Insights

Concerns about the UK's weak productivity growth since 2008 have led to calls for AI and technology investment to boost output per hour. However, productivity gains in labour-intensive sectors like care, education, and healthcare are limited due to the human interaction and professional judgment required. These essential services face inherent constraints on speeding up work without harming quality, reflecting Baumol’s cost disease. The UK economy's focus on service sectors where productivity is hard to measure suggests the real issue is not output per worker but how work is organised and valued. Increasing efficiency alone may produce fragile economic gains without improving living standards or social wellbeing. The future of work requires rethinking goals beyond mere productivity statistics.
United Kingdom | Financial services, Education
Yes, AI could boost productivity, but work is about more than maximising output
Economic growth can occur without increasing carbon emissions through the process of decoupling, which separates GDP growth from greenhouse gas emissions. Many economies, including the UK, have already demonstrated this by reducing emissions significantly while expanding their economies. Achieving net zero requires absolute decoupling—reducing emissions while the economy grows—through energy sector transformation, enhanced energy efficiency, and integrated technological innovations like clean hydrogen and carbon capture. Overcoming challenges in high-emission industrial sectors and avoiding rebound effects demands systemic approaches. Sustained improvements in energy intensity and policy support are crucial to making decoupling a viable strategy for the green transition.
Denmark, Georgia, Germany, Ghana, United Kingdom | Financial services
Why ‘decoupling’ energy emissions from economic growth underpins the green transition
Emmanuel Macron's March 2026 speech at Île Longue outlines a shift in French nuclear deterrence policy amid heightened geopolitical tensions, notably Russia's aggressiveness and doubts about U.S. guarantees. France plans enhanced UK cooperation, potential temporary deployment of strategic forces on European soil, and an increased nuclear arsenal to bolster a concept of "forward deterrence." This approach acknowledges conventional military vulnerabilities exposed by the Ukraine war and seeks deeper dialogue with partners including Germany, Belgium, and Poland. While emphasizing French autonomy in nuclear decisions, Macron's proposals have received positive European responses, signaling a notable evolution in France's nuclear posture and European defense collaboration.
The New French Forward Nuclear Deterrence, the Île Longue Roadmap
Security Sector Reform (SSR) in post-war settings addresses the legacy of unlawful invasions and pre-existing structural weaknesses by promoting an effective, accountable security sector that supports peace, justice, and democratic governance. SSR transforms security actors through clarified roles and functions, internal institutional reforms, and restored governance. Influenced by political and legal contexts, SSR must navigate external conditions and challenges, prioritizing inclusive, context-specific approaches that confront past violence. Grounded in international legal frameworks, SSR aids post-war states in building resilient institutions for sustainable peace and accountable security delivery.
Post-war security sector reform
Jürgen Habermas championed European integration, advocating for a supranational democracy where member states transfer sovereign powers to a common European government. He recognized this as a profound shift away from traditional national sovereignty, proposing that nations maintain their identity mainly as implementers within this framework. Habermas dismissed the alternative Kantian model of a voluntary association of sovereign states as transitional and inadequate. However, Kant argued such an association is a durable, rational substitute for an international state, as true sovereign states cannot logically will to abandon their sovereignty. Thus, while a supranational European state is conceivable, it cannot arise by the simple collective will of nation-states, raising fundamental challenges for realizing Habermas’s vision.
Jürgen Habermas and the case for a supranational democracy in Europe
Artificial intelligence (AI) is often misunderstood as a swiftly transformative, unprecedented technology, yet it shares much with earlier computing eras marked by cycles of hype and disappointment. Current advances stem from greater data, processing power, and integration with other digital technologies rather than fundamentally new breakthroughs. AI functions more as a cultural meme reflecting hopes and fears about technology than as a standalone driver of change. Historical patterns reveal recurring anxieties about automation, job loss, and regulatory gaps, underscoring that fears surrounding AI are not new. The commonly referenced Gartner Hype Cycle oversimplifies technology adoption, as few technologies follow its neat progression, and many mature unseen over long periods. Overall, overestimating AI’s immediacy and impact fuels misplaced fear and misunderstanding.
Education
AI is a misleading tale of hope and fear
Corporate divestitures often lead to a significant drop—about 10%—in women’s representation on boards, undoing progress made toward gender parity. This decline occurs because, amid uncertainty, companies tend to favor risk-averse board selections, prioritizing experienced candidates from traditionally male-dominated networks. Ownership structure also influences this trend: firms with dominant shareholders show greater resistance to maintaining diversity during restructuring. To preserve board diversity, companies should prioritize transparent recruitment, engage major investors on the long-term benefits of diverse governance, and reconsider narrow definitions of "safe" director profiles to include diverse talent.
