Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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Mired in political gridlock, battered by economic crisis, and uncertain about its foreign relations, Ukraine faces a difficult year, a year that will end with a presidential election.  How is Ukraine coping with these difficulties?  And how should the West respond in helping Ukraine meet the challenges before it?

Synopsis

Ambassador Pifer begins his assessment of Ukraine’s challenges by identifying the four key issues it will have to face this coming year. Firstly, Mr. Pifer argues that a serious problem is the incompatible relations between Ukraine’s president, Viktor Yushchenko, and Ukraine’s prime minister, Yulia Tymoshenko. Mr Pifer identifies the energy situation as a key battle issue between the two. Most seriously, Mr. Pifer believes that such feuding compromises Ukraine’s ability to deal with serious issues such as energy and the economic crisis. In addition, Russia seems to play the two against each other. Therefore, Mr. Pifer argues that the West begin by getting the two to cooperate on key issues. Mr. Pifer also stresses the need for a coordinated US-EU stance and also proposes the possible revival of a US-Ukraine bi-national commission.

An aspect of Ukraine clearly being affected by this feud is Ukraine’s handling of the economy. Mr. Pifer examines how Ukraine was suddenly hit hard by the global financial crisis in October 2008. This was partly caused by a fall in the global demand for steel, one of Ukraine’s key exports, and led to further inflation and investors avoiding the country. Ukraine also received $16 billion from the IMF on the conditions of having almost no budget deficit and fell short of this condition earlier this year leading to a delay in the transfer of funds from the IMF. While some believe in a possible recovery in 2010, Mr. Pifer argues the West can help in several ways. Firstly, it must push Ukraine to continue to follow IMF conditions to receive the vital funding. Mr. Pifer also proposes an international donor conference for Ukraine to receive the additional money it needs but will not receive from the IMF. He argues for the abolition of Ukraine’s “communist” commercial code and the freer sale of land to get the agricultural market flowing.

Another possible crisis point is Ukraine’s energy situation. Mr. Pifer examines Ukraine’s dependence on Russia and how during the January crisis it did not pass any reserve gas onto its Western neighbors, weakening its international reputation. Mr. Pifer does recognize Ukraine’s efforts to lessen its use of natural gas, particularly due to the increase in prices. However, he argues Ukraine is still very vulnerable, and this is not helped by the fact that Ukraine’s own energy agency is nearing bankruptcy as it maintains unsustainably low prices. Therefore, Mr. Pifer believes the first step forward is, although tough, for energy prices to be raised. Then, the West should offer technical assistance to improve the efficiency of Ukraine’s energy system. Finally, Ukraine should seek EU funding to modernize its pipelines.

The final issue Mr. Pifer addresses is Ukraine’s complex foreign policy. Mr. Pifer explains Ukraine’s difficult relationship with Russia is marred by differences over energy, NATO, and Georgia. Mr. Pifer also cites Russia’s resources in Ukraine to stir tension if it wants to weaken the country. Another serious aspect is Ukraine’s uncertain relationship with the EU consisting of support from the Baltic states and reluctance from the Western states such as France and Germany. Mr. Pifer feels it is important for the West not to give up on Ukraine but to push the country to forge a consistent line between president and prime minister. The US should also let Ukraine know how much support it would receive were it to become involved in an economic conflict with Russia.

Mr. Pifer concludes by stating that the US should be clear that this new attempt at resetting relations might not survive a Russian-initiated crisis with Ukraine.

In answering the audience's multitude of questions, a variety of issues were raised. Discussion included key points such as the receptiveness of Ukrainian leaders to international advice or the impact of Ukraine's membership of the World Trade Organization. One issue Mr. Pifer particularly emphasized was his belief that Ukraine should not be part of NATO as long as public opinion stands against it.

about the speaker

Steven Pifer is a visiting fellow at the Brookings Institution and a (non-resident) senior adviser with the Center for Strategic and International Studies. A retired Foreign Service officer, his more than 25 years with the State Department focused on U.S. relations with the former Soviet Union and Europe, as well as on arms control and security issues. His assignments included deputy assistant secretary of state in the Bureau of European and Eurasian Affairs (2001-2004), ambassador to Ukraine (1998-2000), and special assistant to the president and National Security Council senior director for Russia, Ukraine and Eurasia (1996-1997). He also served at the U.S. embassies in Warsaw, Moscow and London, as well as with the U.S. delegation to the Intermediate-Range Nuclear Forces negotiations in Geneva. He holds a B.A. in economics from Stanford University, where he later spent a year as a visiting scholar at Stanford's Institute for International Studies. He is a member of the Council on Foreign Relations.

