Weekly Recap Dec 12 to Dec 18

North America

• Seven individuals were charged last Tuesday (Dec 13) with conducting a smuggling network to obtain military technology and ammunition for Russia. A federal indictment charged two Americans and five Russian nationals of conducting a network of military technology smuggling conspiring to violate United States (US) sanctions. According to the Justice Department, three of the seven accused are currently in custody, one of them being a suspected Russian intelligence officer. Members of the “Serinya network” allegedly set up hundreds of front companies to conceal millions of dollars in military technology purchases. After being cut off from military sources in the United States and Europe, Russia has struggled to produce enough ammunition to equip its soldiers in Eastern Ukraine.
• The US is said to have finalised its plans by last Thursday (Dec 15) to dispatch a Patriot air defence system to Ukraine and it would be the most modern surface-to-air missile system ever delivered to Ukraine by the West. Following an urgent request from Kyiv for more robust weapons to shoot down Russian missiles and drones that have devastated the country’s energy infrastructure – depriving millions without heating amid the depths of winter  – Ukrainian President Volodymyr Zelenskyy has pressed Western leaders to equip his country with more advanced weaponry. This decision, however, has been warned against by former Russian President Dmitry Medvedev that Russia is sure to view this move as an escalation – implying the possibility of further aggression by the Kremlin.

• A three-day US-Africa summit opened in Washington last Tuesday (Dec 13), with the Biden administration proposing to invest US$55 billion (S$74.5 billion) over the next three years to boost the continent, where China has been expanding its economic weight. A total of forty-nine countries alongside the African Union (AU), were invited to the event to discuss cooperation on a variety of subjects, such as investment and trading, security, health as well as climate and space. The White House also stated that the summit will show the United States’ enduring commitment to Africa, and will underpin the significance of US-Africa relations and increase cooperation on shared global priorities. However, while the conference is welcome, some experts believe it is “overdue” given China’s growing interest in Africa, notably through its Belt and Road development projects. This summit is the first between the United States and Africa since Barack Obama invited leaders back in 2014.
  
• The US National Archives has released over 12,000 documents related to John F. Kennedy’s assassination. President Joe Biden decided back in 2021 to postpone the publication of the latest trove of documents until last Thursday (15 Dec), citing an assessment from the national archivist that the pandemic had a “significant impact” on agencies that were required to be consulted on redactions. The release of 12,879 documents was not expected to provide any new revelations nor modify the commission’s finding that Lee Harvey Oswald (former Marine and communist activist previously residing in the Soviet Union) acted alone. The most recent publication, however, will be helpful for historians studying the circumstances surrounding the assassination. A 1992 law compelled the US government to make the last of the Kennedy assassination documents public by October 26, 2017, unless the incumbent president chose to retain them for national security concerns.
  
• The US blacklisted key Chinese chip and AI firms, taking another swipe at China’s technological ambitions. The Bureau of Industry and Security (BIS) has identified 36 businesses last Thursday (Dec 15) that it believes are “acting contrary to the national security or foreign policy interests of the US”. Without access to US technologies, China’s ability to create semiconductor breakthroughs is becoming increasingly uncertain. YMTC, which Reuters reported was under investigation for allegedly breaching US export regulations by supplying chips to Huawei without a licence, was lauded by top Senate Democrat Chuck Schumer. Schumer added in a statement that “YMTC poses an immediate threat to our national security, so the Biden Administration needed to act swiftly to prevent YMTC from gaining even an inch of a military or economic advantage.”
  
• Canadian police report six people deceased, including the perpetrator, after a shooting at a Vaughan condominium building. The head of York Regional Police reports that six people, including a suspect, died in the shooting at a condominium complex in Vaughan last Sunday night (Dec 18). An active shooting report was received at a building on Jane Street, just north of Rutherford Road, around 7:20 p.m., according to Chief Jim MacSween at a press conference held around 11 p.m. When the police came, they found “a horrendous scene where numerous victims were deceased.” The chief also added that a seventh individual who also suffered injuries, was brought to the hospital, and is expected to survive. The homicide unit of the York police is still looking into it. MacSween added that it will take some time for the police to ascertain the reason behind this investigation and what attracted this perpetrator to this location.
  
