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Vol 68, No 1 (2024)

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The world at the beginning of the millennium

GLOBAL TRADE: LONG-TERM TRENDS AND STRUCTURAL CHANGES

Varnavsky V.G.

Abstract

The paper considers long-term trends of global trade and there structural changes. We determine the elasticity of trade to GDP and the dynamics of the ratio of goods and services exports, as well as structural shifts in the major countries and regions of the world. The case study was focused on the USA–China trade relations and contradictions. Since 2007, PRC is the undisputed world’s largest exporter of goods. According to author’s estimates, in 2022 China was ahead of the United States in the total merchandise export by 1.5 trillion dollars. This corresponds to 6.3% of total world exports or 5.8% of US GDP. The trade war unleashed by former president D. Trump administration in 2018–2019 inevitably resulted in a decline in bilateral trade. However, this was just a temporary trend. The recent WTO statistics shows that US imports from China recovered by 2021 both in general volume and in the main categories of goods, both for intermediate and final consumption. Moreover, in 2022 its value, in particular for the analyzed commodity groups (aluminum, iron and steel) exceeded the indicators of 2017–2018. The author argues that, most importantly, there are long-term and fundamental implications of the trade conflict between the US and China rather than a transient decrease in mutual trade between the two flagships of globalization. In particular, it substantially exacerbated the protectionist biases in the international trade policies that became evident after the global financial crisis of 2008–2009. It triggered appearance of new rapidly rising actors at the international trade field such as India and Brazil. This points at major underlying shifts in the global production and supplies schemes. Basically, tensions between the two flagships of globalization produced much higher uncertainty in the global trade which, in the next decade, is unlikely to show the dynamics comparable to that of the period 2002–2008.
World esonomy and international relations. 2024;68(1):5-18
pages 5-18 views

China: domestic and foreign policy

“CHINESE COASTER”

Mikheev V.V., Lukonin S.A.

Abstract

In Ukraine, China continues to adhere to the policy of “neutrality benevolent towards Russia”, remaining “above the fray” and at the same time looking for its place in the conflict as a “mediator” that does not condemn Russia, but does not recognize the transfer of part of Ukrainian territories to Russia. However, in Chinese society and the expert community controlled by the Communist Party of China (CPC), the attitude towards the Ukrainian crisis is changing. If at the initial stage of Russia’s Special Military Operation (SMO) in Ukraine, pro-Russian sentiments prevailed in the context of the Taiwan problem: “Russia is doing well!”, “And we need it!” Today, the angle is different: “neither for Russia, nor against”, with the addition that “the situation in Ukraine interferes with the normalization of China’s relations with the West and, above all, with the EU”. At the same time, Beijing is still interested in Russia as the main factor of “pressure on the United States” in the Sino-American confrontation. China’s two-tiered approach to Ukraine and Russia was manifested in Beijing’s reaction to the “Wagner” PMC mutiny. The official authorities limited themselves to a short statement by the Chinese Foreign Ministry: “what happened is an internal affair of Russia”. At the same time, the situation around “Wagner” caused active discussions in Chinese social networks. Their main topics were the following: how stable the situation inside Russia is, how what happened can affect Sino-Russian relations, and the development of the SMO in Ukraine. In the past three months, Beijing has stepped up its foreign policy. High-level contacts were organized with the U.S. and the EU, conciliatory proposals were made to Japan and South Korea. However, this has not yet led to an improvement in relations, although, according to Beijing’s expectations, it may lay the foundations for normalization in the future. In other areas, progress was achieved where the PRC directed its financial resources – Latin America, Africa, Central Asia, Pakistan, Afghanistan, etc. Relations deteriorated with those countries which improved their ties with the United States – India and the Philippines. Despite some personnel changes the internal political situation remains stable. Xi Jinping’ promotion as China’s “chief ideologue” in the “newera” continues. Without exception, all CPC members study Xi’s writings on “socialism with Chinese characteristics in a new era” every day. At the end of June, Xi talked at a group study of the Party’s Central Committee members about “sinified Marxism”, the importance of combining “Marxism and Chinese civilization”. China’s main problems are in the area of the economy. According to foreign experts, China’s GDP growth rate is too low. Chinese analysts, on the contrary, believe that economic growth rates turned out to be moderately high compared to a low base in 2022. The PRC is starting to react more aggressively to U.S. sanctions. A set of laws has been formed that impose restrictions on foreign companies within China. At the same time, there is a belief in the country that foreign businesses interested in the Chinese market will themselves bypass U.S. restrictions.
World esonomy and international relations. 2024;68(1):19-30
pages 19-30 views

CHINESE-STYLE MODERNIZATION: EVOLUTION OF THE CONCEPT

Lomanov A.V., Borokh O.N.

