Tag: China
Is bankrupting Republika Srpska a good idea?
Republika Srpska (RS) President Dodik has for years sliced the salami thin piece by thin piece. He is getting his sub-national entity, the 49% of Bosnia and Herzegovina’s territory that is majority Serb, closer to independence. With Russian backing, he is now taking bigger slices. The RS Assembly has passed a law that invalidates the authority of the Bosnian Constitutional Court on his entity’s territory. He has also declared his intention to hold a referendum on independence before the end of the year.
Ethnonationalism is the creed
I take these moves seriously. Elections in Republika Srpska are neither free nor fair. But there is no reason to doubt that Dodik has more than majority support there. He can’t go on promising independence forever. He needs to try to deliver at some point.
The popular appeal of independence to the people who live in the RS is mainly ethnonationalist. The RS conducted an ethnonationalist war against the Bosnian state in 1992-95, including the Srebrenica genocide and other instances of war crimes and crimes against humanity. The Dayton peace agreements preserved the RS and gave it, despite its criminal history, international validity as a subnational entity and a great deal of autonomy. Many people who live in the RS view it as protecting them from retaliation.
Dodik was not personally involved in the atrocities of the Bosnian war, so far as I know. At the time, he was an opposition member of the RS Assembly seen in the West as a relative moderate. But that does not diminish his present willingness to exploit ethnonationalist passions for political purposes. Since his campaign for the Bosnian presidency in 2006, he has made himself the leading nationalist voice in the RS.
But Dodik is not only interested in satisfying the ethnonationalist craving for security from revenge by those the RS once displaced, imprisoned, tortured, and killed. He has two other interests to tend.
Dodik’s other interests: impunity
The first is to keep himself out of the hands of any legal system, domestic or foreign, that will hold him accountable for corrupt practices. When it imposed sanctions on Dodik in 2022, the US Treasury alleged:
“Dodik is also being designated pursuant to E.O. 14033 for being responsible for or complicit in, or having directly or indirectly engaged in, corruption related to the Western Balkans. Specifically, he has established a patronage network in BiH from which he and his associates benefit. As one example of his corrupt actions, Dodik has provided government contracts and monopolies in the RS directly to close business associates. With his corrupt proceeds, Dodik has engaged in bribery and additional corrupt activities to further his personal interests at the expense of citizens in the RS.”
The Treasury also alleged that, using a company (ATV) he personally controls,
“Dodik has awarded ATV-related contracts directly to members of his family, which he has used as yet another avenue for corruption. He has funneled money directly from public companies to ATV for corrupt purposes. Dodik has substantially increased funding for ATV in recent years and engaged in malign social media influence campaigns through ATV to publish content that advances his political and personal goals.”
I too would want impunity, had I been credibly accused of these things. Too bad the Europeans haven’t followed the US lead on sanctions.
Dodik’s other interests: state property
The second Dodik interest is to ensure that state property in the RS is at his disposal. The RS is heavily indebted, to the tune of over $2 billion. A big slice of this amount, perhaps more than one-quarter, needs to be repaid or refinanced this year. State property is now the main collateral Dodik can pledge to creditors. Everything else is already hocked to the max. While the Finance Minister claims the debt is only 38% relative to GDP, RS officials are scrounging in Beijing for financing.
The US Embassy in Sarajevo has made its position on state property eminently clear:
“State property belongs to the state, and a state-level law is required to regulate it. This is not a matter of opinion; it is a constitutional and legal fact.”
Only saying it, however, won’t make it so.
Separating the court system could solve both problems for Dodik
These two interests, impunity and debt, are why Dodik, while pressing for independence, is trying first to block the Bosnian court system from the RS, whose Assembly passed the “Law on the Non-Enforcement of Decisions of the Constitutional Court of Bosnia and Herzegovina.” The international community High Representative has annulled that law, but it is unclear how he will enforce the annulment. Dodik will seek instead to force the HiRep into a negotiation on the state property issue. Once that happens, Dodik can hope for half a loaf.
That makes me wonder. Is refusing to negotiate and forcing the RS into bankruptcy a good idea? Won’t the debtor and the creditors cry for the Sarajevo, the central (in local terms the “state”) government, to intervene? The Chinese presumably won’t be interested in RS secession and would likely want central government intervention. The Russians, who are also creditors, might be interested in secession, but in current circumstances they would be unlikely to pick up the tab associated with bankruptcy. So why not let the RS go bankrupt and start the negotiation there?
I’ll welcome submissions to peacefare.net that argue the contrary case.
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Stevenson’s army, July 7
– The Biden Administration is trying to get around the Constitution’s delegation of trade powers to Congress by making deals and then asking Congress to approve.
– And the House seems willing to oblige, by passing a law allowing it.
– BTW, USMCA hasn’t worked as promised [The story is truncated because neither I nor SAIS wants to pay $5000+ per year for Politico Pro]
– The Supreme Court is making law behind the scenes with its Shadow Docket.
– And news coverage of the Court misses key developments.
– CFR members are backchanneling with Russia
– GOP does want to send US troops into Mexico.
– Walter Pincus sees culture wars in the US military
-DOD wants to block Chinese & Russian influence over academia.
– Tel Aviv police chief charges political interference.
– Germany cuts all but defense.
My SAIS colleague Charlie Stevenson distributes this almost daily news digest of foreign/defense/national security policy to “Stevenson’s army” via Googlegroups. I republish here, with occasional videos of my choice. To get Stevenson’s army by email, send a blank email (no subject or text in the body) to stevensons-army+subscribe@googlegroups.com. You’ll get an email confirming your join request. Click “Join This Group” and follow the instructions to join. Once you have joined, you can adjust your email delivery preferences (if you want every email or a digest of the emails).
