Morocco the Outlier

As a result of the conflicts in Syria and Libya, Morocco has become the only state in the Middle East/North African region that is not or does not border a failed or semi-failed state.

Morocco’s next-door neighbour Algeria, in contrast, borders two or three such states, namely Libya, Mali, and Niger. Algeria might also be standing on politically shaky ground itself, as its economy is highly dependent upon exports of oil and gas and as its leader Abdelaziz Bouteflika, who has governed the country since 1999 (since the Algerian Civil War, which lasted from 1991-2002), has now reached 79 years old and has very serious health problems but no clear political successor.

Tunisia, meanwhile, in sandwiched narrowly between Libya, Algeria, and the depressed economy of southern Italy. Egypt borders Libya and Sudan and Gaza. Saudi Arabia borders Iraq and Yemen. Iran borders Iraq and Afghanistan. Turkey borders Iraq, Syria, and the economy of Greece. Sudan borders several troubled states and also remains troubled itself. Jordan borders Syria and Iraq. Lebanon borders Syria. Kuwait borders Iraq. Oman borders Yemen.

The West Bank Palestinian Territory, like Morocco, does not have failed-state neighbours: it is directly bordered only by Israel and Jordan. Still, Palestine cannot be said to be on this list with Morocco, since it is not independent and since it includes the more troubled Gaza Strip. Qatar, the United Arab Emirates, and Bahrain, meanwhile, are no longer truly majority-Arab economies, as non-Arab foreign workers now significantly outnumber their own citizen labour forces.

Morocco is an outlier also in terms of its economy (it is a significant net importer of fossil fuels, unlike most other Arab economies) and in its geographic location at the outer edge of Africa and Europe. Though Morocco has not been able to capitalize much on these traits in the past – the country’s per capita GDP is under $4000 –  there are reasons to think that it will begin to outshine most other nations in the coming years.

Here are 5 factors to keep an eye out for:

1.  Ties to the Americas

Morocco has closer connections to the Western Hemisphere than do most other countries in the Arab world, for a number of reasons. One is geography: Morocco is an Atlantic country, and most people in North and South America live within the Atlantic basin. Marrakesh is 5900 km from Manhattan, 6900 km from Miami, and 4900 km from the easternmost edge of Brazil. By comparison, Marrakesh is 5400 km from the Saudi capital Riyadh, 4900 from Baghdad, and 3700 km from Cairo.

Another is language: millions of Moroccans can speak French, Spanish, or  (increasingly) English, which along with Portuguese are the languages spoken most often in the Americas.

Another is history: Morocco was not a British colony, so it does not have the same resentment against the English-speaking world that many other countries do. Also, it was liberated by the US and Britain relatively early on in the Second World War (insert Casablanca reference here).

And another is politics: the US wants at least one stable, large, non-Wahabbist political ally in the Arab world, and as a result it is views Morocco favourably. In addition, the US and British navies continues to require passage through the narrow Strait of Gibraltar between Morocco and Spain in order to access the Mediterranean.

(Morocco and the US struck a Free Trade Agreement in 2006. Outside of Canada, Australia, South Korea, Israel, Jordan, Oman, and some countries in Latin America, Morocco is the only country to have such an agreement with the US)

As the economies of Europe, East Asia, and most of the developing world are simultaneously struggling at the moment, whereas the economy of the United States remains relatively vibrant, Morocco’s linkages to the US and other countries in the Americas could provide it with a significant advantage over its peers.

2. Oil and Food Imports 

Falling commodity prices in recent years have left most Middle Eastern countries panicking, depending as they do upon energy export to maintain their economies. Morocco too could be hurt by the falling price of energy, as it has benefited in the past from tourism, investment, and financial transfers coming from oil-rich states like Saudi Arabia. Still, Morocco is not a net commodity exporter itself. Quite the opposite, in fact: as a share of GDP Morocco is one of the world’s biggest net oil importers among countries with significant-sized populations, and it is also one of the bigger food importers.

Morocco does not even trade much with its energy-exporting neighbour Algeria, as the two have been rivals of one another because of Morocco’s ongoing control of Western Sahara. Morocco does trade, however, with Spain and with Portugal, both countries that could benefit significantly should cheap oil and gas prices persist.

(Source: The World Bank; Wall Street Journal)

3. Spain’s Economic Recovery

Spain and Portugal have been in a very deep economic recession since the “global financial crisis” hit. The southern regions of Spain, meanwhile, have been in a Depression in which as recently as 2015 they had formal unemployment rates of well over 30 percent, higher even than in Greece. This has not been good for Morocco at all, which sits just 14 km across the Straits of Gibraltar from southern Spain. The two Spanish “ex-claves” in Morocco, Cueta and Melilla (which have a combined population of 165,000), have similar unemployment rates.

Since the beginning of 2015, however, Spain is thought to have been the fastest growing significant economy in “Western Europe” apart from Sweden or Ireland, and Portugal has also been doing much better than in previous years.  Meanwhile the heart of the “Eurocrisis” seems to have moved to Italy, which could be very bad for neighbouring Tunisia and so make Morocco even more of an outlier in terms of being a stable economy within the Arab world.

(Source: Eurostat)

(Morocco exports slightly more to France than to Spain, however given that France’s GDP is more than twice as large as Spain’s, this indicates Morocco’s closer economic ties to Spain)

4. Modern Communications

Morocco is a semi-rural country. According to the World Bank, 40% of Morocco’s population live in rural areas, compared, for example, to 57% in Egypt, 33% in Tunisia, 30% in Algeria, 31% in Iraq, 27% in Iran and Turkey, and just 17% in Saudi Arabia. Morocco is also the most mountainous country in the Arab world outside of Yemen, making many of its inhabitants – in particular its rural inhabitants –  somewhat isolated from one another as well as from the outside world. Morocco’s population could benefit from Internet and mobile phone access helping it to overcome this isolation, then.

Morocco might also benefit from modern communications because of its unique linguistic abilities: its population speaks four different prominent languages, namely Arabic (which is spoken not only in Arab countries, but also by at least tens of thousands of people in almost every Muslim country), French, Spanish, and (increasingly) English. Morocco is in fact one of the few countries outside of Spain or the Western Hemisphere in which significant numbers of people are capable of speaking Spanish. Moreover, if Spain and Portugal benefit from being able to forge closer connections with Spanish and Portuguese speakers in the Americas as a result of the Internet, Morocco could benefit indirectly from their success.

The Internet could be particularly useful in helping Morocco to connect usefully with the rest of the Arab world, which until now Morocco has been somewhat cut off from as a result of its faraway location – it is a five hour flight from Morocco’s biggest city Casablanca to Cairo, and nearly an eight hour flight from Casablanca to Dubai – and as a result of its poor political relationship with its next-door neighbour Algeria. Given that most of the Arab world’s population and almost all of the Arab world’s economic activity occurs in the Middle East (including Egypt) rather than in North Africa (excluding Egypt), the distance-shrinking effects of the modern Internet could be of special assistance to Morocco.

(above: Population by country; below: The Moroccan diaspora)

5. Self-Driving Vehicles 

Morocco is located at the front door of Western Europe. It has to cross just one border to reach Spain, two borders to reach France, and three borders to reach Germany, Britain, or Italy. (By comparison, Turkey has to cross at least five borders to reach Germany or Italy by land, six to reach France, and seven to reach Britain or Spain). Still, Morocco cannot yet seamlessly access these countries.

It is, for example, 2350 km from Casablanca to Paris by land, a route which crosses the Strait of Gibraltar as well as a number of mountain ranges in Morocco, Spain, and southern France. This can make transport difficult, particularly by train. Trains cannot easily drive on and off of ships like trucks can, and they cannot handle steep inclines and sharp curves in mountainous areas as easily as trucks (particularly small trucks) can.

Indeed Morocco has only the 71st largest railway network in the world, according to the CIA World Factbook, smaller even than Tunisia’s. Spain has a much larger rail network, of course, just not once you account for Spain’s economic size. Moreover, few lines cross the Pyrenees Mountains on Spanish-French border, and Spain’s railways mostly use a different rail gauge as France’s, so the two systems to do not always link up quickly.

