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Putin easily wins another six-year term, firms grip on Russia

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KEMEROVO, Russia (Reuters) – Russian President Vladimir Putin won a landslide re-election victory on Sunday, extending his rule over the world’s largest country for another six years at a time when his ties with the West are on a hostile trajectory.In a widely-expected result, an exit poll by pollster VTsIOM showed Putin, who has already dominated the political landscape for the last 18 years, had won 73.9 percent of the vote. Backed by state TV, the ruling party, and credited with an approval rating around 80 percent, his victory was never in doubt.

None of the seven candidates who ran against him posed a threat, and opposition leader Alexei Navalny was barred from running. Critics alleged that officials had compelled people to come to the polls to ensure that voter boredom at the one-sided contest did not lead to a low turnout.

Russia’s Central Election Commission recognised that there were some irregularities, but were likely to dismiss wider criticism and declare the overall result legitimate.

Putin loyalists said the result was a vindication of his tough stance towards the West.

“I think that in the United States and Britain they’ve understood they cannot influence our elections,” Igor Morozov, a member of the upper house of parliament,” said on state television. “Our citizens understand what sort of situation Russian finds itself in today.”

The immediate question is if and when opponents like Navalny organise protests, citing widespread fraud, and how large and sustained those protests will be. A senior opposition politician has warned they could descend into street clashes if police crack down too hard on demonstrators.

The longer-term question is whether Putin will soften his anti-Western rhetoric now the election is won.

HOSTILE RELATIONS

Putin’s bellicose language reached a crescendo before the election in a state-of-the-nation speech when he unveiled new nuclear weapons, saying they could hit almost any point in the world and evade a U.S.-built missile shield.

At odds with the West over Syria, Ukraine, allegations of Russian election meddling and cyber attacks, and the poisoning in Britain of a former Russian spy and his daughter, relations between Moscow and the West are at a post Cold War low.

Putin, 65, has been in power, either as president or prime minister, since 2000.

Allies laud the former KGB agent as a father-of-the-nation figure who has restored national pride and expanded Moscow’s global clout with interventions in Syria and Ukraine.

Critics accuse him of overseeing a corrupt authoritarian system and of illegally annexing Ukraine’s Crimea in 2014, a move that isolated Russia internationally.

Western sanctions on Russia imposed over Crimea and Moscow’s backing of a pro-Russian separatist uprising in eastern Ukraine remain in place and have damaged the Russian economy, which only rebounded last year after a prolonged downturn.

Britain and Russia are also locked in a diplomatic dispute over the spy poisoning incident, and Washington is eyeing new sanctions on Moscow over allegations it interfered in the 2016 U.S. presidential election, something Russia flatly denies.

Officials and analysts say there is little agreement among Putin’s top policymakers on an economic strategy for his new term.

How long Putin wants to stay in power is uncertain.

The constitution limits the president to two successive terms, obliging him to step down at the end of his new mandate — as he did in 2008 after serving two four-year terms. The presidential term was extended from four to six years, starting in 2012.

Although Putin has six years to consider a possible successor, uncertainty about his long-term future is a potential source of instability in a fractious ruling elite that only he can keep in check.

Kremlin insiders say Putin has selected no heir apparent, and that any names being circulated are the product of speculation, not knowledge of Putin’s thinking.

“The longer he stays in power, the harder it will be to exit,” said Andrei Kolesnikov, senior fellow at the Carnegie Moscow Center, a think tank. “How can he abandon such a complicated system, which is essentially his personal project?”

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China is raising its retirement age, now among the youngest in the world’s major economies

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Starting next year, China will raise its retirement age for workers, which is now among the youngest in the world’s major economies, in an effort to address its shrinking population and aging work force.

The Standing Committee of the National People’s Congress, the country’s legislature, passed the new policy Friday after a sudden announcement earlier in the week that it was reviewing the measure, state broadcaster CCTV announced.

The policy change will be carried out over 15 years, with the retirement age for men raised to 63 years, and for women to 55 or 58 years depending on their jobs. The current retirement age is 60 for men and 50 for women in blue-collar jobs and 55 for women doing white-collar work.

“We have more people coming into the retirement age, and so the pension fund is (facing) high pressure. That’s why I think it’s now time to act seriously,” said Xiujian Peng, a senior research fellow at Victoria University in Australia who studies China’s population and its ties to the economy.

The previous retirement ages were set in the 1950’s, when life expectancy was only around 40 years, Peng said.

The policy will be implemented starting in January, according to the announcement from China’s legislature. The change will take effect progressively based on people’s birthdates.

For example, a man born in January 1971 could retire at the age of 61 years and 7 months in August 2032, according to a chart released along with the policy. A man born in May 1971 could retire at the age of 61 years and 8 months in January 2033.

Demographic pressures made the move long overdue, experts say. By the end of 2023, China counted nearly 300 million people over the age of 60. By 2035, that figure is projected to be 400 million, larger than the population of the U.S. The Chinese Academy of Social Sciences had previously projected that the public pension fund will run out of money by that year.

