for an end to the repressive regime and its dictatorial rule.

They have been willing to risk their lives for a cause bigger than themselves. Thousands of protestors have been detained. School girls have been poisoned for their activism. Many others have been assaulted, imprisoned and killed, and executions are increasing.

The women of Iran continue to be catalysts for change. In fact, they have been on the front lines for decades. Their demand for woman, life, and freedom cannot be extinguished and has challenged the very foundation of the regime.

We stand in solidarity with these brave and resilient women, and many around the globe have been doing what they can to raise their voices. Some, for example, have recently joined the call to remove Iran from the UN Commission on the Status of Women given the regime’s draconian restrictions on women’s rights and imposing egregious limits on their freedom and human rights. Thanks to a worldwide effort, the UN vote was successful.

And tonight we stand together with the women and girls of Iran. And to accept this award on their behalf are courageous women leaders in their own right.

Azam Jangravi is a human rights advocate and former political prisoner. She is primarily known for being one of the so-called Girls of the Revolution Street during the 2017 Iranian protests against the compulsory hijab.

Dr. Mehrangiz Kar is recognized globally for her defense of women’s rights and human rights in Iran. She is truly a giant in her field, a lawyer, widely published author, scholar, and activist. And she, too, has been persecuted by the Iranian regime for her efforts to promote equality and to end discrimination against women.

And Nazanin Nour, an Iranian American who has used her platform as an actor and writer to advocate for—advocate for human rights in Iran. And she has been a champion for women and girls there, active on social media as well. And in a recent post, she wrote: I know there is an absurd and depressing amount of terrible things happening in the world at any given moment, but please don’t leave the Iranian people to fight this regime alone. And you will hear from her shortly.

May I ask the women to please come up on the stage?

NAZANIN NOUR: Good evening. Dr. Afkhami was not able to join us this evening, as she is a bit under the weather. However, I would like to read to you her acceptance remarks on our collective behalf.

Thank you to the Atlantic Council for the tremendous honor of this Leadership Award representing the women and girls of Iran who are fighting for freedom and equality. Distinguished guests, it is a privilege for me to accept this award on behalf of the millions of mothers, sisters, and daughters in Iran who, at great personal risk, are pressing for a brighter future.

The seeds of Iranian women’s liberation were planted over a hundred years ago. In 1906, Iranian women took an active part in shaping the constitutional revolution that transformed governance and political participation in the country and in the region. Over the next seven decades, Iranian women helped move Iran to a democratic, participatory system that was inclusive of religious, political, socioeconomic, and other minorities.

In 1963, Iranian women—many of whom were choosing to delay marriage, enter a profession, even attend college—were granted the right to vote. In 1966, Iranian women successfully launched one of the most influential and powerful national women’s organizations in the world. The Women’s Organization of Iran would influence Iran’s leadership at the 1968 UN International Human Rights Conference and the establishment of INSTRAW, the UN’s Research and Training Institute for the Advancement of Women.

In 1975, Iran passed the Family Protection Law, which remains to this day one of the most progressive and comprehensive in the Middle East and in much of the world. Among its reforms were women’s rights to divorce, guardianship of their children, and childcare for working women, among others.

In 1979, exactly two weeks after Khomeini came to power, his very first decree was to nullify the Family Protection Law. He then also banned women from many jobs and from obtaining college degrees in over forty disciplines. He banned contraceptives and brought back polygamy, forced veiling, and segregation of women and men.

To this day, the clerical leadership of the Islamic Republic has hinged on the repression of women. Time and again, the regime’s response to women’s calls for greater freedom has been swift and brutal. But the extraordinary women of Iran have persevered. From the One Million Signatures campaign in 2006, where activists went door to door gathering signatures in favor of women’s equality, to later pushes for employment opportunities and fair elections, women have been in the vanguard demanding change.

Sparked this time by the senseless death of Mahsa Jina Amini, calls for women, life, freedom are still blazing across the nation. Today, women and men are marching side by side in support of a revolution that was launched by women and girls.

And I’m going to pause right here for a second. I’m going to go off-script because of a recent development yesterday, and I would like to inform the room of this, that the Islamic Republic was appointed chair of the United Nations Human Rights Council Social Forum. This year’s theme is technology and the promotion of human rights.

This comes in the midst of the United Nations Human Rights Council fact-finding mission where they’re investigating human rights abuses and atrocities committed by the Islamic Republic against their own people from September of 2022, when this revolution began. It comes amongst internet shutdowns and throttling of internet so that the world cannot see the atrocities that are being committed by the Islamic Republic. It comes as the Islamic Republic uses technology to surveil women using facial recognition technology, to send fines to anybody that is seen wearing improper hijab. This comes among two young men, Yousef Mehrad and Sadrollah Fazeli Zare, who were executed on charges of blasphemy and apostasy for using technology and a social media app to discuss religion and atheism.

I respectfully implore everybody in this room to use platforms that you have to publicly condemn the UN’s position in appointing the Islamic Republic to this Social Forum. The Islamic Republic and human rights is an oxymoron. And it’s a slap in the face to the people of Iran that have been brutalized, oppressed, and tortured for them to sit on this forum.

This is the first revolution in history to be initiated by women and supported by men. It is the result of the work of the thoughtful, dedicated women who a century ago were open to learning from each other and from the rest of the world about rights and freedoms and how to achieve them. Their history shows a worldview that is worthy of the fact that women are half of the world’s population, and that they train and raise the children of both genders. Their unique success is based on a holistic approach that reflects the reality of the lives of the majority of the people of the world, and that allows for dialogue and interactive decision-making. The success of this revolution, which is modern in its goal and in its language, slogans, and approach, promises that with the expansion of communications technology Iranian women’s latest struggle finally brings the promise of a truly global movement, which at this moment is in dire need of collective action. And we can all agree on that.

As the protests in Iran continue, from a distance one day’s events can be hard to distinguish from those of the next. It is easy for the sacrifices of the protesters to disappear from the headlines. On their behalf and on behalf of individuals fighting for freedom everywhere, including here in the United States, I implore you to continue your solidarity. I implore you to support democracy. I implore you to stay the course on equal rights for all. In doing so, you fuel the memory of Mahsa Jina Amini and the continued dream of freedom and equality for Iranian women and girls. Thank you.

Watch the remarks

FREDERICK KEMPE: Thank you, Melanne, for that introduction. Thank you, Azam; thank you, Dr. Kar; thank you, Nazanin, for that wonderful message.

A couple of you have come up to me tonight and said: So, why did the Atlantic Council decide to do an all-women honoree cast for the first time in its history? We have a wide-ranging nomination process—many of you are involved in it. We have a selection committee that’s very discerning. The simple answer is it just turned out that way. These were the best leaders we could possibly identify.

Thank you for the honorees for inspiring us. Thank you for all of you for supporting us.

Now the breathtaking Nova Payton, internationally acclaimed recording artist, Broadway star, will bring us home. Please listen to her every note.

Watch the performance

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Experts react: Sudan at the crossroads—where the conflict goes from here https://www.atlanticcouncil.org/blogs/menasource/experts-react-sudan-at-the-crossroads-where-the-conflict-goes-from-here/ Thu, 11 May 2023 13:09:53 +0000 https://www.atlanticcouncil.org/?p=644644 Atlantic Council experts react to the conflict in Sudan and discuss how it will impact the region and beyond.

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On April 15, fighting broke out in the Sudanese capital, Khartoum, between the Sudanese Armed Forces (SAF) and the paramilitary force, Rapid Support Forces (RSF). General Abdel Fattah al-Burhan, the leader of SAF, and General Mohamed Hamdan “Hemedti” Dagalo, the leader of the RSF, had run Sudan together since the 2021 coup d’état (when the military took full control), which dissolved the transitional government that was put in place after nonviolent pro-democracy protests in 2019. The current conflict between the two leaders—each of whom is seeking full control of Sudan—has permeated to urban civilian areas, creating a humanitarian crisis with a rising death toll and more than seven hundred thousand internally displaced people.

As the scope of fighting widens and the number of Sudanese refugees grows, neighboring countries fear the impact on their populations, potentially igniting political turbulence. While there have been diplomatic efforts to coordinate a ceasefire, it’s unclear whether it will hold and what could be done otherwise to stop the fighting.

Atlantic Council experts react to the conflict in Sudan and discuss how it will impact the region and beyond.

Benjamin Mossberg: ‘The United States must continue to prioritize the Sudanese people’

Alia Brahimi: Libya’s Haftar is resupplying the conflict in Sudan

Thomas Warrick: ‘Governance remains one of Sudan’s greatest challenges’

Shahira Amin: Sudanese are fleeing to Egypt while the country’s resources are overstretched

R. Clarke Cooper: The conflict in Sudan will have broad transregional impacts

‘The United States must continue to prioritize the Sudanese people’

The significant policy failure that the United States faces in Sudan cannot be understated. The importance of Sudan’s stability to Africa, Europe, and the Middle East is closely linked to the events inside the country as it faces ongoing fighting, the potential for a significant humanitarian disaster, and human rights abuses. While there is no easy solution to help Sudan exit this period of instability, the international community must act.

There appears to be little popular support for the violence facing the people of Sudan, as a majority of the Sudanese people face significant challenges in securing food, water, electricity, and shelter. Significant pressure must be brought to bear on General Mohamed Hamdan “Hemedti” Dagalo, the commander of the RSF, and General Abdel Fattah al-Burhan, the leader of the SAF, to encourage a firm cessation of hostilities and a return to negotiations over the civilian-led future of the country.

The announcement of an Executive Order—“Imposing Sanctions on Certain Persons Destabilizing Sudan and Undermining the Goal of a Democratic Transition”—on May 3 by the United States can be useful if applied in concert with more concrete action. US policymakers who do not work on Africa specifically must elevate Sudan on their priority list and engage their counterparts at sufficiently senior levels in the United Arab Emirates (UAE), Egypt, Saudi Arabia, Turkey, and elsewhere to encourage them to apply pressure on the Sudanese generals. This could be done by freezing and seizing their financial, business, real estate, and other assets in the relevant countries. Cutting off these links will impede the two generals’ ability to fight, resupply their arms, and pay their soldiers, which would force them back to the negotiating table. 

The United States must continue prioritizing the Sudanese people and rely on Sudanese leaders that have support and roots in the country. While it is unlikely that either the SAF or RSF can win a decisive military victory, the United States should not abandon the country regardless. Geopolitical competition by China, Russia, and others continues to play out in Sudan and the wider Horn of Africa. It is critical that the United States continue to assert its values, communicate its interests, share its redlines consistently, and avoid the transactional nature of relationships that its geopolitical competitors value.

Benjamin Mossberg is the deputy director of the Atlantic Council’s Africa Center. 

Libya’s Haftar is resupplying the conflict in Sudan

Libya is particularly exposed to developments in Sudan. The first point of vulnerability is the heavily partisan role of General Khalifa Haftar, who controls the east of Libya and large parts of the south and is a central node in the alliance between the UAE, Hemedti, and the Wagner Group. External support to the RSF ideally runs through southeastern Libya, a vast area largely in the grip of Haftar proxies. The border between Libya and Sudan, for example, is manned by Subul al-Salam, a Salafist militia in the pay of Haftar’s fourth son, Saddam. Additionally, Haftar’s 128th Brigade controls many of the transit routes in central and southern Libya. It is led by Hassan al-Zadma, who has strong personal links with Darfuri militias and has taken charge of sourcing mercenaries for Haftar from Sudan and Chad.  

Haftar’s role in the resupply of the RSF is more than a detail in this conflict—it is important to the war’s viability. There have already been documented reports of ammunition shipments, missile deliveries, and intelligence sharing. However, fuel is the critical resource for Hemedti’s Darfur-based fighters who must cross great tracts of the desert by truck to reach Khartoum. Thus, Saddam Haftar has personally overseen the effort to divert Libyan fuel towards the RSF, redirecting the refining capacity at the Sarir oil field—ten thousand barrels a day—over the border to Hemedti. 

The second point of danger is Libya’s status as an optimal rear base. Libya is a major black market logistics hub—for weapons, food, fuel, fighters, fresh dollars—and, thus, an ideal base to launch attacks into Sudan or Chad. If Hemedti retreats from Khartoum to Darfur, tribal fighting within the Darfur region and the collapse of the peace deal there threatens to pull Libya into a regional conflagration. 

The third source of vulnerability is a lesson that might be drawn from the descent into war in Sudan. The international community may rightly conclude that the strategy of dealing with warlords—empowering them as legitimate “stakeholders” in democratic transition—has been exposed as deeply flawed by Sudan. Most Libyans would agree. At the same time, Haftar will note that Hemedti was an integral part of the United Nations-approved power-sharing deal and a party to official political agreements. However, his position was ultimately insecure. Haftar and his sons may, therefore, recommit to growing their military power and leveraging their relationship with the Wagner Group to obtain a preponderance of military power in Libya. This would upend the delicate balance in Libya and portend a regional war.  

Alia Brahimi is a nonresident senior fellow in the Middle East Programs.

‘Governance remains one of Sudan’s greatest challenges’

I have two memories of Sudan. The first is in 2016, when I was just about to fly out to Khartoum to lead the first high-level US government delegation to Sudan in a decade. My boss called me into his office to give me the benefit of his experience leading such a delegation more than a decade earlier. “The people are warm and friendly towards Americans,” he recalled, “but their government has a history of disappointing them.”

My second memory is of when I was there to discuss rebuilding counterterrorism ties with the Sudanese government. They helicoptered us to an important remote base in the northwest that lay astride one of Africa’s major human smuggling routes from east Africa to southern Europe. As we flew out of Khartoum, a US official with years of experience there pointed out the two bridges over the White Nile: “You do realize that the government’s remit stops at the west end of that bridge?”

Seven years later, and after a brief period of hope, governance remains one of Sudan’s greatest challenges. The popular support for civilian leaders who came to power in 2019 was undercut by generals vying for power, each afraid that “second place” meant “last place.” Yet Sudan remains strategically important to the United States, Europe, Africa, and the Middle East because of its role at a crossroads. During the Islamic State of Iraq and al-Sham’s (ISIS) time controlling parts of Syria and Iraq, Sudan was a transit country for ISIS operatives and money transiting in and out of Libya. Human traffickers carried Ethiopians and others toward Libyan ports, taking advantage of false hopes of leaving behind drought and food crises.

Sustained pressure now needs to be brought by the Quad—the United States, United Kingdom, Saudi Arabia, and UAE—and others on the countries supporting the warring generals in order to reach a resolution that will benefit the Sudanese people. They deserve better than another decade of disappointment.

Thomas S. Warrick is a senior fellow and the Scowcroft Middle East Security Initiative.

Sudanese are fleeing to Egypt while the country’s resources are overstretched

Concerns are rising in Egypt as the fighting in neighboring Sudan rages on. Since the outbreak of the conflict in mid-April, tens of thousands of Sudanese fleeing the violence have crossed over into Egypt through a shared southern border with Sudan. The mass influx threatens to put an additional strain on Egypt, which is already facing an acute economic crisis.

But the added burden on Egypt’s already-overstretched resources isn’t Cairo’s only concern. Egyptian leadership is even more worried about prospects of a Muslim Brotherhood resurgence next door, which may, subsequently, pave the way for infiltration over the border. This follows the April 26 release of imprisoned, key figures from Sudanese ex-President Omar al-Bashir’s deposed regime. The SAF reportedly ordered the release of members of the former Islamist regime after protests by inmates broke out inside Kober prison, where they had been jailed after Bashir’s overthrow by the military in 2019. 

Egypt’s army is already stretched thin: troops have been deployed on Libya’s western border to guard against foreign infiltrators. Moreover, after more than a decade of battling an insurgency fueled by Islamic State militants—many of whom had allegedly crossed into Northern Sinai from the Gaza Strip by way of underground tunnels—the last thing the Egyptian military wants is a new front in its war on terrorism.  

The ongoing conflict also pits Egypt against its longtime ally, the UAE, which backs the RSF (the powerful paramilitary forces embroiled in a power struggle with the SAF, which is backed by Egypt). Supporting opposing sides may cause tensions between the two countries at a time when Egypt is in dire need of financial backing to shore up its ailing economy. The sale of Egyptian assets to Gulf countries, including the UAE, has provided Egypt with the lifeline it needs to avert economic collapse and a looming debt default (so far, at least).

Egypt has also relied heavily on Sudan’s support in the ongoing dispute with Ethiopia over the Grand Ethiopian Renaissance Dam (GERD), which sources say threatens to exacerbate Egypt’s water shortage challenge. There are growing concerns in Egypt that the instability in Sudan may overshadow or even derail the negotiations with Ethiopia.

While the Egyptian leadership has insisted it is not taking sides in the conflict, Cairo is watching the developments in Sudan with trepidation, as the unfolding crisis may have far-reaching implications for its northern neighbor. 

Shahira Amin is a nonresident senior fellow at the Atlantic Council’s Scowcroft Middle East Security Initiative.

The conflict in Sudan will have broad transregional impacts

As with previous civil wars in Sudan, the collapse of security and the displacement of the population will have broad transregional impacts beyond immediate neighboring states. Some internally-displaced Sudanese may eventually return home, while others will seek permanent refuge anywhere outside of Sudan—be it on the African continent or further afield in Europe or North America. Exasperating an already fragile security environment, the disruption from the weeks-long conflict is already enabling a more permissive environment for transnational crime and illicit trafficking and terrorism.

Unfortunately, in the multilateral space, there is diminishing capacity to properly address Sudan’s increasingly dire humanitarian and security issues. War in Ukraine, earthquake recovery in Turkey, and flood relief in Pakistan already occupy significant amounts of attention and resources from United Nations agencies, various NGOs, and the national governments of the world. Still, beyond the immediate humanitarian appeal to help the civilian populous of Sudan, this latest iteration of civil conflict also requires global attention in the peacekeeping, security, and conflict resolution space. If ignored, Sudan’s humanitarian and security crisis will manifest itself elsewhere in the world well beyond the Middle East and North Africa.

Absent conflict resolution led by a group of responsible states or a multilateral body, there is an increasing risk that the conflict will become a regional war. Neighboring states have already aligned with either of the two generals and, bizarrely, in some cases, aligned with both sides. Abdel Fattah al-Burhan has the affirmed support of Egypt and Saudi Arabia. The UAE, and General Haftar of Libya, however, support the RSF. As other international actors assess where to align, a united front of regional and Western states is required to stop the march toward greater conflict, and the time for such a united front is now. 

R. Clarke Cooper is a nonresident senior fellow at the Atlantic Council’s Scowcroft Middle East Security Initiative.

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When it comes to great power competition in Africa, one competitor is missing: Iran https://www.atlanticcouncil.org/blogs/iransource/when-it-comes-to-great-power-competition-in-africa-one-equation-is-missing-iran/ Tue, 09 May 2023 18:56:07 +0000 https://www.atlanticcouncil.org/?p=643727 One area the United States completely ignores is Iran's growing influence on the African continent and the need to formulate a policy that will work to limit Tehran’s freedom of action there.

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In mid-December 2022, President Joe Biden invited the leaders of African countries to a summit in Washington. There, they discussed cooperation with the United States regarding solutions to the economic, civil, and security problems accompanying the African continent.

The summit and recent visits by high-ranking Biden administration officials to Africa were the culmination of an effort led by the White House to strengthen the relationship between the United States and the African continent in a wide variety of aspects.

This approach by the Biden administration is quite different from the one adopted by the Donald Trump administration, which saw the continent as a playground for superpower rivalry between China, Russia, and the United States. As part of this great power competition, the Biden administration seeks to enhance diplomatic, economic, and security cooperation to block Chinese and Russian influence in Africa.

However, one area both administrations completely ignore is Iran’s growing influence on the continent and the need to formulate a policy that will work to limit Tehran’s freedom of action in Africa.

Since the Islamic revolution in 1979—and even more so following the heavy political pressure on Tehran—Africa has become an attractive continent for the Islamic Republic. Iran views the African continent as a “battleground” for influence, power, and territory against Saudi Arabia, and has also sought to counter Western influence—particularly that of the United States—within Africa, working with elements that are opposed to colonialism and seeking to chart a more independent course.

Moreover, Iran seeks to utilize their worldwide network of religious and cultural organizations, including universities and charities, to increase its influence over the vast Shia minorities in Africa, using them for political support, fundraising, and even to recruit to terrorist cells.

But Iranian terrorist activities in Africa are not the only problem. Iran is not hesitating to interfere in the internal affairs of many African countries to preserve its interests and protect the individuals who serve its policies. A prominent example is the unprecedented Iranian involvement in 2019 to free Shia cleric Sheikh Ibrahim Zakzaky from his detention in Nigeria, with Iran using its control on Hausa TV to push for his release.

The Iran-West Africa Economic Summit in Tehran, which was held on March 7, is another indication that Iran is seeking to enhance its relations with African countries and strengthen its foothold, especially in the west of the continent. This is part of President Ebrahim Raisi’s vision regarding relations between West African countries and Iran, which was exemplified in his visit to Guinea-Biassau in August 2021, when he pledged to continue expanding ties between Iran and the continent. In many regards, this activity resembles the policy of President Mahmoud Ahmadinejad in Africa, which sought to improve relations significantly.

Apart from Iran’s traditional interests in Africa, several new ones have emerged that must be considered in the context of preventing Iran from consolidating its interests in the continent.

First and foremost is the campaign that Tehran is waging against US allies in Africa that dared to take part in the normalization efforts with Israel: Sudan and Morocco. In order to achieve this goal, Iran has enhanced its military and diplomatic ties with Algiers and increased military aid to the Polisario Front in Western Sahara. The latter contribution has improved the front’s ability to inflict severe damage on the Moroccan army and challenge Moroccan control over the territory. Iran is also working in Mauritania and sees this country as a priority zone for its influence schemes in the Sahara region, which is extremely important for Moroccan security.

In the case of Sudan, Iran’s bid to further its influence in the strategic Horn of Africa suffered after Khartoum joined the Abraham Accords. In order to change this negative trend, Iran is blaming Israel for causing political instability in Sudan’s domestic issues. Furthermore, Iran is still actively trying to spread its Shia doctrine in the country while conspiring to create a political vacuum in Sudan that will weaken the forces who agreed to sign a normalization agreement with Israel.

Through its actions, Tehran is demonstrating that there is a price for joining the Abraham Accords and that it can pose a direct or indirect threat to Sudan and Morocco. Iran is also conducting a powerful political campaign to prevent Israel from enhancing its relations with other African countries and improving its diplomatic presence in various African institutions, such as the African Union.

In addition to the illegal arms smuggling network that Iran managed to build in the Horn of Africa, which allows Tehran to smuggle weapons to the countries of the continent, it also appears to be planning to significantly increase its sales of Unmanned Arial Vehicles (UAVs) to the African continent. Evidence of this can be seen in Iran’s involvement in the civil war in Ethiopia and the sale of Mohajer-6 UAVs to the Ethiopian army.

Against the background of Iranian involvement in Ukraine and Tehran’s desire to increase sales of its military equipment in the war in Ukraine, Africa is a natural continent for this desire, and the transfer of these capabilities to the Polisario Front constitutes another indication of that.

Third, there is a need to pay close attention to the plots that were revealed in several African countries after the assassination of Quds Force Commander Qasem Soleimani in January 2020—the foiled plot to assassinate the US ambassador in South Africa, chief among them. During the past year, several plans were discovered in which Iran sought to harm American or Israeli interests in Africa or use its presence in the continent to recruit terrorists.

In order to protect its allies in Africa and preserve its interests in the continent, the Biden administration cannot focus solely on the growing presence of China and Russia. It must also consider Tehran’s deepening foothold in Africa, which is a growing challenge to US policy on the continent. The administration must prepare an orderly work plan with the cooperation of African countries—and possibly Gulf countries—that are very disturbed by Iranian expansion. The goal of this would be to reduce Iranian influence in Africa and prevent Iran from using African countries to achieve its interests.

Looking to the future, Africa will continue to be an attractive target for Iranian policy under Raisi. Without a well-thought-out action plan, the US will have minimal ability to push Tehran out of Africa and prevent it from coordinating with China and Russia, with the latter having engaged in an unprecedented rapprochement with Tehran in recent months. Thus, countering Iran’s influence in Africa must become a priority for the Biden administration sooner rather than later.

Danny Citrinowicz is a nonresident fellow with the Atlantic Council’s Middle East Programs. He served for twenty-five years in a variety of command positions units in Israel Defense Intelligence (IDI) including as the head of the Iran branch in the Research and Analysis Division (RAD) in the Israeli defense intelligence and as the division’s representative in the United States. Follow him on Twitter: @citrinowicz.

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The EU global investment initiative that could close Africa’s infrastructure gap https://www.atlanticcouncil.org/blogs/africasource/the-eu-global-investment-initiative-that-could-close-africas-infrastructure-gap/ Fri, 05 May 2023 17:09:57 +0000 https://www.atlanticcouncil.org/?p=642787 The initiative could provide the African continent with the billions needed to close the infrastructure gap. But for it to be a success, several conditions must be met.

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The European Commission recently unveiled eighty-seven projects—including everything from rapid bus transit systems to solar plants and data centers—as part of its Global Gateway initiative to support infrastructure, health, education, and climate-change adaptation in regions across the world.

At the same time, the African continent faces a wide infrastructure investment gap, estimated at more than one hundred billion dollars annually, according to the African Development Bank.

This gap affects both the continent’s global competitiveness and many Africans’ poor living conditions. Yet Africa has great potential, with an economic-growth rate that is expected to be surpass the global average in 2023 and 2024; high renewable-energy potential; and young, dynamic, and innovative populations.

To turn Africa’s potential into reality, investing billions—from African governments, the international community, and the private sector—in infrastructure will be crucial.

Global Gateway, the European Union’s (EU) answer to China’s Belt and Road Initiative, plans to mobilize up to 300 billion euros (about $331 billion) in public and private investments by 2027, with half designated for African countries. Even though Global Gateway is providing the billions that Africa needs to harness its potential and close its infrastructure gap, success is not guaranteed. For it to be a success, several conditions must be met.

A priority partnership

Global Gateway’s prioritization of Africa is quite plain to see, even beyond the fact that half of the planned funds are going toward the continent. Global Gateway is embedded in the renewed EU-Africa relationship. In February 2022, European Commission President Ursula von der Leyen and Senegalese President Macky Sall, who was then the African Union (AU) president, announced that the Africa-Europe program would be the very first regional plan under Global Gateway.

This announcement took place a few days before the EU-AU summit that set out to establish a renewed EU-Africa relationship based on a balanced and well-defined appreciation of interests and responsibilities of both partners. Going into the summit, the parties expected a “renewed, modernized, and more action-oriented partnership.” Global Gateway, as a partnership itself, checks those boxes.

For the EU, it is crucial to be perceived by African partners as delivering on promises made at the EU-AU summit. With Global Gateway, it seems as though the EU is making another effort to be a reliable partner that makes commitments that have concrete effects on the ground. That will be important for the EU as China and Russia continue to present competing narratives and models of international order, political organization, and values.

Aligning with Africa’s 2063 vision

For Global Gateway’s projects to have an impact and to live up to the promises of the renewed EU-AU partnership, they have to align with the goals and priorities of the AU’s Agenda 2063. The agenda, adopted in 2015, aims to develop infrastructure, improve energy access, build an integrated network of transport infrastructure, and connect the African continent to the rest of the world.

So far, Global Gateway’s initial projects seem in line with the Agenda. The EU intends to invest in particular in energy, digital, and transportation infrastructure—doing so is a real emergency in Africa. The bloc also intends to accelerate the green transition, bolster health systems, and support education and training. Projects that tackle these issues include the construction of a EurAfrica Gateway Cable, a submarine fiber-optic cable connecting Africa with the EU; a Strategic Transport Corridor between Cabo Verde, Senegal, and the Ivory Coast; and solar power plants in Niger. Global Gateway also aims to boost youth entrepreneurship by financing the launch of high-potential startups and to more generally create jobs for Africa’s growing youth population. The VaMoz Digital program, for example, plans to invest in digital literacy and skills for youth in Mozambique.

How China compares

Chinese investment always looms large, especially considering that China has mobilized over two trillion dollars for almost four thousand investment and construction projects abroad since 2005. Overall, China is far ahead of the EU in overseas investments.

But looking only at Africa, and more especially at Sub-Saharan Africa, the picture is not so clear. China signed over $303 billion in investments and construction contracts between 2006 to 2020. From this perspective, the EU’s 150 billion euros ($165 billion) over the course of only five years is certainly significant, especially considering that the investments made by EU member states outside of the Global Gateway initiative should also be added to this amount in totaling the EU’s contributions.

To reach its ambitious spending goals, the EU will need to rely on a range of financial instruments such as grants, capital investments, and guarantees; it will need to mobilize, among other tools, the European Fund for Sustainable Development+ (which is overseen by a financial tool called Global Europe: Neighbourhood, Development and International Cooperation Instrument) as well as the European Investment Bank.

While China gets called out for its predatory loan practices—and especially its controversial resource-backed lending model—and for neglecting environmental health or human rights in its investments, Global Gateway aims to comply with the highest environmental and social standards and to respect the EU’s democratic values. The program is rooted in EU values, and especially transparency, sustainability, and good governance.

While the program is rooted in EU values, it is not just a one-sided European idea or an investment project; it is an investment in a relationship. In this regard, Global Gateway differs from traditional development policies by placing a greater focus on embedding the project in a political and strategic relationship built on partnership principles. The initiative aims to help African partners build quality and sustainable infrastructure to strengthen their resilience and their strategic autonomy in the energy, technological, health and economic fields; in doing so, it could be the foundation of long-term African growth.

Conditions for success

Critics of Global Gateway argue that the initiative has overly long timelines, that the EU communicates poorly about it, and that the goals are difficult to discern; some critics also say that some of the funding was already mobilized for existing projects and that, in the end, the initiative amounts to no more than rebranding.

It is partly true that the EU often has difficulties in explaining its programs and initiatives, often opting for administrative jargon. It is also indeed the case that Global Gateway serves as an umbrella for some existing projects—which is understandable given that it takes more than a year to launch such infrastructure projects. However, Global Gateway scales up existing major infrastructure projects, speeds up their implementation, and provides a much-needed political impetus to unlock greater funding. African partners should take advantage of this to close the infrastructure gap in a sustainable way.

For Global Gateway to succeed, European and African partners must do the following:

  • The EU must deliver on making the Global Gateway a renewed, and action-oriented partnership in line with the AU-EU summit’s objectives. The EU should nurture its relationship with African countries by delivering concrete and ambitious projects that contribute to Africa’s long-term economic growth. Both sides should recognize that this is not just a business issue: It is a political one.
  • African partners must seize Global Gateway to close the continent’s infrastructure gap. But as it will be important to mobilize all investment needed—and to not come up short on funds—African partners should be more proactive in identifying their needs and on broadcasting successes to maintain the political momentum for the initiative.
  • European and African partners should ensure that each project is compliant with the highest environmental and social-norms standards so that they contribute to green and resilient growth in Africa. Robust reporting will be crucial. Global Gateway projects have to be seen as an opportunity to reconcile economic development with climate-change mitigation and adaptation.
  • Since Global Gateway is designed to leverage private fundings, African partners should build on this opportunity—in which the private sector is already investing in Africa—to unlock even more private-sector financing, beyond the initiative. African partners should use these investments to supplement the financing of green-growth and resilience projects.

Emilie Bel is a nonresident fellow with the Atlantic Council’s Africa Center and deputy to the director of public affairs and head of international affairs at the French Insurance Federation.

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Kroenig and Ashford debate responses to advancements in North Korean nuclear capabilities https://www.atlanticcouncil.org/insight-impact/in-the-news/kroenig-and-ashford-debate-responses-to-advancements-in-north-korean-nuclear-capabilities/ Tue, 02 May 2023 17:26:31 +0000 https://www.atlanticcouncil.org/?p=640646 On April 7, Foreign Policy published its biweekly "It's Debatable" column featuring Scowcroft Center deputy director Matthew Kroenig and Emma Ashford assessing the latest news in international affairs.

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original source

On March 10, Foreign Policy published its biweekly “It’s Debatable” column featuring Scowcroft Center Vice President and Senior Director Matthew Kroenig and Emma Ashford assessing the latest news in international affairs.

In their latest column, they discuss the recent leak of sensitive government documents, the ongoing conflict in Sudan, and North Korea’s recent advancements in nuclear weapon capabilities. Specifically, in light of the developments in North Korea, the pair debate the utility and feasibility of nuclear disarmament.

Washington should stick to its long-standing policy that North Korea must completely disarm. Striking an arms control agreement is contrary to that principle. It would essentially say that the world is willing to live with a nuclear North Korea. It would also undermine nuclear nonproliferation more broadly.

Matthew Kroenig

North Korean disarmament is a nonstarter, at least while the Kim family regime rules. And the result has been bad when it comes to proliferation: It shows that a determined state can succeed in building a nuclear program under sanctions; it creates a bad actor willing to sell its technology to other states for hard currency; and it has prompted debate in South Korea about whether it needs to develop its own nuclear program in response.

Emma Ashford

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To stop the fighting in Sudan, take away the generals’ money https://www.atlanticcouncil.org/blogs/africasource/to-stop-the-fighting-in-sudan-take-away-the-generals-money/ Mon, 01 May 2023 13:25:35 +0000 https://www.atlanticcouncil.org/?p=641030 It is not enough to simply call for a ceasefire and a return to negotiations because those outcomes could reestablish the fraught balance of power.

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International partners are scrambling to limit the humanitarian disaster created by the fighting between the Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF) in Sudan that erupted on April 15 while the last steps of discussions leading to a civilian and democratic transition were expected. Now, it is not enough to simply call for a ceasefire and a return to negotiations because those outcomes could reestablish the fraught balance of power between the SAF and RSF that stymied the eighteen-month-long negotiations for a return to a civilian government—the type of government that most people in Sudan are demanding.

Rather, international partners must increase financial pressure on the RSF, former Bashir-era government officials, and the SAF to change their political calculations at the negotiation table.

Sudan cannot be stable if there are two armies and if former regime elites/Islamists are allowed to sow discord. International partners need to put coordinated financial pressure on RSF leaders to commit to integrating rapidly into the army and on former regime leaders to stop inciting violence; international partners should also put SAF generals on notice that they must honor their pledges to hand over power.

Sudan’s long-ruling former dictator, Omar al-Bashir, was able to stay in power for thirty years by fragmenting the security services and deftly playing them against each other to prevent any one of them from becoming powerful enough to launch a successful coup. In return for their obedience, military and political leaders were allowed to gain control over large parts of the economy and accumulate great wealth. Sustained protests led to Bashir’s April 2019 ouster, a brief period of military rule, and eventually a civilian-military transitional government nominally headed by then Prime Minister Abdalla Hamdok, who governed in “partnership” with SAF General Abdel Fattah al-Burhan and RSF General Mohamed Hamdan “Hemedti” Dagalo, the chair and vice-chair respectively of the Transitional Sovereignty Council.

International partners acquiesced to the generals taking these positions of power, thinking that it would help prevent conflict from breaking out between the two rival forces—and that competition between the SAF and the RSF would keep either from dominating the country and would allow the heavily constrained Hamdok and his civilian ministers to implement at least some reforms. While the prime minister was able to introduce some difficult but necessary economic reforms, Burhan and Hemedti launched another coup on October 25, 2021, to block a planned transfer of the Transitional Sovereignty Council chair to a civilian.

The return of military rule was roundly rejected by the Sudanese people, who held frequent protests, and donors, who paused more than four billion dollars in planned economic assistance. The coup leaders came under enormous economic and diplomatic pressure to negotiate another transition, but they occupied irreconcilable positions on security-sector reform. Burhan and his hardline generals wanted the RSF to be rapidly subsumed into the SAF, while Hemedti (backed by his supporters from the periphery) wanted to keep his independent power base and played for time. As “negotiations” dragged on, the two leaders employed different tactics to try to strengthen their own position and weaken the other’s, including importing more weapons, arming communities, trying to splinter their rival’s forces, cutting off sources of funding, allying with civilian politicians, developing bonds with foreign leaders (including Russia), and—at least according to persistent chatter in Khartoum—planning coups in case these other efforts failed to change the balance of power. Tensions waxed and waned over the past one-and-a-half years, and external actors had to intercede a number of times to prevent combat from breaking out. Unfortunately this time, with the Islamists reportedly exacerbating strife and the political negotiations seemingly about to conclude, diplomats have been unable to avert a war.

Neither the SAF nor RSF is capable of a decisive victory, particularly given Sudan’s size and its fractured political landscape. Barring decisive intervention, the most likely scenario is a long and bloody multisided civil war and a staggering humanitarian disaster, like ones seen in Somalia, Syria, or Yemen. This disaster would not be limited to Sudan; it could also destabilize the greater region and drive tens of millions of Sudanese people to flee to neighboring states, the Middle East, and Europe.

That scenario needs to be prevented in a way that ensures the political and military calculations of Hemedti, Burhan, and their supporters change when serious negotiations to restore a civilian government resume. Simply calling for ceasefires or evenly applying diplomatic pressure is not enough. This would only preserve the rough parity of military power between the RSF and SAF. This is not to suggest that either Hemedti or Burhan is “better.” Both have failed the Sudanese people and should be encouraged to move on from power. However, international partners must aim to immediately stop the fighting, bring back negotiations for a transition to civilian government, and then ensure both generals honor their public pledges to hand over power.

Thus, international and regional leaders must, in coordination, begin to strategically apply pressure by freezing Sudanese bank accounts and temporarily blocking the business activities of Sudanese leaders and their forces. This cutoff in money and revenue will impact those actors’ abilities to pay their soldiers and allies to fight and resupply. More importantly, it will impact their calculations about their willingness to return to serious negotiations and to compromise. Given the RSF is unlikely to prevail against the SAF with its heavy weapons and support from Egypt, the least bad option to stop the fighting is to first apply pressure on Hemedti’s business empire, which funds the RSF—his soldiers are loyal because they are paid better, not for any ideological reason. External actors, particularly the United Arab Emirates and Saudi Arabia (where, because of past Western sanctions, most Sudanese have their bank accounts and base their businesses), should freeze known RSF and Hemedti-family bank accounts and business activities until RSF leaders commit to rapidly integrating their troops into the SAF. Some of the most important assets have been identified and others are known by the Emirati and Saudi governments. Similarly, international partners must quickly freeze the assets of known Bashir-regime/Islamist leaders who are inciting violence in an effort to return to power. 

Finally, partners should identify foreign-held SAF assets and business interests for possible freezing and seizure in case the army does not honor its pledge to hand over power—or perpetuates the historic political and economic dominance of elites from Khartoum at the expense of Sudanese people living in the rest of the country. Only in this way is a sustainable ceasefire and peace possible.

Ernst Jan “EJ” Hogendoorn is a former senior advisor to the US special envoy to Sudan and South Sudan, and former deputy Africa Program director at the International Crisis Group.

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Why US technology multinationals are looking to Africa for AI and other emerging technologies: Scaling tropical-tolerant R&D innovations https://www.atlanticcouncil.org/blogs/geotech-cues/why-us-technology-multinationals-are-looking-to-africa-for-ai-and-other-emerging-technologies/ Thu, 27 Apr 2023 17:46:59 +0000 https://www.atlanticcouncil.org/?p=632366 The African continent is emerging as a crucial player in the drive for innovation as technology continues to transform every industry. Due to its potential as a center for ground-breaking research and development (R&D) in artificial intelligence (AI) and other emerging technologies, US technology corporations are increasingly focusing on Africa.

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The African continent is emerging as a crucial player in the drive for innovation as technology continues to transform every industry. Due to its potential as a center for ground-breaking research and development (R&D) in artificial intelligence (AI) and other emerging technologies, US technology corporations are increasingly focusing on Africa. But beyond its tech talent, what draws these tech juggernauts to Africa? Is it the 2.5 billion consumers who will exist by 2050 or is it because by 2050, Africa will have the youngest population? The following will examine and describe the opportunities and challenges in AI and emerging technology, with a focus on how Africa’s distinctively diversified and tropical ecosystems offer an unrivaled potential for scaling up R&D breakthroughs that can resist extreme weather conditions.

The intersection of tropical-tolerant research and demographic growth

US technology multinationals are increasingly looking to Africa for AI and other emerging technologies for a number of reasons. First, technology corporations such as IBM, Google, and others have created R&D labs in Africa (often run by African diaspora professionals). Second, building a base in Africa gives technology corporations access to innovative ideas, cutting edge startups, AI researchers and more. Additionally, the opportunity to scale R&D innovations attuned to the needs of the region is particularly important since it has a fast-growing youth population. One in five people on the planet will be African in thirty years, so if a business wants to be first to market, a local African presence is imperative.

One key reason is the opportunity to scale R&D innovations attuned to the needs of the region. Google opened its first African AI lab in Ghana. Why did Google do this? A few technology corporations, like IBM, Google, and others, have created R&D labs in Africa as they begin to understand the landscape of African research and innovation. Due to their knowledge and experience on both the local and global scales, some have hired African diaspora professionals to run these labs. IBM maintains research facilities in Kenya and South Africa, while Google operates an AI facility in Ghana. Why did they decide to reside there? They undoubtedly want to find out what fresh ideas startups, AI researchers, and other organizations are working on, as well as new trends that can be made into products. This kind of foresight is wise for business, but it will be necessary moving forward. One in five people on the planet will be African in thirty years, so if a business wants to be first to market, a local Africa presence will be essential to cater to this growing demographic market.

Utilizing AI and emerging technologies in healthcare and medicine

The tropical regions of Africa are a hotbed for many emerging diseases that pose a threat to global health. These regions also have a high incidence of poverty, which limits access to quality healthcare. As a result, there is a great need for new medical technologies that can be used to prevent, diagnose, and treat existing and upcoming diseases. AI and other emerging technologies have the potential to transform healthcare in Africa by providing early detection of disease outbreaks, developing more effective treatments, and improving access to quality care. Additionally, these technologies can help reduce the cost of healthcare delivery by automating tasks and improving efficiency.

US technology multinationals are investing in AI and other emerging technologies because they recognize the potential impact these technologies can have on global health. By commercializing and scaling R&D innovations from Africa, the private sector, technology multinationals, and academic institutions are partnering to improve the lives of millions of people across the continent and other frontier markets. Zindi, a start-up based in Cape Town, South Africa, called upon African data scientists to develop solutions to address the COVID-19 crisis when it was at its peak. Similarly, Christian Happi—a Professor of Molecular Biology and Genomics, as well as director of the ACEGID at Redeemer’s University in Nigeria—has assembled a team of data scientists who are utilizing AI and other advanced technologies to sequence the SARS-CoV-2 virus.

The opportunity for US technology multinationals in Africa

Due to the continent’s variety of entrepreneurial ecosystems, particularly tech incubators, accelerators, and co-working spaces, US technology multinationals are turning to Africa and other frontier markets as a proving ground to test AI and other emerging technologies solutions. These entrepreneurial ecosystems are starting to serve as a testing ground for new ideas that, for a variety of reasons, such as a lack of base-load power or the high cost of Internet data, would not take off in a developed market. The continent also has a growing population of young people who are embracing digital technologies, which presents a significant opportunity for companies that are looking to expand their customer base and broaden their workforce.

African critical minerals used in emerging technologies

Several critical minerals, such as cobalt, lithium, graphite, platinum metals, etc., serve as essential materials for everyday tech such as consumer electronic products—thus far an untapped market for powering the global emerging technology ecosystem. Additionally, Africa’s natural resources also offer the opportunity to make the African continent a leading player in the global green transition to electric vehicles that run on batteries. This is a market that China has largely cornered, however, due to African governments realizing the potential to generate more revenue from these critical minerals, African countries have recently started to ban unprocessed raw commodities being used in emerging technologies. For instance, Zimbabwe recently instituted a raw lithium ban and other African countries are starting to realize the opportunity to navigate geopolitical competition between the world’s industrial powers to capitalize on their critical minerals for their own development–foreign direct investment, value-addition, and increased job creation.

The challenge of scaling R&D innovations in Africa

The challenge of scaling R&D innovations is that they require significant investments of time and money to bring to market, and these investments are often riskier than traditional businesses. For US technology multinationals, the opportunity to scale their R&D investments in Africa is an attractive proposition. The continent has a vast population with a growing middle class, and its resources are largely untapped. However, doing business in Africa comes with its own set of challenges, including infrastructure constraints and political instability. Nevertheless, for companies willing to invest in the continent, the rewards could be significant.

There are significant challenges associated with scaling R&D innovations in Africa, including:

Infrastructure: Many African countries do not have the basic infrastructure required to support large-scale R&D operations. Challenges include unreliable base-load power, telecommunications, and transportation.
Skilled labor: In many African countries, education levels are low and there is a lack of trained personnel who can work in R&D facilities.
Political instability: There are political risks associated with doing business in Africa. These risks include instability, corruption, and government interference.

The benefits of an Afro-centric R&D innovation strategy

There are many benefits to pursuing an Afro-centric R&D innovation strategy, including the ability to scale innovations more effectively across frontier and emerging markets. By focusing on developing technologies that can be adapted to work in tropical climates, US technology multinationals can gain a first mover advantage in the African market and tap into a vast untapped customer base. Additionally, this strategy can help build long-term relationships with local partners and suppliers, which is essential for successful business operations in Africa. The natural environment in Africa, which includes semi-arid temperatures, deserts, and tropical climates, can also be a suitable testing ground for innovations that could thrive in developed markets. Moreover, US companies can position themselves as global leaders in the race to develop impactful innovations for Africa by investing in R&D of technologies relevant to the continent’s needs. Finally, by 2030 African youth are expected to constitute forty two percent of the global youth population. This is an enormous demographic who will be tech savvy, ambitious, and hungry for economic opportunity.

Conclusion

US technology multinationals have recognized the potential for scaling up Afro-centric R&D innovations in Africa. With access to a large and growing digitized population, as well as an abundance of data resources untapped for AI, this continent offers enormous opportunities for responsibly advancing AI and other emerging technologies. By leveraging local knowledge and expertise, US technology companies can develop new products and services designed specifically for African markets while also contributing to the development of innovative solutions applicable globally in emerging and developed markets.

Logo of the Commission on the Geopolitical Impacts of New Technologies and Data. Includes an 8-point compass rose in the middle with the words "Be Bold. Be Brave. Be Benevolent" at the bottom.

GeoTech Center

Championing positive paths forward that societies can pursue to ensure new technologies and data empower people, prosperity, and peace.

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Why emerging markets are stocking up on gold https://www.atlanticcouncil.org/blogs/econographics/why-emerging-markets-are-stocking-up-on-gold/ Wed, 26 Apr 2023 15:11:34 +0000 https://www.atlanticcouncil.org/?p=640094 Financial stability concerns, sanctions, and inflation contributed to the largest net purchases of gold in over seventy years last year—raising questions about its potential role in de-dollarization.

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Last October, Ghanaian Vice President Mahamudu Bawumia announced that his country would seek to purchase oil with gold instead of US dollars. In support of this policy, Ghana’s central bank expanded its gold reserves for the first time since 1961, and the government plans to further boost reserves by requiring mining companies to sell 20% of their refined gold stock to the bank this year.

Accra is hardly alone in its enthusiasm for gold. Since 2008, emerging-market and developing countries have more than doubled their central bank gold reserves, led by Russia, China, Turkey, and India.

The end of gold demonetization?

Developing and emerging-market countries’ growing gold purchases have reversed a selloff in gold reserves—led by advanced economies—since the 1990s.

Starting in the mid-1940s, the Bretton Woods system linked most advanced economies’ currencies to gold, so treasuries and central banks accumulated large reserves to back them. But the system’s collapse in 1971 eliminated gold’s direct monetary purpose as a guarantor of currency value. Meanwhile, central banks’ success in controlling inflation in the late 1980s suggested that gold was no longer needed to rapidly raise capital for currency market interventions. And as interventions became less frequent, it became harder for central banks to justify large reserves in the 1990s.

Consequently, advanced-economy governments (which held 85% of all government-held gold in 1990) offloaded nearly one-fifth of their gold reserves from 1990 to 2007. Some, like the United Kingdom, swapped gold for foreign currencies. Others tried to get more creative: the Swiss government proposed establishing a foundation for Nazi-era victims with sale proceeds, although they eventually filled state coffers after voters rejected the idea. Apart from additional revenue, the sales offered practical benefits like reduced holding costs and lower exposure to gold’s notoriously high price volatility.

Emerging-market and developing economies largely followed advanced economies in demonetizing gold, though they had less of it to sell. Their gold reserves grew less than 10% during this period, even as their non-gold reserves expanded 25-fold.

Emerging markets’ new gold rush

What explains emerging-market and developing countries’ increased enthusiasm for gold since then?

First, the Global Financial Crisis weakened their confidence in the dollar-backed financial system’s stability—catalyzing a trajectory shift in gold purchases. In 2009, for example, China’s State Council announced that it had quietly expanded its gold stockpile by over 70% in previous years. Although China times its disclosures strategically—sometimes years apart—the announcement signaled an accelerated purchase program that persists today.

Second, the logic of returns may explain some diversification into gold. Years of rock-bottom interest rates on advanced-economy bonds increased the attractiveness of assets like gold, which can generate meaningful long-term returns. More recently, some central banks have reasoned that gold’s scarcity preserves its value as elevated inflation erodes Dollar- and Euro-denominated assets—although past returns suggest that gold is not an effective inflation hedge over shorter horizons.

Third, some countries have sought to reduce sanctions risk with gold reserves. Transacting with gold offers key advantages for sanctions evasion: anonymity, low traceability (especially if gold is mixed into alloys), and alternatives to Western financial centers where the US and its allies can more easily restrict trade flows. For example, Russia embarked on a major gold purchase program after US and EU sanctions for its annexation of Crimea in 2014. Since then, Russian entities have conducted gold-denominated transactions through hubs like Dubai to evade sanctions. Although gold’s bulkiness makes it an imperfect medium of exchange, several heavily-sanctioned countries have followed Russia’s lead in increasing gold’s share of foreign reserves.

Greater ambitions for gold

More broadly, countries with fractious US relations trust the dollar-backed financial system less, so it is unsurprising that gold purchases increase with geopolitical distance. Grouping countries by their degree of alignment with the US (represented by votes at the UN General Assembly, where “most aligned” states are in the top quarter of countries by voting alignment, “more aligned” are the next quarter, and so forth) shows that all but the “most aligned” countries have grown their gold reserves since 2008.

An important question is whether China and Russia will employ gold in their efforts to foster alternatives to the dollar—for example, by aiding the internationalization of the Chinese yuan. Outside of China, use of the yuan is hampered by Beijing’s capital account controls; foreign investors are reluctant to hold or trade yuan-denominated contracts without firmer guarantees of its convertibility. However, gold-backed yuan contracts could promise greater convertibility without requiring China to loosen capital controls. The Chinese government has already moved to promote the gold trade, establishing a yuan-denominated gold benchmark index in 2016 that makes it easier for Chinese market participants to exchange gold and influence prices, although further steps have been limited.

For now, emerging markets’ growing interest in gold is more a feature of the existing monetary system than a seismic shift away from it. Gold reserves still make up only 7% of emerging and developing countries’ reserves, and central banks may eventually decide that its clunkiness and price volatility are not worth the trouble. Diversifiers into gold believe that they can reduce their risks, improve their returns, or both. Whether these countries keep buying after inflation subsides will offer a clue into the staying power of gold’s appeal.


Phillip Meng is a Young Global Professional with the GeoEconomics Center.

At the intersection of economics, finance, and foreign policy, the GeoEconomics Center is a translation hub with the goal of helping shape a better global economic future.

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Tackling food insecurity in Africa will require securing women’s rights. Here are two ways to start. https://www.atlanticcouncil.org/blogs/new-atlanticist/tackling-food-insecurity-in-africa-will-require-securing-womens-rights-here-are-two-ways-to-start/ Thu, 20 Apr 2023 18:47:40 +0000 https://www.atlanticcouncil.org/?p=638530 Policymakers should equalize inheritance rights and support women's entrepreneurship as ways to enhance food security.

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Large parts of Africa are currently facing record levels of hunger, and the trend is heading in a more worrying direction. West and Central Africa are seeing increasing food insecurity year after year, and tens of thousands of people across Burkina Faso, Mali, and Niger are expected to experience “catastrophic” hunger in the coming months.

The situation is, in part, being made worse by climate change, which is increasing temperatures and changing weather patterns, compounding the hardship already caused by droughts. According to the International Monetary Fund, a third of the world’s droughts occur in Sub-Saharan Africa; meanwhile, according to the United Nations High Commissioner for Refugees, the Horn of Africa is experiencing the longest and most severe drought on record. These conditions are weakening food systems across Sub-Saharan Africa, an area in which agriculture, forestry, and fishing make up 17.2 percent of the gross domestic product—and substantially more in countries like Sierra Leone and Chad.

But there’s more to this food insecurity trend than climate change; Russia’s full-scale invasion of Ukraine has caused uncertainty in the global food market, disrupting the production and trade of key commodities. Russia and Ukraine are significant suppliers of oil, wheat, and maize, and disruptions to the supply chain, combined with local conflicts in some countries, have caused inflation to soar, with food prices increasing as much as 55.6 percent in the Horn of Africa.

Fighting these rising levels of food insecurity requires a whole-of-nation approach. But countries in these food-insecure regions aren’t doing enough to harness the economic and agricultural potential of half their populations: women. For example, discriminatory laws that hamper women’s access to land and financial services are still in place in some countries. In order to fight food insecurity in full force, these countries must ensure that women are equipped with the exact same resources as men: both land itself and the decision-making power to determine how to use that land in the most productive way possible. Policymakers in these food-insecure countries should take the following actions:

Equalize inheritance rights

Some countries in these food-insecure regions have made significant strides recently in passing reforms that impact women’s lives in some respects—but they have faltered in passing meaningful reforms related to improving access to assets and entrepreneurship opportunities for women.

According to the Center for Global Development, agriculture accounts for 56 percent of employment in Sub-Saharan Africa, and women account for 57 percent of agricultural workers. The informal sector accounts for 50 to 80 percent of economic activity in Sub-Saharan Africa—activity that includes the sale of food. And like the agricultural sector, the informal sector is a major employer of women: In Africa, 89.7 percent of employed women work in the informal sector. Yet despite the roles that women play in these sectors, only 30 percent of women own land in Sub-Saharan Africa.

The discrepancy in land ownership extends in part from inheritance laws. In some of these food-insecure countries, inheritance plays the primary role in determining land ownership. Some inheritance laws across the region are—or were initially—patriarchal, favoring men in the division of property. There have been some signs of progress in protecting women’s rights to inherit property; for example, in Uganda, lawmakers recently amended the Succession Act to ensure equal inheritance rights between men and women.

However, Uganda’s Succession Act was the first inheritance reform implemented in Sub-Saharan Africa since Mali’s in 2011, according to the World Bank, demonstrating the slow pace of progress. More countries must follow suit by implementing their own amendments or fresh, new laws on inheritance rights.

Support women’s entrepreneurship

Owning land goes hand-in-hand with access to financial services. In countries across these food-insecure regions of Africa, farmers must have land titles in order to access the credit necessary to increase agricultural productivity by hiring workers, purchasing animals or farming equipment, and covering transportation and storage costs of their goods. Credit supports entrepreneurship, which promotes innovation and the accumulation of wealth—both of which are integral to fighting food insecurity in the region. However, just as women’s rights to own land are hindered in some countries, their rights to enterprise are sometimes hindered as well.  

According to the World Bank, 71 percent of countries in Sub-Saharan Africa do not have laws that prohibit financial institutions from discriminating based on gender, and women often face more stringent loan arrangements than men when they do access credit. Furthermore, according to the International Monetary Fund, in Sub-Saharan Africa, just 37 percent of women own bank accounts compared to 48 percent of men. If a woman must rely on a man to open a bank account, take out a loan, or register a business, she cannot fully exercise her rights as an entrepreneur to hire workers or freely determine the agricultural methods she uses with the hopes of increasing output.

All countries in these food-insecure regions of Africa should criminalize gender-based discrimination with regard to credit. Allowing women an equal opportunity to receive loans encourages entrepreneurship, leading to more production and competition in the agricultural market. Benin’s Order No. 2349-5—which was implemented in 2022 and prohibits credit, banking, and decentralized financial systems from using discriminatory practices in granting access to credit—can serve as a model for other countries.

Putting the law into practice

Laws are only part of the solution. Guaranteeing equal access to land and credit requires systemic change. Localities and financial institutions need to make a concerted effort to ensure that women are aware of their rights and encourage them to embrace the opportunities to own land or become entrepreneurs.

Activists and government officials should work with local leaders to hold seminars for women, outlining their rights to own land and offering to process land titles. In the private sector, financial institutions can create campaigns specifically marketed towards women, publishing advertisements in print, social, and broadcast media that encourage women to apply for credit.

By taking concrete steps to ensure that women have equal access to land and entrepreneurship, countries can empower their full populations, bringing major benefits for the economy, agricultural productivity, and food security.


James Storen is the program assistant at the Atlantic Council’s Freedom and Prosperity Center.

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Safeguarding the past: The Arab world’s cure to Holocaust amnesia https://www.atlanticcouncil.org/blogs/menasource/safeguarding-the-past-the-arab-worlds-cure-to-holocaust-amnesia/ Mon, 17 Apr 2023 21:30:38 +0000 https://www.atlanticcouncil.org/?p=637455 On the eve of Yom Hashoah, it is no longer considered taboo in the MENA region to promote Holocaust education and genocide prevention. The region’s youth are more receptive to discussing the events of one of the darkest chapters of human history, despite the political, religious, and educational challenges shrouding this historic move that has been praised in some nations in the region and criticized in others.

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Seventy-eight years after World War II, as facts fade and fewer survivors remain, the Holocaust risks being forgotten. This natural amnesia is compounded by widespread campaigns to revise or repress Holocaust history. International Holocaust Remembrance Day on January 27 and Holocaust Remembrance Day (Yom Hashoah) on April 17 are important annual observances to counter these trends, but much more needs to be done year-round. Surprisingly, the Arab world may soon become a world leader in rejecting denialism to reassert “Never again!”

Present events constantly reshape the perceptions of the past and, indirectly, future outcomes. There are people in every country around the world who claim that the Holocaust never took place. In the Middle East and North Africa (MENA) region, Holocaust denial is mainly a trend among the younger generation due to a lack of Holocaust education in schools and after-school activities. For decades, the Holocaust has been a taboo subject, politicized and conflated with the Israeli-Palestinian conflict in official discourse. Historical truth is clouded, if not overshadowed, by key actors in the Arab world who connect Israeli state policies and the Jewish people worldwide—past and present, using them interchangeably, as if they were one. Opposition to Israel becomes resistance to the reality of Jewish suffering and injustice done to Jews in the past.

As a result, the Holocaust was absent from public consciousness until 2009, when Morocco’s King Mohammed VI became the first Arab leader to recognize the Holocaust by addressing the matter in a message addressed to the launch event of the Aladdin Project at UNESCO in Paris.

“Amnesia has no effect on my understanding of the Holocaust, or that of my people,” said the king, adding, “We must together endeavor to reassert reason and the values which underpin the legitimacy of a space of co-existence where the words of dignity, justice, and freedom will express themselves in the same way and will coexist, with the same requirements, regardless of our origins, cultures or spiritual ties. This is our interpretation, in Morocco, of the duty of remembrance dictated by the Shoah.”

Speaking at international conferences and forums devoted to the Holocaust and intercultural dialogue, King Mohammed VI and representatives of the Moroccan government have frequently emphasized the significance of denouncing anti-Semitism, instilling togetherness, and religious coexistence in Moroccan society, learning from the lessons of the Holocaust, and highlighting the crucial role that education plays in this context.

Challenges for Holocaust education in the Arab world

Past efforts at Holocaust education in the Arab world have too often suffered from a lack of context-specific sensitivity. In contrast to the king’s speech, which expresses the values and ideals of the Moroccan tradition as the basis for affirming Holocaust remembrance, others have simply translated Euro-centric Holocaust materials into Arabic, mainly from fear by civil society actors they would be blamed for “normalizing” with Israel if they tried to teach about the Holocaust. To effectively use Holocaust education as a tool for genocide prevention, the content should be tailored to Arab audiences using relevant wording, metaphors, names, and historical events.

In contrast to other areas of the world, World War II battles were fought, and Jews of the MENA region, directly or indirectly, experienced the Holocaust. Employing this little-known history in creating educational content is essential to sparking children’s imagination.

On the other hand, if this would only be a requirement, rather than a shared process of mutual development, educators would not take ownership of these materials and will lack the motivation to use these materials towards the essential goal of developing Holocaust education within the Arab world.

The power of participation

Today, initiatives all over the Middle East and North Africa try to promote Holocaust education through standard education approaches. However, teacher-to-student Holocaust education, while powerful, cannot reach the vast audience in need of this vital information and perspective. There is an increasing need to use state-of-the-art media, including those that allow for online sharing of ideas. While the hateful have exploited the Internet to spread racism, Holocaust denial, and other destructive ideologies, it can also serve as a powerful tool to educate and empower those fighting hate.

In 2011, the Kivunim Institute and Mimouna Association organized the first conference on the Holocaust in the Arab world commemorating the actions of the late King Mohammed V at Al Akhawayn University in Ifrane. An article in the New York Times praised the event as a “first of its kind in an Arab or Muslim nation, and a sign of historical truth triumphing over conspiracy theories and anti-Semitic dogma.”

The Mimouna Association and United States Holocaust Memorial Museum (USHMM) in 2017 jointly created the first Arabic-language Holocaust curriculum by and for Muslims. The Holocaust education material created was tailored to the specific context of the Arab and Muslim world.

The USHMM, which is celebrating its thirtieth anniversary this month, has prioritized promoting Holocaust education in the Arab world, for example, through Holocaust commemorations in Morocco in 2018 and 2022, and Egypt and the United Arab Emirates (UAE) in 2022 and 2023. In 2022, the USHMM organized an important Holocaust commemoration in the UAE and Egypt.

In the Emirates, Ahmed Obaid Al Mansoori created in 2021 the first Holocaust memorial exhibition in the Arab world at the Crossroads of Civilization Museum in Dubai. This permanent exhibit is the first of its kind in the Arab world, and offers visitors a setting within which to begin to understand the Holocaust and fight the denial of this dark chapter of human history.

In Morocco this year, the Mimouna Association, in partnership with the Council of Jewish Communities in Morocco, the United Nations Information Centre, and the ASF, provided over 120 students from different Moroccan universities and institutes, Moroccan Muslim activists, and members of the Moroccan Jewish community with an opportunity to engage and learn more about the history of the Holocaust.

In the largest synagogue of Casablanca, 350 guestsincluding university students, Morocco’s Minister of Education Chakib Benmoussa, diplomats from the United States, Israel, France, Germany, Poland, The Vatican, and Spain, as well as representatives from Moroccan civil society and international organizationspacked the pews to honor King Mohammed V, savior of the Moroccan Jewish community.

Recognizing the deep convictions, moral approach, and brave policy of Sultan Mohammed V, the US ambassador to Morocco, Puneet Talwar, affirmed, “His Majesty King Mohammed V protected Morocco’s Jews from the Nazis. And His Majesty King Mohammed VI has carried on that legacy. He has spoken forcefully against the denial of the Holocaust.”

The Chief Rabbi of Casablanca, Rabbi Joseph Israel, said a customary Moroccan prayer honoring the king and his forefathers. The Muslim students also heard the Chapters of Psalms, Kaddish, Yizkor, and the Kel Malei Rachamim in memory of the Holocaust victims.

On the eve of Yom Hashoah, it is no longer considered taboo in the MENA region to promote Holocaust education and genocide prevention. The region’s youth are far more receptive to discussing the events of one of the darkest chapters of human history, despite the political, religious, and educational challenges shrouding this historic move that has been praised in some nations in the region and criticized in others.

El Mehdi Boudra is a nonresident senior fellow at the Atlantic Council’s Middle East Programs. Follow him on Twitter: @ElBoudra.

N7 Initiative

The N7 Initiative, a partnership between the Atlantic Council and Jeffrey M. Talpins Foundation, seeks to broaden and deepen normalization between Israel and Arab and Muslim countries. It works with governments to produce actionable recommendations to deliver tangible benefits to their peoples.

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Event with Ghana’s Minister of finance and economy planning, Ken Ofori-Atta, was quoted in the New York Times https://www.atlanticcouncil.org/insight-impact/in-the-news/event-with-ghanas-minister-of-finance-and-economy-planning-ken-ofori-atta-was-quoted-in-the-new-york-times/ Fri, 14 Apr 2023 18:46:13 +0000 https://www.atlanticcouncil.org/?p=637777 Read the full article here.

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Read the full article here.

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As Sudan’s transition to democracy accelerates, reforming the security forces must be a top priority https://www.atlanticcouncil.org/blogs/africasource/as-sudans-transition-to-democracy-accelerates-reforming-the-security-forces-must-be-a-top-priority/ Wed, 12 Apr 2023 20:21:53 +0000 https://www.atlanticcouncil.org/?p=635383 The Sudanese Armed Forces and the paramilitary Rapid Support Forces must be governed by the rule of law and work to protect democracy and human rights in Sudan.

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Sudan’s political factions are negotiating the formation of a new transitional government, a major step toward a civilian-led government that is long overdue nearly eighteen months after a military coup led by General Abdel Fattah al-Burhan. Once the parties do form a new government—talks are continuing past a previously announced April 11 target date—perhaps its most critical task will be to clarify what role Sudan’s security forces will have in the country going forward.

