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Balance of Payments and Balance of Power

Balance of Payments and Balance of Power

When a country suffers a balance of payments crisis (an inability to pay back its foreign debts), it’s invariably painful for many of its citizens and creditors. But in some cases, it can also produce geopolitical shockwaves. If Turkey’s economic crisis worsens and the combative Erdogan looks abroad to change the subject from his own failings, keep an eye on three things:


First, to Syria – in the northwest, Bashar al-Assad’s forces are moving to crush the last rebel holdouts in Idlib province, where Turkish troops have crossed the border to set up their own observation posts; while in the north, tensions could flare again between Turkish troops and US-backed Kurdish forces whom Ankara considers terrorists.

Second, if Erdogan does look for an external lifeline, his choice about whom to ask will be fraught with geopolitical overtones, as the IMF, Russia, China, and Qatar may all emerge as potential backstops, each with its own agenda, conditions, and geopolitical connotations.

Lastly, don’t forget that more than 3 million Syrian refugees are still housed in Turkey under a deal between Ankara and Brussels in which the EU helps to pay for their lodging and care. Letting even a small number of those people attempt to cross into Europe could quickly inflame what are already volatile European politics surrounding migrant policy.

Meet Ian Martin, an English Professor from Glasgow who is now head of Communications for Eni's International Resources. Approaching his work in the same way he used to hold his lectures, Ian is dedicated to listening and making people around him comfortable. Having working in both Milan and London, Ian utilizes his ability to communicate in different languages and cultures to prepare Eni's global messaging strategy. "Communication is a transfer of humanity," he says, and his job is as much centered around people as it as around language.

Watch Ian's human approach to communications on the most recent episode of Faces of Eni.

How to capture the essence of this incredible, terrible year in a few short words and without using profanity? It's not easy.

Thankfully, the dictionary website Merriam-Webster.com has released its list of most heavily searched words of 2020, and they tell the story of an historic year in US politics and the life of our planet. Here's a sample.

The top word, unsurprisingly, was "Pandemic," a disease outbreak that covers a wide area and afflicts lots of people. In 2020, the coronavirus crisis hit every region of the world, triggering a public health, economic, and political emergency on a geographic scale our planet has never experienced. Differing responses to that problem defined the politics (and geopolitics) of 2020.

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While recent news from Pfizer, Moderna and AstraZeneca on the efficacy of their respective COVID vaccines is encouraging, it has also given rise to bidding wars between wealthy countries trying to secure the largest supply of the new drugs for their citizens. Meanwhile, many governments in emerging market economies, where healthcare infrastructure is generally weaker, are worried they'll be kicked to the back of the line in the global distribution process. Indeed, history bears out their concerns: while a lifesaving HIV treatment hit shelves in the West in the mid-1990s, for example, it took years to become widely in Africa, which saw some of the worst HIV outbreaks in the world. But here's the catch: even if wealthy countries manage to obtain large supplies of vaccines to immunize their populations, the interconnected nature of the global economy means that no one will really be out of the woods until we all are. Here's a snapshot of how many COVID vaccines select countries have already purchased.

Afghanistan's small breakthrough: For months, disagreements over a range of political issues have hamstrung the intra-Afghan peace talks brokered by the Trump administration that aim to bridge the years-long conflict between the Afghan government and the Taliban. But this week, a significant breakthrough was made on the principles and procedures governing the talks, that, experts say, will help push negotiations to the next phase. One key advance is agreement on the official name of the Afghan government, an issue that stalled talks earlier this year. Still, progress is fragile. Taliban violence and efforts to seize territory have only increased since the militants and the US reached a deal in February on a blueprint for an American troop withdrawal. And the Trump administration says it aims to pull out all but 2,500 US troops by mid-January, whether the Taliban have kept their end of the deal or not. What's more, while this week's development puts the parties one step closer to an eventual power-sharing agreement, it's unclear whether the incoming Biden administration will even honor the Trump administration's deal with the Taliban.

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Two weeks ago, Russia secured a deal to build a naval base in Sudan, its first new military facility in Africa since the end of the Cold War. The accord is a major milestone in Moscow's wider push to regain influence, and income, on a continent where the Kremlin was once a major player.

But with the ideological and military contests of the Cold War long over, what is Moscow doing in Africa today?

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Reasons for Hope: COVID and the Coming Year. Watch on Friday. Dec 4 2020 12 noon - 1 pm ET

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