Abstract

The concept of “Chinese-style modernization” formulated in the end of the 1970s has been at the center of attention of the Chinese leadership and researchers since the beginning of this decade. The notion of primacy of national characteristics was transformed from a former reference to China’s weakness and backwardness to current focus on development success. Explanations of plans for China’s “basic socialist modernization” by 2035 formed the channel of influence of official policy on the academic discussions. The article analyzes contemporary Chinese comparisons of Chinese and Western paths of modernization along with theoretical reflections on the patterns of “Chinese-style modernization”. The determination to make China’s experience a reference point for policy decisions in developing countries is connected with studies in modernization theory. The question of the correlation between the general patterns of modernization and the specifics of the Chinese path of development has come to the fore. The emphasis on the differences between Chinese-style modernization and Western and Soviet models substantiates the theoretical possibility of a new development perspective for other countries, and encourages them to develop independent modernization strategies based on their own national specifics. Chinese researchers consider attempts by backward countries to copy the advanced institutions of developed nations as useless and even dangerous. China’s modernization is not complete, in the field of economic development there are mounting difficulties related to lagging behind in science and technology, deteriorating external environment, slowing growth, ageing population. While examining Chinese studies of Chinese-style modernization, it is appropriate to focus on the development of academic concepts, quantitative evaluation system and discursive system. Explorations in theory will be determined by practical achievements, first of all, by China’s ability to maintain sustainable balanced growth of the economy. The preliminary outcome can be assessed in the middle of the next decade, when China plans to build the foundations of modernization. The final judgement on the effectiveness of Chinese-style modernization will be made only after the results of China’splans to become a world leader are known in the middle of this century.
World esonomy and international relations. 2024;68(1):31-47
pages 31-47 views

THE EVOLUTION OF THE CHINA’S POLICY OF INTERACTION WITH THE COUNTRIES OF CENTRAL ASIA IN THE FILD OF SECURITY

Perminova A.A.

Abstract

The geopolitical and geostrategic position of Central Asia and, in particular, oil and gas reserves, the potential of transit and communication routes have led to a new round of interest of the leading world powers in the countries of the region. At the same time, for the People’s Republic of China, which is usually considered as the main “creditor” of the Central Asian countries, interaction with the states of the region in the field of security becomes a priority. This article identifies changes in the PRC’s approaches to ensuring security in the states of Central Asia by studying the rhetoric of officials representing the relevant Chinese departments, as well as taking into account the chronology of the signing of relevant agreements between the Chinese side and the countries of the region, establishing and changing interaction formats. In addition, the content and scope of China’s military and military-technical cooperation with the countries of Central Asia are analyzed from 2001 to 2023. Concerning the data presented, a conclusion is made about the main regional factors that influenced the evolution of the PRC’s policy in the region in the field of security. Based on the proposed logic of the work, the author identifies several stages of the PRC’s policy towards building interaction with the countries of Central Asia. At the initial stage of interaction, China’s policy in Central Asia was determined by the need to protect its own borders and limit the spread of the “three forces of evil” from Central Asia to Chinese territory. In 2009–2010 the PRC is becoming an important economic partner of the countries of Central Asia, and the basis for the goal setting of its security policy is the protection of its transport, energy, infrastructure (or generally economic) projects. In the future, most of these projects will be complemented and expanded as part of the implementation of the Belt and Road initiative in the region. Since 2019 the PRC has added to the format of interaction with the countries the component of bilateral anti-terrorist exercises, which it conducts under the auspices of its own campaign “Cooperation‑2019”. At the present stage, the interaction of the PRC with the Central Asian countries in the field of security is formed under the influence of the “China + Central Asia” format, where there are no external players like Russia or India and Pakistan.
World esonomy and international relations. 2024;68(1):48-61
pages 48-61 views

Greater Middle East

LEADERSHIP IN THE ARAB WORLD: FROM REVOLUTION TO REDEFINION

Zvyagelskaya I.D.

