OIL AND ECONOMY: IMPLICATIONS FOR EUROPE’S SOCIETY

Energy supplies that are reliable and economical are essential for the European economy, but European states do not have nearly enough energy resources to meet their needs. Currently, imports are required to provide almost 90% of the EU’s oil needs. The EU has lots of options for most of its energy imports; oil is abundant and can be traded and delivered around the world in a variety of ways. Russia is a country having tense relations with the EU. The EU’s measures to fight energy insecurity have both internal and external aspects. Within the EU, renewable energy and energy efficiency are encouraged, as well as the integration of European gas markets. Energy is at the core of the EU’s relationships with international bodies on the outside. Environmental challenges because of their energy consumption can also not be neglected.

The possibility of the worst stagflation crisis to reach energy importing economies has been increased due to the rising prices of oil and gas which is caused by the Ukraine crisis and Western views. Crude oil prices have seen to be increased after the secretary of the U.S stated that Washington has been in very active negotiations with European Union allies about the Russian oil embargo. U.S lawmakers assessed bipartisan legislation, while Europe planned strategies to minimize dependency on Russian Fossil fuels. It is difficult because the EU’S reliance on Russia for oil has fostered a sensitive issue in which guaranteed energy supplies and diplomatic independence have become a national political matter. Oil prices surged to above $139 a barrel while European gas prices reached €335 per megawatt-hour, up around €16 a year ago. The rise in these prices would generate higher inflation and will put a huge strain on consumers.

40 percent of the European Union country’s gas is being imported from Russia. According to the economists, if the high rates of energy will resume then it will lead European economies into recession. Oil price shocks of the 1970s are an example of triggering intense inflation and recession in most industrialized nations. Due to the ongoing Ukraine and Russia conflict, EU countries may suffer because the EU receives natural gas directly from Russia. Refugees will also affect the economy of the EU and the EU like every other country, has not even recovered from the economic crisis caused by COVID. The European Union strives to protect the environment and the livelihoods of its million citizens. It must broaden its sources of energy rather than restrict them to upgrade its economy and people’s lifestyles. Otherwise, this will not be the last catastrophe.




CURRENT PAK-US RELATIONS : AN ANALYSIS

Pak-U.S Relations Flashbacks:  

In order to analyze the current Pak-U.S relations, there is a need of shedding a light upon the historical background of their relations.

 

Pakistan is the country that holds the great geostrategic importance. Right after the independence, it faced security and economic issues. Earlier, U.S was against the creation of Pakistan and divided India but later on, Pakistan and U.S did establish ambassadorial relationship. During the cold war era, Pakistan and U.S foreign policy revolved around military-diplomatic relations and defense policies. In this war of capitalists vs. communists, Pakistan chose U.S block rather than the communists Soviet’s block because it suited the Pakistan’s ideology, democratic ideas of the leaders and its economic interests. U.S foreign policy has always involved the idea of establishing its ideology like democracy or capitalism in the states. So, it did the same in the cold war and allied with Pakistan to increase its sphere of influence in the South Asian Region. India was pro Soviets and Pakistan was pro-U.S.

Since the 1950s, each side was using the other to enhance its own agenda that significantly affected each other’s interests. The goals of the Pak-US relationship were only partially served. U.S had also put sanctions on Pakistan. For example, after 1965 Pak-Indo war, U.S put sanctions on Pakistan and there was an economic collapse in Pakistan. Pakistan also fought along with U.S against the Soviet Union in Afghanistan. After the Soviet’s withdrawal from Afghanistan, U.S imposed nuclear sanctions on Pakistan as well. In the post 9-11 era, Pakistan was also blamed for terrorism but then, joined hands with U.S to fight against terrorism. U.S interests lied in Pakistan in order to fight the war on terror in Afghanistan and it was also in Pakistan’s interest to have peace in its neighboring country or else, there would be no peace in its own region.
Fast forward, there have always been ups and downs in their relationship.

