Current International System Research Articles

The international currency system: New challenges and opportunities in the context of global changes

The international currency system: New challenges and opportunities in the context of global changes

Our Exploration of Countermeasures against the Abuse of Unilateral Sanctions by the United States

Currently, the international landscape is undergoing changes, with unilateralism on the rise. Of which, economic sanctions are the most common form. Due to the lack of effective specialized international rules in the current international rule system, unilateral sanctions are increasingly frequently used by individual countries. The abuse of unilateral sanctions has impacted the normal operation of international mechanisms. Unilateral sanctions were originally used in a country’s domestic law, but now some countries, such as the United States, expand their own laws’ extraterritorial application through the continuous expansion of connection points, thereby giving their sanctions against foreign entities a cloak of legitimacy, which goes against the principles of international law and the basic norms of international relations (Bai, 2018). From a legal perspective, the implementation of illegal unilateral sanctions is achieved through the improper interpretation and application of international treaty exception clauses. From international custom, unilateral sanctions beyond countermeasures refer to those imposed by states other than the injured state, who deliberately legalize countermeasures related to sanctions, which greatly contributes to the abuse of unilateral sanctions. In this context, China should accelerate the construction of its anti-sanctions legal system to effectively counter the threats and damages caused by unilateral sanctions and firmly safeguard its sovereignty, security, and development interests.

On Problems of International Liquidity in Capitalist World Economy

In capitalist countries, there has been a very lively debate in recent years about the legitimacy or illegitimacy, adequacy or inadequacy of the current form of the international monetary system. One of the main indirect motives for this general attention now being given to international monetary problems is the unfavorable development and weakened position of the reserve currencies, i.e. the US dollar and the pound sterling. The dollar and the pound form, to a greater or lesser extent, part of the monetary reserves of all capitalist countries, and concern over their prospects necessarily leads to considerations of the possibilities and reliability of the entire current international monetary system.

THE REPERCUSSIONS OF THE RUSSIAN-UKRAINIAN CRISIS ON THE FUTURE OF THE INTERNATIONAL SYSTEM

Beginning with Ukraine's announcement on February 24th that Moscow would start a military operation in its territory, this study examines the current crisis in Ukraine from the perspectives of its causes and the consequences it will have on the future of the current international system. Moscow took a step to raise world concern and fear on February 24th when Kyiv announced that Moscow had begun military operations with a ground invasion of its lands. The previous day, the presidents of Donetsk and Luhansk had asked the Russian president to intervene and protect them from Ukrainian forces. Russia and NATO have been exchanging remarks and threats for some time, and now a confrontation in Ukraine is a distinct possibility. Following this unexpected move, there were analyses and guesses regarding the future of the international system and, by extension, the entire planet. Considering Russia's history of nuclear threats, including the most recent remark by the Russian president that alerts the country's nuclear deterrent forces, this is particularly true. As of this writing, the situation has not been resolved, and it occasionally shows signs of quiet before escalating again

Beyond retribution: Individual reparations for IHL violations as peace facilitators

Abstract Three decades after the United Nations Security Council invoked its Chapter VII powers to create the ad hoc criminal tribunals, there can be little doubt that the prosecution of individuals responsible for serious violations of international humanitarian law (IHL) contributes to restoring and maintaining peace. While there is little doubt that the reparatory function of justice is just as crucial as retribution, under international law today, reparations for IHL violations remain harrowingly insufficient or borderline non-existent. In scholarship and strategic litigation, various attempts have been made to distil an individual right to reparations from black-letter IHL. This article argues that such approaches are doomed to fail, as procedural aspects of international obligations rarely, if ever, emerge through the evolution of an existing customary international obligation, let alone via the crystallization of a new customary international norm. They are usually triggered by a political shift that makes States adopt novel regulations setting forth the jurisdictional ramifications of enforcing a pre-existing right or obligation. This article thus advances a two-fold argument. First, it asserts that States’ increased compliance with the obligation to provide compensation for violations of IHL attributable to them would contribute to “the restoration and maintenance of peace” just as much as the prosecution of persons responsible for serious violations thereof. Second, it argues that the individual right to claim reparations for IHL violations can only be established through a political decision of States, and that the establishment of an international mechanism for Ukraine might be an important precedent for the evolution of the current international system.

