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Vol 68, No 11 (2024)

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The world at the beginning of the millennium

World Trade in the Conditions of Globalization Crisis

Zagashvili V.S.

Abstract

The article focuses on the analysis of factors that slow down the growth of international trade at the current stage of globalization. The latter is experiencing a crisis, but objective data do not indicate the end of globalization, but rather its slowdown following rapid growth. In its development, globalization overcomes many obstacles and faces various risks. At present, the threat of fragmentation of the world economy has become especially relevant. The factors causing the slowdown in the growth of globalization and world trade, for the most part, do not threaten the integrity of the world economy. The spread of regional trade agreements also does not negate the long-term efforts of the WTO aimed at trade liberalization, and in itself does not lead to the division of the world economy into separate blocks. Currently, the probability of the risk of fragmentation of the global economy is associated primarily with the geopolitical crisis. It is generally recognized that political confrontation, accompanied by restrictive measures regarding trade, brings economic losses to its participants. It can be assumed that ultimately objective economic laws will prevail and the scenario of the collapse of the global economy will not be realized. However, the high degree of uncertainty inherent in the political sphere does not allow us to confidently judge the prospects for an exacerbation or, on the contrary, mitigation of the crisis situation, and therefore the depth and duration of the impact of the political factor on economic policy and trade. After a pause, during which integration processes will unfold primarily at the level of world regions, globalization will resume its growth. Its pace will depend on a number of factors: normalization of the international political situation, overcoming trade contradictions, strengthening the system of global governance, dissemination of the principles of sustainable and responsible development, and many others. Development will acquire a more measured character, and the openness of economies and their interdependence will increase. In the long term, the main trends in the development of world trade that are currently observed will continue: a decrease in the share of goods and an increase in the share of services, an increase in the role of developing countries in trade in goods and developed countries in trade in services. The growth rates of world trade and GDP will remain at a relatively low level, while trade will grow somewhat faster than production. In the future, factors related to digitalization, robotics, artificial intelligence, additive technologies and climate change will become more noticeable. They will lead to shifts in the product structure of trade and the directions of the main commodity flows, but will not stop globalization, but will give it new features and directions of development.
World esonomy and international relations. 2024;68(11):5-14
pages 5-14 views

U.S. Protectionism Against China’s Mercantilism

Zhukov S.V., Maslennikov A.O., Reznikova O.B., Sinitsyn M.V.

Abstract

“Trade wars” have become a persistent phenomenon in the escalating geo-economic competition between the United States and China. Simulations of several “trade war” scenarios using the GTAP computable general equilibrium model show that increased protectionism will have a negative impact on the economies of not only the United States, but also China, although for both countries the decline in economic growth rates will be limited. The fewer countries are involved in “trade wars” on the side of the United States, the smaller the economic losses for China will be. The unique structural feature of the Chinese economy is the phenomenally high rate of investment and the low ratio of consumer spending to GDP. The growing gap between investment and consumption is covered by a growing positive foreign merchandized trade balance. During the 2000s, Chinese exports largely displaced American manufacturing in labor-intensive, low-tech industries. This process was called the “Chinese shock”. We are currently witnessing a China shock 2.0, as Chinese companies rapidly increase export of not only labor-intensive but also medium and high-tech industrial products. At the same time, China is rapidly expanding exports to new markets. The continuation of the mercantilist course by the economy, whose share in world GDP reached 17% in 2023, is turning into what Joan Robinson in 1936, observing the collapse of the first format of globalization, defined as the “beggar-my-neighbor” policy. China continues to strengthen its position as a global industrial powerhouse. Most countries cannot compete with an increasingly mercantilist China, and their international specialization is obviously limited to raw materials. The problem of foreign trade imbalance, which the US used as a pretext for initiating a policy of protectionism, is not being solved, but is being spread more widely throughout the world economy. China is absorbing effective demand generated in other countries. In 2023, China maintained a trade surplus in goods with 174 countries and territories. 81 countries had a negative trade balance with China exceeding 3% of their GDP. For many developing countries, the growing negative trade balance with China increasingly threatens the maintenance of macroeconomic balance in the national economy.
World esonomy and international relations. 2024;68(11):15-28
pages 15-28 views

Security issues in the modern world

Modern Space Technologies for War and Peace: Trends, Threats, Prospects

Romashkina N.P.