Smarter cars and trucks — and, eventually perhaps, self-driving cars and trucks — would be a boon for countries in the mountainous Mediterranean region, notably Morocco but also Algeria, Spain, Italy, southern France, Greece, Turkey, and the Balkans. They could make it safer and cheaper for cars and trucks to navigate difficult mountain roads. For Morocco, they could also make it easier to manage the long delay trucks typically face in crossing the Strait of Gibraltar, a body of water that is often too stormy to cross. If this happens, then the lack of national borders separating Morocco from large economies in Western Europe could become a significant economic advantage.

Over the longer-term, self-driving vehicles could also help Morocco to leverage its location as the sole land bridge between Western Europe and the huge region of Western Africa.

Economies in Western Africa often have a difficult time reaching European markets by sea. Either they are landlocked (approximately 70 million people live in landlocked countries in Western Africa, and many more are part of landlocked groups within non-landlocked countries, like the nearly 60 million Hausa or Fulani of Muslim-majority northern Nigeria), or they have to sail all the way around West Africa to reach Europe (most notably in countries like Nigeria — see map below — where most of the population of Western Africa lives), or they lack access to good natural harbours and ports (in the Nigerian megacity of Lagos, for example, “the [shipping] terminals are both practically in the city centre, so it can take an entire day for a lorry to get [through traffic] from the terminal to a warehouse“, according to the Economist), or their ships are subject to piracy.

(http://blog.crisisgroup.org/africa/nigeria/2015/12/04/nigerias-biafran-separatist-upsurge/)
The alternative to maritime shipping is to cross the Sahara Desert. That is, of course, far easier said than done: the routes across the Sahara are long, difficult, and dangerous. Still, they have a shot to become economical, given the challenges involved in the the sea route. Driverless trucks, which are both safer and cheaper than having a human driver risk crossing both the Sahara Desert and Morocco’s Atlas Mountains, could perhaps tilt the balance (in some cases, at least) between the land and sea routes. If this occured, it would reverse the process that began in the 1400s, when it first became easier to reach this region by ship than by caravan.

Finally, self-driving vehicles could perhaps make it easier for Morocco to access markets in Latin America. Most people in Latin America live in southern Brazil,  around Sao Paolo, and in neighbouring northern Argentina, around Buenos Aires. (The state of Sao Paolo alone accounts for an estimated 32% percent of Brazil’s GDP, without even taking into account neighbouring Rio de Janeiro). Yet this is a long sail from Morocco. It would instead be much quicker for ships to land somewhere around the eastern tip of Brazil and then drive overland to cities like Sao Paolo (see map below). Thus far it has been difficult to drive the more than 2000 km that this route is made up of, however, as it crosses long distances through Brazil’s eastern coastal mountains. Brazil’s traffic jams and road conditions are notoriously difficult to deal with; this route could certainly use a big boost from technology.

A similar thing would be useful for Morocco if for self-flying (or at least, “smarter”) aircraft were become common.

Political Dynasties and their Discontents

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Political dynasties have always been a big part of human civilization, and today is no exception.

In the United States, the rise of Donald Trump was at least partially a reaction to the dynastic, Clinton-vs-Bush election that only last year most Americans were expecting to get.

It was, after all, Jeb Bush’s candidacy that split the Republican establishment in two, preventing it from coalescing around a politician like Marco Rubio early on and thus leaving an opening for Trump to force his way into. Hillary Clinton’s high disapproval rating, similarly, could even leave the door open for Trump to become president, however unlikely and unappealing that may be.

Canada

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Former Canadian prime minister Jean Chrétien and Liberal Party leader Justin Trudeau wave at supporters at the University of Toronto, February 15, 2015 (William Pitcher)

North of the border, Canada has just elected Justin Trudeau as its Prime Minister, the son of Pierre Trudeau who was prime minister for fifteen years during the late 1960s, 1970s, and first half of the 1980s. One of Trudeau’s two opponents in the election had been NDP leader Thomas Mulcair, whose ancestors include the first and ninth Premiers of the province of Quebec.

Mexico

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Enrique Peña Nieto, presidential candidate for Mexico’s Institutional Revolutionary Party, waves to supporters in the city of Torreón, June 18, 2012 (Flickr)

South of the border, Mexican President Enrique Pena Nieto,who came to power in 2013, “is the nephew of two former governors of the State of México (the state in which Mexico City is located): on his mother’s side, Arturo Montiel, on his father’s, Alfredo del Mazo González“, according to Wikipedia.

East Asia

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Japanese Prime Minister Shinzo Abe (left) and General Secretary of the Communist Party of China Xi Jinping (right)

In China, the current General Secretary Xi Jinping, who is now thought to have amassed more personal power than any Chinese leader since Deng Xiaoping, is the first to come from the “princeling” class. He is the son of a prominent political figure, Xi Zhongxun, from the first generation of the Communist Party leadership. This distinguishes him from the other General Secretaries in the Communist era, including Mao Tse-Tung, whose parents were not prominent politicians and in some cases were actually quite poor.

Other top members of the current Chinese leadership are also “princelings”, most notably Yu Zhengsheng, who is the fourth-ranked politician on the 7-man Politburo Standing Committee (which is generally considered to be China’s top political body), and Wang Qishan, who is ranked sixth on the Politburo Standing Committee and may be one of the most powerful figures in China at the moment as he has been leading Xi Jinping’s anti-corruption campaign . Wang is a princeling by marriage only: his wife is the daughter of Yao Yilin, who was a former Politburo Standing Committee member in the Communist Party.

In Japan, Prime Minister Shinzo Abe is arguably the most powerful politician the country has seen in at least a generation as well. He too comes from a political dynasty. According to Wikipedia, “his grandfather, Kan Abe, and father, Shintaro Abe, were both politicians… Abe’s mother, Yoko Kishi,[3] is the daughter of Nobusuke Kishi, prime minister of Japan from 1957 to 1960. Kishi had been a member of the Tōjō Cabinet during the Second World War”.

Meanwhile the President of South Korea, Park Geun-hye, is the daughter of South Korea’s third president, Park Chung-hee. (Update: Park has since been impeached). (And in North Korea, of course, the Kim family’s rule is now into its third generation). In Singapore, the prime minister since 2004 has been Lee Hsien Loong, the son of Singapore’s modern founding father Lee Kuan Yew who served from 1959 all the way to 1990.

India

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Hillary Clinton, then America’s secretary of state, poses for a picture with Indian Congress Party leaders Sonia and Rahul Gandhi in New Delhi, July 19, 2009 (State Department)

In India, Prime Minister Narendra Modi and his often fanatically right-wing Hindu nationalist BJP party became in 2014 the first party in over three decades to win a majority government in a national election. Modi is not from a political dynasty himself, rather he is the reaction to the modern world’s most prominent political family of all: the Nehru-Gandhi dynasty.

The Guardian wrote in 2007 that “the Nehru-Gandhi brand has no peer in the world — a member of the family has been in charge of India for 40 of the 60 years since independence.” The dynasty (which by the way is not related to the Gandhi) began with Jawaharlal Nehru, India’s first post-British prime minister from 1947-1964. Nehru was himself the son and nephew of significant political figures in pre-independence India. Nehru’s dynasty then continued with his only daughter Indira Gandhi (née Nehru), who was India’s prime minister from 1966-1977 and from 1980-1984, but was assassinated in 1984 by two of her own Sikh bodyguards in the wake of Operation Blue Star.

The dynasty was then followed by Indira’s sons Rajiv Gandhi, who was prime minister from 1984-1989 before being assassinated by the Tamil Tigers in 1991, and Sanjay Gandhi, who was expected to become prime minister but was instead killed in a plane crash. Rajiv’s wife Sonia Gandhi, meanwhile, is the leader of India’s powerful Congress Party and the mother of Rahul Gandhi, who lost to Modi’s BJP in 2014 but still finished with more parliamentary seats and far more votes than any other candidate in the election. Sonia likely would have run for prime minister herself, but cannot because she was born in Italy.

(Sanjay’s wife Maneka Gandhi, on the other hand, has jumped ship from the historically Gandhi-dominated Congress Party and joined the BJP instead; she is currently a cabinet minister in the BJP-led government. Maneka’s son Varun has also gone over to the BJP, serving as the youngest National Secretary in the history of the party and a member of the country’s parliament. However, Maneka and Varun both remain less prominent than the Congress side of the family, which is led by Maneka’s sister-in-law Sonia and Varun’s first cousin Rahul).

