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301. Input Allocation Behaviour on Tariff Changes: The Case of Indonesia’s Manufacturing Industries

Author:
Samuel Nursamsu, Dionisius Narjoko, and Titik Anas
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Can firms reallocate their imported inputs to domestic sources when faced with import tariffs? To answer this question, we analyse the input allocation behaviour of Indonesian medium and large-sized manufacturing firms in responding to the movement of import tariffs from 2000 to 2013 by utilising plant-level input data of Indonesian manufacturing. We find that an increase in tariffs only creates a weak substitution effect. Our findings indicate that firms reallocate their inputs towards domestic sources, although this is accompanied by a decrease in the firms’ value added. This implies that domestic inputs are worse substitutes for imported inputs and that firms’ capacity to switch over to domestic products is limited, suggesting that firms will immediately switch back to importing when the tariff is removed. We find no evidence that firms make any adjustment towards more domestic-oriented input composition over time; and heterogeneity exists within the result, as industries with a strong basis in the domestic market are more capable of adjusting.
Topic:
Industrial Policy, International Trade and Finance, Tariffs, and Manufacturing
Political Geography:
Indonesia and Asia

302. Foreign Direct Investment and Labour Market Dynamics in a Developing Country: Evidence from Indonesian Plant-Level Data

Author:
Toshiyuki Matsuura and Hisamitsu Saito
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the impact of inward foreign direct investment on the wages and employment of skilled and unskilled workers in Indonesian manufacturing plants. Entry of multinational enterprises affects local labour markets through spillovers as well as labour and product market competition. Our results show that spillovers increase the labour demand of local plants for unskilled workers, but increased wages due to severe labour market competition reduce the demand for skilled workers. We also find that product market competition causes resource reallocation from low- to high-productivity plants. Thus, attracting inward foreign direct investment effectively enhances aggregate productivity growth, but may retard the transition to skill-intensive production in Indonesian manufacturing.
Topic:
Development, Foreign Direct Investment, Manufacturing, and Labor Market
Political Geography:
Indonesia and Asia

303. Learning-to-Export Effect as a Response to Export Opportunities: Micro-Evidence from Korean Manufacturing

Author:
Chin Hee Hahn and Yong-Seok Choi
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper aims to investigate whether empirical evidence supports the learning-to-export hypothesis, which has received little attention in the previous literature. By taking full advantage of plant–product level data from the Republic of Korea during 1990–1998, we find some evidence for the learning-to-export effect, especially for innovated product varieties with delayed exporters: their productivity, together with research and development and investment activity, was superior to their matched sample. On the other hand, this learning-to-export effect was not significantly pronounced for the industries protected by import tariffs. Thus, our empirical findings suggest that it would be desirable to implement some policy tools to promote the learning-to-export effect, while tariff protection cannot be justifiable for that purpose.
Topic:
Industrial Policy, International Trade and Finance, Tariffs, Manufacturing, and Productivity
Political Geography:
Asia and South Korea

304. Pandemic (COVID-19) Policy Regional Cooperation and the Emerging Global Production Network

Author:
Fukunari Kimura
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
In this paper, we explore the possible policy responses to the pandemic shock as well as the related economic (financial crisis) shocks on trade and global value chains (GVCs) in East Asia. We find that regional policy coordination is critical to mitigate and isolate the pandemic shock. It is important to identify the pandemic events early to flatten the pandemic curve at the national and regional level. This supports a recent study by the World Bank (2020) which highlights the importance of early mitigation policies during the pandemic shock. The cost of the pandemic and economic shocks increases significantly when several countries in the region experience the systemic pandemic shock concurrently. In this case, flattening the regional pandemic curve becomes important. The results also indicate the need for greater coordination in East Asia to mitigate the pending economic shock in terms of unemployment, corporate bankruptcy, and financial market fragility. The paper also highlights that the stability of the GVC network is critical during the pandemic in terms of hedging the risk of disruptions to the procurement of critical medical and health products as well as the stability of the services linkages to manufacturing, such as the logistics sector. Regional policy coordination and the stability of GVCs are valuable in the post-pandemic recovery of the region.
Topic:
World Bank, Pandemic, Global Value Chains, and COVID-19
Political Geography:
East Asia and Asia

305. Labour Market Impacts of Import Penetration from China and Regional Trade Agreement Partners: The Case of Japan

Author:
Kazunobu Hayakawa, Tadashi Ito, and Shujiro Urata
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The impacts of imports on the domestic labour market have been hotly debated recently. The purpose of this paper is to empirically examine the effects of not only imports from China but also those under regional trade agreements (RTAs) on employment in Japan. As in previous studies in the literature, we found that the rise in import penetration from China significantly decreases employment in Japan. However, import penetration under RTA regimes is found to have insignificant effects on employment. The finding suggests that the increase in imports under RTA regimes might not be harmful to the domestic labour market. In addition, we did not find significant effects of import penetration via input–output linkages. This insignificant result may be because imports by Japanese manufacturing firms are mostly conducted in the form of intra-firm trade, enabling them to avoid negative impacts on employment.
Topic:
International Trade and Finance, Regional Cooperation, Labor Issues, Employment, and Manufacturing
Political Geography:
Japan, China, and Asia

306. Trade Reform and the Evolution of Agglomeration in Vietnamese Manufacturing

Author:
Đoàn Thi Thanh Ha and Hông Quỳnh Nguyen
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
It is well-documented that agglomeration contributes to productivity growth. However, concentrations of workers could also lead to increasing regional income disparities. Therefore, understanding the evolution of agglomeration is relevant for the formulation of industrial policy and inclusive growth. This study documents the extent, pattern, and determinants of agglomeration in Vietnamese manufacturing during 2002–2016, a period when substantial economic reform took place. Our major findings are three-fold. First, agglomeration, as measured by the Ellison–Glaeser index, has declined since the mid-2000s. Second, there exists significant sectoral heterogeneity in the level and trend of agglomeration. Third, we do not find a significant impact of trade and foreign direct investment on agglomeration per se. However, foreign direct investment in port districts does contribute to disagglomeration.
Topic:
International Trade and Finance, Reform, Manufacturing, and Productivity
Political Geography:
Asia and Vietnam

307. Analysis of Global Value Chain Participation and the Labour Market in Thailand: A Micro-level Analysis

Author:
Upalat Korwatanasakul and Youngmin Baek
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study assesses the links between global value chain (GVC) participation and the labour market to examine the relatively unexplored employment-related distribution effects of GVC integration. Based on the Mincer wage model, we examine the relationship between GVC participation and worker productivity and wages at the individual level. Our main estimation method is a simple ordinary least squares estimation using pooled cross-sectional data from the Thai Labour Force Survey for the period 1995–2011. We also separately examine the effects of forward and backward GVC participation on wages and wage distributions. Our results show that GVC participation induces higher monthly wages for individuals and increases productivity in the labour market through either the forward linkage or backward linkage. We even find that GVC participation can help mitigate inequality. Our findings show that GVC participation promotes inclusive job creation and provides more job opportunities for rural, female, and low-skilled workers. Policies to support leveraging the existing strong industries through upgrading, smoothing labour movements while improving agricultural productivity, and preparing to move towards a services economy can help prepare Thailand, and other developing countries in general, to upgrade to higher value chains. Although GVC participation may be a catalyst for higher wages, greater labour productivity, and more inclusive job creation, its employment effects are complicated. An unbalanced policy framework might contribute to uneven income distributions and exclusive job creation as participating in GVCs through different linkages can benefit different stakeholders in varying ways. Therefore, a policy framework that balances the benefits among stakeholders in terms of wage distributions and job inclusion is ideal.
Topic:
Labor Issues, Work Culture, Global Value Chains, and Labor Market
Political Geography:
Asia and Thailand

308. New Developments in International Production Networks: Impact of Digital Technologies

Author:
Ayako Obashi and Fukunari Kimura
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
We conducted a standard gravity exercise using worldwide disaggregated trade data to shed light on the influence of the spread of digital technologies on network trade. We found that growing investment in industrial robots in relatively lagging countries, together with imported digitally deliverable services, is enhancing bilateral network trade flows in East Asia, but not necessarily in other parts of the world. This suggests that exploring complementarities between machines and human resources in production blocks supported by better service-link connectivity may allow newly developed economies to retain and expand the international division of labour.
Topic:
Regional Cooperation, Science and Technology, Digital Economy, and Productivity
Political Geography:
East Asia and Asia

309. Assessment of Industrial Cluster Policies in Viet Nam: The Role of Special Economic Zones in Attracting Foreign Direct Investment

Author:
Nguyen Quynh Huong
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Special economic zones (SEZs) are considered as one of important regional industrial policies to attract foreign investment in developing countries such as Viet Nam. The review of SEZs development in Viet Nam including the comprehensive review of infrastructure and business environment in SEZs are presented in this paper for the first time. Moreover, the paper gives novel non-parametric evidence to indicate the positive causal linkage between the zoning policies and the attraction of foreign investment at district-level in the country during the period 2011–2015.
Topic:
Industrial Policy, Regional Cooperation, Foreign Direct Investment, and Industry
Political Geography:
Asia and Vietnam

310. A Quantitative Analysis of Disaster Risk Reduction Investment Effects for Sustainable Development: Indonesia Case Study

Author:
Hiroaki Ishiwata, Hiroyuki Wada, Koji Suzuki, and Naoto Tada
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper analyses the long-term impacts of large-scale disasters on the economic growth of developing countries in the Association of Southeast Asian Nations (ASEAN) Community, by the scale of disaster risk reduction (DRR) investments. As a means of quantitatively analysing the optimal level and economic efficiency of DRR investments, a case study was conducted on Indonesia by using a dynamic stochastic macroeconomic model. The results showed that in Indonesia, although greater economic growth is expected when additional DRR investments are made, an excessive DRR investment may contrarily lead to a slowdown in economic growth: an optimal level of DRR investment exists and maintaining its level is essential for sustainable economic growth. Furthermore, it was confirmed that there is a break-even point when the amount of accumulated disaster damage mitigation benefits exceeds the amount of accumulated DRR investment. This demonstrated that the funds invested in DRR could be recovered. Additionally, the results also showed that even if no disaster damage is caused over a long period of time, DRR investments are by no means redundant as the ‘ex-ante risk reduction effect’ will be generated when the optimal level of DRR investment is made. Lastly, it was determined that providing a continuous DRR investment is important in achieving the global target set forth in the Sendai Framework for Disaster Risk Reduction. In addition, it is considered desirable to maintain a higher level of DRR investment than that which is currently being implemented.
Topic:
Economic Growth, Investment, Risk, and Disaster Management
Political Geography:
Indonesia, Asia, and Indo-Pacific

311. Technology Imports and Employment in Developing Countries: Evidence from Viet Nam

Author:
Thu Thu Vu and Duc Anh Dang
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Advanced machines and technology replace workers through automation. However, capital–labour substitution need not reduce aggregate labour demand, as it induces simultaneous contrasting effects within industries. To explore these effects, we examine the relationship between employment in Vietnamese manufacturing firms and imported capital goods in 2011–2017. To solve the problem of potential endogeneity and measurement errors, we used Association of Southeast Asian Nations (ASEAN) imported capital goods as an instrument variable for imported capital goods in Viet Nam. We found that imported capital goods do not displace employment and even increase employment and labour productivity. The impacts of imported advanced technology are more pronounced in large firms. More imported technology increases labour productivity in state-owned enterprises and the number of workers in large firms and firms in industrial zones. However, the increase in the level of employment is lower in industries and firms intensively using machines.
Topic:
Development, Science and Technology, Employment, and Imports
Political Geography:
Asia and Vietnam

312. Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing

Author:
Đoàn Thi Thanh Ha
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the impacts of advanced technology on a possible change in workers’ skills, wages, and employment due to such technological advancement. Three proxies of advanced technologies are used in the study: (i) information and communications technology, (ii) intensity of robot use, and (iii) value of e-commerce. Our study compares the effects of technological advancements on labour market outcomes with import penetration, delineating into raw materials, capital goods, and final products. Our results show that in Thailand, the impact of advanced technology in pushing workers out of the job market is limited. Instead, it tends to affect reallocation of workers between skilled and unskilled positions. The results vary amongst proxies of technology and sectors. It seems that workers in comparatively capital-intensive industries, including automotive, plastics and chemicals, and electronics and machinery, are the most affected by advanced technology. Dampened wage/income is found only in some proxies of technology and sectors. Our results show less concern of negative impacts induced by imports, particularly imports of capital goods and raw materials, on employment status and income than technological advancement.
Topic:
Science and Technology, Labor Issues, Employment, Manufacturing, Job Creation, and Labor Rights
Political Geography:
Asia and Thailand

313. The Value-Added Tax Reform and Labour Market Outcomes: Firm Level Evidence from China

Author:
Yuxiang Yang and Hongyong Zhang
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The tax incentives designed to stimulate firm investment may have a large impact on labour market outcomes. Using a comprehensive data set containing more than 1 million Chinese manufacturing firms during the period 2000–2013 with a difference-in-difference approach, we examine the impact of the value-added tax reform in 2004–2008 on the firm-level labour market outcomes. We find that firms in eligible industries and regions (treated firms) enjoying lower costs of purchasing fixed assets under the reform tended to increase capital investment and reduce employment relative to firms that did not have tax incentives (the control firms). Compared with the control firms, the treated firms became more capital intensive and had an increase in average wage but a decline in labour income share. We also provide evidence that the substitutions of labour input by capital input is associated with increases in firm productivity and the share of skilled workers, but not imported capital goods.
Topic:
Labor Issues, Reform, Tax Systems, and Labor Market
Political Geography:
China and Asia

314. The Economic Impact of Globalisation in Indonesia

Author:
Kiki Verico and Mari Pangestu
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper analyses the economic impact of globalisation in Indonesia from the end of the 1960s to date. The analysis found that globalisation generated a positive impact on Indonesia’s economic growth through the trade and investment channel; reduced wage inequality and child labour participation; and increased labour absorption, including women's participation in the labour market. Through the trade channel, globalisation also contributed to Indonesia’s productivity and structural economic transformation, benefited small and medium-sized enterprises (SMEs), contributed to poverty alleviation and reduced inequality, and increased trade in services such as tourism. Through the investment channel, there is evidence of the spillover effect of technology transfer, technology progress, improvement of the role of SMEs, and contribution to poverty alleviation. The waves of open and more restrictive trade and investment policies, which Indonesia has gone through in the last few decades, reflect the political economy reality – that is, the impact of globalisation is dynamic and only felt in the medium term, whereas the cost and potential negative impact is often felt more immediately throughout trade creation. The trade creation increases imports from countries with which free trade agreements have been negotiated, decreasing the domestic producer surplus. Since globalisation will create net benefits in the long run, Indonesia should continue its process of globalisation and integration with the world economy to ensure the net benefits and to move forward in its structural transformation, while managing the costs of globalisation and its transition process.
Topic:
Globalization, International Cooperation, International Trade and Finance, and Economic Growth
Political Geography:
Indonesia, Asia, and Indo-Pacific

