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1481. Projecting China's Current Account Surplus

Author:
William R. Cline
Publication Date:
04-2012
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
For several years China has run persistent current account surpluses that have been widely seen as the most serious single source of global imbalances on the surplus side, and mirrored by persistent systemically large US current account deficits on the other side. In recent years, however, both imbalances have shown moderation (figure 1). China's surpluses have posed questions of international policy rules, because they have reflected in part an unwillingness to allow the exchange rate to appreciate sufficiently to act as an effective equilibrating mechanism. Exchange rate intervention resulted in a massive buildup of international reserves, which rose from $615 billion at the end of 2004 to $3.2 trillion at the end of 2011 (IMF 2012a).
Topic:
Economics, Emerging Markets, Foreign Exchange, and International Trade and Finance
Political Geography:
United States, China, and Israel

1482. Overlooked Opportunity: Tradable Business Services, Developing Asia, and Growth

Author:
J. Bradford Jensen
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper argues that developing Asia is overlooking an opportunity for increased growth and development through trade in business services. Developing Asia would benefit from liberalizing services trade as it has benefited from liberalizing goods trade. This argument rests on these key findings: business services are important for growth, developing Asia is relatively under-endowed with business services, many business services are tradable, and developing Asia has relatively high barriers to services trade.
Topic:
Economics, Emerging Markets, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
Israel and Asia

1483. Performance of the Services Sector in Korea: An Empirical Investigation

Author:
Donghyun Park and Kwanho Shin
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
There is a widespread perception that Korea's services sector lags behind its dynamic world-class manufacturing sector. This paper empirically analyzes the past performance of Korea's services sector in order to assess its prospects as an engine of growth. The analysis resoundingly confirms the conventional wisdom of an underperforming service sector. In light of Korea's high income and development level, the poor performance of modern services is of particular concern. The authors identify a number of factors underlying the poor performance and set forth policy recommendations for addressing them. Overall, Korea faces a challenging but navigable road ahead in developing a high value-added services sector.
Topic:
Development, Economics, Emerging Markets, Industrial Policy, and International Trade and Finance
Political Geography:
Israel and Korea

1484. Developing the Services Sector as Engine of Growth for Asia: An Overview

Author:
Marcus Noland and Donghyun Park
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The maturing of the manufacturing sector in many Asian countries, combined with the relative backwardness of its services sector, has made services sector development a top priority for developing Asia. The authors' central objective is to broadly survey and analyze the current landscape of the region's services sector so as to assess its potential to serve as an engine for inclusive economic growth. Their analysis indicates that services are already an important source of output, growth, and jobs in the region. However, its productivity greatly lags that of the advanced economies, which implies ample room for further growth. The impact of the services sector on poverty reduction is less clear but the authors do find some limited evidence of a poverty reduction effect. One key challenge for all Asian countries is to improve the quality of services sector data. Overall, while services sector development is a long and challenging process, creating more competitive services markets by removing a wide range of internal and external policy distortions is vital for improving services sector productivity. As important as such policy reforms are, complementary investments in physical infrastructure and human capital will also be necessary to achieve a strong services sector.
Topic:
Development, Emerging Markets, and Industrial Policy
Political Geography:
Israel and Asia

1485. Transactions: A New Look at Services Sector Foreign Direct Investment in Asia

Author:
Jacob Funk Kirkegaard
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
In this paper Kirkegaard presents new micro-level data consisting of individual greenfield investment projects and mergers and acquisitions as a source for detailed analysis of services sector cross-border investment flows among the Asian Development Bank (ADB) regional membership in Asia. The new transactional foreign direct investment (FDI) data are methodologically distinct from traditional BPM5-compliant FDI data but found to yield generally comparable aggregates, when compared with the latest available International Monetary Fund (IMF) data from the Comprehensive Direct Investment Survey for the ADB regional membership. The services sectors are found to receive considerably larger amounts of foreign investment, when compared with the Asian region's manufacturing and raw materials sectors. OECD countries account for roughly three-quarters of total recorded inward services sector FDI of about $2 trillion, relatively evenly split between the United States, the EU-27, and regional OECD-level-income countries. The presence of sizable regional "upward flowing" services sector investments into OECD-level-income economies is verified. Kirkegaard draws preliminary policy conclusions based on the new transactional FDI data results concerning prospects for regional services sector liberalization, threshold income levels for inward services sector FDI, upward-flowing regional services FDI, and preferred modes of services sector investments.
Topic:
Economics, Emerging Markets, International Trade and Finance, and Foreign Direct Investment
Political Geography:
United States, Israel, and Asia