Abstract

The article examines the issue of applying space technologies for both military and peaceful purposes. The subject of the study includes specialized technical means designed for the exploration and utilization of the universe: spacecraft, satellites, orbital stations, launch vehicles, deep space communication, space engines, extraterrestrial and terrestrial auxiliary infrastructure objects, as well as procedures and special events. It has been proven that space technologies, including the quantitative and qualitative characteristics of satellite constellations, are currently crucial indicators of a nation’s capabilities, status, and global influence. The study analyzes the conceptual framework, the process of spreading space technologies, and the current trends in their development at the present stage. Drawing on data from Russian and foreign scientists and specialists, the author conducted a systematic analysis of modern types of space weapons - t hose located in space or deployed into Earth orbit and designed for combat in or from space - as well as an analysis of weapons designed to destroy or damage infrastructure in space. The author demonstrates that the increasing threats associated with the development and deployment of new military space technologies pose risks to global peace. In the context of a crisis in the relations between nuclear powers, the likelihood of a rapid escalation of a nuclear conflict increases due to the disruption of the Early Warning System satellites, which consequently raises the risk of accidental ballistic missile launches. Following this logic, it can be argued that the level of strategic stability is already declining today, with extremely negative consequences for all countries worldwide. This underscores the relevance of the research. Proposals have been formulated to prevent an arms race in space by discussing and adopting special binding norms of international law, which Russia has been advocating for many years in cooperation with other interested countries.
World esonomy and international relations. 2024;68(11):29-37
pages 29-37 views

U.S. Military Cooperation with Its Allies in Northeast Asia: Threats to Russian Pacific Fleet

Motyavin M.M., Stepanov A.S.

Abstract

This article discusses the military policy and defense priorities of the USA and its allies in Northeast Asia - Japan, South Korea and Taiwan. The region is characterized by territorial disputes, such as those involving the Kuril Islands, and significant changes in military strategies and capabilities in the Post-C old War, driven by new threats and technological advancements. The paper also examines the security architecture in the region, in particular, the strengthening of trilateral cooperation between the USA, Japan and South Korea. The primary focus is on the United States’ strategic pivot to Asia, which has led to enhanced military cooperation with Japan, South Korea and Taiwan, as well as extensive military exercises aimed at deterring potential adversaries. The study explores Japan and South Korea’s defense strategies, which include substantial increases in defense spending, acquisition of advanced weapon systems, and a shift towards more assertive military policies. Furthermore, the authors touch upon the issue of naval power and its role in shaping the geopolitical landscape of the region. Challenges faced by the Russian Federation’s Pacific Fleet are considered. The revival of Russia’s Pacific Fleet through modernization efforts, including the commissioning of modern submarines and ships, reflects Moscow’s intention to protect its maritime borders and assert its strategic interests amid growing regional tension and rivalry. The authors contemplate the consequences of the U.S.’ enhanced military presence in Northeast Asia, including the deployment of advanced missile defense systems and conducting large-scale military exercises with allies, presenting operational challenges for the Pacific Fleet, potentially limiting its maneuverability and strategic capabilities. The conclusion underscores the increasing complexity of the security environment, driven by Washington’s efforts to maintain its influence and counter perceived threats from China and Russia, which leads to an escalated risk of military confrontations in the region.
World esonomy and international relations. 2024;68(11):38-48
pages 38-48 views

Comparative Analysis of Germany’s and France’s Military Aid to Ukraine (2022–2024)

Timofeev P.P., Khorol'skaya M.V.