315. Sustainable Water Resource Development Scenarios and Water Diplomacy in the Lower Mekong Basin: Policy Implications

Author:
Han Phoumin
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper uses the current results of the Basin-wide water resource development scenario assessment of the Council Study of the Mekong River Commission Secretariat (MRCS) to analyse potentials benefits for economic development to meet the ambitious goal of the riparian states of the Lower Mekong Basin (LMB) countries for poverty reduction and, at the same time, analyse the risks of potential trans-boundary trade-off, which will require an appropriate mechanism to be in place. The scenario assessment results present both opportunities and risks associated with different levels of water resource development in the Mekong countries and the implications of the water diplomacy for both the lower and uper mekong basin. All scenarios could be broadly placed into three main categories with different timeframes and assumptions. Scenario M1 – the early development scenario – characterises baseline water resource developments in 2007; Scenario M2 – the medium-term definite future scenario – characterises existing, under-construction, and firmly-committed water related developments in 2020; and Scenario M3 – the long-term planned development scenario – characterises the planned water developments in 2040 in addition to those assigned for 2020 for implementation over the following 2 decades. The main scenarios aggregate combinations of water resource developments enabling the cumulative assessment of environmental, social, and economic effects in the Member Countries. The Scenarios will bring both economic opportunities in terms of benefits from water resource development as well as risks related to biodiversity changes, the environmental damages and losses of livelihoods, and the dependency on the natural resources of the Mekong River. Each of the scenario results presents the trans-boundary trade-off which requires appropriate skills, capacities of the LMB riparian countries, and water diplomacy to discuss and negotiate for the solutions. Finally, this paper provides some suggestions and policy implications that could be possible mechanisms and solutions for sustainable water resource development in the Mekong region.
Topic:
Environment, Natural Resources, Water, and Sustainability
Political Geography:
Asia, Vietnam, Thailand, and Laos

316. The Effects of Financial Inclusion on Development Outcomes: New Insights from ASEAN and East Asian Countries

Author:
Rajabrata Banerjee, Ronald Donato, and Admasu Afsaw Maruta
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study empirically examines the effects of financial inclusion on economic development, – economic growth, education, health, and income inequality – in 20 Asian countries in the period 2004-2015. The financial inclusion index at an aggregate level is constructed using a hybrid methodology (reported in the previous paper) and we empirically examine its relationship with particular development outcomes. We then disaggregate the index into the three dimensions of financial inclusions – access, usage, and quality – and further into the top two indicators from each dimension based on principal component analysis scores (reported in the previous paper), to examine whether specific dimensions or indicators are more strongly associated with particular development outcomes than with others. Our results show that aggregate financial inclusion has a strong positive effect on all development outcomes and this effect improves for countries with lower political risk. At the dimension level, while usage is the only dimension impacting on economic growth, and access is the only dimension impacting on health outcomes, both usage and access influence education and income inequality. Moreover, the top ranked indicators in each dimension exert a far greater positive influence on development outcomes than the second highest ranked indicators. Our findings show that adopting a single blanket policy may not be appropriate to realise the full potential of financial inclusion in a less developed country. Policy prescriptions should therefore target specific dimension and indicators of financial inclusion to maximise the positive effect on development outcomes.
Topic:
Development, Health, Finance, and Fiscal Policy
Political Geography:
Asia

317. The Composition of Financial Inclusion in ASEAN and East Asia: A New Hybrid Index and Some Stylised FactsThe paper provides an overview of the existing measures of financial inclusion and critically evaluates the two widely used existing methodologies to measure the dimensions – the principal component analysis (PCA) method and the Distance method, respectively. We subsequently propose a new hybrid financial inclusion index, which draws on the strengths of existing measures. We propose four key stylised facts by critically evaluating three dimensions of financial inclusion – access, usage, and quality in 22 Asian countries in the period 2004-2015. Utilising PCA scores, we identify the top two indicators under each dimension and by country, which are directly relevant for policy perspectives. An important finding is that the top five and the bottom five countries are the same under all three methodologies. There is a pattern across countries in adopting usage, access, and quality dimensions of financial inclusion over time. We also find that the top two indicators appear to play a significant role across all developing countries in the sample.

Author:
Rajabrata Banerjee and Ronald Donato
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The paper provides an overview of the existing measures of financial inclusion and critically evaluates the two widely used existing methodologies to measure the dimensions – the principal component analysis (PCA) method and the Distance method, respectively. We subsequently propose a new hybrid financial inclusion index, which draws on the strengths of existing measures. We propose four key stylised facts by critically evaluating three dimensions of financial inclusion – access, usage, and quality in 22 Asian countries in the period 2004-2015. Utilising PCA scores, we identify the top two indicators under each dimension and by country, which are directly relevant for policy perspectives. An important finding is that the top five and the bottom five countries are the same under all three methodologies. There is a pattern across countries in adopting usage, access, and quality dimensions of financial inclusion over time. We also find that the top two indicators appear to play a significant role across all developing countries in the sample.
Topic:
Finance
Political Geography:
Asia

318. The Poverty-Reducing Effects of Financial Inclusion: Evidence from Cambodia

Author:
Kimty Seng
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study analyses the effects of financial inclusion on poverty in terms of household income per capita in Cambodia, with data from the FinScope Survey carried out in 2015. The analysis describes the effects via financial literacy, accounting for endogenous selection bias resulting from unobserved confounders and for structural differences between users and non-users of financial services in terms of income functions. The findings suggest that the use of financial services is very likely to make a great contribution to reducing household budget deficits and poverty if the users, female in particular, have at least basic financial knowledge.
Topic:
Poverty, Inequality, Finance, and Financial Services
Political Geography:
Asia and Cambodia

319. Financial Inclusion, Active Bank Accounts and Poverty Reduction in India

Author:
Tony Cavoli, Ilke Onur, and Patricia Sourdin
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the World Bank’s Global Findex data, this research first shows that the efforts by the Indian Government and the Reserve Bank have been successful in providing access to formal banking services, especially in the rural areas of the country. Similarly, financial account ownership gap has been eliminated in terms of gender and income. Further analysis, using the Financial Inclusion Insights dataset, shows that financial inclusion has a positive and significant effect on reducing poverty in India. A closer look at the utilisation of the financial accounts shows that active usage of these accounts would lead to further reductions in poverty levels in India. Therefore, targeted programmes, such as offering financial education both in and outside schools, with the aim of improving financial literacy, could lead to further poverty reduction in India.
Topic:
Education, Poverty, Finance, and Banks
Political Geography:
India and Asia

320. Economic Damage from Natural Hazards and Local Disaster Management Plans in Japan and Thailand

Author:
Makoto Ikeda and Thawatchai Palakhamarn
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Japan and Thailand are geographically similar in that both countries have a vast coastline and a population that is concentrated in urban areas. Natural hazards such as earthquakes, tsunamis, typhoons, floods, and landslides bring about a considerable amount of damage every year. To counter these natural hazards, both countries have developed disaster management laws at the national, provincial, and prefectural levels. Establishing and executing local disaster management plans is particularly important as the initial response to a disaster is first performed at the local level. In this study, we have focused on the local disaster management plans in Thailand and examined the state of the development of the plans, which are essential during a post-disaster period. We also found that in Japan there was a defined tangible system of cooperation with the private sector based on the unique characteristics of each local government.
Topic:
Natural Disasters, Risk, Private Sector, and Disaster Management
Political Geography:
Japan, Asia, and Thailand

321. Does Change in Intellectual Property Rights Induce Demand for Skilled Workers? Evidence from India

Author:
Pavel Chakraborthy and Prachi Gupta
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Do incentives to innovate create demand for skilled workers more than proportionately? We study the question using the implementation of the Patent (Amendment) Act in India in 2002 to comply with the Trade-Related Intellectual Property Rights agreement. We find, first, stronger intellectual property protection has a sharper impact on demand for skilled workers for high patentable industries. Demand for skilled workers increased by 0.5%–2.9% for industries that are more patentable. The average compensation for skilled workers went up by 10% in high patentable industries but decreased for unskilled workers by about 2%. Second, the increase in wage inequality can partly be attributed to the increase in wages rather than incentives. Third, the increase in demand for skilled workers is due to both the increase in intensive margin (or price) and extensive margin (number). Fourth, the aggregate effect is completely driven by industries producing intermediate goods and big plants. Finally, the reforms led to a significant reallocation of resources between industries. The high patentable industries invested more in technology adoption, started to produce more product varieties at higher quality, and filed for more product patent claims. Broadly, we demonstrate that stronger intellectual property protection leads to higher wage inequality between industries.
Topic:
Science and Technology, Labor Issues, Intellectual Property/Copyright, and Skilled Labor
Political Geography:
India and Asia

322. Robotics Technology and Firm-level Employment Adjustment in Japan

Author:
Bin Ni and Ayako Obashi
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Unlike studies that analyse the impact of robotics technology on employment at the industry or firm level, this study investigates cross-division employment adjustment within a firm in an industry with large penetration and diffusion of robotics technology. By examining the changes in the composition of employment, we measured job creation and destruction at the division level and explored whether robotics technology, as a leading example of automation, not only displaces workers but also introduces new jobs in favour of labour. We made use of unique, division-level employment data for Japan’s manufacturing firms, together with industry-level data on the installation of industrial robots. We found that industry-level adoption of robots positively affects the rates of firm-level job creation and job destruction. Because the magnitude of the impact is larger for job destruction, robot adoption has an overall negative impact on firms’ net employment growth. Our finding suggests that the labour displacement effect of robotics technology and the emergence of new jobs due to technological change coexist even at the firm level.
Topic:
Science and Technology, Manufacturing, Artificial Intelligence, and Job Creation
Political Geography:
Japan and Asia

323. Intergenerational Transmission of Human Capital: The Case of Thailand

Author:
Sasiwimon W. Paweenawat
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study provides evidence of intergenerational transmission of human capital in Thailand, using data from the Thailand Labor Force Survey of 1985–2017. Employing the instrumental variable approach using Thailand’s compulsory educational reform of 1978 as the instrumental variable to minimise bias caused by the endogeneity of parental education, this study estimates the effect of parental education on children’s education and their labour market outcomes. Besides reaffirming the conventional positive link between parental and children’s years of education, new and intriguing evidence is put forth on the negative link between parental education and the child’s brawn skill, based on the industry and occupation adopted by the child in the labour market. The influence of paternal education is found to outweigh that of maternal education, in contrast to the evidence from developed countries. High intergenerational educational persistence and low intergenerational mobility indicate unequal opportunities in the country, as individual welfare is largely tied to parental background. Therefore, it is recommended that the Government of Thailand weaken this linkage to improve equality in the country.
Topic:
Education, Reform, Children, and Parenting
Political Geography:
Asia and Thailand

324. he Effects of Prenatal Exposure to Plentiful Rainfall on Cognitive Development in Viet Nam

Author:
Nobuaki Yamashita and Trong-Anh Trinh
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
We examine the impact of exposure to plentiful rainfall while in utero on the cognitive development of the same children from ages 5 to 15 from the Young Lives Project in Viet Nam. Using variations in the month and place of birth, we show that positive income shocks, proxied by above-average rainfall, are associated with better cognitive development up to age 8. The effect is more pronounced when positive shocks occurr early in gestation. However, we find that such positive effects are not sustained in the longer term and are completely absent at ages 10, 12, and 15. Our results call for effective and early policy interventions providing a sustained pathway for the cognitive development of children in weather disaster-prone regions.
Topic:
Environment, Natural Disasters, and Weather
Political Geography:
Asia and Vietnam

325. The Role of Innovation in Skill Development: Evidence from Small and Medium-Sized Enterprises in Viet Nam

Author:
Duc Anh Dang and Vuong Ahn Dang
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the Small and Medium Enterprise Survey in Vietnam and three proxies of innovation, we study the impact of firm innovation on on-the-job training in the manufacturing sector from 2007 through 2015. To address potential measurement errors and omitted variable problems, we use the average level of innovation in the same sector in other districts as an instrument for firms’ innovations. We find that firms provide additional training for existing workers when introducing new technology, and high-value-added firms provide additional training for existing workers. Moreover, government assistance may not be the main reason that encourages firms to provide training. The results also show that firms hire more skilled workers when implementing innovations.
Topic:
Development, Training, Innovation, and Skilled Labor
Political Geography:
Asia and Vietnam

326. Intended and Unintended Consequences of a New Limit on Working Hours in South Korea: Implications for Precarious Employment

Author:
Sungchul Park and Hansoo Ko
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Effective as of July 1, 2018, South Korea set a new cap on employees’ weekly working hours, decreasing the maximum number from 68 to 52. In this study, we comprehensively analyze the effectiveness of the law’s implementation by observing changes in work time, health status, health care utilization, health behavior, monthly expenses, and satisfaction between pre- and post-implementation periods (2014–2017 vs. 2019). We find evidence of both intended and unintended consequences—and, in this last category, some are beneficial and some not. As intended, employees eligible for the 52-hour work week saw their average working hours decrease, while their monthly spending on leisure increased substantially. A beneficial unintended consequence was that work time also decreased in firms with less than 300 employees that had not yet implemented the 52-hour work schedule (they have done so since, in January 2020). Among adverse unintended consequences, the most notable were heterogeneous effects across employment types (full-time vs. precarious employment) and, in particular, negative impacts on precarious employees (that is, those facing relatively high levels of job insecurity). Despite almost no change in their work time, precarious employees saw substantial increases in outpatient visits and monthly expenses for health care, indicating suggestive evidence of adverse health consequences. Another adverse unintended consequence was that overall job satisfaction decreased among several groups of employees. This may reflect a heavy workload among employees still expected to work overtime, especially experienced employees or those working in large firms. While employment rates increased after the new schedule’s implementation, the majority were in precarious jobs. This has negative implications because of the adverse health impacts of being in precarious employment; also, the workload of experienced employees in this field might have intensified amid all the new hiring. Our findings suggest key policy recommendations for how to leverage the benefits of the 52-hour cap on weekly working hours while addressing its negative unintended consequences.
Topic:
Health, Labor Issues, Employment, and Labor Policies
Political Geography:
Asia and South Korea

327. Exploring India's Strategic Futures

Author:
Arzan Tarapore
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
he method of major/minor trends developed in this report suggests that the roots of apparently surprising future behavior can be found in a close reading of a target state’s history. Using this method, the report outlines three unlikely but plausible alternative futures of India as a strategic actor. The first scenario envisions India as a Hindu-nationalist revisionist power hostile to Pakistan but accommodating of China; in the second, it is a militarily risk-acceptant state that provokes dangerous crises with China; and in the third scenario, India is a staunch competitor to China that achieves some success through partnerships with other U.S. rivals like Russia and Iran. These scenarios are designed not to predict the future but to sensitize U.S. policymakers to possible strategic disruptions. They also serve to highlight risks and tensions in current policy.
Topic:
International Relations, Foreign Policy, Conflict, and Strategic Interests
Political Geography:
Russia, United States, China, Europe, India, Asia, and North America

