Research

Joseph Nye considers lessons from his own work on preventing the spread of nuclear technology in the 1970s.

During foreign policy disputes involving China and some of its most important commercial partners, why do local leaders punish or protect foreign commercial actors? The decision comes down to the political incentives facing each local leader. Understanding this variation is important because how local leaders treat foreign businesses can influence the overall effectiveness of the Chinese government’s economic coercion against foreign states. 

Power transitions affect a state’s ability to exercise economic statecraft. As a dominating and a rising power approach parity, they face structural incentives to decouple their economies. This decoupling affects business-state relations: high-value businesses within the dominant power tend to oppose their state’s economic statecraft because of its costs to them, whereas low-value businesses within the rising power tend to cooperate because they gain from it. 

This year's G7 summit in Hiroshima sees nuclear disarmament and non-proliferation sitting high on the agenda, amid rising tensions between the nuclear states and an increasingly divided international order.  Six contributors offer their analyses, including the Belfer Center's Mayumi Fukushima.

Earlier this month, South Korean President Yoon Suk-yeol set off alarms. In an off-the-cuff remark, he warned that Seoul might need to develop nuclear weapons—or demand redeployment of U.S. nuclear arms to the Korean Peninsula—to counter North Korean nuclear threats. In doing so, Yoon spotlighted a popular view once reserved for hawkish commentators, defense intellectuals, and former military officials. Keeping nuclear weapons out of South Korea will ultimately be a U.S. responsibility that requires addressing both the deteriorating security environment and the domestic drivers underlying Yoon’s statement.

Economic interdependence has long been considered important to international peace. Questions about harmful effects of the free flow of capital, however, are arising. China and Organization for Economic Co-operation and Development countries are increasingly involving their business firms in security and intelligence work, causing a security dilemma dynamic that increases economic competition.

For many, integrating “decarbonization” into public policy, corporate and financial strategies has become a requirement, not an option — yet, what happens when the critical link between climate stability and decarbonization breaks?

Capital Choices analyzes the creation of different SWFs from a comparative political economy perspective, arguing that different state-society structures at the sectoral level are the drivers for SWF variation. Juergen Braunstein focuses on the early formation period of SWFs, a critical but little understood area given the high levels of political sensitivity and lack of transparency that surround SWF creation. Braunstein’s novel analytical framework provides practical lessons for the business and finance organizations and policymakers of countries that have created, or are planning to create, SWFs.

States frequently acquire proof that other states have violated norms. Yet, existing theories do not fully explain how states wield such proof to coerce wrongdoers. Four case studies of nuclear proliferation probe a novel theory of how states coerce norm violators by concealing, sharing privately, or publicizing proof of guilt.

Wedge strategy theory explains how states use strategic arms control to divide adversaries by affecting their trust, threat perceptions, and beliefs about a commitment’s trade-offs. Examining three landmark arms control negotiations shows how the wedge motive was a key component to these negotiations.