Arguably, frustration with the Gandhis directly paved the way for Modi, a man who was not even allowed to enter the United States prior to becoming president because he was allegedly involved in “severe violations of religious freedom” while serving as governor of the important Indian state of Gujarat.

Philippines

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President-elect Rodrigo Duterte of the Philippines speaks with his predecessor, Benigno Aquino III, in Davao City, March 6, 2013 (Malacañang Photo Bureau/Ryan Lim)

You may have also heard about the election of the Philippines ridiculous new president Rodrigo Duterte last week. Rodrigo’s father Vicente was a provincial governor of Davao province and a mayor of Cebu, one of the largest cities in the country. Rodrigo’s cousin was also a mayor of Cebu, in the 1980s.

The Duterte’s are hardly alone in their political dynasticism: according to Public Radio International, “in the Philippines, elections in 2016 will be dominated by dynasties. About two-thirds of the outgoing Congress are heirs of political families. The outgoing president is the son of Corazon Aquino, who led the uprising against the dictator Ferdinand Marcos after Marcos had her husband whacked for being a prominent political opponent. But the Marcos clan is back in the picture, with Ferdinand’s wife, son, daughter and nephew all running for different offices. Also running is the grandson of another president.”

Thailand

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Thai prime minister Yingluck Shinawatra addresses the United Nations Human Rights Council in Geneva, Switzerland, September 9, 2013 (UN/Jean-Marc Ferré)

In Thailand too there has been a political reaction against a political family, that of Thaksin Shinawatra (who was prime minister from 2001 to 2006 before being exiled by a military coup) and his younger sister Yingluck Shinawatra (who was prime minister from 2011 to 2014 before being removed by decree of the Constitutional Court during the Thai political crisis in 2013-2014). According to Wikipedia, the father of Thaksin and Yingluck “was a member of parliament for Chiang Mai. [The Shinawatras are] a descendant of a former monarch of Chiang Mai through her grandmother, Princess Chanthip na Chiangmai (Great-great-granddaughter of King Thammalangka of Chiang Mai).”

Europe

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Prime Ministers Matteo Renzi of Italy and Mariano Rajoy of Spain speak during a European Council meeting in Brussels, June 25, 2015 (La Moncloa)

Europe, at least in contrast to Asia, does not have many political dynasties at the moment. This is, perhaps, in part because European political history was reset to a certain degree following the fall of the Soviet Union. Europe’s leading politicians, including Merkel, Putin, and Erdogan, do not come from political dynasties. Neither does Britain’s Prime Minister David Cameron (though his ancestors were extremely wealthy) or France’s President Francois Hollande. Italian Prime Minister Mattio Renzi’s was a municipal councillor, admittedly, but that does not really count. (Angela Merkel’s grandfather was, similarly, a local politician in Danzig). Spanish PM Mariano Rajoy’s family was fairly prominent, on the other hand.

That said, Europe is far from dynasty-free. According to the Economist, “in Europe family power is one reason why politics seems like a closed shop. Fifty-seven of the 650 members of the recently dissolved British Parliament are related to current or former MPs. François Hollande, France’s president, has four children with Ségolène Royal, who ran for the presidency in 2007. Three generations of Le Pens are squabbling over their insurgent party, the Front National (see article). Belgium’s prime minister is the son of a former foreign minister and European commissioner. The names Papandreou and Karamanlis still count for something in Greece.”

Syria and Egypt 

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Syrian dictator Hafez al-Assad and his family in the 1990s (Wikimedia Commons)

The Arab world remains full of political dynasties and reactions against dynasties, in contrast. In Syria both of these factors can be seen at the same time, as the civil war threatens to unseat Bashar al Assad, son of thirty-year ruler Hafez al Assad. (Bashar’s brother Bassel was initially supposed to take over from his father, but died in a car accident in 1994). In Egypt, meanwhile,the military government of Abdel Fattah el-Sisi is in some ways a response to the presumed attempt by an elderly Hosni Mubarak (diagnosed with stomach cancer in the same year he was deposed) to pass on power to his son Gamal, who had not served in the Egyptian military as Hosni Mubarak and previous rulers Anwar Sadat and Gamal Abdul Nasser had done.

Saudi Arabia 

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Prince Muhammad bin Nayef speaks with King Salman bin Abdulaziz Al Saud of Saudi Arabia in Riyadh while Ambassador Adel al-Jubeir looks on, January 27, 2015 (White House/Pete Souza)

In Saudi Arabia, which is by far the largest Arab economy, a half-shift from one Saudi political dynasty to another may just be getting under way. Thus far in the history of the modern Saudi state (beginning around 1930), the country has been ruled either by founder Abdulaziz ibn Saud or else by one of his 45 or so sons, six of whom have become king, most recently King Salman who took the throne in January of 2015.

Last year, however, Salman removed his half-brother Muqrin (another son of Abdulaziz) from the office of Crown Prince, replacing Muqrin with their nephew Mohammad bin Nayef,  who would become the first king in the next generation of Saudi royals if ever takes over. He might never take over, though: many people now believe that is Salman’s own son Mohammad bin Salman, who is the Deputy Crown Prince and Defence Minister, who is the likeliest to become the next king when Salman (who is 80 years old) steps down or passes away, even though Deputy Crown Prince is formally a lower-ranking position than Crown Prince – and even though Mohammad bin Salman is only 30 years old, which would be an extremely young age for a modern Saudi king.

If Mohammad bin Salman does become king over another prince like Mohammad bin Nayef, Saudi Arabia could in effect be moving from a dynasty of Abdulaziz to a dynasty of Salman. There are now fears that the political situation in the country could become quite messy if the other branches of the huge Saudi royal family try to avoid becoming sidelined from power as a result.

Iran

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Iranian president Hassan Rouhani speaks as parliament speaker Ali Larijani, Chief Justice Sadeq Larijani and the chief of the supreme leader’s office, Mohammad Golpayegani, attend a ceremony in Tehran, October 3, 2015 (Reuters)

Across the Gulf, in Iran, dynasties are not too big a factor within the current religious government. Recently the grandson of Ayatollah Khomeini even was blocked from participating in elections. One big exception to this, however, is the powerful Larijani family, made up of five brothers in key positions in the government. It includes Ali Larijani, who is the Speaker of the parliament and a former member of Iran’s Revolutionary Guards, and Sadeq Larijania, Iran’s Chief Justice.

Israel

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Labor party leader Isaac Herzog (left) and Yesh Atid party leader Yair Lapid (right)

A number of leaders in Israel hail from political families as well. Benjamin “Bibi” Netanyahu, who has now spent more time as prime minister (from 1996-1999 and now again since 2009) than any politician in Israel’s history apart from Israel’s founding  prime minister David Ben Gurion (who Netanyahu will soon overtake), is the son of Benzion Netanyahu. Benzion was a professor of history at Cornell University, an influential Zionist activist and magazine editor, and personal secretary to one of Israel’s most prominent founding fathers, Ze’ev Jabotinsky.

Bibi is also the younger brother of Yonatan Netanyahu, who was the unit commander of and only person to be killed during the famous Operation Entebbe raid in 1976, when 100 or so Israeli commandos rescued 102 hostages of a Palestinian airplane hijacking (compared to 3 hostages killed) from where they were being held in Idi Amin-era Uganda more than 3000 km south of Israel, and returned them safely to their homes in Israel and France.

Israel’s Labour Party leader Isaac “Bougie” Herzog, meanwhile, who won more than twice as many votes as any other Jewish party apart from Netanyahu’s Likud Party in the most recent elections of 2015, is, according to Wikipedia, “the son of General Chaim Herzog, who was the Sixth President of Israel from 1983 to 1993, and the grandson of Rabbi Yitzhak HaLevi Herzog, was the first Chief Rabbi of Ireland from 1922 to 1935 and Ashkenazi Chief Rabbi of Israel from 1936 to 1959″.

The next largest Jewish political party after Labour and Likud is the Yesh Atid Party, led by Yair Lapid. Lapid is a former news anchor who is the son of Yosef “Tommy” Lapid, a former government minister, parliamentary leader of the opposition as recently as 2005, and radio and television personality.