328. Indo-Japan Dialogue in the 20th Century and Cultural Heritage in the New World Order

Author:
Rekha Yadav and Anisha Deswal
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
India International Centre (IIC)
Abstract:
The paper presentations on the second day of the conference on ‘Rethinking Cultural Heritage’ continued the trend of research-based studies, as evident on the first day of the meeting.1 Professor Amiya P. Sen began with a note of apology, stating that after reflection, he had changed the title of his presentation to ‘Japan and India as Ontology: Negotiating Modernity, Culture and Cosmopolitanism in Colonial Bengal’. The paper was divided into two parts. The first part of the paper focused on the broad introduction of the structure and arguments which he developed about 19th century Bengal, as the site where the first crop of a Westerneducated Hindu intelligentsia, creatively and actively engaged in a two-way, quite contrary, intellectual enterprise. While it produced some of the greatest supporters of Western modernity, it also created its sharpest critics. The second part of the paper examined changing Indian perceptions of Japan over a period of time, through the writings of two prominent intellectual figures of Bengal, that is Swami Vivekananda (1863-1902), and the poet, Rabindranath Tagore (1861-1941).
Topic:
Diplomacy, History, Bilateral Relations, Culture, and Dialogue
Political Geography:
Japan, South Asia, India, and Asia

329. COVID-19: In Search of Solutions for Maritime Supply Chains

Author:
Chin Yim Leng
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Maritime Institute of Malaysia
Abstract:
The outbreak of the COVID-19 pandemic has had a remarkable impact on maritime supply chains. Since its first case in the capital of China’s Hubei province, Wuhan, Chinese seaborne trading activities were greatly affected – reports of weakening manufacturing confidence, decreasing demand for non-essential goods worldwide, and reduced workforce has surfaced since the massive transmission of COVID-19 in January 2020. Many European and Asian countries, including the United States, have responded to the pandemic in March 2020 by imposing strict containment measures. The implementation of national lockdowns or movement restrictions in pandemic-affected countries has led to rapid contractions in maritime supply chains. The wide-ranging impacts of COVID-19 on manufacturing and trading demands have created the need for different importing speeds based on essentiality, thus deteriorating the maritime supply chains. Governments and relevant authorities, as well as private entities, should take initiatives to ensure that maritime supply chains remain fully functional for national and commercial interests as the COVID-19 pandemic progresses. It could be ideal to adopt digitalisation and blockchains as these digital processes are easy to access and control in optimising the efficiency of maritime supply chains amidst the unprecedented COVID-19 pandemic.
Topic:
International Trade and Finance, Maritime, Pandemic, COVID-19, and Supply Chains
Political Geography:
China and Asia

330. Impact of US-China Trade Tensions, the Coronavirus, and the Plunge of Oil Prices on the Malaysian Maritime Transportation Industry

Author:
Ang Chin Hup
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Maritime Institute of Malaysia
Abstract:
Malaysia’s maritime transportation industry has seen growth from the benefits of the nation’s strategic location, well-developed infrastructure, and buoyant economy. Recently, this growth has lost its momentum since it became affected by the US and China trade tensions, the Coronavirus pandemic, and the plunge in oil prices. The trade tensions affected Malaysia’s ports handling exports to China. The plunge of oil prices affects demand for bunker oil due to reduced shipping activities. Meanwhile, the Coronavirus pandemic has disrupted port operations. As solutions for these impacts, this paper recommends a diversified supply chain, logistics-centric port, a comprehensive bunkering strategy, and strict compliance to IMO’s conventions.
Topic:
International Trade and Finance, Oil, Pandemic, Industry, COVID-19, and Energy
Political Geography:
Malaysia and Asia

331. Geo-Economic Impact of COVID-19 on the Maritime Sector in Malaysia

Author:
Sumathy Permal and Norsyihan Jamal
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Maritime Institute of Malaysia
Abstract:
The cascading effect of the novel coronavirus (Covid-19) that originated in Wuhan, China, is producing widespread reverberations around the globe and impacting almost every facet of life as we know it today. This article discusses the impact of Covid-19 on the geo-economics and maritime sector of Malaysia. A study by McKinsey states that the pandemic is expected to peak in the US and Europe in May 2020 and, as such, its full-fledged impact has not yet been felt. The pandemic has a corresponding effect on the global economy, which is expected to suffer major declines in consumption and production throughout the year. The global supply chain has been hard-hit with dire consequences for international trade and the shipping industry.
Topic:
Economics, International Trade and Finance, Maritime, Pandemic, COVID-19, and Supply Chains
Political Geography:
Malaysia and Asia

332. Domestic and International (Dis)Order: A Strategic Response

Author:
Aspen Strategy Group
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
The Aspen Strategy Group recently released Domestic and International (Dis)Order: A Strategic Response bringing together preeminent experts to explore race, democracy, and political divisions on the American home front; the future of U.S.-China relations; the global economy; and U.S. foreign policy priorities for 2021. Contributors include: Madeleine K. Albright, Ayaan Hirsi Ali, Zoë Baird, Robert D. Blackwill, Nicholas Burns, Kurt M. Campbell, Diana Farrell, Peter Feaver, Michael J. Green, Naima Green-Riley, Jane Harman, Kay Bailey Hutchison, Wolfgang Ischinger, Aditi Kumar, Anja Manuel, David McCormick, John McLaughlin, Shivshankar Menon, Joseph S. Nye, Jr., David H. Petraeus, Tom Pritzker, Condoleezza Rice, Senator Tim Scott, Anne-Marie Slaughter, Torrey Taussig, and Philip Zelikow.
Topic:
Security, Foreign Policy, Diplomacy, Economics, International Cooperation, Race, Military Strategy, Democracy, and Strategic Stability
Political Geography:
China, Asia, North America, and United States of America

333. The Effects of India’s COVID-19 Lockdown on Critical Non-COVID Health Care and Outcomes

Author:
Radhika Jain and Pascaline Dupas
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
India’s COVID-19 lockdown is widely believed to have disrupted critical health services, but its effect on non-COVID health outcomes is largely unknown. Comparing mortality trends among dialysis patients in the eight months around the lockdown with the previous year, we document a 64% increase in mortality between March and May 2020 and an estimated 22-25% total excess mortality through July 2020. The mortality increase is greater among females and disadvantaged groups. Barriers to transportation and disruptions in hospital services appear to be the main drivers of increased morbidity and mortality. The results highlight the unintended consequences of the lockdown on critical and life-saving non-COVID health services that must be taken into account in the implementation of future policy efforts to control the spread of pandemics.
Topic:
Public Health, Transportation, Pandemic, COVID-19, and Hospitals
Political Geography:
India and Asia

334. China in One Country: interdependence or globalisation 'with Chinese characteristics'?

Author:
George Magnus
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
Globalisation has faltered, and faces significant political challenges. In both the US and China, voices are calling for a reduction of economic interdependence between the two countries. In the US, this has taken the name of decoupling, in China, self-reliance. At the same time, China’s President, Xi Jinping has vocally championed globalisation in various global fora in recent years. Understanding of China’s systems of government and business, as well as its global interests, is lacking when compared to that of the US. In this Strategic Update, George Magnus investigates what is meant when China’s leadership speaks of globalisation, and what the implications of the answer are for the rest of the world.
Topic:
Foreign Policy, Economics, Globalization, and Leadership
Political Geography:
China, Asia, and United States of America

335. Economic Diplomacy in the 21st Century: Principles and Challenges

Author:
Linda Yueh
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
Economic diplomacy in the 21st century will face a different set of challenges stemming from the changed global economy, US-China tensions, as well as a backlash against globalisation, among others. Therefore, the conduct of economic diplomacy, i.e., how a country manages its foreign economic relations including trade and investment, must adapt. The framework for economic diplomacy should seek to balance commercial openness with strategic foreign policy aims, broadly defined. It should situate a country within the 21st century global economy with its new drivers, promote a rules-based system in order to mitigate Great Power tensions, and recognise that all foreign economic policy is ultimately also domestic. There is no one general approach but there are several principles, each with their own challenges, for governments to consider, which is set out in this Strategic Update.
Topic:
Foreign Policy, Investment, Trade, and Economic Diplomacy
Political Geography:
China, Asia, North America, and United States of America

336. Axis of Convenience? Israel and China in a multipolar world

Author:
Vuk Vuksanovic
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
Despite being one of the most important allies of the United States in the Middle East, Israel has been building a new partnership with China since 2013. The repositioning is motivated by changes in the country’s strategic environment, its crisis in the relationship with the United States during the Obama years, and its economic and infrastructural needs. However, Israel is still deeply anchored in its alliance with the United States, which will impose limitations on how far its partnership with China can grow. For now, nevertheless, this relationship attests to the new geopolitical reality of the 21st century in which even the most ardent US allies, such as Israel, must hedge their bets and diversify their partnerships by engaging China.
Topic:
Partnerships, Alliance, Strategic Competition, and Multipolarity
Political Geography:
China, Middle East, Israel, Asia, and United States of America

337. China and COVID-19: a shock to its economy, a metaphor for its development

Author:
George Magnus
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The Chinese government’s draconian actions to control the coronavirus seem to be producing a remarkable economic contraction. As so many are unable to attend or resume work at the moment, the government’s palliative economic measures may gain little traction. Although the demand shock will eventually fade, other longer-term issues will surely endure. The supply shock will be less obvious but more corrosive. The government’s questionable conduct in managing the public health crisis has unveiled significant features about governance in Xi’s China that can be mapped on to China’s development. While this crisis is the biggest challenge Xi has faced, there is little doubt that he will survive it, champion the party’s role in the nation’s rescue, and feel emboldened to continue with his authoritarian governance. Yet it is this that, in the long run, will prove incompatible with China’s economic development ambitions.
Topic:
Development, Economy, COVID-19, and Health Crisis
Political Geography:
China and Asia

338. China versus the US in the Pandemic Crisis: The State-People Nexus Confronting Systemic Challenges

Author:
Dic Lo and Yuning Shi
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
The control of the COVID-19 crisis requires strong and rapid actions of each nation- state, but multiple facets of the ineffectiveness have been exposed so far. This paper seeks to characterise and assess the handling of the public health emergency in China and the United States. The exposition focuses on the governance structures and state-people dynamics of the two countries, drawing on the framework of “exit, voice, and loyalty” developed by Albert Hirschman. The paper concludes that the Chinese “tough model” appears to have facilitated a virtuous circle of the state- people interaction, whereas the US “loose model” has led to a vicious circle.
Topic:
Governance, Hegemony, Public Health, Pandemic, COVID-19, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

339. Parameters for Developing Cross-border Sustainable Infrastructure

Author:
Jyotsna Bapat
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Gateway House: Indian Council on Global Relations
Abstract:
India, till 2014, had bilateral trade and infrastructure agreement treaties with its Asian neighbours. India, through the Ministry of External Affairs (MEA), has been investing in trilateral and multilateral infrastructure projects since 2014, with its littoral (coastal) and inland neighbours in Asia. While it demonstrates the growing potential of infrastructure diplomacy, it also puts India in direct competition with China, which through its own infrastructure initiative, has been involved in building physical infrastructure in India’s neighbours. This paper argues that taking into account environmental security as a parameter for developing cross border sustainable infrastructure, during signing of MoUs in these treaties, will provide a unique opportunity for India to develop norms for environmental and social security framework/policy, training assistance, and capacity building in its funded projects in other countries.
Topic:
Environment, Infrastructure, Geopolitics, Multilateralism, and Social Security
Political Geography:
South Asia, India, and Asia

340. Mapping the International Presence of the World’s Largest Arms Companies

Author:
Lucie béraud-Sudreau, Alexandra Marksteiner, Diego Lopes da Silva, Nan Tian, Alexandra Kuimova, Pieter D. Wezeman, and Siemon T. Wezeman
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
Arms companies have a presence that reaches far beyond the countries in which they are headquartered. This is the result of the international­ization of the arms industry. This paper uses a new data set to examine the results of this internationalization in terms of the international presence of major arms companies. It presents a mapping comprising 400 foreign entities linked to the world’s largest arms companies. The mapping shows that the international presence of major arms companies continues to be influenced by geopolitical divisions and ties, and generally mirrors the geographical locations of the world’s biggest arms import markets. It also reveals that the international presence of major Chinese arms companies and the one Russian company included in the study remains limited. Appendix A lists the 25 largest arms-producing and military services companies in the world, ranked by their arms sales in 2019.
Topic:
Arms Control and Proliferation, Military Spending, and Manufacturing
Political Geography:
Russia, China, Eurasia, and Asia

341. China Global Security Tracker, No.6

Author:
Helena Legarda
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
China hits back after NATO calls it a security challenge, dormant Chinese hacking group resumes attacks, and more.
Topic:
Security, Defense Policy, NATO, and Diplomacy
Political Geography:
United States, China, Europe, North Atlantic, Beijing, Asia, Vietnam, and Sri Lanka

