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101. Global trends in countries‘ perceptions of the Belt and Road Initiative

Author:
Alicia Garcia-Herrero and Robin Schindowski
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Drawing on global media reports, we conduct a sentiment analysis of the image of China’s Belt and Road Initiative (BRI) and the evolution of its image over time. Our main finding is that perceptions of the initiative deteriorated significantly in many geographies from 2017 to 2022. The notable exception is in sub-Saharan Africa where the BRI’s image remains positive, even if slightly less so than in the past. This is notwithstanding increases in debt levels with China, much of which now face potential restructuring. Furthermore, we find significant inter- and intra-regional differences in the average sentiment towards China’s landmark project, as well as a much worse image of the initiative in countries which, until today, are not part of the BRI. Finally, we focus on the European Union, Africa and China’s immediate neighbourhood to better understand the complexities behind the perceived benefits and challenges associated with China’s Belt and Road Initiative.
Topic:
Bilateral Relations, European Union, Geopolitics, Economy, and Trade
Political Geography:
China, Europe, and Asia

102. Can Chinese growth defy gravity?

Author:
Alicia Garcia-Herrero
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Chinese growth, astounding since the beginning of the reform era, has slowed in the last decade. We offer a baseline estimate (based on the current trend) of China’s medium-term growth rate, which we project to fall to 2.4 percent by 2035. Several factors create uncertainty around this baseline. China’s rapid aging is already incorporated into our long-term growth scenario, but its impact on growth will depend on how China’s remaining urbanisation process spreads over time, how the shrinking labour supply affects labour productivity and whether the decline in total factor productivity growth, reflecting the lack of reform during the last decade and possibly the rising role of the state, can be reversed. Investment in China, for decades the largest factor in China’s growth, is expected to contribute less to growth given the increasingly low return on assets, particularly on state-led investment. The rapid piling up of public debt is also becoming a heavy burden for the Chinese economy. Finally, the COVID-19 pandemic may have left significant scarring effects, such as structurally high youth unemployment and low investment confidence. On the upside for China, the rise in human capital and research and development expenditure may support innovation and growth, but the magnitude of this effect is uncertain, because it is unclear if higher innovation will translate into higher total factor productivity, and because of the United States’s push to contain China technologically.
Topic:
Industrial Policy, European Union, Economic Growth, and COVID-19
Political Geography:
China, Europe, and Asia

103. Will China’s new financial regulatory reform be enough to meet the challenges?

Author:
Martin Chorzempa and Nicolas Veron
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Effective financial supervision plays a crucial role in maintaining financial stability and a healthy financial system. China’s leadership has made financial risk a core priority, and in reforms approved in March 2023, it reassigned regulatory responsibilities, creating a new supervisory body that will take over some responsibilities from the central bank, the banking and insurance regulator, and the securities regulator. The aim is that a change to the financial supervisory architecture (who does what in financial supervision) will make China’s system more effective and stable. In this policy brief, we argue that this incremental reform will not solve the core issues China faces in financial supervisory effectiveness. We provide an overview of China’s large and complex financial system, including its largely state-owned banks (some of which are the largest in the world by assets), securities markets and other financial intermediaries. Traditional divisions between different types of activities and institutions have been blurred by the rise of large financial conglomerates, risk-transfer techniques and internet-based finance. Reforms in 2018 to China’s supervisory architecture did not eliminate perceived shortcomings, including failures to effectively regulate financial conglomerates, fintech and regional banks. We then survey global benchmarks against which China’s financial supervisory architecture can be compared, including the United States and European Union. China’s supervisory system is already more streamlined, at least on paper, than either of these most comparable global counterparts. Like them, China’s system does not correspond exactly to any of the three textbook archetypes of supervision: sectoral, twin-peaks or integrated supervision. Ultimately, the effectiveness of China’s financial supervisory architecture suffers from excessive state intervention in the financial system through other channels, including through the unique and pervasive influence of the communist party, which hampers supervisory independence and makes it difficult to establish accountability for regulatory failures. While the recently announced reform may improve coordination across supervisory bodies, coordination within the new quasi-integrated supervisor, across central departments, and between them and local branches, will remain a challenge.
Topic:
Reform, Regulation, Finance, and Financial Stability
Political Geography:
China and Asia

104. Course Correction: Charting a More Effective Approach to U.S.-China Trade

Author:
Clark Packard and Scott Lincicome
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Over the past several years the U.S.-China economic relationship has soured and become subordinated to broader concerns about national security and geopolitics. After a decades‐​long reform agenda in China that lifted hundreds of millions out of grinding poverty, Chinese president Xi Jinping has increasingly turned inward—reembracing Maoist socialism and heavy‐​handed central planning. Washington’s response to these worrisome developments has been reflexively hawkish economically, scattershot, and woefully inadequate for the economic challenge that China presents.
Topic:
National Security, Bilateral Relations, Economy, and Trade
Political Geography:
China, Asia, North America, and United States of America

105. Southeast Asia Aid Map - Key Findings Report

Author:
Alexandre Dayant, Grace Stanhope, and Roland Rajah
Publication Date:
06-2023
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Official development finance plays an important role in financing Southeast Asia’s development, equivalent to around 10% of total government development spending in the region. China is Southeast Asia’s single largest development partner and leads infrastructure financing. Yet, implementation problems have seen the scale of China’s financing decline in recent years. Traditional development partners collectively still dominate development financing in Southeast Asia at 80% of the total. The multilateral development banks lead the way, followed by Japan, Europe, and South Korea. The United States and Australia are mid-sized players. India and the Middle East have become notable sources of non-traditional development finance, with the Islamic Development Bank playing an important role. Climate development finance is increasing, but Southeast Asia will need more support if it is to transition towards resilient, low-carbon development. Intraregional development cooperation is growing, but only makes up a small part of development finance in Southeast Asia.
Topic:
Climate Change, Development, Humanitarian Aid, Finance, and Economy
Political Geography:
Asia and Southeast Asia

106. EIU Global Outlook—a summary of our latest global views

Publication Date:
06-2023
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, 5-year summary, and Forecast
Political Geography:
Europe, Asia, and Americas

107. Asia: Forecast summary

Publication Date:
06-2023
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, Background, Charts and tables, and Annual indicators
Political Geography:
Asia

108. EIU Global Outlook—a summary of our latest global views

Publication Date:
06-2023
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, 5-year summary, and Forecast
Political Geography:
Europe, Asia, and Americas

109. Asia: Forecast summary

Publication Date:
06-2023
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, Background, Charts and tables, and Annual indicators
Political Geography:
Asia

110. Why Democracies Implement Better Climate Actions: Case Study of India, the Philippines, and Japan

Author:
Niranjan Sahoo and Jisoo Park
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
East Asia Institute (EAI)
Abstract:
Asia is the most populous and one of the most climate-vulnerable regions in the world. Long coastline, vast low lying areas comprising many small island nations make it highly susceptible to climate change such as rising sea level and extreme weather events like floods, landslides. For many critics, democracies' response to climate change is much impeded due to their slow decision-making process and short-termism governed by electoral compulsions. Some analysts go as far as to claim that authoritarianism is needed to tackle the crisis more effectively. However, close examination of different governance structure's climate actions strongly supports that democracies are inherently better at handling climate crisis compared to authoritarian regimes. This article explores the multifaceted impact of climate change to democracy and delves into the case studies of India, the Philippines, and Japan to identify strengths as well as areas of improvement that democracies should consider to establish meaningful climate actions.
Topic:
Climate Change, Authoritarianism, Democracy, and Accountability
Political Geography:
Japan, India, Asia, and Philippines

111. Australia’s Role Supporting Democracies as a Middle Power

Author:
Michael J. Green and Victoria Cooper
Publication Date:
07-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Michael J. Green (Professor and CEO of the United States Study Centre (USSC) in Sydney) and Victoria Cooper (Research Editor at the USSC) analyze Australia’s strengths as a middle power in the face of Beijing’s pressure campaign, and offer areas of regional cooperation that like-minded countries, including Australia, can build upon in order to defend democracy against authoritarian regimes. While acknowledging the limited capacity of Australia to independently counter Beijing’s illiberal behavior, the authors argue that through the expansion of development initiatives, promotion of women’s empowerment, and anti-corruption drives, Canberra can play a key role in leading multilateral efforts to promote democratic resilience in the region.
Topic:
Diplomacy, Statecraft, Middle Power, and Regional Politics
Political Geography:
China, Asia, and Australia

