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  • Author: Richard N. Rosecrance
  • Publication Date: 09-2009
  • Content Type: Policy Brief
  • Institution: Belfer Center for Science and International Affairs, Harvard University
  • Abstract: A higher Renminbi will have two advantages: for the United States, it will help to equilibrate the past trade imbalance; for China, it will stimulate consumption (and enhance imports). It will therefore help China switch from a purely exporting strategy to one that maintains domestic growth through internal consumption. The goods that were to be sent abroad can now be consumed by an increasingly middle class nation at home. These steps will bring China and the United States closer economically and increase international stability. However, unless the military-security relations of the two countries improve, this will not be a sufficient remedy for the two nations' long term problems.
  • Topic: International Political Economy, International Trade and Finance, Bilateral Relations
  • Political Geography: United States, China, Germany
  • Author: Fergus Hanson
  • Publication Date: 07-2009
  • Content Type: Policy Brief
  • Institution: Lowy Institute for International Policy
  • Abstract: What is the problem? China lacks a coherent strategy for its aid program in the Pacific – beyond checking and reversing diplomatic recognition of Taiwan – and tends to pursue short-term objectives. China pledges aid in an erratic manner, funds projects without regard to recurring costs, and the secrecy surrounding its program obstructs development outcomes, and breeds suspicion. This short-termism has likely led China to miscalculate by over-engaging the dictatorship in Fiji. This approach is a legacy of its long-running battle with Taiwan.
  • Topic: Conflict Resolution, Diplomacy, Foreign Aid
  • Political Geography: China, Asia, Australia/Pacific
  • Author: Stephen Grenville
  • Publication Date: 09-2009
  • Content Type: Policy Brief
  • Institution: Lowy Institute for International Policy
  • Abstract: International external imbalances have been blamed for playing a central role in the Global Financial Crisis. China's large external surplus usually figures prominently in these explanations. While a more balanced account of the causes of the crisis would give only a modest role to external imbalances there seems little doubt that some adjustment of these imbalances over the next few years is both inevitable and desirable, not because external imbalances in themselves are inherently undesirable, but because some of the specific components of today's current balances are unsustainable. Markets could bring about these necessary adjustments over time. History, however, tells us that market-driven adjustments are often accompanied by exchange-rate overshooting and trade- threatening protectionist responses.
  • Topic: Economics, International Trade and Finance, Financial Crisis
  • Political Geography: China
  • Author: Ashley J. Tellis
  • Publication Date: 10-2009
  • Content Type: Policy Brief
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The United States and India share the fundamental objective of preserving an Asia that is peaceful, prosperous, and free. Without security, India's meteoric rise cannot continue. While New Delhi can manage Pakistan, its longtime regional adversary, it will have more difficulty confronting the challenges posed by a rising China. As a result, India will continue to depend on the United States to preserve order in Asia until it can protect its own interests there.
  • Topic: Ethnic Conflict, Terrorism, Power Politics, Bilateral Relations
  • Political Geography: Pakistan, United States, China, India, Asia
  • Author: Michael Pettis
  • Publication Date: 11-2009
  • Content Type: Policy Brief
  • Institution: Carnegie Endowment for International Peace
  • Abstract: In September, the Obama administration imposed tariffs on Chinese tires. In October, the U.S. Department of Commerce announced it would launch an investigation into imports of seamless steel pipes from China. That same month, the U.S. Chamber of Commerce and the U.S.–China Business Council, two groups that in the past have defended Chinese policies, testified to the Office of the U.S. Trade Representative that Chinese contracting rules, technical standards, and licensing requirements were protectionist.
  • Topic: Economics, Globalization, Foreign Direct Investment, Financial Crisis
  • Political Geography: China, Middle East, Asia
  • Author: Matthew Bunn
  • Publication Date: 11-2009
  • Content Type: Policy Brief
  • Institution: Belfer Center for Science and International Affairs, Harvard University
  • Abstract: The United States and the other members of the P5+1 are struggling to launch the first in-depth negotiations with Iran over its nuclear program in which the United States has participated. The United States comes to the table with few good options. Sanctions have failed to change Iran's decisions about its nuclear program, and no feasible set of sanctions (given the limits of what China, Russia, and others will agree to) is likely to convince Iran to give up its enrichment program. Military strikes against Iran would probably not set back Iran's program for longer than a brief period and would greatly increase Iran's incentive to go straight to the bomb at covert sites (as Iraq did after Israel destroyed its facilities at Osiraq).