Board Diversity After Restructuring: Why Visibility and Investors Matter
The CHIDIPLO Paris Dialogue, held in February 2026, convened over forty semiconductor industry leaders, experts, and policymakers from Europe, the US, Japan, South Korea, and India to evaluate industrial and innovation policies in the semiconductor sector. Organized by the Institut Montaigne and part of the CHIPDIPLO Project, this initiative seeks to shape European foreign policy on semiconductors, enhance risk management, foster coordination among EU member states, and build international partnerships. The project is a collaborative, EU co-funded effort involving multiple research and policy institutions across Europe.
ICT
CHIDIPLO Paris Dialogue:
China is advancing as a global leader in the low-carbon economy by stepping into the leadership void left by the US's retreat from green energy initiatives. Dominating global supply chains for solar panels, wind turbines, and electric vehicles, China aims to set international standards for carbon emissions monitoring, reporting, and verification. It seeks to simplify compliance with stringent EU carbon regulations by providing standardized tools and digital traceability systems, thus influencing global market access and environmental standards. Despite domestic challenges, China’s strategic investments and multilateral engagement position it to shape the rules and financing of the green economy, enhancing its economic growth and geopolitical influence.
Taiwan, China | Financial services
China is ready to drive leadership of a low‑carbon world – by making the international rules
Tensions have resurfaced in the UK-US "special relationship" as President Trump publicly criticized UK Prime Minister Keir Starmer and questioned Britain's status as America's top ally. Starmer, despite private disdain for Trump's administration, continues to engage carefully with the US, aiming to maintain Britain's influence amid growing dependence post-Brexit. The Trump administration's unpredictable policies, anti-globalist stance, and preference for loyalty over expertise challenge traditional cooperation and threaten the liberal international order cherished by both nations. Starmer’s strategy involves cautious alignment with the US while diversifying alliances with Europe, China, and other powers, awaiting a post-Trump presidency to restore smoother relations.
United Kingdom | Financial services
What to expect next from the ‘special relationship’ as Trump again lashes out at Keir Starmer
The US government under Trump reversed key climate policies, declaring greenhouse gases no longer a health risk and rolling back clean air standards. This retreat weakens American climate leadership and raises questions about who might fill the void, with China positioned as a partial replacement due to its dominance in renewable energy technologies and electric vehicles. However, China’s climate commitments remain insufficient for limiting warming below 1.5°C. Global enthusiasm for climate action is waning amid geopolitical tensions and economic concerns, despite renewable energy’s growing cost advantage and ongoing public health impacts from pollution. Ultimately, persistent public demand for clean air and energy suggests climate change will remain urgent beyond this political setback.
Will the world fill the climate leadership void left by the US?
India's semiconductor industrial policy, launched in 2021 with the India Semiconductor Mission, has rapidly expanded from cutting-edge nodes to include mature nodes and packaging. The strategy features substantial fiscal support, covering up to 60–70% of capital expenditure through central and state incentives, aiming to address global shortages, boost export-led manufacturing, create jobs, and position India as a key "China +1" manufacturing hub. Key transformative projects include the Tata–PSMC 28nm fab in Gujarat, a landmark $11 billion investment, and several advanced packaging and compound semiconductor initiatives, including a US–India partnership for defense applications. Sustained political commitment and trusted partnerships remain critical for ongoing success.
India | ICT
Three Questions to Shyam Krishnakumar - India's Rise in Semiconductors
Fiji’s parliaments remain overwhelmingly male-dominated, with women comprising under 10% of parliamentarians since 2022, down from nearly 20% in 2018. Despite international efforts and gender-sensitive policies, deep-seated cultural narratives resist women’s full political inclusion. Resistance is framed as protecting Fijian traditions and religion, portraying gender equality as conflicting with culture or as reverse discrimination against men. Misogyny, especially online harassment, further deters women’s participation. Sustainable change requires donors to understand and address these intangible, culturally embedded norms by working closely with local advocates committed to gender equality.
Norms and narratives: uncovering men’s hidden resistance to gender-sensitive parliaments in Fiji | Align Platform
Pakistan’s devastating floods highlight the deep intersections between climate crisis and gender inequality. Women and girls, especially in rural areas, face disproportionate vulnerabilities due to entrenched gender norms, limited access to education, and exclusion from disaster preparedness. Displacement disrupts education and increases risks like child marriage and gender-based violence. Emergency responses often overlook women’s safety and needs, exacerbating their plight. Addressing climate justice effectively requires confronting these gendered power structures and ensuring inclusive, gender-responsive solutions that empower women rather than reinforce harmful norms.