112. Japan’s Gradual Move to Address Technological Challenges to Democracy

Author:
Maiko Ichihara
Publication Date:
04-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Maiko Ichihara, a professor at Hitotsubashi University Graduate School of Law, explores the challenges that technological advancements pose to democracy and analyzes Japan’s recent efforts to regulate disinformation and protect private data. Despite the absence of global regulations on digital technology, Ichihara highlights Japan’s domestic fact-checking efforts as well as its multilateral initiatives with G7 to create action plans promoting international cooperation against disinformation and data privacy abuse. In order to bolster democracy in the digital realm, she advocates for a proactive development of counter-narratives to fake news on social media.
Topic:
Science and Technology, Democracy, Regulation, Privacy, Social Media, G7, Disinformation, Data Collection, and Digital Space
Political Geography:
Japan and Asia

113. Restoring Democracy in Myanmar: A Call for Bolstered Anti-Junta Resistance Forces

Author:
Lin Htet Myat
Publication Date:
02-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
February 2023 marks the second anniversary of the military coup in Myanmar that ousted its civilian government and cracked down on democratic protests. Lin Htet Myat, a political analyst from Myanmar, assesses the grim situation in the country and offers new approaches that both the international community and the Burmese anti-junta forces should take to facilitate the restoration of democracy. The author argues that the international community must not engage the junta to seek for a peaceful resolution, and instead strengthen material support and communication with anti-junta forces within Myanmar. Meanwhile, Burmese democratic resistance forces should bolster military cooperation among like-minded groups and build trust in preparation for a federal democratic Myanmar.
Topic:
Democracy, Coup, Humanitarian Crisis, and ASEAN
Political Geography:
Asia and Myanmar

114. Taiwan’s Civic Space Threatened by Chinese Misinformation and the Government’s Worrisome Legislative Responses

Author:
Chin-en Wu
Publication Date:
02-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Civic space in Taiwan is consistently threatened by misinformation campaigns and operations run by external forces, particularly mainland China. Chin-en Wu, an associate research fellow at the Institute of Political Science at Academia Sinica, assesses that China disseminates fake news to portray positive image of itself while creating internal polarization and competition in Taiwan. The Taiwanese government has attempted to take various measures, such as amending the Social Order Maintenance Act and introducing social media regulation bill, to counter the rampant Chinese misinformation activities. Although Wu acknowledges that the Taiwanese government should collaborate with the civil society to safeguard the island from misinformation, Wu warns that the government must be conscious of the potential damage that the restrictive measures against fake news could inflict on Taiwan’s liberal democracy.
Topic:
Democracy, Social Media, Misinformation, and Civic Engagement
Political Geography:
Taiwan and Asia

115. Sustaining Congressional Engagement with Southeast Asia

Author:
Erik Ashida
Publication Date:
06-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
As a representative institution whose members can outlast presidential administrations, Congress plays a vital role in sustaining long-term US foreign policy commitments. The perception of long-term commitment is particularly important in Southeast Asia, where most states seek to maximize their strategic autonomy by balancing relations among great powers. Thus, expectations about the future behavior of great powers can significantly affect foreign policy choices. Congress speaks through the exercise of its formal powers but also in more subtle ways. Congressional actions on foreign relations operate along three channels. The first channel is support for policies initiated by the executive branch, e.g., passing appropriations, making requested statutory changes, or, at the very least, not obstructing what an administration seeks to do. The second channel is symbolic support for a relationship, such as meetings with foreign officials or public statements of support. Though these actions are generally nonbinding, they can be a more meaningful gauge of support than the first channel because legislators must seek them out and can define the terms of their engagement—something not always possible when voting on legislation. The third channel is policy advanced independently from the executive branch, such as standalone bills, conditions placed on funding, or rigorous oversight. Each of these tools is available to individual legislators, groups of legislators such as caucuses or committees, or the entire legislative branch acting collectively.
Topic:
International Relations, Foreign Policy, Politics, and Governance
Political Geography:
Asia, Southeast Asia, and United States of America

116. Korea Matters for America/America Matters for Korea (2023)

Author:
East-West Center
Publication Date:
04-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
The 4th edition of Korea Matters for America/America Matters for Korea, part of the Asia Matters for America initiative, maps the trade, investment, employment, business, diplomacy, security, education, tourism, and people-to-people connections between the United States and South Korea at the national, state, and local levels. This publication and the AsiaMattersforAmerica.org website are resources for understanding the robust and dynamic US-Indo-Pacific relationship.
Topic:
International Relations, Climate Change, Economics, Education, Environment, Politics, Science and Technology, Governance, Population, Public Health, and Travel
Political Geography:
Asia, South Korea, North Korea, North America, and United States of America

117. Valuing Longer, Healthier Lives: Assessing the Productivity of Health Spending in South Korea

Author:
Karen Eggleston
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
This research studies the link between medical spending and health outcomes in South Korea, providing evidence on the productivity of medical spending over recent decades. The author advocates for the Korean government to develop a “satellite account for health” to complement national income and product accounts. Current measures do not account for changing quality nor give providers any incentive for cost-effective substitution between forms of treatment for a given condition. By leveraging existing strengths of Korea’s National Health Insurance and health outcome data, Korea can develop an accurate measure of medical productivity and a more accurate measure of overall economic productivity, while becoming a global pioneer of “health satellite accounts” for overall populations. Such a productivity metric built on condition-specific net value can help Korea increase the “bang for the buck” from medical spending, mitigate wasteful spending, and promote high-value innovations for longer, healthier lives.
Topic:
Health, Public Spending, and Productivity
Political Geography:
Asia and South Korea

118. What North Korea Has Been Learning From Russia’s Invasion of Ukraine

Author:
Tereza Novotná
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
A year ago, in February 2022, Russia invaded its neighbor, Ukraine. Russian aggression has upended the post-war security mechanisms in Europe and made the international multilateral system, including the UN Security Council, more fragile and ineffective than ever. Even though the war in Ukraine has implications for security in Northeast Asia, many Asian nations consider it a distant issue for Europeans to solve. However, this perspective mirrors what Europe’s Asian counterparts, especially the Koreans, have faced for decades. It serves as an apt analogy for explaining the dangers of North Korea to Europe. North Korea is also watching the war closely to discern what lessons or leverage can be extracted from the unfolding conflict. This short article reflects on two lessons and three opportunities that the War in Ukraine presents to Kim Jong Un and concludes with recommendations on what the Europeans could do in the near future.
Topic:
Security, Foreign Policy, Conflict, Russia-Ukraine War, and Invasion
Political Geography:
Russia, Ukraine, Asia, and North Korea

