Making Political Risk More Politically Relevant

Journal of Political Risk, Vol. 7, No. 12, December 2019

Alicia N. Ellis, PhD, Arizona State University

Ukraine’s Independence Square in Fall 2013, taken only months before it erupted into violent protests culminating in the overthrow of the sitting government. A busy commercial and tourist hub that day, there was no sign of the war zone it would soon resemble. Photo: Alicia Ellis.

Executive Summary

This report assesses the state of the academic literature on political risk and evaluates its contribution to understanding and mitigating risk for both business and political professionals. This assessment concludes that policy-relevant research has been in some cases limited and, in most cases, ineffectively communicated. Several major problems contribute to the persistent disconnect between policy, industry, and academia. Political scientists do not approach their research questions in a communicable way, nor do they often take the necessary step of connecting their research to an end use. Risk rating organizations have become overly reliant on cross-national aggregate models. Mixed methods research has been applied inappropriately and thus, ineffectively. Systematic biases have been introduced to models at a structural level, and conceptual difficulties plague some of the most basic questions for risk analysts.

Despite these problems, opportunities do exist for bridging the gap between research and practice, and producing policy-relevant research. This article proposes some recommendations for moving forward. Research questions must be structured in new ways to reflect the needs of end consumers that include non-academic professionals. Several research agendas in need of a practical-minded researcher are put forth, including the rise of China and what it means for global trade patterns, the ‘buy local’ movement spreading across the United States, and the problem of democratic consolidation. For each problem identified, the article makes suggestions for how we might reframe the questions in a way that produces more useful research on political risk. Continue reading

Forget Presidential Politics: Sri Lanka’s Green Movement Is Its Best Hope Against China

Journal of Political Risk, Vol. 7, No. 11, November 2019

By Bertie Harrison-Broninski

Pumps dredge sand to reclaim land at the site of a Chinese-funded 1.4 billion USD reclamation project in Colombo on December 5, 2017.
Half of the reclamation project to build Colombo Financial City, previously known as Colombo Port City, has been completed, with Sri Lanka hoping to turn it into an international financial centre with special laws protecting foreign investment. / AFP / LAKRUWAN WANNIARACHCHI / Getty Images

Sri Lanka, like many countries in the Belt and Road Initiative (BRI), is not powerful enough to resist China on political or economic grounds – but hope lies in its burgeoning environmental movements.

This Saturday (November 16th), Sri Lankans go to the polls to elect a new president. The frontrunners are Sajith Premadasa, current Minister for Housing, Development, and Cultural affairs, and Gotabhaya Rajapaksa, the ruthless military leader who played a large part in defeating the ‘Tamil Tigers’ during Sri Lanka’s civil war. Both have family ties to ex-presidents: Premadasa’s father, Ranasinghe, was president 1989-1993, and Rajapaksa’s brother, Mahinda, was from 2005-2015.

International media has largely focused on the geopolitical implications of the Rajapaksas regaining power. Mahinda Rajapaksa is seen as a key player in initiating China’s current economic ‘debt trap’ over Sri Lanka, which has now led to 99-year leases on territory around Hambantota Port and Colombo, where China is constructing an entire ‘Port City’. A President Gotabhaya Rajapaksa would rightly be seen as a return to China-friendly Sri Lankan foreign policy after President Maithripala Sirisena’s more US-aligned years in office. Continue reading

War In The Taiwan Strait Is Not Unthinkable: Some Will Lose More Than Others

Journal of Political Risk, Vol. 7, No. 11, November 2019

By Grant Newsham

Screen capture of Chinese state media video of People’s Liberation Army (PLA) troops training for an assault on Taiwan’s presidential office. Pictured is a mock building at the Zhurihe military base in China, that mimics the actual building in Taipei. The video aired July 5, 2015. CCTV via Apple Daily.

Whether anyone actually ‘wins’ a war is a philosophical debate.  The Germans and Japanese in 1945 might have thought wars do indeed have winners.  But perhaps it’s better said that in most conflicts some parties ‘lose more than others.’

Such would be the case if Beijing attempted to militarily subjugate Taiwan.  And Xi Jinping just might do so.  He declared in a January 2019 speech that “we (China) do not promise to renounce the use of force and reserve the option to use all necessary measures (to take Taiwan.)”[1]

The Battle for Taiwan would have truly global consequences, akin to the invasion of Poland by the Soviets and Germans in 1939.

However, much of the debate over a Taiwan Strait conflict focuses on preparation for and conduct of the PRC’s attack: whether Beijing will or won’t attack, what an attack might look like and Taiwan’s ability to defend itself, whether the US will or should get involved and whether it ought to sell Taiwan ‘this or that’ weapon.  Such discussion is useful, but the actual consequences and longer-term ripple effects of a fight over Taiwan deserve much more attention.[2]

This paper examines key aspects of what happens once the shooting starts, and the follow-on global economic and political effects.  The envisioned scenario is a full-scale PLA assault against Taiwan, but it’s worth noting that even a ‘limited’ assault–such as against one of Taiwan’s offshore islands–may not stay limited for very long: given Beijing’s oft-stated determination to take all of Taiwan, an off-shore island assault would only constitute a tactical objective in the march on Taipei, and would also have serious and wide-ranging political and economic consequences.

