Summary

The Guidelines for Good Governance in Emerging Oil and Gas Producers 2016, compiled under the auspices of the New Petroleum Producers Discussion Group, review common challenges facing emerging producer countries in the phases of exploration, recent discoveries and early production. The following are the Guidelines’ broad recommendations for addressing these challenges.

• International best practice may not be appropriate in the case of emerging producers in the oil and gas sector. Instead, the aim should be for more appropriate practice, taking account of the national context; more effective practice, in the interests of achieving rapid results; and better practice, allowing incremental improvements to governance.
• Government policy should be guided by a clear vision for the development of the country and a strategic view of how the petroleum sector will deliver that vision. 
• In order to attract the most qualified oil company to a country with an unproven resource base, the host government can invest in geological data, strengthen its prequalification criteria and ensure transparency. It should also plan for success and anticipate the implications of hydrocarbon discoveries in its tax code, and be robust through declining oil and gas prices.
• Licensing is a key mechanism whereby government can reap early revenues and maximize long-term national benefits. Government must ensure that it simplifies both negotiations and tax structures to mitigate knowledge asymmetries with oil companies.
• Government and industry must engage and share information with affected communities to manage local expectations regarding the petroleum sector and build trust. 
• In emerging producers, budgets for local content may be small and timelines for building capacity short. In this context, the focus should be on the potential for repeat use of any local capacity developed. 
• Meaningful participation of national organizations in resource development is a central objective of many emerging producers. Capacity is needed to enable this, and the Guidelines examine where and how best to develop that capacity.
• Incremental improvements to the governance of the national petroleum sector will allow emerging producers to increase accountability. The focus in this regard should be on building up capacity in checks and balances as resources become proven.

Presenting latest thinking from our senior research fellows on the dynamics that will affect fossil fuels investment and markets in the year ahead and promoting high-level discussion amongst experts.

The first session examines the oil price market which faces great uncertainty in 2017 with the OPEC agreement in Algiers raising questions about  compliance, supply and impact on the industry's future. It will also assess how US production may alter given the new administration; the state of the nuclear agreement with Iran; and future events in the Middle East.

The second session looks at what Brexit and the election of President Trump means for energy and climate policy in the UK and globally, investigating the major challenges, areas of contention, and areas of opportunity for the UK’s climate and energy policy in light of Brexit.

The second speaker in this session will outline what the appointment of President Trump will mean for global energy and climate policy.

Attendance at this event is by invitation only.

This year marks the 30th anniversary of the fall of the Berlin Wall. The wall, which stood between 1961 to 1989, came to symbolize the ‘Iron Curtain’ – the ideological split between East and West – that existed across Europe and between the two superpowers, the US and the Soviet Union, and their allies, during the Cold War. How significant was the Berlin Wall during the Cold War – was it more important physically or psychologically?

The Berlin Wall was important physically, as well as psychologically, because Berlin was the only city that was divided physically by the Cold War between the Soviet Union and its allies in the Eastern Bloc and the West.

Given the disparity that quickly emerged between the two sides in economic wealth, freedom of expression and so on, the fear was that, without that wall, there would've been a unification of Berlin in a way that the Soviet side would have lost.

But it was also very important psychologically because it became the symbol of the division between two ideologies that saw each other as inimical to each other.

That meant that if you wanted to visualize the Cold War, and the separation between the capitalist, democratic system of the West and the communist, command-and-control system of the East, Berlin offered a place where you could physically walk from one world, through a checkpoint, into the other. The whole Cold War could be reduced to this one nexus point.

Because of its psychological as well as its physical significance, the fall of the Berlin Wall quickly became the symbol of the collapse of the communist ideology it had shielded.

Since the fall of the Berlin Wall, European countries have reportedly built over 1,000 kilometres of walls – the equivalent of more than six times the total length of the Berlin Wall – along their borders.

Why has Europe been building more walls and how effective have they been? Have they been used more as symbols to appeal to political bases, and if so, has it worked with voters?

The walls that have been built in Europe recently have been for a very specific reason. This was the huge influx of migrants and refugees to Europe in 2015, through what was called the ‘eastern Mediterranean’ or ‘western Balkan route’, from Turkey to Greece and on through the Balkans, Serbia and Hungary to northern Europe – in what was Europe's biggest migrant and refugee crisis since the Second World War.