342. European defence policy in an era of renewed great-power competition

Author:
Douglas Barrie, Lucie béraud-Sudreau, Henry Boyd, Nick Childs, Bastain Giegerich, James Hackett, and Meia Nouwens
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
In 2019, European governments’ combined defence spending, when measured in constant 2015 US dollar terms, surpassed the level reached in 2009, before the financial and economic crisis led to a series of significant defence-spending cuts. However, a different strategic paradigm – one that Europe is struggling to adjust to and which is once more a concern for European governments – has re-appeared in this past decade: great-power competition. Russia attempted to change international borders in Europe through the use of force in 2014 by annexing Crimea and continues to support an armed insurgency in eastern Ukraine. Moscow’s challenge to Euro-Atlantic security exists in multiple dimensions: as both a conventional military and also a hybrid-warfare issue, with Russia working to dislocate existing societal alignments and disrupt political processes in Western states. The poisoning of a former Russian intelligence officer (and of his daughter) in the United Kingdom, attributed by the British government to Russia, underlines further how much the character of conflict has changed. How to manage the challenge Russia poses without simply reverting to Cold War logic remains a worrying problem for governments in NATO and the European Union member states. Meanwhile, European security establishments are beginning to recognise the growing political, economic and military influence of a rising China. Although less of an immediate challenge, China’s growth in these areas has possible profound consequences in the long run. Indeed, in December 2019, NATO declared: ‘We recognise that China’s growing influence and international policies present both opportunities and challenges that we need to address together as an Alliance.’2 For the United States, China has already become the pacing military threat. The US Indo-Pacific Strategy Report, released in June 2019, opens with the assertion that ‘the Indo-Pacific is the Department of Defense’s priority theater’. In other words, the European theatre is not. European analysts and officials have begun to wonder whether the US might begin to see Europe through an Asian lens, seeking to generate European commitments to the Indo-Pacific region, or at the very least getting Europeans to take on greater responsibility for their own security and thereby freeing up US resources. Although there will be some elements of the US military presence in Europe that are indispensable to US military action in other regions of the world, that might not be enough to sustain Washington’s firm commitment to European security in the future, regardless of who occupies the White House. Significantly, not even the US has the capability to fight two major wars simultaneously any more, meaning binary choices regarding focus are inevitable. As some observers have argued, Europeans need to urgently assess what Washington’s choices in this regard – and their implications for Europe – might look like. Considering both how to deter Russia and what a European contribution to containing China might entail represents a major challenge for Western European nations, which have relegated defence to a secondary position, as almost a discretionary activity. European states partially demobilised in the 1990s and early 2000s, intellectually and in terms of their force structures, in response to the end of the Cold War. For example, according to IISS data, in 1990 West Germany alone was thought to be able to field 215 combat battalions and the UK 94. Today it is a fraction of that. However, security challenges relating to regional instability, crisis management and transnational terrorism – which all dominated the previous two decades – have not disappeared. On the contrary, all these still demand attention and the investment of European resources. While there is a growing recognition among Europe’s analytical community, and some governments, that things cannot simply continue as before in terms of regional security and defence, coherence and resolve among core actors in the Euro-Atlantic sphere have weakened. The US administration has intensified its call for better transatlantic burden sharing, at the same time displaying a cavalier attitude to the collective-defence commitment enshrined in NATO. France’s President Emmanuel Macron has also expressed severe doubts about the viability of NATO’s collective-defence mission. In addition, the British decision to leave the European Union in 2020 implies that the EU has lost one of its most militarily experienced and one of its most capable member states. There is a tendency among many observers and some politicians to argue that European NATO and EU member states need to clarify the political dimension of their defence ambition, via-à-vis greater strategic autonomy, before resolving the problem of how to meet this ambition militarily, at what cost and in what time frame. Indeed, at times, the debate about European strategic autonomy seems to focus more on the degree of independence from the US that its various proponents would like to achieve and less on the military requirement that autonomy is meant to respond to. It is now widely accepted across Europe that Europeans need ‘to do more’ for their own security and defence. Most of the intellectual energy allocated to this aspiration is spent on achieving better coordination – and even a level of integration – among European armed forces. This is useful, but only if it is directed at building capability to provide for the defence of Europe. The existing military capabilities of the European NATO member states fall short when compared to the force requirements generated by the political–military level of ambition as defined by NATO, or for that matter the EU.5 However, this should not be an excuse to lower the level of ambition, nor should the assumption that Europeans are unable to defend themselves be declared an inevitability. Defence output is the result of political, financial and military choices by governments. To think systematically about the challenge of providing capabilities that can meet Europe’s emerging military requirements, The International Institute for Strategic Studies and the Hanns Seidel Foundation convened a group of thinkers and practitioners from Germany and the UK. The group took seriously the US assertion that Europe needs to be able to provide for its own defence. If Europeans can achieve this, they will be valuable partners to the US in upholding and strengthening the liberal international order on which Euro-Atlantic prosperity and security depend. Meeting twice in 2019, the group discussed threat assessments, debated European capability gaps and scoped potential approaches to addressing them. The following pages draw on the group’s deliberations but do not represent a consensus position.
Topic:
Defense Policy, NATO, Regional Cooperation, European Union, and Military Spending
Political Geography:
Russia, Europe, North Atlantic, Asia, and North America

343. CoronaShock and Socialism

Author:
Tricontinental: Institute for Social Research
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
In late December 2019, the Wuhan Centre for Disease Control and Prevention (CDC) in central China’s Hubei Province detected cases of pneumonia of an unknown cause. In the first few days of January 2020, Chinese authorities were regularly informing the World Health Organisation (WHO) as well as other major countries and regions with close ties to China’s mainland, such as Hong Kong, Macao, and Taiwan about the outbreak. On 5 January, the WHO released its first briefing on a ‘pneumonia of unknown cause’ in Wuhan. Little was known about the virus, neither how to properly understand it nor whether transmission could occur between humans. The genome sequence for the novel coronavirus (SARS-CoV-2) was published by the Global Initiative on Sharing All Influenza Data (GISAID) on 12 January. Dr. Zhong Nanshan, a leading Chinese pulmonologist who is advising the Chinese government on this pandemic, confirmed human-to-human transmission of the novel coronavirus on 20 January. As soon as it was clear that this virus could be transmitted between humans, the Chinese authorities acted. Wuhan, a city of 11 million people, was shut down, the scientific establishment in China – and its collaborators around the world – went to work to understand the virus and the disease (COVID-19), and medical personnel in China rushed to be trained and to help break the chain of the infection. Inside Wuhan, the neighbourhood committees, which include members of a range of other associations, Communist Party cadres, and volunteers of all kinds, hastened to assist with temperature checks, food and medicine distribution, and assistance in hospitals. After ten weeks in lockdown, Wuhan opened once more on 8 April. On 15 May, the authorities started to test all the residents of Wuhan once again in order to protect public health and to resume social and economic activities (China shared the results of this test to aid with studies on the feasibility of the herd immunity theory). On 30 January, WHO Director-General Dr. Tedros Adhanom Ghebreyesus declared that the outbreak constitutes a Public Health Emergency of International Concern (PHEIC). From its Geneva headquarters, the WHO sent up a flare which effectively read: a highly contagious virus has been detected that requires stringent measures of tests, physical distance, and aggressive sanitation. At this point, in the aftermath of 20 January, a gulf opened between the capitalist states and the socialist states. Our analysis shows four main areas of differentiation between the socialist and capitalist approach to the virus. The socialist approach is based on: Science-based government action Public sector production of essential materials Public action mobilised to facilitate social life Internationalism In the capitalist states (such as the United States, Brazil, and India), the governments have instead operated in a hallucinatory manner, pretending that the virus is either not real or not contagious and hoping that some extraneous factor would protect their citizens from its dangers. For-profit sector firms have failed to provide the necessary equipment, while public action has been hard to galvanise in atomised societies that lack the habit of organisation and struggle. Finally, to cover up their incompetence, the ruling political class in these states has resorted to stigmatisation and jingoism, using – in this case – the lethal combination of racism and anti-communism to blame China. In this report, we look at three countries (Cuba, Venezuela, and Vietnam) as well as one state (Kerala, India) to investigate how these socialist parts of the world have been able to handle the virus more effectively.
Topic:
Governance, Capitalism, Pandemic, COVID-19, and Socialism
Political Geography:
India, Asia, Brazil, Vietnam, South America, Cuba, Caribbean, Venezuela, North America, and United States of America

344. China and CoronaShock

Author:
Tricontinental: Institute for Social Research
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
This is the first in a multiple part series of studies on CoronaShock. It is made up of three articles on how China identified the novel coronavirus and then how the Chinese government and Chinese society fought against its wider diffusion. The report is researched and written by Vijay Prashad (Director of Tricontinental: Institute for Social Research), Du Xiaojun (a translator and linguist from Shanghai), and Weiyan Zhu (an attorney from Beijing). These articles first appeared through the Globetrotter service of the Independent Media Institute. The paintings in this booklet have been done by Li Zhong, an artist from Shanghai. At the end of the booklet is an interview with Li Zhong conducted by Tings Chak (Lead Designer at Tricontinental: Institute for Social Research).
Topic:
Governance, Public Health, Pandemic, and COVID-19
Political Geography:
China and Asia

345. One Hundred Years of the Communist Movement in India

Author:
Tricontinental: Institute for Social Research
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Dossier no. 32 provides a brief introduction to the history of the communist movement in India, which turns one hundred years old on 17 October 2020. Founded by a handful of Indian freedom fighters who were inspired by the October Revolution, the Indian communist movement has a history of glorious struggles and significant achievements. The communists in India have tirelessly worked to advance the rights of the working people, and to demonstrate the possibility of a future without the exploitation of human beings by human beings.
Topic:
Communism, Social Movement, Radicalization, and Activim
Political Geography:
India and Asia

346. People’s Polyclinics: The Initiative of the Telugu Communist Movement.

Author:
Tricontinental: Institute for Social Research
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
The Indian Communist movement has experimented with various forms of people’s polyclinics, which provide free or reduced-cost health care to anyone. The epicentre of this initiative has been in the Telugu-speaking region of India, where the Nellore People’s Polyclinic alone treats 1,000 patients per day at rates 40% lower than corporate hospitals and has trained over five hundred doctors who now provide health care across the region. Our Tricontinental: Institute for Social Research Dossier no. 25 focuses on the history of the polyclinics in this region.
Topic:
Communism, Health, Community, and Medicine
Political Geography:
India and Asia

347. Regional Financial Arrangements and the International Monetary Fund: Sustaining Coherence in Global Financial Governance

Author:
C. Randall Henning
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Cooperation and competition among regional financial arrangements (RFAs) and the International Monetary Fund (IMF) increasingly determine the effectiveness of the global financial safety net (GFSN), which many observers fear is becoming fragmented. Overlap among these crisis-fighting institutions has important benefits but also pitfalls, including with respect to competition, moral hazard, independence, institutional conflict, creditor seniority and non-transparency. The study reviews the RFAs in Latin America, East Asia and Europe to assess their relationships with the IMF and address these problems. Among other things, it concludes: institutional competition, while harmful in program conditionality, can be beneficial in economic analysis and surveillance; moral hazard depends critically on institutional governance and varies substantially from one regional arrangement to the next; secretariats should be independent in economic analysis, but lending programs should be decided by bodies with political responsibility; and conflicts among institutions are often resolved by key member states through informal mechanisms that should be protected and developed. Findings of other recent studies on the GFSN are critiqued. Architects of financial governance should maintain the IMF at the centre of the safety net but also develop regional arrangements as insurance against the possibility that any one institution could be immobilized in a crisis, thereby safeguarding both coherence and resilience of the institutional complex.
Topic:
Governance, Surveillance, Strategic Competition, and IMF
Political Geography:
Europe, Middle East, Asia, South America, Australia, North America, and Global Focus

348. Competing in Artificial Intelligence Chips: China’s Challenge amid Technology War

Author:
Dieter Ernst
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This special report assesses the challenges that China is facing in developing its artificial intelligence (AI) industry due to unprecedented US technology export restrictions. A central proposition is that China’s achievements in AI lack a robust foundation in leading-edge AI chips, and thus the country is vulnerable to externally imposed supply disruptions. The COVID-19 pandemic has further decoupled China from international trade and technology flows. Success in AI requires mastery of data, algorithms and computing power, which, in turn, is determined by the performance of AI chips. Increasing computing power that is cost-effective and energy-saving is the indispensable third component of this magic AI triangle. Research on China’s AI strategy has emphasized China’s huge data sets as a primary advantage. It was assumed that China could always purchase the necessary AI chips from global semiconductor industry leaders. Until recently, AI applications run by leading-edge major Chinese technology firms were powered by foreign chips, mostly designed by a small group of top US semiconductor firms. The outbreak of the technology war, however, is disrupting China’s access to advanced AI chips from the United States. Drawing on field research conducted in 2019, this report contributes to the literature by addressing China’s arguably most immediate and difficult AI challenges. The report highlights China’s challenge of competing in AI, and contrasts America’s and China’s different AI development trajectories. Capabilities and challenges are assessed, both for the large players (Huawei, Alibaba and Baidu) and for a small group of AI chip “unicorns.” The report concludes with implications for China’s future AI chip development.
Topic:
Energy Policy, Science and Technology, Sanctions, and Artificial Intelligence
Political Geography:
United States, China, Asia, and North America

349. Toward a Robust Architecture for the Regulation of Data and Digital Trade

Author:
Dan Ciuriak and Maria Piashkina
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The rapid digital transformation occurring worldwide poses significant challenges for policy makers working within a governance framework that evolved over centuries. Domestic policy space needs to be redefined for the digital age, and the interface with international trade governance recalibrated. In this paper, Dan Ciuriak and Maria Ptashkina organize the issues facing policy makers under the broad pillars of “economic value capture,” “sovereignty” in public choice and “national security,” and outline a conceptual framework with which policy makers can start to think about a coherent integration of the many reform efforts now under way, considering how policies adopted in these areas can be reconciled with commitments under a multilateral framework adapted for the digital age.
Topic:
International Trade and Finance, Reform, Digital Economy, Multilateralism, and Digitization
Political Geography:
United States, China, Europe, Asia, and North America

350. Water Security in Southeast Asia: Regional, National, and Sub-national Challenges

Author:
Christopher Chen and Angelo Paolo L. Trias
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
Water is a fundamental element of survival and growth on Earth. As a prerequisite for life and an important economic resource, it supports all aspects of everyday activity. Ensuring that water is available, accessible and safe for current and future generations is among humanity’s greatest challenge. One of the most important Non-Traditional Security (NTS) challenges facing Southeast Asia is water security. This NTS Insight explores water security issues in Southeast Asia and examines the ways it threatens states and societies. While water security challenges are not new in the region, the nature of issues are changing, making it important to assess how such threats are defined, negotiated, and managed. The NTS governance process begins with identifying and understanding NTS challenges, and ways they are securitised. By looking at case studies at the sub-national, national and regional level, this paper seeks to present some of the major water security issues in the region, how they affect states and societies, and why they merit urgent attention and resources. This Insight explains why addressing sub-national water security challenges require consultative and participatory approaches that facilitate open democratic dialogue and local collective action. It will also lay out how deliberate planning, careful implementation, and judicious monitoring of water management policies are needed at both the national and regional levels. Further, while it is not easy to reconcile developmental goals with environmental protection, the gravity of the situation requires more preventive diplomacy and subregional collaborative mechanisms which are geared towards averting water conflicts. Overall, it aims to help formal and informal NTS actors working through various channels to gain further understanding of emerging water security challenges in Southeast Asia.
Topic:
Security, Environment, Natural Resources, and Water
Political Geography:
Asia and Southeast Asia

351. Domestic Coal: A Hindrance to Renewable Energy Development?

Author:
Margareth Sembiring
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
Low carbon transition is an important climate change mitigation measure. It entails a switch from fossil fuels to renewable sources. The presence of cost-competitive domestic coal in coal-producing countries like Indonesia is often cited as a major stumbling block to renewable energy development. This article aims to probe the cheap domestic coal argument. It does so by examining the changing share of renewable energy sources in electricity production over a certain timeframe. The study finds mixed observations across important coal-producing countries. It thus argues that there is a need to go beyond the low-cost domestic coal axiom and examine deeper underlying factors that support or hinder renewable energy development in coal-producing countries.
Topic:
Climate Change, Energy Policy, and Coal
Political Geography:
Asia and Southeast Asia