Abstract

Leadership as a phenomenon of timeless significance has always been a subject of research interest. It is a special form of social process inherent in all social groups. In this sense, it is characterized primarily by mutual influence of the members of these groups, with one or several of them exerting a disproportionally larger influence on the choices and actions of the other parts of group. At the same time, personal qualities including leadership style and political motivation remain the central concept of political leadership theory. The emergence of new challenges and new requirements for leaders makes it necessary to consider the tools of influence they possess and employ as well as their ability to adapt to the changing internal and external environment. This article focuses on the leaders of the Arab states who came to power in different periods and represented different types of leadership. In the times of national liberation movements, these were revolutionaries, who overthrew outmoded regimes, promised their people a bright future and built it in their own way. At present, the “redefining” leaders (mostly represented by Gulf monarchs) attract the most attention. They have proved to be highly sensitive to the demands of the time, offering their own ways of responding to them. Both monarchs and republican leaders sometimes share similar cultural and historical identities that influence their methods of governance. For example, the Bedouin theme, which emphasizes the ruler’s closeness to his people and his task to take care of his tribesmen, has been accentuated by the Gulf monarchs and by some revolutionary leaders. The author believes that leaders capable of “redefining” are not necessarily a product of democratic systems. In authoritarian regimes, a new generation of rulers has also contributed to the revision of a number of well-established dogmas concerning the goals of social and national development. However, methods, as well as certain management practices used in the Arab monarchies, have been shaped by a mix of elements associated both with modernity and traditionalism.
World esonomy and international relations. 2024;68(1):62-73
pages 62-73 views

Economics, economic theory

GLOBALIZATION AND RUSSIA: DO WE NEED NEW PRIORITIES?

.

Abstract

This paper contributes to a discussion on globalization and its prospects. Authors argue that the existing definition of globalization is, at least, incomplete as it focuses too much on macroeconomic aspects while ignoring the role played by international businesses in global trade and investments. Linking globalization with production and distribution decisions made by multination companies would alleviate ambiguity surrounding populist proclamations that globalization is over. Research argues that globalization is far from over because multinational companies are far from retreating from their global activities, but the nature of this activities is undergoing fundament changes in response to new technological trends. In the coming years services, data, rise of production robots will change the way global trade and investments are done and thus, will change how globalization is viewed at. Geopolitical developments challenge Russia’s participation in globalization, and the country has to seek answers for how position itself in the world economy. This search is complicated by the fact that in the previous 30 years a lot of efforts has been spent on the so-called integration into the world economy that has resulted in an excessive dependence of parts of the national economy on foreign markets. New sources of economic growth need to be uncovered. Authors suggest that rather then retreating from the global scene, Russia needs to refocus its efforts away from external trade for the sake of external trade towards an active participation in global economic governance and propose its own vision on how to face the new global trends.
World esonomy and international relations. 2024;68(1):74-84
pages 74-84 views

THE SANCTIONS OF JAPAN AND THE EU AGAINST RUSSIAN ENERGY SECTOR DURING THE 2022 CRISIS

Chizhevskaya M.P.