119. Two Peripheries: The Ukraine War's Effect on North Korea-Russia Relations

Author:
Anthony V. Rinna
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Spanning the Eurasian landmass, Russia’s actions in adjacent Ukraine invariably affect the geopolitical state of play on the similarly adjacent Korean Peninsula. Although ties between the Democratic People's Republic of Korea (DPRK) and Russia have been of largely secondary importance for both countries since their veritable rupture in the early- and mid-1990s, Moscow-Pyongyang relations became more mutually beneficial in 2022. Whereas most countries have outright condemned Russia’s invasion of Ukraine or taken up an ambiguous position, the DPRK has been vocal in its support for Russia. From the DPRK perspective, the Kremlin’s post-2022 diplomatic and economic estrangement from much of the world has provided Pyongyang with an opening to leverage ties with Russia to push for an easing of its own diplomatic and economic isolation. Meanwhile, strengthening its DPRK ties allows Russia to undermine US influence on its Asian periphery. In supporting Russia’s full-scale invasion of Ukraine, North Korea appears to be aiming toward obtaining economic benefits from closer ties with Russia, a country whose economy has managed to stay afloat despite heavy Western sanctions. Russia’s full-scale invasion of Ukraine has provided the impetus for Pyongyang’s outreach to Moscow. However, the roots of the current upswing in Moscow-Pyongyang relations go back to the April 2019 summit between Kim Jong Un and Vladimir Putin. Kim received an invitation to meet with Putin in May 2018 yet waited eleven months to meet with the Russian leader, even as Kim regularly met with the leaders of other major players on the Korean Peninsula. Kim may have decided after the February 2019 Hanoi summit yielded few results that strengthening ties with Russia, which was more reluctant than China to support UN sanctions against Pyongyang in 2017, was a more viable option for sanctions relief. Aside from the fact that Russia has demonstrated a clear unwillingness to impose new sanctions against the DPRK, North Korean citizens are reported to still be working in Russia in contravention of UN Resolution 2397. North Korean workers’ earnings are said to have suffered because of Russia’s reduced access to hard currency. Yet, the ruble’s continued resilience may mean that earning currency in Russia is still worthwhile for laborers dispatched at Pyongyang’s behest.
Topic:
International Relations, Foreign Policy, Economics, and Politics
Political Geography:
Russia, Europe, Ukraine, Asia, and North Korea

120. United Kingdom Engagement with North Korea

Author:
Alastair Morgan
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
As one of the Allied Powers, The United Kingdom was involved in Post-World War II planning for the Korean peninsula, including the November 1943 Cairo Conference declaration that “… in due course, Korea shall become free and independent.” However, US President Roosevelt’s proposal at the February 1945 Yalta Conference did not establish a formal role for the UK in the trusteeship of Korea. Subsequently, the United States and the Soviet Union agreed to divide the peninsula at the 38th parallel in August 1945, and direct British involvement in the peninsula was limited prior to the Korean War. The United Kingdom’s Korean War contribution to the United Nations Command was second only to the United States, with significant deployments of maritime and air assets in addition to the provision of ground troops. Almost 60,000 British troops saw action, with nearly 5,000 killed, wounded, missing in action, or taken prisoner. Following the armistice, the United Kingdom has continued to send representation to the United Nations Command. The armistice agreement includes an obligation on so-called “Sending States” to respond to renewed hostility. Although there is no automatic UK commitment to send forces, the armistice agreement remains a consideration in engagement with North Korea.
Topic:
International Relations, Foreign Policy, Economics, Education, Politics, and Strategic Engagement
Political Geography:
United Kingdom, Europe, Asia, and North Korea

121. North Korea-Germany Relations: An Ambassador's Perspective of Diplomacy with Pyongyang

Author:
Armin Schäfer
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Germany established diplomatic relations with North Korea, also known as the Democratic People's Republic of Korea (DPRK), in 2001 at the request of the South Korean government, which hoped that Germany and the European Union (EU) would play a more active role in supporting the “Sunshine Policy.” Since then, Germany, together with the other EU states, has sought to moderate North Korea through a “Policy of Critical Engagement” to convince it of the benefits of international cooperation, respect for the rule of law, and improving the political and economic situation of its people. In doing so, Germany could build on the long relationship between North Korea and the former East Germany. “Critical engagement” means being willing to talk and get involved, but without holding back on criticism—and, if need be, imposing sanctions. It also implies that comprehensive engagement is not (yet) possible because of the circumstances. There is ample cause for a constrained approach from North Korea’s aggressive foreign policy and systematic human rights violations to the absence of suitable economic and fiscal conditions for business and development cooperation. Moreover, the lack of will on the part of considerable segments of the North Korean regime to engage with other countries also hampers broader engagement.
Topic:
Foreign Policy, Diplomacy, Economics, Education, and Bilateral Relations
Political Geography:
Europe, Asia, North Korea, and Germany

122. From Coy to Cold Shoulder - The European Union and North Korea

Author:
Glyn Ford
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
The European Union (EU)—then 15 member states prior to its 2004 enlargement to 25—formally established diplomatic relations with Pyongyang in 2001 after a high-level visit to Pyongyang by Göran Persson, Swedish Prime Minister and then President in office of the European Council of Ministers. There, accompanied by EU security affairs chief Javier Solana and EU foreign affairs commissioner Chris Patten, he met with Kim Jong Il. Less than five years before, Commission officials were under orders not to even speak to officials from North Korea, officially the Democratic People's Republic of Korea (DPRK). However, at this meeting, the two parties agreed to establish both Political and Human Rights Dialogues; the latter modeled on the EU’s ongoing Human Rights Dialogue with Beijing. This move by the EU followed pressure from President Kim Dae-Jung in Seoul for allies to normalize relations as part of his ‘Sunshine’ policy. Some of the EU’s peripheral member states had long-standing relations with Pyongyang, in some cases dating back to before they had even joined the EU, with Finland, Sweden, and Denmark establishing relations in 1973, Austria in 1974, and Portugal in 1975. However, only Sweden had chosen to establish an Embassy, with the rest represented from Beijing. At the turn of the century, that pressure from Seoul resulted into most of the remaining dominoes falling in place. Italy and the UK jumped the gun in 2000, with Tony Blair and UK Foreign Minister Robin Cook agreeing to extend diplomatic recognition and establish an embassy en route to the Seoul Asia-Europe Summit.
Topic:
International Relations, Economics, Politics, and European Union
Political Geography:
Europe, Asia, and North Korea

123. From Close Allies to Distant Comrades: The Ups and Downs of the Vietnam-North Korea Relationship

Author:
Khang X. Vu
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
In 2019, more than five decades after North Korean President Kim Il-sung’s last official trip to Vietnam in 1964, Kim’s grandson, North Korean Chairman Kim Jong-un, visited the country at the invitation of the Communist Party of Vietnam General Secretary Nguyen Phu Trong. In a welcoming speech, Trong described the relationship, “although the road is long, our hearts are close.” Kim responded to Vietnamese hospitality, saying North Korea would “staunchly preserve and forever honor the North Korea-Vietnam friendship from generation to generation.” Vietnam and North Korea are among the world’s last five communist party states, along with China, Laos, and Cuba. As such, it is no surprise that the two leaders emphasized common communist values and a shared history of struggle against US imperialism in their speeches. Still, despite the amicable words extolling the longevity of the traditional friendship, both leaders avoided mention of Vietnam’s conflict with the North Korea-backed Khmer Rouge and subsequent occupation of Cambodia from 1978 to 1989. Vietnam’s war with Cambodia was a facet of intra-communist bloc conflicts that spanned the whole of East Asia. Despite Hanoi and Pyongyang’s shared communist ideology, intra-bloc tensions eroded the friendship between the two nations. What were the reasons behind this dramatic shift in bilateral relations?
Topic:
International Relations, Economics, Politics, and Bilateral Relations
Political Geography:
Asia, North Korea, and Vietnam

124. North Korea-Guyana Relations in the Burnham Era

Author:
Moe Taylor
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
During the reign of Forbes Burnham (1923-85), the South American republic of Guyana (formerly British Guiana) became one of North Korea’s greatest foreign policy success stories. Pyongyang not only acquired a new trading partner in the Americas but also gained a vocal advocate for its position on Korean unification on the international stage. These close ties grew in large part from Burnham’s admiration for North Korea, where he saw a highly disciplined citizenry united around the Great Leader, willing to work hard and sacrifice for the collective good. Guyana perhaps did more than any other single actor to help North Korea become viewed as an economic model for developing countries. First elected Premier of the colony of British Guiana in 1964, Burnham became Prime Minister upon independence in 1966 and ruled until his death in 1985. A lawyer and trade unionist from the capital’s Afro-Guyanese middle class, his rise to power was backed by the United States, which viewed him as the only realistic alternative to the communists. While Burnham veered to the Left once in power and frequently irritated Washington, he was more or less tolerated because his pro-Soviet opposition would almost certainly fill his absence.
Topic:
International Relations, Foreign Policy, Politics, and Bilateral Relations
Political Geography:
Asia, North Korea, South America, and Guyana