Brazil 

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Brazilian Social Democracy Party leader Aécio Neves answers questions from reporters, May 28, 2015 (Agência Senado/Pedro França)

Leaving the Middle East, Brazils’ Aecio Neves, who in late 2014 very narrowly lost a presidential election to Dilma Rousseff (who may now be on the verge of being impeached herself), is the grandson of Tancredo Neves, who would have been President of Brazil in 1985 if he had not passed away before taking office. Roussef and her influential predecessor Lula da Silva are not from prominent political families, however.

Peru

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Peruvian presidential candidate Keiko Fujimori campaigns for the 2011 election, December 7, 2010 (Flickr/Keiko Fujimori)

In Peru, the country is in the midst of a presidential election, which is a two-round system that began in April and will end on June 5.  Its leading candidate is former First Lady Keiko Fujimori, a daughter of former Peruvian President Alberto Fujimori. Alberto exiled himself to Japan following corruption and human rights violation scandals at the end of his ten yeas in power in 2000, but was later arrested in Chile in 2005 and is now serving a prison sentence back in Peru.

Argentina

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President Cristina Fernández de Kirchner of Argentina speaks in José Amalfitani Stadium, Buenos Aires, April 27, 2012 (Presidency of Argentina)

Argentina, finally, has just recently ended sixteen consecutive years of being presided over by a Kirchner, first by Nestor Kirchner from 2003 to 2007 and then by Cristina Fernandez de Kirchner from 2007 until the end of 2015. The Kirchners were Peronists, a political movement of sorts that has dominated modern Argentine politics, which is named for another power couple, Juan Peron (president from 1946 – 1955) and his second wife Eva Peron, who was a significant political figure in her own right and nearly became Vice President. (Juan’s third wife Isabel Martinez de Peron, meanwhile, was President of Argentina from 1974 to 1976). The incoming Argentine president Mauricio Macri, who is replacing the Kirchners, does not come from a political dynasty, however. His father was just a humble business tycoon.

The Return of the Atlantic

This article was written for an essay contest, so the style is a little bit different from others on this site. It was first written three years ago, when most people had not yet become bearish on the Chinese economy and politicians in the US were still talking a lot about America’s “pivot to Asia”. The essay discusses the possibility that the Atlantic regions – North America, South America, Europe, and much of Africa – will remain at the heart of the international system in the years and decades to come, for better or for worse.

Hope you like it!

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The Return of the Atlantic 

For nearly 500 years, the Atlantic Ocean was the unrivalled centre of the international system, connecting Europe to its expansive economic and imperial networks in Africa, Asia and the Americas. Transatlantic trade continued to exceed transpacific trade as recently as the late 1980s, while at the same time the transatlantic alliance against the Soviet Union remained the world’s most important geopolitical partnership. Indeed it seems incredible to recall now, but China, India, Indonesia, Korea, and Australia combined had a smaller economic output than West Germany in 1990.

Today, in contrast, the European Union and United States both import more goods from China alone than they do from one another, and the Cold War has been over for a quarter of a century. The Pacific has in many ways become the new centre of the world: it is home to the three largest economies of America, China, and Japan, is the highway for East Asian imports of commodities and exports of manufactured goods, and acts as a base for nearly 75 percent of US soldiers stationed outside of North America or Afghanistan. Not surprisingly, a majority of economists, politicians, and journalists believe that the continued economic growth of populous Asian countries like China, India, and Indonesia means that the centrality of the Pacific has only just begun.

In this essay we will argue that, even as it remains popular to herald the arrival of a “Pacific Century” (to quote a famous Hillary Clinton op-ed in Foreign Policy magazine), it will actually be the Atlantic that will become once again the centre of the international system, serving as the corridor of an expanding economic network that will incorporate Europe, the Americas, much of Africa, and to a lesser extent even parts of southern Asia. Transatlantic commerce is likely to once again exceed the value of transpacific commerce and, partly by doing so, it will help to serve as an organizing force in global geopolitics. We hope it will serve as a force for good in the world as well.

To be sure, while we view this Atlantic phenomenon as likely to be brought about by economic, cultural, and linguistic circumstances that are already actively or latently in place, we will also argue that, from a policy perspective, the political effectiveness and ethical utility of such a reinvigorated transatlantic relationship will depend on the extent to which efforts are made to reduce carbon emissions in developed economies, as well as on the extent to which efforts are made to provide honest and constructive assistance to struggling countries within the developing world.

The Pacific Moment

The rise of transpacific trade during the latter half of the 20th century occurred as a result of a unique set of circumstances. These were, specifically, the reconstruction of the Japanese economy following its destruction in the Second World War, the emergence of South Korea and Taiwan following their adoption by the United States as strategically-located allies in 1950, and the rapid growth of coastal Chinese states following their devastation during the Sino-Japanese War, Chinese Civil War, and isolationist era under Mao, which occurred in an overlapping succession from 1927 until 1979. These four countries have caused transpacific commerce to soar in recent decades, with help from Southeast Asian success stories like Singapore, Thailand, and Malaysia.

While this rising transpacific trade has certainly deserved the widespread public attention it has received, it has nevertheless served to overshadow a number of other key characteristics of the global economy, which instead highlight the enduring significance of the Atlantic Ocean. These include the fact that roughly 65 percent of both the world’s nominal economic output and private consumer spending are located in the Atlantic basin rather than in the Pacific basin; that more than 70 percent of the populations of North America, South America, and Sub-Saharan Africa live within the Atlantic basin rather than the Pacific basin; that the Pacific generally takes 2-4 times longer to cross widthwise by ship than the Atlantic does; that the quantity of transatlantic investment is estimated to be 5-10 times greater than transpacific investment; and that Indian and Pakistani trade and labour crosses the Atlantic, Mediterranean, or Arabian Sea far more often they do the Pacific.

The reemergence of transatlantic interactivity as a defining feature of the international system will simply reflect these enduring realities. In addition, it will be driven by a set of economic evolutions that are beginning to revive transatlantic trade relative to transpacific trade, as well as by the continued spread of modern communications and the emergence of African and Latin American economies, which are helping to increase the political and economic significance of the cultural, social, and linguistic affiliations that bind together the four continents of the Atlantic world.

ocean-drainage-basins

Transatlantic Connections

Atlantic regions share a number of important connections with one another. The first is cultural: unlike in Asia, the overwhelming majority of people in the Americas are of European or African heritage. Most have ancestors that arrived within just the past century or two. This could have increasingly powerful political and economic consequences in the future, particularly as the economies of Africa develop and as African populations in the Americas become wealthier and more empowered (most notably the 40 million US African-Americans, 28 million Afro- Caribbeans, 15 million Afro-Brazilians, and 80 million Brazilians who identify as being of mixed ancestry), such that it will no longer just be white Americans and Europeans engaged in the most significant transatlantic partnerships.

The second transatlantic connection is a social one, the result of technology increasingly allowing first-, second-, and even third-generation immigrants in the developed world to maintain relationships with family members, friends, and acquaintances back in their countries of origin. Crucially, immigrants in North America and Europe come overwhelmingly from Latin America, Sub-Saharan Africa, or the Mediterranean basin. More than half of the foreign-born population in the United States arrived from Latin America alone, and there are about four times as many first-generation immigrants in the European Union from Africa or the Americas as there are from East Asia.

There are, in fact, already 2-3 million Latino-Americans living in Spain, and more than 50 million living in the United States. Africa’s emigration rate to both Europe and North America, meanwhile, has risen at a faster pace than that of any other region since 1980, and is likely to continue to do so as a result of the fact that the average birth rate in Sub-Saharan Africa is nearly twice as high, and the per capita income nearly twice as low, as that of any other part of the world.

Finally, and in our opinion most importantly, there are the transatlantic linguistic connections. Over 80 percent of the world’s nearly 1.5 billion native speakers of Spanish, English, French, Portuguese, or Arabic live within the Atlantic or Mediterranean basins; each of these languages is fairly prominent within at least three separate continents. English, moreover, is far more widespread in mainland Europe than it is in any other continent apart from North America (or Australia). Switzerland, Germany, Austria, Scandinavia, the Netherlands, and Belgium are particularly proficient; according to some estimates, 60-90 percent of their populations are able to speak English In France, Italy, and Poland, meanwhile, the share of English speakers is estimated at 30-40 percent, which is still far ahead of countries like China, Japan, Indonesia, and even India.