• Economic analysts to revise their growth projections for Mexico in 2023. The UN Economic Commission for Latin America and the Caribbean (ECLAC or Cepal in Spanish) and Fitch Ratings updated their projections for Mexico’s economic growth in 2023 last Friday (Dec 16). Fitch predicted 1.4% growth for the next year, whereas ECLAC predicted 1.1% growth. If rising inflation continues at its current rate, Fitch cautioned that “strong consumer performance might be derailed, weakening the background already created by sluggish investment.As pricing pressures widen and become entrenched, controlling inflation is proving to be more challenging than anticipated. We are aware that it will be bad for growth, but it is obvious that central bankers must remove their protective gloves and carry on with their work.”

South America

• The Chilean parliament agreed to a path forward for its new Constitution last Monday (Dec 12) after its first draft faced a landslide rejection in a referendum three months earlier. Following the historic election of President Gabriel Boric, a leftist, his party sought to amend the economic policies put in place by dictator Augusto Pinochet and his successors. The new Constitution will be drafted by a commission of 24 experts, which will then be amended based on 50 advisors elected by direct vote. It will then be submitted for a referendum in November or December 2023, subject to compulsory participation.
• Venezuelan President Nicolás Maduro announced last Monday (Dec 12) plans to completely open borders between Venezuela and Colombia. As Colombia elected its first leftist leader, President Gustavo Petro, the relations between the two countries have thawed since breaking off in 2019. Petro recognised the legitimacy of the Maduro presidency, in light of a portion of the international community denouncing it as fraudulent.
• President Dina Boluarte suggested holding elections in 2023 instead of 2026 last Thursday (Dec 15). Former Peruvian President Pedro Castillo had attempted to dissolve Congress and instate a rule by decree only to be forced out and replaced by Vice President Dina Boluarte. Protests in support of Castillo have since swept across the country.
• Pro-Castillo protests resulted in at least 17 deaths as the Peruvian government declared a 30-day state of emergency last Thursday (Dec 15). Amidst a political crisis, the state of emergency imposes a curfew, restricts movement and gathering, and allows the police to search homes without judicial oversight.

• Incumbent Brazilian President Jair Bolsonaro’s supporters attempted to occupy a federal police headquarters in Brasilia last Monday (Dec 12). This came a day after the certification of Bolsonaro’s election defeat. Violence ensued after a Bolsonaro supporter had been detained for “anti-democratic acts”.
• Ecuador President Guillermo Lasso said that a trade agreement with China is “practically closed” last Wednesday (Dec 14).  They had begun negotiations in February earlier in the year, and have lauded it as “highly efficient”. The agreement will likely boost Ecuadorian exports — about US$1 billion (S$1.36 billion) — and increase employment in manufacturing. China has had an expanded role in Ecuador’s economy in the past 10 years as they have million-dollar loans linked to delivery contracts of crude, as well as infrastructure investments in dams and mining.
• Colombia President Gustavo Petro announced last Thursday (Dec 15) that the minimum wage will increase by 16 per cent in 2023. It will rise to 1.16 million pesos (S$327.74) a month, Petro said. This increase comes as inflation has ravaged Colombia, with their twelve-month inflation hitting 12.53 per cent.

Asia Pacific

• Japan’s ruling Liberal Democratic Party agreed last Thursday (Dec 15) to raise taxes in 2024 to fund increased defence spending. Prime Minister Fumio Kishida had committed to double defence spending to 2 per cent of gross domestic product by 2023 to address geopolitical risks like an expansive China and impulsive North Korea and Russia. Taxes affected are a tobacco tax, a special income tax initially intended for rebuilding after the 2011 earthquake and tsunami, and corporate taxes.