Abstract

The aim of this article is to compare the measures taken by Japan and the European Union in response to the Ukrainian crisis escalation and subsequent world energy crisis. The article focuses on the sanctions policy of the two actors in the energy sphere, and the consequences from a socio-economic viewpoint. The volume of this study is limited to anti-Russian sanctions against basic fossil fuels – coal, crude oil, and natural gas. Under investigation are import restrictions, import diversification directions and EU–Japanese joint initiatives, taken to overcome the crisis under the US leadership. The study rests upon detailed statistical information from Japan’s and the EU’s, as well as international databases. Special attention is attributed to the problem of Russian gas import: Japan’s ongoing participation in the Sakhalin‑1 and 2 oil and gas projects, the routes of EU gas supplies alternative to Nord Stream‑1. The choice of actors is explained by the common situation which the EU and Japan found themselves in. Among the nations that introduced sanctions, they suffer the most, being short of natural resources and highly dependent on fossil fuel imports. Both imposed a wide range of sanctions in the energy sphere, following the hard line of the energy-independent United States. The paradox is that the EU, which is much more dependent on Russian fossil fuels, introduced much more severe sanctions than Japan. The author offers the following suggestion for this situation. First, Japan’s energy selfsufficiency ratio is lower than that of the EU, which is recognised by the G7 partners. Second, Japan, demonstrating full solidarity with Western countries, in contrast to the EU, still considers the Ukrainian crisis to be geographically distant, with relatively little effect on its domestic policy, except for the potential impact on the Taiwan Strait crisis escalation. Meanwhile, the energy crisis hits Japan directly, putting it into a situation where it must choose whether to follow the US’ and EU’s rigid approach, or to protect its own economic interests as much as possible. The study shows that, while the EU is putting democratic values protection ahead of the member states’ economic and social situation, Japan shows a more pragmatic approach in the energy sphere, trying to protect its industry and households from the devastating influence of the energy crisis, even if it goes against the G7 basic line and needs special approval. The degree of EU–Japan cooperation in solving common problems is seen as low. The absence of common proposals to overcome the crisis is explained by strategic dependence on the US, which is acting as the thought leader of the sanctions campaign under the G7 framework.
World esonomy and international relations. 2024;68(1):85-94
pages 85-94 views

EUROPEAN UNION DEVELOPMENT TRENDS: SOME ASPECTS OF ECONOMIC INTEGRATION

Chetverikova A.S.

Abstract

The article is devoted to the analysis of the European Union development as an integration association. The economic aspects of integration within the EU as a whole as well as developing sub-integration processes are highlighted. Existing estimates show fluctuation in the level of the EU integration and its significant reduction in certain areas during some periods. The internationalization of the world economy and the increasing involvement of the EU in these processes couldn’t but have an impact on the intra-European situation. The assessment of the economic integration is made on the basis of the dynamics of the trade-investment cooperation and migration processes also. The analysis showed that different economic ties are not equally involved in the integration within the EU. If at the beginning of the XXI century the merchandise trade and FDI were comparable in terms of the level of involvement in the intra-European flows, then at present investment ties are considerably inferior to trade ones, having refocused on countries outside the EU. There is a steady trend in increasing of the share of citizens of non-EU countries living in the EU as well as EU citizens born in non-EU countries. The complexity of the European integration is traced by the example of sub-integration processes in the Visegrad Group. It is shown that accession to the EU has stimulated trade-investment cooperation within the “fourth”, but strong contrasts between members continue to persist. One of the main factors of the participation level in sub-integration is the economy size. Due to national features investment ties in terms of outstock are involved in subintegration processes more than trade ones. Sub-integration will continue to develop in the EU due to long-term factors, “complicating” pan-European integration processes, the non-linearity of which will remain.
World esonomy and international relations. 2024;68(1):95-104
pages 95-104 views

Countries and regions

SOUTHEAST ASIA AND THE USA: PARAMETERS OF INTERACTION

Rogozhine A.A., Rogozhina N.G.

Abstract

The article analyzes the factors influencing the nature of cooperation between Southeast Asian countries with the United States and the directions of its implementation in the context of the escalating rivalry between the United States and China, who seek to influence them. The US interest in the region is primarily determined by the tasks of containing China and strengthening its position in the Indo-Pacific region by expanding ties with partners and allies. The approach of the Southeast Asian countries towards cooperation with the United States is motivated by two considerations – strategic and economic. In the context of growing concerns about China’s expansion in the region and the persisting territorial disputes with it in the South China Sea, the United States in the eyes of these states is considered a stabilizing factor of the regional security system. The article points out that despite the fact that the Southeast Asian countries are interested in the presence of the United States in the region, the anti-Chinese orientation of American policy limits the potential of their strategic interaction. Case studies of individual Southeast Asian countries confirm their commitment to the principle of inclusiveness in foreign policy, which excludes choosing one party over the other. Despite the fears inherent in Southeast Asian countries about the expansion of China’s influence, they prefer to pursue a hedging policy, which in reality manifests itself in the desire to balance between competing parties in order to neutralize risks and preserve strategic autonomy. This explains the dualism of the Southeast Asian countries’ policies and affects their cooperation with the United States in the field of security, which, despite the intensification of diplomatic activities of Biden’s administration and the conclusion of a comprehensive strategic partnership agreement, is developing slowly, except for the ongoing joint military exercises and arms purchases. In general, the Southeast Asian countries are – and contribute to – solving problems they consider important, primarily in the field of economy. Contrary to the prevailing idea of China’s economic dominance in the region, the economic relations of the Southeast Asian countries with the United States have been stable for a decade, developing in an upward direction, and beneficial for the Southeast Asian countries themselves. Economic cooperation remains a priority of their interaction with the United States, despite the importance of developing security relations. Pragmatism and the acknowledgement of the emerging geopolitical situation in the region determines the parameters of interaction between the Southeast Asian countries and the United States.
World esonomy and international relations. 2024;68(1):105-118
pages 105-118 views