352. North Korea’s Nuclear Program: The Early Days, 1984–2002

Author:
Torrey Froscher
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Nonproliferation Policy Education Center
Abstract:
The North Korean nuclear program has been a major intelligence and policy challenge for more than 30 years. Former Secretary of Defense Bill Perry described the problem as “perhaps the most unsuccessful exercise of diplomacy in our country’s history.”1 Donald Gregg, who was CIA station chief in Seoul as well as US ambassador to South Korea, called North Korea the “longest running intelligence failure in the history of American espionage.”2 To be fair, Gregg was referring specifically to a lack of success in recruiting human sources—not necessarily errors in specific or overall assessments. Nonetheless, his comment underscores the difficulty of figuring out what North Korea is up to. In 2005, the Commission on the Intelligence Capabilities of the United States Regarding Weapons of Mass Destruction (WMD), which was convened to investigate the failed 2002 national intelligence estimate on Iraqi WMD capabilities, indicated that we know “disturbingly little about the weapons programs and even less about the intentions of many of our most dangerous adversaries,”3 presumably including North Korea. Today we know a lot more about North Korea’s nuclear program— but mostly it is what they want us to know. Pyongyang has conducted six nuclear tests. We know that North Korea has nuclear weapons, a significant fissile material production capacity, and an ambitious nuclear and missile development effort. These programs are completely unconstrained. The United States has tried many approaches to deal with the problem over the years, and intelligence has played a key role in support. Are there lessons to be learned from this experience? Obviously, it’s a very big question and I will sketch out just a few thoughts, mostly from an intelligence perspective: What we knew and when and how we thought about the problem. North Korea was one of many issues I worked on as an analyst and manager in CIA until my retirement in 2006. The views that follow are my own, of course, and the specific information is drawn from the extensive public literature on the issue, as well as declassified intelligence documents.
Topic:
Diplomacy, Intelligence, Nuclear Weapons, and History
Political Geography:
Asia, North Korea, and United States of America

353. South Korea's 5G Ambitions

Author:
Clara Gillespie
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Under President Moon Jae-in, South Korea has set an ambitious target to move from being “first in the world” in the race to 5G to “first in global quality.” Yet, while a range of industry and government stakeholders are investing heavily in making this vision a reality, a number of factors are likely to weigh on whether or not these efforts yield significant results. These include uncertainties about how to further accelerate development in ways that lead to better returns on investments, and about how to navigate complex geopolitical considerations, including ongoing debates about Huawei’s involvement in 5G network infrastructure. Each of these areas will, in turn, require domestic stakeholders to make complex assessments about potential tradeoffs and risks. Thus, this paper assesses South Korea’s emerging 5G era at the one-year mark, and highlights key successes, setbacks, and ongoing challenges. Building on these findings, the paper concludes by offering several potential scenarios for future development, and suggestions for ways forward.
Topic:
Economics, Science and Technology, and 5G
Political Geography:
Asia and South Korea

354. A New Horizon for the Korea-India Strategic and Sustainable Partnership under Korea's New Southern Policy

Author:
Choong Yong Ahn
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
India and South Korea, Asia’s third- and fourth-largest economies, respectively, established a Comprehensive Economic Partnership Agreement (CEPA) in 2010 and upgraded their relationship to a special strategic partnership in 2015. South Korean President Moon Jae-in’s “New Southern” policy and Indian Prime Minister Narendra Modi’s “Act East” policy share important objectives and values through which Korea and India can maximize their potential to pursue high tech-oriented, win-win growth. Both countries face the great challenge of diversifying their economic partners in their respective geo-economic domains amid newly emerging international geo-economic dynamics as well as rapidly changing Fourth Industrial Revolution technologies. Given the two countries’ excessive dependence on the Chinese market and potential risks and uncertainties involved in the U.S.-China trade war and related security conflicts, South Korea and India need to deepen bilateral linkages in trade, investment, and cultural contacts. South Korea-India cooperation is crucial in promoting plurilateralism, prosperity, and harmony in East Asia. This paper suggests a specific action agenda to fulfill mutual commitments as entailed in the “Special Strategic Partnership” between these two like-minded countries of South Korea and India.
Topic:
International Relations, Foreign Policy, Science and Technology, Bilateral Relations, and Industry
Political Geography:
United States, China, South Asia, India, Asia, South Korea, and Korea

355. Framing an Indo-Pacific Narrative in India-South Korea Ties

Author:
Jagannath P. Panda
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Both India’s and South Korea’s strategic choices are deeply influenced by the rapidly evolving Indo-Pacific construct, particularly amid a mounting U.S.-China rivalry. With India’s “Look/Act East” policy and South Korea’s “New Southern Policy” offering a perfect stage for deepened mutual cooperation, both nations need to further their relations to build Asia’s future while advancing their respective national interests. With both countries following stringent foreign policies as a result of the actions of their immediate neighbors, they present a geopolitically strategic complementarity for their relationship to prosper and emerge as one of the most important relationships in the region. Seoul’s hesitation to overtly embrace the “Indo-Pacific” concept is not really a barrier; rather a geo-political overture to discard the balance of power politics and pursue an autonomous foreign policy. India’s preference for the “Indo-Pacific” is equally based on strategic autonomy, imbibing universal values and an inclusive regional order. Both countries emphasize a free and rules-based Indo-Pacific and have immense potential to establish security and connectivity partnerships as the keystone of their bilateral ties. With India and South Korea understanding the economic importance versus security ramifications of China, and with Japan’s reemergence as a key regional, if not global actor, both countries need to bring serious strategic intent to their relationship. Making use of the ASEAN platform and bilateral dialogues, South Korea and India have the potential to become one of the strongest Indo-Pacific partners of the 21st century
Topic:
International Relations, Foreign Policy, Bilateral Relations, Partnerships, and Geopolitics
Political Geography:
China, South Asia, India, Asia, South Korea, Korea, United States of America, and Indo-Pacific

356. Japan and the Visegrad 4: The Unsensational Strategic Partners

Author:
Rudolf Furst
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Institute of International Relations Prague
Abstract:
The Euro-Japanese rapprochement stimulates the Japanese interest in the new EU member states, which are then matched with Japanese investments and Japan’s global trade strategy. The V4 countries benefit from their geographical position, existing infrastructure and political stability, industrial tradition, and low labour costs, emphasizes Rudolf Fürst.
Topic:
Economics, Bilateral Relations, Labor Issues, European Union, Political stability, and Industry
Political Geography:
Japan, Europe, and Asia

357. The case for NATO’s global partnership with India

Author:
Abdurrahman Utku Hacioglu
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
NATO Defense College
Abstract:
India is a country rarely discussed in any of NA- TO’s operational activities, regional dialogues, or global partnerships. This rarity, however, is likely to change because of shifting political and economic trends, emerging threats from outside NATO’s tradi- tional Euro-Atlantic area, and the necessity to adapt to changing circumstances. Taking account of the emerging multi-polarity in the Asia-Pacific and the US resistance to change, India will become a key country to counter-balance China’s and Russia’s growing influ- ence, to project stability and strengthen security in the Asia-Pacific region in the near future. NATO should take advantage of the opportunity, consider India as a key strategic partner, and include India within NA- TO’s growing strategic partnership framework as a “Partner Across the Globe”.
Topic:
Defense Policy, NATO, Regional Cooperation, and Collective Defense
Political Geography:
Russia, North Atlantic, India, Asia, and North America

358. Projecting Stability to the South: NATO’s other challenge

Author:
Chloe Berger
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
NATO Defense College
Abstract:
In the spring of 2020, the Atlantic Alliance’s “large pe- riphery” to the South, which extends from the Sahel to the Asian borders of the Arabian Gulf, remains in a state of dangerous instability. The health and con- tainment measures taken by the authorities against the COVID-19 crisis have put popular claims to rest. The case of Lebanon shows, however, that the urgency of the pandemic has not made the demands of the pop- ulation disappear. Beyond managing the health crisis, there is no doubt that the future of the region’s lead- erships1 will largely depend on their ability to miti- gate both the socio-economic consequences of the COVID-19 crisis, as well as the political ones. In this “broader MENA” region, whose confines and internal cohesion are unstable, the challenges are ever more complex. Despite the relative consensus between NATO and its Mediterranean Dialogue (MD) and Is- tanbul Cooperation Initiative (ICI) partners on the deep-rooted causes of the structural instability, the po- tential solutions are much debated. NATO’s “Project- ing Stability” concept raises as many questions with the partners, as it does within the Alliance, since a desired end-state has yet to be defined. While all efforts con- tributing to an increase in stability are a priori welcome, the Alliance and its partners must agree on the conditions of stability in order to identify and implement effective means suited to the local context.
Topic:
NATO, Regional Cooperation, Military Strategy, and Collective Defense
Political Geography:
Europe, North Atlantic, Asia, North America, and Gulf Nations

359. US Nonproliferation Cooperation with Russia and China

Author:
Robert Einhorn
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
James Martin Center for Nonproliferation Studies
Abstract:
The United States has at times worked cooperatively with Russia and China to promote shared nonproliferation objectives. But with no end in sight to the current precipitous decline in Washington’s bilateral relations with Moscow and Beijing, constructive engagement on today’s nonproliferation challenges has become increasingly problematic. Unless the United States and its two great power competitors can find a way to carve out areas of cooperation in otherwise highly adversarial relationships, the remarkably positive record of international efforts to prevent additional countries from acquiring weapons will be difficult to sustain. From sometimes partners to frequent foes, this Occasional Paper examines the history of US cooperation with Russia and China on key issues including Iran, North Korea, Syria, international nonproliferation mechanisms, and nuclear security. It also outlines the obstacles to future nonproliferation cooperation, as well as the growing proliferation threats that require such cooperation. Most importantly, it identifies several possible areas where the United States can hope to find common ground with both countries. With relationships with Russia and China reaching new lows and unlikely to improve for the foreseeable future, finding a way to for the United States to work cooperatively with both countries will not be easy. Bridges to constructive engagement have been burned and will be difficult to rebuild. However, the author points out that constituencies for cooperation remain in all three countries, including in government bureaucracies. “As hard as it may be to find common ground in otherwise highly adversarial relationships, it is imperative that the US administration in office after January 2021 make every effort to do so. Cooperation with America’s two great power rivals will not always guarantee success, but the absence of such cooperation will surely increase the risk of failure.”
Topic:
Diplomacy, International Cooperation, Nuclear Weapons, Military Strategy, and Nonproliferation
Political Geography:
Russia, China, Europe, Asia, United States of America, and North America

360. China’s BRI: The Development-Finance Dimension

Author:
David Gordon and Haoyu Tong
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
This report is the first of two synthesising the findings of a major research workshop convened in Washington DC on 26 June 2019, by The International Institute for Strategic Studies (IISS), as part of its multi-year project on China’s Belt and Road Initiative (BRI). The IISS commissioned ten papers that addressed development-finance and security issues in the BRI, prepared by leading scholars and policy practitioners. They were joined at the workshop by more than two dozen other experts on China’s international behaviour. This first report focuses on development-finance issues in the BRI; the second will address security issues broadly cast. China’s Belt and Road Initiative is now six years old. Announced by (then) newly ensconced President Xi Jinping, it has since become the centrepiece of Xi’s ambitious drive to make China a more active global leader, and to break free from the cautious approach set out more than 30 years earlier by then-paramount-leader Deng Xiaoping – that China’s strategic approach should be to ‘hide its capacities and bide its time’. At the Chinese Communist Party’s (CCP) 19th Congress in 2017, the BRI was integrated into the party’s charter. Much of the early analytical work on the BRI has focused on questions surrounding China’s motivations – economic or geopolitical. Is Xi’s initiative a response to changing domestic economic circumstances? Or does it signal evidence of China’s intent to build a twentyfirst- century imperium modelled on the post-war United States-led experience, more than on European colonial or earlier Asian empires? The emerging consensus on this question is that it has been a bit of both. At the same time, an often overlooked factor is Xi’s constant need to further consolidate his power inside China, as the economics versus geopolitics debate about the motivations for the BRI gives too little attention to the more purely political dimension. The BRI cannot be separated from Xi’s efforts to cast himself domestically as an exceptional leader for an exceptional moment in China’s history.
Topic:
Development, Globalization, Infrastructure, Hegemony, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

361. Assessing Chinese defence spending: proposals for new methodologies

Author:
Meia Nouwens
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
Little is known about how China’s growing defence budget is allocated, particularly following recent structural reforms. In the absence of publicly available information and new research on Chinese defence economics, outside observers consider the official data to be incomplete. Publications addressing Chinese defence spending often claim that ‘it is widely believed’ official Chinese statistics exclude key categories of military-related spending. For instance, in 2003, one analyst wrote that ‘it is widely accepted that the official budget released by the Chinese every year accounts for only a fraction of actual defense spending. In particular, whole categories of military expenditure are believed to be missing from official figures.’ The methodologies employed by research institutions, such as the International Institute for Strategic Studies (IISS) and the Stockholm International Peace Research Institute (SIPRI), to estimate China’s total military spending date back to the late 1990s. Furthermore, existing estimates do not take into account China’s recent military reorganisation under President Xi Jingping’s direction, which began in 2015, and a wide range of defence reforms. For example, in 2018, the Chinese authorities integrated the China Coast Guard (CCG), the People’s Armed Police (PAP) and the maritime militias into the Central Military Commission’s (CMC’s) command structure. It is currently unclear how this restructuring has affected China’s defence spending. In addition, China’s defence spending could have been affected by the increasing fulfilment of weapons procurements by domestic firms. Therefore, a reassessment of China’s defence spending and the methodologies employed is required.
Topic:
Defense Policy, Military Strategy, Military Affairs, and Budget
Political Geography:
China and Asia

362. The PLA’s Mask Diplomacy

Author:
Helena Legarda
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
Much has been written about China’s “mask diplomacy” during the Covid-19 pandemic. As the epicenter of the pandemic shifted from China to the rest of the world, China’s government sent planeloads of masks and medical supplies to hard-hit countries around the world. Beijing’s “mask diplomacy” sought to bolster China’s image as a responsible global power and was widely perceived as part of Beijing’s attempt to control the narrative around the pandemic and distract from its initial cover-up. But while all the attention focused on the Chinese government’s actions, the People’s Liberation Army (PLA) was carrying out its own, much quieter version of mask diplomacy. According to MERICS data, in the three months between March 13 and June 19, the PLA sent military planes full of medical material to 46 countries. The material, which mostly consisted of masks and personal protective equipment (PPE), was invariably donated to the recipient countries’ armed forces or defense ministries. The PLA also set up video conferences with foreign militaries to share its experiences of fighting the Covid-19 outbreak and strengthen military-to-military relations. At first glance, the Chinese government’s mask diplomacy campaign and the PLA’s look remarkably similar. However, a number of differences suggest there were different goals and strategies at play.
Topic:
Diplomacy, Public Policy, Pandemic, and COVID-19
Political Geography:
China and Asia

