Asia & the Pacific

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?

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?

In the past, strategic surprise has often stemmed from a failure of imagination. Most intelligence failures are rooted in a lack of foresight or early warning of impending events. Blue sky thinking seeks to prevent these surprises by devoting more attention not just to known risks and likely scenarios, but also to low probability, high impact events. In an unprecedented step in forging ongoing global collaboration, 129 global experts gathered in Amman, Jordan, in December 2021. The conference was held under the auspices of Jordan’s Aqaba Process and facilitated by representatives from the Harvard Kennedy School Belfer Center’s Intelligence Project. Attendees included intelligence officers, diplomats, military officers, private sector practitioners, and academics representing 29 countries, 5 continents, and 68 government and private sector organizations. Through presentations and discussion under Chatham House Rules, the conference facilitated an open exchange of ideas on the possible next big threats from terrorism and on strategies for moving forward.

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.

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

What sounded so simple during last year’s presidential campaign has turned out, like everything related to Iran, to be quite complicated.

The first 100 days are key to understanding where any presidency is going. Now more than a third of the way into that timeframe, how is President Joe Biden doing in the international policy arena? The World’s host Marco Werman speaks with Nicholas Burns, a former US under secretary of state for political affairs and a former ambassador to NATO.

As Joni Mitchell sang, “you don’t know what you’ve got ‘til it’s gone.”   Classroom education was often deemed boring by students and obsolete by tech visionaries.  Then the coronavirus made it difficult or impossible to meet in person.  The result:  We yearn for the irreplaceable in-class experience.
Perhaps the same is true of international economic cooperation. It was never especially popular. The theory, first formulated in a 1969 paper by Richard Cooper, said that countries could agree to coordinated bargains that achieved better outcomes, relative to the “Nash non-cooperative equilibrium.”  But economists thought of plenty of reasons to be skeptical.  The multilateral institutions of cooperation such as the World Trade Organization, the International Monetary Fund, and the United Nations agencies, were downright unpopular among the public.  Many Americans regarded them as invading US sovereignty, while other countries viewed them as an invasion of their sovereignty by the US.

Like the Joni Mitchell song puts it, “You don’t know what you’ve got ’til it’s gone.” For example, classroom education was often deemed boring by students and obsolete by tech visionaries. Then, Covid-19 made it difficult or impossible to meet in person. Now we yearn for in-class experiences.

Perhaps the same is true of international economic cooperation. Multilateral institutions such as the World Trade Organization, the International Monetary Fund, and the UN agencies have long been unpopular among much of the public for supposedly encroaching on national sovereignty. But then Donald Trump came along and made international cooperation well-nigh impossible. While other G20 leaders discussed pandemic preparedness at their recently concluded summit, for example, Trump evidently tweeted more false accusations of electoral fraud and then played golf.

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.