In Geopolitics Today: Monday, April 24th
Australia's Defense Strategic Review Calls for Fundamental Changes, Global Military Spending Reaches Record High in 2022, and other stories.
Joint Venture to Boost International North-South Transport Corridor
Several countries along the International North-South Transport Corridor (INSTC) have taken steps to improve logistics and unlock the potential of the route. Kazakhstan, Russia, and Turkmenistan have created a joint venture to set up a single logistics operator on the eastern branch of INSTC, with the aim of forming competitive tariff rates and seamless transportation of goods to destinations including Iran, India, the Middle East, and the Asia-Pacific region.
The North-South Corridor is one of the main points of growth in transport and economic ties with Iran and India for Kazakhstan. Turkmenistan is also becoming an increasingly active participant in the project, with plans to officially join the agreement. Iran is also determined to use the potential of the North-South corridor and calls for strengthening infrastructure along all three branches of the ITC. To activate all the capacities of the North-South Corridor, it is required to strengthen the transport network in the Caspian Sea through establishing trade links with the ports of Russia and other Caspian Sea littoral states.
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Middle Eastern Powers to Convene in Moscow for Peace Talks
Several countries are scheduled to convene in Moscow to discuss ongoing issues in the region, as the defence ministers and intelligence chiefs of Turkey, Syria, Iran, and Russia seek to bring about peace in the Middle East. Although Turkish President Recep Tayyip Erdogan has expressed a willingness to engage in a peace-building summit with the Syrian government, President Bashar al-Assad has demanded the withdrawal of Turkish troops from northern Syria before agreeing to meet with Erdogan.
In addition to the upcoming talks, recent events indicate a thawing of relations between regional powers. Saudi Arabia's Foreign Minister Prince Faisal bin Farhan visited Damascus recently, marking the first high-level Saudi official to visit since 2011. Riyadh’s normalization of ties with Tehran is also helping to bridge differences between countries in the region. These developments suggest that regional powers are increasingly recognizing that the conflicts of the past decade have not been in their best interests.
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Azerbaijan and Kazakhstan Strengthen Cooperation on Middle Corridor
Two Central Asian nations, Azerbaijan and Kazakhstan, are enhancing their cooperation to improve the Middle Corridor, a transportation route from China to Europe that passes through the region. President Ilham Aliyev of Azerbaijan visited Kazakhstan in April to discuss issues related to the Trans-Caspian International Transport Route (TITR) and energy transit from Kazakhstan to Europe via Azerbaijan. Astana underlined the need for the enhancement of logistical services, the creation of unified transport operators, the modernization of technical and tariff conditions, the elimination of administrative barriers, and the emergence of a closed logistical cycle to fully leverage the potential of the Middle Corridor.
These measures aim not only to attract a larger segment of shipments transiting between Asia and Europe but also to improve connectivity among the countries along this route while bypassing Russian influence in the region. To improve the Middle Corridor, Azerbaijan and Kazakhstan have taken various measures, such as upgrading ports along the Caspian Sea and improving highways and railways that would be utilized along this route. The two countries are also investing in the expansion of the capacity of the Baku-Tbilisi-Kars (BTK) railway and the Baku International Sea Trade Port. Similarly, Kazakhstan has embarked on a campaign to upgrade its Caspian ports, with the goal of turning them into a major hub in the Caspian Sea region.
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Australia's Defense Strategic Review Calls for Fundamental Changes
Australia has released its Defense Strategic Review, promising fundamental changes to the structure of the Australian Defence Force. The 110-page report proposes a three-stage strategy and a change in the military's Defense of Australia doctrine to respond to rapidly changing risks. The review also recommends critical capabilities such as maritime drones, long-range precision strike weapons, amphibious-capable land systems, and an integrated air and missile defence system.
The release of the long-awaited Defence Strategic Review by Australia's defence minister reveals a blueprint aimed at countering China's influence in the Indo-Pacific region, with fundamental changes to the structure of the Australian Defence Force. The report calls for a change in the military's Defence of Australia doctrine and hardening Australia's air bases and securing fuel supplies against attack from the north. The Royal Australian Navy’s plan to acquire a nuclear-powered attack submarine under the AUKUS framework is also a lynchpin of the new Defence Strategic Review, as is the government’s continuous naval shipbuilding strategy.
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Global Military Spending Reaches Record High in 2022
According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached $2240 billion in 2022, growing for the eighth consecutive year and hitting an all-time high. The increase in military expenditure was most pronounced in Europe, where multi-year plans to boost defence spending are being implemented by several governments.
The United States remained the world's largest military spender, spending $877 billion in 2022, which was 39 per cent of total global military spending, and three times more than the amount spent by China, the world's second largest spender. US military spending only increased by 0.7 per cent in real terms in 2022, which would have been greater if not for the highest levels of inflation since 1981. Central and Western Europe saw military spending rise to levels not seen since the Cold War, with Finland, Lithuania, Sweden, and Poland having the sharpest increases.