Piercing the Curtain: Exploring U.S.-Iran Relations and Realism Through the Qasem Soleimani Assassination

In the domain of global politics, the validation of realist theory would occur if a majority of states held substantial power. However, the current international system features states with varying degrees of capability, leading to divergent objectives. This divergence contradicts realist assertions, prompting a critical examination in this article. By practically evaluating the international system, the article recognizes the diverse capabilities and objectives of states influenced by dominant states, especially in the case of postcolonial states, often overlooked by realism. Utilizing defensive and offensive theories within classical (neo) realism, the article analyzes the Qasem Soleimani case to demonstrate the importance of diverse theoretical perspectives in broadening analysis. The case study underscores the ongoing relevance of realism in understanding the self-help and anarchic nature of the international system.

RMB Internationalization: Exploring Trends and Implications

The aim of this paper is to provide a comprehensive analysis of the historical evolution of the internationalisation process of the RMB and to assess its current status in the global economy. At the same time, in light of the evolution of the current international monetary system, especially the key stages of the gold standard, the Bretton Woods system and the Jamaican system, it provides an in-depth exploration of the challenges of the times, such as exchange rate stabilisation and de-dollarisation, faced by the internationalisation of the RMB. The article focuses on the ten milestones of RMB internationalisation, detailing the collaborative efforts and achievements of East Asian economic powers such as ASEAN, China, Japan, and South Korea in promoting the internationalisation of the RMB. These achievements reflect the positive response to external economic developments and highlight the growing importance of the RMB in the international monetary system. The article analyses the positive role of the Belt and Road Initiative in promoting the internationalisation of the RMB. It has facilitated international economic exchanges and cooperation by simplifying the financing process. The article also provides an in-depth analysis of the many factors affecting RMB depreciation, such as trade wars. It reveals the wide-ranging impacts of these factors on various sectors, especially Chinese exporters. Based on this, the article emphasises the significance of preserving the stability of the RMB exchange rate as a crucial factor to be fully considered while advancing the internationalisation of the RMB. Lastly, the article proposes several constructive suggestions to further promote the internationalisation of the RMB, which offer valuable references for the future development of the international monetary system.

The ecor as global special purpose money: towards a green international monetary system to finance sustainable and just transformation

AbstractCountries from the Global South face significant challenges to finance sustainable and just transformation. These challenges primarily stem from the hierarchical character of the current international monetary system, which requires Global South countries to obtain US dollars to finance imports of green goods, services, and technologies that they cannot (yet) produce, but require for the sustainable transformation. To overcome this hurdle, we propose the foundation of a green international monetary system with a Green World Central Bank (GWCB) at its centre. The GWCB would be allowed to create its own unit of account, which in our model we refer to as the “ecor”. The ecor would be a global special purpose money similar to Keynes’ ‘bancor’. Ecors would be created by the GWCB in the act of lending, and credited to the GWCB accounts of countries to finance imports needed to combat the climate crisis and advance the process of sustainable and just transformation in their societies and economies. Ecors transferred by deficit countries to surplus countries would only be able to be used within the system, leading to an expansionary adjustment of international imbalances. In this way, the amount of ecors would adjust elastically to the real demands for sustainable change and would not be limited by reserves or by funding conditions from private finance. This would create an international monetary system capable of responding appropriately and flexibly to ease the financing needs of countries around the world, thus enabling them, to effectively address the climate crisis on a globally just basis.

International Law and International Relations: Quo Vadis?