363. China’s BRI: The Security Dimension

Author:
David F Gordon, Haoyu Tong, and Tabatha Anderson
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
In this second report published by the IISS Belt and Road Initiative (BRI) Project under the Geo-Economics, Geopolitics and Strategy Programme, the authors examine a range of security-related challenges that the BRI confronts as it expands into diverse geographies to China’s west and south. The report explores the risks in operating across environments fraught with political, economic and social instability. Beyond this, it delves into the actual and potential challenges that the BRI faces from Islamic extremism and terrorism. The report also assesses the ways in which the Maritime Silk Road (MSR) fits into China’s growing strategic interests in Southeast Asia, and the development of the Digital Silk Road (DSR) at the forefront of the technological and geopolitical competition between China and the United States. Finally, the report explores the China–Pakistan Economic Corridor (CPEC) as a case study of the security risks and governance challenges present in what is probably the single most important country-wide BRI endeavour.
Topic:
Regional Cooperation, Infrastructure, Hegemony, Digital Economy, Belt and Road Initiative (BRI), and Silk Road
Political Geography:
Pakistan, China, and Asia

364. Defeating Threat Air Defences: the Return of the DEAD

Author:
International Institute for Strategic Studies
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
For the past two decades the US and its allies have faced a very limited surface-to-air threat in wars in which they have engaged. This is now changing as the worsening security environment and the emergence of near-peer rivals once again raises the spectre of a strongly contested air domain. A central element of the renewed challenge is the surface-to-air missile (SAM) system. China and Russia have fielded and continue to develop SAM systems across all range categories – and to offer many of these for export – that pose a credible threat to air operations. The US, and to an even greater extent the Europeans, have reduced emphasis and expenditure on what is known as the suppression of enemy air defence (SEAD) role. Counter-insurgency rather than counter-integrated air-defence operations have been the priority since the turn of the century. There is now, however, the renewed challenge of being able to carry out air operations in airspace defended by the latest generations of point-, short-, medium- and long-range SAM systems. Low-observable aircraft only offer a partial solution, particularly as the US and its allies will operate mixed fleets of stealthy and non-stealthy combat aircraft at least until around the middle of the century. The latter types of aircraft remain at greater risk from SAM threats than low-observable aircraft, and their operational utility will depend partly on the wider capacity to counter surface-based threat missile systems. SEAD is an asset-intensive capability, particularly in the early days of a conflict, and has traditionally involved dedicated platforms as well as fighter ground-attack aircraft. In SEAD operations in the 1990s, such as Operation Allied Force during the 1999 Kosovo conflict, up to one-third of strike missions were tasked against ground-based air defences. While the force mix will change as uninhabited systems are increasingly adopted in the inventory, a variety of crewed and uninhabited aircraft and associated weaponry will still be required for the task, and will be required in numbers greater than are available in current inventories if faced by a peer or near-peer threat. Collating what is known as an electronic order of battle against peer and near-peer rivals should once again become a priority, as should the capacity to counter, disable or destroy surface-to-air threat systems.
Topic:
Foreign Policy, Defense Policy, Military Strategy, and Missile Defense
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

365. The impact of COVID-19 on organised crime in the Western Balkans

Author:
International Institute for Strategic Studies
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
The fourth in a series analysing the ways COVID-19 is affecting stability across the world, this paper explores the impact on organised crime in the Western Balkans of the health and economic crisis brought about by the pandemic. Criminal organisations active in the Western Balkans have proved very apt at exploiting the evolution of the pandemic and related government responses to expand their activities regionally and globally. The key role played by the European Union in recent times to promote the rule of law and institutional reforms against organised crime in the region is at risk of setback given its limited economic firepower post-COVID-19 and China’s increasing influence through its economic and investment diplomacy. Law-enforcement agencies will struggle to prevent criminal groups from further infiltrating the region’s economies amid increasing budgetary constraints. Western Balkans governments should use the current challenging circumstances as an opportunity to redefine medium- and long-term priorities in their efforts against organised crime. However, for these efforts to be successful, the sustained political and operational support of other countries will be needed, given the expanding international reach of regional criminal groups.
Topic:
Political stability, Public Health, Pandemic, COVID-19, and Organized Crime
Political Geography:
China, Europe, Asia, and Balkans

366. China's Rise as a Global Security Actor: Implications for NATO

Author:
Meia Nouwens and Helena Legarda
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
In December 2019, for the first time, NATO leaders recognised China as a new strategic point of focus for the Alliance. This reflects growing concern among NATO members surrounding China’s geopolitical rise and its growing power-projection capabilities, as well as the impact that these may have on the global balance of power. Today, China is not only taking a central role in Indo-Pacific security affairs but is also becoming an increasingly visible security actor in Europe’s periphery. As such, the question of how to deal with an increasingly global China has been an important part of Secretary-General Jens Stoltenberg’s NATO 2030 reflection process. China poses a wide range of challenges to NATO. Beijing sees the Alliance as a United States-centric outfit that may be used by Washington to contain China, and has therefore tried to influence individual NATO members’ decisions in order to weaken the Alliance’s unity. Close ties between China and Russia, especially in the security and military spheres, have also been a source of concern for NATO allies. Besides the Chinese and Russian navies’ joint exercises in the Baltic and Mediterranean seas, there is also the potential for the two sides to further coordinate – or at least align their behaviour – on issues of relevance to the Alliance, including hybrid warfare and cyber espionage, arms-control issues, and their approach to Arctic governance, among others. China’s defence spending and military-modernisation process, along with the growing strength of its defence industry, have led to the proliferation of more advanced military platforms around the world. Beijing is also expanding its stockpile of missiles, some of which have the range to reach NATO countries. China’s military-power-projection capabilities have likewise edged towards Europe as the People’s Liberation Army (PLA) has expanded its international presence over the last few years. While NATO allies may have agreed that China presents a number of challenges to the Alliance’s security, they have yet to achieve consensus on how to address them. Some of these issues lie beyond NATO’s traditional areas of competence and will require expertise best provided by partners of the Alliance rather than the Alliance itself. NATO allies will need to prioritise how, when, where and with which partners to use their combined resources to deal with them. At the same time, the Alliance acknowledges that China is not its adversary. NATO thus must find areas of common interest where it can continue to cooperate with China, albeit with a more clear-eyed approach than it has done in the past. Addressing the opportunities and problems posed by China as a cohesive alliance will be more important than ever.
Topic:
Security, Foreign Policy, Defense Policy, NATO, Diplomacy, Regional Cooperation, and Hegemony
Political Geography:
China, Europe, North Atlantic, Asia, and North America

367. Increasing Nuclear Threats through Strategic Missile Defense

Author:
Greg Thielmann
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Center for International and Security Studies at Maryland (CISSM)
Abstract:
Growing concerns about third-country nuclear threats led the United States to withdraw from the ABM Treaty’s constraints on the size and scope of ballistic missile defense arsenals in 2002. Inaccurate and alarmist projections of “rogue state” ICBM threats were critical in winning support for the decision to withdraw from the treaty and to sustain the multi-billion dollar annual price tag for developing, deploying, and expanding strategic missile defenses. But 18 years after Washington abandoned the treaty, North Korea is the only rogue state that could pose a near-term nuclear threat against the American homeland—and U.S. missile defense interceptors and radars have not even delivered high confidence of being able to protect against this threat. Meanwhile, the absence of limits on U.S. strategic missile defenses and prudent, worst-case concerns in Moscow and Beijing about their future expansion are fueling resistance to additional nuclear arms reductions and stability measures. The end result is that the exponential threats posed by Russia and China are getting worse and the chances of a disastrous nuclear arms race are increasing. This analysis argues that the nuclear threat confronting the United States is multilateral, three-dimensional, and interrelated. Unless the United States acknowledges the role of missile defenses in this complicated reality, it will not be able to realize the full benefits that arms control offers.
Topic:
Defense Policy, Nuclear Weapons, Military Strategy, Nuclear Power, and Missile Defense
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

368. Turkey's Foreign Policy in the Age of Uncertainty

Author:
Hidajet Biscevic
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
From the early period of post-Cold War world order in the last decade of 20th century, through challenges and changes over the two decades of 21st century, Turkey’s foreign policy has been characterized by the need and ability to adapt to the changing, and ever deteriorating global conditions. Changes in the structure and nature of international order and the way Turkish foreign policy evolved are directly related. During the initial period of undisputed unipolar order, Turkey shaped its foreign policy in a way to align its national goals with the main Western partners and alliances. But, as the international system gradually moved from unipolarity to the current “unfinished new system”, characterized by renewed competition and confrontation among a rising number of actors, Turkey started to pursue multi-dimensional and multi- directional foreign policy strategy and practice. In sum, it could be argued that there were “two phases” of Turkish foreign policy approach: of Erdogan's period in 2002.
Topic:
International Relations, Foreign Policy, and Diplomacy
Political Geography:
Europe, Turkey, and Asia

369. Iran's Influence in the Middle East

Author:
Jadranka Polovic
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The Middle East as one of the most heterogeneous and politically conflicting regions in the world and has long been at the center of international interest. Faced with sectarian wars and comprehensive social crises for decades the Middle East, due to its geostrategic importance and especially the imperative of controlling the region’s vast energy resources, has once again become a battle ground for major powers whose interests affect the concentration of participants in the region. The competition between global powers and growing influence of Russia and China, who undermine the US power and European Union’s influence and also undermine established alliances in the Middle East, undoubtedly require a rethinking of Western strategies for the region. A series of geopolitical challenges, especially after September 11 attacks against the United States, as a result of military interventions and civil wars (Afghanistan, Iraq, Libya and Syria) and uprisings (Arab Spring) and thus the collapsed regional order, confronted the international community with the changing nature of security threats, as well as with the new balance of power of regional and international actors in the Middle East. Among the many aspects of the Middle East conflicts, the fundamental issue of regional security today is the Sunni-Shiite conflict, which has since the invasion of Iraq in 2003 directly defined the approaches and policies of great powers and significantly changed regional dynamics. In this context, Iran’s role is particularly significant. Namely, over the last two decades, Iran has consolidated its goals in the Persian Gulf and strategically expanded its influence to other countries in the Middle East, primarily Iraq, Syria, Lebanon and Yemen. The growing influence of Shiite Iran, and its close relations with Shiite communities in the region with which it forms a strategic coalition, have become a key geopolitical challenge for the international community.
Topic:
Foreign Policy, Energy Policy, International Cooperation, Natural Resources, and Hegemony
Political Geography:
Russia, China, Europe, Iran, Middle East, Asia, North America, and United States of America

370. The End of the Second Karabakh War: Has a Lasting Peace Come to the South Caucasus?

Author:
Krševan Antun Dujmović
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
In a year in which the whole world seemed to have frozen its conflicts, uniting its efforts to curb the COVID-19 pandemic, a war broke out between Armenia and Azerbaijan over Nagorno-Karabakh and surrounding regions in Azerbaijan. This was a full-scale armed conflict involving two nations in the South Caucasus, but unlike the first Karabakh war that lasted for more than six years, this war lasted only six weeks. Mainly due to modern warfare and deployment of new sophisticated technology, namely unmanned aerial vehicles (UAVs) by Azerbaijan, a long war of attrition was avoided. Thus, the second war caused a significantly lower destruction of properties and cultural sites in this region of rich history on the crossroads between Asia and Europe, the Caspian and the Black Sea. The short duration of this war also insured that no big players neighboring Armenia and Azerbaijan get directly involved on either of the two warring sides, which could have had incomprehensible consequences for the international community. This is because the countries neighboring the conflict area are substantively different comparatively to what they were in the first half of the nineties when the first Karabakh war took place. Firstly, to the north, Russia was then a country facing disintegration and social implosion, with its military in disarray, unable to quell a rebellion in its small republic of Chechnya in the North Caucasus. Today, Russia is the second military force in the world, spreading its political and military clout far beyond its borders. Secondly, to the west, Turkey has become a major political power in the region, assertive and ambitious, the size of its military is second only to that of the US in NATO. Thirdly, to the south, Iran which was by late eighties a country weary of conflicts after a long war with Iraq, is today a regional power wielding it leverage in most of the Middle East. Considering this, the second war in Karabakh had a potential of erupting to a wider regional conflict, and considering the players involved, even into a global conflict. However, while Europe was introducing a second wave of lockdowns in order to grind to a halt the coronavirus, and while the US was embroiled in the presidential election campaign, shattered by an unprecedented economic slump and civil unrest, the war between Armenia and Azerbaijan erupted without much attention of the international community. When the conflict finally started to gain the interest of the world, it rapidly ended, leaving the international community once again perplexed. Has the ceasefire agreement signed between Armenia and Azerbaijan on November 9 brought a lasting peace to the South Caucasus, or is the truce just temporary, freezing the conflict for yet another round of hostilities?
Topic:
Diplomacy, Conflict, Peace, and COVID-19
Political Geography:
Europe, Asia, and South Caucasus

371. The U.S.–China Trade Imbalance and the Theory of Free Trade: Debunking the Currency Manipulation Argument

Author:
Anwar Shaikh and Isabella Weber
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The U.S.–China trade imbalance is commonly attributed to a Chinese policy of currency manipulation. However, empirical studies failed to reach consensus on the RMB misalignment. We argue that this is not a consequence of poor measurement but of theory. At the most abstract level the conventional principle of comparative cost advantage suggests real exchange rates will adjust so as to balance trade. Therefore, the persistence of trade imbalances tends to be interpreted as arising from currency manipulation facilitated by foreign exchange interventions. By way of contrast, the absolute cost theory explains trade imbalances as the outcome of free trade among nations that have unequal real costs. We argue that a disparity in real costs is the root cause of the U.S.–China trade imbalance.
Topic:
Exchange Rate Policy, Free Trade, Trade, and Purchasing Power
Political Geography:
China, Asia, North America, and United States of America

372. Predictors of school dropout across Ethiopia, India, Peru and Vietnam

Author:
Santiago Cueto, Claudia Felipe, and Juan Leon
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Group for the Analysis of Development (GRADE)
Abstract:
In this paper the authors utilize the five rounds of Young Lives household surveys across four countries (Ethiopia, India, Peru and Vietnam) to study the characteristics of children who had dropped out of school by 22 years of age. While most children in the longitudinal sample go to primary school, they tend to drop out more often and earlier in Ethiopia. In India most children complete the early grades of school but drop out later, particularly in grades 11 and 13. Researchers find that in all countries, except Vietnam, there is a considerable number of children who drop out of school but at some point return to it, either to complete secondary or drop out again. The reasons provided by children for dropping out across the countries are oftentimes related to poverty: for example, the need to work, or care or provide for family. The multivariate analysis shows that indeed in many cases the wealth level of the family at an early age predicts later dropout, as does maternal education level, students’ early skills and residence in certain regions of each country. There are also some variations across countries; for example, boys are more likely to drop out of school in Ethiopia and Vietnam, and children who have repeated a grade are more likely to drop out of school in Peru. However, having high educational aspirations at early ages seems to be a protective factor against dropping out. This suggests that the value that children place on education may be an important preventative factor against dropping out. Overall, these results suggest the need to act early through education and social protection interventions to target young children who are at risk of dropping out, and the follow their trajectories, providing support as needed to specific groups and even individuals, so that all children may fulfill their right to complete at least secondary education.
Topic:
Education and Children
Political Geography:
Africa, India, Asia, Vietnam, Ethiopia, and Peru