1486. Gender in Transition: The Case of North Korea

Author:
Stephan Haggard and Marcus Noland
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper uses a survey of 300 North Korean refugees to examine the experience of women in North Korea's fitful economic transition. Like other socialist states, North Korea has maintained a de jure commitment to women's rights. However, the authors find that women have been disproportionately shed from state-affiliated employment and thrust into a market environment characterized by weak institutions and corruption. As a result, the state and its affiliated institutions are increasingly populated by males, and the market, particularly in its retail aspects, is dominated by women. Among the most recent cohort of refugees to leave North Korea, more than one-third of male respondents indicate that criminality and corruption is the best way to make money, and 95 percent of female traders report paying bribes to avoid the penal system. In short, the increasingly male-dominated state preys on the increasingly female-dominated market. These results paint a picture of a vulnerable group that has been disadvantaged in North Korea's transition. Energies are directed toward survival, mass civil disobedience is reactive, and as a group, this population appears to lack the tools or social capital to act collectively to improve their status.
Topic:
Corruption, Economics, and Gender Issues
Political Geography:
Israel and North Korea

1487. Networks, Trust, and Trade: The Microeconomics of China–North Korea Integration

Author:
Stephan Haggard and Marcus Noland
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
A central hope of engagement with North Korea is that increased cross-border exchange will encourage the strengthening of institutions, and eventually, a moderation of the country's foreign policy. An unprecedented survey of Chinese enterprises operating in North Korea reveals that trade is largely dominated by state entities on the North Korean side, although the authors cannot rule out de facto privatization of exchange. Little trust is evident beyond the relationships among Chinese and North Korean state-owned enterprises. Formal networks and dispute settlement mechanisms are weak and do not appear to have consequences for relational contracting. Rather, firms rely on personal ties for identifying counterparties and resolving disputes. The weakness of formal institutions implies that the growth in exchange does not conform with the expectations of the engagement model and may prove self-limiting. The results also cast doubt that integration between China and North Korea, at least as it is currently proceeding, will foster reform and opening.
Topic:
Foreign Policy, Economics, International Trade and Finance, and Bilateral Relations
Political Geography:
China, Israel, and North Korea

1488. Inward foreign direct investment: Does it enable or constrain domestic technology entrepreneurship?

Author:
Saurav Pathak, André Laplume, and Emanuel Xavier-Oliveira
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Whether or not foreign direct investment (FDI) is essential for domestic technological and economic development remains a contentious question. The controversy is illustrated by comparing the Celtic and Asian Tigers experiences from 1995 to 2000. Based on IMF and World Bank data in constant prices, Ireland and China averaged an annual growth rate of 8% in GDP per capita. However, FDI per capita grew at an average pace of 98% per year in Ireland, while in China it decreased by 1% -- absolute values averaged US$ 3,397 versus US$ 144, respectively. This suggests that, rather than a one-policy-fits-all approach, customized policies are more appropriate; and, if any generalization can be made, it should be based on a country's stage of economic development.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, and Foreign Direct Investment
Political Geography:
Israel and Asia

1489. China's regional security relations and interaction with the U.S.: trends, challenges and possible scenarios

Author:
Frans-Paul van der Putten
Publication Date:
12-2012
Content Type:
Working Paper
Institution:
Norwegian Centre for Conflict Resolution
Abstract:
This paper provides a brief overview of current developments relevant to Sino-U.S. security relations, and to China's involvement in regional security issues, in East and South-East Asia. The most fundamental challenge with regard to regional stability is how the roles of China and the United States in the Asia Pacific can be reconciled. While the U.S. is concerned that a rising China will eventually push American influence out of East and South-East Asia, China in turn fears that the U.S. will try to retain its leadership role by exploiting and amplifying tensions between the Chinese and their neighbours. Currently the Sino-U.S. rivalry is threatening unity within ASEAN, which poses an immediate risk for regional stability. A substantial improvement in regional stability – whether in South-East or in East Asia – is unlikely unless the U.S. and China manage to stabilise their bilateral relationship. It is important for all interested parties, inside Asia but also outside (including in Europe), to contribute to a move away from a scenario in which regional stability continues to deteriorate, and in the direction of a scenario that involves a cooperative arrangement between China and the U.S. in a stable multilateral setting.
Topic:
Foreign Policy, Arms Control and Proliferation, International Trade and Finance, Bilateral Relations, and Hegemony
Political Geography:
United States, China, Israel, East Asia, Australia/Pacific, and Southeast Asia