The wars in Ukraine and Gaza poignantly reveal the inadequacy of the current international system in maintaining peace. The United Nations faces major limitations due to the absence of enforcement mechanisms and disagreement among permanent members of the Security Council. Stronger global cooperation to enhance the international system’s ability to prevent and resolve wars and conflicts seems like a utopia, but it is necessary for the sake of humanity. The world needs a reimagined international system that prioritizes diplomacy and mediation over military intervention. There is a pressing need for new visions of peace and a closer dialogue between International Law and IR. This review essay critically examines the dialogue between the two disciplines since the interwar period. It highlights that liberal internationalism constituted an important intersection point between the two disciplines during the interwar period. Although the two disciplines grew apart after World War II, the post-Cold War period has witnessed a renewed interdisciplinary dialogue. However, despite this dialogue, scholars of both disciplines lack conversations on novel visions of peace. The complex and evolving challenges of our time urgently require new perspectives on peace beyond mainstream theories and methods. The essay concludes by suggesting that scholars of both disciplines should combine their experience and perspectives to develop innovative ideas for peace.

The dependence structure and causality detection in crude oil markets

ABSTRACT It is essential to capture the dependence structure among the world’s dominant crude oil markets for understanding the world’s crude oil pricing mechanism. The dependence structure and interaction between Shanghai International Energy Exchange (INE) market and other major crude oil markets in the world are investigated to determine whether the world crude oil market is efficient. Using the vine copula model based on GARCH, we analyze the dependence structure and interactions among these markets. The highest dependence is found between West Texas Intermediate (WTI) and BRENT crude oil markets, displaying strong symmetric tail dependence. DUBAI market exhibits unidirectional Granger causality to WTI and INE markets. Empirical results suggest that the world crude oil markets are not efficient and are far from One Great Pool. DUBAI and Brent markets emerge as leaders in the current international crude oil pricing system, while INE markets do not significantly influence DUBAI and BRENT markets.

Protecting Indonesia's Communal Intellectual Property Rights: A TWAIL Perspective

The Third World Approach to International Law (TWAIL) emerges as a critical perspective on the current international legal system, providing a robust framework to aid Indonesia in safeguarding its communal intellectual property rights. This research seeks to emphasize the urgency of adopting TWAIL and elucidates how its application can play a pivotal role in advancing both economic prosperity and social identity in Indonesia. Positioned within a normative juridical framework, this study delves into the TWAIL perspective and its relevance to the protection of Communal Intellectual Property Rights (CIPR). It demonstrates how embracing the TWAIL approach for communal intellectual property rights can establish a legal framework that is more just, inclusive, and respectful of the rights of indigenous communities. By securing strong legal protections at both international and national levels, communities gain the ability to manage their traditional knowledge for commercial use, identifying potential global markets. Consequently, this approach fosters improvement and underscores the potential positive impacts on economic development, particularly in expanding markets and accessing goods.

Diplomacy of Non-State Armed Actors: A New Reality in International Relations?

ABSTRACT The current international system finds itself in a phase where foreign relations are shaped not only by the official governments of individual states but also by other, often diverse, actors. In particular and far more than ever, non-state actors have begun to establish foreign contacts through the same foreign policy tools and activities to increase their political, military, economic and ideological positions. However, despite this trend, the academic field lacks conceptualisation and research into the international activities of non-state armed actors in the current academic field. Hence, this study has the ambition to present a new conceptual approach to the ‘diplomacy’ of non-state armed actors; and initiate a debate in the field of International Relations in the context of the research question of whether we can consider the international activities of non-state armed actors as a new branch of diplomacy.

ФОРМУЛЬНОЕ РАСПРЕДЕЛЕНИЕ: ВОПРОСЫ ТЕОРИИ

The current international tax system, which is based on separate accounting for corporate affiliates trading at arm’s length prices, is increasingly viewed as prone to abuse. Multinational enterprises have become adept at manipulating the rules of the current system to shift profits from high-tax to low-tax (or no-tax) jurisdictions. At the same time, each country’s law sets corporate income tax rates as well as bases, which may be eroded by tax incentives provided via legislation or ministerial discretion. These laws are further overlaid by a network of bilateral tax treaties, which alter the tax treatment of investment depending on the particular source and residence countries involved. This makes administration and enforcement of the corporate income tax costly, especially for developing country governments. Corporate compliance costs also increase with complexity. One fundamental reform proposal is to replace the current system of separate accounting by formulary apportionment.

