Italy’s New Government: Business as Usual

Posted on January 30, 2023 by Assistant Editor

Journal of Political Risk, Vol. 11, No. 1, January 2023

Lorenzo Ammirati

The image depicts a poster with a stylized black-and-white illustration of a woman wearing a military-style uniform and cap, reminiscent of fascist propaganda art. The background features the Italian flag with vertical green, white, and red stripes. Below the image, in bold black and red text, is the label "MUSS-MELONI", which is a play on the names of Benito Mussolini, the Italian fascist dictator, and Giorgia Meloni, the Italian politician. The image appears to be a piece of street art or protest art, criticizing Meloni by drawing a parallel between her and Mussolini.

Poster of Giorgia Meloni, leader of the Brothers of Italy Party, 2022. Source: Duncan Cumming via Flickr.

Nationalist identarian right-wing party Fratelli d’Italia (“Brothers of Italy”) was the only major Italian party to oppose former European Central Bank President Mario Draghi’s “national unity” coalition government which governed Italy between February 2021 and September 2022. Among the key campaign promises made by Fratelli d’Italia’s leader and current Italian Prime Minister Giorgia Meloni during the electoral campaign of September 2022 was a break with the economic policies of the Draghi government. However, the first Italian female Prime Minister has thus far demonstrated the opposite orientation.

In fact, Meloni’s sphere of decision making on economic policy is severely limited. Italy’s extremely high levels of public debt (above 150% of GDP) coupled with weak trust from financial markets and the European Union’s tight fiscal rules make it very costly (both financially and reputationally) for any Italian government to finance new public policies. Additionally, investments are currently mainly being made through the European Union’s Recovery Instrument, an ad-hoc fund created after the COVID-19 pandemic which lends money for EU approved projects, greatly constraining the power of the Italian government.

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The Recurring Intellectual Plague of Globalization

Posted on May 6, 2020 by admin

Journal of Political Risk, Vol. 8, No. 5, May 2020

The photo is taken from behind an office worker in a shirt. They are only partially visible. The focus is on a laptop screen depicting graphs and pieces of paper.

A rear view of a businessman as he tries to sort out the mess of geopolitical events. Source: Pexels.

William R. Hawkins
Former U.S. House Foreign Affairs Committee

In the public mind, the outsourcing of jobs to China, which built the conveyer belt that carried Covid-19 from Wuhan to the world, was the fault of soulless transnational corporations. Greedy business tycoons were willing to deal with anyone in the pursuit of profit, regardless of larger consequences (of which the current pandemic is not the most dire). What cannot be overlooked, however, is that these private actors were given moral cover by intellectuals who assured them that they were fulfilling a higher purpose by spreading liberal values and promoting peace in a new era of globalization. Continue reading →

Plutocrats Are Only Part Of A Larger Problem

Posted on February 6, 2020 by admin

Journal of Political Risk, Vol. 8, No. 2, February 2020

A pink name card with "Tim Cook" (also written in characters below) features in the foreground against the backdrop of a green, felt table and iPads.

BEIJING, CHINA – MARCH 18: Apple CEO Tim Cook (R) attends China Development Forum 2017 – Economic Summit at Diaoyutai State Guesthouse on March 18, 2017 in Beijing, China. The forum sponsored by Development Research Center of the State Council centers on “China and the World: Economic Transformation through Structural Reforms”. Source: ITHome.

William R. Hawkins
Former US House Foreign Affairs Committee member

I ran across a review of the Plutocratic Insurgency Reader in an unusual place. Not in the usual left media outlets, like Jacobin, Dissent or The New Republic as its title would seem to fit, but in Parameters, the quarterly journal of the U.S. Army War College (AWC). This is because the book is not edited by the usual “progessive” activists, but by Robert J. Bunker, adjunct research professor at the AWC Strategic Studies Institute and his wife, Pamela Ligouri Bunker, a specialist in counter-terrorism. And the book is published under the auspices of the Small Wars Journal (SWJ), not known for leaning left.