Pressure on social benefits such as pensions and social security is hardly a China-specific problem. The U.S. also faces the issue as analysis shows that currently, the Social Security fund won’t be able to pay out full benefits to people by 2033.

“This is happening everywhere,” said Yanzhong Huang, senior fellow for global health at the Council on Foreign Relations. “But in China with its large elderly population, the challenge is much larger.”

That is on top of fewer births, as younger people opt out of having children, citing high costs. In 2022, China’s National Bureau of Statistics reported that for the first time the country had 850,000 fewer people at the end of the year than the previous year , a turning point from population growth to decline. In 2023, the population shrank further, by 2 million people.

What that means is that the burden of funding elderly people’s pensions will be divided among a smaller group of younger workers, as pension payments are largely funded by deductions from people who are currently working.

Researchers measure that pressure by looking at a number called the dependency ratio, which counts the number of people over the age of 65 compared to the number of workers under 65. That number was 21.8% in 2022, according to government statistics, meaning that roughly five workers would support one retiree. The percentage is expected to rise, meaning fewer workers will be shouldering the burden of one retiree.

The necessary course correction will cause short-term pain, experts say, coming at a time of already high youth unemployment and a soft economy.

A 52-year-old Beijing resident, who gave his family name as Lu and will now retire at age 61 instead of 60, was positive about the change. “I view this as a good thing, because our society’s getting older, and in developed countries, the retirement age is higher,” he said.

Li Bin, 35, who works in the event planning industry, said she was a bit sad.

“It’s three years less of play time. I had originally planned to travel around after retirement,” she said. But she said it was better than expected because the retirement age was only raised three years for women in white-collar jobs.

Some of the comments on social media when the policy review was announced earlier in the week reflected anxiety.

But of the 13,000 comments on the Xinhua news post announcing the news, only a few dozen were visible, suggesting that many others had been censored.

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Russia warns NATO of ‘direct war’ over Ukraine

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Moscow’s envoy to the UN has reiterated where the Kremlin’s red line is

Granting Kiev permission to use Western-supplied long-range weapons would constitute direct involvement in the Ukraine conflict by NATO, Russia’s envoy to the UN, Vassily Nebenzia, has said.

Moscow will treat any such attack as coming from the US and its allies directly, Russian President Vladimir Putin said on Thursday, explaining that long-range weapons rely on Western intelligence and targeting solutions, neither of which Ukraine is capable of.

NATO countries would “start an open war” with Russia if they allow Ukraine to use long-range weapons, Nebenzia told the UN Security Council on Friday.

“If such a decision is made, that means NATO countries are starting an open war against Russia,” Moscow’s envoy said. “In that case, we will obviously be forced to make certain decisions, with all the attendant consequences for Western aggressors.”

Putin issues new warning to NATO

“Our Western colleagues will not be able to dodge responsibility and blame Kiev for everything,” Nebenzia added. “Only NATO troops can program the flight solutions for those missile systems. Ukraine doesn’t have that capability. This is not about allowing Kiev to strike Russia with long-range weapons, but about the West making the targeting decisions.”

Russia considers it irrelevant that Ukrainian nationalists would technically be the ones pulling the trigger, Nebenzia explained. “NATO would become directly involved in military action against a nuclear power. I don’t think I have to explain what consequences that would have,” he said.

The US and its allies placed some restrictions on the use of their weapons, so they could claim not to be directly involved in the conflict with Russia, while arming Ukraine to the tune of $200 billion.

Multiple Western outlets have reported that the limitations might be lifted this week, as US Secretary of State Antony Blinken and British Foreign Secretary David Lammy visited Kiev. Russia has repeatedly warned the West against such a course of action.

 

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China makes its move in Africa. Should the West be worried?

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Beijing maintains a conservative economic agenda in its relations with the continent, while finding it increasingly difficult to avoid a political confrontation with the West

The ninth forum on China-Africa Cooperation (FOCAC) and the FOCAC summit held in Beijing on September 4-6 marked a significant phase in Africa’s relations with its global partners in the post-Covid era. China is the last major partner to hold a summit with African nations following the end of the pandemic; Africa summits were held by the EU and the US in 2022, and by Russia in 2023. The pandemic, coupled with rising global tensions, macroeconomic shifts, and a series of crises, underlined Africa’s growing role in the global economy and politics – something that China, which has undergone major changes (both internal and external) as a result of the pandemic, is well aware of.

It is clear that the relationship between China and Africa is entering a new phase. China is no longer just a preferential economic partner for Africa, as it had been in the first two decades of the 21st century. It has become a key political and military ally for many African countries. This is evident from China’s increasing role in training African civil servants and sharing expertise with them, as well as from several initiatives announced at the summit, including military-technical cooperation: officer training programs, mine clearing efforts, and over $100 million which China will provide to support the armed forces of African nations.