125. A Monumental Relationship: North Korea and Namibia

Author:
Tycho van der Hoog
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Visitors to Windhoek, the capital city of Namibia, will quickly learn a remarkable fact that is well-known among the local population—much of the capital’s architectural landscape is designed and constructed by North Korea. In recent years, North Korean nationals have built the official residence of the president of Namibia, the State House; the national cemetery for the fallen heroes of the liberation struggle, the National Heroes’ Acre; the national history museum, the Independence Memorial Museum; the Ministry of Defense headquarters and other buildings. The Namibian government thus uses North Korean aesthetics for some of the most important aspects of its power: the president, the history, and the army. This analysis explores the relationship between Namibia and North Korea by providing historical and political context to the aforementioned buildings. Today, Namibia often has the reputation of a quaint and sometimes sleepy destination, tucked away in the southwestern corner of the African continent. Yet, Namibia was at the center of geopolitical tensions for most of the twentieth century. The complicated decolonization process of Namibia, or “the Namibian question,” as it became known in the corridors of the United Nations (UN), had its roots in the aftermath of three decades of German occupation between 1884 and 1915. German South West Africa, the area that became modern Namibia, was transferred to South Africa as a League of Nations mandate territory and renamed “South West Africa.” South Africa viewed the territory as an unofficial fifth province and introduced brutal apartheid legislation. Internal opposition against the South African regime resulted in the formation of nationalist organizations, of which the South West Africa People’s Organization (SWAPO) became the most prominent.
Topic:
International Relations, Economics, Politics, Arts, and Culture
Political Geography:
Africa, Asia, North Korea, and Namibia

126. Japan Matters for America/America Matters for Japan (2023)

Author:
East-West Center
Publication Date:
02-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
The 4th edition of Japan Matters for America/America Matters for Japan, part of the Asia Matters for America initiative, maps the trade, investment, employment, business, diplomacy, security, education, tourism, and people-to-people connections between the United States and Japan at the national, state, and local levels. This publication and the AsiaMattersforAmerica.org website are resources for understanding the robust and dynamic US-Indo-Pacific relationship.
Topic:
International Relations, Climate Change, Economics, Education, Politics, Science and Technology, Governance, Population, Public Health, and Travel
Political Geography:
Japan, Asia, North America, and United States of America

127. Economic Sanctions During Humanitarian Emergencies: The Case of North Korea

Author:
Stephan Haggard and Marcus Noland
Publication Date:
01-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
North Korea is experiencing yet another cycle of humanitarian distress. While sanctions are not the primary cause, they are a contributing factor. This essay examines the channels through which sanctions affect the North Korean economy and reaches four conclusions: First, sanctions have contributed to a deterioration of economic performance. Second, the UNSC’s 1718 Sanctions Committee should consider a thorough review to identify goods that would warrant blanket humanitarian financial sanctions have raised the risk premium on all financial transactions with North Korea; the sanctioning authorities need to do a better job of clarifying transactions permissible under humanitarian exemptions. Finally, while the global community should reassess its policies, the government of North Korea bears responsibility as well. The benefits of sanctions relief will be diminished if North Korea refuses to engage constructively with the international community on a broader range of issues running from basic humanitarian relief to economic reform.
Topic:
International Relations, Economics, Politics, Sanctions, and Humanitarian Crisis
Political Geography:
Asia and North Korea

128. Trade Balances and International Competitiveness in Cyber-physical, Digital Task-intensive, ICT Capital-intensive and Traditional Industries

Author:
Alexandra Bykova and Roman Stöllinger
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this report, we analyse the international competitiveness of the EU in four industry groups over the period 1995-2018. The groups are delineated by specific factor intensities, where these intensities are assessed from digital tasks performed by labour services and ICT capital stocks. The EU’s positions relating to trade balances, revealed comparative advantages and unit value ratios are assessed relative to its main competitors, such as the US, China, Japan and South Korea. The trade specialisation patterns confirm EU advantages in traditional industries, which still represent the largest part of global trade, and in the group of digital task-intensive industries. In the cyber-physical group of industries, which are characterised by both high digital task and ICT capital intensities, the EU records a trade deficit, although this has been receding in recent years. Competitiveness indicators depict heterogeneity among EU countries. The loss of international competitiveness for some technology front-runners is a worrying sign. On the positive side, however, a reduction in trade deficits or an improvement in product quality and market shares is evident for certain EU countries, especially in the Central European region.
Topic:
International Trade and Finance, European Union, Trade, Digitalization, and International Competition
Political Geography:
Japan, China, Europe, Asia, South Korea, and United States of America

129. Competition Versus Exclusion in U.S.–China Relations: A Choice Between Stability and Conflict

Author:
Jake Werner
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The Biden administration’s China policy is pulling in two different directions, but the tension is not widely recognized because every antagonistic measure aimed at China is filed under the heading of competition. As a result, Washington’s debate on China loses the crucial distinction between “competition” — a kind of connection with the potential to be carried on in healthy ways — and “exclusion,” an attempt to sever connection that necessarily leads to conflict if the domain is significant. Biden’s exclusion policies focus on cutting China out of the principal growth sectors in the global economy and the most lucrative and strategically important markets. Administration officials think their approach is sensible and moderate compared to more extreme voices in Washington calling for exclusion in all realms. Even so, the Biden approach is highly destabilizing because both countries consider the targeted areas vital to the future of global authority and economic prosperity, and because the attempt to trap China in a position of permanent subordination represents a serious threat to the legitimacy of China’s leaders. Healthy competition requires a shared stake in the future. In earlier periods, despite sharp tensions and mutual suspicions suffusing the relationship, U.S.–China ties were stabilized first by the joint project of containing Soviet power and then by a shared commitment to market–led globalization. Now that leaders on both sides are disenchanted with key facets of globalization, the two countries are caught in an escalatory cycle of exclusion and retaliation that risks hardening zero–sum pressures in the global system into a permanent structure of hostility. In such a scenario, each country would organize its own society and international partners to undermine the other, dramatically increasing the likelihood of violent conflict. The warning signs are already clear on both sides, as each increasingly interprets every action on the other side as part of a conspiracy to achieve domination. Notwithstanding widespread complacency about the risks of conflict after a tentative diplomatic opening in recent months, the rise of securitized thinking in both countries is steadily building institutional and ideological momentum for confrontation that can only be broken by a new and inclusive direction for the relationship.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Political stability, Conflict, Strategic Competition, and Competition
Political Geography:
China, Asia, North America, and United States of America

130. Common Good Diplomacy: A Framework for Stable U.S.–China Relations

Author:
Jake Werner
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
One curious feature of the emerging U.S.–China conflict is that each side claims to be defending the existing international order against the threat the other poses to it. Hidden beneath this seemingly irreconcilable dispute is a crucial truth: both the United States and China are status quo powers, sharing a deep interest in a stable global security environment and an open global economy. At the same time, both countries are pursuing urgently needed reforms to a global system increasingly defined by zero–sum pressures. Yet both are prone to exclusionary impulses that threaten to ruin the possibility of a shared reform agenda and instead throw the world into conflict. Working with China to revitalize the international order would not only prevent such a conflict, it would also establish the conditions for healthy forms of both competition and cooperation in the U.S.–China relationship. But how can U.S. leaders pursue such a project without simply giving a pass to China’s sometimes undesirable behavior? The focus should be diplomacy to frame an inclusive global system, focusing on actions that would reduce zero–sum constraints. In the three key realms of global authority and security, the global economy, and climate change, China is currently engaged in counterproductive moves that exacerbate existing tensions but is also pursuing promising reforms that could expand the scope for positive–sum outcomes. Rather than seeking to counter every Chinese initiative, U.S. leaders should carefully distinguish between beneficial and damaging outcomes, affirming and building on China’s constructive proposals and managing differences through negotiation rather than polemics and confrontation. Some potentially fruitful areas for cooperation include joint action to limit climate change, development in the Global South, revising the global guidelines for economic statecraft, and reforming international institutions to create a more open and inclusive world order. Pursuing cooperative efforts in such areas would both create direct benefits and improve U.S. credibility as a responsible leader of the world order rather than simply a rival of China. It would also open space to pursue competition within a rules–based order rather than risk a slide into destructive zero–sum conflict.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Political stability, and International Order
Political Geography:
China, Asia, North America, and United States of America