Sponsored by the Forum on Contemporary Europe and the Center for Russian, East European and Eurasian Studies.

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Steven Pifer Visiting Fellow, Brookings Institution; Senior Advisor, Center for Strategic and International Studies; Former US Ambassador to Ukraine (1998-2000) Speaker
Seminars
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Latvia is a country that has come through a crisis before; can it do it again? Professor Stranga examines the current crisis in Latvia, a country much evolved over the past 50 years. He focuses on a variety of social, economic, and political factors in assessing how Latvia can move forward.

Synopsis

Prof. Stranga begins by examining what he calls Latvia’s “first great crisis” from 1929-1933. At the time, Latvia was a democracy, a member of the League of Nations, but critically had no security guarantees and was stuck between Nazi Germany and Soviet Russia. Prof. Stranga explains that this crisis was overcome by the dictatorship of Karlis Ulmanis, whose regime lasted from 1934 until the Nazi occupation. Those years were seen as the ‘Golden Years,’ times of economic flourishing and national freedom from occupation. Prof. Stranga reveals this period had long lasting effects on the national psyche of Latvia.

To Prof. Stranga, Latvia is in a very different situation today. He argues that these are times of very limited sovereignty, particularly for his country. Prof. Stranga explains that this is mainly due to Latvia’s dependence on the EU, NATO, and the IMF which provide economic and military security. Prof. Stranga identifies the effects of Karlis Ulmanis’ regime as the perception in Latvia that a ‘strong man’ is needed to guide Latvia out of its current crisis. However, the necessity for Latvia to remain a democracy is made clear by the help it receives from the organizations mentioned above.

Although the help is clearly needed, Prof. Stranga feels that its consequences are often very painful. The IMF’s conditions for essentially saving Latvia’s economy include cutbacks in medical assistance and a reduction of teachers and schools, facets of public life deeply engrained in Latvia’s culture. In addition, Prof. Stranga examines the question of energy security. He looks particularly at Latvia’s absolute dependence on Russia exhibited by the fact that Gazprom’s first foreign office is in Latvia, and the fact that this has perhaps hindered Latvia’s progress.

At the same time, it seems clear that Prof. Stranga sees this crisis also as an opportunity. Firstly, he argues that now is probably the time to not be shy but to look for alternative energy sources such as nuclear energy, something Prof. Stranga further discussed when answering questions. Moreover, Prof. Stranga believes there are too many bureaucratic positions, and the crisis is an opportunity to cut these off and direct funding elsewhere. In addition, he feels the crisis is a chance to reconstruct exports. In particular, Prof. Stranga would like to see Latvia leaning more towards innovation rather than timber or agriculture. Finally, Prof. Stranga addresses Latvia’s issue of an internally divided society, particularly between Latvians and Russian speakers. He analyzes Latvian Russians’ diminishing impact as Russia’s economy falters but also expresses concern at the fact that Russian influence in Latvia seems to be heavily dependent on Russia’s economic state.

Prof. Stranga kindly takes the time to briefly answer a few questions and raises several issues in the process. Prof. Stranga cites Latvia's population reduction as perhaps the "greatest" problem it faces. However, he feels reassured by the help of the friendly states of Scandinavia and other organizations across the world. At the same time, Prof. Stranga explains such organizations are not having an entirely positive impact. In particular, he argues against the "inhuman" approach of solely focusing on cutting back capital of the IMF which he feels is an assault on Latvian life.