What’s interesting is that for Viktor Orbán and the Hungarian government, which was on the frontline of the flow of migrants and refugees, building a wall was a way of reasserting its sovereignty. 

Like many other countries along the ‘migrant route’, they resented that the rules under which people could migrate into Europe were flouted by northern European governments which were willing to accept large numbers of migrants and refugees.

By accepting them, they kept attracting more, and so Orbán was worried that, at some point, Germany might say ‘We can’t take anymore’ and they’d be left in Hungary.

It’s important to remember that the communist states of central and eastern Europe were kept in aspic by the Soviet Union – they existed in a hermetically sealed environment without immigration. As a result, they didn’t experience the rise of multicultural societies of the sort that emerged in Britain, Belgium, France and Germany, where immigration persisted throughout the Cold War period.

The countries of central and eastern Europe were delighted that the Berlin Wall collapsed because it allowed them to unify with western Europe. They had been vassal states of the Soviet Union during the Cold War, and by joining the EU, they re-discovered personal freedom and re-gained national sovereignty. They thought they had become masters of their own future again.

But they suddenly found they were on the frontline of a new movement of people that wanted to get into the same world that they’d entered some 15 years earlier. And, as hundreds of thousands of migrants and refugees began arriving, they suddenly realised they were in a union that did not respect their sovereignty.

So, for them, putting up walls was a sovereign act against a European Union that didn’t seem to take their sovereignty seriously.

Has it worked? Definitely. The flow of migrants has been reduced drastically. This is partly because the EU paid Turkey to hold back the over three million migrants based there. But the walls also acted as a physical and psychological deterrent. 

It also worked politically. It allowed Viktor Orbán and other European parties that took the sovereigntist line to strengthen their appeal to voters – voters like to know that governments can do certain things like protecting them and their borders.

What is hypocritical, however, is that many of the governments in western Europe which criticized the Hungarian government for building its wall have actually been rather grateful that they did so as it slowed down the flow of migrants to their countries.

Then there’s the additional hypocrisy of the EU criticizing Donald Trump for building his wall with Mexico when Europeans are benefitting from theirs in Hungary.

Two years before the fall of the Berlin Wall, former US president Ronald Reagan challenged Soviet leader Mikhail Gorbachev to ‘tear down this wall’ declaring ‘across Europe this wall will fall. For it cannot withstand [freedom].’

32 years later, building a wall along the US–Mexico border has become a cornerstone of the current US administration under Donald Trump who has pledged to build a ‘big beautiful wall’. How does this reflect the political evolution of the US and what effect does that have across the rest of the world?

President Reagan talked about tearing down the Berlin Wall as a symbol of the Cold War. He knew that the fall of the wall would undermine the Soviet Union. 

President Trump is way beyond the Cold War. Building a new wall is his response to the growing sense of economic dislocation that segments of America, like Britain and other parts of Europe and the developed world, have experienced on the back of the rise of globalization, which was partly the result of the end of the Cold War but also the rise of China.

The spread of globalization, the declining earning power of many workers in the West, advances in technology which have taken away many high-earning jobs, the eight years of austerity after the global financial crisis – these are all factors driving Trump’s thinking. 

Have inflows of Mexican immigrants or immigrants through the Mexico border been the principal driver of economic insecurity?  No.  What you’ve got is Trump promising to build a wall as a symbol of his administration’s determination to protect Americans.

So I’d say the US–Mexico wall is another symbolic – or psychological – wall. Trump’s wall is supposedly about stopping illegal immigration but there are still plenty of ways to come through the border posts. It’s principally an exercise in political theatre.

From the Great Wall of China to Hadrian’s Wall, walls and fences of all sorts have been used throughout history for defence and security, but not all of them have been physical.

So-called ‘maritime walls’, as well as ‘virtual walls’, are also increasingly being enforced which, today, includes border forces patrolling seas and oceans, such as in the Mediterranean Sea or off the coasts of Australia, and border control systems controlling the movement of people. Politically how do these types of barriers compare to physical ones?

You could argue that the Mediterranean Sea, and the European border forces operating within it, still act as a physical wall because they constitute a physical obstacle to migrants being able to move from the South across the Mediterranean Sea into Europe. 

So I don’t see this maritime wall being much different to the physical walls that have been built to try to stop migrants – just like any other border patrol, the Italian navy is preventing NGO vessels carrying migrants, who have been stranded at sea from docking at Italian ports. 