373. Oil Prices and Stock Prices in Clean Energy: New Evidence from Chinese Subsectoral Data

Author:
Dong Weijia
Publication Date:
02-2020
Content Type:
Working Paper
Abstract:
The International Energy Agency (IEA) believes that the world needs a clean energy revolution to break its dependence on fossil fuels. Clean energy consists of not just the new energy but also the vehicles that use them,2 including renewable energy, nuclear power, and biofuels. In this context, many studies discuss whether clean energy could have a significant substitution effect on traditional fossil fuels, especially oil.
Topic:
Energy Policy, Oil, and Trade
Political Geography:
China and Asia

374. The cross-border impacts of China’s official rate shocks on stock returns of Chinese concepts shares listed on U.S. market

Author:
Dong Weijia
Publication Date:
02-2020
Content Type:
Working Paper
Abstract:
This paper examines a new cross-border effect of an emerging country’s interest rate changes on the stock returns of its domestic firms listed overseas. First, we discover that the increase in China’s official interest rate greatly affects the NYSE-listed Chinese stocks, thereby suggesting that similar to Chinese domestic investors, the institutional investors in a mature market sometimes exhibit irrational sentiment driven by an emerging economy’s unexpected monetary policy shocks. Second, we highlight some novel asymmetric impacts of China’s official rate changes on Chinese concepts stock prices and reveal that these effects differ from the conventional nonlinear effects of monetary policies. For instance, a bull and bear regime has no statistically significant asymmetric effect on NYSE, whereas interest rate rise has different cross-border impact on Nasdaq and NYSE markets. These interesting findings are mainly driven by the smart investors in the U.S. stock market who are knowledgeable about the differences between NYSE- and Nasdaq-listed stocks and carefully analyze the different impacts of China’s official interest rate changes on the fundamentals of different types of Chinese concepts stocks.
Topic:
International Trade and Finance, Bilateral Relations, and Investment
Political Geography:
China, Asia, North America, and United States of America

375. Comovement of Home Prices: A Conditional Copula Approach

Author:
Lei Hou, Wei Long, and Qi Li
Publication Date:
02-2020
Content Type:
Working Paper
Abstract:
Even though housing markets in different areas are relatively localized, regional home prices have become closely correlated and tend to be simultaneously affected by many national economic factors. In this paper, through the dynamic copula model, we confirm that regional home price dependence is time-varying and the conventional time-invariant copulas underestimate the degree of dependence during economic expansions and recessions. In essence, the U.S. residential real estate market has become more integrated since the mid-1980s. Using the conditional copula model, we further identify how the dependence among regional housing markets evolves along with some fundamental economic factors such as unemployment rate and interest rate. These findings can help investors and home buyers to better identify and evaluate the systematic risk in the nationwide housing market.
Topic:
Economics, Unemployment, and Housing
Political Geography:
China, Asia, North America, and United States of America

376. Evaluating the impact of fossil fuel vehicles exit on the oil demand in China

Author:
Ziru Feng, Tian Cai, Kangli Xiang, Chenxi Xiang, and Lei Hou
Publication Date:
03-2020
Content Type:
Working Paper
Abstract:
Vehicle ownership is one of the most important factors affecting fuel demand. Based on the forecast of China's vehicle ownership, this paper estimates China’s fuel demand in 2035 and explores the impact of new energy vehicles under the scenarios of slow, medium, and rapid substitution. The main contribution of this paper is making a more detailed estimation on the main parameters such as the saturation level and growth rate of the vehicle ownership by taking into account the heterogeneity of provinces when using the Gompertz model to forecast the future vehicle ownership. On that basis, the fuel demand of each province in 2035 is calculated. The results show that: ①The vehicle ownership rate of each province conforms to the S-shape trend with the growth of real GDP per capita. At present, most provinces are at a stage of accelerating growth. However, the time for the vehicle ownership rate of each province to reach the inflection point is quite different. ②Without considering the replacement of new energy vehicles, China's auto fuel demand is expected to be 746.69 million tonnes (Mt) in 2035. Guangdong, Henan, and Shandong are the top three provinces in fuel demand due to the economic and demographic factors, with the expected fuel demand of 76.76, 64.91 and 63.95Mt respectively. ③Considering the replacement of new energy vehicles, China’s fuel demand in 2035 will be 653, 615 and 578 Mt respectively under the scenarios of slow, medium and fast substitution. Even under the scenario of slow substitution, the reduction in fuel demand will be 94 Mt, accounting for 26.3% of China's net oil imports in 2016. Therefore, the withdrawal of fuel vehicles will greatly reduce the oil demand and the dependence on foreign oil of China. Faced with the dual pressure of environmental crisis and energy crisis, the forecast results of this study provide practical reference for policy makers to rationally design the future fuel vehicle exit plan and solve related environmental issues.
Topic:
Climate Change, Oil, and Fossil Fuels
Political Geography:
China, Asia, and United States of America

377. WTO accession, trade expansion, and air pollution: Evidence from China’s county-level panel data

Author:
Shuai Chen, Faqin Lin, Xi Yao, and Peng Zhang
Publication Date:
07-2020
Content Type:
Working Paper
Abstract:
This study provides evidence that trade expansion has contributed to the degradation of air pollution in China. On the basis of different responses of counties’ trade to China’s World Trade Organization accession at the end of 2001, we exploit air pollution data from NASA to construct a difference-in-differences predicted trade as an instrument for our identification. We document statistically significant and robust evidence on trade expansion, which accounts for approximately 60% and 20% for the increase of PM2.5 and SO2, respectively, in China. Findings on trade pollution relation are robust to various tests. Deterioration in the environment is mainly driven by scale and trade in polluting sectors.
Topic:
Trade, Pollution, and WTO
Political Geography:
China and Asia

378. The Impact of COVID-19 on World Economy and China’s Role

Author:
Xu Xiujun
Publication Date:
07-2020
Content Type:
Working Paper
Abstract:
Recent years have seen more countries to experience “three lows and three highs” problems. The pandemic triggered the exposure of these accumulated risks, leading to a slump in world economic growth. Given the developing trend of world economy amid the ongoing pandemic, the world may face a range of challenges for a long time to go, e.g. insufficient momentum for economic growth, increased resistance for market opening and rising debt risks. As the world economy suffers a major hit, China has been active in providing the international community with the assistance needed to combat the COVID-19 and recover the economy, while China’s economy itself has shown strong resilience and stability. In the long run, the pandemic will not change the sound momentum of China’s economic development; rather, it will provide an opportunity for China to play a significant role in the world economy.
Topic:
Economy, Global Political Economy, and COVID-19
Political Geography:
China and Asia

379. Fight the COVID-19 Pandemic and Improve Global Health Governance

Author:
Lin Ren, Aizong Xiong, Guoding Wu, Chen Shen, Xu Tian, and Bo Peng
Publication Date:
07-2020
Content Type:
Working Paper
Abstract:
The fast spreading of the COVID-19 across the globe points to the urgency of strengthening global health governance. As the core global health governance institution, the WHO has taken a series of actions after the eruption of the epidemic and played an important role in providing guidance and coordinating global forces to combat the epidemic. The epidemic, however, has also exposed some defects of the global health governance mechanism, especially the WHO, and posed challenge to it. The international community needs to strengthen its support for the WHO to improve its role in the global health governance.
Topic:
Health, Governance, and COVID-19
Political Geography:
China, Asia, and Global Focus

380. Deceleration, Pandemic, Recession: Does India Have a Plan?

Author:
Roshan Kishore
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
India’s economic pain due to the COVID-19 pandemic will be more painful because it has come on the back of a prolonged economic slowdown. The pre-COVID-19 slowdown is rooted in India’s inability to find a sustainable demand side stimulus in the post-2008 period. However, the current regime has failed to grasp this macroeconomic reality and pursued policies which have only made matters worse. Because the economic pain has not translated into political pain for the ruling party, intellectual criticism of its policies is increasingly losing its influence. Persisting with such policy and politics will significantly add to the already existing economic pain and worsen social fissures. Unless the opposition reinvents its politics, things will not change on the policy front
Topic:
Public Health, Pandemic, COVID-19, and Economic Recovery
Political Geography:
India and Asia

381. Cooperation in Trade in Services

Author:
Akshay Mathur and Purvaja Modak
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Over the past decade, there has been a shift in global trade from trade in goods to trade in services. Unlike goods, services are intangible and consumed by the user directly, without intermediate supervision. Thus, the only way to ensure the quality of a service is to enforce standards on the service provider. This is the responsibility of domestic sector-specific regulatory institutions established by the government. This paper examines the current state of services trade in India and Canada, considers India’s services trade with Canada and outlines a number of measures the countries could take to support services trade.
Topic:
International Cooperation, International Trade and Finance, Services, and Trade Policy
Political Geography:
Canada, India, Asia, and North America

382. Fostering Growth in Digital Trade through Bilateral Cooperation in the Development of Trade Rules

Author:
Don Stephenson
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Like foreign policy, trade policy is the outward expression of domestic policy — both economic and social — and trade negotiations are to advance the national interest. Both India and Canada have important commercial interests in digital trade and both have counterbalancing social policy concerns, but they have important differences as well. Their equitable participation in digital trade must overcome an imbalanced competitive landscape through measures to facilitate access to technology and infrastructure, financing, and training in digital technology literacy and data-based business models. As yet, there is no international consensus on how trade rules should be adapted to foster digital trade. Consistent with the Track 1.5 Dialogue objectives, this paper calls on Canada and India to partner and lead in advancing the digital trade agenda. It recommends creating a bilateral process to identify common causes and areas for collaboration; convening a business-to-business conversation supported with research and analysis; and focusing on the impact of digital technology, looking at not only electronic commerce but also trade in traditional service sectors.
Topic:
International Cooperation, International Trade and Finance, Digital Economy, and Trade Policy
Political Geography:
Canada, India, Asia, and North America

383. India-Canada Energy Cooperation

Author:
Amit Bhandari
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The energy sectors of India and Canada complement each other: India is a large and growing oil importer, while Canada is a large and growing exporter of oil and gas. However, as they invested in oil fields across the world, Indian oil companies have missed out on the Canada story. Investing in Canada’s oil sector can help India guard against the risk of spikes in oil prices and provide Canada with long-term demand security. In this paper, first presented as a backgrounder at Track 1.5 meetings in Mumbai, India, in November 2019, Gateway House outlines its findings on the feasibility of Indian investment in Canada’s petroleum sector, suggesting a path forward and best prospects for investment.
Topic:
Energy Policy, International Trade and Finance, Oil, Gas, and Investment
Political Geography:
Canada, India, Asia, and North America

384. Sustainable Energy through Green Bonds in India

Author:
Olaf Weber and Vasundhara Saravade
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Emerging economies, such as India, will need significant international investment in climate action in order to transition toward a future that is low-carbon and climate-resilient. India needs fossil fuels at an affordable price and needs to protect itself against price fluctuations. It can meet these needs by investing in Canadian oil companies, given the country’s political stability and rule of law. As an emerging economy, India could attract greater foreign direct investment into its economy through green bonds, a climate finance debt instrument that addresses environmental and climate-related challenges. Not only are green bond issuances linearly increasing over the years, but they also seem to be driven by institutional pressure, provided in part by the Securities and Exchange Board of India’s regulation, as well as by the informal advocacy efforts of market stakeholders. These findings are consistent with institutional theory and contribute to it by introducing the regulatory perspective of the green bond market.
Topic:
Climate Change, Energy Policy, Green Technology, and Sustainability
Political Geography:
India and Asia

385. An International Intellectual Property and Digital Trade Strategy for Canada

Author:
Jeremy de Beer
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
To remain competitive on a global scale, Canada needs to enhance its domestic intellectual property (IP) and digital trade strategies with an international approach that can respond to constantly changing global economic conditions. Although Canada launched its Intellectual Property Strategy in 2018 — focusing on IP awareness, strategic tools and legislation — its data initiative, known as the Digital Charter, remains a work in progress. Both policies would benefit from an outward-looking, interconnected, international strategic vision. As a member of various international trade agreements, Canada has framed its IP laws to align with these agreements and its trade partners. Canada should expand its trade relationships with Africa before other countries, such as China, take advantage of the continent’s rapidly growing economies and trade opportunities. Building strategic alliances with the right global partners, combined with the use of hard and soft laws to promote Canadian interests, will help Canada strengthen its international IP and digital trade strategy.
Topic:
International Cooperation, Intellectual Property/Copyright, Digital Economy, and Trade
Political Geography:
China, Canada, Asia, and North America

386. At a Crossroads? China-India Nuclear Relations After the Border Clash

Author:
Toby Dalton and Tong Zhao
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
While both countries may think the situation is under control, dismissive attitudes and misperceptions could end up fueling a dangerous competition. On June 15, 2020, a lethal military conflict over disputed territory in the Himalayas shook the edifice of China-India relations. The clash in the Galwan Valley along their shared border is the gravest military confrontation the two nuclear powers have faced in fifty years. This event and ongoing tensions focus attention on the long-standing but tempered competition between China and India. One of the most interesting puzzles of that relationship is why nuclear weapons, which both possess, have not played a more important role. With the potential for a major reset in China-India ties after the Ladakh crisis, are Beijing and New Delhi finally approaching a long-anticipated crossroads in their nuclear relations? The findings reveal that while Indian security analysts give serious attention to China’s nuclear policy and capabilities, Chinese analysts maintain a dismissive attitude about the relevance of nuclear weapons in China-India relations. The attitude stems from a widely held view that India’s indigenous military technologies are significantly behind China’s and that China will continue widening the gulf between the two countries’ conventional and nuclear capabilities. However, Chinese analysts do not appear to fully appreciate the long-term destabilizing implications of this growing gap. India may feel pressure to build out its nuclear arsenal, and this could further threaten the fragile stability between India and Pakistan. Chinese experts tend to underestimate the role Beijing may have in shaping New Delhi’s threat perception and nuclear strategy.
Topic:
International Relations, Nuclear Weapons, Military Affairs, and Borders
Political Geography:
China, South Asia, India, and Asia

387. The Effectiveness of School Closures and Other Pre-Lockdown COVID-19 Mitigation Strategies in Argentina, Italy, and South Korea