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An Oligarch, A Think Tank And The Rise Of American Kleptocracy?

Journal of Political Risk, Vol. 7, No. 10, October 2019

By Bertie Harrison-Broninski

Industrialist Len Blavatnik, left, and former U.S. President Bill Clinton speak at the Film Society of Lincoln Center 40th Anniversary Chaplin Award Gala at Lincoln Center in New York, U.S., on Monday, April 22, 2013. Clinton presented Barbra Streisand with the award honoring her work in film. Photographer: Amanda Gordon/Bloomberg via Getty Images

Ukrainian-born billionaire Lenonard Blavatnik has ignited controversy once again with his lavish donations to British and American institutions. This time, it is by giving $12 million to the Council of Foreign Relations (CFR), an influential thinktank with close ties to senior business, government, intelligence and foreign-policy communities in the US.

The move has prompted a series of open letters signed by “U.S., European and Russian foreign policy experts and anti-corruption activists”, who fear that such donations are “a means by which Blavatnik exports Russian kleptocratic practices to the West”. Many of them are CFR members themselves, and their letters are rounded off with footnotes demonstrating Blavatnik’s links to Putin’s inner circle and questioning the sources of his wealth. Their second letter states that the impact of the donation “extends far beyond the potential value of the money…beyond even CFR. That impact will touch upon the health of American democracy.”

None of this will come as any surprise to those who have followed Blavatnik’s spending over the past 15 years. While his philanthropy has seen him knighted by the Queen in the UK and hailed by some as one of the world’s most generous benefactors, his donations within political and educational spheres have repeatedly led to scrutiny and protest.

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What The Philippines Must Do To Defend Itself From China

Journal of Political Risk, Vol. 7, No. 9, September 2019

By Sannie Evan Malala

A Philippine flag flutters as the nuclear-powered aircraft carrier USS Ronald Reagan (CVN-76) is seen anchored off Manila bay on June 26, 2018. – A US aircraft carrier visited the Philippines on June 26, the third such call in four months, as its admiral hailed America’s “enduring presence” in a region where China’s military build-up had raised tensions. Ted Aljibe / AFP / Getty Images.

The Philippines is strategically located in Southeast Asia, at the fault-line between Communist China and the democratic nations of the Americas and Europe. In the north is East Asia, full of wealthy market democracies in increasing conflict with China. To the southwest are countries seeking to defend their exclusive economic zones from China, including Indonesia, Vietnam, Malaysia, and Brunei. As China’s power grows, the fault-line is widening and trying to straddle the middle will only result in our falling into the chasm. The Philippines must choose a side – subservience to China or joining a coalition of the willing in defense of each country’s independence and democracy from the Chinese hegemon. The Philippines has yet to take advantage of its full potential and has become economically poor and militarily weak, primarily due to corruption, internal armed struggle, and its growing relationship with China. For the Philippines to avoid being a satellite of China, this is what we must do. Continue reading

Nasif Ahmed: Hong Kong Independence

“Hong Kong Independence”, by Nasif Ahmed.

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Withdrawing from Afghanistan, Without Leaving a Vacuum

Journal of Political Risk, Vol. 7, No. 8, August 2019

By William R. Hawkins

Foreign Minister of Uzbekistan, Abdulaziz Kamilov (L3), Foreign Minister of India Sushma Swaraj (C), Foreign Minister of Tajikistan Sirojiddin Muhriddin (R2), Foreign Minister of Kyrgyzstan Chingiz Aidarbekov (L2), Foreign Minsiter of Turkmenistan Rashid Meredov (R), Minister of Foreign Affairs of the Republic of Kazakhstan Beibut Atamkulov (L) and Foreign Minister of Afghanistan Salahuddin Rabbani (R3) participate in the ‘Ministerial Meeting of the India-Central Asia-Afghanistan Dialogue’ held within the ‘India-Central Asia Dialogue’ Foreign Ministers’ meeting in Samarkand, Uzbekistan on January 13, 2019.
(Photo by Bahtiyar Abdukerimov/Anadolu Agency/Getty Images)

Some years ago, I spent an afternoon in New Delhi meeting with a group of retired senior members of India’s military and intelligence communities. A central topic was Afghanistan. The Indians were adamant that the Taliban must not be allowed to take over the country. They saw the Taliban as agents of Pakistan. The absorption of Afghanistan by the Islamabad regime would pose a threat to India. Afghanistan would be a rich recruiting ground for the terrorist/insurgent forces Pakistan uses to destabilize Kashmir. And in case of another open war, Afghanistan would give Islamabad “strategic depth” which could be used in several possible ways.