About the speaker

Aivars Stranga is professor and chair of the Department of History at the University of Latvia. He is the author of seven monographs and more than 150 scholarly and general publications on Latvian domestic and foreign policy andinternational relations between 1918 and 1940, and Latvian foreign policy from 1991 to 2000. Professor Stranga was a distinguished visiting professor at Stanford in 2003, teaching courses on Baltic History and the History of the Holocaust in the Baltics.

Jointly sponsored by the Forum on Contemporary Europe, Stanford Humanities Center, Department of History, Taube Center for Jewish Studies, and Center for Russian, East European and Eurasian Studies.

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Aivars Stranga Professor of History Speaker University of Latvia
Seminars
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Ambassador Eliasson sets out the current status of Europe-US relations and acknowledges the wide range of daunting problems the world must face today. He emphasizes the need for an enhancement of the transatlantic relationship, as well as the need for multilateral cooperation. Mr. Eliasson also reinforces the importance of a continued awarenesss of the economy, the environment, and ethics.

Synopsis

Although unsure whether there will in fact be a new transatlantic agenda, Ambassador Eliasson repeatedly highlights that it is crucial that it does happen if we are to challenge the ‘huge’ issues of today. Mr. Eliasson notes the current financial climate and its possible effects on the social and political spheres as worrying. He also expresses particular concern at what he calls ‘fortress building,’ which involves protectionism and intolerance. Mr. Eliasson goes on to explain that as it stands, current US-Europe relations are dominated by mutual interest on security and the economy. However, to Mr. Eliasson, this relationship is marred by several issues. Inside the EU, democracy is in a predicament with politicians being accountable nationally while the issues are international. Moreover, Mr. Eliasson feels that the nature of the US and Europe relationship is not representative of the responsibility it should carry by being the most prosperous regions of the world.

How is this transatlantic relationship to move forward? If we are to arrive at what Mr. Eliasson describes as ‘scenario 1,’ which involves long term thinking, regulation, an emphasis on ethics, and a realization of interdependence in an internationally cooperative system, then Mr. Eliasson argues this requires reform. Mr. Eliasson argues it is urgent not to separate politics and economics. In dealing with a financial crisis, we must employ a multilateral approach and learn lessons for the future, particularly not fearing international regulation in a globalized economy. Mr. Eliasson also explains we can avoid this protectionist ‘fortress building’ by embracing ‘multipolarity.’ Mr. Eliasson underscores the importance of tolerance and good governance as central to progress. In addition, Mr. Eliasson reinforces that the problems of today are on such a massive scale that they must be dealt with internationally, as well as regionally and in the private sector.

Dealing with such issues, which involve collective engagement in Afghanistan and a cooperative approach in Africa, is what Mr. Eliasson believes must be added as a ‘third pillar’ to the US and Europe’s relationship. Mr. Eliasson also stresses concrete action on poverty by the US and Europe as central to this effort. In particular, he places emphasis a program for education of women and the establishment of clean water access. Mr. Eliasson believes that such efforts, which would add a pivotal ethical dimension to the transatlantic agenda, would enhance the reputation of democracy across the globe through concrete action.

In engaging with the audience in a question-and-answer session, one of the most emphasized subjects was diplomatic standards for international relations. Mr. Eliasson strongly reinforced the notion that the transatlantic agenda should stand with clear ethical standards. Other issues addressed included Iran's nuclear capabilities, religion, and the role of Russia.

About the Speaker

Ambassador Jan Eliasson was until July 1, 2008 Special Envoy of the United Nations Secretary-General for Darfur. Previously, Jan Eliasson was President of the 60th session of the United Nations General Assembly 2005-2006. He was Sweden’s Ambassador to the United States, 2000-2005. Mr. Eliasson was Minister for Foreign Affairs of Sweden in 2006.

Mr. Eliasson served from 1994 to 2000 as State Secretary for Foreign Affairs, a key position in formulating and implementing Swedish foreign policy. Earlier, 1988-1992, he was Sweden’s Ambassador to the United Nations in New York. During this period, he also served as the Secretary-General’s Personal Representative for Iran/Iraq.