In this sense, you could argue that the Mediterranean Sea is a larger version of the Rio Grande between the US and Mexico which also incorporates physical barriers along its shores.

I think the more interesting walls that are being built today are virtual walls such as regulatory walls to trade, or with the internet, new barriers are being built to digital communication which affect your capacity to access information. 

In the end, all these walls are manifestations of national sovereignty through which a government demonstrates it can ‘protect’ its citizens – whether they are successful in this objective or not.

The border between Ireland and Northern Ireland, and the presence of enforcement mechanisms along the border, has become a key issue in the Brexit negotiations. How much of the debate over this is about the symbolism of the border against its economic implications?

The Irish border carries great symbolic importance because it reflects the reality of the separation of two sovereign states.

On the island of Ireland, the British and Irish governments have wanted to minimize this reality to the greatest extent possible. They even went as far as removing all types of barriers as part of the Good Friday Agreement.

This is the same sort of fiction the European Union created when it removed any physical manifestations of the existence of borders between those member states in its Schengen agreement on borderless travel.

By removing physical manifestations of the border, the UK was able to reduce some of the popular support for Irish unification as well as support for the IRA’s campaign of violence and terrorism to try to force the same outcome. 

Brexit has thrown a huge spanner into this arrangement. If Brexit is going to mean the entire UK not being in the EU’s customs union then some sort of border would need to be reinstated.

The British government proposed to do all the checks behind the border somewhere. The EU’s view was, ‘Well, that’s nice for you to say, but this border will become the EU’s only land border with the UK, and you cannot guarantee that people won’t be able to smuggle things through.’

On the other hand, recreating a border of some sort, whether physical or not, would reignite the differentiation between the two nations – running counter to the spirit of the Good Friday Agreement.

The only solution available to Prime Minister Boris Johnson has been to put the border down the Irish Sea.  While this means that Northern Ireland will no longer be an obstacle to the UK signing new, post-Brexit, free trade agreements with other countries, it has betrayed the Conservative Party’s unionist allies, for whom it’s essential that the UK’s borders include and not exclude them. 

By the end of the Cold War there were just 15 walls and fences along borders around the world, but today, there are at least 70. How effective, do you think, building barriers are as a political and military strategy to defence and security issues given their financial – and human – cost?

Physical barriers can be an effective form of protection – or imprisonment. 

The separation wall between Israel and the Palestinian territories has reduced the level of terrorist violence being perpetrated in Israel, but the cost has been the impoverishment of many Palestinians, and is another nail in the coffin of a two-state solution.

Yet many Israelis are saying that, maybe, being entirely separate is the best way to achieve peace between the two sides.

However, the walls around the Gaza Strip have not prevented, for various reasons, the Hamas government from developing rockets and firing them into Israel.   

You could argue that the border between China and North Korea, which is severely patrolled, has been a tool of continued political control protecting the Kim Jong-un regime from collapse – as has its virtual border preventing internet penetration.

Similarly, the virtual border the Chinese government has created around its own internet, the ‘great firewall’, has been very effective both economically – allowing Chinese internet platforms to develop without the threat of competition – and also as a form of political control that helps the Chinese Communist Party retain its monopoly on power. 

So walls in all of their shapes and forms can work. They are like sanctions – sanctions are easy to impose but difficult to remove. Walls are easy to build but they’re difficult to break down. 

But my view would be that they still only work temporarily. In the end, walls serve their particular purpose for a particular period, like the Berlin Wall, they end up outliving their purpose.

You have to be alive to the fact that, whether that purpose was a good or bad purpose, there will be a moment when walls end up protecting the interests of an ever-narrower number of people inside the wall, while they cease serving, if they ever did, the interests of the growing number on both sides. 

It’s ironic that the fall of the Berlin Wall in November 1989 was not the main marker of the end of the Cold War. It began earlier that year, with the intensification of people protesting in Poland, Hungary and Czechoslovakia.

Once Hungarian troops dismantled the fence separating them from Austria in May 1989, thousands of Hungarian citizens simply walked out of their country, because by then, the wall between the East and West only existed in their minds.

Then, once East Germans also realized that Mikhail Gorbachev and the Soviet regime had lost its willingness to defend the Berlin Wall, it collapsed. 

So it is interesting that we’re marking the end of the Cold War with this anniversary of the fall of the Berlin Wall, which of course, did divide two halves of one country, making its fall all the more poignant and powerful. But the end of the Cold War really began with the fall of the invisible wall in people’s minds.