To ensure that Sudan’s transition to democracy succeeds, its leaders must put limits on the power of the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF). For a successful political transformation, the SAF, led by Burhan, and the paramilitary RSF, led by General Mohamed Hamdan Dagalo, must be governed by the rule of law and work to protect democracy and human rights in Sudan. Absent meaningful reform to rein in the existing power of the security services, institutional tension between the services could spark a wider conflict that would destabilize the country and threaten the transition to democracy.

Reform of the security services will not be easy, and it is the subject of ongoing debate as the factions try to strike a deal on a transitional government. But there are steps Sudan’s leaders and those who support Sudan’s transition to democracy can take now.

The struggle for reform

Sudan’s military has played a major role in the political landscape of the country since its independence in 1956. Omar al-Bashir came into power in a military coup and, following thirty years of autocratic rule, was removed in 2019 by another military coup. Following his ouster, civilian and pro-democracy leaders called for fundamental reforms of the security sector, but Sudan continues to struggle with attempts at reform.

During the transition to democracy since 2019, the SAF and RSF have both cooperated and competed with one another for power in the country. For example, in an October 2021 coup ousting Sudan’s civilian leadership led by then-Prime Minister Abdalla Hamdock, the SAF and RSF joined forces with an array of Sudan’s armed movements and marginalized groups. At the same time, the RSF and SAF compete with each other behind the scenes to retain as much economic and political power, influence, and control as possible.

Managing the tension between the SAF and RSF will be a paramount concern for Sudan’s leadership as it seeks to avoid future conflict between the security forces that could trigger greater violence. This is a key element to establishing peace, security, and sustainable development in the country while allowing for the development and modernization of Sudan’s security institutions.

Meaningful security sector reform must address the role of the SAF and the professionalization and integration of the RSF into the SAF. It must also place the security services firmly under civilian control and oversight. In the security sector, reforms to Sudan’s legal framework must include formally establishing the role of the security forces and a single national army trusted by local communities across Sudan, especially in the conflict areas of the country.

Another critical step is untangling the military institutions from the economy. This will be very difficult and will require careful planning, as the SAF and RSF currently dominate nearly all facets of political, economic, and media power in Sudan—and work to protect this influence. Civilian authorities should seize the moment and take steps to address the challenges of security sector reform in Sudan during the transition to civilian leadership. The Bashir regime created a vast array of expensive, corrupt, and ineffective security forces accused by critics of operating outside of the law, committing human-rights abuses, and creating an economy that directly benefits the security institutions—preventing more robust economic reform and development. To set the country on a better path, Sudan’s civilian leaders must enact reforms that begin to disentangle the military from the construction, telecommunication, aviation, and banking sectors.

Steps Sudan’s military and civilian leaders should take

In concert with the new civilian leadership, the military must commit to reform that helps modernize and develop the SAF. This includes ensuring that the SAF is tasked with protecting civilians and is accountable to the country’s civilian leadership. The SAF needs to be respected and not feared by those it is assigned to protect.

Civilian and military leaders must adopt legislation that addresses the specific gaps in Sudan’s transitional documents. Using the legal framework, civilian authorities should work with the military leadership to scale down the size of the SAF, find meaningful economic opportunities for former fighters, identify core priorities for its mission, and deploy a military that is able to meet the needs of the country. Sudan’s authorities should also identify funding to create and support a broad disarmament, demobilization, and reintegration strategy that avoids a sole focus on the reintegration of militia fighters and includes appropriate financial oversight.

Outside of these efforts, civilian authorities must look for ways to reform Sudan’s economy that help to disentangle the vast array of companies linked to the security services, create opportunity to improve the business environment, and send the signal to investors, banks, and credit rating agencies that Sudan is open for business. Civilian authorities must take steps to increase transparency and accountability in the illicit gold trade to disrupt illicit financial flows to Sudan’s militias, including the RSF.

As Sudan’s economy faces uncertainty due to elevated food, fuel, and transportation prices, the International Monetary Fund (IMF) and World Bank must balance the need for economic reforms in the country with the imperative to not destabilize a new civilian-led government. This government will need to walk a difficult line to implement reforms that address economic mismanagement by the SAF, the rising cost of living, and stubbornly high prices for basic goods that have further complicated efforts to secure international funding and support for the economy.

Steps the United States should take

The United States can help Sudan’s transition to democracy and help facilitate security sector reform. The 2021 National Defense Authorization Act included the Sudan Democratic Transition, Accountability, and Fiscal Transparency Act of 2020, elevating Sudan on the foreign policy agenda and sending a signal to Sudan’s new leadership that the United States is ready to support Sudan as it enacts difficult reforms. This law is an effective messaging tool, encourages a coordinated US government response to support the civilian leadership, and can direct public reporting on sensitive issues, support a sanctions regime, and show the private sector that Sudan is not open for business as usual. Policymakers can use this legislation to support Sudan’s economic reforms, stability, and oversight of the security and intelligence services in the short term while seeking to hold human-rights abusers, spoilers to the transition, and those seeking to exploit Sudan’s natural resources accountable for their actions.

Working with other countries, the United States can also play a leading role to encourage international financial institutions to carefully leverage the approval of World Bank projects, consider withholding IMF disbursements, and institute public reporting to ensure that economic and security sector reforms remain on track. The diplomatic community must continue to apply coordinated pressure on Sudan’s authorities to ensure that they follow through on their verbal commitments and work with key external actors—including the United Arab Emirates and Egypt—to encourage them to be meaningful contributors to Sudan’s democratic progress.

Sudan’s transition to democratic leadership provides another critical opportunity for security sector reform in the country. As the transitional government moves forward, Sudan’s civilian leadership can show investors, banks, and its people that greater connectedness to the global economy, a modern security apparatus, and a commitment to fighting corruption is in its long-term interest. Doing so would solidify a path toward a peaceful and democratic Sudan.


Benjamin Mossberg is the deputy director of the Atlantic Council’s Africa Center. Previously, he led US Treasury Department efforts to combat corruption, money laundering, terrorist financing, and financial crimes on the African continent.

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Egypt-Turkey normalization: Cairo’s perspective  https://www.atlanticcouncil.org/blogs/menasource/egypt-turkey-normalization-cairos-perspective/ Tue, 11 Apr 2023 18:53:01 +0000 https://www.atlanticcouncil.org/?p=635079 After a decade of ruptured ties and simmering tensions, Egypt and Turkey are inching towards a rapprochement—a move thought unimaginable by some observers a couple of years prior.

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Two of the Atlantic Council’s nonresident senior fellows assess the recent upturn in Egypt-Turkey ties. Below is the perspective from Cairo. For the perspective from Ankara, please see here.

After a decade of ruptured ties and simmering tensions, Egypt and Turkey are inching towards a rapprochement—a move thought unimaginable by some observers a couple of years prior. This thawing of relations was most recently symbolized by Turkish Foreign Minister Mevlut Cavusoglu’s visit to Cairo on March 18.  

However, the true turning point came during the FIFA World Cup opening ceremony in Qatar in November 2022, where Egyptian President Abdel Fattah el-Sisi and his Turkish counterpart Recep Tayyip Erdogan met each other briefly and engaged in a highly publicized handshake. This signaled the end of hostilities between the former rivals. Later in February, Egypt’s top diplomat Sameh Shoukry traveled to the southern Turkish city of Mersin to offer solidarity and support in the wake of massive earthquakes that hit southern and central Turkey and neighboring Syria, wreaking havoc and claiming tens of thousands of lives. These overtures and gestures were necessary to repair the mistrust and animosity that had grown over the years.

Relations between Egypt and Turkey soured in 2013 after the overthrow of Egypt’s former President Mohamed Morsi, who hailed from the Muslim Brotherhood, the Islamist movement designated as a “terrorist organization” by Cairo that very year. Morsi, a key ideological ally of Turkey’s ruling Justice and Development Party (AKP), was deposed by military-backed mass protests, later condemned as “a coup” by Turkish politicians. From that point onwards, relations between Cairo and Ankara deteriorated, and the two sides continued to trade recriminations.

Tensions between the two countries escalated in 2020, threatening to blow up into a full-fledged military confrontation after Turkey intervened militarily in Libya’s civil war—a move that drew backlash from President Sisi, who perceived it as a blatant threat to Egypt’s national security. During a visit to a military base in the Western Desert close to the Libyan border on June 22, 2020, Sisi ordered the Egyptian army to “be ready to carry out any mission outside the country”—a clear message to Ankara that he was contemplating the use of military force to defend Egypt’s Western border. Sisi’s threat came after Turkish-backed Syrian mercenaries who were fighting alongside forces of the United Nations-recognized Government of National Authority (GNA), succeeded in halting the eastward advance of opposing troops led by Libyan General Khalifa Haftar, whom Cairo backed. 

“Any military intervention in Libya would be a legitimate means of self-defense as Sirte is a red line for Egypt,” Sisi warned in reference to the strategic central Libyan city that serves as a gateway to eastern Libya, a region with vast oil reserves. Gaining control of Sirte, which lies 1,000 km (approximately 621.37 miles) away from the Egyptian border, would have meant access to nearby air bases, posing a direct threat to Egypt’s security.  

Egyptian media has welcomed the new era in Egyptian-Turkish relations but Cairo appears to be less enthusiastic than Ankara about restoring diplomatic ties and is treading cautiously. Thus with Turkish presidential elections slated for mid-May, the Egyptian leadership would rather wait until after the Turkish elections to move forward with normalization.  

The political standoff has not impacted economic and trade ties between Egypt and Turkey, which have remained robust throughout the past decade. Separating their economic exchanges from their political dispute has proved mutually beneficial: Turkish investments in Egypt amounted to an estimated $2.5 billion in 2021, and the volume of trade between the two countries nearly tripled in the period between 2007 and 2020, reaching $11.4 billion in 2020. Turkish companies across a wide range of sectors—such as electronics, textiles, and medical supplies—have continued their operations throughout, unfettered by the diplomatic rift. Nevertheless, expectations are rife that the warming of ties will reflect positively on the two countries’ ailing economies through the further bolstering of trade and investments.

Foreign Minister Shoukry has, meanwhile, conditioned the resumption of relations with Turkey on “real actions showing Turkey’s alignment with Egypt’s principles and goals.”

Cairo would like to see Turkish authorities clamp down on exiled Muslim Brotherhood members and supporters residing in Turkey and extradite fugitives accused of committing acts of violence against the Egyptian state. Additionally, it wants Istanbul-based media channels, fiercely critical of the Egyptian government, shut down.  

From Cairo’s perspective, Ankara has taken steps to show it is serious about rapprochement. In March 2021, Turkish officials urged hostile opposition channels to tone down their criticism of the Egyptian president. Not long afterwards, Mekameleen, a Muslim Brotherhood-affiliated channel notorious for its persistent lambasting of Sisi, announced the suspension of its broadcasts from Istanbul, saying it was moving its headquarters “elsewhere.”   

Another pre-condition set by Cairo for normalizing relations is non-interference by Turkey in Libya’s internal affairs. Cairo insists on the withdrawal of Ankara-backed Syrian militias in Libya, which Egypt sees as a threat. While it is highly unlikely that Ankara will acquiesce to this demand—Turkey has turned a deaf ear to earlier calls by French President Emmanuel Macron to remove all foreign troops from Libya, including those financed by Ankara—some kind of compromise may be reached, such as keeping the Turkish military advisors that were sent to Libya at the behest of the previous GNA while withdrawing the Syrian troops which Cairo labels “extremist militia.” 

Egypt’s warming up to the new unity government in Tripoli—after years of siding with opposing forces led by warlord Haftar—may pave the way for future talks with Libya and Turkey to defuse tensions over the foreign troop presence that Cairo finds unsettling.         

There is also a need for multilateral talks to de-escalate inflamed regional tensions over maritime borders: an October 2022 agreement with the unity government in Libya allowing Turkey to explore for oil and gas in an exclusive economic zone off the coast of Libya has drawn protests from Cairo and Athens—as well as other regional governments—which slammed the deal as “illegal.” 

To the chagrin of the Tripoli-based GNU, Egypt took the bold step two months later in December 2022 by unilaterally delineating its maritime border with Libya. Some analysts said the decision was “aimed at protecting Egypt’s economic interests.”   

Enhanced energy cooperation with Egypt—which has ambitions of becoming a regional energy hub and a major gas exporter to Europe and eastern Mediterranean markets—is something Cairo would welcome. Therefore, Turkey would do well to win over regional rivals by joining the East Mediterranean Gas Forum or at least by engaging with its members—a crucial step toward ironing out its differences with Greece and the Greek Cypriots. 

Finally, the Turkish offer to mediate between Egypt and Ethiopia in the Renaissance Dam dispute may serve as an olive branch that could speed up Ankara’s reconciliation process with Cairo. Serious commitment to mediation efforts between the two Nile Basin countries may allay Cairo’s concerns over the expansion of Turkish ties with Ethiopia—in particular, the sale of Turkish armed drones to Addis Ababa, which Cairo and the US fear may be used by the Ethiopian government against rebel forces in Tigray.

While the Ethiopian parliament has removed the Tigray National Liberation Front from the country’s terrorism list after the government signed a ceasefire agreement with the leftist ethnic party ruling Ethiopia’s northern region in November 2022, tensions remain high between the government and Oromo Liberation Army, an armed opposition group seeking autonomy for the country’s largest ethnic community in the Oramia region of Ethiopia. 

With all this in mind, Turkey must turn the page on past rivalries and its quest for regional influence. It should instead build on its deep-rooted social and economic ties with Egypt and shared historical heritage to start a new era of fruitful cooperation. This would very much be in the interests of the two countries and the region.

Shahira Amin is a nonresident senior fellow at the Atlantic Council’s Scowcroft Middle East Security Initiative and an independent journalist based in Cairo. A former contributor to CNN’s Inside Africa, Amin has been covering the development in post-revolution Egypt for several outlets including Index on Censorship and Al-Monitor. Follow her on Twitter @sherryamin13.

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Event with Cameroon’s Minister of economy, planning and regional development, Alamine Ousmane Mey, featured in Reuters https://www.atlanticcouncil.org/insight-impact/in-the-news/event-with-cameroons-minister-of-economy-planning-and-regional-development-alamine-ousmane-mey-featured-in-reuters/ Mon, 10 Apr 2023 18:31:04 +0000 https://www.atlanticcouncil.org/?p=637752 Read the full article here.

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Read the full article here.

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Green investment takes the lead: Japan’s revamped approach in Africa https://www.atlanticcouncil.org/blogs/energysource/green-investment-takes-the-lead-japans-revamped-approach-in-africa/ Fri, 31 Mar 2023 13:30:00 +0000 https://www.atlanticcouncil.org/?p=630460 Japan's approach to Africa is becoming more investment-based, instead of relying just on aid. Japanese companies and banks have recalibrated their strategies and are looking to advance continent-wide development.

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Countries have been trying to shift toward an investment-based approach toward Africa for at least a decade. African countries face a $100 billion annual shortfall in infrastructure financing. And while the Chinese Belt and Road Initiative outperformed the world, Chinese lending has been in decline since 2016.

Thus, the various “Africa+1” summits held in 2022 placed significant emphasis on investment and trade deals. The summit between Africa and the United States, which took place in December 2022 after an eight-year hiatus, was a result of the reframing of Africa’s importance to the United States. The Deal Room at the summit struck private sector investments and partnerships worth $15.7 billion. The UK-Africa Investment Summit emphasized the role of British businesses in enabling Africa to reap the benefits of the green industrial revolution. India, the fifth-largest investor in the continent, views the green economy as a source of new opportunities. Furthermore, in March, at the second International parliamentary Conference “Russia-Africa” in Moscow, President Putin said that Russia “has always given and would continue to give to cooperation with African countries,” with an Africa summit planned in July.

Notably, Japan also stepped up. At the Eighth Tokyo International Conference on African Development (TICAD) summit in Tunisia last summer, Japan made a $30 billion pledge, to be financed by both the public and private sectors over the next three years, surpassing its previous commitment made in 2019. The new Green Growth Initiative with Africa (GGA) was launched with a dedicated fund of $4 billion combining public and private financing, aspiring to steadily expand climate change mitigation and adaptation business through proactive investment. The initiative was accompanied by a series of memoranda of understanding (MOUs) between Japanese and African partners.

Despite Tokyo’s political commitment to Africa, trade relations with Africa have been sluggish since the beginning of the 2010s as China and India grew as economic powers. Japan’s market share fell from seventh (over 4 percent) in 2000 to seventeenth (less than 2 percent) in 2018. In 2020, Japanese Official Development Assistance (ODA) to sub-Saharan Africa accounted for only 7.8 percent of all Japanese ODA and has been on a downward trend for the past two decades. While there has been debate over increasing ODA to sub-Saharan Africa in response to the international security environment, with the larger infrastructure gap to fill today, ODA will still remain a limited tool for the growing green infrastructure financing in Africa.

The silver lining for Japan is revamped private interest toward green growth for Africa and the more flexible role of the public in incentivizing and structuring such interests.

Japanese companies with a presence in Africa see “resources/energy” as a promising business arena, doubling the percentage for “natural gas and oil,” according to a recent survey. Major trading houses that have the most local subsidiaries in Africa among Japanese companies, such as Toyota Tsusho and Sumitomo Corporation, are actively investing in renewables and green supply chains. These companies are also exploring opportunities in the green hydrogen value chain. Toyota Tsusho Corp recently acquired SoftBank’s renewable energy unit and announced “Green Economy” agreements at TICAD. The company’s Africa-based businesses doubled their sales in the past five years, reaching 1 trillion yen in 2022. Sumitomo Corporation is partnering with Namibia’s national power utility NamPower to produce ammonia from green hydrogen, with a feasibility study anticipated to be completed by the end of 2023.

Japanese commercial banking institutions have also recalibrated their interests. These interests are incubated by Africa-based institutions such as the Africa Finance Corporation (AFC), a pan-African infrastructure solution provider with an approximately $2 billion investment portfolio and a track record of making climate change adaptation and mitigation investments. AFC secured $389 million through a samurai bond, a type of bond issued in Japan by a foreign entity and denominated in yen, which offers a way for foreign issuers to access Japan’s capital market; many Japanese megabanks participated, and the issuance “was significantly oversubscribed.” Another example is Mizuho Bank—the third-largest financier by assets in Japan and the first major Japanese lender to pledge to stop financing new coal mining projects—which joined the African Hydrogen Partnership (AHP) as its first Japanese member in 2022. Mizuho signed an MOU during TICAD with Namibian Investment Promotion and Development Board for the development of an African green hydrogen hub in Namibia. With Japan as the second-biggest hydrogen patent holder (24 percent) following the EU’s 28 percent, the hydrogen economy is becoming a new frontier platform for Africa-Japan engagement. AFC and Mizuho are in agreement to co-finance infrastructure projects in Africa, and the catalytic role of Africa’s institutional partners will be key in alleviating fears over project bankability.

While Japan still lags in the mobilization of blended financing, it is becoming a viable and strategic instrument to lower risks and incentivize private interests. In particular, the mobilization of a public insurance scheme to structure financing is a critical component of the aforementioned GGA. Egypt’s future onshore wind farms near the Gulf of Suez (announced in December 2022 and March 2023) are being co-financed by a multinational consortium of banks led by Japanese public and commercial banks. These projects are part of Japan’s LEAD Initiative and will receive the highest commercial risk insurance coverage by Nippon Export and Investment Insurance (NEXI). Japan aims to formulate 1 trillion-yen scale deals in total through the LEAD Initiative portfolio by 2025. Although the LEAD Initiative is currently limited to projects in the MENA region, it has been designed to broaden project eligibility for loans, and projects may qualify for this category regardless of whether they involve Japanese exports or investments. Acceleration of this program will help de-risk projects and catalyze investments.

With Japan’s chairmanship of the G7 sure to be defined in large part by heightened concerns over energy security after one year of war in Ukraine, it is imperative that Japan maintains the momentum generated from the promises made at the 2022 TICAD and charts a distinct course from the previous decade while building relationships with countries in Africa. Japan should catalyze mechanisms to incentivize and structure green investment, such as the LEAD Initiative as laid out in the GGA, and look to build out blending financing capabilities. While challenges remain, increased private interest and a flexible public role present a positive outlook for Africa-Japan relations in the future.

Emi Yasukawa is a member of this year’s Women Leaders in Energy and Climate Fellowship at the Atlantic Council. She is the senior researcher of congressional affairs at the Embassy of Japan in Washington, DC. The views and opinions expressed in the article are those of the writer and do not necessarily reflect the views or positions of the Government of Japan.

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What to expect from the world’s democratic tech alliance as the Summit for Democracy unfolds https://www.atlanticcouncil.org/blogs/new-atlanticist/what-to-expect-from-the-worlds-democratic-tech-alliance-as-the-summit-for-democracy-unfolds/ Wed, 29 Mar 2023 17:37:06 +0000 https://www.atlanticcouncil.org/?p=630003 Ahead of the Biden administration’s second Summit for Democracy, stakeholders from the Freedom Online Coalition gave a sneak peek at what to expect on the global effort to protect online rights and freedoms.

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Ahead of the Biden administration’s second Summit for Democracy, US Deputy Secretary of State Wendy Sherman gave a sneak peek at what to expect from the US government on its commitments to protecting online rights and freedoms.

The event, hosted by the Atlantic Council’s Digital Forensic Research Lab on Monday, came on the same day that US President Joe Biden signed an executive order restricting the US government’s use of commercial spyware that may be abused by foreign governments or enable human-rights abuses overseas.

But there’s more in store for this week, Sherman said, as the United States settles into its role as chair of the Freedom Online Coalition (FOC)—a democratic tech alliance of thirty-six countries working together to support human rights online. As chair, the United States needs “to reinforce rules of the road for cyberspace that mirror and match the ideals of the rules-based international order,” said Sherman. She broke that down into four top priorities for the FOC:

  1. Protecting fundamental freedoms online, especially for often-targeted human-rights defenders
  2. Building resilience against digital authoritarians who use technology to achieve their aims
  3. Building a consensus on policies designed to limit abuses of emerging technologies such as artificial intelligence (AI)
  4. Expanding digital inclusion  

“The FOC’s absolutely vital work can feel like a continuous game of catch-up,” said Sherman. But, she added, “we have to set standards that meet this moment… we have to address what we see in front of us and equip ourselves with the building blocks to tackle what we cannot predict.”

Below are more highlights from the event, during which a panel of stakeholders also outlined the FOC’s role in ensuring that the internet and emerging technologies—including AI—adhere to democratic principles.

Deepening fundamental freedoms

  • Sherman explained that the FOC will aim to combat government-initiated internet shutdowns and ensure that people can “keep using technology to advance the reach of freedom.”
  • Boye Adegoke, senior manager of grants and program strategy at the Paradigm Initiative, recounted how technology was supposed to help improve transparency in Nigeria’s recent elections. But instead, the election results came in inconsistently and after long periods of time. Meanwhile, the government triggered internet shutdowns around the election period. “Bad actors… manipulate technology to make sure that the opinions and the wishes of the people do not matter at the end of the day,” he said.
  • “It’s very important to continue to communicate the work that the FOC is doing… so that more and more people become aware” of internet shutdowns and can therefore prepare for the lapses in internet service and in freely flowing, accurate information, Adegoke said.
  • On a practical level, once industry partners expose where disruptions are taking place, the FOC offers a mechanism by which democratic “governments can work together to sort of pressure other governments to say these [actions] aren’t acceptable,” Starzak argued.
  • The FOC also provides a place for dialogue on human rights in the online space, said Alissa Starzak, vice president and global head of public policy at Cloudfare. Adegoke, who also serves in the FOC advisory network, stressed that “human rights [are] rarely at the center of the issues,” so the FOC offers an opportunity to mainstream that conversation into policymakers’ discussions on technology.

Building resilience against digital authoritarianism

  • “Where all of [us FOC countries] may strive to ensure technology delivers for our citizens, autocratic regimes are finding another means of expression,” Sherman explained, adding that those autocratic regimes are using technologies to “divide and disenfranchise; to censor and suppress; to limit freedoms, foment fear, and violate human dignity.” New technologies are essentially “an avenue of control” for authoritarians, she explained.
  • At the FOC, “we will focus on building resilience against the rise of digital authoritarianism,” Sherman said, which has “disproportionate and chilling impacts on journalists, activists, women, and LGBTI+ individuals” who are often directly targeted for challenging the government or expressing themselves.
  • One of the practices digital authoritarians often abuse is surveillance. Sherman said that as part of the Summit for Democracy, the FOC and other partners will lay out guiding principles for the responsible use of surveillance tech.
  • Adegoke recounted how officials in Nigeria justified their use of surveillance tech by saying that the United States also used the technology. “It’s very important to have some sort of guiding principle” from the United States, he said.
  • After Biden signed the spyware executive order, Juan Carlos Lara, executive director at Derechos Digitales, said he expects other countries “to follow suit and hopefully to expand the idea of bans on spyware or bans on surveillance technology” that inherently pose risks to human rights.

Addressing artificial intelligence

  • “The advent of AI is arriving with a level of speed and sophistication we haven’t witnessed before,” warned Sherman. “Who creates it, who controls it, [and] who manipulates it will help define the next phase of the intersection between technology and democracy.”
  • Some governments, Sherman pointed out, have used AI to automate their censorship and suppression practices. “FOC members must build a consensus around policies to limit these abuses,” she argued.
  • Speaking from an industry perspective, Starzak acknowledged that sometimes private companies and governments “are in two different lanes” when it comes to figuring out how they should use AI. But setting norms for both good and bad AI use, she explained, could help get industry and the public sector in the same lane, moving toward a world in which AI is used in compliance with democratic principles.
  • Lara, who also serves in the FOC advisory network, explained that the FOC has a task force to specifically determine those norms on government use of AI and to identify the ways in which AI contributes to the promise—or peril—of technology in societies worldwide.

Improving digital inclusion

  • “The internet should be open and secure for everyone,” said Sherman. That includes “closing the gender gap online” by “expanding digital literacy” and “promoting access to safe online spaces” that make robust civic participation possible for all. Sherman noted that the FOC will specifically focus on digital inclusion for women and girls, LGBTI+ people, and people with disabilities.
  • Starzak added that in the global effort to cultivate an internet that “builds prosperity,” access to the free flow of information for all is “good for the economy and good for the people.” Attaining that version of the internet will require a “set of controls” to protect people and their freedoms online, she added.
  • Ultimately, there are major benefits to be had from expanded connectivity. According to Sherman, it “can drive economic growth, raise standards of living, create jobs, and fuel innovative solutions” for global challenges such as climate change, food insecurity, and good governance.

Katherine Walla is an associate director of editorial at the Atlantic Council.

Watch the full event

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Country spotlight: Unlocking a high-energy future for Zambia https://www.atlanticcouncil.org/blogs/energysource/country-spotlight-unlocking-a-high-energy-future-for-zambia/ Tue, 28 Mar 2023 14:46:16 +0000 https://www.atlanticcouncil.org/?p=629051 Smart private sector investment in Zambia could drive a high-energy, high-growth future as the country reforms. This could make Zambia a model for neighboring countries looking to advance their own energy transformations.

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With renewed commitment to democratic principles, growing bilateral relationships with high-income countries, abundant clean energy potential, and critical resources necessary for the global energy transition, the country of Zambia is well positioned to leverage its strengths to build a low-carbon, reliable energy system to spur economic growth and close the poverty gap. President Hakainde Hichilema’s landslide victory over former President Edgar Lungu in August 2021 has placed Zambia back on a path towards inclusive economic growth through attempts to restructure debt, promotion of private sector interest in infrastructure and energy investments, and delivery of economic opportunities to rural communities across the country, where over half of the population lives below the poverty line. Given these developments, Zambia poses a model for expanded collaboration between African economies, the United States, and other allies, with partnership attributes which can be replicated elsewhere on the continent. 

Zambia has 2,800 megawatts (MW) of installed electricity generation capacity, with 85 percent of the electricity mix derived from hydropower, and  31 percent of the population has access to energy—the majority being in urban areas. The global disruptions to expected rainfall patterns, linked to the effects of climate change, has directly affected Zambian hydropower. Zambia’s loadshedding challenges made news this past December as their public utility, ZESCO, announced that consumers would experience up to twelve hours of loadshedding a day because of critically low water levels at the Kariba Dam, on the border of Zambia and Zimbabwe. During this time, the dam on Zambia’s side of the border could not deliver even 40 percent of its 1,080 MW capacity, crippling the country’s ability to deliver energy to consumers.

There are notable low-hanging fruits in the development of Zambia’s electricity mix. While Zambia has the potential to generate 2,300 MW of solar and 3,000 MW of wind, only 76 MW of solar has been installed and no wind power to date. And while 67 percent of the urban population has access to energy, the connection is disrupted frequently due to loadshedding and service disruption caused by aforementioned low water levels in hydropower stations. While the rains in early February assisted in shoring up water levels, climate change will continue to impact rainfall levels and create future problems in energy generation unless the energy mix diversifies.

Attracting low-capital cost investment for new energy projects has, until recently, been a challenge. President Hichilema took office shortly after Zambia became the first African country to default on its sovereign debt in 2020 during the COVID-19 pandemic and found that his predecessors had accumulated $30 billion in unserviceable debt. Much of Zambia’s borrowing under former President Lungu’s leadership was part of China’s Belt and Road Initiative (BRI), from which Zambia received $5.23 billion in the energy sector alone. The BRI led to considerable expansion of infrastructure and nearly a two-fold increase in electricity consumption over the previous decade, but left the country unable to balance its payments. 

Recognizing the need to diversify Zambia’s energy grid, the government has been working towards securing private sector investment to deploy solar projects throughout the country to close the energy poverty gap. The government has outlined a plan to achieve universal access to energy for all Zambians by 2030 by bringing additional solar, hydro, geothermal, and thermal energy online.

While developed nations look to decarbonize, countries in sub-Saharan Africa, including Zambia, will need significantly more energy to power a high-growth society and achieve development goals. The vast majority of Zambia’s population is comprised of smallholder farmers, producing 80 percent of the country’s agricultural production. That same population is the most vulnerable to climate change impacts, as they rely on rain-fed agriculture. The process of realizing Zambia’s breadbasket potential will require a shift from traditional to modern farming practices, which will require significantly more energy to drive irrigation development and the mechanization of agricultural production. Furthermore, Zambia’s economy has the potential to expand its raw materials sector, and to bolster its GDP by adding value to its products through increased processing and smelting of minerals within Zambia’s borders. Doing this will require more power, and importantly, in continuous supply. 

Positively, Zambia has received a recent wave of investment in its power infrastructure, a result of Hichilema welcoming foreign investors and independent power producers. A few notable investments and memoranda of understanding (MOUs) have been announced by key partners from around the world, positioning Zambia as a high prospect for low-carbon energy investments and unlocking opportunities to deliver investments in 24/7 clean electricity systems necessary to power industrial activity such as minerals processing. A few weeks ago, seven British companies announced an investment commitment of $2 billion in renewable energy projects in Zambia, to produce 1,500 MW of clean energy. Earlier this year, ZESCO and the United Arab Emirates’ Masdar signed an MOU to develop solar projects worth $2 billion, meant to generate 2,000 MW. This investment, labeled a “capital injection” by President Hichilema, will nearly triple Zambia’s electric capacity in combination with the investment from the British coalition. Critically, these investments will bolster the Zambian grid’s ability to generate electricity at times when hydropower generation is low and solar irradiance is high.

Providing commitments to develop Zambia’s energy infrastructure is not a matter of aid or charity. It has the potential to bring Zambia into the fold of the global economy—a process which adds value for Zambians and Zambia’s trade partners—and provide critical inputs to the global energy transition.

Recognizing this, during the US-African Leaders Summit hosted by the Biden Administration this past December, the United States, the Democratic Republic of the Congo (DRC), and Zambia signed an MOU to strengthen cooperation to develop a cross-border integrated electric vehicle (EV) battery value chain. This MOU is a welcome example of the form of partnership which the United States and allies should adopt in their commercial partnerships with African nations. Notably, the MOU expresses a desire to support the DRC and Zambia in developing economic activity within the EV battery value chain from the mine to the assembly line, not solely in the extraction of raw materials. Such a partnership provides an area for the US private sector to share knowledge and provide project development services and enable local industry and capacity to grow while firming global supply for critical materials and technologies for the energy transition, a win for all partners involved. 

Zambia, as well as other countries across the continent, has held recent high-level diplomatic visits to establish a stronger relationship between the United States and Africa. Secretary of Treasury Janet Yellen visited Zambia in January, and Vice President Kamala Harris has just begun her tour on the continent which includes a stop in Zambia. The trips to the continent have highlighted the US’s mutual interests in strengthening Africa’s security and economic prosperity, but discussions surrounding energy development, the backbone of a prosperous future in Africa, have remained vague. While the diplomatic engagements are notable, the trips should place a heavier emphasis on opportunities for the United States to further strengthen energy development throughout the continent, a critical missing link in driving economic growth and expanding opportunity for communities in Zambia and elsewhere on the continent.

As debt-burdened African nations expand engagement with higher-income countries beyond aid, Zambia serves as an important case study on opportunities to attract investor interest in energy development. In order to keep momentum up, investment transparency and translating MOUs into action will be critical to accelerate progress on achieving sustainable development goals. Notably, the investor interest that Hichilema’s administration is attracting is a positive signal for neighboring countries by showing the outcomes that are associated with a commitment to good governance.

Maia Sparkman is an assistant director at the Atlantic Council Global Energy Center.

William Tobin is a program assistant at the Atlantic Council Global Energy Center.

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Episode Seven – Dr. Nasredeen Abudlbari https://www.atlanticcouncil.org/insight-impact/in-the-news/episode-seven-dr-nasredeen-abudlbari/ Mon, 27 Mar 2023 20:20:40 +0000 https://www.atlanticcouncil.org/?p=628866 The post Episode Seven – Dr. Nasredeen Abudlbari appeared first on Atlantic Council.

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Pavia in Foreign Policy in Focus: What’s behind Spain’s about-face on Western Sahara https://www.atlanticcouncil.org/insight-impact/in-the-news/pavia-in-foreign-policy-in-focus-whats-behind-spains-about-face-on-western-sahara/ Fri, 24 Mar 2023 17:31:12 +0000 https://www.atlanticcouncil.org/?p=628127 The post Pavia in Foreign Policy in Focus: What’s behind Spain’s about-face on Western Sahara appeared first on Atlantic Council.

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Pavia in DAILY SABAH: Russia’s Wagner Group in Africa: Growing concerns of the West https://www.atlanticcouncil.org/insight-impact/in-the-news/pavia-in-daily-sabah-russias-wagner-group-in-africa-growing-concerns-of-the-west/ Fri, 24 Mar 2023 17:30:49 +0000 https://www.atlanticcouncil.org/?p=628122 The post Pavia in DAILY SABAH: Russia’s Wagner Group in Africa: Growing concerns of the West appeared first on Atlantic Council.

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Pavia joins Il Post to discuss Tunisia’s democratic backsliding   https://www.atlanticcouncil.org/insight-impact/in-the-news/pavia-joins-il-post-to-discuss-tunisias-democratic-backsliding/ Fri, 24 Mar 2023 17:30:15 +0000 https://www.atlanticcouncil.org/?p=628210 The post Pavia joins <em>Il Post</em> to discuss Tunisia’s democratic backsliding   appeared first on Atlantic Council.

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Russia’s Black Sea blockade is part of Putin’s war on international law https://www.atlanticcouncil.org/blogs/ukrainealert/russias-black-sea-blockade-is-part-of-putins-war-on-international-law/ Wed, 22 Mar 2023 23:46:50 +0000 https://www.atlanticcouncil.org/?p=627534 By preventing the free passage of merchant shipping in the Black Sea, Russia deprives world markets of vital Ukrainian agricultural produce while also challenging the core principles of international maritime law.

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On March 18, the UN announced an extension to the Grain Deal, an agreement brokered in summer 2022 which allows for limited amounts of Ukrainian grain to be exported to global markets via the country’s blockaded Black Sea ports. This is good news. However, within days, it became clear that Russia wanted further concessions and was only prepared to prolong the deal for a limited period of 60 days. Once again, we were reminded of how Moscow seeks to weaponize global food security in order to hold the international community hostage.

The blockade of Ukraine’s Black Sea ports began on the eve of Russia’s full-scale invasion in February 2022. It aims to break Ukraine economically by undermining the country’s position as one of the world’s leading agricultural exporters. The impact of the blockade goes beyond Ukraine and is global in scale. By preventing the free passage of merchant shipping in the Black Sea, Russia deprives world markets of vital Ukrainian agricultural produce while also challenging the core principles of international maritime law.

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From the very beginning, Russia’s attack on Ukraine has always gone beyond the boundaries of conventional military operations and attempted to strike at Ukraine’s very ability to exist as a functioning state. Russian troops have systematically destroyed vast swathes of farmland and made Ukraine the most mined country in the world. For the past six months, Russia has conducted a campaign of airstrikes targeting Ukraine’s civilian infrastructure in a bid to deprive Ukrainians of access to heating, electricity, and water supplies. The maritime blockade is another element in this war against Ukrainian statehood.

The suffering inflicted by Russia’s brutal invasion is not restricted to Ukrainians. According to the country’s Ministry of Infrastructure, more than 400 million people in Asia and Africa face the prospect of mounting food insecurity as a result of Russian efforts to restrict Ukrainian agricultural exports. While the current Grain Deal goes some way to countering this threat, it offers only a partial and short-term solution. Much more is needed in order to improve global food security and reaffirm the right to free passage for merchant shipping in international waters.

It is clearly in the interests of the international community to work toward ending Russia’s Black Sea blockade. First and foremost, this would lead to dramatically improved food security for many of the world’s most vulnerable communities. The resumption of maritime trade in the Black Sea would also provide the Ukrainian economy with approximately $20 billion in additional annual revenues. This would significantly reduce the economic burden on Ukraine’s partners and international financial institutions, which are now being asked to prop up the struggling Ukrainian economy indefinitely. Renewed merchant shipping would also be good for other economies, allowing Ukraine to resume imports worth tens of billions of dollars in 2021.

Ukrainians understand that there is no international appetite for any direct military intervention to break Russia’s Black Sea blockade. Nevertheless, there are numerous other tools available to the international community that could be used to pressure Moscow. The most obvious measures would include additional sanctions and restrictions targeting Russian shipping.

This approach has yet to be fully explored. At present, Russian ships are not subject to the same checks and inspections that Ukrainian vessels must undergo in line with the terms of the Grain Deal. Instead, they are free to continue their international trade unhindered. Over the past year, Russia has reportedly increased its maritime exports by more than a quarter. At the same time, there have been numerous accusations made against Russian vessels for allegedly shipping military cargoes, including in contravention of the 1936 Montreux Convention governing maritime passage through the Bosporus and Dardanelles Straits in Turkey.

By blockading Ukraine’s Black Sea ports, Russia is violating the United Nations Convention on the Law of the Sea (UNCLOS) and the UN Charter. In response, Ukraine is calling on the International Maritime Organization (IMO) to force Russia to unblock the country’s sea ports. The IMO must use its powers as a UN agency to hold Russia accountable for violating the UNCLOS, and must be ready to impose suitable sanctions measures if Moscow refuses to comply.

Russia’s invasion of Ukraine has created a wide range of fundamental challenges to the rules-based international order that first emerged from the ashes of World War II. This is very much part of Putin’s plan. He wishes to return the world to an era when a handful of major powers were able to dictate to their weaker neighbors.

One of the many front lines in this geopolitical confrontation is the maritime front. Putin seeks to bankrupt Ukraine and overcome international opposition to his war by weaponizing agricultural exports. He does so in clear violation of international maritime law. If he succeeds, other autocrats will take note and adopt similarly aggressive tactics, with potentially catastrophic consequences for global trade. Ending Russia’s Black Sea blockade will not be easy and will require considerable political courage, but failure to do so will lead to rising costs in the years to come.

Oleksiy Goncharenko is a Ukrainian member of parliament with the European Solidarity party.

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Sullivan quoted in VOA News on the impact of the war in Ukraine on Egypt https://www.atlanticcouncil.org/insight-impact/in-the-news/sullivan-quoted-in-voa-news-on-the-impact-of-the-war-in-ukraine-on-egypt/ Sat, 18 Mar 2023 18:08:50 +0000 https://www.atlanticcouncil.org/?p=630747 The post Sullivan quoted in VOA News on the impact of the war in Ukraine on Egypt appeared first on Atlantic Council.

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Essential but unevenly distributed: IMF’s response to sovereign debt and financial crises https://www.atlanticcouncil.org/blogs/econographics/essential-but-unevenly-distributed-imfs-response-to-sovereign-debt-and-financial-crises/ Wed, 15 Mar 2023 16:11:28 +0000 https://www.atlanticcouncil.org/?p=623836 The IMF's response to today's multifaceted challenges will require broader financing support.

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The global economy will face serious debt challenges in 2023 and onwards. As seen in Figure 1, public debt has risen over the past decade. The pandemic, Russia’s invasion of Ukraine, and rapid rate hikes by the Federal Reserve and other major central banks have only made matters worse—especially in low and middle-income economies. According to an International Monetary Fund (IMF) report, debt vulnerabilities are rising across many economies.  

Fifty-three economies—including Argentina, Egypt, Pakistan, and Nigeria—are in an especially fragile condition because they have either defaulted on some of their debts, or have debt levels that the IMF considers unsustainable. Given their 5 percent share in the global economy, this may not sound alarming. However, considering the contagion phenomenon in financial markets—and the fact that these fifty-three economies are home to about 20 percent of the world’s population—debt distress, and its social, political, and economic ramifications could pose serious threats to the global economy. Acknowledging these dire conditions, the IMF has redoubled its efforts to help its member countries avoid the worst of debt crises.  

How does IMF financial assistance work? 

The IMF’s financial assistance is intended to provide financial support for countries that are experiencing or at risk of financial crises, including balance of payment (BoP) crises, banking crises, currency crises, or external/internal debt crises. The IMF’s financial assistance provides breathing space for governments to devise and gradually implement corrective policies. Hence, the IMF’s financial assistance is always associated with a set of reform policies tailored for the country in crisis. These may include monetary policy and exchange rate policy reforms, and other sets of economic-wide reforms broadly referred to as Structural Adjustments or Reforms. By implementing these reforms, the country is expected to restore long-run financial stability and growth in its economy and rebuild domestic and foreign investors’ faith in the country’s economy.  

Table 1 provides a breakdown of the IMF’s financial assistance accounts and types. Broadly speaking, IMF financial assistance can take three forms. First is lending at an interest rate determined by the average of interest rates in world major currencies. Loans extended under the General Resources Account (GRA) are of this type. Second is lending at concessional terms which are extended at very low or no interest rates to low-income economies. Financial assistance through the Poverty Reduction and Growth Trust (PRGT) falls under this category. The third form of IMF financial assistance is through the Catastrophe Containment and Relief Trust (CCRT). This is a debt relief grant for heavily indebted, low-income economies facing debt distress and financial turmoil. Figure 2 shows the value of all IMF financial assistance between 2020 and 2022 for each type and recipient country. More than three-quarters of all IMF financing during the 2020-22 period was through the Flexible Credit Line (58 percent of the total) and the Extended Fund Facility (19 percent of the total). 

Latin America and the Caribbean have been the IMF’s largest clients. 

In fiscal year (FY) 2022, the IMF provided $113 billion of financial assistance to twenty three of its member countries, 90 percent of which is dedicated to Latin American and Caribbean economies. Two economies in Latin America accounted for $91 billion (or 80 percent of the IMF’s financial assistance in 2022): Argentina with $43 billion and Mexico with $48 billion. FY2022 was not an anomaly in the IMF’s financial assistance pattern. As seen in Figure 3, 71 percent of all IMF financial assistance between 2020-22 (including FCL) was allocated for the Latin America and Caribbean region.

However, it is important to note that the type of financial assistance IMF has provided in the form of FCL —for example to Mexico and Columbia— is drastically different in nature from the assistance provided to Argentina in the form of EFF. In particular, FCL is designed as a crisis-prevention and crisis-mitigation credit line for countries that have strong policy frameworks and solid track records in their economic performance. Hence, the country may or may not decide to use all or even a portion of this line of credit that is allocated to them. For example, Mexico has drawn nothing from the total amount of 80.214 billion SDR made available to them through FCL facility between 2020 and 2022. In contrast, Argentina has drawn 17.5 billion SDR from the 31.914 billion SDR EFF assistance provided to them. It must be noted here that IMF extends EFF to a country facing major medium-term BoP challenges because of various structural issues that will necessitate some time to address. IMF’s lending commitments site provides updated detailed information on the type and amount of assistances IMF has allocated for each member country from its first day of inception, the amount drawn from the allocated funds, and the outstanding balances.    

After Latin America, the Sub-Saharan Africa region is the IMF’s main client. It is followed by a few countries in other regions such as Egypt in the Middle East and North Africa, and Pakistan in South Asia, which are highlighted in Figure 4.

The IMF should reexamine the uneven distribution of its financial resources.

The case in hand is the IMF’s uneven response to economies in Latin America versus those in Sub-Saharan Africa. While both regions suffer frequently from debt and BoP crises, Latin American economies tend to get larger IMF packages than African economies, even when their IMF quotas are considered. For example, Argentina’s most recent IMF package (arranged March 25 2022) was about $43 billion, which is about 1,000 percent of its quota and $950 million per capita. Moreover, program aimed to help Argentina repay its outstanding IMF debt from an unsuccessful 2018 $57-billion IMF program.  

In contrast, Zambia’s most recent IMF package (approved August 31 2022) was about $1.3 billion, or 100 percent of its quota and about $73 million per capita. A careful look at the IMF’s financial assistance history will surface many more such examples of potentially uneven treatment. Pakistan and Egypt are two other countries that have received substantial and frequent financial assistance from the IMF over the past decades while other countries in their respective regions have had less luck in that front.  While citizens and policymakers in Latin America, Pakistan, and Egypt may reject the notion that the IMF has treated them favorably over the years, a close look at other countries such Sri Lanka and Lebanon provides a glimpse of what could happen to economies in crises when IMF assistance is not immediately there to support them.  

Conclusion 

The global economy is facing multifaceted challenges that are increasingly interconnected and transnational in nature. Bretton Woods Institutions, such as the IMF and the World Bank, are tasked with addressing many of these challenges—including the debt distress faced by many low income and emerging economies. However, as shown above, their responses to crises have not been equitable across different regions and countries. As firefighters of the global economy, these institutions should respond to crises on equitable terms across all their members. Otherwise, they risk being viewed as politically motivated, undermining their effectiveness and relevance in the governance structure of the global economy and financial relations.  

Recent debt relief grants allocated to many low-income economies in Sub-Saharan Africa through the CCRT and the last month’s visit of IMF’s managing director, Kristalina Georgieva, to Africa and engaging with African leaders are steps in the right direction. However, they must be followed by more favorable and creative financing schemes for debt-distressed low-income African economies, where debt vulnerabilities were exacerbated by the global pandemic and skyrocketing global food and energy prices. 


Amin Mohseni-Cheraghlou  is a macroeconomist with the GeoEconomics Center and leads the Atlantic Council’s Bretton Woods 2.0 Project. He is also an assistant professor of economics at American University in Washington DC. @AMohseniC

At the intersection of economics, finance, and foreign policy, the GeoEconomics Center is a translation hub with the goal of helping shape a better global economic future.

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Ukraine must do more to counter Russian narratives in the Global South https://www.atlanticcouncil.org/blogs/ukrainealert/ukraine-must-do-more-to-counter-russian-narratives-in-the-global-south/ Tue, 14 Mar 2023 19:24:38 +0000 https://www.atlanticcouncil.org/?p=623472 While Ukraine enjoys overwhelming support from the West, the Global South remains reluctant to oppose or even criticize Russia's ongoing invasion. Ukraine must do more to influence opinion in Asia, Africa, and Latin America.

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More than one year since Vladimir Putin launched the full-scale invasion of Ukraine, international reaction to the war remains sharply divided. While much has been made of Western unity in support of Ukraine, the rest of the world has been largely unwilling to oppose or even condemn Russia in any meaningful way.

This is not just a matter of winning UN votes and scoring political points at international forums. The reluctance of countries throughout the Global South to join Western sanctions significantly undermines efforts to isolate Russia, while providing Moscow with the financial and material lifelines to maintain the war in Ukraine indefinitely.

Attitudes in the Global South toward Russia’s Ukraine invasion are being shaped by a range of factors including economic and geopolitical interests along with widespread suspicion of American foreign policy and historic anti-Western sentiment dating back to the colonial era. Russia has skillfully exploited this post-colonial perspective by framing the invasion of Ukraine as a reaction to what it terms as yet more expansionist Western interference. As the war enters its second year, Ukraine should be doing much more to engage these non-Western audiences and make its voice heard.

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Ukraine has limited experience of rallying international support and has previously focused its efforts almost exclusively on the West. In the three decades since the country regained independence, Ukrainian politicians, activists, and journalists have spent comparatively little time communicating with people in Latin America, Africa, and Asia, where awareness of Ukraine is still often minimal. Ukraine now needs to develop a strategy that can rally the nations of the non-Western world to its side.

First of all, it is absolutely crucial to keep Ukraine at the heart of the debate. Across the Global South, it is common to witness public discussions about the Russian invasion that barely address Ukraine at all. Instead, the focus is frequently on Western colonialism, globalization, and other broad geopolitical themes. Ukrainians should not hesitate to insist that conversations about their country’s plight not get sidetracked by extraneous historical grievances.

Over the past year, Ukraine’s limited efforts to influence opinion in the Global South have concentrated on highlighting the imperial ambitions underpinning Putin’s current invasion while raising awareness of Russia’s own long history of colonialism as a major European empire. This approach certainly makes some sense, but too much emphasis on Russia’s colonial past risks shifting the conversation away from today’s Ukraine.

Another important ingredient shaping the debate in the Global South is the role played by the Soviet Union as a supporter of anti-colonial liberation movements during the second half of the twentieth century. Putin’s Russia has made much use of this favorable Soviet legacy, using it to garner goodwill and to emphasize its own anti-Western credentials. This ignores the obvious imperialism of the USSR itself, and overlooks the fact that Soviet-era Ukraine also contributed significantly to liberation movements throughout Africa and Asia.

While it is essential for Ukrainians to correct the historical record regarding Russian imperialism, it is also vital to stress Ukraine’s current importance for the Global South. First and foremost, this means highlighting Ukraine’s status as one of the world’s emerging agricultural superpowers and a major prewar contributor to global food security.

As Ukraine seeks to influence opinion among non-Western audiences, the country must make maximum use of its limited resources. For example, officials in Kyiv should be doing much more to engage with the thousands of professionals throughout Africa, Asia, and Latin America who studied at Ukrainian universities before going on to have careers in their homelands. This pool of alumni is a potentially significant but largely untapped resource that could bring a degree of authenticity to the debate due to their personal experience of Ukraine.

Ukrainian nationals with family ties to the Global South can also contribute to greater international understanding of the issues at stake in today’s Ukraine. As one of the most prominent members of the Afro-Ukrainian community, politician and Olympic champion wrestler Zhan Beleniuk traveled to Africa in late 2022 as part of Ukraine’s fledgling outreach efforts. Others with similar backgrounds should be encouraged to speak up on behalf of Ukraine.

Ukraine’s success in shaping opinion throughout the Global South will hinge largely on the country’s ability to engage with the media. This is one area where the Kremlin enjoys overwhelming advantages. While Russia’s RT and Sputnik platforms have limited reach and minimal credibility among Western audiences, they enjoy considerable prominence and are often well-received in much of Asia, Africa, and Latin America.

Ukraine cannot hope to compete with the Kremlin’s billion dollar media budgets and must instead build relationships with existing local mainstream media. Brazil’s TV Globo is the second-largest commercial TV network in the world and can bring Ukrainian perspectives to huge domestic Brazilian audiences. Likewise, engagement with Spanish-language channels can help reach millions across Latin America. A comprehensive media strategy is needed in order to close the information gap and counter the current dominance of Russia’s narratives in the non-Western information space.

Ultimately, the truth is on Ukraine’s side. The good news it that there is very little evidence of actively anti-Ukrainian sentiment in today’s Global South. It should be entirely possible to persuade far more people that Ukraine’s cause is righteous and worthy of support. However, this will require a concerted effort that is currently lacking. Simply telling non-Western audiences that the Russians are also imperialists may be satisfying, but it is not nearly enough.

Mitchell Polman is a public diplomacy and international relations commentator.

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The US has gotten the day to day right in Africa policy. Time to think bigger. https://www.atlanticcouncil.org/blogs/africasource/the-us-has-gotten-the-day-to-day-right-in-africa-policy-time-to-think-bigger/ Mon, 13 Mar 2023 18:25:38 +0000 https://www.atlanticcouncil.org/?p=618328 The Biden administration’s commitment to high-level engagement with African leaders is welcome, but its recent US-Africa Leaders summit should have been a launch pad for big, bold ideas.

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Summits, conferences, fora. Whatever one calls the gatherings, summitry has defined Africa policy globally for decades. Japan was a pacesetter, inviting African governments to the first Tokyo International Conference on African Development (TICAD) in 1993 and hosting a steady drumbeat of Africa summits ever since. The most recent took place in August and featured more than twenty African leaders. The European Union and China quickly caught up, convening their first Africa summits in 2000: the European Union-African Union (EU-AU) Summit and the Forum on China-Africa Cooperation (FOCAC), respectively. Over the past year alone, there was a sixth EU-AU Summit, an eighth TICAD, and a second US-Africa Leaders Summit. A second Russia-Africa Summit and a fourth Turkey-Africa Partnership Summit are set for later this year, and the ninth FOCAC arrives in 2024.

Summits are about announcements. In the days and months prior to these splashy events, there is always a mad dash to gather success stories and draft up new—at times purely aspirational—funding commitments. The recent US-Africa Leaders Summit in December is a case in point, featuring a large number of announcements, some new and some repackaged. It also included some sizable financial commitments to African markets, albeit with a little creative accounting that makes it difficult for even the most assiduous US-Africa policy watchers to make sense of what’s new and what is repackaged. (See one attempt in the chart below.)

Two solid successes and continued momentum

The three-day US-Africa Leaders Summit in December brought together high-level delegations from forty-nine African countries and the AU, along with business and civil society leaders. The summit was part of an overall new Africa strategy authored by Judd Devermont, the special assistant to the president and senior director for African affairs at the National Security Council. The strategy has returned US-Africa policy to the basics, including consistent high-level diplomatic engagement between US and African leaders—and US President Joe Biden pledged at the summit to continue to make that engagement a priority.

The Biden administration is thus far making good on this promise. Treasury Secretary Janet Yellen and Ambassador to the United Nations Linda Thomas-Greenfield have already made official visits to the continent in 2023. Vice President Kamala Harris will travel to Ghana, Tanzania, and Zambia from March 26 to April 1, and Commerce Secretary Gina Raimondo will visit the continent this summer. Devermont has long argued for this type of consistent, high-level engagement, and it is refreshing to see it operationalized. Regular, high-level engagement has long been a staple of how the United States approaches other regions of the world and it is important that African nations continue to be integrated into the broader, day-to-day practice of US diplomacy. He reiterated this view during his recent visit at the Atlantic Council. “If we are going to solve problems in the world, if we are going to come up with creative solutions, it is going to be with our African partners,” he said. “The summit was just a kick off.”

Biden’s focus on the diaspora was another important aspect of the US-Africa Leaders Summit, with diaspora interests and concerns highlighted across sectors and in multiple fora. The African diaspora in the United States distinguishes and enriches US-Africa ties from those of global competitors and should remain a centerpiece of US policy toward the continent. The summit also served as the launching pad for the President’s Advisory Council on African Diaspora Engagement in the United States, a new initiative that follows in the footsteps of the Obama administration–established President’s Advisory Council on Doing Business in Africa. The new initiative should help ensure the diaspora has a seat at the table in shaping US policy toward the continent.

The summit also gave additional momentum to US efforts to support digitization in African markets. While hugely important and widely supported across the US-Africa policy community, Biden’s new flagship Africa initiative—Digital Transformation with Africa—simply builds on old programs such as the US International Development Finance Corporation’s Connect Africa and the US Trade and Development Agency’s Access Africa (among others with overlapping mandates). In its new form, the initiative intends to invest $350 million in the digital sector, but it will require congressional support.

Big ideas for US-Africa policy

The Biden administration’s summit could have been a launch pad for big, bold ideas, but here it fell short. Instead of repackaging existing programs, the Biden administration, working with Congress, should champion new initiatives that match US competitiveness with African opportunity while deepening US-Africa relations. Here are three ideas:

  • Create a US Commercial Corps as a corollary to the US Peace Corps that would send recent graduates or retired volunteers to emerging markets to work alongside Prosper Africa embassy deal teams on commercially related engagements. The potential benefits of such a program are numerous, including advancing people-to-people diplomacy, supporting US government personnel across the continent with business acumen and commercial expertise, and creating a cadre of US business professionals with working experience in emerging markets who will enhance long-term US competitiveness on the international stage. Six decades of the Peace Corps has yielded CEOs, members of Congress, and community leaders with lasting ties and relationships across the Atlantic. A Commercial Corps could do the same for US-Africa commercial relations.
  • Prioritize partnerships in the creative industries by establishing an advisory council modeled on the Presidential Advisory Council on Doing Business in Africa and the newly minted President’s Advisory Council on African Diaspora Engagement. This new council would link company executives from the music, film, and fashion industries in the United States and across Africa with financiers and key US government stakeholders to drive investment into Africa’s creative industries. Building on the work of the Africa Center’s Task Force and efforts being made by Afreximbank, the council could focus on creating the linkages needed–particularly around financing growth in the sector.
  • Support sustained capacity-building in climate finance. The Atlantic Council’s Millennium Leadership program runs an accelerator for climate finance leaders, for example. Additionally, the International Finance Corporation and Milken Institute are now in their seventh year of a unique training program that brings mid-career professionals from finance ministries, central banks, and stock exchanges to the United States to deepen their experience with capital markets. Since 2016, 160 professionals have participated in the program from nearly fifty countries, the majority in Africa, and strong working relationships have been created that deepen regional integration. The Biden administration could partner with them to expand the effort to focus on climate finance or bring others to the table such as Bloomberg Green, the Rocky Mountain Institute, and leading US and European universities to design a best-in-class program. African countries are home to some of the world’s most important natural assets, including the Congo Basin, and they need to ensure that their finance executives—both in the public and private sectors—have access to the best thinking and skills when it comes to ensuring sustainable growth.

The Biden administration’s return to summit diplomacy is a welcome development, and the commitment to consistent, high-level engagement with African leaders is being demonstrated month by month. Still, given the potential of the world’s youngest continent and the growing role African nations will play in global affairs in the coming decades, the United States needs to be bolder and more creative with initiatives that create lasting structural change in US-Africa relations.

A summary of key summit takeaways–some old, some new, some questions remain

The chart below is a first effort by the author to track and categorize the summit commitments in order to stimulate further discussion. 

Aubrey Hruby is a co-founder of Tofino Capital, a senior fellow at the Atlantic Council’s Africa Center, and an adjunct professor at Georgetown University.

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How genealogy can help restore historical ties through meaningful diaspora engagement https://www.atlanticcouncil.org/blogs/africasource/how-genealogy-can-help-restore-historical-ties-through-meaningful-diaspora-engagement/ Thu, 09 Mar 2023 22:13:31 +0000 https://www.atlanticcouncil.org/?p=621378 If the United States truly wants to embrace the African diaspora, it must create policies that promote the digitization of records and the creation of databases that are affordable and accessible to the public.

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Genealogy—the study of families, their lineages, and histories—has been around for centuries. As technology has advanced, it has become more accessible and easier to do. In the United States, which hosts an African diaspora that is eager to know more about its origins, prominent African American figures—such as US Congressman Gregory Meeks and US Ambassador to the United Nations Linda Thomas-Greenfield—have recently shared their ancestry through DNA testing, highlighting the importance of genealogy and DNA testing to understand one’s identity and culture.

World Genealogy Day is on March 11 this year, and it serves as a reminder that genealogy is important for any individual or family. Yet, it is perhaps even more important for societies and communities that have been shaped by forces that have taken them far from their roots. For global Africans, like me, genealogy is a valuable resource that can promote greater insight, connectedness, and cultural preservation.

‘Global Africa’—as defined by various academics and scholars like W.E.B. Du Bois, Henry Louis Gates Jr., Robin D.G. Kelly, and Kwame Anthony Appiah—refers to the concept of a transnational and interconnected African diaspora that exists beyond the continent of Africa. It acknowledges the cultural, economic, and social ties that connect people of African descent around the world, including those in the Americas, Europe, Asia, Latin America, and the Caribbean. The term Global Africa recognizes that the history, culture, and experiences of African people have been heavily impacted by colonialism, slavery, and immigration. It also highlights the diverse contributions that people of African descent have made to various fields, such as literature, music, art, and politics, and underscores the importance of building solidarity among different communities of African descent to address shared challenges and promote mutual understanding.

If the United States truly wants to embrace the African diaspora that resides there, as stated at the US-Africa Leaders’ Summit, it must reduce the prices to access genealogy records, increase public awareness campaigns to help young people everywhere to learn about their ancestors, and foster economic ties that can grant the diaspora freedom to travel and explore their genealogy first-hand.

Journey through time

I used DNA services and genealogy platforms to trace my family lineage. Through years of research and accessing free records on websites like Slave Voyages and the Freedmen’s Bureau of the National Archives, I was able to piece together my family’s story going back six generations: from the 1700s to the present day. From my research, I discovered that my African roots go back to the Mali Empire where my distant cousins were once kings.

While the desire to know one’s family lineage is universal, each culture faces a unique set of challenges. For instance, while some Africans don’t feel as directly impacted by slavery as many African Americans, colonization left stains that persist in young African minds after many European powers had captured people, artifacts, and resources from Africa during the sixteenth to twentieth centuries. Initiatives like African Ancestry help in rediscovering roots, while others like H3 Africa—a consortium of research projects led by African scientists—are playing a significant role in researching African genetics to help people better understand whether they are at risk, through genetics or their environment, for developing specific diseases.

Countries around the world have different laws and regulations regarding access to genealogy records. While the United States is fortunate to have access to millions of historical records, the US Citizenship and Immigration Services charge high fees for access to genealogy records, creating a barrier for many everyday Americans. Gatekeepers must strike a balance between protecting privacy and making genealogy accessible to those who seek it.

And with the United States becoming the site of fierce discussion over migration and mobility, improving access to genealogy is one important way it can communicate a more welcoming message to the African continent—and a more supportive one to the African diaspora community at home.

Control of the narrative

Today in the United States, school systems are facing complex questions about what should be taught regarding African American history, how lessons should be delivered, whether interpretations of historical moments are accurate, and which students should be receiving these lessons.

For example, in my home state of Virginia, new proposed history and social-science Standards of Learning are facing criticism for avoiding and downplaying Black contributions to society. In Florida, state officials blocked a proposed advanced placement African American history course, saying it “significantly lacked educational value.” The Texas House of Representatives is considering a bill that would remove all diversity, equity, and inclusion programs in state universities. The largest proportion of Black immigrants lives in Southern states where these debates about Black history and inclusion are unfolding.

What signal is the United States sending to African students who want to study in the country? This is a question that’s particularly relevant at a time when the global competition to attract African students is sharpening. Europe hosts the biggest group of Sub-Saharan African students outside the continent. But while France, which has 92,000 students enrolled according to the latest data, has long dominated in attracting African students, the United States (41,700), South Africa (30,300), and the United Kingdom (27,800) have also grown as major players in recent years.

If young people, such as students, can meaningfully engage with genealogy, they can strengthen diaspora communities by connecting together via their cultural and familial ties, which then boosts religious, social, and political connections across communities. Ultimately, this can create a heightened sense of identity and belonging across borders. Jeanine Stewart, a psychologist with expertise in inclusion and belonging, shared in a Forbes interview that, “being surrounded by other human beings doesn’t guarantee a sense of belonging.” Instead, she said, “belonging actually has to do with identification as a member of a group and the higher quality interactions which come from that. It’s the interactions over time which are supportive of us as full, authentic human beings.”

The United States’ message in attracting African students to study in the country extends beyond the education sector. Having a positive message would signify a broader commitment to diversity, globalization, and engagement with the African continent. The United States sees Africa as a vital partner in shaping the world’s future, and welcoming African students is a way to build lasting relationships and promote economic growth. Additionally, by attracting more young, talented individuals from Africa, the United States could bolster its own population growth by attracting a diverse range of perspectives and skills; it could also help make genealogical information more available, as young people from various family trees may carry their genealogical stories with them to the United States.

Genealogy awareness and access: What’s needed next

Many African societies have traditionally used oral history to pass down stories and genealogical information from generation to generation. This connective experience between the young and old is important.

At the same time, there is a need for genealogy thought leaders to collaborate with the public sector and other organizations to generate public awareness campaigns about the advances in the field. These campaigns can highlight the value of understanding one’s identity, connecting with distant relatives, and providing insights into past societies. Public awareness campaigns can also help dispel myths about genealogy and DNA to promote its legitimacy as a valuable field of study.

Institutions such as the Robert F. Smith Explore Your Family History Center—which is part of the Smithsonian Institution’s National Museum of African American History and Culture—is facilitating free genealogy expert consultations for those interested in tracking down their ancestry.

That said, there is still much work to be done to make genealogy and DNA records more accessible worldwide. Governments, including the United States, should create policies that promote the digitization of records and the creation of databases that are affordable and accessible to the public, especially given the fact that the genetic testing market size is anticipated to grow, reaching almost $18 billion by 2030.