Author:
Claudio Neidhofer and Guido Neidhofer
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
The rapid spread of COVID-19 forced policy-makers to swiftly find solutions to reduce infection rates and keep mortality as low as possible. Empirical analyses on the effectiveness of control measures are hereby of primary importance. School closures were among the earliest measures enacted by the governments of most countries. However, while schools are now reopening in many countries, the impact of school closures on the course of the epidemic is still an open question. Adopting parametric and non-parametric synthetic control methods we estimate the effectiveness of pro-active school closures, and other early social distancing interventions, in three countries that reacted relatively early during the course of the pandemic. Our findings suggest that these interventions were effective at reducing the mortality rate of COVID-19, especially when enacted early.
Topic:
Education, Public Health, Pandemic, and COVID-19
Political Geography:
Europe, Asia, South Korea, Argentina, South America, and Italy

388. East Asia decouples from the United States: Trade war, COVID-19, and East Asia's new trade blocs

Author:
Peter A. Petri and Michael G. Plummer
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
he deepening US-China trade war and nationalist reactions to the COVID-19 pandemic are reshaping global economic relationships. Alongside these developments, two new megaregional trade agreements, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), will refocus East Asia’s economic ties in the region itself. The new accords are moving forward without the United States and India, once seen as critical partners in the CPTPP and RCEP, respectively. Using a computable general equilibrium model, we show that the agreements will raise global national incomes in 2030 by an annual $147 billion and $186 billion, respectively. They will yield especially large benefits for China, Japan, and South Korea and losses for the United States and India. These effects are simulated both in a business-as-before-Trump environment and in the context of a sustained US-China trade war. The effects were simulated before the COVID-19 shock but seem increasingly likely in the wake of the pandemic. Compared with business as before, the trade war generates large global losses rising to $301 billion annually by 2030. The new agreements offset the effects of the trade war globally, but not for the United States and China. The trade war makes RCEP especially valuable because it strengthens East Asian interdependence, raising trade among members by $428 billion and reducing trade among nonmembers by $48 billion. These shifts bring regional ties closer to institutional arrangements proposed in the 1990s and incentivize greater cooperation among China, Japan, and South Korea.
Topic:
Treaties and Agreements, Trade Wars, Trans-Pacific Partnership, Free Trade, COVID-19, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

389. How the United States marched the semiconductor industry into its trade war with China

Author:
Chad P. Bown
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The US-China trade war forced a reluctant semiconductor industry into someone else’s fight, a very different position from its leading role in the 1980s trade conflict with Japan. This paper describes how the political economy of the global semiconductor industry has evolved since the 1980s. That includes both a shift in the business model behind how semiconductors go from conception to a finished product as well as the geographic reorientation toward Asia of demand and manufactured supply. It uses that lens to explain how, during the modern conflict with China, US policymakers turned to a legally complex set of export restrictions targeting the semiconductor supply chain in the attempt to safeguard critical infrastructure in the telecommunications sector. The potentially far-reaching tactics included weaponization of exports by relatively small but highly specialized American software service and equipment providers in order to constrain Huawei, a Fortune Global 500 company. It describes potential costs of such policies, some of their unintended consequences, and whether policymakers might push them further in the attempt to constrain other Chinese firms.
Topic:
Science and Technology, Trade Wars, Industry, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

390. Social Interventions, Health and Wellbeing: The Long-Term and Intergenerational Effects of a School Construction Program

Author:
Bhashkar Mazumder, Maria Rosales-Rueda, and Margaret Triyana
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
We analyze the long-run and intergenerational effects of a large-scale school building project (INPRES) that took place in Indonesia between 1974 and 1979. Specifically, we link the geographic rollout of INPRES to longitudinal data from the Indonesian Family Life Survey covering two generations. We find that individuals exposed to the program have better health later in life along multiple measures. We also find that the children of those exposed experience improved health and educational outcomes and that these effects are generally stronger for maternal exposure than paternal exposure. We find some evidence that household resources, neighborhood quality, and assortative mating may explain a portion of our results. Our findings highlight the importance of considering the long-run and multigenerational benefits when evaluating the costs and benefits of social interventions in a middle-income country.
Topic:
Education, Health, Poverty, Inequality, Economic Growth, and Economic Development
Political Geography:
Indonesia and Asia

391. Reverse Student Mobility from South Korea to the United States

Author:
Stephanie Kim
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Commentators have pointed to the “Trump Effect” for falling international student enrollment in the U.S. higher education sector. When taking a closer look at student mobility trends from South Korea, however, the facts and figures tell a different story. For the past two decades, South Korea has been consistently the third largest sender of international students to the United States. But the number of South Korean students who study in U.S. higher education had been steadily falling well before the more recent general declines in international student enrollment. What are the underlying causes of this concerning trend? And what are the implications for the United States when such a major contributor of international students wanes? This paper shows how internationalization efforts in the South Korean higher education sector have resulted in the reversal of domestic student outflow from South Korea to the United States that has major implications for bilateral relations between the two countries.
Topic:
Education, Bilateral Relations, Domestic Politics, and Freedom of Movement
Political Geography:
Asia, South Korea, North America, and United States of America

392. Bridging the Gap: Progress and Prospects for Accelerating South Korea's Move Towards a Carbon Neutral Scenario

Author:
Francesca Frassineti and Francesco Sassi
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Moon administration in South Korea has implemented rapid changes to accelerate the decarbonization of the energy sector. While seeking to embrace renewables, Seoul has been relying on the bridging capacity of natural gas—of which it is the world’s third largest importer. In this context, President Moon is also confronted with public discontent over weak emissions goals and inadequate policies to curb the negative effects of climate change. Besides, the socio-economic fallout from the pandemic could hinder the enforcement of environmental measures and loosen restrictions for the sake of an immediate recovery. As Seoul attempts to secure more environmentally-friendly and economically sustainable energy sources, this paper examines the advances and major drawbacks of this policy agenda. By shedding light on the dynamics within the gas sector, the analysis also assesses the viability of liquefied natural gas (LNG) as the pillar of this pro-environmental policy shift, including the potential of some LNG-related projects. The paper finds the feasibility of the current goals is challenged by the realities of energy supply stabilization, particularly due to the simultaneous phaseout of coal and nuclear power and the persistent capacity obstacles for renewables to fill this gap. In light of this, the paper advocates for integrated policy measures aimed at improving consistency in implementing national energy policy in tandem with climate change mitigation efforts.
Topic:
Climate Change, Energy Policy, Gas, and Carbon Emissions
Political Geography:
Asia and South Korea

393. Transforming informal work and livelihoods in China

Author:
Carl Shu-Ming Lin, Linxiang Ye, and Wei Zhang
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The informal sector has long been viewed as a locus of the disadvantaged, unskilled, and inexperienced workers in under-developed and developing economies. Workers in the informal sector, however, can learn skills and gain experience that could help them switch to better-paying jobs in the formal sector. But evidence of this is limited. China constitutes an important case study because it is the most populous country and has the largest labour force, consisting of over 290 million rural-to-urban migrants whose employment is mostly informal. Using three waves of nationally representative household surveys from 2014 to 2018, we study how the livelihoods of Chinese workers change when transitioning to different work statuses within or between formal and informal sectors. Our results show that transitioning jobs from the informal to the formal sector and from the self-employed to the wage-employed increases earnings, which improves the livelihoods of Chinese workers.
Topic:
Employment, Economic Development, Informal Economy, and Workforce
Political Geography:
China and Asia

394. Preparing for the Nightmare: Readiness and Ad hoc Coalition Operations in the Taiwan Strait

Author:
Mark Stokes, Yang Kuang-shun, and Eric Lee
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
Taiwan’s (Republic of China, ROC) defense readiness can be viewed from both strategic and operational perspectives. In our report, readiness is measured by both (1) the degree to which Taiwan’s government and civil society are prepared to counter coercion by the Chinese Communist Party (CCP), and (2) the degree to which the ROC armed forces can carry out its mission. Given the increasing likelihood of CCP use of force against Taiwan in the foreseeable future, it is in the interests of the United States and the ROC governments to improve overall defense readiness. This report evaluates the threat environment Taiwan faces and details its strategic and operational readiness, as well as the utility of ad hoc coalitions. In addition, the report highlights future opportunities for U.S. policymakers to strengthen the United States and Taiwan’s readiness in pursuit of the shared goal of peace and stability in a free and open Indo-Pacific region.
Topic:
Conflict Prevention, Strategic Stability, Coalition, and Readiness
Political Geography:
China, Taiwan, and Asia

395. Weaponizing the Belt and Road Initiative

Author:
Daniel R. Russel and Blake Berger
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China’s Belt and Road Initiative (BRI), launched by President Xi Jinping in 2013, is a massive international infrastructure program involving nearly 140 countries with over an estimated $1 trillion in projects related to energy, transportation, digital networks, and trade. Chinese leaders frame the BRI as “win-win” cooperation focused solely on development and connectivity. Beijing has gone to great lengths to minimize BRI’s links to the People’s Liberation Army and to downplay the initiative’s geostrategic overtones. Nevertheless, many governments have become worried about ulterior motives behind BRI projects, many of which have dual-use commercial-military capabilities and are increasingly connected to Chinese digital technologies and networks and satellite systems. The Asia Society Policy Institute’s – Weaponizing the Belt and Road Initiative – examines key BRI projects in the Indo-Pacific and explores relevant Chinese doctrine, the involvement of the People’s Liberation Army with BRI, and assesses the potential military and geostrategic advantages to China from BRI ports and other projects. This project is led by ASPI Vice President for International Security and Diplomacy Daniel Russel, with support from ASPI Senior Program Officer Blake Berger. The project and the report benefitted from advisement from experts and officials in Singapore, Australia, Japan, Vietnam, China, and the United States as well as to the expert advisory group whose distinguished members generously shared their time and wisdom to support this effort.
Topic:
Development, Geopolitics, Belt and Road Initiative (BRI), and Strategic Competition
Political Geography:
China and Asia

396. China’s Response to Climate Change: A Study in Contrasts and a Policy at a Crossroads

Author:
David B. Sandalow
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China is the world’s leading emitter of heat-trapping gases, by far. In 2019, Chinese emissions were greater than emissions from the United States, the European Union, and Japan combined. There is no solution to climate change without China. China’s response to climate change is a study in contrasts. China leads the world in solar power, wind power, and electric vehicle deployment, but also in coal consumption. The Chinese government has adopted some of the world’s most ambitious energy efficiency and forest conservation policies, but is financing a significant expansion of coal-fired power plant capacity at home and abroad. China’s leaders are strongly committed to the Paris Agreement, but appear to attach less priority to climate change than in years past. This Issue Paper explores these contrasts. It does so at an important time in Chinese climate change policy. During the next 18 months, the Chinese government will spend heavily on economic stimulus measures, release its 14th Five-Year Plan (for 2021–2025), and develop short- and long-term climate action plans (known as its “updated nationally-determined contributions” and “mid-century strategy” in the terminology of the global U.N. climate process). Decisions by the Chinese government will reverberate globally, including in the United States. A Biden administration’s ambition in addressing climate change would be reinforced by ambition in China. This Issue Paper provides an up-to-date snapshot of China’s climate policies, drawing on data from 2019 and the beginning of 2020 (during the height of the COVID-19 economic lockdown), as well as recent remarks by Chinese leaders. It starts by examining Chinese emissions of heat-trapping gases. It then discusses China’s principal climate policies, explaining the main tools the Chinese government uses to address climate change and related topics. The Issue Paper concludes with a discussion of processes that will shape Chinese climate change policy in the years ahead.
Topic:
Climate Change, European Union, Economy, and Carbon Emissions
Political Geography:
Japan, China, Europe, Asia, and United States of America

397. China's Pandemic Diplomacy

Author:
Denny Roy
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The COVID-19 pandemic threatened to damage China’s international reputation just as the Chinese government under Xi Jinping was peaking in its promotion of China as a model political system and superior international citizen. Beijing launched a massive diplomatic effort aimed at both foreign governments and foreign societies. The goal was to overcome initial negative publicity and to recast China as an efficient and heroic country in the eyes of international public opinion. The crisis created an opening for China to make gains in its international leadership credentials as the world saw the superpower United States falter. Ultimately, however, Chinese pandemic diplomacy contributed to a net decrease in China’s global prestige, largely because domestic political imperatives motivated behavior that generated international disapproval and distrust for the Chinese Communist Party (CCP) government. This paper summarizes the content of Chinese pandemic diplomacy through the key period of January through May 20201, identifies specific strengths and weaknesses of China’s effort, and briefly assesses its global impact.
Topic:
International Relations, Diplomacy, Pandemic, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

398. Defending the Maritime Rules-Based Order: Regional Responses to the South China Sea Disputes

Author:
Rebecca Strating
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The seas are an increasingly important domain for understanding the balance-of-power dynamics between a rising People’s Republic of China and the United States. Specifically, disputes in the South China Sea have intensified over the past decade. Multifaceted disputes concern overlapping claims to territory and maritime jurisdiction, strategic control over maritime domain, and differences in legal interpretations of freedom of navigation. These disputes have become a highly visible microcosm of a broader contest between a maritime order underpinned by the United Nations Convention on the Law of the Sea (UNCLOS) and challenger conceptions of order that see a bigger role for rising powers in generating new rules and alternative interpretations of existing international law. This issue examines the responses of non-claimant regional states—India, Australia, South Korea, and Japan—to the South China Sea disputes.
Topic:
Foreign Policy, Territorial Disputes, Geopolitics, Maritime, and Jurisdiction
Political Geography:
China, Asia, North America, United States of America, and South China Sea

399. Has U.S. Government Angst over the China Danger Diminished?

Author:
Robert Sutter
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The so-called “truce” in the trade war with the signing of the phase one U.S.-China trade agreement on January 15 comes amid indicators that the intense U.S. government consensus pushback against a wide range of perceived challenges posed by China may be subsiding.
Topic:
Government, Bilateral Relations, Economy, and Trade Wars
Political Geography:
China, Asia, North America, and United States of America

400. Taiwan's 2020 Election and Its Implications for the New Southbound Policy

Author:
H. H. Michael Hsiao and Alan H. Yang
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The elections in January 2020 marked a new era for Taiwan, clearly demonstrating citizens’ resistance to China. The results showed that incumbent President Tsai Ing-wen, leader of the Democratic Progressive Party (DPP), was re-elected with a landslide victory of 8.17 million votes (57.1%) which is higher than the previous record high of 7.65 million votes obtained by the Kuomintang (KMT) President Ma Ying Jeou in 2008. Michael Hsiao and Alan Yang, Chairman and Executive Director, respectively, of the Taiwan‐Asia Exchange Foundation in Taiwan, explain that “The Taiwanese people firmly defended Taiwan’s sovereignty and cherished democracy through free and open elections.”
Topic:
Foreign Policy, Politics, Sovereignty, Elections, and Democracy
Political Geography:
China, Taiwan, and Asia