• New Zealand passed a bill that bans those born after 2008 from buying tobacco last Tuesday (Dec 13). It was introduced by Health Minister Ayesha Verrall, and said “Thousands of people will live longer, healthier lives and the health system will be NZ$5 billion (S$4.31 billion) better off from not needing to treat the illnesses caused by smoking.” The bill also is designed to curb the number of retailers selling tobacco products, from 6,000 to 600, as well as lower the nicotine levels in cigarettes.
• China submitted a World Trade Organisation (WTO) dispute against the United States (US) following their chip export control bill. The Creating Helpful Incentives to Produce Semiconductors and Science (CHIPS) Act had been passed in October in the US, which is largely seen to be aimed at disrupting China’s semiconductor industry. A Chinese diplomat expressed that the Act “threatened the stability of the global industrial supply chains.”
• Japan and the Netherlands followed the US’ lead and agreed “in principle” to curb the Chinese semiconductor industry last Tuesday (Dec 13). The CHIPS act controlled the exports of advanced semiconductor technology, and Japan and the Netherlands are to follow suit.
• International Monetary Fund Chief Kristalina Georgieva announced last Friday (Dec 16) that China agreed to form an international debt “roundtable”. After meetings with high-level Chinese policymakers, Georgieva said that she is feeling “a bit more optimistic” regarding the debt crises faced by low- to middle-income nations. She said that they discussed the speeding-up of relief for countries like Zambia and Sri Lanka.

• Indonesia’s Parliament passed a bill outlining a bilateral extradition treaty with Singapore last Thursday (December 15). Indonesia expects the bill to bring in alleged white collar criminals and hide billions of state funds offshore. Jakarta hopes that the treaty will ease the arrest of fugitives which had escaped the country in the midst of the 1997 Asian Financial Crisis. The treaty outlines 31 types of crimes and will hold the accused liable for offences committed up to 18 years ago.

Europe

• Prime Minister Leo Varadkar stepped up to the position of Premier yet again last Saturday (Dec 17), replacing Michael Martin in an unprecedented rotation deal between both their parties. This agreement of rotating premiership was agreed upon as part of a coalition following the 2020 elections. The parties Fine Gael and Fianna Fail date back to the Irish Civil War in the early 20th century, where they were each on opposing sides. The country’s youngest prime minister, Ireland’s first openly gay head of government, and the first Premierof Indian heritage, Varadkar’s rise to the top of Irish politics was lauded as remarkable in view of Ireland’s strict and conservative Catholic views.
• Lawmakers in Spain voted to approve a bill that allows for paid menstrual leave for women suffering from painful periods last Thursday (Dec 15), a move unprecedented in Europe. The duration of sick leave granted to women was not specified in the bill and it was stated that the state social security system, not employers, would cover the cost of these absences.  This is a first in the continent of Europe, with Spain following in the footsteps of countries like Japan, Indonesia and Zambia.  Increased access to abortion in public hospitals is also specified in this bill, with it allowing minors to have access to abortions without parental permission at the ages of 16 and 17. In a country with a strong Catholic tradition, access to abortion is still littered with obstacles like conscientious objections by doctors. This bill also specifies the reinforcement of sex education in schools together with the free distribution of contraceptives as well as menstrual hygiene products in high schools. 

• A landmark deal was reached between nearly 140 countries to adopt a minimum 15 per cent tax on big businesses last Thursday (Dec 15) to aim to stop a race between governments to cut taxes for the purpose of attracting companies. The approved plan was drawn together with the guidance of the Organisation for Economic Cooperation and Development (OECD), but the deal was delayed after months of objections and blocking tactics by member states . The new global minimum tax will come into effect across Europe at the end of 2023. Hailed as an important step forward towards tax fairness and social justice, it falls into the pillars of the OECD agreement that big companies should pay a “fair share” of tax. 
• Francesco Girogi, partner of previously outed Vice-President of the European Parliament Eva Kaili, confessed to his role in the Qatar graft scandal last Thursday (Dec 15). The Qatar graft scandal was when large sums of money and substantial gifts were offered to MEPs (Member of the European Parliament) and assistants by the Gulf country in order to influence decision making in the European Parliament. MP Eva Kaili had previously been charged with corruption, money laundering as well as for participation with a criminal organisation and had been ousted from her role as the vice-president for the European Parliament. Now her partner, Francesco Girogi, has also confessed to receiving bribes from Qatar in order to influence European parliament decisions on Qatar. The state of Qatar has denied any wrongdoing and accusations of misconduct.