The impact of central bank digital currency issuance on the international monetary system - taking China and other countries as examples

As the current international monetary system is increasingly unstable and unbalanced, even more countries have begun to study and implement digital currency and put forward the concept of super-sovereign currency. The inherent defects of the international monetary system dominated by the US dollar provide space for the generation and development of super-sovereign digital currencies. Based on the superficial reasons for the issuance of decentralized digital currencies by various countries and the current policy situation, this paper proposes the impact of future super-sovereign digital currencies on the international monetary system. Taking the issuance of digital currencies by the People’s Bank of China as the starting point, this paper combines the data of the Federal Reserve and the Bureau of Economic Analysis from general to special. It is concluded that the super-sovereign digital currency may fundamentally reshape the international monetary system and the pattern of international trade. Developing countries, such as China, may hold the upper hand of the upcoming changes in the international monetary system by promoting the internationalization of the digital yuan with its leading position in the field of central bank digital currency and its important position in world trade.

On the Construction of the SCO Community with a Shared Future for Mankind - From the Perspective of International Law

The 21st century is the century of organization. Against this background, General Secretary Xi’s proposition of “building a SCO community with a shared future” has pointed out the direction for the SCO’s development in the context of a century of change. The proposition of “SCO Community with a Shared Future for Mankind” was put forward by General Secretary Xi Jinping from the perspective of building a community with a shared future for mankind and in order to promote the construction of the “Belt and Road”. However, against the backdrop of profound change unseen in a century, international rule of law has been put on the governance agenda and has become a recognized necessary form of international governance. Therefore, the proposition of building a “SCO community with a shared future” needs to be examined from the perspective of international rule of law. First, in terms of causes, the rise of the argumentative international law paradigm has provided an opportunity to inject oriental wisdom into international rule of law, and the demand for international rule of law in the construction of the “Belt and Road” initiative has also put forward practical demands for the construction of the SCO community of shared future. Secondly, in terms of content, the SCO’s insufficient rule-oriented approach, imperfect legal system, and uneven rule of law among its member states are all specific contents that need to be improved in building a SCO community with a shared future. Finally, in terms of goals, building a SCO community with a shared future should achieve the multi-dimensional goals of common prosperity, universal security, openness and win-win cooperation, equality and inclusiveness, and consultation and construction in the dimension of international law, and inject oriental wisdom into the beneficial development of the current international legal system.

On the Construction of the SCO Community with a Shared Future for Mankind - From the Perspective of International Law

The 21st century is the century of organization. Against this background, General Secretary Xi’s proposition of “building a SCO community with a shared future” has pointed out the direction for the SCO’s development in the context of a century of change. The proposition of “SCO Community with a Shared Future for Mankind” was put forward by General Secretary Xi Jinping from the perspective of building a community with a shared future for mankind and in order to promote the construction of the “Belt and Road”. However, against the backdrop of profound change unseen in a century, international rule of law has been put on the governance agenda and has become a recognized necessary form of international governance. Therefore, the proposition of building a “SCO community with a shared future” needs to be examined from the perspective of international rule of law. First, in terms of causes, the rise of the argumentative international law paradigm has provided an opportunity to inject oriental wisdom into international rule of law, and the demand for international rule of law in the construction of the “Belt and Road” initiative has also put forward practical demands for the construction of the SCO community of shared future. Secondly, in terms of content, the SCO’s insufficient rule-oriented approach, imperfect legal system, and uneven rule of law among its member states are all specific contents that need to be improved in building a SCO community with a shared future. Finally, in terms of goals, building a SCO community with a shared future should achieve the multi-dimensional goals of common prosperity, universal security, openness and win-win cooperation, equality and inclusiveness, and consultation and construction in the dimension of international law, and inject oriental wisdom into the beneficial development of the current international legal system.