Analysis:

Pakistan-U.S relations have been much better if they had not solely relied on security threat perceptions and strategic interests. There would have been a sustainable relationship among them if the economic factor was involved. By economic factor, it does not mean the financial aid provided by the U.S to Pakistan, but the economic diplomacy that is among China and Pakistan. Projects like CPEC and BRI have and will strengthen the relationship between Pakistan and China for the long term. This is because of the involvement of the economic interests of both countries.

Right after the U.S withdrawal from Afghanistan in 2021, zero diplomacies in Pak-U.S relations has been observed. The role of Pakistan in the ‘’U.S-Afghan Taliban negotiations’’ process, and the sacrifices made in ‘’war on terror’’ have also not been acknowledged by the U.S. It seems like there is no common interest left between both of the states that can bind both of them together.

Keeping good relations with Pakistan had been beneficial for U.S since it could contain the economic influence of China. Now, when China has involved Pakistan and many other South Asian regions in its economic activities like CPEC and BRI, still, no counter-strategy is visible from the U.S’s side. There is a big possibility that U.S foreign policy is focusing on the other regions (like the Middle East, Europe or Central Asia) and will shift again towards South Asia. This fact cannot be denied that countering China’s economic hegemony in the top priority of U.S’s Foreign policy and it might be secretly working to counter this. China is filling the vacuum left by U.S in different regions for example, RCEP which is Regional Comprehensive Economic Partnership is the first multi-lateral free trade agreement that aims to create a consolidated market for the 10 member countries and their trade partners. RCEP in an agreement signed between 10 ASEAN states and also China, Japan, South Korea, New Zealand, Australia are signatory states. These countries contribute 29 percent to the world’s economy. This agreement has the potential to provide liberal facilities and a competitive investment environment in the Asia-Pacific region. China joined RCEP in response to the US-led Trans-Pacific Partnership. Also, COVID 19 led the countries to join this economic emancipation. This will extend the China’s influence in Asia-Pacific, and it is perceived that this is how it is countering US strategic pivot to Asia. RCEP is seen to be a political victory and not just an economic victory. U.S political influence in this region can also decrease. RCEP also gives an opportunity in wake of the decoupling of China. This may improve China’s perception and relation with Southeast Asian nations. America exports around 5.3 billion goods to Japan but it will now decrease since Japan will have better access to Chinese firms. RCEP impels U.S to respond to geopolitical primacy in the region. India did not participate in RCEP because according to them their local economy will be affected but on the other hand, it will also affect India’s look East policy. India can however collaborate with U.S more. CPEC and RCEP will have a linkage. It can also create economic opportunities for Afghanistan. Pakistan will have stronger relations with China. This will create two blocks “Indo- U.S” and “Pak- China” block. According to the US president Biden, America has to align with other democracies.

This all has affected U.S-Pakistan relations and it has been assessed that Pakistan has close economic ties with China and there is a strong bond. So in order to contain China’s economic expansion globally, America is looking towards the other regions. China has very much a Pro-Russia policy. Keeping that in view, Pakistan’s stance has remained neutral in the Ukraine-Russia war Even though Ukraine did not get enough support and defense from U.S in the Russia-Ukraine war because of the U.S vested interests in Russia but still Pakistan has been criticized for remaining neutral, the irony! This has further complicated US-Pakistan relations. If we analyze the current foreign policy of Pakistan, there is a lot of focus on the economic diplomatic relations other than China as well. For example, Engage Africa Policy, Strategic Engagement Plan with European Union and Strategic Economic Framework with Turkey. Pakistan and China have also involved Russia in the BRI project.  Pakistan has no such economic diplomatic relations with U.S but still, it would never be an easy decision for the United States to entirely abandon or fully engage Pakistan.