131. The Value of Reporting: National Reporting Practices under the UN Sanctions Regime on North Korea

Author:
David Atwood, Gian Giezendanner, and Sophie Timmermans
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Small Arms Survey
Abstract:
The UN Security Council has imposed a broad range of sanctions on the Democratic People’s Republic of Korea, requesting member states to report on how they are implementing these measures. Many factors affect the national reporting practices of states, with some having failed to submit any reports. Reporting serves as an important measure of transparency and trust-building concerning state compliance with international commitments in general. The frequency and depth of reporting on national implementation of the sanctions by UN member states help to discern the regime’s effectiveness. Failure to meet reporting deadlines, the use of vague language, and limited information on national implementation all dampen the usefulness of reporting on the implementation of the DPRK sanctions regime. The Value of Reporting: National Reporting Practices under the UN Sanctions Regime on North Korea—a report from the Survey’s Strengthening Implementation and Enforcement of the Arms Embargo on North Korea (SAENK) project—highlights factors that affect reporting, providing a more nuanced picture of national practices. The report also examines national DPRK sanctions regime reporting in relation to reporting on other international arms control instruments, with the aim of revealing potential mutually beneficial synergies.
Topic:
Arms Control and Proliferation, United Nations, and Sanctions
Political Geography:
Asia, North Korea, and Global Focus

132. China Maritime Report No. 25: More Chinese Ferry Tales: China's Use of Civilian Shipping in Military Activities, 2021-2022

Author:
J. Michael Dahm
Publication Date:
01-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
This report provides a comprehensive assessment of Chinese civilian shipping support to the People’s Liberation Army (PLA), examining civil maritime-military activities from October 2021 through September 2022. As of 2022, the PLA and its reserve civilian merchant fleet are still probably unable to provide significant amphibious landing capabilities or the maritime logistics in austere or challenging environments necessary to support a major cross-strait invasion of Taiwan. However, large volume lift exercises conducted in 2022 suggest that the PLA has made significant progress in the use of civilian vessels for the large-scale lift of PLA troops and equipment into undefended ports, a capability that may be leveraged in a military assault on Taiwan. This report also discusses other civil maritime-military activities not previously observed, including the use of civilian vessels and infrastructure to conceal PLA troop movements, operations from austere ports, use of ocean-going vessels to transport PLA forces along inland waterways, and logistics support for China’s South China Sea outposts.
Topic:
Infrastructure, Military Affairs, Shipping, Logistics, and People's Liberation Army (PLA)
Political Geography:
China, Taiwan, and Asia

133. China Maritime Report No. 26: Beyond the First Battle: Overcoming a Protracted Blockade of Taiwan

Author:
Lonnie D. Henley
Publication Date:
03-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
If there is a war over Taiwan, an extended Chinese blockade is likely to determine the outcome. While a blockade might include intercepting ships at sea, the primary focus would be on sealing airfields and ports, particularly on the west coast of Taiwan. China could sustain that type of blockade indefinitely. Penetrating a prolonged blockade and keeping Taiwan alive would require a serious U.S. investment in systems and operational concepts that we currently do not have. Unless we make that investment, we may win the first battle, defeating an attempted landing. But we cannot win the war.
Topic:
Infrastructure, Military Affairs, Maritime, Port, People's Liberation Army (PLA), and Blockade
Political Geography:
China, Taiwan, and Asia

134. China Maritime Report No. 27: PLA Navy Submarine Leadership - Factors Affecting Operational Performance

Author:
Roderick Lee
Publication Date:
06-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
The way the People’s Liberation Army Navy (PLAN) selects and manages its submarine officers increases the likelihood of human performance errors onboard a PLAN submarine. First, PLAN submarine officers are selected from applicants with among the lowest college entrance examinations of any PLA educational institution, suggesting that PLAN submariners are among the service’s least talented officers. Second, the Party Committee system at the apex of decision-making aboard PLAN submarines may be less agile than other approaches to command, at least in certain circumstances. Lastly, while the policy of embarking flotilla leaders senior to the submarine captain may reduce some of the negative effects associated with the first two conditions, it could lead to reduced performance when senior leaders are not present. If external events during wartime stressed these factors, the likelihood of human-induced error events in the PLAN submarine force could increase substantially.
Topic:
Armed Forces, Leadership, Navy, Maritime, Submarines, and People's Liberation Army (PLA)
Political Geography:
China and Asia

135. China Maritime Report No. 28: Bitterness Ends, Sweetness Begins: Organizational Changes to the PLAN Submarine Force Since 2015

Author:
J. Michael Dahm and Alison Zhao
Publication Date:
06-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
“Above-the-neck” reforms in the People’s Liberation Army (PLA) that began in 2015 directed the development of a new joint operational command system that resulted in commensurate changes to PLA Navy submarine force command and control. Additional changes to tactical submarine command and control were driven by the evolution and expansion of PLA Navy surface and airborne capabilities and the introduction of new longer-range submarine weapons. Follow-on “below-theneck” reforms inspired significant organizational change across most of China’s military services. However, the PLA Navy submarine force, for its part, did not reorganize its command structure but instead focused on significant improvements to the composition and quality of its force. Between 2017 and 2023, the PLA Navy submarine force engaged in a notable transformation, shuffling personnel and crews among twenty-six submarines—eleven newly commissioned and fifteen since retired—relocating in-service submarines to ensure an equitable distribution of newer, more capable submarines across the fleet. Observations of infrastructure improvements at PLA Navy submarine bases portend even more changes to submarine force structure in the coming years.
Topic:
Armed Forces, Reform, Maritime, Submarines, and People's Liberation Army (PLA)
Political Geography:
China and Asia

136. China Maritime Report No. 29: PLAN Mine Countermeasures: Platforms, Training, and Civil-Military Integration

Author:
Brian Waidelich and George Pollitt
Publication Date:
07-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
The People’s Liberation Army Navy (PLAN) has made incremental progress in its mine countermeasures (MCM) program in recent years. The PLAN’s current inventory of about 60 MCM ships and craft includes classes of minehunters and minesweepers mostly commissioned in the past decade as well as unmanned surface vessels (USVs) and remotely operated vehicles with demonstrated explosive neutralization capability. Despite the addition of these advanced MCM platforms and equipment, experts affiliated with the PLAN and China’s mine warfare development laboratory have serious reservations about the PLAN’s current ability to respond to the full range of likely threats posed by naval mines in future contingencies. The PLAN’s MCM forces are currently organized for operations near China’s coastline, but writings by Chinese military and civilian experts contend that to safeguard Beijing’s expanding overseas interests, the PLAN must develop MCM capabilities for operations far beyond the First Island Chain. PLAN and civilian mine warfare experts have proposed various solutions for offsetting perceived shortcomings in the PLAN’s MCM program, including the development of autonomous USVs and unmanned underwater vehicles (UUVs), deployment of modularized MCM mission packages on ships such as destroyers and frigates, and mobilization of civilian assets such as ships and helicopters in support of MCM operations. Although there appears to have been little to no adoption of these proposed solutions to date, the PLAN recognizes MCM as one of its biggest challenges, and one can expect the PLAN to continue making measured progress in its MCM program in the years ahead.
Topic:
Armed Forces, Integration, Landmines, Civil-Military Relations, and People's Liberation Army (PLA)
Political Geography:
China and Asia

137. China Maritime Report No. 30: A Brief Technical History of PLAN Nuclear Submarines

Author:
Christopher P. Carlson and Howard Wang
Publication Date:
08-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
After nearly 50 years since the first Type 091 SSN was commissioned, China is finally on the verge of producing world-class nuclear-powered submarines. This report argues that the propulsion, quieting, sensors, and weapons capabilities of the Type 095 SSGN could approach Russia’s Improved Akula I class SSN. The Type 095 will likely be equipped with a pump jet propulsor, a freefloating horizontal raft, a hybrid propulsion system, and 12-18 vertical launch system tubes able to accommodate anti-ship and land-attack cruise missiles. China’s newest SSBN, the Type 096, will likewise see significant improvements over its predecessor, with the potential to compare favorably to Russia’s Dolgorukiy class SSBN in the areas of propulsion, sensors, and weapons, but more like the Improved Akula I in terms of quieting. If this analysis is correct, the introduction of the Type 095 and Type 096 would have profound implications for U.S. undersea security.
Topic:
Nuclear Weapons, Armed Forces, Maritime, Submarines, and People's Liberation Army (PLA)
Political Geography:
China and Asia