• Amid a disruption to energy supplies because of the Russian-Ukraine war, European leaders of Hungary, Romania, Georgia, and Azerbaijan came together and finalised an agreement on a new power source for the European Union last Saturday (Dec 17). This deal involves a cable running beneath the Black sea that would eventually link Azerbaijan to Hungary via Georgia and Romania. The deal had begun as Hungary seeks additional resources for fossil fuels so as to reduce its heavy dependence on Russian oil and gas. The undersea electricity cable project will hopefully diversify energy supplies as well as increase regional energy security. The project has been estimated to complete within three or four years, and would be a major step forward in terms of achieving carbon neutrality targets.
  
• Germany replaces Russian gas with a floating terminal for liquified natural gas. Chancellor Olaf Scholz opened Germany’s first liquified natural gas (LNG) terminal last Saturday (Dec 17) as Germany scrambles to switch to alternative sources of energy to reduce dependence on Russia. It is a step forward to Germany’s desire to become independent of Russian gas and is built in the northern town of Wilhelmshaven. However, there are protests from activists for a fundamental shift away from fossil fuels as well as regarding the discharge of waste water treated from LNG.

Middle East

• Israel’s Prime Minister Benjamin Netanyahu urged the United States to reaffirm its commitment to Saudi Arabia last Thursday (Dec 15). He said that a normalisation agreement between Jerusalem and Riyadh could serve as a “quantum leap” for long-stalled peace talks with the Palestinians. Netanyahu also said that “there should not be periodic swings or even wild swings in this relationship,” describing these relationships as the “anchor of stability in the region.” US-Saudi ties have been strained throughout the Biden administration, which called out the Kingdom on human rights violations. In response, Riyadh has rejected US appeals to increase energy production to lower global costs.
  
• The IMF has approved a $3 billion (S$4.07 billion) aid package for Egypt, they announced last Friday (Dec 16). The deal would offer $3 billion in assistance to Egypt over a period of almost four years, with the agreement expected to bring in an extra $14 billion (S$18.9 billion) in finance for the Middle Eastern country following a preliminary deal signed between Egypt and the institution in October. The initial deal came just hours after Egypt’s central bank announced a series of reforms, including a 2-percentage point increase in key interest rates. The agreement aims to reduce government debt while also strengthening the citizen’s social protection networks.
  
• The United Nations’ (UN) nuclear inspectors will visit Tehran as Iran enriches uranium to unprecedented levels. The International Atomic Energy Agency (IAEA) headed to Tehran last Sunday (18 Dec). The visit aims to address outstanding “safeguard” concerns related to uranium traces discovered at three undeclared Iranian sites back in 2019. At the moment, there is no indication that the IAEA will look into Iran’s recent declaration that it is enriching the purity of uranium to 60 percent, which is one technical step towards it being a weapons-grade material.

• A coalition of Iranian opposition groups in Washington has urged the international community as well as the United States to back protesters in Tehran who are in the midst of their third month of uprising against the regime. Former US officials and Iranian opposition groups see the regime in Tehran coming to an end. The Iranian American Communities Organization (OAIC), which is active in the United States, held a conference in Washington, DC last Saturday (Dec 17) where many former senior American officials attended. According to officials in OAIC, the last three months have been “unprecedented”, adding that “over 30,000 protesters have been detained, more than 700 killed, while the regime has begun executing imprisoned protestors.” The OIAC hopes that the opposition and protests would result in the replacement of Iran’s theocratic system with a more democratic, secular, and non-nuclear regime.
•  In an attack in Kirkuk in the country’s north, at least seven members of Iraq’s federal police were killed last Sunday (Dec 18) where the Daesh group militants are still active, according to police and government officials. A truck transporting the men was initially targeted by a bomb blast. On the condition of anonymity, a federal police officer who attributed the assault to Daesh said it was followed by “a direct attack with small arms” near the village of Chalal Al-Matar. No group claimed responsibility for the attack immediately.