In 1992, Mr. Eliasson was appointed the first United Nations Under-Secretary-General for Humanitarian Affairs and was involved in operations in Somalia, Sudan, Mozambique and the Balkans. He also took initiatives on landmines, conflict prevention and humanitarian action.

1980-1986, Mr. Eliasson was part of the UN mediation missions in the war between Iran and Iraq, headed by former Prime Minister Olof Palme. In 1993-94 Mr. Eliasson served as mediator in the Nagorno Karabakh conflict for the Organization for Security and Co-operation in Europe (OSCE). He has been Visiting Professor at Uppsala University and Göteborg University in Sweden, lecturing on mediation, conflict resolution and UN reform.

During his diplomatic career, Mr. Eliasson has been posted to New York (twice) Paris, Bonn, Washington (twice) and Harare, where he opened the first Swedish Embassy in 1980. He served as Diplomatic Adviser to the Swedish Prime Minister 1982-1983, and as Director General for Political Affairs in the Swedish Ministry for Foreign Affairs 1983-1987.

Mr. Eliasson has authored and co-authored numerous articles and books and is a frequent lecturer on foreign policy and diplomacy. He is recipient of honorary doctorate degrees from i. a. American University, Washington, D.C., Uppsala University and Göteborg University, Sweden. He has been decorated by a number of Governments.

He is the Chairman of the Anna Lindh Memorial Fund of Sweden and is Member of the Advisory Group to the International Committee of the Red Cross (ICRC), Geneva.

Born in Göteborg, Sweden, in 1940, Mr. Eliasson was an exchange student in the United States 1957-1958. He graduated from the Swedish Naval Academy in 1962 and earned a Master’s degree in Economics and Business Administration in 1965.

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Jan Eliasson Former Special Envoy of the United Nations Secretary-General for Darfur; Former President of the United Nations General Assembly; Former Minister for Foreign Affairs for Sweden Speaker
Lectures
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The change of Russian foreign policy under President Putin, the war in Georgia, and the recent disputes over Russian gas exports cannot but affect Moscow's relations with the European Union. Looking back at the history of these relations in the 1960s and 1970s will provide the analyst with valuable insights and with recommendations for future European policy.

Dr. Mueller focuses not only on Russia's current relations with the EU but also the historical buildup to the current state of play. He examines the most recent issues straining the EU-Russia relationship and the dependence of the two powers on each other. Dr. Mueller also leads the audience from World War II to the USSR's eventual recognition of the EEC in 1988. 

Synopsis

Dr. Mueller begins by introducing the current status of both the EU and Russia. As it stands, Russia’s population of 142m people is outweighed significantly by the EU’s 500m. In addition, Dr. Mueller reminds the audience that the EU’s economy is 10 times the size of Russia’s. However, the two are important trade partners. To Russia, the EU represents more than 50% of its trade. To the EU, Russia represents its 3rd largest trading partner. However, the EU’s dependence on Russia for energy is crucial. Dr. Mueller explains how various integration efforts have come to very little. The 1997 Partnership and Cooperation Agreement has not been renewed, and the four common spaces approach the EU took to Russia has borne little fruit. Dr. Mueller reveals how relations are further strained by a variety of current issues such as debates over disarmament, democracy in Russia, and Kosovo.

In order to properly understand this, Dr. Mueller returns to the post-World War II period and the formation of the EEC in 1957. While Western European countries saw the EEC as an opportunity to unite and help each other in economic recovery after the war, the USSR perceived it as an economic base for NATO and an organization standing in the way of the USSR becoming Europe’s supreme power. Dr. Mueller describes how the Soviet Union was forced to change such an attitude because of the success of the EEC in raising wages in member states as well as Eastern European countries’ increasing dependence on it as an export partner. In 1962, Khrushchev took a new approach to all-European integration but his offer of formal relations fell through when de Gaulle vetoed the UK’s membership application into the EEC. Such efforts on the part of the USSR fell through once again in 1972 when the EEC was not interested in dealing with Comecon. Under Gorbachev, the USSR finally recognized the EEC in 1988. Dr. Mueller concludes by saying that while it was obvious that USSR did not really endorse Western European integration, it is surprising that the USSR did not see it as an opportunity to counter U.S. influence during the Cold War.