The book collects 31 short essays by 15 authors, six of whom have ties to either the AWC or the SWJ, thus giving a high expectation that national security would be its primary concern. Its self-avowed purpose is to present the core of a scholarly movement that originated in 2012 from correspondence between Robert Bunker and Nils Gilman of the Bergguen Institute concerning how the wealthy “opt out of participation in the collective institutions that make up society.” The Bergguen Institute was founded in the wake of the 2008 financial crisis and Gilman’s interest is apparently reshaping the relationship between globalized capitalism and national sovereignty. As one reads through the essays, there is a tension that undermines the national security side of the discussion in favor of a domestic policy focus on income inequality and a radical desire to transform property rights that leaves the welfare state in the dust. Gilman is not an editor, but I would argue, his is the stronger voice.

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Trade Wars, Sanctions and Business Appeasement

Posted on June 3, 2019 by admin

Journal of Political Risk, Vol. 7, No. 6, June 2019

Chinese President Xi Jinping is photographed in the center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington.

Chinese President Xi Jinping, center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington. The Paulson Institute, in partnership with the China Council for the Promotion of International Trade, co-hosted the event. Source: Governor Jay & First Lady Trudi Inslee via Flickr.

William R. Hawkins
International Economics and National Security Consultant

In his book Appeasing Bankers, Jonathan Kirshner, the Stephen and Barbara Friedman Professor of International Political Economy at Cornell, argues that “Bankers dread war. More precisely, financial communities within states favor cautious national security strategies and are acutely averse to war and to policies that risk war.” He finds this to be a “universal” trait (at least within capitalist societies) evident throughout modern history. This should be kept in mind when watching the large swings in the stock market in response to reports about the progress, or lack of, in U.S.-China trade talks, Iranian threats and turmoil at the Mexican border. While Kirshner focuses on “stability” with an emphasis on inflation and debt accumulation, he notes the “breathtaking financial globalization” that took place in the post-Cold War period. This has made markets even more sensitive to the dynamics of a contentious international system. Fortunately, the stock market rapidly recovers from panics generated by headlines thanks to the fundamental strength of the U.S. economy.

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Biden’s Embrace of Globalism Includes Waltzing with China

Posted on May 9, 2019 by admin

Journal of Political Risk, Vol. 7, No. 5, May 2019

Chinese President Xi Jinping (R) shake hands with U.S Vice President Joe Biden (L) inside the Great Hall of the People on December 4, 2013 in Beijing, China. Source: Li Jilin via Flickr.

William R. Hawkins
International Economics and National Security Consultant

Joe Biden drew considerable attention when he said at a campaign rally in Iowa “China is going to eat our lunch? Come on, man. They’re not bad folks, folks. But guess what? They’re not competition for us.” Many wanted to just dismiss this as another one of the former Vice President’s many gaffes. But there is reason to accept this statement as a true expression of his beliefs.

Biden’s soft approach to China is at the core of the Penn Biden Center for Diplomacy & Global Engagement, which opened its Washington DC offices in February 2018. The stated aim of the Penn Biden Center (the Penn refers to the University of Pennsylvania which provides the group’s institutional home) is to “Address Threats to the Liberal International Order.” These threats are set out as follows: “The postwar order that America built together with our allies is under attack. The siege comes from multiple directions—from authoritarians who strangle liberty in the name of security to terrorists who radicalize across borders and nationalist leaders who fuel fear and division at home. Powerful illiberal states are capitalizing on this moment by filling the vacuum of leadership with values that do not match our own. They perceive the success of our system as a threat to theirs—fashioning a zero-sum world.” This is a fine statement, but leaves out who these authoritarian and illiberal adversaries are. China clearly fits the description, but is not mentioned. Russia, however, is: “In particular, under President Putin, Russia seeks to return to an era when the use of force prevails and the world is carved into spheres of influence.” The ethereal menace of “climate change” is also mentioned along with terrorism, cyber attacks and epidemics. So if a list is presented, why isn’t the Beijing regime on it?

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