138. China Maritime Report No. 31: China's Submarine Industrial Base: State-Led Innovation with Chinese Characteristics

Author:
Sarah Kirchberger
Publication Date:
09-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
In recent years, China’s naval industries have made tremendous progress supporting the modernization of the People’s Liberation Army Navy (PLAN) submarine force, both through robust commitment to research and development (R&D) and the upgrading of production infrastructure at the country’s three submarine shipyards: Bohai Shipyard, Huludao; Wuchang Shipyard, Wuhan; and Jiangnan Shipyard, Shanghai. Nevertheless, China’s submarine industrial base continues to suffer from surprising weaknesses in propulsion (from marine diesels to fuel cells) and submarine quieting. Closer ties with Russia could provide opportunities for China to overcome these enduring technological limitations by exploiting political and economic levers to gain access to Russia’s remaining undersea technology secrets.
Topic:
Nuclear Weapons, Navy, Industry, Submarines, and People's Liberation Army (PLA)
Political Geography:
China and Asia

139. The Maritime Fulcrum of the Indo-Pacific: Indonesia and Malaysia Respond to China’s Creeping Expansion in the South China Sea

Author:
Scott Bentley
Publication Date:
01-2023
Content Type:
Book
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
China now is attempting to expand its control to the southernmost extent of its nine-dash-line claim in the South China Sea, in waters ever closer to Indonesian and Malaysian shores. This area of the South China Sea, spanning from Indonesia’s Natuna Islands to the South Luconia Shoals, has greater strategic importance than the Spratly or Paracel Island chains farther to the north. Whereas the Spratlys have for centuries been regarded as “dangerous ground” and commercial mariners have avoided them, the vital sea lines of communication (SLOCs) connecting the Pacific and Indian Oceans flow through this part of the southern South China Sea. Therefore, these areas are far more vital to international commerce and navigation than the dangerous grounds closer to China’s Spratly Islands outposts.
Topic:
Territorial Disputes, Armed Forces, Maritime, Commerce, and Expansion
Political Geography:
China, Indonesia, Malaysia, Asia, Indo-Pacific, and South China Sea

140. Commercial Satellite Use Catalyzes Nuclear-Armed States to Combat: A Wargame After-Action Report (Occasional Paper 2306)

Author:
Henry Sokolski
Publication Date:
10-2023
Content Type:
Special Report
Institution:
Nonproliferation Policy Education Center
Abstract:
Recent reports of Elon Musk’s refusal to allow Ukraine to use his satellites to help it mount strikes against Russian military targets in Crimea pose a basic question: Just how sustainable might military use of commercial satellites be? So far, the United States and other spacefaring nations have deferred or taken a hands-off approach to dealing with this issue. When it comes to space, states are roughly where they were with sea power in the 1600s and air power before World War I: dramatic acts of air war and naval piracy were about to ensue, but instituting national or international regulation hardly seemed urgent… until they were. How prepared are we to deal with such a transition in space? Can we keep non-state and state actors from using space to intensify the pace of military air and ground operations? Or are space Lusitanias, in which the world’s major powers get dragged into wars, more likely? To find out, the Nonproliferation Policy Education Center (NPEC) designed and conducted a wargame this summer tailored to this purpose. SpaceNews published the game’s results (see below). The game’s play begins in 2027 with a Pakistani terrorist group’s hijacking of “commercial” Chinese satellite services to mount an attack against an Indian nuclear base. The terrorists’ aim is to drag Pakistan into a war with India to help decide the status of Kashmir. Through a number of twists and turns, the game ends with intensified ground operations between Pakistan and India and China and the United States engaging in space combat against a set of each others’ commercial space satellites. Are we ready for this future? The short answer is no. The long answer can be teased from the game’s report and its key takeaways below.
Topic:
Defense Policy, Nuclear Weapons, Weapons, Space, War Games, Satellite, and Russia-Ukraine War
Political Geography:
South Asia and Asia

141. Time to say goodbye? The impact of environmental regulation on foreign divestment

Author:
Haiou Mao, Holger Görg, and Guopei Fang
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
We look at divestments by foreign firms – a topic that has received comparatively little attention in the literature – and investigate how changes in the regulatory environment in the host country may impact on such divestment decisions. We use the implementation of China’s Two Control Zone (TCZ) policy as a “quasi-natural experiment”, using detailed firm level combined with city level data for the empirical analysis. Our results show that the implementation of TCZ policy has led to higher probabilities of divestments by foreign firms in targeted TCZ cities and industries. The mechanism behind this seems to be a TCZ-induced increase in discharge fees and efforts to reduce SO2 emissions. Allowing for heterogeneity of effects, we find that the effect is particularly strong for firms from source countries with less stringent environmental regulation, and those using less advanced technology. We furthermore show that firms using intermediates from polluting industries also experience a higher probability of divestment.
Topic:
Climate Change, Environment, Foreign Direct Investment, Regulation, Business, and Divestment
Political Geography:
China and Asia

142. China as an International Lender of Last Resort

Author:
Sebastian Horn, Bradley C. Parks, Carmen M. Reinhart, and Christoph Trebesch
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper shows that China has launched a new global system for cross-border rescue lending to countries in debt distress. We build the first comprehensive dataset on China’s overseas bailouts between 2000 and 2021 and provide new insights into China’s growing role in the global financial system. A key finding is that the global swap line network put in place by the People’s Bank of China is increasingly used as a financial rescue mechanism, with more than USD 170 billion in liquidity support extended to crisis countries, including repeated rollovers of swaps coming due. The swaps bolster gross reserves and are mostly drawn by distressed countries with low liquidity ratios. In addition, we show that Chinese state-owned banks and enterprises have given out an additional USD 70 billion in rescue loans for balance of payments support. Taken together, China’s overseas bailouts correspond to more than 20 percent of total IMF lending over the past decade and bailout amounts are growing fast. However, China’s rescue loans differ from those of established international lenders of last resort in that they (i) are opaque, (ii) carry relatively high interest rates, and (iii) are almost exclusively targeted to debtors of China's Belt and Road Initiative. These findings have implications for the international financial and monetary architecture, which is becoming more multipolar, less institutionalized, and less transparent.
Topic:
Debt, Emerging Markets, International Trade and Finance, Financial Crisis, Belt and Road Initiative (BRI), and Sovereign Debt
Political Geography:
Africa, China, and Asia

143. A post-Western global order in the making? Foreign policy goals of India, Turkey, Brazil and South Africa

Author:
Sinikukka Saari, Toni Alaranta, Bart Gaens, Katariina Mustasilta, and Lauri Tahtinen
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
India, Turkey, Brazil and South Africa are striving for a more multipolar, post-Western world order in which they would not be seen merely as auxiliary powers to the bigger players, but as independent great powers. For them, a key foreign policy goal is to transform global governance institutions. They all call for a permanent seat for their country on the UN Security Council. To achieve that, the states need backing from more than the Western states – and this logically strengthens the multi-aligned logic of their foreign policies. India, Turkey, Brazil and South Africa see Russia’s war of aggression in Ukraine and the Western countermeasures from their own perspective. They describe Russia’s invasion as a violation of international law, but see the war primarily as a Western concern, not theirs. Although these states are critical towards the West, they are not anti-Western and they all value multilateral institutions; their foreign policy goals and features offer opportunities for the EU to engage with them, but that needs to happen on a more equal footing than what has traditionally been the case.
Topic:
Foreign Policy, UN Security Council, Multipolarity, International Order, and Russia-Ukraine War
Political Geography:
Africa, Turkey, India, Asia, Brazil, and Latin America