In Africa, European languages are also spoken more widely than in most other areas of the world. This is partially the result of to the continent’s colonial histories, many of which ended as recently as the 1960’s or 1970’s. It is, however, also the result of Sub-Saharan countries tending to be linguistically diverse, such that their use of European languages as lingua franca remains common practice. Indeed, despite having the world’s lowest density of accessible schools, televisions, computers, and satellite dishes, English is already spoken by a greater number of people in Africa than in more populous India, both as a native language and as a secondary one.

French, meanwhile, is used by an estimated 90 million Africans, Portuguese by an estimated 20 million Africans, and Arabic as far south as the Sahel.24 In South Africa approximately 20 million people understand Afrikaans, a language that is for the most part mutually intelligible with Dutch. Over 85 percent of Africa’s English-speaking population and nearly all of Africa’s French-, Portuguese-, Arabic-, and Afrikaans-speaking populations live within the Atlantic or Mediterranean basins.

Also important is that over 40 percent of Africa’s population is under the age of fifteen. This makes it the world’s youngest region by a considerable margin: by comparison, only 15 percent of China’s population and 29 percent of India’s population are younger than fifteen. Children possess the ability to learn languages many times more easily than adults can, particularly if they have access to schooling, books, media, and modern communications.

Africa’s current generation of children might become the first to grow up with widespread access to such tools, which might therefore help African economies to develop and integrate with the other continents of the Atlantic world. This is also one reason why it would be wise from a policy standpoint for Europe and North America to immediately support economic development in Africa, since doing so would help African populations gain access to more education and information now while they are still young.

Shifting Trade Patterns

In 2013, Chinese coastal cities had an average nominal per capita income of roughly $20,000, nearly as high as those of South Korea and Taiwan. The median age in China is 37, about the same as in the US; in South Korea and Taiwan the median age is 40. These are no longer really “emerging markets”, in other words. Rather than experience another lengthy period of rapid economic growth that would continue to drive up transpacific trade, they will instead be undergoing various structural evolutions, as all maturing economies tend to do over time.

In the coastal areas of China, this evolution is likely to be from an economy oriented around exports of lower-end manufactured goods to an economy that exports value-added goods and services and is more reliant on the private consumption of its own population. Such shifts are natural for a middle-income economy like China to experience, but they may also reduce the quantity of China’s transpacific imports of industrial commodities and transpacific exports of manufactured goods.

Economic growth in the poorer interior provinces of China, meanwhile, or in the even poorer Indian subcontinent, is not certain to bring about the continued rise of transpacific commerce either. The emerging provinces of the populous Chinese interior are likely to trade mainly with coastal Chinese provinces and other countries in Asia, rather than with economies overseas. Today, for instance, in Sichuan and Henan, the two largest inland Chinese provinces, exports account for around just 4 percent of provincial economic output, almost nothing compared to the 47 percent of economic output that exports account for in coastal China’s two largest provinces, Guangdong and Jiangsu.

In addition, given the crowdedness of China’s coastal cities and ports, the interior provinces of China may also increasingly avoid using the Pacific in favour of the more direct “Silk Road” routes to Europe, or in favour of using Myanmar’s commercially navigable Irrawaddy River to directly access the Indian Ocean.The economic emergence of the Indian subcontinent, meanwhile, could perhaps lead transatlantic commerce to rise faster than transpacific trade, as India and its neighbours may partially succeed China in supplying cheap goods or services to consumers in the Atlantic world.

As they emerge, the Indian subcontinent and the Chinese interior will also be importing rapidly growing quantities of oil and gas from the the Persian Gulf, Central Asia, and Russia. Indeed, India and Pakistan already receive roughly 75 percent of their oil and gas imports and an astonishing 30 percent of their imports of goods in general from the Persian Gulf. China’s interior provinces, meanwhile, get around 75 percent of their gas imports from Turkmenistan and Uzbekistan and 30 percent of their oil imports from Russia and Kazakhstan. These imports are likely to increase, not only because of India’s and China’s continued growth, but also because of their shared desire to consume less coal, on which they rely for an average of about 65 percent of their energy consumption.

This need to import large quantities of energy could lead to competition, rather than cooperation, between regional powers like China, India, and Japan, potentially undermining Asia’s ability to cooperate as a more coherent political unit. (In contrast, the Atlantic world consists mainly of synergistic relationships where energy is concerned: Europe is a net energy importer, South America and Africa are net energy exporters, and North America is not too far from reaching the “energy independence” it has long dreamed about). Moreover, because the European Union itself currently receives around 60 percent of its oil and gas imports from Russia, the Persian Gulf, or Central Asia, the increasing energy consumption of Asia may force Europe to begin importing much more energy from the Americas or western Africa instead, further boosting transatlantic trade.

Conclusion: Policy Framework

While the renewed significance of the Atlantic is likely to occur mainly as a result of the commercial, cultural, social, and linguistic factors discussed above, we believe that specific policy goals are nevertheless required to ensure that such a renewal occurs in a manner that is both ethical and politically effective on a global level. Two policies in particular may be advisable in this regard:

One is the implementation of per capita carbon emissions taxes. Such taxes would likely facilitate transatlantic commerce through the export of European energy-saving and clean energy production technologies to the emissions-intensive markets of North America, whilst simultaneously providing both Europe and America with a more responsible and defensible platform in climate treaty negotiations with industrialized Asian economies that have much lower per capita and historical emissions levels.

The other is increasing political outreach and economic assistance to struggling countries, particularly those within Africa. Africa contains many of the world’s greatest challenges if it is not constructively engaged with, and it also has a youthful and diverse population of more than a billion people, vast reserves of natural resources, and linguistic and social connections with Europe and the Americas. All of these qualities make it a necessary component of any revitalized transatlantic project.

Of course, each of these policies deserves much more focus than we have left to spare in this essay. Yet still we feel confident in saying that, if these two policies are diligently and honestly pursued, then the unexpected return of the Atlantic as the central corridor of the international system would not only become more likely to occur, but will also be much more welcome when it does.

Europe’s Mountain Lands — Image of the Day

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I’ve made some graphs about Europe’s mountains, using data from this thorough report made by the European Union:

mountain areas

This graph above shows, approximately, the size of European countries’ mountainous areas (in the y axis) and how big their mountainous areas are as a share of their overall territories (in the x-axis). With the exception of Slovenia, the graph does not include any of the mountainous countries of the former Yugoslavia, since the report does not mention those countries. Nor does it mention Morocco, Turkey, Russia, Ukraine, or some of Europe’s other peripheral non-EU countries. Norway, though, which is not in the EU either, is included in the report, and as you can see it is by far the biggest outlier on the graph above.

Mountain Areas - 2

This graph above shows that, as one might expect, there is a strong correlation between how mountainous a European country is and how much of its population lives in mountainous areas. Switzerland leads in both categories, followed by Norway, Slovenia, Greece, and Austria.

Mountain Areas 3.png

In this graph above the main outliers are Italy and Spain, which have by far the largest populations living in mountainous areas. Had Turkey, Morocco, and Algeria been included, however, they would have been even further ahead of Italy and its 18 million people living in mountain areas.

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Arable Land in Europe — Image of the Day

Arable land, in and around Europe:

Arable Land Stats in and around Europe
From the World Bank: “Arable land (hectares per person) includes land defined by the FAO as land under temporary crops (double-cropped areas are counted once), temporary meadows for mowing or for pasture, land under market or kitchen gardens, and land temporarily fallow. Land abandoned as a result of shifting cultivation is excluded.”

Arable land per capita

Of course, not all arable land is of equal value.

Here’s zooming in on the lower half of the graph:

arable land per capita zooming in

These graphs could be incorrect, though. The data used to make them came from this source (which does not show per capita stats), which seems to have come in turn from the World Bank. But if you look at more recent per capita World Bank data presented here you will see that, although the order of countries is generally pretty similar to graphs shown above, countries like Iceland, Libya, Algeria, and Ireland are no longer at the top.

 

 

 

 

 

 

 

 

 

Eurozone Geopolitics (and the Future of “Czechia”)

Since 2001, when Greece adopted the Euro as its currency, seven countries have joined the Eurozone. Slovenia began using the Euro in 2007, Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014, and Lithuania in 2015. These countries are small. Together, they are home to around 14.5 million people, just 4 percent of the Eurozone’s total population.