UKRAINIAN REFUGEES; IMPACT ON EUROPEAN UNION

UKRAINIAN REFUGEES; IMPACT ON EUROPEAN UNION

BY HAMNA SEYYED

 

                  The crisis comes unexpectedly and is often unforeseen. Similarly, the Russian and Ukrainian forces’ abrupt war on 24th February 2022, was unexpected and left Ukraine in a chaotic situation. The destruction caused by the military invasion created unlivable circumstances for the Ukrainians and they had to leave. Therefore, it led to conflict-induced migration and the displacement of the Ukrainians. Once again Europe is dealing with the refugees as it did back in 2015. As per the United Nations, 100,000 Ukrainians are already being displaced.

For the time being, Refugees are being welcomed by the European Union states like Poland, which plans to host up to 1 million Ukrainians, as well as Romania, Hungary, Slovakia, and Moldova, where 4,000 Ukrainians came, are among the host countries. Yet, these countries are presently unprepared to stop the influx of refugees expected to arrive on their borders in the coming weeks. Hosting refugees is not an easy task at all. The major receiving countries in Central Europe can simply lack the capacity to address such needs on a large scale and over a long period.  Conflict-Induced Migration is supposed to be temporary but the migrants or refugees can only be sent back once the conflict from their homeland gets over but the situation does not seem to get fine in Ukraine.  Ukrainians’ needs range beyond the supply of temporary food, clothing, and shelter to get them through. They are at risk of being evacuated for a longer duration, which requires institutional pathways to legal status, reintegration services, housing, education, and healthcare. Refugees also require mental and social rehabilitation. Living in the era of the pandemic, they also require vaccination against Covid-19. Not only this, but European Union states still have to do a lot more for them, it will entail creating a regional resettlement plan and ensuring that overpopulation does not occur. Ukrainians may stay in the EU for up to three months without a visa, but it’s uncertain what sort of legal status they will have further than that. That has to be handled as well. The refugee crisis in Ukraine provides Europe with not only an important opportunity to prove its humanitarian values and commitment to the international refugee protection regime but it also offers a critical interesting perspective that now it is a challenge for Europe that whether it will be able to embrace the humanist spirit of the ‘’1951 Refugee Convention’’ or not. All the European states have different systems that they follow but, it will be mandatory for all member states to apply the provisions of this Convention. According to Article 3 of the Convention, ‘’The Contracting States shall apply the provisions of this Convention to refugees without discrimination as to race, religion or country of origin.’’

The best-case scenario can be that the violent conflict transforms and the pull factors in Ukraine shall be created so the refugees voluntarily return to Ukraine. The worst-case scenario can be analyzed in a way that if the conflict prolongs, the refugees have to stay for a longer period in the European Union states. This will be challenging to tackle.  As a refugee or the conflict-induced migrant is the one who is coming from the conflict zone and brings a lot of grievances along with him, survival will always remain the priority and he will fight for it to an extent. If the refugees are not taken proper care of by the host states, the threat of host-stranger conflict can arise. It has been assessed that the refugees often have a cut-throat policy. Refugees can pose a threat to the national security of the states and their ability to govern. One of the examples of the refugee issues is of Afghan refugees in Pakistan. Who knew that the conflict in Afghanistan will remain protracted? Pakistan is facing a refugee crisis now. We live in the world of globalization and it has both, advantages and disadvantages.  Pakistan’s culture and security did get affected by the Afghan refugees. The Refugees create an economic burden in the host states and because of this instability can be caused. Refugee identity crises have also seen to emerge in the case of many refugees throughout history. Refugees can pose a threat to a state’s sovereignty. Furthermore, the security issues like cross-border terrorism, drug trafficking, and illegal trade activities cannot be neglected. The root causes of the refugee’s problems have to be addressed and in the case of Ukrainian refugees, European Union states that are dealing with the refugees shall play a diplomatic role in terms of the Ukraine-Russia war. It will not only help the refugees but the European Union itself as well. European Union needs to be proactive and adopt policies for the refugees for the short, as well as a longer period of time with United Nations’ assistance.