What We're Watching Today is 838 words and a 5-minute read.
Global
At BRICS summit, Russia presses forward on alternatives to US dollar
The main agenda item of the summit was a Russian proposal to circumvent the US dollar by setting up a new payment messaging system known as "BRICS Bridge."
Our Take: Russia and China have been working towards creating an alternative to Swift, the secure messaging system for cross-border payments, along with a new BRICS currency. However, member countries disagree over the details, with discussions bogged down with no real progress at the summit. Should the "Brics Bridge" proposal move forward, it would introduce new risks of fragmentation in the global payment system.
Read More: Financial Times [paywall], The Economist [paywall]
Europe
France seeks to narrow deficit with austerity budget to jumpstart growth
French Prime Minister Michel Barnier this month unveiled a fiscal package that aims to narrow its deficit from 6.1 percent this year to 5 percent by the end of 2025.
Our Take: Barnier's budget proposal will be unpopular, and his government lacks a parliamentary majority needed to pass the measure. The government reportedly is considering a parliamentary move that would allow the budget to past under Article 49.3, which would avoid a parliament vote. However, Barnier risks a no-confidence vote if he cannot convince the National Rally that austerity now will unlock growth and jobs in the future.
Read More: Financial Times [paywall], France24, France 24, Politico
Middle East
Israel agrees to restart ceasefire negotiations
Israel announced that the head of its Mossad intelligence agency will travel to Doha this weekend to join renewed ceasefire talks. It is unclear if Hamas will directly participate.
Our Take: The announcement is a win for the US, as Secretary of State Blinken is in Qatar currently urging regional actors to restart ceasefire discussions and curb the humanitarian crisis in Gaza. However, the US military chief said concurrently that a "sharp" end to the conflict with Hamas was possible, signaling that Israel currently has no intentions of letting up its military campaign against Hamas in Gaza.
Read More: Reuters, Reuters, Foreign Affairs [paywall]
Asia-Pacific
South Korea raises possibility of sending Ukraine with weapons
South Korean President Yoon Suk Yeol this week vowed to respond to North Korea's deployment of troops to Russia, including by potentially sending arms to Ukraine.
Our Take: In June, South Korea publicly reconsidered its ban on lethal weapon exports to Ukraine following Russian President Putin's visit to North Korea. The recent revelation that North Korean troops are fighting for Russia places further pressure on Seoul to intervene. Despite tough rhetoric though, Seoul is cautious, recognizing that North Korea's involvement may not impact the Korean Peninsula's security, and is likely to reassess intelligence and consult allies before deciding on weapon exports to Ukraine.
Read More: New York Times [paywall], The Diplomat [paywall]
Disruptive Technology
White House presses US government agencies to increase AI adoption
The Biden administration outlined plans this week directing federal agencies to develop and utilize artificial intelligence to advance national security, while mitigating its risks.
Our Take: The directive, part of a landmark national security memorandum released Thursday, signifies the Biden administration's efforts to control technology competition from US adversaries. While the military has long been an early adopter of some forms of AI, intelligence analysts still manually synthesize data, which AI could streamline. Despite the need for greater efficiency, the directive also emphasizes AI safety, requiring its use to "align with democratic values" and mandating agencies to monitor risks to privacy, freedom from discrimination, and human rights.
Read More: Associated Press, The White House (.gov), The White House (.gov)
Climate Change
Arctic seed vault gets deposit of 30,000 new samples to safeguard food security
An Arctic seed vault on Norway's Spitsbergen island is putting under ice the largest numbers of seed samples this year, reflecting fear about the threat of conflict and climate change to food security.
Our Take: Founded in 2008, the doomsday vault stores 1.3 million seed samples from almost every country around the world, designed as a genebank to secure future food supply. Climate change is mobilizing international efforts to protect biodiversity, including plants, animals, bacteria and fungi. This week, COP16, the UN biodiversity conference, convened in Columbia, hosting 15,000 people, dozens of heads of state and over 1,000 journalists. This year's agenda will focus on implementing the 2022 Kunming-Montreal Global Biodiversity Framework and aligning national plans – and getting countries to submit those plans – with the framework.
Read More: Reuters, United Nations
ESG
Parties discuss funding at biodiversity summit in Colombia
Talks began this week at the 16th Conference of the Parties to the UN Convention on Biological Diversity, or COP16, in Cali, Colombia.
Our Take: COP16 is a key, if under-the-radar, event that governs and directs global biodiversity efforts. Key agenda items include fixing a $700 billion shortfall in conservation funds, tracking biodiversity loss, establishing rules for ownership and profit from DNA from plants and animals that's found in online databases, and the status of the Convention on Biological Diversity.
Read More: Vox, Wall Street Journal [paywall]
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