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Stevenson’s army, July 5
– FT quotes senior UK officer saying Russia has lost half its military capability in Ukraine.
– FT also says Xi warned Putin not to use nukes.
– WSJ notes US is funding many police forces around the world.
– 46 foreign policy experts support NATO membership for Ukraine. [FWIW I disagree.]
– RollCall tells what’s happening with earmarks.
– David Ignatius laments new violence between Israel and Palestinians.
My SAIS colleague Charlie Stevenson distributes this almost daily news digest of foreign/defense/national security policy to “Stevenson’s army” via Googlegroups. I republish here, with occasional videos of my choice. To get Stevenson’s army by email, send a blank email (no subject or text in the body) to stevensons-army+subscribe@googlegroups.com. You’ll get an email confirming your join request. Click “Join This Group” and follow the instructions to join. Once you have joined, you can adjust your email delivery preferences (if you want every email or a digest of the emails).
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Stevenson’s army, July 4
– WSJ says China is restricting export of some rare metals.
– NYT says Putin is increasing coup-protection.
– New poll shows divisions among American Jews.
– WSJ reports holds on State nominees for being woke.
– Cato analyst criticizes US Egypt policy.
– Former officers worried about All Volunteer Force.
My SAIS colleague Charlie Stevenson distributes this almost daily news digest of foreign/defense/national security policy to “Stevenson’s army” via Googlegroups. I republish here, with occasional videos of my choice. To get Stevenson’s army by email, send a blank email (no subject or text in the body) to stevensons-army+subscribe@googlegroups.com. You’ll get an email confirming your join request. Click “Join This Group” and follow the instructions to join. Once you have joined, you can adjust your email delivery preferences (if you want every email or a digest of the emails).
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Stevenson’s army, June 28
– NYT says Russian general knew of mutiny in advance [Either that’s true or a good way to sow dissent in Kremlin]
– CNN says US didn’t tell most allies about Wagner plans
– Putin admits Russia funded Wagner
– Economist reports how Wagner shot down Russian aircraft
– NYT says US public opinion limits thaw with China
– POGO report on US shipbuilding problems
Charlie later added this Wednesday bonus:
– Politico’s Global Insider has more on various Russian private armies.
– WSJ says Prigozhin hoped to capture senior generals.
– Elliot Ackerman sees a weakened Russian force.
– David Frum worries about GOP calls for attacks in Mexico.
– Stimson analyst sees no real US consensus on China
– SAIS grad explains why US hasn’t ratified Law of the Sea convention
My SAIS colleague Charlie Stevenson distributes this almost daily news digest of foreign/defense/national security policy to “Stevenson’s army” via Googlegroups. I republish here, with occasional videos of my choice. To get Stevenson’s army by email, send a blank email (no subject or text in the body) to stevensons-army+subscribe@googlegroups.com. You’ll get an email confirming your join request. Click “Join This Group” and follow the instructions to join. Once you have joined, you can adjust your email delivery preferences (if you want every email or a digest of the emails).
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Sit tight, unite, and prepare for opportunity in Russia
I missed the start last night, but Yevgeny Prigozhin’s Wagner Group rebel forces are still moving toward Moscow from Rostov-on-Don today. They made it half way so far, to somewhere past Voronezh. That itself is amazing. Why hasn’t the Russian air force torn the Wagner column to pieces?
The outcome is uncertain
The outcome is however entirely uncertain. The insurrection could still fizzle. It could suffer catastrophic defeat. Wagner could become mired in a stalemate. Or it could succeed in chasing Putin from the Kremlin. Chechen forces are said to be getting ready to stop their progress toward Moscow. But those forces also have reason to be unhappy with Putin, so will they do the necessary for him?
Nor should we regard Prigozhin’s Wagner forces as heroes. They have fought, tortured, and robbed in Syria and several countries in Africa (Central African Republic, Libya, Mali, and Sudan). They participated in the Trump-encouraged hacking of the US presidential election in 2016. Prigozhin is no more of a democrat than Putin. Maybe less.
Insurrection could have consequences, even if it fails
But this insurrection, even if ultimately unsuccessful, will have consequences if it lasts more than a day or two. Putin’s hold on power will look tenuous. Russian troops in Ukraine, already demoralized, may hesitate to follow orders from a military command fighting Russians on the outskirts of Moscow. Some might even join the rebellion.
Ukraine’s army will be emboldened and press its counteroffensive harder. Distracted, the Russian army command could make serious mistakes, of either commission or omission. Fighting on two fronts is never easy, but if one is your home front it is likely to get priority.
Belarus could rise against President Lukashenko, who lacks electoral legitimacy. Constituent republics of the Russian Federation might do likewise. Russia might “rupture.” Moscow could find itself fighting not just with Prigozhin but also with half a dozen other rebellious forces.
Sit tight
The West (read the EU, UK, and US) have little direct say in this situation. Brussels, London, and Washington will want to be cautious, lest they give Russians cause to unite. They will also worry that Putin, his back to the wall and his life at risk, could take desperate measures, like use of a tactical nuclear weapon in Ukraine or even against his enemies inside Russia. Until now, that has seemed unlikely, but the man is frightened and may have few other cards to play.
China, India, Iran, Venezuela, Cuba, and other countries that Putin has courted may try to come to his rescue, mainly by providing markets for Russian oil. Except for China, their means are limited. Beijing is more likely to wait until it sees the outcome, which will necessarily be a weakened Russia more dependent on Chinese largesse.
Prepare
A Russia without Putin would be an opportunity for the West. If the rebellion succeeds, a united Western front in dealing with Prigozhin will be vital. He is no more principled than Putin. Steering a post-Putin Russia towards complete withdrawal from Ukraine and encouaging emergence of something resembling democracy there will be a major diplomatic challenge. Now is the time to prepare for it.
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