144. Russia and Kazakhstan in the global nuclear sector: From uranium mining to energy diplomacy

Author:
Marco Siddi and Kristiina Silvan
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Amidst heightened geopolitical competition and low-carbon energy transformations, several states, notably China and countries in the Global South, have decided to invest in nuclear power, seeing it as a secure and low-emission alternative to fossil fuels. Kazakhstan is the world’s largest producer and exporter of unenriched uranium. It has been a reliable supplier to the West for decades, but its nuclear sector is closely linked to Russia’s, which has caused some concern in the European Union and the United States. Russia is a major player in the field thanks to its global exports of enriched uranium and nuclear technology. Its state nuclear company Rosatom has a large portfolio of international customers and numerous projects, mainly outside the West. Russia’s nuclear sector has become an important aspect of its energy diplomacy. While the nuclear sector has not been sanctioned, geopolitical tensions and instability in uranium-producing countries have increased security of supply risks for the West, which relies heavily on imports of both uranium and nuclear fuel.
Topic:
Diplomacy, Mining, Post-Soviet Space, Nuclear Energy, and Energy
Political Geography:
Russia, Eurasia, Kazakhstan, and Asia

145. The changing dynamics of the G7, G20 and BRICS: Informal multilateral cooperation is increasingly important in an era of strategic competition

Author:
Juha Jokela and Alana Saul
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Increasing strategic competition among major powers has had a negative effect on the efficacy of formal multilateral cooperation. This has also been reflected in informal forums such as the G7, G20 and BRICS. Yet some new dynamics have emerged. Since Russia was excluded from the G8 in 2014, the G7 has become a key forum for Western cooperation. Russia’s full-scale invasion of Ukraine has further geared the group towards a stronghold of Western economies and democracies. The BRICS group has continued to meet at leaders’ level, and has consolidated its position. Despite variation in its members’ interests, the group aims to balance the G7, and its importance for China and Russia has been elevated. Currently, the G20 constitutes a forum in which strategic competition can potentially be managed. Along with the G7 and BRICS countries, other powers play an increasingly notable role. The dynamics of the group also displays an increasing “Southernization” of informal multilateral cooperation.
Topic:
European Union, Democracy, Multilateralism, and Strategic Competition
Political Geography:
Russia, China, Europe, Asia, and United States of America

146. Water diplomacy analysis for Central Asia: Dynamics of insecurity and sources of resilience

Author:
Emma Hakala, Katariina Mustasilta, and Mohammed Hadi
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Finnish Institute of International Affairs
Abstract:
Climate change, geopolitical tensions and other global crises emphasise the need for water diplomacy, which refers to the prevention and resolution of political tensions with the help of water expertise and diplomatic tools. Disputes over water can contribute to instability, but fair and well-governed management of water resources can serve as a platform for cooperation and peacebuilding. In Central Asia, water has a crucial role as a precondition for economic and social development, but also for relations between the countries in the region due to the large­ly transboundary and shared character of resources. Questions about water use have been intertwined in disputes about other unresolved issues between the countries in the past. As the impacts of climate change become increasingly visible and are likely to further reduce water access, it is important to better understand the water conflict and resilience dynamics. This analysis traces the potential for water diplomacy in Central Asia. It identifies major conflict factors, peace enablers, regional dynamics and the role of water resources. The analysis takes an anticipatory, forward-looking approach, particularly focusing on sources of resilience and potential points of cooperation.
Topic:
Climate Change, Water, Governance, Crisis Management, and Resilience
Political Geography:
Central Asia and Asia

147. Enhancing small state preparedness: Risks of foreign ownership, supply disruptions and technological dependencies

Author:
Mikael Mattlin, Shaun Breslin, Elina Sinkkonen, Liisa Kauppila, and Annika Björkdahl
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The post-Cold War liberalist view, according to which interdependences supported a virtuous cycle of mutual gains, has given way to a realist-tinged view that regards economic interdependence as a cause of insecurity and an element in conflicts. In this new environment of increasing great power competition and technological decoupling, all states are not created equal. Major states such as the United States and China can be system shapers, whereas small states tend to be system takers. Unlike smaller states, they have a greater ability to use their investment leverage, supply chain dominance and control of core technologies. For smaller states with open economies, such as Finland and Sweden, these capabilities of major powers create vulnerabilities in the form of security risks of foreign ownership, supply disruptions and critical technological dependencies. The report explores how small states can mitigate such risks. A series of innovative Delphi backcasting exercises in Finland and Sweden brought together 113 sectoral experts and generalists to ponder ways to prevent dystopian scenarios from unfolding. The target years of the scenarios extended from 2027 to 2035, encouraging ideas on both short- and longer-term solutions. Instead of aiming for a consensus of expert views, the process sought to produce a variety of effective means and measures that a small state could choose to adopt. The exercise consisted of nine scenarios, presented as comic art. The narratives on the risks of foreign ownership focused on 1) acquisitions of gaming companies gathering personal data, 2) transfers of real estate ownership in Lapland and 3) venture capital investments in emerging technology start-ups. The scenarios on supply disruptions dealt with 4) discriminatory practices limiting access to antibiotics, 5) political retaliation limiting access to water treatment components and 6) sanctions on wind power materials, components and minerals. As for high technology dependencies, the cases included 7) the maintenance of military technology, 8) the cybersecurity of health technology and 9) the supply of chemicals for research and development activities. According to the report, small states have the least leeway in navigating the risk environments created by technological dependencies, whereas the toolkits to tackle the potential dangers of foreign ownership and supply disruptions are more extensive. Although different issues and insecurities require different bespoke solutions, all the risk categories call for active mitigation efforts. Most of the suggested Finnish and Swedish expert solutions can be clustered into three alternative approaches: protectionist/interventionist, liberal and technologically oriented. Protectionist/interventionist solutions would expand the state’s powers in controlling, guiding and limiting economic activities. Key suggestions included: covering acquisitions and greenfield investments in national foreign direct investment screening screening real estate acquisitions with a wide range of countries of origin imposing country-specific limitations to real estate acquisitions screening venture capital investments in emerging technologies initiating a national security act to limit foreign control rapidly imposing country- and company-specific limitations to bids in critical industries increasing tariffs supporting domestic or EU-level production through subsidies and industrial policy friendshoring the production of critical goods expanding the scope of supply stockpiling in pharmaceuticals and water treatment components The more liberal approach towards national preparedness would focus on solving the challenges primarily through carrots instead of sticks – to avoid limiting entrepreneurial freedoms and interfering with the dynamics of the capitalist market economy. The proposed solutions included: initiating value debates to guide individuals’ choices when accepting investments formulating a national innovation strategy to boost domestic companies’ operating conditions in emerging technology fields teaching “technology literacy” to guide the use of foreign-owned products engaging all stakeholders in making decisions on foreign ownership diversifying the sources of critical goods such as antibiotics enhancing awareness of risks and making “plan Bs” in supply chain management deepening the EU’s single market to offer genuine scalability opportunities for start-ups The third, more technologically oriented approach would rely on new innovations or technical solutions to enhance small state preparedness. Key ideas included: innovating new medicines to replace antibiotics prioritising non-conventional technologies such as small modular reactors (SMRs) enhancing domestic capacity to produce key components with 3D printing researching alternative materials to replace critical chemicals developing the recycling, recovery and transportation of critical chemicals adopting geofencing and coding solutions to enhance cybersecurity designating emerging technologies as focus areas in higher education increasing the adaptability of technical solutions through standardisation These three approaches prioritise different key solutions for enhancing small state preparedness. However, they represent generic policy preferences rather than ready-made policy recommendations. Ideally, states can formulate their own pick-and-mix toolkit by combining elements from the different approaches. The complementary nature of some of the expert views was also suggested by the fact that many – even most – respondents argued for diversification as a solution to various challenges. For example, and regardless of the chosen strategy, tendering rules could be improved by placing quality over price, taking geopolitical risks into account and allowing multiple winners in contrast to the currently dominant winner-takes-it-all logic, which leads to overly concentrated supply chains. Moreover, at least minor legislative tightenings were widely proposed to be made on foreign ownership – especially with regard to that of nationals of authoritarian states. These changes were, however, typically proposed to be complemented with such balancing acts as long-term leases and incentives to develop and acquire domestic products and companies. Ultimately, by highlighting alternative approaches to small state preparedness, this report seeks to encourage democratic discussion on a broader political choice: what type of state and economy do we want in the future? It is not only their identity that guides what states do; adopted policies and means also shape state identities over time.
Topic:
Security, Science and Technology, Supply, and Geoeconomics
Political Geography:
China, Finland, Asia, Sweden, and United States of America

