Asia & the Pacific

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

The geopolitical implications of solar displacing oil as the world’s major source of energy are enormous. Why has the Middle East been a central arena in the “great game” for the past century? Because countries there have been the major suppliers of the oil and gas that powered 20th-century economies. If, over the next decade, photovoltaic cells that capture energy from the sun were to replace a substantial part of the demand for oil and gas, who will the biggest losers be? And even more consequentially: who will be the biggest winner?

To keep oil flowing and diminish the U.S., Beijing brokers a deal between Iran and Saudi Arabia.

President-elect Joe Biden’s decision to create a new cabinet-level position for climate-related issues — and to choose so prominent a figure as former Secretary of State John Kerry to fill it — demonstrates Biden’s sincerity over putting climate at the very center of U.S. foreign policy. It is easy to understate the importance of this appointment, given the flurry of czars created by most new administrations.

The world is on the cusp of a geopolitical reset. The global pandemic could well undermine international institutions, reinforce nationalism and spur de-globalization. But far-sighted leadership could also rekindle cooperation, glimmers of which appeared in the G-20’s offer of debt relief for some of the world’s poorest countries, a joint plea from more than 200 former national leaders for a more coordinated pandemic response and an unprecedented multinational pact to arrest the crash in oil markets.  

Henry Kissinger warns that many existing domestic and international institutions that have helped govern the past decades will not survive the Covid-19 crisis. He is surely correct.

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.