Private companies currently access genealogy and DNA records to monetize direct-to-consumer DNA testing, medical research, DNA research services, data sharing and collaborations, and affiliate marketing.

Access to genealogy records can provide individuals with a sense of identity and belonging, connect them with distant relatives, and help them understand their place in the world. It can also inform understanding of past societies and help the world build more sustainable and prosperous communities.

Therefore, organizations around the world must work together to create policies that promote free access to genealogy records. Governments and institutions must work to strike a balance between protecting the privacy and providing access to history that is at the core of how families and communities have evolved over centuries.

Together, citizens of the world can ensure that genealogy remains a valuable resource for individuals and societies worldwide. By understanding the past, people can build a more prosperous and connected future.


Tyrell Junius is the associate director of the Atlantic Council’s Africa Center and a US returned Peace Corps volunteer of Zambia.

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Sub-Saharan green hydrogen as a catalyst for development https://www.atlanticcouncil.org/blogs/energysource/sub-saharan-green-hydrogen-as-a-catalyst-for-development/ Thu, 09 Mar 2023 15:53:11 +0000 https://www.atlanticcouncil.org/?p=621004 Green hydrogen has the potential to turn sub-Saharan Africa's abundant renewable resources into fuel for a sustainable economy. If supporting infrastructure can be built to harness this potential, the entire region could see the benefits.

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Breakthroughs at COP27 led to greater international support for the MENA region’s unique potential for producing cost-effective green hydrogen. Multiple financing agreements and strategic partnerships between MENA states and potential European buyers signaled the region’s interest in long-term cooperation on developing hydrogen infrastructure and production capacity.

As Europe drives investment into the MENA region, green hydrogen’s potential in sub-Saharan African nations like South Africa, Namibia, and Kenya risks being overlooked as a driver of needed sustainable energy and economic development. Partially due to the effects of COVID-19, the population without access to electricity in sub-Saharan Africa rose in 2020 for the first time since 2013. Currently, the region accounts for 77 percent of the global population without access to electricity, up from 74 percent prior to the pandemic. Energy demand is set to rise dramatically over the next 30 years, as the region’s current population of 1.18 billion is expected to double to over 2.2 billion by 2050.

But supporting sub-Saharan sustainable energy development is not only a pressing facet of a just global energy transition; it would also be a mutually beneficial investment decision. The average long-term practical yield for a photovoltaic solar energy installation in the region is 4.34 kWh/kWp/day, significantly higher than Europe’s 3.44 kWh/kWp/day. Nearly 30 percent of the region is capable of producing over 5 kWh/kWp/day of photovoltaic output, with some of the strongest concentrations of solar irradiation in Namibia, South Africa, Botswana, and Ethiopia. Sub-Saharan wind energy potential is also strong, particularly along the coasts of Namibia, South Africa, and Kenya. If successfully developed, renewable energy capacity could produce economically viable green hydrogen in Africa under €2 per kilogram by 2030.

South Africa signaled its intention to develop green hydrogen at scale with the release of the South African Hydrogen Society Roadmap (HSRM) in February 2022. The HSRM outlined four catalytic demonstration zones designed to lay the groundwork for long-term decarbonization of industry and transportation as well as the creation of a robust export market for green hydrogen and green ammonia.

In cooperation with Hydrogen Council members Anglo American and ENGIE, South African private and public sector operators are pursuing the development of a centralized hydrogen valley known as the Platinum Valley Initiative (PVI). The valley aims to connect three hubs—Johannesburg, Durban, and Limpopo—with a projected aggregated demand of 184 kilotons (kt) of green hydrogen by 2030. The initial viability study projected that the PVI could add between $4-9 billion to South African GDP by 2050 in addition to creating between 14,000-30,000 direct and indirect jobs annually. The nine currently proposed projects would contribute to decarbonization efforts spanning the transport, industrial, and mining sectors.

In addition to HSRM and PVI, South Africa signed a Just Energy Transition Partnership (JETP) agreement with France, Germany, the United Kingdom, and the United States in November 2021. At COP27, US Special Presidential Envoy for Climate John Kerry and South African President Cyril Ramaphosa announced the endorsement of the $8.5-billion JETP investment plan. Expanding the transportation and energy potential of green hydrogen is a key component of the investment strategy.

To the west, Namibia is also expanding its development goals for green hydrogen with a focus on Southern Corridor Development Initiative (SCDI). Following the hydrogen valley model, the SCDI is a partnership between the Namibian Green Hydrogen Council and the German firm Hyphen Hydrogen Energy. The project is expected to produce 300,000 tons of green hydrogen by 2030 from 5-6 gigawatts (GW) of installed renewable energy capacity. The Namibian Port Authority (Namport) is a critical component of the SCDI scheme, already laying the groundwork with Hyphen and the Port of Rotterdam to identify needed export infrastructure.

Before an export market can develop, however, Namibia’s existing energy woes must be addressed. In 2022, only 56 percent of Namibians had access to electricity, and the nation imported 60-70 percent of its electricity demand. Hyphen says its planned projects will generate 1.5-2 terawatt-hours of surplus electricity per year, nearly equal to Namibia’s purchases from the South African Power Pool (SAPP) regional electricity network. Hyphen’s development contract is only a fraction of the 26,000 square kilometers reserved by the government for green hydrogen development. As more projects are announced, renewable energy costs will decrease, and additional electricity supply should be available to both meet domestic demand and contribute to the decarbonization of the SAPP.

Already leading the continent in geothermal energy capacity, Kenya announced a slate of investment partnerships on the sidelines of COP27 for the growth of an East African green hydrogen hub. Fortescue Future Industries (FFI), an Australian firm with a global green hydrogen and ammonia portfolio, won the rights to develop a 300-megawatt (MW) green hydrogen and ammonia plant over the next three years.

Kenya’s development of renewable energy capacity has been a blessing for the country, nearly doubling electricity access from 32 percent in 2013 to 75 percent in 2022. Kenya Electricity Generating Company’s (KenGen) geothermal infrastructure is responsible for 70 percent of that growth, and the state-owned firm announced an additional $2-billion investment in new geothermal plants in 2021. As geothermal energy continues to expand, new solar and wind projects can exclusively produce green hydrogen and its derivatives without shortchanging residential, commercial, or industrial electricity demand.

As electrolyzer costs continue to decrease and sub-Saharan Africa’s renewable energy capacity grows, developing a robust green hydrogen and ammonia economy across the region could serve as an economic and energy development boon. Before that vision can be achieved, however, the inequities between nations and energy networks within the region must be addressed through cooperation and international support. Of the forty-eight countries in the region, twenty-four have electricity grids which service less than half of their national populations; eight have grids which reach less than 20 percent of citizens. This broad range of energy system reach complicates viability assessments for green hydrogen and other sustainable energy sources when focusing on sub-Saharan Africa as a whole. Instead, development potential in specific nations like South Africa, Namibia, and Kenya should be the focus of near-term support, with the goal of expanding successful programs and investments across the region over the next 30 years.

As sustainable energy markets develop in regional leaders throughout the decade, regional partnerships like the African Green Hydrogen Alliance should expand their membership. Angola, Mozambique, Botswana, Tanzania, and Ethiopia all possess reasonable wind and solar resources and form a corridor along the southern and eastern coasts of Africa, a prime opportunity for domestic development of green hydrogen and export to Asian buyers.

Regional leaders should pursue strategies to support the expansion of electricity grids and sustainable energy in neighboring nations. Adapting previous strategies like the Mozambique Transmission Company’s (MOTRACO) cross-border interconnection project—which linked transmission networks from South Africa, Mozambique, and Eswatini for aluminum smelting—may be a way to connect large-scale utility grids, which would bolster each nation’s ability to produce cost-effective green hydrogen on a consistent basis. International financing agreements like Just Energy Transition Partnerships (JETPs) or initiatives like Power Africa should support the long-term goal of leveling electricity access and energy networks across the region, building from lessons learned from existing agreements with South Africa. While concrete strategies for developing sustainable energy in energy-insecure sub-Saharan countries remain undefined, identifying early avenues of support is a critical step in harnessing the potential 50 million tons of regional green hydrogen capacity by 2035, according to a recent report from the European Investment Bank.

Kenya, Namibia, and South Africa are well positioned to expand their production capacity over the next ten years while gradually expanding green hydrogen markets to neighboring nations and setting the foundation for future export markets to Europe and Asia. If done correctly, the African Green Hydrogen Alliance partners could set favorable regulatory environments for the region and leverage their supply on international markets. Green hydrogen has unique potential to fuel the sustainable development of the transportation networks, industrial bases, and commercial enterprises of sub-Saharan nations while also strengthening their relationship with international trading partners.

Daniel Helmeci was a Summer 2022 Young Global Professional at the Atlantic Council Global Energy Center.

Learn more about the Global Energy Center

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Afrocentrism is trending in the Maghreb. It’s because Sub-Saharan migrants are rewriting their narrative. https://www.atlanticcouncil.org/blogs/menasource/afrocentrism-is-trending-in-the-maghreb-its-because-sub-saharan-migrants-are-rewriting-their-narrative/ Mon, 06 Mar 2023 19:13:20 +0000 https://www.atlanticcouncil.org/?p=620029 North Africa undoubtedly faces a serious migration problem that will continue to aggravate if not addressed regarding its social, cultural, and historical dimensions and root causes.

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North Africa morphing into a permanent host destination rather than a transit country on the way to Europe for hundreds of thousands of Sub-Saharan Africans is no news. What is new, however, is a rising Afrocentric discourse across social media platforms calling for “reappropriating” North Africa and “chasing” the non-black inhabitants of Morocco, Algeria, Libya, and Tunisia from the continent on the pretense that they are illegitimately colonizing the land.

This evolving discourse provides an ideological framework for Sub-Saharan African migrants subjected to documented instances of racism and expulsion during their stay in North African countries by local inhabitants and authorities. This new narrative transcends the conventional motivation of seeking exile or improved livelihoods in Europe and using these countries as a route to cross the Mediterranean clandestinely. It also supports a grotesque and historically misleading account about the origins of native Amazigh people of the region being inherently non-African because of their light skin color.

Resisting racism with Afrocentrism

In a speech on February 21, Tunisian President Kais Saied claimed that Sub-Saharan migrants “threaten the country’s national identity and must be stopped,” renewing the debate regarding xenophobia and discrimination against black communities in Tunisia. The divisive comments instigated the outrage of human rights activists at the national and international levels as the Maghreb region has been overwhelmed by waves of migrants and asylum seekers looking for dignity and improved living standards for the past two decades, aggravated by the Libyan crisis.

North African countries, already migration departure nations with over 12.3 million migrants internationally, have mixed records in dealing with the Sub-Saharan migration issue ranging from mass repatriations and ghettoization to limited efforts of naturalization and integration. Soaring inflation and unemployment rates in some countries led to a growing sentiment of prejudice and chauvinistic hate speech. It’s impossible to forget the outrageous scenes of stranded migrants left to starve in the open desert between Algeria and Niger over the past few years or others beaten to death as they attempted to climb the fence surrounding the fortified enclave of Melilla.  

Sub-Saharan migrants, infuriated by decades of mistreatment by Europeans and now by North Africans, found refuge in a new Afrocentric discourse to justify their right to exist and stay in the Maghreb facing racism with reversed racism and asking Moroccans, Algerians, Tunisians, and Libyans to “go back to Asia” where they supposedly originated from. Afrocentric adepts even assert that the real Moorish people were black, and so were the pharaohs, and claim all civilizational glories that took place on African soil as inherently black.

The circulating social media clips and comments call to re-Africanize the Maghreb through mixed marriages and mass immigration. This movement is capitalizing on the Black Lives Matter movement, which reignited a pan-African sentiment and repositioned blackness in the political agendas in the United States and Europe to create the buzz and hide a more complex demographical and discursive phenomenon.

Historical misconceptions and racist legacies

The problem with this approach lies primarily in its erroneous historical accuracy. North Africa has always been the ancestral land of the Amazigh or Imazighen people, as proven by neolithic archeological excavations going back to at least 10,000 BC and known accounts from the antiquity encounters of Greek, Roman, and Phoenician with the Numidian, Mauri, and Libu people. Amazighs are also a distinct group anthropologically with specific genetic make, language, and culture processing ties with all of Africa, Asia, and the Mediterranean. Arab settlers from the gulf and Levant colonized the region much later and were faced with fierce resistance by the autochthones led by their queen Al-Kahina in the eighth century.

The Berber and Arab people of the Maghreb have ongoing ethno-nationalistic divergences, as some Amazighs continue to claim to be ostracized by a ruling Arab class. This was exacerbated by French colonial rule, which intentionally distinguished between Arabs and Berbers in education, local government, and laws. Certain groups, like the Kabyles in Algeria, still sustain separatist demands and even have a government in exile. Nevertheless, the truth is that centuries of intermarriages and assimilation have created an amalgamation of both communities and gave birth to today’s North African identity, where it is impossible to proclaim ethnic purity. Black Africans themselves could not be reduced today to one race or culture, and it is utterly reductionist and essentialist to say an Ethiopian is the same as a Congolese or to compare a Sudanese with a South African.

The recent tensions between Sub-Saharan Africa and North Africa may be explained by the historical ties between the two regions of the continent, where the latter repetitively subjugated the first and annexed them as part of its empires. The Maghreb, additionally, has an undeniable dark heritage legacy of being slave owners and traders. In his book Black Morocco: A History of Slavery, Race, and Islam, Arizona University professor Chouki El Hamel revisits this least-known chronicle of the region’s past, where western Africans were captured, emasculated, and used as soldiers or sold off to slave merchants and shipped to the new continent. Domestic slaves had a much grimmer faith, as they were subjected to physical violence, rape, and exploitation.

North Africa undoubtedly faces a serious migration problem that will continue to aggravate if not addressed regarding its social, cultural, and historical dimensions and root causes. The Sahara and the Sahel are already extremely precarious zones, with flourishing mercenaries and extremist groups recruiting migrants and utilizing them to destabilize the entire region. The security approach that Tunisian President Saied is preaching for would not suffice; only a more prosperous and economically integrated West Africa with its northern neighbors could provide a pathway to stabilization.

Sarah Zaaimi is the deputy director for communications at the Atlantic Council’s Rafik Hariri Center & Middle East programs 

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China in Sub-Saharan Africa: Reaching far beyond natural resources https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/china-in-sub-saharan-africa-reaching-far-beyond-natural-resources/ Mon, 06 Mar 2023 16:30:00 +0000 https://www.atlanticcouncil.org/?p=619198 What are the implications of China's expanding involvement in Sub-Saharan Africa's investment, trade, cultural, and security landscape?

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This work empirically examines China’s growing footprint in Sub-Saharan Africa’s investment, trade, cultural, and security landscape over the past two decades. It highlights China’s increasing appetite for Sub-Saharan Africa’s natural resources and growing young labor force—identifying the region’s consumer market as an important destination for Chinese goods and services over the next few decades. 

The analysis identifies more than 600 Chinese investments and construction contracts in Sub-Saharan Africa (SSA), valued at over $303 billion, signed between 2006 and 2020. Four sectors attract 87 percent of China’s investment and construction in the region: energy at 34 percent; transport, 29 precent; metals, 13 percent; and real estate, 11 percent. This is very similar to the Middle East and North Africa Region, where the energy sector attracts close to 50 percent of China’s investment, followed by transport, 19 percent; real estate, 15 percent; and metals, 6 percent.

In terms of trade, this work shows that between 2001 and 2020, China’s merchandise trade with the region increased by a whopping 1,864 percent—surpassing SSA’s trade with both the United States and the European Union. In other words, from 2001 to 2020, China’s share in total merchandise trade in SSA rose from 4 percent to 25.6 percent, while during the same period, the shares of the United States and the EU in SSA’s total trade declined by 10 percentage points and 8 percentage points, respectively.

The report also takes a look at China’s arms trade with the region. Twenty-two percent of SSA’s arms imports are sourced from China, making China the region’s second-largest supplier of arms and military equipment, with Russia in the lead (24 percent). 

Finally, the report highlights the fact that the size of Chinese migrants in Africa is estimated at one to two million, with around one million permanently residing in the region. The largest numbers are in Ghana, South Africa, Madagascar, Zambia, and the Democratic Republic of the Congo.This work is the first in a series of empirical analyses that will be conducted on China’s presence in developing economies and low-income countries.

Explore the data in the Issue Brief

At the intersection of economics, finance, and foreign policy, the GeoEconomics Center is a translation hub with the goal of helping shape a better global economic future.

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Critical connectivity: Reducing the price of data in African markets https://www.atlanticcouncil.org/in-depth-research-reports/report/critical-connectivity-reducing-the-price-of-data-in-african-markets/ Fri, 03 Mar 2023 20:35:27 +0000 https://www.atlanticcouncil.org/?p=617879 This report analyzes the current state of the digital transformation in Africa and outlines how affordable and accessible data is imperative for further development.

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This report is part of an ongoing partnership on the Power of African Creative Industries between The Policy Center for the New South (PCNS) and the Atlantic Council’s Africa Center.

“Critical connectivity: Reducing the price of data in African markets,” by Africa Center Senior Fellow Aubrey Hruby, analyzes the current state of the digital transformation in Africa and outlines how affordable and accessible data is imperative for further development. Finally, it provides concrete recommendations to the key actors and facilitators of the transition outlined in the Digital Transformation with Africa; a new initiative the Biden administration announced at the 2022 US-Africa Leaders Summit, which emphasizes the importance of reducing data costs in Africa to spur growth and employment.

In outlining why data remains so costly and inaccessible across Africa, Hruby profiles four main detriments: infrastructure, competition, policy, and consumption patterns. Through case studies and success stories from other developing nations who struggled with high-priced data and implemented successful mitigation measures, Hruby develops a framework for reform and showcases how key changes can rapidly reduce data costs, spur development, and transform entire industries. Her recommendations directly address the current US administration, African governments seeking to build and benefit from a digital economy, and global development finance institutions (DFIs) that are already investing and making much needed transformative inroads into African markets.

Throughout the 21st century, African markets have unleashed the globe’s most significant digital revolution, and they are poised to continue doing so over the next few decades as the world’s youngest population reaches maturity. Currently, 40 percent of the continent’s total population is under the age of 15 and represents 27 percent of the entire world population. From 2000 to 2010, the African mobile phone market grew at a rate of 44 percent per year, bringing the number of subscriptions to around 700 million, more than in both the European Union and the United States combined. For African creative and mobile industries, which are emerging at the forefront of this digital revolution, infrastructure and technological systems are critical to the sector’s continued growth. The African Continental Free Trade Area connects 1.3 billion people across fifty-five countries with a combined GDP of over $3 trillion. Digital infrastructure is a vital economic opportunity and a crucial security issue for African nations and their partners.

The African vision is increasingly shaped by the digital tools and platforms African consumers use and the new opportunities that have emerged in a growing start-up ecosystem. According to the UN, the digital economy is set to expand in Africa by 57 percent between 2020 and 2025. With projections by the Alliance for Affordable Internet forecasting that the continent’s digital economy will grow six times over by 2050 to $712 billion and the fact that African startups raised more than $4 billion in venture capital in 2021, it is clear that this sector is booming. Undoubtedly the future is digital, and Africa must be able to access this future affordably if it is to share in the benefits of this global revolution.

The Atlantic Council is the only DC global think tank to have placed African creative industries at the center of its security and prosperity work. The Africa Center’s focus on the creative industries was launched by the Africa Creative Industries Summit of Washington in October 2021 at the Smithsonian National Museum of African Art and was opened by a message from Vice President Kamala Harris. The program is now fully supported by strong sponsors and partners, from ADS Group and Afreximbank to OSF and OCP, allowing the Atlantic Council to continue its leadership in the field by hosting events such as the Sports Business Forum, held in Dakar, and the financial engineering task force for African creative industries. This work was crowned by the Africa Center’s partnership with the US Department of State and its participation in the organization of the African and Young Leaders Diaspora Forum on the first official day of the US-Africa Leaders Summit of December 2022 at the African American Museum of History and Culture in Washington.

Report author

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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Russian War Report: DFRLab confirms increased Russian air force activity as Kremlin strives to achieve air dominance https://www.atlanticcouncil.org/blogs/new-atlanticist/russian-war-report-dfrlab-confirms-increased-russian-air-force-activity-as-kremlin-strives-to-achieve-air-dominance/ Fri, 03 Mar 2023 18:18:49 +0000 https://www.atlanticcouncil.org/?p=619190 Russia intensified its air power in recent weeks across airfields in Crimea and Rostov Oblast. Elsewhere, Russia continues to pressure Bahkmut.

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As Russia continues its assault on Ukraine, the Atlantic Council’s Digital Forensic Research Lab (DFRLab) is keeping a close eye on Russia’s movements across the military, cyber, and information domains. With more than seven years of experience monitoring the situation in Ukraine—as well as Russia’s use of propaganda and disinformation to undermine the United States, NATO, and the European Union—the DFRLab’s global team presents the latest installment of the Russian War Report. 

Security

DFRLab confirms increased Russian air force activity as Kremlin strives to achieve air dominance

Russian army continues to pressure Ukraine in Bakhmut

Tracking narratives

Volunteer Russian unit fighting for Ukraine reportedly infiltrates Bryansk

Kremlin-linked Telegram networks coordinated to spread disinformation around the world

Media policy

Report examines Russia’s decentralized approach to internet censorship

DFRLab confirms increased Russian air force activity as Kremlin strives to achieve air dominance

The DFRLab confirmed that the Russian General Staff has intensified its air power in recent weeks across airfields in Crimea and Rostov Oblast. Satellite imagery collected by the DFRLab throughout February indicates that Russian air forces have increased their aerial activity at the Saki military airbase in western Crimea. Several MiG and Sukhoi class fighter aircraft have been identified in standby positions or on the runway.

DFRLab satellite analysis shows increased Russian aerial activity on the Saki military airbase in western Crimea. (Source: DFRLab via Planet.com)
DFRLab satellite analysis shows increased Russian aerial activity on the Saki military airbase in western Crimea. (Source: DFRLab via Planet.com)

The DFRLab’s findings are consistent with those published by open-source researcher Brady Africk, who identified seven different instances of aircraft located in the south of Ukraine on Sentinel-2 satellite imagery. The European Space Agency’s satellite imagery also serves as open-source evidence of the aircraft’s direction, located in the different color bands of Sentinel-2.


Screenshot of a tweet from Brady Africk, who identified seven different instances of aircraft located in the south of Ukraine on Sentinel-2 satellite imagery. (Source: Twitter/archive)
Screenshot of a tweet from Brady Africk, who identified seven different instances of aircraft located in the south of Ukraine on Sentinel-2 satellite imagery. (Source: Twitter/archive)

In addition, explosions reported at the Yeysk military air base in Krasnodar Krai further suggest the Russian army has been increasingly intensifying its air maneuvers. Geolocated footage of a Sukhoi-25 fighter aircraft near Luhansk indicated that further maneuvers can be expected from Russia’s western air base of Millerovo. The DFRLab also assessed that air activity possibly occurred during the last week of February at a seemingly deserted airfield south of Luhansk. Satellite imagery shows that although the meteorological conditions in January and February were mostly snowy, the main runway and several pads dedicated to aircrafts and helicopters were consistently clear of snow. Satellite imagery has not yet detected aircraft at the site, however, so it is unclear what class of aircraft is currently deployed in this airfield. Nevertheless, the operation of MiG and Sukhoi class fighters could be responsible for the melting snow on the pads.  

Google Earth imagery from 2021 showed the airbase in dire condition, which could support the claim of its low military activity.

Satellite imagery of the Southern Luhansk air base. Source: DFRLab via Planet.com
Satellite imagery of the Southern Luhansk air base. Source: DFRLab via Planet.com

As battles intensify to seize Bakhmut, the southern air base near Luhansk could serve as a strategic advantage for the Russian armed forces as it requires less fuel and maneuvers. 

Meanwhile, Ukrainian forces continue to target strategic Russian installations on the southern front. On March 1, the Russian defense ministry claimed it had downed more than ten Ukrainian unmanned aerial vehicles (UAVs) in an attack against occupied Crimea. This comes as unverified reports suggested a Ukrainian UJ-22 drone was also downed on February 28 between Moscow and Ryazan. Ukrainian presidential advisor Mykhailo Podolyak denied the accusation and said Ukraine is not launching attacks on Russian soil; he claimed the increased aerial strikes on infrastructure were the result of “internal attacks.” Open-source evidence suggests explosions near Yalta and Bakhchysarai, Crimea, could have resulted from other projectiles, not exclusively drone strikes.

Valentin Châtelet, Research Associate, Security, Brussels, Belgium 

Russian army continues to pressure Ukraine in Bakhmut

Russian forces continue their efforts to encircle and capture the eastern Ukrainian city of Bakhmut. Interviewed by Reuters on February 28, the commander of Ukraine’s ground forces described the situation as “extremely tense.” Russian troops, including Wagner units, are attempting to cut Ukraine’s supply lines to the city in a bid to force troops to surrender or withdraw. 

On February 28, pro-Russia sources shared a video showing Russian Su-25 fighter jets deployed over Bakhmut. The lack of adequate air support has been among the primary sources of friction between the Russian General Staff and the units fighting in Bakhmut. Footage from Ukraine’s 93rd Separate Mechanized Brigade shows fighting escalating, but Ukrainian forces appeared to be holding off the advance at the time of writing. On February 27 and 28, Ukrainian soldiers repelled more than sixty attacks, including on the villages of Yahidne and Berkhivka, north of Bakhmut. According to a pro-Russia blogger’s Telegram channel, Wagner units are advancing north of Bakhmut, but Ukraine’s army has not retreated. Amid heavy fighting, Wagner reportedly advanced on February 27 towards the AZOM metallurgical plant in north Bakhmut. 

Rybar, a Russian Telegram channel believed to be linked to the defense ministry, claimed on March 2 that Wagner’s troops had reached the western suburbs of Bakhmut and clashed with Ukrainian forces in the hills north of the area. According to Rybar, Russian troops approached the road between Chasiv Yar and Bakhmut. On March 2, The Insider reported that Bakhmut was under operative siege as Ukraine’s army repelled attacks in Orikhovo, Vasylivka, Dubovo, Khromove, and Ivanivske. 

Meanwhile, NATO Secretary-General Jens Stoltenberg told a Helsinki summit on February 28 that the end of the war in Ukraine “would not lead to normalization” of relations with Russia.

Ruslan Trad, Resident Fellow for Security Research, Sofia, Bulgaria

Volunteer Russian unit fighting for Ukraine reportedly infiltrates Bryansk

Russian government figures, Kremlin media, and pro-Russia Telegram channels are heavily focused on an alleged March 2 incursion by pro-Ukraine forces in the Russian village of Sushany, Bryansk oblast, approximately one kilometer away from Ukraine’s north-central border with Russia. DW News and Radio Free Europe reported that members of the Russian RDK volunteer corps crossed into Russia and were active in the Bryansk area at the time of publishing.

Google satellite imagery shows the village of Sushany. (Source: DFRLab via Google Maps).
Google satellite imagery shows the village of Sushany. (Source: DFRLab via Google Maps)

According to DW News, RDK is “a unit of volunteers from Russia who have been fighting on the side of Ukraine since August 2022.” Initially, Ukrainian authorities dismissed the claims of an insurgency in the Russian village as a Russian false-flag operation. However, a video published on the official RDK Telegram channel showed fighters holding the unit flag and indicating a Russian government building behind them. In the video, and later in follow-up interviews, members of the unit adamantly denied claims spread by Russia that they had attacked the civilian population. They stated that the infiltration into Russian territory was done to sabotage Russian military targets. Additional reporting confirmed that RDK leader Denis Nikitin appeared in the video.

A screengrab from the RDK Telegram video shows a sign for the Health Services building of Liubechane village, approximately 17 km north of Sushany, on the Russian border. (Source: Telegram)
A screengrab from the RDK Telegram video shows a sign for the Health Services building of Liubechane village, approximately 17 km north of Sushany, on the Russian border. (Source: Telegram)

Russian Telegram channels and media did not distinguish that the volunteer troops are of Russian origin; instead they reported that a group of “Ukrainian saboteurs” had infiltrated sovereign Russian territory. The governor of Bryansk announced on March 2 that “saboteurs” had attacked the civilian population, killed a man, and taken hostages. President Vladimir Putin described the incident as a “terrorist attack” and condemned the alleged unprovoked shelling of a civilian vehicle. The Kremlin said it was closely monitoring the situation and continued to label the alleged insurgents as “Ukrainian militants.” It also tasked the Federal Security Service with conducting counterterrorism operations in response to the situation in Bryansk. 

Russia also suggested that the Center of the Psychological Operations of the Ukrainian Armed Forces (Центринформационно-психологических операций ВСУ) may have been responsible for the “attacks on civilians and infrastructure” in Bryansk, again making no distinction between the RDK and the official Ukrainian military. Echoing the Kremlin’s “terrorism” claim, far-right nationalist State Duma member Aleksey Zhuravlyov labeled the Ukrainian military and political leadership as “terrorists” in official public statements and called for an escalation of the “special military operation” into open war. 

As the conflict along the eastern flank intensifies, escalatory narratives involving northern regions of Ukraine could serve as a critical Kremlin tool for conducting operations into the northern border, where Russian forces could tap into already stationed and mobilized Belarusian troops, military bases, and equipment, along with their own units left behind following joint military training exercises between Russia and Belarus. 

Kateryna Halstead, Research Assistant, Bologna, Italy 

Kremlin-linked Telegram networks coordinated to spread disinformation around the world

The DFRLab recently discovered fifty-six pro-Kremlin Telegram channels that targeted twenty countries with pro-Kremlin disinformation. Three networks of similarly named accounts — Surf Noise, Info Defense, and Node of Time — targeted users worldwide, including in Europe, Asia, South America, and the Middle East. The operation primarily relied on volunteer work. It focused on translating and spreading pro-Russia disinformation, as well as amplifying reports from Kremlin media outlets, state organizations, and state actors. 

The DFRLab found clear coordination between the three networks, but the approach to capturing a global audience was unsophisticated. The DFRLab consulted its global team of researchers to examine the accuracy of translations and found that the quality of translations was poor.

Nika Aleksejeva, Research Fellow, Riga, Latvia 

Sayyara Mammadova, Research Assistant, Warsaw, Poland 

Report examines Russia’s decentralized approach to internet censorship

Russian digital rights organization Roskomsvaboda collaborated with the Open Observatory of Network Interference (OONI) to publish a report examining “a year of military censorship in Russia.” The report reviews censored topics, websites, and services, as well as the legislative mechanisms used to enforce the censorship. 

According to the report, Russia blocked 494 domains over the course of 2022. These fell into twenty-eight categories, with news media representing the largest category, followed by social networks, human rights organizations, and circumvention tools. 

The report found that “more than 247,492 URLs were added to Roskomnadzor’s registry of banned websites” in the past year. However, the orders to ban content did not only come from Russia’s internet regulator. Other Russian agencies that requested websites be blocked include the federal tax service, Russian courts, and the prosecutor general’s office, among others. The report’s authors found over 3,500 instances of an entity anonymously requesting a website block. 

While blocking requests are centralized through Roskomnadzor’s registry, the implementation of internet censorship in Russia is decentralized, the report concluded. The authors found forty-eight of the 494 blocked domains were absent in Roskomnadzor’s registry. The report suggested that some internet providers in Russia can block content not listed in Roskomnadzor’s registry. 

Eto Buziashvili, Research Associate, Tbilisi, Georgia

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What’s in store for Nigeria after a messy election https://www.atlanticcouncil.org/content-series/fastthinking/whats-in-store-for-nigeria-after-a-messy-election/ Thu, 02 Mar 2023 00:38:27 +0000 https://www.atlanticcouncil.org/?p=618635 Why was the election so rocky, and what should the new president’s priorities be? Our experts share their insights.

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GET UP TO SPEED

It was a close call. Ruling party candidate Bola Tinubu was declared the narrow winner of Nigeria’s presidential election on Wednesday after balloting delays and scattered violence, with his two closest challengers saying they will dispute the results in court. Assuming Tinubu takes office as planned in May, he will lead a nation that is at once making big strides on the world stage and reeling from crises at home. Why was the election so rocky, and what should the new president’s priorities be? Our experts share their insights.

TODAY’S EXPERT REACTION COURTESY OF

  • Constance Berry Newman: Nonresident senior fellow at the Africa Center, former US assistant secretary of state for African affairs, and official international observer of Nigeria’s 2023 elections 
  • Rama Yade (@ramayade): Senior director of the Africa Center
  • Aubrey Hruby (@aubreyhruby): Nonresident senior fellow at the Africa Center and co-founder of Tofino Capital

Notes from the ground

  • Constance, who monitored the elections as part of the joint International Republican Institute and the National Democratic Institute Observer Mission, says the government did many things right in administering the election, including technological improvements and getting all political parties to commit to using only peaceful, legal means to challenge the results.
  • But she says the government made several key mistakes, including long delays in opening polling sites. “This led to frustrated, often angry, voters, a limited number of whom left and a small number of whom engaged in violent activities,” Constance reports.
  • Another failure, she adds, was “a seemingly ineffective and late tabulation announcement process that raised concerns about the announced results.”
  • Constance attributes the surprisingly low voter turnout (27 percent) to “a belief that nothing will change anyway, a fear of violence and other intimidation factors, and a lack of an understanding of the voting procedures.”
  • But she comes away most impressed with the enthusiastic young people in a country where around 70 percent of the population is younger than age thirty. “Nigeria has reason to hope for a better future because many of the youth are really engaged and understand what is right and wrong for their country.”

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Tinubu’s agenda

  • While Peter Obi, an outsider candidate from the Labour Party, garnered a ton of international press and led in some polls, Rama tells us that Tinubu’s win is “not a surprise.”
  • That’s because Tinubu, 70, hails from the ruling All Progressives Congress party, “is Muslim from the Yoruba-speaking southwest, and even if he lost there, he has strong support in Lagos,” Rama adds.
  • But the fact that Tinubu lost Lagos—where he served as governor from 1999 to 2007—“demonstrates the power of the message” from Nigeria’s disaffected youth to their country’s political leaders, Aubrey says. Tinubu spoke directly to their concerns in his victory speech, referring to young people’s “pains, your yearnings for good governance, a functional economy, and a safe nation.”
  • It won’t be easy for him to deliver: Aubrey points to Nigeria’s 42.5 percent youth unemployment, rampant inflation, soaring debt burden, and plummeting oil production. Tech and entrepreneurship are “a bright spot” in the economy, but amid a brain drain that’s seeing fifty doctors leave per week to work overseas, she adds, “Tinubu will have to show quick results on the economic front to stem the tide.” 

On the world stage

  • Tinubu will be immediately thrust into a leadership role on the continent. “The future of the Economic Community of West African States (ECOWAS), the new Eco currency (which has been postponed to 2025), and the African Continental Free Trade Area (which needs to be accelerated) are in Nigeria’s hands,” Rama tells us.
  • And as Africa seeks a larger role in the G20 and Bretton Woods Institutions, “Nigeria will play an important role in this unprecedented dialogue,” Rama adds. “The expectations have never been so high.”

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Experts react: As the ruling party’s Tinubu wins a contested election, what’s next for Nigeria? https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react-as-the-ruling-partys-tinubu-wins-a-contested-election-whats-next-for-nigeria/ Wed, 01 Mar 2023 20:37:11 +0000 https://www.atlanticcouncil.org/?p=618406 What went wrong with election administration and what can Bola Tinubu do to win over his critics? Atlantic Council experts, one of whom served on the ground as an election monitor, weigh in.

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From kingmaker to king. Bola Tinubu, the ruling All Progressives Congress party presidential candidate and longtime political powerbroker, was declared the winner of Nigeria’s presidential election on Wednesday with about 37 percent of the vote. But Tinubu’s main challengers, outsider and former governor Peter Obi and former vice president Atiku Abubakar, said they would challenge the results in court. What do the results mean for Africa’s most populous country and its role in the region? What went wrong with the election administration? What can Tinubu do to win over his critics? Atlantic Council experts, one of whom served on the ground as an election monitor, weigh in below.

Constance Berry Newman: The view from the ground: Where election administration fell short

Aubrey Hruby: To win over his younger skeptics, Tinubu needs economic results—and fast

Rama Yade: Tinubu will play a pivotal role in the continent—and the world

The view from the ground: Where election administration fell short

On the ground, where I served in recent days as an election observer, it is about the Nigerian people—the voters, non-voters, youth, Independent National Electoral Commission (INEC) and other government officials, political parties, media, and civil society. Around ninety-three million Nigerians were registered to vote, but only 26 percent of those registered turned out to vote. Those who voted were engaged, standing in lines sometimes for hours, staying for the final counts, saluting each announced winner in their polling site. 

One puzzle not yet solved is: Why did so many more people decide not to vote than in previous elections? It’s probably all the same reasons Nigerians did not vote in the past—a belief that nothing will change anyway, a fear of violence and other intimidation factors, and a lack of an understanding of the voting procedures. However, the youth are amazing. We saw them at the polling sites, though exact turnout numbers are yet to be verified, and the National Youth Service Corps ran the election at the polling site level. My conversations with many of the youth led to an observation that Nigeria has reason to hope for a better future because many of the youth are really engaged and understand what is right and wrong for their country. There are mixed reviews regarding the role of the media, because there are barriers to media having the freedom to do its job, and parts of the media allow for and even provide misinformation and hate speech. 

With regard to the civil-society participants, many are sophisticated in data collection and analysis, questioning government officials with facts, using media and social media in effective ways. However, neither they nor the government nor the political parties has been effective in getting the citizens to vote in any meaningful numbers. Also, the political parties have a long way to go in terms of improving inclusion for youth, women, persons with disabilities, and internally displaced persons in the political process.

With regard to the government’s role in the administration of the election, one can draw both positive and negative conclusions. On the positive side: 

  1. The Electoral Act of 2022 took steps to improve electoral integrity. However, conclusions are yet to be determined about the implementation of those steps across the board. 
  2. Preparations for the election started earlier than for previous elections, which should have resulted in improved Election Day activities at the polls and final reporting of the results. 
  3. Generally speaking, the technology worked, but it would have worked better had INEC pilot tested the technology on a national level prior to the February election. INEC piloted the key new systems in three off-cycle elections but never conducted a nationwide test.  
  4. The government secured signatures from the eighteen political parties to the 2023 Peace Accord. Therefore, each presidential candidate and the candidate’s party committed to accepting the outcome of the elections or seek legitimate means of remedy in the event of divergent viewpoints.

For the various governmental entities charged with playing a role in the election, currency and fuel shortages were a negative. Also, while some may argue that it is unfair to assign blame, the fact is that the government did not stop election violence such as the assassination of the Labour Party senatorial candidate for Enugu East.

Specially for INEC, there were three main negatives: 

  1. A lack of transparency, so voters and the general public did not understand why election data was published late, for example. 
  2. Very late openings of polling sites because of late transportation of materials, missing materials, and late arrival of staff. This led to frustrated, often angry, voters, a limited number of whom left and a small number of whom engaged in violent activities. 
  3. A seemingly ineffective and late tabulation announcement process that raised concerns about the announced results.

Constance Berry Newman is a nonresident senior fellow at the Atlantic Council’s Africa Center and a former US assistant secretary of state for African affairs. She is a member of the joint International Republican Institute and the National Democratic Institute Observer Mission to Nigeria’s 2023 presidential and legislative elections.

To win over his younger skeptics, Tinubu needs economic results—and fast

After one of the closest elections in recent Nigerian history, Tinubu has called for an “era of renewed hope,” asking for peace, patience, and solidarity. He acknowledged the role that the youth have played in the elections and the need to address young people’s “pains, your yearnings for good governance, a functional economy, and a safe nation.” The fact that the “godfather of Lagos” lost his home city to Peter Obi demonstrates the power of the message Nigerian youth sent in this election.  

In order to address the concerns of the youth, the septuagenarian Tinubu will need to turn his immediate attention to the economy. Food inflation, at a seventeen-year high, is up 28 percent year on year from 2021 to 2022, official youth unemployment hit 42.5 percent (according to the national bureau of statistics) and oil production has fallen to a forty-year low. Power is still expensive—Nigeria is home to sixty million diesel generators and fuel products are still imported—and the World Bank estimates that over 40 percent of Nigerians live below the poverty line. Borrowing on international markets to invest in infrastructure is not really an option for the new Tinubu administration, as Nigerian debt has nearly doubled since 2015 and is now over one hundred billion dollars.  

In the campaign, Tinubu committed to removing the fuel subsidies that cost Nigeria more than ten billion dollars in 2022, but this is not the first time a president tried to take on this beast. Then President Goodluck Jonathan’s efforts to remove the fuel subsidies ended after nationwide protests in 2012. This time around also promises to be politically difficult given the financial hardships faced by Nigerians.

Tinubu will also be asking a lot of Nigerians who are dependent on day-to-day imports should he push for the free float of the naira. The central bank currently restricts access to foreign exchange and rations dollars to prop up the naira, which is now valued at half of what it was when outgoing President Muhammad Buhari was first elected in 2015, resulting in a large spread between the official and street exchange rates. By the time Tinubu officially takes office at the end of May, hopefully the current government will have rationalized the demonetization plan that has caused cash shortages and long lines at ATMs.  

Despite all of these economic challenges, the Nigerian spirit has remained resilient. The informal economy (which, based on my experience doing business in the country for twenty years, is two-to-three times the size of the official economy) continues to absorb newcomers to the labor market, and there is a bright spot within Nigerian tech and entrepreneurship. The country is home to Africa’s largest venture capital and tech hub, and Nigerian companies such as Sabi, SeamlessHr, Moniepoint, and Moove are expanding to other economies in the region. 

But Tinubu will have an uphill battle in renewing young people’s faith in Nigeria. Young Nigerians are leaving the country in record numbers—those going to the United Kingdom to work has quadrupled since 2019—and the Nigerian Medical Association says that at least fifty doctors are leaving every week to work abroad. Tinubu will have to show quick results on the economic front to stem the tide. 

Aubrey Hruby is a nonresident senior fellow at the Atlantic Council’s Africa Center, a co-founder of Tofino Capital, and an adjunct professor at Georgetown University.

Tinubu will play a pivotal role in the continent—and the world

What we can say today is that even if the election was highly disputed, with Bola Tinubu, logic prevailed. Tinubu’s victory is not a surprise. He was running on behalf of the ruling All Progressives Congress. He is Muslim from the Yoruba-speaking southwest, and even if he lost there, he has strong support in Lagos. If the result is confirmed, the largest African democracy will have passed one of its most important tests since military rule ended in 1999. And it is not over: Beyond the presidential election, Nigerians are also electing their 469 representatives in the Senate and the House of Representatives. Democracy is a tough path.

This election is special, too, because Nigeria is transitioning to a new environment marked by an economic turning point and a changing continental and international context. The expectations have never been so high. Tinubu will lead a country that is expected to become the world’s third most populous by 2050. At the African level, Nigeria is a major actor whose economy represents 70 percent of the West African gross domestic product. The future of the Economic Community of West African States (ECOWAS), the new Eco currency (which has been postponed to 2025), and the African Continental Free Trade Area (which needs to be accelerated) are in Nigeria’s hands. Even as it faces major shifts, it will tremendously impact the rest of the continent. At the global level, the African continent will negotiate its role in international bodies from the Bretton Woods system to the Group of Twenty (G20) nations, and Nigeria will play an important role in this unprecedented dialogue.

Rama Yade is the senior director of the Atlantic Council’s Africa Center.

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What we learned from the Russia-China-South Africa military drills https://www.atlanticcouncil.org/blogs/new-atlanticist/what-we-learned-from-the-russia-china-south-africa-military-drills/ Tue, 28 Feb 2023 23:15:23 +0000 https://www.atlanticcouncil.org/?p=617992 Why did these three nations get together? What’s in it for South Africa? Our experts set sail with the answers.

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Rough seas ahead. On Monday, China, Russia, and South Africa wrapped up ten days of joint naval drills in the Indian Ocean, an exercise that overlapped with the one-year mark of Russia’s full-scale invasion of Ukraine. Why did these three nations get together? Why now? And what did we learn about the military capabilities of the two powers that the United States considers to be its chief security threats? Experts from across the Council set sail with the answers.

1. Why are Russia and China teaming up with South Africa?

Teaming up may be a misleading term, as South Africa has longstanding ties with both Russia and China. South Africa’s ruling party, the African National Congress (ANC), received significant Soviet support during the anti-apartheid struggle, including both military and financial backing. South Africa became a member of the BRICS consortium of economies in 2014—which also includes Brazil, Russia, India, and China—and has had strong economic engagement with China since the early 2000s. Also, Russia, China, and South Africa have previously conducted bilateral and other multilateral joint training exercises. So defense cooperation among these nations is neither unprecedented nor wholly unanticipated.

In addition to the practical and diplomatic advantages of shared drills with South Africa, its location aligns strategically with Russian and Chinese efforts to project naval power in African waters. Russia has increased its activities in the Indian Ocean in recent years, for example with efforts to secure port access for its navy in Mozambique. China similarly wants to increase its ability to deploy the People’s Liberation Army Navy worldwide, including in the Indian and Atlantic oceans. To support its navy’s push, China must ensure logistics provision and access in ports or basing in countries along these coasts, such as in Kenya, the Seychelles, Tanzania, or Angola. Straddling both these coasts, of course, is South Africa.

Sarah Daly is a nonresident fellow at the Africa Center.

As with the previous exercise between South Africa, Russia, and the People’s Republic of China in 2019, these trilateral naval exercises are likely to prove to be of limited warfighting value, but are incredibly valuable to the diplomatic interests of each country. As has been true throughout history, a navy that is capable of sustained global operations is a unique element of national strength that contributes heavily to advancing diplomatic efforts. This exercise in naval diplomacy enables South Africa to demonstrate its independent foreign policy, Russia to highlight its continued relations with nations of the Global South, and China to demonstrate the increasing global reach of its navy.  

The United States and like-minded allies and partners also understand the value of naval diplomacy. The US Navy has the USS Hershel “Woody” Williams, an expeditionary sea base (ESB) that is permanently forward deployed to the region with one of its primary missions being to support ongoing diplomatic efforts and engage with countries in Africa. This ESB makes frequent visits to countries throughout the continent for engagement opportunities and most recently visited South Africa in August 2022.  

—LCDR Marek Jestrab is the 2022-2023 senior US Navy fellow at the Atlantic Council’s Scowcroft Center for Strategy and Security. These views do not represent the US Navy or the Department of Defense.

South Africa is a regional hegemon in southern Africa and economically, diplomatically, and militarily among the giants of the African continent, making it an obvious focus for attention. It also has historically warm relations with China dating back to the struggle against apartheid. Finally, South Africa has an ambivalent relationship with the United States and the rest of the Western “international community.” The move is popular with many South Africans, especially those who align with the ruling ANC. 

Michael Shurkin is a nonresident senior fellow at the Africa Center.

2. What is South Africa’s political motivation in aligning with these two militaries?

South Africa has repeatedly emphasized its neutrality vis-à-vis Russia’s invasion of Ukraine. South African President Cyril Ramaphosa has pushed for negotiations in official calls with Russian President Vladimir Putin and asserted that he would be willing to mediate a peaceful resolution to the conflict. That said, South Africa is stretching the limits of neutrality. Hosting high-level bilateral meetings, describing relations as “friendly,” and participating in “routine” joint military drills indicate support for, rather than cordiality toward, Russia. South Africa’s friendly and routine relations are antithetical to the West’s aims to isolate, deter, and defeat Russia. In an increasingly polarized diplomatic environment, non-alignment can appear to be de-facto alignment with Russia.   

South Africa’s particular approach to non-alignment in this case contributes to the tension. While South Africa has officially acknowledged the illegality of the invasion, it has resisted pressure to enforce sanctions or cut ties. Its actions increasingly belie its stated desire to remain neutral and independent from ‘great power’ struggles, and some segments of the South African public are questioning the government’s stance.

From a military readiness standpoint, the exercise included joint tactical maneuvers as well as rescue and recovery drills; the latter align with threat risks presented by piracy and illicit activities in the Indian Ocean. These shared drills represent a legitimate training opportunity for the South African Defense Force (SADF). South Africa is not the primary partner or recipient of US naval training exercises in Africa, although SADF participated in Shared Accord last summer and other military-to-military assistance focusing on developing and improving medical capabilities. South Africa has previously participated in US Africa Command’s Indian Ocean drills, which focus on East African nations, although not in the past few years. Other US naval exercises in Africa focus on the Gulf of Guinea and the Mediterranean.

—Sarah Daly

3. What new lessons did we learn from this exercise regarding Russian and Chinese capabilities?

Russia brought a hypersonic missile, apparently for display purposes. This show and tell indicates Russia’s desire to demonstrate its technical strength to the world and prove that it can maintain external commitments despite the strain of its war in Ukraine on its armed forces, economy, and political stability. 

—Sarah Daly

China’s focus on the maritime domain, through a sustained investment in shipbuilding, is a key element of its strategic objective to disrupt the international order and challenge the United States. The exponential growth of China’s maritime forces has already resulted in it being the world’s largest navy with approximately 340 battle force ships, compared to 294 in the US Navy’s current inventory. This trilateral exercise, conducted thousands of miles from its shoreline, is further evidence of its strategic plan to become a global navy. As China’s sustained investment in shipbuilding results in expected growth to 400 warships by 2025 and 440 warships by 2030, policymakers must be aware of China’s intent to use its maritime force for worldwide power projection and expanded naval diplomacy.

—Marek Jestrab

4. What message does it send to have these drills coincide with the one-year anniversary of the war in Ukraine, and with reports of increased Chinese support of Russia in the war?

At the very least, it signals that South Africa is not concerned with Ukraine and not interested in towing the Western line. South Africa would prefer to highlight its independence and its willingness to conduct its international relations as it sees fit. 

—Michael Shurkin

Russia’s recent diplomatic and military push in South Africa signals that it can continue its foreign relations as a bilateral security partner despite the ongoing crisis in Ukraine. Conducting drills with Russia and China at such a contentious time seemingly suggests that South Africa condones Russia’s actions in Ukraine—even if its stated stance is one of non-alignment. South Africa’s asserted neutral position is shared by fellow BRICS member India, which has also faced scrutiny for maintaining diplomatic, economic, and military relations with Russia following the invasion of Ukraine. India has continued to purchase Russian oil and participated in Russia’s Vostok 2022 military exercises with China in August. We should be circumspect about assigning greater meaning to the timing or “message” of these drills.

—Sarah Daly

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Atlantic Council’s Africa Center releases twin reports on Russia’s growing influence in Africa  https://www.atlanticcouncil.org/news/press-releases/atlantic-councils-africa-center-releases-twin-reports-on-russias-growing-influence-in-africa/ Mon, 27 Feb 2023 17:00:00 +0000 https://www.atlanticcouncil.org/?p=617192 At the one-year anniversary of Russia’s invasion of Ukraine, Africa Center shines spotlight on Russian campaign to curry favor on the African continent  WASHINGTON, DC – FEBRUARY 27, 2023 — The Atlantic Council’s Africa Center, in partnership with the Policy Center for the New South (PCNS), has released new research on Russia’s influence in Africa. […]

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At the one-year anniversary of Russia’s invasion of Ukraine, Africa Center shines spotlight on Russian campaign to curry favor on the African continent 

WASHINGTON, DC – FEBRUARY 27, 2023 — The Atlantic Council’s Africa Center, in partnership with the Policy Center for the New South (PCNS), has released new research on Russia’s influence in Africa. Amid the one-year anniversary of Russia’s illegal invasion of Ukraine, the new twin reports, for the first time published in both English and French, detail Russia’s wide-ranging security influence on the African continent. 

The reports delve into the ways Russia has curried favor and influence with African countries – efforts that culminated in seventeen African countries abstaining from the March 2022 UN General Assembly vote on a resolution condemning Russia’s invasion of Ukraine. This vote confirmed last week, and the growing influence of Brazil, Russia, India, China, and South Africa (the BRICS country bloc) in the region, send a clear signal to western countries that Africans are not bound to a particular partner.  

“Africa remains a crucial player in this new geopolitical order because of its natural resources and emerging business opportunities,” said Ambassador Rama Yade, director of the Africa Center. “The war in Ukraine has shown how important Africa can and will be as a strategic partner of the future – not only because of energy, but because they represent 30 percent of UN votes.” 

The first report, “Russia’s influence in Africa, a security perspective,” was written by Atlantic Council nonresident fellow Sarah Daly. She contends that Russia’s increased engagement with African states poses several security challenges for both the continent and the international community. Daly finds that Russia’s increasing engagement with African states challenges Western interests in the region, including efforts to promote democracy, human rights, and good governance. 

The second report, “Military relations between Russia and Africa, before and after the war in Ukraine,” by PCNS Senior Fellow Abdelhak Bassou, examines the evolution of military relations between Russia and Africa, both before and during the war in Ukraine. Bassou argues that military cooperation between Russia and African states has deep historical roots; his research identifies three phases in the development of these relations: the Cold War period, the post-Cold War period, and the period after the launch of the war in Ukraine. 

The Africa Center officially launched the reports on February 21st at an event featuring keynote remarks from Major General Kenneth. P. Ekman, director of Strategy, Engagement, and Programs at the US-Africa Command.  

For more information please contact press@atlanticcouncil.org


About the Atlantic Council’s Africa Center:  
The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent. Through high-level relationships and a track record of well-respected analysis, the Africa Center speaks directly to the stakeholders who matter, shaping policy on the foremost issues of this dynamic continent 

About the Policy Center for the New South: 
The Policy Center for the New South is a Moroccan think tank with a leading role in Africa aiming to contribute to the improvement of economic and social public policies that challenge Morocco and the rest of Africa as integral parts of the global South. As such, the PCNS brings together researchers, publishes their work and capitalizes on a network of renowned partners around the world.  

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The African Union is at a crossroads. It’s time to seize its moment. https://www.atlanticcouncil.org/blogs/africasource/the-african-union-is-at-a-crossroads-its-time-to-seize-its-moment/ Thu, 23 Feb 2023 17:52:48 +0000 https://www.atlanticcouncil.org/?p=615524 The African Union needs to be strong inside to be strong outside. The new chair will need to kick off an exploration of the Union's organization, identity, role, and means.

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Last week, the thirty-sixth Africa Union (AU) summit marked a fresh beginning with a new chair, Comoros President Azali Assoumani, who will face several challenges as the bloc seeks to chart a new course for Africa at a time when the political scene could see a significant shift. According to the electoral calendar, six presidential elections will take place in 2023, with Nigeria in February, Sierra Leone in June, Liberia in October, Madagascar in November, the Democratic Republic of Congo in December, and Gabon also in the second half of the year. Libya’s unsettled political situation means the country could not organize its elections initially scheduled for December 2021, and it is unclear whether elections will be held this year—as protesters and many in civil society have demanded. In South Sudan, elections planned for February 2023 have been postponed again.

Yet this is also a moment of rare opportunity for the AU. It is expected to play a crucial role in the new geopolitical order. This new role will require responsibilities and a vision. How the Union responds could shape the future of the AU and whether it emerges as a continental actor on par with other international blocs.

Like the outgoing AU chair (Senegalese President Macky Sall), the new chair will be confronted with many short-term hotspots from Bamako to Addis Ababa. Sudan remains suspended from the AU. Meanwhile, Mali, Guinea, and Burkina-Faso remain suspended from both the AU and the Economic Community of West African States (ECOWAS). These three West African countries will have to manage tough political transitions after experiencing coups—especially as they all sit in a region where jihadist movements continue to destabilize large areas of the Sahel. Months after the signing of ceasefire agreements between the federal government and rebels in Tigray, Ethiopia still needs to progress toward peace. Nongovernmental organizations continue to face difficulties accessing and distributing food and medical supplies in Tigray. War-crimes investigations remain difficult. The withdrawal of Eritrean troops is happening slowly. And over in the African Great Lakes, Rwanda and the Democratic Republic of the Congo (DRC) are clashing around the M23 rebel group’s role in the region as presidential elections in the DRC quickly approach.

In addition, Assoumani will also need to help the continent manage pressing challenges such as food security, climate change, energy access, and global-governance reforms—and the implementation of the free trade area. The management of these challenges depends on regional and worldwide cooperation with global powers.

Comoros will also be the AU’s primary point of contact for the follow-up and implementation of multiple commitments emerging from a slate of summits over the past two years, including the US-Africa Leaders Summit, the China-Africa Summit, the Europe-Africa Summit, the Tokyo International Conference on African Development, the Confederation of Indian Industry-Exim Bank Conclave, and, soon, the Russia-Africa Summit. At the summits that have taken place, participants have pledged billions in investments for Africa and support for African seats in various international bodies, including the Group of Twenty (G20) and the United Nations (UN) Security Council.  

Individual nations cannot or should not solely address many of the challenges that lie ahead. In addressing issues such as supply shortages due to the war in Ukraine, representation at the next UN climate conference, access to finance, or Bretton Woods Institutions reforms, African nations must speak as a team to secure the best outcomes for all of them. That also applies to Africa’s relationship with the United States; the continent will need to collectively voice its priorities in regard to Washington’s plans for digitalization, trade (with the forthcoming expiration of the African Growth and Opportunity Act), and more. The AU must draw on its collective agency to harmonize national positions and face these continent-wide issues together. This will require strong leadership from the new chair.

Being a group of four islands with less than one million inhabitants, Comoros may seem a minor player in comparison to the African powerhouses that typically chair the AU, with the Union representing a continent of 1.3 billion people. The country has the opportunity to make its mark and turn its apparent weakness into a strength: African island diplomacy can be vital for advancing the continent’s defense and climate priorities. The United States recently launched an Indo-Pacific Strategy, and the Indian Ocean Commission, of which Comoros is a member, could serve a strategic role—especially as the West becomes increasingly concerned about the region, most recently because of ongoing joint naval exercises between China, Russia, and South Africa near Durban. An island strategy could have an impact beyond Africa, benefitting all small-island developing states. Comoros could advocate for alleviating island states’ financial problems—since 2008, the external debt stocks of small-island developing states have more than doubled. And, islands feel the brunt of climate change, as President of Seychelles Waval Ramkalawan explained at the Atlantic Council in December; Comoros has the opportunity to use its leadership in the AU to advocate for addressing the continent’s climate challenges.

Africa is at a crossroads. The African Union needs to be strong inside to be strong outside. It cannot request global governance reforms without exploring its own organization, identity, role, and means.

The African identity

The Union’s identity inevitably depends on the question of what it means to be African. Europe’s experience with understanding its own identity holds lessons. For example, Europe has wrestled with whether Russia and Turkey should be included. In the same vein, where does Africa begin and end? What does it mean to be African?

Some Africans even deny this word any legitimacy, preferring the terms “Kemit” or “Katiopa,” as they claim their ancestors would never have called themselves “African.” In Africa, people often refer to themselves first by the community to which they belong. In fact, most Africans know little about each other on the continent. Yet institutions are bringing African nations—or at least regions—together. For example, the African Cup of Nations, the continent’s premier soccer event, is as famous in North Africa as much as it is in Sub-Saharan Africa. And even though the Maghreb is sometimes lumped into the Middle East (as if being African means being black), Morocco is joining African institutions in an attempt to connect with other countries on the continent, having applied to join ECOWAS and having rejoined the African Union in January 2017 after thirty years of absence. After rejoining, Morocco’s king said “it is so good to be back home.”

Pan-Africanism

Africa, for all the diverse ideas around its identity today, has long had a pan-continental impulse. Inspired by the father of Ghana’s independence, Kwame Nkrumah, the Pan-Africanist movement has paved the way for the creation of the Organization of African Unity, the African Development Bank, the airline Air Afrique (which has since ceased operations), and a range of monetary, customs, and economic unions. Today, the African Union is twenty years old. Pan-Africanism created not only institutional change; it fueled an unprecedented cultural wave that inspired the first International Congress of African/Black Writers and Artists in Paris and Rome in the 1950s, the first World Festival of Negro Arts in Dakar in 1966, the Pan-African Festival of Algiers in 1969, the second World Festival of Negro and African Arts and Culture in Lagos in 1977, and similar seminal events.

Even though it is less vibrant today, the Pan-Africanist movement continues to inspire the African Renaissance. The African Continental Free Trade Area (AfCFTA), established in 2018 and launched in January 2021, is the latest illustration of this. As the largest free trade area in the world, it aims to establish a dynamic market, its consumers and customers already attracting the appetite of the global private sector. Beyond technical considerations such as tax harmonization, lowering customs tariffs, and the construction of viable infrastructure, the AU’s next mission will likely be to remedy the balkanization of the continent that unfolded in the 1950s and 1960s as colonial empires dissolved and the continent was broken up into countries. At the thirty-sixth AU summit, the next steps for the AfCFTA were a topic of debate.

Missed opportunities

Many of Nkrumah’s proposals never took off. Those include the idea of an African constitution and a continental parliament with two chambers, one of which would represent the population while the other would have all states, regardless of size or population, represented equally. Africa still doesn’t have a joint army (the African Standby Force is still on standby) or a universal passport (which has only been ratified by four countries). The Great Museum of Africa, planned by the AU, was initially supposed to open in 2016. Many of the AU’s continental institutions have no effect on the ground. Documents such as the African Charter on Human and Peoples’ Rights adopted in June 1981 or the Peace and Security Council Protocol adopted in July 2002 have not been implemented either.

Despite the very effective presidency of Paul Kagame, which improved the Union’s financial autonomy in 2016, the AU still needs the means for its economic sovereignty as it is still too dependent on foreign subsidies: In 2021, 65 percent of the AU’s 650-million-dollar budget was funded by international contributors. The African share, meanwhile, is concentrated in the hands of five countries. To finance the budget, the AU introduced in 2016 a 0.2 percent tax on all eligible goods imported into the continent. But only seventeen countries have actually implemented it as of June 2020. There is an urgent need to achieve budgetary sovereignty for the AU so that it can make its own choices freely. Otherwise, it will never be able to independently demand the seats Africans covet in the G20 or the UN Security Council.  

The future

It is, above all, for the sake of its citizens that the African Union must raise its ambitions. The AU has a historical responsibility to foster a community of African nations coming together in a shared voice, as dreamed by Nkrumah and fellow Pan-African leaders.

Going forward, among numerous AU flagship projects, the new chairperson will need to lead two major and urgent initiatives—the accomplishment of them would impact a generation of Africans.

First, he’ll have to help craft an African vision for the climate and an African green bank, a necessary response to today’s climate challenges that will compensate for the shortcomings of the international community and unsuccessful UN climate convenings. Each year, the world incurs a fifty-five-billion-dollar debt to the African continent: This debt is the value of the carbon-absorbing service provided by the Congo Basin, the largest carbon sink in the world, covering six countries (Cameroon, the Central African Republic, the DRC, Equatorial Guinea, Gabon, and the Republic of the Congo). But Africans have never monetized it as a service. African countries should work together to raise the issue of the world’s debt to the African continent at the next UN climate conference.

Second, to limit the migration movements to Europe and strengthen people-to-people ties inside the continent, they’ll have to address free movement across the continent, which will require renewing the old physical infrastructure (roads and rail), building the Single African Air Transport Market, and fostering access to digital infrastructure through the reduction of data costs. This transition will require discussing an African passport on a continent where more than half the people have neither identity documents nor birth certificates. Creating such a passport would be a strong signal of unity. It is also critically important to negotiate the next steps of the Free Trade Area.

This is no small charge for the Union’s next leader. But anything less would do a disservice to 1.3 billion citizens who are ready to emerge on the world stage.


Rama Yade is the senior director of the Atlantic Council’s Africa Center and a senior fellow at the Europe Center. She is a professor at Sciences Po Paris and Mohammed 6 Polytechnic University in Morocco. She was a member of the French cabinet, serving as deputy minister for foreign affairs and human rights and ambassador to UNESCO.

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Russia’s influence in Africa, a security perspective https://www.atlanticcouncil.org/in-depth-research-reports/report/russias-influence-in-africa-a-security-perspective/ Thu, 23 Feb 2023 16:45:31 +0000 https://www.atlanticcouncil.org/?p=606194 In partnership with the Policy Center for the New South (PCNS), the Africa Center is proud to present the joint report "Russia's influence in Africa, a security perspective", by Sarah Daly and Abdelhak Bassou, on the first anniversary of the war in Ukraine. 

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Russia’s influence in Africa, a security perspective

Military relations between Russia and Africa, before and after the war in Ukraine

English

In partnership with the Policy Center for the New South (PCNS), the Africa Center is proud to present a joint report on Russia’s influence in Africa, a security perspective on the first anniversary of the war in Ukraine. 

Africa emerged as a major player in this conflict on March 3, 2022, when seventeen African states abstained from voting on the United Nations General Assembly resolution condemning the Russian invasion of Ukraine. The number of abstaining countries was surprising, as well as which specific nations abstained; some, like Morocco and Senegal, are known for their proximity to the Western camp. Moreover, unambiguous statements that accompanied nations’ votes made their intentions patent: Some invoked the hypocrisy of the Western world, quick to save Ukraine while ignoring wars in Africa. Other nations expressed grievances regarding the treatment of African students at the Polish border in the early days of the conflict. Others still wished to preserve the Russia that fought on their side during wars of independence and fought the racist regime of apartheid in South Africa. Finally, some nations wished to remain non-aligned with either of the belligerents, so as not to threaten commercial relationships, or simply remain neutral towards a war that did not concern them. 

