Energy

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.

Unilateralism and isolationism are making a comeback in the United States. Are Trump and his America First approach to the world a cause or a symptom? What are the ideological sources of the intimate connection between isolationism and the American experience? Will the COVID-19 pandemic undercut or deepen globalization? What impact will it have on U.S. grand strategy? The United States seems headed for an inevitable pullback of its global commitments. What should retrenchment look like? Can Americans find the middle ground between doing too much and doing too little?

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.

For months, the coronavirus has crawled across the globe. One person at a time, it has passed through millions, reaching every corner of the earth. And it has not only infected people, but every aspect of our human cultures. Policymakers and the public sector face their biggest test in generations—some say ever—as lives and livelihoods hang in a terrible, delicate balance. Facing health crises, economic collapse, social and political disruption, we try to take stock of what the pandemic has done and will do. We asked Harvard Kennedy School faculty, in fields ranging from climate change to international development, from democracy to big power relations, to tell us how this epochal event has changed the world.

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.  

Joseph Nye advises skepticism toward claims that the pandemic changes everything. China won't benefit, and the United States will remain preeminent.

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.

Given the ravages of the coronavirus crisis, the future of Europe cannot be one of permanent division between its northern and southern states.