As the United Kingdom prepares to go to the polls on 12 December 2019, this event, organized in conjunction with the BBC's show, The World Tonight, will give a Chatham House audience the opportunity to put their foreign policy questions to a panel of senior UK politicians.
 
Important Information About the Event
This event is hosted in collaboration with the BBC. It will be recorded and broadcast on BBC Radio 4 – The World Tonight. Given the BBC’s commitment to due impartiality during the election period, questions will be asked to be pre-submitted via email by audience members the day before the event. The BBC will then select a balanced and diverse range of questions from those submitted. The panellists will not receive the questions in advance of the event.
 
About the Ballot
Due to the expected popularity of this event, this event will be balloted. Please register your interest for the event by 11:59pm on Monday 25 November. Successful registrants – selected at random – will be notified on Tuesday 26 November and then invited to submit their questions. The BBC will contact directly those audience members whose questions they select.
 
As priority will be given to members, we are unable to register members’ guests for this event.

On the eve of the UK general election, a group of senior Chatham House experts analyse a range of key foreign policy issues that will hinge on the election’s outcome.

The Belvedere Forum is a leading annual British and Polish bilateral dialogue bringing together a diverse group of actors from civil society, politics, business, academia and NGOs. It seeks to strengthen and deepen the extensive partnership between the two countries by exploring political, economic, social and cultural issues through debate and discussion.

The forum is an annual event alternating between the UK and Poland. Originally created in 2017 by the governments of the UK and Poland, the forum is now jointly organized by Chatham House and the Polish Institute of International Affairs (PISM) in Warsaw.

This closed-door roundtable explores possible strategic shifts in the Indo-Pacific between now and 2024.

Focusing on trade security, climate change disruptions and security cooperation, it aims to enhance the understanding of the regional goals of, and strategic relationships between, the key countries active in the region.

The workshop is part of a larger project funded by the Strategic Policy Division of the Australian Department of Defence.

The project includes workshops in the United States, the United Kingdom, France, Japan, India and the Pacific Islands (Tonga).

This roundtable brings together German experts to discuss the country’s role in Europe and the world. Over the course of two sessions, Germany’s EU and wider foreign policy will be examined, with speakers sharing their views on where the country finds itself at the beginning of 2020 and what drives its current priorities across a number of areas. Participants will also compare perspectives on what a post-Merkel Germany might look like, now that the future leadership of CDU, Germany’s largest political party, is under question.

The event will comprise two separate sessions. Participants are welcome to attend either one or both.

08.30 – 09.30
Germany in the EU and the Eurozone

Speaker: Mark Schieritz, Economics Correspondent, Die Zeit
Chair: Quentin Peel, Associate Fellow, Europe Programme, Chatham House

Germany’s voice remains possibly the most important in any debate within the EU, including in those around the future of the Eurozone. The country has long been seen as the stalwart of the European economy and its government has always played a key role in driving Eurozone policy. However, most recent EU-wide attempts at reform have fallen short of what many claim needs to be done to complete the monetary union. The recently announced Eurozone budgetary instrument, for instance, remains very small and only focused on investment instead of stabilisation. The German government has been reluctant to go along with French President Emmanuel Macron and his structural reform proposals, though some other member states remain sceptical of his ideas for further integration too.

How can German attitudes towards the future of the Eurozone be explained? Is the government’s resistance to ambitious EU-wide economic reforms shared across the political spectrum in Germany? What stands in the way of further Eurozone reform when it comes to other EU member states? And will Germany’s reluctance to engage with reforms in this area, make it more difficult for the country to build coalitions when it comes to other EU policy areas?

09.45 – 11.00
German Foreign Policy in Perspective

Speakers: Joshua Webb, Programme Manager, Berlin Foreign Policy Forum and the Berlin Pulse, Koerber Stiftung
Dr Nicolai von Ondarza, Deputy Head, EU/Europe Research Division, German Institute for International and Security Affairs (SWP)
Chair: Dr Uta Staiger, Executive Director, UCL European Institute

Historically, Germany has been reluctant to play too active a role on the global stage, relying on its place at the heart of Europe and the transatlantic alliance. However, the current uncertain global context appears to have led to some rethinking on how the country can ensure its voice is being heard internationally, especially where its values are being challenged and its interests are at stake.