1490. Lessons for Japan from U.S. Rebalancing of Mental Health Care

Author:
Richard G. Frank
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
As of April 2013, the Japanese government will make mental health a fifth national priority for national medical services, along with cancer, stroke, acute myocardial infarction, and diabetes. This change is a result of multiple factors: an aging population; increases in the demand for mental health care services; and a concern about a system that overly emphasizes institutional mental health care. The plan for shaping the future of mental health delivery in Japan is focused on changing the balance of care from institutional services to community - based services. In pursuing this goal the Japanese government has identified four aims for change: create a system of care that differentiates functions according to the intensity of need of patients; assure high - quality care throughout a restructured delivery system; make investments to support community - based services; and expand community education and expand opportunities for patient preferences to drive the delivery system.
Topic:
Health, Governance, and Health Care Policy
Political Geography:
United States and Israel

1491. Reordering Chinese Priorities on the Korea Peninsula

Author:
Scott Snyder, Marcus Noland, Bonnie S. Glaser, and Contributor: Stephan Haggard
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The accession to power of a new leader in North Korea has not increased the prospects for denuclearization. Hints that Kim Jong-un might experiment with agricultural and economic reforms are not accompanied by any suggestion that he is considering abandoning the country's nuclear weapons program. On the contrary, all signs point to North Korea's staunch determination to advance the nuclear program while undertaking efforts to compel the international community to recognize it as a nuclear weapons state. Given the growing urgency of the threat posed by North Korea's nuclear weapons development, it is essential to consider new ways to persuade Pyongyang to freeze, reverse, and eventually eliminate its nuclear capabilities
Topic:
Conflict Resolution, Conflict Prevention, Nuclear Weapons, and Weapons of Mass Destruction
Political Geography:
Israel and Korea

1492. Asian Defense Spending, 2000–2011

Author:
David J. Berteau, Guy Ben-Ari, Joachim Hofbauer, Priscilla Hermann, and Sneha Raghavan
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Asia is growing in geostrategic importance. Despite the financial crisis that began in 2008, many Asian countries experienced relatively less fiscal distress and increased their level of involvement in global affairs. Indicative of the region's elevated global role is the United States' pivot toward the Asia-Pacific region as outlined in the Strategic Guidance recently released by the Department of Defense. With Asian defense spending projected to overtake that of Europe by the end of 2012, the United States' posture rebalancing toward the Asia-Pacific region is likely to continue.
Topic:
Foreign Policy, Defense Policy, Arms Control and Proliferation, and International Political Economy
Political Geography:
Israel and Asia

1493. Ten minutes with...Yossi Beilin

Author:
Alan Philps
Publication Date:
07-2012
Content Type:
Journal Article
Institution:
Chatham House
Abstract:
Yossi Beilin, who served as Israeli Justice Minister and Deputy Foreign Minister, conducted the secret peace negotiations that led to the 1993 Oslo Accords between Israel and the Palestine Liberation Organization.
Political Geography:
Israel and Palestine

1494. How Israel Thinks About Iran

Author:
Kenneth Katzman
Publication Date:
12-2012
Content Type:
Journal Article
Journal:
The Journal of International Security Affairs
Institution:
Jewish Institute for National Security Affairs
Abstract:
From Yaakov Katz and Yoaz Hendel, an inside look at the coming conflict between Tehran and Jerusalem.
Political Geography:
Iran, Israel, Tehran, and Jerusalem

1495. World Upside Down

Author:
Elan Journo
Publication Date:
12-2012
Content Type:
Journal Article
Journal:
The Journal of International Security Affairs
Institution:
Jewish Institute for National Security Affairs
Abstract:
Peter Berkowitz explains how international law is being wielded as a weapon against Israel.
Topic:
International Law
Political Geography:
Israel

1496. Türkiye’nin İsrail ile İlişkilerinin Değişen Dinamikleri: Bir ‘Güvenlikleştirme’ Analizi* | The Changing Dynamics of Turkey’s Relations with Israel: An Analysis of ‘Securitization’

