Economics & Global Affairs

In this Q&A, Joseph S. Nye talks about his advice for the interim and future president of Harvard in the wake of Claudine Gay's resignation, which countries should be highest on our radar to prevent the threat of nuclear war, what role the U.S. should play in the Russia-Ukraine war, the significance of U.S. alliances in the Middle East, and more.

Stephen Walt outlines how Washington and Beijing could stop the war in Ukraine.

Joseph Nye analyzes the causes of Russia's decision to invade Ukraine.

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?

Joseph S. Nye writes that If there is one person other than Vladimir Putin who can end Russia's war in Ukraine, it is Chinese President Xi Jinping. But Xi has so far remained on the sidelines and is likely to stay there, owing to various domestic political vulnerabilities and his own lack of courage and imagination.

The surprising potency of the multilateral sanctions imposed on Russia has been exceeded only by that of Ukrainians’ resistance to Russia’s invasion of their country. True, it is difficult to imagine that sanctions will bring the Russian economy to its knees faster than Russian troops are able to capture Kyiv or lay waste to the country. But, ultimately, Russia will lose much in this war.

 

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.

Will China succeed in what some call its grand strategy of displacing American power? Whichever scenario emerges also depends on the strategy the US chooses in response, rites Joseph Nye.

Russian military action in Ukraine could trigger an energy crisis even more serious than the one already hitting Europe. As has been pointed out, should the West hit Russia with severe new sanctions, President Vladimir Putin could cut off natural gas exports, leaving the continent shivering through midwinter. Yet there is another potential weapon of Russia’s that’s been less discussed and might be very effective: An ability to disrupt global oil markets, which would directly hit U.S. consumers.

Despite the far-reaching effects of the current pandemic,  the essential nature of world politics will not be transformed. The territorial state will remain the basic building-block of international affairs, nationalism will remain a powerful political force, and the major powers will continue to compete for influence in myriad ways. Global institutions, transnational networks, and assorted non-state actors will still play important roles, of course, but the present crisis will not produce a dramatic and enduring increase in global governance or significantly higher levels of international cooperation. In short, the post-COVID-19 world will be less open, less free, less prosperous, and more competitive than the world many people expected to emerge only a few years ago.