Abstract

The article examines German and French strategies for military support of Kyiv starting from 2022. The analysis reveals two different models for military assistance, although gradually they became more similar. While France distributes money mainly by means of the European Peace Facility, Germany focuses more on bilateral support. Having not much military equipment in stock, Paris started delivering military equipment from the French army and later established a special fund to provide direct supplies to Ukraine. Berlin, at first, tended to avoid the delivery of heavy weapons, participation in “Ringtausch” and transfer of weapons from Bundeswehr stocks, but later bought more military equipment from German industry through state funds for security capacity building. Since 2024, both countries have been involved in capability coalitions for military support of Ukraine. France and Germany went through three stages of their policies: 1) restricted deliveries of European weapons to Ukraine (spring 2022); 2) a gradual increase in EU military supplies from stock, and the launch of production (second half of 2022 - e arly 2023); 3) increase of the military industry capacity (2023-2024). Both countries stimulate each other to support Ukraine, but their volumes of supplies and types of weapons do not always coincide. Both countries have to increase their military capacities to fulfill commitments for Ukraine, especially the production of the SAM system IRIS-T SLM and self-propelled howitzer CAESAR as well as the launch of new facilities for artillery shells. The authors conclude that Paris and Berlin have no joint projects and agreements for joint procurement. Thus, unlike other crises, the current conflict makes France and Germany act in parallel, but not together.
World esonomy and international relations. 2024;68(11):49-58
pages 49-58 views

Assistance to Ukraine from European Countries: Example of Poland and Czechia

Pavlova M.S., Chetverikova A.S.

Abstract

The purpose of the article is to explore main forms of assistance offered by Poland and the Czech Republic to Ukraine. Firstly, the paper discusses the main lines of action taken by Polish government and society in support of Ukraine. It is assumed that direct involvement of in helping Kyiv was due to various political, strategic, economic and defensive factors. However, dynamics of aid allocation was still depending on the international ambitions of Polish government on the one hand and on the public sentiments towards Ukrainian refugees - on the other. Despite declarations of Polish- Ukrainian strategic partnership, aid provided to Kyiv tends to increasingly serve Poland’s policy goals and trade interests. Secondly, the development of Czech-U krainian relations in political and socio-economic spheres is assessed. The conclusion is made about the transformation of foreign trade relations between the Czech Republic and Ukraine after the beginning of Russia’s Special military operation (SMO). The main problems faced by Czechia in connection with the influx of Ukrainian refugees as well as the reaction of Czech society to this are considered. There is a certain fatigue in the country today because of the “Ukrainian issue”, which is indicative against the background of active support at the beginning of 2022. Special attention is paid to the comprehensive assistance provided by Prague to Kyiv. The Czech Republic stays an active donor of military aid to Ukraine, which entails a significant financial burden. The Czech side seeks to partially “compensate” such expenses by expanding economic cooperation, including plans for active participation in the further reconstruction of Ukraine. The factors influencing the expansion of interaction between the two countries are identified.
World esonomy and international relations. 2024;68(11):59-71
pages 59-71 views

Economics, economic theory

Russia Under the Conditions of Global Economy Regionalization

Shirov A.A., Porfiriev B.N., Gusev M.S., Kolpakov A.Y.

Abstract

Since 2022, Russia has been developing under a major change in the foreign relations with other countries. Building an updated foreign economic strategy requires defining constructive ways to develop trade, scientific and technological relations with the outside world. The exhaustion of globalization potential and the growth of economic power of developing countries provide for a new model of the world economy. This involves its regionalization with the several centers of power emerging and acting as attractors and focal points for the existing and future commodity and financial flows. One center of power will be based on maintaining the high importance of the US economy, in favor of which a part of the income of developed countries will be redistributed. Another center of power will reflect the growing importance of large developing countries. The increasing conflict and protectionism within global economic relations are an inevitable component of the new model above. As of now, Russia's economic power is insufficient to become a full-fledged center of power. A positive development scenario is associated with intensive scientific and technological development and ensuring national technological achievements reaching the global level. This will provide odds for organic integration into a world-regional system with a friendly center of power and based on production and technological cooperation through effective technology exchange in the fields of energy, security, digital and additive technologies, construction and industrial engineering. Strengthening of the economic potential for external economic cooperation along with maintaining the country's defense capability are necessary for effective counteraction against the sanctions pressure. The solution is possible only if the high rates of economic growth are maintained accompanied with growing contribution of its drivers associated with the increasing efficiency of using primary resources. For the Russian economy, it is necessary to ensure at least a neutral impact of net exports on economic growth at the stage of structural and technological modernization. In the future, it is necessary to increase the positive contribution of exports to economic growth based on diversification of the range and geography of product deliveries.
World esonomy and international relations. 2024;68(11):72-83
pages 72-83 views

Carbon Credits in Decarbonization Strategies of Oil and Gas Companies

Kopytin I.A.