This is not surprising: from 2001 to 2008 European countries were more focused on expanding the European Union and NATO than expanding the Eurozone, while since 2008 the economic slowdown in Europe has limited the ambition of European institutions to expand in a meaningful way. Key economies in the region, like Britain, Poland, Sweden, Norway, and Switzerland, not to mention Russia or Turkey, do not appear likely to join the Eurozone any time soon, if ever.

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Still, the admittance of these seven small states has altered somewhat the geography of the Eurozone. Slovakia is the only state among the ex-“satellites” of the former Soviet Union (the others being Poland, Romania, Hungary, the Czech Republic, and Bulgaria) to adopt the Euro, and it is the only Eurozone country to border Ukraine.

Slovenia is the first among the states of the former Yugoslavia to formally join the Eurozone, and its membership gives Austria and Germany a Eurozone-only route to the Mediterranean that bypasses Italy. The Baltics are the only former Soviet Union republics to adopt the Euro, and their inclusion also means that Finland is no longer the extreme geographic outlier of the Eurozone that it was between 1999 (when it and all ten of the other Eurozone countries apart from Greece joined) and 2011, when Estonia joined.

Similarly, the Cyprus and Malta additions mean that Greece is no longer an outlier in the Eurozone. Even before they joined, though, Greece was still only 100 km from Italy — whereas Finland had been more than 800 km from any fellow Eurozone economies before the Baltics joined.

Among the Eurozone members that joined the group prior to 2007, the economies on the outer edges of the Eurozone — Portugal, Spain, Ireland, southern France, southern Italy, Greece, and Finland — have struggled the most during Europe’s nearly decade-long economic downturn. The inner countries of the Eurozone, on the other hand, as well as most of the non-Eurozone countries in the region, have not fared so poorly.

As the graph below shows, Germany and Austria may have been the only two pre-2007 Eurozone members to have experienced per capita income growth from 2008-2013, and Germany in particular (which accounts for an estimated 29 percent of Eurozone GDP) has been a veritable island of low unemployment within the Eurozone.

euro core periph
source: Future Economics

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Even among the newcomer Eurozone states, which apart from crisis-ravaged Cyprus have not done too poorly, it has been the more centrally located countries of Slovakia (the capital of which, Bratislava, is just 50 km from Vienna) and Lithuania (the westernmost Baltic) that have experienced the most growth. Slovakia and Lithuania are both thought to have had per capita income growth of 5.2 percent during the period 2008-2013, whereas Estonia, Latvia, and Malta had growth of just 1.6-2.7 percent, and Cyprus’s income shrank by 20.6 percent.

regional unemployment europe
Within Spain, Italy, and Belgium, the European countries with the largest internal regional divisions in their employment rates, their southern regions have higher unemployment in each case than their northern regions

Now, however, the economic slowdown may be moving towards the inner sanctuary of the Eurozone, in and around Germany, even as it has also lately been afflicting the outer regions of non-Eurozone Europe (Russia, Norway, Turkey, Scotland, etc.), which had performed relatively well in the wake of the 2008 financial crisis. Economies like Germany, northern Italy, and the Netherlands have increasingly appeared to be under threat of recession, while at the same time some of the Eurozone outsider “PIIGS”, like Spain and especially Ireland, are finally thought to be in recovery. Europe may be looking a bit topsy-turvy these days.

Much of this perception is simply anecdotal (which is not to say incorrect, necessarily), an adding-up of Brexit, Deutsche Bank’s falling stock price, the Volkswagen emissions scandal, the Syrian migration crisis, terrorist attacks in Paris and Brussels, and so forth.

There have also, however, been larger shifts. Falling energy prices are likely to help southern Europe more than northern Europe. Slowing economic growth in China, Russia, and other developing markets threatens export-oriented economies like Germany and the Netherlands. People in countries like Germany are getting old. The global shipping industry crash has been hurting parts of the Dutch and Danish economies. And there is a growing fear that Italy’s financial system may be reaching a crisis-point.

Eruzone Net Energy Imports Per Dollar of GDP
source: Future Economics

Developed Economies Energy and oil importsregional energy imports:exports

Now, it may be that these fears are overwrought, and that the centre of Europe will not undergo a reversal of fortune. But perception can often influence reality where economics are concerned, and the perception of countries like Italy, France, and even Germany has undeniably changed for the worse of late. It was less than a year ago that Germany was still popularly viewed as an unassailable economic and political stronghold of Europe, and less than two years ago that Spain, rather than Italy, was seen as the likeliest trigger for a Euro crisis (apart from Greece, of course).

Going Forward

When it comes to the “future of the Euro project”, the inward creeping of economic troubles from the Eurozone periphery to the Eurozone core should raise the question of whether or not the Czech Republic will join the monetary union as well.

The Czech, as well as most of the other Eastern Europe nations, were officially supposed to adopt the Euro, but many guess that this will not happen anymore given the current atmosphere in Europe. Nowadays, a “Czexit” from the European Union seems more likely, arguably, than a Czentrance into the Eurozone. The Czech Republic has the biggest GDP in Eastern Europe apart from Poland, more than double Slovakia’s. It is a “core” state: Prague is actually located closer to Frankfurt than Berlin is, and closer to Berlin than Vienna is.

trade-with-germanyEurope-map

If the Czech Republic does join, Poland would then be surrounded by Eurozone states on all its EU land borders. The Czech Republic’s key trade partners, Slovakia, Austria, and Germany, have all joined now — and both the Czech and the Slovaks are arguably among the world’s five most trade-dependent nations. The Czech Republic also sits in the main route between Germany and Slovakia, both of which are in the Eurozone. Along with the financial fastness of Switzerland, or worldly London, or the half-in, half-out (but mostly out) ERMII monetary system of Denmark, the Czech Republic is now the only place within the core of the European Union not to have joined the Eurozone.

Motor Vehicle Production

Whether or not the Czech Republic joins could impact the future shape of the monetary union: its expansion, contraction, or dissolution. Yet for now the Eurozone seems focused on keeping the economies in its own centre intact, rather than expanding toward new peripheries in Eastern Europe.

Satellite Geopolitics in Eastern Europe

During the past year, the primary focus of the US-Russian rivalry has centred around Iran. The United States put an end to Western sanctions against Iran, and also chose to keep American troops in Afghanistan who support, among others, many of the tens of millions of Afghans who are Shiite Muslims or who can speak Farsi (as opposed to the Taliban, who are Sunni and typically Pashto-speaking). Russia, meanwhile, intervened to aid Bashar al-Assad in Syria, who’s survival diverts Sunni attention away from Iran’s Shiite allies in Iraq.

With Russia now withdrawing some of its forces from Syria and the US hoping to do so from Afghanistan, the focus of the US-Russian rivalry could revert, perhaps, to Ukraine. By comparison to the Middle East, Ukraine has appeared to be very quiet of late.

Russia may have dialed back the conflict in Ukraine partly in order to shift the West’s focus to the Middle East. This of course has not been very difficult to accomplish, given Europe’s influx of Syrian migrants and  America’s election-season rhetoric on issues like ISIS, the conflict in Libya, and Donald Trump’s proposal to ban, for an unspecified amount of time, all Muslims from travelling to the United States.

If the US-Russian focus does move back towards Eastern Europe, one can perhaps guess the rough outlines of any geopolitical contest that may occur there.

Poland will likely be the chief ally of the United States in the region. Unlike any of the five other former satellite nations of the Soviet Union, Poland borders the Atlantic Ocean (via the Baltic Sea). This provides it access to English-speaking countries like Britain, the United States, and Canada, as well as to countries where proficiency in English as a second language has become particularly widespread, most notably in Scandinavia, the Netherlands, and to a lesser extent Germany.