  • Topic: Foreign Policy, Nuclear Weapons, Weapons of Mass Destruction
  • Political Geography: Russia, United States, China, Middle East
  • Author: Igor Torbakov, Vadim Kononenko
  • Publication Date: 09-2009
  • Content Type: Policy Brief
  • Institution: Finnish Institute of International Affairs
  • Abstract: As the Kremlin believes that the global economic downturn is increasing the trend towards greater regionalism, the strategic conclusion is to strengthen Russia's position as the centre of its "own region" - post-Soviet Eurasia. In order to enhance its geopolitical posture in the ex-Soviet area, Russia has been pursuing a two- track policy: it is buying up assets from, and giving out loans to, its distressed neighbours on a massive scale. Several forces appear to be working at cross-purposes with the Kremlin's ambitions: 1) the state of Russia's own economic system; 2) the wiliness and cunning maneuvering of Moscow's "allies"; and 3) the growing competition on the part of the other centres of power - the European Union and China. Ultimately, the Kremlin's desperate efforts to turn Russia into a geopolitical leader of the Commonwealth of Independent States (CIS) are likely to be frustrated by Russia's lack of a coherent long-term strategy and by its socio-political system's dearth of appeal.
  • Topic: Globalization, Financial Crisis
  • Political Geography: Russia, China, Europe, Asia, Soviet Union
  • Author: Anna Korppoo
  • Publication Date: 09-2009
  • Content Type: Policy Brief
  • Institution: Finnish Institute of International Affairs
  • Abstract: The 10-15% reduction target by 2020 announced by Russia reflects neither the country's efficiency potential, nor modeled emissions trends. With emission reduction measures, Russia could commit to a target of ca. -30% by 2020. Transferring the surplus emission allowances Russia gained under the Kyoto Protocol due to the economic restructuring of the 1990s represents an extreme threat to both the environmental and market integrity of the Copenhagen agreement as it could be used to offset real domestic emission reduction measures in other countries. But it seems politically unlikely that Russia would join without transferring the surplus under the Copenhagen agreement. Countries should recognize the threat posed by the surplus, and offer a cooperative strategy to deal with it. However, pushing through a 'cancel or discount' approach to the surplus problem by three-quarter majority, which could be brought together without the co-operation of the surplus-holding countries, should be kept as a reserve strategy. More ambitious targets - beyond the 25-40% suggested by the IPCC - for the Annex I industrialized country group, especially for the surplus holding countries including Russia, could absorb the transferred surplus. However, given the current low pledges of Annex 1 countries, higher targets are unlikely to absorb the whole surplus, and therefore, a basket of approaches should be applied. To gain credibility on this issue of vis-à-vis Russia and to avoid Russia setting the tone, before Copenhagen the EU must adopt an internal solution to deal with the surplus of its new member states. If expecting to transfer the surpluses, the other surplus holding countries including Russia could announce national surplus use plans prior to the Copenhagen climate talks. In order to minimize a scenario of Russia blocking the Copenhagen process in the final hours, key countries should publically engage Russia on climate and the Copenhagen talks. Important Annex I countries, especially the US, should send very high-level representatives to Moscow like they have sent to China and India.
  • Topic: Climate Change, Treaties and Agreements
  • Political Geography: Russia, United States, China, Europe, India, Asia
  • Author: Jaya Prakash Pradhan
  • Publication Date: 08-2009
  • Content Type: Policy Brief
  • Institution: Columbia Center on Sustainable Investment
  • Abstract: Just over a year ago, outward foreign direct investment (OFDI) from India seemed to be on a path of rapid and sustained growth. Its annual average growth of 98% during 2004–07 had been unprecedented , much ahead of OFDI growth from other emerging markets like China (74%), Malaysia (70%), Russia (53%), and the Republic of Korea (51%), although from a much lower base. Much of this recent growth had been fuelled by large-scale overseas acquisitions, however, and it faltered when the global financial crisis that started in late 2007 made financing acquisitions harder.
  • Topic: Development, Economics, Foreign Direct Investment, Financial Crisis
  • Political Geography: Russia, China, Malaysia, India, Korea
  • Author: Ken Davies
  • Publication Date: 05-2009
  • Content Type: Policy Brief
  • Institution: Columbia Center on Sustainable Investment
  • Abstract: In 2008 global FDI fell by around 20%, while outward FDI from China nearly doubled. This disparity is likely to continue in 2009 and 2010 as China invests even more overseas. What is driving this continuing surge in China's outward FDI?
  • Topic: International Trade and Finance, Foreign Direct Investment, Financial Crisis
  • Political Geography: China, Asia