Understanding Pakistan China Relations through the Joint Statement (2021-2022)

Pakistan-China diplomatic relations span over more than seven decades of cordial relations represent a unique example in the current international political system of the world. Until the turn of the century the relationship of the neighboring friends was limited mostly to government-to-government, political, defense and diplomatic cooperation. However, since the start of this century, the relationship has been expanded in economic and socio-economic spheres. The realization that the two countries need each other more in the changed regional and global setting is visible on both sides. Nevertheless, understanding each other’s society and culture is still a less explored domain. Currently, bilateral cooperation, under the ambit of the China-Pakistan Economic Corridor (CPEC) has given this relationship an added impetus by bringing in extraordinary prospects of not only bilateral cooperation but also regional integration and development and securing China’s unhindered access to the rest of the world. The thirty-three-point statement has been analyzed to fathom the depth of China-Pakistan bilateral ties. Both the states are continuously struggling to evolve procedures, concepts and mechanisms to keep augmenting the bond of friendship.

Концептуальные основания философии международного права

Introduction. The multidimensionality and plurality of doctrinal sources of the science of international law require a philosophical understanding of the main issues of international law. This is also due to the transitive nature of the current international system. Purpose. To define the conceptual framework for the subject field of the philosophy of international law. Methods. The research uses the general scientific methods of historicism, systematics, and analysis, as well as the comparative law method. Results. It is argued that the historical and conceptual (thematic) frameworks for the philosophy of international law can act as separate directions for meta-research. Conclusions. One of the central categories of the subject field of the philosophy of international law is the concept of international law awareness. The subject field of the philosophy of international law is formed taking into account the historical and conceptual limitations of the idea of universality in the structure of international law studies, as well as their metatheoretical orientation.

THE NEW ARMS RACE BETWEEN CHINA AND THE US: A COMPARATIVE ANALYSIS OF AI-POWERED MILITARY AND ECONOMIC PURSUITS

The current international system fosters change which is catalysed by a factor that is vital to any state's growth in the 21st century - the mastery of technology. To be precise, artificial intelligence (AI) constitutes the powerful leverage that countries will need to know how to use in order to gain the hegemonic advantage. It follows that the development of AI will be paramount in revolutionising the face of future, intelligentised warfare. This paper focuses on the elaboration of the AI narrative from a neorealist perspective, and its effects on the military and economic factors which will be most decisive in determining whether China will outpace the US in the years to follow. To this end, a comparative analysis will be employed, and document analysis will serve as the research method of choice. Not only will AI be essential to drive social change, but it will also be imperative in the development of military tools, such as target detection systems (TDS), and surveillance systems, both of which will serve as case studies to support the hypothesis that rapid AI developments stem from existing geopolitical tensions and competition, which drive the need for both countries to militarise. The growth potential of these technologies also prophesises a return on investment, for whichever state aims to employ them, in terms of both economic and military potential, international relevance, and, ultimately, security in the international system. As such, the important role of multinational domestic companies cannot be overstated in this case, and will be discussed.

UNDER PRESSURE OF DIGITALIZATION AND GEOPOLITICAL CHALLENGES: INTERNATIONALIZATION OF CURRENCIES AND THEIR RESERVE STATUS

Digitalization and geopolitical challenges are increasingly being viewed as preconditions for the transformation of global monetary order towards stronger multipolarity. However, according to traditional approaches, current status quo is more viable because of the technological neutrality of reserve currency status. At the same time, alternative approaches point to technological opportunities for the internationalization of the renminbi, which would heighten the competition between the main currencies and hurt the U.S. dollar. Critical overview of new theoretical approaches indicates that putting retail CBDC at the heart of changes in global monetary order is too categorical. It is likely that digitalization will affect the technology of international transactions and thus enhance competition between leading currencies in how they support payment services for clients. Meanwhile, CBDC design issues and cooperation between central banks in transborder digital payments create new trade-offs that support the more traditional approach on global monetary competition. Recent demand trends of reserve assets also contribute to stronger rigidity of the international currency system.