Africa

• Kinshasa battled the worst floods it has ever experienced last Tuesday (Dec 13), resulting in a death toll of over 160. Major roads in the centre of the city were submerged for hours with a key supply route leading to the Port of Matadi collapsing. The city has an estimated population of 15 million and United Nations’  officials estimated that the flooding had killed more than 160 people. The hardest hit towns were the Mont-Ngafula and Ngaliema districts in the capital west. The city suffers from inadequate drainage and sewage, with many dwellings being shanty houses that are built on flood prone slopes. 
• Israel’s Prime Minister Benjamin Netanyahu urged the United States to reaffirm its commitment to Saudi Arabia last Thursday (Dec 15). He said that a normalisation agreement between Jerusalem and Riyadh could serve as a “quantum leap” for long-stalled peace talks with the Palestinians. Netanyahu also said that “there should not be periodic swings or even wild swings in this relationship,” describing these relationships as the “anchor of stability in the region.” US-Saudi ties have been strained throughout the Biden administration, which called out the Kingdom on human rights violations. In response, Riyadh has rejected US appeals to increase energy production to lower global costs.
  
• The IMF has approved a $3 billion (S$4.07 billion) aid package for Egypt, they announced last Friday (Dec 16). The deal would offer $3 billion in assistance to Egypt over a period of almost four years, with the agreement expected to bring in an extra $14 billion (S$18.9 billion) in finance for the Middle Eastern country following a preliminary deal signed between Egypt and the institution in October. The initial deal came just hours after Egypt’s central bank announced a series of reforms, including a 2-percentage point increase in key interest rates. The agreement aims to reduce government debt while also strengthening the citizen’s social protection networks.
  
• The United Nations’ (UN) nuclear inspectors will visit Tehran as Iran enriches uranium to unprecedented levels. The International Atomic Energy Agency (IAEA) headed to Tehran last Sunday (18 Dec). The visit aims to address outstanding “safeguard” concerns related to uranium traces discovered at three undeclared Iranian sites back in 2019. At the moment, there is no indication that the IAEA will look into Iran’s recent declaration that it is enriching the purity of uranium to 60 percent, which is one technical step towards it being a weapons-grade material.
• Two deputies of the Sengalese opposition, Massata Samb and Mamadou Niang, were imprisoned last Thursday (Dec 15) in Dakar for hitting a colleague of the majority party, Amy Ndiaye in the National Assembly. The MPs were seen slapping the Parliamentarian and kicking her in the stomach in full view of the public. The MPs would be tried on Monday (Dec 19) for their actions. Parliamentarian Amy Nidaye, Mayor of the town of Gniby, was hospitalized after the incident, and has been issued a medical certificate that stated there was a possibility of a miscarriage. 

• Uganda authorities announced on last Saturday (Dec 17) the end of a two month lockdown in two districts at the epicentre of the Ebola outbreak, Mubende and Kassanda. Since September, Uganda has recorded 142 confirmed cases of Ebola as well as 56 fatalities. The epidemic has even reached the capital city of Kampala. Lockdown measures were introduced to halt the spread of the disease.
  
• Turnout for Tunisia’s recent election last Saturday (Dec 17)  was the lowest ever at  8.8%. President Kais Saied was urged to resign. However, the election was described as clean due to the lack of political financing as well as vote buying. Opposition groups have boycotted the election and described it as a ‘coup’ against democracy.
  
• Hundreds of Liberians gathered last Saturday (Dec 17) in Monrovia’s suburb in order to demonstrate against President George Weah. Organised by the opposition, the protest was motivated by soaring prices and shortages of basic goods in the country. Leader of the opposition coalition, Alexander Cummings accused President Weah of failure. Meanwhile, President Weah has been out of the country of Liberia since the end of October and was expected to return last Sunday (Dec 18). A new president and parliament is set to be chosen in October 2023.