Prospects for Russian foreign policy in 2017

Subject Prospects for Russian foreign policy in 2017. Significance President Vladimir Putin and senior Russian officials have hailed Donald Trump's victory in the US presidential election. Putin acknowledged that repairing bilateral relations would not be easy. Although some of Trump's campaign remarks will have pleased Moscow, the lack of clarity on what he will do in office means that a rapid 'reset' is not in sight. Moscow aspires to being treated as an equal superpower with its own spheres of interest, and has deployed military power and strong rhetoric to win this. The result is a deteriorating relationship with Western governments.

Significance He leaves office having failed to achieve his ambition to reform Japan’s constitution, and is widely seen as having mismanaged the most serious public health crisis in decades. Impacts New foreign policy initiatives are unlikely until after the US presidential election. Abe could make a decision before leaving office on whether Japan should acquire pre-emptive strike capabilities. No moves on constitution revision are likely for the next twelve months at least. Japan would be at a disadvantage if a foreign policy crisis were to occur in the next twelve months, and the next few weeks in particular. Whether the Olympics next summer go well will have some influence on whether Suga stays on as leader.


Subject The implications for Japan of the US presidential election. Significance US presidential election campaign rhetoric has sparked serious concerns in Japan about Washington's commitment to the East Asia region in the context of a long-term rise in geopolitical tensions. Republican candidate Donald Trump has publicly questioned the value of the US-Japan alliance, while Democratic Party candidate Hillary Clinton has muted her previous support for the Trans-Pacific Partnership (TPP) trade agreement, seen as the economic component of the US 'rebalance' to Asia under President Barack Obama's administration. Impacts Doubts about the US commitment to the region work to Beijing's advantage. The US government's likely failure to ratify the TPP will damage perceptions of Washington's commitment to the region. Though occasionally mooted, the idea of developing nuclear weapons is a non-starter in Japan.


Subject Russian foreign policy in 2016. Significance Russian foreign policy is driven by an amalgam of realpolitik, nationalism and anti-Western ideology, and consists of both defensive and offensive strategies. The robust, confrontational approach championed by President Vladimir Putin in recent years has produced successes in such areas as the military campaign in Syria, but an undecided outcome in Ukraine and mixed results in other parts of the former Soviet Union. Impacts A NATO summit this July may result in a tougher, more coordinated stance on Russia. Following its official partial withdrawal from Syria, the Russian military will conduct selective attacks. Russia will need careful diplomacy to keep Belarus and Kazakhstan from drifting away as allies.


Significance Signs that Democratic candidate Joe Biden is likely to secure a narrow victory in the US presidential election will boost the Commission’s hopes for global consensus and better transatlantic dialogue on digital taxes. Impacts Despite Brexit, the United Kingdom will support EU calls for a digital tax. The list of countries imposing unilateral digital taxes will continue to grow as pandemic-induced recession bites. The precise bipartisan balance of the US Senate will determine the extent of tech-related policy changes under Biden.


Subject 'Brexit' polling. Significance On June 23, the pound swung wildly: final polls on whether the United Kingdom should leave the EU ('Brexit') had shown a 4-percentage-point lead for 'Remain', only for the final result to be the opposite. Pollsters have been criticised for their failure to predict both this result and the 2015 UK general election outcome, even as qualitative analysts have also been criticised for missing the results. Impacts The US presidential election is immune from most polling failures, given its hyper-coverage and the discrete decisions of swing states. US Senate and House of Representatives elections are much more difficult to poll, leading to likely market volatility in early November. Changes in communication methods are sparking debates about how a representative sample of the population can be reached best.


Subject The outlook for remittance inflows. Significance Latin America and the Caribbean (LAC) was the only region in the world that registered an increase in family remittances last year. Impacts The rise in 'extra' remittances after last year's US presidential election will not be repeated this year. The taxing of remittances could partially reverse many years of efforts to lower sending costs. Increased employment in the US construction sector could help sustain remittances to LAC.


Subject Cybersecurity tensions in the China-US relationship. Significance In the run-up to President Xi Jinping's state visit to Washington later this month, US officials have discussed plans to impose economic sanctions on Chinese organisations and individuals found to have engaged in cyberattacks against US targets. The national security and economic implications of cyber tensions are becoming increasingly manifest while space for an agreement seems to be shrinking. Impacts Cyber affairs will be one of the most important bellwethers for the broader China-US relationship. There is potential for escalation and spillover, particularly given the growing prominence of hawkish voices on both sides. There is a long-term risk of diverging technical standards. The approach of the US presidential election makes compromises more difficult.


Subject Prospects for Russian politics in 2016. Significance This has been another challenging year for President Vladimir Putin. Russian foreign policy adventures have plunged relations with the West to a new low, the economy continues to struggle and the assassination of Boris Nemtsov has exposed elite-level divisions. However, although the economic situation has forced the Kremlin to restrain budgetary spending, Russia's opposition is weak and demoralised.


Subject Prospects for Iran in 2020. Significance Sanctions and the stand-off between Tehran and Washington will continue until the outcome of the US presidential election become clear. To weather the storm, Iran’s priority for 2020 will be to manage economic pressure and manipulate regional tensions as part of its leverage-building strategy.


Significance Recent events suggest this is about to change. Impacts Washington will press Japan to buy other US equipment after Tokyo cancelled the Aegis Ashore missile defence system. India’s and Australia’s confrontations with China will make them more willing security partners for Japan. A Democrat victory in the US presidential election would likely stabilise the alliance, but not remove US pressure on Japan vis-a-vis China. Japan will seek security cooperation with European partners, which will be more receptive due to their growing misgivings about China.


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