148. The Great Supply Chain Shift from China to South Asia?

Author:
Ganeshan Wignaraja
Publication Date:
07-2023
Content Type:
Research Paper
Institution:
Gateway House: Indian Council on Global Relations
Abstract:
Global supply chains connect world industry and international trade in manufactures. East Asia’s dominance with China as the preferred assembly hub in global supply chains has brought unprecedented regional prosperity, but South Asia remains a latecomer. However, pandemic-related and post-pandemic continuing disruptions to supply chains and slowing growth are being keenly felt, dampening China’s attractiveness. In an uncertain global economy, increasingly footloose foreign investors are looking for alternative production locations. Is it South Asia’s turn to prosper through supply chains in this uncertain world? This is the topical public policy question facing India and the others in South Asia. This paper discusses the concept of global supply chains, the industrial rise of East Asia, drivers of supply chain relocation from China, South Asia’s prospects, India as a complementary hub and policy lessons from East Asia’s industrial success. For the purposes of this paper, South Asia is broadly defined as the India and its contiguous countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
Topic:
Industrial Policy, Monetary Policy, Foreign Direct Investment, Industrialization, COVID-19, Supply Chains, and Geoeconomics
Political Geography:
China, South Asia, Asia, Southeast Asia, and United States of America

149. Allies Help Those Who Help Themselves: How Estonia and Japan Approach Deterrence

Author:
Yoko Iwama, Tetsuo Kotani, Sugio Takahashi, Tony Lawrence, and Henrik Praks
Publication Date:
09-2023
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Up until the blatant act of Russian aggression in Ukraine in 2022, the West had been gradually shifting its attention towards East Asia, with China seen as the primary challenge of the first half of the 21st century. The new context requires a thorough reassessment of international security architecture by all national stakeholders. This, in turn, offers Estonia and Japan the opportunity to enrich their security perspectives on common strategic threats, as well as on broader geopolitical shifts caused by Russia and China. This report introduces several aspects of these revolutionary developments, their background, and their potential implications, some of which have already been reflected in the updated strategic documents unveiled by US and Japanese defence communities. Taken together, these documents make a case for an enhanced partnership between Japan, the US, and Europe that would prepare like-minded allies to respond to any security crisis. In the eventuality of a crisis resulting in an actual military confrontation, the report compares China’s missile supremacy and Japan’s long-range standoff maritime firepower strategies by grounding this analysis in the theory of victory. Charting a more favourable course forward, the report assesses the current state of deterrence in the Baltics by detailing the key developments in regional defence posture and planning, with a clear shift towards forward defence. Centring on emerging cross-border risks posed by hybrid warfare and using Estonia as a case study for vulnerabilities, the report proposes ways to mitigate these risks by advancing the role of deterrence. The report’s recommendations are as follows: To establish a cooperative format between NATO and Indo-Pacific nations along the lines of the Euro-Atlantic Partnership and Cooperation Council and open NATO’s liaison office in Japan. To create the Baltic-Japan security and defence 1.5 Track dialogue forum. To develop ties between the defence intelligence services of Estonia and Japan in order to better understand the threats posed by Russia and China. To facilitate networking in the fields of concept development, capability planning, doctrine, and military education to address the challenges of multi-domain operations. To explore possibilities for closer defence industrial cooperation and technology sharing between Estonia and Japan in cyber security, artificial intelligence, sensorics, robotics, and electronic warfare. To engage Estonia’s knowledge and experience when adopting NATO’s standards and practices in Japan’s future capability development in pursuit of interoperability. To hold joint exercises in integrated air and missile defence, coastal defence, critical undersea infrastructure protection, etc. As Japan seeks to forge closer defence relations with Europe and European nations and enhance their defence ties with the democracies in the Indo-Pacific area, the need to understand better how cooperation between Estonia and Japan contributes to the emerging Euro-Pacific deterrence agenda will persist.
Topic:
Security, Defense Policy, NATO, European Union, Cybersecurity, Deterrence, and Resilience
Political Geography:
Japan, China, Europe, Ukraine, Taiwan, Asia, and Estonia

150. Europe’s Indo-Pacific Tilt: Estonian and Japanese Interests

Author:
Frank Jüris, Steven Blockmans, Kazuto Suzuki, Sanshiro Hosaka, and Maret Nukke
Publication Date:
01-2023
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Reshaped by the new great power competition, the international order has been undergoing revolutionary transformations. Revanchist Russia has unleashed a barbarian war against a sovereign European nation, while increasingly militarised and contentious China looms as a not-so-insidious threat in the Indo-Pacific. In response to these shifting dynamics and mounting geopolitical tensions, Europe is now awakening to the new reality and paying greater attention to the far-away region. At first glance, Estonia and Japan may seem like odd partners, yet they share vital commonalities and common interests impossible to ignore. Amidst Russia’s ongoing brutal invasion of Ukraine and China’s territorial claims over Taiwan, Japan’s strong advocacy in the Indo-Pacific region confirms how essential unity, consensus, and solidarity are for tackling global challenges in an environment of limited resources. This report brings together foreign and security policy experts to improve our understanding of each other’s security concerns — be it threats in cyber and information space, ruptures in trade, energy, and food, or authoritarian neighbours — by taking a step closer to a shared threat perception. Acknowledging unprecedented challenges to global security and rules-based order that democracy and democracies are confronted with from East to West, this report critically examines whether the European Union’s regional strategy maximises and realises the union’s full potential in the Indo-Pacific, which will test its actorness and agency and determine the role for the decades — if not centuries — to come. As the long-distance race for technological hegemony between the U.S. and China — of which Japan and Estonia are by far neither neutral nor casual observers — tightens, the report highlights national policies and capabilities needed to stay competitive, as well as to reduce known and potential vulnerabilities, from the perspective of economic security. China’s dramatic rise — as not only an economic but also a military superpower — entails an assertive and oftentimes assailing foreign policy that is felt both in Europe and the Indo-Pacific alike. The authoritarian regime in Beijing cleverly exploits the vacuum of power wherever it finds any. Cautioning against repeating the old mistakes of China-centrism, the report advocates for fostering multifaced cooperation with Japan in the framework of EU-Japan and Estonia-Japan relations. Thus, the report recommends that the EU as a whole and its individual member states should continue building on the positive momentum generated by the Indo-Pacific strategies and modify their approach to incorporate like-minded partners. From freedom of information to information- and cybersecurity, the report reminds us that leadership matters. It explains the changing tides in the Japanese mainstream public opinions that have already washed away the decades of harmful Russia-centrism from media, academia, and corridors of power and thus resulted in a society successfully resisting malign foreign disinformation campaigns. Estonia and Japan should facilitate digital transformation beyond their national borders, promote economic security, and exert geopolitical power through domestically produced sophisticated technology. The report also probes Sino-Russian relations from the perspective of Chinese strategic interests in its own neighbourhood. Able to contain the West by redirecting its focus and resources towards the war in Ukraine, Russia creates additional operation space for China in the Taiwan Strait. With the war raging In Europe, it should be clear that appeasing an aggressor with concessions and seemingly clever compromises only emboldens the latter, making it even more contentious in both territorial claims and bellicose actions. To prevent a conflict from breaking out in the Taiwan Strait, the EU should be building up allied immunity by counterbalancing China in the Indo-Pacific and proactively defending the rules-based world order.
Topic:
Defense Policy, European Union, Cybersecurity, Belt and Road Initiative (BRI), ASEAN, and Economic Security
Political Geography:
Russia, Japan, China, Europe, Ukraine, Taiwan, Asia, Estonia, and Indo-Pacific