Despite these intentions, Africa was quickly roped into the conflict. On June 3rd, Russian President Vladimir Putin met with Senegalese President Macky Sall, in his capacity as current Chair of the African Union (AU), to discuss blocked grain shipments that threatened to worsen food insecurity in Africa. Their meeting in Sochi was publicized internationally. The energy crisis and Europe’s supply chain issues then drew the African continent as courted player in the conflict, with a string of natural resource discoveries from Senegal to Mozambique promising potential alternatives. 

The beginning of 2023 ushered in an elaborate diplomatic dance that included visits by Russian Foreign Minister Sergey Lavrov to Angola, South Africa, Eswatini, Tunisia and Mauritania. Qin Gang, China’s new Minister of Foreign Affairs, visited five countries including Ethiopia and Egypt. Following suite, U.S. Treasury Secretary Janet Yellen made an unexpected visit to Senegal, Zambia, and South Africa. The Ambassador to the United Nations Linda Thomas-Greenfield, Vice President Kamala Harris, Secretary of Defense Lloyd Austin and the presidential couple then did the same. With the upcoming Russia-Africa Summit in St. Petersburg and the BRICS Summit in Durban, hosted by South Africa, in summer 2023, the United States is determined to flex the resources at its disposal to plead its case. At the US-Africa Summit in December 2022, the country pledged to invest $55 billion in Africa over the next three years, to reform the Bretton Woods institutions, and to help improve Africa’s representation within the G20 and the United Nations Security Council.

This summit – the first of its kind in eight years – followed the China-Africa summit held in Dakar in November 2021, the European Union-African Union meeting in Brussels in February 2022, the 17th CII-EXIM Bank Conclave on the India Africa Growth Partnership in July 2022, and the Tokyo International Conference on African Development (TICAD) in August 2022. The United States, which had seemingly withdrawn interest in Africa under President Donald Trump’s isolationist “America First” policy and had then given priority to the Indo-Pacific region and Ukraine under President Joe Biden, had no choice but to re-engage. The nation is no longer merely concerned with managing emergency crises but also seeking new strategic alliances. After a year of war in Ukraine, Africa has emerged as the epicenter of a new geopolitical order with two competing multilateral systems pitted against one another.  

The Africa that the United States is seeking to re-engage with has changed significantly. It is important to shift the paradigm and adopt a more creative approach to foreign policy. For a long time, a strategic approach to foreign policy that dates from the Cold War has dominated. This began when the West sought to contain communist advance in the continent, and persisted in the anti-terrorist struggle against Al Qaeda and the Islamic State organization. The deal was simple: the West would favor and trade with countries that supported Western priorities. This made it impossible for African states to remain neutral. Worse still, concerns for democracy and African economic emergencies were never a priority; we even saw autocratic regimes receive quiet support on the grounds that they were anti-communist or aiding in the fight against terrorism.

This simplistic approach has done much to weaken the position of the West in Africa. It continues to influence African perceptions, by giving credence to Russian disinformation campaigns. Today, double talk and double standards are tolerated less and less and encounter increased scrutiny from young Africans who are quick to mobilize through social media. There is nothing more devastating to the West than to turn a blind eye to certain autocracies while vilifying others, or to legitimately oppose Russian aggression in Ukraine while largely ignoring the tragic situation in the Great Lakes for the past thirty years.

It is important to re-engage with an approach that foregrounds the needs of African populations and orients the actions of development agencies, while adopting a cooperative approach that respects the decision-making autonomy of African states. This is especially important because development impacts security, and its failures can tip impoverished populations into war. A myriad of issues must be addressed, including the decisive role of women, youth employment, the pacification of community relations, local governance, global warming, and the opening of schools. It is imperative to provide practical solutions to these issues, which, if left unresolved, will continue to drive African populations into the arms of dark forces. 

The situation in the Sahel offers a striking illustration. After fighting a futile war against the terrorist threat for 10 years, French and European troops in Barkhane, Tabuka, and Sabre have been asked to pack their bags by the new rulers of Bamako and Ouagadougou, who rose to power following three military coups. The MINUSMA (United Nations Multidimensional Integrated Stabilization Mission in Mali) has been minimally renewed and stands precarious. Popular protests of Western, and particularly French, interference have erupted throughout the region. Some protestors have been seen brandishing Russian flags and, more menacingly, there have been sightings of Wagner militia troops. Though ostracized in Europe for its war against Ukraine, Russia seems far more welcome on the African continent. 

How deep are the roots of Russian influence in Africa? Thirty years after the end of the Cold War, what is Vladimir Putin’s ambition in a region where he has signaled great interest? How can the West respond to this strategy of influence and sway young African opinions that seek a path to sovereignty for their continent? Is it possible for former European powers to overcome the mistrust that endures from the colonial period? What will cooperation with the United States entail? Historically, the United States has successfully convinced several parts of the world of the strength of its model. Will it succeed in reaching African hearts and minds today? 

The authors of this report, Sarah Daly and Abdelhak Bassou, are fellows at the Atlantic Council and Policy Center for the New South and analyze Russia’s role in Africa from a security perspective. Beginning from a historical understanding of Russian relations since the fifteenth century, they analyze the evolution and current dynamics of the nation’s influence. Considering the security tools Russia deployed on the continent (including training, technology transfer, defense agreements, militias, etc.), they examine the sustainability of Russian strategy in light of the uncertain war in Ukraine and African expectations. This report, published in both English and French for the first time since our collaboration began, is a valuable resource to understand the critical changes underway for the continent and their impact on the rest of the world. 

Amb. Rama Yade, Senior Director, Africa Center 

Karim El Aynaoui, Executive President, Policy Center for the New South 

Français

En partenariat avec le Policy Center for the New South (PCNS), Africa Center est fier de présenter un rapport conjoint sur l’influence de la Russie en Afrique, une perspective sécuritaire, à l’occasion du premier anniversaire de la guerre en Ukraine. 

L’Afrique est apparue comme un acteur majeur de ce conflit lorsque le 3 mars 2022, dix-sept Etats africains se sont abstenus lors du vote de la résolution de l’Assemblée générale des Nations Unies condamnant l’invasion russe en Ukraine. Le nombre a surpris, tout autant que l’identité des pays abstentionnistes dont certains, à l’instar du Maroc et du Sénégal, sont connus pour leur proximité avec le camp occidental. De plus, les explications de vote , argumentées et sans ambiguïté, qui ont été avancées par ces Etats montraient leur détermination: certains ont invoqué l’hypocrisie du monde occidental, prompt à sauver l’Ukraine tout en ignorant les guerres africaines, d’autres ont voulu manifester leur mauvaise humeur face au traitement réservé aux étudiants africains à la frontière polonaise aux premières heures du conflit, une 3ème catégorie de pays ont voulu préserver une Russie qui fut à leurs côtés pendant les indépendances et a combattu, en Afrique du Sud, le régime raciste de l’apartheid. D’autres, enfin, ont voulu se placer à équidistance des belligérants – ayant des relations commerciales avec tous – ou tout simplement rester neutres, au nom du non-alignement par rapport à une guerre qui ne les concernait pas. 

Quoique. Très vite, l’Afrique a été impactée par ce conflit, comme l’a montré la rencontre mondialement médiatisée du 3 juin à Sotchi entre le Président russe, Vladimir Poutine, et le Président Macky Sall du Sénégal, en sa qualité de Président en exercice de l’Union africaine (UA), alors que le blocage des stocks de céréales menaçait d’aggraver l’insécurité alimentaire en Afrique. La crise de l’énergie et les difficultés d’approvisionnement de l’Europe ont fait ensuite du continent un acteur courtisé du conflit en attirant l’attention sur les ressources africaines, où du Sénégal au Mozambique, nombre de découvertes récentes en ressources naturelles en font une alternative très séduisante. 

Ce début d’année 2023 est ainsi marqué par un impressionnant ballet diplomatique qui a vu le Ministre des Affaires Étrangères russe, Serguei Lavrov, se rendre en Angola, en Afrique du Sud, en Eswatini, en Tunisie et en Mauritanie. Qin Gang, le nouveau Ministre chinois des Affaires étrangères, lui, s’est déplacé dans cinq pays dont l’Ethiopie et l’Egypte. À sa suite, c’est la Secrétaire américaine au Trésor, Janet Yellen, qui, de manière inattendue, s’est rendue au Sénégal, en Zambie et en Afrique du Sud avant que l’Ambassadrice aux Nations Unies, Linda Thomas-Greenfield, la Vice-Présidente Kamala Harris, le Secrétaire à la Défense Lloyd Austin et le couple présidentiel ne lui emboîtent le pas. Alors que s’annoncent à l’été 2023 un Sommet Russie-Afrique à Saint-Pétersbourg et un Sommet des BRICS sous présidence sud-africaine à Durban, les Etats-Unis se montrent désormais déterminés à utiliser les outils à leur disposition pour mieux convaincre: ainsi, à l’occasion du Sommet Etats-Unis-Afrique de décembre 2022, ils se sont engagés à investir en Afrique 55 milliards de dollars sur trois ans, à réformer les institutions de Bretton-Woods, à soutenir une meilleure représentation de l’Afrique au sein du G20 comme du Conseil de sécurité des Nations Unies. Ce sommet – le premier en huit ans – faisait suite au sommet Chine-Afrique de Dakar en novembre 2021, à la rencontre Union européenne-Union africaine de Bruxelles en février 2022, au 17ème conclave de la banque CII-EXIM sur le partenariat de croissance Inde-Afrique en juillet 2022 et à la Conférence internationale de Tokyo sur le développement en Afrique d’août 2022, TICAD. Les Etats-Unis, qui avaient jusqu’alors semblé en retrait de l’Afrique au nom du principe isolationniste « America First » sous Donald Trump, puis de la priorité donnée à l’Indo-Pacifique et à l’Ukraine sous Joe Biden, n’avaient d’autre choix que de relever leur niveau d’implication. Il ne s’agit plus seulement de gérer les crises dans l’urgence mais de rechercher de nouvelles alliances stratégiques. Après un an de guerre en Ukraine, c’est l’Afrique qui est devenue l’épicentre d’un nouvel ordre géopolitique où se disputent deux systèmes multilatéraux concurrents. 

L’Afrique dans laquelle les Etats-Unis cherchent à se réengager, a aussi beaucoup évolué. Il est important de changer de paradigme et d’adopter un usage plus créatif de la politique étrangère. Pendant longtemps, la Guerre froide a donné lieu à un usage stratégique de la politique étrangère, l’Ouest cherchant en priorité à contenir la poussée communiste sur le continent. Cette stratégie s’est poursuivie dans le cadre de la lutte anti-terroriste contre Al Qaida et l’organisation État islamique. Le deal était simple : il fallait privilégier et faire commerce avec ceux qui soutenaient les priorités occidentales. Dès lors, il devenait impossible pour les États africains de rester neutres. Pire encore, la question démocratique ou les urgences économiques africaines n’étaient pas prioritaires dans un tel scenario et on a même vu ainsi des régimes autocratiques être soutenus à bout de bras au motif qu’ils étaient anti-communistes ou qu’ils apportaient leur aide à la lutte anti-terroriste. Cette approche simpliste a beaucoup contribué à affaiblir les positions occidentales en Afrique. D’une certaine manière, elle continue à avoir cours, donnant du crédit aux campagnes de désinformation russes. À une époque où les doubles discours ou les doubles standards sont de moins en moins tolérés et de plus en plus scrutés par les jeunes opinions africaines stimulées par la puissance mobilisatrice des réseaux sociaux, il n’y a rien de plus dévastateur que de fermer les yeux sur certaines autocraties tout en en vilipendant d’autres, ou encore de s’offusquer légitimement de l’agression russe en Ukraine tout en ne prêtant pas la même attention à la situation tragique qui perdure depuis trente ans dans les Grands Lacs. 

Il est important de renouer avec une approche qui tienne davantage compte des besoins des populations africaines et d’orienter l’action des agences de développement dans le sens du, avec une approche plus coopérative et respectueuse de l’autonomie de décision des Etats africains. Parce que le développement est aussi une question de sécurité, toute faillite en ce domaine étant alors susceptible de faire basculer les populations paupérisées vers la guerre. Qu’il s’agisse du rôle déterminant des femmes, de l’emploi des jeunes, de la pacification des relations communautaires, de la gouvernance locale ou du réchauffement climatique, de l’ouverture des écoles, il est impératif d’apporter des réponses efficaces à ces questions fondamentales qui, si elles demeuraient non résolues, continueraient à précipiter les populations africaines dans les bras de forces obscures. 

Illustration éclatante de cette tension: la région Sahel où, après 10 ans d’une vaine guerre contre la menace terroriste, les troupes françaises et européennes de Barkhane et Tabuka en passant par Sabre ont été priées de plier bagage par les nouveaux maîtres de Bamako et de Ouagadougou, issus de trois coups d’État militaires, tandis que la Minusma (Mission multidimensionnelle intégrée des Nations Unies pour la stabilisation au Mali) a fait l’objet d’une reconduction aussi précaire qu’a minima. Partout, dans la région, monte une protestation populaire contre l’ingérence occidentale, notamment française, au fur et à mesure qu’apparaissent des drapeaux russes dans certains cortèges et, de manière plus menaçante, les troupes de la milice de Wagner. Isolée en Europe dans sa guerre contre l’Ukraine, la Russie semble moins l’être sur le continent africain. 

Quelles sont l’étendue et les racines de l’influence russe en Afrique? Trente ans après la fin de la Guerre froide, quel est l’objectif de Vladimir Poutine dans une région où il affiche de grandes ambitions? Comment les Occidentaux peuvent-ils répondre à cette stratégie d’influence et séduire les jeunes opinions africaines à la recherche d’une voie plus souveraine pour leur continent ? Est-il possible pour les anciennes puissances européennes de surmonter les méfiances héritées de la période coloniale? Quelle coopération avec les Etats-Unis ? Ceux-ci ont su, à plusieurs phases de leur histoire, convaincre une partie du monde de la force de leur modèle, sauront-ils aujourd’hui atteindre les cœurs africains? 

Les auteurs de ce rapport, Sarah Daly et Abdelhak Bassou, fellows à Atlantic Council et Policy Center for the New South, analysent le rôle de la Russie en Afrique d’un point de vue sécuritaire. Partant d’une perspective historique depuis le XVème siècle, ils analysent les évolutions puis les ressorts actuels de l’influence russe. Décrivant les outils sécuritaires déployés par les Russes sur le continent – formation, transfert technologique, accords de défense, milices etc -, ils interrogent également la soutenabilité d’une telle stratégie à la lumière de la guerre incertaine engagée en Ukraine et des attentes africaines. Ce rapport, publié en anglais et en français pour la première fois depuis notre collaboration, est une ressource précieuse pour comprendre le caractère crucial des mutations en cours pour le continent et leur impact sur le reste du monde. 

Amb. Rama Yade, Senior Director, Africa Center 

Karim El Aynaoui, Executive President, Policy Center for the New South  

Report authors

Abdelhak Bassou
Senior Fellow
Policy Center for the New South

Read Dr. Bassou’s bio

Abdelhak Bassou is Senior Fellow at the Policy Center for the New South, Member of its Editorial & Research Oversight Steering Committee, and Affiliate Professor at the Faculty of Governance, Economic and Social Sciences (FGSES) of the Mohammed VI Polytechnic University (UM6P).

Specializing in security, strategy and defense studies, he previously occupied several offices within the Directorate General of the Moroccan National Security where he was Borders’ Division Chief from 1978 to 1993. He was appointed Director of the Royal Institute of Police in 1998, before serving as the Chief of Regional Security in Errachidia from 1999 to 2003, and Sidi Kacem from 2003 to 2005. In 2006, he became Head of the Central General Intelligence until 2009. Bassou contributed to the output of several endeavors of international organizations including the Council of Arab Interior Ministers from 1986 to 1992, where he represented the Directorate General of National Security in various meetings.

Since 2018, Bassou has been directing and editing the collectively written annual report on Africa’s geopolitics, originally titled ‘Miroir d’Afrique’ and published by the Policy Center for the New South. His works have been featured in numerous world-renowned think tanks and institutions, including a contribution in ‘Towards EU-MENA Shared Prosperity’ (Bruegel, 2017),  Evolving Human Security Challenges  in the Atlantic Space (Jean Monnet Network, 2019), and is also recurring author and participant in the HEC-PCNS Strategic Dialogues and its corresponding written volumes. 

Abdelhak Bassou holds a Master’s Degree in Political Science and International Studies from the Faculty of Law, Economics and Social Sciences of Agdal in Rabat.

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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The power of renewables: Productive use appliances as climate change solutions in sub-Saharan Africa https://www.atlanticcouncil.org/blogs/energysource/the-power-of-renewables-productive-use-appliances-as-climate-change-solutions-in-sub-saharan-africa/ Tue, 21 Feb 2023 16:52:08 +0000 https://www.atlanticcouncil.org/?p=614065 Productive use appliances can mitigate emissions while encouraging climate adaptation and resilience in sub-Saharan Africa. They can push households up the energy ladder and stimulate economic development, if managed correctly.

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Despite contributing the least to greenhouse gas emissions, sub-Saharan Africa is the region most affected by climate change, with key development sectors already experiencing widespread loss and damage attributable to human-induced climate change. Africa’s annual temperature has risen consistently over the years, increasing at an average rate of 0.13 degrees Celsius per decade since 1910, accelerating to 0.29 degrees Celsius per decade since 1981. And with these rising temperatures have come increased frequency and severity of climate events like erratic precipitation, extreme weather events, slow-onset changes such as desert locust swarms, and rising seas. These impacts pose threats to agricultural and industrial output as well as people’s health and livelihoods.

570 million people in the region, or 48 percent, lack access to electricity, while 900 million people, or 83 percent, lack access to clean cooking. This leaves the unserved hooked to polluting and fossil-based alternatives to meet basic energy needs, further impacting the region’s ability to grapple with climate change. Productive use appliances (PUAs) powered by renewables can play a critical role in reducing carbon emissions and mitigating the effects of climate change, while enabling a wide range of climate adaptation and resilience activities.

Productive use appliances are energy-using, productivity-increasing, and income-generating devices designed for specific economic activities within agriculture and small and medium enterprises. Some common examples of PUAs include solar water pumps for irrigation; cold storage for preservation of food; solar cookstoves; poultry lighting, egg incubators and milking machines for livestock; and grain mills for small-scale food processing. Renewable energy sources, such as solar and wind, powering grids, off-grid appliances, and productive loads connected to mini-grids, offer a sustainable and accessible solution to meeting the energy needs for PUAs.

The benefits of PUAs in sub-Saharan Africa

Adoption of productive uses is a significant leap up the energy ladder as increased use of electricity helps unlock productivity and results in increased incomes. With increased incomes, households can afford more appliances, like refrigerators and electricity for cooking, that provide health benefits and time savings. PUAs can serve as loads that enhance the viability of off-grid, mini-grid, and utility service, helping reduce energy costs and improve the quality of supply. They can also help create local jobs in areas such as manufacturing, installation, maintenance, and repair. This not only provides employment but also strengthens the local economy. By improving livelihoods and food security, PUAs can help to reduce poverty and increase economic growth.

Climate mitigation, adaptation, and resilience

By reducing the use of fossil fuels and the associated greenhouse gas emissions, the productive use of renewable energy appliances helps mitigate and adapt to the changing climate. For example, a solar-powered water pump can provide farmers with access to irrigation even during times of drought, reducing the need for diesel-powered pumps that contribute to greenhouse gas emissions and helping communities combat food insecurity. Similarly, using a solar-powered refrigerator for food storage can help reduce emissions from traditional refrigeration systems that rely on refrigerants with high global warming potential. They also provide communities with access to cold storage for food and medicine, which can be critical during times of extreme weather and power outages.

Finally, the productive use of renewable energy appliances can help build resilience to the impacts of climate change. By reducing dependence on fossil fuels, communities can become more self-sufficient and less vulnerable to price spikes and supply disruptions. Additionally, renewable energy systems can be designed to be modular, scalable, and circular, allowing communities to adapt to changing energy needs over time.

Challenges and solutions

Despite the numerous benefits, much of its potential is yet to realized. For example, over 5.4 million small-holder farmers could use solar water pumps in sub-Saharan Africa, but less than 10 percent of them do so. This is due to constraints that impact both demand and supply of PUAs: the high, potentially prohibitive cost of PUAs and electricity supply; the patchy quality and reliability of supply, especially grid-based supply; the dearth of PUAs themselves; the lack of mechanisms to identify demand; and limited access to finance for end users and PUA suppliers.

To address these constraints, several solutions are being tested and have proven successful that can be unleashed to scale PUAs in sub-Saharan Africa:

  • Ensure that PUAs are available. Innovation, supply chain expansion, and customer targeting of PUAs is increasing uptake. For example, focused efforts in promoting solar cooling in Nigeria to fishing communities for better storage of fish, a valuable commodity, resulted in significant benefits. However, it is necessary to develop and enforce consistent quality standards for PUAs to prevent market spoilage, along with harm to consumers and the environment.
  • Provide access to finance for small businesses, end users, and providers of energy services. Results-based financing, grants, and subsidies are being leveraged to bring the private sector into underserved markets and address affordability constraints of end users. Pay-as-you-go (PAYGo) payment mechanisms, which are already prevalent in the distributed energy resource (DER) sector, enable end users to repay over a period of time, reducing affordability constraints. In order to create financing interventions that effectively support both the demand and supply of PUAs, it is necessary to assess the constraints that PUA end users and energy service and appliance providers face when accessing finance.
  • Support business development. End users need to make informed equipment and appliance purchasing decisions, have the technical skills to operate new equipment, and develop the entrepreneurial and business skills to manage business operations so that they capitalize on the PUAs. Additionally, it is crucial to provide access to markets through complementary services such as transportation and communication infrastructure. This will enable the production and sale of goods and services produced through the use of PUAs.
  • Provide sufficient electricity supply. Creating new sources of power, expanding transmission and distribution to increase supply and serve more areas, and connecting more customers are important for advancing access in the region.

It is crucial for sub-Saharan Africa to shift towards low-carbon energy sources to decrease the amount of greenhouse gases released into the atmosphere, as well as to build the region’s adaptive and resilience capacity. But this must be done in a way that supports the growth and progress of the continent and provides energy access to the millions of Africans who currently lack it. Productive use appliances powered by renewable energy show promise for fulfilling these diverse priorities.

Sharmila Bellur is a member of this year’s Women Leaders in Energy and Climate Fellowship at the Atlantic Council. She is a sustainable development consultant at the World Bank.

Meet the author

Learn more about the Global Energy Center

The Global Energy Center develops and promotes pragmatic and nonpartisan policy solutions designed to advance global energy security, enhance economic opportunity, and accelerate pathways to net-zero emissions.

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Hydrogen in the MENA region: Priorities and steps forward https://www.atlanticcouncil.org/blogs/energysource/hydrogen-in-the-mena-region-priorities-and-steps-forward/ Tue, 14 Feb 2023 17:29:33 +0000 https://www.atlanticcouncil.org/?p=612245 COP27 marked a major escalation in the MENA region's hydrogen ambitions. With several international partnerships now underway, sustained support and forward-thinking policymaking will be key.

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A number of announcements made recently concerning plans on green hydrogen development in the MENA region are set to advance the idea of a future pattern of energy interdependence, particularly in hydrogen, with Europe. Most of these plans are still undergoing feasibility studies, but some are closer to operation.

If fully implemented, such projects, might act as a catalyst for more investments in hydrogen production and infrastructure in the region and for the process of demand creation that remains at the core of the future of hydrogen development.

Furthermore, the potential in the MENA goes well beyond the region itself and its relationship with Europe. Some Gulf countries are set to export green hydrogen products to Asia and their sovereign funds and renewables companies are looking at hydrogen investments in several African countries.

The implications of the MENA region’s commitment to renewables development and to hydrogen in particular are thus wide-ranging and should be supported at the policy and operational level by, among others, the EU, the multilateral finance development institutions, and other international partners.

Many projects were announced at COP27. Egypt, the host country, was the main protagonist: 9 memoranda of understanding (MoUs) on feasibility studies on production of green hydrogen and green ammonia were signed. Such products would mostly be exported to European and Asian markets. If turned into investment decisions and implemented fully, the nine projects are supposed to be worth around $83 billion and to produce collectively 7.6 million tons of green ammonia and 2.7 million tons of green hydrogen per year, when fully operational. Also at COP27, the Egyptian authorities and a consortium of local and international investors announced the commissioning of the first phase of what is supposed to become the first integrated green hydrogen plant in Africa.

The most noticeable development at a political level in the field of hydrogen development regarded EU-Egypt cooperation, when the President of the European Commission von der Leyen and Egypt’s President al-Sisi issued a Joint Statement on the EU-Egypt Renewable Hydrogen Partnership and the Vice President of the European Commission and its Energy Commissioner signed a MoU, with the Egyptian Ministers of Oil/Petroleum and Electricity/Renewables, to establish a strategic partnership on renewable hydrogen. The two sides agreed to set up an EU-Egypt Hydrogen Coordination Group and to organize an annual meeting of a Business Forum that would include industrial and energy players.

Furthermore, on November 9, Egypt’s President and Belgium’s Prime Minister launched a new international platform on hydrogen, named the “Global Renewable Hydrogen Forum”.

After COP27, seven more MoUs were signed by the relevant Egyptian agencies with various investors to conduct feasibility studies on new projects with a view to setting up facilities to produce green hydrogen and its derivatives.

Egypt is not the only Arab country to move dynamically on this front. Governments, sovereign funds, and industrial players in Saudi Arabia, the United Arab Emirates, Oman, and Morocco are acting quickly and boldly.

Saudi Arabia, which launched a comprehensive Saudi Green Initiative in 2021, is planning a substantial development of green hydrogen and green ammonia production centered around NEOM, a new city and area to be developed in the northwestern corner of the country. If fully implemented, the project would set up the world’s largest utility green hydrogen facility. The Green Initiative also includes thirteen renewable energy projects, with a combined capacity of 11.3 GW that would help reduce some 20 million tons of carbon emissions per year.

Oman launched recently a new Strategy on Green Hydrogen that foresees $140 billion in investment by 2050, targeting an annual production of 1-1.25 megatons (MT) of green hydrogen by 2030, rising to 3.25-3.75 MT by 2040 and 7.5-8.5 MT by 2050. Oman is also working on a project to establish a green steel plant fed by hydrogen, with an annual production of 5 million tons. Such product would be exported to other Middle Eastern countries as well as to Europe, Japan, and other Asian markets.

The UAE, the host of COP28 in 2023, is also very active through different channels: at COP27 it announced a joint initiative (denominated “PACE”, Partnership to Accelerate Transition to Clean Energy) with the United States, with the aim to “catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts (GW) of clean energy by 2035 to advance the energy transition and maximize climate benefits.” The UAE is also in the process of developing green hydrogen within its borders and abroad, mainly through Masdar, a key player with plans stretching from Africa to Central Asia.

Qatar has launched a project for establishing the largest blue ammonia facility worldwide and is very active in acquisitions in international renewables companies. Its sovereign fund QIA is also considering support to projects in Egypt, for developing green ammonia and green fuel for navigation.

At a regional level, according to the recently issued IEA report “Renewables 2022”, rapid growth in wind and solar will see renewables capacity across MENA rise faster than expected earlier. Such capacity is indeed set to triple to reach 45 GW in five years, with a significant upward revision from the IEA’s 2021 report (that estimated a capacity of 32 GW to be reached between 2021 and 2026). The IEA expects Saudi Arabia, the UAE, Israel, Oman, Morocco, and Egypt to account for 85 percent of renewable capacity growth in the region between 2022 and 2027.

Underlying most of these efforts is the goal, especially for gas-producing countries, to push ahead with renewables projects with the aim to liberate, in the short-medium term, gas resources for export, in light of the European quest for diversification of gas supplies and of the global energy crunch.

Two trends should thus be monitored over the coming months and years:

  • In spite of the harsh debate at COP27 on the role of oil and gas in the transition, including the claims by most fossil fuel-producing (or would-be producing) countries in MENA (and in Africa) on the need to continue to invest in oil and gas, these same countries are already investing to a significant extent in renewables development. This may not be occurring at the pace necessary, without a common strategy and with a number of uncertainties, but nonetheless signifies a rising level of ambition.
  • The idea of interconnecting these countries with European and Asian markets for exporting green renewables appears to gradually be taking shape, initially through the export of blue and green ammonia and, at a later stage, green hydrogen through converted or dedicated infrastructure. The initiatives jointly launched by the EU and Egypt at COP27 hopefully will advance this aim.

Giampaolo Cantini is a nonresident senior fellow at the Atlantic Council Global Energy Center.

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The Global Energy Center develops and promotes pragmatic and nonpartisan policy solutions designed to advance global energy security, enhance economic opportunity, and accelerate pathways to net-zero emissions.

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Atlantic Council’s inaugural Rafik Hariri Awards to honor Arab leaders in business, social entrepreneurship, and arts https://www.atlanticcouncil.org/news/press-releases/atlantic-councils-inaugural-rafik-hariri-awards-to-honor-arab-leaders-in-business-social-entrepreneurship-and-arts/ Tue, 14 Feb 2023 14:00:00 +0000 https://www.atlanticcouncil.org/?p=610397 WASHINGTON, DC – FEBRUARY 14, 2023 – The Atlantic Council’s Rafik Hariri Center for the Middle East today announced the honorees for the inaugural Rafik Hariri Awards, who will be celebrated at a gala dinner on February 14. As the Atlantic Council’s Rafik Hariri Center celebrates its tenth anniversary, the awards will honor outstanding figures […]

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WASHINGTON, DC – FEBRUARY 14, 2023 – The Atlantic Council’s Rafik Hariri Center for the Middle East today announced the honorees for the inaugural Rafik Hariri Awards, who will be celebrated at a gala dinner on February 14. As the Atlantic Council’s Rafik Hariri Center celebrates its tenth anniversary, the awards will honor outstanding figures from the Middle East and North Africa who embody the center’s values and vision.

In a ceremony to be held at Washington, D.C.’s John F. Kennedy Center for the Performing Arts, Rafik Hariri Award recipients will include: Sir Magdi Yacoub, founder of the Magdi Yacoub Global Heart Foundation, Magdi Yacoub Foundation, and Chain of Hope for the Social Impact Award; Fatma Said, award-winning soprano for the Artistic Excellence Award; and Ahmad Abu Ghazaleh, executive vice chairman of Abdali Hospital for the Business Leadership Award.

February 14 also marks the 18th anniversary of the assassination of former Lebanese Prime Minister Rafik Hariri, who was a firm believer in unlocking and investing in the economic and human potential of the Middle East and North Africa. Inspired by his legacy, the Hariri Center for the Middle East was founded in 2011 by his son Bahaa Hariri and the Atlantic Council to perpetuate this vision.

“Through this unique celebration, we are delighted to salute the legacy of the late prime minister Rafik Hariri and the groundbreaking efforts of his son Bahaa to empower that legacy to live on,” said Frederick Kempe, president and CEO of the Atlantic Council. “The center’s work will continue to capture his vision for a vibrant and dynamic Middle East and North Africa long into the future. These awards honor that vision, and the tremendous work of the honorees.”

Kempe will join businessman and philanthropist Bahaa Hariri in providing opening remarks. The ceremony will also feature a keynote speech by Brett McGurk, White House coordinator for the Middle East and North Africa.

A Special Tribute Award will be awarded to the late Dame Zaha Hadid for her contribution to global architecture, arts, and design.

“During the past ten years, the Rafik Hariri Center has been instrumental in amplifying voices from the MENA region in Washington with a focus on unique ways to unlock the human potential of the region,” said William F. Wechsler, senior director of the Rafik Hariri Center and Middle East Programs. “Today, we come together to honor those inspiring leaders steering change across the Arab world in their respective fields.”

The evening will conclude with a performance by Fatma Said and Grammy Award-winning pianist Craig Terry, which will feature classic opera and Middle Eastern musical staples.

For more information, please contact press@atlanticcouncil.org.

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TotalEnergies’ CEO: Europe should pass its own green subsidies to compete with the US https://www.atlanticcouncil.org/blogs/new-atlanticist/totalenergies-ceo-europe-should-pass-its-own-green-subsidies-to-compete-with-the-us/ Fri, 10 Feb 2023 20:03:02 +0000 https://www.atlanticcouncil.org/?p=611229 Patrick Pouyanné said at an Atlantic Council event that the US took advantage of an “opportunity” in the energy transition by passing the IRA, so “let’s do the same in Europe.”

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Since the passage of the Inflation Reduction Act (IRA), the United States is becoming a “land of excellence” when it comes to green energies and infrastructures, said Patrick Pouyanné, chairman and chief executive officer of French oil major TotalEnergies.

“It’s a good incentive… to invest in all these green infrastructures,” Pouyanné said at an Atlantic Council Front Page event on Thursday.

Pouyanné agreed with many Europeans that the IRA is protectionist and undermines the transatlantic relationship, saying that this is part of a “trend” in which the United States, by creating its own rules, seems to be believing less and less in the multilateral trading system built on World Trade Organization agreements. But he also said that the law is a “clear political decision by the United States” made because “they want that green industries will take place on their territory.” For example, he noted, nearly 90 percent of solar panels are manufactured in China, creating “another problem of dependency” for both Europe and the United States in the future.

According to Pouyanné, the United States took advantage of an “opportunity” in the energy transition by passing the IRA, so “let’s do the same in Europe.” To avoid a future in which Europe relies heavily on imports, he said, the continent “must take decisions” to guarantee “that green industries [will] be located in Europe.”

Below are more highlights from the event, moderated by Atlantic Council President and CEO Frederick Kempe, where Pouyanné discussed the role of oil and gas in the energy transition and the energy impacts of Russia’s war in Ukraine.

“No way to escape” natural gas

  • Pouyanné said that because this year’s United Nations Climate Change Conference of the Parties (COP28) in the United Arab Emirates is being hosted by a major oil-producing country, “it raises the bar for the whole oil and gas industry… [We have] to engage, as a lot of stakeholders are expecting us to do.”
  • At COP26 in Glasgow, US President Joe Biden released a plan to tackle methane emissions from the oil and gas industry; Pouyanné said that TotalEnergies can lower methane emissions by 80 percent by 2030, while keeping an eye on lowering all other emissions from the production process. “If I can produce oil and gas with no emissions, I’ve done my job in production” to cut emissions, he argued.
  • “Natural gas is a fundamental energy for the transition” because it emits half the methane that coal does, Pouyanné explained. Natural gas, he added, will also help provide a consistent source of energy to fill the gaps of intermittent wind and solar power while new infrastructure to support energy storage and transmission is brought up to scale.
  • This year, with Russia’s war in Ukraine raising questions about the global energy supply, Pouyanné said that the world discovered how important energy reliability, affordability, and sustainability are—and how much reliability depends on gas. “On one side, the Biden administration [said] one year ago, ‘you need to diminish your emissions,’ and then we hear ‘you need to drill more.’” That, Pouyanné said, shows how the world will “need gas for very long.”

The global divide

  • While TotalEnergies had invested fifteen billion dollars in Russia, it has begun withdrawing from its Russian investments. “We have impaired almost all of our Russian assets,” Pouyanné explained. “We have step-by-step progressively retracted from almost all of our business in Russia.”
  • As Russia’s war in Ukraine continues, Pouyanné warned, the West must “be careful” to avoid believing that the rest of the world sees the conflict as a fight between democracy and autocracy. “It’s not the dominant [narrative] today in the Middle East, in Asia, [or] in Africa,” he said, explaining that leaders in the Global South are more focused on developing their economies than the war. He recalled how there have been mixed responses from countries to imposing sanctions on Russia and to voting on condemning Russia in the United Nations.
  • Pouyanné noted that he sees a similar division between the West and the rest in the climate debate with each passing COP. “It should not be” so divided, he said, “Let’s avoid antagonism. Let’s keep humility. Let’s listen to these [Global South] leaders.”

Investing in renewables—and fossil fuels

  • A day after TotalEnergies posted a record yearly net profit, Pouyanné talked about the French oil major’s plan to spend the increased profits. The company plans to invest sixteen to eighteen billion dollars of its capital, with around five billion going toward low-carbon energies and about twelve billion going toward hydrocarbons. “With twelve billion dollars,” Pouyanné explained, the “objective is to continue to maintain… stable production for this decade and continue to grow our liquefied natural gas business.”
  • But, he noted, it will be “very important” to “continue to invest in oil and gas” to keep profits and investments high across the energy sector: “If I can invest five billion dollars in low-carbon energy in 2023, it is because I have made money from oil and gas,” he explained.
  • Pouyanné said that the biggest investment opportunities lie in emerging economies such as Brazil, India, and African countries. TotalEnergies, he explained, has invested in new oil fields in Brazil and new projects, including a $3.5-billion pipeline, in Uganda.
  • While people in the West “complain about the Chinese influence in Africa,” he said, that influence is growing because of China’s more long-term approach to investing in the continent—rather than exporting natural resources right away.
  • The TotalEnergies head said the company will take some of the profits made in Uganda, Mozambique, and elsewhere to “invest in Africa.” That includes the electric grid. “When you don’t have electricity in the country, it is difficult to [improve] economic growth,” he said.
  • Pouyanné explained that with technologies such as electric vehicles gaining in popularity, “the oil market at a certain point will begin to decline… this is why we invest in electricity, because this is a growing market.”

Katherine Walla is an associate director of editorial at the Atlantic Council.

Watch the full event

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A more diverse US State Department is taking on its ‘male, pale, and Yale’ legacy https://www.atlanticcouncil.org/blogs/new-atlanticist/a-more-diverse-us-state-department-is-taking-on-its-male-pale-and-yale-legacy/ Thu, 09 Feb 2023 02:17:28 +0000 https://www.atlanticcouncil.org/?p=610391 US Ambassador to the UN Linda Thomas-Greenfield and Gina Abercrombie-Winstanley, the State Department’s first ever chief diversity and inclusion officer, spoke at an Atlantic Council Front Page event honoring Black trailblazers in foreign policy.

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Watch the full event

The days of the United States foreign service being staffed by people who mostly are “male, pale, and Yale” are history, two top US diplomats said Wednesday. As the State Department seeks to re-engage with the world, recruiting from diverse communities and retaining that talent for the long term are at the top of the agenda.

“Diversity includes everything, and the purpose is not simply to put another group at the top of the pyramid,” said Gina Abercrombie-Winstanley, the State Department’s first ever chief diversity and inclusion officer, at an Atlantic Council Front Page event honoring Black trailblazers in foreign policy. “Visible diversity is necessary but insufficient,” she added, stressing the need to consider neurodiversity, background, and lived experience in recruitment.

Abercrombie-Winstanley was joined at the Atlantic Council by another trailblazing Black ambassador, Linda Thomas-Greenfield, the US representative to the United Nations (UN). A day after attending what she called an “electrifying” State of the Union address by US President Joe Biden, Thomas-Greenfield laid out her vision for how the foreign service can reach out to minority communities by fostering greater awareness of the possibility of a career in the State Department. 

“You try to be what you see,” Thomas-Greenfield said. For students at historically Black colleges and universities and at the high school level, she hopes that seeing alumni in the foreign service will inspire them to become diplomats.

Read on for more highlights from the special event honoring Black History Month.

Natural-born diplomats

  • “I have often argued that we are not inherently better at the job, but that we are prepared. Because as women, as minorities in this country, we have always started in a position of not being in power,” Abercrombie-Winstanley told Rama Yade, the senior director of the Atlantic Council’s Africa Center (and a trailblazing Black diplomat in her own right in France). “We have to make friends. We have to be able to convince people to support our positions. Those basic qualities, frankly, make for better diplomacy.”
  • Abercrombie-Winstanley noted the importance of having a diverse set of top-level officials to reflect the entire United States. “As people like Ambassador Thomas-Greenfield, the Vice President [Kamala Harris], or Secretary [of Defense Lloyd] Austin walk into rooms around the world, it should be a firm, gratifying reminder that America is a very diverse place.”
  • She also reflected on how her position as Black foreign service officer during a thirty-year career that included a posting as US ambassador to Malta shifted her view of herself. “I feel more American when I am overseas. Here I am an African American; when I am overseas, I am American.”

Pushing for diversity in all corners

  • As the first person to hold her position, Abercrombie-Winstanley faces a particularly daunting challenge of uncovering problems of racial inequality that have never been addressed before. “Many departments don’t always ask the questions that will turn up the bad news. We asked the questions, we got the information, and we share it because we want people to hold us accountable.”
  • She noted that while lower and mid-level positions are often more diverse than they have been in the past, it’s a different story for senior-level posts. “Our workforce notices the extreme lack of diversity in our senior positions—whether it is parity or diversity—and that the process of getting to these positions is very opaque.” 
  • “We are telling our leaders to make sure that you’re giving career-enhancing opportunities not just to people who remind you of yourself, but people who don’t remind you of yourself, who may bring something different to the table,” Abercrombie-Winstanley said.
  • While she laid out the monetary and moral case for diversity and inclusion initiatives, Abercrombie-Winstanley compared her diversity, equity, inclusion, and accessibility reforms to taking action on cybersecurity: “We may not love it, but we do it. So I don’t mind what’s in your heart, what’s in your head—it’s what you do.”

“An obligation and duty to respond”

  • Thomas-Greenfield told CNN anchor and senior political correspondent Abby Phillip that her decision to reenter the field of foreign service after retiring was due to her dismay at the Trump administration’s handling of foreign affairs. “As I sat on the sidelines watching our diminishing role and leadership, I felt we all had a responsibility to do whatever we could to help. I felt an obligation and duty to respond to that call.”
  • With a background in African affairs, Thomas-Greenfield keeps the continent at the forefront of her efforts. “I have been on the African continent for thirty years. Africa is a core interest for the United States and its people, and Africa is the last frontier of possibilities.”
  • Even as Chinese diplomatic engagement and economic investments grow on the continent, Thomas-Greenfield expressed confidence that Washington can outcompete Beijing in Africa. “We’re not competing with China. I would say the opposite: China is trying to compete with us,” she said. “We have a strong African diaspora. There’s no way that China can compete with those kinds of engagements that we have. We’re offering to our partners in Africa an alternative that focuses on human rights.”
  • That advocacy could include an expanded role for Africa at the UN, which Thomas-Greenfield said is overdue for reform. “We now have 193 countries in the UN system. When the UN was created, there were only two independent African countries. Now we have fifty-plus. So we think the Security Council needs to be fit for purpose; it needs to be more inclusive,” she said. “It needs to take into account the changes that we have seen throughout the world. We have to bring this to some kind of end result that leads to a more inclusive United Nations Security Council.”

The problem of pigeonholing

  • Thomas-Greenfield did not always dream of a diplomatic career. “I didn’t know the foreign service existed in high school,” she said. It was only upon taking her first trip to Africa—to Liberia—when she decided to join the foreign service. 
  • Thomas-Greenfield said working in Africa was a delight, even though such postings were often a sign of discrimination for Black foreign service officers. “I know that our system did historically pigeonhole African Americans to Africa and occasionally to the Caribbean. And so there I was, an Africanist, loving to work on the continent and having to kind of justify that I wanted to stay in Africa and not go anywhere else.” 
  • She noted that pigeonholing Black officers is much less of a problem than it used to be. For example, US Ambassador to Qatar Timmy Davis is African American. When asked what advice she would tell her teenage self, Thomas-Greenfield kept it simple: “Dream big. If your dreams are not big enough to scare you, they’re not big enough.”

Nick Fouriezos is a writer with more than a decade of journalism experience around the globe.

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Pan-Africanism and soccer: How Africa can secure its next diplomatic win https://www.atlanticcouncil.org/blogs/africasource/pan-africanism-and-soccer-how-africa-can-secure-its-next-diplomatic-win/ Wed, 08 Feb 2023 19:22:18 +0000 https://www.atlanticcouncil.org/?p=610018 Morocco’s magical run at the 2022 World Cup, where it became the first African nation to reach the semifinal, was celebrated across the continent. What brought Morocco to that moment was not just talent, but also the Pan-African movement that opened doors for African nations’ inclusion in global institutions like the Fédération Internationale De Football […]

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Morocco’s magical run at the 2022 World Cup, where it became the first African nation to reach the semifinal, was celebrated across the continent. What brought Morocco to that moment was not just talent, but also the Pan-African movement that opened doors for African nations’ inclusion in global institutions like the Fédération Internationale De Football Association (FIFA).

Africa’s advancement today is still tied to Pan-Africanism. And with the upcoming 2024 Paris Olympics and 2026 World Cup in North America, African nations have an opportunity to collectively lobby for permanent representation in institutions including the Group of Twenty (G20) and the United Nations Security Council (UNSC). They’ll be able to combine the modern media spotlight of these global events with a model established nearly six decades ago.

The 1966 strikers

The 1966 World Cup offers a clear example of Africa using smart power and bloc voting to push for greater representation, and it speaks to the potential of Pan-Africanism to shape the continent’s integration in the global community today.

Nelson Mandela once said: “Sport has the power to change the world. It has the power to inspire. It has the power to unite people in a way that little else does.” For Africans in the 1960s, soccer was a unifying vehicle that helped them advance a regional agenda in the new world order that followed a wave of African nations declaring independence.

FIFA, which was established in Paris in 1904 by soccer officials from seven European countries, did not envision Africa as integral to the sport—as shown by its decision to allocate fifteen of the sixteen team slots in the 1966 World Cup to countries in Europe and Latin America and the Caribbean. That left almost thirty countries across Africa and Asia competing for one slot, sparking great discontent, with some arguing an injustice was being placed on already disadvantaged countries. In response to FIFA’s decision, Africa boycotted the tournament.

When Ghanaian President Kwame Nkrumah tapped Ohene Djan, Ghana’s Football Association president, to lead the fifteen-nation African boycott, three things happened: It brought African soccer to the fore, laid the foundation for Sub-Saharan Africa and newly independent nations to flex global influence, and forced FIFA to open more qualifying spots for non-European countries. Ultimately, the boycott displayed the growing importance of the African regional bloc in the geopolitical sphere.

Tackling barriers with Black political power

One of the important factors that contributed to Africa’s effectiveness in boycotting FIFA was Pan-Africanism, the movement to unite and mobilize everyone of African descent (including Black people in the United States, Europe, and Latin America and the Caribbean) in the pursuit of shared goals such as eliminating racism and colonialism. In the spirit of collaboration around a shared experience, Nkrumah, who is considered a founding father of Pan-Africanism, exercised grassroots soccer diplomacy and reinforced the idea among African thought leaders that solidarity would be the key to improving representation and inclusion.

Such thinking, heavily influenced by the African-American experience, defined the way in which Africa inserted itself into the Cold-War geopolitics of the time and asserted its claim to representation in global institutions. Specifically, Nkrumah’s engagement with African Americans during his formative years in the United States was critical. In his pursuit for African sovereignty—and while a student at historically Black Lincoln University in Pennsylvania—Nkrumah sought not only to understand the common struggle among Black people but also to identify global solutions for addressing structural racism. Later on, his interactions with African American civil-society leaders including W.E.B. Du Bois, Martin Luther King Jr., and Malcom X transformed diaspora relations.

The US civil rights movement inspired an identity shift among Black people from colonized to citizen, informing Nkrumah’s perspective. Using his platform as the leader of the first independent African nation south of the Sahara, he helped shape the thinking on African citizenship and its connection to a larger struggle rooted in a shared Black experience. Such a framework integrated common cultural experiences, values, and interpretations shared among people of African descent. Nkrumah’s concept for African citizenship also encouraged Africans of newly independent countries to see themselves as global actors, ultimately influencing Africa’s conduct of international affairs—including the continent’s participation in the World Cup.

Nkrumah saw the need to push for change in soccer, a sport heavily tied to politics. His solution to address FIFA’s barriers drew from the African American experience as well: Boycotts throughout the civil rights movement became synonymous with the fight against exclusionary institutions. In taking a page from the African American liberation struggle playbook, members of the boycott during the World Cup saw themselves as confronting similar barriers that inhibited integration.

All players on the pitch

Since FIFA’s inception, countries have used World Cup diplomacy to advance nation branding (or convey a particular image of their national identities), political protest, and grassroots diplomacy. For example, at the 2014 World Cup in Brazil, the host country promoted a specific image of itself as a strong and newly emerging international market player in an attempt to expand its soft power: Recall the theme “all in one rhythm,” which promoted collaboration. In another example of how countries have used World Cup diplomacy, players, countries, and international institutions against apartheid boycotted South Africa, and in response FIFA suspended South Africa in 1961.

Following the 1966 boycott, Nkrumah leveraged his platform to engage and persuade FIFA to make the World Cup more inclusive. He showcased smart power in a way that did more than change soccer; it influenced how Africans saw themselves in the global community. In particular, Ghana’s leadership around the boycott helped change perceptions about Africa and its international profile.

The collective front of boycotting countries highlighted Africans’ abilities to think for themselves and navigate Western institutions. And, with the boycott, Africans demonstrated that they, too, could play the game of global politics, using Western platforms and tactics such as regional bloc voting, collective bargaining, and political mobilization to compel change from FIFA. In doing so, African leadership challenged the idea that Africans lacked intellectual savviness to advance their causes. The act of taking on established institutions such as FIFA brought to light the importance of representation, which enabled African nations, through nation branding, to enhance their soft power.

Pan-Africanism, as it was in the 1960s, remains an increasingly critical tool for African nations searching for ways to assert themselves in the era of great-power competition and looking to change the course of development across the continent.

In the next three years, African nations will have two venues—the 2024 Paris Olympics and 2026 World Cup spread across the United States, Canada, and Mexico—at which they can unite with the diaspora, mobilize their diplomatic corps, and propel their regional organizations to lobby for permanent representation in the G20 and UNSC. A renewed approach to African bloc engagement—in which African nations and the diaspora exert influence to direct their advancement on their terms and engage in public diplomacy with other leaders in attendance at international convenings—would acknowledge Africa’s pivotal role in forging global peace and prosperity.

A renewed approach to African bloc engagement would also unlock new avenues for addressing the toughest challenges facing the international community. Intellectual, financial, and entrepreneurial collaboration between Africans and the diaspora through knowledge sharing and partnerships could address global challenges such as climate change, social injustice, and economic exclusion. The combination of Africa’s wealth of natural resources and its burgeoning youth population gives the continent strength that, with the support of the African diaspora, could potentially reshape power dynamics in favor of Africa’s development. The 1966 World Cup boycott showed that when an international intervention gets a dose of Pan-Africanism, change on a global scale is possible.

Deneyse A. Kirkpatrick is the senior advisor at the US Department of State’s Advisory Commission on Public Diplomacy and an award-winning public diplomacy expert. Her previous diplomatic postings include Angola, Niger, Iraq, Brazil, and Egypt. Follow her on Linkedin. The views in this article are the author’s own and do not necessarily represent those of the State Department or the US government.

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Realizing North Africa’s green hydrogen potential https://www.atlanticcouncil.org/blogs/energysource/realizing-north-africas-green-hydrogen-potential/ Thu, 02 Feb 2023 15:39:23 +0000 https://www.atlanticcouncil.org/?p=607750 North Africa could be a global hub for green hydrogen production. Europe would be able to advance its own net-zero future while supporting North African development by promoting investment and collaboration in the sector.

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The energy shocks of 2022 catalyzed Europe’s search for alternative supplies of natural gas, shifting reliance away from Russian pipeline supplies towards liquefied natural gas (LNG) imports from overseas partners. New gas ventures in the Middle East and North Africa continue to sprout up but centering the region’s energy development around Europe’s energy crisis could exacerbate existing energy inequalities if gas production facilities become stranded assets as Europe transitions away from fossil fuel imports. Instead of focusing relationships on supplying natural gas capacity to meet short-term demand spikes, Europe and North Africa should strive to develop the region’s green energy potential as a driver of domestic development and a powerful export commodity for European buyers in search of low-carbon energy imports. 

With the support of European investment, North Africa could become the world’s foremost producer of green hydrogen, capitalizing on vast swaths of uninhabited land, solar radiation intensity, offshore wind capacity, and existing pipeline networks. In October, Morocco hosted the Executive Vice President of the European Commission for the European Green Deal to sign a Memorandum of Understanding (MoU) on the establishment of a Green Partnership between the signatories. The Moroccan MoU preceded an agreement signed in November between the EU and Egypt creating a strategic partnership on green hydrogen.

Developing hydrogen infrastructure at scale will be costly and come with a range of challenges—particularly regarding regional water scarcity—but long-term investments utilizing existing resources could spur clean manufacturing and industrial development for hydrogen producing states while also generating export revenues for decades to come. Already, African states are organizing resources to invest in the requisite technologies. The African Green Hydrogen Alliance—comprised of Morocco, Mauritania, Namibia, Egypt, South Africa, and Kenya—was launched in May, and hopes to expand its membership on the continent. 

Among the alliance’s members, Morocco is well positioned to be a regional leader in a green hydrogen economy, ranking alongside the United States, Saudi Arabia, Australia, and Chile as the five countries most likely to produce cost competitive green hydrogen. In 2019, the Moroccan Ministry of Energy established the National Hydrogen Commission, which released a hydrogen roadmap aiming to mobilize a $10-billion investment for 14 terawatt-hours of new renewable energy capacity required to generate green hydrogen for both domestic consumption and export.

To accommodate a rise in green hydrogen production and support other net-zero goals, Morocco aims to increase renewables’ share of power generation to 52 percent by 2030, 70 percent by 2040, and 80 percent by 2050. The Ministry of Energy projects that an additional 14 gigawatts (GW) of renewable energy will be added to the grid by 2027, mainly from solar and wind sources, although interest in nuclear energy has picked up. The Moroccan Agency for Solar Energy is leading the country’s effort to expand domestic solar energy capacity with the multi-stage Noor Solar Project, a massive project expected to invest $2.6 billion by 2030. Noor’s multiple concentrated solar power (CSP) sites—located in the Ouarzazate municipality, which boasts the highest level of solar radiation in the world—include the largest CSP plant currently in operation which produces 500 megawatts (MW) daily and is slated for expansion later this year. The fourth phase of Noor projects is currently under development and is expected to generate 950 MW upon completion

While early investment in renewable capacity placed Morocco in the spotlight of North African green hydrogen development, other regional actors share similar potential. Algeria has the largest wind energy potential on the continent—approximately 7,700 GW if fully developed—and released plans to expand renewable energy production to 15 GW by 2035, with an annual growth rate of 1 GW. Mauritania’s combined solar and wind potential exceeds 500 GW if fully developed. 

New renewable energy projects in the region should first and foremost focus on providing access to electricity and non-biomass fuels to the entire population. Fortunately, North African electricity grids are relatively well developed, with 97.6 percent of the population having access to electricity, and recent grid expansions into rural communities have greatly expanded energy access since 2000. 

North Africa should begin to focus on green hydrogen as a driver of industry, transportation, and infrastructure development as energy networks continue to expand. Already, North Africa is a powerful exporting bloc of ammonia and fertilizers, and using green hydrogen to transition away from the capital- and emissions-intensive Haber-Bosch process which uses methane or coal as feedstocks for ammonia production—towards green ammonia could support the region’s export potential and energy storage capacity. Green hydrogen’s use case for transportation is strong, especially as production costs decrease, making North Africa a prime location to scale medium- and light-duty vehicles for automakers like Volkswagen, Hyundai, and Toyota, which already possess manufacturing capability in the region

As domestic use cases for green hydrogen develop and attract capital investments, attention should shift to creating the infrastructure needed to transport hydrogen around the continent and overseas. Pipeline infrastructure designed for natural gas and liquefied petroleum gas (LPG) exists across the region with multiple new lines under development including the Trans-Saharan pipeline which would span over 4,000 kilometers connecting Nigeria and Algeria. Early implementation of hydrogen blending could make North African nations global leaders in hydrogen transportation, allowing for increased say in regulatory frameworks moving forward. 

Supporting green hydrogen development in North Africa through targeted investment in renewable energy and infrastructure projects would be of mutual benefit for both sides of the Mediterranean. Recognizing the region’s unique potential for the development of green hydrogen would incentivize North African nations to pursue a pragmatic course of sustainable development and provide Europe with new energy import options that better align with the bloc’s emissions reduction goals. Following COP27 in Egypt, North Africa’s hydrogen future should continue to be encouraged and supported by international capital. As an emerging source of sustainable fuel and electricity generation—with large global demand potential and a myriad of end use cases—hydrogen can act as a catalyst of development in North Africa, an opportunity which should not be overlooked.

Daniel Helmeci was a Summer 2022 Young Global Professional at the Atlantic Council Global Energy Center.

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The Global Energy Center develops and promotes pragmatic and nonpartisan policy solutions designed to advance global energy security, enhance economic opportunity, and accelerate pathways to net-zero emissions.

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Africa and the global LNG crunch: Balancing energy security, development, and decarbonization https://www.atlanticcouncil.org/blogs/energysource/africa-and-the-global-lng-crunch-balancing-energy-security-development-and-decarbonization/ Tue, 31 Jan 2023 15:27:02 +0000 https://www.atlanticcouncil.org/?p=606920 As Europe looks to replace Russian gas and Asia looks to switch off coal, African LNG could play a central role. Gas development in Africa could unlock new revenues and, in turn, drive development across the continent.

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The December 2022 US-Africa Leaders Summit hosted by President Biden in Washington highlighted the emerging role of Africa in global affairs, including in the competition with China and Russia. In his address to the Summit, President Biden endorsed the proposal for the African Union to join the G20 and pledged $55 billion in financing and investment over three years. This ascendant role was also evident at the November COP27 meeting in Egypt, where African countries enjoyed a much more active and forceful presence. Even though they are marginal contributors to global emissions (3.8 percent of carbon emissions) and world trade (3 percent of exports), Africa has experienced severe drought conditions as well as negative economic and social impacts from high energy, food, and commodity prices over the past year. An IMF report concludes that Sub-Saharan Africa is “the region of the world most vulnerable to climate change.” And Ghana’s representatives were leaders of calls by the G77 for loss and damage support, a facility for which was agreed to in principle at the last moment in the final COP27 statement.

Energy development and investment was one of the many important topics addressed in the Africa Leaders Summit, which took place in the context of the continuing war in Ukraine, high energy and commodity prices, and a serious debt problem in many countries of the region. As was the case in the first Africa Summit eight years ago, the US government emphasized renewable energy development and improved energy access, noting the over $1 billion provided thus far under the Biden Administration by the US Development Finance Corporation, US Agency for International Development, and other US government agencies for African projects in these areas.

Although African leaders are embracing the clean energy transition and the region has enormous, diverse renewable energy resources, they are also arguing that they must be able to develop their fossil energy resources to meet their economic development needs and provide access to modern energy for their populations. At COP27, the President of the African Development Bank supported the development of natural gas in the continent, noting that even a tripling of gas production would result in only a minimal addition to global CO2 emissions. At the May 2022 Sustainable Energy for All forum in Kigali, Rwanda, ten Africa countries (Democratic Republic of Congo, Ghana, Kenya, Malawi, Morocco, Nigeria, Rwanda, Senegal, Uganda, and Zimbabwe) endorsed a statement calling for international support for “Africa in the deployment of gas as a transition fuel and the long-term displacement of gas by renewable energy and green hydrogen for industrial development, if financially and technically sustainable.”

The war in Ukraine and the high energy prices and tight supplies have encouraged international energy companies to consider oil and gas projects in Africa that did not appear viable a couple of years ago. There is a general expectation of continued tight global liquefied natural gas (LNG) supplies, reflected in analysis of the International Energy Agency, Bloomberg, and others, including the recent statement by Exxon Mobil CEO, Darren Woods, that the world will face a shortage of LNG until 2026. Europe’s efforts to replace Russia gas are the key driver, with EU LNG import requirements forecasted by Bloomberg to increase by 44 million metric tons by 2026.

Africa is a potential source of EU and world gas diversification and the May 2022 EU External Energy Engagement Strategy recognizes this potential. New Africa suppliers are emerging, with the first shipment of LNG from gas-rich Mozambique occurring in November 2022. According to the BP Statistical Review of World Energy 2022, Africa produced about 257 billion cubic meters (bcm) of natural gas in 2021 and exported 58.5 bcm of LNG (42 million tons), amounting to about 5.7 percent of global LNG exports. Some estimates see African LNG exports growing to 60 million tons in 2025 and 74 million by 2030. Major exports from the large gas reserves in East Africa, though, are not expected until 2026 in Mozambique and 2029-2030 in Tanzania. Bloomberg sees increases in LNG export capacity of 12.4 million tons during 2021-26 from Nigeria, Mauritania, Congo, Equatorial Guinea, and Mozambique. Africa could significantly increase its LNG exports if gas supply and other bottlenecks in using existing capacity can be overcome. According to Natural Gas World, Africa’s utilization of its 78 bcm liquefaction capacity was only 58 percent last year, with Algeria, Nigeria, and Egypt all operating below capacity.

Gas development potential exists in many other African countries, including Ghana, Senegal, and Côte d’Ivoire in West Africa. Ghana is one example with as much as 3 trillion cubic feet (tcf) of potential gas reserves, with 1.5 to 2 tcf possible in Tullow Oil’s offshore Jubilee and TEN fields. In Ghana, a long-time partner of the United States through its Power Africa program, domestic gas development has allowed it to increase gas use in the electricity sector, substituting for oil and complementing its hydro generation. The country, however, faces a serious debt situation, spurred in large part by the quasi-fiscal deficit in the power sector; and, on December 12, the IMF announced staff agreement for an Extended Credit Facility of about $3 billion. The government has committed in its nationally determined contribution (NDC) to reduce GHG emissions by 64 million tons by 2030 and has a renewable energy master plan that envisions adding 1390 megawatts of wind and solar by 2030. Renewable energy development, which is only at a very nascent state, can facilitate the diversification of Ghana’s electricity mix and with successful gas development achieve a position that would allow it to export gas for valuable foreign exchange.

African countries thus face the challenge of how to balance energy security, climate change, and sustainable development objectives. It is increasingly clear that Africa is critical to addressing global energy issues and should, as the President of South Africa has recently argued, have additional voices in the G20 and other international fora. It is increasingly clear that natural gas is a key means of quickly reducing global coal use, especially in the coal-intensive Asia-Pacific region, which accounted for half of global energy-related CO2 emissions in 2021. The expected higher prices from an LNG crunch may slow natural gas adoption, especially in Asian LNG importers (i.e., Bloomberg sees possible decreases in 2023 LNG import levels over 2021 planned imports in India, Pakistan, Bangladesh, Thailand, Vietnam, and the Philippines). Although renewable energy development is certainly desirable and economically viable in Africa as well as Asia, natural gas development in Africa can in the medium term help moderate LNG prices, assist Europe in replacing Russian gas, complement intermittent renewable energy supplies, and ensure both the continued transition from coal in Asia as well as critical revenues for economic growth in Africa.

Dr. Robert F. Ichord, Jr. is a nonresident senior fellow at the Atlantic Council Global Energy Center.

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How the international community can help restore Sudan’s democracy https://www.atlanticcouncil.org/blogs/africasource/how-the-international-community-can-help-restore-sudans-democracy/ Mon, 30 Jan 2023 19:18:22 +0000 https://www.atlanticcouncil.org/?p=606534 A number of challenges confront Sudan on its road to democracy. How the country's leaders and the international community address them could either make or break the dreams of the 2019 revolution.

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The 2019 Sudanese revolution was a uniquely inspiring moment for the world. The road to Sudan’s new dawn was paved by the extraordinary courage and tenacity of its citizens to liberate themselves from dictatorship and civil war, address historical wrongs, and rebuild their state on the principles of democracy and justice.

The international community then committed to supporting Sudan’s transition toward democratization, reconstruction, and sweeping reforms across politics, economics, and the security structure to meet the aspirations of the country’s people after the revolution.

Yet the transitional process began to unravel almost immediately after the overthrow of the government of Omar al-Bashir on April 11, 2019, amid turmoil and instability. The Transitional Military Council—the military junta that took power after Bashir’s ouster—and the Forces of Freedom and Change (FFC)—a coalition of civilian and rebel groups—agreed on the Constitutional Charter and on the formation of a Sovereignty Council to lead the country during the transition to democracy through fresh elections. The Juba Peace Agreement (JPA) between the transitional government and rebel groups in October 2020 appeared to be cementing those gains toward peace and democracy.

On October 25, 2021, however, a military coup upended that progress. Now, as the international community and domestic Sudanese actors, including the military and civilian groups, work toward a restoration of democracy, a number of challenges confront them. How they address them could either make or break the dreams of the young Sudanese behind the 2019 revolution.

A fresh start

The United Nations Integrated Transition Assistance Mission in Sudan (UNITAMS), African Union, and Intergovernmental Authority on Development have helped restart dialogue and have initiated a road map for transition. On December 5, 2022, the army, FFC, other political forces, civil society organizations, and some youth resistance committees signed a framework agreement to establish a civilian government to manage a democratic transition for two years, ending with free and fair elections.

Planning for general elections after a short transitional period must incorporate creative arrangements that account for the multiple political, security, and economic crises that Sudan faces.

The prospects for elections in Sudan must be discussed within the framework of the transition process as a whole. A crucial decision to be made by the political actors is the timing and sequencing of the election in relation to other transitional tasks, including peace-making and implementation or revision of the JPA, transitional justice, dismantling the power structures of the previous regime, economic reform, and constitution-building.

The election dilemma

The relationship between elections and constitution-building is particularly important. If elections are to be held, the question is to what? There must be some body—with a defined constitutional structure, powers, roles, and terms of office—that is being elected, and which once elected can fulfil its mandate.