Poland, indeed, tends to be relatively Atlantic-oriented. It conducts a larger percentage of its trade with economies like Britain, France, the Netherlands, Belgium, and the United States than do any of the other ex-satellite countries in Eastern Europe. More than 10% of Poland’s modern-day labour force has worked at one time or another in Britain or Ireland, whereas Hungarians, Czechs, and Slovaks have more often gone to Germany or Austria and Romanians have more often gone to Germany, Austria, Italy, or Spain.

poles in britain
1/60 Poles are living in Britain, according to this source

Poland is not an Eastern Orthodox country, like Romania, Bulgaria, Serbia, Russia and several others in the region are. Rather, its population is predominantly Roman Catholic.

us ancestry
Poland also remains by far the largest “country of origin” in the United States among Eastern European nations, at a time when Americans may be becoming much more informed of their ancestry as a result of increasingly cheap gene-sequencing and genealogical services 

Much more important than Poland having Western ties, however, is that it may be the only state in Eastern Europe large enough to lead a US alliance. Poland’s GDP is estimated to be 80 percent as large as those of its fellow ex-satellites – Bulgaria, Romania, Hungary, the Czech Republic, and Slovakia (formerly Czechoslovakia) – combined.

Among other things, this economic size has allowed Poland’s economy to become relatively self-sufficient: Poland’s imports and exports are thought to be equal in value to just 80% or so of Polish GDP, compared to 110-170% of GDP in Hungary, the Czech Republic, Bulgaria, Slovakia, and Lithuania (though just 75% in Romania). This could make Poland somewhat less susceptible to the whims of its (largely European) trading partners than the other countries in Eastern Europe might be, and so perhaps also a more dependable ally of the United States.

eastern europe satellites

Poland, finally, is the only one of the ex-satellites to border the northeastern Baltic region, which consists of the “Baltic states” of Lithuania, Latvia, and Estonia, the Russian enclave of Kaliningrad (which is situated between Poland and Lithuania), the Russian city of St Petersburg, and southern Finland.

Lithuania, Latvia, and Estonia in particular have become the object of worldwide geopolitical speculation. They are the only former members of the Soviet Union to have joined the European Union and NATO, and, along with Slovakia, Finland, Greece and Cyprus, are the only countries east of Central Europe to use the Euro in place of their national currencies. They are home to six million people, about the same number of people as live in St Petersburg.

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While Poland will probably be the foundation of American influence in Eastern Europe, Romania may become its capstone. Though Romania’s per capita income is still considerably lower than other countries like the Czech Republic, Slovakia, or Poland, its population is significantly larger than any of the other former satellites apart from Poland, as is the size of its territory.

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Romania has Western ties because its language is close to Latin, rather than being a Slavic language like Russian, Polish, Czech, Slovak, Bulgarian, Serbian, or Croatian. This has resulted, among other things, in substantial Romanian diasporas having formed in Spain and especially in Italy. A Romanian living in Italy can arguably become near-fluent in Italian within just a month or two, without much difficulty.

romanian diaspora
The Romanian Diaspora, according to Wikipedia

Crucially, Romania may also be able to exert influence in Ukraine. Romania shares a roughly 800 km frontier with the former Soviet Union (by comparison, Poland has a 900 km or so border with the former Soviet Union, Hungary and Slovakia have 70 km ones, and the Czechs and Bulgarians have none), and both Romania and Ukraine are economically oriented toward the Black Sea.

Romania and Ukraine both also surround Moldova, which is a mostly Romanian-speaking country but home to Ukrainian, Russian, and Turkic Gaguaz minority populations. This is a particularly contested region; Russia has troops stationed in Moldova’s secessionist province of Transnistria, while the Black Sea coast, which includes Ukraine’s second city Odessa (just 140 km from Romania),  is the only part of western Ukraine in which politically “pro-Russian” Ukrainians and “ethnic Russians” may still be prominent.

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Official_Russian_language_support_in_Ukraine

In response to a US-Romanian axis, Russia could attempt to press Romania from all sides by building up influence in Ukraine, Moldova, Bulgaria, Serbia, and Hungary. Ukraine and Moldova are already home to Russian soldiers, while Serbia and Bulgaria are both Slavic and Orthodox countries that have historically often looked to Russia for support when fighting against their  non-Slavic, Catholic, or Muslim neighbours like Turkey, Greece, Albania, Croatia, Bosnia, Hungary, and Romania. Russia continues to have ties to Bulgaria, and especially to Serbia, in the present day.

black-sea-map
South of Poland, Romania is also the only place along the western frontier of the former Soviet Union in which the border with the European Union is not located entirely in the Carpathian Mountains

Hungary, however, is neither Slavic nor Orthodox. Still, Hungary would be a critical anti-Romanian ally for Russia to attempt to recruit. The large and rugged Hungarian-Romanian borderland, located in and around the region of Transylvania, has long been politically fraught. It lies on the Hungarian side of the Carpathian Mountains and is home to substantial Hungarian and Roma (who are distinct from Romanian) minority groups, yet, since roughly the end of the First World War, has mostly been part of Romania.

hungarians in romania
“Ethnic Hungarians” in Romania
Romani in Romania
Roma in Romania tend to live either in and around Transylvania or in and around the country’s capital city of Bucharest

While Romania holds the upper hand in this region, Hungary still has leverage over Romania because it controls the land and river routes that link Bucharest to markets in Austria, Germany, and northern Europe in general. Russia has been moving to form closer ties with Hungary, as Hungary’s Fidesz-led nationalist government has angered many of the other countries in the EU in recent years.

Danubemap

 Hungary and Bulgaria are both potentially significant to Russia for other reasons as well. Bulgaria can give the Russians access to the Mediterranean Sea via Greece or the Balkans, without having to pass through the Turkish Straits. It is just 250 km from the Black Sea to the Aegean Sea via Bulgaria and Greece, and 600-700 km from the Black Sea to the Adriatic via Bulgaria and the Balkans.

Indeed, given Russia’s reliance on natural gas exports and Italy’s reliance on gas imports (Russia is the world’s leading gas exporter, and Italy the world’s third largest gas importer), this trans-Bulgarian route to the Adriatic is one that Russia may need to avoid recession and at the same time maintain its influence in Italy. In turn, Russia may try to use Italy to put pressure on Romania, given the relatively close connections that exist between the two Latin countries.

europe_gas
Note that Poland, the Czech Republic, and especially Romania are not very dependent on Russian gas compared to Bulgaria, Slovakia, and Hungary

Russia may need Hungary, meanwhile, to resist interfering with Russia’s interests in Ukraine (there are an estimated 200,000 ethnic Hungarians living in western Ukraine), serve as a wedge between Poland and Romania, and ensure Russian access to Central European economies like Germany.

If, hypothetically, Russia were to cow western Ukraine into submission and then be shunned as a result by US allies like Poland and Romania and by German allies like the Czech Republic and Slovakia (The Czech Republic and Slovakia are deeply entrenched in the modern German trade network), Hungary could be left as the only land route linking Russia’s sphere of influence to potentially “neutral” European economies like Italy, Austria, Switzerland, or France.

EasternEuropeMap

Moreover, Hungary is the only ex-satellite state apart from Romania that borders both the former Soviet Union and the former Yugoslavia. Hungary’s leading city Budapest is just 300 km from Serbia’s capital Belgrade, 300 km from Croatia’s capital Zagreb, 380 km from Slovenia’s capital Ljubljana, and 400 km from Bosnia and Herzegovina’s capital Sarajevo. Considering that Budapest is also only  215 km from Vienna, 160 from Bratislava, and 400 km from the outskirts of Prague, this puts seven European capital cities within a 400 km radius of Budapest. The only other EU capital which can come even close to saying the same thing for itself is Sofia, Bulgaria’s capital.

Russia might ideally like to ally itself with Germany or one of Europe’s other big economies, but if the Germans are not willing to participate in such a relationship then Hungary could be the place where a tug-of-war between Russia and America, or between Russia and Germany, or between Russia and “the West”, will occur. And if Russians do successfully win Hungary as a partner, thus potentially blocking off access to Romania from Poland, the focus of the conflict might then shift to Southeastern Europe, as the Americans could seek an alternative route to Romania.

During the Cold War the Americans involved themselves in Southeastern Europe by folding both Greece and Turkey into NATO (in spite of their intense rivalry with one another), but of late US-Turkish relations have been challenged by the wars in Syria and Iraq, while Greece has been trapped in an economic crisis and so unable to pick up the slack.

During just the past few months, though, more hopeful discussions than there have been in years have taken place regarding the possibility of the Greeks and Turks in Cyprus finally reunifying. This may perhaps portend an increasing cooperation between Turkey and the West, particularly as it has occurred around the same time as Turkey’s relationship with Russia deteriorated sharply following Russia’s entrance into Syria and Turkey’s downing of a Russian military jet there.