In the political arena, however, Beijing is proceeding very cautiously and the above-mentioned initiatives should be seen as the first tentative attempts rather than a systematic strategy.

While China strives to avoid political confrontation with the West in Africa and even closely cooperates with it on certain issues, it is becoming increasingly difficult to do so. Washington is determined to pursue a policy of confrontation with Beijing in Africa – this is evident both from US rhetoric and its strategic documents.

Dirty tactics: How the US tries to break China’s soft power in Africa

A “divorce” between China and the West is almost inevitable. This means that Chinese companies may lose contracts with Western corporations and won’t have access to transportation and logistics infrastructure. Consequently, China will need to develop its own comprehensive approach to Africa, either independently or in collaboration with other global power centers.

An important sign of the growing confrontation between the US and China in Africa was the signing of a trilateral memorandum of understanding between China, Tanzania, and Zambia regarding the reconstruction of the Tanzania-Zambia Railway (TAZARA), which was originally built by China in the 1970s. If it is expanded, electrified, and modernized, TAZARA has the potential to become a viable alternative to one of the key US investment projects in the region: the Lobito Corridor, which aims to enhance logistics infrastructure for exporting minerals (copper and cobalt) from the Democratic Republic of the Congo and Zambia by modernizing the railway from the DR Congo to the Angolan port of Lobito.

In inland regions such as Eastern Congo, transportation infrastructure plays a crucial role in the process of mineral extraction. Considering the region’s shortage of rail and road networks, even a single non-electrified railway line leading to a port in the Atlantic or Indian Ocean can significantly boost the operation of the mining sector and permanently tie the extraction and processing regions to specific markets.

It appears that China’s initiative holds greater promise compared to the US one, particularly because Chinese companies control major mines both in the Democratic Republic of the Congo and Zambia. This gives them a clear advantage in working with Chinese operators and equipment, facilitating the export of minerals through East African ports. Overall, this indicates that East Africa will maintain its role as the economic leader on the continent and one of the most integrated and rapidly developing regions for imports.

A former colonial European power returns to Africa. What is it after now?

The highlight of the summit was China’s pledge to provide $50 billion to African countries over the next three years (by 2027). This figure echoes the $55 billion commitment to China made by the US (for 3 years) at the 2022 US-Africa Summit and the $170 billion that the EU promised to provide over seven years back in 2021. Consequently, leading global players allocate approximately $15-20 billion annually to Africa.

In recent years, there has been noticeable growth in such promises. Nearly every nation is eager to promise Africa something – for example, Italy has pledged $1 billion annually. However, these large packages of so-called “financial aid” often have little in common with actual assistance, since they are typically commercial loans or corporate investments. Moreover, a significant portion of these funds is spent in the donor countries (e.g. on the procurement and production of goods), which means that they contribute to the economic growth of African nations in a minimal way.

As for China, it will provide about $11 billion in genuine aid. This is a substantial amount which will be used for developing healthcare and agriculture in Africa. Another $30 billion will come in the form of loans (roughly $10 billion per year) and a further $10 billion as investments.

The overall financial framework allows us to make certain conclusions, though it’s important to note that the methodology for calculating these figures is unclear, and the line between loans, humanitarian aid, and investments remains blurred. In terms of investments (averaging around $3 billion per year), Beijing plans to maintain its previous levels of activity – in recent years, China’s foreign direct investments (FDI) have ranged from $2 billion to $5 billion annually. Financial and humanitarian aid could nearly double (from the current $1.5 billion-$2 billion per year) while lending is expected to return to pre-pandemic levels (which would still be below the peak years of 2012-2018).

Can Africa seize control of its own energy?

China’s economic plan for Africa seems to be quite conservative. It’s no surprise that debt issues took center stage during the summit. During the Covid-19 pandemic, macroeconomic stability in African countries deteriorated, which led to challenges in debt repayments and forced Africa to initiate debt restructuring processes assisted by the IMF and the G20. Starting in 2020, a combination of internal and external factors led China to significantly cut its lending to African countries – from about $10-15 billion down to $2-3 billion. This reduction in funding has triggered economic reforms in several African countries (e.g. Ghana, Kenya, and Nigeria), which have shifted toward stricter tax and monetary policies. While promises to increase lending may seem like good news for African nations, it’s likely that much of this funding will go toward interest payments on existing obligations and debt restructuring, since China wants to ensure that its loans are repaid.

Despite China’s cautious approach to Africa, its interaction with the continent will develop as a result of external and internal changes affecting both Africa and China. Africa will gradually become more industrialized and will reduce imports while the demand for investments and local production will increase. China will face demographic challenges, and its workforce will decrease. This may encourage bilateral cooperation as some production facilities may move from China to Africa. This will most likely concern East African countries such as Ethiopia and Tanzania, considering China’s current investments in their energy and transportation infrastructure. Additionally, with Africa’s population on the rise and China’s population declining, Beijing is expected to attract more African migrant workers to help address labor shortages.

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