Holding credible elections means more than the elections themselves being free and fair. It also means that the parameters defining the body to be elected must be broadly accepted and legitimate. Without that, losers of the election will challenge the legitimacy of the elected institutions, while the winners will push their victory to extremes and potentially have no limits in power. It’s an invitation to instability.

There is no scope for elected institutions under the 2019 Constitutional Charter. In August 2022, the Steering Committee of the Sudanese Bar Association (SBA) proposed a new draft constitution as a framework for restoring the democratic path and regulating the procedures of the transitional period. This draft did not provide provisions for holding elections. All its institutions are appointed, not elected. This is because, until now, it has always been assumed that the transition will culminate with elections, rather than elections being part of a broader transitional process. The requirement for elections to be held at the end of the transitional period is specified in Article 13 of the JPA.

This is unusual. Often elections happen at some point in the middle of a transition process. In many cases, transitional institutions—such as a constituent assembly—are elected under a transitional constitution, and a final or permanent constitution is then developed by that elected body.

Elections or Constitution: What comes first?

The requirement that elections will happen only at the end of the transition places a huge burden on unelected transitional institutions to develop a permanent constitution before elections can take place.

Holding elections after the transitional period, and not in the middle of it, also means the transitional period has to be relatively short. Elections, which are vital to public legitimacy and to the establishment of normal institutionalized politics, cannot be postponed indefinitely. At some point the people of Sudan must decide on who and how they will be governed.

Yet there is reason to be concerned that there might not be enough time to develop a permanent constitution, based on a sufficient consensus, before the planned end of the transitional period.

There are only three (non-attractive) possible solutions:

  1. Amend transitional constitutional documents, to allow for elections to transitional institutions, before the end of the transition process, with a permanent constitution to be developed after the election—although that is against Article 13 of the JPA.
  2. Rush permanent constitution-building, to get a constitution in place before the scheduled end of the transition, with necessary compromises on the quality of document and on the extent to which the process can be fully inclusive.
  3. Delay elections indefinitely until after the completion of permanent constitution-making, which may result in the ebbing away of the legitimacy of transitional institutions and raise the risk of extra-constitutional military intervention.

Whatever the case, the signatories to the Framework Agreement have begun to hold stakeholder conferences to discuss four fundamental issues necessary for signing the final political agreement: security sector reform, transitional justice issues, the regional case of eastern Sudan, and the issue of amending the JPA.

It is important to make use of these ongoing consultations to discuss extending the transitional period to accommodate institutional and legislative reforms and the necessary logistical preparations for elections. The international community, including UNITAMS, can help transfer technical expertise, international experiences, lessons learned, and resources to assist a democratic transition and plan elections, and to support sustainable peace and stability in Sudan.

Aside from the constitution, Articles 12 and 13 of the JPA establish other preconditions for the holding of credible elections. They include:

  • arrangements for international monitoring
  • implementation of the agreed-upon plan for the voluntary return of the displaced and refugees
  • the conduct of the population census, “in an effective and transparent manner before the end of the transitional period, with international support and oversight”
  • the enactment of a Political Parties Law
  • the formation of the Electoral Commission

Similar preconditions are also specified in the draft constitution presented by the SBA. Additionally, it is necessary to conduct a campaign to make voters aware of the new constitution and of the electoral system.

This is a lot to do, and Sudan is starting from a low baseline. If the transition period is to be just two years, Sudan will require considerable technical support, and investment of resources, to meet the requirements of the JPA and the SBA’s draft transitional constitution.

Role of the international community

Since the formation of the transitional government in August 2019, a broad international campaign has been launched to support the democratic transition in Sudan. My organization, the International Institute for Democracy and Electoral Assistance (International IDEA), has joined this effort by providing technical support to the transitional government, especially in supporting the formation of the Electoral Commission and the Constitution Making Commission, and in enacting laws related to these commissions. This support from international institutions must continue and be consistent with the political changes that occur.

There is a mandate for such support. Security Council Resolution 2425 of 2020, establishing UNITAMS, gave the UN mission in Sudan a mandate to provide assistance related to the transition and peace. Given the scale of the task and tight deadline, such financial and programmatic support must be provided urgently. Much of the preparatory work, both on elections and on the constitution, can be started now, for example the formation of working groups and technical committees.

There is also precedent for this support. The Electoral Assistance Mission in Iraq was formed within the larger Iraq mission, pursuant to UN Security Council Resolution No. 2576 (2021), to provide advice, support, and technical assistance to Iraq in planning, preparing, and conducting elections and referendums. Similarly, the European Union delegation assisted Jordan (2016) and Lebanon (2022). The African Union deployed, in May 2019, a team of observers and a team of technical experts ahead of the elections in Malawi.

The threats that may result from holding elections amid challenging security conditions—including the weaknesses and divisions within the state’s security institutions—cannot be overlooked. In addition to financial and logistical assistance, an international assistance mission should provide a qualified, trained, and experienced security force.

No time to waste

It is necessary to start soon and move fast to help build political consensus around the design of the process and the sequencing of the transition.

Failure to reach a political agreement on the electoral processes, on the constitutional structures that give rise to elections, and on legal rules regulating elections, may cause political tension, which could disrupt the elections and undermine the democratic transition.

The opportunities currently available to the Sudanese people to discuss issues of democratization, including the issue of organizing free and credible elections, with the help of the international community, might not last forever.

The international community needs to provide substantial support for the coming elections in Sudan at the end of the transitional period. This is vital for security, peace, and political stability in Sudan and the Horn of Africa. Failure to do so would create security, political, and social risks that are difficult to count—or predict.


Sami A. Saeed is the head of the Sudan program at the International Institute for Democracy and Electoral Assistance. He previously served at the United Nations as a legal advisor in the Office of the Special Representative of the Secretary-General for Sudan from 2006–2020.

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Former Tunisian minister and Columbia professor join the Freedom and Prosperity Center https://www.atlanticcouncil.org/news/announcements/tunisian-minister-and-columbia-professor-join-the-freedom-and-prosperity-center/ Mon, 23 Jan 2023 19:04:22 +0000 https://www.atlanticcouncil.org/?p=604756 H.E. Khemaies Jhinauoi and Professor Markus Jaeger join the Freedom and Prosperity Center as Distinguished Fellow and Senior Advisor.

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We are thrilled to announce that two esteemed leaders in the field of international relations and economics have joined the Atlantic Council’s Freedom & Prosperity Center. His Excellency Khémaies Jhinaoui and Markus Jaeger will be joining us as Distinguished Fellow and Senior Advisor, respectively.

Khémaies Jhinaoui is the founder and president of the Tunisian Council for International Relations, bringing a wealth of experience and knowledge to our team. He served as the Minister of Foreign Affairs of the Republic of Tunisia from 2016 to 2019, where he led initiatives to support the democratic transition in Tunisia and advance peace in the region. His diplomatic career has spanned over 40 years and has also included serving as Tunisia’s Ambassador to Russia, Ukraine, United Kingdom, and Ireland. His expertise and insights on regional and international issues will be invaluable to our Center.

Markus Jaeger is a fellow at the German Council on Foreign Relations and an adjunct professor at Columbia University. He brings a diverse perspective on international economic relations, geoeconomics, and economic statecraft. Jaeger has held various research roles over the years, including director and global economist at Deutsche Bank in New York and London. His research and insights will be a great asset to our organization.

We are excited to have Khémaies Jhinaoui and Markus Jaeger on board and are confident that their knowledge, expertise and insights will contribute to our mission of promoting freedom and prosperity in the world.

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Russian War Report: Wagner Group fights French ‘zombies’ in cartoon propaganda https://www.atlanticcouncil.org/blogs/new-atlanticist/russian-war-report-wagner-group-fights-french-zombies-in-cartoon-propaganda/ Fri, 20 Jan 2023 19:07:43 +0000 https://www.atlanticcouncil.org/?p=604488 Plus, more on Wagner's power struggles with the Russian defense ministry and Russia's apparent use of incendiary munitions in Kherson.

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As Russia continues its assault on Ukraine, the Atlantic Council’s Digital Forensic Research Lab (DFRLab) is keeping a close eye on Russia’s movements across the military, cyber, and information domains. With more than seven years of experience monitoring the situation in Ukraine, as well as Russia’s use of propaganda and disinformation to undermine the United States, NATO, and the European Union (EU), DFRLab’s global team presents the latest installment of the Russian War Report.

Click to jump to an entry:

Security

Reports emerge of internal power struggles between Wagner and Russian defense ministry

Russian forces allegedly use incendiary munitions in Kherson, youth center burns

Missile fragments, rocket warhead fall on Moldovan territory

Tracking narratives

Animation depicts Wagner forces fighting French “zombies” in West Africa

Flurry of conflicting theories circulate among pro-Kremlin sources following deadly helicopter crash

Belarusian state TV accuses Ukrainian embassy of recruiting foreign fighters

Russian media amplify and exploit Wagner story about French Foreign Legion deserter killed in Ukraine

International response

Serbian president accuses Wagner of recruiting Serbian citizens

Ukraine’s allies continue to send military aid, including heavy equipment

Reports emerge of internal power struggles between Wagner and Russian defense ministry

On January 13, the Russian Ministry of Defense (MoD) claimed its forces had taken control of Soledar and could encircle Bakhmut, threatening Ukrainian supply lines. In the statement, the MoD praised the efforts of aviation, artillery, and airborne troops, but did not mention the notable role Wagner played in securing Soledar.

Moscow’s announcement highlighted a long-simmering tension between Wagner and the official structure of the Russian MoD. On January 17, an old letter written by Valery Gerasimov, commander of Russian forces in Ukraine, re-circulated online. The letter, dated December 29, 2022, stated that Wagner is not included in the structure of the Russian armed forces. Gerasimov wrote the letter in response to an inquiry to the Russian MoD made by Evgeny Stupin, a lawyer for the Moscow City Duma. On January 15, President Vladimir Putin also attributed the Soledar success to the MoD.

On the day that Russia claimed Soledar, military bloggers affiliated with the Kremlin claimed there was an ongoing conflict between the MoD and Wagner founder Yevgeny Prigozhin. On January 15, Prigozhin awarded medals to Wagner soldiers for the capture of Soledar. On January 16, Kremlin spokesperson Dmitry Peskov dispelled reports of an ongoing conflict between Prigozhin and Russian army command, claiming the reports are “products of information manipulation.” Later in the day, when asked about Peskov’s comments, Prigozhin also dispelled the reports, saying, “I see no reason not to trust Peskov.”

On January 19, Prigozhin said that Wagner soldiers were concentrating on taking the suburban city of Klishchiivka, south of Bakhmut. This information has yet to be confirmed by the Russian MoD.

Elsewhere, on January 14, Ukrainian officials reported that Russia conducted fifty missile and three air strikes against Kyiv, Kharkiv, Odesa, Kryvyi Rih, Dnipro, Vinnytsia, and other settlements in West Ukraine. Ukrainian forces said that Russia used S-300 and S-400 systems against ground targets in Kyiv in the morning and later launched high-precision weapons, including twenty-eight cruise missile strikes using Kh-101, Kh-555, and Kh-59 guided air missiles and the sea-based 3M-14 Kalibr.

In Marinka, the Ukrainian army repelled renewed Russian attacks on January 17 and 18. Russian forces have been storming the settlement since last March, resulting in widespread destruction. The Russian forces also conducted raids in the area of Bilohorivka in Luhansk oblast and Krasna Hora, Bakhmut, Klischiyivka, Vodyane, Nevelske, and Pobieda in Donetsk oblast.

Chechen volunteer forces have become increasingly active in the fight around Bakhmut. There are at least two battalions of Chechens—the Sheikh Mansur Battalion and Dzhokhar Dudayev Battalion—fighting for the Ukrainian army on the Bakhmut frontline. On a tactical level, the Chechen battalions are working together in some areas, like in Opytne, where they attacked Russian positions. The Dzhokhar Dudayev Battalion also maintains a reconnaissance unit, “Adam,” currently located in Donetsk oblast.

On January 16, a Russian rocket struck a civilian building in Dnipro, killing at least forty-five people, including six children, marking the single deadliest civilian attack since the war began. Ukraine said it does not have air-defense systems that can intercept Russian KH-22 missiles; to ward off future missiles would require Western partners to donate advanced air defenses such as the US MIM-104 Patriot missile system.  

Ruslan Trad, resident fellow for security research, Sofia, Bulgaria

Valentin Châtelet, research associate, Brussels, Belgium

Russian forces allegedly use incendiary munitions in Kherson, youth center burns

On January 18, Russian shelling intensified on the southern frontline in Ukraine, which stretches from Kamianske in the Zaporizhzhia region to Vuhledar in the south of Donetsk oblast. After a night of heavy shelling, videos and photos emerged online showing that the Russian army had used what appears to incendiary ammunition in city of Kherson and nearby Beryslav.

The morning after the strike, videos and photos shared online showed the resulting damage. A local Kherson newspaper reported that a religious youth center had burned down as a result of the shelling. The DFRLab geolocated the youth center and confirmed that it was along the pathway of the airstrike but cannot confirm whether incendiary munitions were involved.

Top left: Screenshot of footage showing the burning youth center. Top right: Google Street View image of the youth center prior to the incident. Bottom left: Google map view of the building from above. Bottom right: Google map view from a higher altitude. Green boxes show the front of the building while blue boxes show the building’s windows. (Source: Kherson Online, top left; Google Maps, top right, bottom left, and bottom right)

Valentin Châtelet, research associate, Brussels, Belgium

Missile fragments, rocket warhead fall on Moldovan territory

Fragments of a Russian missile targeting Ukraine fell on Moldova territory on January 14 in the town of Larga, Briceni district. According to Moldova’s Ministry of Internal Affairs, a warhead fueled with approximately eighty kilograms of explosive material was also discovered among the debris. The next day, authorities reported that specialist teams had carried out controlled detonations of the remaining explosives. The Ministry of Defense noted that the army’s aerial surveillance system did not record a violation of Moldovan airspace, however.

Authorities in Chisinau have strongly condemned the attacks on neighboring Ukraine. “This is the reality of war, imposed by the aggressor, right here in our region,” stressed Moldovan President Maia Sandu. “The missiles reach Moldova as well—the fragments discovered yesterday in the Briceni district testify to this. We strongly condemn Russia’s aggression against Ukraine. Attacks on urban infrastructure and the killing of civilians are war crimes; they have no justification.”

Prime Minister Natalia Gavrilita also condemned Russia’s January 14 missile attacks on Ukrainian cities. “There is no political, historical, and even more so moral justification for killing civilians and attacking the infrastructure that ensures the survival of the population,” she said. “I express my deep indignation at the new massive attack on Ukraine. I express my support for the heroic Ukrainian people and our support for the victims of Russia’s barbaric attacks.”

This is the third time missile fragments have landed in Moldova, which is not a member of the European Union or NATO. On December 5, Moldovan border police discovered a missile in an orchard, also in the Briceni district. In October 2022, a Russian missile shot down by a Ukrainian anti-aircraft system fell in the village of Naslavcea, located along the border with Ukraine, shattering windows of several residences as a result of the explosion.

Victoria Olari, research assistant, Chisinau, Moldova

Animation depicts Wagner forces fighting French “zombies” in West Africa

An animated video showing a Wagner operative helping West African countries defeat zombie French soldiers began circulating on social media and pro-Kremlin Telegram channels this week. While the origin of the video is currently unknown, it appears to have first shown up on Twitter on January 14th, then migrated to alternative video platforms before being shared across pro-Russian Telegram channels.

By depicting Wagner forces as heroes, the video promotes a pro-Russian, anti-French narrative that has spread in recent years across West African social media. The animation depicts Wagner soldiers assisting local militaries in Mali and Burkina Faso in removing French forces, represented in the animation as hordes of zombies and a giant cobra. In Mali, a Wagner operative parachutes into the zombie horde and provides ammunition to a Malian soldier who is subsequently able to defeat the undead, while in Burkina Faso, Wagner provides a rocket-propelled grenade to kill the French cobra.

A screenshot of the video shows a Malian soldier and Wagner operative grasping hands after successfully defeating French zombies, likely an homage to the Arnold Schwarzenegger film Predator and the many memes it spawned.

Russia’s involvement in West Africa does not come in the form of simple weapons deliveries, however. Recent reports indicate that since Russia’s deployment in Mali more than one year ago, violence against civilians has significantly increased, and extremist forces have grown stronger.

The final shots of the animated video show Wagner operatives driving from Burkina Faso to Côte d’Ivoire, which is also under siege by French zombies.

The video ends with Wagner forces heading towards Côte d’Ivoire, where French zombies overwhelm an Ivorian soldier. The imagery implies that Wagner aims to send forces to the coastal country.

This is not the first time Wagner has created animated propaganda. In another animation, France was represented as a rat killed by Wagner. And in a comic strip spread in Central African Republic (CAR), Wagner operatives are again depicted fighting zombies, however in the case of CAR the zombies do not represent the French.

Support for France has declined significantly in Francophone Africa, while calls for Russian assistance to fight jihadists has increased.

Tessa Knight, research associate, London, United Kingdom

Flurry of conflicting theories circulate among pro-Kremlin sources following deadly helicopter crash

On January 18, a helicopter crash in Brovary, near Kyiv, killed sixteen people, including three children, Ukraine’s interior minister, his deputy, and the ministry secretary. The helicopter crashed near a kindergarten. Ukrainian security services investigating the crash are considering three possible scenarios, including a violation of flight rules, a technical malfunction, or intentional sabotage. In the meantime, pro-Kremlin sources are already sharing conflicting narratives about the incident.

One of the first narratives to emerge suggested that Ukraine’s air-defense systems shot down the helicopter. The claim was amplified by pro-Kremlin TV host Olga Skabeyeva on her Telegram channel. Another pro-Kremlin Telegram channel added more details to the claim, saying that “unofficial Ukrainian sources” said the aircraft was shot down by the Stinger or Igla air-defense systems. The claim was also shared on Twitter by a pro-Kremlin account, spreading the narrative to English-speaking audiences. At the time of writing, the English tweet had more than one million views.

Other sources took the claim further. The pro-Kremlin Russian outlet Regnum hypothesized that Ukrainian President Volodymyr Zelenskyy was behind the crash, publishing a story with the headline, “The crash of the helicopter of the Ministry of Internal Affairs of Ukraine in Brovary – executed by Zelenskyy?”

Meanwhile, pro-Kremlin reporter Sasha Kots reported that European countries had suspended the helicopter model, either a Eurocopter EC225 Super Puma or a H225M, after a 2016 crash in Norway. While it is true that the European Aviation Safety Agency grounded both aircraft type after the Norway crash, it allowed flights to resume roughly six months later. Helicopters of this type are used by both military and civilian operators in France, Brazil, Vietnam, and many other countries. Kots also claimed that after the two models were grounded, France sold its supply to Ukraine, implying that France is also responsible for the tragedy.

In December 2021, Romania and Ukraine entered into an agreement to upgrade five of these helicopter models.

Roman Osadchuk, research associate

Belarusian state TV accuses Ukrainian embassy of recruiting foreign fighters

On January 16, the state-controlled TV channel Belarus 1 reported that Belarusian security services had arrested Georgian citizen Giorgi Zirakishvili for allegedly trying to enter Ukraine via Belarus to fight against Russia. Belarus 1 reported that the Ukrainian Embassy in Georgia had advised Zirakishvili to travel from Georgia to Ukraine through Belarus. The broadcaster also claimed that Zirakishvili had planned to meet Igor Kizim, Ukraine’s ambassador to Belarus, upon arrival to receive instructions on how to reach Ukraine and join the Georgian Legion, a paramilitary unit mostly comprised of ethnically Georgian volunteers who fight for Ukraine. Belarus 1 also broadcast an alleged recording of a phone conversation in which Zirakishvili believes he is speaking to representatives from the Ukrainian embassy in Belarus. However, Belarus 1 reported that Zirakishvili was actually speaking to representatives from Belarusian security services, who discovered Zirakishvili’s alleged intentions and connected with him by impersonating Ukrainian embassy staff. The report also contains a video recording of Zirakishvili’s meeting with representatives from Belarusian security services, who he apparently believed were representatives of the Ukrainian embassy.

Belarus 1 did not provide any concrete evidence that Zirakishvili had communicated with anyone from the Ukrainian embassy in Belarus. Despite this, the report claims that Kizim is actively recruiting foreign fighters to send to Ukraine. The ambassador responded to the allegations, saying the Belarus 1 story was “nonsense” and “lies, manipulation, and hypocrisy.” He added that the Ukrainian embassy was in contact with the Belarusian foreign affairs ministry regarding the matter.

Givi Gigitashvili, research associate, Warsaw, Poland

Russian media amplify and exploit Wagner story about French Foreign Legion deserter killed in Ukraine

A January 17 Telegram post published on Yevgeny Prigozhin’s press channel claimed that Wagner forces tracked down and killed a Ukrainian member of the French Foreign Legion in Donetsk. The channel also shared identity cards belonging to a YevheniiKoulyk, including a Ukrainian driver’s license, a French military card, and a French train card.

Yevgeny Prigozhin’s press channel shared Yevhenii Koulyk’s French and Ukrainian identity documents. (Source: Press Service of Prigozhin)

The post was reshared by the Telegram channel WarDonbass and the pro-Russian news outlet DonbassInsider. The Russian press agency TASS also reported on the claim. Several Russian-owned media outlets and Telegram channels shared the post, garnering at least 647,000 views at the time of writing.

The story was then picked up by the Russian news outlet Argumenty I fakty (Arguments and facts), which claimed Koulyk was a NATO agent. One VK post suggested Koulyk was a foreign mercenary and accused Ukraine of not disclosing the number of foreign soldiers killed in the war. The author compared Koulyk’s death to that of Hryhorii Tsekhmystrenko, a Ukrainian-born Canadian volunteer reported killed in Ukraine this week.

According to French journalist and military expert Philippe Chapeleau, the French Foreign Legion allowed its Ukrainian-born fighters a period of leave so they could safely resettle their families in neighboring countries. Those who did not return would be considered deserters. According to that same source, Koulyk had been missing since August 2022 and was therefore considered a deserter.

Koulyk’s death was previously reported as early as January 12. As of January 19, there were a total of 189 posts across news outlets and social media discussing Koulyk.

Valentin Châtelet, research associate, Brussels, Belgium

Serbian president accuses Wagner of recruiting Serbian citizens

In a TV interview on January 16, Serbian President Aleksandar Vucic criticized Wagner Group for its attempts to recruit Serbian citizens to participate in the Ukraine war. Vucic slammed Wagner, saying, “Why do you do that to Serbia? Why do you, from Wagner, call anyone from Serbia when you know that it is against our regulations?” He also noted that Serbian legislation prohibits its citizens from participating in foreign armed conflicts and denied recent allegations that Wagner has a presence in Serbia. On January 17, Yevgeny Prigozhin stated that there are no Serbian citizens active in Wagner and that Wagner has never been active in Serbia. The DFRLab previously reported on claims made by Wagner that it was establishing a presence in Serbia.

Vucic also condemned a Wagner advertisement published by the newly established Serbian arm of RT. On January 5, RT Balkan reportedly published an article with the headline, “Wagner published an ad for volunteers, the conditions are more than tempting.” The article, which is no longer available on RT Balkan’s website, allegedly said that Wagner was looking for volunteers ages twenty-two to fifty who are not citizens of Ukraine or any EU or NATO member states. Volunteers were required to be physically healthy, interested in learning, patriots, and strong in spirit; in turn, “everything else will be taught by Wagner members.”

A Google search for the original headline, “Vagnerovci objavili oglas za dobrovoljce, uslovi više nego primamljivi,” retrieved an article with the same title, but the original URL now leads to a different article about Russian prisoners who joined Wagner, fought in Ukraine, and peacefully returned to Russia, where all charges against them were dropped.

Givi Gigitashvili, research associate, Warsaw, Poland

Ukraine’s allies continue to send military aid, including heavy equipment

Ukraine will receive an unspecified number of Archer systems from Sweden, with Swedish media reporting that Kyiv will receive twelve units. Stockholm will also send fifty CV90 vehicles. Latvia will deliver another military aid package to Ukraine that includes Stinger anti-aircraft missiles, helicopters, small arms, and drones.

Canadian Prime Minister Justin Trudeau announced on January 10 that the country would donate more NASAMS air-defense systems to Ukraine. These systems will enable Ukrainian forces to enhance ground protection around troop deployments and civilian infrastructure. Canada will also transfer another two hundred armored LAV ACSV Super Bison vehicles to Ukraine.

According to the New York Times, the Pentagon is tapping into a stockpile of US ammunition in Israel to help meet Ukraine’s need for artillery shells. The arms and ammunition stockpile is typically reserved for the Pentagon to use in the Middle East. Meanwhile, on January 19, the Pentagon announced a $2.5 billion security package for Ukraine, including for the first time ninety Stryker armored personnel carriers. These mine-resistant ambush-protected vehicles could help infantry advance further into the frontlines. Additionally, the US will provide energy equipment to help Ukraine deal with energy shortages. The $125 million support pack would include turbines, backup power banks, and high-voltage transformers.

On January 14, British Prime Minister Rishi Sunak spoke to Ukrainian President Volodymyr Zelenskyy and announced that the United Kingdom will send Ukraine fourteen Challenger 2 battle tanks and artillery systems. As of 2021, the British army possessed 227 battle tanks. Sending additional tanks is likely to increase pressure on Germany to send its own Leopard 2 tanks to Ukraine, though Germany’s defense minister said Friday that Berlin has not yet decided on the Leopard 2.

Russian citizens living in Bulgaria donated three pickup trucks to the Ukrainian army. They will be used by the Freedom of Russia Legion, a battalion made up of Russian citizens who defected to fight for Ukraine’s Foreign Legion.

Ruslan Trad, resident fellow for security research, Sofia, Bulgaria

Valentin Châtelet, research associate, Brussels, Belgium

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Here’s how President Biden can build on the promise of his Africa summit https://www.atlanticcouncil.org/blogs/africasource/heres-how-president-biden-can-build-on-the-promise-of-his-africa-summit/ Wed, 18 Jan 2023 15:07:34 +0000 https://www.atlanticcouncil.org/?p=603082 After an eight-year hiatus, the US-Africa Leaders’ Summit returned to Washington last month amid heightened global geopolitical tension and economic uncertainty. Why? Because Africa’s voice, economic potential, and geopolitical posture are more critical than ever. And the United States knows it. The United States has traditionally focused on security priorities in its African engagement. This […]

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After an eight-year hiatus, the US-Africa Leaders’ Summit returned to Washington last month amid heightened global geopolitical tension and economic uncertainty. Why? Because Africa’s voice, economic potential, and geopolitical posture are more critical than ever. And the United States knows it.

The United States has traditionally focused on security priorities in its African engagement. This Cold War vision not only dominates perceptions in the public and private realms but also distracts from the authentic economic and strategic opportunities the continent offers investors in the twenty-first century. The impact of the 9/11 attacks has strengthened this approach over the past two decades. More recently, the United States has seen Africa as a battleground for competition with China, ignoring that the continent’s nations have their own strategic interests.

The December summit offered signs that the Biden administration recognizes the limitations of that approach. Yet to change that, the United States must build on its commitments to African leaders in Washington.

A new approach

The emphasis at the summit was not on threats but on opportunities, not on security but on business engagement, diaspora ties, and Africa’s cultural soft power. The message continued when, earlier this year, US Secretary of State Antony Blinken unveiled a new US Strategy Toward Sub-Saharan Africa that emphasized that the United States would be looking for partnerships with African nations rather than dictating terms to them.

Blinken’s multiple trips in Africa, from Senegal to South Africa and Kenya to the Democratic Republic of Congo in 2022, followed by a tour of the continent this week by Treasury Secretary Janet Yellen, show that the Biden administration is taking Africa’s emergence as an influential global player seriously.

The war in Ukraine has demonstrated the willingness of African nations to use their votes at multilateral platforms—30 percent of United Nations (UN) General Assembly votes belong to African countries—in pursuit of their national interests. In vote after vote at the UN, many African nations have abstained from outright condemnation of Russia’s invasion. This search for strategic autonomy is also reflected in other bold initiatives, such as a proposal by the Brazil-Russia-India-China-South Africa grouping, BRICS, to develop its own currency. The grouping, which South Africa will chair in 2023, already has its own development bank.

Even as it focuses on Taiwan and Ukraine, it is time for the United States to recognize Africa’s centrality in the geopolitical churn the world is witnessing. After all, the United States also has vital interests at stake in Africa.

Follow the money

On the summit’s last day, the Biden-Harris administration announced plans to invest at least fifty-five billion dollars in Africa over the next three years.

This follows many other nations making similar investment announcements: China pledged forty billion dollars late last year, Japan promised thirty billion dollars in August, and India said last July that it will boost investment to $150 billion by 2030.

Furthermore, China is a leading source of greenfield foreign direct investment (FDI) —when foreign companies create local subsidiaries—in Africa, investing more than seventy-one billion dollars from 2016-2020. On the other hand, the United States was the fourth highest source of African greenfield FDI during the same time, totaling twenty-three billion dollars. While the United States is a stable partner for the continent, it invests less in Africa than in any other region. The United States needs to fix that to signal to African nations that they are genuinely valued as strategic and trusted partners in addressing global crises, including energy production, food insecurity, and job creation.

Out with the old and in with the new

The US National Defense Strategy, unveiled in October, also signals the shift in approach toward Africa as a partner rather than a region that the United States can dictate to. This strategy document has outlined a new policy on working through partners on security matters.

With France rethinking its security focus in West Africa and the Sahel, and Europe focused on North Africa, General Stephen Townsend, then-commander of US Africa Command, said last year: “I think there’s actually room on the continent for all of us to do our respective nations’ business.” China, by assisting in anti-piracy patrols, has played a helpful role too, he said.

Such an approach has lent credibility to the Biden-Harris administration’s claim that it does not seek to turn Africa into a sphere of great-power competition. Africa will not have to choose between potential partners.

With a firm security foundation, global FDI in the fast-growing creative and cultural industries, technology, mining, and agribusiness will continue. Some of the mechanisms through which the White House plans to strengthen the partnership with Africa include established platforms such as ProsperAfrica, the US Agency for International Development (USAID), the US Export-Import Bank, the Millennium Challenge Corporation, and the Development Finance Corporation.

Yet it is vital for the United States to be mindful that the priorities of the two sides might not always align. On climate, for example, while the United States seeks to lead the world to reduce its dependence on fossil fuels, African nations where crucial natural gas discoveries have been made eye gas as a critical temporary source of power.

The task of finding a path forward on all these issues will fall to longtime US diplomat Johnnie Carson, who is the special representative implementing the agreements from the US-Africa Leaders’ Summit.

More than a summit

Even as Africa grapples with the impact of the war in Ukraine and the lingering effects of the pandemic, the United States could redefine its relationship with the continent if it offers a game-changing answer to the main challenge African markets face: access to international capital.

Yet that challenge is also the result of an inadequate understanding of Africa’s opportunities. At a welcome dinner for visiting African heads of state hosted by the Africa Center, Atlantic Council Chairman John Rogers, who is also executive vice chairman of Goldman Sachs, said: “Outside of this room, most would be surprised to hear that Africa’s debt is lower than European debt.” The African Export-Import Bank, also known as Afreximbank, has pointed out how Italy’s external debt at the height of the COVID-19 crisis ($2.6 trillion) was more than three times what all African countries combined owed to their external creditors at the end of 2019.

“Nonetheless, it is easier today for African nations to borrow from the Chinese. We must continue to work hard to change this and to overhaul outdated risk profiles that put open markets at a disadvantage when providing loans or working capital to African nations,” Rogers said, echoing African Union Chairperson Macky Sall’s advocacy at that same event for a pan-African rating agency.

In 2021, investment flowing to Africa reached a record eighty-three billion dollars. The private sector must boost support for policymakers to address Africa’s economic and green transformation. During the US-Africa Business Forum as part of the main summit, US President Joe Biden noted that his administration was “working with Congress to invest $350 [million] to facilitate more than almost half a billion dollars in financing to make sure more people across Africa can participate in the digital economy.”

The road ahead

In 2022 the United States took steps to center its relationship around mutually beneficial partnerships. The summit solidified this approach, but the United States will need to put words into action to succeed. This year offers it a unique opportunity to reset and reengage its relationship with Africa.

People-to-people ties are a critical area that separates the United States from other contenders seeking influence in Africa. There, the United States has no competitors. From Hollywood to Silicon Valley, the American way of life remains attractive to many young African people—as it does to their peers in other parts of the world. The connection between Africa and the Black community in the United States serves as another resilient and robust bond.

African leaders recognize this too. Ghana’s President Nana Akufo-Addo is trying to attract the diaspora to invest in his country’s development through a project called Beyond the Return. Meanwhile, the President’s Advisory Council on African Diaspora Engagement in the United States is trying to build a new narrative that recalls the past but builds a future that reconnects both continents based on shared prosperity.

This year could also witness the United States outflank its geopolitical rivals. Russia, which centers its engagement in Africa around arms diplomacy, is mired in the conflict it started in Ukraine. It is unclear how long Russia can afford to send military hardware or mercenaries abroad when it desperately needs them in Ukraine. China, likewise, is undergoing turmoil. COVID-19 continues to play havoc with its economy and social order, resulting in some of the most widespread protests the country has seen in decades. The Chinese Communist Party might focus inward rather than outward in the coming months.

All this leaves the United States room for maneuver. If it can make up lost ground and build on what it started with the December summit, the United States and Africa will prosper.


Rama Yade is the senior director of the Atlantic Council’s Africa Center and a senior fellow at the Europe Center. She is a professor at Sciences Po Paris and Mohammed 6 Polytechnic University in Morocco. She was a member of the French cabinet, serving as deputy minister for foreign affairs and human rights and ambassador to UNESCO.


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The top 23 risks and opportunities for 2023 https://www.atlanticcouncil.org/content-series/atlantic-council-strategy-paper-series/risks-opportunities-2023/ Fri, 23 Dec 2022 05:01:00 +0000 https://www.atlanticcouncil.org/?p=591126 The war in Ukraine changed the world in 2022. How will it continue reshaping global affairs in 2023 and what else looms on the horizon? The Atlantic Council’s top experts brought their globe-spanning expertise to the task of forecasting the near future.

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The top 23 risks and opportunities for 2023

Another world-shaking, world-reordering war in Europe. Brewing fears of war on an even greater scale in Asia. A coronation in China and political upheaval across the democratic world. Climate-induced catastrophes and emboldened movements to mitigate and adapt to them. The worst energy crisis in a half century and worst food crisis in over a decade. Spiraling inflation and the specter of global recession. A less acute but still-raging, still-hugely disruptive pandemic. Epochal ferment in social media and technology more broadly.

Recently, the leaders of the Atlantic Council’s sixteen programs and centers gathered to take stock of these and other developments and trends over the past year, peer into the future, and predict the biggest global risks and opportunities that 2023 could bring.

The results of this foresight exercise are below. Each scenario is assigned a probability; “medium” means a 50/50 chance that the scenario will occur within the next year. Many lower-probability but highly consequential scenarios are included because—as has been so vividly demonstrated this past year—those types of events tend to be some of the most disruptive and transformative. And keep in mind: Forecasts are not destiny. Political leaders and policymakers have agency in shaping whether and how these scenarios play out in the coming year or beyond. The primary purpose of assessing global risks and opportunities, in fact, is to gain insight into how to avert unwanted outcomes and achieve desired ones. To that end, don’t miss the policy prescriptions mixed into many of the entries below.

Top risks

A surge in climate adaptation curtails progress on cutting emissions, locking in at least 1.5 degrees of warming

Pakistan’s devastating floods in 2022, along with the tireless advocacy of Pakistan’s federal minister for climate change, Sherry Rehman, played a pivotal role in rallying parties at the COP27 climate conference to create a Loss and Damage Fund, where rich countries will provide payments to developing countries confronting the costly impacts of climate change.

But there is a strong possibility in the coming year that this new and desperately needed focus on climate resilience, loss, and damage will produce an unintended opportunity for backsliding on mitigating climate change. Moving from the COP27 agreement to an actual fund with money and a plan to disburse it will require tremendous international activism and action, which could reduce the pressure on governments and non-state actors to cut greenhouse-gas emissions and transition to clean energy. That would slow the already sluggish speed at which the world reins in global warming—the root cause of the destruction that has necessitated the Loss and Damage Fund in the first place. If country and corporate delegates show up in December at the COP28 climate-change conference in the United Arab Emirates with a focus on climate adaptation and loss and damage, but without major commitments to reduce emissions as well, we’ll know this scenario has materialized—and that this century the world will blow past an average increase in temperatures of 1.5 degrees Celsius above pre-industrial levels, which countries have sought to avoid as part of their commitments at the 2015 Paris climate conference.

Baughman McLeod was a global environmental and social risk executive at Bank of America, and a former managing director of climate risk and resilience at The Nature Conservancy. She was an energy and climate commissioner of the state of Florida.

Iran becomes a nuclear-weapons power

In 2023, Iran is very likely to pass the point of no return and become a de facto nuclear-weapons state. Outside experts estimate that Iran’s dash time (the time it would take to make one bomb’s worth of weapons-grade uranium) has shrunk to just a few weeks. As Iran continues to ramp up its nuclear program, this timeline will soon shrink to zero.

With international nuclear talks stalled amid continuing protests inside Iran at the end of 2022, a diplomatic breakthrough to halt the program now seems implausible. Several consecutive US presidents, including Joe Biden, have said that the use of force is a last-resort option to keep Tehran from the bomb, but many suspect a bluff. Washington is not taking the steps (such as building domestic or international support for military action) that would be the obvious prelude to military strikes on Iran’s nuclear facilities. Iran is unlikely to test a nuclear explosive device in 2023—and it will take time (perhaps years) for it to put a warhead on a ballistic missile. But once Iran has enough weapons-grade material for its first bomb, the game is over. We will look back at 2023 as the year in which the bipartisan US and international effort to keep Tehran from the bomb failed.

Kroenig currently sits on the Congressional Commission on the Strategic Posture of the United States. He served in defense and intelligence roles in the Bush, Obama, and Trump administrations. From 2017 to 2021, he was a senior policy adviser to the Office of the Assistant Secretary of Defense for Strategy, Plans, and Capability/Nuclear and Missile Defense Policy.

The United States loses Colombia—and with it, increasingly, Latin America

Colombia has long served as the linchpin of US policy in Latin America, and it is currently the only major economy in South America that does not have China as its largest trading partner. But all that may be set to change in 2023. In pursuing his policy agenda, the country’s new president, Gustavo Petro, could generate a backlash in the US Congress, particularly the Republican-controlled House of Representatives.

Those policies include Petro’s efforts to reimagine (and potentially scale back) cooperation with Washington on judicial issues and criminal extradition, achieve a possible agreement with Colombia’s National Liberation Army guerrilla group, and move away from lockstep coordination with the United States on eradicating drugs and overall drug policy (a joint approach that has been the fundamental tenet of US-Colombia relations over the last twenty years). Fallout in the United States, could, in turn, offer China an opportunity to increase its clout in Colombia. More broadly, inflation and other economic woes in the United States could have outsize consequences for Latin American countries, including greater political polarization and social unrest that leads to democratic backsliding as well as sovereign-debt issues. China could then position itself as a provider of desperately needed relief for countries grappling with these challenges. In such a scenario, US policymakers might be at risk of increasingly losing influence in not just Colombia but Latin America as a whole. A secure position in its near abroad has long been a predicate for America’s robust global posture. Is that position now poised to further erode, even with a longstanding ally?

Marczak has over twenty years of expertise in Latin American economics, politics, and development, working with policymakers and private-sector executives to shape public policy. He is an adjunct professor at the George Washington University’s Elliott School of International Affairs where he teaches on Central America and US immigration policy.

The internet splinters entirely and irrevocably 

Authoritarians have been trying to assert control over their technology ecosystems for years, but 2023 could be the year they finally succeed in creating online information environments that they can fully command. Russia, for example, has increased efforts to censor or shut down entire digital platforms for allowing any information about its war of aggression against Ukraine, turning these platforms into a new domain of conflict. China is going further and seeking to build the backbone of an unfree internet beyond its borders by investing in information infrastructure as part of its “discourse power” strategy. Even some democracies such as India and Turkey are instituting sweeping internet shutdowns and crackdowns on freedom of expression online. The US government, meanwhile, lacks a clearly articulated strategy to promote an alternative at home and abroad. What’s playing out is not a partitioning of the infrastructure on which the internet operates, but rather an intensifying contest over the rules that govern infrastructure that is inherently interconnected. 

Don’t expect a switch to flip, but watch for a slow roll toward two internets: one designed to facilitate government control with built-in surveillance, and one at least aiming to be free, open, secure, interoperable, and governed by many. There is a low likelihood that a full-scale splintering happens in the coming year. But if it does, it would change the world for a long time to come—and it could have a catalytic impact on nearly every other risk and opportunity on this list. There is opportunity embedded in this risk, however: Through novel mechanisms such as the Freedom Online Coalition, the US-EU Trade and Technology Council, a new US State Department bureau focused on digital freedom (the Bureau for Cyberspace and Digital Policy), and new offices at the US National Security Council, democratic countries are now better staffed and resourced to craft that much-needed strategy for protecting an open, global internet. There is nothing inevitable about a “splinternet.”

Brookie served in various positions at the White House and National Security Council. His most recent role was as an adviser for strategic communications with a focus on digital strategy, audience engagement, and coordinating a cohesive record of former US President Barack Obama’s national security and foreign policy.

The United States and its allies give up on Ukraine and acquiesce to a Russian victory there

As long as US leadership remains strong, Russian President Vladimir Putin will lose in Ukraine. But a Russian victory could come if the United States forgets its vital interests in this outcome. There are several ways in which such a scenario—whose probability I’d put at under 10 percent—could materialize.

One possibility: In response to Putin’s continued nuclear saber-rattling, fear of nuclear war (fear that would likely be ill-considered, I believe) grows to such an extent in the United States that the country ends up substantially reducing aid to Ukraine. If populist right-wing politicians, despite their underperformance in the US midterm elections, gain greater influence in Washington, that could also lead to a reduction in such assistance. Higher energy prices in the United States and especially in Europe could pressure governments as well.

Herbst’s 31-year career in the US Foreign Service included time as US ambassador to Uzbekistan, other service in and with post-Soviet states, and his appointment as US ambassador to Ukraine from 2003 to 2006. In that role he helped ensure the conduct of a fair Ukrainian presidential election and prevent violence during the Orange Revolution.

Putin is playing the long game with Europe—and he can still win. Thus far we’ve seen unprecedented, underappreciated European cohesion in response to Russia’s war against Ukraine, but that unity can’t be taken for granted. And we’re already seeing cracks in familiar places, including between large and small countries as well as wealthy and poorer ones. There are four drivers of this risk, which taken together could produce political gridlock and fragmentation in the European Union (EU). The losers in such an outcome? Europe, Ukraine, and the transatlantic relationship. The Winner? Putin.

  • Energy shocks: The coming year’s energy crisis could be worse than this past year’s. With Russian gas flows no longer available to refill depleted European stocks early in 2023 and no significant new European import capacity coming online, prices in the region could stay elevated and produce a mad scramble for gas.
  • Economic contraction: The economic ripple effects of gas shortages include the risk of recession, inflationary pressures, business failures, and all the attendant impacts on cost of living, living standards, and labor markets, which in turn have political repercussions. In the medium term, these consequences might do lasting damage to European competitiveness. We’re already seeing trade surpluses dwindling and key economic sectors idling production.
  • The toxic brew of #1 and #2: The stabilization measures that European governments have put in place to respond to the two challenges above could fuel concerns about sovereign debt and lead to a new Eurozone crisis.
  • Domestic dynamics: The Franco-German engine of European action is sputtering. Economic problems, French President Emmanuel Macron’s precarious parliamentary backing, and German Chancellor Olaf Scholz’s complicated three-party coalition constrain both countries’ leaders at home and in the region, and there is uncertainty about how Italy’s new right-wing, EU-skeptical government will relate to Brussels. Major elections in 2023 in Poland, Greece, Estonia, Finland, Spain, and other countries could bring Euroskeptic and Russia-sympathetic politicians to the fore—while also pushing existing governments in those directions.
Fleck was chief of staff for a member of the European Parliament and then director of the Transatlantic Policy Network. At the Atlantic Council he continues his work liaising with US and EU lawmakers on diplomatic relations, trade policy, and EU foreign and security policy.

The end of 2022 featured the worst global energy crisis since the Arab oil embargo of the 1970s. The crisis is not purely of Russia’s making, though major drivers include the geopolitical uncertainty produced by the Kremlin’s invasion of Ukraine as well as Russian attempts to weaponize its oil and gas supplies. The decrease in energy demand during the early part of the COVID-19 pandemic aggravated chronic underinvestment in the energy sector. Coupled with a rapidly warming planet, these factors have put affordable and reliable energy resources out of reach for many in both developed and emerging economies. Moreover, price pressure on the conventional energy resources of oil, gas, and coal comes when the world is also experiencing a unique confluence of drought and abnormal weather patterns, which have hobbled access to electricity from nuclear power (in France, for instance, where water scarcity is impacting nuclear-fuel production) and hydropower (in China and previously Argentina and Brazil).

Derentz is the former director of Middle Eastern and African affairs at the US Department of Energy. He served in energy-related roles at the National Security Council and National Economic Council, and under three energy secretaries.

Jihadists construct a “terrorist bridge” from the Red Sea to the Atlantic

Burkina Faso experienced two coups in 2022 and Mali is still ruled by a military junta that seized power at the end of 2021. The military factions that took control in each country have not yet allowed transitions to democratic elections to take place. The resulting political instability and uncertainty in West Africa compounds the challenges of containing the jihadist movements active in both countries and elsewhere in Africa, with recent attacks in Benin, Cote d’Ivoire, and Togo.

These jihadists—linked to al-Qaeda and the Islamic State—seek to control a span of territory stretching from the Red Sea to the Atlantic coast of Africa. That would grant them access to drug-trafficking routes from South America, which would provide a substantial source of revenue for their wars. Though great-power competition and conventional warfare are in the global spotlight now, jihadist groups with transnational ambitions, based in weak, unstable states, are a risk that merits attention. With jihadist movements also active elsewhere on the continent—from Mozambique to the Great Lakes—some experts are stressing the risk of an “Africanization of jihadism.”

Yade served in several positions in the French government, including as the deputy minister for foreign affairs and human rights, and executive director of the France-West Africa Parliamentary Friendship Group. She also teaches African affairs at Mohammed VI Polytechnic University in Morocco and at Sciences Po – Paris.

A crisis just short of war erupts over Taiwan

There are many paths to a major crisis over the Taiwan Strait, the risk of which jumped significantly in the last half of 2022 following China’s military response to US Speaker Nancy Pelosi’s trip to Taiwan in August. How might it start? It probably won’t be a development in Taiwan itself or some bolt from the blue by the Chinese. I haven’t seen serious signs that China will attempt to force Taiwan to unify with the mainland in the coming year.

One possible spark would be some action by US policymakers in Congress, where momentum in favor of stepped-up US material and rhetorical support for Taiwan’s defense and de facto independence is only likely to grow with the Republican takeover of the House. China’s reaction would likely go well beyond what it did following Pelosi’s visit, which included launching ballistic missiles near Taiwan, carrying out military exercises in the waters around the island, conducting a dry run for a blockade, and canceling diplomatic dialogues with the United States. Whatever the response from Chinese leaders, the result will be a new—and more confrontational—normal. They might, for example, take retaliatory actions in Taiwan’s offshore islands or launch a cyberattack against Taiwan’s electrical grid. They may carry out measures that affect the Taiwanese economy or regional supply chains—such as a true blockade of the island—and generally make a mess of the global economy as a result. World War III over Taiwan in 2023 isn’t likely, but what is more likely is a serious Strait standoff short of war that tests US resolve and raises the risk of war in the near future. And any confrontation that pushes the United States and China further into their corners is dangerous in its own right,

Shullman oversaw the International Republican Institute’s work building the resilience of democratic institutions around the world against the influence of China, Russia, and other autocracies. For nearly a dozen years he was one of the US government’s top experts on East Asia, most recently as deputy national intelligence officer for East Asia on the National Intelligence Council.

Countries—and not just US adversaries—move away from the dollar faster than anticipated

Alarmism about the health of the US dollar is an age-old tradition in Washington and beyond. Even a broken clock is right twice a day, though, and that time of day may be approaching. The dollar’s advantages remain deeply entrenched in the global financial system. Americans experiencing the strength of the dollar right now relative to currencies such as the pound, euro, and yen would be forgiven for thinking that there is nothing to worry about.

When you drill down, though, it becomes clear that many countries would like to move away from the dollar even if it won’t be easy and there is no clear alternative in the near term. That shift is, in fact, already happening gradually. The dollar’s share of foreign-exchange reserves is declining. Nations around the world—not just US rivals such as China but also countries including India, Indonesia, Malaysia, and South Africa—are investing in technologies such as central bank digital currencies that could make them less reliant on the dollar. The unprecedented global sanctions regime swiftly imposed on Russia in the wake of its February invasion of Ukraine has only increased the likelihood of an accelerated move away from the dollar—perhaps to a probability of roughly 15 percent. If countries can find ways around the dollar, the impact of sanctions would be undercut over time. The next time an adversary violates another country’s borders, the US economic counterpunch might not be quite as painful.

Lipsky previously served as an advisor at the International Monetary Fund and speechwriter to Christine Lagarde, and as an appointee at the State Department, in the role of special advisor to the undersecretary of state for public diplomacy. He worked in the Obama White House helping plan the president’s participation at the G-20 and other global summits.

New momentum builds for US withdrawal from the Middle East—and this time it doesn’t meet resistance

Despite recurring pressures over the decades for US withdrawal from the Middle East, US interests in the region have remained stable and US and Middle Eastern leaders have repeatedly sought to overcome the challenges that could precipitate such a withdrawal. But my fear is that the stars align for that pattern to finally change in 2023.

In Washington, those advocating for less US action or presence abroad have growing influence in both parties, though to date they have been largely held at bay by the Biden administration. In Riyadh, relations with the United States are increasingly strained, with each side too often publicly expressing unreasonable expectations of the other. In Jerusalem, the most right-wing government in the country’s history is about to take office, bringing with it predictable challenges for the US-Israel relationship. In Tehran, the regime continues to extend its malign activities outside the region and violently repress its people, all while the most dangerous internal elements jockey for position amid the looming succession of the supreme leader. In this context, the central policy question that has driven US-Iran relations for three consecutive US administrations—should the United States favor or oppose the 2015 nuclear agreement with Tehran—becomes irrelevant. Longstanding regional partners too frequently deprioritize US concerns over China and Russia in an effort to hedge against the prospect of US withdrawal, which only serves to increase the probability of that outcome. Several of these partners are perceived to have taken sides in US partisan politics, which contributes to the trend of US policies shifting along with election results. So the questions must now be asked: Over the course of the coming year, will US and Middle Eastern leaders still recognize a strategic need to prevent US withdrawal from the region? If so, what preferences are they willing to subordinate to that end?

Wechsler’s career in government focused on military, law enforcement, and financial efforts to combat transnational crime networks and terrorist groups. His most recent government position was deputy assistant secretary of defense for special operations and Combatting Terrorism.

Developing countries suffer a wave of defaults and economic hardship

The world is moving toward a global recession. That will mean less demand and a lower price for non-energy exports from developing countries. At the same time, the cost of energy and food is rising, in part as a result of the global fallout from the war in Ukraine. Developing countries are therefore about to get squeezed—making less money on what they’re selling and paying more money for what they’re buying. At the same time, interest rates are going up everywhere and lenders are showing less tolerance to assume risk in their dealings with developing countries.

All this will make it harder for developing countries to service and refinance their debt, which will increase the likelihood of sovereign and corporate defaults. Defaults, in turn, could have broader knock-on effects such as stoking authoritarianism and insecurity in politically fragile countries. The poorest countries will fare the worst with these trends in the coming year.

Negrea was the State Department’s special representative for commercial and business affairs from 2019-2021, and he held the economic portfolio in the secretary of state’s Policy Planning office from 2018-2019. He began his career as an official in the Ministry of Finance in Communist Romania, then defected to the United States and went on to a three-decade career on Wall Street.

A growing trust deficit destabilizes democracies from within

Many democratic countries are heading into 2023 with highly divided societies, shaky institutions, and question marks hanging over their political leaders. In Brazil, Jair Bolsonaro stoked rumors of voter fraud and rigged elections throughout the country’s 2022 presidential campaign and took his time conceding to Luiz Inácio Lula da Silva, who resumes the presidency after spending time in prison on corruption charges. In Israel, the fifth election in four years returned Benjamin Netanyahu to power by a razor-thin margin of victory. The United Kingdom is now on its third prime minister in months. The serious threat of political violence persists in a politically polarized United States.

What happens when the democratic world is led by people whose electorates largely don’t trust them—or even the elections that brought them to power? The potential outcomes include repeated leadership changes, continued chaos around elections, and more contestation of the validity of election results. In parliamentary systems especially, frequent elections introduce volatility that the world can ill afford. If the top of a democracy is unsteady enough, eventually it will shake the foundations.

Fisher has been an executive and convener in leadership and social innovation around the world. He was the founding director of GATHER, Seeds of Peace’s social innovation arm, worked on regional economic development in Israel, and coached and consulted for the climate-finance team at the Hewlett Foundation and the social innovation team at Kaiser Permanente.

US tech policy toward China drives a wedge in the transatlantic relationship

European companies could soon have to choose between the Chinese and US markets. While questions of economic relations and technological development are mostly understood as commercial activities in Europe, they are increasingly viewed through the lens of national security in the United States. In China, too, the ability to manufacture advanced technologies such as semiconductor chips is seen as vitally important to the country’s development and security.

Xi Jinping’s speech to the 2022 Party Congress made clear that he intends to double down on developing indigenous technological capabilities, which would not only enable further military advances but create more Chinese technology products that are able to compete with US suppliers. Historically, after developing strong domestic production capacity in a particular area, China has gone around the world and undercut other markets and suppliers. The risk this situation poses to US and European competitive advantage is compound: Companies usually fund research and development (R&D) as a fraction of their sales, and if sales drop then R&D funding declines and innovation slows. The United States is attempting to assert its technological leadership and hinder China’s technological advancement in two ways: promoting (through measures such as the 2022 CHIPS and Science Act) and protecting (through measures such as export controls) domestic industry. But both methods carry significant risks of unintended consequences. By reducing revenue for US companies that do business in China, for example, the “protect” strategy is likely to reduce the capital available from the private sector that the US government is counting on to reshore or “friend-shore” manufacturing capacity, putting US industry further behind Chinese industry in R&D investments. Some US partners are already so dependent on China either as a market for their domestic industries or as a supplier of critical technologies that full-blown tech decoupling won’t be possible without risking their economic health. This dependence might lead to worsening transatlantic relations and increasing disputes over how to deal with a rising China, which may even contribute to a splintering of the alliance supporting Ukraine.

Whitman had a distinguished federal career in science and technology research and policy. His most recent post was at the National Science Foundation as assistant to the director for science policy and planning, where he worked closely with the White House to promote US leadership in emerging technologies.

Top opportunities

Ukraine wins—and becomes part of the institutional West

We should pay attention to Putin’s efforts to use Russian energy supplies as a weapon to break Western support for Ukraine. But that support has held steady even as temperatures have started dropping and as the Nord Stream pipelines carrying Russian gas to Europe have suffered apparent sabotage. These are among the many signs presaging support that lasts the winter, which could result in Western arms continuing to flow into Ukraine and the Russian military continuing to struggle on the battlefield.

If Ukraine wins the war in 2023—a big if, but not the unthinkable prospect it was a year ago—and eventually joins the European Union and NATO, the upside potential is enormous. And not only for Ukraine: Such developments would represent a huge success for US leadership in Europe and the future of the rules-based international system.

Kroenig currently sits on the Congressional Commission on the Strategic Posture of the United States. He served in defense and intelligence roles in the Bush, Obama, and Trump administrations. From 2017 to 2021, he was a senior policy adviser to the Office of the Assistant Secretary of Defense for Strategy, Plans, and Capability/Nuclear and Missile Defense Policy.

The transition away from fossil fuels reaches an inflection point

Net-zero greenhouse-gas emissions could be within sight by 2050 if we play our cards right. The 2022 Inflation Reduction Act alone represents the single largest investment in climate and energy in American history, presenting an unprecedented opportunity for the United States and its friends and allies to establish durable and secure supply chains that will accelerate the world’s march to net-zero emissions. Add to this the Bipartisan Infrastructure Law and the renewed focus in Western capitals this past year on diversifying away from reliance on Russian and Organization of the Petroleum Exporting Countries (OPEC) energy supply, and 2023 could be a bellwether year for the clean-energy transition.

To fully capitalize on the momentum, however, Washington needs to get out of its own way. There is a need to build conventional and clean-energy infrastructure, but that can’t happen until Congress passes permitting reform that would make it easier to produce oil and gas resources and move electrons from clean-energy sources in the United States. Such permitting reform has bipartisan support, but the odds of a polarized Congress passing it remain low—jeopardizing the country’s ability in 2023 to scale investment and seize this potential inflection point in the global transition from fossil fuels to clean energy.

Derentz is the former director of Middle Eastern and African affairs at the US Department of Energy. He served in energy-related roles at the National Security Council and National Economic Council, and under three energy secretaries.

Turkey emerges as a security guarantor in the Black Sea

NATO had a strong interest in a more stable Black Sea region even before Russia invaded Ukraine, but in 2023 securing the region will only grow in importance. As the Alliance’s second-largest military power and the country controlling the only way in and out of the Black Sea, Turkey has a pivotal role to play in ensuring the region’s stability and security.

There have been signs in 2022 that Ankara is willing to put this influence to good use, leveraging its connections with both Ukraine and Russia to push for direct peace talks between the two sides. Turkish Bayraktar drones have been instrumental in Ukraine’s defense, while Turkey has also leveraged its longstanding relations with Russia to facilitate, alongside the United Nations, an agreement with Moscow and Kyiv that unlocked the export of Ukrainian grain and lowered the risk of a global food crisis. Turkey is likely to continue to push for a settlement to the war in 2023. Should one start to take shape, Turkey could emerge as a security guarantor and regional counterweight to Russia. Turkish gas discoveries in the Black Sea also have the potential to bolster regional energy security and diversify energy supplies.

Arslan is an economist and energy expert based in Turkey, with long experience liaising between regional governments and the private sector. Arslan worked as a senior economist at the US embassy in Ankara and was the founding coordinator at the Turkish International Cooperation Agency.

The United States demonstrates that “America is back” economically in Asia

If the United States were to reassert its economic leadership in Asia, which it more or less relinquished after the Trans-Pacific Partnership trade pact fell victim to domestic politics in 2017, it would serve as a response to the economic influence that China has racked up there in the intervening years. It would also represent an important shift from the US government’s primarily security-focused approach to the region.

Look for significant progress in US efforts to bolster economic ties in Asia by the time of the Asia-Pacific Economic Cooperation forum in San Francisco next November. Of particular note would be the finalization of negotiations on the Indo-Pacific Economic Framework as well as significant progress in negotiations on the 21st Century Trade initiative between the United States and Taiwan, which is meant to be a move closer toward a free-trade agreement. Collectively those achievements would show that the Biden administration is making good on its rhetoric about US commitment to the Indo-Pacific going beyond China to focus on benefits for countries across the region. It would also indicate that the United States is resuming its role of regional economic integrator and is prepared to offer a robust alternative to the China model.

Shullman oversaw the International Republican Institute’s work building the resilience of democratic institutions around the world against the influence of China, Russia, and other autocracies. For nearly a dozen years he was one of the US government’s top experts on East Asia, most recently as deputy national intelligence officer for East Asia on the National Intelligence Council.

Putin loses—abroad and at home

Putin is in deep water as the Russian military flounders in Ukraine. If the transatlantic community maintains its policy of support for Ukraine and pushback against the Kremlin—and especially if such support increases, leading to Kyiv regaining control of most of mainland Ukraine —don’t rule out Putin’s departure from power in 2023. The chances of that occurring, in fact, might be as high as 25 percent. Such a development would most likely flow from increasing economic pain and war casualties producing civil unrest in Russia, all of which prompts insiders to band together to push Putin out of office.

Some fear that any plausible replacement would be worse than Putin. But if past is prologue, the chances of Putin’s removal producing a political and diplomatic opening of some kind is significantly higher than that of an even more brutal and aggressive Kremlin policy emerging. If Putin’s failure in Ukraine leads to more than the already-unusual public discontent on display now in Russia, and to real political change in the country, that raises the possibility of at least limited liberalization and normalization of bilateral ties with the United States.

Herbst’s 31-year career in the US Foreign Service included time as US ambassador to Uzbekistan, other service in and with post-Soviet states, and his appointment as US ambassador to Ukraine from 2003 to 2006. In that role he helped ensure the conduct of a fair Ukrainian presidential election and prevent violence during the Orange Revolution.

The European Union starts acting like a great power

Three factors could push Europe to move from debate to action on the question of a more geopolitical European Union. The first is Putin’s aggression in Ukraine. The second is China’s global assertiveness. The third is the potential return of Donald Trump to the US presidency in 2024.

For many European leaders, the past year’s dramatic developments answered some of the unresolved questions about European strategic autonomy. Russia’s war unequivocally underscored the United States’ indispensable role in European security. It also killed any remaining illusions about a European special relationship with Russia and converted even the most dovish proponents of that position in Berlin. Europeans are now much more strategically aligned on the question of the European Union’s relationship with power, even if the EU’s instruments for exercising hard power are still lacking. More hawkish views on China are on the ascendancy in the region as well. The coming year will be about how to put these ideas into practice geopolitically, diplomatically, and especially militarily. What might that look like exactly? If EU military aid continues to flow to Ukraine, that would be an indication that the shift to a more geopolitical EU is happening in practice. In Berlin, it could take the form of operationalizing the government’s ambitious Zeitenwende concept for how to engineer a turning point in German foreign and defense policy. Elsewhere, watch for the European Peace Facility (the security-assistance fund from which EU military support for Ukraine is drawn) to be replenished.

Fleck was chief of staff for a member of the European Parliament and then director of the Transatlantic Policy Network. At the Atlantic Council he continues his work liaising with US and EU lawmakers on diplomatic relations, trade policy, and EU foreign and security policy.

A push for EU expansion boosts the democratic world

Authoritarian Russia’s war against democratic Ukraine has had a boomerang effect on the Kremlin by prompting NATO’s expansion to the north to include Finland and Sweden. Now it may have a similar effect by propelling the European Union’s expansion to the south. As I know from experience in my native Romania, many former communist countries view EU membership as a means of escaping their oppressive Soviet past and the Russian sphere of influence with all its pathologies, including corruption, authoritarianism, and arbitrariness—as a way, in other words, of moving to a Western world of democracy, free markets, and rule of law.

Just as the Ukrainian government applied to join the EU within days of Russia’s further invasion of the country, leading the EU to speedily accept Ukraine’s candidacy (and that of Moldova), the conflict may well accelerate the EU membership bids of the Western Balkans countries in the coming year. Albania, Bosnia, Kosovo, Montenegro, North Macedonia, and Serbia will likely feel increased urgency to obtain the greater prosperity and security that they believe EU membership would provide, and EU leaders could be more inclined to embrace them—as Germany’s chancellor, for example, has recently signaled.

Negrea was the State Department’s special representative for commercial and business affairs from 2019-2021, and he held the economic portfolio in the secretary of state’s Policy Planning office from 2018-2019. He began his career as an official in the Ministry of Finance in Communist Romania, then defected to the United States and went on to a three-decade career on Wall Street.

Venezuelan oil comes online, relieving pressure on global energy markets

Beginning with the November 26 announcement that the United States will issue a new license for Chevron to pump oil in Venezuela, the political space is opening for the United States to further lift the oil sanctions it imposed in 2019 in response to the increasing authoritarianism of Venezuela’s leader Nicolás Maduro. The interim government of Juan Guaidó, which the United States and more than fifty other countries recognized as the country’s legitimate leadership, will cease to exist in January when Guaidó’s term ends.

And the normalization of Maduro as Venezuela’s president is already underway across Latin America; even Colombia, once staunchly opposed to Maduro, reestablished diplomatic relations with his government in 2022. There are other signs pointing to a thaw as well, including Maduro’s participation at the COP27 climate-change conference and a prisoner swap between Venezuela and the United States in the fall. Talks between the Maduro government and its political opposition in Mexico City could foster a deal in which Maduro makes concessions—such as releasing political prisoners, granting opposition candidates access to traditional media outlets, and complying with the recommendations of election observation missions—regarding Venezuela’s 2024 presidential elections in exchange for the United States removing additional sanctions. That pact might include production-sharing agreements between US companies and the Venezuelan state oil company PDVSA as well as the creation of a fund for revenue from Venezuelan oil sales that prevents the proceeds from going to the Maduro government itself. Global energy markets will welcome this news—especially in Europe amid its energy crunch—since Venezuela has the world’s largest proven oil reserves. The country’s oil sector has grown dilapidated over the past decade. But with the right investments, in the span of a couple years, the world could have a significant new source of supply.

Marczak has over twenty years of expertise in Latin American economics, politics, and development, working with policymakers and private-sector executives to shape public policy. He is an adjunct professor at the George Washington University’s Elliott School of International Affairs where he teaches on Central America and US immigration policy.