What drives German foreign policy in 2020? What are domestic priorities when it comes to trade, security and Germany’s place in the world? What shifts in public opinion may have been engendered by Brexit and Donald Trump’s presidency? What does the rise of China – and China’s growing interest in Europe – mean for Germany’s wider Asia policy?  Finally, what role will Germany play in a post-Brexit Europe? And what are the country’s priorities in its future relationship with the UK?

The speakers will discuss these and other questions, sharing the findings of a recent German public opinion survey and compare these with international expert perspectives. 

In the last 100 years, global economic crises from the Great Depression of the 1930s to the 2008 financial crash have contributed to significant political changes in Europe, often leading to a rise in popularity for extremist parties and politics. As Europe contends with a perceived crisis of democracy - now compounded by the varied responses to the coronavirus outbreak - how should we understand the relationship between externally-driven economic crises, political upheaval and democracy?

The panellists will consider the parallels between the political responses to some of the greatest economic crises Europe has experienced in the last century. Given that economic crises often transcend borders, why does political disruption vary between democracies? What can history tell us about the potential political impact of the unfolding COVID-19-related economic crisis? And will the unprecedented financial interventions by governments across Europe fundamentally change the expectations citizens have of the role government should play in their lives?

This event is based on a recent article in The World Today by Hans Kundnani and Pepijn Bergsen who are both researchers in Chatham House's Europe Programme. 'Crawling from the Wreckage' is the first in a series of articles that look at key themes in European political discourse from the last century. You can read the article here. 

This event is open to Chatham House Members. Not a member? Find out more.

This article uses the 2019 Eurovision Song Contest (ESC) that took place in Tel Aviv to explore how cultural mega-events serve both as political arenas and as tools for identity construction, negotiation and contestation. These processes of identity politics are all conducted across national–subnational–international–transnational levels. The hosting of mega-events fleshes out these multiple processes in a very strong manner. We first discuss the politics of hosting mega-events in general. We then examine the identity politics associated more specifically with the Eurovision Song Contest, before examining in depth the complex forms of identity politics emerging around the competition following the 2018 Israeli victory. We suggest that it is important to study together the multiple processes—domestic, international and transnational—of identity politics that take place around the competition, as they interact with each other. Consequently, we follow the various stakeholders involved at these different levels and their interactions. We examine the internal identity negotiation process in Israel surrounding the event, the critical actors debating how to use the stage to challenge the liberal, western, ‘normal’ identity Israel hoped to project in the contest and how other stakeholders (participating states, national broadcasting agencies, participating artists) reacted to them, and finally we examine the behaviour of the institution in charge, the European Broadcasting Union, and national governments. We contribute to the study of mega-events as fields of contestation, to the understanding of the complex, multilevel nature of national identity construction, negotiation and contestation in the current era, and more broadly to the role that popular culture plays in this context.

Focusing on trade security, climate change disruptions and security cooperation, the project will develop scenarios exploring possible shifts in regional economic and security priorities from 2019-2024.

Research staff from Chatham House will, in cooperation with local partners, convene expert roundtables in the United Kingdom, France, Japan, India, the United States and Tonga to enhance the discourse and understanding of the strategic relationships in the region, as well as the shared – or disparate – goals of the various countries.

A podcast will be recorded and released in conjunction with each event. The project will culminate with a research paper, amalgamating the roundtable discussions with analyses and policy recommendations developed by the Chatham House team.

This closed-door roundtable explores possible strategic shifts in the Indo-Pacific between now and 2024. Focusing on trade security, climate change disruptions and security cooperation, it aims to enhance the understanding of the regional goals of, and strategic relationships between, the key countries active in the region.

The workshop is part of a larger project funded by the Strategic Policy Division of the Australian Department of Defence. The project includes workshops in the United States, the United Kingdom, France, Japan, India and the Pacific Islands (Tonga).

Attendance at this event is by invitation only.

The UK will host the 26th Conference of the Parties (COP26) in November 2020 in Glasgow. In the run up, Chatham House is organizing a monthly briefing series targeted to:

• The diplomatic service based in London, in particular, staff of the London embassies who are reporting on climate change issues.
• Senior UK government civil servants, officials and politicians engaged in climate change.
• Academics, experts, business representatives and NGOs.

The first briefing in the series focuses on the results from COP25 held in Madrid in December 2019 and what this means for 2020.

This briefings series offer an opportunity to discuss, in an informal setting, the most pressing and complex climate issues of the day with UK and international government officials and experts.