Here is a summary of the most important events that unfolded last month, and which may affect economic, financial, and geopolitical issues in the months ahead: 

North America

• The US completed its military withdrawal from Afghanistan, formally ending the 20-year war and leaving the country in the control of the Taliban. US President Joe Biden called the evacuation an “extraordinary success” as the country met its August 31^st deadline. In a surprisingly quick takeover, Afghanistan’s government fell to the Taliban in the beginning of August. It shocked the world and triggered absolute chaos at Kabul’s airport as various embassy staff, military personnel, and Afghan citizens tried to evacuate the country. During the evacuation, a complex attack outside of Kabul’s airport killed more than a hundred people. Since the last of the US troops have left, Kabul’s airport has remained closed. Diplomatic talks are now underway to facilitate the reopening of the airport so that Afghans who wish to leave can do so. Several countries, including the United Kingdom, India, and the US are offering Afghans a safe haven. 
• Former President Donald Trump’s “Remain in Mexico” program, formally called Migrant Protection Protocols (MPP), has been reinstated after a US Supreme Court ruling. The Biden administration officially ended the program in June, but it was decided by the courts that the administration did not provide enough reason or evidence to justify changing the policy. The controversial program required many asylum seekers to wait in Mexico while their cases were being decided.
•  The US announced it will offer Covid-19 vaccine booster shots to fully vaccinated adults beginning September 20^th. The decision comes as new data reveals vaccines’ protection against Covid-19 infections is declining as new variants emerge. The move has sparked criticism from the World Health Organization and other health experts who have warned wealthy countries against offering boosters when many parts of the world are severely under-vaccinated.
•  While in China to discuss climate action, Chinese Foreign Minister Wang Yi warned US Special Presidential Envoy for Climate John Kerry that poor relations could hinder cooperation on climate change and that it “cannot be separated” from the broader geopolitical environment. Kerry has urged China to move up its peak emissions targets and has sought out areas for collaboration between the US and China. However, the tariffs and sanctions that remain in place from the Trump administration continue to be a sticking point in negotiations.

Europe

• Ukrainian President Volodymyr Zelensky made several moves this month to bolster support for Ukraine. Kyiv hosted an international summit, called the Crimean Platform, to call for the reclamation of Russia-annexed Crimea. Representatives from more than forty countries attended the summit where Zelensky highlighted the lack of global attention on the ongoing situation in Crimea. Also last month, Zelensky met with German Chancellor Angela Merkel to discuss the Nord Stream 2 gas pipeline from Russia to Germany which Ukraine opposes. At the meeting, Merkel assured Zelensky that Germany could impose sanctions on Moscow if Russia uses gas as a weapon against Ukraine. Finally, Zelensky traveled to the White House to meet with US President Biden. While visiting, Biden reaffirmed America’s security support for Ukraine.
• Germany is gearing up to hold federal elections on September 26^th. According to weekly polls, support for Chancellor Angela Merkel’s party, the Christian Democratic Union (CDU), has waned in recent weeks while the Social Democratic Party (SPD) has gained momentum. Armin Laschet, the chancellor candidate selected by the CDU to succeed Merkel, has been a rather unpopular candidate while the SPD’s chancellor candidate, Olaf Scholz, has surged in the polls. In just a few weeks, Merkel’s 16-year tenure will come to an end. 
• Global tensions with Belarus heated up in August. Towards the beginning of the month, the International Olympic Committee stripped two Belarusian coaches of their accreditation for their alleged attempt to force sprinter Krystsina Tsimanouskaya to fly home against her will. Shortly after, the US, Canada, and the United Kingdom imposed new sanctions on Belarus for the human rights violations that have occurred since last year’s election led to widespread protests and a crackdown by President Alexander Lukashenko’s government. Tensions have also heightened between Belarus and the European Union (EU) over Belarus allegedly allowing illegal border crossings of migrants. EU representatives have called the border crossings “a direct attack aimed at destabilizing and pressuring the EU.”

Asia, Eurasia, and the Pacific 

• Japanese Prime Minister Yoshihide Suga has resigned from his position after just one year in office. Suga’s public approval rating fell over his handling of the Covid-19 pandemic. Particularly controversial was his decision to move forward with hosting the Olympic Games. Despite Suga’s resignation, the ruling party is widely expected to win elections later this fall.
• Despite threats from China, Japan affirmed its support of Taiwan last month by holding security talks with Taiwanese leaders. During the security talks, Japanese leaders said they would support Taiwan’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and would collaborate to bolster the semiconductor chip supply chain. Chinese Foreign Ministry spokesman Zhao Lijian criticized the talks between Tokyo and Taipei and urged Japan to “stop interfering in China’s internal affairs and refrain from sending any wrong signals to ‘Taiwan independence’ forces.”
• China approved a strict data privacy law that requires companies to get user consent to collect personal data. The bill takes aim primarily at online fraud, information theft, and data collection by domestic tech companies. The privacy law is a major step in the government’s regulatory crackdown of its economy, and particularly of its tech sector.
• Malaysian Prime Minister Muhyiddin Yassin has resigned after losing his parliamentary majority. He will stay on as interim prime minister until a new leader is selected, though there is no clear successor in sight. The king, who has the ability to appoint a new prime minister, said holding elections anytime soon “is not the best option” for the country as it has spiraled into political turmoil.

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