High-skilled visa reform finally happens in the United States

The chances that the US Congress could reform immigration law to allow more high-skilled immigrants to stay and work in the United States are now better than they have ever been. In the United States, many of the college and graduate students in the most in-demand science, technology, engineering, and math (STEM) fields are residents of other countries and have difficulty obtaining visas to remain and work in the United States after graduation.

From the US technology sector’s point of view, graduate degrees in STEM fields should come with a green card attached. Democrats and Republicans generally agree on the need for high-skilled visa reform, but the two parties have been unwilling to decouple this shared interest from other matters of immigration policy where they fundamentally disagree. The issue that might break this logjam is China, whose technological ambitions came into sharper focus during the 2022 Chinese Communist Party Congress. The national-security implications of falling behind Beijing could finally spur some limited reform. A legislative breakthrough that grants lawful permanent resident status for certain advanced STEM degree holders—perhaps as part of the National Defense Authorization Act—would be a big win for the US tech sector and the future of US innovation in emerging technology.

Whitman had a distinguished federal career in science and technology research and policy. His most recent post was at the National Science Foundation as assistant to the director for science policy and planning, where he worked closely with the White House to promote US leadership in emerging technologies.

Funding for climate adaptation and resilience dramatically accelerates and doubles in size

One of the most significant outcomes of this past year’s United Nations COP27 climate-change conference was that it produced a path forward for the 2015 Paris Agreement’s Global Goal on Adaptation. That includes $230 million (admittedly still a drop in the bucket compared with an expected need of hundreds of billions of dollars per year) in new pledges by governments and development agencies to help countries adjust to a changing climate, as well as the announcement of the Sharm el-Sheikh Adaptation Agenda to enhance resilience in the world’s most climate-vulnerable places by 2030.

Outside the official negotiations at COP27, I witnessed numerous efforts to accelerate investment in climate resilience, including new initiatives to mobilize capital for adaptation to extreme heat and for cooling food, medicine, and buildings through methods ranging from light surfaces to green spaces and roofs to machines powered by renewable energy. The select non-governmental “Climate Champions” at COP27 also endorsed existing projects where the insurance industry is taking risk-transfer approaches to advance climate adaptation along with disaster preparedness and response. European Union regulators, meanwhile, have developed a taxonomy for the financing of climate adaptation, helping refine how to measure such investments. Less than 10 percent of total climate finance currently goes to climate adaptation. But the stage is set for an innovative cast of public and private actors to make 2023 a breakthrough year in which investments in climate adaptation more than double to account for a quarter of total climate finance.

Baughman McLeod was a global environmental and social risk executive at Bank of America, and a former managing director of climate risk and resilience at The Nature Conservancy. She was an energy and climate commissioner of the state of Florida.

Climate change accomplishes what nothing else will: Unite South Asian nations

The nearly 2 billion people living in South Asia, one of the world’s least economically integrated regions, all face a much higher-than-average risk from climate change, as was poignantly on display during Pakistan’s deadly floods this past year. One recent study, for example, found South Asia to be the region most at risk of suffering economic losses from climate change.

The threat has become dire enough that, as my colleague Harris Samad has pointed out, climate change may be the one chance to generate constructive transnational conversations in South Asia over the coming year. The catch that makes major progress unlikely? These conversations would need to occur among civil-society organizations, since the governments in the region have effectively closed down all cross-border scientific cooperation. Still, collaboration of any kind—from standardized climate curricula to a public-private forum for data-sharing to common strategies for building climate-resilient infrastructure —would present an opportunity to save countless lives. At the regional and local levels, it would also serve as a model for how to counteract climate change despite deep geopolitical divisions.

Nooruddin is the Hamad bin Khalifa Al Thani Professor of Indian Politics in the School of Foreign Service at Georgetown University. He researches and publishes widely on the political economy of development, trade, and investment, and the challenges of democratization in the 21st century.

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Macky Sall: Africa needs ‘justice and equity in international relations’ to ‘build its own destiny’ https://www.atlanticcouncil.org/commentary/transcript/macky-sall-africa-needs-justice-and-equity-in-international-relations-to-build-its-own-destiny/ Tue, 20 Dec 2022 01:56:28 +0000 https://www.atlanticcouncil.org/?p=596823 Senagal's president, who is also the head of the African Union, spoke at an Atlantic Council dinner ahead of the US-Africa Leaders Summit in Washington.

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Below are the remarks of Senegal President and Chairperson of the African Union Macky Sall as prepared for delivery at an Atlantic Council dinner in Washington on December 12, 2022, ahead of the US-Africa Leaders Summit.

Dear colleagues, ministers, members of Congress, ambassadors, representatives of the private sector, the academia, and civil society; dear guests.

I would like to thank the [chairman] of the Atlantic Council, Mr. John Rogers, and its CEO, Mr. Frederick Kempe, for their kind invitation, as well as my compatriot, Ambassador Rama Yade, who has been following up on this for several weeks. I greet and thank all the colleagues, personalities, and other guests gathered here.   

I appreciate the efforts that the Atlantic Council has been making for several decades in the analysis and reflection on global issues and challenges facing the world. In my opinion, the place of Africa in contemporary international relations is one of these issues.

More than sixty years after our independence, Africa is still hemmed in on the world stage, and prejudices against the continent remain tenacious. We must therefore continue to advocate, explain, deconstruct unfounded narratives, demand justice and equity, and re-establish historical truths.

Sixty years ago, the vast majority of African countries gained their independence after five hundred years of slavery and colonization. This handicap is unparalleled in the history of humankind. But Africa is still here, alive and resilient.

My view is that despite this historical wrong and the challenges of the day, Africa is moving generally in the right direction. It is true that the cumulative effects of the COVID pandemic and the war in Ukraine have seriously slowed down the dynamics of African growth, which has been regularly higher than the world average in recent years, but the momentum of Africa’s emergence seems irreversible to me. 

It is up to us to support this ambition for progress in the fully assumed responsibility of an Africa that does not have any complexes, that makes its own story, carries its own vision of the world, makes its choices in its best interests, and builds its own destiny.

In a way, I can echo here what the founding fathers of the United States Declaration of Independence affirmed 246 years ago, by saying the time has come for Africa to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature’s God entitle her. 

And Africa has the potential to assume that station, with its thirty million square kilometers, 1.4 billion inhabitants, large water reserves, 60 percent of the world’s undeveloped arable land, 40 percent of the world’s gold reserves, 85-95 percent of the world’s chromium and platinum group metal reserves, 85 percent of the world’s phosphate reserves, more than 50 percent of the world’s cobalt reserves, one third of the world’s bauxite reserves, 12 percent of the world’s oil reserves, and a world-class new gas calling.

What we need today is to work on improving the conditions for exploiting these resources. 

This requires qualified human capital in sufficient numbers, by further developing technical and vocational training at all levels so that our countries can have human resources capable of supporting the structural transformation of their economies. Without quality human capital, the demographic dividend will be more of a handicap that hinders our development efforts than a force that supports our economies.    

The pursuit of Africa’s integration seems to me to be just as fundamental, not only at the political level, but also at the economic and commercial levels. This has been the purpose of the gradual establishment of the African Continental Free Trade Area, to which the African Union devoted an Extraordinary Summit on November 25.

But beyond the texts, it is also through infrastructure that we will be able to enable the free movement of people and goods, which is essential for integration. With the Program for Infrastructure Development in Africa (PIDA), we want to invest more in the construction of roads, highways, ports, airports, and railroads in order to catch up in this area. 

I must say that for a long time, several countries and partner institutions showed little interest in this strategic sector. Today, everyone realizes that the development of such profitable infrastructures is an important niche of opportunities for investors and host countries, especially through PPPs. 

All our partners, old and new, are welcome on these projects. While keeping their traditional friendships, our countries are also opening up to new horizons. Openness is the very meaning of history.   

Beyond our national and continental responsibilities, Africa’s place in the international system also depends on fairer and more equitable global governance. This is what the advocacy that I have been leading since the beginning of my mandate at the head of the African Union on several fronts is all about.

First, for the consistent financing of African economies, we believe it is necessary for the OECD to reform the conditions of access to export credit, by relaxing the rules on credit rates and the duration of grace periods and repayment periods. This would make it possible to mobilize more resources for the financing of development projects, including through private investment and public-private partnerships.  

Second, we need to do more to combat abusive tax holidays, tax evasion, and tax optimization, which deprive our countries of significant financial resources, even though taxes should be paid where the activity generates wealth. It is fortunate that, at the initiative of the United States, the OECD adopted in October 2021 a landmark agreement on a 15 percent global minimum tax. This is a significant step in the fight against irregular tax practices that contribute to tax base erosion. 

In addition, we need to do more on improving the assessment methods of rating agencies. It has been noted that African countries continue to be penalized by an exaggerated perception of risk that increases insurance premiums and the cost of investment. 

The 2022 Financing for Sustainable Development Report published last April by some sixty international institutions, including the IMF and the World Bank, also noted the limitations of these assessments and recommended that the assessment criteria better reflect the real situation of each country. 

Finally, we want a fair and equitable energy transition that enables our countries to use their own resources to address their industrialization needs at competitive costs and ensure universal access to electricity, of which more than six hundred million Africans are still deprived. As noted at COP27, when it comes to climate change adaptation, it is our countries that tend to finance their green projects, including infrastructure, through debt, as agreed financial commitments to support developing countries’ adaptation efforts have been slow to materialize.

In addition to these economic, financial, and environmental considerations, we are advocating for a more equitable representation of Africa in global governance bodies such as the United Nations Security Council and the G20, so that its interests are better taken into account.

Finally, what Africa is calling for in terms of a different vision of the world is not a revolution, but a simple evolution for more justice and equity in international relations. It is a legitimate demand to which we want to associate all our friends and partners. I hope that the Atlantic Council will help to amplify this advocacy.

These are the few remarks I would like to make here, while waiting to deliver Africa’s message to our summit. Thank you for your attention.

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Global China in Africa: Documenting Indian perspectives from Ghana https://www.atlanticcouncil.org/in-depth-research-reports/report/global-china-in-africa-documenting-indian-perspectives-from-ghana/ Fri, 16 Dec 2022 17:09:15 +0000 https://www.atlanticcouncil.org/?p=594712 Partly due to the lack of alternative options, China is quickly becoming a partner of choice, and several African countries are keen to explore the many possibilities of working together.

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Table of contents

Introduction 
Multifaceted partnerships, intricate interests: India and China in Africa
Chasing opportunities: India and China in Ghana
Coexisting and competing with China in Ghana
Key takeaways
Conclusion

Introduction 

Today, a fragmented Global China1 operates in African landscapes. The artisanal miners in Kumasi, Ghana, contractors in Dar es Salaam, Tanzania, entrepreneurs in Harare, Zimbabwe, managers in Nairobi, Kenya, agroscientists in Lusaka, Zambia, and officials from both provincial and national governments are the face of the “new type of international relations” that President Xi Jinping claimed China and countries in Africa are collectively crafting.2

This is perhaps most evident in the infrastructure sector. The influx of capital vital to meeting Africa’s tremendous infrastructure needs is estimated to be between $130 billion to $170 billion a year, with a current financing gap of $68 billion to $108 billion.3 Today, Africa accounts for almost 25 percent of the global revenues of Chinese construction companies.4 To put this in context, in 1990, American and European companies had over 85 percent of the construction contracts in the continent. Now Chinese firms dominate with reports of market shares ranging between 31 percent to 62 percent, and in some cases—such as the Kenya National Highways Authority’s road projects—this number is even higher, with Chinese firms controlling 85 percent of all projects.5 

Chinese construction companies, with their unique advantages characterized by high speed, enormous scale, easy financing, and low costs enjoy a critical edge over other competitors.6 Additionally, Chinese-built industrial parks and economic zones in Africa are attracting low-cost, labor-intensive manufacturing units that are relocating from China. Chinese tech companies are laying critical telecommunications infrastructure even as, venture capital funds are investing in African fintech firms, and other smaller enterprises are expanding across the region.

Partly due to the lack of alternative options, China is quickly becoming a partner of choice, and several African countries are keen to explore the many possibilities of working together. Some governments, like Zambia, are hiring Chinese citizens in investment promotion agencies to ease processes made complicated by the oft-quoted gaps in communication, with departments conducting road shows in China to attract potential investors.7 Others, like Ethiopia, are making policy decisions to offer a slew of incentives to increase Chinese investments with the aim of diversifying the domestic industry, such as the pharmaceutical manufacturing sector.8

Beijing also gains tremendously from African countries’ collective political support in multilateral forums. According to late professor and author Ian Taylor,9 China was always acutely aware of the collective power of the African states in multilateral organizations: 

  • African countries played a crucial role in the debate and final acceptance of the People’s Republic of China into the United Nations. The pro-Beijing resolution was supported by 76 votes, with 35 against and 17 abstentions. Over a third of the votes in favour of the PRC were from Africa, including from four countries which still had diplomatic relations with Taiwan; and of the 23 co-sponsors of the “important question,” 11 were African. It is certain that without the African votes, China would not have succeeded in being admitted to the UN at the time.

Contemporary discussions on Chinese great power aspirations, the promise of the Belt and Road Initiative (BRI), and the “win-win” concept, are often substantiated by illustrations of how Beijing has changed the status quo in Africa.

Examining China in Africa from India is unique on two main counts. First, African nations, particularly in eastern and southern Africa, have long been traditional partners for India, sharing ideological, political, economic, and sociocultural relations. The immense geopolitical and economic sway Beijing appears to have cultivated, requires New Delhi to reimagine its engagement with the region. This includes stepping up triangular cooperation with other democracies already active in the region, such as Japan and the United States, or practical cooperation through partnerships like the Quadrilateral Security Dialogue, or Quad,10 a grouping of the United States, Australia, India, and Japan that works on a range of issues in the Indo-Pacific region including countries in Africa.11 Development projects already underway, such as the “Feed the Future India Africa Innovation Transfer Platform” where USAID partnered with a US NGO Technoserve to share and transfer innovative Indian soil and water management techniques known as Khadins and Taankas in Kenya and Malawi is a case in point.12 A reimagination of engagement in the current context calls for a granular examination of Beijing’s instruments and approaches, and a better understanding of its grassroots impact. 

Second, India-China relations are currently at an all-time low. The border standoff and loss of life from clashes, inherent lack of trust, a steep trade deficit, the BRI’s China-Pakistan Economic Corridor, have resulted in a decline in India-China relations, with many in the strategic community stating that it has reached the lowest point since the 1962 Sino-Indian War.13 While the implications of India-China competition if not rivalry—in the Indian Ocean region, South Asia, and the Asia-Pacific region—are being studied closely, it is crucial to examine this in Africa: a region where India has tremendous interests and where pursuing them is becoming increasingly complex.

A 2021 report titled India’s Path to Power, crafted by some of the New Delhi’s leading intellectuals, stated that India’s relations with developing countries “have atrophied” and a fraying of ties within the subcontinent is also reflected in India’s relationships with countries in Africa. The authors argue that:14

  • The great powers are facing internal stresses and challenges, having been diminished by the pandemic and the economic crash of 2020. China, which is perhaps an exception, has turned increasingly adversarial and is attempting to mould the multilateral system to its own purposes. We believe that a discombobulated world requires flexibility and broad coalitions, both to produce acceptable outcomes and to avoid conflict. This requires a new outreach by India to our traditional partners in the developing world. They are significant today as the locus of economic opportunities, as sources of support and commodities essential for India, and as necessary allies in reviving those parts of the multilateral system as would be useful in the decade ahead.

For New Delhi to craft “a new outreach” to its traditional partners, especially those in Africa, examining China’s active engagement and increasing footprint in the region will be key. The extent of this footprint can be analyzed by putting together the picture emerging from many growing African countries with significant Chinese presence. Ghana is an interesting case in point, and the focus of this study.

One of the fastest growing economies in West Africa, Ghana has shared deep historical, ideological, economic, and political relations with both Asian powers. The West African country also houses a significant Indian diaspora,15 and has become a popular destination for Chinese migrants,16 providing an interesting canvas to evaluate perceptions. 

To learn about the experiences of coexisting and competing with Chinese actors, the extent of backward and forward linkages, and to collect impressions of the growing Chinese community in the country, the methodology followed for this study included two steps: desktop research and key stakeholder interviews. From a list of twenty-three prominent Indian businesses in Ghana received from the High Commission of India in Accra, the researchers were able to interview representatives of twelve companies in Accra as well as in Tema in August 2022. Additionally, they conducted interviews with local Ghanian businesses, academics, tribal chiefs, and trade union representatives. 

In examining Chinese impact, the research team built on the analytical work of Xiaoyang Tang, a professor in the Department of International Relations at Tsinghua University, on Chinese investments in Ghana from 2000 to 2014,17 using data from the Ghana Investment Promotion Center (GIPC). The team asked GIPC for information on Chinese investments in Ghana from 2014 to 2021. Of the 261 Chinese companies listed in the data set, the researchers were able to establish contact with eighty-three, and thirty-three companies agreed to a telephonic interview. To fill the gap that this lack of in-person access presented, scholars who have been examining China in Africa and had recently interviewed small and medium-scale Chinese companies in Ghana were interviewed to learn from their findings. 

Multifaceted partnerships, intricate interests: China and India in Africa

A brief overview of China in Africa

China’s engagement with Africa is not of recent origin. Chinese contacts with Africa date back to the early Han dynasty, while it was sea ventures under the command of Admiral Zheng He during the Ming dynasty when relations peaked.18 In more recent history however—Ethiopia, Egypt, Liberia, and apartheid South Africa were among the few independent African countries —when the PRC was established in 1949.

Today, with a two-way trade of $254 billion and investments exceeding $2.07 billion in the first seven months of 2021 alone,19 China is the largest trading partner, biggest investor, and creditor for most African countries. Four Chinese lenders—The Export-Import Bank of China, China Development Bank, Industrial and Commercial Bank of China, and the China International Development Cooperation Agency—have participated in debt restructuring, leveraging multilateral institutions like the Group of Twenty’s Debt Service Suspension Initiative, the International Monetary Fund’s Catastrophe Containment Relief Trust, and the debt cancellation programs of the Forum on China-Africa Cooperation (FOCAC).20

The 2022 African Youth Survey conducted by the Ichikowitz Family Foundation across fifteen countries and based on 4,507 interviews found that: 

  • Of all the foreign actors seen to have an influence on the continent, youth see China as having by far the biggest impact, with more than half (54 percent) of African youth saying that China has a lot of influence on their country and almost a further quarter (23 percent) saying it has some influence. The United States is seen as the second most influential foreign power, with four-in-ten (41 percent) youth saying it has a lot of influence on their country and another quarter (26 percent) saying it has some influence.

Respondents who mentioned China’s positive influence pointed to the affordability of Chinese products (44 percent), assistance in developing infrastructure (41 percent), and its creation of employment opportunities (35 percent). Meanwhile, those who viewed it as a negative appear concerned about Chinese companies exporting resources without fair compensation (36 percent), Chinese workers taking job opportunities away from locals (24 percent), and a lack of respect for the country’s values and traditions (21 percent), among others.21

Similarly, Afrobarometer, a pan-African, nonpartisan survey research network, found that 63 percent of Africans surveyed in 2019-21 across thirty-four countries “hold positive views of China’s assistance and influence”—attributed largely to China’s projects in infrastructure, development, and investment in Africa. However, the survey also said that: 

  • Positive views of China’s influence do not appear to affect Africans’ attitudes toward democracy. China remains second to the United States as the preferred development model for Africans. And majorities of those who are aware of Chinese loans and development assistance to their countries are concerned about being heavily indebted to China.22

While China’s growing engagement with Africa is said to have had a positive, albeit uneven, effect on Africa’s economic growth, economic diversification, job creation, and connectivity,23 it also has received sufficient pushback—with allegations of unfair business practices, violation of local laws, and poor compliance with safety and environmental standards.24 The current discourse on China’s engagement in Africa has led to the creation of an entire subfield of study, with writers, journalists, and artists weighing in. 

A brief overview of India in Africa

Historically, it was proximity to African shores and the promise of fortunes to be made that enabled early migration from the Western coast of India to the Eastern coast of Africa. According to the historian Savita Nair, records of these movements of people can be found in travellers’ notes at the time of The Periplus of the Erythraean Sea, a first century CE account at a time when Indian traders had agents in areas of East Africa.25 Later,  while many Indians were brought to Africa by the British Government as indentured labourers, others referred to as ‘Passenger Indians’, traders, artisans, teachers and shop assistants, mainly from the western coast, came in search of opportunities.

Today, descendants and members of the Indian diaspora are deeply integrated in many African societies, raising families, running businesses, and often becoming citizens in the host country. Official estimates suggest there are over three million people, spread over forty-six African countries, with the largest concentration in South Africa, Mauritius, Kenya, Uganda, Tanzania, Malawi, and Mozambique.26 Given the many waves of migrants and entrepreneurs who have reached Africa, presently there are people of Indian origin who have varying degrees of familiarity with the motherland.

African nations are also crucial economic partners for India. Total trade with the region for 2020-21 was valued at $55 billion, and India is the fifth-largest investor in Africa, with cumulative investments of $54 billion. The acquisition of critical assets by Indian SOEs to diversify the energy basket away from West Asia, commercial ventures by Indian corporations looking to expand into untapped markets, and small and medium-scale Indian entrepreneurs operating across countries and sectors, the economic cooperation between these regions takes on multiple forms.

While state-level interactions are driven under the auspices of the India Africa Forum Summit (IAFS), there are also a plethora of development cooperation mechanisms that make Delhi a key developmental partner for many countries in the continent. Indian sub-national actors, including civil society and voluntary organizations are also setting up linkages across these geographies, scaling up innovative development solutions and sharing knowledge. From agriculture and health, to education, existing frameworks prioritize individual and institutional capacity building and are driven by priorities set by partner countries in Africa.

What makes this seemingly straightforward geopolitical development – of Asian powers reengaging Africa – complex to document is the fact that many different Indias exist in Africa: i.e., the third-generation, Indian-origin industrialist, the successful first-generation entrepreneur, the contractor of an Indian multinational corporation looking to win bids. They have all have felt the change in status quo brought on by the multitude of Chinas that are operating in these geographies: whether it is the contractor in a Chinese state-owned enterprise (SOE) that seems to have access to virtually unlimited funding, the small-scale manufacturer with an entire supply chain in China, or the artisanal miner working in the gold mines. The range of Indian actors, despite their differences, have all felt the impact and have something to say. Their perspective offers a unique vantage point to examine nuances of the phenomenon that is Global China.

Chasing opportunities: India and China in Ghana

The 1955 Asian-African Conference (also called the Bandung Conference), involving representatives from twenty-nine newly independent nations from the developing world during the Cold War, was a watershed moment that shaped both India’s and China’s early relations with countries on the continent. Their shared ideological fight against colonialism and imperialism strengthened the idea of Afro-Asian solidarity. The foundation of Ghana’s relations with both India and China were laid by the close friendship and political exchanges of Ghana’s first president, Kwame Nkrumah, with Indian Prime Minister Jawaharlal Nehru and Chinese Premier Zhou Enlai.

China-Ghana relations

Among the many diverse countries on the African continent, Ghana presents an interesting case study. It is one of the earliest countries in Africa to establish diplomatic ties with China, and it has been central to China’s Africa Policy. Taylor states: “The overthrow of Kwame Nkrumah of Ghana in 1966 was a major setback for Chinese policy in Africa, particularly since it happened when Nkrumah was in Beijing on an official visit. Almost immediately, the new Ghanaian military government ordered the expulsion of Chinese ‘experts.’ The military training camp headed by Chinese instructors was also closed, and its instructors expelled. On 20 October 1966, after Sino-Ghanaian relations had deteriorated further, diplomatic relations were suspended.”27

Today, China is Ghana’s biggest trading partner. Ghana’s imports from China between 1995 and 2020 have increased at an annual rate of 20 percent, $71.3 million to $6.75 billion (and the top import, at $232 million, was coated flat-rolled iron); its exports to China have increased at an annual rate of 26.5 percent, rising from $4.23 million to $1.52 billion (and the top export, at $1.24 billion, was crude petroleum).28 The humongous trade imbalance notwithstanding, the increasing economic incentives and opportunities for social mobility have made Ghana a destination for Chinese migration, housing between ten and thirty thousand Chinese today.29 However, these estimates vary, with the Chinese government placing the number at between thirty thousand and fifty thousand Chinese expats and diaspora in Ghana.30 Conversely, there has also been an uptick in the number of Ghanaian youth choosing to study in China, with over eight hundred students registering in doctoral programmes in China in 2018.31 The current president, Nana Akufo-Addo, stated that Ghana is aiming to replicate China’s development model with the industrialisation policy of ‘1-District-1-Factory’, during a FOCAC roundtable in 2018.32 

According to the latest data received from the Ghana Investment Promotion Center, 261 Chinese firms were registered in eight sectors of the Ghanaian economy. A majority of these firms are wholly owned by Chinese shareholders. The Chinese enterprises operating in Ghana that were interviewed for this study in August 2022 ranged from companies engaged in the production and export of cashew nuts, agrochemicals, roofing sheets, fiber-artificial hair, and security doors; recycling of plastic bottles; traders of electrical appliances; and those engaged in construction and agriculture. A few common threads from their responses include:

  • No previous experience in Africa: Several companies interviewed stated that Ghana was the first country in Africa where they had established businesses. Broadly, respondents said that they had two to ten years of experience in Ghana. Three companies had no experience operating in any other part of the continent. Though Ghana was their first foray into Africa, they declined to explain what brought them there. 
  • Job creation: It appears that most enterprises employ local staff. Though a crude oil refining company employed 1,600 workers and a company running a mall employed 1,000 people, the number of jobs generated by other companies ranged from four to one hundred. The breakdown of employees by nationality was not available. This notwithstanding, the majority of the Chinese firms claimed to have employed more local staff than Chinese workers.
  • Challenging business environment: Respondents described business as “currently very difficult.” This was attributed to a weak cedi/low dollar rate. Several representatives indicated their company was no longer in operation—either “shut down due to large electricity bills” or because they were “temporarily closed.”
  • Government as resource: While one enterprise mentioned receiving help from the government, most stated that they did not receive financial assistance from their government- but had its support if they faced any difficulty. 

A comparative analysis of GIPC data sets from 2000 to 2014 and from 2014 to 2021 presents some interesting trends:

  • Manufacturing sector leads FDI: Chinese firms injected $2.8 billion into the Ghanaian economy from 2014 to 2021. The manufacturing sector accounted for the largest number of companies (145) and contributed the highest foreign direct investment ($2.3 billion). The tourism industry had the least projects (two) and contributed the least FDI ($184,800).
  • Short-lived businesses: While 560 Chinese companies were registered with the GIPC from 2000 to 2014, 261 Chinese companies were registered under GIPC from 2014 to 2021. Of the 261 companies registered from 2014 to 2021, 251 were new entrants (96.17 percent). In essence, only 3.83 percent of the companies registered from 2000 to 2014 continued to exist over the 2014-2021 period. All the companies that remained, operated within their original sectors, and some of them had made slight alterations to their original company names. 
  • Decrease in joint ventures: Out of the 560 (30.2 percent) registered from 2000 to 2014, 169 were jointly owned by Ghanaian and Chinese partners, while only 38 out of the 261 (14.5 percent) companies registered from 2014 to 2021 were joint ventures.
  • Change in geographical distribution: From 2000 to 2014, Chinese companies operated in nine out of ten regions in Ghana, with the Upper West region recording zero registered Chinese companies. From 2014 to 2021, Chinese companies were operating in seven out of the ten regions (sixteen in 2018), with none operating in the Bono Ahafo, Upper East, and Upper West regions.

India-Ghana relations

India and Ghana, with their postcolonial legacies, have historically enjoyed good bilateral relations and were the founding members of the Non Aligned Movement. India opened its consulate in Accra in 1953 and full-fledged relations were established immediately after Ghana’s independence in 1957. The country also has a traditional Indian diaspora, with official estimates of ten thousand nonresident Indians and persons of Indian origin,33 and unofficial estimates suggesting close to twenty thousand persons. There have been frequent and regular ministerial exchanges: the Indian president, Pranab Mukherjee, visited Ghana in 2016, and President Afuko-Addo participated in the founding conference of the International Solar Alliance on March 11, 2018, in New Delhi. 

The two countries also are key developmental partners. Since the establishment of relations in the late 1950s until now, India has extended around $450 million for various projects like rural electrification, establishment of the Ghana-India Kofi Annan Centre of Excellence in Information and Communication Technology (ICT), construction of the presidential palace, agriculture mechanization, upgrades to the water supply systems, and establishment of a foreign services training institute.34 During the COVID-19 pandemic, India delivered 650,000 doses of vaccine under the COVAX initiative.35 In the education sector, Ghana is part of the pilot broadband technology project in tele-education and telemedicine (known by the acronym e-VBAB ), and six hundred Ghanian students enrolled in various Indian universities in 2021-22. The 2022 African Youth Survey (cited earlier in the report) stated that 68 percent of respondents viewed India as a positive influence.36

India is among the top trading partners of Ghana, with total trade in 2021-2022 amounting to $2.6 billion, with India exporting $1.1 billion to Ghana in 2020-21 and importing $1.49 billion, with gold accounting for almost 80 percent of all Indian imports, valued at $853 million.37 Ghana also exports cocoa, cashew nuts, and timber, and imports from India include pharmaceuticals, packaging material, rice, electrical equipment, transport vehicles, and agricultural machinery, among others. 

In terms of investments, India’s FDI accounted for 7.61 percent of the total FDI of 1.29 billion in Ghanain 2021. Between 1994 and 2021, Indian wholly-owned companies and Joint Ventures invested $2.2 billion in 870 projects and generated thousands of jobs.38 In 2021, India was the second largest investor by number of projects (25), after China and the third largest by value with FDI aggregating to $98.84 million.39 The major sectors receiving Indian investments were General Trading (170 projects, $149.72 million), Export Trading (126 projects, $49.73 million), Agriculture (45 projects, $377.04 million), Building and Construction (54 projects, $74.18 million). In terms of business activities, manufacturing accounted for the greatest most number of projects with an investment value of $1.1 billion with 275 projects.40 Other major business activities receiving Indian investment in Ghana are ICT and Internet infrastructure ($148.6 million), followed by extraction ($98.3 million), business services ($47.7 million), and technical support centers ($17 million).41

The forces that have drawn the Indian entrepreneur to various geographies in Africa are as diverse as the three million strong Indian diaspora in the region. However, a commonly shared sentiment among Chinese and Indian businesses appears to be belief in the African growth story. 

One respondent of Indian origin stated that his grandfather came to Ghana in 1937 believing “where there’s gold, there’s money” and started a trading business that has now diversified and is run by his descendants. Decades later, drawn to this promise of opportunity was Gopal Vasu, who after graduating from Indore Christian College in 1969, was excited to join his elder brother working in Lagos. Decades later, in 1989, Kingsway Chemist Ghana Ltd., a division of a company now known as Unilever (Ghana) Ltd., decided to halt its pharmaceutical production lines in Ghana and sell its production equipment to a pharmacist who worked for them. The pharmacist then joined forces with a local partner to start M&G Pharmaceuticals. In 1993, Gopal and his associates (under the Ghana Investment Promotion Centre Act) took over the company and started manufacturing four products. Today, they produce more than eighty generic drugs. This is indicative of the multigenerational Indian business families who have been operating and growing in Ghana, which stands in strong contrast to Chinese businesses, who are not only relatively new entrants to the market, but also wind down their operations comparably faster.

Similarly, in 1988 another interviewee said he was visiting his wife’s family in Accra and was excited about opportunities in the West African country. Two weeks into his holiday, he registered a company; in 1991, he set up his first retail store. Today, his group leads the formal retail space in the country, with fifty-six shops and four more planned.

Managers of Indian corporations share that optimism about the potential of African markets. According to Kaushic Khanna, chief manager of KEC International Limited, a $1.8 billion engineering, procurement, and construction (EPC) company headquartered in Mumbai, “the next ten to fifteen years belong to Africa. If Indian companies can work closely with the government of India in identifying and delivering projects in Africa, there are tremendous opportunities for growth.” One of the successful projects KEC executed in Ghana is the 330 kilovolt transmission line built from the Volta region substation in Tema to Tornu, near Dzodze. This roughly $9 million order was secured from the Volta River Authority and completed in twenty months.

Rajesh Nair, regional manager of Shapoorji Pallonji (SP) echoes this sentiment: The market is so big, with several infrastructure opportunities. “While the competition with Chinese firms is rife, there is no need to compete among (sic) Indian companies,” he says. “Ghana is a $72 billion economy, SP’s growth in the last five years, despite increasing Chinese footprint, has been positive.” He adds that SP’s familiarity in Africa, with operations in Ghana for more than sixteen years, helps highlight the fact that “Indian companies can also pull off large scale projects.”

The Tema-Mpakadan line is one of Ghana’s biggest railway projects and a case in point. It is being built by Afcons, a subsidiary of SP, and is funded by the Export-Import Bank of India (EXIM Bank). The 100-kilometer, standard-gauge railway line, costing $447 million, is part of a multimodal transportation network designed to connect Tema port to the country’s northern regions and landlocked countries like Burkina Faso, Mali, and Niger, and is expected to bring in huge revenues for Ghana.

Coexisting and competing with China in Ghana

Enterprising—but “they don’t contribute to the local economy”

Several Indian entrepreneurs attest to the fact that the work culture of Chinese actors is unique. According to one, “small time traders in groups of ten and twenty, live and work out of warehouses, do everything themselves—from loading the truck, driving it to the market, selling products—operating on absolutely minimum overheads.” Adds another Indian businessman: “They are incredibly enterprising. Most of them do not speak a word of English, but they establish businesses with a local translator. Pretty gutsy, if you ask me.”

A scholar who recently interviewed several Chinese miners working in the gold mines of Kumasi and Obuasi pointed out that for many, Ghana was the first point of arrival. While a few had prior experience in the gold sector in China, others hoped to improve their financial situation and social mobility. Some others had moved due to the competition within China. It’s difficult to say if they have short- or long-term aspirations, according to the scholar; their move is more opportunistic, pragmatic, and there is a lot of pressure to be successful. “You lose face if you don’t send back money.” While there was one respondent who had familial ties to the business, with a father who was a gold miner and a sister with a gold-trading store, most of the interviewees were middle-aged married men who send money earned in Africa back to China.

However, larger Chinese companies entering markets that Indian businesses have dominated are being met with sufficient resistance. An Indian entrepreneur complained that Chinese counterparts often underprice their products, making it difficult for them to compete. Similarly, small-scale traders who sell Chinese wares right outside stores owned by Indian-origin Ghanian traders are also a source of competition “Customers who come to us must walk through a crowd of hawkers, selling cheaper Chinese products, to get in.” While the local authorities routinely act against complaints, there are usually no long-term consequences. Chinese businesses also don’t contribute to the local economy, says another respondent: “The effort is not to develop the economy, but grab small shares.” 

The African agency and the “China option”

The president of Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, sees the Chinese presence in Ghana as quite worrying and calls for stricter oversight: “Ghana is a conduit for dumping goods manufactured in China.” In the imported goods market, he adds, locals have 15 percent, while the rest is dominated by expats, primarily the Chinese. “While some Indians could also be involved in problematic pursuits, they at least invest money in Ghana, buy houses, settle down, send their kids to school here, and get involved in the community, building health centers and schools.”

Isaac Odoom, an assistant professor of political science at Carleton College in Canada, argues that the Chinese are getting three things right in Africa that bear attention.42 First comes a courtship: “Ghanaians and the Africans seem to like Chinese economic courtship. They come to the table with the rhetoric of partnership and win-win for both parties, without necessarily the salvation discourse that comes from the West,” he says. Second, their unique focus has been on infrastructure development, meeting African deficits directly. Third, China is open to very innovative ways of financing projects that are critical to the long-term development of African countries in Ghana. “What these three factors essentially do is present a viable ‘China option,’ where engaging with Beijing offers African countries some leverage in its relations with other foreign actors,” Odoom says.

When asked if there is an African strategy for China, he says “in practice, the Chinese engagement across Africa has been very bilateral. It is very difficult to have all African countries converging in their political and economic objectives, even though they are all interested in reducing poverty and eradicating diseases. But because of [the] historical colonial nature of our countries, there is always a national interest as defined by the elite or history. Any talk of African strategy is bound to suffer these deficiencies or dysfunctions because of the nature of how China engages Africa and because of the makeup of African countries.”

Differences in corporate strategies

According to an Indian executive, “the question is not whether Indian and Chinese companies are competing in Africa. The fact is that the Indian and Chinese governments are vying for influence in the region, and they operate with different philosophies.” For one, information about Indian companies and details about specific projects are readily available; they show a degree of transparency that Chinese companies do not. 

An Indian businessman who gets spare parts manufactured by both Indian and Chinese companies also referred to the differences in corporate approaches between the two. “There is no need to micromanage the Indian producer—we drop our orders and move on. However, with the Chinese, we have to monitor very closely, every step of the way. Although we have worked with the same manufacturer for almost ten years, there is a serious lack of trust as they have the ability to quickly change the terms of engagement.” Another interviewee underlines the fact that not everything Chinese is bad: “Large Chinese companies in the industrial sector, like ceramics, add value to the landscape, but smaller companies tend to flout rules.”

There have been situations when both Chinese and Indian contractors have continued work in the face of nonpayment of bills, which have, in the long run, resulted in generating goodwill. However, this is feasible only for the larger corporations, as the smaller players in the industry would be hard hit. One of the major criticisms facing Indian companies is implementation delays. This was attributed to a combination of factors including bureaucratic bottlenecks, issues with land acquisition, and delayed decision-making. 

Advantage, China: Access to supply chains, finance, and government support

According to several Indian respondents, Chinese companies have demonstrated the ability “to buy companies along the entire supply chain.” In the pharmaceutical-manufacturing sector, this has meant purchasing companies that supply bulk drugs, intermediaries, and fill and finish operations. In infrastructure, it includes buying quarries that supply construction companies.

“We cannot compete with Chinese companies’ pricing or economies of scale. The costs for Indian companies are higher,” says an Indian manager. “Finance is king,” adds another, saying: “Whoever brings the funds gets the projects, and the Chinese are everywhere.” Moreover, he says, “people criticize the quality of Chinese projects, but what matters on the ground is who can execute, and the Chinese are often the fastest.” An Indian contractor explains, “some governments in Africa are closer to the Chinese government than others, and in these countries it’s near impossible to win projects. So, we are forced to explore other underexplored markets.”

According to them, one of the main advantages Chinese businesses enjoy in Ghana vis-à-vis their Indian counterparts is support from their government, which manifests in various forms. “When executives from Chinese companies go to visit [African] government clients, they are sometimes accompanied by someone from their embassy.” In some other instances, when a company runs into trouble or faces backlash, the issue is quickly “taken care of,” they say. “As an Indian business operating in Ghana for decades, I can tell you, they get away with so much,” says one Indian entrepreneur. The Indian government, respondents say, supports the Indian community, but not individual businesses. Indian contractors also pointed out that they are excessively scrutinized at airports, including their documents at ports and customs, in a way that the Chinese are not. “Why don’t they have tax officials regularly visiting their offices? Complaints to the Chinese embassy are quickly taken up at the governmental levels, affording them a degree of protection,” said one. 

Key takeaways

In this context, the following section provides some key recommendations for Indian stakeholders to deepen economic engagement in African markets. 

Need to urgently diversify from Chinese supply chains

Several Indian manufacturers operating in Ghana stated that more than 90 to 95 percent of their raw materials used to be sourced from China. However, the pandemic has forced them to reassess. Today, some procure material from new markets that include India, Brazil, Malaysia, Europe, the United States, and Dubai. A manufacturer that produces plastic injection molding has reduced imports from China and sources plastic pellets from India and countries in Europe instead, but many are still reliant on China for raw materials.

Opportunities in pharmaceutical manufacturing 

There is tremendous potential for Indian companies to enter the pharmaceutical manufacturing sector across African nations.43 This study has identified that an efficient way to do this would be to extend support to and encourage Indian-origin businesses already operating in Ghana. For example, Atlantic Life Sciences, owned by a person of Indian origin, has recently set up the first pharmaceutical manufacturing plant in West Africa. Funded by the Ghana Export-Import Bank, the Standard Chartered PLC, and Pharmanova Ltd., the plant was inaugurated by President Akufo-Addo in 2022 and has partnered with Bosch machines for vaccine manufacturing. According to the founder and CEO, Atlantic Life Sciences has been looking for partners to start the fill and finish business for anti-rabies treatments, tetanus, and snake-bite vaccines, with a capacity to produce 70,000 vials a day, but during the time of interview in August 2022, the company had only been approached by a Chinese firm. While this would be an opportunity for Indian companies to tap into the West African markets, it also presents India an opportunity to work alongside its partners in the Quad to prioritize vaccine manufacturing in Africa.44

Fast-tracking bureaucratic processes

An Indian company in the power-transmission sector stated that the firm’s technical acumen, familiarity of dealing with similar challenges in India, and success in finding localized solutions enable it to retain a competitive edge in Ghana. However, the Chinese have systems and institutions in place that allow seamless processes. “China realizes the power of tiny bureaucratic functions,” he says. The task of validating the authenticity of a report in a government-accredited lab in India, for instance, would take him much longer than his Chinese counterpart. It would be helpful if there was a channel through which Indian companies operating in competitive ecosystems abroad could fast-track select bureaucratic processes. 

Encouraging private-sector investors

There appears to be tremendous opportunities for businesses looking for joint ventures or providing services, especially in the technology sector. A leading Indian entrepreneur in the tech space tells us how his company has conducted business with Indian and US firms for years and has recently begun working with a Chinese service provider. Attributing this to quick decision-making and prompt delivery, he says “I didn’t want to do business with the Chinese, but the American companies weren’t delivering on time. They probably have bigger clients to cater to whereas the Chinese persistently followed up with us for business.” 

Creating innovative sources of funding

One of the challenges facing the Indian investor has been gaining access to funds. While nonconcessional funding in the form of a buyer’s credit provided by the Indian EXIM Bank directly pays contractors, the lines of credit it offers often take years to mature. “If an African government requests a power plant in 2015, for instance, the project is sometimes only realized in 2020,” explains an Indian contractor. Not only does the tendering process sometimes takes years to complete, but individual contractors who have identified and convinced potential clients, who then approach the Indian government, have to wait excessive amounts of time for a decision. This has meant that Indian companies that primarily worked on projects funded by the EXIM Bank have had to quickly diversify and find alternate, innovative modes of funding to grow their portfolio. 

Focusing on technology, knowledge, and skills transfer

For investments to be truly sustainable, creating assets that improve livelihoods and develop economies, it is vital to ensure that technology and knowledge are transferred seamlessly. While India already has in place several frameworks of cooperation that focus on building individual and institutional capacity, there is room to expand on this work, with sector-specific courses. While studies have shown that Chinese investors do transfer technology,45 cultural factors sometimes impede its efficiency. For instance, an academic who has worked closely with Chinese firms as an interpreter in Accra noted that, despite some Chinese firms’ policy for skills and knowledge transfer, some Chinese managers tend to work on highly technical aspects of a project after working hours, after the Ghanaians have left, which undermines the process of skill transfer.

Creating viable alternatives: Leveraging Indian contractors 

To compete with Chinese firms gaining traction in Africa in the long run, the government of India will need to support its large contractors with decades of experience operating in African markets. The Indian government can work with partners in Africa to identify strategic projects and support the major Indian infrastructure companies—with a track record of delivery and execution—to fulfil the mandates of the host governments. This will not only lead to several intangible benefits, but will work toward providing African governments with alternatives in their efforts to fill the continents’ massive infrastructure gap. 

Enforcing local laws strictly

GUTA President Obeng says that if the aim is to industrialize Ghana, then enforcement of local laws needs to be stronger. “When you give Chinese traders looking to enter Ghana approvals to trade, send them some questions: How many containers will you buy this year? What will be the value of the container? Do you have the money here? If yes, then lodge it with the Bank of Ghana. They can’t come here to drain the forex of Ghana” he says. “We need to reduce dependence on the Chinese—I’m scared, I’m afraid of how things are going now. It’s our own folly. You have to enforce rules, laws, security.”

Conclusion

The broad spectrum of Indian perspectives, ranging from a quasi “insider” to a familiar “outsider” and an outright foreigner to the Ghanian landscape, provides a unique lens to observe China’s growing role in the country in all its complexity. While there are similarities in the approach, drivers, and instruments of these Asian powers, Beijing’s overtures have been distinct. Examining the impact this has had on Ghanian stakeholders and documenting Indian experiences alongside, contributes to the discourse on how other powers engaged in the region can create viable alternatives for African decision makers.

It is, after all, a global marketplace with myriad options for those open to engagement and new approaches. Perhaps Odoom has said it best:46

  • What the pandemic has taught us is that we still live in a global society, a global village, but the norms that govern that global village are undergoing some disruption. The traditional gatekeepers have had control and dominance for a long time. What we are seeing is an emerging disruption of that structure. And China is a key part of that disruption, and China sees Africa as a companion in that enterprise. So, it will do everything to get African support, whether economically or politically. Engagement from China and India and other southern countries is going to rise. However, this rise does not automatically lead to benefit for the Africans. It boils down to how Africans engage their counterparts.

Lead researcher and writer 

  • Veda Vaidyanathan

Contributor, research 

  • Arhin Acheampong

Collaborating institutions

With sincere thanks to

  • Ashok K. Kantha, former director, ICS, New Delhi
  • Aubrey Hruby, nonresident senior fellow, Africa Center, Atlantic Council
  • Ewedanu Grace Selase Abla, research associate, ASCIR, Accra
  • James Hildebrand, former associate director, Global China Hub, Atlantic Council
  • Mark Kwaku Mensah Obeng, senior lecturer, Department of Sociology, University of Ghana
  • Pamela Carslake, director, ASCIR, Accra
  • S. Chinpau Ngaihte, first secretary, High Commission of India, Accra
  • Shruti Jargad, research assistant, ICS, New Delhi
  • Xiaoyang Tang, professor, Department of International Relations, Tsinghua University
  • Cate Hansberry, Publications Editor, Engagement, Atlantic Council
  • Nancy Messieh, Deputy Director, Digital Communications, Engagement, Atlantic Council
  • Andrea Ratiu, Digital Production Assistant, Engagement, Atlantic Council

Watch the event

Global China Hub

The Global China Hub researches and devises allied solutions to the global challenges posed by China’s rise, leveraging and amplifying the Atlantic Council’s work on China across its 15 other programs and centers.

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3    “Africa’s Infrastructure: Great Potential but Little Impact on Inclusive Growth,” in African Economic Outlook 2018, African Development Bank, 2018, Chapter 3, https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/2018AEO/African_Economic_Outlook_2018_-_EN_Chapter3.pdf.
4    “Data: Chinese Contracts in Africa (1998-2020),” China Africa Research Initiative (website), Johns Hopkins School of Advanced International Studies, http://www.sais-cari.org/data-chinese-contracts-in-africa.
5    Gyude Moore, “Africa Must Learn to Compete with Dominant Chinese Firms,” African Business, 2022, https://african.business/2022/03/trade-investment/africa-must-learn-to-compete-with-dominant-chinese-firms/; and “How Chinese Firms Have Dominated African Infrastructure, Economist, February 19, 2022, https://www.economist.com/middle-east-and-africa/how-chinese-firms-have-dominated-african-infrastructure/21807721.
6    Veda Vaidyanathan, China’s Infrastructure Development in Africa: An Examination of Projects in Tanzania and Kenya, Institute of Chinese Studies (ICS) Monograph no. 5, 2019, https://www.icsin.org/publications/chinas-infrastructure-development-in-africa-an-examination-of-projects-in-tanzania-and-kenya.
7    Veda Vaidyanathan, China-Zambia Economic Relations: Perspectives from the Agricultural Sector, ICS Monograph no. 6, 2021, https://www.icsin.org/uploads/2021/05/31/6d702e36d280d186f36c66638001270e.pdf.
8    Pippa Morgan, “Can China Help Build Africa’s Nascent Pharmaceutical Sector?,” China Global South Project, October 16, 2020, https://chinaglobalsouth.com/analysis/can-china-help-build-africas-nascent-pharmaceutical-sector/.
9    Ian Taylor, “Mao Zedong’s China and Africa,” Twentieth Century Communism, no. 15 (2018): 47–72.
10    “Fact Sheet: Quad Leaders’ Summit,” White House Briefing Room (website), September 24, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/09/24/fact-sheet-quad-leaders-summit/.
11    Hamish Sneyd, “Bringing Africa into the Indo-Pacific,” Perth USAsia Centre (website), April 2022, https://perthusasia.edu.au/our-work/bringing-africa-into-the-indo-pacific.
13    Vijay Gokhale. The Road from Galwan: The Future of India-China Relations, Carnegie Endowment for International Peace, Working Paper, 2021, https://carnegieendowment.org/files/Gokhale_Galwan.pdf.
14    Yamini Aiyar, Sunil Khilnani, Prakash Menon, Shivshankar Menon, Nitin Pai, Srinath Raghavan, Ajit Ranade, and Shyam Saran, India’s Path to Power: Strategy in a World Adrift, posted at the Centre for Policy Research and the Takshashila Institution, October 2021.
15    “About Us,” Indian Association of Ghana (website), accessed June 2022, http://iaghana.com/Home/GhanaDetails/About%20IAGhana.
16    Jinpu Wang, “What Drives Chinese Migrants to Ghana: It’s Not Just an Economic Decision, Conversation, 2022, https://theconversation.com/what-drives-chinese-migrants-to-ghana-its-not-just-an-economic-decision-177580.
17    Xiaoyang Tang, Chinese Investment in Ghana’s Manufacturing Sector, IFPRI Discussion Paper No. 1628, 2017, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2946203.
18    Gao Jinyuan, “China and Africa: The Development of Relations Over Many Centuries,” African Affairs 83, no. 331 (1984); and Chris Alden and Cristina Alves, “History & Identity in the Construction of China’s Africa Policy,” Review of African Political Economy 35, no. 115 (2008): 43–58.
19    “Chinese Investment in Africa Rises as Project Values and Bilateral Trade Decline,” International Institute for Sustainable Development (website), October 25, 2021, https://www.iisd.org/articles/chinese-investment-africa-bilateral-trade-decline#:~:text=News-,Chinese%20Investment%20in%20Africa%20Rises%20as%20Project%20Values%20and%20Bilateral,scrutinizing%20contracts%20with%20Chinese%20firms.
20    “Global Debt Relief Dashboard,” The China Africa Research Initiative (CARI) (website), October 2022, http://www.sais-cari.org/debt-relief.
21    African Youth Survey 2022, Ichikowitz Family Foundation, 2022, https://ichikowitzfoundation.com/wp-content/uploads/2022/06/AfricanYS_21_H_TXT_001g1.pdf.
22    Josephine Sanny and Edem Selormey, “AD489: Africans Welcome China’s Influence but Maintain Democratic Aspirations,” Afrobarometer, November 2021, https://www.afrobarometer.org/publication/ad489-africans-welcome-chinas-influence-maintain-democratic-aspirations/.
23    Folashade Soule and Edem E. Selormey, “How Popular Is China in Africa? New Survey Sheds Light on What Ordinary People Think,” Conversation, November 17, 2020, https://theconversation.com/how-popular-is-china-in-africa-new-survey-sheds-light-on-what-ordinary-people-think-149552.
24    Eleanor Albert, “China in Africa,” Backgrounder, Council of Foreign Relations, updated July 12, 2017, https://www.cfr.org/backgrounder/china-africa.
26    “Address by External Affairs Minister, Dr. S. Jaishankar, at the Launch of Book: India-Africa Relations: Changing Horizons,” Ministry of External Affairs, Government of India, May 17, 2022, https://mea.gov.in/Speeches-Statements.htm?dtl/35322/.
27    Taylor, “Mao Zedong’s China and Africa”, 53 and Ian Taylor. Review of Chau, Donovan C., Exploiting Africa: The Influence of Maoist China in Algeria, Ghana, and Tanzania . H-Asia, H-Net Reviews. April, 2015. URL: http://www.h-net.org/reviews/showrev.php?id=41770.
28    “China/Ghana,” Observatory of Economic Complexity (OEC) (data visualization platform), 2020 data and July 2022 trade trends, https://oec.world/en/profile/bilateral-country/chn/partner/gha#:~:text=Ghana%2DChina%20In%202020%2C%20Ghana,to%20%241.52B%20in%202020.
29    Joseph Teye and Jixia Lu, “China-Ghana Migration Corridor Brief,” Migration for Development and Equality (MIDEQ), Global Challenge Research Fund, and UK Research and Innovation, accessed August 2022, https://www.mideq.org/en/resources-index-page/china-ghana-migration-corridor-brief/.
30    Angeli Datt and Aurelia Ayisi, “Beijing’s Global Media Influence 2022: Country Report, Ghana,” Freedom House, https://freedomhouse.org/country/ghana/beijings-global-media-influence/2022#footnoteref10_sw3bso0.
31    Natasha Robinson and David Mills, “Why China Is Becoming a Top Choice for Ghanian PhD Students,” Quartz Africa, last updated July 2022, https://qz.com/africa/2102664/why-china-is-becoming-a-top-choice-for-ghanaian-phd-students/.
32    “Ghana aiming to Replicate China’s Success Story”, The Presidency Republic of Ghana, 04 September 2018, https://presidency.gov.gh/index.php/briefing-room/news-style-2/809-ghana-aiming-to-replicate-china-s-success-story-president-akufo-addo.
33    “Brief on India: Ghana Bilateral Relations,” Ministry of External Affairs (MEA), Government of India, December 2021, https://mea.gov.in/Portal/ForeignRelation/Brief_on_India_Ghana_Relations.pdf.
34    “Brief on India: Ghana Bilateral Relations,” MEA.
35    India-Africa Healthcare: Prospects and Opportunities, Export-Import Bank of India, Working Paper No. 102, March 2021, https://www.eximbankindia.in/Assets/Dynamic/PDF/Publication-Resources/ResearchPapers/OP/142file.pdf.
36    African Youth Survey 2022, Ichikowitz Family Foundation.
37    “Economic and Commercial Brief,” High Commission of India, Accra, Ghana and “India/Ghana,” OEC, 2020 data, https://oec.world/en/profile/bilateral-country/ind/partner/gha.
38    According to GIPC, Indian companies have invested $1.73 billion in more than seven hundred projects between 1994 and 2019. See “Economic and Commercial Brief,” High Commission of India, Accra, Ghana, accessed December 2022, https://www.hciaccra.gov.in/page/commerce/.
39    “Economic and Commercial Brief,” High Commission of India.
40    “Economic and Commercial Brief,” High Commission of India, Accra, Ghana.
41    Indian Investments in West Africa: Recent Trends and Prospects, Export-Import Bank of India, Working Paper No. 82, 2018, https://www.eximbankindia.in/Assets/Dynamic/PDF/Publication-Resources/ResearchPapers/103file.pdf.
42    Dr. Isaac Odoom (assistant professor of political science at Carleton College in Canada, who specializes in international relations and the politics of development in the Global South with a focus on Africa), in conversation with the authors via Zoom, August 2022.
43    Veda Vaidyanathan, “Indian Health Diplomacy in East Africa: Exploring the Potential in Pharmaceutical Manufacturing,” South African Journal of International Affairs 26, no. 1 (2019): 113–135.
44    Veda Vaidyanathan, “China Is Manufacturing Vaccines in Africa. The Quad Should Too,” Diplomat, October 5, 2021, https://thediplomat.com/2021/10/china-is-manufacturing-vaccines-in-africa-the-quad-should-too/.
45    Yoon Jung Park and Xiaoyang Tang, “Chinese FDI and Impacts on Technology Transfer, Linkages, and Learning in Africa: Evidence from the Field,” Journal of Chinese Economic and Business Studies 19, no. 4 (2021): 257–268.
46    Odoom, in conversation with the authors.

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Morocco’s World Cup victories are historical revenge for subaltern dreamers from the global south https://www.atlanticcouncil.org/blogs/menasource/moroccos-world-cup-victories-are-historical-revenge-for-subaltern-dreamers-from-the-global-south/ Wed, 14 Dec 2022 14:45:44 +0000 https://www.atlanticcouncil.org/?p=595173 The defeat-free journey of the Moroccan soccer national team, the Atlas Lions, is more than a simple sports score.

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“Look who we are, we are the dreamers. We make it happen, ‘cause we believe it,” sings South Korean boy band BTS’s Jung Kook in his official song for the 2022 FIFA World Cup with Qatari singer Fahad Al Kubaisi.

The single created by multi-Grammy award-winning Moroccan-Swedish producer RedOne embodies the spirit with which the Moroccan team—against all odds—kept knocking out top contenders like Portugal, Spain, and Belgium and advancing through the competition. Thus far, the defeat-free journey of the Moroccan soccer national team, the Atlas Lions, is more than a simple sports score. It is an upheaval in soccer culture—a symbolic capital for Africans, Arabs, and Muslims everywhere and a historical revenge of subaltern dreamers from the global south.

A change in the culture of soccer

Modern soccer was codified in nineteenth-century Britain and soon became a European favorite. The collective sport turned into a global sensation with the creation of the International Federation of Association Football (FIFA) and organization of the first World Cup in 1930 in Uruguay. Soccer remains a largely euro-centric sport today, supported by professional leagues, media, and capitals in the old continent with outliers in the Americas. Thus, soccer culture is linked to iconic players who built their careers in Spanish, British, Italian, and other European teams. It is also largely associated with ritualistic beer drinking, ultras chanting, and shots of beautiful white models featured on television screens.

The 2022 FIFA World Cup in Qatar—aside from its questionable human rights records and bribery allegations—has reconfigured the rites of the event and dictated new norms in synchronicity with its Arab and Islamic values despite western uproar and disapproval. Morocco, the North African dark horse-turned-favorite of the competition, also had a few lessons to convey.

Images of players prostrating to pray after each match, the celebration of family solidarity with players embracing their parents, and the waving of the Palestinian flag for every memorial picture are all acts of defiance of an essentially western-centric football culture and signals a more diverse and inclusive set of symbols that are epistemologically different from the usual World Cup glam. Likewise, the team’s fans have elected a new motto inspired by the religious teaching of the Arabic hashtag “trusting in God” (#ديروا_النية), which has been widely used on social media even by the newly appointed US ambassador to Morocco, Ambassador Puneet Talwar.

Shattering colonial complexes

The Moroccan team’s victories are hailed extensively by other global south countries, notably those who see the team’s resilience and combativity as a reflection of their own battle. Supporters across the African continent and the Arab and Muslim worlds spontaneously allied behind the Atlas Lions in defiance of their old Spanish, Portuguese, Belgian, French, and British colonizers. Metaphorically, each victory shattered old imperialist complexes that European coaches and teams are inherently superior. For Arab countries particularly, a new pan-Arab sentiment rose and erased decades of defeatist mentality.

For the host country, Morocco’s wins are, by extension, the continuation and channeling of the Qatari dreams in the competition—an avenue for all Arabs to keep dreaming. Qatari Emir Tamim bin Hamad Al Thani made sure to showcase his favorite team loud and clear by waving Morocco’s red flag with a green star during its December 10 match with Portugal. As a result of the Atlas Lions’ rise to the semi-final against France on December 14, millions of Arab youth and children are redefining their soccer idols after the surreal sight of Portugal’s Cristiano Ronaldo leaving the pitch crying and finding new heroes in more self-identifiable players like Hakim Ziyech, Achraf Hakimi, and Yassine Bounou. In other words, representation matters.

The tale of Moroccan players is also that of first- and second-generation migrants who had mixed experiences of integration in Europe, where many were born and raised. It points to a larger story of how Europe may have provided the investment that these athletes didn’t find “back home,” but ultimately failed to build a genuine connection to their countries of birth that have often been the source of discrimination and mistreatment to their North African immigrant communities. In the end, fourteen out of twenty-six players chose to represent the red and green colors of their forefathers for the World Cup.

As the world order starts shifting anew towards multipolarity, the Qatar World Cup and the consecutive symbolic triumphs of the Moroccan team can be seen as an illustration of shifting powers and hybrid world narratives. The shifts in the poles of power and crumbling of western hegemony that mostly one-sided western media might have obscured found an auspicious opportunity to unfold before the eyes of world viewers avidly following the competition and pondering the uneasy question: When did the world change so much?

Sarah Zaaimi is the deputy director for communications at Rafik Hariri Center and Middle East Programs. Follow her on Twitter @ZaaimiSarah.

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US-Africa Leaders Summit could make history—if leaders recalibrate trade relations https://www.atlanticcouncil.org/blogs/africasource/us-africa-leaders-summit-could-make-history-if-leaders-recalibrate-trade-relations/ Tue, 13 Dec 2022 15:22:47 +0000 https://www.atlanticcouncil.org/?p=594748 Africa has been squeezed into a limited role in global value chains. But leaders in Washington this week can rebalance the US-African trade relationship—and fulfill Africa's economic potential.

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This week, US President Joe Biden is hosting African leaders in Washington for the second US-Africa Leaders Summit. The first, organized in 2014 under the Obama administration, focused on trade, investment, and security as key pillars of US-Africa engagement. Achieving lasting peace and prosperity remains the overarching objective for Africa, which has operated below its potential for decades and has seen high-intensity conflicts that have drained resources, undermining investment, growth, and economic integration.

The summit comes at a challenging time, characterized by deteriorating security conditions on the continent—reminiscent of the Cold War era—exacerbated by rising geopolitical tensions and the urgency to ramp up the energy transition and combat climate change. There is a risk that the subordination of growth and development objectives to security priorities, which has dominated US engagement with Africa, will persist in today’s highly geopolitically driven world.

The United States’ continuous prioritization of security over development (otherwise known as the securitization of development) in its engagement with Africa could be counterproductive: It could easily undermine the net-zero transition as well as opportunities for maximizing the benefits of the African Continental Free Trade Area (AfCFTA), which policymakers hope will alleviate the concentration of global supply chains for greater resilience.

Moving up the value chain

The securitization of development has been costly for both Africa and the United States and has led to the weakening of US-Africa relations. This is especially evident in the trade arena, where the United States has been losing ground at lightning speed. For decades, it was Africa’s largest trading partner, accounting for as much as 26.5 percent of total African trade in 1980 according to data from the African Export-Import Bank (Afreximbank). That figure has fallen into the single digits, to around 6 percent of total African trade, with US investment on the continent having declined sharply as well.

Perhaps the most consequential factor behind the collapse of US-Africa trade has been the stickiness of the colonial development model based on resource extraction, under which Africa is relegated to participating in global value chains (GVCs) along forward rather than backward activities, predominantly as a provider of primary commodities and raw materials. Initially this model grossly inflated US-African trade—both on the export and import side of the trade balance sheet—with the United States importing crude oil from Africa and exporting refined petroleum products back to the continent.

In the modern era of global value chains, in which intermediate goods have become the leading drivers of world trade, falling US investment in Africa has blunted the expansion of US-African trade. Moreover, the predominance of natural resources in that trade has always presented a major risk. For example, as the twenty-first-century US shale boom put the country on a path toward energy independence—with advances in fracking technology lowering production costs and raising oil output—US petroleum imports declined dramatically; between 2014 and 2020, the United States cut its oil imports from Africa by around 40 percent, according to Afreximbank.

While many African countries are oil producers, they rely on imports for refined petroleum products. Under that highly carbon-intensive “round-tripping” model, Nigeria, Africa’s largest oil-producing country, for decades exported crude oil to the United States and imported refined petroleum products back to power its economy, at a huge cost in terms of macroeconomic stability, jobs, and environmental degradation.

Besides increasing the carbon footprint of the heavily polluting shipping industry, the costs of the round-tripping model are significant and go beyond dwindling trade numbers. There is a human element: People are being sickened by intense greenhouse gas emissions and wounded—or, in the worst cases, killed—in conflicts fueled by climate change and competition for scarce resources. Africa is on the frontlines of the global climate crisis, despite being the continent contributing the lowest total greenhouse gas emissions. Round-tripping has also exported jobs off of the continent, which is already contending with Great Depression-level unemployment rates, exacerbating poverty and adding to conflict-fueled migration flows.

At the macro level, the conditions created by round-tripping have long undermined the continent’s pursuit of economic stability, with sustained foreign-exchange leakages increasing the frequency of balance-of-payment crises. Africa’s position as an importer of refined petroleum products plays an outsized role in these crises, a vulnerability that leaders across the continent are looking to address. In Nigeria, for example, a new Dangote Group refinery and petrochemical plant that will come on stream early next year could, according to estimates from the Central Bank of Nigeria, save the country up to 40 percent of its foreign exchange earnings.

Ultimately, the securitization of development in US-Africa engagement has delivered neither security nor development. And the predominance of natural resources has underscored the economic and political risk to both parties, with the sharp decline of US-African trade weakening its relevance for Africa’s development in an increasingly competitive geopolitical world.

Next steps for the US and Africa

There are key questions to consider during what could be a history-making summit in Washington: Can the trend be reversed to boost US-African trade and correct the balance between security and development? And why should such a course of action be undertaken?

On the first question, increased manufacturing in Africa can help the continent diversify its exports beyond primary commodities and natural resources and integrate effectively into the global economy. In addition to its strong theoretical foundation for economic development, manufacturing has other positive spillovers including opportunities for economies of scale and productivity growth, technology transfers, integration into GVCs, and capital accumulation. Recent estimates show that this drives 20 percent of US capital investment and 60 percent of US exports.