Abstract

Carbon credits are an increasingly important tool for decarbonization. They are of particular importance to oil and gas and other energy companies for which burning fuel comprise the core of the business. The two main sources behind carbon credit emission are renewable energy projects and projects to sequester greenhouse gas emissions from natural systems, mainly forests. Without offsetting mechanisms, including nature-based solutions, companies with high carbon footprint are fundamentally unable to achieve net carbon neutrality. Despite challenges, the voluntary carbon credits markets continue to grow. In 2020-2022 the world’s 34 largest companies by capitalization bought certificates equal to 38 million tons of carbon emissions, which is equivalent to the combined greenhouse gas emissions of Ethiopia and Kenya. 50% of these credits were purchased by oil and gas companies and 28% by automobile concerns. In the near future, voluntary carbon markets will continue develop in an imperfect mode of trial and error, which is inherent to all markets at their early stages of development. The author shares the view that a large-scale non-ideal credit/offset market will be more conducive to solving the strategic task of decarbonizing economic growth than an ideally organized but small-scale market. In principle, this position is supported by authoritative regulators, whose policy is critical for the development of a new market. In May 2024, key economic departments of the US government, including the Department of Agriculture, the Department of Energy and, most importantly, the Department of the Treasury, unequivocally supported the development of a carbon credit market that promotes decarbonization, opens up new opportunities for investment in climate projects and enables realization of wide externalities that positively influence economic growth and preservation of biodiversity.
World esonomy and international relations. 2024;68(11):84-92
pages 84-92 views

Greater Middle East

Egypt’s Policy in Libya as a Reflection of Modern Trends in the Middle East

Ibragimov I.

Abstract

This article examines the evolution of Egypt’s foreign policy towards Libya, highlighting the significance of the recent developments for understanding the shifts both in Cairo’s foreign strategy and regional military and political dynamics. The persistent Libyan conflict presents a formidable challenge to international and regional security. Egypt’s engagement in Libya is driven by its national security concerns, with special emphasis on the need to maintain Libyan territorial integrity, stabilize the country’s military-political landscape, and prevent Islamist resurgence. The article underscores the securitized nature of Egypt’s foreign policy, characterized by its readiness to employ force to ensure national interests. However, the author also points to Cairo’s strategic flexibility while balancing military and political measures, demonstrating willingness to adapt approaches without abandoning core objectives, and fostering dialogue. Actively working to stabilize Libya, Egypt aims to mitigate risks to its national interests, including the ones in the realm of economy. Cairo’s goals include support to Libya’s integrity as a state, reducing foreign interference, ensuring border security, enhancing Egyptian regional influence, and protecting its economic stakes. These efforts mirror the broader regional trend in the foreign policies of the key regional actors who - a midst the continuing (and even worsening) conflicts and destabilization in the Middle East - h ave started to seek de-escalation since the early 2020s, driven by the realization that costly military strategies require reassessment. Recognizing the importance of cooperation for the goals of economic prosperity and security, key regional actors increasingly value pragmatism and flexibility in their foreign policy approaches.
World esonomy and international relations. 2024;68(11):93-103
pages 93-103 views

Turkey’s Policy of Uniting Turkic Countries: from Culture to Economy

Svistunova I.A.