CANADA’S INDO-PACIFIC STRATEGY: THE LATEST STAGE

Solyanova M.V.

Abstract

Canada, despite its geographical location in North America, following its closest allies, mainly the USA, seeks to strengthen its influence in the Indo-Pacific region. The Canadian Government sees significant opportunities for the development of its economic, diplomatic and military potential. Canada’s Indo-Pacific Strategy, announced in 2022, has become the doctrinal basis of this policy, systematizing it in three key areas – economic, military and humanitarian. The article examines the issue of the transformation of the terminology base used, the regional Strategy of Canada as a mid-ranking power in the Indo-Pacific region, the main directions of its policy, and analyzes its doctrinal design with regard to the presence of goals, objectives, risks and threats in the Strategy. The author also focuses on the “anti-Chinese” aspect of the Strategy as a combination of diplomatic, economic and military means of the Canadian “containment” policy toward the Communist Party of China, whose growing influence, according to the Canadian political circles and the expert community, carries risks for regional stability and security, for a regional order based on rules and regulations. The study shows that in the long term, the priorities of Canada’s Strategy in the Indo-Pacific are updating the system of bilateral economic, diplomatic and defense agreements, as well as supporting the defense potential of partner countries. At the same time, despite the desire to strengthen its military presence in the region, the expansion of economic and trade development with regional actors will remain a key aspect of Canada’s policy.
World esonomy and international relations. 2024;68(1):119-126
pages 119-126 views

Articles

EMOTION AND AFFECT IN WORLD POLITICS

Strezhneva M.V.

Abstract

In the world (but not yet in Russia specifically) there is already an extensive and rapidly growing amount of literature on the role and place of emotions both in international relations (IR) and in the foreign policy of states. This gives grounds to talk about the “emotional turn” within the framework of IR as a research discipline. But it is also well known that emotions are studied not only by IR, but in psychology, in various areas of neuroscience and in sociology as well. This article deals with some ontological and epistemological issues, arising from the results of multidirectional efforts of many academics to conceptualize the international political role of emotions on the basis of the leading international relations theories. The immediate goal is the exploration in the chosen subject area of the methodological problem of the integration of social science knowledge with achievements from the field of natural sciences. It is proposed to pay particularly close attention in this sense to the paradigm of affective neuroscience. The phenomenon of emotion, in principle, does not fit well with categories, which until now the IR has been focused on. Methodological imperatives of objective research push for the exclusion of subjective emotional experience from the scope of consideration. Constructivists, in their turn, treat emotion as a cognitive belief rather than as a bodily state. But in the article, the emotion is represented as a phenomenon which is both mental and physical. This is a monist view, going back to Spinoza. The research leads to the conclusion that, although social constructivism has good potential for studying the emotions in IR, when intentionally ignoring the biological nature of emotions, social constructivists can weaken their own position in comparison with those academic opponents, who are committed to instrumental rationalism in their approach. Constructivists thus limit with no good reason their own agenda when studying emotions and hinder the development of a transdisciplinary approach to the study of emotions in IR in particular.
World esonomy and international relations. 2024;68(1):127-136
pages 127-136 views

Around the books

THE POLITICAL LEADERSHIP AND CHALLENGES OF THE TIME IN EUROPE AND AMERICA

Timofeev P.P.

Abstract

Review of a book: A leader against the backdrop of an era. Traditions and innovations of modern political leadership in Western countries: a monograph. Ed. by L.S. OKUNEVA. Moscow, MGIMO-University, 2022. 660 p. (In Russ.)
World esonomy and international relations. 2024;68(1):137-142
pages 137-142 views