Across the developing world, manufacturing has offered a path for low-income countries to increase their shares of global trade. One example is Vietnam, which over the course of the past decade has become one of the United States’ ten largest trading partners, leaping ahead of powerful nations such as France and Italy, according to the Africa Export and Import Bank. Vietnam has achieved this by successfully improving its connections to GVCs, including those around technology. More than 40 percent of Samsung cellphones are manufactured in Vietnam, enabling the country to reap the benefits of the frontier technology industries that are propelling global growth.

Most African countries, which possess the raw materials necessary to manufacture these and similar technology products, could achieve the same performance—if it weren’t for the colonial development model of resource extraction. For instance, the Democratic Republic of Congo, which some call “the Saudi Arabia of cobalt,” could potentially enter electric vehicle GVCs not solely as a resource provider but as provider of lithium batteries and other crucial, manufactured components.

In addition to boosting US-African trade, such involvement across GVCs would mitigate the continent’s vulnerability to adverse commodity terms of trade and improve living standards, as has been the case in Vietnam, where poverty rates have fallen sharply. Simply put, since greater backward participation in GVCs leads to higher gross exports, domestic value added, and employment, manufacturing reduces poverty—and its poverty-reducing effects are even more pronounced in low-income countries.

Turning to the second question, the benefits of increasing manufacturing output and diversifying exports in terms of growth and welfare are textbook trade theory. But there are also two additional benefits with significant geopolitical implications: The diversification of global supply chains for greater resilience and the reduction of the global carbon footprint.

The AfCFTA, which entered into force last year and is expected to catalyze competitive value chains across the continent, provides a new framework for US-Africa engagement. Beyond diversifying Africa’s sources of growth and turning the page on the costly round-tripping model, the agreement has the potential to cut carbon emissions significantly by facilitating the net-zero transition and promoting the diversification of global supply chains. The latter is especially important for building greater resilience in today’s geopolitically tilted world, where trade is increasingly treated as another weapon in superpowers’ arsenals.

There are other reasons for the United States and the world to prioritize Africa in the decentralization of global supply chains. The continent’s young population positions it as a growing consumer market, and shrinking the distance between production and consumption would further alleviate the global carbon footprint during the net-zero transitional period. Simultaneously, economies of scale associated with the AfCFTA will further boost productivity and returns on investments, especially as corporations take advantage of regional integration to spread the risk of investing in smaller markets and, in the process, strengthen investment and trade and lift African exports.

Transcending the colonial development model of resource extraction could position a reforming Africa as the next great frontier market for global investors chasing high yields and resilient supply chains amid today’s rising geopolitical tensions. Earlier this year, US Treasury Secretary Janet Yellen promoted “friend-shoring” to shift supply chains away from countries that present geopolitical and security risks to supply chains. It is up to the United States to change its ways and make new friends during its second US-Africa Leaders Summit.


Hippolyte Fofack is the chief economist at Afreximbank.

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Atlantic Council hosts ten African leaders at welcome dinner for US-Africa Leaders Summit https://www.atlanticcouncil.org/news/press-releases/atlantic-council-hosts-ten-african-leaders-at-welcome-dinner-for-us-africa-leaders-summit/ Tue, 13 Dec 2022 02:54:35 +0000 https://www.atlanticcouncil.org/?p=594718 WASHINGTON – DECEMBER 12, 2022 —The Atlantic Council hosted ten African heads of state and government, members of Congress and the administration, business leaders, diplomats, and high-profile civil society leaders at a dinner Monday evening to kick off the White House’s US-Africa Leaders Summit. “Our dinner welcomed some of the most influential figures in Africa […]

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WASHINGTON – DECEMBER 12, 2022 —The Atlantic Council hosted ten African heads of state and government, members of Congress and the administration, business leaders, diplomats, and high-profile civil society leaders at a dinner Monday evening to kick off the White House’s US-Africa Leaders Summit.

“Our dinner welcomed some of the most influential figures in Africa for important business-oriented conversations on the shared opportunities for African nations and the United States,” said Atlantic Council President and CEO Frederick Kempe. “I am grateful to the many heads of state, policymakers, and executives who joined us. Engagement between the US and our partners in Africa is vital to advancing democracy, security, and prosperity around the globe.”

The event included presidents and prime ministers from Senegal, Republic of the Congo, Tanzania, Côte d’Ivoire, Liberia, Somalia, Seychelles, Mauritius, Madagascar, and the African Union Commission.

“It was an honor to host dignitaries from across the African continent,” said Ambassador Rama Yade, senior director of the Atlantic Council’s Africa Center. “Africa is home to enormous vibrancy, creativity, entrepreneurship, and promise. In the week ahead, the Africa Center looks forward to highlighting these qualities on the world stage and to forging new opportunities—for both the people of Africa and the world.”

John F.W. Rogers, chairman of the Atlantic Council, gave welcoming remarks alongside Macky Sall, chair of the African Union and president of Senegal. The dinner featured keynote remarks from Katherine Tai, United States trade representative; Congressman Gregory Meeks, chairman of the United States House Foreign Affairs Committee; James Mwangi, managing director and CEO of Equity Group Holdings; and Olusegun Obasanjo, former president of Nigeria and African Union high representative for the Horn of Africa.

The evening also included performances highlighting the strong diaspora connection shared between Africa and the United States. Featured artists included renowned jazz trombonist and composer Delfeayo Marsalis; award-winning Congolese singer-songwriter Fally Ipupa; and actress and singer Morgan James. Poet Mahogany L. Browne recited a poem highlighting the restitution of African arts to the continent.

The Atlantic Council’s Africa Center promotes a dual-track approach toward strengthening security and bolstering economic growth and prosperity on the African continent. It recently expanded its areas of regional expertise with the addition of eight new fellows in September 2022. In addition to producing sharp analysis on US and European policies toward Africa, the Center convened the Africa Creative Industries Summit in Washington in October 2021 and the Sports Business Forum in Senegal in March 2022.

For more information please contact press@atlanticcouncil.org.

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Can the US and Africa usher in a new era for globalization? https://www.atlanticcouncil.org/blogs/new-atlanticist/can-the-us-and-africa-usher-in-a-new-era-for-globalization/ Mon, 05 Dec 2022 17:10:18 +0000 https://www.atlanticcouncil.org/?p=591462 US Trade Representative Katherine Tai discussed the future of US-Africa trade with the African Continental Free Trade Area’s secretary-general, Wamkele Mene, at an exclusive Atlantic Council event.

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As the United States looks to usher in a “new version” of globalization focused on resilience, inclusivity, and sustainability, it has eyes on its economic relationship with Africa, according to US Trade Representative Katherine Tai.

Tai spoke at an Atlantic Council Front Page event on Friday alongside the African Continental Free Trade Area’s (AfCFTA) secretary-general, Wamkele Mene. She explained that the current form of globalization has done a great job to expand the size of the economic pie, but it “hasn’t done a great job in terms of sharing the pie,” as big companies have gotten the biggest slices, at the expense of small and medium-sized companies. “We need to adjust and rebalance across the board,” she said.

Mene and Tai will attend the White House’s US-Africa Leaders Summit later this month, where African heads of state and government will discuss collaboration on climate change, security, and the economy—and will sign a memorandum of understanding about the US-Africa relationship. Mene said that the global backdrop—Russia’s war in Ukraine and the pandemic—shows how the world is “incredibly challenged to be more innovative about the tools that we deploy at times of crisis,” with perhaps “the most important tool” being an economic one, based in trade and investment.

Below are highlights from the event, moderated by Africa Center Senior Director Rama Yade, covering everything from the United States’ support for AfCFTA to ways trade policies can include youth, women, and the African diaspora.

Investing in partnership

  • Tai said the summit’s discussions on the economy will focus on “unlocking the potential of our relationship, but most importantly, the potential of our people.” Mene added that, at those discussions, he looks forward to using the summit to update both the US government and corporate America about the opportunities that AfCFTA brings.
  • With the economic fallout of Russia’s war and the global pandemic, Tai said the world is “in real need of innovation,” particularly in trade and making supply chains more resilient. “These challenges,” she noted, present the world with an opportunity to “figure out how we do the things that we have already been doing better” to tackle crises such as climate change.
  • When asked about whether the increased engagement of Chinese companies in Africa is impacting the United States’ strategy on the continent, Tai argued that there are “one million reasons” to focus on improving the US-Africa relationship. The United States’ partnership with Africa “is inherently valuable,” she added, so while China’s “aggressive game” across the world is a factor, she said it is “absolutely not” the driving force.
  • Tai encouraged the next US Congress, in which will convene in January, to “engage with Africa” on trade. She pointed to the progress of the African Growth and Opportunity Act (AGOA), first approved by Congress in 2000, which has provided sub-Saharan African countries with duty-free access to the US economic market based on a belief that “this access will stimulate development for our developing-country partners.” But with the legislation expiring in 2025, Tai pleaded for Congress to “think about what comes after AGOA” and how the policy might need to change in the next version of globalization.

A new trade narrative: Inclusivity and integration

  • Mene, in discussing how globalization has led to inequalities between Africa and some of its trading partners, added that there are also inequalities within AfCFTA. New trade agreements “must take account of the need to address inequality,” he said. Mene outlined several “concrete steps” to do so, such as how AfCFTA calls for phasing out tariffs on most goods by its fifteenth year, which will cut revenues drastically for some countries. Thus, AfCFTA includes an Adjustment Fund to help make up for the lost revenue.
  • Speaking about Africa’s regional economic communities—such as the Common Market for Eastern and Southern Africa or the Economic Community of West African States—Mene said that AfCFTA will aim to integrate these regions so that they can help increase the size of trade flows across the continent. “Our mandate is complementary to the mandates of the regional economic communities,” he said.
  • However, he cautioned that “economic integration cannot be achieved if we continue in our regional silos.” For example, AfCFTA has established Africa’s first set of rules of origin, although negotiations about certain sectors are continuing; before, they varied by region.
  • Mene explained that in Africa, small and medium-sized enterprises, many of which are owned by women, contribute a majority of the gross domestic product and provide hundreds of millions of jobs continent-wide. They in turn provide opportunities for young Africans, who are on the “cutting edge” of digital technology innovation. Thus, the AfCFTA secretariat is developing a Protocol on Women and Youth in Trade to “codify legally binding obligations… for the inclusivity of young people… and for the inclusivity of small and medium enterprises,” Mene said.
  • In thinking up innovative economic policies to harness the potential of Africans and also Americans, it’ll be important to include the United States and Africa’s shared stakeholders, said Tai. That includes the African diaspora in the United States, which she said will play a “hugely important part.”
  • With AfCFTA getting underway and the United States’ investment in its partnership with the continent, “we have a very unique opportunity to make sure that we change the narrative of trade and focus on inclusivity,” Mene said.

Katherine Walla is an assistant director of editorial at the Atlantic Council.

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The Africa investment imperative: Diversification and resilience amid economic downturns https://www.atlanticcouncil.org/blogs/africasource/the-africa-investment-imperative-diversification-and-resilience-amid-economic-downturns/ Fri, 02 Dec 2022 17:11:44 +0000 https://www.atlanticcouncil.org/?p=590228 At a time when investors are faced with high risks due to a global economic downturn, African markets are a viable investment opportunity.

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Over the past ten years, investors in developed markets have been struggling with low returns: Yields maxed out between 4 percent and 5 percent. Today over ten trillion dollars sit in negative yield bonds, and private equity funds sit on nearly one trillion dollars in dry powder. With the rapid slowdown in European and US economies and fear of recession looming large, the situation is worsening. The war in Ukraine has made blatant what the COVID-19 crisis had already revealed—the world’s economic dependency on critical sectors and markets.

In the same way, institutional capital has remained concentrated in developed markets. Investors have sought to optimize for near-term returns rather than sustainable returns through diversification. The situation has resulted in unprecedented levels of liquidity: Global assets under management (AUM) have grown by more than 40 percent since 2015 and are expected to grow from over $110 trillion today to $145 trillion by 2025.

Investors looking for returns need to look to new markets. Africa—the most demographically dynamic region of the world—has been making headlines for the massive investment potential it offers, and yet has been stubbornly ignored. The continent’s average growth over the past two decades has oscillated between 4.5 percent and 5 percent, with five countries averaging over 6 percent. While the recession induced by COVID-19 hit wealthy countries of the Organisation for Economic Co-operation and Development hard with a 5.5 percent contraction in 2020, African countries were more resilient, only shrinking by 2 percent.

Despite the compelling economic data, the African growth story has not resulted in the concomitant boost in investment from global players. Investment into the region is made by the same long-time investors, including development finance institutions. Meanwhile, mainstream institutional investors remain on the sidelines.

Surveys have long documented the difference in risk perception between investors with established operations on the continent and those that are considering opportunities from afar. Those already invested in the region see Africa as the most attractive investment destination, while those that don’t have operations in African markets view it as the second-least attractive region. For funds and firms that have yet to enter African markets, a stubborn dichotomous view of African risk—one that oscillates between seeing the continent through a lens of foreign aid and another that embraces the high risk/high return view—creates confusion and causes hesitation. Furthermore, the mainstream investment strategy used by investors in developed markets—one that is data dependent and push-oriented—is ill-suited to the opportunities in African markets.

From data dependence to trend analysis

Developed markets are data rich. In North American or European economies, investing is governed by subsector experts who focus on niche industries and specialized asset classes. The accelerating financial complexity and sophistication of highly public markets in developed countries progressively made specialists critical to finding opportunities and delivering returns. The internet economy of the 2000s and the growing importance of real-time data has accelerated the specialization. Now, large data sets and artificial intelligence-powered analysis have become quantitative assets to specialist investors.

This was not always the case. Prior to the 1980s, top-level generalists who deeply understood political economy dynamics were successful investors. In the post-war era, international investors navigated domestic social change, reconstruction, decolonization, and oil shocks to build the continent’s first private equity firms and iconic multinational companies. Over the same period, the emerging computer revolution transformed economics from the study of human behavior in an environment of scarcity to a series of equations and advanced mathematical modelling. Economics as a science grew up alongside Masters of Business Administration (MBA) programs, resulting in a disconnect between economic and geopolitical analysis and an elevation of data in business decision-making.

In contrast to developed economies, African markets are defined by a lack of real-time, reliable data and strong interaction between political and economic realities, thus developed market analytical approaches will fall short. Cutting and pasting the data-dependent, specialist model in African markets leaves managers unable to understand and mitigate the operational, on-the-ground market risks. Country risk assessments, developed by economists at international financial institutions, tend to position geopolitical risk as a matter of insurance instead of being central to investment decision-making in projects and deals with medium-to-long-term returns horizons.

Taking a more intersectional perspective bringing together economic and geopolitical analysis requires an understanding of the trends currently reshaping the continent.

Most investors still operate on dated perceptions of African markets driven by oft-repeated factoids and the news cycle, failing to recognize the mutually reinforcing trends that have over the past twenty years restructured many African economies and enhanced their resilience. Coups grab headlines but day-to-day political stability makes for boring news. Despite the recent coups in Mali and Burkina Faso, the map of Africa is no longer a swath of autocratic regimes as it was in the 1980s but rather a mosaic with standout democracies such as Ghana and Senegal, which have—for the most part—been fortifying their institutions.

Regional powers such as Kenya and Nigeria, despite setbacks, have been on a trajectory of democratic progress. After the 2007 post-election violence in Kenya, the country reformed its electoral process and promulgated a new constitution in 2010 which devolved power. In Nigeria, the 2015 elections marked a turning point: the first time since the return of civilian rule in 1999 that an opposition party, the All Progressives Congress, won against the People’s Democratic Party that had ruled until then. In the 1990s, the Economist Intelligence Unit (EIU) only identified three democratic countries in Africa. In 2020, the EIU ranked twenty African countries as hybrid or higher on a democratic scale, despite democratic backsliding globally (including in the United States).

Accompanying the increasing political stabilization, economic diversification has also shored up African economic resilience. The continent’s sustained growth cannot only be attributed to high commodity prices but also is the result of a progressive shift away from raw material export models toward services and middle-class-based consumption.

The “oil curse” that colors the conversation of African economic growth is proving to be less powerful even in major oil exporters such as Nigeria. The oil price collapses of 2008 and 2014-16 revealed a previously unrecognized level of resilience on the continent. When oil hit a low of twenty-six dollars a barrel in 2016, regional gross domestic product fell to 2.2 percent from 3.4 percent the previous year, but the continent did not become mired in stagnation as it did in the “lost decades” of the 1980s and 1990s. Instead, growth recovered in 2017, revealing structural improvements (particularly in Nigeria).

Diversification has been supported by increased investments made in infrastructure, deepening regional integration culminating in the creation of the African Continental Free Trade Area in 2019, and greater amounts of disposable income that have supported domestic markets for consumption. African countries have had greater choice in international partners. Over the past two decades, China has become Africa’s most significant trading partner and the largest financier of infrastructure in the region to the tune of twenty-three billion dollars between 2007 and 2020. Over seven billion dollars of that financing went to telecom infrastructure. Increasing mobile penetration and digitization accelerated by COVID-19 are undergirding an exponential growth in venture capital into African markets. In 2016, total venture capital flowing into the region was just above $350 million. Five years later, it crested four billion dollars, with the lion’s share going to Nigeria, Egypt, South Africa, and Kenya, and with over 60 percent of the capital coming from US-tied entities.

The interaction of political stabilization, better macroeconomic management, technological change, and young demographics will support the continent in returning to growth after the COVID-19 crisis. Just like in the case of the 2016 oil shock, African growth bounced back to 3.7 percent in 2021, showing unanticipated resilience after the continent’s economy contracted by 1.7 in 2020. By analyzing the trends and accepting that rapid growth is neither linear nor smooth, investors can find success in African markets.

Pull over push strategies

Understanding transformative macro trends is sine qua non, but not enough to guarantee successful ventures. It is also critical to employ a pull strategy rather than a push approach. The latter focuses on creating new consumer needs and desires and then pushing relevant products into the market. The former instead rests on identifying unserved market needs and then creating products to meet that latent demand. Push strategies work well in consumption-based economies supported by efficient capital markets such as the United States or Europe in which affluent consumers can be convinced that their want of the newest mobile phone is actually a need. African markets are best-suited for pull strategies.

Most large European and US investors have a self-referential bias whereby they consider African opportunities through the lens of their own market operating environments. Many of them are looking to simply add a high-risk premium to compensate for investing in African markets on top of their familiar underlying asset structures. Some seek short-term, liquid, and safe assets such as treasury bonds while others pursue high internal rates of return (IRRs) in a seven-year fund lifecycle. Some are looking for real assets with developed secondary markets to ensure liquidity, while others want to deploy billions of dollars through thematic strategies such as infrastructure or climate.

Each “push” strategy will be exposed to difficulties that can create Goldilocks-type scenarios: not enough market depth, too few “bankable” projects, too much volatility, not enough liquidity, too much risk, inadequate profitability, and other such conditions. The list of reasons not to invest therefore becomes overwhelming and results in the accumulation of dry powder.

Fundamentally, African market realities are different—liquidity more often than not comes with volatility due to systemic local currency risk on the continent. The days of making 20 percent IRR in relatively safe private equity (PE) environments are also long gone: The first and second vintage in the early 2000s of African PE funds invested in banks, telecoms, and other low-hanging fruit, leaving only difficult operational, consumer-facing firms for today’s investors to build. Reports from both the International Finance Corporation and the African Private Equity and Venture Capital Association—better known as AVCA—show returns of less than 10 percent in African PE due to currency fluctuations. High returns can be found in the African early-stage venture space, but those opportunities are often too small for institutional investors.

To gain access to the tremendous opportunities that African markets offer at scale, emerging market investing must be built on pull strategies based on intersectional approaches, incorporating an understanding of existing demand and working to find overlaps between the realities of African markets and the requirements of investors. For example, the billions flowing into climate and environmental, social, and corporate governance (ESG) funds can deliver good returns, strong developmental impact, and advancement of United Nations sustainable development goals if investors think beyond immediate climate resilience within today’s economic context and recognize that African countries have a dual imperative–stimulating rapid green growth and alleviating poverty.

On a continent where six hundred million people lack reliable access to electricity, additional generation capacity is a critical priority on which the green or digital revolutions depend. While climate investors rightfully eschew investments in coal, natural gas generation opportunities may prove a good opportunity as they can create the base power necessary for broad-based solar. Likewise, attractive carbon reduction opportunities can be found in agribusiness, so having the flexibility to invest outside the energy sector increases the potential for success.

A flexible and intersectional approach can also help asset managers wanting to deploy billions of dollars in the short term. By recognizing that market absorption capacities will limit their deployment, they can invest smaller amounts in the nascent private debt industry, which will grow rapidly in the next three to five years given the continuously growing financing gap in African markets.

If large asset managers want the diversification and returns that these markets can offer, they must accept the intrinsic trade-offs found in emerging markets. If liquidity is the priority, an investor can buy bonds in Cairo, Lagos, or Johannesburg but must accept the concomitant volatility and depreciation risk resulting from the underlying assets being valued in local currencies.

If predictability and stability are desired, then an investor must prepare for illiquidity. While investing in illiquid assets in the real economy offers opportunities ranging from infrastructure to agribusiness to renewable energy, exits are difficult to time. The classic high risk, high return investment profile does exist but is now concentrated in the emerging tech and creative industries.

With recession looming on the horizon in the United States and Europe, investors who want to participate in the next wave of growth and create wealth from—and in—fast-growing emerging and frontier markets in Africa and beyond need to adjust their approaches to invest along transformational trends, navigate political economy concerns, and tap latent demand.

Twenty years ago, the Economist dubbed Africa “the Hopeless Continent.” Today, the associated risks with investing in Africa are very different. Risk perception must be updated to reflect the increasing resilience, digitization, and integration that now are taking hold in African markets. Investors will succeed if they work to understand market realities instead of coming with pre-defined investment strategies, if they find the overlap between their internal requirements and market needs, and if they embrace flexibility and intersectional approaches. The geopolitical and economic dynamics of this post-COVID-19 world make looking at African markets not a niche option but rather a mainstream necessity.


Guillaume Arditti is founder of Belvedere Africa Partners and a lecturer in international relations at the Political Sciences Institute of Paris (Sciences Po).

Aubrey Hruby is a co-founder of Tofino Capital, a senior fellow at the Atlantic Council’s Africa Center, and an adjunct professor at Georgetown University.

An abbreviated version of this article also appears on LSE Business Review.

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AC Selects: China’s authoritarianism, Ukraine’s energy infrastructure & COP27 https://www.atlanticcouncil.org/content-series/ac-selects/ac-selects-chinas-authoritarianism-ukraines-energy-infrastructure-cop27/ Mon, 28 Nov 2022 21:21:00 +0000 https://www.atlanticcouncil.org/?p=590436 Related events

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The Global China Hub researches and devises allied solutions to the global challenges posed by China’s rise, leveraging and amplifying the Atlantic Council’s work on China across its 15 other programs and centers.

The Eurasia Center’s mission is to enhance transatlantic cooperation in promoting stability, democratic values and prosperity in Eurasia, from Eastern Europe and Turkey in the West to the Caucasus, Russia and Central Asia in the East.

The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.

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The Sudanese Bar Association drafted a transitional constitution. How can it be improved? https://www.atlanticcouncil.org/blogs/menasource/the-sudanese-bar-association-drafted-a-transitional-constitution-how-can-it-be-improved/ Tue, 22 Nov 2022 18:03:33 +0000 https://www.atlanticcouncil.org/?p=588580 The initiative demonstrates the importance of professional institutions and trade unions in bringing political organizations together and restoring the democratic transformation process. However, there are key issues that require further discussion and inclusion in the draft constitution.

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Following the recent declaration on July 4 by the Sudanese military leadership that it would accept the establishment of a civilian government and fully withdraw from politics pending a civilian consensus, the Sudanese Bar Association (SBA) prepared a draft transitional constitution that Sudan’s pro-democracy forces could unite around.

The initiative has been applauded by domestic groups, stakeholders, and the international community. It demonstrates the importance of professional institutions and trade unions in bringing political organizations together and restoring the democratic transformation process. The draft constitution provides that the new transitional government be entirely civilian, thereby avoiding one of the mistakes of the 2019 Constitutional Charter, which established a civilian-military partnership. However, there are key issues that require further discussion and inclusion in the draft constitution.

The transitional constitution, by definition, is intended to govern the transitional period, during which the government should embark on a proper comprehensive, inclusive, transparent, and participatory constitution-making process to construct a permanent and democratic constitution. The current SBA constitution-production process does not, in any event, substitute the proper democratic constitution-making process that the transitional government should organize.

The most important point that the constitution drafters and reviewers should consider is that any re-established transitional period should not be a conventional transitional period. Rather, it is a foundational transitional period that should address as many fundamental problems of Sudan as possible. Historically speaking, during transitional periods, caretaker governments have only been empowered to organize elections and run the country in the interim, before handing power over to the party or parties that won the elections. Similarly, the discussion of the fundamental problems of the Sudanese state, such as the relationship between state and religion, language policies, and the constitutional relationship between the central government and the peripheries, has been pushed back to the post-transitional period.

However, experiences of other African nations—such as Ethiopia and South Africa—demonstrate that addressing these issues during the transition contributes to laying the foundations for democracy, peace, and stability. Learning from their experiences, conventional Sudanese political organizations, which tend to be politically conservative, should, therefore, not be allowed to make Sudan’s next transitional period another failure in the political and constitutional history of the country.

What a draft constitution must entail

Another equally important point is the need for the draft constitution to reasonably address and rectify the shortcomings of the previous transitional period, which had partially resulted from the deficiencies of the 2019 Constitutional Charter. A clear example was the charter’s silence on the powers of the state or regional governments and their relationship with the central government; this proved to be extremely problematic, as neither level had clear limitations on the powers they exercised, creating confusion and tensions between them.

It seems that the SBA draft constitution has not learned from the 2019 charter in this regard, as it also fails to mention this significant distribution of powers. This exclusion is particularly perplexing given that the SBA explicitly establishes a federal state in which the exclusive and concurrent powers of the federal and state or regional units should be expressly set out.

The draft constitution should contain a detailed article on citizenship, which is the indispensable foundation of any modern democratic state. For a nation that has been destabilized and embroiled in civil wars because of ethnic and religious dichotomies, enshrining universal citizenship principles and rules in the transitional constitution would be a necessary indication that the ethnic, religious, cultural, and regional policies that have fragmented the Sudanese nation and caused the deterioration of the state have no place in Sudan.

Relatedly, the article on the nature of the state should provide for establishing an impartial state that does not adopt a religious, ethnic, cultural, or regional identity. The drafters and reviewers of the new transitional constitution should consider the historical demands of the Sudan People’s Liberation Movement, led by Abdulaziz Alhilu, calling for the separation of state and religion. In this regard, the progress made during the transitional period, namely, the signing of a declaration of principles that separated the state from religion, should be reflected in and reaffirmed by the draft constitution.

Finally, the draft constitution should not overlook the linguistic diversity of the country—both ensuring that ethnic groups have the right to use their vernacular languages and dedicating a separate foundational article that conspicuously recognizes the right of state and regional governments to adopt a vernacular language as a working or official language. It should recognize the right of any state or region to adopt such a language as the language of instruction in its local schools.

In this regard, Sudan should learn from the Malaysian experiment, where the use of vernacular languages is constitutionally recognized, while at the same time promoting English and Malay as linguae francas and mediums of instruction in higher education institutions. To support these efforts, the draft constitution should establish a board, similar to that established by the South Africa Constitution, to ensure the continuous promotion of the use of vernacular languages as well as its development.

Technocratic government

The experience of the second government (February 2021-October 2021) during the previous transitional period (August 2019-October 2021) indicated that the participation of political parties in the government would spark unnecessary, paralyzing political differences and conflicts. It is, therefore, important that the draft constitution unequivocally provide that the transitional government be technocratic. That is the only way to avoid the repetition of the political differences and conflicts that the transitional governments witnessed in the months that preceded the October 25, 2021 coup, which would have probably been impossible had those differences and conflicts not existed.

The SBA draft constitution provides that political forces sign the political declaration, according to which the draft constitution shall be adopted, and nominate individuals for the senior positions of prime minister, Sovereignty Council member, and cabinet roles, among others. The draft constitution, surprisingly, goes as far as enabling those forces to nominate and appoint the members of the independent commissions, chief justice, president, members of the Constitutional Court, and judges of the Supreme Court.

Vesting the power to nominate the prime minister and members of the Sovereignty Council in the political forces that sign the political declaration will, undoubtedly, ignite deep and irreconcilable political differences that might make the establishment of the transitional government impossible. Furthermore, the nomination of the members of the independent commissions, the chief justice, the president and members of the Constitutional Court, and the judges of the Supreme Court is obviously incompatible with the principles of democracy, as well as the independence of these institutions and positions.

To avoid political differences or impossibility of agreement between the Central Committee of the Forces for Freedom and Change and other political groups, and to ensure the independence of the institutions that should be independent in a democratic and open society, the draft constitution should consider creating independent and impartial mechanisms, such as a committee or council of wise persons, that will have the power to select the prime minister and nominate individuals for the other high constitutional positions. 

More significantly, providing for a federal system without constitutionally enshrining the detailed exclusive and concurrent powers of each level or unit of the federal union undermines the very idea of federalism. It is, therefore, extremely important that the draft constitution contain three comprehensive lists of exclusive and concurrent powers of the federal and regional or state governments: one for the federal government (exclusive federal powers); a second for the state or regional governments (exclusive state or regional powers); and a third for both levels of government (concurrent powers).

Finally, the Bill of Rights of the draft transitional constitution, which is, in fact, taken almost verbatim from the 2005 Interim Constitution and the 2019 Constitutional Charter, should be more elaborate and comprehensive, explicitly providing for the procedures and principles that ensure the actual protection of human rights and fundamental freedoms by state institutions, especially the Constitutional Court and Supreme Court. It should also empower lower courts across the country to admit and decide human rights cases in some specific situations, as is the case in the United States.

In this regard, an alternative comprehensive and detailed new bill of rights, ideally based on and adapted from the 2010 Kenyan Constitution Bill of Rights, should seriously be considered by the Sudanese Bar Association or the reviewers of its draft constitution. The Kenyan Constitution’s Bill of Rights is one of the most comprehensive and elaborate bills of rights on the African continent.

In essence, the initiative undertaken by the Sudanese Bar Association and its production of a draft constitution has created robust political momentum. Additionally, it has created real possibility for uniting pro-democracy forces at a critical point in history—something that would put the pro-democracy civilian camp in a strong position to establish an entirely civilian government.

For this draft constitution to be a solid foundation for a new democratic transformation process, its provisions should be based on an important assumption that the transitional period is a foundational period and not merely conventional transitional period, where a caretaker government runs the state and organizes elections within a year or so. The resolution of some of Sudan’s historical problems—such as the relationship between state and religion, addressing its diversity management issues, and rectifying the deficiencies and shortcomings of the previous transitional period and those of the 2019 Constitutional Charter—should be genuinely considered as much as possible by the SBA draft constitution. 

Nasredeen Abdulbari is a nonresident senior fellow with the Atlantic Council’s Middle East Programs. He is Sudan’s former justice minister.

Mutasim Ali is a legal advisor at the Raoul Wellenberg Center for Human Rights, based in Washington, DC.

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Conflict management models in the MENA region https://www.atlanticcouncil.org/in-depth-research-reports/report/conflict-management-models-in-the-mena-region/ Fri, 18 Nov 2022 15:19:41 +0000 https://www.atlanticcouncil.org/?p=586250 The Atlantic Council North Africa Program and the Institute for International Political Studies is pleased to publish its latest dossier focusing on a selected number of conflict-case studies (Libya, Yemen, Mali and Russia).

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The region encompassing the Middle East, North Africa, and the Sahel is studded with complex and multi-layered conflicts in which local and international dynamics are closely intertwined. While this may sound like a simple truth, it has important implications for conflict management. Across the region, few wars are strictly intra-state conflicts or are internally resolvable. In most cases, like Libya, Mali, and Yemen, local and regional players, foreign actors, and international organizations have become co-conspirators in these crises’ destinies, argues the newly released report, Conflict Management Models in the MENA Region, authored by Karim Mezran, Chiara Lovotti, Alissa Pavia, Gerald M. Feierstein, Stefano Marcuzzi, and Petr Tůma. These actors often have divergent agendas and are guided by other priorities, pursuing different, sometimes opposing, normative models and pathways to peace.

Countries of the region have witnessed countless attempts to deal with, manage, and resolve conflicts by various actors that have registered mixed fortunes. In Mali, for example, the West had sought a long-term military engagement to mitigate the country’s crisis, whereby European intervention in the Sahel became the laboratory for a joint EU military culture before Russia contributed to the erosion of this exercise, explains the report.

On the other hand, the West’s NATO-led campaign in Libya in 2011 was short-lived and without long-term prospects for peacebuilding, leaving the country fragmented and its institutions in shambles. Other countries, like Russia, have prioritized hardline approaches to conflict management to safeguard domestic priorities. Russian interventionism in the MENA and broader Sahel has witnessed significant military deployments. Yemen is a unique case in point, with bottom-up approaches taking center stage. Civil society actors have recently taken essential steps to mediate the conflict, from negotiating local cease-fire agreements to prisoner exchanges.

Karim Mezran is director of the North Africa Program and resident senior fellow with the Rafik Hariri Center and Middle East Programs at the Atlantic Council focusing on the processes of change in North Africa.

Chiara Lovotti is an ISPI Research Fellow and Scientific Coordinator of “Rome MED-Mediterranean Dialogues”, ISPI’s and the Italian MoFA’s annual flagship event. 

Report

Nov 18, 2022

Conflict management in the MENA: Different approaches for different actors

By Chiara Lovotti and Alissa Pavia

The region encompassing the Middle East, North Africa, and the Sahel is studded with complex and multi-layered conflicts in which local and international dynamics interact.

Conflict Middle East

Report

Nov 18, 2022

The EU, NATO and the Libya crisis: Scaling ambitions down?

By Stefano Marcuzzi

In March 2011, a coalition of countries under the United Nations (UN) umbrella led militarily by NATO launched an air campaign in support of a series of revolts against the regime of Muammar al-Qaddafi in Libya, ostensibly to stop Qaddafi’s reprisals on civilians.

Libya Middle East

Report

Nov 18, 2022

Reviving diplomacy: A new strategy for the Yemen conflict?

By Gerald M. Feierstein

The fundamental challenge in achieving a sustainable resolution of the current conflict in Yemen is that the issues at stake are fundamental to Yemen’s identity and history.

Middle East Politics & Diplomacy

Report

Nov 18, 2022

Mali: West out, Russia in, and then?

By Petr Tůma

Unlike with violent upheavals and wars that have recently shaken the broader Middle East and North African region, in Mali, the West—specifically Europe led by France—decided to mitigate the crisis through a long-term military engagement, though not as extensive as in Afghanistan or Iraq.

North & West Africa Russia

Report

Nov 18, 2022

“Conflict management” à-la-Russe in the Middle East and Africa

By Chiara Lovotti

Over the past 10 years, much has been said about Russia’s interventions in conflicts in the wide region stretching from the Middle East to central Africa, encompassing North Africa and the Sahel.

Middle East Russia

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Mali: West out, Russia in, and then? https://www.atlanticcouncil.org/in-depth-research-reports/report/mali-west-out-russia-in-and-then/ Fri, 18 Nov 2022 15:19:07 +0000 https://www.atlanticcouncil.org/?p=586646 Unlike with violent upheavals and wars that have recently shaken the broader Middle East and North African region, in Mali, the West—specifically Europe led by France—decided to mitigate the crisis through a long-term military engagement, though not as extensive as in Afghanistan or Iraq.

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Unlike with violent upheavals and wars that have recently shaken the broader Middle East and North African region, in Mali, the West—specifically Europe led by France—decided to mitigate the crisis through a long-term military engagement, though not as extensive as in Afghanistan or Iraq. European intervention in the Sahel became sort of the laboratory for a joint EU military culture before Russians contributed to the erosion of this exercise. Understanding its highs and lows is crucial not only for the ongoing discussion regarding Europe’s future posture in the region but equally for the prospective European efforts to get ready and, if needed, to secure its broader neighborhood without a US backbone.

In 2012, northern Mali was hit by the rebellion of Tuareg separatists, once again seeking the independence of the Azawad, areas inhabited by this Berber-speaking seminomadic people. The National Movement for the Liberation of Azawad (MNLA)—better prepared than in the past with an infusion of arms and personnel flowing from destabilized Libya—quickly seized northern parts of the country. However, the rebellion was soon taken over by Islamists, whose aim wasn’t independence but rather sharia law extending throughout Mali.

As Islamist insurgents were quickly advancing toward central Mali, a military coup in Bamako further weakened the government’s ability to respond. France—upon Mali’s request—decided to intervene. Its counterterrorism operation Serval, building on the successes of earlier French intervention in neighboring Mauretania, managed to stop insurgents’ advance within a few first months of 2013.

In 2014, Serval was transformed into Barkhane operation with a much broader territorial scope, covering the whole Sahel region and headquartered in N’Djamena (Chad). French ambitions went beyond Serval not only territorially, but also in terms of goals and partnership. The counterterrorism focus was progressively paired with state-building elements. At the same time, European countries were gradually stepping in alongside France. There was a “joining” momentum, especially with the 2020 establishment of the counterterrorism Takuba task force, a platform for European special forces to advise and accompany Malians on the battlefield. Europeans also were present in greater numbers within the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) and the EU Training Mission.

European momentum in Mali

At the same time, there was growing awareness that there won’t be a sustainable solution without local ownership. Sahel countries, supported by the international community, created the G5 Sahel Joint Force, involving Mauritania, Mali, Burkina Faso, Niger, and Chad. On the other hand, the Economic Community of West African States (ECOWAS) assumed a leading political role, especially when dealing with the 2020 and 2021 Mali military coups.

Mali became quite crowded and by 2020 the Sahel region contained the largest European military deployment abroad, with around eight thousand troops. Proper coordination among Europeans and other external players became a serious challenge, especially in the field of humanitarian and development aid. The challenge was smaller in the military realm, where there were established coordination formats.

Issues

After Serval’s 2013 successes, when Islamist insurgents were quickly pushed out of urban centers and the French forces were celebrated as liberators, Paris started to face difficulties. Jihadists hid in the mountains or bushes, turned to a hit-and-run approach, and things started to become ugly. This may sound familiar to those who followed US interventions in Afghanistan or Iraq.

Ill-equipped local forces, a UN peacekeeping mission with extremely restrictive rules of engagement, and only a few thousand forces within Barkhane didn’t match with the evolving insurgency, an enemy moving fast over a territory comparable in size to Western Europe.

Malians expected most of the country’s issues to be solved by Europe. The government in Bamako often didn’t cooperate enough, thus becoming part of the problem; sometimes, the government played Europeans and other donors against one another. Europeans had much less leverage on Bamako compared to, say, Americans on the government in Baghdad. The French were not able to make Bamako understand that Barkhane is about stabilization or conflict management, and that the main job should be done by Malians themselves. The result: frustrations on both sides.

French-led efforts to build a European and local coalition of forces seemed to pick up and bring some results, beginning around 2020 with the establishment of the Takuba task force, a reform of the UN MINUSMA mandate, formation of G5 forces, and an enhanced EU training mission.

It was too little, too late. Mali hurt itself with two successive military coups in August 2020 and May 2021. When the junta led by Colonel Assimi Goïta rejected the demands of the international community to stick to the political transition timetable, the relationship with France soured to the point of upending Barkhane’s presence in Mali. There’s a debate as to whether Paris could have behaved a bit more diplomatically in the aftermath of a second coup, handling putschists’ egos and offering them an appropriate off-ramp.

Russian surprise

I had a chance to visit Bamako a few weeks after the second coup in 2021. When asking Western diplomats and local officials about the Russian presence in the country during the last years, they all pointed to Moscow’s rather low profile, compared to Russia’s activities in some other African countries. And yet within a few weeks, Russia suddenly emerged as a major player, exploiting tensions between the new leadership in Bamako and the French (with their European and regional allies). Feeling the pressure from the country’s long-standing partners as they pushed for a political transition, Colonel Goïta opted to remain in power and chose Russia as a partner. In the face of a European intervention that had dragged on for years, was it naive to hope that swapping horses could bring more security? The country’s geopolitical shift added to a sense of the West’s weakening stances in developing nations—parallel to a gradual return of Moscow to the forefront of Middle East and African theaters.

If Russian military intervention in Syria was premeditated, aiming to shore up against a risk of the Assad regime crumbling, Moscow’s coup de main in Bamako was more of a coincidence. As I already hinted in an Atlantic Council blog, even Russia was probably surprised by how easily the deeply rooted French and European influence in the country evaporated by seizing local frustrations, building on European missteps, and introducing disinformation into the mix. Moreover, it all happened at a very low cost, without any major military, economic, or political engagement.


In Mali, Russians reused the playbook from several other African countries (e.g., Central African Republic, Sudan, Mozambique). It just worked better in Mali, due to the circumstances. They prepared the ground through a disinformation campaign; when the opportunity arose (earlier than expected), Moscow offered an alternative to cooperation with the West that was tempting for leaders under pressure. The Russian package typically doesn’t include much economic support: no investments are to be expected. It provides some diplomatic backing, but the core is the protection of the regime, including limited arms supplies/sales, military advisers, and training. Yet, it’s not for free: African leaders are supposed to pay, often through the country’s mineral wealth.

Western sources on the ground told me about a few things Malians seem to appreciate, compared to cooperation with Europeans. Wagner mercenaries, for instance, often accompany local forces (even though Takuba task force troops had tried to do the same). Russians also appear to share more of the actionable information—including drone data on jihadists’ positions—enabling Malians to better operate. Malians and some Europeans complained that the French too often kept military information for themselves. Moscow brought in some arms: even if they were often outdated, the move worked and Malian forces may have felt a bit more confident. On the other hand, Russians often use Malian soldiers as cannon fodder.

Still, Moscow’s priority isn’t the stabilization of the country. Russia is mainly driven by an effort to boost its geopolitical positions, which here means weakening the Europeans. Russia doesn’t even bother coming up with a commensurable substitute to Western state-building projects, whereas China would offer an alternative authoritarian business model. In Mali, Russia appears as an almost pure disrupter. In Syria, Moscow may have interests in stabilizing the country to get its investments back, but Mali isn’t an attractive business project for Russians. It is a landlocked country, with only a few natural resources that are readily exploited. To date, the Wagner Group has been struggling to use concessions for the extraction of minerals. The most lucrative is gold. Yet, there’s too much light around the shining metal and attracting everybody, including Western companies. Shadowy mercenaries thus may be pushed to look for other options such as lithium. Apart from mineral-extraction concessions, the Wagner Group is also supposed to be paid for its services. The Pentagon once estimated that this could be up to $10 million a month. Bamako allegedly already transferred some money, but the greater part is still owed, a European diplomat told me.

The group’s merciless “gloves-off” approach—not caring about civilian damages and sometimes exploring local ethnic grievances—could have brought isolated short-term results. Russians also may have sought to find a modus vivendi with some of the insurgent groups. When you don’t have enough troops on the ground, you should look for a negotiated solution. But that didn’t happen: Russians are simply not up to the challenge. What Islamists really feared were French airstrikes. With those now gone, insurgents are fearlessly rolling on again. US Undersecretary of State Victoria Nuland recently estimated that violence in Mali increased by around 30 percent during the last six months.

Further fragmentation of the country is at risk. As Russians lack the capacity to protect much more than Bamako and mines in the south, Tuaregs may seize control of the north and Islamists expand their rule in the center. So far, Wagner forces are still operating in the center (mainly in the Segou and Mopti regions) and continue to prevent UN peacekeepers from entering some of these areas.

On the way forward to Niger

With about one thousand Wagner mercenaries present on the ground, Moscow cannot succeed where Europe, which had more than eight thousand troops engaged in the region, could not manage even with heavy aerial support. Russia’s ongoing war against Ukraine, which gobbles up military resources, has made containing the insurgency very unlikely. Any drawdown by Wagner in its forces in Mali may not yet be obvious, but it’s believed that the group has significantly decreased recruiting for operations in the Middle East and Africa to better focus on the European battlefield.


As France and its partners withdrew their contingents from Mali, they didn’t give up the fight against the further spread of violence in the Sahel region. Two successive military coups made broader engagement in Burkina Faso a less appealing option, even if the possibility of replaying Mali’s Wagner scenario there now seems rather low. The best harbor appeared to be Niger, where the government is interested in hosting European forces and Moscow has no traditional bearings. Negotiations are already underway between Paris and Niamey on concrete modalities of French and European military presence.

There are lessons that should be learned from Mali. French-led intervention suffered from several flaws, which are addressed in this piece I co-authored. If Paris was driven by the conviction that the solution should be regional and can’t be limited to a counterterrorist operation, then in practice it remained very much French and military centered.

For Niger, this would mean better communication outside and coordination inside. It also would be on the ground, accentuating preventive operations ahead of the proper fight or even more of the responsibility for local partners, once properly trained and equipped. Looking toward Niger, it’s important to underscore that France didn’t lose in Mali against Islamists, but rather because of local politics, its own colonial legacy, and a Russian-led disinformation campaign.

As for Mali, people have to understand what it feels like to be dependent on Russia. And it partly applies to the whole Sahel and Africa, where atrocities that Russia is committing in Ukraine may resonate way less than we, in the West, tend to think. This may take some time. Being a disrupter is easier than building stability. But it’s not a sustainable strategy. It’ll blow out one day.

Within the Malian population and the military, there’s not much opposition against the current leadership and the direction it is steering the country. Major fires have been extinguished. This can change over time once security and economic flaws become more obvious. Still, the first glimpses of such a reckoning may pop up soon as Bamako will have to decide whether to renew the Wagner contract. Since Russia is not delivering, the outcome is not a given.

Petr Tůma is a visiting fellow at the Atlantic Council’s Europe Center. He is a Czech career diplomat with an expertise on Europe, Middle East and transatlantic relations. 

In partnership with

ISPI

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Conflict management in the MENA: Different approaches for different actors https://www.atlanticcouncil.org/in-depth-research-reports/report/conflict-management-in-the-mena-different-approaches-for-different-actors/ Fri, 18 Nov 2022 14:30:00 +0000 https://www.atlanticcouncil.org/?p=585253 The region encompassing the Middle East, North Africa, and the Sahel is studded with complex and multi-layered conflicts in which local and international dynamics interact.

The post Conflict management in the MENA: Different approaches for different actors appeared first on Atlantic Council.

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The region encompassing the Middle East, North Africa, and the Sahel is studded with complex and multi-layered conflicts in which local and international dynamics interact. While this may sound like a simple truth, it has important implications regarding conflict management. Across the region, few wars are limited to one country and are internally resolvable. In most cases (Russia, Libya, Mali, Yemen), local and regional actors, foreign players, and international organizations have become protagonists of these crises’ destinies. These actors often have different agendas and are guided by other principles as they pursue different, and sometimes opposing, normative models and ways to seek peace. Countries of the region have witnessed countless attempts to deal with, manage, and resolve conflicts from various actors, which have registered mixed fortunes.

Conflict-management practices vary in form and structure, depending on the stakes involved and interests that differing parties to the conflict harbor. While, in some cases, conflict management will attempt to account for long-term stability with the involvement of international institutions such as the European Union and the United Nations (Mali), in other cases it will be short lived and with few to no long-term prospects for stability (Libya). Some actors may view the practice of managing conflicts as a way to enable local actors to take ownership over post-conflict reconstruction and rehabilitation (Yemen), while others view the practice as a way to extend their military footprint in the region (Russia).

In Mali, for example, the West has sought a long-term military engagement to mitigate the country’s crisis, which erupted in 2012 after the Tuareg-led separatist rebellion. The French-led counterterrorism operation’s primary goal was to oust the insurgents, while also paving the way for a long-term state-building process to help Mali rebuild after the conflict. European countries and the United Nations also stepped in to provide support and help the French-led intervention. Conflict management was about “stabilization” and, over time, handing over the state-building process to Bamako.

The NATO-led campaign in Libya from 2011, in contrast, had few to no long-term perspectives for stabilization and institution building. Still involved in Afghanistan, NATO member states were keen to avoid a full-fledged military operation in Libya consisting of a strong post-conflict transition and supported by disarmament, demobilization, and reintegration processes. As a result, local Libyan authorities faced the daunting challenge of contrasting the myriad armed groups that emerged because of the war, leaving Libya in shambles and without a centralized government.

Russian interventionism in the Middle East and North Africa (MENA) and the wider Sahel region saw the implementation of a conflict-management strategy that prioritized hard-power approaches over diplomatic, soft-power ones. While Russia narratives have framed its interventions as “peacekeeping missions,” few to no diplomatic efforts have been implemented. The use of widespread force—through military deployments in Syria, Libya, Sudan, Mali, and the Central African Republic—is a case in point of how Russian hard-power strategies prevailed.

Yemen’s crisis witnessed a rather unique management of its conflict, with local women and tribal-led groups taking center stage in the country’s reconstruction plan. By negotiating local ceasefire agreements and prisoner exchanges, civil-society organizations have become protagonists in Yemen’s ongoing civil war. These have provided temporary containment measures to mitigate the consequences of the conflict. However, the process of recovery cannot begin in the absence of a clear path toward ending the conflict and agreeing on a political horizon.

This Atlantic Council-ISPI Dossier focuses on a selected number of conflict case studies (Libya, Yemen, Mali, and Russia) with a view to surface types of mechanisms for dealing with them that have been used by actors including the United Nations, European Union (EU), NATO, and Russia.

Chiara Lovotti is an ISPI Research Fellow and Scientific Coordinator of “Rome MED-Mediterranean Dialogues.”

Alissa Pavia is the Associate Director for the North Africa Program within the Rafik Hariri Center & Middle East Programs at the Atlantic Council. 

In partnership with

ISPI

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Live updates from COP27 as leaders battle climate change amid global crises https://www.atlanticcouncil.org/blogs/new-atlanticist/cop-27-live-updates-egypt-climate-energy-sustainability/ Mon, 07 Nov 2022 18:35:14 +0000 https://www.atlanticcouncil.org/?p=583227 Are global leaders heeding this year's wake-up calls with bold commitments at COP27? Our experts give their takes.

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Activists, experts, and leaders flocked to the beaches of Egyptian resort town Sharm el Sheikh for the United Nations Conference of the Parties (COP27). Over the two-week convening, global leaders discussed topics ranging from ways to finance their emissions-reduction goals to new ambitions to keep global warming below 1.5 degrees Celsius.

Dubbed the “African COP,” this year’s conference was expected to see Global South countries rally together to press rich countries on their role in driving climate change. For the first time, global leaders promised to set up a “loss and damage” reparations fund, paid for by wealthy countries, to help low-income countries pay for the consequences of the climate crisis.

COP27 took place after a season of extreme weather events and natural disasters that saw catastrophic flooding in Pakistan, droughts across Africa, and more. And as the conference unfolded, leaders kept their eyes on the global energy crisis spurred by Russia’s invasion of Ukraine, which has pushed energy security to the fore—sometimes at the expense of the climate.

Have countries heeded this year’s wake-up calls with bold commitments at COP27? Our experts—many of whom were in Sharm el Sheikh—dispatched their insights and recommendations for world leaders throughout the course of this critical conference. This post was continuously updated as their reactions streamed in.

Check out all our work on COP27 here.


The latest analysis from Sharm el Sheikh


NOVEMBER 23, 2022 | 3:30 PM WASHINGTON | 10:30 PM SHARM EL SHEIKH

COP27 readout: The good and the bad as COP27 concludes

Requiring an additional thirty-six hours of negotiation, official delegates finally reached a settlement and final communique early Sunday morning. The deal is underpinned by the landmark agreement to create a fund for climate compensation, bringing a nearly three-decade journey for “loss and damage” closer to the finish line. Even if details are sparse regarding contributions to the fund and the criteria for disbursement to vulnerable or impacted nations, bringing forth a commitment from two hundred participating countries is representative of the amount of influence the Global South has wielded throughout the past two weeks.

The disappointing absence of increased emissions reduction targets in the communique is an indicator of how the needs of the developing world have underpinned this COP. Ambitions for economic development amidst a global energy crisis have given enough influence to global oil and gas producing states that room for a significant push to reduce the role of oil and gas in the energy mix has been significantly limited.

Read more

EnergySource

Nov 23, 2022

COP27 readout: The good and the bad as COP27 concludes

By Global Energy Center

Global Energy Center experts take stock of two weeks of COP developments in Sharm el Sheikh.

Climate Change & Climate Action Energy & Environment

NOVEMBER 21, 2022 | 8:57 AM WASHINGTON | 3:57 PM SHARM EL SHEIKH

The big success and bigger failure of COP27

The Global South won, but did the climate? Negotiators at the UN climate-change conference known as COP27 extended their stay in Sharm el Sheikh, Egypt to hammer out a final agreement that will create a loss and damage fund to compensate developing countries harmed by climate change. But the deal barely addresses other urgent topics such as reducing greenhouse-gas emissions, even as the consequences of climate change become clearer by the day. Have negotiators done enough to help save the planet and the people on it? What other surprises cropped up at COP? Our experts, who were on the ground in Sharm el Sheikh, are here to weigh in.

Read their takeaways

Fast Thinking

Nov 21, 2022

The big success and bigger failure of COP27

By Atlantic Council

What other surprises cropped up at the conference? Our experts, who were on the ground in Sharm el Sheikh, are here to weigh in.

Brazil China

Stepping up ahead of negotiations


NOVEMBER 18, 2022 | 6:18 AM WASHINGTON | 1:18 PM SHARM EL SHEIKH

Solutions for achieving net-zero emissions and improving energy access for all

Our Global Energy Center pulled to the side top thinkers, leaders, and innovators on climate solutions at COP27 to talk about their ideas for achieving net-zero ambitions while ensuring energy access for all.

Watch the full playlist

NOVEMBER 17, 2022 | 9:28 AM WASHINGTON | 4:28 AM SHARM EL SHEIKH

How climate change affects peace and security across the world

By Lama El Hatow

As climate change impacts intensify—fueling migration and competition over scarce resources—so does the risk that conflict that may emerge. That risk has only been exacerbated by recent economic shocks, energy-supply disruptions, and increasing food insecurity.

While climate-linked migration and displacement (or “human mobility”) are discussed extensively at COP27, they are not officially on the agenda. The US Center, as well as several other pavilions at COP27 like the Climate Mobility Pavilion, have hosted series of events discussing the connections between climate change, conflict, peace, and security. At these events, speakers explained how, with assessments by officials from the US Departments of State and Defense, the United States is looking at hotspot zones around the world that are at risk from severe climate impacts—including how fragile and conflict-affected countries are negatively affected by these impacts. The United States is conducting these assessments in an attempt to provide an early warning about which regions are most at risk from climate change.

One of the most concerning ways that climate change will impact these regions is by contributing to increasing food insecurity. According to a report by the UN Food and Agriculture Organization and the World Food Programme, up to 205 million people across forty-five countries are expected to face acute food insecurity, while up to 45 million people across thirty-seven countries are projected to face severe malnourishment that may result in starvation or death. The report also explains that more than 70 percent of people facing acute food security over the last year were living in conflict-affected countries; and in several countries and regions, climate change and extreme weather events are driving increases in food insecurity. Russia’s full-scale invasion of Ukraine has only added to the crisis by elevating prices for food and energy, the latter key to distributing food worldwide.

The report also identified nineteen hotspots—seventeen countries and two regional clusters—that are most at risk of worsening food insecurity over the next few months due to climate change effects, increasing conflict, economic shocks, and more. The 970,000 people who are projected to face the most severe conditions are located in five countries—Afghanistan, Ethiopia, Somalia, South Sudan, and Yemen.

With the number of climate refugees increasing, countries are beginning to assess how to manage this new movement of people, which will likely have spillover effects across regions. Although climate change is impacting the world all over, some countries have more capacity and resilience to manage the crisis than others; hence, migration flows in the Global South are steering toward countries with better resilience. Many at COP27 have argued that developed countries have a moral and ethical responsibility towards the migrants from the Global South, since they are coming from countries that didn’t contribute as much to the world’s emissions problem. Historically, however, there has been a pervasive anti-immigration sentiment that fuels restrictive policies and a general reluctance to provide legal protection to people fleeing their home countries due to conflict or climate change. Additionally, there has not yet been an established finance arrangement or action protocol on climate-linked mobility at the global level. Extensive work with significant cooperation still needs to be done to address this worsening crisis.

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 17, 2022 | 1:55 AM WASHINGTON | 8:55 AM SHARM EL SHEIKH

Insurance for a climate-safe future

With COP27’s focus on climate change adaptation, in addition to mitigation, the insurance sector now has an “absolutely integral role to play” in helping people manage disasters after—and even before— they happen, said Francis Bouchard, Marsh McLennan’s managing director of climate.

In conversation with Jorge Gastelumendi, director of global policy at the Adrienne Arsht-Rockefeller Foundation Resilience Center, Bouchard explained that insurance still has a very “traditional” role in terms of signaling to people the risks they may be acquiring in a new venture and paying claims after events unfold.

But there’s a new way that the insurance sector is helping send those risk signals earlier: Anticipatory finance, in which some companies offer a way to pay before a disaster strikes. “So if you statistically know that at some point [an] event is going to turn into something that would’ve been insured, you can actually put money in peoples’ hands before the event,” Bouchard explained. “They can spend that money to protect their families, their businesses, their cattle, their farms, whatever it is; but they can take steps before.”

Bouchard warned, however, that the idea hasn’t been scaled yet, as companies undergo a “mindset shift” from paying a claim after an event to making a claim never happen. Yet, he added, with momentum sparked by the global focus on risk reduction, which has resulted in new initiatives like the Group of Seven’s Global Shield, “the time is now for the insurance industry to lead.”

Watch more

NOVEMBER 16, 2022 | 7:18 PM WASHINGTON | NOVEMBER 17, 2022 | 2:18 AM SHARM EL SHEIKH

Dispatch from the Resilience Hub: Why countries can’t give up on the 1.5 degree Celsius cap on warming

NOVEMBER 16, 2022 | 12:04 PM WASHINGTON | 7:04 PM SHARM EL SHEIKH

Will countries step up on loss and damage?

By Lama El Hatow

While loss and damage is near the top of the agenda at COP27, it has been a sticky point for many countries as they debate how to finance the loss and damage payments.

Climate mitigation looks to avert climate change through the reduction of greenhouse gas emissions and the development of zero-emission solutions; climate adaptation aims to minimize the chance that climate change impacts a given community. But loss and damage addresses the harms and costs induced by climate change, which is already happening.

In Pakistan, for example, the recent disastrous floods, which put one-third of the country under water, damaged over a million homes, and killed over a thousand people. The damage has been estimated to cost more than thirty billion dollars and it displaced more thirty million people from their homes, raising an immediate need for loss and damage compensation. Overall, while some countries like Belgium and Scotland have been willing to pledge funding for loss and damage, other leading economies, including the United States, showed resistance.

At the same time, climate finance has traditionally been in the form of loans to developing countries. So essentially, developing countries are borrowing money from developed countries for a problem they mostly haven’t caused—and are being asked to pay it back with interest. Additionally, when climate disasters cause significant damage, they bring significant costs for the impacted country and, for developing countries, wipe out their financial resources, so the net outcome of the loan is almost nil.  This essentially is why Pakistan has called for debt restructuring and debt relief after the flooding, to change this unfair setup.

At the institutional level, the Vulnerable Twenty Group (V20), a “cooperation initiative” of finance ministers from the countries most vulnerable to climate change, was formed in 2015 to present a unified voice on climate action. V20 members are also members of the Climate Vulnerable Forum, a non-treaty organization of fifty-five member countries which are estimated to have collectively lost $525 billion from 2000 to 2019 due to climate change. These two forums are actively pushing to promote a loss and damage payments mechanism.

While reaching a consensus on loss and damage has been challenging, some developed countries proposed alternative funding mechanisms for vulnerable countries. For example, the Group of Seven-led Global Shield announced at COP27 provides immediate financial support to V20 countries when climate-change-related disasters strike. With Germany’s contribution of $175 million, and with additional contributions from France, Austria, Denmark and Ireland, the total financial coverage of the Global Shield is about $207 million. But the V20 countries also warned earlier this year that they could stop paying their debt service (estimated at about $685 billion) if lenders are not willing to restructure these debts and deduct the climate induced costs. In the words of Ghanaian Finance Minister Ken Ofori-Atta, by leaving nations at the mercy of climate catastrophe, “you could be triggering a global economic meltdown.”

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 16, 2022 | 11:00 AM WASHINGTON | 6:00 PM SHARM EL SHEIKH

Saudi Arabia’s take on aligning energy security needs and decarbonization goals

Global Energy Center Senior Director sat down with Khalid M. Abuleif, chief negotiator for the climate agreements for the Kingdom of Saudi Arabia, to talk about Saudi Arabia’s latest plans to meet its commitments in the Paris Climate Accords and the world’s needs for energy security.

The Paris Agreement has the potential to “be very costly for Saudi Arabia,” Abuleif explained. “The countries that will be most impacted… [are] going to be oil producers, developing countries; the reasoning is because their economies are not fully diversified and they rely heavily on limited sectors.”

But now is still the time for global climate action, Abuleif said. So as Saudi Arabia moves forward, it is working on making the country more resilient “to any kind of measures that could be taken,” Abuleif explained.

Watch the full interview to hear about Saudi Arabia’s latest initiatives geared toward improving energy security, boosting the country’s economy, and meeting its climate obligations.

Watch more

NOVEMBER 16, 2022 | 9:05 AM WASHINGTON | 4:05 PM SHARM EL SHEIKH

How Freetown is addressing extreme heat

Yvonne Aki-Sawyerr, mayor of Freetown, Sierra Leone, caught up with Kathy Baughman McLeod at the Resilience Hub and explained how her city is using an affordable and “simple solution” to protect women from extreme heat at markets across the city.

Watch the full conversation

NOVEMBER 16, 2022 | 2:03 AM WASHINGTON | 9:03 AM SHARM EL SHEIKH

Addressing Africa’s rapidly rising energy demand

The African Development Bank Group’s Kevin Kariuki joined Global Energy Center Deputy Director Reed Blakemore at COP27 to talk about sustainable development and energy access across Africa.

“Africa has endemic energy poverty which must be addressed,” Kariuki said, “and at the same time, we must address the issues of the climate crisis.”

To do that, Kariuki explained that he hopes leaders at COP27 realize that “what is actually required today is synergizing growth in energy demand with climate action.” He said that would help “[meet] the needs of Africa.”

“But we must also be realistic,” Kariuki added, “that renewable energy on its own will probably not be able to provide the security of supply and affordable power that is required to be able to underpin Africa’s social economic development.”

Watch more

NOVEMBER 16, 2022 | 1:10 AM WASHINGTON | 8:10 AM SHARM EL SHEIKH

Why now is the best time to address energy security and climate change in tandem

Global Energy Center Senior Director Landon Derentz joined the National Grid’s Rhian Kelly at COP27 to talk about addressing energy security in tandem with the energy transition.

“I think in many ways they’re more aligned than they’ve ever been because if we want to get ourselves off Russian gas, the cheapest form of self-reliant energies are renewables,” Kelly explained. She added that because global politics have changed, she thinks it’s “the best time to be thinking about energy security and climate change together.”

Watch more


A strategy for the Global South


NOVEMBER 15, 2022 | 5:07 PM WASHINGTON | NOVEMBER 16, 2022 | 12:07 AM SHARM EL SHEIKH

How cities in the Global South are adapting to climate change

At the Thailand Pavilion, Mauricio Rodas talked about urban resilience and climate adaptation in cities across the Global South. “Extreme heat is the climate hazard that [effects] more people than any other, and it is particularly severe in cities,” he explained. He pointed out the innovations that are addressing extreme heat, such as the Cool Capital Stack investment portfolio recently launched by the Adrienne Arsht-Rockefeller Foundation Resilience Center and its partners.

See the highlights

NOVEMBER 15, 2022 | 10:05 AM WASHINGTON | 5:05 PM SHARM EL SHEIKH

The first global ambassador for heat action lays out his top priorities

Newly appointed Global Ambassador for Heat Action Felipe Calderón outlined his agenda for tackling extreme heat in conversation with Mauricio Rodas, the senior advisor for heat and city diplomacy at the Adrienne Arsht-Rockefeller Foundation Resilience Center.

“The first thing we need to do is gather information… [and] second, to transmit that information to the right people,” Calderón said.

He said that he believes “the main problem is the lack of awareness about the importance of the problem, about the magnitude of the problem.” But, he added, getting information out to leaders, the media, and other stakeholders can help boost the urgency among leaders to address heat.

Afterall, Calderón explained, “the most cost effective way to avoid human deaths… [is] preventing or taking action on heat waves.”

He also stressed the importance of nature-based solutions like planting trees in cities. That, he said, is an effective one because it “combines an adaptation solution with a mitigation solution.”

Watch more

NOVEMBER 15, 2022 | 7:49 AM WASHINGTON | 2:49 PM SHARM EL SHEIKH

Dispatch from the Resilience Hub: How women are impacted by climate change

NOVEMBER 15, 2022 | 7:17 AM WASHINGTON | 2:17 PM SHARM EL SHEIKH

How to inhabit an uninhabitable region

By Lama El Hatow

The latest analysis from the United Nations (UN) indicates that we are still nowhere near limiting global warming to 1.5 degrees Celsius—the target set by the Paris Accords—and are actually headed towards 2.8 degrees. That means we may see regions around the globe become completely uninhabitable. According to the UN Office for the Coordination of Humanitarian Affairs, about six hundred million people across the Middle East and North Africa will face heat waves that go beyond the human survivability threshold by 2100. The Middle East North Africa (MENA) region is already a hot arid climate, and it will get hotter and drier with the impacts of climate change—with summertime temperatures that make it dangerous to be outdoors.