Then again, it is also entirely plausible that American relations with Turkey will continue to decline, and that the Greek economy will not soon recover in any meaningful way, leaving the United States to look instead to countries like Italy, Bulgaria, and the Balkan states in order to form a southern pathway to Romania and the Black Sea.

Clash of %22Civilizations%22
Greece’s fall has been Turkey’s rise

Of course, nothing like this scenario is guaranteed to happen. This is just a very rough outline of what a new US-Russian political confrontation in Eastern Europe might look like. Given that the past may not necessarily resemble the future, and in particular that technological developments could perhaps render some traditionally important geopolitical imperatives irrelevant – to give just one example, air power might allow countries like the United States to access their allies without possessing a land route to reach them – this outline may not end up being very prescient. Ideally, none of the ex-satellites will have to choose between looking eastward to Moscow or westward to Washington.


For a discussion of the conflict in Ukraine in particular, see The Geopolitics of Ukraine

The Not-So-Tiny Baltics — Image of the Day

When, in the media, the three Baltic states of Lithuania, Latvia, and Estonia are mentioned, usually in a sentence like “Russia may again threaten the tiny Baltic states, which unlike Ukraine are members of NATO and the EU”, they are frequently referred to as  being “tiny”.

This is certainly true of their populations: only 3 million people live in Lithuania, 2 million live in Latvia, and 1.3 million in Estonia. (If, however, you include the Russian Baltic enclave of Kaliningrad, which is located between Lithuania and Poland, or the Russian Baltic city of St Petersburg, which is between Estonia and Finland, there are an additional 5.5 million people). It is not nearly as true of the Baltics’ territory sizes, however: they are actually not so tiny, but only appear so because they are located next to much larger countries, most notably Russia.

Baltic_Sea_map

All three Baltic states have larger territories, for example, than the Netherlands, Denmark, Belgium, and Switzerland, countries which most people probably assume are bigger than they are. In per capita terms, moreover, the Baltics have quite a bit more land than other European states outside of neighbouring Scandinavia or the former Soviet Union. (The Baltics’ population densities are about the same as the United States’). And in terms of per capita arable land and per capita forested land, their lead over other European countries is even greater.

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population density

 

 

Image of the Day – Germany at a Crossroads

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Germany, which accounts for an estimated 21% of the European Union’s GDP and has an unemployment rate that is less than half as high as the EU average, is now facing five big economic challenges:

1. Germany has one of the oldest populations in the world: it’s old age dependency ratio is as high as Greece’s and higher than any other country apart from Italy and Japan; the share of its population aged 80 or older is higher than in any European country apart from France or the “PIGS” (Portugal, Italy, Greece, and Spain). The largest portion of Germany’s population is between 45-60 years old. Old age is beckoning.

2. Whereas Britain, France, Italy, Russia, India, China, and Turkey depend on exports of goods and services to account for an estimated 20-30 percent of their GDPs, and the United States, Japan, and Brazil for just 10-20 percent, Germany gets approximately 46 percent of its GDP from exports. As economies throughout Europe and the developing world are simultaneously growing slowly right now, such a dependence on exports may not be a good thing to have.

3. Low energy prices are not likely to benefit Germany as much as many think, nor will they benefit Germany’s neighbours in northern Europe, central Europe, or especially the former Soviet Union too much (see links for more: herehere, or here). According to the Wall Street Journal, oil imports account for just an estimated 2.4% percent of Germany’s GDP, compared to 3-6% in Spain, Greece, Turkey, Poland, Japan, South Korea, Taiwan, and India, while, according to the World Bank, imports of energy in general account for approximately 62% percent of Germany’s overall energy use, compared to 70-95% in Spain, Portugal, Italy, Turkey, South Korea, and Japan.

4. Germany is facing economic and political diminishing returns in its eastward economic integration. In the past generation it has looked to East Germany and Eastern Europe, but Eastern European countries are no longer so cheap. Czech Republic and Slovakia now have nominal per capita GDP’s of around $19,000, for instance, up from just $5700 in the year 2000; Russia has reached $14,000, up from $1800 in 2000. Increasingly there are also political limitations of various sorts to German involvement to its east. Many Eastern European countries, for example, would rather not see the Germans and Russians become too close with one another economically, and also do not want to become German economic satellites themselves. Things may be becoming more politically fraught than they were a decade or two ago.

5. A similar dynamic is true of Germany’s domestic politics. In the 1990s Germans could unite over the goal of German reunification, while in the 2000s they could unite over European expansion into Eastern Europe, a region located for the most part directly on the borders of Germany or German-speaking Austria. Now, though, with both those goals having been realized to a large extent, there could be room for inter-German regionalism to become more prominent.

It has still been just 145 years since German unification, and 25 since reunification; the three-way divide between eastern Germany, western Germany, and southern Germany, aka Bavaria, may still be somewhat in play. This was seen recently, when Merkel’s longstanding political coalition finally came under pressure as a result of internal opposition from Bavaria over the refugee issue. Germany is under no threat of dissolution, obviously, but regionalism could nevertheless threaten the ability of its central government to continue forming majorities, and it could threaten the ability of any majority governments it does form to take decisive political action.

Germany’s parliament is already regionally split to a slight degree: the Christian Social Union in Bavaria, the regional sister-party of Angela Merkel’s national Christian Democratic Union, holds 7 percent of the seats in Germany’s parliament. Southern German states, moreover, in particular Bavaria but also neighbouring Baden-Wurttemberg, tend to be more right-wing in their voting patterns, whereas eastern German ones tend to be the most left-wing. (Here’s an article describing some of the geographical patterns in Germany’s 2013 election). Bavaria and Baden-Wurttemberg are the second and third most populous of Germany’s 16 states, and have the closest ties to Austria.

There may be other triggers as well for  regionalist challenges within Germany. If, for example, Europe’s banking and political system, which is currently under pressure from struggling economies like Italy, Greece, and France, ends up being badly damaged, it may hurt western or southern Germany more than eastern Germany. This is because Frankfurt (in central-western Germany) is Europe’s banking and transportation hub, and because southern Germany has relatively close connections with nearby northern Italy while western Germany is relatively close with France,  Belgium, and the Netherlands (the latter two being Europe’s political and shipping hubs). Of course, this is all extremely speculative; I am not actually saying that  political regionalism will reemerge within Germany, only that it cannot be ruled out.

The Crossroads

There are, perhaps, two basic roads Germany can now go down. One is to become a more nationalist, more insular country. German nationalism could be used as a tool to attempt to bring about cooperation in parliament. Germany could restrict immigration flows as most other countries (and Bavaria) have wanted to do. Germany could try to use technology rather than immigration to solve its looming old-age crisis. And Germany could attempt to overcome its dependence on exports by reorienting its economy: either by having the government buy up the surplus goods that Germany now exports to other countries, or else by producing fewer goods and attempting the difficult task of making money in other ways instead.

On the other extreme, Germany could become even less nationalist and even less insular than it is now — and it is already quite a bit less nationalist or insular than most other countries, as a result of its 20th century history and export-intensive economy. It could continue to welcome immigrants from places like Africa, Arabia, and Asia, which could help it to address its old-age problem and, along with the population of Turks and many other groups already living in Germany, would make Germany a globally diverse country, somewhat like Canada, Britain, and the United States are. Germany could continue to happily use the English language without being worried that this will threaten the German language, rather than move towards a linguistic protectionist model as countries like France often have. And Germany could continue to integrate economically with Eastern Europe, Russia, and Turkey, but become so non-nationalist in its identity that this expansion will not be as likely to create a political backlash.

Which direction will Germany choose? I suspect, regretfully, that it will be the former. Nationalism may simply be too difficult for a nation to overcome.

 


For more, read Germany’s Trade Empire

 

Image of the Day – Islands of the Atlantic

As a follow up to the post about Pacific islands from last month, I decided to make another chart showing islands in the Atlantic. This chart is not as extensive as the previous one, though; it only shows islands that have populations between 100,000 and 1 million. Also, it may be missing a couple of islands, or have population statistics that are already a bit outdated, so if you spot a missing island or a population mistake please post a comment about it below. And if you have a favourite Atlantic island, I would like to hear about that as well!

atlantic islands