The Islamabad-Kashmir area is at the narrowest part of Pakistan. It’s only 228 miles from Islamabad to Kabul. But the terrain is bad to the west and Pakistan has more important areas to defend to the south. Even so, pulling troops back to Peshawar, where they could be supplied/reinforced from Afghanistan, could serve as a counter-attack force if Islamabad was under siege. Pakistan has an arsenal of mobile short and medium-range ballistic missiles with conventional warheads and is adding cruise missiles. However, only some of these models could reach India if redeployed to Afghanistan to avoid preemption. More attractive would be Afghan airbases which could support Pakistani operations along the northern border but at a distance that would make it harder for Indian airstrikes to suppress. During the February clash, Pakistan intercepted Indian airstrikes in the Kashmir area and shot down two fighters, including an F-16. Deeper airstrikes could be problematical for New Delhi.

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Legislatures Elected by Evaluative Proportional Representation (EPR): An Algorithm

Journal of Political Risk, Vol. 7, No. 8, August 2019

By Stephen Bosworth, Anders Corr and Stevan Leonard1

Abstract

Source: Pixabay

Unlike any existing voting method for a representative democracy, this article describes a new method that gives every voter every appropriate reason to be pleased with the results. It is called Evaluative Proportional Representation (EPR). EPR guarantees that each citizen’s vote will continue to count proportionately in the deliberations of a legislative body, such as a city council. After assessing the ideal qualities needed by the office, citizens grade each candidate as either Excellent (ideal), Very Good, Good, Acceptable, Poor, or “Reject” (completely unsuitable). Each voter can give the same grade to more than one candidate. Each candidate not graded is automatically counted as a “Reject” by that voter. These grades can be counted by anyone who can add and subtract whole numbers or by the algorithm provided. Each EPR citizen’s vote adds proportionately to the voting power in the legislature of a winner. Initially, EPR’s count provisionally determines the number of highest grades (votes) each candidate has exclusively received from all the voters. However, no winner is allowed to retain enough votes to dictate to the legislature. Therefore, our simulated election limits the percent of votes any winner can retain to 20%. This ensures that at least three members of the legislature will have to agree for any majority decision to be made. We call a candidate who has received such a percentage super popular. Any non-super-popular candidate is eligible to receive at least one of the extra votes initially held by a super-popular candidate. Each extra vote is transferred to the remaining eligible candidate on this voter’s ballot who has been awarded the highest remaining grade of at least Acceptable. If such a candidate is absent, this ballot becomes a proxy vote that must be publicly transferred to an eligible winner judged most fit for office by this super-popular candidate. Similarly, all the votes provisionally held by an unelected candidate must be transferred to an eligible winner. The final number of votes received by each winner is the weighted vote each will use during the deliberations of the legislature. No vote is needlessly wasted. Each citizen is given every appropriate reason to be pleased.

Of course, voting using existing methods is very important, at least as a performance of a civic duty. Additionally, it is praiseworthy when a citizen votes in an attempt to make a constructive contribution to the democratic life of one’s community. Also, we assume that each voter desires that their own concerns, values, and ideas be accurately represented in the legislative body. Unfortunately and needlessly, all of the existing voting methods do not fully guarantee this level of representation. Consequently, many citizens have very good reasons to be displeased because their votes have been needlessly wasted in one or both of the two senses defined next.

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Xi Killed Convergence: the American China Consensus is Gone

Journal of Political Risk, Vol. 7, No. 7, July 2019

By Paul S. Giarra

Chris Ware illustration of Xi Jinping. (MCT via Getty Images)

Two open letters to the President on China strategy have appeared recently. The first, “China is not an enemy”,[1] was published in the Washington Post on July 3rd. The second, “Stay the Course on China: An Open Letter to President Trump”, appeared in these pages on July 18th.[2] The former argued that considering China as an enemy would be a self-fulfilling prophecy. The second posited that we had already turned that corner with China, and that the president should continue with his hard line policies toward Beijing (Full disclosure: the author signed the latter open letter).

There’s more to these letters, but they do not represent an argument; rather, they are a transition from an old conventional wisdom to a new reality. As Nikki Haley wrote in Foreign Affairs last week [3], the theory of convergence with China expressed in the Washington Post letter and practiced in the United States for 30 years has been fully discredited. “Let’s face it: Xi has killed the notion of convergence.”

Why it has taken so long to get to this point will have to be left to the social historians, but the China policy transition now underway has been reverberating throughout the Washington policy community for some time. Continue reading

Stay the Course on China: An Open Letter to President Trump

The US Constitution and flag. Photo: Daniel Bendjy/Getty Images

Dear President Trump,

Over America’s exceptional history, successive generations have risen to the challenge of protecting and furthering our founding principles, and defeating existential threats to our liberties and those of our allies. Today, our generation is challenged to do the same by a virulent and increasingly dangerous threat to human freedoms – the Chinese Communist Party (CCP) through the nation it misrules:  the People’s Republic of China (PRC).

The Chinese Communists’ stated ambitions are antithetical to America’s strategic interests, and the PRC is increasingly taking actions that imperil the United States and our allies. The past forty years during which America pursued an open policy of “engagement” with the PRC have contributed materially to the incremental erosion of U.S. national security.

This cannot be permitted to continue.

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