Author:
Ali Balcı and Tuncay Kardaş
Publication Date:
12-2012
Content Type:
Special Report
Institution:
Sakarya University (SAU)
Abstract:
Bu çalışmanın amacı şu sorulara cevap aramaktır: Ortadoğu’da düşük profilli bir politika izleyen Türkiye’nin 1990’larda İsrail devleti ile güçlü bir stratejik ittifak ilişkisi kurması nasıl mümkün olmuştur? Sonrasında bunun tersine iki ülke arasında 1990’lardaki benzersiz ve pozitif ilişkilerin yerini 2000’lerde neden düşmanca bir ortam almıştır? 1990’lar ile 2000’lerdeki ilişkilerin arasındaki bu fark nasıl açıklanabilir? Bu soruları cevaplamak için makale Kopenhag Okulu’nun “güvenlikleştirme” kavramını kullanmaktadır. Bu yaklaşım sadece Türkiye-İsrail ilişkilerindeki farklı dönemlerin özelliklerini resmetmeye yardımcı olmamakta, aynı zamanda politik anlamda sivil-asker ilişkilerinin dış politika yapımındaki etkisini vurgulamaya da imkân sağlamaktadır. | The present study seeks to answer the following questions: How was it possible that a state such as Turkey, which had until then pursued a low-profile policy in the Middle East, has able to forge a bold strategic alliance with the state of Israel in the 1990s? Conversely then, why was the unparalleled and positive nature of relations in the 1990s replaced by a hostile and toxic nature in the first decade of the 2000s? How can this difference in the relations between the 1990s and 2000s be explained? To answer such questions, this article uses the Copenhagen School’s theory of securitization. This approach not only helps to illustrate the characteristics of different periods in Turkish-Israeli relations, it also helps to highlight the specificity of the politics of civilmilitary relations in foreign policy making.
Topic:
Security, Government, Military Strategy, and Bilateral Relations
Political Geography:
Turkey, Middle East, and Israel

1497. The Dynamics of Turkish-Israeli Relations

Author:
Onur Gökçe
Publication Date:
07-2012
Content Type:
Journal Article
Journal:
All Azimuth: A Journal of Foreign Policy and Peace
Institution:
Center for Foreign Policy and Peace Research
Abstract:
This article examines Turkish-Israeli relations from 1948 to 2012 in light of domestic and international events that have impacted the two countries throughout the years. The article examines each country’s threat perceptions, which emanate from developments in the Middle East. The author points out commonalities and confrontations between the two countries, and discusses how the latter can be avoided. The article explores how to improve relations in view of the rapid changes occurring in the region, and discusses how the two countries are positioning themselves in the current restructuring of the Middle East and emerging new power balances, some of which are created by these two major regional players themselves.
Topic:
Bilateral Relations, Arab Spring, Alliance, Strategic Interests, and Confrontation
Political Geography:
Turkey, Middle East, and Israel

1498. Watching a dragon's egg hatch: The makings of a Sinocentric world?

Author:
Jyrki Kallio
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
As China's hard power is growing, the Party-state is keen to construct a new narrative which legitimizes China's position as a world leader also from the soft power perspective. It has even been suggested that a Chinese international relations theory or model will inevitably emerge as a consequence of China's growing role on the world stage on the one hand and the rise of traditional values in China on the other.
Topic:
Foreign Policy, Development, Economics, International Trade and Finance, Power Politics, and Culture
Political Geography:
China and Israel

1499. The Influence of Domestic Politics on Philippine Foreign Policy: The case of Philippines-China relations since 2004

Author:
Aileen S. P. Baviera
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This paper sets out to explore the role of domestic politics in the shaping and implementing of Philippine foreign policy and its relations with China. It examines how domestic politics have driven Philippine foreign policy behaviour towards China; whether the Philippine Government has successfully managed the domestic drivers in promoting the state's interests in its relations with China, and whether there are major constraints that have prevented the attainment of more desirable outcomes in the bilateral ties. It looks at three cases: the Philippines-China joint marine seismic undertaking in the South China Sea; China's participation in the national broadband network project and a railway project; and Philippine reactions to China's execution of three Filipino drug mules.
Topic:
Conflict Resolution, Foreign Policy, Bilateral Relations, and Narcotics Trafficking
Political Geography:
China, Israel, and Philippines

1500. The Military Along the Security-Development Frontier: Implications for Non-traditional Security in the Philippines and Thailand

Author:
Aries A. Arugay
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The militaries of developing countries have often gone beyond the mission of external defence, to perform unconventional roles ranging from disaster relief and economic management to law enforcement and internal security. This paper focuses on development missions carried out by the armed forces of the Philippines and Thailand in and out of conflict zones, and provides an analysis of the causes behind the re-emergence of such missions in recent years. Based on a comparison of the two countries' experience, this paper argues that the military's renewed involvement in development work stems from two factors: their significant role in political succession; and the increasing salience of concepts linking security and development, in particular, the notion of non-traditional security. The effectiveness of such projects could, however, be hampered by the lack of a clear, well-implemented national development framework and by systemic weaknesses in security sector governance. This paper thus argues that, in order to address the various non-traditional security threats in the two countries, security sector reform would have to be implemented and civilian oversight over security institutions improved.
Topic:
Security, Development, and Governance
Political Geography:
Israel, Asia, Philippines, and Thailand