Abstract

Turkey has been building special relations with the Turkic republics since the 1990s, when they appeared on the international scene as independent states. Ankara has been most successful in the field of cultural cooperation with the Turkic nations. Under the rule of the Justice and Development Party (AKP) in Turkey, Ankara’s policy towards Turkic countries received a new impetus of development and а new content. Cultural proximity became the starting point for the expansion of political and economic ties and the creation of institutional structures that united the Turkic states. The article deals with Ankara’s approaches to promoting integration of Turkic countries based on ethnic kinship factors, which are used to strengthen Turkey’s international position. In a period of transformation of the global system of international relations, Ankara is seeking for new opportunities for regional leadership. To date, the main achievement of this policy is the establishment of the Organization of Turkic States, which has the task of promoting Turkic integration in various fields. The idea of the Turkic world serves as a tool for consolidation of Turkic republics located in different regions. Ankara considers as its historical responsibility the activity of preserving or shaping Turkic identity among Turkic peoples. Transport and energy projects are another area of construction of the modern Turkic world.
World esonomy and international relations. 2024;68(11):104-114
pages 104-114 views

Articles

India’s Cooperation with the EAEU and the SCO

Malyshev D.V., Kurylev K.P., Smolik N.G., Stanis D.V.

Abstract

The article deals with the interaction between the Republic of India (RI) and the main Eurasian structures that operate in the space of the former Soviet Union - t he Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organization (SCO). With the emergence of a polycentric world order, marked, among other things, by the entry into the international arena of states that used to be categorized as developing, the study of their new role in the political, economic, and military-political spheres is of particular relevance. In this regard, identification of peculiarities of India’s interaction with the SCO and the EAEU is of specific importance in determining the role of India as a large state and an influential player both in the Asian region and in the world. Various aspects of India’s foreign policy activities at the historical and contemporary stages, including relations with Russia, have already received quite detailed coverage in Russian and foreign academic literature. Along with the consideration of individual aspects of India’s cooperation with the SCO, much attention is paid by IR and Oriental Studies researchers to India’s uneasy relations with China and Pakistan. At the same time, the problem of India’s participation in the implementation of Eurasian integration projects within the SCO and, moreover, the EAEU demands more attention. This has determined the aim of this article, which has several objectives: to analyze main historical stages of India’s interaction with Russia and the USSR; to study India’s foreign policy priorities in dealing with the SCO and EAEU; to reveal the influence of India, China, and Pakistan on the SCO activities and interstate relations within this organization; to determine India’s political-strategic, trade, and economic preferences in the Eurasian space. The relations with India, which is turning into new Asian giant, may in the future contribute to the establishment of both the SCO and the EAEU as influential world centers. The Indian participation may help in activating their internal and external potential, which will objectively contribute to a more dynamic formation of a new Greater Eurasia.
World esonomy and international relations. 2024;68(11):115-124
pages 115-124 views

Determinants of Russian Population’s Attitude Towards Environmental Issues: the Role of Geopolitical Tensions

Sokolova Y.D.

Abstract

It is widely recognised that public interest in environmental issues is a driver of low-carbon economic development, owing to the fact that the degree of community concern about environmental quality is tightly associated with the implementation of green initiatives by business and government. In its turn, public support for environmental protection is a function of socio-economic, cultural, historical and political conditions. Russia is an economy that has managed to increase its prosperity and qualitatively transform institutions over the past two decades. The country’s economic growth has been accompanied by environmental degradation, especially at the regional level. More importantly, social and economic upswing in Russia was associated with greater involvement of the population in environmental protection issues. There has been a steady increase in the share of the population who prefer environmental protection to economic growth, and the proportion of Russians who are convinced that human activity has a significant impact on the environment has considerably grown. However, at the current stage of development, sociological surveys indicate a significant decrease in the interest of Russian citizens in environmental issues. Escalating geopolitical uncertainty and macroeconomic turbulence may contribute to the fact. This study aims to identify the determinants of the Russian population’s attitudes towards environmental issues over the period of 1995-2023, with a special focus on the role of geopolitical tensions. The results obtained by means of the sophisticated econometric techniques - A utoregressive Distributed Lag (ARDL) and Non-L inear Autoregressive Distributed Lag (NARDL) - indicate that income level, education, as well as the spread of information and telecommunication technologies (ICT) stimulate the involvement of Russian citizens in environmental issues, while geopolitical tensions reduce the share of the population that prioritises environmental protection. At the same time, the study sheds light on the fact that maintaining the interest of the Russian population towards environmental issues is most relevant in the context of high geopolitical risks, as environmental degradation is most likely to be observed during this period.
World esonomy and international relations. 2024;68(11):125-138
pages 125-138 views