Nigeria, Pakistan
What do we mean by ‘there’s no climate justice without gender justice’? | Align Platform
AI is gradually transforming British employment through restructuring rather than mass job losses, with firms gaining efficiency and cost savings. The adoption concentrates on routine, entry-level administrative and clerical roles, risking the erosion of junior positions essential for skill development and leadership pipelines. Although AI creates new jobs requiring advanced skills, many displaced workers may face challenges transitioning without adequate reskilling. This uneven impact exacerbates labor market inequalities, particularly affecting younger, lower-skilled, and part-time workers. Corporate governance plays a critical role in managing AI's long-term effects on workforce composition, organizational resilience, and social responsibility.
Education
What impact is AI having on British firms and the jobs they offer?
Greenland, historically portrayed through expedition and ethnographic lenses shaped by colonial perspectives, is gaining more nuanced representation in film. Recent Danish-Greenlandic collaborations, such as the series Borgen: Power & Glory and Isabella Eklöf’s film Kalak, highlight Greenlandic politics and social issues while centering Greenlandic voices both on and off screen. These works challenge colonial stereotypes by focusing on complex contemporary realities, incorporating local agency, language, and cultural specificity, and acknowledging Denmark’s historical responsibilities, thereby fostering a more self-critical and authentic portrayal of Greenlandic society.
Antarctica, Denmark, Iceland
How Greenland became visible on screen – and why who films it matters
The Strait of Hormuz, critical for 20% of global oil flow, faces threats from Iranian sea mines, fast attack craft, missiles, and drones, creating a complex multi-domain security challenge. The UK is considering deploying interceptor drones and autonomous minehunters like the Sweep system to counter these threats. Iranian mines range from simple contact types to advanced seabed-fired rockets, while drones like the Shahed-136 overwhelm traditional defenses. Western navies are ill-equipped for mine warfare due to long-term deprioritization and limited specialized vessels. Interceptor drones offer a cost-effective defense against Iranian drones, but mine clearance remains slow and risky, complicating efforts to secure shipping routes without risking naval forces.
Can British drones help secure the strait of Hormuz for international shipping?
Closing the gap between leading and lagging regions requires locally driven, place-based policies tailored to each area's unique challenges and growth potential rather than centralized blueprints. Lagging regions differ widely—in population density, economic integration, and barriers—necessitating data-driven identification and differentiated strategies targeting core investments, infrastructure, institutional strengthening, and private sector engagement. Success hinges on devolved governance, community involvement, long-term accountability, and clear benchmarks for reducing disparities. Development partners play a crucial support role by helping governments scale effective interventions, ultimately fostering shared national prosperity through context-specific, sustainable development.
Bangladesh, Chad, Chile, Georgia, Germany, Ghana, Indonesia, Jordan, Kenya, Lesotho, Pakistan, Paraguay, Poland, Republic of Korea, Russian Federation, Rwanda, Senegal, South Africa, Tanzania, United Kingdom | Financial services, Health, Education
Closing the Gap Between Leading and Lagging Regions Calls for Sharper, Locally Driven Policies
Increased financial transparency has mixed effects depending on a firm's R&D strength. For companies with weak R&D, frequent reporting disciplines inefficient spending, helping eliminate unproductive projects and improving long-term value. However, for firms with strong R&D capabilities, high transparency can discourage radical innovation by pressuring managers to focus on safer, short-term gains to avoid negative market reactions. This narrowing of innovation scope can reduce these firms’ long-term valuation. To sustain breakthrough innovation, leading firms must shield their R&D teams from short-term pressures and provide clear communication about the long-term nature of their projects.
Financial services
Does more disclosure always create value?
Human development in Asia and the Pacific faces a growing gap between rapid technological advancement and human capability, with learning deficits, health inequalities, and delayed skill adaptation threatening inclusive growth. The region's diverse demographics, climate risks, and swift digital uptake amplify these challenges, making human capital a shared regional public good requiring coordinated standards and capacity building. To thrive, the region must transform education towards cognitive and adaptive skills, embed workforce transitions in labor institutions, and foster regional cooperation in skill interoperability, innovation networks, and climate resilience training. Success depends on integrating national capability formation with institutional and regional collaboration, positioning human capital as strategic infrastructure critical for economic sovereignty and sustainable development.
Angola, Azerbaijan, Bangladesh, Botswana, Brunei Darussalam, Burkina Faso, Cambodia, Cape Verde, Chad, Chile, Ethiopia, Ghana, Guinea, Haiti, Honduras, Indonesia, Japan, Kenya, Malawi, Malaysia, Mali, Mongolia, Mozambique, Nigeria, Paraguay, Peru, Philippines, Republic of Korea, Russian Federation, Rwanda, Senegal, Singapore, South Africa, Tanzania, Thailand, Uganda, Ukraine, United Arab Emirates | ICT, Financial services, Education, Health
Transforming Human Capital and Capability in Asia and the Pacific

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