In this respect, we are heading toward an uninhabitable world and need to consider how best to adapt to it, particularly during the summer months. The immediate impact will be for people to spend more time indoors with the safety of air conditioning, which increases the demand for energy even further—bringing greater urgency to the search for clean renewable energy to power a smooth green transition. Additionally, within this year’s COP there have been many discussions about the possibilities of heat resilience within cities, including urban reforestation that can create cooler micro climates, shaded areas above bicycle lanes, and holistic urban planning with an eye toward resilience.

Consider the way many cities in Canada and the far north have adjusted to their harsh winters by creating underground infrastructure to minimize outdoor exposure, including public transportation, tunnel systems, and connections to buildings. Similarly, countries in MENA such as the United Arab Emirates and Qatar are already working to enhance their infrastructure to limit outdoor exposure by connecting their metro lines through tunnels to buildings, along with tailoring cultural attractions to the climate from the world’s largest indoor ski slope in Dubai to indoor stadiums and indoor golf courses. The MENA region is already building its cities to adapt to an uninhabitable world. The biggest risk, however, does not lie in wealthier countries that have the capacity to do this, but in the most vulnerable communities that will suffer tremendously in an environment made uninhabitable by climate change.

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.


The future of climate adaptation


NOVEMBER 14, 2022 | 2:37 PM WASHINGTON | 9:37 PM SHARM EL SHEIKH

Water Day comes to COP27

By Lama El Hatow

Monday was Water Day at COP27; it was a reminder that putting water in the center of the climate debate is imperative, necessary for crucial action, and long overdue.

Water access is still a challenge for many local communities. While the world leaders are striving to achieve Sustainable Development Goal 6 (clean water and sanitation for all), they are in many ways moving backwards.

For example, in many parts of the world, the privatization of water has shifted communities away from bodies of fresh water hat sustain their livelihoods. Water is a public good, and commodifying water takes away very basic human rights. Private companies have bought the rights to use bodies of water for profits, while poor and marginalized communities struggle to pay the higher prices on water. In many cases, private companies are not only limiting access to this public good but also polluting it further with industrial processes. 

Several groups at COP27 have discussed how vital it is to preserve water as a public good. With the impacts of climate change, the world is seeing water scarcity in some regions (such as the Middle East and North Africa), and floods and extreme rainfall in others. The COP27 president and the World Meteorological Organization launched the Action for Water Adaptation and Resilience initiative to focus on the climate and water nexus and on water adaptation.

Climate adaptation and covering loss and damage will require more climate financing, and much of that money needs to go toward water—specifically, toward efforts supporting water security for vulnerable communities. During Hurricane Katrina in 2005, the New Orleans area lacked sufficient access to clean water for days. Similarly, the floods in Pakistan left millions without access to clean water as some of the infrastructure needed to provide it was severely destroyed. Drought-stricken countries are banding together to share their technologies and expertise to manage water scarcity. For example, a group of countries led by Spain and Senegal launched the International Drought Resilience Alliance  at COP27 to “shift drought management from emergency response to resilience against climate change impacts.” Spain is committing five million euros to start it off.

As countries continue to partner with one another on water action, it will be crucial to ensure that there is appropriate focus on action for adaptation and resilience.

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 14, 2022 | 10:38 AM WASHINGTON | 5:38 PM SHARM EL SHEIKH

Delivering on UPS’s emissions-reductions commitments

Laura Lane, executive vice president and chief corporate affairs and sustainability officer of the United Parcel Service (UPS), sat down with Global Energy Center Senior Director Landon Derentz at COP27 to talk about UPS’s emissions-reductions goals.

Lane hopes that COP27 ultimately helps foster a “greater sense of collaboration between government, the private sector, and the NGO community. If they all come together, they “can solve a lot of the challenges that lie ahead for companies like [UPS],” that, Lane explained, are part of “one of the… hardest to abate industry sectors.”

She pointed out that while UPS has a goal to be carbon neutral by 2050, global tensions and supply chain shortages are making it difficult to hit key checkpoints. For example, the global shortage of microchips is making it more difficult to electrify their ground fleet.

“And so we are trying to find other ways to be able to get the emissions out of our… operations,” Lane explained. She said that UPS is searching for alternative fuels for its ground fleet and is working with other companies to incentivize the production of sustainable aviation fuel to power its operations in the air.

Watch more

NOVEMBER 13, 2022 | 1:16 PM WASHINGTON | 8:16 PM SHARM EL SHEIKH

Here’s what to know heading into week two of negotiations

By the Global Energy Center

As COP27 reaches its midway point, technical discussions are set to gain speed in week two. The twin realities of an energy security crisis and the sweeping impacts of climate change on the developing world remain at the forefront of discussions throughout Sharm el Sheikh. The multi-stakeholder drive to surmount both challenges is drawing stronger linkages between climate action and energy security, opening new avenues for collaboration between governments, civil society, and industry.

After week one, a few things are clear:

US climate leadership is achieving legitimacy through action. Midterm elections at the start of COP27 served only to further energize a US delegation already operating with confidence following passage of the Inflation Reduction Act. President Biden, Speaker of the House Nancy Pelosi, Special Presidential Envoy for Climate John Kerry, the Director of the National Economic Council Brian Deese, and many others arrived in Egypt emphasizing an optimistic outlook for the energy transition in the United States, while underscoring the need to unlock “trillions” in private financing to replicate US momentum in the developing world. The steadfast presence of US congressional delegations from both sides of the aisle further reinforced the United States’ commitment to addressing the climate crisis.

Next, the narrative at COP27 is no longer Western-led. The introduction of “loss and damage” to the COP agenda illustrates how the global south has successfully used the conversation in Europe and the West around energy security following Russia’s invasion of Ukraine to underscore the need for access to sustainable energy resources that enable economic growth.

And finally, the hard conversations which have often been missed or dodged at prior COPs are now front-and-center.

Overall, the twin realities of a global energy security crisis and a developing world at the forefront of a majority of the worst impacts of climate change have created an opportunity to better integrate the policy spheres of climate action and energy security.

Read more

EnergySource

Nov 13, 2022

COP27 readout: Week 1 comes to a close

By Global Energy Center

Global Energy Center react to the first week of COP27 proceedings.

Climate Change & Climate Action Energy & Environment

NOVEMBER 12, 2022 | 3:34 AM WASHINGTON | 10:34 AM SHARM EL SHEIKH

Dispatch from virtual reality: How games are informing decision makers on climate adaptation

NOVEMBER 12, 2022 | 2:57 AM WASHINGTON | 9:57 AM SHARM EL SHEIKH

What to make of USAID’s new adaptation and resilience plan

NOVEMBER 12, 2022 | 2:33 AM WASHINGTON | 9:33 AM SHARM EL SHEIKH

Experts praise the United States for finally stepping up—but there are also other climate leaders to watch

Global Energy Center Deputy Director Reed Blakemore sat down with the World Resources Institute’s Dan Lashof to talk about the countries taking the lead on climate action.

Lashof explained that while this is the twenty-seventh COP, “it’s COP1 for the United States being able to show up with a transformative climate law in place domestically.” He thinks “that gives President Biden much more credibility,” but he added that the world will be watching whether Congress will be able to sustain the momentum on climate action.

Lashof explained that, while people still pay a lot of attention to how politics in the United States impact the country’s climate leadership, the world is “no longer unipolar.”

“People are also looking to the EU and to China,” he said. So I think those three major players are pushing the wall forward, sometimes together, sometimes not so much. But as long as they’re moving and accelerating action, then we’re seeing progress.”

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Public-private partnerships


NOVEMBER 11, 2022 | 7:12 PM WASHINGTON | NOVEMBER 12, 2022 | 2:12 AM SHARM EL SHEIKH

COP’s focuses on implementation, emerging economies, and public-private partnerships raise hopes

By Roger Martella

In this pivotal moment for global action on climate change, I’m in the full optimist camp regarding COP27 in Sharm el Sheikh—not only for Egypt, but for the precedent Egypt is setting for the future.

Two main reasons drive this enthusiasm. First, COP27 is focused on implementation—putting climate promises into action. Second, the event is committed to highlighting the needs and challenges of emerging economies. This will place a global spotlight on the unique opportunities for countries where most of the 750 million people without reliable access to electricity live.

Another reason to be optimistic about COP27 is the rapidly growing role of public-private partnerships between policymakers and corporate stakeholders. The growing role of companies to be part of the solution and partner with governments, nongovernmental organizations, and other companies in industrialized and emerging markets is leading to unprecedented collaborations, some already having an impact.

The pursuit of public-private partnerships is perhaps the top undercurrent at COP27, as many collaborators and odd bedfellows alike come together for bold pronouncements of projects and initiatives together. These examples demonstrate how emerging economies, through public-private partnerships and tangible proof points, are addressing the energy transition by blending different approaches, technologies, and perspectives. Additionally, they illustrate how emerging economies are positioning strategically to build climate resilient infrastructure that grows access to energy at the same time. The lessons learned from each will help inform the many ongoing discussions and negotiations in Sharm el Sheikh.

Roger Martella is the chief sustainability officer of GE. GE is a presenting partner of GEC at COP27: Ambitions for All.

Read more

EnergySource

Nov 11, 2022

Partner perspectives: In emerging markets, partnerships and proof points are key to driving the energy transition

By Roger Martella

COP27 is an opportunity for emerging economies to lead the energy transition. Public-private partnerships can help drive progress towards their goals.

Energy & Environment Energy Transitions

NOVEMBER 11, 2022 | 12:37 PM WASHINGTON | 7:37 PM SHARM EL SHEIKH

At the “corporate COP,” a new focus on private-sector solutions

By Lama El Hatow

The private sector has an immense presence at COP27 in all the various zones within Sharm El Sheikh, earning this conference the label of the “corporate COP.” The business role comes in several forms.

First, there is a growing recognition that the private sector will have to close the gap in the unfulfilled one hundred billion dollar per year climate finance promise made by developed countries. We already know that one hundred billion is insufficient, with reports now claiming that two trillion dollars per year is what’s needed for the Global South. UN Climate Change High-Level Champion for Egypt Mahmoud Mohieldin and US climate envoy John Kerry have argued that various modes of blended finance (using development funds to leverage private capital), as well as regulations on the private sector, are the only way to meet the one hundred billion dollar pledge and move toward the two trillion dollar goal. Kerry even announced that the US Energy Transition Accelerator would be carried out in partnership with Bezos’ Earth Fund and the Rockefeller Fund, solidifying the role of the private sector in implementation.

Second, fossil-fuel and high-polluting companies are frightened and lobbying quite strongly. During decarbonization day today, their viewpoints were expressed in various sessions discussing how they are shifting their practices to renewable energy and phasing out fossil fuels. However, they are concerned, as Prime Minister of Barbados Mia Mottley and other island state leaders opened COP27 by stating that fossil fuel companies should pay a global carbon tax on profits to fund loss and damage for the Global South. The massive third quarter profits recently reported by Saudi Aramco ($42.4 billion), Exxon ($20 billion), and Chevron ($11.2 billion) alone show why this could be an attractive option for policymakers seeking loss and damage funds.

Third, businesses along with banks are under new pressure from investors to meet environmental, social, and governance (ESG) goals, and they are trying to catch up and understand what needs to be done. The Net Zero Banking Alliance, which is one of the four pillars of the Glasgow Financial Alliance for Net Zero that emerged at the last COP, has been convening to see how to enable as well as enforce banks to transition to net zero. CEOs of top commercial and investment banks including Blackrock, Citibank, and Standard Chartered are skipping the summit as they focus more on issues such as the fallout from Russia’s war in Ukraine, energy crises, rising inflation, and the threat of recession. It is no secret that many large-scale corporations produce more greenhouse gas emissions than many countries. The argument is that these companies should be liable for compensation, not only to their consumers and board of directors, but also to the Global South and the world’s most vulnerable people.

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 11, 2022 | 11:23 AM WASHINGTON | 6:23 PM SHARM EL SHEIKH

Partnerships to benefit the planet—and the private sector

Global Energy Center Senior Director Landon Derentz hosted Dorothy McAuliffe, the US State Department’s special representative for global partnerships, to talk about how governments can work with the private sector to develop climate solutions.

“Governments can’t tackle this challenge alone,” McAuliffe explained. “We have to be in this all together.”

While there are major benefits for the planet to be reaped from this partnership, McAuliffe explained that there are benefits for the private sector too: “There are jobs and opportunities that come along with this clean energy transformation… and finding these solutions.”

Watch more

NOVEMBER 11, 2022 | 10:43 AM WASHINGTON | 5:43 PM SHARM EL SHEIKH

Gaming and social tech can reorient the world toward a climate-resilient future

By increasing awareness of climate adaptation measures, gaming and social technologies are creating impact on the ground in many countries.

On Friday, the Adrienne Arsht-Rockefeller Foundation Resilience Center hosted an event at the COP27 Resilience Hub that brought together gaming and technology experts to talk about innovative solutions to build resilient communities.

For example, games like Garden Story help users acquire the knowledge and skills they need to take climate action in their communities. Similarly, Meta aims to help users understand the types of climate-adaptation tools that are available to prevent future damage and loss.

See top moments from the event

NOVEMBER 11, 2022 | 11:12 AM WASHINGTON | 6:12 PM SHARM EL SHEIKH

Quick take: The attendance at COPs has transformed. Here’s what that means for the energy transition.

NOVEMBER 11, 2022 | 7:30 AM WASHINGTON | 2:30 PM SHARM EL SHEIKH

Improving clean-energy access for everyone

As the energy transition gets underway, experts are searching for ways to bring clean energies to everyone—and particularly low-income and developing countries.

Doing so will require focuses like improving financing, making the energy supply chain more efficient, and turning toward cooling solutions, said panelists at an Adrienne Arsht-Rockefeller Foundation Resilience Center event at the Resilience Hub.

“We need to make sure that access to energy is resilient,” said Lavinia Bauerochse, global head of ESG at Deutsche Bank. “Climate change-induced weather extremes like floods and heat must be factored in. Without a resilient infrastructure, our efforts will be short lived.”

See top moments from the event

NOVEMBER 11, 2022 | 6:46 AM WASHINGTON | 1:46 PM SHARM EL SHEIKH

The energy crisis shows the need to accelerate the energy transition

Global Energy Center Senior Director Landon Derentz sat down with HIF Global’s Meg Gentle to talk about decarbonization ambitions at COP27.

“There are so many incredible ideas here in Egypt this year, and we can show that eFuels, this synthetic fuel, this is happening now,” Gentle explained. HIF Global produces eFuels in countries like Chile and Australia.

EFuels, which are fuels created by renewable energies and carbon capturing from the air, have potential now, added Gentle. “These are fuels that can be used immediately; this is a solution for today.”

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The innovative solutions at play


NOVEMBER 10, 2022 | 2:08 PM WASHINGTON | 9:08 PM SHARM EL SHEIKH

Gaming and virtual reality set out to change how decisionmakers tackle climate change

By Lama El Hatow

As climate change becomes the world’s reality, groups are using technology to bring it to virtual reality as well.

With the evolution of technologies over the years and the emergence of the gaming industry, there has been an increase in the number of innovative ways through which people can see how climate change impacts the world and, by association, how to deal with it. The COP27 Resilience Hub, run in part by the Atlantic Council’s Adrienne Arsht-Rockefeller Foundation Resilience Center, has created a VR experience that allows each user to click on various places around the globe to see what would happen in a +2 degree Celsius or +4 degree Celsius world. Based on the Paris Agreement and the science, we need to remain underneath 1.5 degree Celsius of warming to avoid catastrophic climate impacts. In this VR experience, one can see that the city of Miami, for instance, would be completely submerged underwater from flooding. Experiencing this submersion is quite difficult to process.

Additionally in this experience, the user has the option to select from various adaptation measures that can help the city of Miami avoid these catastrophic changes. For instance, after selecting “reforestation,” a nature-based solution, the user can see how Miami is able to withstand floodwaters. Alternatively, users can choose measures that may not be as effective, such as breakwaters in the case of Miami; from that, users can understand that decisions on adaptation must be designed for the particular contexts of each city. This technology allows policymakers to decide what kind of Miami they’d like to plan for in the future based on climate impacts.

Similarly, the video game “Eco” allows users to explore the “tragedy of the commons”—a situation in which users competing over environmental resources act in their own interest and ultimately deplete the resources entirely. Other games show how people’s physical conditions change in response to increased temperatures and heatwaves in certain settings—for example in poorly serviced areas versus in areas with resilient infrastructure. This game can be useful to help users understand how workers who are exposed to the outdoors for long periods of time are impacted by a world that is continuously heating.

The gaming industry and VR have opened up ways to envision the world in the future and how best to live in it. Ultimately, this technology and innovation is important in that it can help decisionmakers decide which adaptation measures to employ.

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 10, 2022 | 12:15 PM WASHINGTON | 7:15 PM SHARM EL SHEIKH

Investments in climate technologies must begin with software

By Scott Reese

The annual United Nations Conference of Parties is underway in Sharm el Sheikh, Egypt, with delegates from around the world gathering to address one of the most urgent of global imperatives: climate change and the energy transition. Central to the conversation is tackling carbon emissions, the leading contributor to planet-wide warming.

During last year’s conference, leaders reinforced the sense of urgency to take action. Since then, important moves have been made to drive progress. Notably, the United States, currently the world’s second-largest carbon emitter, took its biggest step yet in combating climate change with a $369 billion investment via the Inflation Reduction Act that will reduce US carbon emissions to an estimated 40 percent below 2005 levels by 2030. This is in addition to steps to fund a modernized grid and breakthrough technologies in the Infrastructure Investment and Jobs Act. These two landmark climate change laws not only aim to reduce climate emissions, but they also advance US investments in both energy security and grid resiliency as well as critical breakthrough technologies.

Yet a problem so daunting can leave us all wondering, how does the world move faster?

While it’s critical to invest in long-term, high-impact levers like renewable energy, hydrogen, and carbon capture and sequestration technologies, software is an investment that can pay dividends today and accelerate our ability to embrace electrification and decarbonization tactics. 

Read more

EnergySource

Nov 10, 2022

Partner perspectives: The next unlock: Why software is key to the energy transition

By Scott Reese

The energy transition requires scale, but it also requires speed. Through the marriage of human ingenuity with data and computing power, software integration can enable the acceleration of electrification and decarbonization, moving the world closer to loftier climate ambitions.

Energy & Environment Energy Transitions

NOVEMBER 10, 2022 | 9:00 AM WASHINGTON | 4:00 PM SHARM EL SHEIKH

Nancy Pelosi and Kathy Castor at COP27: The US won’t abandon its climate leadership, regardless of who controls Congress

By Katherine Walla

The United States is officially back “in the game,” leading the fight against climate change, said US Representative Kathy Castor, chair of the House Select Committee on the Climate Crisis. “And we’re not leaving the playing field ever again.”

Castor and House Speaker Nancy Pelosi spoke on Thursday about how the United States is addressing the climate crisis at an Atlantic Council Front Page event hosted by the Adrienne Arsht-Rockefeller Foundation Resilience Center at the United Nations Climate Change Conference of the Parties (COP27) in Sharm el Sheikh, Egypt.

While the United States—which withdrew from the Paris Climate Accords in 2019 but rejoined the agreement in 2021—has seen its climate leadership questioned, Castor said the country now has the tools to meet its emissions reduction goals. Those tools, she explained, include the bipartisan infrastructure law and the Inflation Reduction Act (IRA), the latter of which she deemed the “most important climate bill” in US history.

At COP27, Pelosi hopes that US and global leaders will “find common ground” to address climate change, especially because of how pervasive the effects will be on health, economies, and even security globally. “The competition for habitat and resources can cause conflict,” Pelosi noted. “We have to avoid that.”

Read more

COP

Nov 10, 2022

Nancy Pelosi and Kathy Castor at COP27: The US won’t abandon its climate leadership, regardless of who controls Congress

By Katherine Walla

The US House speaker and the chair of the climate committee appeared at an Atlantic Council Front Page event in Sharm el Sheikh, Egypt.

Climate Change & Climate Action Energy & Environment

NOVEMBER 10, 2022 | 6:52 AM WASHINGTON | 1:52 PM SHARM EL SHEIKH

Energy security and the energy transition are “mutually reinforcing,” says US official

On Thursday, Global Energy Center Senior Director Landon Derentz sat down with US Assistant Secretary of State for Energy Resources Geoffrey Pyatt to talk about global energy security.

“Energy is at the white hot center of international affairs in a way that it has not been in a long time,” Pyatt said. But despite countries scrambling for cheaper and more destructive energy sources like coal amid global gas shortages, Pyatt argued that energy security and the energy transition “are not in conflict with each other; in fact, they’re mutually reinforcing.”

“We need to continue to work… to build an energy system internationally which helps our allies and partners to advance their economies [and] to deliver results for their citizens,” he said. “But we also need to keep working on the energy transition.”

Watch more


Protecting the planet—and people


NOVEMBER 9, 2022 | 12:30 PM WASHINGTON | 7:30 PM SHARM EL SHEIKH

For COP outcomes that benefit the groups most vulnerable to climate change, representation must improve

By Lama El Hatow

Looking around to see who is present at COP27, there’s a lot of diversity and an array of ethnicities, cultures, and backgrounds across groups that aim to represent their communities and share their stories about how climate change impacts them. But not everyone has the privilege to be able to attend this COP and convene in an effort to inform policymakers of the realities on the ground. In fact, the most vulnerable and impacted communities around the world are often the ones that face the most hurdles in attending these conferences. Hence, these communities’ stories oftentimes never make it to the ears of the decision makers in the negotiating rooms deciding the world’s fate.

It thus becomes the international community’s responsibility to inform those decision makers for the sake of those not present at COP27. Within Egypt, minority groups such as the Nubian communities in Aswan and the Bedouins of Sinai will not be present at this COP. In November 2021, a severe storm hit the city of Aswan, destroying homes, flooding small islands, and decimating the already limited agriculture—and the community there is still healing from this disaster today. They report that such a storm has not hit Aswan in the last forty years. As these communities rely on the Nile River for their daily livelihood, the impacts of climate change, including lower water levels in rivers, are acute and detrimental for them. There are other examples of detrimental impact worldwide, most recently with floods in Pakistan destroying over a million homes and killing over a thousand people.

As leaders discuss the financial mechanisms for loss and damage payments in the negotiating rooms, it is important to know how and where these losses and damages are taking place across the globe. The Global Stocktake launched at COP26 requires countries to report on local- and community-level participation in nationally determined contributions, thus making the participation more feasible but still far from what is needed. That is why representation matters; and having local communities, tribes, indigenous peoples, and minority groups present at such a convening as COP is not only necessary but vital so that any outcomes of negotiations are holistic and take into consideration the needs of those most vulnerable to climate change. To ensure the inclusion of these groups, they must be allowed access to funding as well as partnerships with local and international civil-society organizations.

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 9, 2022 | 10:41 AM WASHINGTON | 5:41 PM SHARM EL SHEIKH

Reasons to be optimistic about the “implementation COP”

COP27 has, to date, been scarce on tangible results, with the majority of action occurring outside of the negotiating room as a diverse coalition of industry and nongovernmental organizations descends on Sharm el Sheikh.

But there are clear signs emerging that should offer optimism as technical groups dominate the balance of the next two weeks:

  • Finance remains center stage. Financing both energy transition​s and climate adaptation has, at least thus far, remained front-of-mind for policy leaders over the past two days. Commitments from a handful of European countries seeking to accelerate international climate adaptation finance are one such bright spot, despite the relative lack of optimism for progress leading up to the COP this year. Yet this box is still largely unchecked.
  • Private sector participation. COP’s transition from a largely technocratic convening to an increasingly multifaceted climate convention filled with corporations and civil society continues. Observers should be encouraged that the dialogue is moving past simple greenwashing, in favor of efforts to establish a widespread coalition of parties engaged in the climate conversation.
  • Implementation is in limbo. Though COP is meant to focus on acting on the pledges laid out in COP26 and the Bonn intersessional, homing in on details that expose the current tension between energy security and climate ambitions is proving to be more difficult than gaining commitments from governments for these pledges in the first place.

Significant work remains to be done in the coming days.

Read more

EnergySource

Nov 9, 2022

COP27 readout: Days 1 and 2

By Global Energy Center

Global Energy Center experts are on the ground at COP27. Here’s what they observed over the first two days.

Climate Change & Climate Action Energy & Environment

NOVEMBER 9, 2022 | 10:30 AM WASHINGTON | 6:30 PM SHARM EL SHEIKH

The health sector’s role in climate change and ambitions

Global Energy Center Deputy Director Reed Blakemore sat down with John Balbus, acting director of the Office of Climate Change and Heath Equity at the US Department of Health and Human Services to talk about health equity and decarbonizing the health sector.

“Health is often mentioned as a reason to be acting on climate change, but the health community isn’t present,” Balbus explained. But over the last year, he added, “the health sector has mobilized in a way that it has not over the last twenty-six COPs.”

“So what we’re hoping is that by mobilizing the health sector,” Balbus said, the sector can provide health information to national leaders that convinces them to increase the urgency to tackle climate change.

According to Balbus, the health sector is responsible for about 5 percent of global carbon emissions, but no countries focus on the decarbonization of the health sector. He said they should include the health sector in both reducing emissions and adapting to climate change.

Watch more

NOVEMBER 9, 2022 | 7:16 AM WASHINGTON | 3:16 PM SHARM EL SHEIKH

The newest advocate of heat resilience: The world’s first global ambassador for heat action

On Wednesday, the Adrienne Arsht-Rockefeller Foundation Resilience Center unveiled a new leader in climate adaptation. At COP27, Felipe Calderón, former president of Mexico, took the reins as the first-ever global ambassador for heat action with a mandate to raise the issue of extreme heat among the world’s leaders to protect people, jobs, and the economy.

Watch the unveiling

NOVEMBER 9, 2022 | 10:05 AM WASHINGTON | 5:05 AM SHARM EL SHEIKH

Cash for cooling

As the temperature goes up, it’ll be vital to protect people, communities, and local economies from extreme heat and its effects.

The Adrienne Arsht-Rockefeller Foundation Resilience Center and partners including the Rockefeller Foundation, JP Morgan Chase & Co, ClimateWorks, Marsh McLennan, and IFC, gathered together at COP27 to launch the Cool Capital Stack, the first investment portfolio dedicated to supporting cooling solutions for the world’s most vulnerable.

Watch top moments from the launch

NOVEMBER 9, 2022 | 1:15 AM WASHINGTON | 8:15 AM SHARM EL SHEIKH

How cities are taking the lead on heat action

On Wednesday, Luis Donaldo Colosio Riojas, mayor of Monterrey, Mexico, recounted watching his city’s temperature rise ten degrees over the last thirty years. “We are ill-prepared for this silent killer and people are facing the consequences,” he said.

The mayor gave his thoughts at an Adrienne Arsht-Rockefeller Foundation Resilience Center event focused on what cities are doing to take the lead on heat action. Earlier this year, the city of Monterrey appointed a chief heat officer committed to reducing the threat of extreme urban heat for vulnerable people.

Global Chief Heat Officer Eleni Myrivili explained that the way cities are built makes them “death traps” of heat for people. It is important to listen to cities, she added, as they know “where the problem is and what they really need to do to respond to it.”

Watch top moments from the event


Takeaways as negotiations get underway


NOVEMBER 8, 2022 | 6:47 PM WASHINGTON | NOVEMBER 9, 2022 | 1:47 AM SHARM EL SHEIKH

Dispatch from the World Leaders Summit: The most fundamental plan for adaptation in a decade

NOVEMBER 8, 2022 | 2:45 PM WASHINGTON | 9:45 PM SHARM EL SHEIKH

Some MENA countries are under-represented at COP27. Here’s what that means for the negotiations.

By Lama El Hatow

The delegates at COP27 face the challenging and daunting dilemma of tackling the world’s climate crisis in the midst of a series of global political and economic crises.

The world is still feeling the brunt of the COVID-19 pandemic with supply chain stalls from China and insufficient resources elsewhere. Add to that Russia’s war in Ukraine has pulled a plug on global gas flows—raising Europe’s worries about staying warm this winter—and has also generated concern about wheat-supply shortages and food insecurity globally.

The compounded effect of all of these issues has led to broadening global inflation. So not only are the least developed countries becoming more vulnerable to the worsening global economic outlook, but even some of the wealthier countries have difficulties staying afloat. In the Middle East and North Africa (MENA), several countries face their own economic and political turmoil with Syria still at war, Sudan reeling from political instability after a coup last year, and Lebanon facing the worst economic crisis in its history with power outages and bank closures that put the Lebanese people in unforeseen circumstances.

Without ignoring political and economic turbulences like these, how will the delegations at COP27 deal with global crises while also asking the world to commit to more ambitious pledges and enforce the execution of them? The limited representation of many delegations from MENA countries at COP, including some of the most water-scarce countries in the region, raises concerns about the outcomes of the negotiations. Since the conflict-affected MENA countries are very consumed with their local economic and political challenges, the capabilities of these countries to address the climate crisis at COP27 are certainly going to be limited.

While some countries are being represented by delegations made up of several dozens of negotiators and experts, conflict-afflicted countries from the MENA region only have a few delegates to cover an agenda with so many key topics. They’ll likely, therefore, have less negotiating power to tackle and influence the outcomes of the more controversial topics on the agenda, including climate financing and loss and damage.

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 8, 2022 | 11:17 AM WASHINGTON | 6:17 PM SHARM EL SHEIKH

Public capital is key to funding solutions to the “energy trilemma”

By Susan Flanagan

It is abundantly clear that achieving net-zero carbon emissions by mid-century is necessary to avoid the worst climate outcomes. However, the path to decarbonizing the energy sector is not “one-size-fits-all” between developed and developing markets. Given the historical tensions between developed economies, which modernized with fossil fuels, and developing economies, now being asked to forgo this route, it is evident that sustainable, long-term global cooperation will require addressing the ”energy trilemma”—the need for the people to have access to sustainable, reliable, and affordable energy.

Sustainability is more urgent for countries hardest hit by climate change and often exposed to greater environmental risks. Reliability remains an elusive goal in many countries still working to bring basic electricity to their citizens in a secure and dependable way. Many of these developing economies also face roadblocks to electricity affordability due to weak government finances and credit, and the corresponding higher cost of capital for infrastructure development.

To drive global decarbonization and increase electrification in developing countries, policymakers and financial institutions must partner with project sponsors to tailor capital solutions that best fit each region and country.

Susan Flanagan is the president and chief executive officer of GE Energy Financial Services. GE is a supporter of the Atlantic Council Global Energy Center.

Read more

EnergySource

Nov 8, 2022

Partner perspectives: With COP27 underway, there’s no time to waste—public capital is a key conduit to a just energy transition

By Susan Flanagan

The sheer scale of needed investments to enact the energy transition will require an unprecedented mobilization of capital. Given its unique capabilities, public capital must play a significant part in this effort.

Energy & Environment Energy Transitions

NOVEMBER 8, 2022 | 3:35 AM WASHINGTON | 10:35 AM SHARM EL SHEIKH

Ensuring both a just energy transition and access to affordable energy

Global Energy Center Senior Director Landon Derentz sat down with General Electric’s Roger Martella to talk about ensuring a just energy transition and decarbonization while ensuring access to reliable, affordable, and sustainable power for everyone.

“We want to help countries, particularly in emerging economies achieve these goals by focusing on bespoke solutions for each country. There’s no one-size-fits-all approach here,” Martella said. He explained that while solutions may be different in each country, they’ll all need to have the “same tools in the toolbox”: a combination of renewable energy, gas, and grid.

General Electric is a presenting partner for the Global Energy Center’s Ambitions for All project, which you can read about here.


Analysis as leaders assembled


NOVEMBER 7, 2022 | 1:43 PM WASHINGTON | 8:43 PM SHARM EL SHEIKH

What’s happening beyond official negotiations?

NOVEMBER 7, 2022 | 12:36 PM WASHINGTON | 7:36 PM SHARM EL SHEIKH

The private sector holds a lot of the cards at COP27

By Lama El Hatow

As COP27 gets underway, various platforms of engagement are taking place.

In the blue zone, countries’ official delegations are coming together to meet and negotiate on the agenda items put forth and agreed upon with the support of the United Nations Framework Convention on Climate Change and Glasgow, the COP26 host. These agenda items include increasing ambition on pledges for greenhouse gas emission reductions by all countries to limit global warming to 1.5 degrees Celsius, making progress on climate adaptation and ways to propel it forward, boosting climate finance and pushing developed countries to meet their financing commitments of $100 billion per year, and discussing a mechanism for loss and damage payments. The delegations agreed on Saturday to include the loss and damage fund as part of the agenda; it’s considered a huge win for the Global South that is most vulnerable to and at risk from climate change impacts.

Meanwhile, the green zone is designated for civil-society pavilions, where various ministries from Egypt elsewhere can showcase their work; it is also a culture and arts hub for participants to network and have side events outside the negotiation rooms.

Additionally, there is a third zone this year: The Climate Action Innovation Zone, which has been set up as a private-sector hub for companies and corporations from around the world to showcase their work through exhibitions, side events, and networking sessions. Many of the region’s largest players including Saudi Arabia’s ACWA Power and Neom, the United Arab Emirates’ IRENA, and Egypt’s TAQA Arabia are all present on the sidelines of COP27 to discuss technology and innovation that sets the stage for a smoother green transition. Adjacent to the climate innovation zone is the Saudi Green Initiative, which also has its own designated area to showcase its work.

While the world focuses on the blue zone with government pledges and commitments, it appears the private sector holds a lot of the cards in this convening. As UN Climate Change High-Level Champion for COP27, Mahmoud Mohieldin reiterated that nonstate actors need to lead the way with regard to climate finance. It appears the role of the private sector and the deals happening on the outskirts of the COP may help set the stage for advancement in climate technology, innovation, and even financing. 

Lama El Hatow is a nonresident fellow with the Atlantic Council’s empowerME Initiative.

NOVEMBER 7, 2022 | 11:23 AM WASHINGTON | 6:23 PM SHARM EL SHEIKH

Dispatch from the Singapore Pavilion: How to build cities resilient to heat

Kurt Shickman, director of Extreme Heat Initiatives at our Adrienne Arsht-Rockefeller Foundation Resilience Center, shared his readout from an event with the Mayor of Monterrey, Mexico, Luis Donaldo Colosio and Athens Chief Heat Officer Eleni Myrivili about the best solutions for managing extreme heat in cities.

Watch more


Gearing up for COP27


NOVEMBER 5, 2022 | 3:13 PM WASHINGTON | 10:13 PM SHARM EL SHEIKH

How a lack of energy security will impact the speed and impact of the energy transition

As today’s energy crisis intensifies, Global Energy Center Senior Director Landon Derentz points out that a lack of energy security will slow the energy transition and spell trouble for ensuring affordable energy is accessible for all. “The world is short energy,” he writes, “now and over the next decade.” That calls for investment across the board—in zero-carbon energy sources and also oil and gas, he argues.

Read the thread

NOVEMBER 4, 2022 | 3:30 PM WASHINGTON | 10:30 PM SHARM EL SHEIKH

The new partnership financing a just energy transition in emerging economies

By Christopher Cassidy, Rainer Quitzow, and Maia Sparkman

As the global community convenes for COP27, Just Energy Transition Partnerships (JETPs) are poised to play an expanded role in financing the energy transitions of emerging economies. Conceived as multi-donor agreements to accelerate the phase-out of coal-fired power plants, JETPs first gained attention at COP26 with the announcement of the Just Energy Transition Partnership with South Africa, an $8.5-billion venture between the governments of South Africa, the United States, the United Kingdom, France, Germany, and the European Union. Since then, several other countries have expressed interest in their own JETPs, presenting an opportunity to drastically reduce global coal emissions. Nonetheless, while JETPs may represent an avenue for increased climate engagement with high-emitting emerging economies, they also face several key challenges moving forward.

Despite those challenges, JETPs bear the potential to represent a turning point in the climate finance agenda. By combining funding from several major Group of Seven (G7) donor countries, they not only offer substantial financial support to partner countries, but they also send an important political signal. To be sure, the sums under discussion only represent a fraction of the capital needed to reach the needed scale of investment to place these countries on a pathway that is compatible with the 1.5 degree Celsius target. Nevertheless, the hope is that they can lend additional momentum to ongoing reform efforts. 

Read more

EnergySource

Nov 4, 2022

Just Energy Transition Partnerships: Will COP27 deliver for emerging economies?

By Christopher Cassidy, Rainer Quitzow, and Maia Sparkman

The JETP model is poised to deliver results in South Africa. Now, at COP27 and beyond, the true test will be translating the model to other country contexts.

Energy & Environment Energy Markets & Governance

NOVEMBER 4, 2022 | 9:30 AM WASHINGTON | 4:30 PM SHARM EL SHEIKH

The West must rethink its development strategy to help electrify the African continent

By William Tobin and Maia Sparkman

Electricity access in Africa is in a dire state, and progress is being reversed. Outside of North Africa, around half of the population is electrified, and the electrification rate has decreased by 4 percent since 2019. 

This problem is self-perpetuating. When energy infrastructure is weak, there is less signal to invest as individual projects are less viable and are deemed riskier, particularly by the private sector, which has historically provided around 10 percent of infrastructure funding across the continent. Infrastructure, in this sense, should be expanded beyond the state of electricity grids or gas pipelines to include public services such as trained utility workers, water resources, public safety and security forces, and much more.

It is becoming clearer that the paradigm of “aid,” which has underpinned Western countries’ development strategies in the African continent, is increasingly insufficient. Providing aid alone to African nations will not provide the tools and enablers of self-sustaining, endogenous growth. For that, the continent needs investment, not just aid

Read more

EnergySource

Nov 4, 2022

To meet energy security and climate goals, Africa needs investment in infrastructure

By William Tobin, Maia Sparkman

To this point, Western engagement in Africa has primarily taken the form of aid. For the continent to achieve widespread electrification and form the foundation for robust economic growth, that engagement will need to morph into investment and partnership.

Africa Energy & Environment

NOVEMBER 3, 2022 | 9:00 AM WASHINGTON | 4:00 PM SHARM EL SHEIKH

What leaders at COP27 should take away from the World Energy Outlook

By Emily Burlinghaus

The International Energy Agency World Energy Outlook (WEO), released last week, is historic in its first-ever presentation of a scenario where fossil fuels peak or plateau based on prevailing policy settings. But despite the cause to celebrate, the global transition to net-zero carbon emissions remains precarious. Developing countries are most vulnerable to the effects of both climate change and capital and resource restrictions. Meanwhile, global conflict and supply chain disruptions threaten national efforts to ensure food security, meet energy demand, and deploy resilience and adaptation measures. The WEO serves as a roadmap for where and how countries can allocate money at COP27 to maximize impact and ensure that no country is left behind.

EnergySource

Nov 3, 2022

The IEA World Energy Outlook 2022 highlights climate finance needs ahead of COP27

By Emily Burlinghaus

The new IEA World Energy Outlook 2022 should be used as a roadmap at COP27 for the allocation of climate-oriented resources. Doing so would better enable developing nations to ride the wave of interest in clean technologies amid the global energy crisis and share in the benefits of the transition.

Climate Change & Climate Action Energy & Environment

NOVEMBER 1, 2022 | 10:04 AM WASHINGTON | 5:04 PM SHARM EL SHEIKH

How Europe can reclaim international climate leadership at COP27

By Michał Kurtyka and Paddy Ryan

COP27 will be uncomfortable for Europe. The continent’s energy crisis following the Russian invasion of Ukraine has upended the lofty objectives set at COP26. In Glasgow, the European Investment Bank and over a dozen European states pledged to cease financing fossil fuel projects abroad. Now, Europe is scouring the globe for new gas supply, pricing out poorer nations while maintaining opposition towards their development of reserves for domestic use. Europeans stand accused of climate hypocrisy, charges likely to be echoed at a COP notable for taking place in Africa.

Europe needs gas, and will for some time. The continent must reconcile short-term efforts to source new imports with long-term climate ambitions. Through more constructive gas diplomacy with the developing world and by accelerating domestic decarbonization, Europe can begin to repair its damaged climate credibility in Sharm el Sheikh. Doing so, Europe can reclaim international climate leadership by advancing low-carbon, energy-secure growth with partners in Africa and the developing world.

EnergySource

Nov 1, 2022

How Europe can salvage its climate credibility at COP27

By Michał Kurtyka and Paddy Ryan

Europe’s recent energy policies have begotten accusations of climate hypocrisy, as the continent blocks access to financing for gas projects in developing countries yet scours those countries for gas supplies for its own use. At COP27, Europe can—and should—responsibly reconcile those contradictions.

Climate Change & Climate Action Energy & Environment

NOVEMBER 1, 2022 | 4:00 PM WASHINGTON | 11:00 PM SHARM EL SHEIKH

Will the West’s competition with China get in the way of a clean-energy future?

By Joseph Webster and William Tobin

China uneasily straddles both sides of the energy transition. On the one hand, China is indisputably a world leader in numerous clean energy technologies, including electric vehicles, renewable generation, and supply chains. On the other hand, it is also the world’s largest carbon emitter and coal producer, and is constructing over half of the world’s new coal-powered electricity plants. With Western-China tensions rising and Beijing increasingly focused on energy security, there is a shrinking scope for climate cooperation. Perversely, however, US-China political competition could deliver climate benefits, as both sides will face pressure to provide clean energy leadership at COP27 and beyond.

At COP27, Western leaders will need to grapple with the emerging reality that two competing climate camps may be forming, one led by the West and another by China.

Not only will this dynamic unfold as a competition between economies in China and the West, but as a paradigm of global engagement and investment on climate mitigation and adaptation, particularly with respect to engagement with the developing world. For instance, in Africa, China’s trade volumes exceeded the United States’ by a factor of four. Moreover, China has not shied away from financing fossil fuel projects that rank high on the priority list of less developed countries with limited energy access. This has been welcomed by many African nations, as 43 percent of all people on the continent do not have access to modern energy services.

As the developing and developed world seek to resolve key issues on the agenda at COP27 such as loss and damages, closing the climate finance gap, and financing for natural gas projects in Africa, Western leaders will need to keep in mind that competition with China is likely to become a more prominent feature of climate negotiations.  

Read more

EnergySource

Nov 1, 2022

China’s energy security realities and COP27 ambitions

By Joseph Webster, William Tobin

China will enter COP27 firmly playing both sides of the energy transition. The country is a global leader in clean technologies, but it is also pouring money into new coal plants and production. Beijing may have to choose between its climate aspirations and its coal realities to compete successfully with the West.

China Energy & Environment

OCTOBER 13, 2022 | 8:28 AM WASHINGTON | 3:28 PM SHARM EL SHEIKH

Cairo’s next steps forward on climate adaptation and human rights at COP27

By Shahira Amin

Skeptics are questioning Egypt’s leadership of COP27, citing human rights concerns and unideal environmental policies. Others are doubtful about the choice of Sharm el Sheikh as the host city. They argue that the holiday resort may not be the most suitable venue for a global conference of this magnitude and scale, given the logistical, organizational, and managerial challenges of hosting such a gathering. 

Nevertheless, the opportunity to host COP27 has incentivized Cairo to take steps forward in regard to climate adaptation and human rights, even if a lot more needs to be done to show that authorities are serious about political and environmental reforms. Meanwhile, continued financial and moral support from the United States and other development partners—and further scrutiny of human rights violations committed—would ensure there’s no backtracking on the country’s progress in the past year. 

Cairo needs to keep the momentum going and show that it is actually committed to continuing the progress made so far. To do this, it needs to speed up its green transition, taking steady and concrete steps to lower its emissions and shift towards renewables. Moreover, Cairo needs to free all political detainees, many of whom are imprisoned for nothing more than exercising their right to free speech and free expression. By doing so, it can expect to reap the rewards of its serious efforts: greater support from the international community and prosperity and stability for Egypt and all Egyptians.

Read more

MENASource

Oct 13, 2022

Egypt has made some progress on human rights and the environment in preparation for COP27. But there’s still more to be done.

By Shahira Amin

Skeptics are questioning Egypt’s leadership of the climate talks, citing human rights concerns and unideal environmental policies.

Economy & Business Energy & Environment

SEPTEMBER 22, 2022 | 8:28 AM WASHINGTON | 3:28 PM SHARM EL SHEIKH

What Egypt’s COP presidency means for how this conference may play out

By Lama El Hatow

Egypt has a huge role to play during its presidency of COP27, as all eyes will be geared towards how the country can lead by example. To put things in perspective, with 1.3 percent of the world’s population, Egypt accounts for only 0.6 percent of global greenhouse gas emissions (GHG) and ranks twenty-eighth on the global list of polluters. This number appears to be relatively small from a global perspective. Regionally, however, Egypt contributes 31 percent of the overall GHG emissions from North Africa and 13 percent of the overall GHG emissions from the entire African continent. Thus, Egypt has a great responsibility to establish a pathway towards a green energy transition.

This year, Egypt’s presidency for COP27 is very important as a middle-income, African, and Middle Eastern country hosting this event. Egypt may, therefore, be able to influence the agenda items and bring more focus to Africa’s increasing needs for adaptation and mitigation financing.

There are four main items at the top of the agenda: climate finance, adaptation, loss and damage, and increased ambition. Egypt has a significant role to play in all of them.

Read more

MENASource

Sep 22, 2022

Egypt is hosting COP27. What are the expectations?

By Lama El Hatow

As the host country for the 2022 United Nations Climate Change Conference, Egypt has a huge role to play during its presidency of the event, as all eyes will be geared towards how the country can lead by example.

Energy & Environment Middle East

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Kurtyka, Ryan quoted in Clean Energy Wire on the European presence at COP27 https://www.atlanticcouncil.org/insight-impact/in-the-news/kurtyka-ryan-quoted-in-clean-energy-wire-on-the-european-presence-at-cop27/ Fri, 04 Nov 2022 19:02:05 +0000 https://www.atlanticcouncil.org/?p=583569 The post Kurtyka, Ryan quoted in Clean Energy Wire on the European presence at COP27 appeared first on Atlantic Council.

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CBDC Tracker cited by CoinTelegraph on the low adoption rate of Nigeria’s eNaira CBDC. https://www.atlanticcouncil.org/insight-impact/in-the-news/cbdc-tracker-cited-by-cointelegraph-on-the-low-adoption-rate-of-nigerias-enaira-cbdc/ Fri, 04 Nov 2022 18:56:16 +0000 https://www.atlanticcouncil.org/?p=582909 Read the full article here.

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Read the full article here.

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What to watch next on Ethiopia’s peace deal in Tigray https://www.atlanticcouncil.org/blogs/new-atlanticist/what-to-watch-next-on-ethiopias-peace-deal-in-tigray/ Fri, 04 Nov 2022 18:17:08 +0000 https://www.atlanticcouncil.org/?p=582786 What are the chances that this deal will hold? What role should international institutions play? Our regional experts help sketch out the answers.

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This week, negotiators from the Ethiopian government and rebels in the Tigray region reached a truce to end their two-year war—one that has killed hundreds of thousands of people through fighting and starvation, and included accusations of war crimes. With the Tigrayan People’s Liberation Front (TPLF) reportedly agreeing to lay down its arms and the government agreeing to restore essential services to its battered northern region, what are the chances that this deal will hold? What role should international institutions play? Our regional experts help sketch out the answers.

1. What do you make of this peace deal, and what should we be watching to see if it holds?

Less than forty-eight hours before the two-year anniversary of the conflict, it is a step forward that has created great hope. It is also a salutary break for the civilian populations after almost two years of conflict. Since November 2020, the war has displaced more than two million Ethiopians and plunged hundreds of thousands into famine. But this agreement is not yet peace: It is the cessation of hostilities. The composition and determination of the members of the committee responsible for the implementation of the agreement will be decisive. Above all, major questions remain unresolved, including the question of Eritrea. The neighboring nation’s role in the peace deal is not clear after it joined the war on Ethiopia’s side, which is cause for concern considering all the crimes Eritrean soldiers have committed in Tigray over the past two years. Can there be peace without justice? This is the question that Tigrayan civilians must ask themselves these days.

Rama Yade is senior director of the Council’s Africa Center.

The peace deal is excellent news; bringing an immediate end to this particularly cruel war is good for everyone. It remains to be seen, however, if the Tigrayans will uphold their promise to disarm, and if the Ethiopians will open access so that aid organizations can bring desperately needed help to civilians. We also have to watch the actions of the Eritreans, who are a party to the conflict but have not been included in the peace deal. Are they going to suspend their military operations? Will they go home and demobilize?

Michael Shurkin is a nonresident senior fellow at the Africa Center.

2. What role will outside countries in Africa or the West, or institutions such as the African Union and United Nations, need to play going forward? What guidance would you give them?

This is a success for African Union head and Senegalese President Macky Sall, former Nigerian President Olusegun Obasanjo, and South African President Cyril Ramaphosa, who all helped broker the deal. The implementation of the road map will be crucial. While the agreement claimed that TPLF combatants will be “disarmed, demobilized, and reintegrated,” fighting has been continuing in Tigray, where Ethiopian federal troops, backed by the Eritrean army and forces and militias from the neighboring Amhara and Afar regions, have been advancing since mid-October.

—Rama Yade

The West and international organizations like the UN and AU can play a vital role in monitoring the three sides of the conflict (the third being Eritrea) and holding them accountable. They of course need to be balanced, but that does not mean they can’t be tough—they shouldn’t pull their punches.

—Michael Shurkin

3. How can and should Ethiopian Prime Minister Abiy Ahmed move forward with governing the country as a whole? What kind of mark does this conflict leave for him?

Among the main points of the declaration signed by the Ethiopian government and the TPLF, the two sides committed to “safeguard the sovereignty and territorial integrity of Ethiopia” and “restore constitutional order in the Tigray region.” This is a fundamental question. It is up to Abiy to prove that the Nobel committee was not wrong by awarding him its most prestigious recognition: The Peace Prize.

—Rama Yade

Abiy has to try to calm militants on all sides and ensure that everyone benefits from what should come next: reconstruction and development. On a regional level, a successful end to the war does not resolve other issues such as Ethiopia’s development of the Grand Ethiopian Renaissance Dam, which Egypt and to a lesser extent Sudan oppose. That was put on the back burner because of the war but may now return to the fore.

—Michael Shurkin

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To meet energy security and climate goals, Africa needs investment in infrastructure https://www.atlanticcouncil.org/blogs/energysource/to-meet-energy-security-and-climate-goals-africa-needs-investment-in-infrastructure/ Fri, 04 Nov 2022 13:30:00 +0000 https://www.atlanticcouncil.org/?p=581721 To this point, Western engagement in Africa has primarily taken the form of aid. For the continent to achieve widespread electrification and form the foundation for robust economic growth, that engagement will need to morph into investment and partnership.

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Electricity access in Africa is in a dire state, and progress is being reversed. Outside of North Africa, around half of the population is electrified, and the electrification rate has decreased by 4 percent since 2019. Where electricity is available, consumption is well below the global average—with the average consumer using less than 200 kWh, less than what is needed to power a modern refrigerator—due to frequent brownouts, blackouts, and loadshedding.  Even in sub-Saharan Africa’s industrial powerhouses of Nigeria and South Africa, electricity grids are frequently incapable of supporting existing generation resources, and are thus incapable of meeting demand. Nigeria, a nation of 206 million, has a power generation capacity of approximately 12 gigawatts (GW). For comparison, Brazil has a generation capacity of 181 GW, with a population of 212 million. Of Nigeria’s 12 GW of total capacity, Nigeria’s grid infrastructure cannot accommodate more than 4 to 5 GW of generation capacity at any given time. This is just one reason for the lack of electricity access experienced by 43 percent of the population of Nigeria. 

This problem is self-perpetuating. When energy infrastructure is weak, there is less signal to invest as individual projects are less viable and are deemed riskier, particularly by the private sector, which has historically provided around 10 percent of infrastructure funding across the continent. Infrastructure, in this sense, should be expanded beyond the state of electricity grids or gas pipelines to include public services such as trained utility workers, water resources, public safety and security forces, and much more.

It is becoming clearer that the paradigm of “aid,” which has underpinned Western countries’ development strategies in the African continent, is increasingly insufficient. Providing aid alone to African nations will not provide the tools and enablers of self-sustaining, endogenous growth. For that, the continent needs investment, not just aid

Investment in African nations is not a question of charity. It is increasingly a matter of global economic—as well as ethical—importance. Higher levels of GDP are correlated with greater electricity use, affordability, access, and reliability. The African population is the youngest and fastest-growing of all continents, and thirteen of the world’s largest twenty urban areas are projected to sit in Africa by the end of the century. As occurred in China over the past forty years, Africa’s young and growing population can provide the globe with a capable labor force, along with industrialization for the modern era that can drive job creation and opportunity in African communities while spurring global economic growth.

Placing the chicken before the egg?

Africa’s energy infrastructure is plagued by longstanding underinvestment. In the past decade, the continent received investment of about $41 billion in the energy sector. This number is low in absolute terms, and when compared to the rest of the world, represents only 3 percent of global energy investment. More startling, however, is the fact that 99.5 percent of energy investment on the continent was routed to energy generation. Only the remaining 0.5 percent was routed to transmission and distribution networks. Turning to the World Bank, between 2010-2020, 7.5 percent of the bank’s electricity infrastructure investment went to sub-Saharan Africa, with 98.2 percent going towards generation and 0.3 percent for transmission. 

This underinvestment perpetuates existing problems, including low cost-recoverability and low revenues for utilities, and high project costs for new generation assets. Coupled with sky-high and rising interest rates in African countries such as Ghana, where the benchmark bank rate is 17 percent, poor energy infrastructure makes the risk premium high for new investors.

Untapped potential

The ultimate result is that despite increased focus on the issue of energy poverty facing the continent, infrastructure deficits hinder efforts to increase energy generation and distribution throughout the continent. Fortunately, the continent is rich in both natural gas and renewable resources to power the continent’s industrial revolution, address energy poverty, and spur economic growth, as long as the continent is provided investments at the scale needed to recognize this untapped potential.

Under the IEA’s Sustainable Africa Scenario (SAS), the model assumes that the annual investment in electricity grids more than triples in the 2026-30 timeframe, reaching $40 billion per year on average, with distribution networks accounting for over two-thirds of the total. However, achieving these annual investments is far from simple. Today’s existing financing mechanisms are insufficient for investments in large-scale energy generation, transmission, and distribution infrastructure projects. 

This does not bode well for the prospects of reaching the SAS’s $40-billion-per-year target, given that development banks and governments will need to step in to bridge the risk premium inherent in new investment on the continent. Despite the urgent need to invest, investment risk is high. But the only way to resolve this cycle will be to mobilize the capital necessary for the buildout of infrastructure which can sustain growth of more projects and more infrastructure. 

African governments will also need to step in to reform regulatory environments to build investor confidence, committing to both regulatory certainty and transparency in electricity markets. The SAS prioritizes regulatory reform to meet the continent’s energy goals, with a particular focus on cost-of-service electricity pricing reforms. To date, twenty-four countries in Africa have put such reforms in place or are under discussion to implement. Close coordination, collaboration, and transparency between African governments and utility companies will also be crucial to enhance cross-border interconnection.

Expanding engagement

On the matter of roads, ports, and railways, China has been Africa’s largest partner in developing infrastructure by far in the past 20 years. In fact, US influence in the region is waning, and trade between the United States and Africa decreased 55 percent from 2008 to 2021, to a sum of $64 billion. Africa’s trade with China in 2021 stood at $254 billion. As a response, President Biden and other G7 leaders announced the Partnership for Global Infrastructure Investment to mobilize $600 billion by 2027 for sustainable infrastructure developments in emerging markets, and to take steps to closing the financing gap. One of the four priority pillars included in this MOU is the commitment to build climate-resilient infrastructure, transform energy technologies, and develop clean energy supply chains. 

The US Development Finance Corporation (DFC)—the US government’s main tool to catalyze global infrastructure investments—is primarily designed to mobilize private capital for investment-ready projects, which are in short supply in Africa. The current structure of the DFC is insufficient in meeting the scale of infrastructure investments needed in low-income nations where it is most needed. In recent years, several public investment initiatives have emerged to crowd in, de-risk, and catalyze private investment in Africa. These include the African Development Bank’s New Deal on Energy for Africa and Desert to Power Initiative, USAID’s Power Africa, the Green Climate Fund, and CDC Group’s Gridworks Partners. Utilizing these initiatives to successfully mobilize private investment in energy infrastructure will be crucial in achieving the deployment of enabling infrastructure at scale.

Leveraging newfound attention to benefit African communities

Russia’s unprovoked war in Ukraine has sent Europeans scrambling to African capitals to identify new energy sources and completely rework European energy flows. In May, German Chancellor Olaf Scholz visited Senegal, where a significant gas deposit has been discovered along Senegal’s border with Mauritania; Italy has signed gas deals with Angola and the Republic of the Congo since the start of the war; and President Andrzej Duda of Poland visited the Ivory Coast to sign a Memorandum of Cooperation on exporting energy supplies from Nigeria to Poland. President Macky Sall of Senegal, the present chair of the African Union, has also hosted delegates from Europe to discuss the bloc’s need for resources.

Europe has expressed more interest than ever before in African energy resources as the bloc weans itself off Russian gas. However, an outstanding question remains: will Europe invest and support downstream infrastructure for Africans to benefit from their own resources, or will Europe’s willingness to invest only go so far as to secure gas exports for Europeans?

Europe’s elevated interest in the region as an energy provider might be a signal that investors have been waiting for to unlock significant investment to build out the needed energy infrastructure throughout the African continent which would allow African communities to use their own resources to expand energy access. Before Russia’s war in Ukraine, there was growing tension between African leaders advocating for the continent’s right to exploit its energy resources to industrialize and develop. Tensions grew stronger as the United States and the European Union (EU) blocked financing opportunities for fossil fuel projects abroad. However, since the war in Ukraine, both the European Union and the United States have eased up on this position, with the United States even including “gas for power” in its “US Strategy Towards Sub-Saharan Africa“ released in August 2022, recognizing the role of gas to support Africa’s development efforts.

Aligning with African leadership

African leaders from resource-rich nations have vocally opposed restrictions towards financing gas infrastructure. Speaking on a panel in Dakar in September, H.E. Bruno Jean-Richard Itoua, Minister of Hydrocarbons of the Republic of the Congo, said the following: “For the next 25 years we will see energy demand growing. We cannot face this demand without gas.”  In September, African Ministers of Finance, Economy, and Environment gathered to ensure coherence and prioritize actions in the lead up to COP27. From this convening, the Ministers underscored “the need to avoid approaches that encourage abrupt disinvestments from fossil fuels, as this will, in addition to the impacts of climate change, threaten Africa’s development due to the unintended impact on jobs, the economy, energy, food security, and the ability to mobilize finance.” Transatlantic policymakers must recognize that African nations strongly desire to utilize their resources to achieve development goals.

Whether the buildout of downstream infrastructure is for gas or transmission to carry the electrons produced by renewables, there is strong demand for an increase of investment in all forms of enabling infrastructure to achieve the UN’s Sustainable Development Goal 7—access to affordable, reliable, and sustainable modern energy for all—and remain on the path towards a low-carbon future. Given recent developments including the G7 committing to support infrastructure developments in emerging markets, Europe turning to Africa to secure energy resources, and African leaders advocating for a just energy transition, there is significant opportunity for developed nations to invest in usable ”downstream” infrastructure to recognize the African continent’s important role as a respected partner to address climate change and energy security. After all, emerging global actors and competitors, such as China, have long been doing exactly that.

William Tobin is a program assistant at the Atlantic Council Global Energy Center.

Maia Sparkman is an assistant director at the Atlantic Council Global Energy Center.

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A new Europe-MENA energy interdependence: The role of hydrogen https://www.atlanticcouncil.org/blogs/energysource/a-new-europe-mena-energy-interdependence-the-role-of-hydrogen/ Wed, 02 Nov 2022 13:30:00 +0000 https://www.atlanticcouncil.org/?p=581297 A deeper Europe-MENA relationship could aid a secure transition in Europe and create lucrative low-carbon export opportunities and industries in North Africa. Hydrogen could be the cornerstone of these new ties, and COP27 could be the perfect forum to develop them.

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The war in Ukraine has created significant momentum for the European Union (EU) to diversify its energy sources and become independent from Russian oil and gas. In the short term, some of its major member states are striving to secure alternative supplies—mostly from the MENA region, the United States, a few African countries, and Azerbaijan—by increasing gas supplies both via existing pipelines and through LNG shipments.

However, the EU faces the challenge of establishing a new model of energy security, stable over the longer term and in line with its ambitious climate goals, as detailed in the EU Green Deal and in Fit for 55.

Even before the COVID and Ukraine crises, the idea of forging a new model of energy interdependence between the EU and North Africa was in the works, whereby the latter would be well suited to produce and export renewable energy, including green hydrogen. Vice President of the European Commission Frans Timmermans has consistently been a staunch advocate of such a vision.

For their part, several MENA countries have supported substantial growth over the last few years in the development of renewables, blue and green ammonia, and blue and green hydrogen in particular.

COP27 will likely provide additional impetus for renewed debates and initiatives in this field, with a view to promoting further investments in renewable energy in the MENA region as well as in interconnections with European markets.

Some exports of low-carbon products are already taking place by ship, as in the case of ammonia, a hydrogen-rich molecule that is often used in fertilizer but can also serve as a carbon-free fuel. Another way to transport hydrogen would be through existing gas pipelines, either blended with gas or on its own after conversion and refitting. North Africa and Europe are currently connected through a few gas pipelines, from Algeria and Libya to Italy and Spain.

There are also proposals, among some regional and international investors, on future development of dedicated hydrogen pipelines. According to some visions, even Saudi Arabia could be connected to Europe through this channel.

Another tactic for further strengthening EU-MENA energy cooperation would rely on interconnectors that convey renewable electricity. Egypt, Cyprus, and Greece have been working on such a project for some time, as have Italy and Tunisia.

Such models are not mutually exclusive, as diversification among them would bolster energy security.

There are, however, hurdles on the path toward such a new pattern of interdependence, especially in terms of the structure of expected demand for green hydrogen, the costs of production, and the scale of the investments required.

A recent report from the International Energy Agency (IEA) and other agencies highlights that to achieve a Paris-aligned pathway on a global scale, the supply of renewable and low-carbon hydrogen would need to increase from less than 1 million tons per year in 2020 to 140-155 million tons per year in 2030. This implies that production capacity would need to double every year from 2023 to 2030. In parallel, the production cost of renewable hydrogen would need to fall by 40-55 percent over the course of this decade, to almost $1 per kilogram in the most favorable locations.

According to the same source, the scale of investments required globally is equally enormous: “Hydrogen deployment consistent with a 1.5ºC-aligned pathway will require an annual investment of around USD 60-130 billion through to 2030, relative to the less than USD 1 billion invested annually, on average, over the last decade.”

However, the vicious circle of demand creation might be broken, on a regional scale, by the EU itself, as implied most recently by the REPowerEU plan. The proposal includes a production target of 10 million tons of green hydrogen by 2030 within the EU and the import of an additional 10 million tons through three corridors, one of which would run through the Mediterranean.

The scale of investments required globally is huge indeed: some sources estimate $7-8 trillion across the hydrogen value chain will be needed through 2050. This figure, however, would be comparable to investments of $5.7 trillion made in upstream oil and gas in the past decade.

Research and innovation in technology would most likely lead to a reduction in the costs of production, especially for electrolyzers. Several scenarios have been propounded on the possible evolution, throughout the current decade, of electrolyzer cost and of hydrogen transport. Under certain conditions that would lead to a decrease in costs, importing renewable hydrogen from North Africa by 2030 could become an economically attractive option for Europe.

Transport of renewable hydrogen (as complementary to onsite production) is a key factor in its future potential. Much will depend on renewable electricity generation cost differences and on the volume of investments required for developing adequate infrastructure (repurposing of pipelines, compressors, storage capacity, etc.). According to some analyses, for distances up to 3,000 kilometers, compressed hydrogen gas appears to be the cheapest option, particularly in the case of pipelines.

The plans underway throughout the MENA region are encouraging, even in light of continued insistence by some countries in the region to sustain new investments in oil and gas.

In the end, North African countries would have much to gain from a new energy interrelationship with Europe, with the possibility of retaining part of the production for their own markets and of benefiting from job creation, skills development, know-how, and a transition to a low-carbon economy.

The time has come for the governments of the wider Mediterranean, besides the EU institutions, to play a more active role, by developing an appropriate regulatory framework, optimizing public and private resources, and designing a long-term strategy of energy partnership with the aim of achieving broader goals of stability, growth, and transition to carbon neutrality by mid-century.

COP27 should provide the appropriate context for further advancing the development of renewable energy in all its aspects, including research, infrastructure, and transport modalities, as well as production. Climate goals can only be achieved on the basis of concrete plans and investment decisions, which should be be made as early as possible.

Giampaolo Cantini is a nonresident senior fellow at the Atlantic Council Global Energy Center.

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Lipsky quoted in Bloomberg on CBDCs https://www.atlanticcouncil.org/insight-impact/in-the-news/lipsky-quoted-in-bloomberg-on-cbdcs/ Wed, 26 Oct 2022 21:09:20 +0000 https://www.atlanticcouncil.org/?p=579728 Read the full article here.

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Read the full article here.

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