About the Speaker

Dr Wolfgang Mueller is a research fellow at the Austrian Academy of Sciences and a lecturer in Russian history and politics at the University of Vienna. His book on Soviet policy in Austria, Die sowjetische Besatzung in Österreich 1945-1955 (Böhlau 2005), was awarded the R.G. Plaschka Prize. Dr Mueller was a visiting scholar at the Freeman Spogli Institute's Forum on Contemporary Europe during the 2008-2009 academic year.

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Research Scholar, Austrian Academy of Sciences
Visiting Scholar, Forum on Contemporary Europe
PhD

Dr Wolfgang Mueller, PhD in contemporary history and Russian studies (University of Vienna), is a research associate at the Austrian Academy of Sciences. Former professional affiliations include the Montreal Holocaust Memorial Centre, Canada, and the Institute of East European History, University of Vienna. Wolfgang Mueller was a visiting fellow at the Russian Academy of Sciences and a member of OSCE missions to the CIS area. He teaches Russian history and politics at the University of Vienna.

Research interests: Russian and Soviet foreign policy, international relations, the Cold War, European integration. Current research projects: continuities in Russian foreign policy behavior, the USSR/Russia and European integration; the revolutions of 1989.

Wolfgang Mueller’s book on postwar Soviet policy in Austria Die sowjetische Besatzung in Österreich 1945-1955 (2005) was awarded the Richard G. Plaschka Prize. Further publications include Sovetskaia politika v Avstrii: Dokumenty iz Rossiiskikh arkhivov (with N. Naimark, A. Suppan, G. Bordiugov eds. 2005); The Austrian State Treaty 1955: International Strategy, Legal Relevance, National Identity (with G. Stourzh, A. Suppan eds. 2005); “Stalin and Austria: New Evidence on Soviet Policy in a Secondary Theatre of the Cold War,” Cold War History 6 (2006) 1; Osteuropa vom Weltkrieg zur Wende (with M. Portmann eds. 2007); “Die UdSSR und die europäische Integration,” in From the Common Market to European Union Building (M. Gehler ed. 2009); Peaceful Coexistence or Iron Curtain? Austria, Neutrality, and Eastern Europe 1955-1989 (Forthcoming).

Dr. Mueller was a visiting scholar with the Forum on Contemporary Europe from October 2008 through March 2009.

Wolfgang Mueller Research Scholar, Austrian Academy of Sciences; Visiting Scholar, Forum on Contemporary Europe Speaker
Seminars
Paragraphs

For many centuries, Europe had been a battleground. Finally, after World War II, a number of European leaders came to the conclusion that closer economic and political cooperation of their countries could secure peace in the region. This consensus led to the formation of the European Coal and Steel Community (ECSC) in 1951 with six members, Belgium, West Germany, Luxembourg, France, Italy, and the Netherlands. Since then the integration of European countries has progressed exponentially, engendering formal institutions such as the Council of the European Union, the European Commission, and the European Parliament. Currently, the European Union (EU) comprises already 27 member states. Yet, Europe is a patchwork of many nations with strong national, regional, ethnical, and even religious identities. Thus, in spite of the institutional proliferation of symbols of a united Europe, the strength of a European identity at the individual level and its relations to other identities have been a matter of debate. Especially, since the formation of the EU, coupled with growing immigration to and within Europe (Quillian, 1995; McLaren, 2003) gave also rise to a resurgence of nativist political movements in spite of the efforts to promote a European identity. Identities, their development, and their relation to each other are discussed within different disciplines. Their common denominator is that identities are seen as fluid, influenced by the context and dependent on the previous and expected identities. In this paper we are, thus, focusing on the effect of contextual variables at the country level on the individual affiliation to Europe and the nation and the changes between 1995 and 2003. In a twin paper, we are focusing on the processes at the individual level and the relationship between different layers of identities.

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Markus Hadler
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Sponsored jointly by the Center for Russian, East European and Eurasian Studies and the Forum on Contemporary Europe.

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The Honorable Adrian Vierita Ambassador of Romania to the US Speaker
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